First Commercial Bancorp, Inc. Announces First Quarter Results.

SACRAMENTO, Calif.--(BUSINESS WIRE)--May 3, 1996-- First Commercial Bancorp, Inc. ("FCB"), a bank holding company headquartered in Sacramento, California reported a net loss of $1.16 million or $0.02 per share (based upon 69,675,000 shares outstanding), for the quarter ended March 31, 1996, compared to a net loss of $1.04 million, or $0.22 per share (based upon 4,675,000 shares outstanding), for the same period in 1995.

Donald W. Williams, Chairman of the Board and President of FCB stated "While the overall results for the first quarter of 1996 are comparable to those for the same quarter in 1995, improvements have been made in the financial condition and operating structure of FCB through the sale of 65 million shares of common stock and $6.5 million of convertible debentures to First Banks, Inc., a multi-bank holding company headquartered in St. Louis, Missouri, which was completed in December 1995, as well as cost reductions which have been implemented in the last twelve months.

Williams observed that "operating expenses for the first quarter of 1996 were $2.31 million, compared with $3.79 million for the same quarter of 1995, a reduction of $1.48 million, or 39.1%. At the same time, FCB has continued to build its reserve for loan losses, which had a balance of $5.80 million, or 7.05% of total loans at March 31, 1996, in comparison to $5.39 million, or 7.28% of total loans at December 31, 1995."

Williams added that "while the restructuring process for FCB is in its early stages, FCB is satisfied with its progress in both reducing its operating expenses and re-establishing its presence in the marketplace as a provider of corporate and consumer banking products and services."

At March 31, 1996, FCB had consolidated total assets of $158 million, compared to $170 million at December 31, 1995. At March 31, 1996, FCB and its subsidiary, First Commercial Bank, ("First Commercial") had total stockholders' equity of $2.44 million and $10.02 million, respectively. As a result, regulatory capital ratios at March 31, 1996 were: -0-

                                  FCB        Commercial
Leverage capital                  1.49%       6.16%
Tier 1 risk-based capital         2.46%      10.21%
Total risk-based capital          3.77%      11.52%

-0-

Nonperforming assets, comprised of loans on nonaccrual status and foreclosed property, total $6.33 million, or 7.48% of loans and foreclosed property, at March 31, 1996, compared to nonperforming assets of $5.91 million, or 7.83% of loans and foreclosed property at December 31, 1995. Loans past due over 90 days and still accruing were $1.65 million and $2.25 million at March 31, 1996 and December 31, 1995, respectively.

Williams commented that "FCB continues to have a substantial amount of problem assets, although this has been gradually improving. FCB has been working with these problems for some time, and has effective procedures in place to cause improvements to occur. During the fourth quarter of 1995 and the first quarter of 1996, FCB has taken a more pro-active approach in addressing its problem loans. This should result in accelerating the resolution of many of these loans. However, by taking a more forceful position with problem credits, in the short-run, it tends to cause the amount of loans 90 days or more past due or on nonaccrual status to increase, and may result in advancing the recognition of loan charge-offs." Anticipating this, FCB has consistently provided for possible loan losses during this period, including provisions of $600,000 and $540,000 for the three months ended March 31, 1996 and December 31, 1995, respectively.

As part of its continuing evaluation of its problem assets, during April 1996, FCB performed comprehensive internal analyses of the current status of each asset included in that portfolio. As a result of these analyses, FCB identified loans in which an aggregate of $825,000 is sufficiently impaired to require that the loans be charged-off. These charge-offs will be recorded in April 1996.

However, Williams observed that "In view of the overall adequacy of the reserve for possible loan losses at the present time and the generally improving condition of the loan portfolio, FCB does not anticipate that this will significantly effect its results on operations for the quarter.

The reserve will be replenished by an additional $350,000, an amount which is approximately equivalent to the tax benefits from the charge-offs, creating an essentially neutral effect on FCB's net income or loss for the period. While the reserve for possible loan losses after these adjustments will remain adequate for the current condition of FCB's loan portfolio, FCB will continue to add to its reserve over time through normal provisions for loan losses to maintain that adequacy as the loan portfolio grows and conditions change."

Williams commented that "this is a normal occurrence in the ongoing effort to reduce the amount of problem loans of FCB, and will provide it with greater flexibility in effectively dealing with these credits. We believe that this will result in an overall strengthening of the Company's balance sheet." -0-

                    First Commercial Bancorp, Inc.
                         Financial Summary

              (In thousands, except net loss per share)

                                                 Three Months Ended
                                                     March 31,
Condensed Consolidated Statements of Income       1996       1995

Net Interest Income                           $   1,179   $  2,324
Provision for loan losses                           600        --
Net loss                                         (1,160)    (1,039)
Net loss per share                                (0.02)     (0.22)
Weighted average common shares and common
  Share equivalents outstanding                  69,675      4,675

Condensed Consolidated Balance Sheet
   Information                                 03-31-96   12-31-95

Assets                                        $ 157,899  $ 169,535
Deposits                                        146,149    156,164
Loans                                            82,312     74,015
Allowance for loan losses                         5,804      5,388
Stockholders' equity                              2,435      3,579
Nonperforming assets                              6,332      5,906

CONTACT: First Commercial Bancorp, Inc.

Donald W. Williams/James E. Culleton, 916/641-3288