SAN JOSE, CA--(Marketwire - October 18, 2007) - Bridge Capital Holdings (NASDAQ: BBNK), whose subsidiary is Bridge Bank, National Association, one of the fastest-growing full-service business banks in California and the nation, today announced financial results for the third quarter and nine months ended September 30, 2007.

The Company reported net income of $2.8 million, or $0.40 per diluted share, for the three months ended September 30, 2007. This represented an increase of $444,000, or 19%, compared to net income of $2.3 million, or $0.34 per diluted share, in the same period one year ago. Net income for the nine months ended September 30, 2007 was $8.2 million, or $1.18 per diluted share, an increase of $1.9 million, or 31%, compared to $6.3 million, or $0.92 per diluted share, for the first nine months of 2006.

"We are pleased with our strong quarterly performance in light of the significant challenges being faced by the industry," said Daniel P. Myers, President and Chief Executive Officer of Bridge Capital Holdings and Bridge Bank. "The slowdown in national credit markets, particularly in the housing sector, continues to highlight the benefits of the diversity of our business. We have not diluted our focus by entering the residential mortgage markets and we have deliberately limited our exposure to the housing sector. We believe the economic environment in our primary market of Silicon Valley continues to be sound and it is reflected in our commercial and technology based business development."

Third Quarter Highlights

--  Net income of $2.8 million for the third quarter of 2007 represented
    an increase of $444,000 compared to $2.3 million for the third quarter of
    2006.
    
--  Growth in average earning assets produced an increase in net interest
    income of 22%, or $2.2 million, compared to the same period one year
    earlier.
    
--  Net interest margin for the third quarter of 2007 remained strong at
    6.46%.
    
--  Non-interest income increased $600,000 to $1.4 million in the third
    quarter of 2007 from $800,000 in the third quarter of 2006, in part, due to
    recognition of approximately $375,000 from the liquidation of a warrant
    position in one of the Bank's loan clients.
    
--  Total assets increased $134.2 million to $789.9 million as of
    September 30, 2007 compared to $655.7 million on the same date one year
    earlier.
    
--  Return on average assets and return on average equity were 1.36% and
    19.02%, respectively, for the third quarter of 2007.
    

Net Interest Income and Margin

Earnings growth was driven primarily by growth in net interest income. Net interest income of $12.3 million for the quarter ended September 30, 2007 represented an increase of approximately $2.2 million, or 22%, over $10.1 million reported for the same quarter one year earlier and was primarily attributed to growth in average earning assets of $162.4 million, or 27%, compared to the same quarter in 2006. The Company's loan-to-deposit ratio, a measure of leverage, averaged 83.54% during the quarter ended September 30, 2007, which represented a slight decrease compared to an average of 83.61% for the same quarter of 2006.

For the nine months ended September 30, 2007, net interest income of $35.2 million represented growth of $7.3 million, or 26%, over $27.9 million for the first nine months of 2006. For the nine month period, growth in average earning assets was the primary driver of growth in net interest income. Average earning assets were $701.8 million compared to $539.3 million for the same period one year earlier. The Company's average loan-to-deposit ratio for the nine months ended September 30, 2007 was 86.52% compared to 88.56% for the same period one year earlier reflecting slightly faster growth in deposit funding relative to loan growth.

Changes in short-term interest rates also impact growth in net interest income as the interest rate earned on a majority of the Company's assets, specifically the loan portfolio, adjust with changes in short-term market rates. As such, the nature of the Company's balance sheet is that, over time as short-term interest rates change, income on interest earning assets has a greater impact on net interest income than interest paid on liabilities. The Company's prime rate averaged 8.18% and 8.23%, respectively, in the quarter and nine months ended September 30, 2007 compared to 8.25% and 7.86%, respectively, in the same periods one year earlier.

The Company's net interest margin for the quarter and nine months ended September 30, 2007 was 6.46% and 6.71%, respectively, declining slightly from 6.73% and 6.91%, respectively, in the same periods one year earlier as a result of the decrease in the prime rate noted above, a decrease in loan fees as a percentage of loans, growth in the volume of average interest bearing liabilities and decreased balance sheet leverage.

Non-Interest Income

The Company's non-interest income for the quarter and nine months ended September 30, 2007 was $1.4 million and $5.3 million, respectively, compared to $800,000 and $3.0 million, respectively, for the same periods one year ago. Non-interest income is primarily comprised of gains realized on sales of SBA loans, and the increase in non-interest income primarily reflects a higher volume of SBA loan sales in 2007. During the quarter and nine months ended September 30, 2007, the Company sold SBA loans totaling $20.3 million and $76.8 million, respectively, compared to $8.1 million and $51.4 million, respectively, for the same periods during 2006. In addition, non-interest income for the quarter included approximately $375,000 resulting from the liquidation of a warrant position in one of the Bank's loan clients.

Net interest income and non-interest income comprise total revenue of $13.8 million for the three months ended September 30, 2007 compared to $10.9 million for the same period one year earlier, representing an increase of $2.9 million, or 26%. For the nine months ended September 30, 2007, total revenue of $40.6 million represented an increase of $9.7, or 34%, over $30.9 million for the first nine months of 2006.

"Key operating measures remained strong in the third quarter of 2007," said Thomas A. Sa, Executive Vice President and Chief Financial Officer of Bridge Capital Holdings and Bridge Bank. "However, during the third quarter, deposit growth outpaced loan growth which reduced balance sheet leverage. As a result, our ROAA decreased slightly to 1.36%, and the net interest margin declined slightly to 6.46%. While these remain strong measures, maintaining or exceeding these levels will depend on our ability to increase and sustain the loan-to-deposit ratio. In addition, for the first time we saw a meaningful contribution from a successful liquidation of a warrant position in our technology division. We believe this demonstrates the benefit of diversity in our mix of business lines."

Non-Interest Expense

Non-interest expense was $8.7 million and $25.0 million for the quarter and nine months ended September 30, 2007, respectively, compared to $7.1 million and $20.0 million, respectively, for the same periods in 2006. The increase in non-interest expense was primarily due to an increase in salary and benefits expense associated with the Company's expansion. Salary and benefits expense for the quarter ended September 30, 2007 was $5.5 million, an increase of $900,000 over $4.6 million in the same period of 2006. Salary and benefits expense for the nine months ended September 30, 2007 was $15.8 million, an increase of $3.1 million over $12.7 million in the same period of 2006. As of September 30, 2007 the Company employed 164 full-time equivalents (FTE) compared to 132 FTE on the same date one year earlier.

The Company's efficiency ratio, the ratio of non-interest expense to revenues, was 63.30% and 61.63% for the quarter and nine months ended September 30, 2007 compared to 64.89% and 64.94%, respectively, in the same periods one year earlier.

Balance Sheet

Bridge Capital Holdings reported total assets at September 30, 2007 of $789.9 million, compared to $655.7 million on the same date one year ago. The increase in total assets represented growth of $134.2 million, or 21%, compared to September 30, 2006. Total assets at September 30, 2007 represented growth of $67.9 million, or 9%, compared to $722.0 million at December 31, 2006.

The Company reported total gross loans outstanding at September 30, 2007 of $611.2 million, which represented an increase of $125.6 million, or 26%, over $485.6 million for the same date one year earlier. Total loans at September 30, 2007 represented growth of $70.4 million, or 13%, compared to $540.8 million at December 31, 2006.

The Company's total deposits were $702.9 million as of September 30, 2007, compared to total deposits of $585.8 million as of September 30, 2006. The increase in deposits represented growth of $117.1 million, or 20%, compared to September 30, 2006. Total deposits at September 30, 2007 represented growth of $57.9 million, or 9%, compared to $645.0 million at December 31, 2006.

For the quarter ended September 30, 2007, the Company's return on average assets and return on average equity were 1.36% and 19.02%, respectively, and compared to 1.44% and 19.99%, respectively, for the same period in 2006. Return on average assets and return on average equity for the nine months ended September 30, 2007 were 1.46% and 20.20%, respectively, up from 1.44% and 19.31%, respectively, for the same period one year earlier.

Credit Quality

The allowance for loan losses was $8.0 million, or 1.31% of total loans, at September 30, 2007, compared to $6.7 million, or 1.39% of total loans, at September 30, 2006. The provision for credit losses for the three and nine months ended September 30, 2007 was $475,000 and $1.7 million, respectively, compared to $100,000 and $772,000, respectively, for the same periods in 2006. During the three and nine months ended September 30, 2007, the Company charged-off balances totaling $312,000 and $1.3 million, respectively, which compared to no loan charge-off activity during the same periods of 2006. During the third quarter of 2007, the Company recognized $250,000 in loan recoveries. The loan recoveries in the third quarter represented all of the activity for the first nine months of 2007 and compared to no loan recoveries during the same periods of 2006.

At September 30, 2007 nonperforming assets totaled $425,000, or 0.05% of total assets, compared to $2.6 million, or 0.39% of total assets, on the same date one year earlier. The single nonperforming asset at September 30, 2007 was a commercial property categorized as "other real estate owned."

Capital Adequacy

At September 30, 2007, shareholders' equity in the Company totaled $60.0 million, up from $47.0 million on the same date one year earlier. As a result, the Company's total risk-based capital ratio, tier one capital ratio, and leverage ratio of 11.80%, 10.68%, and 10.20%, respectively, were all substantially above the regulatory standards for "well-capitalized" institutions.

About Bridge Capital Holdings

Bridge Capital Holdings is the holding company for Bridge Bank, National Association. Bridge Capital Holdings was formed on October 1, 2004 and is listed on The NASDAQ Stock Market under the trading symbol BBNK. For additional information, visit the Bridge Capital Holdings website at http://www.bridgecapitalholdings.com.

About Bridge Bank, N.A.

Bridge Bank, N.A. is Santa Clara County's full-service professional business bank. The bank is dedicated to meeting the financial needs of small and middle market, and emerging technology businesses, in the Silicon Valley, Palo Alto, Redwood City, San Ramon-Pleasanton, Sacramento, San Diego, Bakersfield, Fresno, Orange County, Dallas, TX, and Reston, VA business communities. Bridge Bank provides its clients with a comprehensive package of business banking solutions delivered through experienced, professional bankers. For additional information, visit the Bridge Bank website at http://www.bridgebank.com.

Forward-Looking Statements

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to the safe harbors created by that Act. Forward-looking statements describe future plans, strategies, and expectations, and are based on currently available information, expectations, assumptions, projections, and management's judgment about the Bank, the banking industry and general economic conditions. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements 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) competitive pressures in the banking industry; (2) changes in interest rate environment; (3) general economic conditions, nationally, regionally, and in operating markets; (4) changes in the regulatory environment; (5) changes in business conditions and inflation; (6) changes in securities markets; (7) future credit loss experience; (8) the ability to satisfy requirements related to the Sarbanes-Oxley Act and other regulation on internal control; (9) civil disturbances or terrorist threats or acts, or apprehension about the possible future occurrences of acts of this type; and (10) the involvement of the United States in war or other hostilities.

The reader should refer to the more complete discussion of such risks in Bridge Capital Holdings' annual reports on Forms 10-K and quarterly reports on Forms 10-Q on file with the Securities Exchange Commission.

                  BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
        INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                          (Dollars in Thousands)


                           Three months ended           Nine months ended
                     -------------------------------  --------------------
                     09/30/07   06/30/07   09/30/06   09/30/07   09/30/06
                     ---------  ---------  ---------  ---------  ---------
INTEREST INCOME
Loans                $  15,585  $  15,433  $  12,762  $  45,202  $  34,696
Federal funds sold       1,138        753      1,453      2,415      2,723
Investment
 securities
 available for sale        904        750        113      2,324        316
                     ---------  ---------  ---------  ---------  ---------
  Total interest
   income               17,627     16,936     14,328     49,941     37,735
                     ---------  ---------  ---------  ---------  ---------

INTEREST EXPENSE
Deposits:
  Interest-bearing
   demand                   10         10          9         33         23
  Money market and
   savings               3,984      3,628      2,733     10,609      6,073
  Certificates of
   deposit               1,039      1,112      1,239      3,307      2,924
Other                      262        260        257        782        825
                     ---------  ---------  ---------  ---------  ---------
  Total interest
   expense               5,295      5,010      4,238     14,731      9,845
                     ---------  ---------  ---------  ---------  ---------

Net interest income     12,332     11,926     10,090     35,210     27,890
Provision for credit
 losses                    475      1,000        100      1,675        772
                     ---------  ---------  ---------  ---------  ---------
Net interest income
 after provision
 for credit losses      11,857     10,926      9,990     33,535     27,118
                     ---------  ---------  ---------  ---------  ---------

NON-INTEREST INCOME
Service charges on
 deposit accounts          166        181        131        497        370
Gain on sale of SBA
 loans                     363      1,890        225      2,986      1,064
Other non-interest
 income                    906        542        443      1,859      1,526
                     ---------  ---------  ---------  ---------  ---------
  Total non-interest
   income                1,435      2,613        799      5,342      2,960
                     ---------  ---------  ---------  ---------  ---------

OPERATING EXPENSES
Salaries and
 benefits                5,530      5,265      4,627     15,796     12,706
Premises and fixed
 assets                  1,173      1,026        808      3,149      2,122
Other                    2,012      2,131      1,631      6,046      5,206
                     ---------  ---------  ---------  ---------  ---------
  Total operating
   expenses              8,715      8,422      7,066     24,991     20,034
                     ---------  ---------  ---------  ---------  ---------

Income before income
 taxes                   4,577      5,117      3,723     13,886     10,044
Income taxes             1,825      2,134      1,415      5,707      3,786

                     ---------  ---------  ---------  ---------  ---------
NET INCOME           $   2,752  $   2,983  $   2,308  $   8,179  $   6,258
                     =========  =========  =========  =========  =========

EARNINGS PER SHARE
Basic earnings per
 share               $    0.43  $    0.47  $    0.37  $    1.28  $    1.00
                     =========  =========  =========  =========  =========
Diluted earnings per
 share               $    0.40  $    0.43  $    0.34  $    1.18  $    0.92
                     =========  =========  =========  =========  =========
Average common
 shares outstanding  6,397,140  6,381,493  6,283,125  6,369,991  6,262,169
                     =========  =========  =========  =========  =========
Average common and
 equivalent shares
 outstanding         6,947,833  6,933,273  6,819,049  6,923,726  6,795,493
                     =========  =========  =========  =========  =========

PERFORMANCE MEASURES
Return on average
 assets                   1.36%      1.57%      1.44%      1.46%      1.44%
Return on average
 equity                  19.02%     22.09%     19.99%     20.20%     19.31%
Efficiency ratio         63.30%     57.93%     64.89%     61.63%     64.94%






                  BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
              INTERIM CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                          (Dollars in Thousands)


                     09/30/07   06/30/07   03/31/07   12/31/06   09/30/06
                     ---------  ---------  ---------  ---------  ---------

ASSETS
Cash and due from
 banks               $  19,076  $  21,274  $  21,673  $  24,360  $  18,987
Federal funds sold      70,155     39,790     60,620     93,845    116,165
Investment
 securities
 available for sale     66,071     73,362     53,920     43,933     18,971
Loans:
  Commercial           264,360    258,978    213,436    197,174    185,789
  SBA                   63,205     56,176     60,871     59,888     51,894
  Real estate
   construction         83,030    104,652    116,282    103,710     99,427
  Real estate other    144,438    134,299    123,853    115,313    105,395
  Factoring and
   asset-based
   lending              43,942     42,683     51,904     56,924     36,658
  Other                 12,231      9,341      8,794      7,771      6,469
                     ---------  ---------  ---------  ---------  ---------
     Loans, gross      611,206    606,129    575,140    540,780    485,632
  Unearned fee
   income               (1,616)    (1,483)    (1,586)    (1,495)    (1,601)
  Allowance for
   credit losses        (8,003)    (7,590)    (7,533)    (7,329)    (6,728)
                     ---------  ---------  ---------  ---------  ---------
     Loans, net        601,587    597,056    566,021    531,956    477,303
Premises and
 equipment, net          4,618      4,966      4,050      3,479      2,935
Accrued interest
 receivable              4,748      4,608      4,212      4,292      3,041
Other assets            23,622     22,741     20,626     20,114     18,304
                     ---------  ---------  ---------  ---------  ---------
     Total assets    $ 789,877  $ 763,797  $ 731,122  $ 721,979  $ 655,706
                     =========  =========  =========  =========  =========

LIABILITIES
Deposits:
  Demand
   noninterest-
   bearing           $ 201,133  $ 218,651  $ 195,965  $ 198,639  $ 164,483
  Demand
   interest-bearing      4,271      4,563      9,611      3,901      4,005
  Money market and
   savings             418,503    372,470    352,975    333,838    294,698
  Time                  78,943     85,442     94,847    108,609    122,638
                     ---------  ---------  ---------  ---------  ---------
     Total deposits    702,850    681,126    653,398    644,987    585,824
                     ---------  ---------  ---------  ---------  ---------

Junior subordinated
 debt securities        17,527     17,527     17,527     17,527     17,527
Accrued interest
 payable                   298        276        289        318        355
Other liabilities        9,187      9,882      7,449     10,053      5,044
                     ---------  ---------  ---------  ---------  ---------
     Total
      liabilities      729,862    708,811    678,663    672,885    608,750
                     ---------  ---------  ---------  ---------  ---------

SHAREHOLDERS' EQUITY
Common stock            36,888     36,466     35,954     35,427     34,824
Retained earnings       22,722     19,970     16,987     14,543     12,167
Accumulated other
 comprehensive
 (loss)                    405     (1,450)      (482)      (876)       (35)
                     ---------  ---------  ---------  ---------  ---------
     Total
      shareholders'
      equity            60,015     54,986     52,459     49,094     46,956
                     ---------  ---------  ---------  ---------  ---------
     Total
      liabilities
      and
      shareholders'
      equity         $ 789,877  $ 763,797  $ 731,122  $ 721,979  $ 655,706
                     =========  =========  =========  =========  =========

CAPITAL ADEQUACY
Tier I leverage
 ratio                   10.20%     10.13%     10.15%     10.97%     10.75%
Tier I risk-based
 capital ratio           10.68%     10.48%     10.55%     10.52%     11.03%
Total risk-based
 capital ratio           11.80%     11.56%     11.69%     11.74%     12.46%
Total equity/ total
 assets                   7.60%      7.20%      7.18%      6.80%      7.16%
Book value per share $    9.32  $    8.61  $    8.21  $    7.77  $    7.46





                  BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
  INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
                          (Dollars in Thousands)


                             Three months ended September 30,
                -----------------------------------------------------------
                            2007                          2006
                ----------------------------- -----------------------------

                            Yields   Interest            Yields    Interest
                  Average     or     Income/   Average    or       Income/
                  Balance   Rates    Expense   Balance   Rates     Expense
                --------- --------  --------- --------- --------  ---------
ASSETS
Interest earning
 assets (2):
  Loans (1)     $ 597,214    10.35% $  15,585 $ 473,311    10.70% $  12,763
  Federal funds
   sold            89,483     5.05%     1,138   110,219     5.23%     1,453
  Investment
   securities      70,498     5.09%       904    11,272     3.98%       113
  Other                 -     0.00%         -         -     0.00%         -
                --------- --------  --------- --------- --------  ---------
Total interest
 earning assets   757,195     9.24%    17,627   594,802     9.56%    14,329
                --------- --------  --------- --------- --------  ---------

Noninterest-
 earning assets:
  Cash and due
   from banks      20,882                        26,209
  All other
   assets (3)      23,172                        15,262
                ---------                     ---------
      TOTAL     $ 801,249                     $ 636,273
                =========                     =========

LIABILITIES AND
 SHAREHOLDERS'
 EQUITY
Interest-
 bearing
 liabilities:
  Deposits:
   Demand       $   5,761     0.69% $      10 $   3,900     0.92% $       9
   Money market
    and savings   417,255     3.79%     3,984   288,895     3.75%     2,733
   Time            84,149     4.90%     1,039   116,353     4.22%     1,239
Other              17,527     5.93%       262    17,527     5.84%       258
                --------- --------  --------- --------- --------  ---------
Total
 interest-
 bearing
 liabilities      524,692     4.00%     5,295   426,675     3.94%     4,239
                --------- --------  --------- --------- --------  ---------

Noninterest-
 bearing
 liabilities:
   Demand
    deposits      207,753                       156,935
   Accrued
    expenses
    and other
    liabilities    11,404                         6,849
Shareholders'
 equity            57,400                        45,814
                ---------                     ---------
    TOTAL       $ 801,249                     $ 636,273
                =========                     =========


Net interest
 income and               --------  ---------           --------  ---------
 margin                       6.46% $  12,332               6.73% $  10,090
                          ========  =========           ========  =========




(1) Loan fee amortization of $1.5 million and $1.3 million, respectively,
     is included in interest income. Nonperforming loans have been
     included in average loan balances.
(2) Interest income is reflected on an actual basis, not a fully taxable
     equivalent basis. Yields are based on amortized cost.
(3) Net of average allowance for credit losses of $7.8 million and $6.7
     million, respectively.




                  BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
  INTERIM CONSOLIDATED AVERAGE BALANCE SHEET AND YIELD DATA (UNAUDITED)
                          (Dollars in Thousands)


                              Nine months ended September 30,
                -----------------------------------------------------------
                            2007                          2006
                ----------------------------- -----------------------------

                            Yields   Interest            Yields    Interest
                  Average    or      Income/   Average    or       Income/
                  Balance   Rates    Expense   Balance   Rates     Expense
                --------- --------  --------- --------- --------  ---------
ASSETS
Interest earning
 assets (2):
  Loans (1)     $ 578,204    10.45% $  45,202 $ 453,891    10.22% $  34,696
  Federal funds
   sold            62,803     5.14%     2,415    73,177     4.98%     2,723
  Investment
   securities      60,809     5.11%     2,324    12,240     3.45%       316
  Other                 -     0.00%         -         -     0.00%         -
                --------- --------  --------- --------- --------  ---------
Total interest
 earning assets   701,816     9.51%    49,941   539,308     9.35%    37,735
                --------- --------  --------- --------- --------  ---------

Noninterest-
 earning assets:
  Cash and due
   from banks      27,210                        27,596
  All other
   assets (3)      21,145                        15,545
                ---------                     ---------
      TOTAL     $ 750,171                     $ 582,449
                =========                     =========

LIABILITIES AND
 SHAREHOLDERS'
 EQUITY
Interest-
 bearing
 liabilities:
  Deposits:
   Demand       $   5,563     0.79% $      33 $   3,595     0.86% $      23
   Money market
    and savings   370,379     3.83%    10,609   245,230     3.31%     6,073
   Time            91,247     4.85%     3,307    95,708     4.08%     2,924
Other              17,527     5.97%       782    19,638     5.62%       825
                --------- --------  --------- --------- --------  ---------
Total
 interest-
 bearing
 liabilities      484,716     4.06%    14,731   364,171     3.61%     9,845
                --------- --------  --------- --------- --------  ---------

Noninterest-
 bearing
 liabilities:
   Demand
    deposits      201,103                       167,993
   Accrued
    expenses
    and other
    liabilities    10,209                         6,957
Shareholders'
 equity            54,143                        43,328
                ---------                     ---------
    TOTAL       $ 750,171                     $ 582,449
                =========                     =========


Net interest
 income and               --------  ---------           --------  ---------
 margin                       6.71% $  35,210               6.91% $  27,890
                          ========  =========           ========  =========




(1) Loan fee amortization of $4.3 million and $3.1 million, respectively,
     is included in interest income. Nonperforming loans have been included
     in average loan balances.
(2) Interest income is reflected on an actual basis, not a fully taxable
     equivalent basis. Yields are based on amortized cost.
(3) Net of average allowance for credit losses of $7.5 million and $6.3
     million, respectively.





            BRIDGE CAPITAL HOLDINGS AND SUBSIDIARY
          INTERIM CONSOLIDATED CREDIT DATA (UNAUDITED)
                  (Dollars in Thousands)



                          09/30/07  06/30/07  03/31/07  12/31/06  09/30/06
                          --------  --------  --------  --------  --------

ALLOWANCE FOR CREDIT
 LOSSES
Balance, beginning of
 period                   $  7,590  $  7,533  $  7,329  $  6,728  $  6,620
Provision for credit
 losses, quarterly             475     1,000       200       600       100
Charge-offs, quarterly        (312)     (943)        -         -         -
Recoveries, quarterly          250         -         4         1         8
                          --------  --------  --------  --------  --------
Balance, end of period    $  8,003  $  7,590  $  7,533  $  7,329  $  6,728
                          ========  ========  ========  ========  ========


NONPERFORMING ASSETS
Loans accounted for on a
 non-accrual basis        $      -  $      -  $  5,450  $    437  $  2,572
Loans restructured and
 in compliance with
 modified terms                  -         -         -         -         -
Other loans with
 principal or interest
 contractually past due
 90 days or more                 -         -         -         -         -
                          --------  --------  --------  --------  --------
   Nonperforming loans           -         -     5,450       437     2,572
Other real estate owned        425       425         -         -         -
                          --------  --------  --------  --------  --------
   Nonperforming assets   $    425  $    425  $  5,450  $    437  $  2,572
                          ========  ========  ========  ========  ========

ASSET QUALITY
Allowance for credit
 losses / gross loans         1.31%     1.25%     1.31%     1.36%     1.39%
Allowance for credit
 losses / nonperforming
 loans                        0.00%     0.00%   138.22%  1677.12%   261.59%
Nonperforming assets /
 total assets                 0.05%     0.06%     0.75%     0.06%     0.39%
Nonperforming loans /
 gross loans                  0.00%     0.00%     0.95%     0.08%     0.53%
Net quarterly
 charge-offs / gross loans    0.01%     0.16%     0.00%     0.00%     0.00%