Alliance Bancshares California Announces Over $800,000 in Net Earnings.

Business Editors

CULVER CITY, Calif.--(BUSINESS WIRE)--Aug. 13, 2002

Alliance Bancshares California (OTCBB:ABNS), bank holding company of Alliance Bank, announced net earnings of $842,000 in the first half of 2002 compared to $756,000 for the similar period in 2001. Second quarter net earnings for this year were $634,100 compared to $335,500 for the similar period last year. Basic earnings per share were $0.19 for the first half of 2002 and $0.14 for the second quarter, as compared to $0.17 and $0.07, respectively, one year earlier. Diluted earnings per share were $0.15 for the first half of 2002 and $0.11 for the second quarter, compared to $0.14 and $0.06, respectively, during the same period last year.

Assets totaled $176,203,500 at June 30, 2002, an increase of over $18 million, or 12 percent, from $157,622,100 on March 31, 2002, and more than $35 million, or 25 percent growth, from $140,486,400 on December 31, 2001. Net loans have increased to $135,404,500, a $6 million gain from $129,032,600 at the end of the first quarter and a $21 million gain from $112,158,300 at year-end.

Chairman and President Curtis S. Reis commented, "We have done remarkably well in loan growth the first half of the year. Now, our goal is to promote more core deposits throughout the Bank with several promotions coming up beginning in the third quarter. Our Real Estate Division has successfully relocated to our new Irvine office at 1901 Main Street. The Orange County Regional Office in Newport Beach will look forward to a fourth quarter move-in date. This expansion has given us the space in Culver City necessary to continue our growth of the Los Angeles Regional Office and the SBA Department. We think 2002 will be a satisfactory year for Alliance Bank. We encourage shareholders to bank with us and provide good referrals."

                    ALLIANCE BANCSHARES CALIFORNIA
                 CONSOLIDATED STATEMENTS OF OPERATIONS

                            (Unaudited)

                         Three Months Ended       Six Months Ended
                              June 30,                June 30,
                          2002        2001        2002        2001
Interest income:
  Interest and fees
   on loans            $3,104,800  $2,845,300  $5,702,900  $5,641,500
  Interest on time
   deposits with
   other financial
   institutions            43,400      71,600     102,100     126,500
  Interest on
   securities held
   to maturity            114,400     126,200     193,700     262,000
  Interest on federal
   funds sold              66,000      97,000     118,200     249,400
     Total interest
      income            3,328,600   3,140,100   6,116,900   6,279,400
Interest expense:
  Interest on deposits    978,200   1,251,400   1,845,700   2,503,900
  Interest on FHLB
   advances                52,100          --     103,600          --
  Interest on
   subordinated
   optional convertible
   debentures              51,100      51,000     101,500     101,500
  Interest on
   capital note            31,400          --      49,300          --
     Total interest
      expense           1,112,800   1,302,400   2,100,100   2,605,400
     Net interest
      income before
      provision for
      credit losses     2,215,800   1,837,700   4,016,800   3,674,000
Provision for
 credit losses            150,000      75,000     250,000     150,000
     Net interest
      income            2,065,800   1,762,700   3,766,800   3,524,000
Non-interest income       717,700     333,500   1,056,900     609,900
Non-interest expenses:
  Salaries and
   related benefits       897,300     729,300   1,759,600   1,456,800
  Occupancy and
   equipment expenses     199,500     183,300     402,200     361,200
  Other operating
   expenses               647,900     552,800   1,234,900   1,033,600
     Total non-interest
      expense           1,744,700   1,465,400   3,396,700   2,851,600
Earnings before income
 tax expense            1,038,800     630,800   1,427,000   1,282,300
Income tax expense        404,700     295,300     585,000     526,300
  Net earnings         $  634,100  $  335,500  $  842,000  $  756,000

Earnings per common share:
  Basic earnings
   per share           $     0.14  $     0.07  $     0.19  $     0.17
  Diluted earnings
   per share           $     0.11  $     0.06  $     0.15  $     0.14


                    ALLIANCE BANCSHARES CALIFORNIA
            CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

                                             June 30,        Dec. 31,
                                               2002            2001
Assets                                      (Unaudited)

Cash and due from banks                    $  4,842,400   $  4,672,900
Federal funds sold                           14,205,000      9,420,000
     Total cash and cash equivalents         19,047,400     14,092,900
Time deposits with other
 financial institutions                       3,379,600      5,423,700
  Securities held to maturity                15,023,300      5,982,700
Loans, net                                  135,404,500    112,158,300
Equipment and leasehold improvements, net       649,200        499,300
Accrued interest receivable and other assets  2,699,500      2,329,500
     Total assets                          $176,203,500   $140,486,400

Liabilities and Shareholders' Equity

Deposits:
  Demand                                   $ 27,732,900   $ 28,593,100
  Savings and money market                   32,823,100     33,485,200
  Time                                       92,700,200     58,606,500
     Total deposits                         153,256,200    120,684,800
Accrued interest payable and
 other liabilities                            1,113,000        850,500
FHLB advances                                 5,000,000      5,000,000
Subordinated debentures                       2,500,000      2,500,000
Capital note                                  3,000,000      1,000,000
     Total liabilities                      164,869,200    130,035,300

Commitments and contingencies                        --             --

Shareholders' equity:
  Serial preferred stock, no par value:
   Authorized - 20,000,000 shares
   Outstanding - none                                --             --
Common stock, no par value:
   Authorized - 20,000,000 shares
   Outstanding - 4,538,679 shares at
   June 30, 2002; 4,505,079 shares at
   December 31, 2001                          3,480,300      3,439,100
Undivided profits                             7,854,000      7,012,000
     Total shareholders' equity              11,334,300     10,451,100
     Total liabilities and shareholders'
      equity                               $176,203,500   $140,486,400