Attached files
| file | filename |
|---|---|
| 8-K - WEST COAST BANCORP /NEW/OR/ | v210150_8k.htm |
Exhibit 99.1
For
more information, contact:
Robert
D. Sznewajs
President
& CEO
(503)
598-3243
Anders
Giltvedt
Executive
Vice President & CFO
(503)
598-3250
West
Coast Bancorp Reports Profit for 2010
|
·
|
Full
year 2010 net income was $3.2 million or $.03 per diluted share while
fourth quarter 2010 net income was $1.9 million or $.02 per diluted
share.
|
|
·
|
West
Coast Bank’s total risk based capital ratio strengthened over the past
year to 18.05% at December 31,
2010.
|
|
·
|
Nonperforming
assets of $101 million at December 31, 2010, continued to decline from
previous periods and were down 34% over the past twelve months and
represented 4% of total assets.
|
|
·
|
At
year end 2010, the allowance for credit losses was 2.67% of total loans
and 67% of nonperforming loans.
|
|
·
|
Fourth
quarter 2010 net interest margin improved to 3.74%, up from 3.05% in the
same quarter last year.
|
|
·
|
Average
total non-time deposits grew 6% from the fourth quarter in 2009 due to
solid account growth.
|
Lake
Oswego, OR – January 28, 2011 – West Coast Bancorp (NASDAQ: WCBO)
(“Bancorp” or “Company”), the parent company of West Coast Bank (“Bank”)
and West Coast Trust Company, Inc., today announced net income of $1.9 million
or $.02 per diluted share for fourth quarter 2010 compared to a net loss for
fourth quarter 2009 of $48.9 million or $3.13 per diluted share. For the full
year 2010, the Company reported net income of $3.2 million or $.03 per diluted
share, compared to a net loss of $91.2 million or $5.83 per diluted share in
2009.
”The
results for the year 2010 reflecting a profit of $ 3.2 million represent a major
improvement for the Company from prior years as virtually all of the key
financial metrics of the Company continued their trend of improvement.”, said
Robert D. Sznewajs, President and Chief Executive Officer. “The Company began to
see growth in loan demand in the last half of 2010, which is expected to
continue into 2011 as the economy improves in some sectors. We also anticipate
that our operating results in future periods will reflect the improving economy.
The Company’s accomplishments in 2010 are the direct result of our dedicated
people and their outstanding service to each of our customers on a daily basis.”
said Sznewajs.
WEST
COAST BANCORP REPORTS FOURTH QUARTER 2010 RESULTS
January
28, 2011
Page 2
of 18
Capital
Table 1
below shows regulatory capital ratios for Bancorp and the Bank at December 31,
2010 and 2009, and at September 30, 2010, indicating significant
improvements as a result of the Company’s capital raising activities and
continued reductions in risk-weighted assets over the past twelve
months.
| Table 1 | ||||||||||||||||||||
|
SELECTED
INFORMATION
|
||||||||||||||||||||
|
Capital Ratios
|
||||||||||||||||||||
|
Dec.
31,
|
Dec.
31,
|
Sept.
30,
|
||||||||||||||||||
|
2010
|
2009
|
Change
|
2010
|
Change
|
||||||||||||||||
|
West Coast Bancorp
|
||||||||||||||||||||
|
Tier
1 capital ratio
|
17.47 | % | 7.17 | % | 10.30 | 16.96 | % | 0.51 | ||||||||||||
|
Total
capital ratio
|
18.74 | % | 9.13 | % | 9.61 | 18.23 | % | 0.51 | ||||||||||||
|
Leverage
ratio
|
13.02 | % | 5.37 | % | 7.65 | 12.84 | % | 0.18 | ||||||||||||
|
West Coast Bank
|
||||||||||||||||||||
|
Tier
1 capital ratio
|
16.79 | % | 14.11 | % | 2.68 | 16.30 | % | 0.49 | ||||||||||||
|
Total
capital ratio
|
18.05 | % | 15.37 | % | 2.68 | 17.56 | % | 0.49 | ||||||||||||
|
Leverage
ratio
|
12.51 | % | 10.57 | % | 1.94 | 12.34 | % | 0.17 | ||||||||||||
|
Selective quarterly performance
ratios
|
||||||||||||||||||||
|
Return
on average equity, annualized
|
2.75 | % | -74.54 | % | 77.29 | 8.84 | % | (6.09 | ) | |||||||||||
|
Return
on average assets, annualized
|
0.31 | % | -7.06 | % | 7.37 | 0.96 | % | (0.65 | ) | |||||||||||
|
Efficiency
ratio for the quarter to date
|
77.42 | % | 179.86 | % | (102.44 | ) | 76.09 | % | (1.33 | ) | ||||||||||
|
Share and Per Share Figures
|
||||||||||||||||||||
|
Quarter
ended
|
Quarter
ended
|
Quarter
ended
|
||||||||||||||||||
|
Dec.
31,
|
Dec.
31,
|
Sept.
30,
|
||||||||||||||||||
|
(Shares
in thousands)
|
2010
|
2009
|
Change
|
2010
|
Change
|
|||||||||||||||
|
Common
shares outstanding at period end
|
96,431 | 15,641 | 80,790 | 96,424 | 7 | |||||||||||||||
|
Weighted
average diluted shares
|
97,863 | 15,510 | 82,353 | 97,006 | 857 | |||||||||||||||
|
Income
(loss) per diluted share
|
$ | 0.02 | $ | (3.13 | ) | $ | 3.15 | $ | 0.06 | $ | (0.04 | ) | ||||||||
|
Book
value per common share
|
$ | 2.61 | $ | 7.02 | $ | (4.41 | ) | $ | 2.63 | $ | (0.02 | ) | ||||||||
| Please see Table 20 for additional information regarding outstanding shares and the possible dilutive effects of presently outstanding securities. | ||||||||||||||||||||
WEST
COAST BANCORP REPORTS FOURTH QUARTER 2010 RESULTS
January
28, 2011
Page 3 of
18
Balance
Sheet Overview
Total
loan balances declined $189 million or 11% from December 31, 2009 to $1.54
billion at December 31, 2010. The decline primarily reflected soft loan demand
and thus lower loan origination volume, particularly in the first half of 2010,
as well as the Company’s continuing strategy to reduce risk exposure in
selective loan segments. The two loan categories with the most meaningful
decline during 2010 were residential real estate construction loans, which
declined $45 million or 65%, and commercial loans, which declined $61 million or
16%. At year end 2010, total residential real estate construction loans
represented 2% of total loans compared to 4% a year ago. During the second half
of 2010 the Company experienced growth in commercial and commercial loan
origination volume compared to the same period in 2009 and first half of
2010.
|
Table
2
|
||||||||||||||||||||||||||||||||
|
PERIOD
END LOANS
|
||||||||||||||||||||||||||||||||
|
(Dollars
in thousands)
|
Dec.
31,
|
%
of
|
Dec.
31,
|
%
of
|
Change
|
Sept.
30,
|
%
of
|
|||||||||||||||||||||||||
|
2010
|
Total
|
2009
|
Total
|
Amount
|
%
|
2010
|
Total
|
|||||||||||||||||||||||||
|
Commercial
loans
|
$ | 309,327 | 20 | % | $ | 370,077 | 21 | % | $ | (60,750 | ) | -16 | % | $ | 317,037 | 20 | % | |||||||||||||||
|
Commercial
real estate construction
|
19,760 | 1 | % | 29,574 | 2 | % | (9,814 | ) | -33 | % | 17,933 | 1 | % | |||||||||||||||||||
|
Residential
real estate construction
|
24,325 | 2 | % | 69,736 | 4 | % | (45,411 | ) | -65 | % | 39,955 | 3 | % | |||||||||||||||||||
|
Total
real estate construction loans
|
44,085 | 3 | % | 99,310 | 6 | % | (55,225 | ) | -56 | % | 57,888 | 4 | % | |||||||||||||||||||
|
Mortgage
|
67,525 | 4 | % | 74,977 | 4 | % | (7,452 | ) | -10 | % | 71,446 | 5 | % | |||||||||||||||||||
|
Nonstandard
mortgage
|
12,523 | 1 | % | 20,108 | 1 | % | (7,585 | ) | -38 | % | 13,294 | 1 | % | |||||||||||||||||||
|
Home
equity
|
268,968 | 18 | % | 279,583 | 17 | % | (10,615 | ) | -4 | % | 272,132 | 17 | % | |||||||||||||||||||
|
Total
real estate mortgage
|
349,016 | 23 | % | 374,668 | 22 | % | (25,652 | ) | -7 | % | 356,872 | 23 | % | |||||||||||||||||||
|
Commercial
real estate loans
|
818,577 | 53 | % | 862,193 | 50 | % | (43,616 | ) | -5 | % | 827,668 | 52 | % | |||||||||||||||||||
|
Installment
and other consumer loans
|
15,265 | 1 | % | 18,594 | 1 | % | (3,329 | ) | -18 | % | 15,986 | 1 | % | |||||||||||||||||||
|
Total
loans
|
$ | 1,536,270 | $ | 1,724,842 | $ | (188,572 | ) | -11 | % | $ | 1,575,451 | |||||||||||||||||||||
|
Yield
on loans
|
5.43 | % | 5.19 | % | 0.24 | 5.44 | % | |||||||||||||||||||||||||
The
Company’s total cash equivalents and investment securities balance was $781
million at December 31, 2010 or a substantial 34% of earning assets at year end
2010 and reflects the Company’s continued strong liquidity position. To support
its net interest income and margin, the Company reduced the cash equivalents
component by $120 million or nearly 50% during 2010, in part by increasing its
investment portfolio by 15% or $84 million over the same time period. The
majority of the growth occurred in U.S. Government Agency securities and
mortgage-backed securities.
WEST
COAST BANCORP REPORTS FOURTH QUARTER 2010 RESULTS
January
28, 2011
Page 4
of 18
|
Table
3
|
||||||||||||||||||||||||||||||||
|
PERIOD
END CASH EQUIVALENTS AND INVESTMENT SECURITIES
|
||||||||||||||||||||||||||||||||
|
(Dollars
in thousands)
|
Dec.
31,
|
%
of
|
Dec.
31,
|
%
of
|
Change
|
Sept.
30,
|
%
of
|
|||||||||||||||||||||||||
|
2010
|
Total
|
2009
|
Total
|
Amount
|
%
|
2010
|
Total
|
|||||||||||||||||||||||||
|
Cash
equivalents:
|
||||||||||||||||||||||||||||||||
|
Federal
funds sold
|
$ | 3,367 | 0 | % | $ | 20,559 | 3 | % | $ | (17,192 | ) | -84 | % | $ | 4,605 | 1 | % | |||||||||||||||
|
Interest-bearing
deposits in other banks
|
131,952 | 17 | % | 234,830 | 28 | % | (102,878 | ) | -44 | % | 113,144 | 15 | % | |||||||||||||||||||
|
Total
cash equivalents
|
135,319 | 17 | % | 255,389 | 31 | % | (120,070 | ) | -47 | % | 117,749 | 16 | % | |||||||||||||||||||
|
Investment
securities:
|
||||||||||||||||||||||||||||||||
|
U.S.
Treasury securities
|
14,392 | 2 | % | $ | 25,007 | 3 | % | (10,615 | ) | -42 | % | 14,551 | 2 | % | ||||||||||||||||||
|
U.S.
Government Agency securities
|
194,230 | 24 | % | 103,988 | 13 | % | 90,242 | 87 | % | 221,450 | 28 | % | ||||||||||||||||||||
|
Corporate
securities
|
9,392 | 1 | % | 9,753 | 1 | % | (361 | ) | -4 | % | 9,014 | 1 | % | |||||||||||||||||||
|
Mortgage-backed
securities
|
363,618 | 47 | % | 344,294 | 42 | % | 19,324 | 6 | % | 324,563 | 43 | % | ||||||||||||||||||||
|
Obligations
of state and political sub.
|
52,645 | 7 | % | 70,018 | 9 | % | (17,373 | ) | -25 | % | 58,206 | 8 | % | |||||||||||||||||||
|
Equity
investments and other securities
|
11,835 | 2 | % | 9,217 | 1 | % | 2,618 | 28 | % | 12,290 | 2 | % | ||||||||||||||||||||
|
Total
investment securities
|
646,112 | 83 | % | 562,277 | 69 | % | 83,835 | 15 | % | 640,074 | 84 | % | ||||||||||||||||||||
|
Total
cash equivalents and investment securities
|
$ | 781,431 | 100 | % | $ | 817,666 | 100 | % | $ | (36,235 | ) | -4 | % | $ | 757,823 | 100 | % | |||||||||||||||
|
Tax
equivalent yield on cash equivalents and investment
securities
|
2.21 | % | 2.05 | % | 0.16 | 2.30 | % | |||||||||||||||||||||||||
Fourth
quarter 2010 average total deposits of $1.97 billion declined 8% or $174 million
from the same quarter in 2009. With excess balance sheet liquidity, in large
part caused by declining loan balances, we elected to reduce higher cost time
deposit balances. Average time deposit balances declined $273 million or 49%
year-over-year fourth quarter, and represented just 14% of the Company’s average
total deposits in the most recent quarter compared to 26% in fourth quarter
2009.
Led by
growth in checking account balances, year-over-year fourth quarter average total
non-time deposits increased $98 million or 6%. The combination of the Company’s
favorable deposit mix and deposit pricing strategies implemented during 2010
helped reduce the average rate paid on total deposits to .40% in fourth quarter
2010, a decline of 59 basis points from .99% same quarter in 2009.
WEST
COAST BANCORP REPORTS FOURTH QUARTER 2010 RESULTS
January
28, 2011
Page 5
of 18
|
Table
4
|
||||||||||||||||||||||||||||||||
|
QUARTERLY
AVERAGE DEPOSITS BY CATEGORY
|
||||||||||||||||||||||||||||||||
|
(Dollars
in thousands)
|
Q4
|
%
of
|
Q4
|
%
of
|
Change
|
Q3
|
%
of
|
|||||||||||||||||||||||||
|
2010
|
Total
|
2009
|
Total
|
Amount
|
%
|
2010
|
Total
|
|||||||||||||||||||||||||
|
Demand
deposits
|
$ | 566,998 | 29 | % | $ | 539,547 | 25 | % | $ | 27,451 | 5 | % | $ | 550,695 | 28 | % | ||||||||||||||||
|
Interest
bearing demand
|
349,071 | 18 | % | 316,584 | 15 | % | 32,487 | 10 | % | 337,214 | 17 | % | ||||||||||||||||||||
|
Savings
|
105,114 | 5 | % | 95,566 | 4 | % | 9,548 | 10 | % | 106,768 | 5 | % | ||||||||||||||||||||
|
Money
market
|
670,580 | 34 | % | 641,770 | 30 | % | 28,810 | 4 | % | 667,150 | 33 | % | ||||||||||||||||||||
|
Total
non-time deposits
|
1,691,763 | 86 | % | 1,593,467 | 74 | % | 98,296 | 6 | % | 1,661,827 | 83 | % | ||||||||||||||||||||
|
Time
deposits
|
281,009 | 14 | % | 553,688 | 26 | % | (272,679 | ) | -49 | % | 336,678 | 17 | % | |||||||||||||||||||
|
Total
deposits
|
$ | 1,972,772 | 100 | % | $ | 2,147,155 | 100 | % | $ | (174,383 | ) | -8 | % | $ | 1,998,505 | 100 | % | |||||||||||||||
|
Average
rate on total deposits
|
0.40 | % | 0.99 | % | (0.59 | ) | 0.51 | % | ||||||||||||||||||||||||
The
number of checking accounts increased by over 6,300 accounts, or 6%, in
2010.
|
Table
5
|
||||||||||||||||||||||||||||||||||||||||
|
NUMBER
OF DEPOSIT ACCOUNTS
|
||||||||||||||||||||||||||||||||||||||||
|
Dec.
31,
|
%
of
|
Dec.
31,
|
%
of
|
Change
|
Sept.
30,
|
%
of
|
Change
|
|||||||||||||||||||||||||||||||||
|
2010
|
Total
|
2009
|
Total
|
#
|
%
|
2010
|
Total
|
#
|
%
1
|
|||||||||||||||||||||||||||||||
|
Demand
deposits
|
51,324 | 33 | % | 48,160 | 31 | % | 3,164 | 7 | % | 50,757 | 32 | % | 567 | 4 | % | |||||||||||||||||||||||||
|
Interest
bearing demand
|
52,468 | 33 | % | 49,311 | 33 | % | 3,157 | 6 | % | 51,891 | 34 | % | 577 | 4 | % | |||||||||||||||||||||||||
|
Total
checking accounts
|
103,792 | 66 | % | 97,471 | 64 | % | 6,321 | 6 | % | 102,648 | 66 | % | 1,144 | 4 | % | |||||||||||||||||||||||||
|
Savings
|
28,924 | 19 | % | 26,762 | 17 | % | 2,162 | 8 | % | 28,599 | 18 | % | 325 | 5 | % | |||||||||||||||||||||||||
|
Money
market
|
14,388 | 9 | % | 14,832 | 10 | % | (444 | ) | -3 | % | 14,499 | 9 | % | (111 | ) | -3 | % | |||||||||||||||||||||||
|
Time
deposits
|
10,014 | 6 | % | 14,199 | 9 | % | (4,185 | ) | -29 | % | 10,499 | 7 | % | (485 | ) | -18 | % | |||||||||||||||||||||||
|
Total
deposit accounts
|
157,118 | 100 | % | 153,264 | 100 | % | 3,854 | 3 | % | 156,245 | 100 | % | 873 | 2 | % | |||||||||||||||||||||||||
|
1
Annualized.
|
||||||||||||||||||||||||||||||||||||||||
WEST
COAST BANCORP REPORTS FOURTH QUARTER 2010 RESULTS
January
28, 2011
Page 6
of 18
Operating
Results Improved Significantly from Fourth Quarter 2009
As shown
in Table 6 below, fourth quarter 2010 net income of $1.9 million increased $50.8
million compared to a net loss of $48.9 million in the same quarter of
2009. The improved
year-over-year fourth quarter was primarily due to significantly lower credit
costs; the provision for credit losses declined $33.5 million and Other Real
Estate Owned (“OREO”) valuation adjustments and losses resulting from OREO
dispositions declined $13.3 million.
|
Table
6
|
||||||||||||||||||||||||||||
|
SUMMARY
INCOME STATEMENT
|
||||||||||||||||||||||||||||
|
(Dollars
in thousands)
|
Q4
|
Q4
|
Change
|
Q3
|
Change
|
|||||||||||||||||||||||
|
2010
|
2009
|
$
|
%
|
2010
|
$
|
%
|
||||||||||||||||||||||
|
Net
interest income
|
$ | 21,889 | $ | 19,238 | $ | 2,651 | 14 | % | $ | 21,875 | $ | 14 | 0 | % | ||||||||||||||
|
Provision
for credit losses
|
1,693 | 35,233 | 33,540 | 95 | % | 1,567 | (126 | ) | -8 | % | ||||||||||||||||||
|
Noninterest
income
|
8,595 | (6,148 | ) | 14,743 | 240 | % | 8,069 | 526 | 7 | % | ||||||||||||||||||
|
Noninterest
expense
|
23,330 | 24,181 | 851 | 4 | % | 23,003 | (327 | ) | -1 | % | ||||||||||||||||||
|
Income
(loss) before income taxes
|
5,461 | (46,324 | ) | 51,785 | 112 | % | 5,374 | 87 | 2 | % | ||||||||||||||||||
|
Provision
(benefit) for income taxes 1
|
3,549 | 2,543 | (1,006 | ) | -40 | % | (676 | ) | (4,225 | ) | -625 | % | ||||||||||||||||
|
Net
income (loss)
|
$ | 1,912 | $ | (48,867 | ) | $ | 50,779 | 104 | % | $ | 6,050 | $ | (4,138 | ) | -68 | % | ||||||||||||
| 1 For more information on income taxes see table 10. | ||||||||||||||||||||||||||||
WEST
COAST BANCORP REPORTS FOURTH QUARTER 2010 RESULTS
January
28, 2011
Page 7
of 18
Fourth
quarter 2010 net interest income of $21.9 million increased $2.7 million or 14%
from the same quarter in 2009. This increase was largely attributable to a
reduction in interest expense on deposits and borrowings as well as lower
interest reversals on nonaccrual loans, which more than offset a decline in
interest income on loans due to lower loan balances and a continued shift in
average earning assets from higher yielding loan balances to investment
securities balances. Collectively, cash equivalents and investment securities
earned 322 basis points less than the loan portfolio during the most recent
quarter.
The net
interest margin of 3.74% in the most recent quarter expanded 69 basis points
from 3.05% in fourth quarter 2009. The year-over-year fourth quarter unfavorable
earning assets mix shift from loan to investment balances was more than offset
by a 100 basis points improvement in spread between yield earned on loans and
rate paid on interest bearing deposits.
|
Table
7
|
||||||||||||||||||||
|
NET
INTEREST SPREAD AND MARGIN
|
||||||||||||||||||||
|
(Annualized,
tax-equivalent basis)
|
Q4
|
Q4
|
Q3
|
|||||||||||||||||
|
2010
|
2009
|
Change
|
2010
|
Change
|
||||||||||||||||
|
Yield
on average interest-earning assets
|
4.35 | % | 4.25 | % | 0.10 | 4.41 | % | (0.06 | ) | |||||||||||
|
Rate
on average interest-bearing liabilities
|
0.88 | % | 1.59 | % | (0.71 | ) | 1.00 | % | (0.12 | ) | ||||||||||
|
Net
interest spread
|
3.47 | % | 2.66 | % | 0.81 | 3.41 | % | 0.06 | ||||||||||||
|
Net
interest margin
|
3.74 | % | 3.05 | % | 0.69 | 3.71 | % | 0.03 | ||||||||||||
As shown
in Table 8 below, fourth quarter 2010 total noninterest income of $8.6 million
increased $14.7 million from the same quarter last year. Excluding net loss on
OREO of $1.2 million in the most recent quarter and $14.5 million in the fourth
quarter last year, the Company’s noninterest income increased $1.5 million or
18% over fourth quarter 2009. The increase was a result of $.6 million and $.4
million growth in payment system revenue and gains on sales of loans in the
fourth quarter 2010, respectively, along with a $.6 million gain on sales of
securities compared to none in the fourth quarter last year. Total service
charges on deposit accounts were unchanged.
WEST
COAST BANCORP REPORTS FOURTH QUARTER 2010 RESULTS
January
28, 2011
Page 8
of 18
|
Table
8
|
||||||||||||||||||||||||||||
|
NONINTEREST
INCOME
|
||||||||||||||||||||||||||||
|
(Dollars
in thousands)
|
Q4
|
Q4
|
Change
|
Q3
|
Change
|
|||||||||||||||||||||||
|
2010
|
2009
|
$
|
%
|
2010
|
$
|
%
|
||||||||||||||||||||||
|
Noninterest
income
|
||||||||||||||||||||||||||||
|
Service
charges on deposit accounts
|
$ | 3,736 | $ | 3,789 | $ | (53 | ) | -1 | % | $ | 4,145 | $ | (409 | ) | -10 | % | ||||||||||||
|
Payment
systems related revenue
|
2,984 | 2,402 | 582 | 24 | % | 2,998 | (14 | ) | 0 | % | ||||||||||||||||||
|
Trust
and investment services revenues
|
1,143 | 1,071 | 72 | 7 | % | 978 | 165 | 17 | % | |||||||||||||||||||
|
Gains
on sales of loans
|
568 | 173 | 395 | 228 | % | 182 | 386 | 212 | % | |||||||||||||||||||
|
Gains
on sales of securities
|
617 | - | 617 | 0 | % | - | 617 | 0 | % | |||||||||||||||||||
|
Other
|
733 | 885 | (152 | ) | -17 | % | 728 | 5 | 1 | % | ||||||||||||||||||
|
Total
|
9,781 | 8,320 | 1,461 | 18 | % | 9,031 | 750 | 8 | % | |||||||||||||||||||
|
OREO
gains (losses) on sale
|
336 | (862 | ) | 1,198 | 139 | % | 549 | (213 | ) | -39 | % | |||||||||||||||||
|
OREO
valuation adjustments
|
(1,522 | ) | (6,940 | ) | 5,418 | 78 | % | (1,511 | ) | (11 | ) | -1 | % | |||||||||||||||
|
OREO
loss on bulk sale
|
- | (6,666 | ) | 6,666 | 0 | % | - | - | 0 | % | ||||||||||||||||||
|
Total
net loss on OREO
|
(1,186 | ) | (14,468 | ) | 13,282 | 92 | % | (962 | ) | (224 | ) | -23 | % | |||||||||||||||
|
Total
noninterest income
|
$ | 8,595 | $ | (6,148 | ) | $ | 14,743 | 240 | % | $ | 8,069 | $ | 526 | 7 | % | |||||||||||||
As
presented in Table 9 below, fourth quarter 2010 total noninterest expense of
$23.3 million decreased $.9 million from the fourth quarter in 2009.
Year-over-year fourth quarter equipment and occupancy expenses collectively
declined $1.5 million, primarily due to expenses incurred in the final quarter
of 2009 associated with a review and disposal of fixed assets. The increase in
payment system expense was directly associated with higher transaction
volumes.
|
Table
9
|
||||||||||||||||||||||||||||
|
NONINTEREST
EXPENSE
|
||||||||||||||||||||||||||||
|
(Dollars
in thousands)
|
Q4
|
Q4
|
Change
|
Q3
|
Change
|
|||||||||||||||||||||||
|
2010
|
2009
|
$
|
%
|
2010
|
$
|
%
|
||||||||||||||||||||||
|
Noninterest
expense
|
||||||||||||||||||||||||||||
|
Salaries
and employee benefits
|
$ | 11,521 | $ | 11,393 | $ | (128 | ) | -1 | % | $ | 11,836 | $ | 315 | 3 | % | |||||||||||||
|
Equipment
|
1,540 | 2,620 | 1,080 | 41 | % | 1,525 | (15 | ) | -1 | % | ||||||||||||||||||
|
Occupancy
|
2,245 | 2,677 | 432 | 16 | % | 2,216 | (29 | ) | -1 | % | ||||||||||||||||||
|
Payment
systems related expense
|
1,297 | 1,076 | (221 | ) | -21 | % | 1,214 | (83 | ) | -7 | % | |||||||||||||||||
|
Professional
fees
|
822 | 953 | 131 | 14 | % | 1,147 | 325 | 28 | % | |||||||||||||||||||
|
Postage,
printing and office supplies
|
816 | 781 | (35 | ) | -4 | % | 791 | (25 | ) | -3 | % | |||||||||||||||||
|
Marketing
|
800 | 832 | 32 | 4 | % | 861 | 61 | 7 | % | |||||||||||||||||||
|
Communications
|
388 | 375 | (13 | ) | -3 | % | 374 | (14 | ) | -4 | % | |||||||||||||||||
|
Other
noninterest expense
|
3,901 | 3,474 | (427 | ) | -12 | % | 3,039 | (862 | ) | -28 | % | |||||||||||||||||
|
Total
noninterest expense
|
$ | 23,330 | 24,181 | $ | 851 | 4 | % | $ | 23,003 | $ | (327 | ) | -1 | % | ||||||||||||||
WEST
COAST BANCORP REPORTS FOURTH QUARTER 2010 RESULTS
January
28, 2011
Page 9
of 18
Income
Taxes and Deferred Tax Asset Valuation Allowance
Fourth
quarter 2010 provision for income taxes was $3.5 million compared to a provision
for income taxes in the same quarter of 2009 of $2.5 million. The
provision for income taxes in the most recent quarter was the result of a $2.1
million impact on tax expense from a decrease in gross unrealized gains on
investment securities during the quarter, and an adjustment of $1.4 million to
the Company’s tax estimate in its 2009 income tax return which increased its
deferred tax asset valuation allowance.
At year
end 2010 the Company maintained a valuation allowance of $23.5 million against
the deferred tax asset balance of $29.3 million for a net deferred tax asset of
$5.8 million.
Looking
forward, management will continue to review the deferred tax asset valuation
allowance on a quarterly basis. Any future reversals of the deferred tax asset
valuation allowance, including a reduction for the effect of pretax income,
would decrease the Company’s income tax expense and increase net
income. While the Company maintains a deferred tax asset valuation
allowance, changes in the gross unrealized gain on the Company’s investment
portfolio will also, either favorably or unfavorably, impact the Company’s
future deferred tax valuation allowance and provision for income
taxes.
|
Table
10
|
||||||||||||||||||||
|
PROVISION
(BENEFIT) FOR INCOME TAXES
|
||||||||||||||||||||
|
(Dollars
in thousands)
|
Q4
|
Q4
|
Full
year
|
Full
year
|
||||||||||||||||
|
2010
|
2009
|
Change
|
2010
|
2009
|
||||||||||||||||
|
Benefit
for income taxes net of initial
|
||||||||||||||||||||
|
establishment
of deferred tax asset valuation allowance
|
$ | - | $ | (18,456 | ) | $ | (18,456 | ) | $ | - | $ | (40,275 | ) | |||||||
|
Provision
(benefit) for income taxes from deferred
|
||||||||||||||||||||
|
tax
asset valuation allowance:
|
||||||||||||||||||||
|
Establishment
of deferred tax asset valuation allowance
|
- | 23,296 | 23,296 | - | 23,296 | |||||||||||||||
|
Unrealized
(gain) loss on securities
|
2,077 | (2,297 | ) | (4,374 | ) | (1,197 | ) | (2,297 | ) | |||||||||||
|
Change
in deferred tax assets-tax return adjustments
|
1,472 | - | (1,472 | ) | 4,987 | - | ||||||||||||||
|
Total
provision (benefit) for income taxes
|
$ | 3,549 | $ | 2,543 | $ | (1,006 | ) | $ | 3,790 | $ | (19,276 | ) | ||||||||
Credit
Quality
The
Company recorded a fourth quarter 2010 provision for credit losses of $1.7
million, a decline from $35.2 million in the same quarter of 2009. Consistent
with the first three quarters of 2010, the latest quarter marked a significant
reduction in net charge-offs compared to the corresponding quarter a year ago.
Fourth quarter 2010 net charge-offs of $3.2 million, or .83% of average loans on
an annualized basis, declined $32.7 million from $35.9 million in the fourth
quarter of 2009, and was at the lowest quarterly level in over two years. Net
charge-offs declined significantly in all major loan categories when compared to
prior year fourth quarter. The Company’s future provisioning will continue to be
heavily dependent on the local real estate market, level of market interest
rates, and general economic conditions nationally and in the areas in which the
Company does business.
WEST
COAST BANCORP REPORTS FOURTH QUARTER 2010 RESULTS
January
28, 2011
Page 10
of 18
|
Table
11
|
||||||||||||||||||||
|
ALLOWANCE
FOR CREDIT LOSSES AND NET CHARGEOFFS
|
||||||||||||||||||||
|
(Dollars
in thousands)
|
Q4
|
Q3
|
Q2
|
Q1
|
Q4
|
|||||||||||||||
|
2010
|
2010
|
2010
|
2010
|
2009
|
||||||||||||||||
|
Allowance
for credit losses, beginning of period
|
$ | 42,618 | $ | 44,347 | $ | 41,299 | $ | 39,418 | $ | 40,036 | ||||||||||
|
Total
provision for credit losses
|
1,693 | 1,567 | 7,758 | 7,634 | 35,233 | |||||||||||||||
|
Loan
net charge-offs:
|
||||||||||||||||||||
|
Commercial
|
1,109 | 524 | 1,684 | 839 | 13,271 | |||||||||||||||
|
Commercial
real estate construction
|
76 | - | 248 | 487 | - | |||||||||||||||
|
Residential
real estate construction
|
89 | 813 | 432 | 734 | 10,538 | |||||||||||||||
|
Total
real estate construction
|
165 | 813 | 680 | 1,221 | 10,538 | |||||||||||||||
|
Mortgage
|
347 | 449 | 478 | 909 | 4,734 | |||||||||||||||
|
Nonstandard
mortgage
|
76 | 5 | 641 | 1,497 | 692 | |||||||||||||||
|
Home
equity
|
570 | 568 | 627 | 914 | 1,346 | |||||||||||||||
|
Total
real estate mortgage
|
993 | 1,022 | 1,746 | 3,320 | 6,772 | |||||||||||||||
|
Commercial
real estate
|
584 | 339 | 275 | 95 | 4,733 | |||||||||||||||
|
Installment
and consumer
|
59 | 272 | 146 | 137 | 285 | |||||||||||||||
|
Overdraft
|
334 | 326 | 179 | 141 | 252 | |||||||||||||||
|
Total
loan net charge-offs
|
3,244 | 3,296 | 4,710 | 5,753 | 35,851 | |||||||||||||||
|
Total
allowance for credit losses
|
$ | 41,067 | $ | 42,618 | $ | 44,347 | $ | 41,299 | $ | 39,418 | ||||||||||
|
Components
of allowance for credit losses:
|
||||||||||||||||||||
|
Allowance
for loan losses
|
$ | 40,217 | $ | 41,753 | $ | 43,329 | $ | 40,446 | $ | 38,490 | ||||||||||
|
Reserve
for unfunded commitments
|
850 | 865 | 1,018 | 853 | 928 | |||||||||||||||
|
Total
allowance for credit losses
|
$ | 41,067 | $ | 42,618 | $ | 44,347 | $ | 41,299 | $ | 39,418 | ||||||||||
|
Net
loan charge-offs to average loans (annualized)
|
0.83 | % | 0.82 | % | 1.15 | % | 1.37 | % | 7.94 | % | ||||||||||
|
Allowance
for loan losses to total loans
|
2.62 | % | 2.65 | % | 2.70 | % | 2.43 | % | 2.23 | % | ||||||||||
|
Allowance
for credit losses to total loans
|
2.67 | % | 2.71 | % | 2.77 | % | 2.48 | % | 2.29 | % | ||||||||||
|
Allowance
for loan losses to nonperforming loans
|
66 | % | 61 | % | 55 | % | 47 | % | 39 | % | ||||||||||
|
Allowance
for credit losses to nonperforming loans
|
67 | % | 62 | % | 56 | % | 48 | % | 40 | % | ||||||||||
The
December 31, 2010 allowance for credit losses of $41.1 million or 2.67% of total
loan balances increased from $39.4 million or 2.29% of total loan balances a
year ago. The increase in the allowance for credit losses relative to total loan
balances over the past twelve months was due to higher general valuation
allowances in our reserve model and a larger unallocated allowance at December
31, 2010. At December 31, 2010, the unallocated portion of the allowance for
loan losses amounted to $6.2 million or 15% of the total allowance for credit
losses, an increase from $5.0 million or 13%, respectively, at year end 2009. As
shown in Table 18, in 2010 the provision for credit losses exceeded net
charge-offs by $1.6 million. During the fourth quarter 2010, however, the net
charge-offs exceeded the provision for credit losses by $1.6 million. The fourth
quarter provision reflected continued slowdown in the unfavorable risk rating
migration within the loan portfolio and the release of reserves as certain loans
moved from being included in the general valuation allowance to being
individually measured for impairment. The most significant increase in the level
of impaired loans was an increase in loans qualifying as troubled debt
restructures (“TDR’s). Loans that qualify as TDR’s are considered impaired
regardless of whether we expect them to perform to the terms of the loan
agreement. The increase had the effect of reducing the allowance and thus
provision for credit losses approximately $.8 million in the quarter. These
changes caused the December 31, 2010 allowance for credit losses as a percentage
of total loans to decline slightly from September 30, 2010. The Company’s
estimate of appropriate reserve amounts will continue to be primarily dependent
on the loan portfolio’s credit quality performance trends, including net
charge-offs, which will be heavily dependent on local economic
conditions.
WEST
COAST BANCORP REPORTS FOURTH QUARTER 2010 RESULTS
January
28, 2011
Page 11
of 18
Total
nonperforming assets were $100.7 million or 4.1% of total assets as of December
31, 2010, compared to $152.9 million and 5.6%, respectively, a year ago. The
decline in total nonperforming assets from $104.4 million at
September 30, 2010, represented the seventh consecutive quarterly decline. The
allowance for credit losses represented 67% of nonperforming loans at December
31, 2010, an increase from 40% a year ago.
|
Table
12
|
||||||||||||||||||||
|
NONPERFORMING
ASSETS
|
||||||||||||||||||||
|
(Dollars
in thousands)
|
Dec.
31,
|
Sept.
30,
|
June
30,
|
March
31,
|
Dec.
31.
|
|||||||||||||||
|
2010
|
2010
|
2010
|
2010
|
2009
|
||||||||||||||||
|
Loans
on nonaccrual status:
|
||||||||||||||||||||
|
Commercial
|
$ | 13,377 | $ | 13,319 | $ | 15,317 | $ | 24,856 | $ | 36,211 | ||||||||||
|
Real
estate construction:
|
||||||||||||||||||||
|
Commercial
real estate construction
|
4,077 | 3,391 | 3,391 | 3,939 | 1,488 | |||||||||||||||
|
Residential
real estate construction
|
6,615 | 13,316 | 19,465 | 19,776 | 22,373 | |||||||||||||||
|
Total
real estate construction
|
10,692 | 16,707 | 22,856 | 23,715 | 23,861 | |||||||||||||||
|
Real
estate mortgage:
|
||||||||||||||||||||
|
Mortgage
|
9,318 | 13,040 | 14,535 | 9,829 | 11,563 | |||||||||||||||
|
Nonstandard
mortgage
|
5,223 | 5,150 | 6,121 | 9,327 | 8,752 | |||||||||||||||
|
Home
equity
|
950 | 1,538 | 2,198 | 2,248 | 2,036 | |||||||||||||||
|
Total
real estate mortgage
|
15,491 | 19,728 | 22,854 | 21,404 | 22,351 | |||||||||||||||
|
Commercial
real estate
|
21,671 | 18,792 | 17,542 | 15,322 | 16,778 | |||||||||||||||
|
Installment
and consumer
|
- | - | 74 | 172 | 144 | |||||||||||||||
|
Total
nonaccrual loans
|
61,231 | 68,546 | 78,643 | 85,469 | 99,345 | |||||||||||||||
|
90
days past due not on nonaccrual
|
- | - | - | - | - | |||||||||||||||
|
Total
nonperforming loans
|
61,231 | 68,546 | 78,643 | 85,469 | 99,345 | |||||||||||||||
|
Other
real estate owned
|
39,459 | 35,814 | 37,578 | 45,238 | 53,594 | |||||||||||||||
|
Total
nonperforming assets
|
$ | 100,690 | $ | 104,360 | $ | 116,221 | $ | 130,707 | $ | 152,939 | ||||||||||
|
Nonperforming
loans to total loans
|
3.99 | % | 4.35 | % | 4.91 | % | 5.13 | % | 5.76 | % | ||||||||||
|
Nonperforming
assets to total assets
|
4.09 | % | 4.20 | % | 4.64 | % | 4.91 | % | 5.60 | % | ||||||||||
Over the
past year total nonaccrual loans declined $38.1 million or 38% to $61.2 million
at December 31, 2010. This reduction was largely due to loans migrating through
steps leading to eventual resolutions, including the Company taking ownership of
additional real property related to loans which previously were on nonaccrual
status, nonaccrual loan payoffs, and the disposition of certain nonaccrual
loans. At December 31, 2010, the total nonaccrual loan portfolio had been
written down 20% from the original principal balance compared to 30% at the end
of 2009.
WEST
COAST BANCORP REPORTS FOURTH QUARTER 2010 RESULTS
January
28, 2011
Page 12
of 18
As indicated in Table 13 below, the Company’s OREO property disposition activities continue at a consistent pace. During the most recent quarter, the Company disposed of 81 OREO properties with a book value of $5.9 million while assuming 35 properties with a book value of $10.9 million and having capitalized improvements on OREO properties of $.2 million. At December 31, 2010, the OREO portfolio consisted of 402 properties with a book value of $39.5 million. The year-end OREO balance reflected write-downs totaling 51% from original loan principal compared to 49% twelve months earlier. The largest balances in the OREO portfolio at December 31, 2010 were attributable to homes followed by residential site development projects located within our footprint. During the fourth quarter we assumed three land parcels and one income producing property. The residential site development balance and number of such properties declined in the fourth quarter due to continued lot sales.
|
Table
13
|
||||||||||||||||||||||||||||||||||||||||
|
OTHER
REAL ESTATE OWNED ACTIVITY
|
||||||||||||||||||||||||||||||||||||||||
|
Q4
2010
|
Q3
2010
|
Q2
2010
|
Q1
2010
|
Q4
2009
|
||||||||||||||||||||||||||||||||||||
|
Amount
|
#
|
Amount
|
#
|
Amount
|
#
|
Amount
|
#
|
Amount
|
#
|
|||||||||||||||||||||||||||||||
|
Beginning
balance
|
$ | 35,814 | 448 | $ | 37,578 | 446 | $ | 45,238 | 596 | $ | 53,594 | 672 | $ | 76,570 | 301 | |||||||||||||||||||||||||
|
Additions
to OREO
|
11,053 | 35 | 5,119 | 53 | 7,209 | 20 | 5,003 | 15 | 26,293 | 536 | ||||||||||||||||||||||||||||||
|
Dispositions
of OREO
|
(5,886 | ) | (81 | ) | (5,372 | ) | (51 | ) | (13,612 | ) | (170 | ) | (11,000 | ) | (91 | ) | (42,329 | ) | (165 | ) | ||||||||||||||||||||
|
OREO
valuation adj.
|
(1,522 | ) | - | (1,511 | ) | - | (1,257 | ) | - | (2,359 | ) | - | (6,940 | ) | - | |||||||||||||||||||||||||
|
Ending
balance
|
$ | 39,459 | 402 | $ | 35,814 | 448 | $ | 37,578 | 446 | $ | 45,238 | 596 | $ | 53,594 | 672 | |||||||||||||||||||||||||
|
Full
Year 2010
|
Full
Year 2009
|
|||||||||||||||||||||||||||||||||||||||
|
Amount
|
#
|
Amount
|
#
|
|||||||||||||||||||||||||||||||||||||
|
Beginning
balance
|
$ | 53,594 | 672 | $ | 70,110 | 288 | ||||||||||||||||||||||||||||||||||
|
Additions
to OREO
|
25,199 | 123 | 74,174 | 699 | ||||||||||||||||||||||||||||||||||||
|
Capitalized
improvements
|
3,185 | 4,933 | ||||||||||||||||||||||||||||||||||||||
|
Valuation
adjustments
|
(6,649 | ) | (18,562 | ) | ||||||||||||||||||||||||||||||||||||
|
Disposition
of OREO
|
(35,870 | ) | (393 | ) | (77,061 | ) | (315 | ) | ||||||||||||||||||||||||||||||||
|
Ending
balance
|
$ | 39,459 | 402 | $ | 53,594 | 672 | ||||||||||||||||||||||||||||||||||
|
Table
14
|
||||||||||||||||||||||||
|
OTHER
REAL ESTATE OWNED BY PROPERTY TYPE
|
||||||||||||||||||||||||
|
(Dollars
in thousands)
|
Dec.
31,
|
#
of
|
Sept.
30,
|
#
of
|
June
30,
|
#
of
|
||||||||||||||||||
|
2010
|
properties
|
2010
|
properties
|
2010
|
properties
|
|||||||||||||||||||
|
Homes
|
$ | 17,297 | 69 | $ | 15,341 | 66 | $ | 17,254 | 75 | |||||||||||||||
|
Residential
site developments
|
7,340 | 245 | 8,096 | 281 | 7,296 | 265 | ||||||||||||||||||
|
Lots
|
3,700 | 56 | 4,062 | 61 | 4,750 | 67 | ||||||||||||||||||
|
Land
|
5,135 | 12 | 3,525 | 10 | 3,474 | 10 | ||||||||||||||||||
|
Income
producing properties
|
5,162 | 7 | 3,212 | 7 | 2,996 | 6 | ||||||||||||||||||
|
Condominiums
|
128 | 2 | 881 | 12 | 1,111 | 12 | ||||||||||||||||||
|
Multifamily
|
697 | 11 | 697 | 11 | 697 | 11 | ||||||||||||||||||
|
Total
|
$ | 39,459 | 402 | $ | 35,814 | 448 | $ | 37,578 | 446 | |||||||||||||||
WEST
COAST BANCORP REPORTS FOURTH QUARTER 2010 RESULTS
January
28, 2011
Page 13
of 18
Other:
The
Company will hold a Webcast conference call Friday, January 28, 2011, at 11:00
a.m. Pacific Time, during which the Company will discuss fourth quarter 2010
results and key activities. To access the conference call via a live Webcast, go
to www.wcb.com
and click on Investor Relations and the “4th Quarter 2010 Earnings Conference
Call” tab. The conference call may also be accessed by dialing (877) 247-4281
Conference ID#: 35248931 a few minutes prior to 11:00 a.m. Pacific Time. The
call will be available for replay by accessing the Company’s website at www.wcb.com and
following the same instructions.
West
Coast Bancorp is a Northwest bank holding company with $2.5 billion in assets
and 65 offices in Oregon and Washington. The Company combines the
sophisticated products and expertise of larger banks with the local decision
making, market knowledge and customer service of a community
bank. For more information, visit the Company’s web site at www.wcb.com.
Forward
Looking Statements:
Statements
in this release regarding future events, performance or results are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 ("PSLRA") and are made pursuant to the safe
harbors of the PSLRA. These statements can often be identified by words
such as "expects," "believes," “anticipates,” or "will," or other words of
similar meaning. Actual results could be quite different from those
expressed or implied by the forward-looking statements, which give our current
expectations about the future and are not guarantees. Forward-looking
statements speak only as of the date they are made, and we do not undertake any
obligation to update them to reflect changes that occur after that
date.
A number
of factors could cause results to differ significantly from our expectations,
including, among others, the effects of (i) market conditions in our service
areas on our efforts to continue to reduce our levels of nonperforming assets
and increase loan originations as well as (ii) all risk factors identified in
our Annual Report on Form 10-K for the year ended December 31, 2009, including
under the headings "Forward Looking Statement Disclosure" and in the section
"Risk Factors,” and in our most recent Quarterly Report on Form
10-Q.
WEST
COAST BANCORP REPORTS FOURTH QUARTER 2010 RESULTS
January
28, 2011
Page 14
of 18
|
Table
15
|
||||||||||||||||||||||||||||
|
INCOME
STATEMENT
|
||||||||||||||||||||||||||||
|
(Dollars
in thousands)
|
Q4
|
Q4
|
Change
|
Q3
|
Full
Year
|
Full
Year
|
||||||||||||||||||||||
|
2010
|
2009
|
$
|
%
|
2010
|
2010
|
2009
|
||||||||||||||||||||||
|
Net
interest income
|
||||||||||||||||||||||||||||
|
Interest
and fees on loans
|
$ | 21,350 | $ | 23,457 | $ | (2,107 | ) | -9 | % | $ | 21,800 | $ | 88,409 | $ | 100,356 | |||||||||||||
|
Interest
on investment securities
|
4,064 | 3,309 | 755 | 23 | % | 4,160 | 16,668 | 11,422 | ||||||||||||||||||||
|
Other
interest income
|
95 | 182 | (87 | ) | -48 | % | 93 | 499 | 372 | |||||||||||||||||||
|
Total
interest income
|
25,509 | 26,948 | (1,439 | ) | -5 | % | 26,053 | 105,576 | 112,150 | |||||||||||||||||||
|
Interest
expense on deposit accounts
|
2,009 | 5,382 | 3,373 | 63 | % | 2,553 | 12,130 | 24,442 | ||||||||||||||||||||
|
Interest
on borrowings and subordinated debentures
|
1,611 | 2,328 | 717 | 31 | % | 1,625 | 10,139 | 8,981 | ||||||||||||||||||||
|
Total
interest expense
|
3,620 | 7,710 | 4,090 | 53 | % | 4,178 | 22,269 | 33,423 | ||||||||||||||||||||
|
Net
interest income
|
21,889 | 19,238 | 2,651 | 14 | % | 21,875 | 83,307 | 78,727 | ||||||||||||||||||||
|
Provision
for credit losses
|
1,693 | 35,233 | 33,540 | 95 | % | 1,567 | 18,652 | 90,057 | ||||||||||||||||||||
|
Noninterest
income
|
||||||||||||||||||||||||||||
|
Service
charges on deposit accounts
|
3,736 | 3,789 | (53 | ) | -1 | % | 4,145 | 15,690 | 15,765 | |||||||||||||||||||
|
Payment
systems related revenue
|
2,984 | 2,402 | 582 | 24 | % | 2,998 | 11,393 | 9,399 | ||||||||||||||||||||
|
Trust
and investment services revenues
|
1,143 | 1,071 | 72 | 7 | % | 978 | 4,267 | 4,101 | ||||||||||||||||||||
|
Gains
on sales of loans
|
568 | 173 | 395 | 228 | % | 182 | 1,197 | 1,738 | ||||||||||||||||||||
|
Net
OREO valuation adjustments
|
||||||||||||||||||||||||||||
|
and
gains (losses) on sales
|
(1,186 | ) | (14,468 | ) | 13,282 | 92 | % | (962 | ) | (4,415 | ) | (26,953 | ) | |||||||||||||||
|
Other
|
733 | 885 | (152 | ) | -17 | % | 728 | 3,003 | 4,438 | |||||||||||||||||||
|
Other-than-temporary
impairment losses
|
- | - | - | 0 | % | - | - | (192 | ) | |||||||||||||||||||
|
Gain
on sales of securities
|
617 | - | 617 | 100 | % | - | 1,562 | 833 | ||||||||||||||||||||
|
Total
noninterest income
|
8,595 | (6,148 | ) | 14,743 | 240 | % | 8,069 | 32,697 | 9,129 | |||||||||||||||||||
|
Noninterest
expense
|
||||||||||||||||||||||||||||
|
Salaries
and employee benefits
|
11,521 | 11,393 | (128 | ) | -1 | % | 11,836 | 45,854 | 44,608 | |||||||||||||||||||
|
Equipment
|
1,540 | 2,620 | 1,080 | 41 | % | 1,525 | 6,247 | 8,120 | ||||||||||||||||||||
|
Occupancy
|
2,245 | 2,677 | 432 | 16 | % | 2,216 | 8,894 | 9,585 | ||||||||||||||||||||
|
Payment
systems related expense
|
1,297 | 1,076 | (221 | ) | -21 | % | 1,214 | 4,727 | 4,036 | |||||||||||||||||||
|
Professional
fees
|
822 | 953 | 131 | 14 | % | 1,147 | 3,991 | 4,342 | ||||||||||||||||||||
|
Postage,
printing and office supplies
|
816 | 781 | (35 | ) | -4 | % | 791 | 3,148 | 3,201 | |||||||||||||||||||
|
Marketing
|
800 | 832 | 32 | 4 | % | 861 | 3,086 | 2,990 | ||||||||||||||||||||
|
Communications
|
388 | 375 | (13 | ) | -3 | % | 374 | 1,525 | 1,574 | |||||||||||||||||||
|
Goodwill
impairment
|
- | - | - | 0 | % | - | - | 13,059 | ||||||||||||||||||||
|
Other
noninterest expense
|
3,901 | 3,474 | (427 | ) | -12 | % | 3,039 | 12,865 | 16,773 | |||||||||||||||||||
|
Total
noninterest expense
|
23,330 | 24,181 | 851 | 4 | % | 23,003 | 90,337 | 108,288 | ||||||||||||||||||||
|
Net
income (loss) before income taxes
|
5,461 | (46,324 | ) | 51,785 | 112 | % | 5,374 | 7,015 | (110,489 | ) | ||||||||||||||||||
|
Provision
(benefit) for income taxes
|
3,549 | 2,543 | (1,006 | ) | -40 | % | (676 | ) | 3,790 | (19,276 | ) | |||||||||||||||||
|
Net
income (loss)
|
$ | 1,912 | $ | (48,867 | ) | $ | 50,779 | 104 | % | $ | 6,050 | $ | 3,225 | $ | (91,213 | ) | ||||||||||||
|
Net
income (loss) per share:
|
||||||||||||||||||||||||||||
|
Basic
|
$ | 0.02 | $ | (3.13 | ) | $ | 3.15 | $ | 0.06 | $ | 0.03 | $ | (5.83 | ) | ||||||||||||||
|
Diluted
|
$ | 0.02 | $ | (3.13 | ) | $ | 3.15 | $ | 0.06 | $ | 0.03 | $ | (5.83 | ) | ||||||||||||||
|
Weighted
average common shares
|
94,792 | 15,510 | 79,282 | 94,776 | 87,300 | 15,510 | ||||||||||||||||||||||
|
Weighted
average diluted shares
|
97,863 | 15,510 | 82,353 | 97,006 | 90,295 | 15,510 | ||||||||||||||||||||||
|
Tax
equivalent net interest income
|
$ | 22,156 | $ | 19,592 | $ | 2,564 | $ | 22,163 | $ | 84,478 | $ | 80,222 | ||||||||||||||||
WEST
COAST BANCORP REPORTS FOURTH QUARTER 2010 RESULTS
January
28, 2011
Page 15
of 18
|
Table
16
|
||||||||||||||||||||
|
BALANCE
SHEETS
|
||||||||||||||||||||
|
(Dollars
in thousands)
|
Dec.
31,
|
Dec.
31,
|
Change
|
Sept.
30,
|
||||||||||||||||
|
2010
|
2009
|
$
|
%
|
2010
|
||||||||||||||||
|
Assets:
|
||||||||||||||||||||
|
Cash
and due from banks
|
$ | 42,672 | $ | 47,708 | $ | (5,036 | ) | -11 | % | $ | 57,216 | |||||||||
|
Federal
funds sold
|
3,367 | 20,559 | (17,192 | ) | -84 | % | 4,605 | |||||||||||||
|
Interest-bearing
deposits in other banks
|
131,952 | 234,830 | (102,878 | ) | -44 | % | 113,144 | |||||||||||||
|
Total
cash and cash equivalents
|
177,991 | 303,097 | (125,106 | ) | -41 | % | 174,965 | |||||||||||||
|
Investment
securities
|
646,112 | 562,277 | 83,835 | 15 | % | 640,074 | ||||||||||||||
|
Total
loans
|
1,536,270 | 1,724,842 | (188,572 | ) | -11 | % | 1,575,451 | |||||||||||||
|
Allowance
for loan losses
|
(40,217 | ) | (38,490 | ) | (1,727 | ) | 4 | % | (41,753 | ) | ||||||||||
|
Loans,
net
|
1,496,053 | 1,686,352 | (190,299 | ) | -11 | % | 1,533,698 | |||||||||||||
|
OREO,
net
|
39,459 | 53,594 | (14,135 | ) | -26 | % | 35,814 | |||||||||||||
|
Goodwill
and other intangibles
|
358 | 637 | (279 | ) | -44 | % | 418 | |||||||||||||
|
Total
interest earning assets
|
2,321,611 | 2,545,116 | (223,505 | ) | -9 | % | 2,335,882 | |||||||||||||
|
Other
assets
|
101,086 | 127,590 | (26,504 | ) | -21 | % | 101,410 | |||||||||||||
|
Total
assets
|
$ | 2,461,059 | $ | 2,733,547 | $ | (272,488 | ) | -10 | % | $ | 2,486,379 | |||||||||
|
Liabilities
and Stockholders' Equity:
|
||||||||||||||||||||
|
Demand
|
$ | 555,766 | $ | 542,215 | $ | 13,551 | 2 | % | $ | 565,543 | ||||||||||
|
Savings
and interest-bearing demand
|
445,878 | 422,838 | 23,040 | 5 | % | 442,892 | ||||||||||||||
|
Money
market
|
663,467 | 657,306 | 6,161 | 1 | % | 675,402 | ||||||||||||||
|
Time
deposits
|
275,411 | 524,525 | (249,114 | ) | -47 | % | 291,218 | |||||||||||||
|
Total
deposits
|
1,940,522 | 2,146,884 | (206,362 | ) | -10 | % | 1,975,055 | |||||||||||||
|
Borrowings
and subordinated debentures
|
219,599 | 314,299 | (94,700 | ) | -30 | % | 215,199 | |||||||||||||
|
Reserve
for unfunded commitments
|
850 | 928 | (78 | ) | -8 | % | 865 | |||||||||||||
|
Other
liabilities
|
27,528 | 22,378 | 5,150 | 23 | % | 20,553 | ||||||||||||||
|
Total
liabilities
|
2,188,499 | 2,484,489 | (295,990 | ) | -12 | % | 2,211,672 | |||||||||||||
|
Stockholders'
equity
|
272,560 | 249,058 | 23,502 | 9 | % | 274,707 | ||||||||||||||
|
Total
liabilities and stockholders' equity
|
$ | 2,461,059 | $ | 2,733,547 | $ | (272,488 | ) | -10 | % | $ | 2,486,379 | |||||||||
WEST
COAST BANCORP REPORTS FOURTH QUARTER 2010 RESULTS
January
28, 2011
Page 16
of 18
|
Table
17
|
||||||||||||||||||||
|
AVERAGE
BALANCE SHEETS
|
||||||||||||||||||||
|
(Dollars
in thousands)
|
Q4
|
Q4
|
Q3
|
Full
Year
|
Full
Year
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2010
|
2009
|
||||||||||||||||
|
Cash
and due from banks
|
$ | 51,044 | $ | 48,970 | $ | 50,087 | $ | 48,976 | $ | 47,433 | ||||||||||
|
Federal
funds sold
|
3,996 | 11,257 | 4,379 | 6,194 | 6,673 | |||||||||||||||
|
Interest-bearing
deposits in other banks
|
142,398 | 274,031 | 138,503 | 188,925 | 136,944 | |||||||||||||||
|
Total
cash and cash equivalents
|
197,438 | 334,258 | 192,969 | 244,095 | 191,050 | |||||||||||||||
|
Investment
securities
|
646,776 | 460,394 | 640,216 | 606,099 | 337,541 | |||||||||||||||
|
Total
loans
|
1,556,975 | 1,791,572 | 1,586,849 | 1,622,445 | 1,914,975 | |||||||||||||||
|
Allowance
for loan losses
|
(42,208 | ) | (41,356 | ) | (42,917 | ) | (42,003 | ) | (37,363 | ) | ||||||||||
|
Loans,
net
|
1,514,767 | 1,750,216 | 1,543,932 | 1,580,442 | 1,877,612 | |||||||||||||||
|
Total
interest earning assets
|
2,351,927 | 2,538,510 | 2,372,072 | 2,425,073 | 2,398,675 | |||||||||||||||
|
Other
assets
|
126,179 | 199,501 | 125,273 | 145,235 | 209,073 | |||||||||||||||
|
Total
assets
|
$ | 2,485,160 | $ | 2,744,369 | $ | 2,502,390 | $ | 2,575,871 | $ | 2,615,276 | ||||||||||
|
Demand
|
$ | 566,998 | $ | 539,547 | $ | 550,695 | $ | 540,280 | $ | 499,283 | ||||||||||
|
Savings
and interest-bearing demand
|
454,185 | 412,150 | 443,982 | 438,665 | 387,905 | |||||||||||||||
|
Money
market
|
670,580 | 641,770 | 667,150 | 659,542 | 617,881 | |||||||||||||||
|
Time
deposits
|
281,009 | 553,688 | 336,678 | 388,500 | 587,299 | |||||||||||||||
|
Total
deposits
|
1,972,772 | 2,147,155 | 1,998,505 | 2,026,987 | 2,092,368 | |||||||||||||||
|
Borrowings
and subordinated debentures
|
217,256 | 314,299 | 215,199 | 264,589 | 304,085 | |||||||||||||||
|
Total
interest bearing liabilities
|
1,623,030 | 1,921,907 | 1,663,009 | 1,751,296 | 1,897,170 | |||||||||||||||
|
Other
liabilities
|
18,858 | 22,812 | 17,164 | 18,486 | 19,044 | |||||||||||||||
|
Stockholders'
equity
|
276,274 | 260,103 | 271,522 | 265,809 | 199,779 | |||||||||||||||
|
Total
liabilities and stockholders' equity
|
$ | 2,485,160 | $ | 2,744,369 | $ | 2,502,390 | $ | 2,575,871 | $ | 2,615,276 | ||||||||||
WEST
COAST BANCORP REPORTS FOURTH QUARTER 2010 RESULTS
January
28, 2011
Page 17
of 18
The
following table presents information with respect to the Company’s allowance for
credit losses.
|
Table
18
|
||||||||
|
ALLOWANCE
FOR CREDIT LOSSES
|
||||||||
|
(Dollars
in thousands)
|
Full
Year
|
Full
Year
|
||||||
|
Dec
31.
|
Dec
31.
|
|||||||
|
2010
|
2009
|
|||||||
|
Allowance
for credit losses, beginning of period
|
$ | 39,418 | $ | 29,934 | ||||
|
Provision
for credit losses loans other than two-step loans
|
18,098 | 83,756 | ||||||
|
Provision
for credit losses two-step loans
|
554 | 6,301 | ||||||
|
Total
provision for credit losses
|
18,652 | 90,057 | ||||||
|
Loan
charge-offs:
|
||||||||
|
Commercial
|
5,229 | 22,411 | ||||||
|
Commercial
real estate construction
|
811 | 325 | ||||||
|
Residential
real estate construction
|
2,211 | 28,287 | ||||||
|
Two-step
residential construction
|
554 | 6,963 | ||||||
|
Total
real estate construction
|
3,576 | 35,575 | ||||||
|
Mortgage
|
2,430 | 10,022 | ||||||
|
Nonstandard
mortgage
|
2,224 | 3,666 | ||||||
|
Home
equity
|
2,807 | 3,394 | ||||||
|
Total
real estate mortgage
|
7,461 | 17,082 | ||||||
|
Commercial
real estate
|
1,321 | 5,383 | ||||||
|
Installment
and consumer
|
706 | 840 | ||||||
|
Overdraft
|
1,183 | 1,054 | ||||||
|
Total
loan charge-offs
|
19,476 | 82,345 | ||||||
|
Loan
recoveries:
|
||||||||
|
Commercial
|
1,073 | 1,005 | ||||||
|
Commercial
real estate construction
|
- | - | ||||||
|
Residential
real estate construction
|
697 | 44 | ||||||
|
Two-step
residential construction
|
- | 241 | ||||||
|
Total
real estate construction
|
697 | 285 | ||||||
|
Mortgage
|
247 | 11 | ||||||
|
Nonstandard
mortgage
|
5 | 1 | ||||||
|
Home
equity
|
128 | 35 | ||||||
|
Total
real estate mortgage
|
380 | 47 | ||||||
|
Commercial
real estate
|
28 | 151 | ||||||
|
Installment
and consumer
|
92 | 65 | ||||||
|
Overdraft
|
203 | 219 | ||||||
|
Total
loan recoveries
|
2,473 | 1,772 | ||||||
|
Net
charge-offs
|
17,003 | 80,573 | ||||||
|
Total
allowance for credit losses
|
$ | 41,067 | $ | 39,418 | ||||
|
Components
of allowance for credit losses:
|
||||||||
|
Allowance
for loan losses
|
$ | 40,217 | $ | 38,490 | ||||
|
Reserve
for unfunded commitments
|
850 | 928 | ||||||
|
Total
allowance for credit losses
|
$ | 41,067 | $ | 39,418 | ||||
|
Net
loan charge-offs to average loans
|
1.05 | % | 4.21 | % | ||||
WEST
COAST BANCORP REPORTS FOURTH QUARTER 2010 RESULTS
January
28, 2011
Page 18
of 18
The
following table presents information about the Company’s total delinquent
loans.
|
Table
19
|
||||||||||||
|
DELINQUENT
LOANS 30-89 DAYS PAST DUE AS A % OF LOAN CATEGORY
|
||||||||||||
|
(Dollars
in thousands)
|
Dec.
31,
|
Dec.
31,
|
Sept.
30,
|
|||||||||
|
2010
|
2009
|
2010
|
||||||||||
|
Commercial
loans
|
0.02 | % | 0.31 | % | 0.36 | % | ||||||
|
Real
estate construction loans
|
0.00 | % | 0.61 | % | 0.00 | % | ||||||
|
Real
estate mortgage loans
|
0.59 | % | 0.71 | % | 0.43 | % | ||||||
|
Commercial
real estate loans
|
0.07 | % | 0.46 | % | 0.34 | % | ||||||
|
Installment
and other consumer loans
|
0.34 | % | 0.32 | % | 0.25 | % | ||||||
|
Total
delinquent loans 30-89 days past due
|
$ | 2,721 | $ | 8,427 | $ | 5,502 | ||||||
|
Delinquent
loans to total loans
|
0.18 | % | 0.49 | % | 0.35 | % | ||||||
The
following table presents information regarding common shares outstanding at
December 31, 2010 on an actual and diluted basis.
|
Table
20
|
||||
|
COMMON
SHARE AND DILUTIVE SHARE INFORMATION
|
||||
|
(Shares
in thousands)
|
||||
|
Number
|
||||
|
of
shares
|
||||
|
Common
shares outstanding at December 31, 2010
|
94,792 | |||
|
Common
shares issuable on conversion of series B preferred stock
1
|
6,066 | |||
|
Dilutive
impact of warrants 2
3
|
3,027 | |||
|
Dilutive
impact of stock options and restricted stock 3
|
201 | |||
|
Total
potential dilutive shares
4
|
104,086 | |||
|
1
121,328 shares of series B preferred stock outstanding at December
31, 2010.
|
||||
|
2
Warrants to purchase 240,000 shares at a price of $100 per series B
preferred share outstanding at December 31, 2010.
|
||||
|
3
The estimated dilutive impact of warrants, options, and restricted
stock is shown. These figures are calculated
|
||||
|
under
the treasury method utilizing an average stock price of $2.67 for the
period and do not reflect the number
|
||||
|
of
common shares that would be issued if securities were exercised in
full.
|
||||
|
4
Potential dilutive shares is a non-GAAP figure and not the weighted
average diluted shares calculated in
|
||||
|
accordance
with GAAP.
|
||||