SOURCE: Beach Business Bank

Beach Business Bank

January 05, 2010 15:13 ET

Beach Business Bank Acquires Loan Portfolio, Applies to Open Orange County Branch

MANHATTAN BEACH, CA--(Marketwire - January 5, 2010) - Beach Business Bank (OTCBB: BBBC) (the "Bank") is pleased to announce that immediately prior to the end of 2009, the Bank acquired a portfolio of performing loans from First Financial Bank, Hamilton, OH ("First Financial"). In addition, in a related transaction, Beach Business Bank announced that it has applied to open a branch at 650 Town Center Drive, Costa Mesa, CA, subject to regulatory approvals and other conditions. In connection with the new branch, the Bank will be hiring Caroline Harkins, the Market President for First Financial's Orange County office. First Financial had previously announced their intention to exit their recently acquired western markets, including the Orange County location. Beach Business Bank expects to hire most of the employees who have been working with First Financial's Orange County clients.

Caroline Harkins opened the Orange County office for Irwin Union, F.S.B. about 4 years ago and had built the office to more than $100 million in total assets, when the office was acquired by First Financial following the resolution of Irwin Union. Caroline's background includes a long history with Imperial Bank (acquired by Comerica Bank in 2000), where she worked with Robert Franko, president and CEO of Beach Business Bank and Dan Mathis, a director of Beach Business Bank and the Chairman of the Bank's Directors Loan Committee. Mr. Mathis said about Caroline, "We are excited to be working with Caroline again. She has always been a top performer and she has assembled a real team of professional bankers. We look forward to helping her grow that office to the levels that she was able to achieve before."

"This is a terrific opportunity for our Bank to start the New Year with a 10% increase in quality business credits for our loan portfolio, and to hire a skilled team of bankers who can immediately hit the ground running," said Mr. Franko. "This acquisition of clients and talent will be accretive right away. We expect to be opening new deposit relationships with these clients over the next few weeks, so that eventually much of the loan portfolio will be funded with new core deposits."

The Bank's Chairman Jim Gray said, "We have been anxious to get a meaningful presence in Orange County. Our Capital and Liquidity have allowed us to move quickly as this opportunity arose. We are thrilled to be starting with this significant base of core client relationships."

Beach Business Bank was advised by Mike Cavallaro and Jim Troy of Hovde Financial. The Bank's external loan review firm conducted an analysis of the acquired portfolio. The application to open a branch at the current location was filed by the Bank on December 28, 2009.

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 Southern California 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. For more information on the Bank, please visit or call 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 our 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 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.

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