FP Bancorp Inc. reports record first-quarter earnings.

ESCONDIDO, Calif.--(BUSINESS WIRE)--April 23, 1996--FP Bancorp Inc. (NASDAQ:FPBN), parent company of First Pacific National Bank, announced record earnings for the first quarter of 1996.

During the three-month period ended March 31, 1996, FP Bancorp earned $724,000, or 27 cents per share, up 154 percent from the $285,000 earned during the same quarter in 1995. These represent the highest first-quarter earnings in the history of the company.

FP Bancorp also announced sizable gains in deposits, loans and assets, as well as reductions in problem assets.

As of March 31, 1996, FP Bancorp reported deposits of $188.4 million, gross loans of $149 million and assets of $211.6 million. These represent gains of 24 percent, 30 percent and 26 percent, respectively, when compared with deposits of $152.2 million, loans of $114.5 million and assets of $168.3 million on March 31, 1995.

Asset quality also improved, with nonperforming loans falling from $2.2 million at March 31, 1995, to $1.2 million on the same date in 1996. OREO was also significantly reduced, declining from $5.5 million as of March 31, 1995, to $2.2 million as of March 31, 1996.

The company also recently announced that it had completed its acquisition of The Bank of Rancho Bernardo. That transaction was consummated on April 1, 1996, and added approximately $55 million in deposits and $45 million in loans to First Pacific National Bank's totals.

"We are extremely pleased with the earnings performance and growth of the company over the last 12 months," stated FP Bancorp's president and chief executive officer, Harvey L. Williamson. "We've completed two acquisitions while significantly reducing our problem assets and the related costs.

"We also opened a new office on Rancho California Road in Temecula on April 22, which brought our branch network to seven locations," he concluded.

FP Bancorp's wholly owned subsidiary, First Pacific National Bank, is one of the four largest banks with headquarters in San Diego County and operates branches in Escondido, San Marcos, Lake San Marcos, Temecula, Moreno Valley and Rancho Bernardo.

FP Bancorp's common stock is traded on the NASDAQ National Market System under the symbol FPBN. -0-

                            FP Bancorp Inc.
                         Financial Highlights

                              Three months ended
                                   March 31,         Increase   Increase
For the period                1996          1995     (Decrease) (Decrease)

Earnings before taxes       $ 445,000     $ 285,000  $ 160,000   56.14%
Income taxes (benefit)      $(279,000)           --  $(279,000)    n/a
Net earnings                $ 724,000     $ 285,000  $ 439,000  154.04%

Avg. common stock and
  equivalents outstanding   2,712,000     1,838,000

Primary earnings per
  share                      27 cents      16 cents   11 cents   68.75%

Provision for loan losses   $ 250,000            --  $ 250,000     n/a
Net charge-offs             $ 118,000     $ 359,000  $(241,000) (67.13%)
Return on average assets -
  annualized                     1.37%         0.68%
Return on average equity -
  annualized                    16.90%        10.85%

                                   March 31,         Increase   Increase
At end of period              1996          1995     (Decrease) (Decrease)

Total assets             $211,571,000  $168,276,000 $ 43,295,000  25.73%
Goodwill                 $  1,512,000            -- $  1,512,000    n/a
Total deposits           $188,378,000  $152,241,000 $ 36,137,000  23.74%
Total loans              $149,025,000  $114,468,000 $ 34,557,000  30.19%
Allowance for loan
  losses                 $  2,145,000  $  2,307,000 $   (162,000) (7.02%)
Allowance/total loans            1.44%         2.02%
Stockholders' equity     $ 17,260,000  $ 10,330,000 $  6,930,000  67.09%
Leverage ratio                   7.55%         6.38%
Tier 1 risk-based
  capital ratio                  9.72%         8.14%
Total risk-based
  capital ratio                 10.97%         9.40%
Quarter-end common shares
  outstanding               2,651,811     1,821,879
Tangible stockholders'
  equity per share       $       5.94  $       5.67
Nonperforming loans      $  1,242,000  $  2,166,000 $   (924,000)(42.66%)
Other real estate owned  $  2,223,000  $  5,458,000 $ (3,235,000)(59.27%)
Nonperforming assets     $  3,465,000  $  7,624,000 $ (4,159,000)(54.55%)
Nonperforming loans/
  total loans                    0.83%         1.89%
Nonperforming assets/
  total assets                   1.64%         4.53%

CONTACT: FP Bancorp Inc., Escondido

Harvey L. Williamson, 619/739-6500