Less than a year after receiving an infusion of capital from a Texas private equity firm, Pacific Capital Bancorp, the parent company of First Bank of San Luis Obispo, continues to improve its financial health.
The bank reported net income of $16.8 million in the first quarter of this year, compared with $20.8 million for the three months ended Dec. 31, 2010. The bank’s total net income is $42.5 million since the closing of the $500 million investment in August 2010 from Ford Financial Fund, which is headed by billionaire Gerald J. Ford.
Provision for loan losses increased to $1.7 million in the first quarter compared with $535,000 in the previous quarter, the result of the bank purchasing $188 million of commercial loans and the origination of $42 million in loans during the first quarter.
The bank exceeds the ratios required to be considered well capitalized under regulatory guidelines and has capital levels it is required to meet as part of its agreement with the Office of the Comptroller of the Currency.
Last year’s capital infusion came at a critical time for the bank, which had been under the scrutiny of federal regulators. Regulators had given the company until Sept. 8, 2010, to submit an acceptable capital plan or face having to sell, merge or liquidate.
“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 toward achieving our strategic goals.”
With $5.9 billion in assets, the Santa Barbara-based bank operates 47 branches throughout the Central Coast, including three First Bank of San Luis Obispo locations in San Luis Obispo County.