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| 8-K - PACIFIC CAPITAL BANCORP 8-K - PACIFIC CAPITAL BANCORP /CA/ | a6809559.htm |
Exhibit 99.1
Pacific Capital Bancorp Reports Second Quarter 2011 Net Income of $21.0 Million; Completes Brand Consolidation Initiative
SANTA BARBARA, Calif.--(BUSINESS WIRE)--July 27, 2011--Pacific Capital Bancorp (Nasdaq:PCBC), a community bank holding company and parent of Santa Barbara Bank & Trust, N.A., reported net income of $21.0 million, or $0.64 per diluted share, for the three months ended June 30, 2011, compared with $16.8 million, or $0.51 per diluted share, for the three months ended March 31, 2011. This brings total net income to $63.5 million, or $2.00 per diluted share, since the closing of the $500 million investment from a wholly-owned subsidiary of Ford Financial Fund, L.P. on August 31, 2010.
Second Quarter Highlights
- Achieved a return on average assets of 1.43% and a return on equity of 12.27% for the second quarter of 2011, compared with 1.14% and 10.39%, respectively, for the first quarter of 2011;
- Improved net interest margins to 4.42% for the second quarter of 2011, compared with 3.99% for the first quarter of 2011;
- Grew regulatory capital ratios to 11.6% and 18.3% for Tier 1 Leverage and Total Risk-Based Capital ratios, respectively; and,
- Completed initiative to consolidate all operations under the single brand name of Santa Barbara Bank & Trust; changed banking subsidiary name to Santa Barbara Bank & Trust, N.A. (from Pacific Capital Bank, N.A.)
“Pacific Capital Bancorp has delivered its third consecutive quarter of strong performance since our successful recapitalization last August,” said Carl B. Webb, Chief Executive Officer. “We are very pleased with the progress we have made towards achieving our strategic goals in just ten months. Our capital levels, which have continued to grow even stronger each quarter, significantly exceed the regulatory levels to be considered well capitalized. This has allowed us to undertake the important investments in the Bank’s infrastructure that will ensure a quality banking experience for our customers, provide scalability for future growth, and allow us to operate at a lower overall cost in the future.
“During the quarter, we completed the consolidation of our bank names into a single brand. Today, we are operating throughout our footprint and in all respects as one unified bank, guided by the basic banking principles that have long defined quality community banking,” said Mr. Webb. “We are fully back in the business of banking in all areas, delivering a wide range of competitive lending, depository and wealth management products and services to businesses and individuals in communities throughout the Central Coast of California.”
Net interest income grew to $60.2 million, or 4.42% of average interest earning assets for the second quarter of 2011, compared with $54.3 million, or 3.99%, for the previous quarter. The improvement in net interest income is primarily the result of an increase in loan interest income due to higher loan accretion related to better than expected cash flows from the legacy loan portfolio; an increase in the average amount of investment securities held as the Company continues to put to work its excess liquidity; and lower interest cost of deposits.
Provision for loan losses slightly increased to $1.8 million for the second quarter of 2011, compared with $1.7 million for the previous quarter, due primarily to new loan growth. The Company expects that loan originations and purchases will continue to increase as its lending activities continue to be reintroduced throughout its footprint.
Total noninterest income was $12.5 million in the second quarter of 2011, compared with $12.9 million in the first quarter of 2011. The decline in noninterest income is primarily the result of the loss on sale of investment securities and lower gains on the sale of loans as the Company discontinued selling nonconforming residential real estate products into the secondary markets.
Noninterest expense increased to $50.2 million for the second quarter of 2011, compared with $48.3 million in the prior quarter. The increase was primarily the result of higher marketing costs associated with the Company’s brand consolidation initiative and higher software expenses. The Company expects noninterest expense to continue to increase during the rest of 2011 as it makes significant investments in technology and personnel in order to expand and improve its operations.
Pacific Capital Bancorp and its wholly-owned banking subsidiary, Santa Barbara Bank & Trust, N.A. (the “Bank”), exceed the ratios required to be considered, ”well capitalized” as well as 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 10.4% and 11.6%, and total risk-based capital ratios were 16.5% and 18.3% at June 30, 2011, for the Bank and Company, respectively.
Quarterly Report on Form 10-Q
The Company intends to file with the Securities and Exchange Commission its Quarterly Report on Form 10-Q for the quarter ended June 30, 2011, on or before August 15, 2011. This report can be accessed at the Securities and Exchange Commission’s website, www.sec.gov. Shortly after filing, it is also available free of charge at the Company’s website, www.pcbancorp.com or by contacting the Company’s Investor Relations Department.
About Pacific Capital Bancorp
Pacific Capital Bancorp, with $5.8 billion in assets, is the parent company of Santa Barbara Bank & Trust, N.A., a nationally chartered bank headquartered in Santa Barbara which operates 47 branches in eight California counties on the Central Coast of California. The Bank provides a full line-up of community banking, commercial banking, and trust and wealth management products and services. The Company’s website, including investor relations information, can be found at www.pcbancorp.com; the Bank’s website, including products and services information and branch locations, can be found at www.sbbt.com.
Forward Looking Statements
This press release contains “forward‐looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward‐looking statements to be covered by the safe harbor provisions for forward‐looking statements. All statements other than statements of historical fact are “forward- looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about anticipated future operating and financial performance, financial position and liquidity, business prospects, strategic alternatives, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, acquisition and divestiture opportunities, plans and objectives of management for future operations, and other similar forecasts and statements of expectation and statements of assumptions underlying any of the foregoing. Words such as “will likely result,” “aims,” “anticipates,” “believes,” “could,” “estimates,” “expects,” “hopes,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of these words and similar expressions are intended to identify these forward‐looking statements.
Forward‐looking statements are based on the Company’s current expectations and assumptions regarding its business, the regulatory environment, the economy and other future conditions. The Company’s actual results may differ materially from those contemplated by the forward‐looking statements. The Company cautions you against relying on any of these forward‐looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward‐looking statements are detailed in reports filed by the Company with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2010 filed by the Company with the Securities and Exchange Commission on March 25, 2011. Forward‐looking statements speak only as of the date they are made, and the Company does not undertake to update forward‐looking statements to reflect circumstances or events that occur after the date the forward‐looking statements are made, whether as a result of new information, future developments or otherwise, except as may be required by law.
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Pacific Capital Bancorp |
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| Consolidated Balance Sheets (unaudited) | ||||||||||||
| (dollars and shares in thousands) | ||||||||||||
| June 30, 2011 | March 31, 2011 | |||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 40,820 | $ | 42,520 | ||||||||
| Interest bearing demand deposits in other financial institutions | 215,281 | 291,020 | ||||||||||
| Cash and cash equivalents | 256,101 | 333,540 | ||||||||||
| Investment securities available for sale | 1,401,116 | 1,320,505 | ||||||||||
| Loans held for sale | 1,598 | 4,599 | ||||||||||
| Loans held for investment | 3,689,751 | 3,805,365 | ||||||||||
| Allowance for loan and lease losses | (3,577 | ) | (2,131 | ) | ||||||||
| Net loans held for investment | 3,686,174 | 3,803,234 | ||||||||||
| Premises and equipment, net | 76,082 | 71,322 | ||||||||||
| FHLB stock and other investments | 81,660 | 83,757 | ||||||||||
| Goodwill and other intangible assets | 91,290 | 88,124 | ||||||||||
| Other assets | 241,750 | 238,115 | ||||||||||
| TOTAL ASSETS | $ | 5,835,771 | $ | 5,943,196 | ||||||||
| LIABILITIES | ||||||||||||
| Deposits | ||||||||||||
| Noninterest bearing | $ | 1,045,475 | $ | 1,073,219 | ||||||||
| Interest bearing | 3,557,027 | 3,680,907 | ||||||||||
| Total deposits | 4,602,502 | 4,754,126 | ||||||||||
| Securities sold under agreements to repurchase | 317,560 | 318,615 | ||||||||||
| Other borrowings | 121,465 | 119,956 | ||||||||||
| Other liabilities | 89,784 | 90,781 | ||||||||||
| TOTAL LIABILITIES | 5,131,311 | 5,283,478 | ||||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||||
| Common stock ($0.001 par value; 50,000 authorized; 32,904 and 32,903 shares | ||||||||||||
| issued and outstanding at June 30, 2011, and March 31, 2011, respectively) | 33 | 33 | ||||||||||
| Paid in capital | 650,052 | 650,002 | ||||||||||
| Retained earnings | 63,478 | 42,504 | ||||||||||
| Accumulated other comprehensive loss | (9,103 | ) | (32,821 | ) | ||||||||
| TOTAL SHAREHOLDERS' EQUITY | 704,460 | 659,718 | ||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 5,835,771 | $ | 5,943,196 | ||||||||
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Pacific Capital Bancorp |
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| Consolidated Statements of Operations (unaudited) | ||||||||||||
| (dollars and shares in thousands, except per share amounts) | ||||||||||||
| Three Months | Three Months | |||||||||||
| Ended | Ended | |||||||||||
| June 30, | March 31, | |||||||||||
| 2011 | 2011 | |||||||||||
| Interest income | ||||||||||||
| Loans | $ | 64,401 | $ | 59,763 | ||||||||
| Investment securities | 7,012 | 6,096 | ||||||||||
| Other | 526 | 637 | ||||||||||
| TOTAL INTEREST INCOME | 71,939 | 66,496 | ||||||||||
| Interest expense | ||||||||||||
| Deposits | 6,390 | 7,106 | ||||||||||
| Securities sold under agreements to repurchase | 2,484 | 2,102 | ||||||||||
| Other borrowings | 2,902 | 2,976 | ||||||||||
| TOTAL INTEREST EXPENSE | 11,776 | 12,184 | ||||||||||
| NET INTEREST INCOME | 60,163 | 54,312 | ||||||||||
| Provision for loan losses | 1,799 | 1,667 | ||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR | ||||||||||||
| LOAN LOSSES | 58,364 | 52,645 | ||||||||||
| Noninterest income | ||||||||||||
| Service charges and fees | 5,879 | 5,751 | ||||||||||
| Trust and investment advisory fees | 5,319 | 5,335 | ||||||||||
| Loss on securities, net | (212 | ) | (4 | ) | ||||||||
| Other | 1,545 | 1,768 | ||||||||||
| TOTAL NONINTEREST INCOME | 12,531 | 12,850 | ||||||||||
| Noninterest expense | ||||||||||||
| Salaries and employee benefits | 23,046 | 22,947 | ||||||||||
| Net occupancy expense | 5,678 | 5,676 | ||||||||||
| Other | 21,463 | 19,640 | ||||||||||
| TOTAL NONINTEREST EXPENSE | 50,187 | 48,263 | ||||||||||
| INCOME BEFORE INCOME TAX EXPENSE | 20,708 | 17,232 | ||||||||||
| Income tax (benefit)/expense | (266 | ) | 472 | |||||||||
| NET INCOME | $ | 20,974 | $ | 16,760 | ||||||||
| Earnings per share: | ||||||||||||
| Basic | $ | 0.64 | $ | 0.51 | ||||||||
| Diluted | $ | 0.64 | $ | 0.51 | ||||||||
| Weighted average number of common shares outstanding: | ||||||||||||
| Basic | 32,903 | 32,903 | ||||||||||
| Diluted | 32,916 | 32,909 | ||||||||||
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Pacific Capital Bancorp |
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| Consolidated Average Balances and Annualized Yields (unaudited) | |||||||||||||||||||||||||||
| For the Three Months Ended | For the Three Months Ended | ||||||||||||||||||||||||||
| June 30, 2011 | March 31, 2011 | ||||||||||||||||||||||||||
| (dollars in thousands) |
Average
Balance |
Income | Rate |
Average
Balance |
Income | Rate | |||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||
| Interest bearing demand deposits in other | |||||||||||||||||||||||||||
| financial institutions | $ | 264,524 | $ | 147 | 0.22 | % | $ | 462,552 | $ | 270 | 0.24 | % | |||||||||||||||
| Securities: | |||||||||||||||||||||||||||
| Investment securities available for sale: | |||||||||||||||||||||||||||
| Taxable | 1,159,595 | 4,848 | 1.68 | % | 1,057,366 | 3,936 | 1.51 | % | |||||||||||||||||||
| Non taxable | 203,426 | 2,164 | 4.26 | % | 202,109 | 2,160 | 4.27 | % | |||||||||||||||||||
| Total securities | 1,363,021 | 7,012 | 2.07 | % | 1,259,475 | 6,096 | 1.95 | % | |||||||||||||||||||
| Loans: (1) | |||||||||||||||||||||||||||
| Commercial | 254,555 | 7,074 | 11.15 | % | 272,362 | 7,703 | 11.47 | % | |||||||||||||||||||
| Real estate - commercial (2) | 2,275,139 | 43,885 | 7.72 | % | 2,198,858 | 33,739 | 6.14 | % | |||||||||||||||||||
| Real estate - residential 1 to 4 family | 1,158,924 | 12,088 | 4.17 | % | 1,175,960 | 16,480 | 5.61 | % | |||||||||||||||||||
| Consumer loans | 58,591 | 1,354 | 9.27 | % | 58,752 | 1,841 | 12.71 | % | |||||||||||||||||||
| Total loans, gross | 3,747,209 | 64,401 | 6.88 | % | 3,705,932 | 59,763 | 6.47 | % | |||||||||||||||||||
| Other interest earning assets | 82,918 | 379 | 1.83 | % | 86,129 | 367 | 1.73 | % | |||||||||||||||||||
| Total interest earning assets | 5,457,672 | 71,939 | 5.28 | % | 5,514,088 | 66,496 | 4.84 | % | |||||||||||||||||||
| Noninterest earning assets | 435,783 | 465,489 | |||||||||||||||||||||||||
| Total assets | $ | 5,893,455 | $ | 5,979,577 | |||||||||||||||||||||||
| Liabilities and shareholders' equity | |||||||||||||||||||||||||||
| Interest bearing deposits: | |||||||||||||||||||||||||||
| Savings and interest bearing transaction | |||||||||||||||||||||||||||
| accounts | $ | 1,748,268 | 1,302 | 0.30 | % | $ | 1,700,883 | 1,214 | 0.29 | % | |||||||||||||||||
| Time certificates of deposit | 1,865,294 | 5,088 | 1.09 | % | 2,029,495 | 5,892 | 1.18 | % | |||||||||||||||||||
| Total interest bearing deposits | 3,613,562 | 6,390 | 0.71 | % | 3,730,378 | 7,106 | 0.77 | % | |||||||||||||||||||
| Borrowed funds: | |||||||||||||||||||||||||||
| Securities sold under agreements to repurchase | 320,849 | 2,484 | 3.11 | % | 321,573 | 2,102 | 2.65 | % | |||||||||||||||||||
| Other borrowings | 120,961 | 2,902 | 9.62 | % | 115,372 | 2,976 | 10.46 | % | |||||||||||||||||||
| Total borrowed funds | 441,810 | 5,386 | 4.89 | % | 436,945 | 5,078 | 4.71 | % | |||||||||||||||||||
| Total interest bearing liabilities | 4,055,372 | 11,776 | 1.17 | % | 4,167,323 | 12,184 | 1.18 | % | |||||||||||||||||||
| Noninterest bearing demand deposits | 1,066,205 | 1,063,278 | |||||||||||||||||||||||||
| Other noninterest bearing liabilities | 86,167 | 94,468 | |||||||||||||||||||||||||
| Shareholders' equity | 685,711 | 654,508 | |||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 5,893,455 | $ | 5,979,577 | |||||||||||||||||||||||
| Net interest spread | 4.11 | % | 3.66 | % | |||||||||||||||||||||||
| Net interest income/margin | $ | 60,163 | 4.42 | % | $ | 54,312 | 3.99 | % | |||||||||||||||||||
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(1) |
Nonaccrual loans are included in loan balances. Interest income includes related net deferred fee income. |
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(2) |
Commercial real estate loans include multifamily residential real estate loans. |
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Pacific Capital Bancorp |
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| Key Financial Ratios (unaudited) | ||||||||||
| Three Months | Three Months | |||||||||
| Ended | Ended | |||||||||
| June 30, | March 31, | |||||||||
| (dollars and shares in thousands, except per share amounts) | 2011 | 2011 | ||||||||
| Financial Ratios, Consolidated: | ||||||||||
| Return on average equity | 12.27 | % | 10.39 | % | ||||||
| Return on average assets | 1.43 | % | 1.14 | % | ||||||
| Financial Ratios, SBB&T: | ||||||||||
| Return on average equity | 13.54 | % | 11.18 | % | ||||||
| Return on average assets | 1.53 | % | 1.18 | % | ||||||
| June 30, | March 31, | |||||||||
| 2011 | 2011 | |||||||||
| Capital Ratios, Consolidated: | ||||||||||
| Tier 1 leverage ratio | 11.6 | % | 11.1 | % | ||||||
| Tier 1 risk-based capital ratio | 17.9 | % | 17.0 | % | ||||||
| Total risk-based capital ratio | 18.3 | % | 17.3 | % | ||||||
| Capital Ratios, SBB&T: | ||||||||||
| Tier 1 leverage ratio | 10.4 | % | 9.9 | % | ||||||
| Tier 1 risk-based capital ratio | 16.0 | % | 15.1 | % | ||||||
| Total risk-based capital ratio | 16.5 | % | 15.5 | % | ||||||
| Book value per share of common stock: | ||||||||||
| Shares of common stock outstanding | 32,904 | 32,903 | ||||||||
| Book value per share of common stock | $ | 21.41 | $ | 20.05 | ||||||
| Tangible book value per share of common stock | $ | 18.64 | $ | 17.37 | ||||||
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Pacific Capital Bancorp |
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| Key Financial Information (unaudited) | ||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||
| Loan Aging Table – Based on Individual Loan Basis | ||||||||||||||||||||
| June 30, 2011 | ||||||||||||||||||||
| Current |
30-89 Days Past Due |
90+ Days Past Due - Still Accruing |
90+ Days Past Due - Nonaccrual |
Total | ||||||||||||||||
| Loans originated and purchased after Transaction Date | $ | 310,577 | $ | 243 | $ | — | $ | — | $ | 310,820 | ||||||||||
| PCI Revolving Pools | 508,270 | 18,611 | — | 7,146 | 534,027 | |||||||||||||||
| PCI Term Pools | 2,633,498 | 47,836 | 163,570 | — | 2,844,904 | |||||||||||||||
| Total Loans | $ | 3,452,345 | $ | 66,690 | $ | 163,570 | $ | 7,146 | $ | 3,689,751 | ||||||||||
| March 31, 2011 | ||||||||||||||||||||
| Current |
30-89 Days Past Due |
90+ Days Past Due - Still Accruing |
90+ Days Past Due - Nonaccrual |
Total | ||||||||||||||||
| Loans originated and purchased after Transaction Date | $ | 232,393 | $ | 31 | $ | — | $ | — | $ | 232,424 | ||||||||||
| PCI Revolving Pools | 524,693 | 12,946 | 631 | 12,048 | 550,318 | |||||||||||||||
| PCI Term Pools | 2,733,547 | 73,732 | 215,344 | — | 3,022,623 | |||||||||||||||
| Total Loans | $ | 3,490,633 | $ | 86,709 | $ | 215,975 | $ | 12,048 | $ | 3,805,365 | ||||||||||
CONTACT:
Pacific Capital Bancorp
Debbie Whiteley, Public Affairs
Director
805-884-6680
debbie.whiteley@pcbancorp.com
or
Mark
Olson, Chief Financial Officer
805-884-8635
mark.olson@pcbancorp.com