Federal bank regulators have officially lifted their close scrutiny of the Santa Barbara Bank & Trust parent company after two years of monitoring capital levels and expenditures.
The Santa Barbara-based holding company needed regulators’ approval before paying dividends, incurring debt and purchasing stock, and had to make a plan for how it would maintain sufficient cash flow.
Community West Bancshares is going through similar consent orders; regulators told the parent company of Goleta-based Community West Bank in April that it must boost its total risk-based capital ratio to 12 percent in three years.
Union Bank’s parent company, UnionBanCal Corporation, purchased Pacific Capital Bancorp in March for $1.51 billion, pending regulatory approval. UnionBanCal has more than $90 billion in assets and more than 404 branches.
The San Francisco African American Chamber of Commerce recently came out against the acquisition because the chamber said that the San Francisco-based Union Bank does not support the local African American business community, according to the San Francisco Business Times.
Texas billionaires Carl Webb and Gerald Ford invested in a $500 million Pacific Capital bailout in August 2010 after SBB&T netted a $405 million loss in 2009.
SBB&T earned $73.4 million in 2011, while many investors saw the value of their SBB&T shares significantly drop. The 52-year-old community bank will likely be rebranded early next year to Union Bank.