Santa Barbara Bancorp to Buy Pacific Capital

Santa Barbara Bancorp agreed to buy Pacific Capital Bancorp for $287.6 million in stock, a move that would boost its presence in Central California. Santa Barbara would exchange 1.935 shares for each Pacific Capital share, valuing Pacific Capital at $63.86 a share. Shares of Salinas-based Pacific Capital rose $4 to close at $53 on Nasdaq. The transaction will add $816 million in assets to Santa Barbara Bancorp, creating a $2.43-billion bank holding company with branches from Morgan Hill to Camarillo, the companies said. They expect to complete the transaction in the fourth quarter of this year. Santa Barbara Bancorp would take a charge of between $6.5 million and $7.5 million in that quarter. The company said it will not close any branches but will consolidate some administrative activities. The companies said they have not determined how many, if any, jobs will be cut. Santa Barbara shares rose 75 cents to close at $33 on Nasdaq. The announcement was made after the markets closed.