Independent, unbiased and fair news about the Leasing Industry.
Wednesday, June 20 , 2007
Rumor was True
"The exit from these two business lines and the sale of the portfolios reflects our commitment to creating the optimal mix of businesses within the Bank," said George S. Leis, President & Chief Executive Officer of Pacific Capital Bancorp.
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Pacific Capital Bancorp Announces Sale of Two Loan Portfolios
Company Release - 06/20/2007 18:17
SANTA BARBARA, Calif.--(BUSINESS WIRE)--
Pacific Capital Bancorp (Nasdaq: PCBC) today announced that it has entered into a definitive agreement to sell its Commercial Equipment Leasing and Financing business to LEAF Funding, Inc., LEAF Financial Corporation, and LEAF Commercial Finance Co., LLC. Pacific Capital will receive approximately $280 million from the sale of the business, which equates to approximately 105% of the Bank's net investment in the assets of the Commercial Equipment Leasing portfolio. Pacific Capital will record a gain on sale of approximately $20 million in the second quarter of 2007 related primarily to the costs of the sale of this business.
Pacific Capital also announced the completion of the sale of its Indirect Auto Financing portfolio to Wells Fargo. Pacific Capital received approximately $222 million from the sale of the business, which equates to 100% of the Bank's net investment in the assets of the Indirect Auto Financing portfolio. Pacific Capital will record a loss on sale of approximately $900,000 in the second quarter of 2007 related to the sale of this business.
"We determined that these two businesses were not aligned with our strategic plan or met our targeted internal rates of return. The sale of these portfolios will provide capital that can be better deployed and create greater value for our shareholders."
Pacific Capital Bancorp, with $7.4 billion in assets, is the holding company for Pacific Capital Bank, N.A., a nationally chartered bank that does business on the Central Coast of California 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.
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