Pacific Capital Bancorp Announces Return to Profitability After Recapitalization

Pacific Capital Bancorp PCBC announced today that it had returned to profitability after the completion of its recapitalization transactions during the third quarter of 2010. The Company reported net income of $5.0 million for the one month ended September 30, 2010. The one-month reporting is related to the Company after the closing of the $500 investment from a wholly-owned subsidiary of Ford Financial Fund, L.P. on August 31, 2010. Net interest income was $18.1 million for the one month ended September 30, 2010. Net interest margin was 3.77% for the one month ended September 30, 2010, or 100 bps higher than the net interest margin for the three months ended September 30, 2009. The increase in net interest margin is primarily the result of the fair valuation of interest-earning assets and interest-bearing liabilities, and the repayment of $802 million in FHLB advances with the proceeds from this investment transaction and excess cash held by the Company.