Executive management of First Regional Bancorp has provided the following information in response to questions received from securities analysts and others.

Question: First Regional has stated that it meets all financial ratio requirements for "Well Capitalized" status. What are those standards, and how do First Regional's capital ratios compare to the standards?

Answer: Under the Prompt Corrective Action program, banking regulators have established different levels of capital adequacy based on the capital ratios of financial institutions. The highest capital level under this program is "Well Capitalized." The computation of the September 30, 2008 capital ratios of First Regional Bancorp and its subsidiary, First Regional Bank, along with the Well Capitalized ratio standards are as follows:

                                               Well            First            First
                                            Capitalized      Regional         Regional
                                             Standard         Bancorp           Bank

         Equity Capital                                      160,742,000      233,476,000
         Plus: Unrealized Gains                                    8,000            8,000
               Trust Preferred
         Plus: Securities Qualifying as
               Tier I Capital                                 53,583,000                0
Line 1   Tier I Capital                                      214,333,000      233,484,000
               Trust Preferred
         Plus: Securities Qualifying as
               Tier II Capital                                43,917,000                0
         Plus: Portion of Loan Loss
               Reserve Qualifying as
               Tier II  Capital                               31,999,000       31,962,000
Line 2   Total Capital                                       290,249,000      265,446,000

Line 3   Average Total Assets                              2,444,491,000    2,435,671,000
Line 4   Average Risk-weighted Assets                      2,536,697,000    2,532,993,000

         Tier I Leverage Ratio
         (Line 1 / Line 3)                         5.00 %           8.77 %           9.59 %

         Tier I Capital Ratio
         (Line 1 / Line 4)                         6.00 %           8.45 %           9.22 %

         Total Capital Ratio
         (Line 2 / Line 4)                        10.00 %          11.44 %          10.48 %

Question: Is First Regional participating in the Treasury Department's Capital Purchase Program?

Answer: The Company has thoroughly examined the Capital Purchase Program of the Treasury's Troubled Assets Relief Program (the "TARP Capital Program"), under which the Federal government injects capital into financial institutions through the purchase of preferred stock and warrants. Since both the Company and First Regional Bank already exceed all financial ratio requirements for "Well Capitalized" status, neither the significant dilution that would result from the issuance of the warrants nor the costs related to the preferred stock appear to be justified. Accordingly, First Regional is not seeking capital under the TARP Capital Program.

Question: Does First Regional anticipate involvement in other government programs relating to the Emergency Economic Stabilization Act?

Answer: First Regional is monitoring the many programs which continue to emerge as part of the Federal government's efforts to stabilize and strengthen the nation's economy. All programs are evaluated based on their applicability to First Regional, and whether they will provide benefit to the Company and its shareholders. The Company has determined that its subsidiary, First Regional Bank, will participate in the program to provide full deposit insurance coverage of non-interest bearing deposit transaction accounts under the FDIC's Temporary Liquidity Guarantee Program. As neither the Company nor First Regional Bank anticipate issuing qualifying debt, they will not participate in the debt guarantee portion of the Temporary Liquidity Guarantee Program.

Question: First Regional has reported its total "non-performing assets" and loans past due 30 to 89 days. Can you provide an update on the composition and status of these items?

Answer: Per banking industry convention, non-performing assets consist of loans past due 90 or more days and still accruing interest, loans on non-accrual status, and other real estate owned ("OREO"). As of September 30, 2008 First Regional had no loans past due 90 or more days which were still accruing. First Regional's non-performing assets as of that date were as follows:

Amount            Status            Asset Type                   Collateral

 3,734,400   Nonaccrual         Land Loan            105 acres of residential land in
                                                     Riverside County, California
 5,290,400   Nonaccrual         Land Loan            18 acres of residential land in
                                                     Riverside County, California
 3,345,000   Nonaccrual         Land Loan            Residential land (for 34 units) in
                                                     Los Angeles County, California
12,025,000   Nonaccrual         Land loan            162 acres of residential land in
                                                     Riverside County, California
20,744,204   Nonaccrual         Construction Loan    Condominium project in Spring
                                                     Valley (San Diego County)
                                                     California
 1,384,051   Nonaccrual         Construction Loan    Residence in Los Angeles,
                                                     California. Paid off in November,
                                                     2008
 3,930,467   Nonaccrual         Construction Loan    Luxury residence in Tarzana (Los
                                                     Angeles County) California
 8,081,850   Nonaccrual         Construction Loan    Condominium conversion in San
                                                     Diego County, California
 3,050,000                      OREO                 23 acres of residential land in
                                                     Silverdale, Washington
 3,647,800                      OREO                 Apartment building in San Diego
                                                     County, California
 2,000,000   Nonaccrual         Loan to Individual   Unsecured - borrower deceased

67,233,172   Gross Non-performing Assets
33,990,238   Less: prior writedowns
   140,800   Less: writedowns this period
33,102,134   Reported Non-performing Assets

First Regional's loans which were 30 to 89 days past due as of September 30, 2008 were as follows:

Amount             Status              Asset Type                   Collateral

16,575,000   Past Due 30-89 days   Land Loan            9 acres of residential land in Los
                                                        Angeles County, California
   401,174   Past Due 30-89 days   Construction Loan    Condominium project in San Diego
                                                        County, California
 1,617,705   Past Due 30-89 days   Loan to Company      Unsecured
 1,500,000   Past Due 30-89 days   Loan to Company      Unsecured
   194,980   Past Due 30-89 days   Loan to Individual   Unsecured
   324,829   Past Due 30-89 days   Loan to Individual   Unsecured

20,613,688   Gross Other Delinquent Loans
         0   Less: prior writedowns
20,613,688   Reported Other Delinquent Loans

Question: First Regional's time deposits experienced significant growth over the past twelve months. What is the reason for this increase?

Answer: The third quarter growth in First Regional's time deposits reflects the Company's decision to increase deposits obtained from under-represented sources such as time deposits. Historically, the Company has not competed aggressively for such deposits, since the cost of time deposits is typically higher than the costs of the Company's other funding sources. In the second quarter of 2008, however, the Company made the decision to seek more time deposits in order to reduce the utilization of supplemental funding sources (such as advances from the Federal Home Loan Bank) in order to hold such supplemental sources in reserve to deal with possible future funding needs. This program continued in the third quarter of 2008. The increase in time deposits was accomplished by quoting more competitive interest rates than had previously been the Company's practice, and while the cost of the deposits is higher than the supplemental funding sources which they replaced, the rates paid remained at the low end of the market for such deposits.

This report includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein may constitute forward-looking statements. Although First Regional believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from First Regional's expectations include fluctuations in interest rates, inflation, government regulations, and economic conditions and competition in the geographic and business areas in which First Regional conducts its operations.

Statements made herein are made as of the date hereof only. The Company shall have no obligation to update information and forward-looking statements presented herein.