First Community Bancorp Announces Earnings for the Fourth Quarter of 2007

- Net Earnings for the Fourth Quarter of 2007 Total $17.1 Million -

SAN DIEGO, Jan. 22 /PRNewswire-FirstCall/ -- First Community Bancorp
(Nasdaq: FCBP) today announced net earnings for the year ended December 31,
2007, were $90.3 million, or $3.15 per diluted share, compared to net earnings
of $76.0 million, or $3.21 per diluted share, for fiscal 2006. The increase
in net earnings was due to acquisitions and organic growth.
Fourth quarter of 2007 net earnings were $17.1 million, or $0.62 per
diluted share, compared to net earnings of $22.2 million, or $0.77 per diluted
share, for the third quarter of 2007, and net earnings of $22.8 million, or
$0.82 per diluted share, for the fourth quarter of 2006. The decrease in net
earnings compared to the third quarter of 2007 resulted primarily from lower
net interest income, a provision for credit losses, and increased noninterest
expenses. The fourth quarter of 2007 credit loss provision, charges for FHLB
prepayment penalties, charitable contribution, and reorganization costs
reduced net earnings by $3.4 million, or $0.12 per share. The decrease in net
earnings compared to the fourth quarter of 2006 resulted mostly from lower net
interest income and higher provision for credit losses. The fourth quarter of
2006 included a loss on sale of securities and reorganization costs, which
when combined reduced net earnings by $2.2 million, or $0.08 per share.
The comparability of financial information is affected by our
acquisitions. Operating results include the operations of acquired entities
from the dates of acquisition. We acquired BFI Business Finance, or BFI, in
June 2007, which added $122.6 million in assets, Community Bancorp in October
2006, which added $1.0 billion in assets, Foothill Independent Bancorp in May
2006, which added $892.0 million in assets, and Cedars Bank in January 2006,
which added $489.3 million in assets.
HIGHLIGHTS FOR THE FOURTH QUARTER OF 2007 AND FISCAL 2007

Fourth Quarter
2007 Fiscal 2007
Organic loan growth, excluding loan
sales $128.6 million $2.0 million
Average loan yield 8.29% 8.51%
Average cost of deposits 1.67% 1.62%
Net interest margin 6.11% 6.34%
Average noninterest bearing deposits to
average total deposits 39% 41%
Nonaccrual loans to total loans at
period end 0.56% 0.56%
Nonperforming assets to total loans and
OREO at period end 0.63% 0.63%

Matt Wagner, Chief Executive Officer, stated, "During the fourth quarter,
we generated solid loan growth and took measures to further control our credit
risk and reduce our exposure to problem loans. Our organic loan growth was
almost $129 million due mostly to increased commercial real estate lending.
We concentrated on keeping nonaccrual loans at a minimum and lowered our
exposure in construction lending to less than 18% of our portfolio at year
end. At year end, nonperforming assets represent 0.63% of total loans and
foreclosed real estate.
"First Community's fundamentals and core franchise are strong and we
remain committed to making quality loans, focusing on expense control and
creating value for our shareholders. Our conservative lending criteria and
risk management practices -- including an aggressive and proactive approach to
problem loans -- has resulted in a reduction during the fourth quarter in our
exposure to weaker economic areas and higher risk products."
Mr. Wagner continued, "Our fourth quarter initiatives and conservative
culture help to position First Community to take advantage of the current
environment. While weakness in the real estate sector and a soft economy
reduce overall loan demand, lack of conduit competition and lower market
interest rates create lending opportunities and reduce overall deposit and
borrowing costs. We believe our solid capital base, healthy net interest
margin and liquidity sources give us ample flexibility to pursue various
growth alternatives. While we remain cautious in the current environment, we
intend to enhance our position as one of the premier banking franchises in
Southern California."
Vic Santoro, Executive Vice President and Chief Financial Officer,
commented, "In addition to credit risk management, we continued to focus this
quarter on expense control and countering margin pressure. When the
prepayment penalties, charitable contribution and reorganization charges are
excluded, our fourth quarter noninterest expenses were below those of the
third quarter. Our net interest margin remains high at 6.11%. Given our
asset sensitivity and our low-cost funding base, reductions in market interest
rates tend to place downward pressure on our net interest margin. The actions
we took on new deposit product introductions, liability pricings and
borrowings, along with the BFI acquisition, will continue to positively impact
our net interest margin."
Mr. Santoro added, "We continue to pursue growth through core banking
relationships and careful management of credit risk and expenses. While our
disciplined approach may temper the speed of our growth, we believe it is the
best course for our employees, customers, and shareholders, and has resulted
in a distinct and attractive franchise."
YEAR TO DATE RESULTS

In thousands, except per share Year Ended December 31,
data and percentages 2007 2006 % Change

Net Earnings $90,326 $75,998* 18.9%
Diluted Share Count 28,676.0 23,680.3 21.1%
Diluted Earnings Per Share $3.15 $3.21* (1.9)%
Return on Average Assets (ROA) 1.73% 1.72% 0.6%
Return on Average Equity (ROE) 7.66% 9.13% (16.1)%
Net Interest Margin 6.34% 6.67% (4.9)%
Efficiency Ratio 47.7% 47.0% 1.5%

* Includes $142,000 of additional net earnings, or less than $0.01 per
diluted share, related to an accounting change.

The increase in net earnings was due mostly to the combined effects of
higher net interest income due to loan growth, lower credit loss provisions,
and higher net gain on sale of loans and securities, offset by increased
overhead expenses.

FOURTH QUARTER RESULTS

In thousands, except per Fourth Third Fourth
share Quarter Quarter % Quarter %
data and percentages 2007 2007 Change 2006 Change

Net Earnings $17,059 $22,196 (23.1)% $22,769 (25.1)%
Diluted Share Count 27,703.0 28,988.0 (4.4)% 27,801.6 (0.4)%
Diluted Earnings Per Share $0.62 $0.77 (19.5)% $0.82 (24.4)%
Return on Average Assets
(ROA) 1.32% 1.72% (23.3)% 1.72% (23.3)%
Return on Average Equity
(ROE) 5.86% 7.31% (19.8)% 8.32% (29.6)%
Net Interest Margin 6.11% 6.44% (5.1)% 6.52% (6.3)%
Efficiency Ratio 53.2% 48.0% 10.8% 49.5% 7.5%

The $5.1 million decrease in net earnings for the fourth quarter of 2007
compared to the third quarter of 2007 is due to lower net interest income
($1.9 million after tax), the provision for credit losses ($1.7 million after
tax), prepayment penalties on certain FHLB advances ($814,000 after tax), a
charitable contribution to the San Diego Foundation ($580,000 after tax), and
reorganization charges ($226,000 after tax). The prepayment penalty, donation
and reorganization charges increased our efficiency ratio by 409 basis points
in the fourth quarter of 2007.
The decrease in net earnings for the fourth quarter of 2007 compared to
the fourth quarter of 2006 was due to lower net interest income from lower
average loan balances and a decline in loan yields. Loan balances declined
for the fourth quarter of 2007 compared to the same quarter in 2006 due mostly
to 2007 loan sale activity. The loss on sale of securities and reorganization
charges in the fourth quarter of 2006 increased the efficiency ratio by 336
basis points.
BALANCE SHEET CHANGES
Fourth quarter of 2007 total loan growth, excluding the effect of loans
sold, was $128.6 million, centered mostly in commercial real estate mortgage
loans. The total construction loan portfolio totaled $717.4 million, or 17.8%
of total loans, at the end of December 2007 compared to $795.3 million, or
20.3% of total loans, at the end of September 2007.
Deposits decreased $197.2 million to $3.2 billion at December 31, 2007,
from September 30, 2007. Demand deposits totaled $1.2 billion at December 31,
2007, and represented 37% of total deposits at that date. During 2007 we
introduced our sweep product which enabled us to return customer deposits to
the Bank. These balances totaled $163.4 million at year end and increased
$61.4 million during the fourth quarter. We also introduced certain checking
account products during 2007 and new monies in these products totaled $70.9
million through December 31, 2007, including $15.2 million of growth during
the fourth quarter.
NET INTEREST INCOME
Net interest income increased $23.2 million, or 9.6%, to $265.1 million
for the year ended December 31, 2007 compared to fiscal 2006. This increase
was mainly a result of increased interest income generated from loan growth,
both acquired and organic, and offset partially by higher interest expense.
Interest expense increased due to a combination of increases in average
deposits and borrowings and the cost of our interest-bearing deposits.
Net interest income totaled $62.9 million for the fourth quarter of 2007
compared to $66.3 million for the third quarter of 2007 and $70.2 million for
the fourth quarter of 2006. The $3.4 million decrease in net interest income
compared to the third quarter of 2007 was due mainly to lower loan yields from
reductions in our base lending rate and lower average construction loan
balances. In mid-December 2007, we refinanced $200 million in FHLB advances
costing 4.86%, paid a $1.4 million prepayment penalty, and replaced these
borrowings with putable FHLB advances having a fixed rate of 3.16% for the
first year. The interest expense savings for the next twelve months is $3.4
million. In January 2008, we replaced $150.0 million of overnight borrowings
having an average cost of 4.40% with three putable FHLB advances having a
weighted-average cost of 2.86%. The savings from these transactions along
with the refinancing accomplished in December are expected to have a positive
14 basis point effect on our net interest margin based on year-end 2007
interest-earning assets and interest-bearing liabilities.
The $7.3 million decrease in net interest income for the fourth quarter of
2007 compared to the fourth quarter of 2006 was mainly a result of lower loan
interest income of $6.3 million due to lower loan yields and average loan
balances. Average loan yields declined 32 basis points as general market
interest rates fell during the latter half of 2007. The decrease in average
loan balances resulted from higher loan sales volume, including the sale in
the first quarter of 2007 of a 95% participation interest of $353 million in a
portfolio of commercial real estate mortgage loans. Interest expense
increased $742,000 for the fourth quarter of 2007 compared to the same period
of 2006 due mostly to an increase in the volume and cost of our money market
accounts.
NET INTEREST MARGIN
Our net interest margin for the year ended December 31, 2007 was 6.34%, a
decrease of 33 basis points when compared to fiscal 2006. This decrease is
due mostly to the combined effects of lower average loan yields and higher
average funding costs. Our loan yield declines in the latter half of 2007
were positively offset, to some extent, by the addition of the loans acquired
with BFI in late June 2007. The average higher funding costs were due to
competitive pressures, increased reliance on FHLB advances to fund loan growth
and deposit flows, and the effect of acquired deposit structures which tended
to have a higher concentration of more costly time deposits. Due to
competition, we increased our pay rate on money market accounts, our largest
source of interest-bearing funding.
Our net interest margin for the fourth quarter of 2007 was 6.11%, a
decrease of 33 basis points when compared to the third quarter of 2007 and a
decrease of 41 basis points when compared to the fourth quarter of 2006. Our
net interest margin is driven by the combination of our asset yield, the high
proportion of demand deposit balances to total deposits and our disciplined
deposit pricing strategy. Demand deposit balances averaged 39% of average
deposits during the fourth quarter of 2007, 40% of average deposits during the
third quarter of 2007, and 43% of average deposits during the fourth quarter
of 2006.
The decrease in the net interest margin in the fourth quarter of 2007
compared to the prior quarter is due mostly to the decline in loan yields.
The yield on average loans was 8.29% and 8.63% for the fourth and third
quarters of 2007. The yield on average earning assets was 8.19% and 8.50% for
the fourth and third quarters of 2007. The decrease in loan yield and overall
earning asset yield is attributed to a general decline in market interest
rates. Approximately 37% of our loan portfolio is eligible to reprice
immediately as our base lending rate declines. The cost of interest-bearing
liabilities decreased 12 basis points to 3.28% for the fourth quarter of 2007
compared to the previous quarter due to declines in the cost of both deposits
and borrowings. The average cost of interest-bearing deposits decreased 13
basis points to 2.74% for the fourth quarter of 2007 compared to the previous
quarter and is attributed to an 18 basis point decrease in the cost of our
money market accounts. In addition, the cost of borrowings decreased 38 basis
points, which is attributed to the decline in market interest rates and our
decision to refinance a portion of our FHLB advances. The refinancing in
December and the borrowing activity in January are expected to have a positive
14 basis point impact on our net interest margin based on year-end 2007
interest-earning assets and interest-bearing liabilities.
The decrease in the net interest margin in the fourth quarter of 2007
compared to the same quarter of 2006 is due to lower earning asset yields and
an increase in the cost of funds. The average loan yield declined 32 basis
points as market interest rates trended lower starting in the third quarter of
2007. Our deposit costs increased 34 basis points due to lower average DDA
balances and an increase in our pay rates for deposit products due to
competition.
NONINTEREST INCOME
Noninterest income for the year ended December 31, 2007 totaled $32.9
million compared to $16.5 million earned in fiscal 2006. The year over year
increase in noninterest income results largely from (i) higher net gains on
sale of loans and securities, (ii) an increase of $1.4 million related to
discounts on the payoff of acquired loans, (iii) higher fee volume due to
business growth, and (iv) net gain on sale and leaseback of two office
facilities.
Noninterest income for the fourth quarter of 2007 totaled $5.4 million
compared to $5.7 million for the third quarter of 2007 and $3.9 million for
the fourth quarter of 2006. Noninterest income is lower in the fourth quarter
of 2007 compared to the prior quarter due mostly to loss on sale of SBA loans
and a decline in other income. The net loss on sale of loans was $543,000 for
the fourth quarter of 2007 and $323,000 for the third quarter of 2007. Other
noninterest income for the third quarter included a net gain of $396,000 on
the sale and leaseback of two office facilities; there was no such item in the
fourth quarter of 2007.
The $1.5 million increase in noninterest income compared to the fourth
quarter of 2006 is due mostly to (i) no loss on sale of securities in 2007
compared to $2.3 million recognized in 2006, (ii) a $543,000 loss on sale of
loans in 2007 compared to zero in 2006, and (iii) a $465,000 decrease in other
income. Other income includes the recognition of discounts related to the
payoffs of acquired loans; such amounts were $187,000 for the fourth quarter
of 2007 and $642,000 for the fourth quarter of 2006.
NONINTEREST EXPENSE ITEMS
Noninterest expense for the year ended December 31, 2007 totaled $142.3
million compared to $121.5 million for fiscal 2006. The increase in most
noninterest expense categories is due to a combination of acquisitions and
business growth. The increase in compensation resulted from additional staff
added through acquisitions, pay rate increases, and increased benefits costs,
partially offset by staff reductions in the second quarter of 2007. Business
development costs increased for promotional costs associated with the
introduction of the high performance business checking product in March 2007
and the $1.0 million charitable contribution to a local foundation for those
affected by the Southern California wildfires. Other expense includes the
$1.4 million in penalties for prepaying certain FHLB advances.
Noninterest expense for the fourth quarter of 2007 totaled $36.3 million
compared to $34.5 million for the third quarter of 2007 and $36.7 million for
the fourth quarter of 2006. The increase compared to the third quarter of
2007 was due mostly to the $1 million charitable contribution, the $1.4
million of FHLB prepayment penalties and increased reorganization charges;
there were no such items in the third quarter of 2007. The reorganization
charges of $390,000 for the fourth quarter of 2007 represented the final
system conversion costs associated with the restructuring of Pacific Western
Bank in September 2006. These increases were offset, in part, by lower
compensation costs quarter over quarter.
The $368,000 decrease in noninterest expense for the fourth quarter of
2007 compared to the same quarter of 2006 is due mostly to the combined effect
of a $3.0 million decline in compensation costs and a $1.0 million decline in
reorganization charges offset by the current quarter's charitable contribution
and FHLB prepayment penalties.
Noninterest expense includes amortization of performance-based and
time-based restricted stock which is included in compensation, and intangible
asset amortization. Restricted stock amortization totaled $1.2 million for
the fourth quarter of 2007 compared to $2.2 million for the third quarter of
2007 and $2.0 million for the fourth quarter of 2006. The decline in the
restricted stock amortization is due to the suspension of amortization of
certain performance-based restricted stock awards whose vesting is dependent
on the attainment of specific long-term financial targets. During the fourth
quarter we concluded that attainment of these financial targets within the
remaining 6 to 9 year vesting horizon is less than probable. If and when the
attainment of such financial targets is deemed probable in future periods, a
catch-up adjustment will be recorded and amortization of such
performance-based restricted stock will continue. Amortization expense for
all time-based and performance-based restricted stock awards totaled $8.0
million for 2007 and is estimated to be $4.4 million for 2008. Intangible
asset amortization totaled $2.6 million for the fourth and third quarters of
2007 and $2.2 million for the fourth quarter of 2006. Intangible asset
amortization totaled $9.7 million for 2007 and is estimated to be $9.1 million
for 2008. The 2008 estimates of both restricted stock award expense and
intangible asset amortization are subject to change.
TAXES
The effective tax rate for both the fourth quarter of 2007 was 41.1%
compared to 40.7% for the third quarter of 2007 and 39.1% for the fourth
quarter of 2006. The effective tax rates are lower than the statutory rates
due to tax credits on certain investments and other tax-exempt income.
CREDIT QUALITY
During the fourth quarter of 2007, we focused intently on reducing risk
concentrations and minimizing nonperforming loans. Our construction loan
portfolio totaled $717.4 million at December 31, 2007 and represented 17.8% of
loans net of unearned income, down from $795.3 million and 20.3% at September
30, 2007.
Our nonaccrual loans decreased $576,000 to $22.4 million at December 31,
2007 from $23.0 million at September 30, 2007. Our ratio of nonaccrual loans
to total loans, including loans held for sale, decreased to 0.56% at December
31, 2007 from 0.59% at September 30, 2007. The year-end nonaccrual loans
include 25 SBA loans totaling $10.4 million, 2 residential construction loans
for $3.5 million, a multifamily residential loan for $3.1 million, and 2
residential land loans for $2.9 million. Other real estate owned due to
foreclosure was $2.7 million and represents 4 properties at year end. Of this
amount $1.3 million is residential construction, $869,000 is commercial real
estate, and $600,000 is residential real estate. The ratio of nonperforming
assets to loans and real estate owned was 0.63% at December 31, 2007 compared
to 0.59% at September 30, 2007.
We made a provision for credit losses of $3.0 million during the fourth
quarter of 2007 in recognition of fourth quarter organic loan growth, net
chargeoffs and our analysis of the inherent risks in our portfolio and the
effects current market conditions may have on our borrowers. At December 31,
2007 and September 30, 2007, the ratio of our allowance for credit losses to
loans, net of unearned income, was 1.55%. The allowance for credit losses
totaled $61.0 million at December 31, 2007 and $58.8 million at September 30,
2007. The increase in the allowance for credit losses in the fourth quarter
was due to the $3.0 million provision offset by $811,000 in net loan
chargeoffs.
No part of the allowance for credit losses is allocated to loans held for
sale as they are carried at the lower of aggregate cost or fair value and are
shown separately on our balance sheet. The allowance for credit losses
applies only to loans held for investment purposes and loan commitments.
REGULATORY CAPITAL MEASURES ARE ABOVE THE WELL-CAPITALIZED MINIMUMS
First Community and its wholly-owned banking subsidiary, Pacific Western
Bank, each remained well capitalized at December 31, 2007.
SHARE REPURCHASE PROGRAM
On August 2, 2007, we announced a share repurchase program to repurchase
up to $150 million of Company common stock over a twelve-month period, unless
shortened or extended by the Board of Directors. The Company repurchased
1,206,100 shares of common stock during the fourth quarter of 2007 at a
weighted average price of $44.99 per share. For fiscal year 2007, the Company
repurchased 2,491,538 shares of common stock at a weighted-average price of
$49.48 per share under the current and former authorized share repurchase
programs. The approximate dollar value of shares that may yet be purchased
under the current authorized program is $36.2 million. The stock repurchase
program may be limited or terminated at any time without prior notice.
ABOUT FIRST COMMUNITY BANCORP
First Community Bancorp is a bank holding company with $5.2 billion in
assets as of December 31, 2007, with one wholly-owned banking subsidiary,
Pacific Western Bank. Through 60 full-service community banking branches,
Pacific Western provides commercial banking services, including real estate,
construction and commercial loans, to small and medium-sized businesses.
Pacific Western's branches are located in Los Angeles, Orange, Riverside, San
Diego and San Bernardino Counties. Through its subsidiary BFI Business
Finance and its divisions First Community Financial and Pacific Western SBA
Lending, Pacific Western also provides working capital financing to growing
companies located throughout the Southwest, primarily in the states of
Arizona, California and Texas. Additional information regarding First
Community Bancorp is available on the Internet at
http://www.firstcommunitybancorp.com. Information regarding Pacific Western
Bank is also available on the Internet at http://www.pacificwesternbank.com.
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking information about
First Community 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. Such statements involve inherent risks and
uncertainties, many of which are difficult to predict and are generally beyond
the control of the Company. We caution readers that a number of important
factors could cause actual results to differ materially from those expressed
in, implied or projected by, such forward-looking statements. Risks and
uncertainties include, but are not limited to: planned acquisitions and
related cost savings cannot be realized or realized within the expected time
frame; lower than expected revenues; credit quality deterioration which could
cause an increase in the allowance for credit losses and a reduction in net
earnings; increased competitive pressure among depository institutions; the
Company's ability to complete announced acquisitions, to successfully
integrate acquired entities, or to achieve expected synergies and operating
efficiencies within expected time-frames or at all; the integration of
acquired businesses costs more, takes longer or is less successful than
expected; the possibility that personnel changes will not proceed as planned;
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; pending legal matters may take longer or cost more to resolve
or may be resolved adversely to the Company; general economic conditions,
either nationally or in the market areas in which the Company does or
anticipates doing business, are less favorable than expected; environmental
conditions, including natural disasters, may disrupt our business, impede our
operations, negatively impact the values of collateral securing the Company's
loans or impair the ability of our borrowers to support their debt
obligations; the economic and regulatory effects of the continuing war on
terrorism and other events of war, including the war in Iraq; legislative or
regulatory requirements or changes adversely affecting the Company's business;
changes in the securities markets; regulatory approvals for any acquisitions
cannot be obtained on the terms expected or on the anticipated schedule; and,
other risks that are described in First Community's public filings with the
U.S. Securities and Exchange Commission (the "SEC"). If any of these risks or
uncertainties materializes or if any of the assumptions underlying such
forward-looking statements proves to be incorrect, First Community's results
could differ materially from those expressed in, implied or projected by such
forward-looking statements. First Community 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 First Community Bancorp's annual report on
Form 10-K, quarterly reports on Form 10-Q and other reports filed by First
Community with the SEC. The documents filed by First Community with the SEC
may be obtained at First Community Bancorp's website at
http://www.firstcommunitybancorp.com or at the SEC's website at
http://www.sec.gov. These documents may also be obtained free of charge from
First Community by directing a request to: First Community Bancorp c/o Pacific
Western Bank, 275 North Brea Boulevard, Brea, CA 92821. Attention: Investor
Relations. Telephone 714-671-6800.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

December 31, December 31,
2007 2006
(In thousands, except share data)

Assets:
Cash and due from banks $99,363 $128,910
Federal funds sold 2,000 22,000
Total cash and cash equivalents 101,363 150,910

Interest-bearing deposits in financial
institutions 420 501

Federal Reserve Bank and Federal Home Loan
Bank stock, at cost 26,649 28,747
Securities available-for-sale 106,888 91,381
Total securities 133,537 120,128

Loans held for sale 63,565 173,319

Loans, net of unearned income 3,949,218 4,189,543
Allowance for loan losses (52,557) (52,908)
Net loans 3,896,661 4,136,635

Premises and equipment 26,327 37,102
Other Real Estate owned 2,736 -
Intangible assets 805,775 788,510
Cash surrender value of life insurance 67,846 67,512
Other assets 80,810 78,706
Total assets $5,179,040 $5,553,323

Liabilities and Shareholders' Equity:
Liabilities:
Noninterest-bearing deposits $1,211,946 $1,571,361
Interest-bearing deposits 2,033,200 2,114,372
Total deposits 3,245,146 3,685,733

Accrued interest payable and other
liabilities 45,054 51,043
Borrowings 612,000 499,000
Subordinated debentures 138,488 149,219
Total liabilities 4,040,688 4,384,995

Shareholders' Equity:
Common stock 936,608 1,020,132
Retained earnings 201,220 148,367
Accumulated other comprehensive income:
Unrealized gain (loss) on securities
available-for-sale, net 524 (171)
Total shareholders' equity 1,138,352 1,168,328
Total liabilities and
shareholders' equity $5,179,040 $5,553,323

Shares outstanding (includes 861,269
shares and 750,014 shares at December 31,
2007 and December 31, 2006, underlying
unvested stock awards) 28,002,382 29,635,957

Book value per share $40.65 $39.42

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
Year Ended
Quarters Ended December 31,
12/31/07 9/30/07 12/31/06 2007 2006

(In thousands, except per share data)
Interest income:
Interest and fees on loans $82,742 $85,649 $89,064 $343,617 $292,069

Interest on federal funds sold 251 605 105 1,979 297
Interest on time deposits in
other financial institutions 4 5 7 21 31
Interest on investment
securities 1,358 1,268 1,716 5,364 9,200
Total interest income 84,355 87,527 90,892 350,981 301,597

Interest expense:
Interest expense on deposits 14,391 14,924 11,837 56,471 33,219

Interest expense on
borrowings 4,306 3,562 5,649 18,034 15,168
Interest expense on
subordinated debentures 2,715 2,758 3,184 11,361 11,253
Total interest expense 21,412 21,244 20,670 85,866 59,640
Net interest income before
provision for credit losses 62,943 66,283 70,222 265,115 241,957
Provision for credit
losses 3,000 - - 3,000 9,600
Net interest income after
provision for credit losses 59,943 66,283 70,222 262,115 232,357

Noninterest income:
Service charges on deposit
accounts 3,029 2,877 2,878 11,573 8,835
Other commissions and fees 1,817 1,903 1,847 7,019 6,420
Gain (loss) on sale of loans (543) (323) - 8,438 -
Loss on sale of securities, net - - (2,332) - (2,332)
Increase in cash surrender
value of life insurance 649 597 637 2,489 2,205
Other income 400 628 865 3,395 1,338
Total noninterest income 5,352 5,682 3,895 32,914 16,466

Noninterest expense:
Compensation 16,669 17,582 19,702 71,440 65,505
Occupancy 4,871 4,799 4,437 19,156 15,296
Furniture and equipment 1,183 1,258 1,219 4,929 4,034
Data processing 1,475 1,507 1,490 6,007 6,317
Other professional services 1,495 1,574 1,407 6,301 5,072
Business development 1,709 780 564 4,045 1,591
Communications 779 825 889 3,277 3,103
Insurance and assessments 464 468 441 1,723 2,121
Intangible asset amortization 2,621 2,574 2,171 9,674 6,688
Reorganization charges 390 - 1,415 1,731 1,822
Other 4,689 3,157 2,978 13,976 9,906
Total noninterest expense 36,345 34,524 36,713 142,259 121,455

Earnings before income taxes and
effect of accounting change 28,950 37,441 37,404 152,770 127,368
Income taxes 11,891 15,245 14,635 62,444 51,512
Net earnings before
cumulative effect of
accounting change 17,059 22,196 22,769 90,326 75,856
Cumulative effect on prior years
(to December 31, 2005) of
changing the method of accounting
for stock-based compensation
forfeitures - - - - 142
Net earnings $17,059 $22,196 $22,769 $90,326 $75,998

Per share information
Number of shares
(weighted average):
Basic 27,645.0 28,899.3 27,666.6 28,571.9 23,476.4
Diluted 27,703.0 28,988.0 27,801.6 28,676.0 23,680.3
Basic earnings per share:
Net earnings before
accounting change $0.62 $0.77 $0.82 $3.16 $3.23
Accounting change (1) - - - - -
Basic earnings per
share $0.62 $0.77 $0.82 $3.16 $3.23
Diluted earnings per share:
Net earnings before
accounting change $0.62 $0.77 $0.82 $3.15 $3.21
Accounting change (1) - - - - -
Diluted earnings per
share $0.62 $0.77 $0.82 $3.15 $3.21

(1) Less than $0.01 per diluted share for the year ended December 31,
2006.

UNAUDITED AVERAGE BALANCE
SHEETS
Quarters Ended Year Ended
12/31/07 9/30/07 12/31/06 12/31/07 12/31/06
(Dollars in thousands)
Average Assets:
Loans, net of
unearned
income $3,960,621 $3,938,511 $4,105,125 $4,038,990 $3,394,123
Investment
securities 105,995 96,672 158,763 104,945 228,031
Federal funds sold 21,437 47,931 7,930 38,924 6,491
Interest-bearing
deposits in financial
institutions 425 436 645 461 826
Average earning
assets 4,088,478 4,083,550 4,272,463 4,183,320 3,629,471
Other assets 1,037,646 1,042,212 980,622 1,043,495 778,323
Average total
assets $5,126,124 $5,125,762 $5,253,085 $5,226,815 $4,407,794

Average Liabilities and
Shareholders' Equity:
Average liabilities:
Noninterest-
bearing
deposits $1,332,259 $1,383,407 $1,529,817 $1,426,904 $1,387,919

Interest
checking 363,756 355,303 283,196 328,207 246,569
Money market
accounts 1,182,456 1,136,201 1,024,217 1,117,972 890,400
Savings 113,398 120,484 145,937 125,549 132,130
Time deposits 423,668 451,900 549,555 488,158 436,669

Interest-
bearing
deposits 2,083,278 2,063,888 2,002,905 2,059,886 1,705,768
Average deposits 3,415,537 3,447,295 3,532,722 3,486,790 3,093,687
Subordinated
debentures 138,553 138,650 150,544 143,648 132,389
Borrowings 366,196 279,782 430,742 361,709 303,251
Other
liabilities 50,339 55,386 53,499 55,801 46,444
Average
liabilities 3,970,625 3,921,113 4,167,507 4,047,948 3,575,771
Average equity 1,155,499 1,204,649 1,085,578 1,178,867 832,023

Average liabilities and
shareholders'
equity $5,126,124 $5,125,762 $5,253,085 $5,226,815 $4,407,794

Yield Analysis:
Average earning
assets $4,088,478 $4,083,550 $4,272,463 $4,183,320 $3,629,471
Yield 8.19% 8.50% 8.44% 8.39% 8.31%
Average interest-
bearing
deposits $2,083,278 $2,063,888 $2,002,905 $2,059,886 $1,705,768
Cost 2.74% 2.87% 2.34% 2.74% 1.95%
Average deposits $3,415,537 $3,447,295 $3,532,722 $3,486,790 $3,093,687
Cost 1.67% 1.72% 1.33% 1.62% 1.07%
Average interest-
bearing
liabilities $2,588,027 $2,482,320 $2,584,191 $2,565,243 $2,141,408
Cost 3.28% 3.40% 3.17% 3.35% 2.79%
Average subordinated
debentures 138,553 138,650 150,544 143,648 $132,389
Cost 7.77% 7.89% 8.39% 7.91% 8.50%
Average borrowings 366,196 279,782 430,742 361,709 $303,251

Cost 4.67% 5.05% 5.20% 4.99% 5.00%
Average interest
sensitive
liabilities $3,920,286 $3,865,727 $4,114,008 $3,992,147 $3,529,327
Cost 2.17% 2.18% 1.99% 2.15% 1.69%

Interest spread 4.89% 5.10% 5.27% 5.04% 5.52%
Net interest margin 6.11% 6.44% 6.52% 6.34% 6.67%

DEPOSITS (unaudited) As of the Dates Indicated
12/31/07 9/30/07 12/31/06
(Dollars in thousands)
Transaction accounts:
Demand deposits $1,211,946 $1,317,277 $1,571,361
Interest checking 366,191 363,394 295,364
Total transaction accounts 1,578,137 1,680,671 1,866,725

Non-transaction accounts:
Money market 1,135,307 1,206,977 1,090,648
Savings 108,223 116,293 140,820
Time deposits under $100,000 138,750 153,685 235,176
Time deposits over $100,000 284,729 284,699 352,364
Total non-transaction accounts 1,667,009 1,761,654 1,819,008
Total deposits $3,245,146 $3,442,325 $3,685,733

LOAN CONCENTRATION
(unaudited) As of the Dates Indicated
12/31/07 9/30/07 6/30/07 3/31/07 12/31/06

(Dollars in thousands)
Loan Category:
Domestic:
Commercial * $858,708 $864,114 $882,426 $792,877 $836,665
Real estate-
construction 717,419 795,272 839,564 918,086 939,463
Commercial real
estate-mortgage * 2,335,099 2,144,323 2,124,225 2,124,768 2,463,481
Consumer 49,943 48,550 46,355 46,755 45,984
Foreign:
Commercial 59,916 57,538 69,236 75,548 83,359
Other 1,206 5,879 5,848 6,342 6,778
Total gross loans,
including loans
held for sale $4,022,291 $3,915,676 $3,967,654 $3,964,376 $4,375,730

* Categories include loans held for sale.

COMPONENTS OF ALLOWANCE FOR CREDIT
LOSSES, NONPERFORMING ASSETS AND
CREDIT QUALITY MEASURES (Unaudited)
As of the Dates Indicated
12/31/07 9/30/07 12/31/06
ALLOWANCE FOR CREDIT LOSSES: (Dollars in thousands)
Allowance for loan losses $52,557 $50,568 $52,908
Reserve for unfunded loan commitments 8,471 8,271 8,271
Allowance for credit losses $61,028 $58,839 $61,179

NONPERFORMING ASSETS:
Nonaccrual loans $22,473 $23,049 $22,095
Other real estate owned 2,736 315 -
Total nonperforming assets $25,209 $23,364 $22,095

Allowance for loan losses to loans, net
of unearned income 1.33% 1.33% 1.26%
Allowance for credit losses to loans,
net of unearned income 1.55% 1.55% 1.46%
Allowance for loan losses to nonaccrual
loans 233.9% 219.4% 239.5%
Allowance for credit losses to
nonaccrual loans 271.6% 255.3% 276.9%
Allowance for loan losses to
nonperforming assets 208.5% 216.4% 239.5%
Allowance for credit losses to
nonperforming assets 242.1% 251.8% 276.9%
Nonperforming assets to total loans,
including loans held for sale,
and other real estate owned 0.63% 0.60% 0.51%
Nonaccrual loans to total loans,
including loans held for sale 0.56% 0.59% 0.51%

ALLOWANCE FOR CREDIT LOSSES ROLLFORWARD
AND NET CHARGE-OFF MEASUREMENT
(unaudited)
As of or for the:
Quarter
Ended Year Ended
12/31/07 12/31/07 12/31/06
(Dollars in thousands)

Balance at beginning of period $58,839 $61,179 $32,971
Loans charged-off:
Commercial (1,278) (2,091) (1,083)
Real estate - construction - (660) (144)
Real estate - mortgage (303) (454) -
Consumer (102) (166) (189)
Foreign - (1,414) (1,691)
Total loans charged-off (1,683) (4,785) (3,107)

Recoveries on loans charged-off:
Commercial 736 1,591 1,361
Real estate - mortgage 78 163 -
Consumer 58 122 171
Foreign - 73 187
Total recoveries on loans charged-off 872 1,949 1,719
Net (charge-offs) recoveries (811) (2,836) (1,388)
Provision for credit losses 3,000 3,000 9,600
Reduction for loans sold - (2,461) -
Additions due to acquisitions - 2,146 19,996
Balance at end of period $61,028 $61,028 $61,179

Annualized net (charge-offs)
recoveries
to average loans (0.08)% (0.07)% (0.04)%

SOURCE First Community Bancorp

Matthew P. Wagner, Chief Executive Officer, +1-310-728-1020, fax,
+1-310-201-0498, or Victor R. Santoro, Executive Vice President and Chief
Financial Officer, +1-310-728-1021, fax, +1-310-201-0498