Greg BrunoDaniel Glotzbach Rajani MekaDrew Osika

First PacTrust Bancorp

May 3, 2011

AgendaIndustry OverviewIndustry OutlookKey Industry DriversPorter’s 5 ForcesRecent Industry PerformanceCompany OverviewFinancial HighlightsSWOT AnalysisStrategy & Management TeamComparable AnalysisValuation

Savings Banks & ThriftCollects retail deposits from general

public- Preferably in CDs or saving accounts

Provides basic banking services- Checking accounts- ATMs

Originates first mortgages- Secured by owner occupied real estate

Home equity loans Limited unsecured loans

Commercial BankingPrimarily deals with deposits & loans

from corporationsConstruction lending

- Used to finance construction on Real EstateBusiness lending

- Loans secured by business assetsCommercial Lending

- Warehouses, hotels, office buildings, etc.

Key Industry DriversTotal deposits

- Deposits are liabilities, which are then lent out at a spread

Home Prices- Rising Home prices increases available equity

Prime Rate / Yield Curve- Low prime rate entices loan demand- Steep yield curve increases bank profits

Nonperforming Loans- Destroyer of bank equity

Porter’s 5 Forces of Thrift Industry• Threat of new entrants: MODERATE

– Entry more or less favorable depending on region– Pro: Growth of online banking and leasing locations

limit large capital investment– Con: High regulation and decreasing profits

discourage entry in most places

• Threat of substitutes: HIGH– Commercial banks, credit unions, government

agencies, and mortgage brokers all offer competing financial services

Porter’s 5 Forces of Thrift Industry• Supplier power: HIGH

– Depositors have shifted more towards reliability which increases thrifts’ need for strong community relationships

– Deposits have moved to large commercial banks, which are seen as more stable

• Buyer power: LOW– Borrowers have little influence because rates are

dependent on credit history and state of broader economy

• Rivalry: HIGH– Low concentration within industry though intense outside

competition– Fewer deposits for players to fight over

Recent Industry PerformanceSavings Banks & Thrifts Industry

Revenue

Deposits

California Housing Price Index

Mortgage Rates

Data Source: Federal Reserve Data Download

2yr-10yr Spread on US Debt

Data Source: Bloomberg

Nonperforming Loans

Nonperforming Loans - Pacific

First Pactrust Bancorp Holding company for Pacific Trust Bank Founded in 1941, headquartered in Chula Vista,

California Financial Services through 9 banking offices in San

Diego and Riverside counties Offers retail and business deposit accounts Loan portfolio : 78.7% of Total assets, $678.2 million

Source: http://www.snl.com/Cache/10802316.pdf?O=3&IID=4074352&OSID=9&FID=10802316

Company Highlights

CAMEL SUMMARY

Source: http://www.snl.com/Cache/1001156918.PDF?D=&O=PDF&IID=4074352&Y=&T=&FID=1001156918

Financial HighlightsYear Ending in, 2006 2007 2008 2009 2010

Total Revenue 20.634 17.577 11.46 13.165 26.077

Growth Over Prior Year (0.23%) (14.82%) (34.80%) 14.88% 98.08%

EBIT 4.714 2.961 (0.529) (0.999) 2.825

Margin % 22.85% 16.85% (4.62%) (7.59%) 10.83%

Net Income 4.714 2.961 (0.529) (0.999) 2.825

Margin % 22.85% 16.85% (4.62%) (7.59%) 10.83%

Total Assets 808.343 774.72 876.52 893.921 861.621

Growth Over Prior Year 7.04% (4.16%) 13.14% 1.99% (3.61%)

Source: CapIQ

Key Ratios Year Ending in, 2006 2007 2008 2009 2010

ROA 0.59% 0.38% (0.06)% (0.11)% 0.32%

ROE 5.91% 3.54% (0.62)% (1.03)% 2.68%

Dividend Payout Ratio 58.90% 109.30% n/a n/a 56.90%

Interest Rate Spread 2.11% 1.89% 2.64% 3.25% 3.60%

Net Interest Margin 2.44% 2.27% 2.92% 3.39% 3.68%

Ratio of Operating Expense to Assets 1.70% 1.81% 1.64% 1.78% 2.52%

Efficiency Ratio 65.26% 73.13% 53.92% 52.13% 63.41%

Avg. interest-earning assets to Avg. interest bearing liabilities 109.15% 109.84% 109.36% 107.03% 106.31%

Non-performing Assets to Total Assets 0.24% 1.82% 4.15% 3.24% 3.07%

Equity to Assets 10.00% 10.71% 10.45% 10.87% 11.97%

Source: http://www.snl.com/Cache/1500032774.PDF?D=&O=PDF&IID=4074352&Y=&T=&FID=1500032774, Pg. 45

FPTB DuPont Analysis

Source: Capital IQ

Recent Stock Performance PEG( 5 year expected ) is 1.09 vs Industry at 1.95

Source: http://finance.yahoo.com/q/ta?t=5y&s=FPTB&l=on&z=l&q=l&p=m20&p=m200&c=^gspc

Strategy so farAsset & Liability Management

Originating & purchasing adjustable-rate mortgage loans

Originating shorter-term loansManaging deposits to establish stable relationshipsUsing FHLB advances to align maturities and re-pricing

termsAttempting to limit the % fixed rate loans

Growth Strategy: AcquisitionsBanks with less than $500 million to $1 billion in Assets

having difficulties in achieving profitabilityDistressed banksEstablishing stable customer relationships to increase

deposits

Key Ratios

Source: http://www.snl.com/Cache/1001156918.PDF?D=&O=PDF&IID=4074352&Y=&T=&FID=1001156918

First Pactrust Bancorp Has an additional $10 million over the reserve requirements by Fed

SWOT AnalysisStrength Weakness

Access to capital and above well capitalized minimum requirements

Expansion completely dependent on demand in San Diego and Riverside counties

Green Accounts Falling real estate prices

Strong Management Team Defaults continue to pose serious problems

Opportunity Threat

Atleast 150 potential targets with less than $1billion assets

Trend of moving from thrifts towards commercial banks

Increase loans in CRE, construction and C&I asset classes

Lower Interest rates

FDIC regulations to increase consumer confidence

Growth StrategyOrganic Growth

Increase market penetration within bank’s primary footprint

Diversify Portfolio and grow by originating high quality commercial real estate loans

Traditional M&AExplore Traditional AcquisitionsFocus on banks with certain characteristicsStrategic Benefits to franchise development

FDIC – Based M&APursue strategic transactions with FDIC assistanceAcquire attractive assets from the FDIC

Keys to SuccessScalable BusinessManagement TeamStrong Balance SheetAccess to CapitalMarket Opportunity

Mission Statement: “To be the premier community bank in Southern California serving the needs of growing families, high net worth individuals, professionals, small to mid sized businesses and their owners”

Management TeamGreg Mitchell: President & CEO – First Pac

Trust Bancorp

Richard Herrin: Chief Administrative Officer

Matt Bonaccordso: Chief Credit Officer

Hans Ganz: President & CEO – Pacific Trust Bank

Business Plan2011 Goals

Grow core earnings

Open 3-5 de novo branches in Southern California

Complete $200-500 million of M&A Activity

Purchase high quality assets at distressed prices

5 Year Objectives4% + NIM

1.2% ROAA

Reach critical mass in each of LA, Orange, and San Diego Counties

Provide dividend growth that exceeds inflation

ComparablesAs of April 16, 2011 Market Cap

($ millions)Basic EPS TBV / Share

Provident Financial 90.7 1.1 11.99

Pacific Premier Bancorp

67.8 0.4 7.83

Riverview Bancorp 68.1 (0.1) 3.6

Timberland Bancorp 39.4 (0.3) 9.57

Malaga Financial 98.7 1.0 6.93

RMG Capital 16.9 (0.4) 13.38

BofI Holding 155.3 2.1 12.95

-

First PacTrust Bancorp

155.7 0.4 14.04

Implied Share Price

P / Diluted EPS P / TBV

High $20.70 $35.52

Low $7.10 $6.46

Average $11.84 $14.24

Current FPTB Stock Price: $14.60

Final Valuation