Pacific Continental 8-K Pacific Continental Reports Fourth Quarter and Full Year 2010 Results

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 2010 RESULTS

Continued Profitability, Reduction in Non-performing Assets and Core Deposit Growth Characterize the Quarter

EUGENE, Ore., January 19, 2011 -- Pacific Continental Corporation (Nasdaq: PCBK), the holding company of Pacific Continental Bank, today reported financial results for the fourth quarter and full year ended December 31, 2010.

Fourth quarter highlights:

·   Achieved 20% reduction in nonperforming assets from the end of the third quarter 2010.

·   Achieved sixth consecutive quarter and full year 2010 profitability.

·   Annualized average core deposit growth for the fourth quarter of 11.0% and for the full year of 17.5%.

·   Total risk-based capital ratio of 17.10%, significantly above the 10.0% minimum for “well-capitalized” designation.

·   Annualized pre-tax, pre-provision earnings remain strong at 1.75% of fourth quarter average assets.

·   Recognized by the Portland Business Journal as one of Oregon’s most admired companies.

“In this challenging economy, I am pleased with our financial results which includes both a significant fourth quarter reduction in our non-performing assets along with our sixth consecutive quarter of profitability,” said Hal Brown, chief executive officer. “While economic conditions continue to remain weak and uncertain, Pacific Continental has further strengthened its financial performance in all key areas, including core deposits, capital, profitability and credit quality. As such, we look to 2011 as a year of opportunity as we shift our focus from problem loan resolution to growth and revenue enhancement.” added Brown.

Net income for the fourth quarter 2010 was $1.2 million, compared to net income of $24 thousand for the fourth quarter 2009; and on a linked-quarter basis, net income was up $39 thousand from the third quarter 2010. Net income for the full year 2010 was $5.1 million, compared to a net loss of $4.9 million in 2009.

Earnings per share was $0.07 for the fourth quarter 2010, compared to $0.00 for the prior year fourth quarter. For the full year 2010, net income per share was $0.28, compared to net loss per share of $0.35 for the year 2009.

Non-performing assets, provisioning and loan statistics

Non-performing assets (“NPAs”) at December 31, 2010, totaled $46.3 million, or 3.82% of total assets, a decrease of $11.7 million for the quarter from $58.0 million, or 4.86% of total assets, at September 30, 2010.

The Company’s fourth quarter 2010 provision for loan losses was $3.3 million, down $500 thousand from third quarter 2010. The Company also realized a $690 thousand recovery from the sale of collateral on a non-accrual loan. While the provision remains elevated when compared to pre-recession periods, it has generally been trending down over the past seven quarters. During the fourth quarter of 2010, the Bank recognized net loan charge-offs of $4.4 million, down significantly from the $12.0 million recorded in the same quarter last year. For the full year 2010, net loan charge-offs totaled $11.8 million compared to $33.6 million for 2009. The allowance for loan losses as a percentage of outstanding loans at December 31, 2010, was 1.93%, compared to 2.01% and 1.42% at September 30, 2010, and December 31, 2009, respectively.

“As forecasted in our September 30, 2010, press release significant problem loan resolutions were achieved during the fourth quarter allowing for an $11.7 million or 20% reduction in non-performing assets as of December 31, 2010, including a number of recoveries,” said Roger Busse, president and chief operating officer. “We couldn’t be more pleased. Coupled with the anticipated resolutions expected during the first quarter of 2011, the results suggests a trend of continued contraction in problem assets,” added Busse.

Core deposit growth continues while loan demand remains soft

During the fourth quarter 2010, the Company continued to experience strong growth in its company-defined core deposit base. Quarterly average core deposit figures, a measure which reduces daily deposit volatility, showed fourth quarter 2010 average core deposits of $870.3 million, an increase of $23.5 million or 2.8% over the third quarter 2010 average. For the full year, 2010 average core deposits increased $123.2 million or 17.5% over the full year 2009 average. At December 31, 2010, period-end total deposits were $959.0 million compared to $827.9 million at December 31, 2009.

As expected, commercial loans reversed their negative growth trend and increased 3.9% to $243.0 million from December 31, 2009. Overall, steady lending activity was recorded during the fourth quarter, as the Bank booked 314 new and renewed loans totaling $92.3 million, 147 of which were new loans totaling $40.2 million. Since June 30, 2010, the Bank has booked 283 new loans for $80 million. The weak economic conditions together with the planned contraction in the construction and land development portfolios and resolution of problem loans led to a continued decline in period-end gross loans. Outstanding loans at December 31, 2010, were $857.0 million, down $26.0 million from the end of third quarter 2010. The decline in loans was expected due to transfers of problem loans to other real estate owned, resolution of problem loans, and the planned contraction in the Bank’s construction and land development portfolios which have declined $77.9 million over the past year and currently represent 9.7% of total gross loans, compared to 17.1% of total gross loans at December 31, 2009. Conversely, the Company’s securities portfolio grew by $86.3 million or 51.5% during the year 2010.

Capital levels

The Company’s capital ratios continue to be well above the minimum FDIC well-capitalized designated levels. At December 31, 2010, the Company’s Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and Total risk-based capital ratio were 13.38%, 15.86%, and 17.10% as compared to 13.66%, 14.38%, and 15.63% at December 31, 2009. The FDIC’s minimum well-capitalized designation ratios are 5.00%, 6.00%, and 10.00%, respectively.

Net interest margin and earnings before loan loss provision and taxes

Earnings before loan loss provisions and taxes were $5.3 million and $22.8 million, or 1.75% and 1.92% of average assets, for the fourth quarter and full year 2010, respectively. Results for linked quarter, quarter-over-quarter, and year-over-year were all down from previous periods generally reflecting compression in the net interest margin and increased operating expenses partially offset by improvement in noninterest income.

The net interest margin for the current quarter was 4.60%, down 8 basis points from the 4.68% margin reported for third quarter 2010. For the full year 2010 the net interest margin was 4.72%, down 47 basis points from the net interest margin of 5.19% reported for the full year 2009. A decline in the net interest margin had been expected primarily due to a change in the mix of earning assets and the persistent low interest rate environment for investment securities. The strong growth in core deposits together with the net contraction in the loan portfolio resulted in a significant addition to the investment portfolio which at December 31, 2010, represented 21.0% of total assets versus 14.0% of total assets at year end 2009. While the difference between the yield on loans and the cost of interest bearing funds maintained a spread of betw een 4.88% and 4.98% for the annual reporting periods, the difference between the cost of funds and the yield on the securities portfolio changed dramatically from 3.58% for the full year 2009 to 1.81% for the full year 2010. This decrease in investment portfolio spread combined with the material increase in the size of the securities portfolio is the primary reason for the decline in the net interest margin. Looking forward, any additional decline in the investment security spread could be offset by more robust loan activity suggesting a stable or increasing net interest margin.

Changes in noninterest income are evident in all individual line items with the most significant change in merchant bankcard fees. Year-over-year comparison shows an increase in bankcard fees of $309 thousand, or 25.8%, reflecting both additional volume and increased margins. During the fourth quarter 2010 the Company also benefited by $164 thousand from ORE rental income and fees earned on negotiated ORE dispositions.

Year-over-year noninterest expense changes are also evident in all line items with the most significant reflected in personnel, FDIC assessments, ORE expense and other noninterest expense, primarily related to professional fees. Personnel expense for the year was up $666 thousand or 3.9% which occurred primarily in the fourth quarter. During the fourth quarter accrual adjustments for unused vacation and incentive compensation together with valuation changes in previously granted cash-settled stock appreciation rights (reflecting the fourth quarter increase in PCBK share prices) accounted for most of the year-over-year and linked quarter change with the remainder attributed to recent staff additions in Seattle and Portland.

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 full year 2010 on Thursday, January 20, 2011, at 11:00 a.m. Pacific Time / 2:00 p.m. Eastern Time. To listen to the conference call, interested parties should call (866) 292-1418. The webcast will be available via Pacific Continental’s website (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 is typically available within twenty-four hours following the live webcast and will be 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, health care professionals, professional service providers and nonprofit organizations.

Since its founding in 1972, Pacific Continental Bank has been honored with numerous awards and recognitions from highly regarded third-party organizations including The Seattle Times, the Portland Business Journal and Oregon Business magazine. A complete list of the company’s awards and recognitions – as well as supplementary information about Pacific Continental Bank – can be found online at www.therightbank.com. 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.

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 ongo ing 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’s 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 u pdate 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.

PACIFIC CONTINENTAL CORPORATION
CONSOLIDATED INCOME STATEMENTS
(In thousands, except share amounts)
(Unaudited)
	Three months ended						Twelve months ended
	December 31,						December 31,
	2010			2009			2010			2009
Interest and dividend income
Loans	$	13,577		$	15,669		$	56,810		$	61,977
Securities		1,867			1,409			6,612			4,908
Federal funds sold & interest-bearing deposits with banks		5			1			11			5
		15,449			17,079			63,433			66,890
Interest expense
Deposits		2,224			2,473			9,293			9,553
Federal Home Loan Bank & Federal Reserve borrowings		538			686			2,325			2,691
Junior subordinated debentures		116			128			510			524
Federal funds purchased		5			8			44			83
		2,883			3,295			12,172			12,851
Net interest income		12,566			13,784			51,261			54,039
Provision for loan losses		3,250			7,000			15,000			36,000
Net interest income after provision for loan losses		9,316			6,784			36,261			18,039
Noninterest income
Service charges on deposit accounts		464			449			1,711			1,850
Bankcard fee income		427			297			1,505			1,196
Loan servicing fees		30			17			94			72
Mortgage banking income		125			59			270			306
Gain on sale of investment securities		-			-			45			-
Impairment losses on investment securities (OTTI)		-			-			(226	)		-
Other noninterest income		444			257			1,250			981
		1,490			1,079			4,649			4,405
Noninterest expense
Salaries and employee benefits		4,603			4,083			17,657			16,991
Premises and equipment		882			793			3,462			3,225
Bankcard processing		170			125			594			506
Business development		342			229			1,273			1,501
FDIC insurance assessment		667			419			2,143			1,927
Other real estate expense		413			223			1,316			820
Other noninterest expense		1,711			1,580			6,649			6,192
		8,788			7,452			33,094			31,162
Income (loss) before provision for income taxes		2,018			411			7,816			(8,718	)
Provision (benefit) for income taxes		827			387			2,724			(3,839	)
Net income (loss)	$	1,191		$	24		$	5,092		$	(4,879	)
Earnings (loss) per share:
Basic	$	0.07		$	0.00		$	0.28		$	(0.35	)
Diluted	$	0.07		$	0.00		$	0.28		$	(0.35	)
Weighted average shares outstanding:
Basic		18,405,939			16,862,572			18,399,245			13,961,310
Common stock equivalents
attributable to stock-based awards		11,741			41,122			13,284			-
Diluted		18,417,680			16,903,694			18,412,529			13,961,310
PERFORMANCE RATIOS
Return on average assets		0.39	%		0.01	%		0.43	%		-0.43	%
Return on average equity (book)		2.73	%		0.06	%		2.98	%		-3.60	%
Return on average equity (tangible) (1)		3.13	%		0.07	%		3.44	%		-4.33	%
Net interest margin		4.60	%		5.07	%		4.72	%		5.19	%
Efficiency ratio (2)		62.52	%		50.14	%		59.19	%		53.32	%
(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.

PACIFIC CONTINENTAL CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
(Unaudited)
	December 31,			December 31,
	2010			2009
ASSETS
Cash and due from banks	$	25,424		$	16,698
Interest-bearing deposits with banks		267			272
Total cash and cash equivalents		25,691			16,970
Securities available-for-sale		253,907			167,618
Loans held for sale		2,116			745
Loans, less allowance for loan losses and net deferred fees		839,815			930,997
Interest receivable		4,371			4,408
Federal Home Loan Bank stock		10,652			10,652
Property and equipment, net of accumulated depreciation		20,883			20,228
Goodwill and other intangible assets		22,458			22,681
Deferred tax asset		10,188			7,177
Taxes receivable		-			5,299
Other real estate owned		14,293			4,224
Prepaid FDIC assessment		4,387			6,242
Other assets		1,415			1,872
Total assets	$	1,210,176		$	1,199,113
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Noninterest-bearing demand	$	234,331		$	202,088
Savings and interest-bearing checking		574,333			475,869
Time $100,000 and over		63,504			68,031
Other time		86,791			81,930
Total deposits		958,959			827,918
Federal funds and overnight funds purchased		-			63,025
Federal Home Loan Bank advances and other borrowings		67,000			130,000
Junior subordinated debentures		8,248			8,248
Accrued interest and other payables		3,731			4,260
Total liabilities		1,037,938			1,033,451
Shareholders' equity
Common stock, shares authorized: 50,000,000 at December 31,
2010 and 25,000,000 at December 31, 2009
issued & outstanding:  18,415,132 at December 31, 2010
and 18,393,773 at December 31, 2009		137,062			136,316
Retained earnings		33,969			29,613
Accumulated other comprehensive income (loss)		1,207			(267	)
		172,238			165,662
Total liabilities and shareholders’ equity	$	1,210,176		$	1,199,113
CAPITAL RATIOS
Total capital (to risk weighted assets)		17.10	%		15.63	%
Tier I capital (to risk weighted assets)		15.86	%		14.38	%
Tier I capital (to leverage assets)		13.38	%		13.66	%
Tangible common equity (to tangible assets)		12.61	%		12.15	%
Tangible common equity (to risk-weighted assets)		15.18	%		14.28	%
OTHER FINANCIAL DATA
Shares outstanding at end of period		18,415,132			18,393,773
Shareholders' equity (tangible) (1)	$	149,780		$	142,981
Book value per share	$	9.35		$	9.01
Tangible book value per share (1)	$	8.13		$	7.77
(1) Tangible equity excludes goodwill and core deposit intangible related to acquisitions.

PACIFIC CONTINENTAL CORPORATION
SELECTED OTHER FINANCIAL INFORMATION AND RATIOS
(In thousands)
(Unaudited)
	December 31,
	2010						2009
	Dollars			Percent			Dollars			Percent
LOANS BY TYPE
Real estate secured loans:
Permanent Loans:
Multifamily residential	$	57,850			6.8	%	$	68,509			7.2	%
Residential 1-4 family		76,692			8.9	%		86,795			9.2	%
Owner-occupied commercial		201,286			23.5	%		197,884			20.9	%
Non-owner-occupied commercial		163,071			19.0	%		147,605			15.6	%
Other loans secured by real estate		23,950			2.8	%		37,404			4.0	%
Total permanent real estate loans		522,849			61.0	%		538,197			56.9	%
Construction Loans:
Multifamily residential		6,192			0.7	%		18,472			2.0	%
Residential 1-4 family		22,683			2.6	%		41,714			4.4	%
Commercial real estate		11,730			1.4	%		38,921			4.1	%
Commercial bare land and acquisition & development		25,587			3.0	%		30,169			3.2	%
Residential bare land and acquisition & development		17,263			2.0	%		30,484			3.2	%
Other		-			0.0	%		1,582			0.2	%
Total construction real estate loans		83,455			9.7	%		161,342			17.1	%
Total real estate loans		606,304			70.7	%		699,539			74.0	%
Commercial loans		243,034			28.4	%		233,821			24.7	%
Consumer loans		5,900			0.7	%		6,763			0.7	%
Other loans		1,730			0.2	%		5,629			0.6	%
Gross loans		856,968			100.0	%		945,752			100.0	%
Deferred loan origination fees		(583	)					(1,388	)
		856,385						944,364
Allowance for loan losses		(16,570	)					(13,367	)
	$	839,815					$	930,997
Real estate loans held for sale	$	2,116					$	745
	Three months ended						Twelve months ended
	December 31,						December 31,
		2010			2009			2010			2009
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period	$	17,769		$	18,348		$	13,367		$	10,980
Provision for loan losses		3,250			7,000			15,000			36,000
Loan charge offs		(5,325	)		(12,009	)		(15,514	)		(33,881	)
Loan recoveries		876			28			3,717			268
Net charge offs		(4,449	)		(11,981	)		(11,797	)		(33,613	)
Balance at end of period	$	16,570		$	13,367		$	16,570		$	13,367

PACIFIC CONTINENTAL CORPORATION
SELECTED OTHER FINANCIAL INFORMATION AND RATIOS (Continued)
(In thousands)
(Unaudited)
	December 31,			December 31,
	2010			2009
NONPERFORMING ASSETS
Non-accrual loans
Real estate secured loans:
Permanent Loans:
Multifamily residential	$	1,010		$	-
Residential 1-4 family		6,123			704
Owner-occupied commercial		1,322			375
Non-owner-occupied commercial		8,428			-
Other loans secured by real estate		538			1,097
Total permanent real estate loans		17,421			2,176
Construction Loans:
Multifamily residential		1,985			4,409
Residential 1-4 family		2,493			4,903
Commercial real estate		1,671			5,537
Commercial bare land and acquisition & development		391			2,338
Residential bare land and acquisition & development		1,032			8,122
Total construction real estate loans		7,572			25,309
Total real estate loans		24,993			27,485
Commercial loans		8,033			5,268
Consumer loans		-			39
Total nonaccrual loans		33,026			32,792
90 days past due and accruing interest		-			-
Total nonperforming loans		33,026			32,792
Nonperforming loans guaranteed by government		(1,056	)		(446	)
Net nonperforming loans		31,970			32,346
Other real estate owned		14,293			4,224
Total nonperforming assets, net of guaranteed loans	$	46,263		$	36,570
LOAN QUALITY RATIOS
Allowance for loan losses as a percentage of total loans
outstanding, net of loans held for sale		1.93	%		1.42	%
Allowance for loan losses as a percentage of total
nonperforming loans, net of government guarantees		51.83	%		41.33	%
Net loan charge offs (recoveries) as a percentage of
average loans, annualized		2.03	%		4.98	%
Net nonperforming loans as a percentage of total loans		3.73	%		3.43	%
Nonperforming assets as a percentage of total assets		3.82	%		3.05	%

PACIFIC CONTINENTAL CORPORATION
SELECTED OTHER FINANCIAL INFORMATION AND RATIOS (Continued)
(In thousands)
(Unaudited)
	Three months ended						Twelve months ended
	December 31,						December 31,
	2010			2009			2010			2009
BALANCE SHEET AVERAGES
Loans (1)	$	868,044		$	954,543		$	905,245		$	959,899
Allowance for loan losses		(19,278	)		(19,797	)		(17,651	)		(16,111	)
Loans, net of allowance		848,766			934,746			887,594			943,788
Securities and short-term deposits		234,405			144,879			199,083			96,875
Earning assets		1,083,171			1,079,625			1,086,677			1,040,663
Non-interest-earning assets		113,863			95,893			102,612			89,308
Assets	$	1,197,034		$	1,175,518		$	1,189,289		$	1,129,971
Interest-bearing core deposits (2)	$	640,777		$	575,834		$	610,928		$	524,008
Non-interest-bearing core deposits (2)		229,526			188,310			216,154			179,886
Core deposits (2)		870,303			764,144			827,082			703,894
Non-core interest-bearing deposits		68,663			61,525			77,087			78,941
Deposits		938,966			825,669			904,169			782,835
Borrowings		80,077			177,354			111,623			207,431
Other non-interest-bearing liabilities		4,671			5,520			2,739			4,235
Liabilities		1,023,714			1,008,543			1,018,531			994,501
Shareholders' equity (book)		173,320			166,975			170,758			135,470
Liabilities and equity	$	1,197,034		$	1,175,518		$	1,189,289		$	1,129,971
Shareholders' equity (tangible) (3)	$	150,834		$	144,267		$	148,187		$	112,676
SELECTED MARKET DATA
Eugene market loans, net of fees, period end	$	256,979		$	259,435
Portland market loans, net of fees, period end		404,965			435,304
Seattle market loans, net of fees, period end		194,441			249,625
Total loans, net of fees, period end	$	856,385		$	944,364
Eugene market core deposits, period end (2)	$	538,011		$	492,012
Portland market core deposits, period end (2)		239,991			165,716
Seattle market core deposits, period end (2)		117,836			114,258
Total core deposits, period end (2)		895,838			771,986
Other deposits, period end		63,121			55,932
Total	$	958,959		$	827,918
Eugene market core deposits, average (2)	$	525,937		$	487,202		$	510,366		$	453,557
Portland market core deposits, average (2)		225,769			165,125			199,341			144,416
Seattle market core deposits, average (2)		118,597			111,817			117,375			105,921
Total core deposits, average (2)		870,303			764,144			827,082			703,894
Other deposits, average		68,663			61,525			77,087			78,941
Total	$	938,966		$	825,669		$	904,169		$	782,835
NET INTEREST MARGIN RECONCILIATION
Yield on average loans		6.35	%		6.65	%		6.40	%		6.57	%
Yield on average securities		3.17	%		3.86	%		3.33	%		5.07	%
Yield on average earning assets		5.66	%		6.28	%		5.84	%		6.43	%
Rate on average interest-bearing core deposits		1.15	%		1.51	%		1.28	%		1.54	%
Rate on average interest-bearing non-core deposits		2.13	%		1.86	%		1.89	%		1.85	%
Rate on average interest-bearing deposits		1.24	%		1.59	%		1.40	%		1.61	%
Rate on average borrowings		3.26	%		1.84	%		2.58	%		1.59	%
Cost of interest-bearing funds		1.45	%		1.60	%		1.52	%		1.59	%
Interest rate spread		4.21	%		4.68	%		4.32	%		4.84	%
Net interest margin		4.60	%		5.07	%		4.72	%		5.19	%
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(1) Includes loans held-for-sale and loans held-for-investment.
(2) Core deposits include all demand, savings, & interest checking accounts, plus all local time deposits including local
time deposits in excess of $100,000.
(3) Tangible equity excludes goodwill and core deposit intangible related to acquisitions.