USA Bank announced that it has completed the previously announced review of its financial position and strategic options, which included an assessment of current economic conditions and their continuing impact on the Bank's commercial real estate and construction loan portfolio. After the review it has concluded that its loan portfolio has continuing exposure to the above referenced markets, which will be reflected in an addition to loan loss reserves when the Bank reports its third quarter 2009 financial results in November. USA Bank has further concluded that it will be in the best interests of the Bank and its shareholders to pursue a transaction with either a strategic or financial partner to provide the capital needed to resume taking advantage of the strong market demographics of the communities it serves. To that end, the bank has authorized its financial advisor, Laidlaw & Company, to commence efforts to identify a partner for the Bank and to assist in the consummation of such a transaction. Fred A. DeCaro III, Chairman of USA said: "While there is little doubt that completing a transaction will involve a new partner assuming a controlling interest in the Bank, it is also very clear to the Board that the fundamentals underlying the formation of the Bank remain strong despite the current economic environment."

U.S.A Bank announced that it has retained Laidlaw & Company (UK) Ltd. to assist in the consideration of various strategic alternatives designed to maximize shareholder value during these challenging economic times. Laidlaw & Company (UK) Ltd. will help the bank extensively review a broad range of options to grow its business, which may include the issuance of equity to bolster its capital structure, or a sale or merger of the Bank. U.S.A Bank’s Chairman, Fred A. DeCaro III, said, “Having received several overtures from different groups interested in acquiring the Bank or making a substantial new investment in the Bank, our Board has determined that all parties having a vested interest would benefit from a formal process to consider our future options.” He added, “It is readily apparent to the Board that we have a variety of alternatives and we look forward to working with Laidlaw to help define an optimal course of action.”

U.S. A Bank reported earnings results for the second quarter and six months ended June 30, 2009. For the quarter, the company reported a net loss of $4.0 million or $0.69 per share compared to a net loss of $383,000 or $0.07 per share. The increase in the loss was mainly due to the negative impact on borrowers resulting from the economic downturn. Interest income decreased $271,000, or 8.2%, as interest income on other interest earning asset categories was lower than during the second quarter of 2008. Net interest income was $306,000 below that of the second quarter of 2008, principally due to the reduction in interest income. For the six months, the company's net loss was $4.8 million or $0.83 per share compared to a net loss of $1.1 million or $0.20 per share for the six months ended June 30, 2008.