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thanks puff, iam hear for the long haul
The earnings report stated that PCBC has 32.9 million shares after the r/s. This 8-K puts the shares at 30.4 million (2.5 million shares less than originally reported, or $75m added value to shareholders). IMO, this is a positive PR.
I dont know what iam readin there, Is it good???? Thanks
Debt Ratings Upgraded
NEW YORK (AP) -- The long-term debt ratings for Pacific Capital Bancorp and its bank were upgraded Thursday by Moody's Investors Service, reflecting improved capital levels at the holding company.
Pacific Capital's long-term issuer rating was raised several notches to "B2" from "C." The ratings are speculative grade, or junk status.
At the bank level, the unsupported financial strength rating was boosted to "D-" from "E."
The bank's long-term deposit rating was raised to "Ba3" from "Caa1" and long-term other senior obligations to "B1" from "C."
The rating outlook for the company was rated "Stable", an improvement from the previous "Under Review" status.
The upgrade follows the completion of the recapitalization of Pacific Capital by SB Acquisition Company LLC, a wholly-owned subsidiary of Ford Financial Fund, which infused $500 million of capital into the bank on Aug. 31.
"In Moody's view, the capital position should provide adequate protection in the event that economic conditions worsen significantly," the analysts wrote.
In the fourth quarter, the company said it completed a shareholders rights offering, raising gross proceeds of $76.4 million, and it completed its 1-for-100 reverse stock split of its common stock, reducing the current number of outstanding shares from 3.29 billion to 32.9 million. That brought the company's book value per share to $19.53 at Dec. 31.
On Thursday, shares fell 40 cents, or 1.3 percent, to $30.56 in afternoon trading.
Net Profit of $20.8m ($0.66 / diluted share) for the last Quarter, and $25.7m ($0.83 / diluted share) for the four months since Ford Financial's investment.
From today's report, we can estimate a net profit of over $100m/yr. I think this is a great result!
PCBC Reports $20.8 Million Net Income in Q4 (2/09/11)
SANTA BARBARA, Calif.--(BUSINESS WIRE)--Pacific Capital Bancorp (Nasdaq: PCBC), a community bank holding company, reported net income of $20.8 million, or $0.66 per diluted share for the three months ended December 31, 2010, and $25.7 million, or $0.83 per diluted share, for the four months since the closing of the $500 million investment from a wholly-owned subsidiary of Ford Financial Fund, L.P. on August 31, 2010.
“We are pleased with the results Pacific Capital Bancorp has achieved over the past four months,” said Carl B. Webb, Chief Executive Officer. “Following the completion of our recapitalization transactions, we have resumed our position as the premier community banking franchise along the Central Coast of California. We have returned to the basic community banking principles that this franchise was built upon, and we are now in a position to fully serve the financial services needs of our customers with a broad array of lending, depository and wealth management products and services.”
During the fourth quarter of 2010, Pacific Capital Bancorp completed its shareholders rights offering, raising gross proceeds of $76.4 million, and completed its 1-for-100 reverse stock split of its common stock, reducing the current number of outstanding shares from approximately 3.29 billion to approximately 32.9 million (without giving effect to the treatment of fractional shares) bringing the Company’s book value per share to $19.53 at December 31, 2010.
Pacific Capital Bancorp and its wholly-owned banking subsidiary, Pacific Capital Bank, N.A. (the “Bank”), exceed the ratios required to be considered ”well capitalized” under generally applicable regulatory guidelines, as well as capital levels that the Bank is required to meet under its agreement with the Office of the Comptroller of the Currency. Tier 1 leverage capital ratios were 9.2% and 10.3% and total risk-based capital ratios were 14.6% and 16.4% at December 31, 2010, for the Bank and Company, respectively.
Impact of Push Down Accounting
On August 31, 2010, a wholly-owned subsidiary of Ford Financial Fund, L.P. became the majority owner of the Company through a $500 million investment. As a result of this change in control, the Company was required to account for this transaction using the acquisition method of accounting and applied “push down accounting” based on authoritative accounting guidance. Accordingly, the Company was required to allocate the aggregate purchase price of $500 million to the assets, liabilities and non-controlling interests of the Company based on their respective fair values. This included recording the Company’s loan portfolio at fair value under “purchased credit-impaired loan” accounting guidance. Fair value is calculated based on discounted estimated future expected cash flows. This accounting allows future credit losses related to the purchased loan portfolio to be brought forward by reducing the carrying value of the loans as part of push down accounting. Authoritative accounting guidance also requires that the statements of financial position and results of operations from periods prior to the transaction be labeled as the predecessor company and periods subsequent to the transaction be labeled as the successor company.
Statement of Operations
Net interest income was $54.0 million and $72.2 million for the three and four months ended December 31, 2010, respectively. Net interest margin was 3.75% for the same respective periods. The improvement in net interest margin from prior periods is primarily the result of the fair valuation of interest-earning assets and interest-bearing liabilities, the repricing of higher interest bearing deposits, and the purchase of investment securities with available cash.
The Company recorded provision for loan losses of $535,000 and $590,000 for the three and four months ended December 31, 2010, respectively, which related only to loans originated subsequent to the closing of the investment on August 31, 2010. The Company expects provision for loan losses to increase in 2011 as it expands loan originations.
Noninterest income was $16.1 million and $20.1 million for the three and four months ended December 31, 2010, respectively. The improvements in noninterest income are primarily from the gains on sales of loans and other real estate owned.
Noninterest expense was $48.7 million and $65.9 million for the three and four months ended December 31, 2010, respectively. Noninterest expense trended lower due to a decrease in employee head count, a reduction in occupancy expense and lower depreciation expense. The Company expects noninterest expense to increase in 2011 due to future investments in technology and personnel.
http://www.businesswire.com/news/home/20110209005654/en/Pacific-Capital-Bancorp-Reports-Net-Income-20.8
Yup you're definitely right. Hopefully we get some good news on the 9th. Thanks again for showing me this company, always good when you can profit from piggybacking those with more experience than you. I'm gradually increasing my ability to dig through bank financials. Wish I would have done it earlier so I could have capitalized on more opportunities after the crisis hit.
Results would reflect Pacific Capital Bank NA.
The income statement appears understated/incomplete.
Saw this on the Yahoo boards and checked out the financials....looks like PCBC earned $27 million in 2010
https://cdr.ffiec.gov/public/Reports/UbprReport.aspx?rptCycleIds=63%2c58%2c52%2c47%2c43&rptid=283&idrssd=785062
Pacific Capital Bancorp announced today that financial results for the fourth quarter and full-year 2010 will be released before the market opens on Wednesday, February 9, 2011.
http://www.businesswire.com/news/home/20110201007379/en/Pacific-Capital-Bancorp-Announces-Date-Fourth-Quarter
We'll see how much business was done in the last quarter of 2010.
[BKU] Secret to Bank's Comeback: A Rich Uncle Named Sam (1/28/11)
By ROBIN SIDEL
MIAMI LAKES, Fla.—Before BankUnited FSB collapsed in May 2009, employees lit candles and prayed that Florida's biggest bank would survive the bad loans it made before the housing bubble burst.
The miracle came in the form of Uncle Sam, or more precisely, the Federal Deposit Insurance Corp., which sold the failed BankUnited to a group of Wall Street financiers led by a longtime New York banker. The FDIC agreed to reimburse as much as $10.5 billion in future loan losses—and gave the new owners $2.2 billion in cash. The buyers paid $945 million.
Since then, BankUnited has become one of the most profitable, highly capitalized financial institutions in the U.S. Deposits are pouring in, loans are flowing to businesses, and executives are itching to buy banks in Florida and New York City.
After the closing bell Thursday, BankUnited sold 29 million shares at $27 each in an initial public offering that values the company at roughly $2.6 billion. The deal is the first IPO by a bank raised from the dead during the financial crisis.
The owners of what is now called BankUnited Inc. are expected to collect more than $500 million from the sale, while keeping a roughly 70% stake in the company, and the FDIC will get at least $25 million from the stock sale. Shares of the BankUnited are expected to start trading Friday on the New York Stock Exchange.
"I wish I had access to that kind of money," says Keith Costello, chief executive at Broward Bank of Commerce, based in Fort Lauderdale, Fla. He says his bank recently lost a potential customer to BankUnited because it was too small to make the loan the borrower needed.
As the nation's roughly 7,700 banks and savings institutions try to recover from about $493 billion in loan losses since the start of 2007, BankUnited is emerging as a case study of how government largess in the immediate wake of the crisis has allowed certain lucky institutions to thrive—while others, whose timing was less opportune, continue to struggle.
As the economy stabilized, the FDIC's incentives to lure buyers became less generous than those enjoyed by the new owners of BankUnited.
The bank is also proving that it's still possible to wring money out of humdrum banking. Instead of relying on the adjustable-rate mortgages that doomed the old bank, BankUnited now dangles sales incentives at employees to make conventional loans. It funnels deposits into plain-vanilla consumer and commercial loans, and makes money the old-fashioned way, from the difference between the interest it pays depositors and what it collects on the loans. Through the first nine months of 2010, BankUnited earned $156.9 million in profits. Return on equity was 18%, compared with 10% at J.P. Morgan Chase & Co. and 12% at U.S. Bancorp, the strongest giant banks in the U.S.
The bank's revival has come at a price: So far, BankUnited's failure has cost the FDIC more than $3.2 billion, including the initial cash pay-out and subsequent reimbursements for losses on loans that have soured. The agency estimates that the failure will ultimately cost its deposit-insurance fund $5.7 billion. The FDIC is funded by the nation's banks, which have had to pony up extra money over the past two years to cover the cost of industry failures.
Other Florida bankers acknowledge the terms received by BankUnited's new owners were generous, but also note that there were few other buyers willing or able to step up and take on the risks. "They still have to put in a lot of work. They're earning their money," says David Seleski, chief executive officer of Stonegate Bank in Fort Lauderdale.
And the FDIC estimates the final tally will still be $1.5 billion less than what it would have cost the agency if it hadn't found a buyer and absorbed the losses itself. "The fact that BankUnited can issue an IPO which will result in more capital for the institution and a more diverse set of investors is a very positive development and indicative of the change in market conditions since the original transaction," says James Wigand, who oversaw until recently the FDIC's sales of assets from failed banks.
BankUnited declined to comment, citing Securities and Exchange Commission rules against speaking publicly just before an initial public offering. In a securities filing last week, the company said: "We believe that our customers are attracted to us because we offer the resources and sophistication of a large bank as well as the responsiveness and relationship-based approach of a community bank."
Other banks, chastened by their recent losses and 332 bank failures since the start of 2007, also are getting back to basics.
Bank of America Corp. is shedding assets outside the U.S. and trying to talk checking-account customers into moving money into Merrill Lynch retirement accounts. Wells Fargo & Co. wants to double the number of services it sells to its business customers. City National Corp., a Los Angeles bank with entertainment-industry roots, recently opened a branch in New York's Times Square and is pitching checking accounts to Broadway actors.
"Our industry needs to become a simpler place for the broad majority of mass-market customers we serve," Brian Moynihan, Bank of America's chief executive, said in November.
BankUnited got a head start on the rest of the banking industry. The biggest reason: As part of the deal with regulators, the FDIC reimburses BankUnited for 80% of all losses on about $4 billion in loans made before it failed—and 95% of losses on an additional $7.7 billion. The FDIC wires the money directly to BankUnited: more than $1 billion as of the end of 2010. The loss-sharing agreement lasts as long as 10 years, depending on the loan.
"It was the perfect deal at the perfect time," says Carlos Fernandez-Guzman, a former BankUnited senior executive vice president who left last spring to become president and CEO of Pacific National Bank in Miami. "I think everyone involved made out like a bandit: the regulators, the private-equity firms, the customers and certainly the folks that are going to invest."
BankUnited's owners include private-equity firms Carlyle Group LP, Blackstone Group LP and Centerbridge Partners LP, financier Wilbur Ross and several smaller investors. Until the crisis, private-equity firms usually steered clear of buying banks because returns were lackluster compared with other companies. Regulators were also wary of these firms, worried that such investors cared only about making a quick buck.
After the crisis hit, federal officials, desperate to attract capital to reeling U.S. banks, were more welcoming to private-equity groups. They now get essentially the same terms as traditional banks when buying failed institutions, though private-equity firms are subject to more rules.
As a result, private-equity firms have pumped billions of dollars into more than 50 financial institutions since 2008. IndyMac Bank FSB, the Pasadena, Calif., lender that failed in July 2008, came back to life as OneWest Bank FSB. Its current owners include billionaire George Soros and Dell Inc. CEO Michael Dell. OneWest has raked in nearly $1.5 billion of profits so far and bought two other California banks that failed.
BankUnited's turnaround is led by John Kanas, 64 years old, who turned a sleepy Long Island, N.Y., thrift into regional-bank powerhouse North Fork Bancorp during the 1990s. He pocketed an estimated $185 million after selling North Fork to Capital One Financial Corp. in 2006, but soon left and started looking for new investment opportunities.
In mid-2008, Mr. Kanas was approached by Andrew Senchak at Keefe, Bruyette & Woods Inc., a boutique investment bank that specializes in the financial-services industry. Mr. Senchak was trying to help BankUnited raise capital and urged Mr. Kanas to take a look. Started in 1984 by a Florida lawyer, the bank rode the boom in adjustable-rate mortgages, which let borrowers make minimal initial payments on their home loans but face sharply higher ones later.
As the housing market sank, BankUnited executives tried to maintain employee morale by throwing a Halloween costume contest, handing out $25 gas cards and letting workers wear jeans on Friday, according to employees. To keep nervous depositors from pulling their money out, BankUnited jacked up interest rates.
Mr. Kanas wasn't ready to make a bid. Over the next six months, he sifted through the books of 75 stumbling financial institutions in California, Las Vegas and the Midwest.
As BankUnited grew sicker, though, Mr. Kanas began to think it might be more attractive. In January 2009, he received a phone call from Olivier Sarkozy, a former investment banker in charge of Carlyle's financial-services investments who was also considering buying BankUnited. Mr. Kanas and another Carlyle banker flew to Atlanta to meet with representatives of the FDIC and Office of Thrift Supervision.
"If and when this bank gets on your [failure] list, I'd like to be considered," Mr. Kanas told government officials, according to a person who heard the comment.
Regulators soon declared BankUnited "critically undercapitalized" and ordered it to raise new capital or sell itself. Because nearly 20% of the bank's loan portfolio had gone bad, Mr. Kanas and other bidders balked at buying BankUnited without assistance from the government.
As FDIC officials prepared to seize BankUnited, more than 60 potential buyers were invited to examine the bank's financial statements and loan records. In the end, there were just three bidders, including the Kanas-led group.
"I tried to find the worst bank in the country, and I did," Mr. Kanas quipped in a presentation to bank-industry investors shortly after the BankUnited acquisition.
Mr. Kanas, who invested $23.5 million in the deal and commutes to Florida each week, declined to be interviewed for this article.
"Everybody would like to repeat what John did, but that's not happening," says Herb Boydstun, CEO of First Southern Bank in Boca Raton, Fla., since the FDIC's terms aren't as generous anymore.
After taking control, Mr. Kanas, now BankUnited's chairman, president and CEO, brought in three former North Fork lieutenants, closed branches in unappealing neighborhoods and slashed interest rates paid on certificates of deposit.
He also shook up the bank's high-rent corporate culture. The headquarters moved from a wood-paneled penthouse in downtown Coral Cables to a low-rise office complex about 30 miles away in Miami Lakes. Mr. Kanas threw a "welcome home" party in the parking lot for employees, and promised to provide more picnic tables so people could eat lunch outside.
Across the street is a pasture where Mr. Kanas regularly walks to visit about two dozen cows who graze there. "For Sale or Lease" signs stick up in front of nearby office buildings, casualties of the battered real-estate market.
BankUnited's private-equity ownership comes with some restrictions. Regulators prohibit the bank from doing business with any of the scores of companies that are owned by Blackstone, Carlyle or the other investors, in order to avoid potential conflicts. These include a range of business, such as Hilton, Hertz and SeaWorld.
When Mr. Kanas wanted new software for BankUnited's loan-servicing department, he had to hire his second choice because his first was owned by Carlyle. The restrictions also affect this week's IPO because Carlyle recently acquired a stake in Sandler O'Neill + Partners LP, which had advised the old BankUnited and Mr. Kanas. As a result, the investment bank is prohibited from handling the underwriting.
Since the failure in May 2009, deposits, not including CDs, at BankUnited have surged about 80% through September. The bank has made $429.5 million in new loans and had $11.2 billion in total assets as of Sept. 30. BankUnited hasn't reported fourth-quarter results.
Mr. Kanas has seven new branches in the works. He wrote a series of cheeky ads in local newspapers that encouraged "unhappy Florida bankers" to quit their jobs and bring their clients to BankUnited. He pried some away by offering extra cash and restricted stock if they met certain goals.
"It is not the kind of sportsmanship that we are used to," one rival banker says.
Some bankers say Mr. Kanas will get a run for his money once other financial institutions in Florida rebuild their capital and start generating consistent profits. "The returns that John Kanas has had are phenomenal, but you couldn't get them in a real banking environment," says Bruce Keir, chief executive of Community Bank of Broward, based in Weston, Fla.
BankUnited's initial public offering raised nearly $800 million, based on the $27 price. It will rank among the 20 largest-ever financial-services deals, according to Dealogic Inc.
http://online.wsj.com/article/SB20001424052748704279704576101823931818868.html
Twenty Trading Days
Please note that effective for Wednesday, December 29, 2010 the underlying stock symbol for Pacific Capital Bancorp will change from PCBC to PCBCD, for twenty (20) trading days. Thereafter, the symbol will revert to PCBC.
Source: CBOE
IS ANYONE ALIVE, Cant believe no one has anything to say here, or did everyone sell off all there pcbc?
Happy New Year to all you pcbc followers. I hope 2011 will bring us good fortune., Thanks to EI and CHEVY who both have kept us up to date and passed on all info reguarding pcbc onto us. Thanks for 2010. Good luck to all in 2011
Predictibly a slow day/week with investors on Holiday.
BUT next week/month/year should be a different kettle of fish ;)
Happy New Year! And Congratulations if you rode the PCBC train this past year. Many Thanx to Enterprising Investor for the sage guidance in 2010!
56Chevy
EI Iam with you and chevy all the way on this, JUst explain to me, and iam sure others would like to know, why did they make it 1 for 100, why not like 1 for 50, open around 13.00 or so, to me it would seem more attractive at a little lower price
thanks
I have my first 100-bagger! ;o)
Seriously, the reverse split will allow many institutions, which were previously restricted due to penny stock rules, to buy shares.
Very strange seeing pcbc in the $28 range, to bad right now the value is the same as yesterday, but look out down the road, iam in for the long term
US HOT STOCKS: Pacific Capital Shares Active In Late TradingLast update: 12/28/2010 5:07:14 PMU.S. stocks closed mixed Tuesday as the Dow Jones Industrial Average gained 21 points to 11576 and the Standard & Poor's 500 inched up 1 point to 1259, while the Nasdaq Composite lost 4.4 points to 2663. Among the companies whose shares are trading in the after-hours session are Pacific Capital Bancorp (PCBC), AeroVironment Inc. (AVAV) and Savient Pharmaceuticals Inc. (SVNT). Pacific Capital Bancorp announced that its previously disclosed 1-for-100 reverse stock split of its common stock became effective at the market close Tuesday. The reverse stock split applies to all of the company's outstanding common stock, reducing the current number of outstanding shares from approximately 3.29 billion to about 32.9 million. Shares of the bank fell 6.8% to $0.27 in after-hours trading. AeroVironment Inc. shares gained 0.3% to $27.37 after it announced it received a $46.2 million order for Raven unmanned aircraft systems and digital retrofit kits. The deal is under an existing contract with the U.S. army. Savient Pharmaceuticals Inc. (SVNT) shares slipped 1% to $11.65 in after-hours trading following the company's announcement that its board has started a search for a chief executive officer, a role the company hasn't had since late 2008. The post was left vacant when Christopher G. Clement resigned in an "involuntary termination by the company without cause," according to a regulatory filing at the time.
Pacific Capital Bancorp Reverse Stock Split Effective Today
4:00p ET December 28, 2010 (Business Wire)
Pacific Capital Bancorp (Nasdaq: PCBC) announced today that its previously disclosed 1-for-100 reverse stock split of its common stock became effective at 1:00 p.m. California time today. Commencing December 29, 2010, the Company's shares will trade on the NASDAQ Global Select Market under the symbol "PCBCD" for a period of 20 trading days as a result of the reverse stock split. The Company's symbol will revert back to its original symbol "PCBC" on January 27, 2010. The Company's common stock has been assigned a new CUSIP number 69404P 200.
The reverse stock split applies to all of the Company's outstanding common stock, reducing the current number of outstanding shares from approximately 3.29 billion to approximately 32.9 million (without giving effect to the treatment of fractional shares). Shareholders will receive cash in lieu of fractional shares. In connection with the reverse stock split, the Company also proportionately reduced the number of its authorized shares of common stock from 5 billion to 50 million.
The Company's shareholders of record will receive a letter of transmittal and instructions from the Company's exchange agent, BNY Mellon Shareowner Services, regarding the procedures for submitting their stock certificates in connection with the reverse stock split. Those shareholders holding the Company's common stock in "street name" will receive instructions from their broker if they need to take any action in connection with the reverse stock split.
The Company also announced that its previously disclosed reincorporation from California to Delaware is expected to be effected on December 30, 2010.
Additional information about the reverse stock split and the reincorporation is available in the Company's definitive information statement on Schedule 14C filed with the Securities and Exchange Commission on December 6, 2010.
About Pacific Capital Bancorp
Pacific Capital Bancorp, with $6.3 billion in assets, is the parent company of Pacific Capital Bank, N.A., a nationally chartered bank that operates 47 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. The Company's website is www.pcbancorp.com.
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, including, but not limited to, statements regarding the reverse stock split and the reincorporation. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in these provisions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The Company cautions you therefore 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, 2009 and the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2010, June 30, 2010 and September 30, 2010. The Company cautions that the foregoing factors are not exclusive.
SOURCE: Pacific Capital Bancorp
Pacific Capital Bancorp
Debbie Whiteley, Investor Relations
805-884-6680
Debbie.Whiteley@pcbancorp.com
Bailed-Out Banks Slip Toward Failure (12/27/10)
Number of Shaky Lenders Rises to 98 as Bad Loans Pile Up; Smaller Institutions Hit Hardest.
By MICHAEL RAPOPORT
Nearly 100 U.S. banks that got bailout funds from the federal government show signs they are in jeopardy of failing.
The total, based on an analysis of third-quarter financial results by The Wall Street Journal, is up from 86 in the second quarter, reflecting eroding capital levels, a pileup of bad loans and warnings from regulators. The 98 banks in shaky condition got more than $4.2 billion in infusions from the Treasury Department under the Troubled Asset Relief Program.
When TARP was created in the heat of the financial crisis, government officials said it would help only healthy banks. The depth of today's problems for some of the institutions, however, suggests that a number of them were in parlous shape from the beginning.
Seven TARP recipients have already failed, resulting in more than $2.7 billion in lost TARP funds. Most of the troubled TARP recipients are small, plagued by wayward lending programs from which they might not recover. The median size of the 98 banks was $439 million in assets as of Sept. 30. The median TARP infusion for each was $10 million, federal filings show.
"We certainly understand and recognize that some of the smaller institutions are experiencing stress," said David Miller, chief investment officer at the Treasury Department's Office of Financial Stability, which runs TARP. He noted that Congress mandated that banks of all sizes be eligible for TARP, adding that the government's TARP investment as a whole is performing well.
Chris Cole, senior regulatory counsel at the Independent Community Bankers of America, a trade group, said small banks are "turning around slowly." Smaller TARP recipients are in worse shape than larger banks because the larger ones got help in addition to TARP, Mr. Cole said. Bank of America Corp. and Citigroup Inc. tapped the Federal Reserve's emergency-liquidity programs frequently during the crisis.
The troubled banks identified by the Journal all have either a Tier 1 capital ratio under the "well-capitalized" 6% level; both a total risk-based capital ratio of under the "well-capitalized" 10% threshold and nonperforming loans of over 10% of their portfolio; or a regulatory order requiring the bank to monitor or boost its capital.
A Federal Deposit Insurance Corp. spokesman declined to comment on the Journal's analysis, which also calculated that 814 of the nation's 7,760 banks and savings institutions are troubled according to these standards, up from 729 at the end of the second quarter. The FDIC's official list of problem banks, which uses different criteria from the Journal's analysis, includes 860 financial institutions. The banks aren't publicly identified.
In October, the Government Accountability Office said 78 banks on the FDIC's troubled-bank list as of June 30 were TARP recipients, up from 47 at the end of 2009. Dozens of TARP banks were "marginal institutions" that were financially weaker than other recipients and should have gotten more scrutiny before receiving taxpayer-funded infusions, the GAO said.
In a response to the GAO report, the Treasury Department said it would consider the GAO's recommendations to improve its funding process if it ever has a program similar to TARP again.
In comparison, the first eight banks and securities firms receiving TARP got a total of $125 billion. All have repaid the funds
Arthur Wilmarth, a George Washington University law professor and expert on banking regulation, said a lot of smaller TARP recipients are burdened with risky commercial-real-estate loans tied up in troubled strip malls and the like, and that makes it hard for them to raise new capital. "A lot of them are in kind of a frozen position," he said.
One example of a TARP recipient in deep trouble: closely held Legacy Bank of Milwaukee. The bank had $205 million in assets as of Sept. 30 and got $5.5 million in TARP funds in January 2009. But more than half of Legacy's loans were in commercial real estate, and its nonperforming loans have escalated to 23% of its portfolio. It has posted eight straight quarterly losses, for a total loss of $11.6 million.
Last month, the Federal Reserve declared Legacy "significantly undercapitalized," giving the bank until mid-January to either sell itself or raise more capital.
José Mantilla, Legacy's president and chief executive, said the bank lends to an underserved, lower-income customer base. During the recession, those customers "have suffered, and they have fallen behind," Mr. Mantilla said.
Legacy is working to raise capital, and "we still feel optimistic" about the bank's chances, he said.
CommunityOne Bank of Asheboro, N.C., got $51.5 million in TARP funds in February 2009 through parent FNB United Corp. The company has suffered nine straight quarterly losses, sapping its capital. In July, the Office of the Comptroller of the Currency said the bank had engaged in "unsafe or unsound banking practices."
R. Larry Campbell, the bank's interim president and chief executive, said CommunityOne is "fully engaged" in efforts to boost its capital.
Write to Michael Rapoport at Michael.Rapoport@dowjones.com
http://online.wsj.com/article/SB10001424052970203568004576044014219791114.html
PCBC is not merely a bank.
It should be also viewed as an "investment vehicle". Ford, Webb & Co. are going to use PCBC to roll up community banks.
I think it would be dangerous to short myself...some "trees" don't fall very hard...and this is one of them imo.
You go to the bank to withdraw $100.
Which would you rather have? A single $100 bill or 400 quarters? You probably want the single bill. However, in either case, you still end up with $100.
A split does not change the enterprise value of the business.
A reverse split does save a company money on corporate trust fees. Fees are charged each time a share changes hands. Berkshire Hathaway saves money because the A shares trade at around $120,000 per share (521 shares traded yesterday). BRK-B traded 2,607,610 shares.
Most reverse splits fail because the underlying entity is usually on poor footing. The r/s doesn't really "fail," the people just keep on selling like they would without one. If a solid company does one it is much stronger. Watch Motorola when they do theirs in a few weeks, I bet it works out in the long run.
All a R/S really is is paper shuffling, if PCBC is able to turn itself consistently profitable the reverse split will work imo
I have seen some reverse splits end back down, just to do another reverse split to minimize the amount of shares out there; rather than do a share buy back. Shorts are on boths side of win/loss. Longs are still dependant on the company's progress though.
On watchlist, news helps, but sometimes i have my investing partner make the call.
Investment Partners? "Two are better than one..." EC4:9
Serious question - Would it be better to get some shares now or after the reverse split? I know it sounds like a dumb question when a reverse split is supposed to make the price per share increase, and in this case enough to not be kicked out of the nasdaq. But the reverse splits that I have seen in the past and have been involved in have all been a better buy right after the split happens. It seems the price per share drops dramatically right after the split and then usually makes a really good rebound.
Because of this I am thinking about jumping in right after the reverse split takes place...Any thoughts???
Effective Date is expected to be 12/28/10.
http://sec.gov/Archives/edgar/data/357264/000119312510274627/ddef14c.htm
reverse split? i've seen some posts that there is going to be a reverse split on 12/28. couldn't find the announcement/publication. can someone help me with a link? or is it just a bash? thks
PCBC Short Interest
Pacific Capital Bancorp $ 0.31
PCBC 0.00
Daily Short Sale Volume - NEW view
Short Interest (Shares Short) 36,578,100
Days To Cover (Short Interest Ratio) 3.0
Short Percent of Float view
Naked Short Selling List - NEW view
Short Interest - Prior 9,377,700
Short % Increase / Decrease 290.05
Non-event in my mind.
Anyone Alive here. One More Week till the R/S. Going to be an intersting week untill the close of tuesday the 28th. Then PCBC becomes PCBCD for 20 days I believe.
PCBC Will run tomorrow.I jumped in Thursday.Everyone should have loaded up.I sent more ammo to Amtrade.I think I might be able to buy more in morning before it runs.Only my opinion.
I suppose you are basing your calculations on historic data which is ok. Aint nothing wrong with that. In fact, that is what investing is all about, and result seeking analysts work all the number angles before jumping on a band wagon. Though they often get into a good game at a later stage, the wait is worth it because it takes away speculation.
PCBC took a loss of approx $140m during the first and second quarter of the year following a couple of other quarterly losses. After the ford agreement went down in August, PCBC returned to profitability. Last quarter PCBC brought in $5m. And I think (speculate) the size of the profit will grow in the future comparatively with other community banks of this size.
Insider Transactions on the open market
Dec 3 - LOOMIS WILLIAM bought 3,000,000 shares @ 0.33
Dec 10 - Bidwell Gerald bought 500,000 @ 0.28
Although I understand the above positive indication can't be substituted for fundamental results, nevertheless I like the odds of the pps going higher before and after the r/s.
PCBC Bull Flag
Pacific Capital Bancorp (NASDAQ:PCBC) is a small bank stock trading in the low ranges of the daily chart. In addition, the stock has a beautiful intra day bull flag setup that may spell breakout in the coming minutes or days. Note the chart below. Small bank stocks have been the hottest sector in the markets of late with gains ranging from 25% - 100%. Watch for the blast off, it may be coming shortly.
http://www.inthemoneystocks.com/n_rant_and_rave_blog_single.php?id=11128
You're long bullish even at 1.54x P/B ratio?
Isn't that fairly expensive for a value bank investment? I'm surprised this isn't trading between .5-1x P/B
I calculated the P/B based off the 11/9 8-K and today's market price
PCBC Video Chart 12/16/10
http://www.qualitystocks.net/videocharts.php
Pacific Capital Bancorp is not a current client of QualityStocks
H Gerald Bidwell files Form 4 (12/10/10)
Total holdings now 835,651 shares.
http://sec.gov/Archives/edgar/data/357264/000122520810026748/xslF345X03/doc4.xml
If insiders are gorging themselves (at 28 cents) leading to the R/S then I have little to worry about.
http://www.tradingmarkets.com/news/press-release/pcbc_insidercow-com-h-gerald-bidwell-of-pacific-capital-bancorp-nasdaqgs-pcbc-bought-shares-of-pcbc-1364396.html
Simply buy and hold...
very very quiet, is anyone still alive here, nice volume here leading up to this r/s... whats is the thought here
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Pacific Capital Bancorp, (Nasdaq:PCBC) is the holding company for Santa Barbara Bank & Trust, National Association., the largest independent banking company headquartered on the Central Coast of California.
Ford Financial Fund Investment Date Forward (8/30/10):
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