2008-04-14 23:44:34 -

- Manufacturers Bank, a California commercial bank with total assets of approximately $2 billion, and a wholly owned subsidiary of Sumitomo Mitsui Banking Corporation, reported income from operations of $23.6 million and net income of $13.1 million as of December 31, 2007, compared to $21.3 million and $13.3 million, respectively, for the same period in 2006.

Total loans as

of December 31, 2007 were $1.1 billion, representing an increase of $47 million, or approximately 4.6% over the previous year. Total deposits as of December 31, 2007 were $1.4 billion, representing an increase of $89 million, or 6.6% compared to $1.3 billion reported as of December 31, 2006.

Credit quality remained very strong as evidenced by the low levels of non-accrual loans which totaled $4.3 million, or .40% of total loans as of December 31, 2007, compared to non-accrual loans of $1.2 million or .12% of total loans on December 31, 2006.

The bank's capital ratios for Tier 1 Risk-based Capital, 17.09%, and Total Risk-based Capital, 18.34%, as of December 31, 2007, continued to exceed the regulatory definition for a "well capitalized" bank of 6% and 10%, respectively. As of December 31, 2006, these ratios were 17.03% and 18.28%, respectively.

In commenting on these strong financial results, John F. Chavez, President and Chief Operating Officer, stated, "Although many financial institutions faced a very challenging 2007 as a result of a difficult economic environment and sub-prime exposure and related losses, I am very pleased to report that our bank has no exposure in the sub-prime area and limited exposure to residential construction lending.

"Our balance sheet continued to strengthen with sufficient liquidity and with shareholder equity growing in 2007 to $257 million, or by 6.6% compared to 2006. These results are a tribute to our experienced management team who has maintained sound credit quality and high regulatory standards, and to our dedicated team of professional bankers who deliver state of the art and innovative solutions to our loyal customers. I am happy that we are positioned for continued growth and success as the economy improves so that we may deliver the service that our customers have come to expect from us."

Manufacturers Bank has been operating in Southern California for nearly a half century, consistently delivering tailored financial solutions that enhance the economic well being of its middle market customers. Bauer Financial Inc., an independent bank rating company, has awarded its highest depository rating, "Superior" 5 Star, to Manufacturers Bank.

Manufacturers Bank is headquartered in Los Angeles and operates from branch offices in Downtown Los Angeles, Little Tokyo, Beverly Hills, Encino, Warner Center, San Jose, City of Industry, Torrance, Newport Beach, and from a Loan Production Office in Ontario, California.

All statements in this release, except for historical fact, should be considered forward looking, including statements about the bank's plans, goals, and future expectations for growth. Such statements are subject to changes in the economic, legal and regulatory environment, changes in product delivery and technology that may affect the bank's operations and continued evolution in the financial services industry.

Manufacturers Bank
Anthony Fortunato, SVP, Marketing & P D, 213-489-8735
Wayne Masuda, EVP, Chief Financial Officer, 213-489-6478