Pacific Capital Bancorp in Santa Barbara, Calif., is using some of its excess cash to pay down debt and resume paying interest on trust preferred securities.

The $5.8 billion-asset parent company of Santa Barbara Bank & Trust N.A. said Monday in a news release that the subordinated debt had a $35 million principal balance and would have matured in December 2013. Pacific Capital paid a price equal to 100% of the principal amount plus accrued interest.

Pacific Capital said that the action will result in a pre-tax charge of about $5 million during the fourth quarter but that it will reduce interest expense in 2012 by about $1.1 million.

Pacific Capital is flush with cash after receiving a $500 million capital infusion from a private equity investment in 2010. At Sept. 30, its total risk-based capital-to-assets ratio was 20%.

The company also said Monday that it intends to resume paying interest on trust preferred securities. Pacific Capital had set aside $5.6 million for upcoming interest payments on trust preferred securities and once this is paid out it said it will be current on its obligation. The company also said this step will not have an impact on fourth-quarter earnings.

Shares for Pacific Capital were trading at $26.31 on Tuesday midday, up nearly 5% from Monday's closing price.

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