Pacific Capital Bancorp in Santa Barbara, Calif., said Wednesday that it expects income from its tax-refund anticipation loans to decline over the next few years as a result of a change in its contract with Jackson Hewitt Tax Service Inc.
Over the next three years the Parsippany, N.J., tax preparer will steadily reduce the proportion of loans it refers to Santa Barbara Bank and Trust for more even distribution of its referrals among the other banks that make immediate loans to taxpayers who file their returns electronically.
Additionally, starting this year the $6.9 billion-asset Pacific Capital will pay Jackson Hewitt fees for marketing and technology services instead of sharing the transaction fee charged on each loan.
Pacific Capital said the changes should not have a material impact on 2006 earnings per share, which it previously said should be between $2.29 and $2.37.
Pacific Capital's stock price rose 1.04% to close at $36.10.
