MANHATTAN BEACH, CA--(Marketwire - Feb 1, 2012) - Beach Business Bank (OTCBB: [ BBBC ]) (the "Bank") is pleased to report its results of operations for the fourth quarter and full year of 2011.

Fourth Quarter Highlights

• Earnings. For the fourth quarter, the Bank earned $703,000, before $143,000 in non-core expenses related to the merger (the "Merger") with First PacTrust Bancorp Inc. that was announced in a joint press release by both companies on August 31, 2011. If those non-core expenses are included, the Bank still earned $560,000 for the quarter. For the full year 2011, the Bank earned $2,401,000, before $369,000 in non-core expenses related to the Merger. When those non-core expenses are included, the Bank still earned $2,032,000 for the full year 2011. Based upon the earnings before non-core items, the Bank earned 0.74% annualized return on Average Assets for the quarter, and 0.67% for the full year 2011, and based upon earnings before non-core items, the Bank earned 93% annualized return on Average Common Equity for the quarter, and 0.79% for the full year 2011.

• Net Loan Growth and Funding Quality. Net Loans decreased by (5.6)% in the fourth quarter, as a result of loan payoffs and paydowns. Deposit growth was (6.1)% during the quarter. The Bank's Net Interest Margin was up slightly at 4.41%, compared to 4.37% at the end of the prior quarter. For the full year 2011, the Bank's Net Interest Margin at 4.43% compared favorably to 2010, when it was 3.95%. Non-interest bearing deposits increased from $62.7 million at the end of December 2010 to $67.0 million at the end of December 2011. The Bank's non-CD or "core" deposits remained very high at 93.9% of total deposits at the end of the quarter.

• Total new loan commitments for the Bank in the quarter amounted to more than $24.8 million. Total new loan commitments for the full year 2011 amounted to more than $88.5 million. This compares to $125.0 million in new loan commitments for 2010.
• Deposits totaled $251.1 million at the end of 2011, as compared to $264.0 million at the end of 2010.
• Total assets stood at $305.0 million at the end of 2011, as compared to $307.8 million at the end of 2010.

Strong Operating Performance, When Measured Before Non-Core Items

"We are pleased to complete the most profitable year in our Bank's history," commented Jim Gray, the co-chairman of the Bank's board of directors.

Robert Franko, president and chief executive officer of the Bank, commented, "Our business model has proven itself very admirably in this tough economic year. We also continued to lend during the entire period of the worst recession since the Great Depression. We have now achieved record profitability, cleaned up a number of lingering credit problems, and developed some terrific new client relationships. We look forward to completing our merger with First PacTrust Bancorp, Inc. in the next few months. We are anxious to bring our business banking expertise to their customer base."

Loan Portfolio and Credit Quality

• The Bank's Allowance for Loan & Lease Losses (ALLL) stood at $5.9 million or 2.41% of loans held to maturity at the quarter end.
• As of the year-end, non-accrual loans held to maturity stood at $3.0 million, or 1.2% of loans held to maturity.
• As of the year-end, non-accrual loans available for sale stood at $4.9 million. All loans held available for sale at year-end were sold and closed by January 6, 2012 at prices which met or exceeded the value of those loans on the Bank's balance sheet at year-end.
• There were no loans more than 30 days past due.
• The Bank had net charge-offs of $175,000 in the quarter. The Bank provided $153,000 to the ALLL in the quarter.
• At year-end, the Bank's Total Risk-based Capital Ratio was 15.8%, compared to the regulatory minimum of 10.0% to be "Well Capitalized."
• The Bank's other regulatory capital measurements also continued to be significantly above the regulatory minimums for Well Capitalized institutions. For example, the Bank's Tier 1 Risk-Based Capital was 14.5%, compared to the regulatory minimum of 6.0%, and the Bank's Tier 1 Leverage Ratio was 11.6%, compared to the regulatory minimum of 5.0%.

Capital Transactions

• On October 19, 2011, as previously announced, the Bank repurchased 1,500 of the remaining 4,500 shares of the Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A (the "Series A Preferred Stock") that the Bank had issued to the Treasury on January 30, 2009 under the TARP Capital Purchase Program, thereby reducing the preferred equity of the Bank by $1.5 million. At year-end, only a combined $3.3 million of the Series A Preferred Stock and the Series B Preferred Stock remained.

Financial statements in the form of the Bank's Call Report, as filed with the FDIC, will be available on the Bank's web site at [ www.beachbusinessbank.com ], and should be available for review or downloading from the FDIC web site at [ www.fdic.gov ] shortly after the end of this month.

Beach Business Bank is headquartered at 1230 Rosecrans Avenue, Lobby Level, in Manhattan Beach, and has two other full-service offices at 180 E. Ocean Blvd. in Long Beach, CA and at 650 Town Center Drive in Costa Mesa, CA. The Bank is first and foremost a community business bank serving Los Angeles, Long Beach, the South Bay and Orange County residents and businesses. The Bank also has a division named The Doctors Bank^®, which serves physicians and dentists nationwide. In addition, Beach Business Bank provides loans to small businesses, focused around the SBA 7(a) and Express lending programs. For more information on the Bank, please visit [ www.beachbusinessbank.com ] or call toll-free to (866) 862-3878.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:

The financial information in this press release is based on the Bank's unaudited financial results. Certain statements in this press release, including statements regarding the anticipated development and expansion of the Bank's business, and the intent, belief, and current expectations of the Bank, its directors, or its officers, are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements are subject to risks and uncertainties, and therefore the Bank's actual results may differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties that the Bank is subject to include, but are not limited to, risks related to the local and national economy, including fluctuations in interest rates and costs and changes in economic policy; the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement with First PacTrust Bancorp, Inc.; the outcome of any legal proceedings that may be instituted against the Bank; the inability to complete the transactions contemplated by the merger agreement with First PacTrust Bancorp, Inc. due to the failure to satisfy the transaction's conditions to completion, including the receipt of regulatory approvals; risks that the proposed transaction disrupts current plans and operations and the potential difficulties in employee retention as a result of the proposed transaction; the amount of the costs, fees, expenses and charges related to the proposed transaction; the ability of the Bank to perform in accordance with its plans; competition; regulatory matters; and other risks detailed in its filings with the State of California Department of Financial Institutions and the Federal Deposit Insurance Corporation. The Bank cautions readers not to place undue reliance on any forward-looking statements. The Bank does not undertake, and specifically disclaims any obligation, to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.