8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) January 24, 2005

PLACER SIERRA BANCSHARES

(Exact name of registrant as specified in its charter)

California	0-50652	94-3411134
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

535 J Street, Sacramento, California 95814	95814
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (916) 554-4750

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 1 – Registrant’s Business and Operations

Item 1.01 Entry into a Material Definitive Agreement.

On January 24, 2005, Placer Sierra Bancshares (NASDAQNMS: PLSB) (the “Company”) entered into an employment agreement (the “Agreement”) with Angelee J. Harris (the “Executive”) pursuant to which the Company has retained the Executive to serve as Executive Vice President, General Counsel and Corporate Secretary of the Company. The following summary is qualified in its entirety by reference to the text of the Agreement, a complete copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and which is incorporated herein by reference.

The Agreement provides for the employment of the Executive for a period of three years commencing on January 24, 2005, unless terminated earlier pursuant to the terms of the Agreement. Under the terms of the Employment Agreement, the Executive will receive annual compensation of no less than $210,000 and participate in the Company’s Executive Incentive Plan. The Company will use its best efforts to cause the Company to grant to the Executive the option to purchase 50,000 shares of the Company’s common stock pursuant to the terms and conditions of the Placer Sierra Bancshares 2002 Stock Option Plan. The Company will provide for the Executive’s participation in the medical, dental, vision, life and disability insurance programs maintained by the Company for its employees. In addition, the Company shall pay the Executive a $900 a month automobile allowance.

The Agreement also provides for the payment by the Company to the Executive of a single sum severance payment equal to twelve months of the Executive’s current base salary plus any accrued incentive bonus upon a voluntary termination of employment for “good reason,” an involuntary termination of employment without “good cause,” or a voluntary termination of employment following a reduction in the Executive’s duties or title occurring within 12 months after a “change in control” of the Company. Following such a termination of employment, the Executive will receive (i) all benefits that have vested under any written term of plan, and (ii) health care coverage continuation rights under COBRA.

In the event the Executive terminates her employment for other than “good reason,” or the Company terminates the Executive’s employment for “cause,” the Executive shall not be entitled to receive any salary or other compensation or other benefits for any period after such termination. However, following such a termination of employment, the Executive will receive (i) all benefits that have vested under any written term of plan, and (ii) health care coverage continuation rights under COBRA. The Agreement and all benefits provided under the Agreement will terminate immediately upon the death of the Executive, provided that the Executive’s heirs and estate will receive all benefits that have vested under any written term of plan, and the Executive’s dependents will receive health care coverage continuation rights under COBRA.

The Agreement contains restrictive covenants which prohibit the Executive from (i) associating with a business that is competitive with any line of business of the Company for which the Executive provided services during the term of the Executive’s employment, without the Company’s consent and (ii) soliciting the Company’s agents and employees during the term of the Executive’s employment and for a period of one year following any termination of employment.

Section 7 – Regulation FD

Item 7.01 Regulation FD Disclosure.

The Company is furnishing (not filing) an investor slide presentation and investment profile as Exhibit 99.1 on this Current Report on Form 8-K pursuant to Regulation FD.

On January 28, 2005, the Company also issued a press release, which is referred to in Item 8.01 below and which appears as Exhibit 99.2. The quotes of the Chairman and Chief Executive Officer contained in the press release are furnished (not filed) pursuant to Regulation FD.

Section 8 – Other Events

Item 8.01.

On January 28, 2005, the Company issued a press release announcing the declaration of a 2005 first quarter cash dividend in the amount of $0.12 per share. Such amount represents approximately a 140% increase from the cash dividend declared during the fourth quarter of 2004. The press release, which appears as Exhibit 99.2, is filed and incorporated herein by reference except that the quotes of the Chief Executive Officer is not filed but is furnished pursuant to Regulation FD.

Section 9 – Financial Statements and Exhibits

Item 9.01.

(a) Financial statements of businesses acquired.

(b) Pro forma financial information.

(c) Exhibits.

Exhibit No.	Description of Exhibit
10.1	Employment Agreement dated January 24, 2005 between Placer Sierra Bancshares and Angelee J. Harris
99.1	Investor Slide Presentation and Investment Profile
99.2	Press Release dated January 28, 2005 regarding dividend

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Placer Sierra Bancshares
	(Registrant)
Date January 28, 2005
	/s/ Ronald W. Bachli
	Ronald W. Bachli
	Chairman and Chief Executive Officer

EXHIBIT INDEX

Exhibit No.	Description of Exhibit
10.1	Employment Agreement dated January 24, 2005 between Placer Sierra Bancshares and Angelee J. Harris
99.1	Investor Slide Presentation and Investment Profile
99.2	Press Release dated January 28, 2005 regarding dividend

EX-10.1

Exhibit 10.1

EMPLOYMENT AGREEMENT

THIS AGREEMENT (the “Agreement”) is made and entered into as of January 24, 2005 (the “Effective Date”) by and between PLACER SIERRA BANCSHARES, a California corporation (“Company”) and ANGELEE J. HARRIS (“Employee”) (collectively sometimes referred to as the “Parties”):

WHEREAS, the Parties desire to enter into an agreement for the purpose of retaining Employee’s services as General Counsel – Placer Sierra Bancshares;

NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS:

1. Employment and Duties. Employee is hereby employed by Company as General Counsel. Employee shall be responsible for performing such duties as are customarily and ordinarily performed by a General Counsel, including the duties described on Exhibit “A” hereto. Employee will also perform such duties as he may, from time to time, be called upon to assist companies affiliated with Company, and such other attendant duties as she may, from time to time, be reasonably requested to perform by the Board of Directors of Company (the “Board”).

2. Extent of Services.

(a) Exclusive Employment. Employee shall devote her full time, ability and attention to the business of Company and its parent companies, subsidiaries, divisions and affiliates, during the Employment Term, and shall neither directly nor indirectly render any services of a business, commercial or professional nature to any other person, firm, corporation or organization for compensation without the prior written consent of the Board.

(b) Employee Investment Activities. Nothing contained herein shall be construed as preventing Employee from (i) investing her personal assets in businesses which do not compete with Company in such form or manner as will not require any services on the part of Employee in the operation or the affairs of the companies in which such investments are made and in which her participation is solely that of an investor, (ii) purchasing securities in any corporation whose securities are regularly traded provided that such purchase shall not result in Employee collectively owning beneficially at any time five percent or more of the equity securities of any corporation engaged in a business competitive to that of Company, and (iii) participating in conferences, preparing or publishing papers or books or teaching so long as Company approves of such activities prior to Employee’s engaging in them. (See attached Exhibit “C”.)

3. Term of Employment. Subject to prior termination of this Agreement as hereinafter provided in section 5, Company hereby employs Employee, and Employee hereby accepts employment with Company, for a period of three (3) years beginning on the Effective Date and ending on the third anniversary of the Effective Date (the “Employment Term”).

4. Compensation and Benefits. In consideration of Employee’s services to Company during the Employment Term, Company agrees to compensate Employee, subject to such limitations as may exist under any federal or state law or regulation, as follows:

(a) Base Compensation. Company shall pay or cause to be paid to Employee a base compensation of $210,000 per year for the first twelve (12) months of the Employment Term (hereinafter the “Base Salary”), less payroll taxes and withholding required by federal, state or local law and any additional withholding to which Employee agrees in writing. Said Base Salary shall be payable in semi-monthly installments in accordance with Company’s normal payroll procedures. The Board shall review the Base Salary not less than sixty (60) days prior to the first and each subsequent anniversary date of the Effective Date and shall determine, in its sole, absolute and unreviewable discretion, whether to increase the Base Salary for the subsequent twelve (12) months of the Employment Term. Any increase in Base Salary so determined by the Board shall become effective as of such anniversary date. The Base Salary shall be prorated for any partial year in which this Agreement is in effect.

(b) Executive Incentive Bonus. In addition, Employee shall be eligible to participate in the Company’s Executive Incentive Plan, in accordance with the terms and conditions of said plan, as the Company, in its sole and absolute discretion, may establish from time to time.

(c) Deferred Compensation. In the event the Company should establish a deferred compensation plan, Employee shall be eligible to participate in said plan, in accordance with the terms and conditions of said plan, as the Company, in its sole and absolute discretion, may establish from time to time.

(d) General Expenses. Company shall, upon submission and approval of written statements and bills in accordance with the then regular procedures of Company, reimburse Employee for any and all reasonable necessary, customary and usual expenses incurred by him while traveling for or on behalf of Company, and any and all other necessary, customary or usual expenses (including entertainment) incurred by Employee for or on behalf of Company in the normal course of business, as determined to be appropriate by Company.

(e) Health, Life and Disability Insurance. Company shall provide for Employee’s participation in group medical, dental, vision, life and disability insurance benefits available under the group insurance programs maintained by Company for its employees. The amount paid by Company for such group medical, dental, vision, life and disability insurance for Employee shall be an amount equal to that portion paid by Company for each of its employees in accordance with its usual and customary practices. Employee shall have the right, in Employee’s discretion, to designate the beneficiary or beneficiaries of any such insurance. Company reserves the right to modify and amend such benefits from time to time. As provided under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) respecting continuation of any insurance coverage, Employee shall, upon a loss of any such coverage for himself under Company’s health, dental, and/or vision plans (if any) resulting from (1) termination of Employee’s employment (for any reason other than for gross misconduct) or (2) a

reduction in his hours, be entitled to exercise her COBRA rights. Employee shall pay all premiums for any such continuation coverage(s) elected by Employee.

(f) Automobile Allowance. During the Employment Term, Employee shall be entitled to an automobile allowance in the amount of $900 per month (less payroll taxes and withholding required by federal, state or local law). In addition, Company shall pay the amounts charged by Employee for fuel for business related travel on a credit card provided by Company to Employee. Except for this automobile allowance and payment of fuel charges, Company shall not be obligated to pay any other expenditure with respect to the ownership or operation of Employee’s automobile, and Employee will be responsible for all out-of-pocket automobile expenses, including, but not limited to, registration, insurance, repairs, and maintenance. Employee shall procure and maintain an automobile liability insurance policy on the automobile, with coverage including Employee for at least $100,000 for bodily injury or death to any one person, $300,000 for bodily injury or death in any one accident, and $50,000 for property damage in any one accident. The Company shall be named as an additional insured and Employee shall provide Company with copies of policies evidencing insurance and Bank’s inclusion as an additional insured.

(g) Vacation. Employee shall be entitled to four weeks (20 days) paid vacation leave per year, which shall accrue on a daily basis. Such vacation leave shall be taken at such time or times as are mutually agreed upon by Employee and the Board and in accordance with Company’s vacation leave policy, provided, that at least two (2) weeks of such vacation shall be taken consecutively. Employee acknowledges that the requirement of two (2) consecutive weeks of vacation is required by sound banking practice. For each calendar year, the Board shall decide, in its discretion, either (1) to pay Employee for any unused vacation time for such calendar year or (2) to carry over any unused vacation time for such calendar year to the next calendar year, provided, however, that Employee shall not accrue additional vacation time at any time that the Employee has accrued any unused vacation time of seven (7) weeks.

(h) Stock Options. As an inducement to Employee to execute this Agreement and become an employee of Company, Company shall use its best efforts to cause Placer Sierra Bancshares to grant to Employee the option to purchase 50,000 shares of Placer Sierra Bancshares common stock. The terms and conditions of such grant shall be governed by the terms and conditions of the Placer Sierra Bancshares 2002 Stock Option Plan and the stock option agreement thereunder to be entered into between Employee and Company.

(i) Other Benefits. Employee shall be entitled to participate during the Employment Term in all employee benefit, welfare and other plans, practices, policies and programs generally applicable to similarly situated employees of Company as are in effect from time to time, in accordance with the applicable terms and conditions thereof. Company reserves the right to modify and amend such benefits, plans, practices, policies and programs from time to time.

5. Termination of Agreement. This Agreement may be terminated with or without cause during the Employment Term in accordance with this section 5.

(a) Termination for Good Reason. Employee may terminate this Agreement for “Good Reason”. “Good Reason” shall mean the occurrence (without Employee’s express written consent) of any one of the following acts by Company or its successor:

(i) The assignment to Employee of duties inconsistent with Employee’s status as General Counsel – Placer Sierra Bancshares or a substantial adverse alteration in the nature or stature of Employee’s responsibilities from those described herein, which is not cured by Company within seven (7) business days after Employee delivers written notice to Company of such assignment or alteration;

(ii) A reduction by Company of Employee’s then current Base Salary;

(iii) Any material breach by Company of any provisions of this Agreement, which breach is not cured by Company within seven (7) business days after Employee delivers written notice of such breach to Company.

In the event that Employee terminates this Agreement for Good Reason, Employee shall be eligible to receive a single sum severance payment equal to twelve (12) months of her then current Base Salary, as defined in section 4(a), plus any incentive bonus prorated, if necessary, for a partial year of employment (less payroll taxes and withholding required by any federal, state or local law, any additional withholding to which Employee has agreed, and any outstanding obligations owed by the Employee to Company), provided that the Company shall be obligated to pay Employee’s incentive bonus under the Company’s Executive Incentive Compensation Plan at the same time as it makes payment of any other incentive bonuses paid to other officers of the Company under such plan and shall not be obligated to make such payment to Employee at any earlier time. No portion of such severance pay shall be payable until eight days after delivery to Company of a duly executed release in the form of Exhibit “B” hereto (“Release”). Employee shall not deliver the executed Release to Company prior to the date his employment with Company terminates.

Such severance pay shall constitute liquidated damages in lieu of any and all claims by Employee against Company and each of its parent companies, shareholders, subsidiaries, divisions and affiliates, and each of their respective directors, partners, officers, employees and agents, arising out of this Agreement or out of the employment relationship or termination of the employment relationship between Employee and Company, and shall be in full and complete satisfaction of any and all rights which Employee may enjoy hereunder, and is expressly conditioned upon receipt by Company of an executed, unconditional Release from Employee in the form of Exhibit “B”.

In the event that Employee terminates this Agreement for Good Reason, Employee also shall be entitled to receive (i) those benefits, if any, that have vested by operation of state or federal law or under any written term of a plan (“Vested Benefits”), and (ii) health care coverage continuation rights under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA Rights”).

(b) Termination Upon Change in Control. “Change in Control” shall mean the occurrence of any of the following events:

(i) The consummation of a plan of dissolution or liquidation of Company;

(ii) The consummation of a plan of reorganization, merger or consolidation involving Company, except for a reorganization, merger or consolidation where (A) the shareholders of Company immediately prior to such reorganization, merger or consolidation own directly or indirectly more than 50% of the combined voting power of the outstanding voting securities of the corporation resulting from such reorganization, merger or consolidation (the “Surviving Corporation”) and the individuals who were members of the Board immediately prior to the execution of the agreement providing for such reorganization, merger or consolidation constitute at least 50% of the members of the board of directors of the Surviving Corporation, or a corporation beneficially directly or indirectly owning a majority of the voting securities of the Surviving Corporation, or (B) Company is reorganized, merged or consolidated with a corporation in which any shareholder owning at least 50% of the combined voting power of the outstanding voting securities of Company immediately prior to such reorganization, merger or consolidation, owns at least 50% of the combined voting power of the outstanding voting securities of the corporation resulting from such reorganization, merger or consolidation;

(iii) The sale of all or substantially all of the assets of Company to another person or entity;

(iv) The acquisition of beneficial ownership of stock representing more than fifty percent (50%) of the voting power of Company then outstanding by another person or entity.

In the event of a Change in Control and, during the twelve month period following such Change in Control, Employee terminates employment with Company (pursuant to section 5(e) below) following a reduction in the Employee’s duties or title, Employee shall be eligible to receive a single sum severance payment equal to twelve (12) months of her then current Base Salary, as defined in section 4(a), plus any incentive bonus prorated, if necessary, for a partial year of employment (less payroll taxes and withholding required by any federal, state or local law, any additional withholding to which Employee has agreed, and any outstanding obligations owed by the Employee to Bank), provided that the Bank shall be obligated to pay Employee’s incentive bonus under the Company’s Executive Incentive Compensation Plan at the same time as it makes payment of any other incentive bonuses paid to other officers of the Company under such plan and shall not be obligated to make such payment to Employee at any earlier time. No portion of such severance pay shall be payable until eight days after delivery to Company of a duly executed Release in the form of Exhibit “B” hereto.

Such severance pay shall constitute liquidated damages in lieu of any and all claims by Employee against Company and each of its parent companies, shareholders, subsidiaries, divisions and affiliates, and each of their respective directors, partners, officers, employees and agents, arising out of this Agreement or out of the employment relationship or termination of the employment relationship between Employee and Company, and shall be in full and complete satisfaction of any and all rights which

Employee may enjoy hereunder, and is expressly conditioned upon receipt by Company of an executed, unconditional Release from Employee in the form of Exhibit “B”.

Notwithstanding anything to the contrary provided herein, in the event the amounts payable to Employee in the event of a Change in Control would, if they included such termination payments to be made pursuant to this section 5(b), constitute Excess Parachute Payments for purposes of Sections 280G(b) and 4999 of the Internal Revenue Code of 1986, as amended, (“IRC”) or any successor statute) (after application of IRC section 280G(b)(4)), the amount payable under this section 5(b) shall be reduced by the amount necessary to cause Employee to receive no Excess Parachute Payments.

In the event that Employee is terminated pursuant to this section 5(b), Employee shall be entitled to receive Vested Benefits, as defined hereinabove, and COBRA rights, as defined hereinabove.

(c) Early Termination by Company Without Cause. This Agreement and Employee’s employment may be terminated by Company without cause, for any reason whatsoever or for no reason at all, in the sole, absolute and unreviewable discretion of Bank, upon written notice by Company to Employee.

In the event that Employee is terminated by Company without cause, Employee shall be eligible to receive a single sum severance payment equal to twelve (12) months of his then current Base Salary, as defined in section 4(a), plus any incentive bonus prorated, if necessary, for a partial year of employment (less payroll taxes and withholding required by any federal, state or local law, any additional withholding to which Employee has agreed, and any outstanding obligations owed by the Employee to Company), provided that the Company shall be obligated to pay Employee’s incentive bonus under the Company’s 2005 Executive Incentive Compensation Plan at the same time as it makes payment of any other incentive bonuses paid to other officers of the Company under such plan and shall not be obligated to make such payment to Employee at any earlier time. No portion of such severance pay shall be payable until eight days after delivery to Company of a duly executed Release in the form of Exhibit “B” hereto.

Such severance pay shall constitute liquidated damages in lieu of any and all claims by Employee against Company and each of its parent companies, shareholders, subsidiaries, divisions and affiliates, and each of their respective directors, partners, officers, employees and agents, arising out of this Agreement or out of the employment relationship or termination of the employment relationship between Employee and Company, and shall be in full and complete satisfaction of any and all rights which Employee may enjoy hereunder, and is expressly conditioned upon receipt by Company of an executed, unconditional Release from Employee in the form of Exhibit “B”.

In the event that Employee is terminated pursuant to this section 5I, Employee shall also be entitled to receive Vested Benefits, as defined hereinabove, and COBRA rights, as defined hereinabove.

(d) Early Termination by Company for Cause. This Agreement and Employee’s employment may be terminated for cause by Company upon written notice to Employee, and Employee shall not be entitled to receive Base Salary or any other compensation or other benefits for any period after termination for cause. Employee

understands and agrees that her satisfactory performance of this Agreement requires conformance with reasonable standards of diligence, competence, skill, judgment and efficiency of a person holding a position that is analogous to the position of General Counsel of a company similar to Company, and as prescribed by California and federal laws and regulations, and that failure to conform to such standards is cause for termination of this Agreement by Company. Termination for cause pursuant to this section 5(d) shall include, but is not limited to, the following:

(i) Any act of material dishonesty;

(ii) Any material breach of this Agreement;

(iii) Any breach of a fiduciary duty (involving personal profit);

(iv) Any habitual neglect of, or habitual negligence in carrying out, those duties contemplated under Sections 1 and 2 of this Agreement;

(v) Any willful violation of any law, rule or regulation, which, by virtue of bank regulatory restrictions imposed as a result thereof, would have a material adverse effect on the business or financial prospects of Company;

(vi) Any conviction of any felony which may be reasonably interpreted to be harmful to the Company’s reputation;

(vii) Any failure by Employee to qualify at any time during the Employment Term for any fidelity bond as described in section 7 of this Agreement;

(viii) The requirement to comply with any final cease-and-desist order or written agreement with any applicable state or federal bank regulatory authority which requests or orders Employee’s dismissal or limits Employee’s employment duties;

(ix) Any conduct which constitutes unfair competition with the Company or any parent company, shareholder, subsidiary, division or affiliate; or

(x) The inducement of any client, customer, agent or employee to break any contract or terminate the agency or employment relationship with the Company or any parent company, shareholder, subsidiary, division or affiliate.

Termination for cause by Company shall not constitute a waiver of any remedies that may otherwise be available to Company under law, equity, or this Agreement.

In the event that Employee is terminated pursuant to this section 5(d), Employee shall be entitled to receive Vested Benefits, as defined hereinabove, and COBRA rights, as defined hereinabove.

(e) Early Termination by Employee. Employee (for other than Good Reason as defined in section 5(a)) may terminate this Agreement upon 90 days’ written notice to Company. Employee shall continue to perform her duties under this Agreement until the end of such 90 day period, provided however, that Company may, at its option, immediately terminate this Agreement, upon notice to Employee, and in the event that Company so elects to terminate this Agreement, Company shall continue to pay Employee her normal compensation through the end of such 90 day period. Thereafter, Employee shall not be entitled to receive compensation or other benefits under this

Agreement, provided, however, that Employee shall be entitled to receive Vested Benefits, as defined hereinabove, and COBRA rights, as defined hereinabove.

(f) Early Termination Upon Disability. This Agreement and all benefits hereunder shall terminate if Employee is not able, as a result of an illness or other physical or mental disability, to perform the essential functions of her position as required by this Agreement for a period of ninety (90) consecutive days or in excess of one hundred eighty (180) days in any one (1) year period, notwithstanding reasonable accommodation by Company to Employee’s known physical or mental disability, solely in accordance with, and to the extent required by, the Americans with Disabilities Act, 29 U.S.C. Sections 12101-213 or any other state or local law governing the employment of disabled persons (the “ADA”) provided such accommodation would not impose an undue hardship on the operation of Company’s business or a direct threat to the Employee or others pursuant to the ADA. In the event of termination of this Agreement by Company pursuant to this section 5(f):

(i) Employee shall be entitled to disability benefits provided by the disability insurance coverage identified in section 5(f) of this Agreement; and

(ii) All other benefits provided for under this Agreement shall cease as of the date of termination (except insofar as the group insurance benefits provided under section 5(f) may be continued or convertible by Employee as provided under COBRA or other laws applicable at the time of termination).

(iii) Employee shall also be entitled to receive Vested Benefits, as defined hereinabove.

For purposes of this Agreement, physical or mental disability shall mean the inability of Employee to fully perform under this Agreement for a continuous period of ninety (90) days, as determined in the case of physical disability by a physician, or in the case of mental disability by a psychiatrist, both of whom must be licensed to practice medicine in California and are to be selected with the approval of Company and Employee. Upon demand by Company, Employee shall act promptly to select such physician or psychiatrist jointly with Company and shall consent to undergo any reasonable examination or test. Recurrent disabilities will be treated as separate disabilities if they result from unrelated causes or if they result from the same or related cause or causes and are separated by a continuous period of at least twelve (12) full months during which Employee was able to perform her duties hereunder equal to at least eighty percent (80%) of her capacity prior to disability. Otherwise, recurrent disabilities will be treated as a continuation of previous disabilities for the purpose of determining the limitations established in this Section.

(g) Death During Employment. This Agreement and all benefits hereunder shall terminate immediately upon the death of Employee, except that Employee’s heirs or estate shall also be entitled to receive Vested Benefits, as defined hereinabove, and Employee’s dependants may be entitled to COBRA rights, as defined hereinabove.

6. Survival of Obligations. The provisions of Sections 5, 9, 10, 11, 12, 13, 15, 17, 24 and 27 of this Agreement shall survive Employee’s termination of employment and the termination of this Agreement. Other provisions of this Agreement shall survive any termination of Employee’s employment to the extent necessary to the intended preservation of each Party’s respective rights and obligations.

7. Fidelity Bond. Employee agrees that she will furnish all information and take any other steps necessary to enable Company to obtain or maintain a fidelity bond conditional on the rendering of a true account by Employee of all moneys, goods, or other property which may come into the custody, charge or possession of Employee during the Employment Term. The surety company issuing the bond and the amount of the bond must be acceptable to Company and satisfy all banking laws and regulations. All premiums on the bond are to be paid by Company. If Employee cannot qualify for a fidelity bond at any time during the term of this Agreement, Company shall have the option to terminate this Agreement immediately, which shall constitute a termination for cause as defined in section 5(d) hereof.

8. Compliance with Company Policies. Employee agrees to observe and comply with the rules and regulations of Company respecting the performance of her duties and to carry out and perform orders, directions and policies communicated to her from time to time. Employee agrees to comply with all rules and policies contained in any applicable Employee Handbook which has been or will be issued by Company.

9. Company Property. All records, financial statements and similar documents obtained, reviewed or compiled by Employee in the course of the performance by her of services for Company, whether or not confidential information or trade secrets, shall be the exclusive property of Company. Employee agrees to hold as Company’s property, all memoranda, books, papers, letters, formulas and other data, and all copies thereof and therefrom, in any way relating to Company’s business and affairs, whether made by her or otherwise coming into her possession, and on termination of her employment, or on demand of Company, at any time to deliver the same to Company. Employee shall have no rights in such documents upon any termination of her employment.

10. Proprietary Information.

(a) Employee recognizes and acknowledges that Company and its parent companies, shareholders, subsidiaries, divisions and affiliates possess trade secrets and other confidential and/or proprietary information concerning their respective business affairs and methods of operation which constitute valuable, confidential, and unique assets of the business of Company and its parent companies, shareholders, subsidiaries, divisions and affiliates (“Proprietary Information”), which Company and its parent companies, shareholders, subsidiaries, divisions and affiliates have developed through a substantial expenditure of time and money and which are and will continue to be utilized in the business of Bank and its parent companies, shareholders, subsidiaries, divisions and affiliates and which are not generally known in the trade. As used herein, Propriety Information includes the following:

(i) Customer lists, including information regarding the identity of clients and client contacts, client accounts, the business needs and preferences of clients, and information regarding business and contractual arrangements with clients.

As used herein, “Customer List” is not limited to physical writing or compilations, and includes information which is contained in or reproduced from the memory of any employee.

(ii) Business plans, objectives and strategies, and marketing plans and information;

(iii) Financial information, sales information and pricing information, including information regarding vendors, suppliers and others doing business with Bank, or any parent company, shareholder, subsidiary, division or affiliate thereof;

(iv) Personal identities and information regarding skills and compensation of the personnel of Company, or any parent company, shareholder, subsidiary, division or affiliate thereof;

(v) Company manuals and handbooks, computer programs and data;

(vi) Any other confidential information which gives Company, or any parent company, shareholder, subsidiary, division or affiliate thereof, an opportunity to claim a competitive advantage or has economic value.

(b) During his employment with Company, Employee will not use, copy, transmit or otherwise disclose Company’s Proprietary Information for any purpose other than for the benefit of Company, and Employee will make all reasonable efforts to protect the confidential nature of such information. Employee will not disclose Company’s Proprietary Information to anyone not entitled to such disclosure without the advance written permission of the Chairman of the Board.

(c) Upon termination of her employment, Employee will immediately deliver to Company all of Company’s Proprietary Information. Employee will not retain any copies of Company’s Proprietary Information after termination of her employment without the express written consent of the Chairman of the Board.

(d) After termination of his employment, Employee will not use Company’s Proprietary Information for any purpose, or disclose or communicate the same to any person, firm or corporation for any purpose.

(e) In the event Employee should receive, during the Employment Term, or thereafter, any subpoena, search warrant or other court process requiring Employee to produce any documents containing Proprietary Information as defined herein, Employee shall immediately provide a copy of such request to Company.

(f) Notwithstanding anything in this Agreement to the contrary, information (i) already in the public domain; (ii) independently developed by the Employee; (iii) obtained from a source not subject to a confidentiality obligation to Company or a third party; or (iv) that becomes public knowledge (other than by acts of the Employee in violation of this Agreement), shall not be deemed to be Proprietary Information as described in this section 10.

11. Non-Solicitation. During his employment with Company, and for a period of one year immediately following her employment with Company, Employee shall not, directly or indirectly, solicit or attempt to solicit any employee of Company, or of any parent company, shareholder, subsidiary, division or affiliate thereof, to terminate his employment with said company, or to work for any other business, person or company.

12. Equitable Relief. Employee acknowledges that any breach or threatened breach by her of the provisions of Sections 9, 10 and 11 of this Agreement will result in immediate and irreparable harm to Company, for which there will be no adequate remedy at law, and that Company will be entitled (subject to section 27) to equitable relief to restrain Employee from violating the terms of these sections, or to compel Employee to cease and desist all unauthorized use and disclosure of the Confidential Information, without posting bond or other security. Nothing in this section shall be construed as prohibiting Company from pursuing any other remedies available to it for such breach or threatened breach, including recovery of damages from Employee.

13. Property of Others. Employee represents that her performance under this Agreement does not and will not breach any agreement to keep in confidence confidential information or trade secrets, if any, acquired by Employee in confidence prior to this Agreement. There are no agreements, written or oral, conveying rights in any research conducted by Employee. Employee represents, as part of the consideration for entering into this Agreement, that she has not brought and will not bring to Company or use in the performance of her responsibilities at Company any equipment, supplies, facility or trade secret information of any current or former employer or organization with which she provided services which are not generally available to the public, unless she has obtained written authorization for their possession and use.

14. Non-Competition by Employee. Employee shall not, during her employment with Company, directly or indirectly, either as an employee, employer, consultant, agent, principal, partner, shareholder, corporate officer, director, or in any other individual or representative capacity, work for, or engage or participate in the business of, any competing company, bank, bank holding company or financial holding company or financial institution or financial services business without the prior written consent of the Board.

15. Indemnification. Company shall indemnify Employee, to the maximum extent permitted under the Bylaws of Company and governing laws and regulations, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by Employee in connection with any threatened or pending action, suit or proceeding to which Employee is made a party by reason of her position as an officer or agent of Company or by reason of her service at the request of Company, if Employee acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of Company. If available at rates determined by Company, in its sole discretion, to be reasonable, Company shall endeavor to apply for and obtain Directors’ and Officers’ Liability Insurance to indemnify and insure Company and Employee from such liability or loss. Employee shall indemnify Company from and against all costs, expenses (including attorney’s fees), liability and damages arising out of any act of misconduct, other than actions taken in good faith and

in a manner reasonably believed to be in or not opposed to the best interests of Company, by Employee during the term of this Agreement.

Notwithstanding the foregoing, in any administrative proceeding or civil action initiated by any federal banking agency, Company may only reimburse, indemnify or hold harmless Employee if Company is in compliance with any applicable statute, rule, regulation or policy of the Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, or the California Department of Financial Institutions regarding permissible indemnification payments.

16. Breach. Breach by either Party of any of its respective obligations under Sections 1, 2, 4, 8, 9, 10, 11, 12, 13 and 14 of this Agreement shall be deemed a material breach of that Party’s obligations hereunder, provided, however, that no breach of a monetary obligation shall be deemed a material breach until the Party allegedly in breach has failed to cure said breach within seven (7) business days after the aggrieved Party delivers written notice of such breach to the other Party.

17. Survival of Agreement in Event of Merger. This Agreement shall not be terminated by any merger in which Company is not the surviving or resulting corporation, or on any transfer of all or substantially all of Company’s assets. In the event of any such merger or transfer of assets, the provisions of this Agreement shall be binding on and inure to the benefit of the surviving business entity or the business entity to which such assets shall be transferred. This section shall not serve to diminish Employee’s rights pursuant to section 5(b) above.

18. Tax Consequences. Employee is urged to review with her own tax advisors the federal and state tax consequences of the transactions contemplated by this Agreement. Employee is relying solely on such advisors (if any) and not on any statements or representations of Company or any of its agents.

19. Withholding. All payments provided for hereunder shall be reduced by payroll taxes and withholding required by any federal, state or local law, and any additional withholding to which Employee has agreed in writing.

20. Notices. Any notices to be given hereunder by either Party to the other may be effected in writing either by personal delivery or by mail, registered or certified, postage prepaid with return receipt requested. Notices to Company shall be given to Company at its then current principal office, c/o Chairman of the Board of Directors. Notices to Employee shall be sent to Employee’s last known personal residence. Notices delivered personally shall be deemed communicated as of actual receipt; mailed notices shall be deemed communicated as of five (5) calendar days after mailing.

21. Entire Agreement. The Parties expressly agree that this document constitutes the entire agreement between the Parties with respect to the employment of Employee (excluding only stock option agreements) and contains all of the covenants and agreements between the Parties with respect to such employment. Each Party to this Agreement acknowledges that no representations, inducements, promises or agreements, oral or otherwise, have been made by any Party, or anyone acting on behalf of any Party,

which are not embodied herein, and that no other agreement, statement or promise not contained in this Agreement shall be valid and binding.

22. Amendment. This Agreement may be changed or modified, or any provisions hereof waived, only by a writing signed by the Party against whom enforcement of any waiver, change or modification is sought.

23. Severability. In the event that any term or condition contained in this Agreement shall, for any reason, be held by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or non-enforceability shall not affect any other term or condition of this Agreement, but this Agreement shall be construed as if such invalid or illegal or unenforceable term or condition had never been contained herein.

24. Choice of Law and Forum. This Agreement shall be governed by and construed in accordance with the laws of the State of California, except to the extent preempted by the laws of the United States. Any action or proceeding brought upon, or arising out of, this Agreement or its termination shall be brought in a forum located within the State of California, and Company and Employee hereby agree to be subject to service of process in California.

25. Waiver. The Parties hereto shall not be deemed to have waived any of their respective rights under this Agreement unless the waiver is in writing and signed by such waiving Party. No delay in exercising any rights shall be a waiver nor shall a waiver on one occasion operate as a waiver of such right on a future occasion.

26. Interpretation. This Agreement shall be interpreted in accordance with the plain meaning of its terms and not strictly for or against any of the Parties hereto. Captions and section headings used herein are for convenience and ready reference only and shall not be used in the construction or interpretation thereof.

27. Arbitration. In the event of any dispute, claim or controversy between the Employee and Company (or any of Company’s parent companies, shareholders, subsidiaries, divisions and/or affiliates and/or any of its or their respective officers, partners, directors, members, managers, employees, agents or employees) arising out of this Agreement or the Employee’s employment with Company, Employee and Company agree to submit such dispute, claim or controversy to final and binding arbitration before the American Arbitration Association (“AAA”) in accordance with the AAA National Rules for the Resolution of Employment Disputes. The claims governed by this arbitration provision include, but are not limited to, claims for breach of contract, civil torts and employment discrimination such as violation of the Fair Employment and Housing Act, Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, the Americans with Disabilities Act and other employment laws.

(a) The arbitration shall be conducted by a single arbitrator selected either by mutual agreement of the Employee and Company or, if they cannot agree, from an odd-numbered list of experienced employment law arbitrators provided by the American Arbitration Association. Each Party shall strike one arbitrator from the list alternately until only one arbitrator remains.

(b) Each Party shall have the right to conduct reasonable discovery, as determined by the arbitrator.

(c) The arbitrator shall have all powers conferred by law and a judgment may be entered on the award by a court of law having jurisdiction. The arbitrator shall render a written arbitration award that contains the essential findings and conclusions on which the award is based. The award and judgment shall be binding and final on both Parties.

(d) Company will pay the arbitrator’s fees and costs as well as any AAA administrative fees. The Parties shall each pay the fees of their own attorneys and the expenses of their own witnesses.

(e) This agreement to arbitrate shall continue during Employment Term and thereafter regarding any employment-related disputes.

(f) The Employee and Company understand that by signing this Agreement, they give up their right to a civil trial and their right to a trial by jury.

IN WITNESS WHEREOF, this Agreement is entered into as of the Effective Date.

“COMPANY”		“EMPLOYEE”
PLACER SIERRA BANCSHARES		ANGELEE HARRIS
/s/ Ronald W. Bachli		/s/ Angelee Harris
		ANGELEE HARRIS
By:	Ronald W. Bachli
Title:	Chairman & Chief Executive Officer

EXHIBIT A

Placer Sierra Bancshares

Job Description

Job Title:	Executive Vice President, General Counsel and Corporate Secretary
Division:	Corporate
Department:	Executive Administration
Reports To:	Chairman of the Board of Directors and CEO
Salary Level:	Per Employment Contract
Prepared By:	Human Resources
Prepared Date:	01/3/05
Approved By:	Human Resources
Approved Date:	01/3/05
FLSA Status:	Exempt

SUMMARY

Provides general corporate counsel and advice to the Board of Directors and management of the Company and the Bank, supports the policies, goals, and objectives established by the Chief Executive Officer and the Board of Directors by performing the following duties personally or through subordinate managers.

ESSENTIAL DUTIES AND RESPONSIBILITIES include the following. Other duties may be assigned.

Manages the documentation of the Company’s and the Bank’s Board and Committee activities.

Maintains corporate records of the Company and the Bank.

Provides counsel and advice concerning SEC laws and regulations.

Supervises the preparation of reports and other documents required to be filed under the Securities and Exchange of 1934.

Supervises the preparation of registration statements and reports required to be filed under the Securities Act of 1933.

Provides counsel and advice concerning bank holding company and bank regulatory matters.

Consults with respect to the documentation of internal controls and conduct of internal control certifications under Section 404 of the Sarbanes, Oxley Act, including the Company’s Disclosure Committee activities.

Supports the Company’s shareholder communications process and procedures.

Supervises the activities of outside counsel.

Supports the Company’s merger and acquisition and corporate finance activities, including the preparation of regulatory applications required in connection thereto.

SUPERVISORY RESPONSIBILITIES

Supervises the activities of the Company’s and the Bank’s Recording Secretary

QUALIFICATIONS

To perform this job successfully, an individual must be able to perform each essential duty satisfactorily. The requirements listed below are representative of the knowledge, skill, and/or ability required. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.

EDUCATION and/or EXPERIENCE

Juris Doctor Degree. Five or more years of experience in securities law, corporate finance, as well as, bank holding company and bank regulatory matters.

LANGUAGE SKILLS

Ability to read, analyze, and interpret the most complex legal documents, as well as, law and regulations. Ability to respond effectively to the most sensitive inquiries or complaints. Ability to write legal documents and reports using original or innovative techniques or style. Ability to make effective and persuasive arguments and explanations and presentations on controversial or complex topics to top management, public groups, and/or boards of directors.

MATHEMATICAL SKILLS

Ability to work with mathematical concepts such as probability and statistical inference. Ability to apply concepts such as fractions, percentages, ratios, and proportions to practical situations.

REASONING ABILITY

Ability to define problems, collect data, establish facts, and draw valid conclusions. Ability to interpret an extensive variety of technical instructions in mathematical or diagram form and deal with several abstract and concrete variables.

CERTIFICATES, LICENSES, REGISTRATIONS

Valid Driver license.

OTHER SKILLS AND ABILITIES

Familiarity with banking and/or financial terminology a must. Ability to interact effectively with boards of directors, shareholders, customers, superiors, peers, and subordinates. Ability to actively promote the goals and objectives of the Company and Bank in a positive and professional manner. Excellent interpersonal skills required.

PHYSICAL DEMANDS

The physical demands described here are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.

While performing the duties of this job, the employee is regularly required to talk or hear. The employee frequently is required to sit and use hands to finger, handle, or feel. The employee is occasionally required to stand, walk, and reach with hands and arms. The employee must occasionally lift and/or move up to 25 pounds. Specific vision abilities required by this job include close vision, distance vision, peripheral vision, depth perception, and ability to adjust focus.

WORK ENVIRONMENT

The work environment characteristics described here are representative of those an employee encounters while performing the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.

The noise level in the work environment is usually quiet.

EXHIBIT B

RELEASE AGREEMENT

This Release Agreement (“Release”) was given to me, ANGELEE HARRIS (“Employee”), this      day of                     , 200     , by PLACER SIERRA BANCSHARES, a California corporation (“Company”). At such time as this Release becomes effective and enforceable (i.e., the revocation period set forth below has expired), and assuming such Employee is otherwise eligible for payments under the terms of that certain Employment Agreement between Employee and Company dated             , 200     (the “Agreement”), Company agrees to pay Employee, pursuant to the terms of the Agreement, a single sum severance payment in the amount of $                     (less payroll taxes and withholding required by any federal, state or local law, any additional withholding to which Employee has agreed, and any outstanding obligations owed by the Employee to Company). Company further agrees to pay to Employee Employee’s pro rated incentive bonus, if any, to which Employee is entitled pursuant to the terms of Company’s Executive Incentive Plan (less payroll taxes and withholding required by any federal, state or local law and any additional withholding to which Employee has agreed), provided that the Company shall be obligated to pay Employee’s incentive bonus under the Company’s Executive Incentive Compensation Plan at the same time as it makes payment of any other incentive bonuses paid to other officers of the Company under such plan and shall not be obligated to make such payment to Employee at any earlier time.

Employee is also entitled to receive (i) those benefits, if any, that have vested by operation of state or federal law or under any written term of a plan (“Vested Benefits”), and (ii) health care coverage continuation rights under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

In consideration of the receipt of the promise to pay such amount, Employee hereby agrees, for herself, her heirs, executors, administrators, successors and assigns (hereinafter referred to as the “Releasors”), to fully release and discharge Company and each of its parent companies, shareholders, subsidiaries, divisions and affiliates, and each of their respective officers, partners, directors, members, managers, employees and agents, and each of their respective predecessors, successors, heirs and assigns (hereinafter referred to as the “Releasees”) from any and all claims, suits, causes of action, debts, obligations, costs, losses, liabilities, damages and demands under any federal, state or local law or laws, or contract, tort or common law, whether or not known, suspected or claimed, which the Releasors have, or hereafter may have, against the Releasees arising out of or in any way related to Employee’s employment (or other contractual relationship) with Company and/or the termination of that relationship. The claims released herein include claims under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Employee Retirement Income Security Act, the Americans with Disabilities Act, the U.S. Pregnancy Discrimination Act, the U.S. Family and Medical Leave Act, the U.S. Fair Labor Standards Act, the U.S. Equal Pay Act, The Workers Adjustment and Notification Act, the California Fair Employment and Housing Act, and the California Labor Code. Provided, however, that this Agreement

does not waive rights or claims under the Age Discrimination in Employment Act that may arise after the date this Release is executed.

It is understood and agreed that this Release extends to all such claims and/or potential claims, and that Employee, on behalf of the Releasors, hereby expressly waives all rights with respect to all such claims under California Civil Code section 1542, which provides as follows:

A general release does not extend to claims which the

creditor does not know or suspect to exist in his favor at the

time of executing the release, which if known by him must

have materially affected his settlement with the debtor.

The monies to be paid to the Employee in this Release are in addition to any sums to which he would be entitled without signing this Release.

Employee acknowledges that she has read and does understand the provisions of this Release. Employee acknowledges that she affixes her signature hereto voluntarily and without coercion, and that no promise or inducement has been made other than those set out in this Release and that she executes this Release without reliance on any representation by any Releasee.

Employee understands that this Release involves the relinquishment of her legal rights, and that she has the right to, and has been given the opportunity to, consult with an attorney of her choice. Employee acknowledges that she has been (and hereby is) advised by Company that she should consult with an attorney prior to executing this Release.

This document does not constitute, and shall not be admissible as evidence of, an admission by any Releasee as to any fact or matter.

In case any part of this Release is later deemed to be invalid, illegal or otherwise unenforceable, Employee agrees that the legality and enforceability of the remaining provisions of this Release will not be affected in any way.

Employee acknowledges that she has been given a period of twenty-one (21) days from receipt of this Release within which to consider this Release and decide whether or not to execute this Release. If Employee executes this Release at any time prior to the end of the 21 day period, such early execution was a knowing and voluntary waiver of Employee’s right to consider this Release for at least 21 days, and was due to her belief that she had ample time in which to consider this Release.

Employee may, within seven (7) days of her execution and delivery of this Release, revoke this Release by a written document received by Company on or before the end of the seven (7) day period. The Release will not be effective until said revocation period has expired. No payments will be made hereunder if the Employee revokes this Release.

Dated:
	ANGELEE HARRIS

EXHIBIT C

Pursuant to Section 2(b) of the Employment Agreement, Employee hereby discloses the following activities that are approved by the Company:

(1) Employee is the author of a securities chapter for a book about internet law, and

(2) Employee is writing a biography of a family member.

EX-99.1

Exhibit 99.1

Exhibit 99.1

Investor Presentation

February 2005

Forward Looking Information

This presentation may include forward-looking statements. These forward-looking statements include comments with respect to our objectives and strategies and the results of our operations and our business. However, by their nature, these forward-looking statements involve numerous assumptions, uncertainties and opportunities, both general and specific. The risk exists that these statements may not be fulfilled. We caution readers of this presentation not to place undue reliance on these forward-looking statements, as a number of factors could cause future company results to differ materially from these statements. Forward-looking statements may be influenced in particular by factors such as fluctuations in interest rates and stock indices, the effects of competition in the areas in which we operate and changes in economic, political, regulatory and technological conditions. We caution that the foregoing list is not exhaustive. When relying on forward-looking statements to make decisions, investors should carefully consider the aforementioned factors and the other information contained in the prospectus related to this offering as well as other uncertainties and events.

2

Stock Profile

NASDAQ Symbol: PLSB

Recent Price (1/25/05): $25.05

Market Cap: $373 million

Shares Outstanding: 14.9 million

Float: 13.6 million

Avg. Volume: 67,272

Forward P/E*: 14.7

Price/Book (mrq): 1.95

*Based on 2005 consensus analyst estimates

3

Investment Considerations

Exceptional opportunities in two of California’s high growth markets

Experienced management team that has extensive knowledge of both Northern and Southern California banking markets Asset sensitive balance sheet well positioned for a rising interest rate environment Attractive banking franchise with low cost of deposits Highly leveragable cost structure in place Recent acquisition will add $0.30 per share in 2005

4

Company Overview

Placer Sierra Bancshares

At $1.8 billion, Placer Sierra is the largest community bank headquartered in Central California Placer Sierra operates in the greater Sacramento and Southern California high-growth market areas Experienced M&A and commercial bank management team in both Northern and Southern California

6

Located in High Growth Areas

31 branches in Northern California

9 branches in Southern California

7

Strong Trends in Key Metrics

Net Income

(in 000s)

$18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0

$636

$3,325

$9,228

$14,435

$16,768

2000 2001 2002 2003* 2004**

Efficiency Ratio

140% 120% 100% 80% 60% 40% 20% 0%

126.63%

84.15%

80.46%

69.56%

64.75%

2000 2001 2002 2003* 2004**

*Excluding gain on sale of branches

**Based on operating earnings, which excludes merger-related costs and losses related to restructuring of acquired investment securities

8

Strong Trends in Key Metrics

ROAA

1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00%

0.05%

0.25%

0.66%

1.02%

1.15%

2000 2001 2002 2003* 2004**

ROAE

12% 10% 8% 6% 4% 2% 0%

0.47%

2.25%

6.29%

9.10%

9.55%

2000 2001 2002 2003* 2004**

*Excluding gain on sale of branches

**Based on operating earnings, which excludes merger-related costs and losses related to restructuring of acquired investment securities

9

Consistently Strong Growth

Five Year CAGR*

Net income**: 66%

Loans: 15%

Non-interest bearing deposits: 17%

Net interest income: 18%

Non-interest income: 18%

*Five years ended December 31, 2004

**Based on operating earnings for 2004, which excludes merger-related costs and losses related to restructuring of acquired investment securities

10

Attractive Markets: Northern California

Serving Placer, Sacramento & El Dorado Counties

Low unemployment rate in the Sacramento region, 5.4% in June 2004, vs. 5.6% nationally Placer County’s population has grown 43.8% in the last decade vs. 13.1% nationally and was rated number one in job growth among urban counties nationally Placer County deposit growth of 14.9% exceeds the national average

11

Attractive Markets: Southern California

Serving Los Angeles and Orange Counties

Orange County’s unemployment rate was 3.5% in June 2004, the second lowest in the U.S.

Los Angeles County ranked first, and Orange County ranked seventh in population growth of 3,000 U.S. counties Los Angeles County deposit growth of 14.6% exceeds the national average

12

Operating and Growth Strategies

Capitalize on growth opportunities in both our northern and southern California markets

Expand through strategically placed new branches in Northern California Acquire one or more retail banking franchises in Southern California to complement Bank of Orange County’s well established commercial lending business

Continue to aggressively recruit experienced commercial bankers with portfolios of loyal customers

13

Operating and Growth Strategies

Use our size to give us a competitive advantage

Secured loan lending limit was $58.7 million as of Dec. 31, 2004 Unsecured loan lending limit was $35.2 million as of Dec. 31, 2004

Continue to leverage our integrated, customer-centered sales and service culture

Big bank sales culture combined with community bank customer service results in high loan and deposit growth Investment in MCIF/CRM software provides ability to identify sales opportunities and enhance product and customer profitability

14

Financial Performance

2004 Financial Highlights

Temporary excess liquidity negatively impacted EPS in second half of 2004 by approximately $0.06 per share Operating EPS increased 8.4% Organic loan growth of 14.0% Organic deposit growth of 13.5% Operating ROAA increased to 1.15% from 1.02% Operating ROAE increased to 9.55% from 9.10%

16

Q4 2004 Financial Highlights

Temporary excess liquidity negatively impacted EPS by approximately $0.03 per share Operating EPS increased 15.4% Organic annualized loan growth of 11.7%

Significant prepayments mitigated overall loan growth

Organic annualized deposit growth of 13.1% Cost of deposits of 0.66% NPAs 0.20% of total assets

17

Loan Portfolio Composition

Low Risk Real Estate Focus

Unfunded Commercial Lines Doubled

December 31, 2001 $873,143

24%

7%

18%

3%

4%

44%

December 31, 2004 $1,296,596

20%

14%

14%

1% 2%

50%

Real Estate—Commercial Real Estate—Construction Consumer

Real Estate—Residential Commercial Leases & Other

18

Deposit Composition

Increasing Non-interest Bearing Deposits Decreasing Time Deposits

December 31, 2001 $1,118,883

35%

10%

15%

14%

26%

Cost of deposits for twelve months ended 12/31/01: 2.47%

December 31, 2004 $1,500,059

12%

18%

17%

32%

21%

Cost of deposits for three months ended 12/31/04: 0.66%

Non-Interest Bearing Money Market Time

Interest Bearing Demand Savings

19

Core Deposit Growth

$1,600 $1,400 $1,200 $1,000 $800 $600

$1,118.9

$1,198.1

$1,137.1

$1,500.0

$727.9

$1,017.5

$912.6

$975.8

$904.6

$1,184.4

$894.6

2001 2002 2003 2004

Core Deposit Growth $276.9 mm Deposit Restructure Impact—($224.3mm)

Total Deposit Growth—$381.1mm

20

Net Interest Margin

Net interest margin has been impacted by rapidly declining interest rates and high levels of loan portfolio prepayments, yet has stayed relatively stable due to balance sheet management.

7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%

5.01%

6.26%

5.02%

3.88%

4.59%

1.67%

4.83%

1.12%

4.92%

1.36%

7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%

2000 2001 2002 2003 2004

Net Interest Margin

Avg. Fed Funds

21

Stable Cost of Deposits*

6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00%

4.00% 4.00% 4.00% 4.00% 4.00% 4.00%

4.25%

4.50%

4.75% 4.75%

5.00%

5.25%

1.00% 1.00% 1.00% 1.00% 1.00% 1.00%

1.25%

1.50%

1.75%

1.75%

2.00% 2.00%

0.66% 0.66% 0.65% 0.64% 0.65% 0.66% 0.61% 0.61% 0.64% 0.65% 0.66% 0.66%

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

PLSB Deposits

Fed Funds

Prime

*January through December 2004

22

Catalysts for Strong Future Performance

Attractive markets driving balance sheet growth

High performance sales culture being adopted at Bank of Orange County and Bank of Lodi Combination of revenue growth and reduction in redundant overhead at Bank of Orange County and Bank of Lodi will drive efficiency ratio to mid-50% range by end of 2005 Further increases in interest rates and treasury yields will have a positive impact on net interest margin Acquisition of Bank of Lodi will be highly accretive in 2005 Reallocation of liquidity from Federal Funds sold into securities portfolio

23

2005 Expectations

Q1 EPS of $0.35 - $0.37

Funded full year loan growth of 11%-12%

Loan production expected to be significantly higher CRE loan production being sold to generate near-term income to support expansion in Fresno and Southern California

Full year deposit growth of 14%-15% Continued high credit quality Increasing net interest margin

24

Long-Term Performance Goals

ROE: 15%

ROA: 1.50%-1.60%

EPS Growth: 20%/Year

Loan Growth: 13%/Year

Deposit Growth: 14%/Year

Efficiency Ratio: 50%-55%

25

Investor Presentation

February 2005

INVESTMENT PROFILE

FEBRUARY 2005

Placer Sierra Bancshares (Nasdaq: PLSB) is a leading community banking franchise primarily serving the greater Sacramento, Los Angeles, and Orange County areas. Capitalizing on some of the fastest growing markets in the country, Placer Sierra Bancshares has leveraged a deep and talented management team, a diverse portfolio of financial product offerings, and a sales culture committed to best-in-class customer service to deliver consistent improvement in key metrics such as net income, return on equity (ROE), return on assets (ROA) and operating efficiency ratio. Due to the significant improvement in its financial performance over the past four years, the Company started paying a dividend in January 2005 and intends to increase it as the Bank continues to grow.

Following the acquisition of First Financial Bancorp (which closed in December 2004), Placer Sierra Bancshares has 40 branches and $1.8 billion in assets, making it the largest community bank operating in California’s Central Valley. The First Financial acquisition expands PLSB’s footprint south of Sacramento into the high growth markets along the Highway 99 corridor in Central California. Building on the solid reputation it has developed in Sacramento—the most influential metropolitan area along the Highway 99 corridor—PLSB plans to expand its operations southward to Fresno through de novo branch openings and/or additional acquisitions in order to take advantage of attractive, under-banked markets along Highway 99.

Placer Sierra Bancshares serves small and medium sized businesses, as well as the consumer market. By offering its customers the resources of a large financial institution, with the resourcefulness and superior customer service of a community bank, Placer Sierra has built a successful niche in relationship banking that has resulted in a growing customer base and an attractive, low-cost deposit franchise.

Recent Price (1/25/05)	$	25.05
Market Capitalization	$	373 million
Shares Outstanding		14.9 million
Float		13.6 million
Average Daily Volume		67,232
Forward P/E*		14.7
Price to Book		1.95

* Based on 2005 consensus estimates

Placer Sierra Bancshares

525 J Street

Sacramento, CA 95814

(916) 554-4750

www.placersierrabancshares.com

NASDAQ: PLSB

INVESTMENT

APPEALS

Significant opportunities in high-growth California market – PLSB currently operates in two of California’s most robust markets, including the greater Sacramento area and Orange County in southern California. Through its acquisition of First Financial Bancorp, PLSB has extended its footprint south of Sacramento along the high-growth Highway 99 corridor in the Central California Valley. This under-banked area shares demographics similar to the markets in which PLSB already operates, including 3.5 million residents with an average household income of slightly more than $50,000. Collectively, there are almost $43 billion in deposits throughout the area and less than 570 banking offices. PLSB plans to strengthen its position from Sacramento to Fresno through de novo branch openings and/or additional acquisitions.

Significantly improved balance sheet – PLSB’s management team has tremendously improved the quality of its balance sheet through an organized re-constitution of its deposit and loan portfolios. The Company’s deposit base, which was composed primarily of higher cost certificate of deposits (CDs), is now comprised primarily of less expensive NOW and Demand accounts. In the five years from 1999 to 2004, PLSB significantly reduced its cost of deposits from 2.47% to 0.66%. As a result, PLSB has generated exceptional improvement in several key operating metrics. The Company also maintains a rigorous set of underwriting standards to keep loan and lease portfolio losses to a minimum.

Strong trends in key metrics – PLSB has generated consistent improvement in all of its key metrics over the past four years. From 1999 to 2004 (using operating earnings for 2004), PLSB’s net income grew at a compound annual rate of 66%, while its ROAA improved from 0.05% to 1.15% and its ROAE improved from 0.47% to 9.55%. The acquisition of First Financial Bancorp is expected to drive further improvement in ROAA and ROAE to approximately 1.35% and 13%, respectively, in 2005.

Sales and service culture promotes profitability – The culture at PLSB revolves around sales and service standards that have allowed the Company to build and maintain a stellar community banking reputation. Investments in software and technology provide Placer Sierra Bancshares with the ability to quickly identify sales opportunities and enhance the profitability of its existing relationships. The Company recruits talented and experienced bankers who bring existing client relationships and portfolios, and provides regular training and feedback to all employees to ensure best-in-class service for its customers.

Experienced management team leading future growth – PLSB’s management team has an average of almost 30 years of banking experience, with extensive knowledge of both the northern and southern California markets. In addition, the senior members of the management team have extensive M&A experience and are adept at identifying, valuing and integrating acquisitions that enhance shareholder value.

BUSINESS

OVERVIEW

Over the last five years, the management of Placer Sierra Bancshares has successfully transformed the Company from a traditional savings and loan to a community-based commercial bank that emphasizes relationship banking and generating low cost deposits. As a result, PLSB has realized significant improvements in several key performance metrics.

Creating a Low Cost Deposit Base

Through highly effective balance sheet management, PLSB has significantly improved its deposit base. By managing out high-cost, non-relationship deposits and replacing them with additional core deposits, the Company has dramatically changed the composition of its deposit base and substantially lowered its cost of funds.

By reducing its dependence on high cost CDs, and developing a superior customer service culture to attract non-interest bearing commercial and personal checking accounts, PLSB reduced its interest expense to total assets ratio to 0.5% in 2004 from 3.2% in 1999. This contributed to a $35.3 million increase in net interest income from 1999 to 2004.

While the Company has more than doubled its total deposits during the re-constitution period, it has also significantly lowered its cost of funds to create

Investment Profile 2 February 2005

NASDAQ: PLSB

	December 31, 2000				December 31, 2004
Category	Dollar Amount		% of Total Deposits		Dollar Amount		% of Total Deposits
Demand	$	284 MIL	26	%	$	485 MIL	32	%
NOW	$	133 MIL	12	%	$	257 MIL	17	%
Money Market	$	172 MIL	16	%	$	263 MIL	18	%
Savings	$	101 MIL	9	%	$	180 MIL	12	%
Time < $100,000	$	247 MIL	23	%	$	176 MIL	12	%
Time > $100,000	$	155 MIL	14	%	$	140 MIL	9	%
Total	$	1.1 BIL	100	%	$	1.5 BIL	100	%

a healthier, more profitable banking franchise that is well positioned to continue generating significant future growth.

Operating in Attractive and Growing Markets

Placer Sierra Bancshares operates in some of the most attractive, high growth markets in California. Following its acquisition of First Financial Bancorp, the Company’s community bank network in northern California now stretches from Sierra County (to the north) to San Joaquin County (to the south), and in southern California, from Los Angeles County (to the north) to Orange County (to the south).

The California market provides a favorable environment for PLSB’s community banking franchise. Specifically, the Sacramento region enjoys low unemployment rates; job, population and deposit growth that are considerably higher than national averages; and a supply of affordable housing that is attractive to individuals that commute to the state’s coastal areas. In Southern California, Orange County’s unemployment rate ranks near the lowest in the nation, while population growth in both Orange and Los Angeles counties ranks near the highest among 300 U.S. counties. Through its acquisition of First Financial Bancorp, PLSB has also gained exposure to the high growth communities along the Highway 99 corridor that extends between Sacramento and Fresno. Substantial construction and infrastructure growth is expected along this corridor through 2008 to accommodate continued anticipated population and business growth in the area.

Additionally, PLSB’s customer base – which spans a number of industries, including services, retail, construction, manufacturing and transportation – is highly diversified, minimizing the Company’s exposure to downturns in any one sector.

Growing through Strategic Acquisitions

In May 2004, PLSB acquired the 9-branch, premier-performing Bank of Orange County, which extended the Company’s footprint into the high growth southern California banking market. PLSB’s Chairman and Chief Executive Officer, and the Company’s Chief Financial Officer, served in similar capacities at the Bank of Orange County. Their in-depth knowledge of Bank of Orange County and the operating environment in Los Angeles and Orange counties should facilitate a smooth integration and enhance the growth opportunities of the combined entity.

In December 2004, PLSB acquired First Financial Bancorp for $50 million, which extends the Company’s presence into rapidly growing markets south of Sacramento. The transaction is anticipated to be highly accretive, adding at least $0.30 per share to the Company’s 2005 earnings, primarily through significant opportunities to improve First Financial’s cost structure. First Financial brings a portfolio of low cost deposits to PLSB, resulting in an aggregate cost of deposits of less than 70 basis points. The use of excess capital to fund this acquisition, as well as the incremental net income to be derived from First Financial’s operations, are expected to result in a significant increase in the Company’s return on average equity in 2005.

Enhancing Profitability through a Strong Sales and Service Culture

As PLSB continues to build on the solid reputation it already enjoys as a premier community bank, the Company is leveraging its integrated, customer-centered sales and service culture to further

Investment Profile 3 February 2005

NASDAQ: PLSB

distinguish the bank from its peers. The Company’s culture focuses on a stringent set of service standards, and managers, in part, are compensated on delivery against pre-determined service levels. Independent, third-party services regularly “shop” PLSB’s branches to assess the level of customer service being provided.

PLSB has a well-established training program for its employees that includes job shadowing and cross training. Goals are clearly communicated and performance is measured against them. Daily and weekly sales meetings help focus the team on selling products that meet the bank’s balance sheet and profit goals. The Company invests in software and other technologies to identify sales opportunities and enhance the profitability of its current relationships. PLSB outsources certain back office functions that are transparent to the customer, to keep its employees focused on providing best-in-class service. The Company also plans to continue utilizing technology to reduce transaction processing times and expenses, and to continually improve its sales and service functionality.

Overall, PLSB maintains a “big bank” culture with a community bank feel, allowing it to generate strong growth in both loans and deposits, while creating loyalty among its customer base. The Company has built a well-defined niche in its markets, centered around its reputation for high service standards, quick turnaround times and large lending limits.

Maintaining High Asset Quality

Placer Sierra Bancshare’s conservative credit culture has resulted in a high-quality asset portfolio that has outperformed its peers.

PLSB utilizes a rigorous, yet efficient, credit approval process and follows stringent credit risk management practices to keep loan and lease losses to a minimum. In general, PLSB separates the loan origination, marketing and sales process from the underwriting and credit application process.

As a result of its conservative underwriting standards, the Company has built a very high quality asset base, with non-performing assets falling to 0.20% of total assets at December 31, 2004, from 0.52% of total assets at December 31, 2001. Even during a period of rapid growth, PLSB has maintained excellent asset quality and sound reserve coverage, with net charge-offs remaining below 20 basis points. At December 31, 2004, the Company’s commercial real estate loans, which comprised 50% of the loan portfolio, had an average balance of $561,000, an average loan-to-value of 44.2%, and an average seasoning of 3.5 years.

GROWTH
STRATEGY

PLSB’s multi-pronged growth initiatives have been highly effective in creating the largest community-banking franchise in Central California. As the bank continues to grow, management plans to leverage its infrastructure and assets to maintain operational and financial efficiency. The Company’s business strategy reflects the following:

Organic growth – PLSB intends to grow its banking franchise by expanding its portfolio of variable interest rate loan products; aggressively recruiting experienced commercial bankers who have a loyal following of loan and deposit customers; utilizing customer relationship management software to increase profitability; implementing its high performance sales culture into the recent acquisitions to increase their productivity; expanding the retail banking capabilities of Bank of Orange County.

Extended geographic reach – PLSB plans to enhance its presence within its current operating markets, while also focusing on expanding into additional high growth areas along the Highway 99 corridor. The Company will achieve this through de novo branch openings and/or acquisitions. PLSB’s management team has significant M&A experience and understands how to identify attractive franchises, assure appropriate valuations and successfully integrate new branches and employees. When evaluating acquisition targets, management focuses on cash-on-cash returns above certain hurdle rates to create additional shareholder value. The team also looks for at least a 20% return on tangible equity and accretion within the first year of integration. When following a de novo branch opening strategy, PLSB expects each branch to reach profitability within a 12-18 month time-frame.

Investment Profile 4 February 2005

NASDAQ: PLSB

Maintaining premier community bank reputation – PLSB plans to continue leveraging its integrated, customer-centered sales and service culture to provide the highest quality service to its customers, while focusing on a needs-based selling approach. The Company also plans to establish itself as an employer of choice in its market areas to attract, develop and retain a skilled employee base. All of the bank’s branches are assessed on an on-going basis for the purpose of determining profitability, optimal location, configuration and staffing. As a result, PLSB sold 5 branches based in more remote locations that did not fit with its strategy of operating in greater metropolitan-area, high-growth communities.

Effective balance sheet management – PLSB will continue to effectively utilize customer deposits, borrowings and other interest bearing liabilities, while actively managing its investment and loan portfolio mix to maximize net interest margins and minimize interest rate and market risk. At the same time, PLSB’s management plans to maintain the high quality of its asset base to minimize non-performing assets and loan and lease losses. Through a program of prudent balance sheet management, PLSB has maintained stable net interest margins despite a declining interest rate environment and high levels of loan pre-payments. From 2000 to 2003, PLSB’s net interest margin remained within a range of 50 basis points while the average Fed Funds rate dropped more than 500 basis points.

RECENT OPERATING
RESULTS

2004 Operating Performance

In 2004, PLSB’s net income was $13.0 million, or $0.90 per diluted share, compared with $15.3 million, or $1.13 per diluted share, in 2003. In 2004, operating earnings were $16.8 million, or $1.16 per diluted share, an increase of 16.1% over operating earnings of $14.4 million, or $1.07 per diluted share, in 2003. Operating earnings exclude $1.5 million (after tax) of costs related to the Company’s acquisition of the Bank of Orange County, a $2.2 million (after tax) loss related to the restructuring of Bank of Orange County’s securities portfolio, and a $895,000 (after tax) gain on sale of branches in 2003.

In the second half of 2004, growth in the Company’s operating earnings was compromised by two issues:

• Due to a decision to abstain from investing in the Treasury market during a period of volatility, as well as the need to finance the all-cash acquisition of First Financial Bancorp, the Company maintained significant excess liquidity. It is estimated that maintaining this excess liquidity negatively impacted the Company’s second half results by $0.06 per share. By the end of 2004, the Company had fully invested this liquidity in its securities portfolio.

• The Company was still carrying a significant amount of excess expense at Bank of Orange County following this acquisition. The cost savings associated with this transaction are not expected to be fully realized until the first quarter of 2005.

PLSB’s exceptional balance sheet growth continued in 2004, as organic growth in loans and deposits was 14.0% and 13.5%, respectively, for the full year. In the fourth quarter of 2004, organic growth in loans and deposits was an annualized rate of 11.7% and 13.1%, respectively.

FOR ADDITIONAL
INFORMATION

At Placer Sierra Bancshares:

Ronald W. Bachli, Chairman & CEO

David E. Hooston, Chief Financial Officer

(916) 554-4750

At Financial Relations Board:

Tony Rossi, Investor Relations

(310) 854-8317

trossi@financialrelationsboard.com

This document contains forward-looking statements with respect to the financial condition, results of operation and businesses of Placer Sierra Bancshares within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements that relate to future financial performance and condition and pending mergers. These forward-looking statements involve certain risks and uncertainties, many of which are beyond the Company’s control. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others: (1) the receipt of regulatory and shareholder approval for the First Financial Bancorp acquisition; (2) the success of Placer Sierra Bancshares at integrating First Financial Bancorp into its organization and achieving the targeted cost savings; (3) deterioration in general economic conditions, internationally, nationally or in the State of California; (4) increased competitive pressure among financial services companies; (5) changes in the interest rate environment reducing interest margins or increasing interest rate risk; (6) the impact of terrorist acts or military actions; and (7) other risks detailed in reports filed by Placer Sierra Bancshares with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this document, and Placer Sierra Bancshares does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

Investment Profile 5 February 2005

EX-99.2

EXHIBIT 99.2

PLACER SIERRA BANCSHARES

PRESS RELEASE

FOR IMMEDIATE RELEASE

For more information contact:

AT THE COMPANY:	AT FINANCIAL RELATIONS BOARD:
Ronald W. Bachli, Chairman & CEO David E. Hooston, Chief Financial Officer (916) 554-4750	Tony Rossi (310) 854-8317

PLACER SIERRA BANCSHARES

INCREASES QUARTERLY DIVIDEND BY 140%

Sacramento, CA, January 28, 2005 — Placer Sierra Bancshares (Nasdaq: PLSB) today announced that its board of directors has authorized a $0.12 per outstanding common share cash dividend for the first quarter of 2005, which represents an approximate 140% increase over the Company’s previous quarterly dividend of $0.05 per outstanding common share. The cash dividend will be payable on March 3, 2005 to common shareholders of record as of February 15, 2005.

“We are very pleased to significantly increase our dividend payout to shareholders,” said Ron Bachli, Chairman and Chief Executive Officer of Placer Sierra Bancshares. “We anticipate continuing to provide an attractive cash return through future quarterly dividends while retaining sufficient capital to support the continued implementation of our growth strategies.”

“Our success in growing Placer Sierra Bank in 2004 allowed us to increase our dividend payments. In 2004, we generated organic growth rates of 14.0% for loans and 13.5% for deposits. In particular, on a stand alone basis, Placer Sierra Bank’s Northern California operation experienced organic loan growth of 17.2% in 2004. We expect loan production to remain very strong, although overall loan growth will be impacted in 2005 by our plan to sell $75 to $125 million of the loans originated during the year to support our geographic expansion in our Northern and Southern California markets. We expect our non-interest income to increase significantly in 2005 due to these loan sales,” said Mr. Bachli.

-more-

Placer Sierra Bancshares

January 28, 2005

Page 2 of 2

About Placer Sierra Bancshares

Placer Sierra Bancshares is a Northern California-based bank holding company for Placer Sierra Bank with 32 branches in an eight-county area of Northern California, including Placer, Sacramento, El Dorado, Sierra, Nevada, Amador, San Joaquin and Calaveras counties and nine branches in Southern California’s Orange and Los Angeles counties. Placer Sierra Bank and its divisions, Sacramento Commercial Bank, Bank of Orange County and Bank of Lodi, offers its customers the resources of a large financial institution and the resourcefulness and superior customer service of a community bank.

Placer Sierra Bank offers a broad array of deposit products and services for both commercial and retail customers. These products include electronic banking, cash management services, electronic bill payment and investment services with an emphasis on relationship banking. Placer Sierra Bank also provides competitive loan products such as commercial loans and lines of credit, commercial real estate loans, Small Business Administration loans, residential mortgage loans, home equity lines of credit and construction loans. For more information, please visit www.placersierrabank.com.

Placer Sierra Bancshares is publicly traded on NASDAQ under the stock symbol PLSB. For more information about Placer Sierra Bancshares, please visit www.placersierrabancshares.com.

This press release contains statements of a forward-looking nature which represent the beliefs of Placer Sierra Bancshares’ management and assumptions concerning future events. Forward-looking statements involve risks, uncertainties and assumptions and are based on information currently available to Placer Sierra Bancshares, which would cause actual results to differ materially from those projected. For a discussion about factors that could cause actual results to differ, please see the publicly available Securities and Exchange Commission filings of Placer Sierra Bancshares. Forward-looking statements are not guarantees of future performance and are to be interpreted only as of the date on which they are made. Placer Sierra Bancshares undertakes no obligation to update any forward-looking statements to reflect events or circumstances that may arise after the date of this release.

# # #