FP Bancorp Inc. reports 571 percent quarterly earnings increase.

ESCONDIDO, Calif.--(BUSINESS WIRE)--July 10, 1995--FP Bancorp Inc., parent company of First Pacific National Bank, reported record earnings of $745,000 for the second quarter of 1995, a 571 percent increase over the $111,000 earned during the like quarter of 1994.

For the first six months of 1995, FP Bancorp earned $1,030,000, up 737 percent from the $123,000 reported for the first half of the prior year. Both second quarter and mid-year earnings were records for the company.

Earnings per share for the second quarter of 1995 were 28 cents, as compared with 9 cents in the like quarter of 1994. For the first six months, earnings per share were 46 cents in 1995 and 10 cents in 1994.

The 1995 earnings per share totals reflect the issuance of 608,000 new shares of common stock through a $3 million private placement offering completed in November of 1994, and 826,000 shares issued in conjunction with the April 1 acquisition of Overland Bank.

FP Bancorp also reported sizable gains in assets, deposits and loans. At June 30, assets were $218 million, deposits were $196.2 million and loans were $143.1 million. These totals represent gains of 34.32 percent, 30.61 percent and 28.91 percent, respectively, when compared with the same date in 1994.

Problem asset totals also continued to show improvement. Non-performing loans dropped from 2.39 percent of total loans at June 30, 1994, to 2 percent on the same date this year. Non-performing assets fell from 4.87 percent of total assets at mid 1994, to 4.06 percent on June 30, 1995.

"These record earnings are a direct result of actions we have taken in the last two years to strengthen the company by controlling our costs and credit quality," said the company's president and chief executive officer, Harvey L. Williamson.

"We significantly reduced our expenses by closing several unprofitable branches and departments, and by consolidating a number of our operations. The successful merger of Overland Bank into our subsidiary, First Pacific National Bank, during the quarter further improved our efficiencies and expanded our presence in southern Riverside County," Williamson continued.

"We think we are very well positioned to take on an even larger role in the markets we serve," he concluded.

FP Bancorp's only subsidiary, First Pacific National Bank, operates five branches in northern San Diego and southern Riverside counties. These offices are located in Escondido, San Marcos, Lake San Marcos, Temecula and Moreno Valley.

FP Bancorp's common stock is traded on the Nasdaq SmallCap Market. The company's stock symbol is FPBN. -0-

                             FP BANCORP INC.
                           Financial Highlights

                           Three Months Ended       Six Months Ended
                                June 30,                June 30,
For the period               1995       1994        1995       1994

Earnings before taxes      $745,000   $111,000   $1,030,000   $123,000
Income taxes                    --         --           --        --
Net earnings               $745,000   $111,000   $1,030,000   $123,000
Weighted average shares
  outstanding             2,657,929  1,213,000    2,247,143  1,213,000
Primary earnings per
  share                    28 cents    9 cents     46 cents   10 cents
Provision for loan
  losses                         --         --           --         --
Net charge-offs            $262,000   $460,000   $  621,000   $767,000
Return on average assets
  (annualized)             1.43 pct.  0.27 pct.    1.10 pct.  0.15 pct.
Return on average equity
  (annualized)            19.58 pct.  6.36 pct.   16.29 pct.  3.56 pct.

                            June 30,            Increase     Increase
At end of period       1995         1994       (Decrease)   (Decrease)

Total assets       $218,012,000  $162,309,000  $55,703,000   34.32 pct.
Total deposits     $196,182,000  $150,199,000  $45,983,000   30.61 pct.
Total loans        $143,147,000  $111,046,000  $32,101,000   28.91 pct.
Allowance for
 loan losses       $  2,848,000  $  3,063,000  $  (215,000)  (7.02 pct.)
FP Bancorp Inc.
 stockholders'
  equity           $ 15,613,000  $  6,758,000  $ 8,855,000  131.03 pct.
FPNB stockholders'
 equity            $ 17,215,000  $ 10,960,000  $ 6,255,000   57.07 pct.
FP Bancorp Inc.
 leverage ratio       6.53 pct.     4.44 pct.
FPNB leverage ratio   7.23 pct.     6.88 pct.
FP Bancorp Inc.
 Tier 1 risk-based
  capital ratio       8.66 pct.     5.95 pct.
FPNB Tier 1 risk-
 based capital ratio  9.59 pct.     9.20 pct.
FP Bancorp Inc.
 total risk-based
  capital ratio       9.92 pct.     7.22 pct.
FPNB total risk-based
 capital ratio       10.86 pct.    10.46 pct.
Stockholders' equity
 per share               $ 5.90        $ 5.57
Non-performing
 loans             $  2,868,000  $  2,635,000
Other real estate
 owned             $  5,985,000  $  5,277,000
Non-performing
 assets            $  8,853,000  $  7,912,000
Non-performing
 loans/total loans    2.00 pct.     2.37 pct.
Non-performing
 assets/total assets  4.06 pct.     4.87 pct.

CONTACT: FP Bancorp Inc., Escondido

Harvey L. Williamson, 619/739-6500