New book by Larry Connors Click here Improve your trading - See how
The Company's net loss for the third quarter of 2009 was $40.7 million, or ($0.87) per common share, compared to a net loss of $47.5 million, or ($1.03) per common share, in the same period of the prior year.
For the third quarter of 2009, the Company generated $1.0 million in pre-tax, pre-provision income, compared to a loss of $4.6 million in the same period of the prior year.
Commenting on the third quarter of 2009, George Leis, President and Chief Executive Officer of Pacific Capital Bancorp, said, "The aggressive approach we took earlier in 2009 towards resolving our problem loans helped drive a substantial decline in our credit costs, particularly in the construction and land portfolio. While our credit costs still remain elevated above historical levels, we are encouraged by the moderation we experienced in the third quarter.
"We also saw improvement in the underlying earnings power of the Bank, which generated a pre-tax, pre-provision profit of $1.0 million in the third quarter of 2009. Our liquidity remains strong and we continue to see solid deposit growth. During the third quarter, our total deposits increased $279 million, including an increase of $85 million in non-interest bearing deposits," said Leis.
Capital Ratios
At September 30, 2009, the Company's wholly-owned subsidiary, Pacific Capital Bank, N.A. had a Tier 1 leverage ratio of 5.6%, a Tier 1 capital ratio of 7.9% and a Total Risk-Based capital ratio of 10.8%. These ratios exceed the levels to be considered "well capitalized" under generally applicable regulatory guidelines. However, the Tier 1 leverage ratio and Total Risk-Based capital ratio were not sufficient to meet the higher levels that the Bank has agreed with the Office of the Comptroller of the Currency (the "OCC") to maintain.
"Our capital ratios remained relatively stable during the third quarter, and with the help of our outside financial advisors, we continue to actively explore possibilities for further strengthening our capital position going forward," said Leis.
Statement of Operations
The Company's net interest income for the third quarter of 2009 was $50.7 million, compared with $60.8 million in the same quarter of 2008. Net interest income for the Core Bank was $51.9 million in the third quarter of 2009, compared with $61.5 million in the same period last year. The decrease in Core Bank net interest income is primarily attributable to a decline in net interest margin.
The Company's net interest margin for the third quarter of 2009 was 2.68%, which compares with 3.46% in the third quarter of 2008. Net interest margin for the Core Bank was 2.93% in the third quarter of 2009, compared to a net interest margin of 2.99% for the Core Bank in the second quarter of 2009. The sequential quarter decline in net interest margin was due to increased investments in low-yielding assets that provide greater liquidity.
The Company's non-interest income was $12.7 million in the third quarter of 2009, compared with $16.7 million in the third quarter of 2008. Non-interest income for the Core Bank was $12.2 million in the third quarter of 2009, compared with $16.3 million in the third quarter of 2008. The decline is due primarily to lower dividends from FHLB stock, lower trust and investment advisory fees attributable to a decline in asset valuations, and a $1.3 million loss recorded on the sale of commercial real estate loans.
Non-interest expense was $62.4 million in the third quarter of 2009, compared with $82.1 million in the third quarter of 2008. Non-interest expense for the Core Bank was $59.1 million in the third quarter of 2009, compared with $76.2 million in the third quarter of 2008. The decline in non-interest expense for the Core Bank is primarily due to a $22.1 million charge to reflect the impairment of goodwill that was recorded in the third quarter of 2008.
Balance Sheet
The Company's total gross loans held for investment were $5.37 billion at September 30, 2009, compared with $5.65 billion at June 30, 2009, and $5.72 billion at September 30, 2008. The sequential quarter decline in total gross loans is primarily attributable to the sale of approximately $86 million in commercial real estate loans and approximately $116 million in residential real estate loans. During the third quarter, the Bank renewed $257 million in loans, made approximately $122 million in new loan commitments, and funded $76 million of new loans.
The Company's total deposits were $5.53 billion at September 30, 2009, compared to $5.25 billion at June 30, 2009, and $4.94 billion at September 30, 2008. Excluding RAL-related deposits, total deposits were $5.39 billion at September 30, 2009, compared to $4.98 billion at June 30, 2009. The increase in Core Bank total deposits is attributable to higher balances of non-interest-bearing demand deposits and CDs.
Asset Quality
The Company recorded a provision for loan losses in the Core Bank of $47.1 million for the third quarter of 2009. The provision for loan losses included the following components:
-- $35.1 million to cover net charge-offs in the Core Bank, of which approximately $13.3 million related to the Construction and Land portfolio, $12.4 million related to the Commercial and Industrial portfolio, and $4.1 million related to the Residential Real Estate portfolio
-- $11.4 million added to the allowance for loan losses in the Core Bank to reflect an increase in qualitative factors and higher loss rates in recent quarters
The Company also recorded a negative provision of $4.8 million in the third quarter of 2009 to reflect recoveries on RALs that had previously been charged-off.
Total non-performing assets (NPAs) were $384.8 million at September 30, 2009, compared to $348.3 million at June 30, 2009. The increase was primarily attributable to higher NPAs in the Commercial Real Estate and Residential Real Estate portfolios.
Approximately 21% of the Bank's total non-performing assets at September 30, 2009 were still current on interest and principal payments. These credits have been placed on non-performing status due to the identification of some form of impairment, such as a decline in collateral value. If these borrowers continue to demonstrate the ability to service their debt according to the agreed upon terms, the loans could be moved back to performing status in future quarters.
The following tables provide comparative asset quality data for the comparable three-month periods of the Core Bank (dollars in millions):
September 30, June 30,
2009 2009
Allowance for loan losses $ 269.4 $ 258.0
Allowance for loan losses/total loans 5.02 % 4.57 %
Total non-performing assets $ 384.8 $ 348.3
Total non-performing assets/total assets 5.14 % 5.00 %
Allowance to non-performing loans 78 % 80 %
Net charge-offs $ 35.1 $ 77.1
Annualized net charge-offs/total average loans 2.50 % 5.40 %
September 30, September 30,
2009 2008
Allowance for loan losses $ 269.4 $ 122.1
Allowance for loan losses/total loans 5.02 % 2.13 %
Total non-performing assets $ 384.8 $ 171.6
Total non-performing assets/total assets 5.14 % 2.23 %
Allowance to non-performing loans 78 % 73 %
Net charge-offs $ 35.1 $ 18.1
Annualized net charge-offs/total average loans 2.50 % 1.25 %
Conference Call and Webcast
The Company will hold a conference call today at 11:00 a.m. Eastern time / 8:00 a.m. Pacific time to discuss its third quarter 2009 results. To access a live webcast of the conference call, log on at the Investor Relations page of the Company's website at www.pcbancorp.com. For those who cannot listen to the live broadcast, a replay of the conference call will be available shortly after the call at the same location.
About Pacific Capital Bancorp
Pacific Capital Bancorp is the parent company of Pacific Capital Bank, N.A., a nationally chartered bank that operates 46 branches under the local brand names 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.
Forward Looking Statements
Certain matters contained in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company's financial condition, results of operations, plans, objectives, future performance and business. Such forward-looking statements are typically preceded by, followed by or include words or phrases such as "believes," "expects," "anticipates," "plans," "trend," "objective," "continue," "remain" or similar expressions or future or conditional verbs such as "will," "would," "should," "could," "might," "can," "may" or similar expressions. These forward-looking statements involve certain risks and uncertainties, many of which are beyond the Company's control. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) increased competitive pressure among financial services companies; (2) changes in the interest rate environment reducing interest margins or increasing interest rate risk; (3) deterioration in general economic conditions, internationally, nationally or in California, including without limitation unemployment trends, weakening or continued weak demand for products or services of the Company or of its customers or declines in asset values; (4) the occurrence of terrorist acts; (5) reduced demand for or earnings derived from the Company's income tax refund loan and refund transfer programs; (6) legislative or regulatory changes or litigation adversely affecting the businesses in which the Company engages; (7) unfavorable conditions in the capital markets; (8) challenges in opening additional branches or integrating acquisitions; (9) the possibility that the Company may not be able to achieve the higher minimum capital ratios that it has agreed to maintain with the OCC; and (10) other risks detailed in reports filed by the Company with the Securities and Exchange Commission. 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. Comparisons of results or balances between historical periods or dates do not mean or imply that the same or similar trends will continue or be evident in any future period. For more information about factors that could cause actual results to differ from the Company's expectations, refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2008 and the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2009, including the discussion under "Risk Factors," as filed with the Securities and Exchange Commission and available on the SEC's website at www.sec.gov.
Non-GAAP Amounts and Measures
This press release contains amounts and ratios that are computed excluding the results of operations of the RAL and RT programs and/or exclude asset and liability balances related to those programs. Because they relate to the filing of individual tax returns, these programs are activities conducted primarily during the first and second quarters of each year. These programs comprise one of the Company's operating segments for purposes of segment reporting in the Company's quarterly and annual reports to the SEC. The Company's Management believes analysts and investors find this information useful for the same reason that Management uses it internally, namely, it provides more comparability with virtually all of the rest of the Company's peers that do not operate such programs.
The information that excludes balances and results of the RAL and RT programs is reconciled to the consolidated information prepared in accordance with Generally Accepted Accounting Principles in several tables at the end of this release.
In addition to the non-GAAP measures computed related to the Company's balances and results exclusive of its RAL and RT programs, this release contains other financial information determined by methods other than in accordance with GAAP. Management uses these non-GAAP measures in their analysis of the business and its performance.
Consolidated Balance Sheets
(dollars in thousands)
% Change
As of 9/30/2009 vs. 9/30/2009 vs.
9/30/2009 6/30/2009 3/31/2009 12/31/2008 9/30/2008 6/30/2009 9/30/2008
(unaudited) (unaudited) (unaudited) (unaudited) (annualized)
Assets:
Cash and due from banks $ 38,374 $ 53,043 $ 57,665 $ 79,367 $ 120,482 (110.6 %) (68.1 %)
Interest-bearing demand deposits in other financial institutions 965,894 343,654 1,236,220 1,859,154 1,500 724.3 % --
Federal funds sold -- -- -- -- 55,000 -- (100.0 %)
Trading securities 5,990 78,135 205,450 213,939 202,557 (369.3 %) (97.0 %)
Available-for-sale securities 1,298,340 956,309 1,465,105 1,178,743 990,083 143.1 % 31.1 %
Loans held for sale 20,128 20,650 20,638 11,137 145,350 (10.1 %) (86.2 %)
Loans held for investment 5,373,940 5,647,798 5,754,107 5,764,856 5,722,464 (19.4 %) (6.1 %)
Allowance for loan losses (269,389 ) (258,032 ) (144,307 ) (140,908 ) (122,097 ) (17.6 %) (120.6 %)
Total loans held for investment, net 5,104,551 5,389,766 5,609,800 5,623,948 5,600,367 (21.2 %) (8.9 %)
Premises and equipment, net 77,644 80,146 83,091 78,608 79,409 (12.5 %) (2.2 %)
Goodwill -- -- 128,710 128,710 128,710 -- (100.0 %)
Other intangible assets 9,106 8,711 9,109 9,818 11,189 18.1 % (18.6 %)
Other assets 384,259 383,018 406,066 389,596 353,349 1.3 % 8.7 %
Total assets $ 7,904,286 $ 7,313,432 $ 9,221,854 $ 9,573,020 $ 7,687,996 32.3 % 2.8 %
Liabilities:
Deposits:
Non-interest-bearing demand deposits $ 1,185,903 $ 1,101,375 $ 1,156,919 $ 981,944 $ 989,025 30.7 % 19.9 %
Interest-bearing deposits:
NOW accounts 947,894 985,954 1,116,008 1,044,301 995,181 (15.4 %) (4.8 %)
Money market deposit accounts 310,972 405,531 582,717 612,710 561,297 (93.3 %) (44.6 %)
Other savings deposits 370,688 389,116 363,758 320,842 261,085 (18.9 %) 42.0 %
Time certificates of $100,000 or more 1,469,562 1,275,420 1,626,878 1,682,974 1,234,196 60.9 % 19.1 %
Other time deposits 1,240,134 1,089,071 1,591,155 1,945,931 899,868 55.5 % 37.8 %
Total interest-bearing deposits 4,339,250 4,145,092 5,280,516 5,606,758 3,951,627 18.7 % 9.8 %
Total deposits 5,525,153 5,246,467 6,437,435 6,588,702 4,940,652 21.2 % 11.8 %
Securities sold under agreements to repurchase and Federal funds 328,692 333,884 342,284 342,157 358,124 (6.2 %) (8.2 %)
purchased
Long-term debt and other borrowings 1,539,211 1,195,173 1,524,783 1,740,240 1,660,986 115.1 % (7.3 %)
Other liabilities 113,469 123,499 140,610 113,484 85,885 (32.5 %) 32.1 %
Total liabilities 7,506,525 6,899,023 8,445,112 8,784,583 7,045,647 35.2 % 6.5 %
Shareholders' equity 397,761 414,409 776,742 788,437 642,349 (16.1 %) (38.1 %)
Total liabilities and shareholders' equity $ 7,904,286 $ 7,313,432 $ 9,221,854 $ 9,573,020 $ 7,687,996 32.3 % 2.8 %
Consolidated Statements of Operations (unaudited)
(dollars in thousands, except per share amounts)
For the Three-Months Ended September 30,
2009 2008
Consolidated Core Bank RAL and RT Consolidated Core Bank RAL and RT Consolidated
% Change
Interest income:
Loans $ 75,691 $ 75,691 $ -- $ 88,109 $ 88,109 $ -- (14.1 %)
Trading securities 374 374 -- 2,484 2,484 -- (84.9 %)
Available-for-sale securities 9,909 9,909 -- 12,021 12,021 -- (17.6 %)
Other 542 542 -- 119 119 -- 355.5 %
Total interest income 86,516 86,516 -- 102,733 102,733 -- (15.8 %)
Interest expense:
Deposits 19,874 19,356 518 18,565 18,547 18 7.1 %
Securities sold under agreements to repurchase and Federal funds 2,156 2,156 -- 3,444 3,444 -- (37.4 %)
purchased
Long-term debt and other borrowings 13,832 13,139 693 19,902 19,209 693 (30.5 %)
Total interest expense 35,862 34,651 1,211 41,911 41,200 711 (14.4 %)
Net interest income/(loss) 50,654 51,865 (1,211 ) 60,822 61,533 (711 ) (16.7 %)
Provision for loan losses:
Provision for loan losses - Core Bank 47,141 47,141 -- 67,659 67,659 -- (30.3 %)
Provision for loan losses - RALs (4,778 ) -- (4,778 ) (3,697 ) -- (3,697 ) (29.2 %)
Total provision for loan losses 42,363 47,141 (4,778 ) 63,962 67,659 (3,697 ) (33.8 %)
Net interest income/(loss) after provision for loan losses 8,291 4,724 3,567 (3,140 ) (6,126 ) 2,986 364.0 %
Non-interest income:
Service charges and fees 6,473 6,423 50 6,926 6,890 36 (6.5 %)
Trust and investment advisory fees 4,999 4,999 -- 6,308 6,308 -- (20.8 %)
Refund transfer fees 525 -- 525 385 -- 385 36.4 %
Loss on securities, net (23 ) (23 ) -- (487 ) (487 ) -- 95.3 %
Other 773 773 -- 3,569 3,569 -- (78.3 %)
Total non-interest income 12,747 12,172 575 16,701 16,280 421 (23.7 %)
Non-interest expense:
Salaries and employee benefits 27,839 25,975 1,864 29,118 27,734 1,384 (4.4 %)
Occupancy expense, net 6,626 6,220 406 6,462 6,177 285 2.5 %
Goodwill impairment -- -- -- 22,068 22,068 -- (100.0 %)
Other 27,921 26,934 987 24,484 20,200 4,284 14.0 %
Total non-interest expense 62,386 59,129 3,257 82,132 76,179 5,953 (24.0 %)
(Loss)/income before income taxes (41,348 ) $ (42,233 ) $ 885 (68,571 ) $ (66,025 ) $ (2,546 )
Benefit for income taxes (3,111 ) (21,070 )
Net loss (38,237 ) (47,501 )
Dividends and accretion on preferred stock 2,511 --
Net loss available to common shareholders $ (40,748 ) $ (47,501 )
Loss per common share - basic $ (0.87 ) $ (1.03 )
Loss per common share - diluted * $ (0.87 ) $ (1.03 )
Average number of common shares - basic 46,723 46,197
Average number of common shares - diluted 47,234 46,624
The Company's management utilizes the above "Core Bank" financial
information in the evaluation of its banking operations and
believes that the investment community also finds this information
valuable to understand the key drivers of the business.
* Loss per diluted common share for the three-months ended September
30, 2009 and 2008 is calculated using basic weighted average shares
outstanding.
Consolidated Statements of Operations (unaudited)
(dollars in thousands, except per share amounts)
For the Nine-Months Ended September 30,
2009 2008
Consolidated Core Bank RAL and RT Consolidated Core Bank RAL and RT Consolidated
% Change
Interest income:
Loans $ 383,753 $ 232,142 $ 151,611 $ 371,358 $ 262,596 $ 108,762 3.3 %
Trading securities 5,061 5,061 -- 4,121 4,121 -- 22.8 %
Available-for-sale securities 32,838 32,838 -- 39,366 39,366 -- (16.6 %)
Other 2,339 543 1,796 2,281 578 1,703 2.5 %
Total interest income 423,991 270,584 153,407 417,126 306,661 110,465 1.6 %
Interest expense:
Deposits 76,481 65,139 11,342 65,377 61,648 3,729 17.0 %
Securities sold under agreements to repurchase and Federal funds 8,019 8,011 8 9,859 9,522 337 (18.7 %)
purchased
Long-term debt and other borrowings 47,286 45,024 2,262 55,516 52,536 2,980 (14.8 %)
Total interest expense 131,786 118,174 13,612 130,752 123,706 7,046 0.8 %
Net interest income 292,205 152,410 139,795 286,374 182,955 103,419 2.0 %
Provision for loan losses:
Provision for loan losses - Core Bank 314,759 314,759 -- 126,806 126,806 -- 148.2 %
Provision for loan losses - RALs 75,809 -- 75,809 22,717 -- 22,717 233.7 %
Total provision for loan losses 390,568 314,759 75,809 149,523 126,806 22,717 161.2 %
Net interest (loss)/income after provision for loan losses (98,363 ) (162,349 ) 63,986 136,851 56,149 80,702 (171.9 %)
Non-interest income:
Refund transfer fees 68,076 -- 68,076 68,576 -- 68,576 (0.7 %)
Service charges and fees 21,125 18,572 2,553 24,075 20,995 3,080 (12.3 %)
Trust and investment advisory fees 15,856 15,856 -- 19,477 19,477 -- (18.6 %)
Gain/(loss) on securities, net 241 241 -- (422 ) (422 ) -- 157.1 %
Gain on sale of RALs, net -- -- -- 44,580 -- 44,580 (100.0 %)
Other 4,440 4,440 -- 7,888 7,888 -- (43.7 %)
Total non-interest income 109,738 39,109 70,629 164,174 47,938 116,236 (33.2 %)
Non-interest expense:
Goodwill impairment 128,710 128,710 -- 22,068 22,068 -- 483.2 %
Salaries and employee benefits 93,456 81,981 11,475 96,108 86,149 9,959 (2.8 %)
Refund program fees 47,428 -- 47,428 58,439 -- 58,439 (18.8 %)
Occupancy expense, net 19,894 18,793 1,101 20,198 19,331 867 (1.5 %)
Other 112,453 100,014 12,439 71,812 59,533 12,279 56.6 %
Total non-interest expense 401,941 329,498 72,443 268,625 187,081 81,544 49.6 %
(Loss)/income before income taxes (390,566 ) $ (452,738 ) $ 62,172 32,400 $ (82,994 ) $ 115,394
Provision for income taxes 13,237 13,311
Net (loss)/income (403,803 ) 19,089
Dividends and accretion on preferred stock 7,452 --
Net (loss)/income available to common shareholders $ (411,255 ) $ 19,089
(Loss)/income per common share - basic $ (8.81 ) $ 0.41
(Loss)/income per common share - diluted * $ (8.81 ) $ 0.41
Average number of common shares - basic 46,680 46,169
Average number of common shares - diluted 47,189 46,526
The Company's management utilizes the above "Core Bank" financial
information in the evaluation of its banking operations and
believes that the investment community also finds this information
valuable to understand the key drivers of the business.
* (Loss)/income per diluted common share for the nine-months ended
September 30, 2009 is calculated using basic weighted average shares
outstanding.
Consolidated Average Balances and Annualized Yields (unaudited)
For the Three-Months Ended September 30,
2009 2008
Average Income Rate Average Income Rate
Balance Balance
(dollars in thousands)
Assets:
Commercial paper $ -- $ -- -- $ 6,408 $ 37 2.30 %
Interest-bearing demand deposits in other financial institutions 844,503 542 0.25 % -- -- --
Federal funds sold -- -- -- 19,287 82 1.69 %
Securities: (1)
Taxable 769,415 6,528 3.37 % 917,702 11,077 4.80 %
Non-taxable 296,668 3,755 5.06 % 265,132 3,428 5.17 %
Total securities 1,066,083 10,283 3.84 % 1,182,834 14,505 4.88 %
Loans: (2)
Commercial 1,074,709 12,376 4.57 % 1,207,890 18,792 6.19 %
Real estate - multi family & nonresidential 2,781,170 39,600 5.70 % 2,752,603 41,567 6.04 %
Real estate - residential 1 - 4 family 1,095,890 15,712 5.73 % 1,203,771 17,889 5.94 %
Consumer 626,097 7,987 5.06 % 613,796 9,831 6.37 %
Other 2,185 16 2.91 % 2,251 30 5.30 %
Total loans, net 5,580,051 75,691 5.42 % 5,780,311 88,109 6.09 %
Total interest-earning assets 7,490,637 86,516 4.61 % 6,988,840 102,733 5.87 %
Market value adjustment (1) 28,008 18,580
Non-interest-earning assets 285,038 593,612
Total assets $ 7,803,683 $ 7,601,032
Liabilities and shareholders' equity:
Interest-bearing deposits:
Savings and interest-bearing transaction accounts $ 1,723,386 2,420 0.56 % $ 1,891,370 4,660 0.98 %
Time certificates of deposit 2,563,570 17,454 2.70 % 1,849,236 13,905 2.99 %
Total interest-bearing deposits 4,286,956 19,874 1.84 % 3,740,606 18,565 1.97 %
Borrowed funds:
Securities sold under agreements to repurchase and Federal funds 332,986 2,156 2.57 % 436,123 3,444 3.14 %
purchased
Other borrowings 1,481,399 13,832 3.70 % 1,656,597 19,902 4.78 %
Total borrowed funds 1,814,385 15,988 3.49 % 2,092,720 23,346 4.44 %
Total interest-bearing liabilities 6,101,341 35,862 2.33 % 5,833,326 41,911 2.86 %
Non-interest-bearing demand deposits 1,143,928 987,336
Other liabilities 140,616 80,479
Shareholders' equity 417,798 699,891
Total liabilities and shareholders' equity $ 7,803,683 $ 7,601,032
Net interest income/margin $ 50,654 2.68 % $ 60,822 3.46 %
Loan information Core Bank:
Consumer loans, Core Bank 625,556 7,987 5.07 % 613,453 9,831 6.38 %
Loans, Core Bank 5,579,499 75,691 5.38 % 5,779,968 88,109 6.06 %
(1) Average securities balances are based on amortized historical
cost. The adjustments for fair values are reported as market value
adjustment in the table above.
(2) Nonaccrual loans are included in loan balances. Interest income
includes related fee income.
Consolidated Average Balances and Annualized Yields (unaudited)
For the Nine-Months Ended September 30,
2009 2008
Average Income Rate Average Income Rate
Balance Balance
(dollars in thousands)
Assets:
Commercial paper $ -- $ -- -- $ 25,947 $ 560 2.88 %
Interest-bearing demand deposits in other financial institutions 1,128,915 2,338 0.28 % -- -- --
Federal funds sold 440 1 0.30 % 85,179 1,721 2.70 %
Securities: (1)
Taxable 948,152 26,634 3.76 % 927,040 33,935 4.89 %
Non-taxable 297,867 11,265 5.04 % 244,567 9,552 5.21 %
Total securities 1,246,019 37,899 4.07 % 1,171,607 43,487 4.96 %
Loans: (2)
Commercial 1,115,192 38,179 4.58 % 1,198,260 58,016 6.47 %
Real estate - multi family & nonresidential 2,829,946 121,704 5.73 % 2,646,493 122,913 6.19 %
Real estate - residential 1 - 4 family 1,102,308 48,068 5.81 % 1,140,836 51,124 5.98 %
Consumer 897,698 175,743 26.17 % 738,478 139,156 25.17 %
Other 3,326 59 2.37 % 3,338 149 5.96 %
Total loans, net 5,948,470 383,753 8.61 % 5,727,405 371,358 8.65 %
Total interest-earning assets 8,323,844 423,991 6.80 % 7,010,138 417,126 7.94 %
Market value adjustment (1) 31,861 25,957
Non-interest-earning assets 537,889 589,773
Total assets $ 8,893,594 $ 7,625,868
Liabilities and shareholders' equity:
Interest-bearing deposits:
Savings and interest-bearing transaction accounts $ 1,929,165 11,798 0.82 % $ 2,005,641 19,085 1.27 %
Time certificates of deposit 3,085,516 64,683 2.80 % 1,818,462 46,292 3.40 %
Total interest-bearing deposits 5,014,681 76,481 2.04 % 3,824,103 65,377 2.28 %
Borrowed funds:
Securities sold under agreements to repurchase and Federal funds 340,393 8,019 3.15 % 406,597 9,859 3.24 %
purchased
Other borrowings 1,520,391 47,286 4.16 % 1,504,382 55,516 4.93 %
Total borrowed funds 1,860,784 55,305 3.98 % 1,910,979 65,375 4.57 %
Total interest-bearing liabilities 6,875,465 131,786 2.57 % 5,735,082 130,752 3.05 %
Non-interest-bearing demand deposits 1,228,700 1,126,123
Other liabilities 117,057 55,219
Shareholders' equity 672,372 709,444
Total liabilities and shareholders' equity $ 8,893,594 $ 7,625,868
Net interest income/margin $ 292,205 4.69 % $ 286,374 5.46 %
Loan information Core Bank:
Consumer loans, Core Bank 638,324 24,132 5.05 % 603,266 30,394 6.73 %
Loans, Core Bank 5,786,728 232,142 5.36 % 5,592,193 262,596 6.27 %
(1) Average securities balances are based on amortized historical
cost. The adjustments for fair values are reported as market value
adjustment in the table above.
(2) Nonaccrual loans are included in loan balances. Interest income
includes related fee income.
Key Financial Ratios (unaudited)
(dollars in thousands, except per share amounts)
For the Three-Months Ended For the Nine-Months Ended
September 30, September 30,
2009 2008 2009 2008
Financial Ratios:
Operating efficiency ratio Consolidated 98.36 % 105.28 % 100.06 % 59.57 %
Operating efficiency ratio Core Bank 92.30 % 97.29 % 172.26 % 80.88 %
Operating efficiency ratio RAL and RT -- -- 34.43 % 37.12 %
Return on average equity Consolidated -- -- -- 3.59 %
Return on average equity RAL and RT 0.99 % -- 43.97 % 47.28 %
Return on average assets Consolidated -- -- -- 0.33 %
Return on average assets RAL and RT 0.49 % -- 4.73 % 39.50 %
Capital Ratios, PCBNA: 2009 2008
Tier 1 capital to Average Tangible Assets ratio 5.6 % 7.7 %
Tier 1 capital to Risk Weighted Assets ratio 7.9 % 9.4 %
Total Tier 1 & Tier 2 Capital to Risk Weighted Assets ratio 10.8 % 12.3 %
Credit Quality Ratios:
Allowance for loan losses Core Bank $ 269,389 $ 122,097
Allowance for loan losses RALs $ -- $ --
Net charge-offs Consolidated $ 30,327 $ 14,388 $ 261,408 $ 71,504
Net charge-offs Core Bank $ 35,105 $ 18,085 $ 185,599 $ 48,787
Net charge-offs RALs $ (4,778 ) $ (3,697 ) $ 75,809 $ 22,717
Annualized Consolidated net charge-offs to Consolidated average loans 2.16 % 0.99 % 5.88 % 1.67 %
Annualized Core Bank net charge-offs to Core Bank average loans 2.50 % 1.25 % 4.29 % 1.17 %
Annualized RAL net charge-offs to RAL average loans -- -- 62.67 % 22.44 %
Non-performing assets:
Nonaccrual loans $ 301,442 $ 136,940
Loans past due 90 days or more on accrual status 14,002 445
Troubled debt restructured loans 31,181 29,022
Total non-performing loans * 346,625 166,407
Other real estate owned and other foreclosed assets 38,128 5,181
Total non-performing assets * $ 384,753 $ 171,588
* There were no non-performing RALs as of September 30, 2009 and
2008.
Non-performing loans to Core Bank total loans held for investment 6.45 % 2.91 %
Non-performing assets to Core Bank total assets 5.14 % 2.23 %
Core Bank allowance for loan losses to non-performing loans 78 % 73 %
Core Bank allowance for loan losses to Core Bank total loans held 5.02 % 2.13 %
for investment
Book value per common share:
Actual shares outstanding at end of period 46,725 46,206
Book value per common share $ 4.73 $ 13.90
Tangible book value per common share $ 4.54 $ 10.88
Reconciliation of GAAP to Non-GAAP Measures (unaudited)
Page 1, 2 and 3 of Release for 3rd Quarter Results of Operations
(dollars in thousands)
Net Interest Margin For the Three-Months Ended September 30,
2009 2008
Consolidated Core Bank RAL and RT Consolidated Core Bank RAL and RT
Net interest margin 2.68 % 2.93 % -- 3.46 % 3.50 % --
Interest income $ 86,516 $ 86,516 $ -- $ 102,733 $ 102,733 $ --
Interest expense 35,862 34,651 1,211 41,911 41,200 711
Net interest income $ 50,654 $ 51,865 $ (1,211 ) $ 60,822 $ 61,533 $ (711 )
Average earning assets $ 7,490,637 $ 7,023,411 $ 467,226 $ 6,988,840 $ 6,988,497 $ 343
Net Interest Margin For the Three-Month Period Ended June 30,
2009
Consolidated Core Bank RAL and RT
Net interest margin 2.68 % 2.99 % --
Interest income $ 96,089 $ 91,856 $ 4,233
Interest expense 42,651 39,313 3,338
Net interest income $ 53,438 $ 52,543 $ 895
Average earning assets $ 7,990,787 $ 7,042,610 $ 948,177
Deposits, Core Bank September June September
30, 2009 30, 2009 30, 2008
Total deposits $ 5,525,153 $ 5,246,467 $ 4,940,652
Less:
Non-interest-bearing demand deposits - RAL 80,811 95,047 53,659
RAL brokered CDs 51,195 168,598 --
Total deposits, Core Bank $ 5,393,147 $ 4,982,822 $ 4,886,993
Non-GAAP Net income/(loss) excluding provision for loan losses,
tax provision and dividends and accretion of preferred stock
For the Three-Months Ended
September 30,
2009 2008
Net loss available to common shareholders $ (40,748 ) $ (47,501 )
Adjustments:
Provision for loan losses 42,363 63,962
Benefit for income taxes (3,111 ) (21,070 )
Dividends and accretion on preferred stock 2,511 --
Subtotal for adjustments 41,763 42,892
Non-GAAP, net income/(loss) $ 1,015 $ (4,609 )
Summarized Credit Quality Tables (unaudited)
Page 3 of Release for 3rd Quarter Earnings
(dollars in thousands)
Non-Performing Assets:
2009 2008
September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Real estate
Residential - 1 to 4 family $ 51,282 $ 40,088 $ 33,914 $ 19,750 $ 13,641 $ 6,929 $ 8,183
Commercial (1) 87,471 71,563 27,569 23,302 9,022 7,560 9,168
Construction 119,775 132,914 121,788 136,602 109,828 105,207 103,252
Commercial loans 81,234 72,473 70,348 49,761 29,295 34,292 35,472
Home equity loans 6,401 6,424 6,800 4,261 4,062 3,720 4,216
Consumer loans (2) 462 587 730 716 559 391 457
Total Non-performing loans 346,625 324,049 261,149 234,392 166,407 158,099 160,748
Other real estate owned 38,128 24,298 9,911 7,100 5,181 3,695 $ 2,910
Total non-performing assets $ 384,753 $ 348,347 $ 271,060 $ 241,492 $ 171,588 $ 161,794 $ 163,658
(1) Commercial real estate loans includes multi-family residential
real estate loans
(2) Consumer loans include other loans
Delinquencies (31 days or more past due):
2009 2008
September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Real estate
Residential - 1 to 4 family $ 53,482 $ 46,948 $ 40,386 $ 27,540 $ 20,409 $ 7,924 $ 11,829
Commercial (1) 100,323 83,705 44,985 34,229 14,547 23,780 17,500
Construction 169,878 168,107 145,461 153,394 161,648 132,627 130,228
Commercial loans 129,367 127,958 100,689 90,914 55,239 59,172 49,429
Home equity loans 8,211 9,073 10,849 7,929 6,169 4,917 6,693
Consumer loans (2) 1,595 2,154 1,887 2,403 2,286 1,859 1,520
Tax refund loans (RALs) -- -- -- -- 1,600 1,000 --
Total delinquent loans $ 462,856 $ 437,945 $ 344,257 $ 316,409 $ 261,898 $ 231,279 $ 217,199
(1) Commercial real estate loans includes multi-family residential
real estate loans
(2) Consumer loans include other loans
Net Charge-offs/(recoveries):
2009 2008
September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Real estate
Residential - 1 to 4 family $ 4,115 $ 4,915 $ 1,046 $ 1,104 $ 1,106 $ 4,831 $ --
Commercial (1) (304 ) 8,312 1,714 828 344 294 --
Construction 13,345 30,125 38,066 30,847 8,228 8,158 119
Commercial loans 12,405 26,987 28,117 14,896 4,789 12,202 2,415
Home equity loans 3,821 5,664 4,178 1,915 2,568 2,334 605
Consumer loans (2) 1,723 1,052 318 1,305 1,050 714 (970 )
Tax refund loans (RALs) (4,778 ) 1,701 78,886 (949 ) (3,697 ) 837 25,577
Net charge-offs $ 30,327 $ 78,756 $ 152,325 $ 49,946 $ 14,388 $ 29,370 $ 27,746
(1) Commercial real estate loans includes multi-family residential
real estate loans
(2) Consumer loans include other loans
SOURCE: Pacific Capital Bancorp
Pacific Capital Bancorp Debbie Whiteley, Executive Vice President, Investor Relations 805-884-6680 Debbie.Whiteley@pcbancorp.com or Tony Rossi, Financial Profiles 310-277-4711 ext. 119 trossi@finprofiles.com
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.