Pacific Capital Bancorp-the parent company of Santa Barbara Bank & Trust-announced that it would neither be paying dividends on preferred or common stock nor interest on certain securities in order to bolster its reserves. Pacific Capital has struggled to survive the real estate market collapse, and its stock price has dropped from nearly $28 per share last September to $2.70 this week. A recipient of $18 million in federal bail-out funds, the bank must now meet federal requirement to increase its reserves and has thus suspended interest payments for as many as 20 quarters. No dividends can be issued until interest payments are resumed.
Thursday, June 25, 2009
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