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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

Commission File Number: 00-30747

FIRST COMMUNITY BANCORP
(Exact name of registrant as specified in its charter)

        Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý    No o

        Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b.2 of the Exchange Act). Yes ý    No o

        Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of May 12, 2003: 15,365,791 shares of common stock, no par value.

TABLE OF CONTENTS

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PART I—FINANCIAL INFORMATION

ITEM 1. Consolidated Financial Statements (unaudited)

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

See "Notes to Unaudited Condensed Consolidated Financial Statements."

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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

See "Notes to Unaudited Condensed Consolidated Financial Statements."

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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

See "Notes to Unaudited Condensed Consolidated Financial Statements."

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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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Supplemental Disclosure of Acquisitions:

See "Notes to Unaudited Condensed Consolidated Financial Statements."

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2003

NOTE 1—BASIS OF PRESENTATION

Organization and Nature of Operations.

        First Community Bancorp ("First Community" on a parent-only basis and the "Company", "we" or "our" on a consolidated basis) is the holding company for First National Bank ("First National") and Pacific Western National Bank ("Pacific Western" and together with First National, the "Banks"). The Banks are full-service community banks offering a broad range of banking products and services including: originating commercial loans, real estate and construction loans, Small Business Administration ("SBA") loans and consumer loans, along with accepting demand and time deposits and providing other services including foreign exchange and escrow services. We extend credit to customers located primarily in the counties we serve and, through certain programs, we also extend credit to businesses located in Mexico. We focus on providing commercial banking services to small and medium-size businesses through 32 full-service banking offices located in Los Angeles, Orange, Riverside, San Bernadino and San Diego counties. The Company, through the Banks, derives its income primarily from the interest received on the various loan products, interest on investment securities, and fees from providing deposit services and extending credit.

        We have completed six acquisitions since December 31, 2001. All the acquisitions were accounted for using the purchase accounting method and accordingly the results of operations for each acquisition have been included in the consolidated financial statements since the dates of the respective acquisitions.

Consolidation and Basis of Presentation.

        The consolidated financial statements include the accounts of First Community and its subsidiaries. The unaudited condensed consolidated financial statements of the Company included herein have been prepared in conformity with accounting principles generally accepted in the United States of America. Our financial statements reflect all adjustments, which are, in the opinion of management, necessary to present a fair statement of the results for the interim periods indicated. Certain reclassifications have been made to the unaudited condensed consolidated financial statements for 2002 to conform to the 2003 presentation. Certain information and note disclosures normally included in consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The results of operations for the three months ended March 31, 2003 are not necessarily indicative of the results of operations to be expected for the remainder of the year.

        The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report filed on Form 10-K for the year ended December 31, 2002.

Use of Estimates.

        The preparation of unaudited condensed consolidated financial statements requires management to make estimates and assumptions. Such estimates and assumptions affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates and assumptions based upon historical experience and various other factors and circumstances. We believe that our estimates and assumptions are reasonable for such circumstances; however, actual results may differ significantly from these estimates and assumptions which could have a material impact on the carrying value of assets and liabilities at the balance sheet dates and our

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results of operations for the reporting periods. Material estimates subject to change include, among other items, the allowance for loan losses and the carrying value of other real estate owned, the deferred tax asset and goodwill.

Critical Accounting Policies.

        The accounting policies that involve significant estimates and assumptions by management and which may have a material impact on the carrying value of certain assets and liabilities are considered critical accounting policies. We have identified our policy for allowance for loan losses, our estimate of the fair value of financial instruments and our calculation of goodwill and other intangible assets as critical accounting policies. Please see the sections entitled "—Allowance for Loan Losses" in Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, and "Note 7—Goodwill and Other Intangible Assets" for a discussion related to these policies. Our significant and critical accounting policies and practices are also described in further detail in Note 1 to our consolidated financial statements filed on Form 10-K for the year ended December 31, 2002 and incorporated herein by reference.

NOTE 2—ACQUISITIONS

        The Company has made the following acquisitions since January 1, 2002:

Pacific Western National Bank Acquisition.

        On January 31, 2002, we acquired Pacific Western National Bank. References to Pacific Western National Bank refer to the bank acquired on January 31, 2002. The shareholders and option holders of Pacific Western National Bank were paid approximately $36.6 million in cash. Upon completion of the acquisition, Pacific Western National Bank and First Community Bank of the Desert were merged with First Professional Bank. The resulting bank operates as Pacific Western and is headquartered in Santa Monica, California. When we refer to Pacific Western, we are referring to the surviving bank formed through the merger of Pacific Western National Bank, First Community Bank of the Desert and First Professional Bank.

W.H.E.C., Inc. Acquisition.

        On March 7, 2002, we acquired W.H.E.C., Inc. ("WHEC"), the holding company of Capital Bank of North County ("Capital Bank"). The Company issued 1,043,999 shares of our common stock in exchange for all of the outstanding common shares and options of WHEC. At the time of the merger, Capital Bank was merged into Rancho Santa Fe National Bank.

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Upland Bank Acquisition.

        On August 22, 2002, we acquired Upland Bank. We issued 419,059 shares of our common stock and $6.8 million in cash in exchange for all of the outstanding shares and options of Upland Bank. The aggregate purchase price of Upland Bank amounted to $19.5 million. At the time of the merger, Upland Bank was merged into Pacific Western.

Marathon Bancorp Acquisition.

        On August 23, 2002, we acquired Marathon Bancorp, the holding company of Marathon Bank. We issued 537,770 shares of our common stock and $6.7 million in cash in exchange for all of the outstanding shares and options of Marathon Bancorp. The aggregate purchase price of Marathon Bancorp amounted to $22.8 million. At the time of the merger, Marathon Bank was merged into Pacific Western.

First National Bank Acquisition.

        On September 10, 2002, we acquired First National Bank. We issued 2,762,540 shares of our common stock and $74.5 million in cash in exchange for all of the outstanding preferred shares, common shares, warrants and options of First National Bank. The aggregate purchase price of First National Bank amounted to approximately $155.6 million. At the time of the merger, First National Bank was merged into Rancho Santa Fe National Bank and renamed First National Bank. When we refer to First National, we are referring to the surviving bank formed through the merger of First National Bank and Rancho Santa Fe National Bank.

Bank of Coronado.

        On January 9, 2003, we acquired Bank of Coronado, an $80.1 million-asset bank with three branches located in San Diego County. We paid $11.6 million in cash in exchange for all of the outstanding common shares and options of Bank of Coronado. At the time of the merger, Bank of Coronado was merged into First National.

Verdugo Banking Company.

        On April 17, 2003, we announced the signing of a definitive agreement and plan of merger to acquire all the outstanding common stock of Verdugo Banking Company, a one branch bank located in Glendale, California with approximately $169.0 million in assets as of December 31, 2002. We agreed to pay approximately $34.9 million in cash to settle the transaction, which is expected to close during the third quarter of 2003, subject to regulatory and shareholder approval.

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NOTE 3—NET INCOME PER SHARE

        The following is a summary of the calculation of basic and diluted net income per share for the three months ended March 31, 2003 and 2002:

NOTE 4—STOCK OPTIONS

        The Company applies the intrinsic value-based method of accounting prescribed by Accounting Principles Board ("APB") Opinion No. 25, Accounting for Stock Issued to Employees, and related interpretations, in accounting for its fixed plan stock options. Under APB No. 25, compensation expense is recorded on the date of grant only if the current market price of the underlying stock exceeded the exercise price. Statement of Financial Accounting Standards ("SFAS") No. 123, Accounting for Stock-Based Compensation, established accounting and disclosure requirements using a fair value-based method of accounting for stock-based employee compensation plans. Under the fair value method, compensation expense is recorded over the vesting period based on the fair value of the equity instrument granted to employees. As allowed by SFAS No. 123, the Company has elected to continue to apply the intrinsic value-based method of accounting described above, and has provided below the pro forma disclosures required by SFAS No. 148.

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        Had we determined compensation expense based on the fair value at the grant date for our stock options under SFAS No. 123, our net income would have been reduced to the pro forma amounts indicated below:

NOTE 5—LONG-TERM DEBT

Trust Preferred Securities

        The Company had an aggregate of $38.0 million in trust preferred securities outstanding at March 31, 2003. Each of the series of trust preferred securities issued has a maturity of thirty years from its date of issue. These securities are considered Tier 1 capital for regulatory purposes and were issued primarily to fund several of our acquisitions.

        In September 2000, we issued $8.0 million of trust preferred securities bearing a fixed interest rate of 10.60%. In November 2001, we issued $10.0 million of trust preferred securities bearing a variable interest rate, which is reset semi-annually, at the 6-Month LIBOR plus 3.75%, provided the rate will not exceed 11.00% through December 2006. The current rate is 5.17% and the next interest rate reset date is June 8, 2003. In December 2001, we issued another $10.0 million of trust preferred securities bearing a variable interest rate, which is reset quarterly, at the 3-Month LIBOR plus 3.60%, provided the rate will not exceed 12.50% through December 2006. The current interest rate is 4.88% and the next interest rate reset date is June 18, 2003. In June 2002, we issued $10.0 million of trust preferred securities bearing a variable interest rate, which is reset quarterly, at the 3-Month LIBOR plus 3.55%, provided the rate will not exceed 11.95% through June 2007. The current rate is 4.84% and the next interest rate reset date is June 26, 2003.

Convertible Debt

        In January 2001, we acquired $679,000 of convertible debt in the acquisition of Professional Bancorp. As of March 31, 2002, the amount of convertible debt outstanding was $654,000. We exercised our right to redeem this convertible debt effective September 1, 2002. Each holder of the convertible debt had the option to elect to receive, upon redemption, (i) one share of Company common stock for

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each $23.088 of principal outstanding held by such holder or (ii) an amount in cash equal to such holder's redemption amount. Based on the election of each convertible debt holder, we issued 23,374 shares of common stock and paid approximately $114,000 to redeem this convertible debt.

NOTE 6—PRO FORMA INFORMATION FOR PURCHASE ACQUISITIONS

        The following table presents our unaudited pro forma results of operations for the three months ended March 31, 2002 as if the acquisitions of Pacific Western National Bank, WHEC, Upland Bank, Marathon Bancorp and First National Bank, and Bank of Coronado had been effective on January 1, 2002. The unaudited pro forma combined summary of operations is intended for informational purposes only and is not necessarily indicative of the operating results that would have occurred had these acquisitions been in effect for the period presented. The unaudited pro forma results of operations for the three months ended March 31, 2003 for the effect of the Bank of Coronado acquisition is not presented because it is immaterial.

NOTE 7—GOODWILL AND OTHER INTANGIBLE ASSETS

        We adopted Statement of Financial Accounting Standards, No. 142 Goodwill and Other Intangible Assets, or SFAS No. 142 on January 1, 2002. Goodwill and intangible assets arise from purchase business combinations and SFAS No. 142 requires all business combinations to be accounted for under the purchase method of accounting. SFAS No. 142 addresses the initial recognition and measurement

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of goodwill and other intangible assets acquired as a result of a business combination and the recognition and measurement of those assets subsequent to acquisition. Under SFAS No. 142, goodwill and other intangible assets deemed to have indefinite lives will no longer be amortized, but instead will be tested for impairment annually, or more frequently, whenever certain events occur.

        SFAS No. 142 also requires intangible assets with definite lives, such as core deposit intangibles, to be amortized over their respective estimated useful lives to their estimated residual values and reviewed for impairment in accordance with SFAS No. 144, Accounting for Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of. We determined the value of a core deposit intangible related to each of the acquisitions of Pacific Western National Bank, WHEC, Upland Bank, Marathon Bancorp, First National Bank, and Bank of Coronado. We recorded the aggregate value of the core deposit intangible separate from goodwill and we are amortizing it over its estimated useful life of 10 years. The amortization expense represents the estimated decline in the value of the underlying deposits acquired. We recorded an expense of approximately $588,000 for the three months ended March 31, 2003, and none in the same period ended March 31, 2002. We estimate the expense related to this core deposit intangible will range from $2.0 million to $2.3 million per year for the next five years.

        The changes in the carrying amount of goodwill and core deposit intangible for the three months ended March 31, 2003 are as follows:

NOTE 8—DIVIDEND APPROVAL

        On April 23, 2003, our Board of Directors approved a quarterly dividend of $0.15 per common share which is payable on May 30, 2003 to shareholders of record on May 16, 2003.

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ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Forward Looking Information

        This Quarterly Report on Form 10-Q (the "Quarterly Report") includes forward-looking information, which is subject to the "safe harbor" set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When we make statements that are not based on historical information or are forward-looking, including when we use or incorporate by reference in this Quarterly Report the words "anticipate," "estimate," "expect," "project," "intend," "commit," "believe" and similar expressions, we are making forward-looking statements. Such statements are subject to certain risks, uncertainties and assumptions, including those described in this Quarterly Report. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, expected, projected, intended, committed or believed. Such risks and uncertainties include, but are not limited to, the following factors:

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Expected cost savings or revenue enhancements from the completed or pending acquisitions may not be fully realized or realized within the expected time frame.



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Successful completion and integration of acquisitions.



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Competitive pressure in the banking industry and changes in the regulatory environment.



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Changes in the interest rate environment and volatility of rate sensitive loans and deposits.



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A decline in the health of the economy nationally or regionally which could reduce the demand for loans or reduce the value of real estate collateral securing most of our loans.



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Credit quality deterioration, which could cause an increase in the provision for loan losses.



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Dividend restrictions.



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Regulatory discretion.



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Changes in the securities markets.



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Asset/liability repricing risks and liquidity risks.



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Continuing effects on the economy from the terrorist attacks in the United States on September 11, 2002 and the ongoing war on terrorism.

        We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements.

Overview

        First Community Bancorp (the "Company," "we" or "our") is the holding company for two wholly-owned banking subsidiaries, First National and Pacific Western. The Banks are full-service community banks offering a broad range of banking products and services including: originating commercial loans, real estate and construction loans, Small Business Administration ("SBA") loans, and consumer loans, along with accepting demand and time deposits and providing other services including foreign exchange and escrow services. We extend credit to customers located primarily in the counties we serve and, through certain programs, we also extend credit to businesses located in Mexico. We focus on providing commercial banking services to small and medium-size businesses through 32 full-service banking offices located in Los Angeles, Orange, Riverside, San Bernadino and San Diego counties. The Company, through the Banks, derives its income primarily from the interest received on the various loan products, interest on investment securities, and fees from providing deposit services and extending credit.

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        At March 31, 2003, we had total assets of $2,140.6 million, gross loans of $1,479.2 million, deposits of $1,765.4 million and equity of $322.0 million. We have completed six acquisitions since December 31, 2001. All acquisitions were accounted for using the purchase accounting method and accordingly the results of operations from each acquisition have been included in the consolidated financial statements since the date of the respective acquisition.

        Since December 31, 2002, our total assets have increased by approximately $24.7 million, or 1%, which is attributable mostly to the increase in assets due to the Bank of Coronado acquisition during the first quarter, offset by the planned elimination of lower quality loans that remained from our 2002 acquisitions. Loans, net of deferred fees and costs, increased by $50.7 million, or 3.6%, since year-end 2002. This increase is due primarily to the acquisition of Bank of Coronado, offset by the above mentioned planned reductions of acquired loans. Our total deposits increased by approximately $26.7 million, or 1.5%, since year-end 2002 which represents primarily deposits acquired in the Bank of Coronado acquisition, offset by expected deposit run-off due to the lowering of interest rates paid on interest-bearing deposit accounts. Noninterest-bearing deposit accounts as a percentage of total deposits was 38.3% at March 31, 2003 compared to 38.9% at December 31, 2002. Our loan-to-deposit ratio at March 31, 2003 was 83.6% compared to 81.9% as of December 31, 2002.

        The following sections contain tables and data setting forth certain statistical information relating to the Company as of March 31, 2003, and for the three months ended March 31, 2003 and March 31, 2002. This discussion should be read in conjunction with our unaudited condensed consolidated financial statements and notes thereto as of March 31, 2003 included herein, and the consolidated financial statements and notes thereto included in our consolidated financial statements filed on Form 10-K for the year ended December 31, 2002.

Results of Operations

        The following table presents our key performance indicators for the three months ended March 31, 2003 and 2002 and the basis for calculating these indicators:

        First quarter analysis.    Consolidated net income for the three months ended March 31, 2003 was $7.2 million, or $0.46 per diluted share, an increase of $5.1 million, or 235%, for the same period of 2002. Net income for the three months ended March 31, 2002 was $2.2 million or $0.32 per diluted

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share. Our return on average assets was 1.35% for the first quarter of 2003 versus 0.89% for the first quarter of 2002. The increase in diluted net income per share and return on average assets for the first quarter of 2003 compared to the same quarter of 2002 relates primarily to the accretive nature of our acquisition activity. This includes, among other things, cost consolidation as acquired banks are converted to our operating platform, other expense reductions as operating efficiencies are accomplished, including branch consolidations, and an increase in our net interest margin. The efficiency ratio (noninterest expense divided by net interest income plus noninterest income) is a measure of how effective we are at managing our expense dollars. A lower or declining ratio indicates improving efficiency. The efficiency ratio improved to 56.8% during the first quarter of 2003 compared to 71.9% for the same period in 2002. The improvement resulted from our revenues increasing 123% while our noninterest expense grew only 74% for the first quarter of 2003 when compared to the first quarter of 2002.

        Net Interest Income.    Net interest income is the difference between interest earned on assets and interest paid on liabilities. Net interest margin is net interest income expressed as a percentage of average interest-earning assets. Our balance sheet is asset sensitive and as such, a falling interest rate environment places downward pressure on our net interest margin while conversely, our net interest margin tends to expand in a rising interest rate environment. The majority of our earning assets are tied to market rates, such as the prime rate, and therefore rates on our earning assets generally reprice along with a movement in market rates while interest-bearing liabilities, mainly deposits, tend to reprice more slowly and usually incorporate only a portion of the movement in market rates. However, despite the decline in market interest rates during the latter part of 2002, we were able to increase our net interest margin for the first quarter of 2003 when compared to the same period of 2002. Our net interest margin for the first quarter of 2003 increased 14 basis points to 5.41% from 5.27% for the first quarter of 2002.

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        The following tables provide information concerning average interest-earning assets and interest-bearing liabilities and yields and rates thereon for the three months ended March 31, 2003 and March 31, 2002. Nonaccrual loans are included in the average earning assets amounts.

(1)

Includes tax-exempt securities. The tax equivalent computation is excluded as the impact is not significant.

        First quarter analysis.    Net interest income increased 123%, or $13.5 million, to $24.5 million for the first quarter of 2003 from $11.0 million for the first quarter of 2002 due largely to a 117%, or $989.7 million, increase in average earning assets to $1,833.5 million for the first quarter of 2003. This increase is largely the result of the earning assets acquired through our acquisition activity. Average loans, net of fees and costs increased by 126%, or $827.3 million to $1,482.5 million for the first

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quarter of 2003 from $655.2 million for the same period of 2002. This increase is also largely the result of loans acquired through acquisition activity.

        Interest income increased 101%, or $14.1 million, to $28.0 million for the first quarter 2003 compared to $13.9 million for the first quarter of 2002. In addition to the increase in interest-earning assets during the first quarter of 2003, we shifted a higher proportion of our earning assets to loans, which typically yield a higher return, from investments and Federal funds sold. Average loans as a percentage of average earning assets increased to 80.9% for the first quarter of 2003 as compared 77.6% for the first quarter of 2002. Further, we increased our average loan to deposit ratio to 82.8% for the first quarter of 2003 as compared to 74.8% for the first quarter of 2002. Despite the shift in the composition of earning assets, the yield on interest-earning assets decreased 51 basis points as loan yields declined to 7.01% in the first quarter of 2003 from 7.33% for the first quarter of 2002 due primarily to the decline in the overall interest rate environment.

        Interest expense increased 18.4%, or $551,000, to $3.5 million for the first quarter of 2003 from $3.0 million for the same period of 2002. Interest-bearing liabilities increased 99.3%, or $578.5 million, to $1,161.1 million for the first quarter of 2003 from $582.6 million for the same period of 2002. Interest-bearing deposits increased 103%, or $566.8 million, to $1,118.6 million for the first quarter of 2003 from $551.8 million for the same period of 2002. The increase in interest-bearing deposits is largely the result of our acquisition activity. The cost of our average interest-bearing liabilities declined to 1.24% for the first quarter of 2003 from 2.08% for the same period of 2002. This 84 basis point decline is largely due to our ability to decrease the rates we pay for these deposits given the declining interest rate environment which occurred in 2002, as well as shift our interest-bearing deposits away from the higher costing time deposits. As a percentage of average interest-bearing deposits, time deposits declined to 28.9% for the first quarter of 2003, down from 31.2% for the same period of 2002. A substantial percentage of our funding sources are noninterest-bearing demand deposits which represented 37.5% of average total deposits for the first quarter of 2003, a slight increase over the 37.0% average for the first quarter of 2002. Maintaining this percentage of noninterest-bearing demand deposits to total deposits, coupled with the decline in the cost of interest-bearing deposits, lowered our overall cost of deposits to 0.65% for the first quarter of 2003 from 1.13% for the same period of 2002.

Noninterest Income.

        The following table summarizes noninterest income by category for the periods indicated:

(1)

Our quarterly results include Pacific Western National Bank subsequent to January 31, 2002; WHEC subsequent to March 7, 2002; Upland Bank subsequent to August 22, 2002; Marathon

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Bancorp subsequent to August 23, 2002; First National Bank subsequent to September 10, 2002; and Bank of Coronado subsequent to January 9, 2003.

        First quarter analysis.    Total noninterest income increased to $4.1 million for the first quarter of 2003, compared to $2.0 million for the same period of 2002. The increase in noninterest income is due primarily to the increase in service charges and fees on deposit accounts as we increased our deposit base through several acquisitions completed since first quarter of 2002. Additionally, other commissions and fees increased $614,000 for the first quarter of 2003 over the same period of 2002. This category includes income derived from foreign exchange fees and escrow fees which we are now generating due to the First National Bank and Bank of Coronado acquisitions. Service charge income decreased from the fourth quarter of 2002 due primarily to the deferral of March 2003 service charges to the second quarter necessitated by the March 2003 conversion of First National Bank onto the Company's operating platform. Other commissions and fees decreased in the first quarter of 2003 from the fourth quarter of 2002 partially as a result of decreased merchant processing income due to the remaining merchant card processing customers being migrated to other processors. Total noninterest income decreased by $1.1 million from the fourth quarter of 2002. This decrease is primarily due to the fourth quarter of 2002 including a net gain of $905,000 related to the sale of investment securities, offset partially by the loss on the sale of indirect dealer loans.

Noninterest Expense.

        The following table summarizes noninterest expense by category for the periods indicated: