Pacific Capital To Lay Off 300 Workers By July

Deer lowered his 2009 earnings estimate to 40 cents per share, from 85 cents, and his 2010 estimate to $1.10 per share, from $1.50. That puts his expectations roughly in the middle of Wall Street's views. On average, analysts polled by Thomson Reuters expect Pacific Capital to post a loss of 17 cents per share for 2009, with estimates ranging widely, from a loss of $2.48 to a profit of $1.95. For 2010, the average forecast is for a profit of 34 cents per share, with estimates ranging from a loss of $1.67 per share to a profit of $2.14.

Deer also cut his price target on the stock to $9 from $13 and kept a "Hold" rating on the stock.

Pacific Capital is the parent of Santa Barbara Bank & Trust, First National Bank of Central California, South Valley National Bank, San Benito Bank and First Bank of San Luis Obispo.

In addition to its 48 branches under those names, Pacific Capital also has a lending program that provides tax refund anticipation loans, or short-term loans backed by individuals' tax refunds, through Jackson Hewitt Tax Service Inc., Liberty Tax Service and other tax preparation companies. Deer said the refund anticipation loan business should bolster income in the current environment.