NEWS RELEASE
| FOR MORE INFORMATION CONTACT: | Hal Brown | Mick 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 FOURTH QUARTER AND FULL YEAR 2009 RESULTS
Profitability, Core Deposit Growth and Elevated Provisioning Continue in Fourth Quarter 2009.
EUGENE, Ore., January 20, 2010 - ---Pacific Continental Corporation (NASDAQ: PCBK), the bank holding company for Pacific Continental Bank, today reported financial results for the fourth quarter and full year ended December 31, 2009.
“We continue to benefit from strong core earnings, a strong net interest margin, and growth in core earnings. Combined, these financial fundamentals contributed to a profitable quarter and they position us for a return to full year profitability in 2010,” said Hal Brown, chief executive officer. “Additionally, as evidenced by our successful fourth-quarter equity offering, investor confidence remains strong. The equity offering strengthened our already-strong capital ratios furthering the Bank’s ability to respond to the deposit and lending needs of our communities.”
Net income for the fourth quarter 2009 was $24 thousand, compared to net income of $3.8 million for the fourth quarter 2008. For the full year 2009, the net loss was $4.9 million compared to net income of $12.9 million for 2008.
Improved capital levels
During the fourth quarter 2009, the Company successfully raised additional capital through an underwritten public offering securing net proceeds of $45.7 million. The Company issued 5.52 million shares of its common stock, including 720,000 shares pursuant to the underwriters’ over-allotment option, at a price of $8.75 per share. As a result of the additional capital, the Company’s capital ratios, which were already at the well-capitalized designation, improved significantly. At December 31, 2009, the Company’s Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and Total risk-based capital ratio were 13.66%, 14.38%, and 15.63%. All three ratios significantly exceed the FDIC’s well-capitalized designation levels of 5.00%, 6.00%, and 10.00%, respectively.
Core earnings, revenue growth, net interest margin and expense control drive efficiency
Core earnings, earnings before loan loss provisions and taxes, expanded in the fourth quarter 2009, reflecting a continued increase in the Company’s core earnings power. Core earnings for the fourth quarter were $7.4 million, an increase of 9.0% over the $6.8 million reported for the same period in 2008; and for the full year 2009, core earnings were $27.3 million, a 13.8% increase over the $24.0 million reported in 2008. This increase is the result of both revenue growth and expense control. The growth in operating revenue, together with active expense management, resulted in a fourth quarter 2009 efficiency ratio of 50.14% compared to 52.23% for the same period last year.
Operating revenue, which consists of net interest income plus noninterest income, was $58.4 million for the year 2009, up $4.9 million or 9.2% over the $53.5 million reported in 2008. Contributing to the improvement in operating revenue was an 11.1% year-over-year growth in average earning assets and a relatively stable net interest margin of 5.14% in 2009 compared to 5.21% in 2008.
Noninterest expense for the year 2009 was $31.2 million, an increase of $1.6 million or 5.4% over 2008. An increase of $1.5 million in FDIC assessments in 2009 when compared to last year accounted for nearly all of the increase in year-over-year noninterest expenses. On a linked quarter basis, fourth quarter 2009 noninterest expense was $7.5 million, up $400 thousand over third quarter 2009. This increase had been anticipated as the third quarter 2009 noninterest expenses included a one-time $417 thousand decline in personnel expense, primarily related to lower accruals for incentive compensation and for lower than expected claims experience in the Company’s 2009 self-insured medical plan. During the fourth quarter, the Bank remitted approximately $7.0 million to the FDIC in payment for the Bank’s fourth quarter 2009 FDIC insurance assessment and estimated prepayment for FDIC insurance assessments for the years 2010, 2011, and 2012 recording a $6.2 million prepaid expense on its December 31, 2009 balance sheet. The Bank expensed $419 thousand for FDIC premiums in the fourth quarter 2009 compared to $65 thousand in the fourth quarter 2008.
Core deposit growth continues
During the fourth quarter 2009, the Company continued to experience strong core deposit growth. At December 31, 2009, period-end core deposits totaled $772.0 million, up $20.3 million over period-end core deposits at September 30, 2009, and up $156.2 million, or 25.4% for the year 2009. Quarterly average core deposit figures, a measure which reduces daily deposit volatility, show similar strong results with fourth quarter 2009 average core deposits of $764.1 million, an increase of $39.4 million over the third quarter 2009 average and an increase of $145.3 million over the fourth quarter 2008 average. Deposit growth occurred in all three of the Bank’s primary markets, but was strongest in Portland and Eugene.
Loan growth continued to slow from the prior year’s activity reflecting the weak economic conditions and planned contraction in the construction and land development portfolios. At December 31, 2009, period-end gross loans declined by approximately $14.9 million from the end of the third quarter 2009 and have contracted $12.3 million during 2009. As had been planned the Bank’s construction and land development portfolios have declined $66.5 million since the beginning of 2009 and at year-end now represent 17.1% of total gross loans. This decline in construction financing was partially offset by increases in the permanent real estate and commercial loan portfolios primarily as they relate to dental and small business financing.
Nonperforming assets, provisioning, and loan statistics
Total nonperforming assets at December 31, 2009 were $36.5 million, an increase of $6.4 million from September 30, 2009. Nonperforming assets represent 3.05% of total assets at December 31, 2009 compared to 2.62% at the end of the prior quarter. The change in the level of nonperforming assets reflects the increased volatility experienced in recessionary economy and reflects the Bank’s continued efforts to work through this difficult credit cycle. During the quarter the Bank saw successful resolution of a number of credits as well as some credits migrating to nonperforming status.
“Although we are beginning to see signs of an economic recovery, we can expect continued volatility in the level of our nonperforming assets which is normal in dealing with a credit cycle tail. We did see an increase in the level of our nonperforming assets as a few more of our borrowers, primarily related to construction financing, were affected by the prolonged economic challenges,” said Roger Busse, President and Chief Operating Officer. “We remain steadfast in our proactive and timely approach when dealing with problem credits which did result in the resolution of several problem loans during the quarter,” added Busse.
As a result of the continued weakness in the Pacific Northwest economy and residential real estate markets in particular, the Company’s fourth quarter 2009 provision for loan losses remained elevated, but lower than the provisions made in the prior two quarters. The fourth quarter provision for loan losses was $7.0 million, compared to $8.3 million in third quarter 2009. During the fourth quarter, the Company recognized net loan charge offs of $12.0 million. The Company continued to maintain a historically high unallocated allowance for loan losses; and at December 31, 2009, the unallocated portion of the allowance was 15% compared to 8% at September 30, 2009. The increased unallocated allowance was deemed prudent by management considering future uncertainty and current economic factors. The allowance for loan losses as a percentage of outstanding loans at December 31, 2009 was 1.42%, compared to 1.91% and 1.15% at September 30, 2009 and December 31, 2008, respectively.
Fourth quarter highlights:
| · | Successfully raised $45.7 million in new capital, net of fees, through an underwritten public offering. |
| · | Core earnings, earnings before taxes and loan loss provision, increased 9.0% quarter-over-quarter and 13.8% for the year. |
| · | Achieved an efficiency ratio for the quarter of 50.14%. |
| · | Strong average core deposit growth of $39.4 million for the fourth quarter, an annualized growth rate of 21.7%. |
| · | Total risk based capital ratio of 15.63%, up from 11.87% at September 30, 2009, significantly above the 10.0% “well-capitalized” designation. |
Conference Call and Audio Webcast:
Management will conduct a live conference call and audio Webcast for interested parties relating to its results for the fourth quarter and year-end 2009, on Thursday, January 21st, 2010, 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.
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 | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Interest and dividend income | ||||||||||||||||
| Loans | $ | 15,669 | $ | 15,866 | $ | 61,977 | $ | 63,047 | ||||||||
| Securities | 1,409 | 717 | 4,893 | 2,787 | ||||||||||||
| Dividends on Federal Home Loan Bank stock | - | (41 | ) | - | 91 | |||||||||||
| Federal funds sold & Interest-bearing deposits with banks | 1 | 2 | 5 | 20 | ||||||||||||
| 17,079 | 16,544 | 66,875 | 65,945 | |||||||||||||
| Interest expense | ||||||||||||||||
| Deposits | 2,473 | 2,298 | 9,553 | 10,142 | ||||||||||||
| Federal Home Loan Bank & Federal Reserve borrowings | 686 | 904 | 2,691 | 5,456 | ||||||||||||
| Junior subordinated debentures | 128 | 125 | 508 | 498 | ||||||||||||
| Federal funds purchased | 8 | 23 | 84 | 578 | ||||||||||||
| 3,295 | 3,350 | 12,836 | 16,674 | |||||||||||||
| Net interest income | 13,784 | 13,194 | 54,039 | 49,271 | ||||||||||||
| Provision for loan losses | 7,000 | 1,050 | 36,000 | 3,600 | ||||||||||||
| Net interest income after provision for loan losses | 6,784 | 12,144 | 18,039 | 45,671 | ||||||||||||
| Noninterest income | ||||||||||||||||
| Service charges on deposit accounts | 458 | 459 | 1,872 | 1,676 | ||||||||||||
| Other fee income, principally bankcard | 445 | 445 | 1,755 | 1,823 | ||||||||||||
| Loan servicing fees | 18 | 17 | 72 | 85 | ||||||||||||
| Mortgage banking income | 97 | 64 | 463 | 355 | ||||||||||||
| Other noninterest income | 61 | 57 | 243 | 330 | ||||||||||||
| 1,079 | 1,042 | 4,405 | 4,269 | |||||||||||||
| Noninterest expense | ||||||||||||||||
| Salaries and employee benefits | 4,083 | 4,384 | 16,991 | 18,089 | ||||||||||||
| Premises and equipment | 982 | 1,023 | 4,100 | 3,990 | ||||||||||||
| Bankcard processing | 125 | 125 | 506 | 546 | ||||||||||||
| Business development | 208 | 481 | 1,455 | 1,447 | ||||||||||||
| FDIC insurance assessment | 419 | 65 | 1,927 | 453 | ||||||||||||
| Other real estate expense | 223 | 90 | 820 | 122 | ||||||||||||
| Other noninterest expense | 1,412 | 1,267 | 5,363 | 4,915 | ||||||||||||
| 7,452 | 7,435 | 31,162 | 29,562 | |||||||||||||
| Income (loss) before provision (benefit) for income taxes | 411 | 5,751 | (8,718 | ) | 20,378 | |||||||||||
| Provision (benefit) for income taxes | 387 | 1,918 | (3,839 | ) | 7,439 | |||||||||||
| Net income (loss) | $ | 24 | $ | 3,833 | $ | (4,879 | ) | $ | 12,939 | |||||||
| Earnings (loss) per share | ||||||||||||||||
| Basic | $ | 0.00 | $ | 0.32 | $ | (0.35 | ) | $ | 1.08 | |||||||
| Diluted | $ | 0.00 | $ | 0.32 | $ | (0.35 | ) | $ | 1.08 | |||||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic | 16,863 | 12,039 | 13,961 | 11,980 | ||||||||||||
| Common stock equivalents | ||||||||||||||||
| attributable to stock-based awards | 41 | 56 | - | 48 | ||||||||||||
| Diluted | 16,904 | 12,095 | 13,961 | 12,028 | ||||||||||||
| PERFORMANCE RATIOS | ||||||||||||||||
| Return on average assets | 0.01 | % | 1.43 | % | -0.43 | % | 1.27 | % | ||||||||
| Return on average equity (book) | 0.06 | % | 13.26 | % | -3.60 | % | 11.57 | % | ||||||||
| Return on average equity (tangible) (1) | 0.07 | % | 16.57 | % | -4.33 | % | 14.56 | % | ||||||||
| Net interest margin | 5.02 | % | 5.28 | % | 5.14 | % | 5.21 | % | ||||||||
| Efficiency ratio (2) | 50.14 | % | 52.23 | % | 53.32 | % | 55.21 | % | ||||||||
| PACIFIC CONTINENTAL CORPORATION | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| Amounts in $ 000’s | ||||||||
| (Unaudited) | ||||||||
| December 31, | December 31, | |||||||
| 2009 | 2008 | |||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 16,698 | $ | 20,172 | ||||
| Interest-bearing deposits with banks | 272 | 283 | ||||||
| Total cash and cash equivalents | 16,970 | 20,455 | ||||||
| Securities available-for-sale | 167,618 | 54,933 | ||||||
| Loans held for sale | 745 | 410 | ||||||
| Loans, less allowance for loan losses | 930,997 | 945,377 | ||||||
| Interest receivable | 4,408 | 4,021 | ||||||
| Federal Home Loan Bank stock | 10,652 | 10,652 | ||||||
| Property, net of accumulated depreciation | 20,228 | 20,763 | ||||||
| Goodwill and other intangible assets | 22,681 | 22,904 | ||||||
| Deferred tax asset | 6,773 | 4,849 | ||||||
| Taxes receivable | 5,299 | - | ||||||
| Other real estate owned | 4,224 | 3,806 | ||||||
| Prepaid FDIC assessment | 6,242 | - | ||||||
| Other assets | 2,276 | 2,673 | ||||||
| Total assets | $ | 1,199,113 | $ | 1,090,843 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Deposits | ||||||||
| Noninterest-bearing demand | $ | 202,088 | $ | 178,957 | ||||
| Savings and interest-bearing checking | 475,869 | 392,935 | ||||||
| Time $100,000 and over | 68,031 | 67,095 | ||||||
| Other time | 81,930 | 83,450 | ||||||
| Total deposits | 827,918 | 722,437 | ||||||
| Federal funds purchased | 10,000 | 44,000 | ||||||
| Federal Home Loan Bank and Federal Reserve borrowings | 183,025 | 194,500 | ||||||
| Junior subordinated debentures | 8,248 | 8,248 | ||||||
| Accrued interest and other payables | 4,260 | 5,493 | ||||||
| Total liabilities | 1,033,451 | 974,678 | ||||||
| Stockholders' equity | ||||||||
| Common stock, 25,000 shares authorized | 136,316 | 80,019 | ||||||
| Retained earnings | 29,613 | 37,764 | ||||||
| Accumulated other comprehensive loss | (267 | ) | (1,618 | ) | ||||
| 165,662 | 116,165 | |||||||
| Total liabilities and stockholders’ equity | $ | 1,199,113 | $ | 1,090,843 | ||||
| CAPITAL RATIOS | ||||||||
| Total capital (to risk weighted assets) | 15.63 | % | 11.16 | % | ||||
| Tier I capital (to risk weighted assets) | 14.38 | % | 10.07 | % | ||||
| Tier I capital (to leverage assets) | 13.66 | % | 10.33 | % | ||||
| Tangible common equity (to tangible assets) | 12.15 | % | 8.73 | % | ||||
| Tangible common equity (to risk weighted assets) | 14.28 | % | 9.12 | % | ||||
| OTHER FINANCIAL DATA | ||||||||
| Shares outstanding at end of period | 18,394 | 12,080 | ||||||
| Stockholder's equity (tangible) (1) | $ | 142,981 | $ | 93,261 | ||||
| Book value | $ | 9.01 | $ | 9.62 | ||||
| Tangible book value (1) | $ | 7.77 | $ | 7.72 | ||||
| SELECTED OTHER FINANCIAL INFORMATION AND RATIOS | ||||||||||||||||
| Amounts in $ 000’s | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| LOANS BY TYPE | ||||||||||||||||
| Real estate secured loans: | ||||||||||||||||
| Permanent Loans: | ||||||||||||||||
| Multifamily residential | $ | 68,509 | $ | 67,466 | ||||||||||||
| Residential 1-4 family | 86,795 | 79,189 | ||||||||||||||
| Owner-occupied commercial | 197,884 | 188,709 | ||||||||||||||
| Non-owner-occupied commercial | 147,605 | 131,183 | ||||||||||||||
| Other loans secured by real estate | 37,404 | 23,810 | ||||||||||||||
| Total permanent real estate loans | 538,197 | 490,357 | ||||||||||||||
| Construction Loans: | ||||||||||||||||
| Multifamily residential | 18,472 | 21,375 | ||||||||||||||
| Residential 1-4 family | 41,714 | 74,900 | ||||||||||||||
| Commercial real estate | 38,921 | 54,203 | ||||||||||||||
| Commercial bare land and acquisition & development | 30,169 | 34,756 | ||||||||||||||
| Residential bare land and acquisition & development | 30,484 | 33,395 | ||||||||||||||
| Other | 1,582 | 9,195 | ||||||||||||||
| Total construction real estate loans | 161,342 | 227,824 | ||||||||||||||
| Total real estate loans | 699,539 | 718,181 | ||||||||||||||
| Commercial loans | 233,821 | 226,213 | ||||||||||||||
| Consumer loans | 6,763 | 7,484 | ||||||||||||||
| Other loans | 5,629 | 6,209 | ||||||||||||||
| Gross loans | 945,752 | 958,087 | ||||||||||||||
| Deferred loan origination fees | (1,388 | ) | (1,730 | ) | ||||||||||||
| 944,364 | 956,357 | |||||||||||||||
| Allowance for loan losses | (13,367 | ) | (10,980 | ) | ||||||||||||
| $ | 930,997 | $ | 945,377 | |||||||||||||
| Real estate loans held for sale | $ | 745 | $ | 410 | ||||||||||||
| ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||
| Balance at beginning of period | $ | 18,348 | $ | 10,672 | $ | 10,980 | $ | 8,675 | ||||||||
| Provision for loan losses | 7,000 | 1,050 | 36,000 | 3,600 | ||||||||||||
| Loan charge offs | (12,009 | ) | (754 | ) | (33,881 | ) | (1,477 | ) | ||||||||
| Loan recoveries | 28 | 12 | 268 | 182 | ||||||||||||
| Net charge offs | (11,981 | ) | (742 | ) | (33,613 | ) | (1,295 | ) | ||||||||
| Balance at end of period | $ | 13,367 | $ | 10,980 | $ | 13,367 | $ | 10,980 | ||||||||
| NONPERFORMING ASSETS | ||||||||||||||||
| Nonaccrual loans | ||||||||||||||||
| Real estate secured loans: | ||||||||||||||||
| Permanent Loans: | ||||||||||||||||
| Multifamily residential | $ | - | $ | - | ||||||||||||
| Residential 1-4 family | 704 | 100 | ||||||||||||||
| Owner-occupied commercial | 375 | - | ||||||||||||||
| Non-owner-occupied commercial | - | - | ||||||||||||||
| Other loans secured by real estate | 1,097 | - | ||||||||||||||
| Total permanent real estate loans | 2,176 | 100 | ||||||||||||||
| Construction Loans: | ||||||||||||||||
| Multifamily residential | 4,410 | - | ||||||||||||||
| Residential 1-4 family | 13,025 | 2,032 | ||||||||||||||
| Commercial real estate | 7,875 | 1,660 | ||||||||||||||
| Commercial bare land and acquisition & development | - | - | ||||||||||||||
| Residential bare land and acquisition & development | - | - | ||||||||||||||
| Other | - | - | ||||||||||||||
| Total construction real estate loans | 25,310 | 3,692 | ||||||||||||||
| Total real estate loans | 27,486 | 3,792 | ||||||||||||||
| Commercial loans | 5,268 | - | ||||||||||||||
| Consumer loans | 39 | 345 | ||||||||||||||
| Other loans | - | - | ||||||||||||||
| Total nonaccrual loans | 32,793 | 4,137 | ||||||||||||||
| 90 days past due and accruing interest | - | - | ||||||||||||||
| Total nonperforming loans | 32,793 | 4,137 | ||||||||||||||
| Nonperforming loans guaranteed by government | (447 | ) | (239 | ) | ||||||||||||
| Net nonperforming loans | 32,346 | 3,898 | ||||||||||||||
| Foreclosed assets | 4,224 | 3,806 | ||||||||||||||
| Total nonperforming assets, net of guaranteed loans | $ | 36,570 | $ | 7,704 | ||||||||||||
| LOAN QUALITY RATIOS | ||||||||||||||||
| Allowance for loan losses as a percentage of total loans | ||||||||||||||||
| outstanding, excluding of loans held for sale | 1.42 | % | 1.15 | % | ||||||||||||
| Allowance for loan losses as a percentage of total | ||||||||||||||||
| nonperforming loans, net of government guarantees | 41.33 | % | 281.68 | % | ||||||||||||
| Net loan charge offs (recoveries) as a percentage of | ||||||||||||||||
| average loans, annualized | 4.98 | % | 0.31 | % | 3.50 | % | 0.15 | % | ||||||||
| Nonperforming loans as a percentage of total loans | 3.43 | % | 0.41 | % | ||||||||||||
| Nonperforming assets as a percentage of total assets | 3.05 | % | 0.71 | % | ||||||||||||
| SELECTED OTHER FINANCIAL INFORMATION AND RATIOS (Continued) | ||||||||||||||||
| Amounts in $ 000’s | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| BALANCE SHEET AVERAGES | ||||||||||||||||
| Loans | $ | 954,543 | $ | 940,307 | $ | 959,899 | $ | 892,532 | ||||||||
| Allowance for loan losses | (19,797 | ) | (10,785 | ) | (16,111 | ) | (9,790 | ) | ||||||||
| Loans, net of allowance | 934,746 | 929,522 | 943,788 | 882,742 | ||||||||||||
| Securities and short-term deposits | 155,531 | 63,656 | 107,527 | 63,114 | ||||||||||||
| Earning assets | 1,090,277 | 993,178 | 1,051,315 | 945,856 | ||||||||||||
| Non-interest-earning assets | 85,241 | 76,600 | 78,656 | 73,184 | ||||||||||||
| Assets | $ | 1,175,518 | $ | 1,069,778 | $ | 1,129,971 | $ | 1,019,040 | ||||||||
| Interest-bearing core deposits (3) | $ | 575,834 | $ | 447,978 | $ | 524,008 | $ | 443,451 | ||||||||
| Non-interest-bearing core deposits (3) | 188,310 | 170,897 | 179,886 | 169,792 | ||||||||||||
| Core deposits (3) | 764,144 | 618,875 | 703,894 | 613,243 | ||||||||||||
| Non-core interest-bearing deposits | 61,525 | 72,052 | 78,941 | 56,380 | ||||||||||||
| Deposits | 825,669 | 690,927 | 782,835 | 669,623 | ||||||||||||
| Borrowings | 177,354 | 256,852 | 207,431 | 232,635 | ||||||||||||
| Other non-interest-bearing liabilities | 5,520 | 7,040 | 4,235 | 4,914 | ||||||||||||
| Liabilities | 1,008,543 | 954,819 | 994,501 | 907,172 | ||||||||||||
| Stockholders' equity (book) | 166,975 | 114,959 | 135,470 | 111,868 | ||||||||||||
| Liabilities and equity | $ | 1,175,518 | $ | 1,069,778 | $ | 1,129,971 | $ | 1,019,040 | ||||||||
| Stockholders' equity (tangible) (1) | $ | 144,267 | $ | 92,024 | $ | 112,676 | $ | 88,850 | ||||||||
| SELECTED MARKET DATA | ||||||||||||||||
| Eugene market loans, net of fees | $ | 255,762 | $ | 237,604 | ||||||||||||
| Portland market loans, net of fees | 429,143 | 432,961 | ||||||||||||||
| Seattle market loans, net of fees | 246,092 | 285,792 | ||||||||||||||
| Total loans, net of fees | $ | 930,997 | $ | 956,357 | ||||||||||||
| Eugene market core deposits (3) | $ | 492,012 | $ | 406,098 | ||||||||||||
| Portland market core deposits (3) | 165,716 | 110,287 | ||||||||||||||
| Seattle market core deposits (3) | 114,258 | 99,447 | ||||||||||||||
| Total core deposits (3) | 771,986 | 615,832 | ||||||||||||||
| Other deposits | 55,932 | 106,605 | ||||||||||||||
| Total | $ | 827,918 | $ | 722,437 | ||||||||||||
| Eugene market core deposits, average (3) | $ | 487,202 | $ | 402,125 | $ | 453,557 | $ | 402,128 | ||||||||
| Portland market core deposits, average (3) | 165,125 | 115,234 | 144,416 | 113,834 | ||||||||||||
| Seattle market core deposits, average (3) | 111,817 | 101,516 | 105,921 | 97,281 | ||||||||||||
| Total core deposits, average (3) | 764,144 | 618,875 | 703,894 | 613,243 | ||||||||||||
| Other deposits, average | 61,525 | 72,052 | 78,941 | 56,380 | ||||||||||||
| Total | $ | 825,669 | $ | 690,927 | $ | 782,835 | $ | 669,623 | ||||||||
| NET INTEREST MARGIN RECONCILIATION | ||||||||||||||||
| Yield on average loans | 6.65 | % | 6.79 | % | 6.57 | % | 7.14 | % | ||||||||
| Yield on average securities | 3.60 | % | 4.24 | % | 4.56 | % | 4.59 | % | ||||||||
| Yield on average earning assets | 6.21 | % | 6.63 | % | 6.36 | % | 6.97 | % | ||||||||
| Rate on average interest-bearing core deposits | 1.50 | % | 1.56 | % | 1.54 | % | 1.85 | % | ||||||||
| Rate on average interest-bearing non-core deposits | 1.86 | % | 2.96 | % | 1.85 | % | 3.46 | % | ||||||||
| Rate on average interest-bearing deposits | 1.54 | % | 1.76 | % | 1.58 | % | 2.03 | % | ||||||||
| Rate on average borrowings | 1.84 | % | 1.63 | % | 1.58 | % | 2.81 | % | ||||||||
| Cost of interest-bearing funds | 1.60 | % | 1.72 | % | 1.58 | % | 2.28 | % | ||||||||
| Interest rate spread | 4.61 | % | 4.91 | % | 4.78 | % | 4.69 | % | ||||||||
| Net interest margin | 5.02 | % | 5.28 | % | 5.14 | % | 5.21 | % | ||||||||
| (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. | ||||||||||||||||