EX-99.3 4 0004.txt PRO FORMA BALANCE SHEETS 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. UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEETS AS OF 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) 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."
2 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) 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."
3 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) 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."
4 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) 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."
5 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) 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."
6 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) 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."
7 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) 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."
8 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. 9