First PacTrust Bancorp

1. First PacTrust Bancorp Greg Bruno Daniel Glotzbach Rajani Meka Drew Osika May 3, 2011

2. Agenda • Industry Overview • Industry Outlook • Key Industry Drivers • Porter’s 5 Forces • Recent Industry Performance • Company Overview • Financial Highlights • SWOT Analysis • Strategy & Management Team • Comparable Analysis • Valuation

3. Savings Banks & Thrift • Collects 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

4. Commercial Banking • Primarily deals with deposits & loans from corporations • Construction lending - Used to finance construction on Real Estate • Business lending - Loans secured by business assets • Commercial Lending - Warehouses, hotels, office buildings, etc.

5. Key Industry Drivers • Total 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

6. 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

7. 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

8. Recent Industry Performance Savings Banks & Thrifts Industry Revenue

9. Deposits

10. California Housing Price Index

11. Mortgage Rates Data Source: Federal Reserve Data Download

12. 2yr-10yr Spread on US Debt Data Source: Bloomberg

13. Nonperforming Loans

14. Nonperforming Loans - Pacific

15. 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

16. Company Highlights

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

18. Financial Highlights Source: CapIQ

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

20. FPTB DuPont Analysis Source: Capital IQ

21. 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

22. Strategy so far • Asset & Liability Management • Originating & purchasing adjustable-rate mortgage loans • Originating shorter-term loans • Managing deposits to establish stable relationships • Using FHLB advances to align maturities and re-pricing terms • Attempting to limit the % fixed rate loans • Growth Strategy: Acquisitions • Banks with less than $500 million to $1 billion in Assets having difficulties in achieving profitability • Distressed banks • Establishing stable customer relationships to increase deposits

23. Key Ratios First Pactrust Bancorp Has an additional $10 million over the reserve requirements by Fed Source: http://www.snl.com/Cache/1001156918.PDF?D=&O=PDF&IID=4074352&Y=&T=&FID=1001156918

24. SWOT Analysis

25. Growth Strategy • Organic Growth • Increase market penetration within bank’s primary footprint • Diversify Portfolio and grow by originating high quality commercial real estate loans • Traditional M&A • Explore Traditional Acquisitions • Focus on banks with certain characteristics • Strategic Benefits to franchise development • FDIC – Based M&A • Pursue strategic transactions with FDIC assistance • Acquire attractive assets from the FDIC

26. Keys to Success • Scalable Business • Management Team • Strong Balance Sheet • Access to Capital • Market 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”

27. Management Team • Greg Mitchell: President & CEO – First Pac Trust Bancorp • Richard Herrin: Chief Administrative Officer • Matt Bonaccordso: Chief Credit Officer • Hans Ganz: President & CEO – Pacific Trust Bank

28. Business Plan • 2011 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 Objectives • 4% + NIM • 1.2% ROAA • Reach critical mass in each of LA, Orange, and San Diego Counties • Provide dividend growth that exceeds inflation

29. Comparables

30. Implied Share Price Current FPTB Stock Price: $14.60

31. Final Valuation