First Commercial Bancorp Inc.'s 1994 Annual Meeting of Stockholders.

SACRAMENTO, Calif.--(BUSINESS WIRE)--Dec. 21, 1994--First Commercial Bancorp Inc. held its 1994 Annual Meeting of Stockholders on Tuesday, Dec. 20, 1994 at 9 a.m., at the Capitol Plaza Holiday Inn in Sacramento.

Approximately 75 stockholders attended the meeting. Manuel Perry, Jr., chairman of the board, stated after the meeting that he was pleased with the stockholder response to the information presented at the meeting. Management of First Commercial Bank, the wholly owned subsidiary of First Commercial Bancorp, Sacramento, discussed the progress of the bank's efforts to decrease its asset size, reduce its problem assets and return the bank to a sound operating condition.

Although audited financial statements for 1994 are not yet available, management presented certain unaudited interim financial information. The bank's total assets have decreased from $350 million at Dec. 31, 1993 to $244 million at Nov. 30, 1994; loans have been reduced from $194 million to $141 million; and deposits have been reduced from $324 million to $234 million during the same period.

The bank has been successful in its cost-cutting efforts, reducing full-time equivalent (FTE) employees by 35 as of Nov. 30, 1994, resulting in an annualized savings of approximately $1,600,000. A salary freeze was implemented in June of 1994 on salaries for bank officers of assistant vice president and above, and all directors' fees and retainers were cancelled.

The sale of the bank's San Diego Branch Office is expected to close in mid-January 1995, which will further reduce operating expenses of the bank. The bank intends to continue its expense reduction program during 1995 and is currently evaluating areas in which to do so.

The primary factor responsible for the bank's losses during 1993 and year-to-date 1994, has been its problem assets and the costs associated with maintaining these assets. The amount of Other Real Estate Owned decreased from $15 million at June 30, 1994 to $12 million as of Nov. 30, 1994. Of the $12 million remaining, $9 million is in escrow with $5 million expected to close by year-end 1994.

The bank's new Chief Credit Officer, Dennis Ceklovsky, is taking an aggressive approach in identifying and resolving these assets. Delinquent loans have been reduced from $23 million at Sept. 30, 1994 to $18 million at Nov. 30, 1994.

The bank is operating under certain regulatory orders which require, among other things, that the bank achieve and maintain a Tier 1 leverage capital ratio of 6.5%. As of Nov. 30, 1994, the bank's leverage ratio was 3.39%, creating a capital shortfall of approximately $8.3 million. As of Nov. 30, 1994, the bank's total risk-based capital ratio was 6.8%, below the 8.0% minimum regulatory capital requirement, although the bank's Tier 1 risk-based capital ratio was 5.1%, above the 4% minimum regulatory requirement.

The bank has engaged a financial advisor to assist in its efforts to raise capital and is in the process of evaluating all possible recapitalization strategies. It is the Board's intention to provide current stockholders of the Company with a right to purchase additional shares if the Company issues additional stock.

Perry stated since July 1994 that he believes the bank has made great strides in improving its operations and expects further improvement in all areas of the bank in 1995. He stated further that the loyalty and support of customers, stockholders and employees has been gratifying and continues to be instrumental to the bank's future success.

CONTACT: First Commercial Bancorp Inc.

Michele McCormick, 916/736-6900