First\ue000 Regional\ue000 Bancorp\ue000 has\ue000 announced\ue000 that\ue000 its\ue000 wholly-owned\ue000 subsidiary,\ue000 First\ue000 Regional\ue000 Bank\ue000 (the\ue000 \u201cBank\u201d),\ue000 has\ue000 authorized\ue000 an
agreement\ue000 with\ue000 the\ue000 Federal\ue000 Deposit\ue000 Insurance\ue000 Corporation\ue000 (the\ue000 \u201cFDIC\u201d)\ue000 and\ue000 the\ue000 California\ue000 Department\ue000 of\ue000 Financial\ue000 Institutions\ue000 (the\ue000 \u201cDFI\u201d)\ue000 to
further\ue000 strengthen\ue000 the\ue000 Bank\u2019s\ue000 operations.\ue000 \ue000 The\ue000 agreement\ue000 between\ue000 First\ue000 Regional\ue000 Bank\ue000 and\ue000 its\ue000 regulators\ue000 is\ue000 expected\ue000 to\ue000 help\ue000 guide\ue000 the\ue000 Bank\ue000 in
addressing\ue000 the\ue000 impacts\ue000 of\ue000 today\u2019s\ue000 challenging\ue000 economic\ue000 environment.\ue000 \ue000 The\ue000 agreement\ue000 formalizes\ue000 many\ue000 of\ue000 the\ue000 initiatives\ue000 which\ue000 the\ue000 Bank\ue000 has
already\ue000 adopted,\ue000 and\ue000 provides\ue000 useful\ue000 milestones\ue000 for\ue000 measuring\ue000 the\ue000 Bank\u2019s\ue000 progress\ue000 as\ue000 it\ue000 moves\ue000 forward.\ue000 \ue000 The\ue000 agreement\ue000 includes\ue000 valuable
input\ue000 from\ue000 the\ue000 FDIC\ue000 and\ue000 DFI\ue000 in\ue000 the\ue000 development\ue000 of\ue000 this\ue000 program,\ue000 and\ue000 also\ue000 reflects\ue000 our\ue000 shared\ue000 goals\ue000 of\ue000 achieving\ue000 a\ue000 strong\ue000 and\ue000 profitable

As\ue000 previously\ue000 noted,\ue000 First\ue000 Regional\ue000 Bank\ue000 continues\ue000 to\ue000 maintain\ue000 \u201cwell\ue000 capitalized\u201d\ue000 ratios,\ue000 the\ue000 highest\ue000 standards\ue000 established\ue000 by
banking\ue000 regulators.\ue000 \ue000 However,\ue000 in\ue000 connection\ue000 with\ue000 the\ue000 Bank\u2019s\ue000 plan\ue000 to\ue000 increase\ue000 its\ue000 capital\ue000 ratios,\ue000 the\ue000 Bank\ue000 will\ue000 specifically\ue000 agree\ue000 to\ue000 improve\ue000 its
Tier\ue000 1\ue000 capital\ue000 level\ue000 to\ue000 9.5%\ue000 of\ue000 the\ue000 Bank\u2019s\ue000 total\ue000 assets\ue000 and\ue000 to\ue000 maintain\ue000 such\ue000 ratio\ue000 at\ue000 10%\ue000 as\ue000 of\ue000 September\ue000 30,\ue000 2009.\ue000 \ue000 Also\ue000 as\ue000 a\ue000 part\ue000 of\ue000 such\ue000 plan,
First\ue000 Regional\ue000 Bank\ue000 and\ue000 its\ue000 parent,\ue000 First\ue000 Regional\ue000 Bancorp,\ue000 have\ue000 also\ue000 authorized\ue000 the\ue000 contribution\ue000 by\ue000 First\ue000 Regional\ue000 Bancorp,\ue000 from\ue000 its\ue000 cash
reserves,\ue000 of\ue000 $12\ue000 million\ue000 into\ue000 the\ue000 Bank\ue000 as\ue000 additional\ue000 Bank\ue000 capital.

In\ue000 the\ue000 interest\ue000 of\ue000 preserving\ue000 its\ue000 remaining\ue000 cash\ue000 reserves\ue000 during\ue000 a\ue000 challenging\ue000 period,\ue000 First\ue000 Regional\ue000 Bancorp\ue000 intends\ue000 to\ue000 defer\ue000 interest payments\ue000 on\ue000 its\ue000 trust\ue000 preferred\ue000 securities\ue000 for\ue000 a\ue000 period\ue000 of\ue000 one\ue000 year,\ue000 or\ue000 until\ue000 March\ue000 2010.\ue000 \ue000 First\ue000 Regional\ue000 has\ue000 the\ue000 right\ue000 to\ue000 defer\ue000 interest\ue000 payments for\ue000 up\ue000 to\ue000 five\ue000 years\ue000 under\ue000 the\ue000 indentures\ue000 governing\ue000 its\ue000 various\ue000 trust\ue000 preferred\ue000 securities.

First\ue000 Regional\ue000 intends\ue000 to\ue000 achieve\ue000 full\ue000 compliance\ue000 with\ue000 the\ue000 agreement\ue000 in\ue000 a\ue000 timely\ue000 manner.\ue000 \ue000 As\ue000 the\ue000 agreement\ue000 includes\ue000 many\ue000 initiatives previously\ue000 adopted\ue000 by\ue000 the\ue000 Bank,\ue000 the\ue000 implementation\ue000 of\ue000 those\ue000 measures\ue000 has\ue000 already\ue000 begun.\ue000 \ue000 Even\ue000 after\ue000 the\ue000 terms\ue000 of\ue000 the\ue000 agreement\ue000 have\ue000 been satisfied,\ue000 First\ue000 Regional\ue000 plans\ue000 to\ue000 continue\ue000 its

efforts\ue000 to\ue000 further\ue000 enhance\ue000 the\ue000 Bank\u2019s\ue000 capital\ue000 strength,\ue000 asset\ue000 quality,\ue000 and\ue000 operating\ue000 performance.\ue000 \ue000 First\ue000 Regional\ue000 is\ue000 confident\ue000 that\ue000 its\ue000 efforts\ue000 to comply\ue000 with\ue000 the\ue000 agreement\ue000 will\ue000 not\ue000 inconvenience\ue000 its\ue000 customers\ue000 in\ue000 any\ue000 way,\ue000 and\ue000 that\ue000 customers\ue000 will\ue000 continue\ue000 to\ue000 enjoy\ue000 the\ue000 personalized\ue000 service that\ue000 has\ue000 long\ue000 been\ue000 a\ue000 hallmark\ue000 of\ue000 First\ue000 Regional\ue000 Bank.

First\ue000 Regional\ue000 Bancorp\ue000 is\ue000 a\ue000 bank\ue000 holding\ue000 company\ue000 headquartered\ue000 in\ue000 Century\ue000 City,\ue000 California.\ue000 \ue000 Its\ue000 subsidiary,\ue000 First\ue000 Regional\ue000 Bank, specializes\ue000 in\ue000 providing\ue000 businesses\ue000 and\ue000 professionals\ue000 with\ue000 the\ue000 management\ue000 expertise\ue000 of\ue000 a\ue000 major\ue000 bank\ue000 and\ue000 the\ue000 personalized\ue000 service\ue000 of\ue000 an independent.

This\ue000 report\ue000 includes\ue000 \u201cforward-looking\ue000 statements\u201d\ue000 within\ue000 the\ue000 meaning\ue000 of\ue000 Section\ue000 27A\ue000 of\ue000 the\ue000 Securities\ue000 Act\ue000 of\ue000 1933,\ue000 as\ue000 amended,
and\ue000 Section\ue000 21E\ue000 of\ue000 the\ue000 Securities\ue000 Exchange\ue000 Act\ue000 of\ue000 1934,\ue000 as\ue000 amended.\ue000 \ue000 All\ue000 statements,\ue000 other\ue000 than\ue000 statements\ue000 of\ue000 historical\ue000 fact,\ue000 included
herein\ue000 may\ue000 constitute\ue000 forward-looking\ue000 statements.\ue000 \ue000 Although\ue000 First\ue000 Regional\ue000 believes\ue000 that\ue000 the\ue000 expectations\ue000 reflected\ue000 in\ue000 such\ue000 forward-
looking\ue000 statements\ue000 are\ue000 reasonable,\ue000 it\ue000 can\ue000 give\ue000 no\ue000 assurance\ue000 that\ue000 such\ue000 expectations\ue000 will\ue000 prove\ue000 to\ue000 be\ue000 correct.\ue000 \ue000 Important\ue000 factors\ue000 that\ue000 could
cause\ue000 actual\ue000 results\ue000 to\ue000 differ\ue000 materially\ue000 from\ue000 First\ue000 Regional\u2019s\ue000 expectations\ue000 include\ue000 fluctuations\ue000 in\ue000 interest\ue000 rates,\ue000 inflation,\ue000 government
regulations,\ue000 and\ue000 economic\ue000 conditions\ue000 and\ue000 competition\ue000 in\ue000 the\ue000 geographic\ue000 and\ue000 business\ue000 areas\ue000 in\ue000 which\ue000 First\ue000 Regional\ue000 conducts\ue000 its