United American Bank Reports Jump in Profits for Fourth Quarter of 2005; Net Profits Up 163.5% Over Previous Quarter.

SAN MATEO, Calif. -- United American Bank (OTCBB:UABK) announced today that financial results for the fourth quarter of 2005 showed net profits up 163.5% over the previous quarter. E[acute accent]John Schrup, President and Chief Executive Officer of United American Bank, points to the robust growth in loan business and the rising interest rate environment as key drivers for the increase in interest income, but notes that savvy management was needed to turn income into profit for shareholders. E[acute accent]"We have shown and will continue to show that United American Bank is expanding in all areas of operation, particularly in loan growth," said Schrup. "And our continuing policy of conservative business management ensures that profits and shareholder value keep pace with that growth." E[acute accent]Margaret Taylor, Chairman of the Board of Directors of United American Bank, is optimistic that the Bank will continue its upward trend of profitability in 2006. E[acute accent]"Shareholders have seen profits rise every quarter in 2005," said Taylor. "The Board has every confidence that the business strategies that have proved so successful in 2005 will continue to produce good results for investors in 2006." E[acute accent]As of December 31, 2005, United American Bank reported total assets of $140.4 million, compared with $120.8 million for prior quarter ended September 30, 2005 and $90.3 million at the beginning of the year, reflecting a 16.3% growth for the quarter and 55.4% growth for the year. E[acute accent]Total deposits were reported to be $120.0 million on December 31, 2005, compared with $101.0 million for the previous quarter and $78.5 million reported on December 31, 2004, showing 18.8% growth for the quarter and 52.9% growth for the year. E[acute accent]The Bank reported total loans outstanding on December 31, 2005 of $107.4 million, an increase of $44.1 million, or 69.7%, over the $63.3 million reported on December 31, 2004, and 16.0% over the $92.6 million reported for the previous quarter. E[acute accent]Net interest income of $1,634,000 for the quarter ended December 31, 2005 represented an increase of $753,644, or 85.6%, over the same quarter one year earlier while non-interest expenses of $1,300,000 rose only 47.2% from the $883,000 reported for the same quarter of the prior year. Net interest margin for the fourth quarter of 2005 rose to 5.13%, compared to the 4.57% reported for the fourth quarter of 2004. E[acute accent]For the quarter ended on December 31, 2005, United American Bank reported an operating profit of $402,325 compared with net profits of $152,708 for the third quarter, $34,674 for the second quarter, and $1,583 for the first quarter of 2005 and resulting in $591,288 in profits for the year.

E[acute accent]About United American Bank

E[acute accent]United American Bank is a full service commercial bank. The Bank is dedicated to providing quality banking and financial services to businesses, professionals and individuals who prefer a high level of personalized client service and management. For more information, visit United American Bank on the web at www.unitedamericanbank.com or call 650-579-1500.

E[acute accent]Safe Harbor 

E[acute accent]Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements relate to the bank's current expectations regarding future operating results and the growth in loans, deposits, and assets. These forward looking statements are subject to certain risks and uncertainties that could cause the actual results, or performance to differ materially from those expressed, suggested or implied by the forward looking statements. These risks and uncertainties include, but are not limited to: (1) the impact on the bank's performance from changes in interest rates, local and national economic conditions, and the number of financial services providers, (2) the banks ability to continue the current rate of growth, (3) the banks ability to increase net interest income (4) the quality of the loan portfolio and (5) changes in government regulations.

United American Bank
                        Selected Financial Data
                           December 31, 2005




BALANCE SHEET                  Quarter    Quarter
(Dollars in Thousands)          Ending     Ending         Change
                                                   -------------------
End of Period                 12/31/05   12/31/04           $        %
--------------------------------------- ---------- ---------- --------
Total Assets                  $140,425    $90,336    $50,089     55.4%
Total Loans                    107,409     63,285     44,124     69.7%
Total Deposits                 120,007     78,502     41,505     52.9%
Allowance for Loan Losses        1,275        800        475     59.4%
Shareholders' Equity            19,399     11,561      7,838     67.8%

Average
-----------------------------
Total Assets                   131,635     79,747     51,888     65.1%
Total Loans                    101,924     58,953     42,971     72.9%
Total Deposits                 111,141     67,767     43,374     64.0%
Shareholders' Equity            19,538     11,629      7,909     68.0%

OPERATIONS (Quarter to Date)
Interest Income              2,430,516  1,119,890  1,310,626    117.0%
Interest Expense               796,640    239,658    556,982    232.4%
                             ---------- ---------- ----------
     Net Interest Income     1,633,876    880,232    753,644     85.6%

Provision for loan losses      100,000    125,000    (25,000)   -20.0%
Noninterest Income              27,510     89,236    (61,726)   -69.2%
Noninterest Expense          1,300,061    882,924    417,137     47.2%
Income tax benefit             141,000          -    141,000        -
                             ---------- ---------- ----------
Net Gain (Loss)                402,325    (38,456)   440,781  1,146.2%
                             ---------- ---------- ----------

RATIOS
Net Interest Margin               5.13%      4.57%
Efficiency Ratio                    84%       104%

ALLL/Gross Loans                  1.19%      1.26%
NPA/Gross Loans                      0          0
Average Capital/Average
 Assets                             15%        15%

OPERATIONS (Year To Date)
Interest Income              7,461,699  3,197,179  4,264,520    133.4%
Interest Expense             2,170,999    705,222  1,465,777    207.8%
                             ---------- ---------- ----------
     Net Interest Income     5,290,700  2,491,957  2,798,743    112.3%

Provision for loan losses      475,000    500,000    (25,000)    -5.0%
Noninterest Income             112,913    323,500   (219,587)   -66.0%
Noninterest Expense          4,478,325  3,241,743  1,236,582     38.1%
Income Tax Benefit             141,000          -    141,000        -
                             ---------- ---------- ----------
Net Gain (Loss)                591,288   (917,286) 1,508,574    164.5%
                             ---------- ---------- ----------



BALANCE SHEET                                 Quarter
(Dollars in Thousands)                         Ending      Change
                                                       ---------------
End of Period                                 9/30/05         $      %
------------------------------------------------------ -------- ------
Total Assets                                 $120,762  $19,663   16.3%
Total Loans                                    92,621   14,788   16.0%
Total Deposits                                101,002   19,005   18.8%
Allowance for Loan Losses                       1,175      100    8.5%
Shareholders' Equity                           19,020      379    2.0%

Average
--------------------------------------------
Total Assets                                  116,235   15,400   13.2%
Total Loans                                    87,622   14,302   16.3%
Total Deposits                                 96,661   14,480   15.0%
Shareholders' Equity                           19,047      491    2.6%

OPERATIONS (Quarter to Date)
Interest Income                             2,032,405  398,111   19.6%
Interest Expense                              585,292  211,348   36.1%
                                            ---------- --------
            Net Interest Income             1,447,113  186,763   12.9%

Provision for loan losses                     155,000  (55,000) -35.5%
Noninterest Income                             23,125    4,385   19.0%
Noninterest Expense                         1,162,530  137,531   11.8%
Income tax benefit                                  -  141,000      -
                                            ---------- --------
Net Gain (Loss)                               152,708  249,617  163.5%
                                            ---------- --------

RATIOS
Net Interest Margin                              5.14%
Efficiency Ratio                                   90%

ALLL/Gross Loans                                 1.27%
NPA/Gross Loans                                     0
Average Capital/Average Assets                     16%