BBBC Beach Business Bank

[greencat]

Beach Business Bank Reports Earnings for the Fourth Quarter
Thursday, January 29 2009 - 14:45

BBBC $4.58 $0.08 (%1.78)

MANHATTAN BEACH, CA -- (MARKET WIRE) -- 01/29/09 --
Beach Business Bank (OTCBB: BBBC) (the
"Bank") is pleased to report its results of operations for the fourth
quarter of 2008 and the year ended December 31, 2008.





During the quarter, the Bank recorded after tax earnings of $290,000, an
increase of $118,000 from the prior quarter. The financial results
demonstrated 6.1% growth in net loans over the previous quarter, and 3.7%
growth in net loans over the same quarter of the prior year. Total new
loan commitments in the quarter amounted to more than $24 million.
Non-interest bearing demand deposits totaled $31.8 million at quarter end,
an increase of 34.4% over the prior quarter end, and an increase of 63.0%
over the same period in 2007.





"While we find these economic conditions to be unprecedented in recent
memory," commented Jim Gray, the co-chairman of the Bank's board of
directors, "we are very pleased to be able to report improved quarterly
earnings for the fourth quarter of 2008. We are also pleased that our loan
portfolio grew during this very challenging quarter. We continue to be a
source of strength to our business clients."





Robert Franko, president and chief executive officer of the Bank,
commented, "We have also seen a meaningful increase in our demand deposit
base, now that 100% of the Bank's demand deposit balances are insured by
the FDIC under the Transaction Account Guarantee Program. We are pleased
to report that the Bank qualified for the US Treasury Capital Purchase Plan
("CPP"). The CPP positions us to be even more flexible in providing loans
to small businesses in the communities that we serve. We understand that
this plan is only available to healthy banks, so we are particularly proud
to have been selected to participate."


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Total assets increased 8.3% or $17.7 million to $231.6 million at December
31, 2008, as compared to $213.9 million at December 31, 2007. Net Loans
increased 3.7% or $6.9 million to $192.6 million over the same period. The
Bank provided $600,000 in the quarter to the Allowance for Loan & Lease
Losses ("ALLL"), so that the ALLL now stands at about $4.9 million,
approximately 2.5% of total loans. The Bank's total risk-based capital
ratio stands at 17.11% at December 31, 2008, which means the Bank continues
to be Well Capitalized as defined by the FDIC.





The Bank had net recoveries of $341 in the quarter. Non-accrual loans
decreased slightly from $2.6 million at the end of the 3rd quarter to $2.5
million at the end of the 4th quarter. Other than these nonaccrual loans,
there were no loans more than 30 days past due.





The Bank's annualized net interest margin for the quarter was 4.16%.





During the quarter, an investment fund which owned 301,400 shares of common
stock in the Bank chose to liquidate. As a part of that liquidation, a
trust was established to sell the shares of common stock in the Bank or
otherwise distribute them. The shares will be offered for sale under an
SEC 10b5-1 plan established with the firm of Howe Barnes Hoefer & Arnett.
Details of the 10b5-1 plan may be obtained from Michael Hedrie of that firm
at (415) 538-5749.





Other selected financial data is included in the table below.





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
Beach Business Bank, and should be available for review or
downloading from the FDIC web site at FDIC: Federal Deposit Insurance Corporation shortly after the end of
this month.





Beach Business Bank is headquartered at 1230 Rosecrans Avenue, Lobby Level,
in Manhattan Beach, and has a second full-service office at 180 E. Ocean
Blvd. in Long Beach, CA. The Bank is first and foremost a community
business bank serving Los Angeles, Long Beach, and the South Bay area
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), 504, and Express lending programs. The Bank makes a special effort to
serve minority-owned businesses. For more information on the Bank, please
visit Beach Business Bank or call 866-862-3878 or 310-536-2260; in
Long Beach, call 562-435-8600.





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