Exhibit 99.1

Pacific Capital Bancorp Announces Satisfaction of Critical Closing Conditions

and Anticipated August 31, 2010 Closing Date

for Investment from Subsidiary of Ford Financial Fund, L.P.

Company Reports Second Quarter 2010 Financial Results

Santa Barbara, California, July 27, 2010 — Pacific Capital Bancorp (the “Company”) (Nasdaq: PCBC), a community bank holding company, announced today that it has satisfied significant conditions to closing the previously announced investment of $500 million in the Company by SB Acquisition Company LLC, a wholly-owned subsidiary of Ford Financial Fund, L.P. (“Ford”), and anticipates closing the transaction on August 31, 2010. The Company also announced that it has reached a key agreement with the United States Department of the Treasury (“Treasury”) on the treatment of the preferred stock issued by the Company under the Troubled Asset Relief Program Capital Purchase Program, and is currently awaiting regulatory approval of the proposed Ford investment.

“We are pleased that we have reached an agreement with Treasury and that Ford has indicated to us that we have made sufficient progress on our tender offers. These were clearly two of the most critical conditions to completing the Ford investment and their resolution allows us to see a clear path to a targeted closing by the end of August,” said George Leis, President and Chief Executive Officer of Pacific Capital Bancorp. “Upon closing of the investment, we expect our capital ratios will again exceed the ratios required to be considered ‘well capitalized’ under generally applicable regulatory guidelines. The significant increase in capital resulting from the Ford investment will return Pacific Capital to being one of the strongest community banks serving the Central Coast of California,” continued Leis.

“On behalf of all of our employees, I take this opportunity to sincerely thank our customers and communities for standing with us during these challenging economic times,” said Leis. “We fully intend to reward your loyalty by continuing to provide you with the financial products and advisory services you expect, delivered with the personal customer service and community support you deserve, a formula which has long differentiated our bank in the markets we serve. We also want to thank Ford and its people, who have been outstanding partners for Pacific Capital as we have worked through this process.”

Gerald J. Ford, Managing Member of the Ford Financial Fund said, “In our 35-year history in the financial services sector, we have been highly selective in identifying financial services partners, focusing on quality companies that meet our high standards. We believe Pacific Capital is one of the great community bank franchises in California. We are pleased that we are making such good progress towards completing our investment in this franchise, which will provide the financial support that will allow the

Bank to continue serving its customers and actively support its community partners. We very much look forward to closing this transaction and to becoming part of the many great communities who depend on this Bank.”

“This is a very significant and positive event for our Company,” said Edward E. Birch, Chairman of the Board of Pacific Capital Bancorp. “For more than 50 years, our community bank has been distinguished from others in our markets for its superior service levels and its unwavering community partnership. We feel most fortunate to have identified an investor who believes, like we do, in the importance of our bank’s rich culture, and deep commitment to its customers and communities.”

Definitive Agreement with the United States Department of the Treasury

The Company also announced today that it has entered into a definitive exchange agreement (the “Treasury Exchange Agreement”) with Treasury providing for, among other things and upon satisfaction of certain closing conditions, including closing of the Ford transaction, (i) the exchange of the 180,634 shares of preferred stock, having an aggregate liquidation amount of $180.6 million, issued by the Company to Treasury under the Troubled Asset Relief Program Capital Purchase Program (the “Series B Stock”) for shares of a newly-created Series D Fixed Rate Cumulative Mandatorily Convertible Preferred Stock (the “Series D Stock”), having an aggregate liquidation amount equal to the sum of $180.6 million plus accrued but unpaid dividends on the Series B Stock outstanding immediately prior to the exchange, (ii) the exchange of the Series D Stock at a discounted exchange value equal to 37% of the liquidation amount of such Series D Stock into shares of the Company’s common stock at a conversion price of $0.20 per share; and (iii) the amendment of the terms of the warrant to purchase 1,512,003 shares of the Company’s common stock currently held by Treasury to provide for an exercise price of $0.20 per share for a ten-year term following the closing of the transactions contemplated by the Treasury Exchange Agreement.

The complete terms and conditions of the Treasury Exchange Agreement will be detailed in a filing made on Form 8-K on or before July 30, 2010, with the Securities and Exchange Commission. A copy of the Form 8-K filing will be accessible at http://www.pcbancorp.com/investors/sec_filings/ or www.sec.gov.

The Company has been advised by Ford that consummation of the exchange with Treasury on the terms contemplated by the Treasury Exchange Agreement will satisfy the condition to closing set forth in its investment agreement with Ford (the “Ford Investment Agreement”) relating to the exchange of preferred stock and warrants held by Treasury.

Update on Tender Offers and Receipt of Approval from NASDAQ

As of 5:00 p.m., New York City time, on July 26, 2010, Pacific Capital Bank, N.A. (the “Bank”) had received tenders from holders of $68,000,000 in aggregate principal amount of subordinated debt securities. The Company had not received valid tenders

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from holders of any trust preferred securities. The Company has been advised by Ford that the completion of the tender offers at this level and otherwise on the terms contemplated by the offers to purchase will satisfy the condition to closing set forth in the Ford Investment Agreement relating to the debt tender offers.

In addition, the Company has received approval from The NASDAQ Stock Market LLC (“NASDAQ”) to issue the securities to Ford and Treasury under the Ford Investment Agreement and Treasury Exchange Agreement, respectively, in reliance on the shareholder approval exemption set forth in NASDAQ Rule 5635(f).

Second Quarter 2010 Financial Results

The Company also announced today results for the second quarter of 2010. The Company recorded a net loss applicable to common shareholders of ($61.0) million, or ($1.24) per share, for the second quarter of 2010, compared with a net loss of ($362.6) million, or ($7.80) per share, for the same period a year ago.

Statement of Operations

The Company’s net interest income for the second quarter of 2010 was $39.6 million, compared with $52.0 million for the same quarter of 2009. The Company’s net interest margin for the second quarter of 2010 was 2.29%, which compares with 2.85% in the second quarter of 2009 and 2.60% in the first quarter of 2010. The decrease in net interest income and net interest margin is primarily attributable to the Company’s decision to increase its cash holdings. Upon closing of the transaction with Ford, the Company expects to redeploy these funds to reduce its borrowing or increase its higher yielding assets.

The Company’s non-interest income was $7.3 million in the second quarter of 2010, compared with $11.0 million in the second quarter of 2009. The decrease is primarily attributable to an increase in write downs on other real estate owned (OREO).

Non-interest expense was $51.3 million in the second quarter of 2010, compared with $210.2 million in the second quarter of 2009. Non-interest expense in the second quarter of 2009 included a $128.7 million charge for the impairment of goodwill and $3.8 million of prepayment penalties on FHLB borrowings. The remaining reduction in non-interest expense represents a $14.0 million decline in off-balance sheet reserve expense and a reduction to costs as the Company implemented cost saving measures to reduce its overall cost structure.

The Company recorded a provision for loan losses of $56.7 million for the second quarter of 2010, compared with $194.1 million in the same period of the prior year and a provision of $99.9 million for the first quarter of 2010. The decrease in the provision for loan losses reflects a lower level of net charge-offs from the same period a year ago and in the preceding quarter. However, the overall allowance for loan losses increased to 6.01% of total loans at June 30, 2010, from 5.80% at March 31, 2010.

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The income tax expense of $23.0 million in the second quarter of 2009 represents the net portion of the Company’s deferred tax asset it determined was no longer realizable.

Balance Sheet

The Company’s total gross loans held for investment were $4.60 billion at June 30, 2010, compared with $4.89 billion at March 31, 2010, and $5.65 billion at June 30, 2009. The sequential quarter decline in total gross loans is primarily attributable to scheduled amortization, loan prepayments, and charge-offs.

The Company’s total deposits were $5.27 billion at June 30, 2010, compared with $5.42 billion at March 31, 2010, and $4.98 billion at June 30, 2009.

The Company continues to maintain a strong liquidity position. As of June 30, 2010, the Company had $1.6 billion in cash and other unpledged liquid assets.

Asset Quality

Total non-performing assets (NPAs) were $604.5 million at June 30, 2010, compared with $467.3 million at March 31, 2010. The increase was primarily attributable to higher levels of non-performing loans in the commercial real estate portfolio.

Net charge-offs were $64.6 million in the second quarter of 2010, compared with $84.3 million in the first quarter of 2010. The net charge-offs in the second quarter of 2010 primarily consisted of $28.0 million related to the commercial loan portfolio, $13.8 million related to the commercial real estate portfolio, and $8.8 million related to the residential real estate portfolio.

The following table provides comparative asset quality data for the three-month periods for continuing operations (dollars in millions):

	As of and For the Three-Months Ended
Continuing Operations:	June 30, 2010			March 31, 2010			June 30, 2009
Allowance for loan losses	$	276.9		$	283.4		$	258.0
Allowance for loan losses/total loans		6.01	%		5.80	%		4.57	%
Total non-performing assets	$	604.5		$	467.3		$	348.3
Total non-performing assets/total assets		8.60	%		6.51	%		4.95	%
Allowance/non-performing loans		50	%		68	%		80	%
Net charge-offs	$	64.6		$	84.3		$	77.1
Annualized net charge-offs/total average loans		5.42	%		6.72	%		5.40	%

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Capital Ratios

At June 30, 2010, the Bank had a Tier 1 leverage ratio of 4.0%, a Tier 1 risk-based capital ratio of 6.7% and a Total Risk-Based capital ratio of 9.5%. Following consummation of the transactions contemplated by the Ford Investment Agreement, the Company expects that the Bank’s capital ratios will exceed the ratios required to be considered “well capitalized” under generally applicable regulatory guidelines.

Conference Call and Webcast

The Company will hold a conference call today at 11:00 a.m. Eastern time / 8:00 a.m. Pacific time to provide a business update and review the second quarter 2010 results. To access a live webcast of the conference call, log on at the Investor Relations page of the Company’s website at www.pcbancorp.com. For those who cannot listen to the live broadcast, a replay of the conference call will be available shortly after the call at the same location.

About Pacific Capital Bancorp

Pacific Capital Bancorp is the parent company of Pacific Capital Bank, N.A., a nationally chartered bank that operates 48 branches under the local brand names of Santa Barbara Bank & Trust, First National Bank of Central California, South Valley National Bank, San Benito Bank and First Bank of San Luis Obispo.

About Ford

Ford Financial Fund, L.P. is a private equity investment firm that specializes in financial services companies. Its principals, Gerald J. Ford (Managing Member) and Carl B. Webb (Senior Principal), are experienced career bankers with a 35-year history of demonstrated success at acquiring and managing a wide range of financial services operations, which have included Golden State Bancorp, Inc., First Gibraltar Bank, FSB and First United Bank Group, Inc. The Ford team is committed to the long-term operations of the companies in which they invest.

Cautionary Statement

The issuance of the securities in the transactions described in this release have not been and will not be registered under the Securities Act of 1933 or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any jurisdiction or state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction or state.

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Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in these provisions. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about anticipated future operating and financial performance, financial position and liquidity, business prospects, strategic alternatives, consummation of any capital investment or recapitalization, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, acquisition and divestiture opportunities, plans and objectives of management for future operations, and other similar forecasts and statements of expectation and statements of assumptions underlying any of the foregoing. Words such as “will likely result,” “aims,” “anticipates,” “believes,” “could,” “estimates,” “expects,” “hopes,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of these words and similar expressions are intended to identify these forward-looking statements.

Forward-looking statements are based on the Company’s current expectations and assumptions regarding its business, the regulatory environment, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The Company’s actual results may differ materially from those contemplated by the forward-looking statements. The Company cautions you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the following: inability to complete the investment and recapitalization transactions contemplated by the Ford Investment Agreement and the Treasury Exchange Agreement; inability to achieve the higher minimum capital ratios that the Bank is required to maintain pursuant to the Consent Order issued by the Office of the Comptroller of the Currency on May 11, 2010; the effect of other requirements of the Consent Order and the Written Agreement dated May 11, 2010, by and between the Company and the Federal Reserve Bank of San Francisco, and any further regulatory actions; inability to continue as a going concern; management’s ability to effectively execute the Company’s business plan; inability to raise additional capital on acceptable terms, or at all; inability to receive dividends from the Bank and to service debt and satisfy obligations as they become due; costs and effects of legal and regulatory developments, including the resolution of legal proceedings or regulatory or other governmental inquiries, and the results of regulatory examinations or reviews; changes in capital classification; the impact of current economic conditions and the Company’s results of operations on its ability to borrow additional funds to meet its liquidity needs; local, regional, national and international economic conditions and events and the impact they may have on the Company and its customers; changes in the economy

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affecting real estate values; inability to attract and retain deposits; changes in the level of non-performing assets and charge-offs; changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; changes in the financial performance and/or condition of the Bank’s borrowers; effect of additional provision for loan losses; long-term negative trends in the Company’s market capitalization; continued listing of the Company’s common stock on NASDAQ ; effects of any changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; inflation, interest rate, cost of funds, securities market and monetary fluctuations; rating agency downgrades; continued volatility in the credit and equity markets and its effect on the general economy; effect of changes in laws and regulations (including laws concerning banking, taxes and securities) with which the Company and its subsidiaries must comply; and effect of changes in accounting policies and practices. In addition to the risks and factors identified above, reference is also made to other risks and factors detailed in reports filed by the Company with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 and the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2010. The Company cautions that the foregoing factors are not exclusive.

Forward-looking statements speak only as of the date they are made, and the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, whether as a result of new information, future developments or otherwise, except as may be required by law.

Contacts:	Debbie Whiteley, Investor Relations
	(805) 884-6680
	Debbie.Whiteley@pcbancorp.com
	Tony Rossi, Financial Profiles
	(310) 478-2700 x13
	trossi@finprofiles.com

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Consolidated Balance Sheets

(in thousands)

																% Change
	As of															6/30/2010  vs. 3/31/2010		6/30/2010  vs. 6/30/2009
	6/30/2010			3/31/2010			12/31/2009			9/30/2009			6/30/2009
	(unaudited)			(unaudited)						(unaudited)			(unaudited)
Assets
Cash and due from banks	$	50,840		$	20,013		$	45,593		$	38,374		$	53,043		154.0	%	(4.2	)%
Interest-bearing demand deposits in other financial institutions		1,331,674			1,109,927			878,823			836,871			74,882		20.0	%	1678.4	%
Trading assets		4,640			5,286			5,403			5,990			78,135		(12.2	)%	(94.1	)%
Investment securities available for sale		825,958			944,539			1,153,687			1,298,340			956,309		(12.6	)%	(13.6	)%
Loans held for sale		17,300			26,629			19,211			20,128			20,650		(35.0	)%	(16.2	)%
Loans held for investment		4,603,829			4,887,138			5,166,431			5,370,940			5,646,769		(5.8	)%	(18.5	)%
Allowance for loan losses		(276,900	)		(283,412	)		(272,852	)		(269,389	)		(258,032	)	(2.3	)%	7.3	%
Net loans held for investment		4,326,929			4,603,726			4,893,579			5,101,551			5,388,737		(6.0	)%	(19.7	)%
Premises and equipment, net		64,654			68,304			71,934			76,361			78,926		(5.3	)%	(18.1	)%
Other intangible assets		7,892			8,641			9,289			8,963			8,561		(8.7	)%	(7.8	)%
Other assets		395,567			396,242			389,478			382,035			381,019		(0.2	)%	3.8	%
Assets from discontinued operations		100,772			185,812			75,258			135,673			273,170		(45.8	)%	(63.1	)%
Total assets	$	7,126,226		$	7,369,119		$	7,542,255		$	7,904,286		$	7,313,432		(3.3	)%	(2.6	)%
Liabilities
Deposits:
Non interest-bearing demand deposits	$	1,021,836		$	1,051,008		$	1,076,916		$	1,105,092		$	1,006,328		(2.8	)%	1.5	%
Interest-bearing deposits:
NOW accounts		925,335			963,770			938,336			947,894			985,954		(4.0	)%	(6.1	)%
Money market deposit accounts		274,386			268,153			287,271			310,972			405,531		2.3	%	(32.3	)%
Other savings deposits		356,385			372,132			353,712			370,688			389,116		(4.2	)%	(8.4	)%
Time deposits		2,696,262			2,762,898			2,717,584			2,658,501			2,195,893		(2.4	)%	22.8	%
Total interest-bearing deposits		4,252,368			4,366,953			4,296,903			4,288,055			3,976,494		(2.6	)%	6.9	%
Total deposits		5,274,204			5,417,961			5,373,819			5,393,147			4,982,822		(2.7	)%	5.8	%
Securities sold under agreements to repurchase and Federal funds purchased		308,255			316,808			322,131			328,692			333,884		(2.7	)%	(7.7	)%
Long-term debt and other borrowings		1,118,657			1,076,951			1,311,828			1,539,211			1,195,173		3.9	%	(6.4	)%
Other liabilities		100,840			92,209			94,616			109,802			113,974		9.4	%	(11.5	)%
Liabilities from discontinued operations		100,772			185,812			75,258			135,673			273,170		(45.8	)%	(63.1	)%
Total liabilities		6,902,728			7,089,741			7,177,652			7,506,525			6,899,023		(2.6	)%	0.1	%
Shareholders’ equity		223,498			279,378			364,603			397,761			414,409		(20.0	)%	(46.1	)%
Total liabilities and shareholders’ equity	$	7,126,226		$	7,369,119		$	7,542,255		$	7,904,286		$	7,313,432		(3.3	)%	(2.6	)%

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Consolidated Statements of Operations (unaudited)

(in thousands, except per share amounts)

													% Change
	For the Three-Months Ended June 30,						For the Six-Months Ended June 30,						Three-Months Ended 6/30/2010 vs. 6/30/2009		Six-Months Ended 6/30/2010 vs. 6/30/2009
	2010			2009			2010			2009
Interest income
Loans	$	61,761		$	77,946		$	127,610		$	156,452		(20.8	)%	(18.4	)%
Trading assets		60			2,049			124			4,687		(97.1	)%	(97.4	)%
Investment securities available for sale		7,068			11,861			15,394			22,929		(40.4	)%	(32.9	)%
Other		860			173			1,701			651		397.1	%	161.3	%
Total interest income		69,749			92,029			144,829			184,719		(24.2	)%	(21.6	)%
Interest expense
Deposits		17,496			21,496			35,288			45,784		(18.6	)%	(22.9	)%
Securities sold under agreements to repurchase and Federal funds purchased		2,015			2,703			4,023			5,855		(25.5	)%	(31.3	)%
Long-term debt and other borrowings		10,612			15,799			21,626			33,248		(32.8	)%	(35.0	)%
Total interest expense		30,123			39,998			60,937			84,887		(24.7	)%	(28.2	)%
Net interest income		39,626			52,031			83,892			99,832		(23.8	)%	(16.0	)%
Provision for loan losses		56,718			194,102			156,583			267,618		(70.8	)%	(41.5	)%
Net interest loss after provision for loan losses		(17,092	)		(142,071	)		(72,691	)		(167,786	)	—		—
Non interest income
Service charges and fees		5,463			6,109			11,202			12,150		(10.6	)%	(7.8	)%
Trust and investment advisory fees		5,174			5,310			10,583			10,856		(2.6	)%	(2.5	)%
Gain/(loss) on securities, net		477			(1,765	)		4,988			264		—		1789.4	%
Other		(3,854	)		1,379			61			3,178		(379.5	)%	(98.1	)%
Total non interest income		7,260			11,033			26,834			26,448		(34.2	)%	1.5	%
Non interest expense
Salaries and employee benefits		21,601			24,469			43,678			54,397		(11.7	)%	(19.7	)%
Net occupancy expense		5,483			6,250			11,286			12,574		(12.3	)%	(10.2	)%
Goodwill impairment		—			128,710			—			128,710		100.0	%	100.0	%
Other		24,221			50,774			47,659			74,198		(52.3	)%	(35.8	)%
Total non interest expense		51,305			210,203			102,623			269,879		(75.6	)%	(62.0	)%
Loss before income tax (benefit)/expense		(61,137	)		(341,241	)		(148,480	)		(411,217	)	—		—
Income tax (benefit)/expense		(2,982	)		22,971			(2,933	)		(9,423	)	(113.0	)%	—
Net loss from continuing operations		(58,155	)		(364,212	)		(145,547	)		(401,794	)	—		—
(Expense)/income from discontinued operations, net of tax		(162	)		4,158			(1,393	)		36,228		(103.9	)%	(103.8	)%
Gain on sale of discontinued operations, net of tax		—			—			8,160			—		—		—
(Loss)/income from discontinued operations, net		(162	)		4,158			6,767			36,228		(103.9	)%	(81.3	)%
Net loss		(58,317	)		(360,054	)		(138,780	)		(365,566	)	—		—
Dividends and accretion on preferred stock		2,660			2,530			5,182			4,942		5.1	%	4.9	%
Net loss applicable to common shareholders	$	(60,977	)	$	(362,584	)	$	(143,962	)	$	(370,508	)	—		—
Per share data:
Loss from continued operations:
Basic	$	(1.24	)	$	(7.80	)	$	(3.11	)	$	(8.61	)
Diluted *	$	(1.24	)	$	(7.80	)	$	(3.11	)	$	(8.61	)
Income from discontinued operations:
Basic	$	—		$	0.09		$	0.14		$	0.78
Diluted *	$	—		$	0.09		$	0.14		$	0.78
Loss per common share:
Basic	$	(1.30	)	$	(7.77	)	$	(3.08	)	$	(7.94	)
Diluted *	$	(1.30	)	$	(7.77	)	$	(3.08	)	$	(7.94	)
Average number of common shares—basic		46,854			46,686			46,808			46,658
Average number of common shares—diluted		46,854			46,686			46,808			46,658

* No dilutive shares from stock options or restricted stock were included in the computation of diluted earnings per share for any period there was a loss.

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Consolidated Average Balances and Annualized Yields (unaudited)

(in thousands)

	For the Three-Months Ended June 30,
	2010						2009
	Average Balance		Income		Rate		Average Balance		Income		Rate
	(dollars in thousands)
Assets
Interest-bearing demand deposits in other financial institutions	$	1,224,965	$	860	0.28	%	$	285,215	$	173	0.24	%
Trading assets		4,810		60	5.00	%		175,502		2,049	4.68	%
Investment securities available for sale: (1)
Taxable		688,024		4,210	2.45	%		839,400		8,095	3.87	%
Non-taxable (3)		230,643		2,858	4.97	%		298,029		3,766	5.07	%
Total securities		923,477		7,128	3.09	%		1,312,931		13,910	4.25	%
Loans: (2)
Commercial		800,879		8,801	4.41	%		1,129,724		12,780	4.54	%
Real estate—multi-family & nonresidential		2,495,555		33,441	5.36	%		2,847,553		40,855	5.74	%
Real estate—residential 1 to 4 family		927,380		12,411	5.35	%		1,107,725		16,181	5.84	%
Consumer		573,363		7,108	4.97	%		643,824		8,130	5.06	%
Total loans		4,797,177		61,761	5.15	%		5,728,826		77,946	5.45	%
Total interest-earning assets		6,945,619		69,749	4.02	%		7,326,972		92,029	5.03	%
Market value adjustment		18,847						36,690
Total assets from discontinued operations		150,209						664,255
Non interest-earning assets		224,725						534,241
Total assets	$	7,339,400					$	8,562,158
Liabilities and shareholders’ equity
Interest-bearing deposits:
Savings and interest-bearing transaction accounts	$	1,623,483		1,699	0.42	%	$	2,038,367		4,129	0.81	%
Time certificates of deposit		2,754,845		15,797	2.30	%		2,328,610		17,367	2.99	%
Total interest-bearing deposits		4,378,328		17,496	1.60	%		4,366,977		21,496	1.97	%
Borrowed funds:
Securities sold under agreements to repurchase and Federal funds purchased		313,724		2,015	2.58	%		343,401		2,703	3.16	%
Other borrowings		1,125,699		10,612	3.78	%		1,375,059		15,799	4.61	%
Total borrowed funds		1,439,423		12,627	3.52	%		1,718,460		18,502	4.32	%
Total interest-bearing liabilities		5,817,751		30,123	2.08	%		6,085,437		39,998	2.63	%
Non interest-bearing demand deposits		1,011,853						944,486
Other liabilities		97,713						94,007
Total liabilities from discontinued operations		150,209						664,255
Shareholders’ equity		261,874						773,973
Total liabilities and shareholders’ equity	$	7,339,400					$	8,562,158
Net interest income/margin			$	39,626	2.29	%			$	52,031	2.85	%

(1) Average securities balances are based on amortized historical cost. The adjustments for the fair values are reported as “Market value adjustment.”

(2) Nonaccrual loans are included in loan balances. Interest income includes related fee income.

(3) Because of the Company’s tax position, the yield on tax exempt investments is not reported on a tax equivalent basis.

10

Consolidated Average Balances and Annualized Yields (unaudited)

(in thousands)

	For the Six-Months Ended June 30,
	2010						2009
	Average Balance		Income		Rate		Average Balance		Income		Rate
	(dollars in thousands)
Assets
Interest-bearing demand deposits in other financial institutions	$	978,047	$	1,701	0.35	%	$	429,861	$	650	0.30	%
Federal funds sold		—		—	—			663		1	0.30	%
Trading assets		4,910		124	5.09	%		190,003		4,687	4.97	%
Investment securities available for sale: (1)
Taxable		754,166		9,536	2.55	%		849,000		15,419	3.66	%
Non-taxable (3)		236,643		5,858	4.99	%		298,477		7,510	5.07	%
Total securities		995,719		15,518	3.14	%		1,337,480		27,616	4.16	%
Loans: (2)
Commercial		874,138		19,044	4.39	%		1,135,769		25,803	4.58	%
Real estate—multi-family & nonresidential		2,538,263		68,487	5.40	%		2,854,739		82,104	5.75	%
Real estate—residential 1 to 4 family		946,801		25,686	5.43	%		1,107,776		32,400	5.85	%
Consumer		585,843		14,393	4.95	%		644,814		16,145	5.05	%
Total loans		4,945,045		127,610	5.17	%		5,743,098		156,452	5.46	%
Total interest-earning assets		6,918,811		144,829	4.20	%		7,511,102		184,719	4.93	%
Market value adjustment		19,793						33,819
Total assets from discontinued operations		274,080						1,233,727
Non interest-earning assets		319,007						666,565
Total assets	$	7,531,691					$	9,445,213
Liabilities and shareholders’ equity
Interest-bearing deposits:
Savings and interest-bearing transaction accounts	$	1,601,278		3,570	0.45	%	$	2,033,760		9,379	0.93	%
Time certificates of deposit		2,758,409		31,718	2.32	%		2,582,293		36,405	2.84	%
Total interest-bearing deposits		4,359,687		35,288	1.63	%		4,616,053		45,784	2.00	%
Borrowed funds:
Securities sold under agreements to repurchase and Federal funds purchased		316,099		4,023	2.57	%		343,052		5,855	3.44	%
Other borrowings		1,145,655		21,626	3.81	%		1,447,752		33,248	4.63	%
Total borrowed funds		1,461,754		25,649	3.54	%		1,790,804		39,103	4.40	%
Total interest-bearing liabilities		5,821,441		60,937	2.11	%		6,406,857		84,887	2.67	%
Non interest-bearing demand deposits		1,022,676						923,599
Other liabilities		103,062						78,746
Total liabilities from discontinued operations		274,080						1,233,727
Shareholders’ equity		310,432						802,284
Total liabilities and shareholders’ equity	$	7,531,691					$	9,445,213
Net interest income/margin			$	83,892	2.45	%			$	99,832	2.68	%

(1) Average securities balances are based on amortized historical cost. The adjustments for the fair values are reported as “Market value adjustment.”

(2) Nonaccrual loans are included in loan balances. Interest income includes related fee income.

(3) Because of the Company’s tax position, the yield on tax exempt investments is not reported on a tax equivalent basis.

11

Key Financial Ratios (unaudited)

(in thousands, except per share amounts)

	For the Three-Months Ended June 30,						For the Six-Months Ended June 30,
	2010			2009			2010			2009
Financial Ratios:
Operating efficiency ratio from continuing operations		110.55	%		324.24	%		97.05	%		214.16	%
Capital Ratios, Consolidated:
Tier 1 capital to Average Tangible Assets ratio		3.7	%		5.6	%
Tier 1 capital to Risk Weighted Assets ratio		6.1	%		8.2	%
Total Tier 1 & Tier 2 Capital to Risk Weighted Assets ratio		8.9	%		11.1	%
Capital Ratios, PCBNA:
Tier 1 capital to Average Tangible Assets ratio		4.0	%		5.7	%
Tier 1 capital to Risk Weighted Assets ratio		6.7	%		8.3	%
Total Tier 1 & Tier 2 Capital to Risk Weighted Assets ratio		9.5	%		11.2	%
Credit Quality Ratios from continuing operations:
Allowance for loan losses	$	276,900		$	258,032
Net charge-offs	$	64,636		$	77,055		$	148,898		$	150,494
Annualized net charge-offs to average loans		5.42	%		5.40	%		6.08	%		5.29	%
Non-performing assets:
Nonaccrual loans	$	429,820		$	297,228
Loans past due 90 days or more on accrual status		3,401			1,904
Troubled debt restructured loans		115,364			24,917
Total non-performing loans		548,585			324,049
Other real estate owned and other foreclosed assets		55,873			24,298
Total non-performing assets	$	604,458		$	348,347
Non-performing loans to total loans		11.92	%		5.74	%
Non-performing assets to total assets		8.60	%		4.95	%
Allowance for loan losses to non-performing loans		50	%		80	%
Allowance for loan losses to total loans		6.01	%		4.57	%
Book value per common share:
Actual shares outstanding at end of period		46,895			46,721
Book value per common share	$	0.99		$	5.10
Tangible book value per common share	$	0.82		$	4.91

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Summarized Credit Quality Tables (unaudited)

(in thousands)

Non-Performing Assets:

	2010				2009
	June 30,		March 31,		December 31,		September 30,		June 30,		March 31,
Real estate
Residential—1 to 4 family	$	84,466	$	71,391	$	56,487	$	59,224	$	49,880	$	46,310
Commercial (1)		236,695		108,581		106,529		78,314		67,507		31,847
Construction		142,535		150,416		150,570		149,173		151,263		126,777
Home equity loans		10,864		9,846		4,448		4,284		4,671		5,979
Commercial loans		68,055		67,777		71,542		52,804		46,977		42,700
Consumer loans		3,204		7,790		8,008		1,736		2,300		3,326
Other loans		2,766		582		192		1,090		1,451		4,210
Total Non-performing Loans (2)		548,585		416,383		397,776		346,625		324,049		261,149
Other real estate owned		55,873		50,939		39,263		38,128		24,298		9,911
Total non-performing assets	$	604,458	$	467,322	$	437,039	$	384,753	$	348,347	$	271,060

Delinquencies (31 days or more past due):

	2010				2009
	June 30,		March 31,		December 31,		September 30,		June 30,		March 31,
Real estate
Residential—1 to 4 family	$	93,663	$	81,508	$	71,636	$	64,724	$	58,097	$	61,297
Commercial (1)		248,964		122,597		122,212		96,621		80,972		55,887
Construction		151,730		185,063		164,324		198,912		196,914		150,066
Home equity loans		12,234		11,413		10,941		4,911		8,181		7,150
Commercial loans		84,540		94,247		90,412		85,921		81,417		60,423
Consumer loans		5,691		11,346		13,100		7,611		6,491		4,956
Other loans		8,098		6,057		4,030		4,156		5,873		4,478
Total delinquent loans (2)	$	604,920	$	512,231	$	476,655	$	462,856	$	437,945	$	344,257

Net Charge-offs:

	2010				2009
	June 30,		March 31,		December 31,			September 30,			June 30,		March 31,
Real estate
Residential—1 to 4 family	$	8,785	$	6,628	$	5,345		$	6,410		$	15,717	$	5,139
Commercial (1)		13,778		16,982		2,543			212			5,143		4,663
Construction		5,950		22,098		12,664			13,123			32,457		35,993
Home equity loans		2,519		3,154		1,419			2,239			3,421		2,550
Commercial loans		27,960		29,010		10,825			9,656			15,342		18,599
Consumer loans		2,179		4,242		328			2,440			2,413		1,698
Other loans		3,465		2,148		101			1,025			2,562		4,797
Net charge-offs relating to continuing operations		64,636		84,262		33,225			35,105			77,055		73,439
Discontinued Operations		—		—		(1,271	)		(4,778	)		1,701		78,886
Total net charge-offs (2)	$	64,636	$	84,262	$	31,954		$	30,327		$	78,756	$	152,325

(1) Commercial real estate loans include multi-family residential real estate loans.

(2) Loan information from prior periods has been restated to reflect loan information by Call Code in order for the information to be comparable to the current period.

13