WESTLAKE VILLAGE, CA -- (Marketwire) -- 07/21/10 -- First California Financial Group, Inc. (NASDAQ: FCAL), the holding company of First California Bank, today reported financial results for the second quarter ended June 30, 2010. The company also announced that it will host a conference call tomorrow, Thursday, July 22, 2010 at 11 a.m. Pacific (2:00 p.m. Eastern) to review its financial results.

For the 2010 second quarter, net income was $147,000 compared with $217,000 for the same quarter of the prior year. Preferred dividends were $312,500 for both the second quarter of 2010 and 2009. Net loss available to common shareholders was $166,000, or $0.01 per share, compared with $96,000, or $0.01 per share, for the 2009 second quarter.

"During the second quarter, we made excellent progress in several key areas of our business," said C. G. Kum, President and Chief Executive Officer. "We achieved strong growth in core deposits and continued to make significant progress in asset quality trends. Moreover, the results of the company enabled the absorption of credit losses and a buildup of our loan loss reserves."

2010 Second Quarter Financial Highlights:

-- Loans past due 30 to 89 days significantly declined to $1.1 million at
   June 30, 2010 from $14.6 million at December 31, 2009;
-- Nonaccrual loans decreased to $13.2 million at June 30, 2010 from $40.0
   million at December 31, 2009;
-- Net loan charge-offs for the first half of 2010, annualized, narrowed to
   0.78 percent of average loans from 0.89 percent for 2009 year;
-- The allowance for loans increased to 1.85% of total loans at June 30,
   2010 from 1.76% at December 31, 2009;
-- Core deposits grew to 79% of total deposits at June 30, 2010 from 74% at
   December 31, 2009;
-- Total risk-based capital ratio climbed to 17.32% at June 30, 2010 from
   12.69% at December 31, 2009, largely as the result of the company's
   capital raise completed during the first quarter of 2010.

Asset Quality

Nonaccrual loans decreased to $13.2 million at June 30, 2010 from $40.0 million at December 31, 2009. The decrease was mainly due to the completed foreclosure of a $21.0 million completed commercial construction project. In addition, the company benefited from $5.3 million of reductions from pay downs and pay offs and $2.0 million of reductions from loans returned to accruing status as a result of the borrowers' payment performance and improved financial health. Subsequent to the end of the quarter, the company received full payment on a $4.5 million nonaccrual completed residential construction loan.

Foreclosed property increased to $27.9 million at June 30, 2010 from $4.9 million at December 31, 2009. The increase reflects the addition of the completed commercial construction project, which gives the company control of the project and advances resolution of a complex and difficult credit. The company had four foreclosed properties at June 30, 2010 compared with one property at December 31, 2009. A $1.0 million foreclosed property is currently in escrow and is due to close in July.

Consistent with other asset quality trends, net loan charge-offs declined to $912,000 for the 2010 second quarter from $2.7 million for the 2010 first quarter. Net loan charge-offs for the first half of 2010, annualized, declined to 0.78% of average loans from 0.89% for the 2009 year.

The company continued to downsize its construction and land portfolio, which decreased 31% to $59.9 million at June 30, 2010 from $86.6 million at December 31, 2009. Construction and land loans represented 7% of the loan portfolio at June 30, 2010, down from 9% at December 31, 2009. The company's $389.1 million commercial mortgage portfolio continued to perform well with only $755,000, or two loans, categorized as past due or nonaccrual at the end of the 2010 second quarter.

The allowance for loan losses was $16.5 million at both June 30, 2010 and December 31, 2009. The provision for loan losses was $1.8 million for the second quarter of 2010 compared with $1.1 million for the second quarter of 2009 and $1.8 million for the first quarter of 2010. As a percentage of total loans, the allowance was 1.85% of total loans at the end of the 2010 second quarter and 1.76% at the end of 2009.

"The improvement in our asset quality trends, which began in the fourth quarter of 2009, was truly evident in the recently completed second quarter of 2010," Kum said. "Our focus on credit underwriting and administration has allowed us to resolve problem assets quickly and with low levels of loss. Notwithstanding these trends, we believe the higher allowance percentage reflects the economic adversity confronting our borrowers and further protects our capital in these uncertain times. The outlook for business activity and unemployment across the nation, and particularly in California, causes us to remain cautious."

Results of Operations

For the 2010 second quarter, net interest income before the provision for loan losses declined to $10.8 million from $11.9 million for the prior-year quarter. Net interest margin (on a taxable equivalent basis) was 3.40% compared with 3.75% for the same period a year ago. The decline in the net interest income and net interest margin principally reflects a higher level of lower-yielding earning assets. Net interest income and net interest margin for the 2010 second quarter increased modestly from the 2010 first quarter.

Noninterest income for the 2010 second quarter was $2.0 million compared with $2.7 million for the prior-year period. 2010 second quarter results included securities gains of $130,000 and a valuation gain on the $21.0 million foreclosed property of $691,000. 2009 second quarter results included securities gains of $2.0 million and impairment losses of $565,000.

Noninterest expenses declined to $10.8 million for the 2010 second quarter from $12.9 million for the second quarter a year ago. Noninterest expenses for the 2010 second quarter increased from the 2010 first quarter due to higher foreclosed property activities. The year ago second quarter results included an FDIC special insurance assessment of $675,000 and a market loss on loans held-for-sale of $709,000. The company expects noninterest expenses to be lower in the second half of the year as problem asset collection-related costs should decline.

At June 30, 2010, loans were $891.5 million, down $47.7 million or 5% from $939.2 million at year-end 2009. The decline reflects the completion of the foreclosure on the company's $21.0 million commercial office construction loan and generally weak loan demand in our markets. Usage under the company's commercial lines of credit declined to 53% at the end of the 2010 second quarter from 59% at year-end 2009. The company originated $81.1 million of new loan commitments in the first half of 2010; however, these originations were more than offset by the managed reduction in riskier construction and land loans and lower line usage by customers. The company anticipates net loan growth in the second half of the year as construction and land loan payoffs and paydowns will be proportionally smaller on this portfolio of loans.

Deposits as of June 30, 2010 were $1.09 billion, down $32 million or 3% from $1.12 billion as of December 31, 2009. The decline reflects the $61 million managed reduction in wholesale certificates of deposits. Core non-maturity deposits (checking, savings and money market deposits) however, increased $45 million year to date.

Liquidity and Capital Resources

At June 30, 2010, First California had $97.9 million of interest-bearing deposits with other banks and $286.1 million of securities. These liquid resources were $14.6 million or 4% higher than at the end of 2009 and reflects the increase in the company's core deposits, proceeds from the March 2010 common stock offering and low loan demand.

Core deposits, which exclude brokered time deposits and deposits greater than $100,000, continue to be First California's primary source of funds. Core deposits increased to 79% of total deposits at the end of the 2010 second quarter from 74% at year-end 2009. With the company's strong liquidity position and stable core deposit relationships, First California eliminated all $25.7 million of brokered time deposits and reduced State of California time deposits by $35.0 million and FHLB borrowings by $14.8 million.

Shareholders' equity was $198.4 million at the close of the 2010 second quarter compared with $157.2 million at the end of 2009. The company's book value per common share was $6.18 at June 30, 2010 compared with $11.45 at December 31, 2009. Tangible book value per common share was $3.64 at June 30, 2010 compared with $5.23 at December 31, 2009. The increase in shareholders' equity and the decline in the per share amounts reflect the successful completion of a common stock offering in March 2010.

At June 30, 2010, First California's preliminary total risk-based and leverage capital ratios were 17.32% and 11.56%, respectively. At the end of the 2009 year, the total risked-based capital ratio was 12.69% and the leverage capital ratio was 8.52%. The company's ratio of tangible common equity to tangible assets was 7.42% at quarter end and 4.38% at year-end 2009. The increase in the ratios principally reflects the increase in common equity from the March 2010 stock offering. Total assets were $1.45 billion compared with $1.46 billion at December 31, 2009.

Kum concluded: "We successfully completed a follow-on common stock offering in March and resolved problem assets in the recently completed quarter, both of which fortified our strong balance sheet. The company has a strong origination pipeline and our strengths and successes allow us to attract talented personnel and capture new deposit and lending relationships. We have reduced operating expenses to remain efficient in the current revenue-challenged environment of low interest rates and low loan demand. All of these actions position us for profitable growth when the economy improves and to take advantage of the dislocation in the Southern California banking sector."

Use of Non-GAAP Financial Measures

This news release includes "non-GAAP financial measures" within the meaning of the Securities and Exchange Commission rules. Tangible common equity as a percentage of tangible assets is a non-GAAP financial measure. Tangible common equity to tangible assets represents tangible common equity, calculated as total shareholders' equity less preferred stock and related dividend and accretion of preferred stock discount, goodwill and intangible assets, net, divided by total assets less goodwill and other intangible assets, net. Management believes that this measure is useful when comparing banks with preferred stock due to TARP funding to banks without preferred stock on their balance sheet and for evaluating a company's capital levels. This information is being provided in response to market participant interest in this financial metric. This information is not intended to be considered in isolation or as a substitute for the relevant measures calculated in accordance with U.S. GAAP. The reconciliation of this non-GAAP financial measure to GAAP financial measure is provided as an attachment to the financial tables.

Conference Call and Webcast

First California will hold a conference call on Thursday, July 22, 2010 at 11 a.m. Pacific (2 p.m. Eastern) to discuss the company's 2010 second quarter and year-to-date financial performance. Investment professionals are invited to participate in the live call by dialing 877-317-6789 (domestic), or 412-317-6789 (international) and requesting the First California conference call. Other interested parties are invited to listen to the live call through a live, listen-only audio Internet broadcast at www.fcalgroup.com. Listeners are encouraged to visit the Web site at least 15 minutes prior to the start of the call to register, download and install any necessary audio software. For those who are not available to listen to the live broadcast, the call will be archived on the same Web site for one year.

About First California

First California Financial Group, Inc. (NASDAQ: FCAL) is the holding company of First California Bank. Celebrating 31 years of business in 2010, First California is a regional force of strength and stability in Southern California banking with assets of $1.45 billion and led by an experienced team of bankers. The company specializes in serving the comprehensive financial needs of the commercial market, particularly small- and middle-sized businesses, professional firms and commercial real estate development and construction companies. Committed to providing the best client service available in its markets, First California offers a full line of quality commercial banking products through 17 full-service branch offices in Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura counties. The holding company's Web site can be accessed at www.fcalgroup.com. For additional information on First California Bank's products and services, visit www.fcbank.com.

Forward-Looking Information

This press release contains certain forward-looking information about First California that is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements, and include statements related to the maintenance of First California's asset quality and capital position, the company's ability to enhance efficiencies and manage costs and the expected continued progress in consolidating operations and the benefits of those activities, the monitoring of and management of risks in First California's loan portfolio, the adequacy of sources of liquidity to support First California's operations and strategic plans, the monitoring of and response to changing market conditions, and the status of the economy in the Southern California communities served by First California. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of First California. First California cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. Risks and uncertainties include, but are not limited to, revenues are lower than expected, credit quality deterioration which could cause an increase in the provision for credit losses, First California's ability to complete future acquisitions, successfully integrate such acquired entities, or achieve expected beneficial synergies and/or operating efficiencies within expected time-frames or at all, changes in consumer spending, borrowing and savings habits, technological changes, the cost of additional capital is more than expected, a change in the interest rate environment reduces interest margins, asset/liability repricing risks and liquidity risks, general economic conditions, particularly those affecting real estate values, either nationally or in the market areas in which First California does or anticipates doing business are less favorable than expected, a slowdown in construction activity, recent volatility in the credit or equity markets and its effect on the general economy, loan delinquency rates, the ability of First California to retain customers, demographic changes, demand for the products or services of First California as well as their ability to attract and retain qualified people, competition with other banks and financial institutions, and other factors. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, First California's results could differ materially from those expressed in, or implied or projected by such forward-looking statements. First California assumes no obligation to update such forward-looking statements. For a more complete discussion of risks and uncertainties, investors and security holders are urged to read the section titled "Risk Factors" in First California's Annual Report on Form 10-K and any other reports filed by it with the Securities and Exchange Commission ("SEC"). The documents filed by First California with the SEC may be obtained at the SEC's website at www.sec.gov. These documents may also be obtained free of charge from First California by directing a request to: First California Financial Group, Inc., 3027 Townsgate Road, Suite 300, Westlake Village, CA 91361. Attention: Investor Relations. Telephone (805) 322-9655.

(Financial Tables Follow)

                     First California Financial Group
                  Unaudited Quarterly Financial Results

(in thousands
 except for
 share data
 and ratios)
As of or
 for the
 quarter
 ended      30-Jun-10    31-Mar-10    31-Dec-09    30-Sep-09    30-Jun-09
           -----------  -----------  -----------  -----------  -----------

Income
 statement
 summary
Net
 interest
 income    $    10,806  $    10,673  $    11,091  $    11,396  $    11,897
Service
 charges,
 fees &
 other
 income          1,133        1,079        1,232        1,291        1,304
Operating
 expenses        9,866        9,422       10,372       10,684       10,826
Provision
 for loan
 losses          1,766        1,754        6,350        4,117        1,110
Foreclosed
 property
 (gain)/
 loss &
 expense          (223)          78        1,121          193          249
Amortization
 of
 intangible
 assets            417          416          416          417          417
Gain on
 securities
 trans-
 actions           130          132        2,159        1,639        2,000
Impairment
 loss on
 securities          -           18          942            -          565
Market
 loss on
 loans
 held-for-
 sale                -            -            -            -          709
FDIC
 special
 assessment          -            -            -            -          675
           -----------  -----------  -----------  -----------  -----------
Income
 (loss)
 before
 tax               243          196       (4,719)      (1,085)         650
Tax
 expense
 (benefit)          96           79       (1,855)        (949)         433
           -----------  -----------  -----------  -----------  -----------
Net income
 (loss)    $       147  $       117  $    (2,864) $      (136) $       217
           ===========  ===========  ===========  ===========  ===========

Balance
 sheet
 data
Total
 assets    $ 1,452,999  $ 1,440,267  $ 1,459,821  $ 1,469,628  $ 1,448,456
Share-
 holders'
 equity        198,384      196,835      157,226      161,058      159,116
Common
 share-
 holders'
 equity        173,985      172,550      133,056      137,002      135,174
Earning
 assets      1,275,540    1,278,641    1,308,628    1,304,625    1,282,497
  Loans        891,541      919,304      939,246      940,852      940,209
  Securities   286,100      293,081      349,645      302,378      245,858
  Federal
   funds
   sold &
   other        97,899       66,166       19,737       61,395       96,430
Interest-
 bearing
 funds         906,883      929,495      977,358    1,002,776      987,048
  Interest-
   bearing
   deposits    751,354      769,229      807,105      827,036      804,071
  Borrowings   128,750      133,500      143,500      149,000      156,250
  Junior
   subordinated
   debt         26,779       26,766       26,753       26,740       26,727
Goodwill
 and other
 intangibles    71,468       71,884       72,301       72,717       73,134
Deposits     1,092,457    1,075,495    1,124,715    1,125,031    1,096,679

Asset
 quality
 data &
 ratios
Loans past
 due 30 to
 89 days &
 accruing  $     1,078  $     2,520  $    14,592  $     7,314  $     8,203
Loans past
 due 90
 days &
 accruing            -            -          200        2,970          299
Nonaccruing
 loans          13,192       37,034       39,958       39,330       26,957
           -----------  -----------  -----------  -----------  -----------
Total past
 due &
 nonaccrual
 loans     $    14,270  $    39,554  $    54,750  $    49,614  $    35,459
           ===========  ===========  ===========  ===========  ===========

Repossessed
 personal
 property  $         -  $         -  $         -  $         -  $        61
Other real
 estate
 owned          27,850        5,997        4,893        6,120        6,767
           -----------  -----------  -----------  -----------  -----------
Total
 foreclosed
 property  $    27,850  $     5,997  $     4,893  $     6,120  $     6,828
           ===========  ===========  ===========  ===========  ===========

Net loan
 charge-
 offs      $       912  $     2,661  $     1,981  $     3,935  $       430
Allowance
 for loan
 losses    $    16,452  $    15,598  $    16,505  $    12,137  $    11,955
Allowance
 for loan
 losses to
 loans            1.85%        1.70%        1.76%        1.29%        1.27%

Common
 shareholder
 data
Basic
 earnings
 (loss) per
 common
 share     $     (0.01) $     (0.02) $     (0.27) $     (0.04) $     (0.01)
Diluted
 earnings
 (loss) per
 common
 share     $     (0.01) $     (0.02) $     (0.27) $     (0.04) $     (0.01)
Book value
 per
 common
 share     $      6.18  $      6.12  $     11.45  $     11.78  $     11.62
Tangible
 book
 value per
 common
 share     $      3.64  $      3.57  $      5.23  $      5.53  $      5.33
Shares
 outstand-
 ing        28,175,564   28,182,048   11,622,893   11,626,213   11,633,289
Basic
 weighted
 average
 shares     28,181,602   12,910,057   11,625,386   11,630,928   11,633,289
Diluted
 weighted
 average
 shares     28,181,602   12,910,057   11,625,386   11,630,298   11,633,289

Selected
 ratios
Return on
 average
 assets           0.04%        0.03%       -0.77%       -0.04%        0.06%
Return on
 average
 equity           0.30%        0.28%       -7.08%       -0.34%        0.54%
Equity to
 assets          13.65%       13.67%       10.77%       10.96%       10.99%
Tangible
 equity to
 tangible
 assets           9.19%        9.13%        6.12%        6.32%        6.25%
Tangible
 common
 equity to
 tangible
 assets           7.42%        7.36%        4.38%        4.60%        4.51%
Efficiency
 ratio           81.82%       80.99%      100.91%       85.73%       98.66%
Net interest
 margin (tax
 equivalent)      3.40%        3.39%        3.35%        3.50%        3.75%
Total risk-based
 capital ratio:
  First
   California
   Bank          16.67%       16.38%       12.18%       11.62%       11.54%
  First
   California
   Financial
   Group, Inc.   17.32%       17.08%       12.69%       12.47%       12.48%





                     First California Financial Group
                  Unaudited Quarterly Financial Results


                                    Three months ended   Six months ended
                                         June 30,            June 30,
                                    ------------------- ------------------
                                      2010      2009      2010      2009
                                    --------- --------  --------  --------
 (in thousands, except per share
  data)
 Interest income:
    Interest and fees on loans      $  12,819 $ 13,386  $ 25,806  $ 25,813
    Interest on securities              1,508    3,431     3,097     7,028
    Interest on federal funds sold
     and interest bearing deposits         59      235        79       290
                                    --------- --------  --------  --------
         Total interest income         14,386   17,052    28,982    33,131
                                    --------- --------  --------  --------
 Interest expense:
    Interest on deposits                1,884    3,214     4,056     6,581
    Interest on borrowings              1,257    1,502     2,569     3,057
    Interest on junior subordinated
     debentures                           439      439       878       926
                                    --------- --------  --------  --------
         Total interest expense         3,580    5,155     7,503    10,564
                                    --------- --------  --------  --------
         Net interest income before
          provision for loan losses    10,806   11,897    21,479    22,567
 Provision for loan losses              1,766    1,110     3,520     6,179
                                    --------- --------  --------  --------
         Net interest income after
          provision for loan losses     9,040   10,787    17,959    16,388
                                    --------- --------  --------  --------
 Noninterest income:
    Service charges on deposit
     accounts and other
     banking-related fees                 973    1,038     1,903     2,088
    Loan sales and commissions              -       44        16        53
    Net gain on sale of securities        130    2,000       262     2,671
    Impairment loss on securities           -     (565)      (18)     (565)
    Market gain on foreclosed assets      691        -       691         -
    Other income                          160      222       293       407
                                    --------- --------  --------  --------
         Total noninterest income       1,954    2,739     3,147     4,654
                                    --------- --------  --------  --------
 Noninterest expense:
    Salaries and employee benefits      4,889    5,363     9,859    11,021
    Premises and equipment              1,517    1,780     3,054     3,313
    Data processing                       597      479     1,192       950
    Legal, audit and other
     professional services                590      597       772     1,217
    Printing, stationery and supplies     113      211       125       403
    Telephone                             213      264       437       527
    Directors' fees                       113      141       233       256
    Advertising, marketing and
     business development                 286      443       513       899
    Postage                                47       96       103       151
    Insurance and assessments             780    1,346     1,580     1,655
    Loss on and expense of
     foreclosed property                  468      249       546       249
    Amortization of intangible assets     417      417       833       793
    Market loss on loans
     held-for-sale                          -      709         -       709
    Other expenses                        721      781     1,420     1,510
                                    --------- --------  --------  --------
         Total noninterest expense     10,751   12,876    20,667    23,653
                                    --------- --------  --------  --------
 Income (loss) before provision for
  income taxes                            243      650       439    (2,611)
 Provision (benefit) for income
  taxes                                    96      433       175      (950)
                                    --------- --------  --------  --------
    Net income (loss)                     147      217       264    (1,661)
                                    ========= ========  ========  ========






                     First California Financial Group
                  Unaudited Quarterly Financial Results




                                                     June 30,  December 31,
(in thousands)                                         2010        2009
                                                   ----------- -----------

 Cash and due from banks                           $    33,618 $    26,757
 Interest bearing deposits with other banks             97,899      19,737
 Securities available-for-sale, at fair value          286,100     349,645
 Loans, net                                            875,089     922,741
 Premises and equipment, net                            19,729      20,286
 Goodwill                                               60,720      60,720
 Other intangibles, net                                 10,748      11,581
 Deferred tax assets, net                                3,811       6,046
 Cash surrender value of life insurance                 12,012      11,791
 Foreclosed property                                    27,850       4,893
 Accrued interest receivable and other assets           25,423      25,624
                                                   ----------- -----------

 Total assets                                      $ 1,452,999 $ 1,459,821
                                                   =========== ===========


 Non-interest checking                             $   341,103 $   317,610
 Interest checking                                      79,796      82,806
 Money market and savings                              363,996     339,750
 Certificates of deposit, under $100,000                75,470     116,012
 Certificates of deposit, $100,000 and over            232,092     268,537
                                                   ----------- -----------
    Total deposits                                   1,092,457   1,124,715

 Securities sold under agreements to repurchase         45,000      45,000
 Federal Home Loan Bank advances                        83,750      98,500
 Junior subordinated debentures                         26,779      26,753
 Accrued interest payable and other liabilities          6,629       7,627
                                                   ----------- -----------

    Total liabilities                                1,254,615   1,302,595

    Total shareholders' equity                         198,384     157,226
                                                   ----------- -----------

 Total liabilities and shareholders' equity        $ 1,452,999 $ 1,459,821
                                                   =========== ===========






FIRST CALIFORNIA FINANCIAL GROUP, INC.
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
(unaudited)



(in thousands except for share data and ratios)    6/30/2010   12/31/2009
                                                  -----------  -----------

Total shareholders' equity                        $   198,384  $   157,226
Less: Goodwill and intangible assets                  (71,468)     (72,301)
                                                  -----------  -----------
Tangible equity                                       126,916       84,925
Less: Preferred stock                                 (24,399)     (24,170)
                                                  -----------  -----------
Tangible common equity                            $   102,517  $    60,755
                                                  ===========  ===========

Total assets                                      $ 1,452,999  $ 1,459,821
Less: Goodwill and intangible assets                  (71,468)     (72,301)
                                                  -----------  -----------
Tangible assets                                   $ 1,381,531  $ 1,387,520
                                                  ===========  ===========

Common shares outstanding                          28,175,564   11,622,893

Tangible equity to tangible assets                       9.19%        6.12%
Tangible common equity to tangible assets                7.42%        4.38%
Tangible book value per common share              $      3.64  $      5.23