FPB Financial Corp. Announces 2006 Second Quarter Earnings and Declares Dividends

Fritz W. Anderson II, Chairman of FPB Financial Corp. (PINKSHEETS: FPBF), the holding company for Florida Parishes Bank, announced earnings for the quarter ended June 30, 2006.

Net income per share for the three months ended June 30, 2006 was $224,000 ($0.85 per common share) down 15.8% from $266,000 ($1.03 per common share) for the 2005 comparable period. Net income for the six months ended June 30, 2006, was $409,000 ($1.56 per common share) up 6.5% from $384,000 ($1.49 per common share) for the 2005 comparable period. Earnings for the three and six months ended June 30, 2005 were positively affected by a before tax gain on the sale of investments of $329,000. Earnings for the 2006 second quarter increased by 406.9% compared to the 2005 period, if profit on sale of investments are eliminated.

Earnings for the three and six months ended June 30, 2006 were positively affected by a $531,000 or 85.9% increase in net interest income for the quarter and an $867,000 or 70.0% increase for the six month period. Non-interest income excluding profit on sale of investments increased by 122.0% to $322,000 for the quarter and by 114.0% to $588,000 for the six month period compared to the 2005 results. The increased non-interest income for the quarter and six months were primarily due to $134,000 and $255,000 respectively of mortgage banking revenue. Earnings were affected by a 60.3% increase for the quarter and a 58.1% increase for the six months in non-interest expenses, primarily compensation expense, other expenses, and a 100% and 144.4% increase respectively in provisions for loan losses.

FPB Financial Corp. reported the following compared to June 30, 2005:

--  Total Deposits increased $31.2 million, or 49.9%

--  Non-Interest Bearing Deposits increased $10.5 million, or 146.4%

--  Transaction Deposits increased $24.3 million, or 81.5%

--  Net Loans increased $19.7 million, or 24.7%

--  Loan Loss Reserve increased $258,000, or 65.2%

--  Total Assets increased $31.0 million, or 32.1%

--  Return on average stockholders equity increased to 10.5% for the six
    months ending June 30, 2006

--  Book value per share increased to a record of $28.61
    

FPB Financial Corp. is headquartered in Hammond, LA and is the parent company of Florida Parishes Bank. The Company's common stock is traded under the "FPBF" symbol.

                         FPB Financial Corp.

Selected Balances at June 30:         2006             2005
                                  ------------     ------------

Cash and Cash Equivalents            5,706,012        2,135,435

Investment Securities               17,076,064        9,552,464

Net Loans                           99,605,875       79,903,950

Total Assets                       127,527,522       96,535,796

Non-Interest Bearing Deposits       18,250,928        7,406,740

Interest Bearing Deposits           75,542,650       55,147,642

Transaction Accounts (Included
 in interest and non-interest
 bearing deposits)                  54,067,120       29,793,811

Brokered Deposits (Included in
 interest- bearing deposits)         4,972,080                0

FHLB Advances                       21,192,500       22,524,500

Subordinated Debentures/Trust
 Preferred Securities                3,093,000*       3,000,000

Stockholders' Equity                 7,972,802        7,481,443

Non-Performing Assets                  143,377          409,263

Loan Loss Reserve                      653,479          395,682

Book Value per Share                     28.61            26.86
*Recognizes Impact of
 Adoption of FIN46-R

For the Six Months Ended June 30:        2006             2005
                                  ------------     ------------

Net Earnings                      $    409,326      $   384,498

Earnings Per Share                $       1.56      $      1.49

Return on Average Assets                  0.67%            0.80%

Return on Average Equity                 10.49%           10.50%

Net Charge-Off Loans to
 Average Loans                           0.014%           0.010%

Average Shares Outstanding             261,971          257,954

Dividend Paid per Share           $      0.200     $      0.200



                    CONSOLIDATED STATEMENTS OF EARNINGS
                                (UNAUDITED)


                             For the Three Months     For the Six Months
                                    Ended                   Ended
                             June 30,    June 30,    June 30,    June 30,
                               2006        2005        2006        2005
                           (Unaudited) (Unaudited) (Unaudited) (Unaudited)
INTEREST INCOME:

  Mortgage loans and fees  $ 1,404,600 $   989,143 $ 2,650,513 $ 1,968,972

  Loans on deposits             26,892      13,352      50,821      26,666

  Consumer Loans                92,735      60,655     172,289     117,200

  Commercial Loans              44,825      29,008      83,305      56,363

  Lines of credit and fees      77,292      66,285     146,511     132,765

  Premium Finance Loans         70,205           0      70,205           0

  FHLB stock and other
   Investment securities       193,589      74,279     378,080     136,796

  Mortgage-backed securities    10,975       3,149      14,033       6,381

  Demand deposits               56,105      11,959     129,088      20,504
                           ----------- ----------- ----------- -----------

TOTAL INTEREST INCOME        1,977,218   1,247,830   3,694,845   2,465,647

INTEREST EXPENSE:
  Deposits                     569,420     343,066   1,059,543     653,447

  Federal Home Loan
   Bank Advances               215,528     244,725     443,590     490,223
                           ----------- ----------- ----------- -----------

Subordinated Debentures/
Trust Preferred Securities      42,915      41,625      85,830      83,249
                           ----------- ----------- ----------- -----------

TOTAL INTEREST EXPENSE         827,863     629,415   1,588,963   1,226,919
                           ----------- ----------- ----------- -----------

  NET INTEREST INCOME        1,149,355     618,415   2,105,882   1,238,728

Provisions for loan losses     150,000      75,000     220,000      90,000
                           ----------- ----------- ----------- -----------

NET INTEREST INCOME AFTER
 PROVISION FOR LOAN LOSSES     999,355     543,415   1,885,882   1,148,728
                           ----------- ----------- ----------- -----------

NON-INTEREST INCOME

Profit on sale of
 Investments                    18,491     328,880      18,491     328,880

Insurance commissions            3,488       5,746       7,027      10,975

Service charge on deposits      33,851      19,501      63,541      40,227

Mortgage Banking               134,414           0     254,999           0

Other                          150,506     119,910     262,644     223,672
                           ----------- ----------- ----------- -----------


TOTAL NON-INTEREST INCOME      340,750     474,037     606,702     603,754
                           ----------- ----------- ----------- -----------

NON-INTEREST EXPENSE

Compensation and Employee
 Benefits                      562,894     331,552   1,042,538     596,171

Occupancy and Equipment         90,204      75,069     176,597     156,942

Technology and Information
 Processing                     96,161      84,453     211,665     166,031

Professional Fees               30,871      25,193      60,925      51,756

Advertising                     12,510      11,726      25,669      34,557

Federal Insurance Expense        2,553       2,136       4,743       4,395

Stationary, Printing, &
 Supplies                       35,788      14,394      57,986      30,520

Other                          172,134      81,221     296,445     146,361
                           ----------- ----------- ----------- -----------


TOTAL NON-INTEREST EXPENSE   1,003,115     625,744   1,876,568   1,186,733
                           ----------- ----------- ----------- -----------


INCOME BEFORE INCOME TAXES     336,990     391,708     616,016     565,749

Income Tax Expense
 (Benefit)                     113,195     125,460     206,690     181,251
                           ----------- ----------- ----------- -----------

NET INCOME                 $   223,795 $   266,248 $   409,326 $   384,498
                           =========== =========== =========== ===========



                    CONSOLIDATED STATEMENTS OF CONDITION
                                (UNAUDITED)


                                            June 30, 2006   June 30, 2005
ASSETS:

Cash and Cash Equivalents                       5,706,012       2,135,435

Investment Securities                          17,076,064       9,552,464

Net Loans                                      99,605,875      79,903,952

Premises and Equipment, Net                     4,429,182       4,396,351

Other Assets                                      710,389         547,594
                                           --------------  --------------

   TOTAL ASSETS                            $  127,527,522  $   96,535,796
                                           ==============  ==============

LIABILITIES:

Deposits                                       93,793,578      62,555,038

Federal Home Loan Bank Advances                21,192,500      22,524,500

Other Liabilities                               1,475,642         974,815

Shares subject to mandatory redemption          3,093,000       3,000,000
                                           --------------  --------------

   TOTAL LIABILITIES                       $  119,554,720  $   89,054,353
                                           ==============  ==============


                                                   2006            2005
                                           --------------  --------------
STOCKHOLDERS’S EQUITY:

Common Stock                               $        3,396  $        3,395

Capital Surplus                                 3,188,232       3,150,646

Retained Earnings                               6,240,912       5,762,635

Unearned Compensation                            (169,975)       (192,982)

Treasury Stock                                 (1,227,321)     (1,227,321)

Accumulated Other Comprehensive Income            (62,442)        (14,930)
                                           --------------  --------------

Total Stockholders’ Equity                      7,972,802       7,481,443
                                           --------------  --------------

   TOTAL LIABILITIES AND
    STOCKHOLDERS EQUITY                    $  127,527,522  $   96,535,796
                                           ==============  ==============

Fritz W. Anderson II, Chairman of the Board announced today that "On July 11, 2006 (Declaration Date) the Board of Directors of FPB Financial Corp. declared a cash dividend on the common stock of the company bearing Cusip #302549 10 0. The dividend rate will be $0.120 per share and will be paid on September 25, 2006 (Payable Date) to stockholders of record September 11, 2006. (Record Date)."