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EXHIBIT 99.3
Unaudited Pro Forma Combined Financial Data of First Community Bancorp
The following tables present summary financial data for Rancho Santa Fe National
Bank ("Rancho Santa Fe") and First Community Bank of the Desert after giving
effect to the merger, which we refer to as "pro forma" information. The pro
forma financial data give effect to the merger under the pooling-of-interests
accounting method in accordance with generally accepted accounting principles.
In presenting the pro forma information for certain time periods, First
Community Bancorp assumed that Rancho Santa Fe and First Community Bank of the
Desert had been merged throughout those periods. The following unaudited pro
forma combined financial data combines the historical condensed financial
statements of Rancho Santa Fe and the historical consolidated condensed
financial statements of First Community Bank of the Desert, giving effect of the
merger as if it had been effective on March 31, 2000 and December 31, 1999, with
respect to the Pro Forma Combined Condensed Balance Sheets, and as of the
beginning of the periods indicated, with respect to the Pro Forma Combined
Condensed Statements of Income. This information should be read in conjunction
with the historical financial statements of the companies, including their
respective notes thereto, which were included in a proxy statement/prospectus
dated May 5, 2000, and in conjunction with the combined condensed historical
selected financial data and other pro forma combined financial information,
included the notes thereto appearing in that proxy statement/prospectus.
First Community Bancorp expects that it will incur reorganization and
restructuring expenses as a result of combining Rancho Santa Fe and First
Community Bank of the Desert. The effect of the estimated merger and
reorganization costs expected to be incurred in connection with the merger have
been reflected in the pro forma combined balance sheets; however, since the
estimated costs are nonrecurring, they have not been reflected in the pro forma
combined statements of income. First Community Bancorp also anticipates that the
merger will provide the combined company with certain financial benefits that
include reduced operating expenses and opportunities to earn more revenue.
However, First Community Bancorp does not reflect any of these anticipated cost
savings or benefits in the pro forma information. Finally, the pro forma
financial information does not reflect any divestitures of branches or deposits
that may be required in connection with the merger. Therefore, the pro forma
information, while helpful in illustrating the financial characteristics of the
combined company under one set of assumptions, does not attempt to predict or
suggest future results. The pro forma information also does not attempt to show
how the combined company would actually have performed had the companies been
combined throughout these periods. All adjustments, consisting of only normal
recurring adjustments, necessary for a fair statement of results of the
unaudited historical interim periods have been included.
<PAGE>
UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEETS
AS OF MARCH 31, 2000
<TABLE>
First Community First
Rancho Bank of the Community
Santa Fe Desert Pro Forma Bancorp
(Historical) (Historical) Adjustments Pro Forma
-----------------------------------------------------------------------
(In thousands, except per share data)
<S> <C> <C> <C> <C>
ASSETS:
Cash and due from banks $ 11,376 $ 6,328 $ - $ 17,704
Federal funds sold 1,663 12,548 - 14,211
-----------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS 13,039 18,876 - 31,915
Time deposits in financial institutions - 6,417 - 6,417
Federal Reserve Bank and Federal
Home Loan Bank stock, at cost 1,045 219 - 1,264
Securities held to maturity 349 14,505 - 14,854
Securities available-for-sale 32,242 - - 32,242
-----------------------------------------------------------------------
TOTAL SECURITIES 33,636 14,724 - 48,360
Net loans 137,550 80,740 - 218,290
Property, plant and equipment 1,383 3,918 - 5,301
Other real estate owned - 1,315 - 1,315
Other assets 3,740 2,826 414 6,980
-----------------------------------------------------------------------
TOTAL ASSETS $ 189,348 $ 128,816 $ 414 $ 318,578
=======================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Non-interest bearing deposits $ 46,294 $ 47,924 $ - $ 94,218
Interest bearing deposits 121,855 70,873 - 192,728
-----------------------------------------------------------------------
Total deposits 168,149 118,797 - 286,946
Borrowed funds 1,700 - - 1,700
Accrued interest payable & other
liabilities 1,914 798 2,401 5,113
-----------------------------------------------------------------------
Total liabiltities 171,763 119,595 2,401 293,759
SHAREHOLDERS' EQUITY:
Common stock 6,214 7,292 6,059 19,565
Additional paid-in-capital 6,059 - (6,059) -
Retained earnings 5,993 1,929 (1,987) 5,935
Accumulated other comprehensive income (loss):
Net unrealized gains (losses) on
securities available-for-sale (681) - - (681)
-----------------------------------------------------------------------
17,585 9,221 (1,987) 24,819
-----------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY
TOTAL LIABILITIES
& SHAREHOLDERS' EQUITY $ 189,348 $ 128,816 $ 414 $ 318,578
=======================================================================
Number of common shares outstanding 2,485.4 4,642.9 3,878.3
Common shareholders' equity per share $ 7.08 $ 1.99 $ 6.40
See "Notes to Unaudited Pro Forma Combined Condensed Financial Information."
</TABLE>
2
<PAGE>
<TABLE>
UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEETS
AS OF DECEMBER 31, 1999
First Community First
Rancho Bank of the Community
Santa Fe Desert Pro Forma Bancorp
(Historical) (Historical) Adjustments Pro Forma
--------------------------------------------------------------------
(In thousands, except per share
data)
<S> <C> <C> <C> <C>
ASSETS:
Cash and due from banks $ 11,768 $ 9,380 $ - $ 21,148
Federal funds sold 1,806 9,083 - 10,889
--------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS 13,574 18,463 - 32,037
Time deposits in financial institutions - 7,502 - 7,502
Federal Reserve Bank and Federal
Home Loan Bank stock, at cost 1,016 219 - 1,235
Securities held to maturity 363 14,505 - 14,868
Securities available-for-sale 34,460 - - 34,460
--------------------------------------------------------------------
TOTAL SECURITIES 35,839 14,724 - 50,563
Net loans 129,012 73,065 - 202,077
Property, plant and equipment 1,419 4,061 - 5,480
Other real estate owned - 1,315 - 1,315
Other assets 2,989 2,399 414 5,802
--------------------------------------------------------------------
TOTAL ASSETS $ 182,833 $ 121,529 $ 414 $ 304,776
====================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Non-interest bearing deposits $ 46,171 $ 47,592 $ - $ 93,763
Interest bearing deposits 116,241 64,228 - 180,469
--------------------------------------------------------------------
Total deposits 162,412 111,820 - 274,232
Accrued interest payable & other
liabilities 3,391 884 2,401 6,676
--------------------------------------------------------------------
Total liabiltities 165,803 112,704 2,401 280,908
SHAREHOLDERS' EQUITY:
Common stock 6,213 7,292 5,889 19,394
Additional paid-in-capital 5,889 - (5,889) -
Retained earnings 5,493 1,533 (1,987) 5,039
Accumulated other comprehensive income (loss):
Net unrealized gains (losses) on
securities available-for-sale (565) - - (565)
--------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 17,030 8,825 (1,987) 23,868
TOTAL LIABILITIES
--------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY
TOTAL LIABILITIES
& SHAREHOLDERS' EQUITY $ 182,833 $ 121,529 $ 414 $ 304,776
====================================================================
Number of common shares outstanding 2,485.4 4,642.9 3,878.3
Common shareholders' equity per share $ 6.85 $ 1.90 $ 6.15
See "Notes to Unaudited Pro Forma Combined Condensed Financial Information."
</TABLE>
3
<PAGE>
<TABLE>
UNAUDITED PRO FORMA COMBINED CONDENSED INCOME STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2000
First Community First
Rancho Bank of the Community
Santa Fe Desert Pro Forma Bancorp
(Historical) (Historical) Adjustments Pro Forma
----------------------------------------------------------------
(In thousands, except per share
data)
<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $ 3,557 $ 2,081 $ - $ 5,638
Interest on interest-bearing deposits in other banks - 105 - 105
Interest on investment securities 539 197 - 736
Interest on federal funds sold 37 114 - 151
----------------------------------------------------------------
TOTAL INTEREST INCOME 4,133 2,497 - 6,630
INTEREST EXPENSE:
Interest expense on deposits 1,073 492 - 1,565
Interest expense on borrowings 38 - - 38
----------------------------------------------------------------
TOTAL INTEREST EXPENSE 1,111 492 - 1,603
----------------------------------------------------------------
NET INTEREST INCOME: 3,022 2,005 - 5,027
Less: provision for loan losses - - - -
----------------------------------------------------------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 3,022 2,005 - 5,027
NON-INTEREST INCOME:
Service charges, commissions and fees 339 312 - 651
Other income 63 99 - 162
----------------------------------------------------------------
TOTAL NON-INTEREST INCOME 402 411 - 813
NON-INTEREST EXPENSE:
Salaries and employee benefits 949 775 - 1,724
Occupancy, furniture and equipment 315 323 - 638
Professional and other services 204 314 - 518
Stationery, supplies and printing 15 30 - 45
FDIC assessment 8 7 - 15
Merchant card processing 132 100 - 232
Advertising 43 58 - 101
Insurance 14 17 - 31
Loss on sale of securities 11 - - 11
Other 193 122 - 315
----------------------------------------------------------------
TOTAL NON-INTEREST EXPENSE 1,884 1,746 - 3,630
----------------------------------------------------------------
Income before income taxes 1,540 670 - 2,210
Income taxes 646 272 - 918
----------------------------------------------------------------
NET INCOME $ 894 $ 398 $ - $ 1,292
================================================================
PER SHARE INFORMATION:
Number of shares (weighted average)
Basic 2,485.4 4,642.9 3,878.3
Diluted 2,614.8 4,945.5 4,098.5
Income per share
Basic $ 0.36 $ 0.09 $ 0.33
Diluted $ 0.34 $ 0.08 $ 0.32
See "Notes to Unaudited Pro Forma Combined Condensed Financial Information."
</TABLE>
4
<PAGE>
<TABLE>
UNAUDITED PRO FORMA COMBINED CONDENSED INCOME STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 1999
First Community First
Rancho Bank of the Community
Santa Fe Desert Pro Forma Bancorp
(Historical) (Historical) Adjustments Pro Forma
----------------------------------------------------------------
(In thousands, except per share
data)
<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $ 2,693 $ 1,648 $ - $ 4,341
Interest on interest-bearing deposits in other banks - 64 - 64
Interest on investment securities 507 64 - 571
Interest on federal funds sold 154 312 - 466
----------------------------------------------------------------
TOTAL INTEREST INCOME 3,354 2,088 - 5,442
INTEREST EXPENSE:
Interest expense on deposits 934 493 - 1,427
Interest expense on borrowings 6 - - 6
----------------------------------------------------------------
TOTAL INTEREST EXPENSE 940 493 - 1,433
----------------------------------------------------------------
NET INTEREST INCOME: 2,414 1,595 - 4,009
Less: provision for loan losses - 135 - 135
----------------------------------------------------------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 2,414 1,460 - 3,874
NON-INTEREST INCOME:
Service charges, commissions and fees 290 248 - 538
Other income 94 69 - 163
----------------------------------------------------------------
TOTAL NON-INTEREST INCOME 384 317 - 701
NON-INTEREST EXPENSE:
Salaries and employee benefits 853 628 - 1,481
Occupancy, furniture and equipment 271 203 - 474
Professional and other services 198 192 - 390
Stationery, supplies and printing 16 41 - 57
FDIC assessment 4 7 - 11
Merchant card processing 83 61 - 144
Cost of other real estate owned - 1 - 1
Advertising 39 56 - 95
Insurance 14 12 - 26
Other 213 166 - 379
----------------------------------------------------------------
TOTAL NON-INTEREST EXPENSE 1,691 1,367 - 3,058
----------------------------------------------------------------
Income before income taxes 1,107 410 - 1,517
Income taxes 462 173 - 635
----------------------------------------------------------------
NET INCOME $ 645 $ 237 $ - $ 882
================================================================
PER SHARE INFORMATION:
Number of shares (weighted average)
Basic 2,443.3 4,642.9 3,836.2
Diluted 2,540.7 4,925.9 4,018.5
Income per share
Basic $ 0.26 $ 0.05 $ 0.23
Diluted $ 0.25 $ 0.05 $ 0.22
See "Notes to Unaudited Pro Forma Combined Condensed Financial Information."
</TABLE>
5
<PAGE>
<TABLE>
UNAUDITED PRO FORMA COMBINED CONDENSED INCOME STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1999
First Community First
Rancho Bank of the Community
Santa Fe Desert Pro Forma Bancorp
(Historical) (Historical) Adjustments Pro Forma
-----------------------------------------------------------------
(In thousands, except per share
data)
<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $ 11,476 $ 7,580 $ - $ 19,056
Interest on interest-bearing deposits in other banks - 355 - 355
Interest on investment securities 2,068 546 - 2,614
Interest on federal funds sold 480 900 - 1,380
-----------------------------------------------------------------
TOTAL INTEREST INCOME 14,024 9,381 - 23,405
INTEREST EXPENSE:
Interest expense on deposits 3,751 1,897 - 5,648
Interest expense on borrowings 40 - - 40
-----------------------------------------------------------------
TOTAL INTEREST EXPENSE 3,791 1,897 - 5,688
-----------------------------------------------------------------
NET INTEREST INCOME: 10,233 7,484 - 17,717
Less: provision for loan losses 90 428 - 518
-----------------------------------------------------------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 10,143 7,056 - 17,199
NON-INTEREST INCOME:
Service charges, commissions and fees 998 1,058 - 2,056
Other income 625 338 - 963
-----------------------------------------------------------------
TOTAL NON-INTEREST INCOME 1,623 1,396 - 3,019
NON-INTEREST EXPENSE:
Salaries and employee benefits 3,125 2,728 - 5,853
Occupancy, furniture and equipment 1,216 952 - 2,168
Professional and other services 657 1,038 - 1,695
Stationery, supplies and printing 74 155 - 229
FDIC assessment 17 38 - 55
Merchant card processing 461 254 - 715
Cost of other real estate owned - 182 - 182
Advertising 146 193 - 339
Insurance 53 67 - 120
Securities losses 2 - - 2
Other 755 675 - 1,430
-----------------------------------------------------------------
TOTAL NON-INTEREST EXPENSE 6,506 6,282 - 12,788
-----------------------------------------------------------------
Income before income taxes 5,260 2,170 - 7,430
Income taxes 2,202 965 - 3,167
-----------------------------------------------------------------
NET INCOME $ 3,058 $ 1,205 $ - $ 4,263
=================================================================
PER SHARE INFORMATION:
Number of shares (weighted average)
Basic 2,470.2 4,642.9 3,863.1
Diluted 2,597.6 4,929.8 4,076.5
Income per share
Basic $ 1.24 $ 0.26 $ 1.10
Diluted $ 1.18 $ 0.24 $ 1.05
See "Notes to Unaudited Pro Forma Combined Condensed Financial Information."
</TABLE>
6
<PAGE>
<TABLE>
UNAUDITED PRO FORMA COMBINED CONDENSED INCOME STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1998
First Community First
Rancho Bank of the Community
Santa Fe Desert Pro Forma Bancorp
(Historical) (Historical) Adjustments Pro Forma
-----------------------------------------------------------------
(In thousands, except per share
data)
<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $ 10,465 $ 6,506 $ - $ 16,971
Interest on interest-bearing deposits in other banks - 314 - 314
Interest on investment securities 1,536 302 - 1,838
Interest on federal funds sold 540 595 - 1,135
-----------------------------------------------------------------
TOTAL INTEREST INCOME 12,541 7,717 - 20,258
INTEREST EXPENSE:
Interest expense on deposits 3,640 1,714 - 5,354
Interest expense on borrowings 36 - - 36
-----------------------------------------------------------------
TOTAL INTEREST EXPENSE 3,676 1,714 - 5,390
-----------------------------------------------------------------
NET INTEREST INCOME: 8,865 6,003 - 14,868
Less: provision for loan losses - 941 - 941
-----------------------------------------------------------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 8,865 5,062 - 13,927
NON-INTEREST INCOME:
Service charges, commissions and fees 939 1,058 - 1,997
Other income 705 494 - 1,199
-----------------------------------------------------------------
TOTAL NON-INTEREST INCOME 1,644 1,552 - 3,196
NON-INTEREST EXPENSE:
Salaries and employee benefits 3,029 2,455 - 5,484
Occupancy, furniture and equipment 1,135 839 - 1,974
Impairment loss on bank premises held-for-sale 38 - - 38
Professional and other services 739 679 - 1,418
Stationery, supplies and printing 77 139 - 216
FDIC assessment 14 25 - 39
Merchant card processing 282 221 - 503
Cost of other real estate owned (5) 62 - 57
Advertising 183 247 - 430
Insurance 63 81 - 144
Other 683 415 - 1,098
-----------------------------------------------------------------
TOTAL NON-INTEREST EXPENSE 6,238 5,163 - 11,401
-----------------------------------------------------------------
Income before income taxes 4,271 1,451 - 5,722
Income taxes 1,762 378 - 2,140
-----------------------------------------------------------------
NET INCOME $ 2,509 $ 1,073 $ - $ 3,582
=================================================================
PER SHARE INFORMATION:
Number of shares (weighted average)
Basic 2,442.9 4,642.4 3,835.6
Diluted 2,601.7 4,935.3 4,082.3
Income per share
Basic $ 1.03 $ 0.23 $ 0.93
Diluted $ 0.96 $ 0.22 $ 0.88
See "Notes to Unaudited Pro Forma Combined Condensed Financial Information."
</TABLE>
7
<PAGE>
<TABLE>
UNAUDITED PRO FORMA COMBINED CONDENSED INCOME STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1997
First Community First
Rancho Bank of the Community
Santa Fe Desert Pro Forma Bancorp
(Historical) (Historical) Adjustments Pro Forma
-----------------------------------------------------------------
(In thousands, except per share
data)
<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $ 9,337 $ 4,884 $ - $ 14,221
Interest on interest-bearing deposits in other banks 3 79 - 82
Interest on investment securities 1,224 232 - 1,456
Interest on federal funds sold 319 629 - 948
-----------------------------------------------------------------
TOTAL INTEREST INCOME 10,883 5,824 - 16,707
INTEREST EXPENSE:
Interest expense on deposits 3,202 1,321 - 4,523
Interest expense on borrowings 41 - - 41
-----------------------------------------------------------------
TOTAL INTEREST EXPENSE 3,243 1,321 - 4,564
-----------------------------------------------------------------
NET INTEREST INCOME: 7,640 4,503 - 12,143
Less: provision for loan losses 50 260 - 310
-----------------------------------------------------------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 7,590 4,243 - 11,833
NON-INTEREST INCOME:
Service charges, commissions and fees 831 968 - 1,799
Other income 732 267 - 999
-----------------------------------------------------------------
TOTAL NON-INTEREST INCOME 1,563 1,235 - 2,798
NON-INTEREST EXPENSE:
Salaries and employee benefits 2,914 1,842 - 4,756
Occupancy, furniture and equipment 1,091 643 - 1,734
Professional and other services 515 769 - 1,284
Stationery, supplies and printing 86 90 - 176
FDIC assessment 12 56 - 68
Merchant card processing 209 163 - 372
Cost of other real estate owned - 73 - 73
Advertising 213 181 - 394
Insurance 60 77 - 137
Other 561 361 - 922
-----------------------------------------------------------------
TOTAL NON-INTEREST EXPENSE 5,661 4,255 - 9,916
-----------------------------------------------------------------
Income before income taxes 3,492 1,223 - 4,715
Income taxes 1,380 498 - 1,878
-----------------------------------------------------------------
NET INCOME $ 2,112 $ 725 $ - $ 2,837
=================================================================
PER SHARE INFORMATION:
Number of shares (weighted average)
Basic 2,427.0 4,641.9 3,819.6
Diluted 2,552.1 4,685.7 3,957.8
Income per share
Basic $ 0.87 $ 0.16 $ 0.74
Diluted $ 0.83 $ 0.15 $ 0.72
See "Notes to Unaudited Pro Forma Combined Condensed Financial Information."
</TABLE>
8
<PAGE>
NOTES TO FIRST COMMUNITY BANCORP
UNAUDITED PRO FORMA COMBINED CONDENSED FINANCIAL DATA
NOTE 1: BASIS OF PRESENTATION FIRST COMMUNITY BANK OF THE DESERT
Certain historical data of First Community Bank of the Desert have been
reclassified on a pro forma basis to conform to Rancho Santa Fe's
classifications. Transactions between Rancho Santa Fe and First Community Bank
of the Desert are not material in relation to the unaudited pro forma combined
financial statements, and have not been eliminated from the pro forma combined
amounts. The Unaudited pro forma number of common shares outstanding, common
shareholders' equity per share, number of shares (basic and diluted) and
earnings per share (basic and diluted) are based on the share amounts for Rancho
Santa Fe plus the share amounts for First Community Bank of the Desert
multiplied by the First Community Bank of the Desert exchange ratio of 0.30.
NOTE 2: MERGER COSTS
The unaudited pro forma combined condensed financial data reflect First
Community Bancorp's, Rancho Santa Fe's and First Community Bank of the Desert's
respective management's current estimate, for purposes of pro forma
presentation, of the aggregate estimated merger costs of $2,401,000 ($1,987,000
net of taxes, computed using the combined federal and state tax rate of 42.0%)
expected to be incurred in connection with the First Community Bank of the
Desert merger. In accordance with pooling-of-interests accounting, these costs
will be recognized upon the closing of the transaction. While a portion of these
costs may be required to be recognized over time, the current estimate of these
costs has been recorded in the pro forma combined balance sheets in order to
disclose the aggregate effect of these activities on First Community Bancorp's
pro forma combined financial position. The estimated aggregate costs include the
following:
Employee costs $415,000
Conversion costs 400,000
Other costs 170,000
--------------
985,000
Tax benefits (414,000)
---------------
571,000
Investment banking and other professional fees 1,416,000
---------------
$ 1,987,000
===============
First Community Bancorp management's cost estimates are forward-looking. While
the costs represent First Community Bancorp management's current estimate of
merger costs that will be incurred, the ultimate level and timing of recognition
of such costs will be based on the final merger and integration plan to be
completed prior to consummation of the merger of First Community Bank of the
Desert, which will be developed by various of Rancho Santa Fe's, First Community
Bancorp's and First Community Bank of the Desert's task forces and integration
committees. Readers are cautioned that the completion of the merger and
integration plan and the resulting management plans detailing actions to be
undertaken to effect the merger and resultant integration of operations will
impact these estimates; the type and amount of costs incurred could vary
materially from these estimates if future developments differ from the
underlying assumptions used by management in determining the current estimate of
these costs.
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