WEATHER »

S.B. Bank &Trust Posts Black Ink

$5 million One-Month Profit for September


Profit for September: Thanks to a $500 million capital infusion from Texas banker Gerald Ford, the parent company of Santa Barbara Bank & Trust yesterday posted a $5 million one-month profit for September, the first black ink the bank has seen in several years.

Officials predicted that profitability will continue, despite the overall third quarter loss of $22.9 million. Not only did the Ford purchase of 86 percent of the bank’s stock allow the bank to finally meet federal capital requirements but also permitted parent Pacific Capital Bancorp to account for its heavy load of toxic loans as to its market value, thus clearing the Ford-era books.

Therefore, September, the first month under the Ford regime, was profitable, Pacific Capital said in federal filings today. However, the parent company lost $27.9 million in July and August and $142 million so far this year.

The bank made a “return to profitability” and now exceeds federal ratios to be considered “well-capitalized,” Pacific Capital officials said. However, getting its head above water came at a heavy human price. About 300 employees were laid off over the last several years, medical benefits were slashed and dividends eliminated, depriving many bank retirees of badly needed income.

To submit a comment on this article, email letters@independent.com or visit our Facebook page. To submit information to a reporter, email tips@independent.com.



Be succinct, constructive, and relevant to the story. Leaving a comment means you agree to our Discussion Guidelines. We like civilized discourse. We don't like spam, lying, profanity, harassment or personal attacks.

comments powered by Disqus
event calendar sponsored by:

Montecito Pushes Back on Streamlined Rebuild Process

Not so fast with fast-track rebuilding, leaders tell the county

St. George Files Suit Against Gelb for Unpaid Debt

Pair of Isla Vista landlords in legal tussle over property sales costs.

Thousands of Plaintiffs Added to Refugio Oil Spill Case

Litigation follows footsteps of 1969 Union Oil spill attorneys.

Push Comes to Shove Between Law Enforcement and Mental Health

County supervisors confront too many needs with not enough money.

Helicopter Hits Electrical Wires, Starts Small Fire

A crop duster hit power lines in Ellwood Canyon.