Pacific Capital Bancorp Reports First Quarter 2011 Net Income Of $16.8 Million
Pacific Capital Bancorp (Nasdaq: PCBC), a community bank holding company (“the Company”), reported net income of $16.8 million, or $0.51 per diluted share for the three months ended March 31, 2011, compared with $20.8 million, or $0.68 per diluted share, for the three months ended December 31, 2010. This brings total net income to $42.5 million or $1.36 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 (“Transaction Date”).
First Quarter Highlights
- Achieved a return on average assets of 1.1% for the first quarter 2011 compared with 1.3% for the fourth quarter of 2010;
- Improved net interest margins to 3.99% for the first quarter of 2011 compared with 3.76% for the fourth quarter of 2010;
- Grew regulatory capital ratios to 11.1% and 17.3% for Tier 1 Leverage and Total Risk-Based Capital ratios, respectively.
“Pacific Capital Bancorp delivered another quarter of solid performance,” said Carl B. Webb, Chief Executive Officer. “In the seven months since our recapitalization, we have made great strides towards achieving our strategic goals. This includes returning to the basic community banking principles that this franchise was built upon. Today, we are positioned to fully serve the financial services needs of our customers with a broad array of lending, depository and wealth management products and services. In addition, we have the capital needed to make substantial investments in the Company’s infrastructure to improve our customers’ experience banking with us, provide scalability as we grow, and operate at a lower overall cost.”
Net interest income grew to $54.3 million or 3.99% of average interest earning assets for the first quarter of 2011 compared with $54.1 million or 3.76% in the previous quarter. The improvement in net interest is primarily the result of an increase in loan interest income related to better than expected cash flows on certain loan pools; an increase in the average amount of investment securities held as the Company continues to put to work its excess liquidity; and lower cost of interest bearing deposits. These higher amounts were offset by higher interest expense on time deposits due to a reduction in non-cash accretion on deposit premiums resulting from a change in the weighted average estimated duration of time deposits.
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