FPB Financial Corp. Announces 2008 Second Quarter Earnings and Declares Dividends

FPB Financial Corp. (PINKSHEETS: FPBF), the holding company for Florida Parishes Bank, announced earnings for the quarter ended June 30, 2008.

Net income for the three months ended June 30, 2008 was $274,000; ($0.77 per diluted common share), down 9.3% from $302,000 ($0.92 per diluted common share), for the 2007 comparable period. Net income for the six months ended June 30, 2008, was $682,000 ($1.92 per diluted common share), up 16.4% from $586,000 ($1.92 per diluted common share), for the 2007 comparable period. Earnings were affected by an increase of $287,000 or 21.7% for the quarter and $648,000 or 25.7% for the six months in net interest income, a decrease of 46.7% and 63.3% in provisions for loan losses and an increase of 27.8% for the quarter and 29.4% for the six months in non-interest expense.

The increased net interest income was due to increases in net interest earning assets and an increase in net interest margin. The decrease in provisions for loan losses was primarily due to the Bank exceeding our internal matrix calculation on allowance for loan losses. The increases in non-interest expenses was due primarily to compensation, occupancy and technology expenses. Non-interest income was affected by reduced mortgage banking revenue and by a loss on investment trading accounts.

In comparison to June 30, 2007 both non-performing loans and net loan charge-offs increased. Total stockholders' equity increased by $562,000, although accumulated other comprehensive income declined by $564,000 over the twelve month period.

On May 6, 2008 Florida Parishes Bank was notified by the Asset Management Fund (AMF) that the AMF Ultra Short Mortgage Fund (ASARX) Redemption-In-Kind Provision was activated. A review is now in process to determine if the Bank's available-for-sale investment in this fund is other than temporarily impaired. If this investment had been declared impaired as of June 30, 2008, the Bank would have recognized an after tax charge to earnings of $391,000 ($1.10 per diluted common share). FPB Financial Corporation can give no assurance if, when, or the outcome of the impairment review now being conducted on the AMF Investment.

FPB Financial Corp. reported the following compared to June 30, 2007:

--  Net Income increased $96,000, or 16.4%

--  Tangible stockholders' equity increased $562,000, or 4.8%

--  Tangible book value per share increased to $34.63, or 3.7%

--  Dividends paid to shareholders increased $23,000, or 30.7%

--  Total Deposits increased  $11.2 million, or 10.4%

--  Non-maturity deposits increased $2.3 million, or 3.7%

--  Total Assets increased $15.4 million, or 10.8%

--  Net Loans increased $16.6 million, or 15.7%

--  Allowance for Loan Losses increased $265,000, or 20.9%
    

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 & Ratios          June 30,      March 31,     June 30,
 (Unaudited)                          2008          2008          2007
                                  ------------  ------------  ------------

Cash and Cash Equivalents         $  8,850,068  $  6,446,740  $ 13,821,525


Investment and mortgage-backed
 securities                         19,030,464    33,736,516    16,640,174

Net Loans                          122,113,116   124,957,126   105,535,609

Total Assets                       158,153,204   172,359,299   142,758,252

Non-Interest Bearing Deposits       16,427,361    14,182,920    17,062,323

Interest Bearing Deposits          102,080,661   100,045,216    90,236,067

Non-Maturity Deposits (Included
 in interest and non-interest
 bearing deposits)                  63,874,645    63,669,896    61,589,507

Brokered Deposits (Included in
 interest-bearing deposits)          6,533,453     6,414,120     5,515,692

FHLB Advances                       23,626,361    42,812,066    19,567,421

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

Tangible Stockholders’ Equity       12,292,251    12,450,397    11,730,574

Non-Performing Assets                1,425,143     1,061,284             0

Allowance for Loan Losses            1,532,050     1,538,528     1,267,082

Allowance for Loan Losses to
 Total Loans                              1.26%         1.22%         1.20%

Non-Performing Loans to Total
 Loans                                    1.17%         0.85%         0.00%

Tangible Book Value per Share            34.63         35.07         33.39




                      CONSOLIDATED STATEMENTS OF EARNINGS
                                   (UNAUDITED)


                          For the Three Months       For the Six Months
                                  Ended                     Ended
                          June 30,     June 30,     June 30,     June 30,
                            2008         2007         2008         2007
                        (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)

INTEREST INCOME:

  Mortgage loans        $ 1,869,833  $ 1,663,138  $ 3,787,428  $ 3,247,987

  Premium Finance Loans     171,936      169,952      343,002      321,701

  Consumer Loans            157,202      125,915      303,468      243,816

  Lines of credit            97,272       94,519      199,230      187,442

  Commercial Loans           68,588       64,891      133,866      132,336

  Loans on deposits          33,898       31,732       67,540       62,112

  FHLB stock and other
   Investment securities    210,418      179,546      564,878      358,153

  Mortgage-backed
   securities                48,104       23,885       66,162       41,856

  Demand deposits            24,360      125,679       57,141      194,955
                        -----------  -----------  -----------  -----------

TOTAL INTEREST INCOME     2,681,611    2,479,257    5,522,715    4,790,358

INTEREST EXPENSE:
Deposits                    712,739      891,743    1,589,996    1,726,022

Federal Home Loan Bank
 Advances                   312,828      218,212      674,183      453,801

Subordinated Debentures/
Trust Preferred
 Securities                  42,915       42,915       85,831       85,831
                        -----------  -----------  -----------  -----------

TOTAL INTEREST EXPENSE    1,068,482    1,152,870    2,350,010    2,265,654
                        -----------  -----------  -----------  -----------

NET INTEREST INCOME       1,613,129    1,326,387    3,172,705    2,524,704

Provisions for loan
 losses                      80,000      150,000      110,000      300,000
                        -----------  -----------  -----------  -----------

NET INTEREST INCOME
 AFTER PROVISION FOR
 LOAN LOSSES              1,533,129    1,176,387    3,062,705    2,224,704
                        -----------  -----------  -----------  -----------

NON-INTEREST INCOME

Service charge on
 deposits                   183,031      186,843      379,278      376,849

Mortgage Banking            152,666      176,181      293,652      335,169

Interchange Fees             57,966       51,406      111,520       92,467

Premium Finance              41,376       33,515       89,884       68,773

Loan Fees and Charges        40,916       31,256       86,870       66,700

Gain/(Loss) on
 Investment Trading
 Accounts                   (55,666)           0      (25,968)           0

Other                        27,638       26,393       69,724       67,422
                        -----------  -----------  -----------  -----------

TOTAL NON-INTEREST
 INCOME                     447,927      505,594    1,004,960    1,007,380
                        -----------  -----------  -----------  -----------

NON-INTEREST EXPENSE

Compensation and
 Employee Benefits          909,105      722,556    1,794,571    1,384,227

Occupancy, Property
 Taxes, and Equipment       158,474       96,434      293,595      197,374

Technology and
 Information Processing     135,459       94,496      249,868      175,679

Federal Deposit Insurance,
 Supervisory Fees/Taxes      55,911       36,594      104,063       73,173

Professional Fees            43,084       38,285       87,109       73,419

Other                       267,157      240,056      512,871      446,832
                        -----------  -----------  -----------  -----------

TOTAL  NON-INTEREST
 EXPENSE                  1,569,190    1,228,421    3,042,077    2,350,704
                        -----------  -----------  -----------  -----------

INCOME BEFORE INCOME
 TAXES                      411,866      453,560    1,025,588      881,380

Income Tax Expense
 (Benefit)                  138,010      151,850      343,535      295,250
                        -----------  -----------  -----------  -----------

NET INCOME              $   273,856  $   301,710  $   682,053  $   586,130
                        ===========  ===========  ===========  ===========

Earnings Per Share      $      0.79  $      0.96  $      1.99  $      2.01

Diluted Earnings Per
 Share                  $      0.77  $      0.92  $      1.92  $      1.92

Dividend Paid per Share $      0.14  $      0.12  $      0.28  $      0.24

Return on Average Assets       0.67%        0.86%        0.83%        0.85%

Return on Average
 Tangible Equity               8.88%       11.76%       11.12%       12.29%

Net Interest Margin            4.05%        4.04%        3.98%        3.93%

Net Charge-Off/
(Recoveries) to
 Average Loans                0.070%       0.018%       0.074%       0.011%




                     CONSOLIDATED STATEMENTS OF CONDITION
                                  (UNAUDITED)


                            June 30, 2008   March 31, 2008  June 30, 2007
ASSETS:

Cash and Cash Equivalents        8,850,068       6,446,740      13,821,525

Investment Securities           19,030,464      33,736,516      16,640,174

Net Loans                      122,113,116     124,957,126     105,535,609

Premises and Equipment, Net      7,240,364       6,292,861       5,930,061

Other Assets                       919,192         926,056         830,883
                            --------------  --------------  --------------

  TOTAL ASSETS              $  158,153,204  $  172,359,299  $  142,758,252
                            ==============  ==============  ==============

LIABILITIES:

Deposits                       118,508,022     113,085,846     107,298,390

Federal Home Loan Bank
 Advances                       23,626,361      42,812,066      19,567,421

Other Liabilities                  633,570         917,990       1,068,867

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

  TOTAL LIABILITIES         $  145,860,953  $  159,908,902  $  131,027,678
                            ==============  ==============  ==============

STOCKHOLDERS’ EQUITY:

Common Stock                $        4,159  $        4,159  $        4,124

Capital Surplus                  6,000,973       5,976,100       5,886,580

Retained Earnings                8,140,876       7,916,125       7,161,257

Unearned Compensation             (112,837)       (123,890)       (144,807)

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

Accumulated Other
 Comprehensive Income             (513,599)        (94,776)         50,741
                            --------------  --------------  --------------

Total Stockholders’ Equity      12,292,251      12,450,397      11,730,574
                            --------------  --------------  --------------

  TOTAL LIABILITIES
   AND STOCKHOLDERS EQUITY  $  158,153,204  $  172,359,299  $  142,758,252
                            ==============  ==============  ==============

Fritz W. Anderson II, Chairman of the Board, announced today that "On July 17, 2008 (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 $0.14 per share and will be paid on September 25, 2008 (Payable Date) to stockholders of record September 10, 2008. (Record Date)."