FPB Financial Corp. Announces Record 2007 Third Quarter Earnings, Proposed Sale of Real Estate, and Declares Dividends

Fritz W. Anderson II, Chairman of FPB Financial Corp. (PINKSHEETS: FPBF), the holding company for Florida Parishes Bank, announced record earnings for the quarter ended September 30, 2007.

Net income for the three months ended September 30, 2007 was $339,000 ($1.00 per common share; $0.96 per diluted common share), up 42.4% from $238,000 ($0.90 per common share; $0.85 per diluted common share), for the 2006 comparable period. Net income for the nine months ended September 30, 2007 was $925,000 ($3.01 per common share; $2.89 per diluted common share), up 43.0% from $647,000 ($2.46 per common share; $2.34 per diluted common share), for the 2006 comparable period.

Earnings for the three and nine months ended September 30, 2007 were positively affected by a $155,000 or 12.8% increase in net interest income for the quarter and a $574,000 or 17.3% increase for the nine month period. Non-interest income increased by 61.4% to $585,000 for the quarter and by 64.3% to $1,592,000 for the nine month period compared to the 2006 results. The increased non-interest income for the quarter and nine months were primarily due to increased revenue from deposit service charges and fees, mortgage banking fees, fees on Premium Finance loans, and a $50,000 gain on sale of investments. Earnings were affected by a 21.0% increase for the quarter and a 23.7% increase for the nine months in non-interest expenses, primarily compensation expense, occupancy and equipment, professional fees, and a 21.6% increase in provisions for loan losses.

Stockholders equity increased by 45.3% primarily due to the issuance of 69,530 shares of common stock at $38.00 per share in a private placement offering which closed April 30, 2007.

FPB Financial Corp. has entered into a definitive agreement to sell on or before January 10, 2008 a parcel of real estate that was formerly used through July 15, 2004 as the Bank's main office. Under the terms of the executed purchase agreement FPB Financial Corp. would recognize an after tax gain of approximately $450,000 ($1.28 per diluted common share), although there can be no assurance that this sale will be completed.

FPB Financial Corp. reported the following compared to September 30, 2006:

--  Net Income increased $278,000, or 43.0%

--  Stockholders equity increased $3.8 million, or 45.3%

--  Return on average stockholders equity increased to 11.7%

--  Book value per share increased to $34.04, or 15.5%

--  Non-Interest Income increased $623,000, or 64.3%

--  Dividends paid increased $29,000, or 33.0%

--  Total Deposits increased $5.8 million, or 5.9%

--  Non-Maturity Deposits increased $1.9 million, or 3.4%

--  Total Assets increased $10.6 million, or 7.9%

--  Net Loans increased $5.3 million, or 5.0%

--  Loan Loss Reserve increased $611,000, or 77.0%
    

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.

                                      Sept. 30,     June 30,    Sept. 30,
Selected Balances (Unaudited)            2007         2007         2006
                                     ------------ ------------ ------------

Cash and Cash Equivalents               9,724,324   13,821,525    6,132,367

Investment and mortgage-backed
 securities                            16,148,075   16,640,174   15,725,027

Net Loans                             111,247,708  105,535,609  105,942,653

Total Assets                          144,750,803  142,758,252  134,110,645

Non-Interest Bearing Deposits          14,101,700   15,005,429   11,795,259

Interest Bearing Deposits              90,390,785   92,292,961   86,886,376

Non-Maturity Deposits (Included in
 interest and non-interest bearing
 deposits)                             58,038,501   61,589,507   56,135,137

Brokered Deposits (Included in
 interest-bearing deposits)             5,347,310    5,515,692    4,902,739

FHLB Advances                          23,961,911   19,567,421   22,722,500

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

Stockholders’ Equity                   11,975,504   11,730,574    8,243,937

Non-Performing Assets                       5,436            0       93,766

Loan Loss Reserve                       1,405,411    1,267,082      793,942

Book Value per Share                        34.04        33.39        29.48


                    CONSOLIDATED STATEMENTS OF EARNINGS
                                 (UNAUDITED)

                          For the Three Months      For the Nine Months
                                  Ended                     Ended
                         Sept. 30,    Sept. 30,    Sept. 30,    Sept. 30,
                            2007         2006         2007         2006
                        (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)

INTEREST INCOME:

  Mortgage loans and
   fees                 $ 1,683,927  $ 1,550,872  $ 4,931,914  $ 4,201,385

  Premium Finance Loans     187,017      123,416      508,718      193,621

  Consumer Loans            134,464      104,576      378,282      276,865

  Lines of credit and
   fees                     111,329       86,756      298,771      233,267

  Commercial Loans           63,825       53,894      196,161      137,199

  Loans on deposits          30,408       26,327       92,520       77,148

  FHLB stock and other
   Investment
   securities               185,737      182,519      543,890      560,599

  Demand deposits            73,423       49,270      268,376      178,358

  Mortgage-backed
   securities                21,252       14,371       63,108       28,404
                        -----------  -----------  -----------  -----------


TOTAL INTEREST INCOME     2,491,382    2,192,001    7,281,740    5,886,846

INTEREST EXPENSE:
  Deposits                  849,934      712,112    2,575,956    1,771,655

  Federal Home Loan
   Bank Advances            228,396      221,496      682,198      665,086

Subordinated
 Debentures/Trust
 Preferred Securities        42,915       42,915      128,746      128,745
                        -----------  -----------  -----------  -----------

TOTAL INTEREST EXPENSE    1,121,245      976,523    3,386,900    2,565,486
                        -----------  -----------  -----------  -----------

  NET INTEREST INCOME     1,370,137    1,215,478    3,894,840    3,321,360

Provisions for loan
 losses                     150,000      150,000     450,000       370,000
                        -----------  -----------  -----------  -----------

NET INTEREST INCOME
 AFTER PROVISION FOR
 LOAN LOSSES              1,220,137    1,065,478    3,444,840    2,951,360
                        -----------  -----------  -----------  -----------

NON-INTEREST INCOME

Service charge on
 deposits                   201,263      136,617      578,112      371,599

Mortgage Banking            155,811      138,225      447,067      393,224

Interchange Fees             48,922       35,202      139,936       96,600

Premium Finance              39,506       23,397      108,279       30,974

Profit on sale of
 Investments                 49,875            0       49,875       18,491

Other                        89,698       28,736      269,181       57,990
                        -----------  -----------  -----------  -----------

TOTAL NON-INTEREST
 INCOME                     585,075      362,177    1,592,450      968,878
                        -----------  -----------  -----------  -----------

NON-INTEREST EXPENSE

Compensation and
 Employee Benefits          752,532      605,126    2,136,758    1,647,664

Occupancy and Equipment     121,817       98,797      316,864      275,394

Technology and
 Information Processing     108,610       82,943      284,289      294,608

Professional Fees            67,007       51,833      179,589      112,758

Stationary, Printing, &
 Supplies                    33,186       27,792       97,564       85,778

Advertising                  25,220       14,502       58,235       40,171

Federal Deposit
 Insurance                    2,905        2,715        8,761        7,458

Other                       183,932      186,324      563,847      482,768
                        -----------  -----------  -----------  -----------

TOTAL NON-INTEREST
  EXPENSE                 1,295,209    1,070,032    3,645,907    2,946,599
                        -----------  -----------  -----------  -----------

INCOME BEFORE INCOME
 TAXES                      510,003      357,623    1,391,383      973,639

Income Tax Expense
 (Benefit)                  170,650      119,867      465,900      326,557
                        -----------  -----------  -----------  -----------

NET INCOME                  339,353  $   237,756      925,483  $   647,082
                        ===========  ===========  ===========  ===========

Earnings Per Share      $      1.00  $      0.90  $      3.01  $      2.46

Diluted Earnings Per
 Share                  $      0.96  $      0.85  $      2.89  $      2.34

Dividend Paid per Share $      0.12  $      0.12  $      0.36  $      0.32

Return on Average
 Assets                        0.97%        0.74%        0.89%        0.69%

Return on Average
 Equity                       11.43%       11.73%       11.70%       10.91%

Net Charge-Off
 (Recoveries) to
 Average Loans                0.010%       0.010%       0.024%       0.020%



                   CONSOLIDATED STATEMENTS OF CONDITION
                                (UNAUDITED)

                            Sept. 30, 2007  June 30, 2007   Sept. 30, 2006
ASSETS:

Cash and Cash Equivalents        9,724,324      13,821,525       6,132,367

Investment Securities           16,148,075      16,640,174      15,725,027

Net Loans                      111,247,708     105,535,609     105,942,653

Premises and Equipment, Net      5,930,160       5,930,061       5,482,475

Other Assets                     1,700,536         830,883         828,123
                            --------------  --------------  --------------

   TOTAL ASSETS             $  144,750,803  $  142,758,252  $  134,110,645
                            ==============  ==============  ==============

LIABILITIES:

Deposits                       104,492,484     107,298,390      98,681,635

Federal Home Loan Bank
 Advances                       23,961,911      19,567,421      22,722,500

Other Liabilities                1,227,904       1,068,867       1,369,573

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

   TOTAL LIABILITIES        $  132,775,299  $  131,027,678  $  125,866,708
                            ==============  ==============  ==============

STOCKHOLDERS’ EQUITY:

Common Stock                $        4,128  $        4,124  $        3,404

Capital Surplus                  5,905,541       5,886,580       3,211,512

Retained Earnings                7,458,948       7,161,257       6,445,852

Unearned Compensation             (139,709)       (144,807)       (164,878)

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

Accumulated Other
 Comprehensive Income              (26,083)         50,741         (24,632)
                            --------------  --------------  --------------

Total Stockholders’ Equity      11,975,504      11,730,574       8,243,937
                            --------------  --------------  --------------

   TOTAL LIABILITIES AND
   STOCKHOLDERS EQUITY      $  144,750,803  $  142,758,252  $  134,110,645
                            ==============  ==============  ==============

Fritz W. Anderson II, Chairman of the Board announced today that “On October 11, 2007 (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 increased to $0.36 per share. This dividend rate is composed of a regular quarterly dividend rate of $0.12 per share and a special year-end dividend of $0.24 per share and will be paid on December 24, 2007 (Payable Date) to stockholders of record December 7, 2007. (Record Date).”

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