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 THIRD QUARTER 2009 RESULTS
Profitability led by Exceptional Core Deposit Growth, Strong Net Interest Margin, Expense Control,
and a Contraction in Nonperforming Assets Characterize the Quarter.
EUGENE, Ore., October 8, 2009 ---Pacific Continental Corporation (NASDAQ: PCBK), the bank holding company for Pacific Continental Bank, today reported financial results for the current quarter and nine months ended September 30, 2009.
“Business fundamentals improved for the quarter as indicated by growth in core earnings, a strong and stable net interest margin, and exceptional growth in core deposits all of which contributed to a return to profitability,” said Hal Brown, chief executive officer. “These strong fundamentals should contribute to improved future profitability for the Company and we believe demonstrate the effectiveness of our business model and strategies,” added Brown.
Net income for the third quarter 2009 was $279 thousand, compared to net income of $3.0 million for the third quarter 2008. Net income per diluted share was $0.02 for the third quarter 2009, compared to net income of $0.25 per diluted share reported for the prior year third quarter. For the first nine months of 2009 the net loss was $4.9 million compared to net income of $9.1 million for the same period during 2008. Net loss per diluted share was $0.38 for the first nine months of 2009, compared to net income of $0.76 per diluted share for the first nine months of 2008.
Core earnings, revenue growth, net interest margin and expense control drive improved efficiency
Core earnings (“earnings before loan loss provisions and taxes”) expanded significantly reflecting a continued increase in the Company’s earnings power. Core earnings for the third quarter were $7.8 million an increase of 33.5% over the $5.9 million reported for the similar period in 2008. This increase is the result of both increased operating revenue and continued expense control while achieving an expansion in an already stable and strong net interest margin. This result was achieved despite increased FDIC premium rates.
Operating revenue, which consists of net interest income plus noninterest income, was $14.8 million during the third quarter 2009, up $1.5 million or 11.1% over the $13.4 million reported during the third quarter 2008. Contributing to the improvement in operating revenue was an 8.9% quarter-over-quarter growth in average earning assets and an improvement in the net interest margin to 5.19%, up 11 basis points over third quarter 2008. On a linked-quarter basis, the third quarter 2009 net interest margin was up 5 basis points from the prior quarter. Interest reversals on approximately $197 thousand for loans placed on nonaccrual status during the quarter negatively impacted the net interest margin by approximately 7 basis points.
Noninterest expense for third quarter 2009 was $7.0 million, a decrease of $483 thousand from the third quarter 2008, and on a linked quarter basis was $1.6 million lower than the second quarter 2009 expenses. Comparing the two most recent quarters, the third quarter 2009 expense decline was primarily attributable to lower FDIC assessments as the second quarter included a one-time $510 thousand special assessment, a $447 thousand decrease in other real estate expense, and a $417 thousand decline in personnel expense, primarily related to lower accruals for incentive compensation and for the Company’s self-insured medical plan. Combined, the Company’s revenue growth and active expense management resulted in an efficiency ratio of 47.31% for the third quarter 2009 compared to 56.16% for the third quarter 2008.
Exceptionally strong core deposit growth
During the third quarter 2009, the Company continued the strong core deposit growth experienced during the first half of the year. At September 30, 2009, period-end core deposits totaled $751.7 million, up $45.8 million over period-end core deposits at June 30, 2009, and for the first nine months of 2009 core deposits were up $135.8 million, an annualized growth rate of 29.5%. Quarterly average core deposit figures, a measure which reduces daily deposit volatility, show similar strong results with third quarter 2009 average core deposits of $724.8 million, an
increase of $43.6 million over the second quarter 2009 average. Deposit growth occurred in all three of the bank’s primary markets, but was most evident in Portland and Eugene.
Loan growth continued to abate from the prior year’s activity reflecting continuing weak economic conditions and management’s planned contraction in the residential construction and land development portfolios. Since the end of the third quarter 2008, these portfolios have contracted $47.0 million, or 39% to $73.7 million, and now constitute 7.7% of total gross loans versus 13.0% at the end of third quarter 2008. At September 30, 2009, period-end gross loans declined by approximately $3.1 million from the end of the second quarter 2009 and have increased just $2.1 million during the first nine months of the current year.
Improvement in nonperforming assets, provisioning, and loan statistics
Total nonperforming assets at September 30, 2009 were $30.1 million, a decrease of $2.1 million from June 30, 2009. Nonperforming assets represent 2.62% of total assets at September 30, 2009 compared to 2.85% at the end of the prior quarter. The quarter’s decline in nonperforming assets was due to the successful resolution of a number of problem loans, the sale of other real estate assets, and recognized charge-offs on certain other loans. Nonperforming assets at September 30, 2009 consist of $25.9 million of loans on nonaccrual status and $4.2 million in other real estate owned. Nonperforming loans continue to be centered in the Company’s residential construction and land development portfolios. Other real estate owned consists primarily of completed consumer residential construction properties and individual residential building lots.
“Through the concerted efforts and active management by our employees, we were successful in reducing the level of our nonperforming assets and are cautiously optimistic that these trends may continue, recognizing however the uncertain economic conditions prevailing in the real estate markets in which we operate,” said Roger Busse, president and chief operating officer. “Our proactive and timely approach to dealing with loan problems together with our solid underwriting practices and focus on quality portfolio niche segments, such as dental lending, will continue to differentiate us in today’s challenging environment,” added Busse.
As a result of continued weakness in the Pacific Northwest economy and residential real estate markets, the Company’s third quarter 2009 provision for loan losses remained elevated but significantly lower than the previous quarter. The third quarter provision for loan losses was $8.3 million, compared to $19.2 million in second quarter 2009. During the third quarter, the Company recognized net loan charge offs of $8.6 million. The Company continued to maintain a historically high unallocated allowance for loan losses; and at September 30, 2009, the unallocated portion of the allowance was 8% compared to 7% at June 30, 2009. The allowance for loan losses as a percentage of outstanding loans at September 30, 2009 was 1.91%, compared to 1.94% and 1.15% at June 30, 2009 and September 30, 2008, respectively.
Improved capital levels
The Company’s total risk-based capital ratio, a regulator defined indicator of strength, was 11.87% at September 30, 2009, which exceeds the “well- capitalized” minimum designation of 10.00%, and improved over the prior quarter’s total risk-based capital ratio of 11.71%.
Third quarter highlights:
| · | Returned to profitability. |
| · | Third quarter core earnings, earnings before taxes and loan loss provision, increased 33.5% over the same 2008 period. |
| · | Achieved an efficiency ratio for the quarter of 47.31%. |
| · | Strong quarterly core deposit growth of $45.8 million, an annualized growth rate of 29.5% since year-end 2008. |
| · | Risk based capital ratio of 11.87%, up from 11.71% at June 30, 2009, and up from 10.81% at September 30, 2008, and above the “well-capitalized” designation. |
| · | Increased an already strong and stable net interest margin to 5.19%. |
| · | Reduced level of nonperforming assets by $2.1 million from the end of the prior quarter. |
| · | Completed the regularly scheduled FDIC safety and soundness examination. |
Conference Call and Audio Webcast:
Management will conduct a live conference call and audio Webcast for interested parties relating to its results for the third quarter 2009, on Thursday, October 8th, 2009, at 5:00 p.m. Eastern Time / 2:00 p.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 $1.2 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.
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 other risks and uncertainties discussed in the sections titled “Risk Factors”, “Business” and “Management Discussion and Analysis of Financial Condition and Results of Operations”, as applicable, from Pacific Continental’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. 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 | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Interest and dividend income | ||||||||||||||||
| Loans | $ | 15,658 | $ | 16,019 | $ | 46,308 | $ | 47,181 | ||||||||
| Securities | 1,322 | 647 | 3,484 | 2,070 | ||||||||||||
| Dividends on Federal Home Loan Bank stock | - | 9 | - | 132 | ||||||||||||
| Federal funds sold & Interest-bearing deposits with banks | 2 | 5 | 4 | 18 | ||||||||||||
| 16,982 | 16,680 | 49,796 | 49,401 | |||||||||||||
| Interest expense | ||||||||||||||||
| Deposits | 2,481 | 2,696 | 7,080 | 7,844 | ||||||||||||
| Federal Home Loan Bank & Federal Reserve borrowings | 633 | 1,463 | 2,005 | 4,552 | ||||||||||||
| Junior subordinated debentures | 128 | 127 | 380 | 373 | ||||||||||||
| Federal funds purchased | 23 | 91 | 76 | 555 | ||||||||||||
| 3,265 | 4,377 | 9,541 | 13,324 | |||||||||||||
| Net interest income | 13,717 | 12,303 | 40,255 | 36,077 | ||||||||||||
| Provision for loan losses | 8,300 | 1,050 | 29,000 | 2,550 | ||||||||||||
| Net interest income after provision for loan losses | 5,417 | 11,253 | 11,255 | 33,527 | ||||||||||||
| Noninterest income | ||||||||||||||||
| Service charges on deposit accounts | 472 | 421 | 1,414 | 1,217 | ||||||||||||
| Other fee income, principally bankcard | 461 | 470 | 1,310 | 1,378 | ||||||||||||
| Loan servicing fees | 17 | 20 | 54 | 68 | ||||||||||||
| Mortgage banking income | 98 | 72 | 366 | 291 | ||||||||||||
| Other noninterest income | 61 | 64 | 182 | 273 | ||||||||||||
| 1,109 | 1,047 | 3,326 | 3,227 | |||||||||||||
| Noninterest expense | ||||||||||||||||
| Salaries and employee benefits | 3,810 | 4,670 | 12,908 | 13,705 | ||||||||||||
| Premises and equipment | 1,030 | 995 | 3,118 | 2,967 | ||||||||||||
| Bankcard processing | 135 | 143 | 381 | 421 | ||||||||||||
| Business development | 333 | 315 | 1,247 | 966 | ||||||||||||
| FDIC insurance assessment | 291 | 130 | 1,508 | 388 | ||||||||||||
| Other real estate expense | 32 | 2 | 597 | 32 | ||||||||||||
| Other noninterest expense | 1,383 | 1,242 | 3,951 | 3,648 | ||||||||||||
| 7,014 | 7,497 | 23,710 | 22,127 | |||||||||||||
| Income (loss) before provision (benefit) for income taxes | (488 | ) | 4,803 | (9,129 | ) | 14,627 | ||||||||||
| Provision (benefit) for income taxes | (767 | ) | 1,783 | (4,226 | ) | 5,521 | ||||||||||
| Net income (loss) | $ | 279 | $ | 3,020 | $ | (4,903 | ) | $ | 9,106 | |||||||
| Earnings (loss) per share | ||||||||||||||||
| Basic | $ | 0.02 | $ | 0.25 | $ | (0.38 | ) | $ | 0.76 | |||||||
| Diluted | $ | 0.02 | $ | 0.25 | $ | (0.38 | ) | $ | 0.76 | |||||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic | 12,873 | 11,978 | 12,852 | 11,960 | ||||||||||||
| Common stock equivalents | ||||||||||||||||
| attributable to stock-based awards | 36 | 55 | - | 60 | ||||||||||||
| Diluted | 12,909 | 12,033 | 12,852 | 12,020 | ||||||||||||
| PERFORMANCE RATIOS | ||||||||||||||||
| Return on average assets | 0.10 | % | 1.16 | % | -0.59 | % | 1.21 | % | ||||||||
| Return on average equity (book) | 0.92 | % | 10.68 | % | -5.25 | % | 10.97 | % | ||||||||
| Return on average equity (tangible) (1) | 1.14 | % | 13.42 | % | -6.42 | % | 13.86 | % | ||||||||
| Net interest margin | 5.19 | % | 5.08 | % | 5.18 | % | 5.18 | % | ||||||||
| Efficiency ratio (2) | 47.31 | % | 56.16 | % | 54.40 | % | 56.30 | % | ||||||||
| PACIFIC CONTINENTAL CORPORATION | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| Amounts in $ 000’s | ||||||||
| (Unaudited) | ||||||||
| September 30, | September 30, | |||||||
| 2009 | 2008 | |||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 17,624 | $ | 21,510 | ||||
| Interest-bearing deposits with banks | 266 | 290 | ||||||
| Total cash and cash equivalents | 17,890 | 21,800 | ||||||
| Securities available-for-sale | 115,585 | 49,848 | ||||||
| Loans held for sale | 453 | 447 | ||||||
| Loans, less allowance for loan losses | 940,754 | 913,430 | ||||||
| Interest receivable | 4,110 | 4,096 | ||||||
| Federal Home Loan Bank stock | 10,652 | 9,198 | ||||||
| Property, net of accumulated depreciation | 20,132 | 21,000 | ||||||
| Goodwill and other intangible assets | 22,737 | 22,960 | ||||||
| Deferred tax asset | 6,301 | 3,231 | ||||||
| Taxes receivable | 4,707 | - | ||||||
| Other real estate owned | 4,247 | 3,186 | ||||||
| Other assets | 2,940 | 2,688 | ||||||
| Total assets | $ | 1,150,508 | $ | 1,051,884 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Deposits | ||||||||
| Noninterest-bearing demand | $ | 196,320 | $ | 178,632 | ||||
| Savings and interest-bearing checking | 461,723 | 413,688 | ||||||
| Time $100,000 and over | 71,526 | 61,850 | ||||||
| Other time | 96,951 | 57,470 | ||||||
| Total deposits | 826,520 | 711,640 | ||||||
| Federal funds purchased | 10,000 | 38,460 | ||||||
| Federal Home Loan Bank and Federal Reserve borrowings | 181,000 | 176,000 | ||||||
| Junior subordinated debentures | 8,248 | 8,248 | ||||||
| Accrued interest and other payables | 4,430 | 4,338 | ||||||
| Total liabilities | 1,030,198 | 938,686 | ||||||
| Stockholders' equity | ||||||||
| Common stock, 25,000 shares authorized | 90,522 | 78,900 | ||||||
| Retained earnings | 29,773 | 35,140 | ||||||
| Accumulated other comprehensive loss | 15 | (842 | ) | |||||
| 120,310 | 113,198 | |||||||
| Total liabilities and stockholders’ equity | $ | 1,150,508 | $ | 1,051,884 | ||||
| CAPITAL RATIOS | ||||||||
| Total capital (to risk weighted assets) | 11.87 | % | 10.81 | % | ||||
| Tier I capital (to risk weighted assets) | 10.61 | % | 9.73 | % | ||||
| Tier I capital (to leverage assets) | 9.65 | % | 9.62 | % | ||||
| Tangible common equity (to tangible assets) | 8.65 | % | 8.77 | % | ||||
| Tangible common equity (to risk weighted assets) | 9.74 | % | 8.91 | % | ||||
| OTHER FINANCIAL DATA | ||||||||
| Shares outstanding at end of period | 12,873 | 11,994 | ||||||
| Stockholder's equity (tangible) (1) | $ | 97,573 | $ | 90,238 | ||||
| Book value | $ | 9.35 | $ | 9.44 | ||||
| Tangible book value (1) | $ | 7.58 | $ | 7.52 | ||||
| SELECTED OTHER FINANCIAL INFORMATION AND RATIOS | ||||||||||||||||||||
| Amounts in $ 000’s | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||||||
| LOANS BY TYPE | ||||||||||||||||||||
| Real estate secured loans: | ||||||||||||||||||||
| Permanent Loans: | ||||||||||||||||||||
| Multifamily residential | $ | 67,654 | $ | 53,925 | ||||||||||||||||
| Residential 1-4 family | 95,761 | 70,728 | ||||||||||||||||||
| Owner-occupied commercial | 200,569 | 184,961 | ||||||||||||||||||
| Non-owner-occupied commercial | 182,521 | 145,415 | ||||||||||||||||||
| Total permanent real estate loans | 546,505 | 455,029 | ||||||||||||||||||
| Construction Loans: | ||||||||||||||||||||
| Multifamily residential | 20,994 | 29,903 | ||||||||||||||||||
| Residential 1-4 family | 42,813 | 86,563 | ||||||||||||||||||
| Commercial real estate | 40,914 | 54,648 | ||||||||||||||||||
| Commercial bare land and acquisition & development | 28,907 | 33,567 | ||||||||||||||||||
| Residential bare land and acquisition & development | 30,879 | 34,111 | ||||||||||||||||||
| Other | 5,198 | 7,894 | ||||||||||||||||||
| Total construction real estate loans | 169,705 | 246,686 | ||||||||||||||||||
| Total real estate loans | 716,210 | 701,715 | ||||||||||||||||||
| Commercial loans | 229,881 | 210,054 | ||||||||||||||||||
| Consumer loans | 7,125 | 7,998 | ||||||||||||||||||
| Other loans | 7,420 | 6,005 | ||||||||||||||||||
| Gross loans | 960,636 | 925,772 | ||||||||||||||||||
| Deferred loan origination fees | (1,534 | ) | (1,670 | ) | ||||||||||||||||
| 959,102 | 924,102 | |||||||||||||||||||
| Allowance for loan losses | (18,348 | ) | (10,672 | ) | ||||||||||||||||
| $ | 940,754 | $ | 913,430 | |||||||||||||||||
| Real estate loans held for sale | $ | 453 | $ | 447 | ||||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
| Balance at beginning of period | $ | 18,680 | $ | 9,896 | $ | 10,980 | $ | 8,675 | ||||||||||||
| Provision for loan losses | 8,300 | 1,050 | 29,000 | 2,550 | ||||||||||||||||
| Loan charge offs | (8,822 | ) | (310 | ) | (21,872 | ) | (723 | ) | ||||||||||||
| Loan recoveries | 190 | 36 | 240 | 170 | ||||||||||||||||
| Net charge offs | (8,632 | ) | (274 | ) | (21,632 | ) | (553 | ) | ||||||||||||
| Balance at end of period | $ | 18,348 | $ | 10,672 | $ | 18,348 | $ | 10,672 | ||||||||||||
| NONPERFORMING ASSETS | ||||||||||||||||||||
| Nonaccrual loans | ||||||||||||||||||||
| Real estate secured loans: | ||||||||||||||||||||
| Permanent Loans: | ||||||||||||||||||||
| Multifamily residential | $ | - | $ | - | ||||||||||||||||
| Residential 1-4 family | 1,283 | 60 | ||||||||||||||||||
| Owner-occupied commercial | 2,204 | - | ||||||||||||||||||
| Non-owner-occupied commercial | - | - | ||||||||||||||||||
| Total permanent real estate loans | 3,487 | 60 | ||||||||||||||||||
| Construction Loans: | ||||||||||||||||||||
| Multifamily residential | - | - | ||||||||||||||||||
| Residential 1-4 family | 2,817 | 1,277 | ||||||||||||||||||
| Commercial real estate | 7,551 | - | ||||||||||||||||||
| Commercial bare land and acquisition & development | - | 1,660 | ||||||||||||||||||
| Residential bare land and acquisition & development | 8,141 | - | ||||||||||||||||||
| Other | - | - | ||||||||||||||||||
| Total construction real estate loans | 18,509 | 2,937 | ||||||||||||||||||
| Total real estate loans | 21,996 | 2,997 | ||||||||||||||||||
| Commercial loans | 4,036 | 319 | ||||||||||||||||||
| Consumer loans | - | - | # | |||||||||||||||||
| Other loans | - | - | ||||||||||||||||||
| Total nonaccrual loans | 26,032 | 3,316 | ||||||||||||||||||
| 90 days past due and accruing interest | - | - | ||||||||||||||||||
| Total nonperforming loans | 26,032 | 3,316 | ||||||||||||||||||
| Nonperforming loans guaranteed by government | (136 | ) | (239 | ) | ||||||||||||||||
| Net nonperforming loans | 25,896 | 3,077 | ||||||||||||||||||
| Foreclosed assets | 4,247 | 3,186 | ||||||||||||||||||
| Total nonperforming assets, net of guaranteed loans | $ | 30,143 | $ | 6,263 | ||||||||||||||||
| LOAN QUALITY RATIOS | ||||||||||||||||||||
| Allowance for loan losses as a percentage of total loans | ||||||||||||||||||||
| outstanding, excluding of loans held for sale | 1.91 | % | 1.15 | % | ||||||||||||||||
| Allowance for loan losses as a percentage of total | ||||||||||||||||||||
| nonperforming loans, net of government guarantees | 70.85 | % | 346.83 | % | ||||||||||||||||
| Net loan charge offs (recoveries) as a percentage of | ||||||||||||||||||||
| average loans, annualized | 3.58 | % | 0.12 | % | 3.01 | % | 0.08 | % | ||||||||||||
| Nonperforming loans as a percentage of total loans | 2.70 | % | 0.33 | % | ||||||||||||||||
| Nonperforming assets as a percentage of total assets | 2.62 | % | 0.60 | % | ||||||||||||||||
| SELECTED OTHER FINANCIAL INFORMATION AND RATIOS (Continued) | ||||||||||||||||
| Amounts in $ 000’s | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| BALANCE SHEET AVERAGES | ||||||||||||||||
| Loans | $ | 957,602 | $ | 913,356 | $ | 961,704 | $ | 876,491 | ||||||||
| Allowance for loan losses | (19,309 | ) | (10,115 | ) | (14,869 | ) | (9,456 | ) | ||||||||
| Loans, net of allowance | 938,293 | 903,241 | 946,835 | 867,035 | ||||||||||||
| Securities and short-term deposits | 110,217 | 59,862 | 91,350 | 62,932 | ||||||||||||
| Earning assets | 1,048,510 | 963,103 | 1,038,185 | 929,967 | ||||||||||||
| Non-interest-earning assets | 78,743 | 74,112 | 76,437 | 72,037 | ||||||||||||
| Assets | $ | 1,127,253 | $ | 1,037,215 | $ | 1,114,622 | $ | 1,002,004 | ||||||||
| Interest-bearing core deposits (3) | $ | 536,764 | $ | 455,363 | $ | 506,543 | $ | 441,931 | ||||||||
| Non-interest-bearing core deposits (3) | 187,996 | 171,103 | 177,047 | 169,421 | ||||||||||||
| Core deposits (3) | 724,760 | 626,466 | 683,590 | 611,352 | ||||||||||||
| Non-core interest-bearing deposits | 84,908 | 71,799 | 84,810 | 51,118 | ||||||||||||
| Deposits | 809,668 | 698,265 | 768,400 | 662,470 | ||||||||||||
| Borrowings | 193,841 | 222,003 | 217,567 | 224,504 | ||||||||||||
| Other non-interest-bearing liabilities | 3,617 | 4,416 | 3,802 | 4,200 | ||||||||||||
| Liabilities | 1,007,126 | 924,684 | 989,769 | 891,174 | ||||||||||||
| Stockholders' equity (book) | 120,127 | 112,531 | 124,853 | 110,830 | ||||||||||||
| Liabilities and equity | $ | 1,127,253 | $ | 1,037,215 | $ | 1,114,622 | $ | 1,002,004 | ||||||||
| Stockholders' equity (tangible) (1) | $ | 97,359 | $ | 89,540 | $ | 102,030 | $ | 87,784 | ||||||||
| �� | ||||||||||||||||
| SELECTED MARKET DATA | ||||||||||||||||
| Eugene market loans, net of fees | $ | 256,291 | $ | 224,327 | ||||||||||||
| Portland market loans, net of fees | 437,674 | 423,194 | ||||||||||||||
| Seattle market loans, net of fees | 265,137 | 276,581 | ||||||||||||||
| Total loans, net of fees | $ | 959,102 | $ | 924,102 | ||||||||||||
| Eugene market core deposits (3) | $ | 480,033 | $ | 413,240 | ||||||||||||
| Portland market core deposits (3) | 162,574 | 122,310 | ||||||||||||||
| Seattle market core deposits (3) | 109,046 | 103,889 | ||||||||||||||
| Total core deposits (3) | 751,653 | 639,439 | ||||||||||||||
| Other deposits | 74,869 | 72,201 | ||||||||||||||
| Total | $ | 826,522 | $ | 711,640 | ||||||||||||
| Eugene market core deposits, average (3) | $ | 458,122 | $ | 400,461 | $ | 442,219 | $ | 402,132 | ||||||||
| Portland market core deposits, average (3) | 159,670 | 117,472 | 137,437 | 113,364 | ||||||||||||
| Seattle market core deposits, average (3) | 106,968 | 108,533 | 103,934 | 95,856 | ||||||||||||
| Total core deposits, average (3) | 724,760 | 626,466 | 683,590 | 611,352 | ||||||||||||
| Other deposits, average | 84,908 | 71,799 | 84,810 | 51,118 | ||||||||||||
| Total | $ | 809,668 | $ | 698,265 | $ | 768,400 | $ | 662,470 | ||||||||
| NET INTEREST MARGIN RECONCILIATION | ||||||||||||||||
| Yield on average loans | 6.62 | % | 7.06 | % | 6.54 | % | 7.27 | % | ||||||||
| Yield on average securities | 4.77 | % | 4.39 | % | 5.11 | % | 4.71 | % | ||||||||
| Yield on average earning assets | 6.43 | % | 6.89 | % | 6.41 | % | 7.10 | % | ||||||||
| Rate on average interest-bearing core deposits | 1.57 | % | 1.85 | % | 1.56 | % | 1.94 | % | ||||||||
| Rate on average interest-bearing non-core deposits | 1.67 | % | 3.21 | % | 1.85 | % | 3.69 | % | ||||||||
| Rate on average interest-bearing deposits | 1.58 | % | 2.03 | % | 1.60 | % | 2.13 | % | ||||||||
| Rate on average borrowings | 1.60 | % | 3.01 | % | 1.51 | % | 3.26 | % | ||||||||
| Cost of interest-bearing funds | 1.59 | % | 2.32 | % | 1.58 | % | 2.48 | % | ||||||||
| Interest rate spread | 4.84 | % | 4.57 | % | 4.84 | % | 4.62 | % | ||||||||
| Net interest margin | 5.19 | % | 5.08 | % | 5.18 | % | 5.18 | % | ||||||||
| (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. | ||||||||||||||||