SAN JOSE, CA--(Marketwire - Apr 25, 2012) - Focus Business Bank (OTCBB: [ FCSB ]) announced unaudited financial results, including continued profitability, for the quarter ended March 31, 2012. Record net income of $243,000, or $0.09 per share, was reported for the three months ended March 31, 2012 compared to net income of $51,000, or $0.02 per share, for the comparable quarter in 2011. President and Chief Executive Officer Richard L. Conniff noted, "The Bank continues to experience strong growth in loans as a result of its business development efforts and a gradual but steady improvement in the local economy. While deposits and, correspondingly, cash, declined slightly from the record levels at December 31, 2011, these changes were anticipated as several of the Bank's customers had maintained significantly high balances related to transactions which were completed in the first quarter of 2012. We are very pleased that the Bank's core earnings continue to grow and that we achieved our eighth consecutive profitable quarter."

Assets and Liabilities
Total assets increased to $162.5 million at March 31, 2012, a 20% increase from March 31, 2011. Total loans were $101.2 million at March 31, 2012, a 42% increase from March 31, 2011. Total deposits grew to $138.9 million at March 31, 2012, a 25% increase from March 31, 2011.

Non-interest bearing deposits at March 31, 2012 were $54.6 million, an increase of 42% compared to $38.5 million at March 31, 2011. Non-interest bearing deposits represented 39% of total deposits at March 31, 2012, compared to 35% of total deposits at March 31, 2011.

Net Interest Income
Net interest income for the three-months ended March 31, 2012 was $1,432,000, an increase of 45% compared to $986,000 for the same period in 2011. The net interest margin of 3.77% for the three months ended March 31, 2012 was an improvement compared to 3.05% for the three-months ended March 31, 2011. The increase in net interest margin for the quarter ending March 31, 2012, compared to the prior year quarter, is primarily attributable to the continuing increase in loan volume and a reduction in the cost of interest bearing deposits. At March 31, 2012, the loan to deposit ratio was 73% as compared to 64% at March 31, 2011.

Non-interest Income
Non-interest income was $201,000 for the quarter ended March 31, 2012, compared to $539,000 for the same period in 2011. Non-interest income is primarily composed of gains on the sale of SBA loans originated by the Bank and sold in the SBA market, servicing income related to SBA loans which are sold and service charges related to deposit activities.

Non-Interest Expense
Non-interest expense was $1,360,000 for the three-months ended March 31, 2012, compared to $1,474,000 for the three months ended March 31, 2011. The decrease in non-interest expense for the quarter ended March 31, 2012, compared to the same period in 2011, is primarily attributable to a reduction in equity based compensation expense related to stock options issued when the Bank opened in 2007.

Asset Quality
The Bank made no provision for loan losses in the quarter ended March 31, 2012. The allowance for loan losses was 2.51% of total loans at March 31, 2012, as compared to 3.57% at March 31, 2011. There were no loan charge-offs or recoveries for the quarter ended March 31, 2012. At March 31, 2012, the Bank had no non-performing loans. At March 31, 2011, the Bank had one non-performing loan for $84,000. The Bank has never had other real estate owned.

Capital
Focus Business Bank has capital ratios substantially in excess of the minimum regulatory requirements for a bank to be considered well capitalized. At March 31, 2012, the total risk-based capital ratio was 19.99%.

About Focus Business Bank
Focus Business Bank is dedicated to meeting the banking needs of closely-held businesses and professionals in Santa Clara County. The Bank's office is located at 10 Almaden Boulevard in downtown San Jose, California and offers a variety of commercial banking products including loans, deposits, remote deposit capture and other cash management services oriented toward closely-held businesses and their owners. The Bank specializes in commercial loans and is also an SBA Preferred Lender. The Bank also serves not-for-profit businesses and condominium homeowner associations by offering expertise, market knowledge and specialized products and services to these customers.

Forward-Looking Statements
This release may contain forward-looking statements, such as, among others, statements about plans, expectations and goals concerning growth and improvement. Forward-looking statements are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, including the real estate market in California and other factors beyond the Bank's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially fromthose indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.