8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

October 26, 2006

Date of Report (Date of Earliest Event Reported)

FIRST COMMUNITY BANCORP

(Exact Name of Registrant As Specified In Its Charter)

California	00-30747	33-0885320
(State of Incorporation)	(Commission File Number)	(IRS Employer Identification Number)
	401 West “A” Street San Diego, CA 92101
(Address of principal executive offices) (Zip Code)
	(619) 233-5588
(Registrant’s telephone number, including area code)
	6110 El Tordo
	PO Box 2388
	Rancho Santa Fe, CA 92067
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.01               Completion of Acquisition or Disposition of Assets

On October 26, 2006, First Community Bancorp (the “Company” or “First Community”) completed its previously announced merger with Community Bancorp Inc. (“Community Bancorp”), the holding company for Community National Bank (“Community National”). Following the completion of this merger, Community National merged into First National Bank (“First National”), a wholly-owned subsidiary of the Company.

In the merger of Community Bancorp into the Company, each share of Community Bancorp common stock was converted into the right to receive 0.735 of a share of First Community common stock. First Community will issue an estimated 4,678,405 shares of First Community common stock to Community Bancorp stockholders. Approximately $6.1 million in cash was delivered to holders of outstanding and unexercised Community Bancorp options. Based on the closing price of First Community’s common stock on October 26, 2006 of $54.18 per share, the aggregate consideration to be paid to Community Bancorp stockholders and holders of options to acquire Community Bancorp common stock is approximately $259.6 million.

Attached hereto as Exhibit 99.1 is a copy of the Company’s press release dated October 27, 2006 with respect to the closing, which is incorporated herein by reference.

Item 2.02               Results of Operations and Financial Condition.*

On October 26, 2006, First Community Bancorp issued a press release announcing its results of operations and financial condition for the quarter and nine months ended September 30, 2006.  A copy of the press release is furnished as Exhibit 99.2 and incorporated herein by reference.

The Company notes that the unaudited condensed consolidated statement of income as of September 30, 2006 included in the press release incorrectly reported that the number of shares (weighted average) of First Community common stock (basic) for the nine months ended September 30, 2006 was 20,064.3 (in thousands).  The correct number of shares (weighted average) for such period was 22,064.3 (in thousands).

Item 5.02Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers

Effective upon the closing of the Community Bancorp merger, the Company appointed Michael J. Perdue, formerly the president and chief executive officer of Community Bancorp, as president of the Company.  Mr. Perdue was also appointed as president and a director of Pacific Western Bank, a wholly-owned subsidiary of the Company.

Mr. Perdue, 51, joined Community Bancorp in 2003 as president and chief operating officer and became chief executive officer and a member of the Community Bancorp board of directors on December 17, 2003. Mr. Perdue has been involved in banking and finance for over 27 years both in Oregon and Southern California. He has held senior management positions with several local financial institutions, including five years as executive vice president and chief operating officer and a director of Escondido-based FP Bancorp Inc., parent of First Pacific National Bank, which was acquired by Zions Bancorporation in 1998.

The material terms of the employment arrangement of Mr. Perdue provide that he will receive an annual salary of $310,000. The employment arrangement also provides for certain change in control benefits in the event of a change in control of the Company, participation in various benefit programs, including in the executive incentive bonus plan, a company-

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provided automobile and receipt of 30,000 restricted stock awards which are subject to certain performance vesting requirements.

Additionally, effective October 27, 2006, the Company appointed Mark N. Baker and Gary W. Deems as directors of the Company. Prior to the closing of the Community Bancorp acquisition, Mr. Deems was the chairman of Community Bancorp and Mr. Baker was the vice chairman of Community Bancorp. Mr. Baker is expected to be appointed to the Audit Committee of the Company’s board of directors and Mr. Deems is expected to be appointed to the Asset and Liability Management Committee of the Company’s board of directors.

In connection with the merger of the Company and Community Bancorp, Messrs. Perdue, Baker, and Deems all entered into non-solicitation agreements with the Company. In the event Messrs. Perdue, Baker, and Deems are no longer employed or serve on the board of directors of the Company, they are prohibited, for a period of generally two years following the completion of the merger of the Company with Community Bancorp, from transacting any activity customarily associated with commercial banking or lending or the operation of an institution the deposits of which are insured by the FDIC, called herein a competitive enterprise, with any customers of Community Bancorp. This restriction extends to the geographic area consisting of the California counties in which First National Bank operated at the closing of the merger. Customers for purposes of these agreements include existing customers of Community Bancorp or potential customers who were solicited in the 12 months prior to closing. In addition, all Community Bancorp directors, as well as its executive officers, entered into non-solicitation agreements with the Company agreeing that, for a period of generally two years from the effective date of the merger, they will not solicit the business of customers of Community Bancorp for a competitive enterprise, or solicit for employment the employees of Community Bancorp, or interfere or damage any relationship between Community Bancorp and its customers. They have also agreed not to disclose or use confidential information of Community Bancorp.

Item 7.01               Regulation FD Disclosure*

Matthew P. Wagner, chief executive officer of the Company, and Victor R. Santoro, executive vice president and chief financial officer of the Company, will make a series of presentations to current and potential investors on November 1-2, 2006 in New York, New York, and in Boston, Massachusetts at meetings arranged by Piper Jaffray & Co.  A copy of the presentation materials is attached hereto as Exhibit 99.3 and incorporated herein by reference. The presentation is also available on First Community’s website at www.firstcommunitybancorp.com under the section entitled “Presentations”.

Item 8.01               Other Events

On October 26, 2006, following the completion of the merger of Community Bancorp into the Company and the subsequent merger of Community National into First National, the Company completed its previously announced plan of consolidation by merging First National with and into Pacific Western Bank (“Pacific Western”), a California state-chartered bank and another wholly-owned subsidiary of First Community, with Pacific Western as the surviving entity.   In connection with the consolidation of First National into Pacific Western Bank, First National’s wholly-owned subsidiary and asset-based lender, First Community Financial Corp.,

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was reorganized as a division of Pacific Western Bank.  Additionally, First Community Bancorp and Pacific Western Bank have each established 401 West “A” Street, San Diego, California 92101 as the location of their headquarters.

Upon completion of the merger of First National into Pacific Western, as noted above, Michael J. Perdue was named president of Pacific Western and appointed to its board of directors. Additionally, Robert M. Borgman, executive vice president of the Company and formerly president and chief executive officer of First National, was named executive vice president, credit administration for the Company and Pacific Western, reporting to Mr. Wagner, and was appointed to the board of directors of Pacific Western.

Item 9.01               Financial Statements and Exhibits*

(a)Financial Statements of Businesses Acquired.

Financial statements of Community Bancorp were previously filed with the Company’s registration statement on Form S-4 (File No. 333-136041), as amended, filed with the Securities and Exchange Commission on July 26, 2006 and amended on August 22, 2006 and accordingly are not required to be filed herewith pursuant to General Instruction B.3 of Form 8-K.

To the extent required by this item, additional financial information will be filed as part of an amendment to this report on Form 8-K no later than 71 calendar days after the date this report is required to be filed.

(b)Pro Forma Financial Information.

Pro forma financial information of First Community Bancorp with respect to the merger with Community Bancorp was previously filed with the Company’s registration statement on Form S-4 (File No. 333-136041), as amended, filed with the Securities and Exchange Commission on July 26, 2006 and amended August 22, 2006 and accordingly is not required to be filed herewith pursuant to General Instruction B.3 of Form 8-K.

To the extent required by this item, additional pro forma financial information will be filed as part of an amendment to this report on Form 8-K no later than 71 calendar days after the date this report is required to be filed.

(d)Exhibits.

The following exhibits are included herewith:

Exhibit No.	Description
99.1	Press release dated October 27, 2006.
99.2	Press release dated October 26, 2006.

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99.3 Copy of First Community Bancorp presentation to be provided to current and potential investors on November 1-2, 2006 in New York, NY and in Boston, MA at meetings arranged by Piper Jaffray & Co.

*The information furnished under Item 2.02 and Item 7.01 and Item 9.01 (with respect to Exhibits 99.2 and 99.3) of this Current Report on Form 8-K, including the exhibits corresponding thereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section, nor shall it be deemed incorporated by reference in any registration statement or other filings of First Community Bancorp under the Securities Act of 1933, as amended, except as shall be set forth by specific reference in such filing.

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release dated October 27, 2006.
99.2	Press release dated October 26, 2006.
99.3	Copy of First Community Bancorp presentation to be provided to current and potential investors on November 1-2, 2006 in New York, NY and in Boston, MA at meetings arranged by Piper Jaffray & Co.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunder duly authorized.

Dated: October 30, 2006

FIRST COMMUNITY BANCORP
By:	/s/ Jared M. Wolff
	Name:	Jared M. Wolff
	Title:	Executive Vice President, General Counsel and Secretary

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EX-99.1

Exhibit 99.1

PRESS RELEASE

First Community Bancorp

(NASDAQ: FCBP)

Contact:	Matthew P. Wagner Chief Executive Officer 10250 Constellation Boulevard Suite 1640 Los Angeles, CA 90067	Michael J. Perdue President First Community Bancorp 900 Canterbury Place, Suite 300 Escondido, CA 92025
Phone:	310-728-1020	760-432-1150
Fax:	310-201-0498	760-432-1119

FOR IMMEDIATE RELEASE OCTOBER 27, 2006

FIRST COMMUNITY BANCORP ANNOUNCES COMPLETION OF THE MERGER WITH COMMUNITY BANCORP INC. AND CONSOLIDATION OF BANKS INTO PACIFIC WESTERN BANK

—Merger and Consolidation creates $5.5 billion consolidated asset bank under

the banner Pacific Western Bank—

—65 Branches across Los Angeles, Orange, Riverside, San Bernardino

and San Diego Counties—

—Headquarters Moved to San Diego—

San Diego, California . . .. First Community Bancorp (Nasdaq: FCBP) today announced that on October 26, 2006 it completed its previously announced merger with Community Bancorp Inc. (Nasdaq: CMBC), the holding company for Community National Bank, which had approximately $880.1 million in consolidated assets at September 30, 2006. With the completion of this merger, Community National Bank merged into First National Bank, a wholly-owned subsidiary of First Community Bancorp.  Immediately following the merger with Community National, First National Bank merged into its affiliate Pacific Western Bank.   As a result, First Community Bancorp now has a single subsidiary, Pacific Western Bank, with $5.5 billion in consolidated assets and 65 branches across Los Angeles, Orange, Riverside, San Bernardino and San Diego Counties, and one branch in San Francisco, California.

In the merger with Community Bancorp, each share of Community Bancorp common stock was converted into the right to receive 0.735 of a share of First Community common stock.  First Community will issue an estimated 4,678,405 shares of First Community common stock to Community Bancorp stockholders.  Approximately $6.1 million in cash was delivered to holders of outstanding and unexercised Community Bancorp options.  Based on the closing price of First Community’s common stock on October 26, 2006 of $54.18 per share, the aggregate consideration to be paid to Community Bancorp stockholders and holders of options to acquire Community Bancorp common stock is approximately $259.6 million.

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As previously announced, Michael J. Perdue, formerly president and chief executive officer of Community Bancorp, has been named president of First Community Bancorp and president, and a director, of Pacific Western Bank.  Mr. Perdue reports to Matt Wagner, chief executive officer of First Community and chairman and chief executive officer of Pacific Western Bank.  Additionally, Robert M. Borgman, executive vice president of the Company and formerly president and chief executive officer of First National Bank, has been named executive vice president, credit administration, for both First Community Bancorp and Pacific Western Bank, reporting to Mr. Wagner.  Mr. Borgman has also joined Pacific Western’s board of directors.

Effective October 27, 2006, Mr. Gary W. Deems, former chairman of Community Bancorp and Mr. Mark N. Baker, a former director of Community Bancorp, have joined First Community’s board of directors.

The integration of Community National Bank systems and the conversion of Community National Bank’s branches to Pacific Western Bank’s operating platform are scheduled to be completed in November 2006.  The integration of the First National Bank’s systems and branches with Pacific Western Bank’s platform is scheduled to be completed in February 2007.

In connection with the consolidation of First National into Pacific Western Bank, First National’s wholly-owned subsidiary and asset-based lender, First Community Financial Corp., was reorganized as a division of Pacific Western Bank.  Additionally, First Community Bancorp and Pacific Western Bank have each established San Diego, California as the location of their headquarters.

ABOUT FIRST COMMUNITY BANCORP

First Community Bancorp is a bank holding company with $4.6 billion in assets as of September 30, 2006.  On a pro forma consolidated basis with Community Bancorp, First Community would have had approximately $5.5 billion in assets as of September 30, 2006. Through its wholly-owned subsidiary Pacific Western Bank, First Community provides commercial banking services, including real estate, construction and commercial loans, and asset-based lending to small and medium-sized businesses. Pacific Western has 65 branches located across Los Angeles, Orange, Riverside, San Bernardino and San Diego Counties, and one branch in San Francisco, California (which includes the branches of Community National Bank and First National Bank acquired in October 2006).  Through its loan production offices in Arizona and Texas, Pacific Western also provides working capital for growing business across the Southwestern United States. Additional information regarding First Community Bancorp is available on the Internet at www.firstcommunitybancorp.com. Information regarding Pacific Western Bank is also available on the Internet at www.pacificwesternbank.com.

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EX-99.2

Exhibit 99.2

PRESS RELEASE

First Community Bancorp

(NASDAQ: FCBP)

Contact:	Matthew P. Wagner President and Chief Executive Officer 10250 Constellation Boulevard Suite 1640 Los Angeles, CA 90067	Victor R. Santoro Executive Vice President and Chief Financial Officer 10250 Constellation Boulevard Suite 1640 Los Angeles, CA 90067
Phone:	310-728-1020	310-728-1021
Fax:	310-201-0498	310-201-0498

FOR IMMEDIATE RELEASE                                                                                            October 26, 2006

FIRST COMMUNITY BANCORP ANNOUNCES RECORD EARNINGS FOR THE THIRD QUARTER OF 2006

—Net Earnings for the Third Quarter 2006 Totaled $21.4 Million, Up 65% over the
Third Quarter of 2005—
—-Third Quarter 2006 Diluted Earnings Per Share of $0.88—
— Third Quarter Organic Loan Growth of $107.6 Million—
—Third Quarter 2006 Net Interest Margin of 6.60%—

Rancho Santa Fe, California . . . First Community Bancorp (Nasdaq: FCBP) today announced net earnings for the quarter ended September 30, 2006, of $21.4 million, or $0.88 per diluted share, compared to net earnings of $13.0 million, or $0.78 per diluted share, for the quarter ended September 30, 2005, and net earnings of $14.5 million, or $0.64 per diluted share, for the second quarter of 2006.  The increase in net earnings compared to last year resulted primarily from increased net interest income due to acquisitions and organic loan growth, partially offset by higher noninterest expense associated with business growth. The increase in net earnings and diluted earnings per share for the third quarter of 2006 from the second quarter of 2006 is due to higher net interest income and a decreased credit loss provision.

Net earnings for the nine months ended September 30, 2006, were $53.2 million, or $2.39 per diluted share, compared to net earnings of $35.1 million, or $2.13 per diluted share, for the same period of 2005.  The increase is due to acquisitions and organic loan growth.

The comparability of financial information is affected by our acquisitions.  Operating results include the operations of acquired entities from the dates of acquisition.  We closed our acquisition of Foothill Independent Bank in May 2006, which added $897.9 million in

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assets, and we acquired Cedars Bank in January 2006, which added $488.9 million in assets.  In addition, we acquired First American Bank in August 2005 and Pacific Liberty Bank in October 2005, which together added $469.2 million in assets.

Matt Wagner, President and Chief Executive Officer, stated, “We had a productive third quarter, with organic loan growth of almost $108 million.  We completed Pacific Western Bank’s state charter conversion on September 13, 2006 and we expect to close our acquisition of Community Bancorp later today.  This acquisition significantly expands our footprint in the San Diego region and adds approximately $900 million to our assets, bringing us to a pro forma asset level of $5.5 billion at September 30, 2006.  The merger of our subsidiary First National Bank into Pacific Western Bank, along with the completion of our acquisition of Community Bancorp, will enable us to serve even better our current and future customers throughout our office network, and establish Pacific Western as the largest community bank based in San Diego County, the sixth largest county in the country.”

Mr. Wagner continued, “On the credit side, although we made progress reducing our adversely-classified assets, our nonaccrual loans increased at the end of the quarter.  As of October 23, 2006, our nonaccrual loans were reduced by $3.9 million to $17.0 million.   During the second quarter, we made a large credit loss provision in response to acquired loans, portfolio growth, and our analysis of current market conditions.  Based on our third quarter analysis, we did not make a credit loss provision.  We continue to believe that the level of our allowance for credit losses accurately reflects the risk in our portfolio in the current lending environment.”

Vic Santoro, Executive Vice President and Chief Financial Officer, also commented, “Our net interest margin was 6.60% for the third quarter, 19 basis points less than the 6.79% for the second quarter, which is still respectably high when compared to our peers.  A full quarter of Foothill’s liability sensitive profile, reliance on borrowings to fund loan growth and deposit flows, and some competitive pressures caused the decline.”

Mr. Santoro continued, “A great deal of our effort since the beginning of the year has been devoted to integrating our acquisitions and realigning the acquired deposit bases within our pricing structure.  The deposit realignment, along with competitive forces, resulted in deposit outflow.  Since September 30, we sold approximately $100 million in securities yielding 3.52% at a loss of approximately $1.3 million after-tax in an effort to reduce our reliance on borrowed funds and to improve net interest income.  We are evaluating the possibility of shrinking the balance sheet further after completion of the Community Bancorp acquisition.  We believe that selected dispositions of loans coupled with the planned retirement of $20.6 million of 9.71% subordinated debentures in December and reductions in borrowed funds will present opportunities for us to increase return on assets and maintain our net interest margin.”

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THIRD QUARTER RESULTS

In thousands, except per share data and percentages	Third Quarter 2006			Third Quarter 2005			% Change		Second Quarter 2006			% Change
Net Earnings	$	21,375		$	12,994		64.5	%	$	14,451		47.9	%
Diluted Share Count	24,407.6			16,747.6			45.7	%	22,736.9			7.3	%
Diluted Earnings Per Share	$	0.88		$	0.78		12.8	%	$	0.64		37.5	%
Return on Average Assets (ROA)	1.87		%	1.71		%	9.4	%	1.39		%	34.5	%
Return on Average Equity (ROE)	9.62		%	12.46		%	(22.8	)%	7.49		%	28.4	%
Net Interest Margin	6.60		%	6.40		%	3.1	%	6.79		%	(2.8	)%
Efficiency Ratio	45.5		%	50.1		%	(9.2	)%	45.7		%	(0.4	)%

The increase in net earnings and diluted earnings per share, and the improvement in the efficiency ratio for the third quarter of 2006 compared to the third quarter of 2005 were driven by net interest margin expansion and increased average loans. Average loans increased from a combination of organic growth and acquisitions.  The increase in net earnings and diluted earnings per share for the third quarter of 2006 compared to the second quarter of 2006 was due mainly to organic loan growth and decreased credit loss provision.  We recorded a $9.5 million ($5.5 million after-tax) credit loss provision in the second quarter compared to none in the third quarter.

YEAR TO DATE RESULTS

	Nine Months Ended September 30,
In thousands, except per share data and percentages	2006			2005			% Change
Net Earnings	$	53,229	*	$	35,074		51.8	%
Diluted Share Count	22,289.4			16,449.9			35.5	%
Diluted Earnings Per Share	$	2.39	*	$	2.13		12.2	%
Return on Average Assets (ROA)	1.72		%	1.61		%	6.8	%
Return on Average Equity (ROE)	9.53		%	11.94		%	(20.2	)%
Net Interest Margin	6.73		%	6.19		%	8.7	%
Efficiency Ratio	46.1		%	50.9		%	(9.4	)%

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

The increases in net earnings, diluted earnings per share and ROA and the improvement in the efficiency ratio for the nine months ended September 30, 2006 compared to the same period in 2005 were driven by net interest margin expansion, increases in our average loans, and acquisitions.

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BALANCE SHEET GROWTH

Loans, net of unearned income, increased $107.6 million to $3.5 billion at September 30, 2006, from June 30, 2006.  Loan growth was centered in commercial real estate loans. Deposits decreased $157.7 million to $3.0 billion at September 30, 2006, from June 30, 2006.  Demand deposits totaled $1.4 billion at September 30, 2006, and represented 44.8% of total deposits at that date.  Loan demand in excess of deposit growth was funded by borrowings from the Federal Home Loan Bank.

NET INTEREST INCOME CONTINUES TO INCREASE

Net interest income increased to $61.7 million for the third quarter of 2006 compared to $40.8 million for the same period of 2005 and $58.0 million for the second quarter of 2006. The increases compared to the third quarter of 2005 and the second quarter of 2006 were mainly a result of increased interest income from our loan growth offset partially by higher interest expense.  Average earning assets increased $1.2 billion to $3.7 billion for the third quarter of 2006 when compared to the same period for 2005, due almost entirely to the increase in average loans.  These increases resulted from both acquisitions and organic growth.  Average earning assets increased $280.8 million, including a $288.0 million increase in average loans, for the third quarter of 2006 when compared to the second quarter of 2006 due to organic growth and the impact of the Foothill acquisition.  Our loan yield decreased 7 basis points to 8.59% for the third quarter when compared to the second quarter due to the impact competition had on new loan rates.  Interest expense increased $9.8 million for the third quarter of 2006 compared to the third quarter of 2005 and increased $2.8 million compared to the second quarter of 2006.  These increases were due mostly to an increase in our total funding sources, as well as to the cost of such funds.

Net interest income increased $58.2 million to $171.7 million for the nine months ended September 30, 2006 compared to the same period of 2005. The increase was mainly a result of increased interest income from our loan growth and higher loan yields, offset partially by higher interest expense.

NET INTEREST MARGIN

Our net interest margin for the third quarter of 2006 was 6.60%, an increase of 20 basis points when compared to the same period of 2005 and a decrease of 19 basis points when compared to the second quarter of 2006. Yields on average earning assets were 8.29% and 7.33% for the third quarters of 2006 and 2005, respectively, and 8.30% for the second quarter of 2006. The yield on average loans was 8.59% and 7.92% for the third quarters of 2006 and 2005, and 8.66% for the second quarter of 2006.  The increase in the net interest margin in the third quarter of 2006 over the same period of 2005 is due mainly to the combination of our increased loan volume and our higher prime lending rate, offset in part by increased funding costs. The decrease in the net interest margin in the third quarter of 2006 over the second quarter of 2006 is due mainly to the impact of the mix and rate structure of deposits acquired in the Foothill acquisition, the competitive interest rate pressures on new loan originations, and increased borrowings used to fund loans and deposit flows.

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The average cost of deposits was 1.09% for the third quarter of 2006 compared to 0.51% for the third quarter of 2005 and 0.97% for the second quarter of 2006. The increased deposit cost in the third quarter of 2006 compared to the same period of 2005 and second quarter of 2006 resulted from upward adjustments made in rates offered on money market and certain time deposits in response to competition as well as the impact of the higher-cost deposits acquired in the Foothill acquisition.  The overall cost of interest-bearing liabilities increased to 2.91% for the third quarter of 2006 compared to 1.63% for the same period of 2005 and 2.60% for the second quarter of 2006.  The increase over both the third quarter of 2005 and the second quarter of 2006 is due to a combination of increased deposit costs, increased average borrowings used to fund loan growth and deposit flows, and the repricing of our borrowings in the higher interest rate environment.

Our net interest margin for the nine months ended September 30, 2006 was 6.73%, an increase of 54 basis points when compared to the same period of 2005.  The increase is primarily the result of higher average loan balances and loan yields.

NONINTEREST INCOME INCREASED

Noninterest income for the third quarter of 2006 totaled $4.8 million compared to $3.5 million earned in the same period in 2005, and $4.3 million in the second quarter of 2006.  Noninterest income for the nine months ended September 30, 2006 totaled $12.8 million compared to $10.3 million earned in the same period in 2005.  The increases in noninterest income result largely from increased service charges and fees for deposits, which are attributed to our acquisitions, and increases in fees for other services, such as letters of credit and foreign exchange.

NONINTEREST EXPENSE ITEMS

Noninterest expense for the third quarter of 2006 totaled $30.3 million compared to $22.2 million for the same period in 2005 and $28.5 million for the second quarter of 2006. The increase compared to the third quarter of 2005 relates mostly to increased compensation expense resulting from additional staff added through our acquisitions, pay rate increases, and increased employee benefits costs.  Occupancy costs increased due to additional office locations added by acquisitions and most other general operating expenses increased due to the four acquisitions completed since August 2005.  Other professional services declined due to a decrease in legal fees, which is in turn attributed to a legal settlement reached in the fourth quarter of 2005.

The increase in noninterest expense for the third quarter compared to the second quarter of 2006 is due mainly to an increase in compensation costs, other professional services and assessments.  Compensation increased due mostly to a combination of increased benefit costs and stock award amortization expense, increased staffing levels to support our business expansion and the effect of including Foothill for an entire quarter.  Other professional services increased due to legal fees and our decision to outsource our facilities management beginning in August 2006.    Insurance and assessments included an additional $145,000 in relation to Pacific Western Bank’s charter conversion.  Other expenses for the third quarter included a $220,000 increase in customer-related and loan-related expenses, $84,000 more in amortization of SBA servicing assets due to

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prepayments, and a $58,000 increase in shareholder expenses due to our acquisition activity.

Noninterest expense includes amortization of restricted and performance stock, which is included in compensation, and intangible asset amortization.  Restricted and performance stock amortization totaled $2.1 million for the third quarter of 2006 compared to $1.1 million for the third quarter of 2005 and $1.9 million for the second quarter of 2006.  The increase compared to the prior quarters resulted largely from additional awards made during the each of the quarters of 2006.  Amortization expense for all restricted and performance stock awards is estimated to be $7.5 million for 2006.  Intangible asset amortization increased from the second quarter of 2006 to the third quarter of 2006 by approximately $215,000 to $1.8 million.  This increase resulted from additional amortization related primarily to the Foothill acquisition. Intangible asset amortization is estimated to be $6.3 million for 2006, excluding any effect from the announced Community Bancorp acquisition.  The 2006 estimates of both restricted and performance stock award expense and intangible asset amortization are subject to change.

Noninterest expense for the nine months ended September 30, 2006 totaled $85.0 million compared to $63.1 million for the same period in 2005.  The increase is due mostly to an increase in the number of employees and branches to support our expanded operations.  Our branch network has expanded through our acquisitions to 55 branches as of the end of September 2006 compared to 35 branches as of the end of June 2005.

CREDIT QUALITY

During the third quarter of 2006, we made no provision for credit losses based on our reserve methodology, which considers the level of classified, criticized and nonaccrual loans as well as total loan volumes and market conditions. This compares to a $9.5 million provision for credit losses recorded in the second quarter of 2006.  The second quarter provision reflected an increase in the level of nonaccrual loans, the credit quality of an acquired portfolio, our analysis of current market conditions including the outlook for real estate related loans, and organic loan growth.

Our nonaccrual loans increased $5.3 million to $20.9 million at September 30, 2006 compared to $15.6 million at June 30, 2006.  The increase is largely the result of five loan relationships totaling $5.4 million that were placed on nonaccrual status at the end of the quarter.  As a result of our efforts to reduce nonaccrual loans, nonaccrual loans totaled $17.0 million at October 23, 2006. We previously disclosed that we adversely classified certain Cedars-acquired loans in accordance with our criteria during the second quarter.  During the third quarter these loans were reduced by $5.9 million through full repayment.  We continue to work on our plan to reduce these loans by strengthening the underlying documentation, obtaining additional collateral and/or payments from borrowers, or possibly selling selected loans.

At September 30, 2006, the ratio of our allowance for credit losses to loans, net of unearned income, was 1.47% compared to 1.51% at June 30, 2006.   The allowance for total credit losses totaled $51.9 million at both September 30, 2006 and June 30, 2006.

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ACCOUNTING CHANGE

On January 1, 2006, we adopted Statement of Financial Accounting Standards No. 123 (revised 2004), Share-Based Payment, (“SFAS 123R”).  As permitted under formerly effective accounting rules, we did not consider estimated forfeitures of stock awards during periods prior to January 1, 2006, and recognized the effect of forfeitures as they occurred.  As required by SFAS 123R, we recognized the cumulative effect of estimated forfeitures for unvested restricted stock awards as of December 31, 2005, by increasing our first quarter of 2006 earnings by $242,000.  The after tax effect of this adjustment was to increase net earnings by $142,000, or less than $0.01 per diluted share.

REGULATORY CAPITAL MEASURES ARE ABOVE THE WELL-CAPITALIZED MINIMUMS

First Community and its wholly-owned banking subsidiaries, Pacific Western Bank and First National Bank, each remained well capitalized at September 30, 2006.

PENDING ACQUISITION AND PLAN OF CONSOLIDATION

As previously announced we entered into a definitive agreement and plan of merger to acquire Community Bancorp Inc. for consideration consisting of First Community common stock and cash for outstanding Community Bancorp stock options.  First Community and Community Bancorp each received the shareholder approvals sought in connection with the transaction at their respective shareholder meetings held on September 27, 2006.  When the merger is completed, Community Bancorp shareholders will receive approximately 4.7 million shares of First Community common stock, based on an exchange ratio of 0.735 of a share of First Community common stock for each share of Community Bancorp common stock.  Approximately $6.1 million is expected to be delivered to Community Bancorp option holders.  Community Bancorp, which is headquartered in Escondido, California, is the parent of Community National Bank and had $880.1 million in assets and 12 branches across San Diego and Riverside Counties at September 30, 2006. Upon completion of the acquisition, Community National Bank will be merged into First National Bank, a San Diego-based wholly-owned subsidiary of First Community.  All regulatory approvals have been received and we expect to complete the acquisition of Community Bancorp on October 26, 2006.

Also, as previously announced, First Community’s subsidiaries, Pacific Western Bank and First National Bank, filed an application with the Federal Deposit Insurance Corporation to merge First National Bank into Pacific Western Bank immediately following the completion of the acquisition of Community Bancorp and the merger of Community National Bank into First National Bank. In July 2006, First National Bank received the approval of the Office of the Comptroller of the Currency to merge Community National Bank into First National Bank.  All regulatory approvals have been received and the consolidation of First National (including Community National Bank) into Pacific Western is scheduled to be completed on October 26, 2006.

7

ABOUT FIRST COMMUNITY BANCORP

First Community Bancorp is a bank holding company with $4.6 billion in assets as of September 30, 2006, with two wholly-owned banking subsidiaries, Pacific Western Bank and First National Bank. Through the banks’ 55 full-service community banking branches, First Community provides commercial banking services, including real estate, construction and commercial loans, to small and medium-sized businesses. Pacific Western has 42 branches located in Los Angeles, Orange, Riverside and San Bernardino Counties, and in San Francisco, California and First National Bank has 13 branches across San Diego County.  Through its subsidiary First Community Financial, First National 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 www.firstcommunitybancorp.com. Information regarding Pacific Western Bank and First National Bank is also available on the Internet at www.pacificwesternbank.com and www.banksandiego.com, respectively.

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 First Community. First Community cautions 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: the possibility that personnel changes will not proceed as planned; planned acquisitions and related cost savings cannot be realized or realized within the expected time frame; costs and uncertainties related to the outcome of pending litigation;  revenues are lower than expected; competitive pressure among depository institutions increases significantly; the integration of acquired businesses costs more, takes longer or is less successful than expected; the cost of additional capital is more than expected; a change in the interest rate environment reduces interest margins; general economic conditions, either nationally or in the market areas in which First Community operates, are less favorable than expected; legislative or regulatory requirements or changes that adversely affect First Community’s business or regulatory capital requirements, or that alter the regulatory capital treatment of the Company’s trust preferred securities; changes in the securities markets 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

8

Bancorp’s website at www.firstcommunitybancorp.com or at the SEC’s website at 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.

9

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30,			December 31,
	2006			2005
	(In thousands, except share data)
Assets:
Cash and due from banks	$	116,057		$	100,662
Federal funds sold	10,500			4,600
Total cash and cash equivalents	126,557			105,262
Interest-bearing deposits in financial institutions	287			90
Federal Reserve Bank and Federal Home Loan
Bank stock, at cost	31,646			26,753
Securities available-for-sale	203,306			212,601
Total securities	234,952			239,354
Loans, net of unearned income	3,542,595			2,467,828
Allowance for loan losses	(43,943		)	(27,303		)
Net loans	3,498,652			2,440,525
Premises and equipment	29,334			19,063
Intangible assets	586,975			323,188
Cash surrender value of life insurance	68,083			56,207
Other assets	56,634			42,722
Total assets	$	4,601,474		$	3,226,411
Liabilities and Shareholders’ Equity:
Liabilities:
Noninterest-bearing deposits	$	1,354,726		$	1,179,808
Interest-bearing deposits	1,667,128			1,225,553
Total deposits	3,021,854			2,405,361
Accrued interest payable and other liabilities	41,841			38,318
Borrowings	513,400			160,300
Subordinated debentures	129,902			121,654
Total liabilities	3,706,997			2,725,633
Shareholders’ Equity:
Common stock	760,870			400,868
Retained earnings	135,084			102,325
Accumulated other comprehensive income:
Unrealized loss on securities available-for-sale, net	(1,477		)	(2,415		)
Total shareholders’ equity	894,477			500,778
Total liabilities and shareholders’ equity	$	4,601,474		$	3,226,411
Shares outstanding (includes 685,681 shares at September 30, 2006, and 405,831 shares at December 31, 2005,underlying unvested stock awards)	24,985,788			18,346,566
Book value per share	$	35.80		$	27.30

10

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

	Quarters Ended						Nine Months Ended September 30,
	9/30/06		6/30/06		9/30/05		2006		2005
	(In thousands, except per share data)
Interest income:
Interest and fees on loans	$	74,726	$	68,330	$	44,533	$	203,005	$	123,082
Interest on federal funds sold	62		66		564		192		866
Interest on time deposits in other financial institutions	4		5		2		24		5
Interest on investment securities	2,730		2,588		1,635		7,484		5,680
Total interest income	77,522		70,989		46,734		210,705		129,633
Interest expense:
Interest expense on deposits	8,617		7,136		3,014		21,382		7,420
Interest expense on borrowings	4,238		3,118		740		9,519		2,501
Interest expense on subordinated debentures	2,922		2,697		2,200		8,069		6,135
Total interest expense	15,777		12,951		5,954		38,970		16,056
Net interest income before provision for credit losses	61,745		58,038		40,780		171,735		113,577
Provision for credit losses	—		9,500		—		9,600		1,420
Net interest income after provision for credit losses	61,745		48,538		40,780		162,135		112,157
Noninterest income:
Service charges on deposit accounts	2,412		1,986		1,594		5,957		4,856
Other commissions and fees	1,624		1,641		1,055		4,819		3,128
Gain on sale of loans, net	—		—		208		—		467
Increase in cash surrender value of life insurance	616		531		392		1,568		1,221
Other income	124		178		265		473		675
Total noninterest income	4,776		4,336		3,514		12,817		10,347
Noninterest expense:
Compensation	15,708		14,865		12,107		45,803		35,396
Occupancy	3,809		3,905		2,819		10,859		7,867
Furniture and equipment	1,073		981		679		2,815		1,990
Data processing	1,773		1,719		1,223		4,827		3,564
Other professional services	1,529		1,016		1,741		3,665		3,563
Business development	327		353		334		1,027		853
Communications	839		749		516		2,214		1,445
Insurance and assessments	716		492		411		1,680		1,289
Intangible asset amortization	1,791		1,577		915		4,517		2,541
Other	2,691		2,832		1,468		7,581		4,548
Total noninterest expense	30,256		28,489		22,213		84,988		63,056
Earnings before income taxes and effect of accounting change	36,265		24,385		22,081		89,964		59,448
Income taxes	14,890		9,934		9,087		36,877		24,374
Net earnings before cumulative effect of accounting change	21,375		14,451		12,994		53,087		35,074
Cumulative effect on prior years (to December 31, 2005) of changing the method of accounting for stock-based compensation forfeitures	—		—		—		142		—
Net earnings	$	21,375	$	14,451	$	12,994	$	53,229	$	35,074
Per share information
Number of shares (weighted average):
Basic	24,252.3		22,509.2		16,425.3		20,064.3		16,087.3
Diluted	24,407.6		22,736.9		16,747.6		22,289.4		16,449.9
Basic earnings per share:
Net earnings before accounting change	$	0.88	$	0.64	$	0.79	$	2.41	$	2.18
Accounting change (1)	—		—		—		-		-
Basic earnings per share	$	0.88	$	0.64	$	0.79	$	2.41	$	2.18
Diluted earnings per share:
Net earnings before accounting change	$	0.88	$	0.64	$	0.78	$	2.39	$	2.13
Accounting change (1)	—		—		—		-		-
Diluted earnings per share	$	0.88	$	0.64	$	0.78	$	2.39	$	2.13

(1) Less than $0.01 per diluted share for the nine months ended September 30, 2006.

11

UNAUDITED AVERAGE BALANCE
SHEETS

	Quarters Ended									Nine Months Ended September 30,
	9/30/06			6/30/06			9/30/05			2006			2005
	(Dollars in thousands)
Average Assets:
Loans, net of unearned income	$	3,451,376		$	3,163,362		$	2,231,702		$	3,154,518		$	2,165,192
Investment securities	254,608			260,536			232,677			251,374			249,061
Federal funds sold	4,731			5,898			64,592			6,006			39,354
Interest-bearing deposits in financial institutions	324			468			200			887			237
Average earning assets	3,711,039			3,430,264			2,529,171			3,412,785			2,453,844
Other assets	828,501			738,114			481,848			724,119			454,293
Average total assets	$	4,539,540		$	4,168,378		$	3,011,019		$	4,136,904		$	2,908,137
Average Liabilities and Shareholders’ Equity:
Average liabilities
Noninterest-bearing deposits	$	1,437,035		$	1,342,328		$	1,099,769		$	1,340,100		$	1,037,834
Interest-bearing deposits	1,699,072			1,613,881			1,235,500			1,605,634			1,205,672
Average deposits	3,136,107			2,956,209			2,335,269			2,945,734			2,243,506
Subordinated debentures	130,603			126,457			121,654			126,271			121,654
Other interest-bearing liabilities	322,482			257,347			93,179			260,287			109,418
Other liabilities	69,025			53,990			47,185			58,036			40,872
Average liabilities	3,658,217			3,394,003			2,597,287			3,390,328			2,515,450
Average equity	881,323			774,375			413,732			746,576			392,687
Average liabilities and shareholders’ equity	$	4,539,540		$	4,168,378		$	3,011,019		$	4,136,904		$	2,908,137
Yield Analysis:
Average earning assets	$	3,711,039		$	3,430,264		$	2,529,171		$	3,412,785		$	2,453,844
Yield	8.29		%	8.30		%	7.33		%	8.25		%	7.06		%
Average interest-bearing deposits	$	1,699,072		$	1,613,881		$	1,235,500		$	1,605,634		$	1,205,672
Cost	2.01		%	1.77		%	0.97		%	1.78		%	0.82		%
Average deposits	$	3,136,107		$	2,956,209		$	2,335,269		$	2,945,734		$	2,243,506
Cost	1.09		%	0.97		%	0.51		%	0.97		%	0.44		%
Average interest-bearing liabilities	$	2,152,157		$	1,997,685		$	1,450,333		$	1,992,192		$	1,436,744
Cost	2.91		%	2.60		%	1.63		%	2.62		%	1.49		%
Average subordinated debentures	$	130,603		$	126,457		$	121,654		$	126,271		$	121,654
Cost	8.88		%	8.55		%	7.17		%	8.54		%	6.74		%
Average other interest-bearing liabilities	$	322,482		$	257,347		$	93,179		$	260,287		$	109,418
Cost	5.21		%	4.86		%	3.15		%	4.89		%	3.06		%
Interest spread	5.38		%	5.70		%	5.70		%	5.63		%	5.57		%
Net interest margin	6.60		%	6.79		%	6.40		%	6.73		%	6.19		%
Average interest sensitive liabilities	$	3,589,192		$	3,340,013		$	2,550,102		$	3,332,292		$	2,474,578
Cost	1.74		%	1.56		%	0.93		%	1.56		%	0.87		%

LOAN CONCENTRATION
(unaudited)

	As of the Dates Indicated
	9/30/06		6/30/06		3/31/06		12/31/05		9/30/05
	(Dollars in thousands)
Loan Category:
Domestic:
Commercial	$	705,546	$	716,418	$	672,211	$	639,393	$	610,075
Real estate—construction	755,813		763,861		683,180		570,080		506,469
Commercial real estate—mortgage	1,952,547		1,812,484		1,321,657		1,117,030		1,049,745
Consumer	46,910		54,455		49,958		47,221		41,739
Foreign:
Commercial	88,826		95,692		98,152		94,930		94,402
Other	6,656		7,182		7,728		8,320		9,365
Total gross loans	$	3,556,298	$	3,450,092	2,832,886		2,476,974		2,311,795

12

CREDIT QUALITY MEASURES
(Unaudited)

	As of or for the:
	Quarter Ended			Quarter Ended			Quarter Ended			Year Ended
	9/30/06			6/30/06			3/31/06			12/31/05
Nonaccrual loans	$	20,907		$	15,613		$	11,539		$	8,422
Other real estate owned	—			—			—			—
Total nonperforming assets	$	20,907		$	15,613		$	11,539		$	8,422
Charged-off loans	$	(367	)	$	(1,299	)	$	(385	)	$	(3,518	)
Recoveries	362			528			477			2,360
Net (charge-offs) recoveries	$	(5	)	$	(771	)	$	92		$	(1,158	)
Allowance for loan losses to loans, net of unearned income	1.24		%	1.26		%	1.12		%	1.11		%
Allowance for credit losses to loans, net of unearned income	1.47		%	1.51		%	1.34		%	1.34		%
Allowance for loan losses to nonaccrual loans	210.2		%	278.3		%	273.0		%	324.2		%
Allowance for credit losses to nonaccrual loans	248.3		%	332.6		%	328.8		%	391.5		%
Allowance for loan losses to nonperforming assets	210.2		%	278.3		%	273.0		%	324.2		%
Allowance for credit losses to nonperforming assets	248.3		%	332.6		%	328.8		%	391.5		%
Nonperforming assets to loans, net of unearned income, and other real estate owned	0.59		%	0.45		%	0.41		%	0.34		%
Annualized (charge-offs) net recoveries to average loans	—			(0.10		)%	0.01		%	(0.05		)%
Nonaccrual loans to loans, net of unearned income	0.59		%	0.45		%	0.41		%	0.34		%

ALLOWANCE FOR CREDIT LOSSES
(unaudited)

	As of or for the:
	Quarter Ended			Quarter Ended			Quarter Ended			Year Ended
	9/30/06			6/30/06			3/31/06			12/31/05
Balance at beginning of period	$	51,923		$	37,937		$	32,971		$	29,507
Loans charged-off:
Commercial	(5		)	(333		)	(368		)	(1,646		)
Real estate—construction	(115		)	(29		)	—			—
Real estate—mortgage	—			—			—			(100		)
Consumer	(22		)	(39		)	(17		)	(180		)
Foreign	(225		)	(898		)	-			(1,592		)
Total loans charged-off	(367		)	(1,299		)	(385		)	(3,518		)
Recoveries on loans charged-off:
Commercial	328			508			377			2,106
Real estate—construction	—			—			—			—
Real estate—mortgage	—			—			1			11
Consumer	34			20			—			241
Foreign	—			—			99			2
Total recoveries on loans charged-off	362			528			477			2,360
Net (charge-offs) recoveries	(5		)	(771		)	92			(1,158		)
Provision for credit losses	—			9,500			100			1,420
Additions due to acquisitions	—			5,257			4,774			3,202
Balance at end of period	$	51,918		$	51,923		$	37,937		$	32,971

13

COMPONENTS OF ALLOWANCE FOR CREDIT
LOSSES (unaudited)

	As of or for the:
	Quarter Ended		Quarter Ended		Quarter Ended		Year Ended
	9/30/06		6/30/06		3/31/06		12/31/05
Allowance for loan losses	$	43,943	$	43,448	$	31,501	$	27,303
Reserve for unfunded loan commitments	7,975		8,475		6,436		5,668
Balance at end of period	$	51,918	$	51,923	$	37,937	$	32,971

14

EX-99.3

Exhibit 99.3

 

Investor Presentation November 1 and 2, 2006

 

Forward-Looking Statements and Where to Find Additional Information This presentation contains 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, that involve inherent risks and uncertainties. First Community Bancorp cautions readers that a number of important factors could cause actual results to differ materially from those in such forward-looking statements. All statements other than statements of historical fact are forward-looking statements. Risks and uncertainties include, but are not limited to: the possibility that personnel changes will not proceed as planned; planned acquisitions and relative cost savings cannot be realized or realized within the expected time frame; costs and uncertainties related to the outcome of pending litigation; revenues are lower than expected; competitive pressure among depository institutions increases significantly; the completion of planned acquisitions and the integration of such acquired businesses costs more, takes longer or is less successful than expected; the cost of additional capital is more than expected; changes in the interest rate environment reduces interest margins; general economic conditions, either nationally or in the market area in which First Community does business, are less favorable than expected; legislation or regulatory requirements or changes that adversely affect First Community’s business or regulatory capital requirements; changes that may occur in the securities markets; and other risks that are described in First Community’s Securities and Exchange Commission filings. If any of these risks or uncertainties materializes or any of these assumptions proves 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. 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 documents filed by the Company with the Securities and Exchange Commission. The documents filed by First Community with the Commission may be obtained at First Community Bancorp’s website at www.firstcommunitybancorp.com or at the Commission’s website at 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.

 

NASDAQ Symbol FCBP Fully Diluted Shares 24.4 Million* Market Capitalization $1,322.4 Million ** Average Volume 111,042 shares per day ** Dividends Per Share $1.28 per year (2.36% yield) ** (Annualized) Analyst Coverage Friedman Billings Ramsey Keefe, Bruyette & Woods, Inc. Fox-Pitt, Kelton FIG Partners Piper Jaffray * Average fully diluted shares for quarter ended 09/30/06 ** Per share price of $54.18 and data as of 10/26/06 Stock Summary

 

Overview Commercial Banking Focus in Southern California $5.5 Billion in Proforma Assets Operating Strategy Drives Top Tier Profitability Cost of Deposits – 109 bps Efficiency Ratio – 45.5% NPA Ratio – 0.59% Credit Allowance to Nonaccrual Loans – 248% Acquisitions EPS Accretion Driven by Improving Profitability FCBP is the Culmination of 18 Acquisitions Acquisitions Augment Organic Growth Financial Goals High Profitability Strong EPS Growth Minimal Earnings Volatility Source: Company Filings

 

Hallmarks of Our Success Successful Acquirer Outstanding Profitability Excellent EPS Growth Record Strong Credit Quality Trophy Franchise

 

Operating Principles Profitability is Top Priority Strategic Focus on Low-Cost Deposits Strong Expense Management Solid Credit Quality Is a Must Results Include Strong Net Interest Margin High Return on Assets

 

Non-Interest Bearing Deposits to Total Deposits * Excludes a short-term interest bearing deposit received on December 31, 2004 + CA Banks 22% is a 2Q Level, 3Q06 Results are not yet available Source: Company Filings and SNL DataSource * + 45%49%46%33%35%38% 42%22%21%22%23%23%24%24%2000200120022003200420053Q06FCBPCA Banks

 

Strong Net Interest Margins Versus Peers * Peer Group 4.40% NIM is 2Q Level, 3Q06 Results are not yet available for peer group Peers Defined as All Publicly Traded Banks Source: Company Filings and SNL DataSource * 6.60%6.37%6.81%5.32%5.58%5.24%5.41%4.40%4.05%4.41%4.18%3.94%3.98%4.19%2000200120022003200420053Q06FCBPPeer Group

 

Source: Company Filings Average Branch Size Source: Company Filings and SNL DataSource Focus and Execution Drive Efficiency 78%70%66%55%57%50%46%2000200120022003200420053 Q06Efficiency Ratio$35$45$51$59$61$56$552000200120022003200420053Q06Average Branch Size ($ - M)

 

Strong Credit Culture Source: Company Filings September 30, 2006 Ratios: Nonaccrual Loans/Total Loans – 0.59% Credit Allowance/Net Loans – 1.47% Credit Allowance/Nonaccrual Loans – 248% 5.43%1.21%0.18%0.13%0.37%0.20%0.3 1%-0.07%0.08%0.29%0.03%0.00%0.24%-0.11%0.25%-0.03%-0.05%-0.05%0.21%0.08%-0.01%0.10%0.00%1Q01 3Q01 1Q02 3Q02 1Q03 3Q03 1Q04 3Q04 1Q05 3Q05 1Q06 3Q06Net Charge-Offs to Average Loans

 

Return on Assets Note: 2Q06 credit loss provision reduced ROA from 1.92% to 1.39% Source: Company Filings 1.87%1.39%1.91%0.56%0.92%1.14%1.41%1.35%1.68%2000200120022003200420051Q062Q063Q06

 

Acquisition Strategy Similar Strategic Focus In-Market Consolidation Peer Financial Performance Key Drivers of Accretion Cost Savings Customer Retention Margin Improvement

 

Community Bancorp Acquisition Acquisition Closed 10/26/06 $259.6 Million Value* 4,678,000 Shares Issued15.4x 2007 First Call EPS 2.5x Book ValueExpands San Diego Franchise in Higher Growth Areas Diversifies Loan Mix and Expands SBA Platform Strong Management Addition Mike Perdue named President of First Community and Pacific Western Bank * Based on FCBP closing price of $54.18 per share on 10/26/06 and $6.1 million in cash paid to option holders

 

Strong Franchise Value $5.5 Billion in Proforma Assets 13th Largest Publicly Traded CA Bank* Largest Community Bank in San Diego County Southern California Footprint 66 Branches (Proforma) High Profitability Strong Capital Base Low Cost of Deposits High Net Interest Margin Solid Credit Quality * Source: SNL DataSource

 

Top Decile in EPS Growth 45% 5 – Year CAGR Source: Company Filings Top Decile Calculated from CAGR of EPS from 2000-2005 of All Public Banks With Available Data From SNL. *Consensus Estimates from First Call as of October 18, 2006. First Community does not provide earnings guidance. Analyst estimates are provided for convenience only, and First Community is neither endorsing nor adopting such estimates or the projections of any research analysts who cover the Company.$0.47$1.23$1.58$2.02$2.27$2.98$3.46$4.02200020012002200320042 0052006EConsensus*2007EConsensus*

 

Maintaining Margins / Credit Quality Flat Yield Curve Slower Growth Continue Pricing Discipline Work Relationships Maintain Underwriting Discipline Close and Constant Monitoring Shrink the Balance Sheet Reviewing investments and loans for possible sale No Treasury Arbitrage Look for M&A Opportunities Disciplined Pricing Intense Expense Management Capital Management Raise the Dividend Buyback Stock Reduce Debt/Trust Preferred Strategies for the Challenges Ahead

 

Strong Performance Has Been Rewarded Data Through 10/26/06 0100200300400500Jun-00Sep-01Dec-02Mar-04Jun-05Sep-06First CommunityKBW Bank IndexS&P 500

 

Well-Positioned For The Future Strong Vibrant Economy in Southern California Experienced Management Team High Profitability Provides Cushion in Tougher Environment Opportunistically Utilize Acquisition Expertise Focus on Expense Control and Credit to Lessen Impact of Slower Growth Execute, Execute, Execute