Silver State Bancorp Announces Restatement of Earlier Reported 2008 Second Quarter Financial Results

The Company reported a restated net loss for the quarter ended June 30, 2008 of $73.2 million, or ($4.84) per diluted share, compared to the previously disclosed net loss of $62.7 million, or ($4.15) per diluted share. The reason for the increase in the net loss is an increase in the Company's provision for loan loss reserve for the quarter to $69.1 million from the previously reported $58.6 million. The increased provision is due primarily to the Company receiving an updated appraisal on the collateral underlying one of the Company's commercial land loans subsequent to issuing the initial earnings press release.

The restatement does not affect any financial statements filed with the SEC for any period. All of our reports previously filed with the SEC can continue to be relied upon and fairly present in all material respects our financial condition and our results of operations and changes in financial condition as of the dates specified in the reports, and our second quarter 2008 Form 10-Q filed today contains the financial statements and related disclosures for the 2008 second quarter, as restated.

The Company's restated financial statements and selected financial information are attached to this press release.

About Silver State Bancorp

Silver State Bancorp, through its wholly owned subsidiary Silver State Bank, currently operates thirteen full service branches in southern Nevada and four full service branches in the Phoenix/Scottsdale market area. Silver State Bank also operates loan production offices located in Nevada, California, Washington, Oregon, Utah, Colorado and Florida. Please visit www.silverstatebancorp.com for more information. The deposit accounts of Silver State Bank are insured up to applicable limits by the Federal Deposit Insurance Corporation.

Forward-Looking Statements

This press release contains forward-looking statements. Terms such as "will," "should," "plan," "intend," "expect," "continue," "believe," "anticipate," "seek," and similar expressions are forward-looking in nature and reflect management's view only as the date hereof. Actual results and events could differ materially from those expressed or anticipated and are subject to a number of risks and uncertainties including but not limited to fluctuations in interest rates, asset quality, government regulations, economic conditions and competition in the geographic and business areas in which Silver State Bancorp conducts its operations. We undertake no obligation to review or update any forward-looking statements, whether as a result of new information, future events, or otherwise.

Silver State Bancorp and Subsidiary Consolidated Balance Sheets June 30, 2008 and December 31, 2007 (Dollars in thousands) (UNAUDITED) June 30, December 31, 2008 2007 ---------------------------------------------------------------------- Assets Cash and cash equivalents $ 15,918 $ 13,838 Federal funds sold 224,183 - ------------------------ Total cash and cash equivalents 240,101 13,838 Securities available-for-sale 51,821 51,966 Federal Home Loan Bank stock, at cost 5,957 5,469 Loans held for sale 86,543 68,868 Loans, net of allowance for losses of $78,869 and $19,304, respectively 1,473,698 1,539,667 Premises and equipment, net 40,666 43,081 Land held for sale 5,508 - Accrued interest receivable 7,035 9,874 Deferred taxes, net 16,586 5,902 Other real estate owned 16,303 110 Goodwill - 18,835 Intangible asset, net of amortization of $378 and $247, respectively 786 917 Prepaids and other assets 16,413 5,656 ------------------------ Total assets $1,961,417 $1,764,183 ======================== Liabilities and Stockholders' Equity Deposits: Non-interest bearing demand $ 122,052 $ 177,084 Interest bearing: Checking 414,308 535,902 Savings 25,774 22,943 Time, $100 and over 415,440 256,392 Other time 754,906 434,183 ------------------------ Total deposits 1,732,480 1,426,504 Accrued interest payable and other liabilities 11,969 9,890 Federal funds purchased and securities sold under repurchase agreements 1,595 9,983 Federal Home Loan Bank advances and other borrowings: Short-term borrowings 30,000 34,000 Long-term borrowings 47,000 56,600 Junior subordinated debt 69,589 69,589 ------------------------ Total liabilities 1,892,633 1,606,566 ------------------------ Stockholders' Equity Preferred stock, par value of .001 cents; 10,000,000 shares authorized; none issued or outstanding - - Common stock, par value of .001 cents; 60,000,000 shares authorized; shares issued 2008: 15,954,098; 2007: 15,944,154; shares outstanding 2008: 15,134,765; 2007: 15,271,421 16 16 Additional paid-in capital 80,224 79,721 Retained earnings (accumulated deficit) (5,695) 81,974 Accumulated other comprehensive income (loss) (95) 64 ------------------------ 74,450 161,775 Less cost of treasury stock, 2008: 819,333 shares, 2007: 672,733 shares (5,666) (4,158) ------------------------ Total stockholders' equity 68,784 157,617 ------------------------ Total liabilities and stockholders' equity $1,961,417 $1,764,183 ========================

Silver State Bancorp and Subsidiary Consolidated Statements of Operations For the three months and six months ended June 30, 2008 and 2007 (Dollars in thousands, except per share information) (UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, 2008 2007 2008 2007 ---------------------------------------------------------------------- Interest and dividend income on: Loans, including fees $ 27,219 $ 33,411 $ 62,132 $ 61,844 Securities, taxable 1,022 634 1,667 1,327 Dividends on FHLB stock 83 40 154 99 Federal funds sold and other 729 258 853 470 --------------------------- ------------------------- Total interest income 29,053 34,343 64,806 63,740 --------------------------- ------------------------- Interest expense on: Deposits 15,626 12,713 29,986 23,480 Federal funds purchased and securities sold under repurchase agreements 31 88 123 242 Short-term borrowings 357 250 996 415 Long-term borrowings 620 643 1,283 1,214 Junior subordinated debt 772 689 1,840 1,355 --------------------------- ------------------------- Total interest expense 17,406 14,383 34,228 26,706 --------------------------- ------------------------- Net interest income 11,647 19,960 30,578 37,034 Provision for loan losses 69,100 1,860 100,100 3,190 --------------------------- ------------------------- Net interest income (loss) after provision for loan losses (57,453) 18,100 (69,522) 33,844 --------------------------- ------------------------- Other income: Gain on sale of loans 577 1,202 1,822 3,033 Net realized gain on sale of available- for-sale securities - - 52 31 Service charges on deposit accounts 258 221 523 420 Loan servicing fees, net of amortization 74 61 141 250 Other income 538 406 875 830 Gain (loss) on disposal of other assets (2) (16) 1 (16) --------------------------- ------------------------- Total non- interest income 1,445 1,874 3,414 4,548 --------------------------- ------------------------- Non-interest expense: Salaries, wages and employee benefits 5,160 6,414 12,527 12,244 Occupancy 1,208 852 2,365 1,568 Depreciation and amortization 800 613 1,572 1,205 Insurance 613 552 927 621 Professional fees 1,544 463 2,474 1,314 Advertising, public relations and business development 286 226 599 451 Customer service expense 57 100 149 187 Goodwill impairment 18,835 - 18,835 - Loss on other real estate owned 152 - 168 182 Other 1,358 943 2,717 1,822 --------------------------- ------------------------- Total non- interest expense 30,013 10,163 42,333 19,594 --------------------------- ------------------------- Income (loss) before income taxes (86,021) 9,811 (108,441) 18,798 Income taxes (benefit) (12,827) 3,641 (20,826) 7,040 --------------------------- ------------------------- Net income (loss) (73,194) 6,170 (87,615) 11,758 =========================== ========================= Basic income (loss) per common share $ (4.84) $ 0.45 $ (5.78) $ 0.86 =========================== ========================= Diluted income (loss) per common share $ (4.84) $ 0.44 $ (5.78) $ 0.83 =========================== =========================

Silver State Bancorp and Subsidiary Summary Consolidated Financial and Other Data (Dollars in thousands, except per share data and ratios) (UNAUDITED) At or for the Three For the Six Months Months Ended Ended June 30, June 30, ------------------------ ----------------------- 2008 2007 2008 2007 ----------- ----------- ----------- ---------- Selected Financial Data: Interest income $ 29,053 $ 34,343 $ 64,806 $ 63,740 Interest expense 17,406 14,383 34,228 26,706 ----------- ----------- ----------- ---------- Net interest income 11,647 19,960 30,578 37,034 Provision for loans losses 69,100 1,860 100,100 3,190 ----------- ----------- ----------- ---------- Net interest income (loss) after provision for loan losses (57,453) 18,100 (69,522) 33,844 Non-interest income 1,445 1,874 3,414 4,548 Non-interest expense 30,013 10,163 42,333 19,594 ----------- ----------- ----------- ---------- Income (loss) before income taxes (86,021) 9,811 (108,441) 18,798 Provision for income taxes (benefit) (12,827) 3,641 (20,826) 7,040 ----------- ----------- ----------- ---------- Net Income (loss) $ (73,194) $ 6,170 $ (87,615) $ 11,758 =========== =========== =========== ========== Share data: Earnings (loss) per share--basic $ (4.84) $ 0.45 $ (5.78) $ 0.86 Earnings (loss) per share--diluted (4.84) 0.44 (5.78) 0.83 Book value per share 4.54 8.64 Tangible book value per share 4.49 7.20 Shares outstanding at period end 15,134,765 13,746,162 Weighted average shares outstanding--basic 15,121,715 13,723,765 15,166,228 13,710,441 Weighted average shares outstanding-- diluted 15,121,715 14,141,082 15,166,228 14,155,906 Selected Balance Sheet Data: Cash and cash equivalents $ 240,101 $ 28,035 Investments and other securities 51,821 52,466 Loans held for sale 86,543 52,121 Gross loans, including net deferred loan fees 1,552,567 1,311,525 Allowance for loan losses 78,869 14,334 Assets 1,961,417 1,510,619 Deposits 1,732,480 1,245,305 Junior subordinated debt 69,589 38,661 Stockholders' equity 68,784 118,767 Selected Other Balance Sheet Data: Average assets $ 2,044,681 $ 1,443,194 $ 1,939,020 $ 1,362,938 Average earning assets 1,972,159 1,367,547 1,864,017 1,288,871 Average stockholders' equity 139,817 116,569 150,109 113,255 Selected Capital Ratios: Leverage Ratio 4.5% 9.6% Tier 1 Risk-Based Capital ratio 5.1% 9.0% Total Risk-Based Capital ratio 9.0% 9.9%

Silver State Bancorp and Subsidiary Summary Consolidated Financial and Other Data (continued) (Dollars in thousands, except per share data and ratios) (UNAUDITED) At or for the Three Months For the Six Ended Months Ended June 30, June 30, ------------------ ---------------- 2008 2007 2008 2007 -------- --------- -------- ------- Selected Financial & Performance Ratios: Return on average assets (1) -14.40% 1.71% -9.09% 1.74% Return on average stockholders' equity (1) -210.55% 21.23% -117.38% 20.94% Net interest rate spread (1)(2) 1.94% 5.04% 2.78% 4.96% Net interest margin (1)(3) 2.38% 5.85% 3.30% 5.79% Efficiency ratio (4) 229.25% 46.55% 124.54% 47.12% Loan to deposit ratio 89.62% 105.32% Average earning assets to average interest-bearing liabilities 112.37% 119.34% 114.09% 119.99% Average stockholders' equity to average assets 6.84% 8.08% 7.74% 8.31% Selected Asset Quality Ratios: Nonperforming loans to gross loans (5) 16.23% 0.01% Nonperforming assets to total assets (6) 13.68% 0.02% Loans past due 90 days or more and still accruing to total loans 0.66% - Allowance for loan losses to gross loans 5.08% 1.09% Allowance for loan losses to nonperforming loans 31.29% 12045.38% Net charge-offs to average loans outstanding 1.82% 0.00% 2.40% 0.00% Selected Other Data: Number of full service branch offices 17 12 ================================= (1) Annualized for the three month and six month periods ended June 30, 2008 and 2007. (2) Net interest spread represents average yield earned on interest- earning assets less the average rate paid on interest-bearing liabilities. (3) Net interest margin represents net interest income as a percentage of average interest-earning assets. (4) Efficiency ratio represents non-interest expenses as a percentage of the total of net interest income plus non-interest income. (5) Nonperforming loans are defined as loans that are past due 90 days or more plus loans placed in nonaccrual status. (6) Nonperforming assets include nonperforming loans plus other real estate owned.

Three Months Ended June 30, 2008 ----------------------------- Average Yield/ Average Cost Balance Interest (5) ----------------------------- (Dollars in thousands) Interest-earning assets Investment Securities-taxable $ 127,796 $ 1,022 3.22% Federal funds sold and other 141,050 729 2.08% Loans (1)(2) 1,697,417 27,219 6.45% FHLB stock 5,896 83 5.66% -------------------- Total earning assets 1,972,159 29,053 5.93% Non-interest earning assets Cash and due from banks 20,011 Allowance for loan losses (42,009) Other assets 94,520 ----------- Total assets $2,044,681 =========== Interest-bearing liabilities Interest checking $ 17,448 $ 85 1.96% Savings and money market 499,456 3,852 3.10% Time deposits 1,071,521 11,689 4.39% -------------------- Total interest-bearing deposits 1,588,425 15,626 3.96% Short-term borrowings 45,410 388 3.44% Long-term debt 51,642 620 4.83% Junior subordinated debt 69,589 772 4.46% -------------------- Total interest-bearing liabilities 1,755,066 17,406 3.99% Non-interest bearing liabilities Non-interest bearing demand deposits 137,570 Other liabilities 12,228 Stockholders' equity 139,817 ----------- Total liabilities and stockholders' equity $2,044,681 =========== Net interest rate spread (3) 1.94% Net interest income/net interest margin (4) $11,647 2.38% ======== Total interest-earning assets to interest-bearing liabilities 112.37% Three Months Ended June 30, 2007 ------------------------------ Average Yield/ Average Cost Balance Interest (5) ------------------------------ (Dollars in thousands) Interest-earning assets Investment Securities-taxable $ 53,214 $ 634 4.78% Federal funds sold and other 22,968 258 4.51% Loans (1)(2) 1,287,071 33,411 10.41% FHLB stock 4,294 40 3.74% -------------------- Total earning assets 1,367,547 34,343 10.07% Non-interest earning assets Cash and due from banks 17,377 Allowance for loan losses (13,230) Other assets 71,500 ----------- Total assets $1,443,194 =========== Interest-bearing liabilities Interest checking $ 16,481 $ 44 1.07% Savings and money market 522,192 6,161 4.73% Time deposits 487,380 6,508 5.36% -------------------- Total interest-bearing deposits 1,026,053 12,713 4.97% Short-term borrowings 27,024 338 5.02% Long-term debt 54,207 643 4.76% Junior subordinated debt 38,661 689 7.15% -------------------- Total interest-bearing liabilities 1,145,945 14,383 5.03% Non-interest bearing liabilities Non-interest bearing demand deposits 169,333 Other liabilities 11,347 Stockholders' equity 116,569 ----------- Total liabilities and stockholders' equity $1,443,194 =========== Net interest rate spread (3) 5.04% Net interest income/net interest margin (4) $19,960 5.85% ======== Total interest-earning assets to interest-bearing liabilities 119.34% (1) Net loan fees of $2.8 million and $3.5 million are included in the yield computation for the three months ended June 30, 2008 and 2007, respectively. (2) Nonaccrual loans have been included in average loan balances. (3) Net interest spread represents average yield earned on interest- earning assets less the average rate paid on interest-bearing liabilities. (4) Net interest margin is computed by dividing net interest income by total average earning assets. (5) Annualized.

Six Months Ended June 30, 2008 ----------------------------- Average Yield/ Average Cost Balance Interest (5) ----------------------------- (Dollars in thousands) Interest-earning assets Investment Securities-taxable $ 90,145 $ 1,667 3.72% Federal funds sold and other 79,103 853 2.17% Loans (1)(2) 1,688,929 62,132 7.40% FHLB stock 5,840 154 5.30% -------------------- Total earning assets 1,864,017 64,806 6.99% Non-interest earning assets Cash and due from banks 17,547 Allowance for loan losses (31,091) Other assets 88,547 ----------- Total assets $1,939,020 =========== Interest-bearing liabilities Interest checking $ 13,970 $ 112 1.61% Savings and money market 521,681 8,671 3.34% Time deposits 917,245 21,203 4.65% -------------------- Total interest-bearing deposits 1,452,896 29,986 4.15% Short-term borrowings 57,743 1,119 3.90% Long-term debt 53,544 1,283 4.82% Junior subordinated debt 69,589 1,840 5.32% -------------------- Total interest-bearing liabilities 1,633,772 34,228 4.21% Non-interest bearing liabilities Non-interest bearing demand deposits 143,521 Other liabilities 11,618 Stockholders' equity 150,109 ----------- Total liabilities and stockholders' equity $1,939,020 =========== Net interest rate spread (3) 2.78% Net interest income/net interest margin (4) $30,578 3.30% ======== Total interest-earning assets to interest-bearing liabilities 114.09% Six Months Ended June 30, 2007 ------------------------------ Average Yield/ Average Cost Balance Interest (5) ------------------------------ (Dollars in thousands) Interest-earning assets Investment Securities-taxable $ 57,099 $ 1,327 4.69% Federal funds sold and other 18,637 470 5.09% Loans (1)(2) 1,208,934 61,844 10.32% FHLB stock 4,201 99 4.75% -------------------- Total earning assets 1,288,871 63,740 9.97% Non-interest earning assets Cash and due from banks 17,968 Allowance for loan losses (12,389) Other assets 68,488 ----------- Total assets $1,362,938 =========== Interest-bearing liabilities Interest checking $ 18,676 $ 101 1.09% Savings and money market 494,714 11,537 4.70% Time deposits 445,118 11,842 5.36% -------------------- Total interest-bearing deposits 958,508 23,480 4.94% Short-term borrowings 23,968 657 5.53% Long-term debt 52,971 1,214 4.62% Junior subordinated debt 38,661 1,355 7.07% -------------------- Total interest-bearing liabilities 1,074,108 26,706 5.01% Non-interest bearing liabilities Non-interest bearing demand deposits 166,499 Other liabilities 9,076 Stockholders' equity 113,255 ----------- Total liabilities and stockholders' equity $1,362,938 =========== Net interest rate spread (3) 4.96% Net interest income/net interest margin (4) $37,034 5.79% ======== Total interest-earning assets to interest-bearing liabilities 119.99% (1) Net loan fees of $6.5 million and $5.8 million are included in the yield computation for the six months ended June 30, 2008 and 2007, respectively. (2) Nonaccrual loans have been included in average loan balances. (3) Net interest spread represents average yield earned on interest- earning assets less the average rate paid on interest-bearing liabilities. (4) Net interest margin is computed by dividing net interest income by total average earning assets. (5) Annualized.

SOURCE: Silver State Bancorp

Silver State Bancorp Michael J. Threet, 702-433-8300 (Investors) or Stern And Company Steve Stern, 702-240-9533 (Media) steve@sdsternpr.com