SOUTH SAN FRANCISCO, CA--(Marketwire - July 30, 2010) - FNB Bancorp (OTCBB: FNBG), parent company of First National Bank of Northern California (the "Bank"), today announced net earnings available to common shareholders for the second quarter of 2010 of $525,000 or $0.16 per diluted share, compared to a net operating loss of $(185,000) or $(0.06) per diluted share for the second quarter of 2009. Dividend payments on the preferred shares outstanding were made as required by the Treasury Department's Capital Purchase Program during the first and second quarters of 2010 and 2009. Our balance sheet is strong and we continue to be "well capitalized" as defined by bank regulations. Total assets as of June 30, 2010 were $721,811,000 compared to $661,828,000 as of June 30, 2009. Our net loan totals declined by $5,212,000 or 1.1% during the second quarter of 2010 and our deposits declined $3,420,000 or 0.5% during the same time period. The Company's liquidity position remains strong with $125,976,000 in available for sale securities and $60,876,000 in cash and due from banks as of June 30, 2010.

During the second quarter of 2010, as part of our continuing efforts to provide our customers a quality banking experience while we improve our operational efficiencies, the decision was made to consolidate our Eureka Square branch into our Linda Mar branch in Pacifica, CA. A new remote capture ATM will be installed in the Eureka Square Shopping Center in order to continue to serve our customers that work and live in the surrounding neighborhoods.

"The consolidation of the Eureka Square branch into our Linda Mar branch in Pacifica, CA. on June 25, 2010 went smoothly. We look forward to continuing to provide for the banking needs of the Pacifica community through our full service Linda Mar branch and our ATM at Eureka Square. I am proud to say that all the employees who worked at the Eureka Square office have been provided other positions within the Bank. There were no layoffs of personnel as a result of this consolidation," stated Mr. McGraw.

"During the second quarter of 2010, the Bank enjoyed an increase in net interest margin and net interest income as compared to the first quarter of 2010. Credit resolution costs stabilized, which allowed us to lower our provision for loan losses during the second quarter of 2010," continued Mr. McGraw.

"The credit problems brought about by a national recession, declining real estate values, increased foreclosures, and generally tight credit are still evident. We continue to manage our credit risks in a safe, yet proactive manner. Management attention was focused on risk management and asset quality improvement during the first and second quarters of 2010, and that will continue to be our focus as we move into the third quarter of 2010. During the second quarter of 2010, profitability levels were still not at historical levels; however, the Bank is well positioned to take advantage of any market opportunities that become available and to grow as the health of the economy improves. We want to lend and are actively seeking new loan and deposit customers who want a local community bank that knows and understands them. We want our customers to know that we are committed to them, both on a personal and on a community level. We look forward to provide for the banking needs of our customers, as we have been doing so for the last 47 years," stated Mr. McGraw.

Financial Highlights: Second Quarter, 2010

Consolidated Statements of Earnings
(in '000s except earnings per share amounts)


                                 Three      Three       Six        Six
                                 months     months     months     months
                                 ended      ended      ended      ended
                                June 30,   June 30,   June 30,   June 30,
                                  2010       2009       2010       2009
                                ---------  ---------  ---------  ---------

Interest income                 $   8,756  $   8,643  $  17,416  $  17,554
Interest expense                    1,330      2,362      3,030      4,681
                                ---------  ---------  ---------  ---------
   Net interest income              7,426      6,281     14,386     12,873
Provision for loan losses            (315)      (760)      (565)    (2,900)
Noninterest income                  1,026      1,245      2,126      2,594
Noninterest expense                 7,237      6,758     13,775     14,178
                                ---------  ---------  ---------  ---------
   Income before income taxes         900          8      2,172     (1,611)
Provision for income taxes           (161)        (4)      (429)       426
                                ---------  ---------  ---------  ---------
   Net earnings (loss)                739          4      1,743     (1,185)
   Dividends and discount
    accretion on preferred
    stock                             214        189        426        205
   Net earnings (loss)
    available to common         ---------  ---------  ---------  ---------
    shareholders                $     525  $    (185) $   1,317  $  (1,390)
                                =========  =========  =========  =========

Basic earnings per share        $    0.16  ($   0.06) $    0.41  ($   0.44)
Diluted earnings per share      $    0.16  ($   0.06) $    0.41  ($   0.44)

Average assets                  $ 693,481  $ 673,061  $ 693,060  $ 665,671
Average equity                  $  79,903  $  78,825  $  79,663  $  75,977
Return on average assets             0.30%     -0.11%      0.38%     -0.42%
Return on average equity             2.63%     -0.94%      3.31%     -3.66%
Efficiency ratio                       86%        90%        83%        92%
Net interest margin (taxable
 equivalent)                         4.89%      4.21%      4.79%      4.37%
Average shares outstanding          3,182      3,182      3,182      3,182
Average diluted shares
 outstanding                        3,192      3,182      3,197      3,182




Financial Highlights: Second Quarter, 2010

Consolidated Balance Sheets
(in '000s)


                                 As of      As of      As of      As of
                                June 30, December 31, June 30, December 31,
                                  2010       2009       2009       2008
                               ---------  ---------  ---------  ---------

     Assets:
Cash and cash equivalents      $  60,876  $  62,853  $  36,696  $  14,865
Securities available for sale    125,976     97,188     89,556     99,221
Loans, net                       480,652    494,349    487,312    497,984
Premises, equipment and
   leasehold improvements         11,762     11,784     12,381     13,030
Other real estate owned            8,677      7,320      5,492      3,557
Goodwill                           1,841      1,841      1,841      1,841
Other assets                      32,027     32,974     28,550     30,459
                               ---------  ---------  ---------  ---------
   Total assets                $ 721,811  $ 708,309  $ 661,828  $ 660,957
                               =========  =========  =========  =========

     Liabilities and
      stockholders' equity:
Deposits:
Demand and NOW                 $ 186,384  $ 177,883  $ 170,734  $ 179,688
Savings and money market         313,613    293,758    233,951    179,382
Time                             120,169    127,323    133,793    141,840
                               ---------  ---------  ---------  ---------
   Total deposits                620,166    598,964    538,478    500,910
Federal Home Loan Bank advances   15,000     25,000     40,000     86,100
Accrued expenses and other
 liabilities                       5,977      5,480      5,511      5,798
                               ---------  ---------  ---------  ---------
   Total liabilities             641,143    629,444    583,989    592,808
Stockholders' equity              80,668     78,865     77,839     68,149
                               ---------  ---------  ---------  ---------
   Total liabilities and
    stockholders' equity       $ 721,811  $ 708,309  $ 661,828  $ 660,957
                               =========  =========  =========  =========

Other Financial Information

Allowance for loan losses      $   9,076  $   9,829  $   9,095  $   7,075
Nonperforming assets           $  22,775  $  32,912  $  32,385  $  17,659
Total gross loans              $ 489,728  $ 504,178  $ 496,407  $ 505,059

Cautionary Statement: This release contains certain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those stated herein. Management's assumptions and projections are based on their anticipation of future events and actual performance may differ materially from those projected. Risks and uncertainties which could impact future financial performance include, among others, (a) competitive pressures in the banking industry; (b) changes in the interest rate environment; (c) general economic conditions, either nationally or regionally or locally, including fluctuations in real estate values; (d) changes in the regulatory environment; (e) changes in business conditions or the securities markets and inflation; (f) possible shortages of gas and electricity at utility companies operating in the State of California, and (g) the effects of terrorism, including the events of September 11, 2001, and thereafter, and the conduct of war on terrorism by the United States and its allies. Therefore, the information set forth herein, together with other information contained in the periodic reports filed by FNB Bancorp with the Securities and Exchange Commission, should be carefully considered when evaluating its business prospects. FNB Bancorp undertakes no obligation to update any forward-looking statements contained in this release.