SB Bank & Trust Reports Black Ink
Major Stock Sale to Texas Banker Lifted It Out of Red
Profitable Quarter: Santa Barbara Bank & Trust’s parent company today reported a $20.8 million profit for the last quarter of 2010, its first black ink quarter in several years.
While Pacific Capital Bancorp will not file its annual 2010 financial report until the end of March, it apparently posted a $121.2 million loss for the past year, but emerged into profitability after Texas banker Gerald Ford invested $500 million August 31 to acquire 86 percent of the Pacific Capital stock
The bank plunged into massive losses after the housing market hit the skids and it found itself saddled with numerous toxic loans. After Ford’s capital infusion, it posted a $20.8 million net income for the last three months of 2010 and $25.7 million in the four months since Ford’s action.
The bank lost $27.9 million in July and August, prior to Ford’s investment, and $142 million during the first three quarters. Pacific Capital stock closed at $29.77 Tuesday, boosted by the bank’s recent 100-1 reverse stock split, reducing the current number of shares from approximately 2.29 billion to 32.9 million.
“We are pleased with the results Pacific Capital Bancorp has achieved over the past four months,” said Carl B. Webb, chief executive officer. “Following the completion of our recapitalization transactions, we have resumed our position as the premier community banking franchise along the Central Coast of California. We have returned to the basic community banking principles that this franchise was built upon, and we are now in a position to fully serve the financial services needs of our customers with a broad array of lending, depository and wealth management products and services.”
Pacific Capital announced that during the fourth quarter of 2010, it completed its shareholders rights offering, raising gross proceeds of $76.4 million, and completed the 1-for-100 reverse stock split of its common stock, bringing the company’s book value per share to $19.53 as of December 31, 2010.
Pacific Capital Bancorp said it and its wholly-owned banking subsidiary exceed the ratios required to be considered ”well capitalized” under generally applicable regulatory guidelines, as well as the capital levels that the bank is required to meet under its agreement with the Office of the Comptroller of the Currency. Tier 1 leverage capital ratios were 9.2 percent and 10.3 percent and total risk-based capital ratios were 14.6 percent and 16.4 percent at December 31, 2010, for the bank and company, respectively, Pacific Capital said.