Pacific Capital Bancorp in Santa Barbara, Calif., said Thursday that it lost $47.5 million, or $1.03 a share, as it set aside nearly $64 million for problem loans and took a $22 million impairment charge on accumulated goodwill.

It also announced that it has won preliminary approval to receive $188 million from the Treasury Department's Capital Purchase Program, the maximum amount for which it is eligible.

The $7.7 billion-asset Pacific Capital earned $3.9 million in the third quarter of last year.

The loss provision nearly doubled from a year earlier.

Weakening real estate conditions led to a rise in nonperforming loans.

The ratio of nonperformers to core bank loans held for investment increased 187 basis points from a year earlier but rose only 7 basis points from the second quarter, to 2.23%.

"While our asset quality remained generally stable during the third quarter, the outlook for general economic conditions and the impact on our loan portfolio changed considerably," George Leis, Pacific Capital's president and chief executive officer, said in a press release.

"Accordingly, we significantly increased both the quantitative and qualitative factors of our allowance for loan loss to reflect higher historical loss rates and inherent probable losses due to weakness in the national and state economies," Mr. Leis said.

Pacific Capital, one of the nation's leading provider of tax refund anticipation loans, also said that the securitization market for its refund loans has been disrupted, and that it is considering alternative sources of funding that may limit the business in the coming tax season.

Shares of Pacific Capital decreased 7.6% Thursday, to close at $16.50.

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