Wednesday, Pacific Capital Bancorp (PCBC), the holding company for Pacific Capital Bank, N.A., reported a loss for the second quarter compared to profit in the same period last year.
Second quarter net loss was $5.89 million, or $0.13 per share, compared to net income of $33.17 million, or $0.70 per share, in the prior year quarter.
On average, seven analysts polled by First Call/Thomson Financial expected the company to report earnings of $0.18 per share.
Results for the quarter included a provision for loan losses of $37.2 million.
Quarterly net interest income declined to $64.37 million from $66.84 million in same quarter a year ago. Non-interest income more than halved to $22.20 million from $48.86 million last year. Analysts had a revenue estimate of $87.91 million for the quarter.
The decrease in net interest income was primarily attributable to the sale and transfer of loans during the past year and a decline in loan interest rates that could not be fully offset by reductions in interest expense on deposits and borrowings. The decrease in non-interest income was mostly impacted by the sale of the indirect auto and equipment leasing loan portfolios, which generated net gains of $23.5 million in the second quarter of 2007.
For the first six months, the company reported a net income of $66.59 million, or $1.43 per share, down from $84.80 million, or $1.79 per share, in the first six months of previous fiscal.
Half-yearly net interest income declined to $225.55 million from 242.23 million last year. Non-interest income declined to $147.52 million from $153.11 million in the previous year period.
Commenting on the future outlook, George Leis, president and chief executive officer of Pacific Capital Bancorp, said, "Given the continued weakness in the homebuilding industry and the challenging economic environment, we anticipate that our non-performing assets and provision for loan losses will remain elevated until economic conditions improve. However, we believe the positive trends in our loan and deposit gathering, along with improved expense management, should help the Core Bank to generate greater profitability in the second half of the year."
PCBC is currently trading at $15.11, up $0.23, or 1.55% on Nasdaq.
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