Charter Pacific Bank On Target for Another Outstanding Year; Core Banking Operations Improving Dramatically.

AGOURA HILLS, Calif.--(BUSINESS WIRE)--Nov. 1, 1999--

Strategic Internet Alliance Announced With

MerchantOnline.com

Charter Pacific Bank (OTCBB:CHTP) announced today income for the three months ended September 30, 1999 of $599,000, or $.12 basic earnings per share, compared to $595,000, or $.12 per share, adjusted for a non-recurring tax credit, for the three months ended September 30, 1998. Actual reported earnings in the year-ago period (prior to adjusting for the tax credit) were $629,000, or $.13 per share.

For the nine months ended September 30, 1999, net after-tax income of approximately $1,847,000, or $.38 per share, compares to $1,891,000, or $.39 per share, adjusted for a non-recurring tax credit, for the nine months ended September 30, 1998. Actual reported earnings in the year-ago period (prior to adjusting for the tax credit) were $2,018,000, or $.42 per share.

Michael Ward, Chairman, President and CEO of Charter Pacific Bank reported that the Bank is expecting a solid fourth quarter result and another outstanding year. Ward further stated that "We are especially gratified with our results given that the Bank is currently transitioning its highly profitable BankCard Division into more traditional product lines."

Ward added, "The Bank is particularly pleased by the very robust earnings advance of over 40% in its core banking operations over the nine month period a year earlier." He said that he expects "further growth in core bank profitability throughout the remainder of the year, and even further significant improvement next year."

"Finally," stated Ward, "we are extremely excited about the coast-to-coast alliance announced on October 1, 1999 between Charter Pacific Bank and Florida-based MerchantOnline.com. This alliance is unveiling a worldwide total e-commerce solution for conducting business on the Internet, which will provide both merchants and consumers the ultimate system bringing ease and convenience to Web shopping."

Richard Cornejo, Executive Vice President and BankCard Manager, added, "Our new strategic alliance with MerchantOnline.com allows us to comprehensively expand the service we offer our e-commerce clients, and further assures our customers of their security doing business on the Net. Now both companies will take a quantum leap forward in providing advanced systems and superior services."

Having already been in the forefront of the e-commerce industry since 1994, the new joint venture, which utilizes the latest state-of-the-art equipment, opens up new opportunities for Charter with these new, easy-to-use, low-cost, e-commerce solutions.

Ward also announced that CharterOnLine is about to commence operations. The Bank's customers will be able to conduct their banking from anywhere on the planet where there is Internet access by going to www.cpbank.com.

In addition to its BankCard and Internet operations, Charter Pacific Bank is a full service commercial bank operating offices in both Agoura Hills and Beverly Hills, Calif. -0-

                         Charter Pacific Bank
                           Income Statement
              Three Months and Nine Months, 1999 vs. 1998

                                       1999           1998
Three Months to September 30

Net Income                        $  599,000     $  629,000(a)
Per share earnings                      0.12           0.13(a)


Nine Months to September 30

Net Income                        $1,847,000     $2,018,000(b)
Per share earnings                      0.38           0.42(b)

(a) Three months ended September 30, 1998 would have shown net
    income of $595,000 and earnings per share of $0.12 were it
    not for the inclusion of a $34,000 tax credit.

(b) Nine months ended September 30, 1998 would have shown net income
    of $1,891,000 and earnings per share of $0.39 were it not for
    the inclusion of a $127,000 tax credit.