FP Bancorp Inc. reports significant growth in assets and strong earnings for third quarter of 1996.

ESCONDIDO, Calif.--(BUSINESS WIRE)--Oct. 21, 1996--FP Bancorp Inc., (NASDAQ/NMS:FPBN) parent company of First Pacific National Bank, announced significant growth and continued strength in earnings for the three- and nine-month periods ended Sept. 30, 1996.

Net earnings for the quarter ended Sept. 30, 1996 were $969,000, representing an increase of 128% over the $425,000 earned in the third quarter of 1995. Earnings per share for the quarter ended Sept. 30, 1996 were 36 cents, up from 16 cents in the same quarter of 1995.

Net earnings for the nine months ended Sept. 30, 1996 were $3,201,000, representing an increase of 120% over the $1,455,000 earned in the first nine months of 1995. Earnings per share for the nine-month period ended Sept. 30, 1996 were $1.18, up from 61 cents in the same period of 1995.

Deposits, loans and total assets reached record levels as of Sept. 30, 1996. On that date, deposits were $265.5 million, loans were $198.7 million and total assets were $291.5 million, representing increases of 42%, 42% and 39%, respectively, from the same date in 1995. This growth was primarily the result of the acquisition of The Bank of Rancho Bernardo in April of 1996, which added approximately $55 million in deposits and $43 million in loans to the First Pacific franchise.

The company also experienced significant internal growth during the third quarter of 1996. Assets increased $21.5 million or 8% over the June 30, 1996 balance. In August, the company opened a branch in Valley Center, and, as announced last week, will be combining the operations of that branch with the Wells Fargo Valley Center branch. A definitive agreement to purchase the Wells Fargo branch was reached on Oct. 15, 1996 and, as previously reported, the closing is expected to take place in early 1997.

"We are extremely pleased with the continued growth and success of our company during the first nine months of 1996," stated FP Bancorp's President and Chief Executive Officer, Harvey L. Williamson. "During the third quarter, we experienced a tremendous amount of internal growth in loans and deposits and opened our eighth branch in Valley Center. We will also be purchasing the Wells Fargo branch in that area, which will further increase the size of our company. We will continue to be proactive in taking steps to further strengthen our franchise and increase stockholder value."

FP Bancorp's only operating subsidiary, First Pacific National Bank, operates eight branches in the cities of Escondido, San Marcos, Temecula, Rancho Bernardo and Moreno Valley. -0-

                        FP Bancorp Inc.
                     Financial Highlights

                       Three Months Ended      Nine Months Ended
                            Sept. 30,             Sept. 30,
For the period         1996          1995      1996         1995

Earnings before
 taxes              $  964,000   $  203,000  $ 1,939,000  $1,233,000
Income tax benefit      (5,000)    (222,000)  (1,262,000)   (222,000)
Net earnings        $  969,000   $  425,000  $ 3,201,000  $1,455,000

Avg. common stock and
 equivalents
  outstanding        2,724,000    2,690,000    2,715,000   2,404,000
Primary earnings per
 share               36 cents     16 cents     $1.18      61 cents
Provision for loan
 losses             $  150,000   $  100,000   $  550,000  $  100,000
Net charge-offs     $  252,000   $  893,000   $  430,000  $1,514,000
Return on average
 assets-annualized    1.35%         0.80%       1.67%      0.99%
Return on average
 equity-annualized   19.93%        10.63%      23.52%     14.04%

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                           Sept. 30,           Increase   Increase
At End of Period      1996          1995      (Decrease) (Decrease)

Total assets       $291,467,000  $209,976,000  $81,491,000  38.81%
Goodwill           $  3,596,000  $  1,432,000  $ 2,164,000 151.12%
Total deposits     $265,496,000  $187,359,000  $78,137,000  41.70%
Total loans        $198,734,000  $139,817,000  $58,917,000  42.14%
Allowance for
 loan losses       $  2,923,000  $  2,055,000  $   868,000  42.24%
Allowance/Total
 loans               1.47%          1.47%
Stockholders'
 equity            $ 19,629,000  $ 16,145,000  $  3,484,000 21.58%
Leverage ratio       5.37%          7.04%
Tier 1 risk-based
 capital ratio       7.06%          9.30%
Total risk-based
 capital ratio       8.31%         10.55%
Quarter-end common
 shares outstanding   2,654,000     2,648,000
Tangible stockholders'
 equity per share     $6.04         $5.56
Nonperforming loans  $2,342,000    $2,436,000  $    (94,000) (3.86%)
Other real estate
 owned               $1,433,000    $5,632,000  $ (4,199,000)(74.56%)
Nonperforming assets $3,775,000    $8,068,000  $ (4,293,000)(53.21%)
Nonperforming loans/
 Total loans           1.18%         1.74%
Nonperforming assets/
 Total assets          1.30%         3.84%

CONTACT: FP Bancorp Inc., Escondido

Harvey L. Williamson, 619/739-6500