First Coastal Bancshares Restates Fourth Quarter Earnings.

EL SEGUNDO, Calif. -- First Coastal Bancshares (OTCBB:FCST), parent company of wholly owned First Coastal Bank, N.A. ("the Bank"), restated its net income for the fourth quarter 2004 to a loss of $113,000, from a reported $65,000 in earnings. The Bank's net income was restated to $182,000 from $360,000 for the period ended December 31, 2004. The decrease in the Bank's earnings was the result of the deterioration in the quality of a loan which required a provision to the loan loss reserve. The amount of the necessary provision after the initial announcement of fourth quarter earnings was due to deteriorating circumstances in the borrower's business.

Following generally accepted accounting practice, the company recognized the potential loss in the fourth quarter when the deterioration began. "While there is a potential for loss," said Don M. Griffith, President and CEO, "we believe it will not exceed the provision we have set aside."

The company's overall asset quality remains strong. The restated ratio of non-accrual loans to total loans was 0.59 percent at December 31, 2004, and the ratio of delinquent loans to total loans was 0.03 percent at year-end 2004.

"As we near the end of the first quarter 2005, we are on track with our projected deposit growth with overall deposits already up $15 million from year-end 2004," said Griffith. "Loans have also experienced solid growth, increasing $7 million since the end of last year."

The Bank serves the coastal communities of west Los Angeles County with branches in El Segundo, Manhattan Beach, Marina del Rey and Gardena.