Business Bank of California Reports Third Quarter Earnings.

SAN BERNARDINO, Calif.--(BUSINESS WIRE)--Oct. 21, 1998--Business Bank of California (BBNK) reported that earnings reached record levels for the fourth consecutive quarter.

Net earnings for the third quarter of 1998 were a record $468,000. This represents an increase of $386,000 or 471% over net income of $82,000 reported for the third quarter of 1997. Basic earnings per share of $0.30 reflect an increase of $0.24 per share when compared to earnings of $0.06 per share reported for the same quarter of 1997.

Net income for the first nine months of the year increased to $1,387,000. This represents a 255% increase over net income of $391,000 for the first nine months of 1997. Basic earnings per share increased to $0.89 per share for the nine months ending Sept. 30, 1998, and increase of $0.62 per share over the first nine months of 1997.

The bank's assets totaled $167,367,000 as of Sept. 30, 1998. This represents an increase of 40% over assets of $119,471,000 reported one year earlier. Total deposits increased by 43%, growing from $104,727,000 in September of 1997 to a total of $149,355,000 at the end of the current quarter. Total loans stood at $98,871,000 at Sept. 30, 1998, a 27% increase over the same period of 1997.

Alan J. Lane, president and chief executive officer, stated that there are a number of factors contributing to the positive trends the bank is experiencing. "The improvement in the overall economic climate in the Inland Empire positively impacted business across industry lines. Business Bank of California's prudent credit policies, our strong presence in the small business and real estate development markets, and the viability of our branch network all contributed to the bank's strong performance."

Business Bank of California has served the Inland Empire since 1984 and operates branches in the cities of San Bernardino, Corona, Redlands, Hesperia and Phelan. The bank is strongly focused on providing high quality, personalized services to small businesses, professionals and consumers. Visit Business Bank of California on the Internet at www.businessbank.com. -0-

                     Business Bank of California
                         Financial Highlights
                             (Unaudited)

                          Sept. 30, 1998    Sept. 30, 1997

3rd quarter net income               $    468,000    $     82,000
Net income year to date              $  1,387,000    $    391,000
Total assets                         $167,367,000    $119,471,000
Total deposits                       $149,355,000    $104,727,000
Total loans                          $ 98,871,000    $ 77,573,000
Total capital                        $ 16,549,000    $ 14,171,000
Loan loss reserve                    $  1,511,000    $  1,308,000

Non-performing loans                 $    739,000    $    405,000
Other real estate owned              $  1,354,000    $  1,995,000
Total non-performing assets          $  2,093,000    $  2,400,000
Non-performing assets/total assets            1.3%            2.0%

Tier 1 leverage ratio (est.)                 8.30%          11.69%
Regulatory minimum                           4.00%           4.00%

YTD earnings per share:
Basic                                $       0.89    $       0.27
Diluted                              $       0.86    $       0.27

YTD shares outstanding:
Basic                                   1,553,154       1,459,657
Diluted                                 1,618,848       1,465,661