8-K

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (date of earliest event reported): October 17, 2002

Commission file number: 0-22732

PACIFIC CREST CAPITAL, INC.
(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation or organization)	95-4437818 (I.R.S. employer identification number)
30343 Canwood Street Agoura Hills, California (Address of principal executive offices)	91301 (Zip Code)

(818) 865-3300
(Registrant's telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Item 5. Other Events.

        On October 17, 2002, Pacific Crest Capital, Inc., a Delaware corporation (the "Registrant"), announced that its Board of Directors had approved a 2-for-1 split of its common stock, to be effected in the form of a 100 percent stock dividend. Shareholders will receive one additional share of common stock for each share that they hold on the record date of October 30, 2002. The Company's stock transfer agent, Computershare Investor Services, LLC, will distribute the additional shares on November 12, 2002, and the shares will begin trading on a post-split basis effective at the commencement of trading on November 13, 2002. As of September 30, 2002, the Company had 2,419,191 common shares outstanding. Upon completion of the stock split, this number will increase to approximately 4,838,000. The par value of the Company's common stock will remain unchanged at $0.01 per common share.

        The information contained in the Registrant's press release dated October 17, 2002 with respect to the 2-for-1 stock split is included in Exhibit 99.1 to this Form 8-K.

Item 7. Financial Statements and Exhibits.

(c)

Exhibits.

EXHIBIT NUMBER	DESCRIPTION
99.1	Press release of Registrant dated October 17, 2002.

2

SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PACIFIC CREST CAPITAL, INC. (Registrant)
Date: October 24, 2002	By:	/s/  ROBERT J. DENNEN Robert J. Dennen Senior Vice President and Chief Financial Officer

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Item 5. Other Events.
Item 7. Financial Statements and Exhibits.

SIGNATURES

EX-99.1

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EXHIBIT 99.1

Contact:	Gary Wehrle	Pacific Crest Capital, Inc.
	Chief Executive Officer	30343 Canwood Street
	818-865-3300	Agoura Hills, CA 91301

[PACIFIC CREST CAPITAL, INC. LOGO]

NEWS

PACIFIC CREST CAPITAL, INC. ANNOUNCES 44% INCREASE IN
THIRD QUARTER 2002 DILUTED EARNINGS PER SHARE, 2-FOR-1 STOCK SPLIT,
AND FOURTH QUARTER 2002 CASH DIVIDEND

        Agoura Hills, California, October 17, 2002...Pacific Crest Capital, Inc. (Nasdaq NM-PCCI) today reported that net income for the third quarter ended September 30, 2002 was $1,951,000, or $0.36 per share on a diluted basis, a 44.0% increase in diluted earnings per share over the $0.25 per share reported for the comparable quarter in 2001. For the nine-month period ended September 30, 2002, net income rose to $5,217,000, or $0.97 per share on a diluted basis, a 27.6% increase in diluted earning per share over the $0.76 per share reported for the comparable nine-month period in 2001. Diluted earnings per share for all periods presented have been adjusted to reflect the effect of the 2-for-1 stock split discussed below.

        Return on average common equity was 18.9% for the third quarter ended September 30, 2002 and 17.4% for the nine-month period ended September 30, 2002.

        The Company also announced that its Board of Directors has approved a 2-for-1 split of its outstanding shares of common stock, to be effected in the form of a 100 percent stock dividend. Shareholders will receive one additional share of common stock for each outstanding share that they hold at the close of business on the record date of October 30, 2002. The Company's stock transfer agent, Computershare Investor Services, LLC, will distribute the additional shares on November 12, 2002, and the shares will begin trading on a post-split basis effective at the commencement of trading on November 13, 2002. As of September 30, 2002, the Company had 2,419,191 common shares outstanding. Upon completion of the stock split, this number of common shares will increase to approximately 4,838,000. Gary Wehrle, Chairman of the Board and Chief Executive Officer, stated, "This stock split will increase the number of common shares outstanding and reduce the market price per share, thus making the common stock more attractive to a broader range of investors and thereby increasing the marketability of the Company's stock." Some commonly asked questions relating to the Company's stock split appear as an appendix to this press release.

        The Company's Board of Directors also declared a post-split cash dividend of $0.05 per common share for the fourth quarter of 2002. The dividend will be paid on December 13, 2002 to shareholders of record as of the close of business on November 29, 2002. The cash dividend will be based on outstanding shares, including shares distributed in the stock split. Because a shareholder will have twice the number of common shares after the stock split, the $0.05 per common share cash dividend equates to exactly the same cash payout to a shareholder as the $0.10 per common share cash dividend paid on the pre-split shares in the third quarter of 2002.

        Mr. Wehrle added, "The Board of Directors declared the stock split and cash dividend in view of the Company's strong earnings growth, the excellent 18.9% return on average common equity for the third quarter of 2002, the Company's strong asset quality and capital ratios, and the appreciation in the common stock trading price."

Page 1 of 10

        Discussing operating performance for the third quarter of 2002, Robert Dennen, Chief Financial Officer, stated, "Net interest income rose to $6,204,000 in the third quarter of 2002, an increase of $512,000 over the immediately preceding quarter and an increase of $1,433,000 over the comparable quarter in 2001. The substantial improvement in net interest income is primarily attributable to the ongoing downward repricing of interest-bearing liabilities (deposits and borrowings) associated with the current low interest rate environment." He added, "The Company anticipates an increase in net interest income for the fourth quarter of 2002 over the third quarter of 2002 due to the continuing downward repricing of liabilities." Net interest margin for the third quarter ended September 30, 2002 was 4.46% compared to 4.22% for the immediately preceding quarter and 3.48% for the third quarter of 2001.

        Loan originations were $21.4 million for the third quarter of 2002, compared to $35.9 million for the third quarter of 2001. Total loans outstanding, net of deferred loan fees, declined by $6.4 million, or 1.4%, in the third quarter of 2002, due to loan payoffs and collections exceeding loan originations.

        Discussing non-interest income, Mr. Dennen commented, "The third quarter of 2002 was a good quarter for non-interest income, as total non-interest income rose to $1,226,000, excluding the write-down on a corporate debt security discussed below, a 129% increase over the $536,000 reported for the third quarter of 2001." He added, "The Company's SBA 504 lending program functions as a mortgage banking program. SBA 504 loan sales and brokered loans originated in the Company's SBA unit contributed $704,000 to non-interest income during the quarter."

        The Company reported that salaries and employee benefits increased $363,000 during the third quarter of 2002 over the immediately preceding quarter, primarily as a result of higher sales commissions related to the increased level of fee income generated and higher staff bonus accruals that are partially tied to the Company's return on equity performance.

        In reviewing the third quarter operating results, Mr. Dennen added, "There were two items recorded in the quarter that the Company views as non-recurring. First, a corporate debt security was written down to market value based on a variety of factors, including a recent rating agency downgrade of the debt rating. The security write-down was recorded as a loss under 'Gain (loss) on sale of investment securities' and amounted to $682,000 on a pre-tax basis, or $395,000 after tax. Second, a change during the third quarter of 2002 in California State tax law resulted in a one-time reduction of $220,000 in the Company's income tax provision, which was recorded in the third quarter. Taken together, these two non-recurring items reduced net income for the third quarter by $175,000, or $0.03 per share on a post-split diluted basis."

        The Company reported record loan originations of $13.6 million in its Small Business Administration ("SBA") lending program during the third quarter of 2002, which consisted of $10.7 million under the SBA 7(a) loan program and $2.9 million under the SBA 504 loan program. In addition to the $13.6 million in loan originations, the SBA Department brokered $7.0 million in loans to other lenders during the third quarter of 2002, for which the Company earned fee income. Tony Parker, Senior Vice President and SBA Department Manager, commented that, "The SBA unit had an outstanding quarter for loan production. We are also very pleased that during the quarter, the Company was awarded "Preferred Lender" status in the San Francisco SBA District, which includes 14 Northern California counties."

        In reviewing the SBA Department's strategic direction, Gonzalo Fernandez, Executive Vice President, stated, "The recent announcement by the SBA to limit the size of SBA 7(a) loans to $500,000 per loan should not significantly impact the future growth of the Company's SBA 7(a) loan program because the overwhelming majority of loans originated by the Company under this program are below that size. We are hopeful, however, that the outlook for federal funding of the SBA 7(a) loan program improves over the next six months, so that maximum guarantees under the 7(a) program

Page 2 of 10

can be increased, as this is a vital program for small business borrowers across the entire United States."

        The Company also reported that at September 30, 2002, there were no assets classified as "non-performing". During the third quarter of 2002, the Company sold a delinquent loan and recorded a $162,000 charge-off. The provision for loan losses was $175,000 for the third quarter of 2002, and the allowance for loan losses was 1.86% at September 30, 2002, compared to 1.82% at the end of the preceding quarter. On a year-to-date basis for 2002, loan recoveries have exceeded loan charge-offs by $212,000.

        In reviewing new products, Lyle Lodwick, Executive Vice President, stated, "During the third quarter 2002, we introduced our new Online Banking System for businesses and consumers. Every effort was made to make the system the most advanced available and highly user-friendly. In the fourth quarter of 2002, we are adding an Online Bill Pay feature. These new products, coupled with our earlier introduction of new consumer and business checking account programs, will enable the Bank to more fully meet the needs of professionals and small businesses."

        Pacific Crest Capital, Inc. is a bank holding Company that conducts business through its wholly owned subsidiary, Pacific Crest Bank ("Bank"). Since its establishment in 1974, Pacific Crest Bank has operated as a specialized business bank providing exceptional service to California's small businesses, entrepreneurs, and investors. Products offered include customized loans on income producing real estate, business loans under the U.S. Small Business Administration 7(a) and 504 loan programs, lines of credit and term loans to businesses and professionals, and specialized FDIC-insured savings and checking account programs. The Bank is an SBA "Preferred Lender" in the entire Southern California region from Santa Barbara to San Diego, in the San Francisco Bay area, and in the entire state of Oregon. Pacific Crest Bank is headquartered in Agoura Hills, California, operates three California full-service branches located in Beverly Hills, Encino, and San Diego and provides loan production services primarily throughout California and Oregon.

        Previously released Company press releases, reports filed with the Securities and Exchange Commission, and other information is available on the Company's Web page on the Internet at http://www.paccrest.com.

        Certain matters discussed in this news release constitute forward-looking statements under Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These forward-looking statements relate to, among other things, the Company's financial results for 2002, the effects of the stock split, the marketability of the Company's common stock, and the Company's financial position. Forward-looking statements are subject to certain risks and uncertainties that could cause the actual results, performance, or achievements to differ materially from those expressed, suggested or implied by the forward-looking statements. These risks include, but are not limited to, general economic conditions nationally and in California, unanticipated credit losses in the Company's loan portfolio, rapid changes in interest rates, possible future terrorist acts, and other risks discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2001, which has been filed with the Securities and Exchange Commission.

# # # #

Page 3 of 10

PACIFIC CREST CAPITAL, INC.
SELECTED FINANCIAL DATA
(Unaudited)

					Three Months Ended September 30,								Nine Months Ended September 30,
(Dollars in thousands, except per share data)					2002			2001			% Change		2002			2001			% Change
Earnings and Dividends:
	Net income				$	1,951		$	1,320		47.80	%	$	5,217		$	4,019		29.81	%
	Diluted earnings per common share(1)					0.36			0.25		44.00	%		0.97			0.76		27.63	%
	Cash dividends per common share(1)					0.05			0.04		25.00	%		0.13			0.12		8.33	%
Performance Ratios:
	Return on average equity(2)(3)					18.94	%		14.29	%	—			17.45	%		14.82	%	—
	Return on average assets(2)					1.39	%		0.96	%	—			1.26	%		0.93	%	—
	Net interest rate spread(4)					4.20	%		3.11	%	—			3.92	%		2.85	%	—
	Net interest margin(5)					4.46	%		3.48	%	—			4.20	%		3.23	%	—
	Operating expense to average assets(2)(6)					2.58	%		2.06	%	—			2.41	%		1.90	%	—
	Efficiency ratio(7)					48.69	%		54.76	%	—			50.49	%		53.54	%	—
Average Balances:
	Average shareholders' equity				$	41,579		$	36,840		12.86	%	$	39,986		$	35,743		11.87	%
	Average realized shareholders' equity(3)					41,198			36,956		11.48	%		39,853			36,161		10.21	%
	Average total assets					560,407			552,589		1.41	%		553,233			573,432		(3.52	%)
Loan Activity:
	Loan originations				$	21,383		$	35,891		(40.42	%)	$	78,334		$	71,143		10.11	%
	Loan sales—SBA					2,965			2,249		31.84	%		6,356			10,019		(36.56	%)
Allowance for Loan Losses Activity:
	Allowance at beginning of period				$	8,529		$	7,414				$	7,946		$	7,240
		Provision for loan losses				175			150					425			230
		Net (charge-offs) recoveries:
			Charge-offs			(166	)		(25	)				(166	)		(59	)
			Recoveries			45			20					378			148
				Total net (charge-offs) recoveries		(121	)		(5	)				212			89
	Allowance at end of period				$	8,583		$	7,559				$	8,583		$	7,559
	Annualized net (charge-offs) recoveries to average loans					(0.10	%)		(0.00	%)				0.06	%		0.03	%

		September 30, 2002		June 30, 2002		% Change		September 30, 2002		September 30, 2001		% Change
Balance Sheet Data:
	Investment securities, at market	$	85,225	$	71,464	19.26	%	$	85,225	$	65,767	29.59	%
	Loans, net of deferred loan fees		462,195		468,615	(1.37	%)		462,195		424,758	8.81	%
	Assets		560,802		556,180	0.83	%		560,802		531,162	5.58	%
	Deposits		369,814		376,969	(1.90	%)		369,814		426,549	(13.30	%)
	Borrowings		138,250		129,750	6.55	%		138,250		57,250	141.48	%
	Shareholders' equity		42,893		41,256	3.97	%		42,893		37,744	13.64	%

(1)

Retroactively adjusted to reflect the 2-for-1 stock split approved October 16, 2002.

(2)

Annualized calculation.

(3)

Calculation excludes average accumulated other comprehensive income (loss) from average shareholders' equity.

(4)

Net interest rate spread is defined as the yield earned on average total interest-earning assets less the rate paid on average total interest-bearing liabilities.

(5)

Net interest margin is defined as annualized net interest income divided by average total interest-earning assets.

(6)

Operating expense is defined as total non-interest expense less other real estate owned and collection expenses.

(7)

Efficiency ratio is defined as operating expense divided by the sum of net interest income, loan prepayment and late fee income, gain on sale of SBA 7(a) loans, gain on sale of SBA 504 loans and broker fee income, and other income.

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PACIFIC CREST CAPITAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

				Three Months Ended September 30,					Nine Months Ended September 30,
(Dollars and shares in thousands, except per share data)
				2002			2001		2002			2001
Interest income:
	Loans			$	9,438		$	9,428	$	28,321		$	28,194
	Securities purchased under resale agreements				30			135		151			352
	Investment securities available for sale:
		U.S. agency callable bonds			—			842		—			4,853
		U.S. agency mortgage-backed securities			977			856		2,689			2,181
		Corporate debt securities			39			62		117			217
			Total interest on investment securities		1,016			1,760		2,806			7,251
			Total interest income		10,484			11,323		31,278			35,797
Interest expense:
	Checking accounts				58			107		182			327
	Savings accounts				644			1,182		2,014			4,039
	Certificates of deposit				2,085			3,960		7,756			13,692
		Total interest on deposits			2,787			5,249		9,952			18,058
	Securities sold under repurchase agreements				—			29		—			211
	State of California borrowings				—			193		—			609
	FHLB advances				611			—		1,323			—
	Term borrowings				478			677		1,662			2,009
	Trust preferred securities				404			404		1,213			1,213
		Total interest on borrowings			1,493			1,303		4,198			4,042
		Total interest expense			4,280			6,552		14,150			22,100
Net interest income					6,204			4,771		17,128			13,697
Provision for loan losses					175			150		425			230
		Net interest income after provision for loan losses			6,029			4,621		16,703			13,467
Non-interest income:
	Loan prepayment and late fee income				227			47		584			257
	Gain (loss) on sale of SBA 7(a) loans				25			95		221			405
	Gain on sale of SBA 504 loans and broker fee income				704			69		1,136			298
	Gain (loss) on sale of investment securities				(682	)		106		(682	)		95
	Other income				270			219		776			579
		Total non-interest income			544			536		2,035			1,634
Non-interest expense:
	Salaries and employee benefits				2,452			1,718		6,722			4,973
	Net occupancy expenses				466			397		1,387			1,199
	Communication and data processing				261			247		775			762
	Legal, audit, and other professional fees				158			261		337			507
	Other real estate owned and collection expenses				4			—		26			—
	Other expenses				281			225		798			717
		Total non-interest expense			3,622			2,848		10,045			8,158
Income before income taxes					2,951			2,309		8,693			6,943
Income tax provision					1,000			989		3,476			2,924
		Net income		$	1,951		$	1,320	$	5,217		$	4,019
Earnings per share (adjusted for 2-for-1 stock split):
	Basic			$	0.40		$	0.27	$	1.07		$	0.81
	Diluted			$	0.36		$	0.25	$	0.97		$	0.76
Weighted average shares (adjusted for 2-for-1 stock split):
	Basic				4,863			4,927		4,860			4,965
	Diluted				5,383			5,315		5,352			5,317

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PACIFIC CREST CAPITAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

				Three Months Ended
(Dollars and shares in thousands, except per share data)				September 30, 2002			June 30, 2002		March 31, 2002			December 31, 2001			September 30, 2001
Interest income:
	Loans			$	9,438		$	9,380	$	9,503		$	9,897		$	9,428
	Securities purchased under resale agreements				30			18		103			104			135
	Investment securities available for sale:
		U.S. agency callable bonds			—			—		—			—			842
		U.S. agency mortgage-backed securities			977			993		719			807			856
		Corporate debt securities			39			39		39			48			62
			Total interest on investment securities		1,016			1,032		758			855			1,760
			Total interest income		10,484			10,430		10,364			10,856			11,323
Interest expense:
	Checking accounts				58			61		63			76			107
	Savings accounts				644			669		701			814			1,182
	Certificates of deposit				2,085			2,681		2,990			3,302			3,960
		Total interest on deposits			2,787			3,411		3,754			4,192			5,249
	Securities sold under repurchase agreements				—			—		—			5			29
	State of California borrowings				—			—		—			—			193
	FHLB advances				611			401		311			166			—
	Term borrowings				478			521		663			677			677
	Trust preferred securities				404			405		404			404			404
		Total interest on borrowings			1,493			1,327		1,378			1,252			1,303
		Total interest expense			4,280			4,738		5,132			5,444			6,552
Net interest income					6,204			5,692		5,232			5,412			4,771
Provision for loan losses					175			150		100			430			150
		Net interest income after provision for loan losses			6,029			5,542		5,132			4,982			4,621
Non-interest income:
	Loan prepayment and late fee income				227			151		206			88			47
	Gain (loss) on sale of SBA 7(a) loans				25			196		—			(10	)		95
	Gain on sale of SBA 504 loans and broker fee income				704			300		132			205			69
	Gain (loss) on sale of investment securities				(682	)		—		—			—			106
	Other income				270			220		286			614			219
		Total non-interest income			544			867		624			897			536
Non-interest expense:
	Salaries and employee benefits				2,452			2,089		2,181			2,179			1,718
	Net occupancy expenses				466			516		405			466			397
	Communication and data processing				261			268		246			295			247
	Legal, audit, and other professional fees				158			180		(1	)		479			261
	Other real estate owned and collection expenses				4			22		—			—			—
	Other expenses				281			272		245			284			225
		Total non-interest expense			3,622			3,347		3,076			3,703			2,848
Income before income taxes					2,951			3,062		2,680			2,176			2,309
Income tax provision					1,000			1,319		1,157			810			989
		Net income		$	1,951		$	1,743	$	1,523		$	1,366		$	1,320
Earnings per share (adjusted for 2-for-1 stock split):
	Basic			$	0.40		$	0.36	$	0.31		$	0.28		$	0.27
	Diluted			$	0.36		$	0.33	$	0.29		$	0.26		$	0.25
Weighted average shares (adjusted for 2-for-1 stock split):
	Basic				4,863			4,867		4,849			4,863			4,927
	Diluted				5,383			5,361		5,296			5,251			5,315

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PACIFIC CREST CAPITAL, INC.
CONSOLIDATED BALANCE SHEETS

(In thousands)			September 30, 2002			June 30, 2002			March 31, 2002			December 31, 2001			September 30, 2001
			(Unaudited)			(Unaudited)			(Unaudited)			(Audited)			(Unaudited)
Assets
	Cash		$	3,170		$	7,367		$	6,920		$	2,508		$	3,298
	Securities purchased under resale agreements			3,220			3,456			4,162			16,174			33,312
		Cash and cash equivalents		6,390			10,823			11,082			18,682			36,610
	U.S. agency mortgage-backed securities			82,217			68,173			74,131			55,537			62,337
	Corporate debt securities			3,008			3,291			3,379			3,415			3,430
		Total investment securities available for sale		85,225			71,464			77,510			58,952			65,767
	Commercial real estate loans			418,829			434,327			422,326			430,420			400,275
	SBA business loans held for investment			14,248			11,401			10,041			11,369			10,038
	SBA business loans held for sale			21,955			14,286			14,148			12,797			10,318
	Other loans			6,935			8,580			7,830			7,393			4,114
	Deferred loan costs (fees)			228			21			7			(4	)		13
		Total loans, net of deferred loan fees		462,195			468,615			454,352			461,975			424,758
	Allowance for loan losses			(8,583	)		(8,529	)		(8,376	)		(7,946	)		(7,559	)
		Total loans, net		453,612			460,086			445,976			454,029			417,199
	Investment in FHLB stock			6,025			4,125			2,022			2,000			832
	Deferred income taxes, net			4,091			4,045			5,291			5,203			4,917
	Accrued interest receivable			2,421			2,632			2,689			2,532			2,573
	Prepaid expenses and other assets			1,861			1,768			2,174			2,087			2,013
	Premises and equipment			1,177			1,237			1,260			1,273			1,251
		Total other assets		15,575			13,807			13,436			13,095			11,586
		Total assets	$	560,802		$	556,180		$	548,004		$	544,758		$	531,162
Liabilities
	Checking accounts		$	16,063		$	15,523		$	18,836		$	14,912		$	17,296
	Savings accounts			132,589			133,407			133,509			136,145			143,551
	Certificates of deposit			221,162			228,039			252,092			250,466			265,702
		Total deposits		369,814			376,969			404,437			401,523			426,549
	FHLB advances			111,000			82,500			40,000			40,000			—
	Term borrowings			10,000			30,000			40,000			40,000			40,000
	Trust preferred securities			17,250			17,250			17,250			17,250			17,250
		Total borrowings		138,250			129,750			97,250			97,250			57,250
	Accrued interest payable and other liabilities			9,845			8,205			7,223			8,010			9,619
		Total liabilities		517,909			514,924			508,910			506,783			493,418
Shareholders' Equity
	Common stock, at par(1)			60			60			60			60			60
	Additional paid-in capital(1)			27,584			27,592			27,682			27,750			27,748
	Beginning retained earnings			19,140			19,140			19,140			14,542			14,542
	Year-to-date earnings			5,217			3,266			1,523			5,385			4,019
	Year-to-date dividends			(632	)		(389	)		(194	)		(787	)		(594	)
	Accumulated other comprehensive income (loss)			849			296			(351	)		(198	)		164
	Common stock in treasury, at cost			(9,325	)		(8,709	)		(8,766	)		(8,777	)		(8,195	)
		Total shareholders' equity		42,893			41,256			39,094			37,975			37,744
		Total liabilities and shareholders' equity	$	560,802		$	556,180		$	548,004		$	544,758		$	531,162

(1)

Retroactively adjusted to reflect the 2-for-1 stock split approved October 16, 2002.

Page 7 of 10

PACIFIC CREST CAPITAL, INC.
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Unaudited)

				Three Months Ended
(Dollars in thousands)				September 30, 2002			June 30, 2002			March 31, 2002			December 31, 2001			September 30, 2001
Average Interest-Earning Assets:
	Loans, net of deferred loan fees			$	466,822		$	461,725		$	458,994		$	445,169		$	413,909
	Securities purchased under resale agreements				7,324			3,897			25,620			20,353			15,719
	Investment securities available for sale:
		U.S. agency callable bonds			—			—			—			—			51,714
		U.S. agency mortgage-backed securities			73,450			70,687			55,187			58,861			58,951
		Corporate debt securities			4,127			4,131			4,126			4,122			4,119
			Total investment securities		77,577			74,818			59,313			62,983			114,784
			Total interest-earning assets	$	551,723		$	540,440		$	543,927		$	528,505		$	544,412
Average Interest-Bearing Liabilities:
	Checking accounts			$	15,874		$	15,861		$	14,831		$	16,779		$	15,276
	Savings accounts				131,514			133,524			135,381			140,005			141,308
	Certificates of deposit				228,005			243,979			256,477			253,219			268,154
		Total deposits			375,393			393,364			406,689			410,003			424,738
	Securities sold under repurchase agreements				—			—			—			826			2,918
	State of California borrowings				—			—			—			—			20,946
	FHLB advances				87,835			58,332			40,000			20,870			—
	Term borrowings				28,261			31,099			40,000			40,000			40,000
	Trust preferred securities				17,250			17,250			17,250			17,250			17,250
		Total borrowings			133,346			106,681			97,250			78,946			81,114
		Total interest-bearing liabilities		$	508,739		$	500,045		$	503,939		$	488,949		$	505,852
Yields on Average Interest-Earning Assets:
	Loans, net of deferred loan fees				8.02	%		8.15	%		8.40	%		8.82	%		9.04	%
	Securities purchased under resale agreements				1.63	%		1.85	%		1.63	%		2.03	%		3.41	%
	Investment securities available for sale:
		U.S. agency callable bonds			—			—			—			—			6.51	%
		U.S. agency mortgage-backed securities			5.32	%		5.62	%		5.21	%		5.48	%		5.81	%
		Corporate debt securities			3.78	%		3.78	%		3.78	%		4.66	%		6.02	%
			Total investment securities		5.24	%		5.52	%		5.11	%		5.43	%		6.13	%
			Total interest-earning assets		7.54	%		7.74	%		7.73	%		8.15	%		8.25	%
Rates on Average Interest-Bearing Liabilities:
	Checking accounts				1.45	%		1.54	%		1.72	%		1.80	%		2.78	%
	Savings accounts				1.94	%		2.01	%		2.10	%		2.31	%		3.32	%
	Certificates of deposit				3.63	%		4.41	%		4.73	%		5.17	%		5.86	%
		Total deposits			2.95	%		3.48	%		3.74	%		4.06	%		4.90	%
	Securities sold under repurchase agreements				—			—			—			2.40	%		3.94	%
	State of California borrowings				—			—			—			—			3.61	%
	FHLB advances				2.76	%		2.76	%		3.15	%		3.18	%		—
	Term borrowings				6.62	%		6.63	%		6.63	%		6.62	%		6.62	%
	Trust preferred securities				9.37	%		9.39	%		9.37	%		9.37	%		9.37	%
		Total borrowings			4.43	%		4.96	%		5.68	%		6.27	%		6.33	%
		Total interest-bearing liabilities			3.34	%		3.80	%		4.13	%		4.42	%		5.14	%
Net Interest Rate Spread					4.20	%		3.94	%		3.60	%		3.73	%		3.11	%
Net Interest Margin					4.46	%		4.22	%		3.90	%		4.06	%		3.48	%

Page 8 of 10

PACIFIC CREST CAPITAL, INC.
SELECTED FINANCIAL DATA
(Unaudited)

						At or For the Three Months Ended
(Dollars in thousands, except per share data)						September 30, 2002			June 30, 2002			March 31, 2002			December 31, 2001			September 30, 2001
Loan Originations:
	Commercial real estate loans					$	7,744		$	28,813		$	20,693		$	48,048		$	24,938
	Commercial business loans(1)						—			—			—			3,150			3,075
	SBA business loans:
		7(a) loans—guaranteed portion					8,080			3,028			1,457			2,726			4,316
		7(a) loans—unguaranteed portion					2,642			965			404			880			1,382
			Total 7(a) loans				10,722			3,993			1,861			3,606			5,698
		504 first lien loans					1,642			902			—			1,870			797
		504 second lien loans					1,275			689			—			1,429			1,383
			Total 504 loans				2,917			1,591			—			3,299			2,180
				Total SBA business loans			13,639			5,584			1,861			6,905			7,878
					Total loan originations	$	21,383		$	34,397		$	22,554		$	58,103		$	35,891
Loan Sales:
	SBA guaranteed 7(a) loans					$	320		$	2,609		$	—		$	—		$	1,950
	SBA 504 first lien loans						2,645			782			—			1,872			299
		Total SBA loan sales				$	2,965		$	3,391		$	—		$	1,872		$	2,249
Performance Ratios:
	Return on average equity(2)(3)						18.94	%		17.48	%		15.85	%		14.56	%		14.29	%
	Return on average assets(2)						1.39	%		1.27	%		1.10	%		1.02	%		0.96	%
	Net interest rate spread(4)						4.20	%		3.94	%		3.60	%		3.73	%		3.11	%
	Net interest margin(5)						4.46	%		4.22	%		3.90	%		4.06	%		3.48	%
	Operating expense to average assets(2)(6)						2.58	%		2.43	%		2.23	%		2.76	%		2.06	%
	Efficiency ratio(7)						48.69	%		50.69	%		52.53	%		58.69	%		54.76	%
Average Balances:
	Average shareholders' equity					$	41,579		$	39,946		$	38,429		$	37,743		$	36,840
	Average realized shareholders' equity(3)						41,198			39,889			38,442			37,540			36,956
	Average total assets						560,407			547,667			551,527			536,363			552,589
Per Share Data:
	Cash dividends per common share(8)					$	0.05		$	0.04		$	0.04		$	0.04		$	0.04
	Tangible book value per common share:
		Pre-2-for-1 stock split basis					17.73			16.94			16.12			15.69			15.41
		Post-2-for-1 stock split basis(8)					8.87			8.47			8.06			7.85			7.70
Common Stock Analysis(8):
	Common stock issued at quarter-end						5,973,060			5,973,060			5,973,060			5,973,060			5,973,060
	Treasury stock held at quarter-end						(1,134,678	)		(1,101,528	)		(1,122,594	)		(1,132,762	)		(1,074,122	)
		Common stock outstanding at quarter-end					4,838,382			4,871,532			4,850,466			4,840,298			4,898,938

(1)

Primarily represents unsecured loans to financial institutions.

(2)

Annualized calculation.

(3)

Calculation excludes average accumulated other comprehensive income (loss) from average shareholders' equity.

(4)

Net interest rate spread is defined as the yield earned on average total interest-earning assets less the rate paid on average total interest-bearing liabilities.

(5)

Net interest margin is defined as annualized net interest income divided by average total interest-earning assets.

(6)

Operating expense is defined as total non-interest expense less other real estate owned and collection expenses.

(7)

Efficiency ratio is defined as operating expense divided by the sum of net interest income, loan prepayment and late fee income, gain on sale of SBA 7(a) loans, gain on sale of SBA 504 loans and broker fee income, and other income.

(8)

Retroactively adjusted to reflect the 2-for-1 stock split approved October 16, 2002.

Page 9 of 10

PACIFIC CREST CAPITAL, INC.
SELECTED FINANCIAL DATA
(Unaudited)

					At or For the Three Months Ended
(Dollars in thousands)					September 30, 2002			June 30, 2002			March 31, 2002			December 31, 2001			September 30, 2001
Loans Held for Sale:
	SBA guaranteed 7(a) loans				$	20,172		$	12,701		$	12,672		$	11,308		$	8,823
	SBA 504 first lien loans					1,783			1,585			1,476			1,489			1,495
		Total loans held for sale			$	21,955		$	14,286		$	14,148		$	12,797		$	10,318
Non-Performing Assets:
	Non-accrual loans				$	—		$	—		$	153		$	—		$	—
	Other real estate owned (OREO)					—			—			—			—			—
		Total non-performing assets			$	—		$	—		$	153		$	—		$	—
	Non-accrual loans to total loans					0.00	%		0.00	%		0.03	%		0.00	%		0.00	%
	Total non-performing assets to total assets					0.00	%		0.00	%		0.03	%		0.00	%		0.00	%
Allowance for Loan Losses Activity:
	Allowance at beginning of quarter				$	8,529		$	8,376		$	7,946		$	7,559		$	7,414
		Provision for loan losses				175			150			100			430			150
		Net (charge-offs) recoveries:
			Charge-offs			(166	)		—			—			(52	)		(25	)
			Recoveries			45			3			330			9			20
				Total net (charge-offs) recoveries		(121	)		3			330			(43	)		(5	)
	Allowance at end of quarter				$	8,583		$	8,529		$	8,376		$	7,946		$	7,559
Asset Quality Ratios:
	Allowance for loan losses to total loans					1.86	%		1.82	%		1.84	%		1.72	%		1.78	%
	Allowance for loan losses to non-accrual loans					NM			NM			5474.51	%		NM			NM
	Annualized net (charge-offs) recoveries to average loans					(0.10	%)		0.00	%		0.29	%		(0.04	%)		0.00	%
Regulatory Capital Ratios:
	Pacific Crest Capital, Inc.
		Leverage ratio				10.01	%		9.97	%		9.53	%		9.49	%		9.06	%
		Tier 1 risk-based capital ratio				12.59	%		11.90	%		11.78	%		11.11	%		11.77	%
		Total risk-based capital ratio				14.57	%		13.94	%		13.96	%		13.36	%		14.14	%
	Pacific Crest Bank
		Leverage ratio				9.86	%		9.82	%		9.52	%		9.61	%		9.17	%
		Tier 1 risk-based capital ratio				12.37	%		11.69	%		11.75	%		11.22	%		11.89	%
		Total risk-based capital ratio				13.63	%		12.94	%		13.00	%		12.47	%		13.15	%
Regulatory Capital Data:
	Pacific Crest Capital, Inc.
		Tier 1 capital			$	56,030		$	54,584		$	52,568		$	50,887		$	50,076
		Total risk-based capital				64,866			63,950			62,281			61,165			60,145
		Average total assets				559,997			547,581			551,515			536,150			552,675
		Risk-weighted assets				445,096			458,786			446,093			457,958			425,425
	Pacific Crest Bank
		Tier 1 capital			$	54,826		$	53,389		$	52,154		$	51,165		$	50,340
		Total risk-based capital				60,405			59,135			57,739			56,895			55,659
		Average total assets				556,005			543,465			547,735			532,367			548,779
		Risk-weighted assets				443,254			456,889			443,988			456,171			423,296

Page 10 of 10

PACIFIC CREST CAPITAL, INC.
APPENDIX
THIRD QUARTER 2002 PRESS RELEASE
2-FOR-1 COMMON STOCK SPLIT
DISTRIBUTION DATE NOVEMBER 12, 2002

Commonly Asked Questions and Answers

1.    How does a 2-for-1 stock split actually work?

A 2-for-1 stock split means that the investor will have twice as many shares as he had before, at approximately half the market price per share prior to the split.

Here is an example:

As of the Record Date of the stock split (October 30, 2002), if an investor owns 100 shares of the Company's common stock and the market price is $30.00 per share, the total market value of the common stock would be $3,000.00. After the stock split, the investor now owns 200 shares of the Company's common stock, but the market price would be approximately $15.00 per share. The investor's total stock value remains unchanged at $3,000.00, until the stock price moves up or down.

2.    Why did you split the stock now?

The decision to split the stock was made by the Company's Board of Directors, based on a desire to make the Company's stock more attractive to a broader range of investors, and thereby increase the marketability and liquidity of the stock.

3.    How many times have you split the stock?

This is the first time that the Company has split the stock since Pacific Crest became a public company in December of 1993.

4.    What are the key dates of the stock split?

•

The Record Date (October 30, 2002)—determines which shareholders are entitled to receive additional shares due to the stock split. If you own common shares at the close of business on the Record Date, your shares will be subject to the stock split;



•

The Mailing or Distribution Date (November 12, 2002)—is the date when holders of record or brokers are mailed notification of the shares subject to split; and



•

The Ex-split Date (November 13, 2002)—is the date when PCCI common shares will trade on Nasdaq at the new split-adjusted price.

5.    What if stock ownership is maintained at a brokerage house?

If your stock of the Company is maintained at a brokerage house, such as Charles Schwab or Merrill Lynch, the new shares will automatically be posted (transferred) to your account.

6.    Will stock ownership be evidenced by a stock certificate?

If your stock is in certificate form, and not maintained at a brokerage house, your new shares will be delivered to you through a program called Direct Registration.

Page 1 of 3

7.    What is Direct Registration?

Pacific Crest has elected Direct Registration as a means of recording stock ownership for people who do not maintain their shares at a brokerage house.

Direct Registration is stock ownership without a paper stock certificate. Your shares are held in book-entry form with the Company's transfer agent. The Company's stock transfer agent, Computershare, keeps a record of your shares of ownership when you transfer or sell shares. All transactions take place electronically between Computershare and a designated broker.

8.    Why is the Company using Direct Registration?

•

It eliminates your risk of loss, theft, or destruction of a paper certificate, plus the time and expense to replace a paper certificate.



•

It eliminates your cost of maintaining a secure place to keep your certificates, such as a safe deposit box.



•

It makes future stock transactions faster and easier for you.



•

Direct Registration is becoming a global standard of stock ownership.

9.    Without certificates, how will I know how many shares I own?

The first time you have shares recorded under Direct Registration, you will receive an initial Direct Registration Transaction Advice, reporting the number of the Company's shares you acquired in the stock split. These shares will be held in book-entry form in your Direct Registration account with Computershare. After that, you will receive a Direct Registration Transaction Advice within two business days of any movement of shares into or out of your Direct Registration account. In addition, the Company has elected to send each shareholder holding shares under the Direct Registration program a statement at the end of the year listing their ownership in the Company under this program. All statements will be sent to you based on the address Computershare has on file for you.

10.  What about stock certificates I already hold?

Your existing common stock certificates (common stock you hold) are still valid and should not be destroyed.

If you wish, you may convert all or some of your certified (certificated) shares in the Company to Direct Registration. Information on this program will be mailed to you on November 12, 2002.

11.  How do I contact Computershare, the Stock Transfer Agent?

If you have any questions about:

•

Direct Registration

•

Change of address

•

Lost or stolen stock certificates

•

Transfer of stock to another person

•

Additional administrative services

Page 2 of 3

You can reach Computershare Investor Services, LLC (the Company's stock transfer agent) by:

E-mail:	web.queries@computershare.com
Phone:	312-588-4155
Fax:	312-601-4332
Website:	www.computershare.com
Address:	Computershare Investor Services, LLC 2 North LaSalle Street Chicago, IL 60602

12.  When will the Transaction Advices under the Direct Registration program be mailed?

November 12, 2002. Our stock transfer agent, Computershare Investor Services, LLC, will mail written notice Transaction Advices to shareholders of record indicating their revised shareholdings on November 12, 2002.

13.  Where will the Transaction Advice be mailed?

If you currently hold stock in the form of a stock certificate in your name, and not at a brokerage house, your certificate evidencing the shares you receive in the stock split (transaction advice) will be mailed to the address Computershare Investor Services, LLC, our stock transfer agent, has on file for you. To verify your address, you can contact Computershare Investor Services directly at 312-588-4155 or via e-mail at web.queries@computershare.com.

If your stock is currently held in a brokerage account, evidence of ownership of your stock will be automatically transferred directly to your brokerage account. You should see your new shares on your next brokerage statement after the stock split.

14.  What happens if I sell my shares before the Record Date?

If you sell your shares before the Record Date, you will not receive the shares distributed in the split. Your trade will be settled on a pre-split basis.

15.  Will I be taxed on the split shares?

For federal income tax purposes, the receipt of additional shares of common stock as a result of the stock split should not result in taxable income. However, we recommend that you consult with your own tax advisor for your individual tax circumstances. Some stockholders may also be subject to the laws of a foreign jurisdiction and, therefore, should consult a tax advisor.

16.  What other tax consequences are there to the stockholder?

The tax basis that you had on the pre-split shares is allocated proportionately among the old shares and the new shares. If you have specific questions, you should contact your tax advisor.

Page 3 of 3

QuickLinks

Press Release
SELECTED FINANCIAL DATA
CONSOLIDATED STATEMENTS OF INCOME
CONSOLIDATED STATEMENTS OF INCOME
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
SELECTED FINANCIAL DATA
SELECTED FINANCIAL DATA
APPENDIX