Pacific Capital reports $61 million second quarter loss

By ZAC ESTRADA – July 28, 2010

Pacific Capital Bancorp announced yesterday a $61 million second quarter loss, but also reported that the U.S. Treasury would clear $180.6 million in Troubled Asset Relief Program, or TARP, debt.

The parent company of Santa Barbara Bank & Trust, among other community banks on the Central Coast, plans to sell 91 percent of its shares to Texas investor Gerald Ford.

The deal to sell the shares to Ford’s SB Acquisition Company LLC, part of his Ford Financial Fund LP, is estimated to be worth about $500 million.

The earnings report comes ahead of a Sept. 8 deadline, given by regulators, for Pacific Capital to compile a plan to raise capital. If minimum capital levels are not met, the company would be sold off or liquidated.

Pacific Capital officials praised the successful settlement of the TARP funds and the progress made towards the Ford investment, which is currently awaiting regulatory approval.

“These were clearly two of the most critical conditions to completing the Ford investment and their resolution allows us to see a clear path to a targeted closing by the end of August,” President and CEO George Leis said in a news release. “Upon closing of the investment, we expect our capital ratios will again exceed the ratios required to be considered ‘well capitalized’ under generally applicable regulatory guidelines.”

Despite the $61 million quarterly loss, company officials noted losses had decreased from the same period last year, when Pacific Capital lost $362.6 million. The company reported losses of $81 million in the first quarter of 2010.

Pacific Capital shares were trading higher yesterday, jumping more than 40 percent to $1.23 per share. 

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Way to go Zac : 7/28/2010

DS

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