SANTA BARBARA, Calif. -- (Business Wire)

Pacific Capital Bancorp (Nasdaq: PCBC), a community bank holding company and parent of Santa Barbara Bank & Trust, reported net income of $16.6 million, or $0.50 per diluted share, for the three months ended March 31, 2012, compared with $16.8 million, or $0.51 per diluted share, for the three months ended March 31, 2011. Net income for the first quarter of 2012, included $1.0 million of merger related costs.

First Quarter Highlights

• On March 12, 2012, the Company announced that it had entered into a merger agreement with UnionBanCal Corporation. Pursuant to the merger agreement, each outstanding share of the Company’s common stock will receive cash in the amount of $46.00 per share upon consummation of the Merger. The acquisition requires approval from banking regulators and is subject to other customary closing conditions, and is expected to be completed in the fourth quarter of 2012;
• Achieved a return on average assets of 1.15% and a return on average equity of 8.54% for the three months ended March 31, 2012;
• Improved net interest margins to 4.29% for the first quarter of 2012, compared with 3.99% for the first quarter of 2011; and
• Increased regulatory capital ratios to 12.8% and 20.6% for Tier 1 Leverage and Total Risk-Based Capital, respectively.

“The merger announcement with Union Bank is confirmation of the significant achievements made by the entire team at Santa Barbara Bank & Trust,” said Carl B. Webb, Chief Executive Officer of Pacific Capital Bancorp. “We have joined forces with a strong, California-based financial services organization that shares our vision of community banking. The combination of these two organizations ensures that our local customers and communities will continue to be well served in the future by a responsible, high quality bank with significant capabilities and convenience throughout California,” continued Webb.

Net interest income was $57.7 million, or 4.29% of average interest earning assets for the first quarter of 2012, compared with $54.3 million, or 3.99%, for the same period a year ago. The increase is primarily the result of an overall decline in the cost of deposits and other borrowings. The improved net interest margin was also impacted by the purchase credit impaired loan portfolio, which continues to perform favorably.

Total noninterest income was $13.9 million in the first quarter of 2012, compared with $12.9 million in the first quarter of 2011. The increase is primarily the result of increased gain on sales of assets for the first quarter of 2012 compared with the same period a year earlier.

Noninterest expense increased to $53.1 million for the first quarter of 2012, compared with $48.3 million in same period of 2011. The increase was primarily the result of a $2.2 million increase in the estimated earnout liability related to the Company’s registered investment advisor subsidiaries and $1.0 million in merger related costs.

Pacific Capital Bancorp and its wholly-owned banking subsidiary, Santa Barbara Bank & Trust (“SBB&T”), exceed the ratios required to be considered ”well capitalized” as well as capital levels that SBB&T is required to meet under its Operating Agreement with the Office of the Comptroller of the Currency. Regulatory capital ratios for SBB&T and the Company were 11.7% and 18.8%, and 12.8% and 20.6% at March 31, 2012, for Tier 1 leverage capital and total risk-based capital ratios, 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 March 31, 2012, on or before May 10, 2012. 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 45 branches in eight California counties on the Central Coast of California. SBB&T 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; SBB&T’s website, including products and services information and branch locations, can be found at www.sbbt.com.

Additional Information and Where To Find It

In connection with the proposed merger, the Company has filed a preliminary information statement with the Securities and Exchange Commission (SEC). INVESTORS SHOULD READ THE DEFINITIVE INFORMATION STATEMENT WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER AND THE COMPANY. You will be able to obtain the definitive information statement, as well as other filings containing information about the Company, free of charge, at the website maintained by the SEC at www.sec.gov. In addition, filings made by the Company with the SEC, other than preliminary materials, may be obtained free of charge by contacting the Company at (805) 884-6680 or 1021 Anacapa Street, Santa Barbara, California 93101, Attention: Investor Relations.

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, 2011, filed by the Company with the Securities and Exchange Commission on March 15, 2012.

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.

Contacts:

Pacific Capital Bancorp
Debbie Whiteley, Public Affairs Director
805.884.6680
debbie.whiteley@sbbt.com
or
Mark Olson, Chief Financial Officer
805.884.8635
mark.olson@sbbt.com

Source: Pacific Capital Bancorp