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Mr. Conniff noted, "The Santa Clara County economy remains one of the strongest in the country. It is also one of the most competitive banking markets with national, regional and community banks abundantly represented. Focus Business Bank competes by being tightly focused on closely-held local businesses seeking a long term banking relationship tailored to their specific needs. We continue to add to our business banking team and are well positioned to support the needs of our clients."

Net Interest Income

Net interest income for the quarter and six-months ended June 30, 2014 was $2.1 million and $4.1 million, respectively, compared to $1.6 million and $3.2 million for the same periods ended June 30, 2013. The increase in net interest income was directly related to the higher volume of earning assets funded by growth in deposits. The increase in net interest income attributable to higher volumes of earning assets was partially offset by decreases in the net interest margin related to a lower loan to deposit ratio and market interest rates which remain at historically low levels. The net interest margin for the quarter ended June 30, 2014 was 2.62% compared to 2.85% for the quarter ended June 30, 2013.

Non-interest Income

Non-interest income includes service charges and fees, securities gains and losses, SBA loan sales gains and loan servicing fees. Total non-interest income was $519,000 and $1,044,000, respectively, for the quarter and six-months ended June 30, 2014 compared to $326,000 and $596,000 for the same periods ending June 30, 2013. Most of the increase in non-interest income for the quarter and six-months ended June 30, 2014 compared to the same periods the previous year relates to gains on the sale of SBA loans in the secondary market. Gains from the sale of SBA loans totaled $366,000 and $678,000, respectively, for the three and six month periods ended June 30, 2014, respectively, compared to $280,000 and $448,000 for the same periods ending June 30, 2013. Focus Business Bank is an SBA Preferred Lender and the origination and sale of SBA loans has been a material and recurring source of revenue for many years.

Non-Interest Expense

Non-interest expense for the quarter and six-months ended June 30, 2014 was $2.0 million and $4.1 million, respectively, compared to $1.7 million and $3.3 million for the same periods ended June 30, 2013. The increase in non-interest expense is primarily attributable to the Bank's growth. FTEs increased from 29 at June 30, 2013 to 35 at June 30, 2014. The increase in headcount also resulted in higher occupancy expense as the Bank expanded its leased premises in mid-2013.

Asset Quality

At June 30, 2014, the Bank had $143,000 in non-performing loans compared to $1.1 million at December 31, 2013 and no non-performing loans at June 30, 2013. The provision for loan losses for the quarter and six-months ended June 30, 2014 was $75,000 and $175,000, respectively, compared to no provision for loan losses in 2013. At June 30, 2014, the reserve for loan losses was 1.74% of total loans, compared to 1.82% at December 31, 2013 and 2.12% at June 30, 2013.

Capital

Focus Business Bank has capital ratios in excess of the minimum regulatory requirements for a bank to be considered well capitalized. At June 30, 2014, the total risk-based capital ratio was 13.73% compared to the regulatory well capitalized minimum of 10%. The Bank has not participated in any government sponsored capital programs, including the Troubled Asset Relief Program ("TARP") or the Small Business Lending Fund ("SBLF").

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 also serves not-for-profit organizations and condominium homeowner associations with expertise, market knowledge, products and services tailored to these specific industries. The Bank specializes in business cash management services and commercial loans of all types. The Bank's office is located at 10 Almaden Boulevard in downtown San Jose, California.

Forward-Looking Statements

This release may contain forward-looking statements, such as, among others, statements about plans, expectations and goals concerning future growth and performance. 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 from those 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.