SOURCE: Focus Business Bank

SAN JOSE, CA–(Marketwire – March 10, 2010) – Focus Business Bank (OTCBB: FCSB) announcedunaudited financial results for the quarter and year ended December 31,2009. the Bank ended the quarter with assets of $108 million, an increaseof 14% over December 31, 2008. the Bank had a loss for the quarter of$671,000 compared to a loss of $1,007,000 for the quarter ended September30, 2009. the loss for the full year ended December 31, 2009 was$3,641,000 compared to a loss of $1,690,000 for the prior year. Presidentand Chief Executive Officer Richard L. Conniff said, “The Bank’sperformance in 2009 continued to reflect disruption in the economy whichcaused the residential mortgage market to drop precipitously andunemployment to increase above 12% in Santa Clara County. As a result ofdifficulties faced by the Bank’s clients, particularly those involved inreal estate, provisions for loan losses remained at elevated levels for theentire year. Fortunately, the Bank has continued to benefit from a strongbalance sheet and we have been able to meet the needs of our clients andcarefully grow even in the face of strong economic headwinds.”

Following is a summary of key balance sheet categories:

(Unaudited, dollars in December 31, September 30, December 31, thousands) 2009 2009 2008 (Audited) ————– ————– ————–Total assets $ 107,912 $ 106,163 $ 94,406Gross loans 71,169 73,722 70,763Allowance for loan losses 2,417 2,346 1,202Deposits Non-interest bearing 22,080 20,990 18,049 Interest-bearing 64,186 62,751 51,431 ————– ————– ————– Total 86,266 83,741 69,480Shareholders’ equity 21,135 21,770 24,326

The Bank’s balance sheet remains strong and management has maintained highlevels of liquidity to assure flexibility in this time of economicvolatility and uncertainty. the loan to deposit ratio has declined from101% at December 31, 2008 to 82% at December 31, 2009. As a result, theBank’s overnight funds and investment securities increased to over $35million at December 31, 2009. In addition, the Bank had no borrowings andno brokered deposits at December 31, 2009.

The provision for loan losses was $2.2 million for the year ended December31, 2009 compared to $820,000 for the year ended December 31, 2008. AtDecember 31, 2009, the Bank’s reserve for loan losses was 3.40% of totalloans compared to 1.70% at the end of 2008. the Bank had threenon-performing loans at December 31, 2009 totaling $5.4 million, $5.0million of which is well secured by real estate and in the process ofcollection. As of March 10, 2010, non-performing loans had been reduced byover $1,200,000 as the result of payments by the borrowers since December31, 2009.

The Bank’s performance was also impacted by a declining net interest marginwhich dropped from 3.92% for the year ended December 31, 2008 to 3.01% forthe year ended December 31, 2009. the decline in net interest margin wascaused by a combination of historically low rates in the capital market,the impact of non-accrual loans and the deleveraging of the balance sheetwhich resulted in a lower percentage of loans, the highest interest earningasset class, to total interest earning assets class.

A summary of operating results follows:

(Unaudited, dollars in Quarter ended Year ended thousands except per December 31, September 30, December 31, December 31, share data) 2009 2009 2009 2008 ———– ———– ———– ———–Interest income $ 953 $ 990 $ 3,974 $ 3,992Interest expense 196 230 922 945 ———– ———– ———– ———–Net interest income 757 760 3,052 3,047Provision for loan losses 275 775 2,245 820Non-interest income 51 158 272 259Non-interest expense 1,204 1,150 4,720 4,176 ———– ———– ———– ———–Net loss $ (671) $ (1,007) $ (3,641) $ (1,690) =========== =========== =========== ===========Loss per share $ (0.24) $ (0.36) $ (1.32) $ (0.61)

The Bank’s capital ratios remain well above current regulatory guidelinesfor well capitalized banks. Following are the Bank’s capital ratios forDecember 31, 2009 and December 31, 2008:

Minimum required to be December 31, December 31, well 2009 2008 capitalized ————– ————– ————–Tier 1 leverage ratio 19.4% 26.0% 5.0%*Tier 1 risk-based capital ratio 26.1% 29.6% 6.0%Total risk-based capital ratio 27.4% 30.9% 10.0%* Minimum for the Bank during the de novo period (first three years) is 8.00%

“Focus Business Bank faced many challenges in 2009 and we are pleased toenter 2010 with a strong balance sheet and well positioned for measuredgrowth,” concluded Conniff. “We remain committed to serving the closelyheld businesses of Santa Clara County and want to remain a strong andtrusted resource for these companies as they emerge from the economicchallenges of the past three years.”

Focus Business Bank is dedicated to meeting the banking needs of closelyheld businesses and entrepreneurs in Santa Clara County. the Bank’s officeis located at 10 Almaden Boulevard in downtown San Jose, California andoffers a variety of commercial banking products including loans, deposits, remote deposit capture and other cash management services oriented towardclosely held businesses and their owners. the Bank specializes incommercial loans and SBA 7a and 504 loans. the Bank also serves not forprofit businesses and condominium homeowner associations by offeringexpertise, market knowledge and specialized products and services to thesecustomers.

This release may contain forward-looking statements, such as, among others,statements about plans, expectations and goals concerning growth.Forward-looking statements are subject to risks and uncertainties. Suchrisks and uncertainties may include but are not necessarily limited tofluctuations in interest rates, inflation, government regulations andgeneral economic conditions, including the real estate market in Californiaand other factors beyond the Bank’s control. Such risks and uncertaintiescould cause results for subsequent interim periods or for the entire yearto differ materially from those indicated. Readers should not place unduereliance on the forward-looking statements, which reflect management’s viewonly as of the date hereof. the Bank undertakes no obligation to publiclyrevise these forward-looking statements to reflect subsequent events orcircumstances.