| x      | Quarterly      Report Pursuant to Section 13 or 15(d) of the Securities      Exchange Act of 1934 for the quarterly period ended June 30,      2008             |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                      |
| or     |
|   |                                                                                                                                                                      |
| o      | Transition      Report Pursuant to Section 13 or 15(d) of the Securities      Exchange Act of 1934 for the transition period from __________ to      __________ |

| California                    | 20-8356735                                |
|-------------------------------|-------------------------------------------|
| (State      of incorporation) | (I.R.S.      Employer Identification No.) |

| One      Maritime Plaza, Suite 825 San Francisco, CA | 94111           |
|-----------------------------------------------------------|-----------------|
| (Address      of principal executive offices)             | (Zip      Code) |

| Yes       x |   | No       o |
|------------------|--------|-----------------|

| Large      accelerated filer o                                                            |   | Accelerated      filer o         |   |
|-------------------------------------------------------------------------------------------|--------|----------------------------------|--------|
| Non-accelerated      filer o (Do not      check if a smaller reporting company) |   | Smaller      reporting company x |   |

| Yes       o |   | No       x |
|------------------|--------|-----------------|

----

|                                           |                                                                                                  | Page   |
|------------------------------------------------|-------------------------------------------------------------------------------------------------------|--------|
|                                           |                                                                                                  |   |
| PART I      – FINANCIAL INFORMATION |
|                                           |                                                                                                  |   |
| ITEM 1.                                   | FINANCIAL      STATEMENTS                                                                             | F-1    |
|                                           |                                                                                                  |   |
| ITEM 2.                                   | MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS | 3      |
|                                           |                                                                                                  |   |
| ITEM 3.                                   | QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                       | 15     |
|                                           |                                                                                                  |   |
| ITEM 4T.                                  | CONTROLS      AND PROCEDURES                                                                          | 15     |
|                                           |                                                                                                  |   |
| PART      II – OTHER INFORMATION         |
|                                           |                                                                                                  |   |
| ITEM 1.                                   | LEGAL      PROCEEDINGS                                                                                | 16     |
|                                           |                                                                                                  |   |
| ITEM 1A.                                  | RISK      FACTORS                                                                                     | 16     |
|                                           |                                                                                                  |   |
| ITEM 2.                                   | UNREGISTERED      SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                                      | 16     |
|                                           |                                                                                                  |   |
| ITEM 3.                                   | DEFAULTS      UPON SENIOR SECURITIES                                                                  | 16     |
|                                           |                                                                                                  |   |
| ITEM 4.                                   | SUBMISSION      OF MATTERS TO A VOTE OF SECURITY HOLDERS                                              | 16     |
|                                           |                                                                                                  |   |
| ITEM      5.                                   | OTHER      INFORMATION                                                                                | 16     |
|                                           |                                                                                                  |   |
| ITEM 6.                                   | EXHIBITS                                                                                              | 16     |
|                                           |                                                                                                  |   |
|                                           | SIGNATURES                                                                                            | 17     |
|                                           |                                                                                                  |   |
|                                           | CERTIFICATIONS                                                                                        |   |

----

|                                                                                                                                                                                                                |   | June      30,2008 |        |   | December      31, 2007 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-------------|--------|------------------------|--------|
|                                                                                                                                                                                                                |   |              |        |   |                   |   |
| Cash      and due from banks                                                                                                                                                                                        |   | $                 | 10,154,514  |   |                   | $      | 4,401,632 |   |
| Federal      Funds sold                                                                                                                                                                                             |   |              | 34,080,000  |   |                   |   | 9,130,000 |   |
| Total      cash and cash equivalents                                                                                                                                                                                |   |              | 44,234,514  |   |                   |   | 13,531,632 |   |
|                                                                                                                                                                                                                |   |              |        |   |                   |   |   |   |
| Interest-bearing deposits in      other financial institutions                                                                                                                                                 |   |              | 614,000     |   |                   |   | 100,000 |   |
| Investment      securities available for sale                                                                                                                                                                       |   |              | 31,957,642  |   |                   |   | 8,786,293 |   |
|                                                                                                                                                                                                                |   |              |        |   |                   |   |   |   |
| Loans,      net of allowance for loan losses of $5,384,728 at June 30, 2008      and      $4,077,213 at December 31, 2007                                                                                           |   |              | 302,966,691 |   |                   |   | 210,257,162 |   |
| Premises      and equipment, net                                                                                                                                                                                    |   |              | 5,218,899   |   |                   |   | 461,760 |   |
| Goodwill                                                                                                                                                                                                            |   |              | 57,291,432  |   |                   |   | 29,459,783 |   |
| Other      intangible assets, net                                                                                                                                                                                   |   |              | 2,844,610   |   |                   |   | 2,368,172 |   |
| Federal      Home Loan Bank stock, at cost                                                                                                                                                                          |   |              | 1,078,400   |   |                   |   | 916,300 |   |
| Other      real estate owned                                                                                                                                                                                        |   |              | 1,536,905   |   |                   |   | - |   |
| Accrued      interest and other assets                                                                                                                                                                              |   |              | 11,178,849  |   |                   |   | 4,198,740 |   |
| Total      assets                                                                                                                                                                                                   |   | $                 | 458,921,942 |   |                   | $      | 270,079,842 |   |
|                                                                                                                                                                                                                |   |              |        |   |                   |   |   |   |
|                                                                                                                                                                                                                |   |              |        |   |                   |   |   |   |
| Deposits                                                                                                                                                                                                            |   |              |        |   |                   |   |   |   |
| Noninterest      bearing demand                                                                                                                                                                                     |   | $                 | 111,385,625 |   |                   | $      | 73,358,729 |   |
| NOW,      savings and money market accounts                                                                                                                                                                         |   |              | 84,800,613  |   |                   |   | 49,514,411 |   |
| Time      deposits under $100,000                                                                                                                                                                                   |   |              | 79,112,536  |   |                   |   | 45,460,646 |   |
| Time      deposits over $100,000                                                                                                                                                                                    |   |              | 67,441,060  |   |                   |   | 25,715,811 |   |
| Total      deposits                                                                                                                                                                                                 |   |              | 342,739,834 |   |                   |   | 194,049,597 |   |
|                                                                                                                                                                                                                |   |              |        |   |                   |   |   |   |
| Federal      Home Loan Bank advances                                                                                                                                                                                |   |              | 12,600,000  |   |                   |   | 18,000,000 |   |
| Notes      payable                                                                                                                                                                                                  |   |              | 8,000,000   |   |                   |   | - |   |
| Junior      subordinated debentures                                                                                                                                                                                 |   |              | 15,464,000  |   |                   |   | - |   |
| Accrued      interest and other liabilities                                                                                                                                                                         |   |              | 4,526,440   |   |                   |   | 3,044,416 |   |
| Total      liabilities                                                                                                                                                                                              |   |              | 383,330,274 |   |                   |   | 215,094,013 |   |
|                                                                                                                                                                                                                |   |              |        |   |                   |   |   |   |
| Commitments      and Contingencies (Note 3)                                                                                                                                                                         |   |              |        |   |                   |   |   |   |
|                                                                                                                                                                                                                |   |              |        |   |                   |   |   |   |
| Shareholders’      equity:                                                                                                                                                                                    |   |              |        |   |                   |   |   |   |
| Preferred      Stock - non-cumulative, perpetual, no par value; authorized      20,000,000 shares; 868,299 and 806,666 shares issued and      outstanding at June 30, 2008 and December 31, 2007,      respectively |   |              | 21,307,475  |   |                   |   | 19,766,650 |   |
| Common      Stock - no par value; authorized 20,000,000 shares; 3,330,738 and      2,011,343 shares issued and outstanding at June 30, 2008 and      December 31, 2007, respectively                                |   |              | 57,917,066  |   |                   |   | 35,749,587 |   |
| Accumulated      deficit                                                                                                                                                                                            |   |              | (3,337,564  | )      |                   |   | (540,408 | ) |
| Accumulated      other comprehensive (loss) income, net of taxes                                                                                                                                                    |   |              | (295,309    | )      |                   |   | 10,000 |   |
| Total      shareholders’ equity                                                                                                                                                                               |   |              | 75,591,668  |   |                   |   | 54,985,829 |   |
| Total      liabilities and shareholders' equity                                                                                                                                                                     |   | $                 | 458,921,942 |   |                   | $      | 270,079,842 |   |

----

|                                                      |   | Three-month      period ended June 30, |       |   | Six-month      period ended June 30, |      |
|-----------------------------------------------------------|--------|----------------------------------------|------------|--------|--------------------------------------|-----------|
|                                                      |   | Belvedere      SoCal and Subsidiaries  |       |   | Professional      Business      Bank |      |   | Belvedere      SoCal and Subsidiaries |   |   | Professional      Business      Bank |   |
|                                                      |   | 2008                                   |       |   | 2007                                 |      |   | 2008 |   |   | 2007 |   |
|                                                      |   |                                   |       |   |                                 |      |   |   |   |   |   |   |
| Interest      income:                                     |   |                                   |       |   |                                 |      |   |   |   |   |   |   |
| Interest      and fees on loans                           |   | $                                      | 5,431,718  |   |                                 | $         | 3,583,107 |   |   | $ | 10,816,269 |   |   | $ | 6,772,985 |   |
| Interest      on investment securities                    |   |                                   | 370,949    |   |                                 |      | 91,970 |   |   |   | 685,662 |   |   |   | 339,300 |   |
| Other      interest income                                |   |                                   | 133,542    |   |                                 |      | 250,287 |   |   |   | 273,647 |   |   |   | 440,221 |   |
| Total      interest income                                |   |                                   | 5,936,209  |   |                                 |      | 3,925,364 |   |   |   | 11,775,578 |   |   |   | 7,552,506 |   |
|                                                      |   |                                   |       |   |                                 |      |   |   |   |   |   |   |   |   |   |   |
| Interest      expense:                                    |   |                                   |       |   |                                 |      |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                  |   |                                   | 1,662,062  |   |                                 |      | 1,226,122 |   |   |   | 3,043,746 |   |   |   | 2,333,663 |   |
| Junior      subordinated debentures                       |   |                                   | 442,442    |   |                                 |      | 0 |   |   |   | 644,334 |   |   |   | 0 |   |
| Other      borrowings                                     |   |                                   | 175,324    |   |                                 |      | 29,467 |   |   |   | 441,149 |   |   |   | 75,675 |   |
| Total      interest expense                               |   |                                   | 2,279,828  |   |                                 |      | 1,255,589 |   |   |   | 4,129,229 |   |   |   | 2,409,338 |   |
|                                                      |   |                                   |       |   |                                 |      |   |   |   |   |   |   |   |   |   |   |
| Net      interest income before provision for loan losses |   | 3,656,381                              |       |   |                                 | 2,669,775 |   |   |   | 7,646,349 |   |   |   | 5,143,168 |   |
|                                                      |   |                                   |       |   |                                 |      |   |   |   |   |   |   |   |   |   |   |
| Provision      for loan losses                            |   |                                   | 1,103,235  |   |                                 |      | 380,000 |   |   |   | 2,060,530 |   |   |   | 537,000 |   |
| Net      interest income after provision for loan losses  |   | 2,553,146                              |       |   |                                 | 2,289,775 |   |   |   | 5,585,819 |   |   |   | 4,606,168 |   |
|                                                      |   |                                   |       |   |                                 |      |   |   |   |   |   |   |   |   |   |   |
| Non-interest      income                                  |   |                                   |       |   |                                 |      |   |   |   |   |   |   |   |   |   |   |
| Service      charges and fees                             |   |                                   | 277,141    |   |                                 |      | 59,394 |   |   |   | 546,817 |   |   |   | 191,374 |   |
| Other      income                                         |   |                                   | 86,082     |   |                                 |      | 43,704 |   |   |   | 143,281 |   |   |   | 45,073 |   |
| Total      non-interest income                            |   |                                   | 363,223    |   |                                 |      | 103,098 |   |   |   | 690,098 |   |   |   | 236,447 |   |
|                                                      |   |                                   |       |   |                                 |      |   |   |   |   |   |   |   |   |   |   |
| Non-interest      expense                                 |   |                                   |       |   |                                 |      |   |   |   |   |   |   |   |   |   |   |
| Salaries      and employee benefits                       |   |                                   | 2,152,490  |   |                                 |      | 1,547,897 |   |   |   | 4,621,273 |   |   |   | 2,850,982 |   |
| Occupancy      and equipment                              |   |                                   | 389,972    |   |                                 |      | 172,582 |   |   |   | 715,075 |   |   |   | 319,956 |   |
| Professional      fees                                    |   |                                   | 515,543    |   |                                 |      | 242,054 |   |   |   | 1,101,640 |   |   |   | 625,981 |   |
| Data      processing                                      |   |                                   | 389,971    |   |                                 |      | 162,125 |   |   |   | 657,630 |   |   |   | 296,980 |   |
| Marketing      and business promotion                     |   |                                   | 64,432     |   |                                 |      | 31,966 |   |   |   | 113,295 |   |   |   | 64,344 |   |
| Office      and administrative expenses                   |   |                                   | 251,033    |   |                                 |      | 222,900 |   |   |   | 492,960 |   |   |   | 385,343 |   |
| Other      expenses                                       |   |                                   | 402,618    |   |                                 |      | 216,029 |   |   |   | 829,010 |   |   |   | 331,670 |   |
| Total      non-interest expense                           |   |                                   | 4,166,059  |   |                                 |      | 2,595,553 |   |   |   | 8,530,883 |   |   |   | 4,875,256 |   |
|                                                      |   |                                   |       |   |                                 |      |   |   |   |   |   |   |   |   |   |   |
| Loss      before income taxes                             |   |                                   | (1,249,690 | )      |                                 |      | (202,680 | ) |   |   | (2,254,966 | ) |   |   | (32,641 | ) |
|                                                      |   |                                   |       |   |                                 |      |   |   |   |   |   |   |   |   |   |   |
| Provision      for income tax (benefit) expense           |   |                                   | (554,758   | )      |                                 |      | (20,577 | ) |   |   | (998,635 | ) |   |   | 120,737 |   |
|                                                      |   |                                   |       |   |                                 |      |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                             |   | $                                      | (694,932   | )      |                                 | $         | (182,103 | ) |   | $ | (1,256,331 | ) |   | $ | (153,378 | ) |
|                                                      |   |                                   |       |   |                                 |      |   |   |   |   |   |   |   |   |   |   |
| Net      loss per share - basic and diluted               |   | $                                      | (0.44      | )      |                                 | $         | (0.09 | ) |   | $ | (0.90 | ) |   | $ | (0.08 | ) |
|                                                      |   |                                   |       |   |                                 |      |   |   |   |   |   |   |   |   |   |   |
| Weighted      average shares:                             |   |                                   |       |   |                                 |      |   |   |   |   |   |   |   |   |   |   |
| Basic      and diluted                                    |   |                                   | 3,330,263  |   |                                 |      | 1,970,070 |   |   |   | 3,104,569 |   |   |   | 1,992,131 |   |

----

|                                                                                              |   | Preferred      Stock |    |   | Common      Stock |   |       |                 |      |   |      |   |       | AccumulatedOther        |       |
|---------------------------------------------------------------------------------------------------|--------|----------------------|---------|--------|-------------------|--------|------------|----------------------|-----------|--------|-----------|--------|------------|-------------------------|------------|
|                                                                                              |   | Numberof      Shares |    |   | Amount            |   |       | Numberof      Shares |      |   | Amount    |   |       | Comprehensive      Loss |       |   | AccumulatedDeficit |   |   | Comprehensive      (Loss) Income |   |
|                                                                                              |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   |   |   |   |   |
| Common      stock issued                                                                          |   |                 |    |   |              |   |       |                 | 1,125,539 |   |      | $      | 11,500,000 |                    |       |   |   |   |   |   |   |   |   |
|                                                                                              |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   |   |   |   |   |   |   |
| Series      A non-cumulative perpetual preferred stock                                       |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   |   |   |   |   |   |   |
| issued,      net of issuance cots                                                                 |   |                 | 800,000 |   |              | $      | 19,600,000 |                 |      |   |      |   |       |                    |       |   |   |   |   |   |   |   |   |   |   |
|                                                                                              |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   |   |   |   |   |   |   |   |   |
| Common      stock issued foracquisition of      Professional Business Bank, net of issuance costs |   |                 |    |   |              |   |       |                 |      |   | 885,804   |   |       |                    | 24,249,587 |   |   |   |   |   |   |   |   |   |   |
|                                                                                              |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      loss:                                                                          |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                                                                     |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   | $ | (373,758 | ) |   | $ | (373,758 | ) |   |   |   |
| Unrealized      gain on available-for-sale securities, net of tax                                 |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   |   | 10,000 |   |   |   |   |   |   | $ | 10,000 |   |
| Total      comprehensive loss                                                                     |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   | $ | (363,758 | ) |   |   |   |   |   |   |   |   |
|                                                                                              |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Series      A preferred stock dividend declared                                                   |   |                 | 6,666   |   |              |   | 166,650    |                 |      |   |      |   |       |                    |       |   |   |   |   |   |   |   | (166,650 | ) |   |   |   |   |
|                                                                                              |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      December 31, 2007                                                                    |   |                 | 806,666 |   |              |   | 19,766,650 |                 |      |   | 2,011,343 |   |       |                    | 35,749,587 |   |   |   |   |   |   |   | (540,408) |   |   |   | 10,000 |   |
|                                                                                              |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Warrants      exercised                                                                           |   |                 |    |   |              |   |       |                 |      |   | 5,963     |   |       |                    | 60         |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                              |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock-based      compensation                                                                     |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    | 167,470    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                              |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      stock issued                                                                          |   |                 |    |   |              |   |       |                 |      |   | 1,313,432 |   |       |                    | 22,000,000 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                              |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      payments for fractional shares                                                          |   |                 |    |   |              |   |       |                 |      |   |      | (51    | )          |                    |       |   |   |   |   |   |   |   |   |   |   |
|                                                                                              |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      loss:                                                                          |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net      loss                                                                         |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   |   | (1,256,331 | ) |   |   | (1,256,331 | ) |   |   |   |   |
|                                                                                              |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change      in unrealized gain (loss) on available-for-sale securities, net      of tax      |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   |   | (305,309) |   |   |   |   |   |   |   | (305,309)  |   |
| Total      comprehensive loss                                                                     |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   | $ | (1,925,398 | ) |   |   |   |   |   |   |   |   |
|                                                                                              |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Series      A preferred stock dividends declared                                                  |   |                 | 61,633  |   |              |   | 1,540,825  |                 |      |   |      |   |       |                    |       |   |   |   |   |   |   |   | (1,540,825 | ) |   |   |   |   |
|                                                                                              |   |                 |    |   |              |   |       |                 |      |   |      |   |       |                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      June 30, 2008                                                                        |   |                 | 868,299 |   |              | $      | 21,307,475 |                 |      |   | 3,330,738 |   |       | $                       | 57,917,066 |   |   |   |   |   |   | $ | (3,337,564 | ) |   | $ | (295,309 | )  |

----

|                                                                                                  |   | BelvedereSoCal      and Subsidiaries |             |   | Professional      Business      Bank |   |
|-------------------------------------------------------------------------------------------------------|--------|--------------------------------------|------------------|--------|--------------------------------------|--------|
|                                                                                                  |   | 2008                                 |             |   | 2007                                 |   |
| Operating      activities:                                                                            |   |                                 |             |   |                                 |   |
| Net      loss                                                                                         |   | $                                    | (1,256,331       | )      |                                 | $      | (153,378) |   |
| Adjustments      to reconcile net loss to net cash (used in) provided by operating      activities:   |   |                                 |             |   |                                 |   |   |   |
| Depreciation      and amortization expense                                                            |   |                                 | 356,972          |   |                                 |   | 68,348 |   |
| Provision      for loan losses                                                                        |   |                                 | 2,060,530        |   |                                 |   | 537,000 |   |
| Stock-based      compensation                                                                         |   |                                 | 167,470          |   |                                 |   | 129,693 |   |
| Net      decrease (increase) in accrued interest and other assets                                     |   |                                 | 2,073,421        |   |                                 |   | (422,121 | )  |
| Net      (decrease) increase in accrued interest and other    liabilities                             |   |                                 | (7,502,560)      |   |                                 |   | 1,674 |   |
| Net      cash (used in) provided by operating activities                                              |   |                                 | (4,885,099       | )      |                                 |   | 161,216 |   |
|                                                                                                  |   |                                 |             |   |                                 |   |   |   |
| Investing      activities:                                                                            |   |                                 |             |   |                                 |   |   |   |
| Proceeds      from maturities and principal paydowns of available-for-sale investment      securities |   |                                 | 18,368,178       |   |                                 |   | 1,543,570 |   |
| Proceeds      from issuance of junior subordinated debentures                                         |   |                                 | 464,000          |   |                                 |   | - |   |
| Net      decrease in interest-bearing deposits in other financial      institutions                   |   |                                 | 2,094,000        |   |                                 |   | 4,799,000 |   |
| Increase      in loans, net                                                                           |   |                                 | (16,858,787      | )      |                                 |   | (36,100,305 | ) |
| Purchases      of premises and equipment                                                              |   |                                 | (45,454          | )      |                                 |   | (157,524 | ) |
| Purchase      of FHLB stock                                                                           |   |                                 | (162,100         | )      |                                 |   | (76,300 | ) |
| Cash      received in connection with the acquisition of Spectrum Bank, net of cash      paid         |   |                                 | 127,811          |   |                                 |   |  - |   |
| Net      cash provided by (used in) investing activities                                         |   |                                 | 3,523,648        |   |                                 |   | (29,991,559 | ) |
|                                                                                                  |   |                                 |             |   |                                 |   |   |   |
|                                                                                                  |   |                                 |             |   |                                 |   |   |   |
| Financing      activities:                                                                            |   |                                 |             |   |                                 |   |   |   |
| Net      increase in deposits                                                                         |   |                                 | 6,679,724        |   |                                 |   | 22,583,602 |   |
| Net      (decrease) increase in Federal Home Loan Bankadvances                                   |   |                                 | (5,400,000)      |   |                                 |   | 4,000,000 |   |
| Proceeds      from note payable                                                                       |   |                                 | 8,000,000        |   |                                 |   |        - |   |
| Investment      in Belvedere Statutory Trust I                                                        |   |                                 | (464,000         | )      |                                 |   | - |   |
| Proceeds      from exercise of stock options                                                          |   |                                 | -                |   |                                 |   | 12,321 |   |
| Proceeds      from sale of stock                                                            |   |                                 |  22,000,000 |   |                                 |   |  - |   |
| Cash      payments for fractional shares                                                              |   |                                 | (51              | )      |                                 |   |  - |   |
| Proceeds      from exercise of warrants                                                               |   |                                 | 60               |   |                                 |   |  - |   |
| Net      cash provided by financing activities                                                        |   |                                 | 31,279,733       |   |                                 |   | 26,595,923 |   |
|                                                                                                  |   |                                 |             |   |                                 |   |   |   |
| Increase      (decrease) in cash and cash equivalents                                            |   |                                 | 30,702,882       |   |                                 |   | (3,234,420) |   |
|                                                                                                  |   |                                 |             |   |                                 |   |   |   |
| Cash      and cash equivalents, beginning of period                                                   |   |                                 | 13,531,632       |   |                                 |   | 9,683,852 |   |
|                                                                                                  |   |                                 |             |   |                                 |   |   |   |
| Cash      and cash equivalents, end of period                                                         |   | $                                    | 44,234,514       |   |                                 | $      | 6,449,432 |   |
|                                                                                                  |   |                                 |             |   |                                 |   |   |   |
| Noncash      financing activities                                                                     |   |                                 |             |   |                                 |   |   |   |
| Loans      transferred to other real estate owned                                                     |   | $                                    | 1,536,905        |   |                                 | $      | - |   |
| Preferred      stock dividends declared                                                               |   | $                                    | 1,540,825        |   |                                 | $      | - |   |
|                                                                                                  |   |                                 |             |   |                                 |   |   |   |
| Supplemental      cash flow information                                                               |   |                                 |             |   |                                 |   |   |   |
| Interest      paid                                                                                    |   | $                                    | 4,262,894        |   |                                 | $      | 1,153,388 |   |
| Taxes      paid                                                                                       |   | $                                    | 2,400            |   |                                 | $      | 268,000 |   |

----

| 1. | Nature      of Business and Basis ofPresentation |
|----|--------------------------------------------------|

| 2. | Recent      Accounting Pronouncements |
|----|---------------------------------------|

----

| 3. | Commitments      and Contingencies |
|----|------------------------------------|

| Year      Ending  |   |   |    |
|-------------------|--------|--------|---------|
| December      31, |   |   |    |
|              |   |   |    |
| 2008              |   | $      | 225,810 |   |
| 2009              |   |   | 58,380  |   |
| 2010              |   |   | 53,940  |   |
| 2011              |   |   | 34,960  |   |
|              |   |   |    |   |
| Total             |   | $      | 373,090 |   |

| 4. | Comprehensive      Income |
|----|---------------------------|

| 5. | Stock-Based      Compensation |
|----|-------------------------------|

----

| Risk-free      interest rate                            | 3.21%        |
|---------------------------------------------------------|--------------|
| Expected      life                                      | 6      years |
| Expected      volatility                                | 28%          |
| Expected      dividend yield                            | N/A          |
| Weighted      average grant date fair value   | $5.10        |

|                                              |   | Shares |    |   | Weighted      Average      Exercise Price |   |  Weighted      Average      Remaining      Contractual Term |   | Aggregate      Intrinsic      Value |   |
|---------------------------------------------------|--------|--------|---------|--------|-------------------------------------------|--------|------------------------------------------------------------------|--------|-------------------------------------|--------|
| Outstanding      December 31, 2007                |   |   | 135,041 |   |                                      | $      | 15.21                                                            |   |                                |   |   |   |
|    Options      granted            |   |   | 350,811 |   |                                      | $      | 15.00                                                            |   |                                |   |   |   |
|    Options      forfeited          |   |   | (19,955 | )      |                                      | $      | 15.00                                                            |   |                                |   |   |   |
|    Options      exercised          |   |   | -       |   |                                      |   |                                                             |   |                                |   |   |   |
| Outstanding      at June 30, 2008                 |   |   | 465,897 |   |                                      | $      | 15.06                                                            |   | 8.5      years                      |   | $ | - |   |
| Options      exercisable, June 30, 2008           |   |   | 135,041 |   |                                      | $      | 15.21                                                            |   | 5.6      years                      |   | $ | - |   |
|                                              |   |   |    |   |                                      |   |                                                             |   |                                |   |   |   |   |
| Options      expected to vest after June 30, 2008 |   |   | 314,901 |   |                                      | $      | 15.00                                                            |   | 9.7 years                      |   | $ | - |   |

| 6. | Earnings      Per Share |
|----|-------------------------|

|  SoCalThree-month      period ended June 30, 2008 |   | Net      Loss |   |   | Weighted      Average      Number      of Shares      Outstanding |   | Per      ShareAmount |   |
|-------------------------------------------------------------|--------|---------------|--------|--------|-------------------------------------------------------------------|--------|----------------------|--------|
|                                                        |   |          |   |   |                                                              |   |                 |   |   |   |
| Basic      loss per share:                                  |   |          |   |   |                                                              |   |                 |   |   |   |
| Net      loss                                               |   | $             | (695   | )      |                                                              |   |                 |   |   |   |
| Preferred      stock dividend                               |   |          | (785   | )      |                                                              |   |                 |   |   |   |
|                                                        |   |          |   |   |                                                              |   |                 |   |   |   |
| Net      loss available to common shareholders              |   | $             | (1,480 | )      |                                                              |   | 3,330,263            |   |   | $ | (0.44 | ) |

|  Professional      Business BankThree-month      period ended June 30, 2007 |   | Net      Loss |   |   | Weighted      Average      Number      of Shares      Outstanding |   | Per      ShareAmount |   |
|---------------------------------------------------------------------------------------|--------|---------------|--------|--------|-------------------------------------------------------------------|--------|----------------------|--------|
|                                                                                  |   |          |   |   |                                                              |   |                 |   |   |   |   |   |
| Net      loss available to common shareholders                                        |   | $             | (182   | )      |                                                              |   | 1,970,070            |   |   | $ | (0.09) |   |

----

|  SoCalSix-month      period ended June 30, 2008 |   | Net      Loss |   |   | Weighted      Average      Number      of Shares      Outstanding |   | Per      ShareAmount |   |
|-----------------------------------------------------------|--------|---------------|--------|--------|-------------------------------------------------------------------|--------|----------------------|--------|
|                                                      |   |          |   |   |                                                              |   |                 |   |   |   |
| Basic      loss per share:                                |   |          |   |   |                                                              |   |                 |   |   |   |
| Net      loss                                             |   | $             | (1,256 | )      |                                                              |   |                 |   |   |   |
| Preferred      stock dividend                             |   |          | (1,541 | )      |                                                              |   |                 |   |   |   |
|                                                      |   |          |   |   |                                                              |   |                 |   |   |   |
| Net      loss available to common shareholders            |   | $             | (2,797 | )      |                                                              |   | 3,104,569            |   |   | $ | (0.90 | ) |

|  Professional      Business BankSix-month      period ended June 30, 2007 |   | Net      Loss |   |   | Weighted      Average      Number      of Shares      Outstanding |   | Per      ShareAmount |   |
|-------------------------------------------------------------------------------------|--------|---------------|--------|--------|-------------------------------------------------------------------|--------|----------------------|--------|
|                                                                                |   |          |   |   |                                                              |   |                 |   |   |   |   |   |
| Net      loss available to common shareholders                                      |   | $             | (153   | )      |                                                              |   | 1,992,131            |   |   | $ | (0.08) |   |

| 7. | Allowance      for Loan Losses |
|----|--------------------------------|

|                                               |   | Three-month      period ended June 30, |   |   | Six-month      period ended June 30, |   |
|----------------------------------------------------|--------|----------------------------------------|--------|--------|--------------------------------------|--------|
|                                               |   | 2008                                   |   |   | 2007                                 |   |   | 2008 |   |   | 2007 |   |
| Balance      at beginning of period                |   | $                                      | 6,254  |   |                                 | $      | 2,026 |   |   | $ | 4,077 |   |   | $ | 1,869 |   |
| Allowance      acquired at acquisition of Spectrum |   |                                   | -      |   |                                 |   | - |   |   |   | 1,436 |   |   |   | - |   |
| Additional      provision                          |   |                                   | 1,104  |   |                                 |   | 380 |   |   |   | 2,061 |   |   |   | 537 |   |
| Charge-offs                                        |   |                                   | (1,973 | )      |                                 |   | (2 | )  |   |   | (2,205 | ) |   |   | (2 | )  |
| Recoveries                                         |   |                                   | -      |   |                                 |   | - |   |   |   | 16 |   |   |   | - |   |
| Total                                              |   | $                                      | 5,385  |   |                                 | $      | 2,404 |   |   | $ | 5,385 |   |   | $ | 2,404 |   |

----

| 8. | Acquisition      of SpectrumBank |
|----|----------------------------------|

Effective January 31, 2008, SoCal acquired all ofthe common stock of Spectrum, a California state-chartered bank headquartered inIrvine, California with branch offices in Huntington Beach and Montebello,California.  All the outstanding Spectrum shares were exchanged for$20.2 million in cash and $15 million in trust preferredsecurities.  The acquisition was accounted for in accordance withSFAS No. 141, BusinessCombinations.  Accordingly, the net assets were recorded attheir estimated fair values, and the operating results were included in thefinancial statements from the date ofacquisition.  Goodwill totaled $27.8 million (none of which isdeductible for tax purposes) and a core deposit intangible of $722 thousand wasrecorded and is being amortized over approximately sevenyears.  Capitalized direct transaction costs were approximately $1million including $740,000 paid to the Fund.  The allocation of thepurchase price to the assets and liabilities acquired will be finalized no laterthan fourth quarter 2008, as SoCal obtains more information regarding assetvaluations, liabilities assumed and revisions of preliminary estimates of fairvalues made at the date of purchase.  The purchase price has beenallocated on a preliminary basis, using information currently available aspresented below (dollars in thousands):

| Assets      acquired:                                          |   |   |    |
|----------------------------------------------------------------|--------|--------|---------|
| Cash      and due from banks                                   |   | $      | 4,283   |   |
| Federal      funds sold                                        |   |   | 17,080  |   |
| Interest-bearing      deposits in other financial institutions |   |   | 2,608   |   |
| Investment      securities available for sale                  |   |   | 41,475  |   |
| Loans,      net                                                |   |   | 79,452  |   |
| Premises      and equipment                                    |   |   | 4,947   |   |
| Goodwill                                                       |   |   | 27,832  |   |
| Other      intangible assets, net                              |   |   | 722     |   |
| Accrued      interest and other assets                         |   |   | 9,043   |   |
|                                                           |   |   |    |   |
| Total      assets acquired                                     |   |   | 187,442 |   |
|                                                           |   |   |    |   |
| Liabilities      assumed:                                      |   |   |    |   |
| Total      deposits                                            |   |   | 142,011 |   |
| Accrued      interest and other liabilities                    |   |   | 9,196   |   |
|                                                           |   |   |    |   |
| Total      liabilities assumed                                 |   |   | 151,207 |   |
|                                                           |   |   |    |   |
| Total      consideration paid                                  |   | $      | 36,235  |   |

| 9. | Junior      SubordinatedDebentures |
|----|------------------------------------|

| 10.  | Note      Payable |
|-----------|-------------------|

----

| 11. | Other Real Estate      Owned |
|-----|------------------------------|

| 12. | Pro      forma financial  information |
|-----|---------------------------------------|

|                                                        |   | Three-month      period ended June 30, |   |   | Six-month      period ended June 30, |   |
|-------------------------------------------------------------|--------|----------------------------------------|--------|--------|--------------------------------------|--------|
|                                                        |   | 2008                                   |   |   | 2007                                 |   |   | 2008 |   |   | 2007 |   |
|                                                        |   |                                   |   |   |                                 |   |   |   |   |   |   |   |
| Revenue      (net interest income plus non-interest income) |   | $                                      | 4,020  |   |                                 | $      | 4,654 |   |   | $ | 8,868 |   |   | $ | 9,284 |   |
|                                                        |   |                                   |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Net      (loss) income                                      |   | $                                      | (1,480 | )      |                                 | $      | 100 |   |   | $ | (5,065 | ) |   | $ | 503 |   |
|                                                        |   |                                   |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Basic      (loss) earnings per share                        |   | $                                      | (0.44  | )      |                                 | $      | 0.03 |   |   | $ | (0.84 | ) |   | $ | 0.15 |   |
|                                                        |   |                                   |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      (loss) earnings per share                      |   | $                                      | (0.44  | )      |                                 | $      | 0.03 |   |   | $ | (0.84 | ) |   | $ | 0.15 |   |

| 13.  | Fair      Value Measurements |
|-----------|------------------------------|

| · Level      1 | inputs      to the valuation methodology are quoted prices (unadjusted) for identical      assets or liabilities in active markets.                                                                                                                                                        |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |                                                                                                                                                                                                                                                                                       |
| · Level      2 | inputs      to the valuation methodology include quoted prices for similar assets and      liabilities in active markets, and inputs that are observable for the      asset or liability, either directly or indirectly, for substantially the      full term of the financial instrument. |
|                |                                                                                                                                                                                                                                                                                       |
| · Level      3 | inputs      to the valuation methodology are unobservable and significant to the fair      value measurement.                                                                                                                                                                              |

----

|                                          |   |               |   |           |   | Fair      Value Measurements at June 30, 2008 Using |
|-----------------------------------------------|--------|--------------------|--------|----------------|--------|-----------------------------------------------------|
|                                          |   |               |   |           |   | Quoted      Prices in                               |   |   |   |   |
|                                          |   |               |   |           |   | Active      Markets for                             |   | Significant      Other |   | Significant |
|                                          |   |               |   |           |   | Identical      Assets                               |   | Observable      Inputs |   | Unobservable      Inputs |
| (in      000’s)                         |   | June      30, 2008 |   | (Level      1) |   | (Level      2)                                      |   | (Level      3) |
|                                          |   |               |   |           |   |                                                |   |   |   |   |   |   |   |   |   |   |
| Assets:                                       |   |               |   |           |   |                                                |   |   |   |   |   |   |   |   |   |   |
| Available-for-sale      investment securities |   | $                  | 31,958 |           |   | $                                                   |  — |   |   | $ | 31,958 |   |   | $ |  — |   |

|                |   |               |   |                                                                              | Fair      Value Measurements at June 30, 2008 Using |
|---------------------|--------|--------------------|--------|-----------------------------------------------------------------------------------|-----------------------------------------------------|
| (in      000's)     |   | June      30, 2008 |   | Quoted      Prices in Active      Markets for Identical      Assets(Level      1) |                                                | Significant      Other Observable      Inputs(Level      2) |   | Significant      Unobservable      Inputs(Level      3) |
| Assets:             |   |               |   |                                                                              |                                                |   |   |   |   |   |   |   |
| Impaired      loans |   | $                  | 1,475  |                                                                              |                                                | $ | — |   |   | $ | 133 |   |   | $ | 1,342 |   |
| OREO                |   | $                  | 1,537  |                                                                              |                                                |  $ | — |   |   | $ | 1,537 |   |   |  $ | — |   |

| 14. | Subsequent      Event |
|-----|-----------------------|

----

ITEM 2.    MANAGEMENT’SDISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OFOPERATIONS

----

----

|                              |   | For      the six-month period ended      June 30, |    |
|-----------------------------------|--------|---------------------------------------------------|---------|
|                              |   | 2008                                              |    |   | 2007 |   |
|                              |   |                                              |    |   |   |   |
| Return      on Average Assets (1) |   |                                              | (0.59%) |   |   |   | (0.16%) |   |
| Return      on Average Equity (1) |   |                                              | (3.38%) |   |   |   | (1.53%) |   |
|                              |   |                                              |    |   |   |   |   |   |
| (1)      Annualized               |   |                                              |    |   |   |   |   |   |

----

|                                                 |   |   | Three-month      period ended June 30, |    |
|------------------------------------------------------|--------|--------|----------------------------------------|---------|
|                                                 |   |   | Belvedere      SoCal                   |    |   | Professional      Business Bank |   |
|                                                 |   |   | 2008                                   |    |   | 2007 |   |
|                                                 |   |   |                                   |    |   |   |   |   | Average |   |   |   |   |   |   |   |   | Average |   |
|                                                 |   |   |                                   |    |   | Interest |   |   | Yield      or |   |   |   |   |   | Interest |   |   | Yield      or |   |
|                                                 |   |   | Average                                |    |   | Earned |   |   | Rate |   |   | Average |   |   | Earned |   |   | Rate |   |
|                                                 |   |   | Balance                                |    |   | or      Paid |   |   | Paid |   |   | Balance |   |   | or      Paid |   |   | Paid |   |
| Assets                                               |   |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Earning      Assets:                        |   |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment      Securities-taxable                   |   |   | $                                      | 27,007  |   |   | $ | 279 |   |   |   | 4.15 | % |   | $ | 14,284 |   |   | $ | 176 |   |   |   | 4.94 | % |
| Investment      Securities-nontaxable                |   |   |                                   | 9,049   |   |   |   | 91 |   |   |   | 4.04 | % |   |   | - |   |   |   | - |   |   |   | - |   |
| Interest-Bearing      Deposits in Other              |   |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial      Institutions                          |   |   |                                   | 1,350   |   |   |   | 16 |   |   |   | 4.77 | % |   |   | 3,064 |   |   |   | 40 |   |   |   | 5.24 | % |
| Federal      Funds Sold                              |   |   |                                   | 23,374  |   |   |   | 118 |   |   |   | 2.03 | % |   |   | 9,671 |   |   |   | 126 |   |   |   | 5.23 | % |
| Loans                                                |   |   |                                   | 311,628 |   |   |   | 5,432 |   |   |   | 7.01 | % |   |   | 162,523 |   |   |   | 3,583 |   |   |   | 8.84 | % |
| Total      Interest-Earning Assets                   |   |   |                                   | 372,408 |   |   |   | 5,936 |   |   |   | 6.41 | % |   |   | 189,542 |   |   |   | 3,925 |   |   |   | 8.31 | % |
|                                                 |   |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-Earning      Assets:                     |   |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and Due from Banks                         |   |   |                                   | 9,508   |   |   |   |   |   |   |   |   |   |   |   | 4,966 |   |   |   |   |   |   |   |   |   |
| Premises      and Equipment                          |   |   |                                   | 5,231   |   |   |   |   |   |   |   |   |   |   |   | 464 |   |   |   |   |   |   |   |   |   |
| Goodwill                                             |   |   |                                   | 57,176  |   |   |   |   |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Other      Intangibles                               |   |   |                                   | 2,905   |   |   |   |   |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   |   |   |
| Accrued      Interest and Other      Assets          |   |   |                                   | 15,208  |   |   |   |   |   |   |   |   |   |   |   | 3,291 |   |   |   |   |   |   |   |   |   |
| Allowance      for Loan Losses                       |   |   |                                   | (6,447  | ) |   |   |   |   |   |   |   |   |   |   | (2,202 | ) |   |   |   |   |   |   |   |   |
| Total      Assets                                    |   |   | $                                      | 455,989 |   |   |   |   |   |   |   |   |   |   | $ | 196,061 |   |   |   |   |   |   |   |   |   |
|                                                 |   |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities      and Shareholders'      Equity       |   |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing      Liabilities:                   |   |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Money      Market, Savings and NOW                   |   |   | $                                      | 84,311  |   |   |   | 271 |   |   |   | 1.29 | % |   | $ | 87,001 |   |   |   | 798 |   |   |   | 3.68 | % |
| Time      Deposits under $100,000                    |   |   |                                   | 81,253  |   |   |   | 890 |   |   |   | 4.41 | % |   |   | 21,361 |   |   |   | 291 |   |   |   | 5.46 | % |
| Time      Deposits of $100,000 or More               |   |   |                                   | 69,985  |   |   |   | 502 |   |   |   | 2.88 | % |   |   | 10,877 |   |   |   | 137 |   |   |   | 5.05 | % |
| Short      Term borrowings                           |   |   |                                   | 12,370  |   |   |   | 63 |   |   |   | 2.05 | % |   |   | 2,621 |   |   |   | 30 |   |   |   | 4.59 | % |
| Note      Payable                                    |   |   |                                   | 8,000   |   |   |   | 112 |   |   |   | 5.63  | % |   |   | - |   |   |   | -  |   |   |   | -  |   |
| Subordinated      Debentures                         |   |   |                                   | 15,464  |   |   |   | 442 |   |   |   | 11.50 | % |   |   | - |   |   |   | - |   |   |   | - |   |
| Total      Interest-Bearing Liabilities              |   |   |                                   | 271,383 |   |   |   | 2,280 |   |   |   | 3.38 | % |   |   | 121,860 |   |   |   | 1,256 |   |   |   | 4.13 | % |
|                                                 |   |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest-Bearing      Liabilities:                |   |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand      Deposits                                 |   |   |                                   | 103,737 |   |   |   |   |   |   |   |   |   |   |   | 52,996 |   |   |   |   |   |   |   |   |   |
| Other      Liabilities                               |   |   |                                   | 4,670   |   |   |   |   |   |   |   |   |   |   |   | 1,100 |   |   |   |   |   |   |   |   |   |
| Shareholders'      Equity                            |   |   |                                   | 76,199  |   |   |   |   |   |   |   |   |   |   |   | 20,105 |   |   |   |   |   |   |   |   |   |
| Total      Liabilities and Shareholders'      Equity |   |   | $                                      | 455,989 |   |   |   |   |   |   |   |   |   |   | $ | 196,061 |   |   |   |   |   |   |   |   |   |
| Net      Interest Income                             |   |   |                                   |    |   |   | $ | 3,656 |   |   |   |   |   |   |   |   |   |   | $ | 2,669 |   |   |   |   |   |
|                                                 |   |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Yield on Interest-                          |   |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earning      Assets (Net Interest      Margin)       |   |   |                                   |    |   |   |   |   |   |   |   | 3.95 | % |   |   |   |   |   |   |   |   |   |   | 5.65 | % |

----

|                                                      |   | Six-month      period ended June 30, |    |
|----------------------------------------------------------------|--------|-------------------------------------------|---------|
|                                                           |   | Belvedere      SoCal2008                  |    |   | Professional      Business Bank2007 |   |
|                                                           |   |                                      |    |   |   |   |   | Average |   |   |   |   |   |   |   |   | Average |   |
|                                                           |   |                                      |    |   | Interest |   |   | Yield      or |   |   |   |   |   | Interest |   |   | Yield      or |   |
|                                                           |   | Average                                   |    |   | Earned |   |   | Rate |   |   | Average |   |   | Earned |   |   | Rate |   |
|                                                           |   | Balance                                   |    |   | or      Paid |   |   | Paid |   |   | Balance |   |   | or      Paid |   |   | Paid |   |
| Assets                                                         |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Earning      Assets:                                  |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment      Securities-taxable                             |   | $                                         | 25,960  |   |   | $ | 534 |   |   |   | 4.14% |   |   | $ | 14,498 |   |   | $ | 339 |   |   |   | 4.72% |   |
| Investment      Securities-nontaxable                          |   |                                      | 7,507   |   |   |   | 152 |   |   |   | 4.07% |   |   |   | - |   |   |   |  - |   |   |   | -  |   |
| Interest-Bearing      Deposits in Other Financial Institutions |   |                                      | 1,326   |   |   |   | 32 |   |   |   | 4.85% |   |   |   | 3,974 |   |   |   | 124 |   |   |   | 6.29% |   |
| Federal      Funds Sold                                        |   |                                      | 20,680  |   |   |   | 242 |   |   |   | 2.35% |   |   |   | 12,217 |   |   |   | 317 |   |   |   | 5.23% |   |
| Loans                                                          |   |                                      | 294,203 |   |   |   | 10,815 |   |   |   | 7.39% |   |   |   | 151,978 |   |   |   | 6,773 |   |   |   | 8.99% |   |
| Total      Interest-Earning                                    |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets                                                         |   |                                      | 349,676 |   |   |   | 11,775 |   |   |   | 6.77% |   |   |   | 182,667 |   |   |   | 7,553 |   |   |   | 8.34% |   |
| Noninterest-Earning      Assets:                          |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and Due from Banks                                   |   |                                      | 8,485   |   |   |   |   |   |   |   |   |   |   |   | 5,621 |   |   |   |   |   |   |   |   |   |
| Premises      and Equipment                                    |   |                                      | 4,452   |   |   |   |   |   |   |   |   |   |   |   | 436 |   |   |   |   |   |   |   |   |   |
| Goodwill                                                       |   |                                      | 52,452  |   |   |   |   |   |   |   |   |   |   |   |  - |   |   |   |   |   |   |   |   |   |
| Other      Intangibles Assets, net                             |   |                                      | 2,847   |   |   |   |   |   |   |   |   |   |   |   |  - |   |   |   |   |   |   |   |   |   |
| Accrued      Interest and                                      |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Assets                                              |   |                                      | 15,130  |   |   |   |   |   |   |   |   |   |   |   | 3,192 |   |   |   |   |   |   |   |   |   |
| Allowance      for Loan Losses                                 |   |                                      | (5,915  | ) |   |   |   |   |   |   |   |   |   |   | (2,094 | ) |   |   |   |   |   |   |   |   |
| Total      Assets                                              |   | $                                         | 427,127 |   |   |   |   |   |   |   |   |   |   | $ | 189,822 |   |   |   |   |   |   |   |   |   |

| Liabilities      and Shareholders' Equity            |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |
|------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|
| Interest-Bearing      Liabilities:                   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |
| Money      Market, Savings and NOW                   |   | $      | 78,796  |   |   |   | 547    |   |   |   | 1.40%  |   |   | $      | 79,605  |   |   |   | 1,496 |   |   |   | 3.79% |     |
| Time      Deposits under $100,000               |   |   | 72,077  |   |   |   | 1,383  |   |   |   | 3.86%  |   |   |   | 21,220  |   |   |   | 574 |   |   |   | 5.45% |   |
| Time      Deposits of $100,000 or  More    |   |   | 62,345  |   |   |   | 1,114  |   |   |   | 3.59%  |   |   |   | 10,542  |   |   |   | 263 |   |   |   | 5.03% |   |
| Short-Term      Borrowings                           |   |   | 21,024  |   |   |   | 304    |   |   |   | 2.91%  |   |   |   | 3,278   |   |   |   | 76 |   |   |   | 4.68% |   |
| Note      Payable                                    |   |   | 4,667   |   |   |   | 137    |   |   |   | 5.90%  |   |   |   | -       |   |   |   | - |   |   |   | -  |   |
| Subordinated      Debentures                         |   |   | 12,835  |   |   |   | 644    |   |   |   | 10.09% |   |   |   |  - |   |   |   |  - |   |   |   | -  |   |
| Total      Interest-Bearing Liabilities              |   |   | 251,744 |   |   |   | 4,129  |   |   |   | 3.18%  |   |   |   | 114,645 |   |   |   | 2,409 |   |   |   | 4.24% |   |
|                                                 |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Noninterest-Bearing      Liabilities:                |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Demand      Deposits                                 |   |   | 96,068  |   |   |   |   |   |   |   |   |   |   |   | 54,028  |   |   |   |   |   |   |   |   |   |
| Other      Liabilities                               |   |   | 4,665   |   |   |   |   |   |   |   |   |   |   |   | 1,008   |   |   |   |   |   |   |   |   |   |
| Shareholders'      Equity                            |   |   | 74,650  |   |   |   |   |   |   |   |   |   |   |   | 20,141  |   |   |   |   |   |   |   |   |   |
| Total      Liabilities and Shareholders'      Equity |   | $      | 427,127 |   |   |   |   |   |   |   |   |   |   | $      | 189,822 |   |   |   |   |   |   |   |   |   |
| Net      Interest Income                             |   |   |    |   |   | $      | 7,646  |   |   |   |   |   |   |   |    |   |   | $      | 5,144 |   |   |   |   |   |
|                                                 |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Net      Yield on Interest-                          |   |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Earning      Assets (Net Interest Margin)       |   |   |    |   |   |   |   |   |   |   | 4.40%  |   |   |   |    |   |   |   |   |   |   |   | 5.68% |   |

----

|                                                           |   | Three-Month      Period Ended June 30, 2008 |   |
|----------------------------------------------------------------|--------|--------------------------------------------------|--------|
|                                                           |   | versus                                           |   |
|                                                           |   | Three-Month      Period Ended June 30, 2007      |   |
|                                                           |   | Increase      (Decrease) Due                     |   |
|                                                           |   | To      Change in                                |   |
|                                                           |   | Volume                                           |   |   | Rate |   |   | Total |   |
| Interest-Earning      Assets:                                  |   |                                             |   |   |   |   |   |   |   |
| Investment      Securities-Taxable                             |   | $                                                | 156    |   |   | $ | (53 | )  |   | $ | 103 |   |
| Investment      Securities-Nontaxable                          |   |                                             | 91     |   |   |   | - |   |   |   | 91 |   |
| Interest-Bearing      Deposits in Other Financial Institutions |   |                                             | (22    | ) |   |   | (2 | ) |   |   | (24 | ) |
| Federal      Funds Sold                                        |   |                                             | 186    |   |   |   | (194 | ) |   |   | ( 8 | ) |
| Loans                                                          |   |                                             | 3,261  |   |   |   | (1,412 | ) |   |   | 1,849 |   |
| Total      Interest Income                                     |   |                                             | 3,672  |   |   |   | (1,661 | ) |   |   | 2,011 |   |
|                                                           |   |                                             |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing      Liabilities:                             |   |                                             |   |   |   |   |   |   |   |   |   |   |
| Money      Market, Savings and NOW                             |   |                                             | (25    | ) |   |   | (502 | ) |   |   | (527 | ) |
| Time      Deposits under $100,000                              |   |                                             | 813    |   |   |   | (214 | ) |   |   | 599 |   |
| Time      Deposits of $100,000 or More                         |   |                                             | 742    |   |   |   | (377 | ) |   |   | 365 |   |
| Short      Term Borrowings                                     |   |                                             | 111    |   |   |   | (78 | ) |   |   | 33 |   |
| Subordinated      Debentures                                   |   |                                             | 112    |   |   |   | - |   |   |   | 112 |   |
| Note      Payable                                              |   |                                             | 442    |   |   |   | - |   |   |   | 442 |   |
| Total      Interest Expense                                    |   |                                             | 2,195  |   |   |   | (1,171 | ) |   |   | 1,024 |   |
| Net      Interest Income                                       |   | $                                                | 1,477  |   |   | $ | (490 | )  |   | $ | 987 |   |

|                                                           |   | Six-Month      Period Ended June 30, 2008 |   |
|----------------------------------------------------------------|--------|------------------------------------------------|--------|
|                                                           |   | versus                                         |   |
|                                                           |   | Six-Month      Period Ended June 30, 2007      |   |
|                                                           |   | Increase      (Decrease) Due                   |   |
|                                                           |   | To      Change in                              |   |
|                                                           |   | Volume                                         |   |   | Rate |   |   | Total |   |
| Interest-Earning      Assets:                                  |   |                                           |   |   |   |   |   |   |   |
| Investment      Securities-Taxable                             |   | $                                              | 270    |   |   | $ | (75 | )  |   | $ | 195 |   |
| Investment      Securities-Nontaxable                          |   |                                           | 152    |   |   |   | - |   |   |   | 152 |   |
| Interest-Bearing      Deposits in Other Financial Institutions |   |                                           | (83    | ) |   |   | (9 | ) |   |   | (92 | ) |
| Federal      Funds Sold                                        |   |                                           | 218    |   |   |   | (293 | ) |   |   | ( 75 | ) |
| Loans                                                          |   |                                           | 6,386  |   |   |   | (2,344 | ) |   |   | 4,042 |   |
| Total      Interest Income                                     |   |                                           | 6,943  |   |   |   | (2,721 | ) |   |   | 4,222 |   |
|                                                           |   |                                           |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing      Liabilities:                             |   |                                           |   |   |   |   |   |   |   |   |   |   |
| Money      Market, Savings and NOW                             |   |                                           | (15    | ) |   |   | (934 | ) |   |   | (949 | ) |
| Time      Deposits under $100,000                              |   |                                           | 1,382  |   |   |   | (573 | ) |   |   | 809 |   |
| Time      Deposits of $100,000 or More                         |   |                                           | 1,147  |   |   |   | (296 | ) |   |   | 851 |   |
| Short      Term Borrowings                                     |   |                                           | 395    |   |   |   | (167 | ) |   |   | 228 |   |
| Subordinated      Debentures                                   |   |                                           | 644    |   |   |   | - |   |   |   | 644 |   |
| Note      Payable                                              |   |                                           | 137    |   |   |   | - |   |   |   | 137 |   |
| Total      Interest Expense                                    |   |                                           | 3,690  |   |   |   | (1,970 | ) |   |   | 1,720 |   |
| Net      Interest Income                                       |   | $                                              | 3,253  |   |   | $ | (751 | )  |   | $ | 2,502 |   |

----

----

|                                    |   | Three-month      period ended ended June 30, |      |   | Six-month      period ended June 30, |   |
|-----------------------------------------|--------|----------------------------------------------|-----------|--------|--------------------------------------|--------|
|                                    |   | Belvedere      SoCal2008                     |      |   | Professional      Business Bank2007  |   |   | Percent      Change |   |   | Belvedere      SoCal2008 |   |   | Professional      Business Bank2007 |   |   | Percent      Change |   |
|                                    |   |                                         |      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries      and employee benefits     |   | $                                            | 2,152,490 |   |                                 | $      | 1,547,897 |   |   |   | 39.1 | % |   | $ | 4,621,273 |   |   | $ | 2,850,982 |   |   |   | 62.1 | % |
| Occupancy      and equipment            |   |                                         | 389,973   |   |                                 |   | 172,582 |   |   |   | 126.0 | % |   |   | 715,075 |   |   |   | 319,956 |   |   |   | 123.5 | % |
| Professional      fees                  |   |                                         | 515,543   |   |                                 |   | 242,054 |   |   |   | 113.0 | % |   |   | 1,101,640 |   |   |   | 625,981 |   |   |   | 76.0 | % |
| Data      processing                    |   |                                         | 389,971   |   |                                 |   | 162,125 |   |   |   | 140.5 | % |   |   | 657,630 |   |   |   | 296,980 |   |   |   | 121.4 | % |
| Marketing      and business promotion   |   |                                         | 64,432    |   |                                 |   | 31,966 |   |   |   | 101.6 | % |   |   | 113,295 |   |   |   | 64,344 |   |   |   | 76.1 | % |
| Office      and administrative expenses |   |                                         | 251,033   |   |                                 |   | 222,900 |   |   |   | 12.6 | % |   |   | 492,960 |   |   |   | 385,343 |   |   |   | 27.9 | % |
| Other      expenses                     |   |                                         | 402,617   |   |                                 |   | 216,029 |   |   |   | 86.4 | % |   |   | 829,010 |   |   |   | 331,670 |   |   |   | 150.0 | % |
| Total                                   |   | $                                            | 4,166,059 |   |                                 | $      | 2,595,553 |   |   |   | 60.5 | % |   | $ | 8,530,883 |   |   | $ | 4,875,256 |   |   |   | 75.0 | % |

----

| June 30,      2008:                           |   | Actual |   | For      Capital AdequacyPurposes |   | To      Be Well Capitalized |   |
|-----------------------------------------------|--------|--------|--------|-----------------------------------|--------|-----------------------------|--------|
| SoCal                                         |   | Amount |   | Ratio                             |   | Amount                      |   | Ratio |   | Amount |   |   | Ratio |   |
| Total      Capital (to risk-weighted assets)  |   |   | 35,389 |                              |   |        9.99%           |   |   | 28,327 |   | >=+      8% |   |   | N/A |   |   |   | N/A |   |
| Tier      1 Capital (to risk-weighted assets) |   |   | 30,956 |                              |   |        8.74%           |   |   | 14,164 |   | >=+      4% |   |   | N/A |   |   |   | N/A |   |
| Tier      1 Capital (to average assets)       |   |   | 30,956 |                              |   |        7.86%           |   |   | 15,748 |   | >=+      4% |   |   | N/A |   |   |   | N/A |   |
|                                          |   |   |   |                              |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Professional      Business Bank               |   |   |   |                              |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Capital (to risk-weighted assets)  |   |   | 27,224 |                              |   | 10.83%                      |   |   | 20,200 |   | >=+      8% |   |   | 25,250 |   |   |        >=+ 10% |   |
| Tier      1 Capital (to risk-weighted assets) |   |   | 24,068 |                              |   |        9.57%           |   |   | 10,100 |   | >=+      4% |   |   | 15,150 |   |   | >=+      6% |   |
| Tier      1 Capital (to average assets)       |   |   | 24,068 |                              |   |        9.76%           |   |   |        9,866 |   | >=+      4% |   |   | 12,332 |   |   | >=+      5% |   |
|                                          |   |   |   |                              |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Spectrum      Bank                            |   |   |   |                              |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      Capital (to risk-weighted assets)  |   |   | 13,109 |                              |   | 12.77%                      |   |   | 8,210 |   | >=+      8% |   |   | 10,262 |   |   |        >=+ 10% |   |
| Tier      1 Capital (to risk-weighted assets) |   |   | 11,832 |                              |   | 11.53%                      |   |   | 4,105 |   | >=+      4% |   |   |        6,157 |   |   | >=+      6% |   |
| Tier 1 Capital (to average      assets)  |   |   | 11,832 |                              |   |        8.05%           |   |   | 5,882 |   | >=+      4% |   |   |        7,352 |   |   | >=+      5% |   |

| Three      Months or less          |   | $      | 26,739 |   |
|------------------------------------|--------|--------|--------|--------|
| Over      Three Months to One Year |   |   | 29,353 |   |
| Over      One Year to Three Years  |   |   | 6,149  |   |
| Over      Three Years    |   |   | 5,200  |   |
| Total                              |   | $      | 67,441 |   |

----

|                            |   | June      30, 2008 |    |   | December      31, 2007 |   |
|---------------------------------|--------|--------------------|---------|--------|------------------------|--------|
|                            |   | Amount             |    |   | Percent      of        |   |   | Amount |   |   | Percent      of |   |
|                            |   | Outstanding        |    |   | Total                  |   |   | Outstanding |   |   | Total |   |
| Loans                           |   |               |    |   |                   |   |   |   |   |   |   |   |
| Commercial                      |   | $                  | 81,831  |   |                   |   | 26.5% |   |   | $ | 56,791 |   |   |   | 26.5% |   |
| Real      Estate - Construction |   |               | 40,024  |   |                   |   | 13.0% |   |   |   | 37,566 |   |   |   | 17.5% |   |
| Real      Estate - Other        |   |               | 179,116 |   |                   |   | 58.0% |   |   |   | 113,123 |   |   |   | 52.7% |   |
| Consumer                        |   |               | 7,743   |   |                   |   | 2.5% |   |   |   | 7,127 |   |   |   | 3.3% |   |
| Total      Loans                |   |               | 308,714 |   |                   |   | 100.0% |   |   |   | 214,607 |   |   |   | 100.0% |   |
| Net      Deferred Loan Fees     |   |               | (362    | )      |                   |   |   |   |   |   | (273 | ) |   |   |   |   |
| Allowance      for Loan Losses  |   |               | (5,385  | )      |                   |   |   |   |   |   | (4,077 | ) |   |   |   |   |
| Net      Loans                  |   | $                  | 302,967 |   |                   |   |   |   |   | $ | 210,257 |   |   |   |   |   |
|                            |   |               |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Commitments                     |   |               |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Letters      of Credit          |   | $                  | 1,398   |   |                   |   |   |   |   | $ | 769 |   |   |   |   |   |
| Undisbursed      Loans and      |   |               |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Commitments      to Grant Loans |   |               | 66,449  |   |                   |   |   |   |   |   | 62,459 |   |   |   |   |   |
| Total      Commitments          |   | $                  | 67,847  |   |                   |   |   |   |   | $ | 63,228 |   |   |   |   |   |

----

|                                               |   | June      30, 2008 |    |   | December      31, 2007 |   |
|---------------------------------------------------------|--------|--------------------|---------|--------|------------------------|--------|
| Loans      90 Days Past Due and Still                   |   |               |    |   |                   |   |
|    Accruing      Interest                |   | $                  | 548     |   |                   | $      | - |   |
| Nonaccrual      Loans                                   |   |               | 1,475   |   |                   |   | 920 |   |
|                                                    |   |               |    |   |                   |   |   |   |
| Total      Nonperforming Loans                          |   |               | 2,023   |   |                   |   | 920 |   |
|                                                    |   |               |    |   |                   |   |   |   |
| Other      Real Estate Owned                            |   |               | 1,537   |   |                   |   | - |   |
|                                                    |   |               |    |   |                   |   |   |   |
| Total      Nonperforming Assets                         |   | $                  | 3,560   |   |                   | $      | 920 |   |
|                                                    |   |               |    |   |                   |   |   |   |
| Nonperforming      Loans as a                           |   |               |    |   |                   |   |   |   |
|     Percentage      of Total Loans  |   |               | 0.66%   |   |                   |   | 0.43% |   |
| Allowance      for Loan Losses as a Percentage          |   |               |    |   |                   |   |   |   |
|     of      Nonperforming Loans     |   |               | 151.26% |   |                   |   | 443.15% |   |
| Nonperforming      Assets as a                          |   |               |    |   |                   |   |   |   |
|     Percentage      of Total Assets |   |               | 0.78%   |   |                   |   | 0.34% |   |

|                            |   | June      30, 2008 |   |   | December      31, 2007 |   |
|---------------------------------|--------|--------------------|--------|--------|------------------------|--------|
|                            |   | Amount             |   |   | LoanPercent            |   |   | Amount |   |   | LoanPercent |   |
| Commercial                      |   | $                  | 2,325  |   |                   |   | 26.5% |   |   | $ | 1,286 |   |   |   | 26.5% |   |
| Real      Estate - Construction |   |               | 1,637  |   |                   |   | 13.0% |   |   |   | 1,163 |   |   |   | 17.5% |   |
| Real      Estate - Other        |   |               | 1,213  |   |                   |   | 58.0% |   |   |   | 1,468 |   |   |   | 52.7% |   |
| Consumer                        |   |               | 210    |   |                   |   | 2.5% |   |   |   | 152 |   |   |   | 3.3% |   |
| Unallocated                     |   |               | -      |   |                   |   | n/a |   |   |   | 8 |   |   |   | n/a |   |
| Total                           |   | $                  | 5,385  |   |                   |   | 100.0% |   |   | $ | 4,077 |   |   |   | 100.0% |   |

----

|                                               |   |        Three-month      period endedJune      30, |    |   |        Six-month      period endedJune      30, |                                       |
|----------------------------------------------------|--------|--------------------------------------------------------|---------|--------|------------------------------------------------------|--------------------------------------------|
|                                               |   |        BelvedereSoCal                             |    |   |                                                 |        Professional      BusinessBank |   |   | BelvedereSoCal |   |   | Professional      BusinessBank |   |
|                                               |   |        2008                                       |    |   |                                                 |        2007                           |   |   | 2008 |   |   | 2007 |   |
| Balance      at beginning of period                | $      | 6,254                                                  |    |   | $                                                    | 2,026                                      |   |   | $ | 4,077 |   |   | $ | 1,869 |   |
| Allowance      acquired at acquisition of Spectrum |   |                                                   |    |   |                                                 |                                       |   |   |   | 1,436 |   |   |   |   |   |
|                                               |   |                                                   |    |   |                                                 |                                       |   |   |   |   |   |   |   |   |   |
| Charge-offs:                                       |   |                                                   |    |   |                                                 |                                       |   |   |   |   |   |   |   |   |   |
|    Commercial                       |   | (110                                                   | )       |   |                                                 | -                                          |   |   |   | (110 | ) |   |   | - |   |
|    Real      Estate - Construction  |   | (1,796                                                 | )  |   |                                                 | -                                          |   |   |   | (1,934 | )  |   |   | - |   |
|    Real      Estate - Other         |   | -                                                      |    |   |                                                 | -                                          |   |   |   | - |   |   |   | - |   |
|    Consumer                         |   | (67                                                    | )       |   |                                                 | (2                                         | )  |   |   | (161 | ) |   |   | (2 | )  |
| Total      charge-offs                             |   | (1,973                                                 | )       |   |                                                 | (2                                         | )  |   |   | (2,205 | ) |   |   | (2 | )  |
|                                               |   |                                                   |    |   |                                                 |                                       |   |   |   |   |   |   |   |   |   |
| Recoveries:                                        |   |                                                   |    |   |                                                 |                                       |   |   |   |   |   |   |   |   |   |
|    Commercial                       |   | -                                                      |    |   |                                                 | -                                          |   |   |   | - |   |   |   | - |   |
|    Real      Estate - Construction  |   | -                                                      |    |   |                                                 | -                                          |   |   |   | - |   |   |   | - |   |
|    Real      Estate - Other         |   | -                                                      |    |   |                                                 | -                                          |   |   |   | - |   |   |   | - |   |
|    Consumer                         |   | -                                                      |    |   |                                                 | -                                          |   |   |   | - |   |   |   | - |   |
| Total      recoveries                              |   | -                                                      |    |   |                                                 | -                                          |   |   |   | - |   |   |   | - |   |
|                                               |   |                                                   |    |   |                                                 |                                       |   |   |   |   |   |   |   |   |   |
| Additional      provision                          |   | 1,104                                                  |    |   |                                                 | 380                                        |   |   |   | 2,061 |   |   |   | 537 |   |
| Balance      at end of period                      | $      | 5,385                                                  |    |   | $                                                    | 2,404                                      |   |   | $ | 5,385 |   |   | $ | 2,404 |   |

|                                                           |   | June      30, 2008 |   |   | December      31, 2007 |   |
|----------------------------------------------------------------|--------|--------------------|--------|--------|------------------------|--------|
|                                                           |   |               |   |   |                   |   |   | Weighted |   |   |   |   |   |   |   |   | Weighted |   |
|                                                           |   | Amortized          |   |   | Market                 |   |   | Average |   |   | Amortized |   |   | Market |   |   | Average |   |
|                                                           |   | Cost               |   |   | Value                  |   |   | Yield |   |   | Cost |   |   | Value |   |   | Yield |   |
| Available-for-Sale      Securities                             |   |               |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |               |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S.      Government Agencies                                  |   |               |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Within      One Year                                           |   | $                  | 8,524  |   |                   | $      | 8,543 |   |   |   | 3.86% |   |   | $ | 2,004 |   |   | $ | 2,002 |   |   |   | 4.24% |   |
| One      to Five Years                                         |   |               | 3,205  |   |                   |   | 3,152 |   |   |   | 5.73% |   |   |   | 2,024 |   |   |   | 2,024 |   |   |   | 5.42% |   |
| Subtotal                                                       |   |               | 11,729 |   |                   |   | 11,695 |   |   |   | 4.36%  |   |   |   | 4,028 |   |   |   | 4,026 |   |   |   | 4.40% |   |
|                                                           |   |               |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Government      Guaranteed Collateralized Mortgage Obligations |   |               |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| After      Five Years to Ten Years                             |   |               | 904    |   |                   |   | 895 |   |   |   | 4.29% |   |   |   |  - |   |   |   |  - |   |   |   |   |   |
| Subtotal                                                       |   |               | 904    |   |                   |   | 895 |   |   |   | 4.29%  |   |   |   |  - |   |   |   |  - |   |   |   |   |   |

----

| States      and Political Subdivisions |   |   |   |   |   |   |   |   |   |   |        |   |   |   |    |   |   |   |    |   |   |   |   |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-------------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|--------|--------|
| One      to Five Years                 |   |   | 337    |   |   |   | 327    |   |   |   | 3.57%       |   |   |   |  - |   |   |   |  - |   |   |   |   |   |
| After      Five Years to Ten Years     |   |   | 1,089  |   |   |   | 1,056  |   |   |   | 3.90%       |   |   |   |  - |   |   |   |  - |   |   |   |   |   |
| Over      Ten Years                    |   |   | 7,623  |   |   |   | 7,335  |   |   |   | 4.17%       |   |   |   |  - |   |   |   |  - |   |   |   |   |   |
| Subtotal                               |   |   | 9,049  |   |   |   | 8,718  |   |   |   | 4.12%  |   |   |   |  - |   |   |   |  - |   |   |   |   |   |
| Mortgage-Backed      Securities        |   |   |   |   |   |   |   |   |   |   |        |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Within      One Year                   |   |   | 1,680  |   |   |   | 1,689  |   |   |   | 3.25%       |   |   |   | -       |   |   |   | -       |   |   |   |   |   |
| One      to Five Years                 |   |   | 2,434  |   |   |   | 2,444  |   |   |   | 4.41%       |   |   |   | 1,230   |   |   |   | 1,231   |   |   |   | 4.16%  |   |
| After      Five Years to Ten Years     |   |   | 4,448  |   |   |   | 4,337  |   |   |   | 4.87%       |   |   |   | 558     |   |   |   | 559     |   |   |   | 4.98%  |   |
| Over      Ten Years                    |   |   | 2,216  |   |   |   | 2,180  |   |   |   | 4.98%       |   |   |   | 2,953   |   |   |   | 2,970   |   |   |   | 4.78%  |   |
| Subtotal                               |   |   | 10,778 |   |   |   | 10,650 |   |   |   | 4.53%  |   |   |   | 4,741   |   |   |   | 4,760   |   |   |   | 4.84%  |   |
|                                   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Total                                  |   | $      | 32,460 |   |   | $      | 31,958 |   |   |   | 4.35%  |   |   | $      | 8,769   |   |   | $      | 8,786   |   |   |   | 4.56%  |   |

----

|                   | Votes                                                                       |   | Votes                                                              |
|------------------------|-----------------------------------------------------------------------------|--------|--------------------------------------------------------------------|
|                   | For                                                                         |   | Withheld                                                           |
| William      Baribault |            2,900,437 |   |           28,936 |
| Alison      Davis      |            2,899,351 |   |           30,022 |
| Justin      Evans      |            2,900,437 |   |           28,936 |
| Alan      Lane         |            2,900,437 |   |           28,936 |
| Larry      Tashjian    |            2,900,437 |   |           28,936 |

| 31.1   | Rule      15d-14(a) Certification by Chief Executive Officer |
|--------|--------------------------------------------------------------|
|   |                                                         |
| 31.2   | Rule      15d-14(a) Certification by Chief Financial Officer |
|   |                                                         |
| 32.1   | Section      1350 Certifications                             |
|   |                                                         |
| 10.1   | Baribault      Employment Agreement                          |
|   |                                                         |
| 10.2   | Baribault      Time-Vest Option Agreement                    |
|   |                                                         |
| 10.3   | Baribault      Performance-Vest Option Agreement             |
|   |                                                         |
| 10.4   | Baribault Modified      Time-Vest Option Agreement           |

----

| BELVEDERE      SOCAL             |
|----------------------------------|
|                             |   |
| By:                              | /s/    WILLIAM      BARIBAULT         |
|                             | William      BaribaultPresident      and Chief Executive Officer(Principal      Executive Officer) |
|                             |
| Dated: August      14, 2008 |
|                             |
| BELVEDERE      SOCAL             |
|                             |   |
| By:                              | /s/    MICHAEL      McCALL         |
|                             | Michael      McCallChief      Financial Officer(Principal      Financial Officer) |
|                             |
| Dated: August      14, 2008 |

----