Market Overview

Manufacturers Bank Reports 2018 First Half Earnings


Manufacturers Bank (the Bank), a California commercial bank with total
assets of $2.5 billion, is a wholly owned subsidiary of Sumitomo Mitsui
Banking Corporation (SMBC), which in turn is a wholly owned subsidiary
of Sumitomo Mitsui Financial Group (SMFG). The Bank reported net income
for the six months ended June 30, 2018 of $12.0 million, an increase of
$4.2 million, compared to $7.8 million for the same period in 2017. Due
to the Federal Tax reform the Bank's after tax earnings improved by $1.6

The Bank's year-to-date June 30, 2018 pretax income of $17.2 million
increased by $3.7 million, or 27.3%, when compared to same period prior
year. The strengthened earnings performance was a direct result of the
Fed Fund rate increases. Credit quality remained sound through the first
six months of 2018. Credit quality is reflected in the percentage of
non-accrual loans to total loans at 0.41% as of June 30, 2018. The
allowance for credit loss ratio remains satisfactory at 1.79% as of June
30, 2018.

Capital remained strong as evidenced by Tier 1 and Total risk-based
capital ratios of 13.36% and 14.61%, respectively; both ratios exceed
the minimum requirements of a well-capitalized institution of 8.00% and
10.00%, respectively.

Message from Naresh Sheth, President & COO

Naresh Sheth, President and Chief Operating Officer, commented, "We are
delighted with our financial results for the First Half of 2018. Beyond
the favorable impact of the reduced effective tax rate, the Bank has
been able to benefit, in this rising interest rate environment, from our
well positioned asset sensitive balance sheet.

"We remain a trusted long-term financial partner that provides
extraordinary personalized service to professionals, individual
customers and many local small businesses. All decisions are made
locally by people who understand the unique financial needs of the
business people and the communities we serve. We know that quick
decision making, flexibility and responsiveness are important to our
customers. We are enthusiastic as we enter the third quarter of 2018. As
we move forward, our commitment to you is to provide premier products
and the upmost service that will make you successful.

"Mr. Kusakabe, Chairman & CEO, and I thank you for being our valued
customers as we want your customer experience with MB to be financially
successful. Our employees strive to accomplish one-on-one relationships
with each and every customer. I thank our employees for their
perseverance and solution oriented commitment to satisfy your business
needs. We look forward to partnering with you in the second half of

Manufacturers Bank has been operating mainly in Southern California,
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 a depository
rating, Excellent 4 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, Glendale, San Jose, Torrance, Newport Beach and

Member FDIC
Equal Opportunity Lender
Housing Lender

SBA Preferred National Lender

All statements in this release, except for historical facts, 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.

For additional information please contact: Cindy Rude, SVP, Marketing
& Product Development Manager, 213-489-6353 or Karen Abajian, EVP, Chief
Financial Officer, 213-489-6478.

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