NEWS RELEASE
| FOR MORE INFORMATION CONTACT: | Hal Brown | Michael A. Reynolds | ||
| CEO | Executive Vice President/CFO | |||
| 541 686-8685 | 541 686-8685 | |||
| http://www.therightbank.com | ||||
E-mail: banking@therightbank.com | ||||
FOR IMMEDIATE RELEASE
PACIFIC CONTINENTAL REPORTS SECOND QUARTER 2009 RESULTS
Increased Loan Loss Provision, Strong Growth in Core Deposits,
Stable Net Interest Margin and Increased Core Earnings Characterize the Quarter
EUGENE, Ore., July 22, 2009 ---Pacific Continental Corporation (NASDAQ: PCBK), the bank holding company for Pacific Continental Bank, today reported financial results for the second quarter 2009.
Net loss for the second quarter 2009 was $8.1 million, compared to net income of $3.0 million for the second quarter 2008. Net loss per diluted share was $0.63 for the second quarter 2009, compared to net income of $0.25 per diluted share reported for the prior year second quarter. Operating revenue, which consists of net interest income plus noninterest income, was $14.6 million during the second quarter 2009, up $1.3 million or 9.8% over the $13.3 million reported during the second quarter 2008. Contributing to the improvement in operating revenue was a 12.0% quarter-over-quarter growth in average earning assets and a relatively stable net interest margin. The Company’s total risk-based capital ratio, a regulator defined indicator of strength, was 11.71% at June 30, 2009, which exceeds the “well- capitalized” designation of 10.00%.
For the first six months of 2009 the net loss was $5.2 million compared to net income of $6.1 million for the same period during 2008. Net loss per diluted share was $0.40 for the first six months of 2009, compared to net income of $0.51 per diluted share for the first six months of 2008. Operating revenue was $28.8 million for the first six months of 2009, which was an increase of $2.8 million or 10.8% over the amount reported for the first six months of 2008.
During the second quarter 2009, the Company continued to expand upon the strong core deposit growth it experienced during the first quarter of the year. At June 30, 2009, outstanding core deposits totaled $705.9 million, up $38.4 million over outstanding core deposits at March 31, 2009, and for the first six months of 2009, core deposits were up $90.1 million, an annualized growth rate of 30%. Second quarter 2009 core deposits averaged $681.2 million, an increase of $37.3 million over first quarter 2009 average core deposits. Loan growth has abated significantly from the prior year’s activity reflecting weak economic conditions and planned contraction in the residential construction portfolio. At June 30, 2009, outstanding loans declined by approximately $2.5 million from the end of first quarter 2009 and have grown $5.2 million during the first six months of the current year.
“While we did not achieve the financial results typical of Pacific Continental, our business fundamentals remain strong as demonstrated by our growth in core deposits and stable net interest margin,” said Hal Brown, chief executive officer. “We continue to employ our third party recognized credit practices in evaluating our loan portfolio, and at this time we see no systemic credit issues. However, economic conditions remain uncertain especially as they relate to the residential real estate markets. We remain committed to our business model despite current conditions and I am confident that this discipline will add further value to our franchise and ultimately to our shareholders,” added Brown.
Earnings before loan loss provisions and taxes continue to grow reflecting increased earnings power. This increase is apparent despite the special FDIC assessment and premium increases, interest reversals and other real estate valuation expenses recognized during the quarter.
As reported in a press release dated June 30, 2009, the second quarter loss was the result of continuing weakness in the Pacific Northwest residential real estate markets contributing to a $19.2 million provision for loan losses and $11.7 million in loan write-downs recognized during the quarter. The increased provision was primarily isolated to the residential construction portfolio and specifically associated with three credits: two lot development projects in the Seattle and Portland markets, both of which were discussed in the Company’s first quarter conference call, and a recently completed office building also in Seattle. The Company continued to maintain its unallocated allowance for loan losses, which was above 7% at quarter end. The allowance for loan losses to total loans increased to 1.94% as of June 30, 2009 from 1.16% at March 31, 2009.
Nonperforming assets at June 30, 2009, were $32.2 million and increased $16.0 million from March 31, 2009, as suggested in the Company’s first quarter 2009 conference call. Nonperforming assets represent 2.85% of total assets as compared to 1.45% of period-end assets at March 31, 2009. The increase in nonperforming assets in second quarter 2009 was primarily attributable to the loans described earlier in this release. Nonperforming assets at June 30, 2009 consist of $29.6 million of loans on nonaccrual status, net of government guarantees, and $2.6 million in other real estate owned. The other real estate owned consists primarily of completed consumer residential construction properties and individual residential building lots.
The second quarter 2009 net interest margin was 5.14%, down 10 basis points from second quarter 2008. On a linked-quarter basis, and consistent with comments made during the Company’s first quarter and year-end conference call, the second quarter 2009 net interest margin was down 9 basis points from the prior quarter, as interest reversals on loans of approximately $454 thousand negatively affected the current quarter margin.
Noninterest expense for second quarter 2009 was approximately $8.6 million, up $600 thousand over first quarter 2009 expenses. On a linked-quarter basis, the second quarter 2009 expense increase was primarily attributable to the $510 thousand FDIC special assessment, an increase of $150 thousand in regular FDIC premiums, and an increase of approximately $392 thousand in other real estate expense.
Second quarter highlights:
| · | Outstanding core deposit growth of approximately $38.4 million and achieved annualized growth rate of 30% since year-end 2008. |
| · | Risk based capital ratio of 11.71%, above the “well-capitalized” designation. |
| · | Increased allowance for loan losses as a percentage of outstanding loans to 1.94%. |
| · | Maintained stable net interest margin of 5.14%. |
| · | Recognized by The Seattle Times as one of the top publicly traded companies in the Northwest and the highest-rated bank in Oregon in the newspaper's 18th annual "Northwest 100" ranking of public companies. |
Conference Call and Audio Webcast:
Management will conduct a live conference call and audio Webcast for interested parties relating to its results for the second quarter 2009, on Thursday, July 23rd, 2009, at 2:00 p.m. Eastern Time / 11:00 a.m. Pacific Time . To listen to the conference call, interested parties should call (866) 292-1418. The Webcast will be available via Pacific Continental’s Web site (http://www.therightbank.com/). To listen to the live audio Webcast, click on the Webcast presentation link on the Company’s home page a few minutes before the presentation is scheduled to begin.
An audio Webcast replay will be available within twenty-four hours following the live Webcast and archived for one year on the Pacific Continental Website. Any questions regarding the conference call presentation or Webcast should be directed to Maecey Castle, vice president and director of corporate communications, at (541) 686-8685.
About Pacific Continental Bank
Pacific Continental Bank, the operating subsidiary of Pacific Continental Corporation, delivers highly personalized services through fourteen banking offices in Oregon and Washington. Pacific Continental, with $1.1 billion in assets, has established one of the most unique and attractive metropolitan branch networks in the Pacific Northwest with offices in three of the region's largest markets including Seattle, Portland, and Eugene. Pacific Continental targets the banking needs of community-based businesses, professional service providers and nonprofit organizations; additionally the bank provides private banking services. Pacific Continental has rewarded its shareholders with consecutive cash dividends for twenty-five years.
Since its founding in 1972 Pacific Continental Bank has been honored with numerous awards from business and community organizations: in June 2009, for the ninth consecutive year, The Seattle Times named Pacific Continental to its “Northwest 100” ranking of top publicly rated companies in the Pacific Northwest; in February 2009, Oregon Business magazine recognized Pacific Continental as the top ranked financial institution to work for in the publication’s large company category, marking it the ninth consecutive year Pacific Continental has been recognized as one of the Top 100 Companies to Work for In Oregon; and in December 2008, for the second consecutive year, the Portland Business Journal recognized Pacific Continental Bank as One of the Ten Most Admired Companies in Oregon.
Pacific Continental Corporation's shares are listed on the NASDAQ Global Select Market under the symbol "PCBK” and are a component of the Russell 2000 Index. Supplementary information about Pacific Continental can be found online at www.therightbank.com
Forward-Looking Statement Safe Harbor
This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected, including but not limited to the following: the high concentration of loans of the company's banking subsidiary in commercial and residential real estate lending; adverse economic trends in the United States and the markets we serve affecting the Bank’s borrower base; a continued decline in the housing and real estate market; a continued increase in unemployment or sustained high levels of unemployment; continued erosion or sustained low levels of consumer confidence; changes in the regulatory environment and increases in associated costs, particularly ongoing compliance expenses and resource allocation needs; vendor quality and efficiency; the company's ability to control risks associated with rapidly changing technology both from an internal perspective as well as for external providers; increased competition among financial institutions; fluctuating interest rate environments; a tightening of available credit, and similar matters. Readers are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date on which they are made and reflect management’s current estimates, projections, expectations and beliefs. Pacific Continental Corporation undertakes no obligation to publicly revise or update the forward-looking statements to reflect events or circumstances that arise after the date of this release. This statement is included for the express purpose of invoking PSLRA's safe harbor provisions.
| CONSOLIDATED INCOME STATEMENTS | ||||||||||||||||
| Amounts in $ 000's, Except for Per Share Data | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Interest and dividend income | ||||||||||||||||
| Loans | $ | 15,329 | $ | 15,461 | $ | 30,650 | $ | 31,162 | ||||||||
| Securities | 1,225 | 691 | 2,162 | 1,423 | ||||||||||||
| Dividends on Federal Home Loan Bank stock | - | 60 | - | 123 | ||||||||||||
| Federal funds sold & Interest-bearing deposits with banks | 1 | 3 | 2 | 13 | ||||||||||||
| 16,555 | 16,215 | 32,814 | 32,721 | |||||||||||||
| Interest expense | ||||||||||||||||
| Deposits | 2,308 | 2,184 | 4,599 | 5,148 | ||||||||||||
| Federal Home Loan Bank & Federal Reserve borrowings | 705 | 1,514 | 1,372 | 3,089 | ||||||||||||
| Junior subordinated debentures | 127 | 125 | 252 | 246 | ||||||||||||
| Federal funds purchased | 28 | 234 | 53 | 464 | ||||||||||||
| 3,168 | 4,057 | 6,276 | 8,947 | |||||||||||||
| Net interest income | 13,387 | 12,158 | 26,538 | 23,774 | ||||||||||||
| Provision for loan losses | 19,200 | 925 | 20,700 | 1,500 | ||||||||||||
| Net interest income (loss) after provision for loan losses | (5,813 | ) | 11,233 | 5,838 | 22,274 | |||||||||||
| Noninterest income | ||||||||||||||||
| Service charges on deposit accounts | 476 | 402 | 942 | 796 | ||||||||||||
| Other fee income, principally bankcard | 457 | 480 | 849 | 908 | ||||||||||||
| Loan servicing fees | 19 | 22 | 37 | 48 | ||||||||||||
| Mortgage banking income | 176 | 126 | 268 | 219 | ||||||||||||
| Other noninterest income | 68 | 133 | 121 | 209 | ||||||||||||
| 1,196 | 1,163 | 2,217 | 2,180 | |||||||||||||
| Noninterest expense | ||||||||||||||||
| Salaries and employee benefits | 4,227 | 4,684 | 9,098 | 9,035 | ||||||||||||
| Premises and equipment | 1,091 | 969 | 2,088 | 1,972 | ||||||||||||
| Bankcard processing | 129 | 143 | 246 | 278 | ||||||||||||
| Business development | 426 | 327 | 914 | 651 | ||||||||||||
| FDIC insurance assessment | 950 | 131 | 1,217 | 258 | ||||||||||||
| Other real estate expense | 479 | 32 | 565 | 30 | ||||||||||||
| Other noninterest expense | 1,344 | 1,177 | 2,568 | 2,406 | ||||||||||||
| 8,646 | 7,463 | 16,696 | 14,630 | |||||||||||||
| Income (loss) before provision for income taxes | (13,263 | ) | 4,933 | (8,641 | ) | 9,824 | ||||||||||
| Provision (benefit) for income taxes | (5,134 | ) | 1,926 | (3,459 | ) | 3,738 | ||||||||||
| Net income (loss) | $ | (8,129 | ) | $ | 3,007 | $ | (5,182 | ) | $ | 6,086 | ||||||
| Earnings (loss) per share | ||||||||||||||||
| Basic | $ | (0.63 | ) | $ | 0.25 | $ | (0.40 | ) | $ | 0.51 | ||||||
| Diluted | $ | (0.63 | ) | $ | 0.25 | $ | (0.40 | ) | $ | 0.51 | ||||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic | 12,873 | 11,962 | 12,842 | 11,951 | ||||||||||||
| Common stock equivalents | ||||||||||||||||
| attributable to stock-based awards | - | 67 | - | 66 | ||||||||||||
| Diluted | 12,873 | 12,029 | 12,842 | 12,017 | ||||||||||||
| PERFORMANCE RATIOS | ||||||||||||||||
| Return on average assets | -2.91 | % | 1.20 | % | -0.94 | % | 1.24 | % | ||||||||
| Return on average equity (book) | -25.42 | % | 11.04 | % | -8.21 | % | 11.13 | % | ||||||||
| Return on average equity (tangible) (1) | -30.93 | % | 13.99 | % | -10.01 | % | 14.08 | % | ||||||||
| Net interest margin | 5.14 | % | 5.24 | % | 5.18 | % | 5.24 | % | ||||||||
| Efficiency ratio (2) | 59.29 | % | 56.02 | % | 58.06 | % | 56.37 | % | ||||||||
| PACIFIC CONTINENTAL CORPORATION | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| Amounts in $ 000’s | ||||||||
| (Unaudited) | ||||||||
| June 30, | June 30, | |||||||
| 2009 | 2008 | |||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 23,851 | $ | 30,837 | ||||
| Federal funds sold | 51 | - | ||||||
| Interest-bearing deposits with banks | 215 | 1,118 | ||||||
| Total cash and cash equivalents | 24,117 | 31,955 | ||||||
| Securities available-for-sale | 85,653 | 51,785 | ||||||
| Loans held for sale | 2,516 | - | ||||||
| Loans, less allowance for loan losses | 943,541 | 887,570 | ||||||
| Interest receivable | 4,027 | 4,047 | ||||||
| Federal Home Loan Bank stock | 10,652 | 9,198 | ||||||
| Property, net of accumulated depreciation | 20,306 | 20,967 | ||||||
| Goodwill and other intangible assets | 22,792 | 23,015 | ||||||
| Deferred tax asset | 4,572 | 2,397 | ||||||
| Taxes receivable | 6,835 | - | ||||||
| Other real estate owned | 2,659 | 3,030 | ||||||
| Other assets | 2,568 | 1,807 | ||||||
| Total assets | $ | 1,130,238 | $ | 1,035,771 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Deposits | ||||||||
| Noninterest-bearing demand | $ | 190,937 | $ | 181,560 | ||||
| Savings and interest-bearing checking | 431,203 | 378,549 | ||||||
| Time $100,000 and over | 66,945 | 61,867 | ||||||
| Other time | 105,669 | 52,939 | ||||||
| Total deposits | 794,754 | 674,915 | ||||||
| Federal funds purchased | 25,000 | 18,770 | ||||||
| Federal Home Loan Bank and Federal Reserve borrowings | 178,115 | 219,770 | ||||||
| Junior subordinated debentures | 8,248 | 8,248 | ||||||
| Accrued interest and other payables | 4,761 | 2,683 | ||||||
| Total liabilities | 1,010,878 | 924,386 | ||||||
| Stockholders' equity | ||||||||
| Common stock, 25,000 shares authorized | 90,404 | 78,582 | ||||||
| Retained earnings | 30,009 | 33,317 | ||||||
| Accumulated other comprehensive loss | (1,053 | ) | (514 | ) | ||||
| 119,360 | 111,385 | |||||||
| Total liabilities and stockholders’ equity | $ | 1,130,238 | $ | 1,035,771 | ||||
| CAPITAL RATIOS | ||||||||
| Total capital (to risk weighted assets) | 11.71 | % | 10.69 | % | ||||
| Tier I capital (to risk weighted assets) | 10.45 | % | 9.68 | % | ||||
| Tier I capital (to leverage assets) | 9.59 | % | 9.80 | % | ||||
| Tangible common equity (to tangible assets) | 8.54 | % | 8.53 | % | ||||
| Tangible common equity (to risk weighted assets) | 9.57 | % | 8.87 | % | ||||
| OTHER FINANCIAL DATA | ||||||||
| Shares outstanding at end of period | 12,873 | 11,974 | ||||||
| Stockholder's equity (tangible) (1) | $ | 96,568 | $ | 88,370 | ||||
| Book value | $ | 9.27 | $ | 9.30 | ||||
| Tangible book value | $ | 7.50 | $ | 7.38 | ||||
| SELECTED OTHER FINANCIAL INFORMATION AND RATIOS | ||||||||||||||||||||
| Amounts in $ 000’s | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||||||
| LOANS BY TYPE | ||||||||||||||||||||
| Real estate secured loans: | ||||||||||||||||||||
| Permanent Loans: | ||||||||||||||||||||
| Multifamily residential | $ | 69,115 | $ | 46,472 | ||||||||||||||||
| Residential 1-4 family | 86,350 | 60,629 | ||||||||||||||||||
| Owner-occupied commercial | 202,594 | 183,623 | ||||||||||||||||||
| Non-owner-occupied commercial | 163,972 | 138,907 | ||||||||||||||||||
| Total permanent real estate loans | 522,031 | 429,631 | ||||||||||||||||||
| Construction Loans: | ||||||||||||||||||||
| Multifamily residential | 24,201 | 28,915 | ||||||||||||||||||
| Residential 1-4 family | 59,635 | 99,083 | ||||||||||||||||||
| Commercial real estate | 48,925 | 48,580 | ||||||||||||||||||
| Commercial bare land and acquisition & development | 60,736 | 52,942 | ||||||||||||||||||
| Residential bare land and acquisition & development | 2,890 | 17,952 | ||||||||||||||||||
| Other | 2,339 | 5,177 | ||||||||||||||||||
| Total construction real estate loans | 198,726 | 252,649 | ||||||||||||||||||
| Total real estate loans | 720,757 | 682,280 | ||||||||||||||||||
| Commercial loans | 229,226 | 203,429 | ||||||||||||||||||
| Consumer loans | 7,619 | 7,644 | ||||||||||||||||||
| Other loans | 6,122 | 5,768 | ||||||||||||||||||
| Gross loans | 963,724 | 899,121 | ||||||||||||||||||
| Deferred loan origination fees | (1,503 | ) | (1,655 | ) | ||||||||||||||||
| 962,221 | 897,466 | |||||||||||||||||||
| Allowance for loan losses | (18,680 | ) | (9,896 | ) | ||||||||||||||||
| $ | 943,541 | $ | 887,570 | |||||||||||||||||
| Real estate loans held for sale | $ | 2,516 | $ | - | ||||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
| Balance at beginning of period | $ | 11,198 | $ | 9,145 | $ | 10,980 | $ | 8,675 | ||||||||||||
| Provision for loan losses | 19,200 | 925 | 20,700 | 1,500 | ||||||||||||||||
| Loan charge offs | (11,730 | ) | (293 | ) | (13,050 | ) | (413 | ) | ||||||||||||
| Loan recoveries | 12 | 119 | 50 | 134 | ||||||||||||||||
| Net charge offs | (11,718 | ) | (174 | ) | (13,000 | ) | (279 | ) | ||||||||||||
| Balance at end of period | $ | 18,680 | $ | 9,896 | $ | 18,680 | $ | 9,896 | ||||||||||||
| NONPERFORMING ASSETS | ||||||||||||||||||||
| Nonaccrual loans | ||||||||||||||||||||
| Real estate secured loans: | ||||||||||||||||||||
| Permanent Loans: | ||||||||||||||||||||
| Multifamily residential | $ | - | $ | - | ||||||||||||||||
| Residential 1-4 family | 2,421 | 2,903 | ||||||||||||||||||
| Owner-occupied commercial | 1,559 | - | ||||||||||||||||||
| Non-owner-occupied commercial | - | - | ||||||||||||||||||
| Total permanent real estate loans | 3,980 | 2,903 | ||||||||||||||||||
| Construction Loans: | ||||||||||||||||||||
| Multifamily residential | - | - | ||||||||||||||||||
| Residential 1-4 family | 3,665 | - | ||||||||||||||||||
| Commercial real estate | 8,478 | - | ||||||||||||||||||
| Commercial bare land and acquisition & development | 9,640 | 1,660 | ||||||||||||||||||
| Residential bare land and acquisition & development | - | - | ||||||||||||||||||
| Other | - | - | ||||||||||||||||||
| Total construction real estate loans | 21,783 | 1,660 | ||||||||||||||||||
| Total real estate loans | 25,763 | 4,563 | ||||||||||||||||||
| Commercial loans | 4,061 | 593 | ||||||||||||||||||
| Consumer loans | 15 | - | # | |||||||||||||||||
| Other loans | - | - | ||||||||||||||||||
| Total nonaccrual loans | 29,839 | 5,156 | ||||||||||||||||||
| 90 days past due and accruing interest | - | - | ||||||||||||||||||
| Total nonperforming loans | 29,839 | 5,156 | ||||||||||||||||||
| Nonperforming loans guaranteed by government | (275 | ) | (546 | ) | ||||||||||||||||
| Net nonperforming loans | 29,564 | 4,610 | ||||||||||||||||||
| Foreclosed assets | 2,659 | 3,030 | ||||||||||||||||||
| Total nonperforming assets, net of guaranteed loans | $ | 32,223 | $ | 7,640 | ||||||||||||||||
| LOAN QUALITY RATIOS | ||||||||||||||||||||
| Allowance for loan losses as a percentage of total loans | ||||||||||||||||||||
| outstanding, excluding of loans held for sale | 1.94 | % | 1.10 | % | ||||||||||||||||
| Allowance for loan losses as a percentage of total | ||||||||||||||||||||
| nonperforming loans, net of government guarantees | 63.18 | % | 214.66 | % | ||||||||||||||||
| Net loan charge offs (recoveries) as a percentage of | ||||||||||||||||||||
| average loans, annualized | 4.86 | % | 0.08 | % | 2.72 | % | 0.07 | % | ||||||||||||
| Nonperforming loans as a percentage of total loans | 3.07 | % | 0.51 | % | ||||||||||||||||
| Nonperforming assets as a percentage of total assets | 2.85 | % | 0.74 | % | ||||||||||||||||
| SELECTED OTHER FINANCIAL INFORMATION AND RATIOS (Continued) | ||||||||||||||||
| Amounts in $ 000’s | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| BALANCE SHEET AVERAGES | ||||||||||||||||
| Loans | $ | 966,130 | $ | 878,354 | $ | 963,789 | $ | 857,856 | ||||||||
| Allowance for loan losses | (14,095 | ) | (9,386 | ) | (12,612 | ) | (9,123 | ) | ||||||||
| Loans, net of allowance | 952,035 | 868,968 | 951,177 | 848,733 | ||||||||||||
| Securities and short-term deposits | 93,090 | 63,765 | 81,760 | 64,484 | ||||||||||||
| Earning assets | 1,045,125 | 932,733 | 1,032,937 | 913,217 | ||||||||||||
| Non-interest-earning assets | 75,016 | 71,818 | 75,265 | 70,988 | ||||||||||||
| Assets | $ | 1,120,141 | $ | 1,004,551 | $ | 1,108,202 | $ | 984,205 | ||||||||
| Interest-bearing core deposits (3) | $ | 503,616 | $ | 424,288 | $ | 491,182 | $ | 435,141 | ||||||||
| Non-interest-bearing core deposits (3) | 177,579 | 169,850 | 171,482 | 168,571 | ||||||||||||
| Core deposits (3) | 681,195 | 594,138 | 662,664 | 603,712 | ||||||||||||
| Non-core interest-bearing deposits | 78,248 | 43,077 | 84,760 | 40,664 | ||||||||||||
| Deposits | 759,443 | 637,215 | 747,424 | 644,376 | ||||||||||||
| Borrowings | 229,255 | 254,185 | 229,627 | 225,768 | ||||||||||||
| Other non-interest-bearing liabilities | 3,156 | 3,637 | 3,896 | 4,091 | ||||||||||||
| Liabilities | 991,854 | 895,037 | 980,947 | 874,235 | ||||||||||||
| Stockholders' equity (book) | 128,287 | 109,514 | 127,255 | 109,970 | ||||||||||||
| Liabilities and equity | $ | 1,120,141 | $ | 1,004,551 | $ | 1,108,202 | $ | 984,205 | ||||||||
| Stockholders' equity (tangible) (1) | $ | 105,408 | $ | 86,468 | $ | 104,404 | $ | 86,896 | ||||||||
| SELECTED MARKET DATA | ||||||||||||||||
| Eugene market loans, net of fees | $ | 246,319 | $ | 224,276 | ||||||||||||
| Portland market loans, net of fees | 439,963 | 412,566 | ||||||||||||||
| Seattle market loans, net of fees | 275,939 | 260,624 | ||||||||||||||
| Total loans, net of fees | $ | 962,221 | $ | 897,466 | ||||||||||||
| Eugene market core deposits (3) | $ | 449,421 | $ | 406,300 | ||||||||||||
| Portland market core deposits (3) | 150,141 | 111,817 | ||||||||||||||
| Seattle market core deposits (3) | 106,341 | 88,121 | ||||||||||||||
| Total core deposits (3) | 705,903 | 606,238 | ||||||||||||||
| Other deposits | 88,851 | 68,677 | ||||||||||||||
| Total | $ | 794,754 | $ | 674,915 | ||||||||||||
| Eugene market core deposits, average (3) | $ | 442,610 | $ | 396,127 | $ | 434,136 | $ | 402,976 | ||||||||
| Portland market core deposits, average (3) | 138,424 | 110,893 | 126,136 | 111,288 | ||||||||||||
| Seattle market core deposits, average (3) | 100,161 | 87,118 | 102,392 | 89,448 | ||||||||||||
| Total core deposits, average (3) | 681,195 | 594,138 | 662,664 | 603,712 | ||||||||||||
| Other deposits, average | 78,248 | 43,077 | 84,760 | 40,664 | ||||||||||||
| Total | $ | 759,443 | $ | 637,215 | $ | 747,424 | $ | 644,376 | ||||||||
| NET INTEREST MARGIN RECONCILIATION | ||||||||||||||||
| Yield on average loans | 6.46 | % | 7.16 | % | 6.50 | % | 7.38 | % | ||||||||
| Yield on average securities | 5.28 | % | 4.76 | % | 5.34 | % | 4.86 | % | ||||||||
| Yield on average earning assets | 6.35 | % | 6.99 | % | 6.41 | % | 7.21 | % | ||||||||
| Rate on average interest-bearing core deposits | 1.57 | % | 1.70 | % | 1.55 | % | 1.99 | % | ||||||||
| Rate on average interest-bearing non-core deposits | 1.74 | % | 3.67 | % | 1.94 | % | 4.12 | % | ||||||||
| Rate on average interest-bearing deposits | 1.59 | % | 1.88 | % | 1.61 | % | 2.18 | % | ||||||||
| Rate on average borrowings | 1.50 | % | 2.96 | % | 1.47 | % | 3.38 | % | ||||||||
| Cost of interest-bearing funds | 1.57 | % | 2.26 | % | 1.57 | % | 2.56 | % | ||||||||
| Interest rate spread | 4.78 | % | 4.73 | % | 4.84 | % | 4.65 | % | ||||||||
| Net interest margin | 5.14 | % | 5.24 | % | 5.18 | % | 5.24 | % | ||||||||
| (1) Tangible equity excludes goodwill and core deposit intangible related to acquisitions. | ||||||||||||||||
| (2) Efficiency ratio is noninterest expense divided by operating revenues. Operating revenues are net interest income | ||||||||||||||||
| plus noninterest income. | ||||||||||||||||
| (3) Core deposits include all demand, savings, & interest checking accounts, plus all local time deposits including local | ||||||||||||||||
| time deposits in excess of $100,000. | ||||||||||||||||