Exhibit 99.1
For more information, contact:
Robert D. Sznewajs
President & CEO
(503) 598-3243
Anders Giltvedt
Executive Vice President & CFO
(503) 598-3250
WEST COAST BANCORP REPORTS FOURTH QUARTER AND FULL YEAR 2005
EARNINGS
| • | DILUTED EARNINGS PER SHARE OF $.42, INCREASED 11% OVER FOURTH QUARTER 2004 |
| • | RETURN ON AVERAGE EQUITY OF 16.5% IN THE FOURTH QUARTER OF 2005 |
| | » | AVERAGE TOTAL LOANS AND DEPOSITS INCREASED 11% AND 12%, RESPECTIVELY |
| | » | 16% GROWTH IN AVERAGE NON-INTEREST BEARING DEMAND DEPOSITS |
| | » | TOTAL NON-INTEREST INCOME INCREASED NEARLY 20% |
Lake Oswego, OR – January 17, 2006– West Coast Bancorp (NASDAQ: WCBO) today announced quarterly earnings of $6.5 million or $0.42 per diluted share for the fourth quarter of 2005, compared to fourth quarter 2004 earnings of $5.8 million or $.38 per diluted share, representing an 11% increase in diluted earnings per share.
| Three months ended
December 31,
| Twelve months ended
December 31,
|
|---|
| GAAP
| Core*
| GAAP
|
|---|
($'s in 000's except per share data)
| 2005
| 2004
| 2005
| 2005
| 2004
|
|---|
| Diluted Earnings Per Share | | | $ | .42 | | $ | .38 | | $ | 1.59 | | $ | 1.55 | | $ | 1.42 | |
| Return On Average Equity | | | | 16.5 | % | | 15.9 | % | | 16.1 | % | | 15.8 | % | | 15.5 | % |
| Total Period End Loans | | | | | | | | | | | | $ | 1,554,454 | | $ | 1,427,994 | |
| Total Period End Deposits | | | | | | | | | | | | $ | 1,649,462 | | $ | 1,472,709 | |
*Core earnings for the year ended December 31, 2005, and numbers derived using core earnings for the year, including core earnings per diluted share, core return on average equity, and core four-year compound annual growth rate, are non-GAAP(Generally Accepted Accounting Principles)financial measures derived by adjusting the Company’s GAAP earnings (I) for the beneficial impact of the third quarter 2005 State of Oregon corporate income tax credit of approximately $.3 million or $.02 per diluted share and (II) for the negative impact of a first quarter impairment charge of approximately $.8 million or $.05 per diluted share. Management uses this non-GAAP information internally and has disclosed it to investors based on its belief that the information provides additional, valuable information relating to its core operating performance as compared to prior periods.
“With solid revenue growth, the Company’s return on average equity improved to 16.5% in the fourth quarter of 2005, while earnings per fully diluted share were .42, representing 11% growth over the same period a year ago,” said Robert D. Sznewajs, President & CEO. “Continued growth in the company’s real estate construction and home equity loan portfolios combined with excellent growth in demand deposits contributed to a strong net interest margin for the quarter of 5.12%,” Sznewajs continued.
WEST COAST BANCORP REPORTS FOURTH QUARTER 2005 EARNINGS
January 17, 2006
Page 2 of 8
West Coast Bancorp also announced 2005 core earnings of $24.4 million or $1.59per diluted share for the year compared to earnings of $22.0 million or $1.42 per diluted share in 2004. Sznewajs also noted, “The company is very proud of the team’s sustained, strong performance. The 2005 results represent a four-year compounded annual growth rate in core earnings per share of 13.2%.” GAAP earnings per diluted share increased from $1.42 in 2004 to $1.55 per diluted share for 2005.
The following table reconciles GAAP net income to core earnings, including per-share figures:
| Twelve months ended Dec. 31,
|
|---|
(Dollars in thousands, except per share data)
| 2005
| 2004
|
|---|
| Net income | | | $ | 23,840 | | $ | 22,008 | |
| Add back: Impairment charge on securities, | | |
| net of tax | | | | 803 | | | — | |
| Subtract: Impact of State corporate income tax credit | | | | (274 | ) | | — | |
|
| |
| |
| Core earnings | | | $ | 24,369 | | $ | 22,008 | |
|
| |
| |
| Diluted Earnings per Share | | |
| GAAP earnings | | | $ | 1.55 | | $ | 1.42 | |
| Core earnings | | | $ | 1.59 | | $ | 1.42 | |
| Twelve months ended Dec. 31,
|
|---|
| 2001
| |
|---|
| Diluted earnings per share | | | $ | 0.90 | | | | |
| Add back: Kiting charge net of tax | | | | 0.07 | | | | |
|
| | | |
| Core diluted earnings per share | | | $ | 0.97 | | | | |
|
| | | |
| Four-year compound annual growth rate | | |
| GAAP rate | | | | 15.3 | % | | | |
| Core rate | | | | 13.2 | % | | | |
Financial Results:
For the quarter ended December 31, 2005, net interest income was $23.4 million, increasing $3.9 million or 20% from the same quarter in 2004. As noted, the year over year growth in fourth quarter average loan and deposit balances was 11% and 12%, respectively. Average non-interest bearing deposits led the way increasing $63 million or 16% from the same period a year ago and represented 28% of total average deposits. The combination of the increase in average demand deposits and the higher value of those deposits in the higher interest rate environment accounted for approximately half of the 41 basis points interest rate margin improvement in the fourth quarter of 2005 from the same quarter a year ago.
Fourth quarter 2005 total non-interest income of $6.6 million grew 19% or $1.1 million from the fourth quarter 2004. Deposit service charge and payment system related revenues, primarily from interchange income and merchant services revenues, experienced increases of over 30% each and $.9 million combined compared to the same quarter 2004. Trust and investment revenue growth was 19% or $.2 million. Gain on sales of loans declined by nearly a third or $.3 million primarily due to lower gains on sales of Small Business Administration loans in the most recent quarter.
WEST COAST BANCORP REPORTS FOURTH QUARTER 2005 EARNINGS
January 17, 2006
Page 3 of 8
Total non-interest expense increased $2.8 million or 17% in the fourth quarter of 2005 from the same quarter in 2004. Personnel expenses grew 10% or $.9 million with a majority of the increase resulting from higher performance-based variable compensation and the addition of new team members over the last year. Compared to fourth quarter 2004, marketing expense increased $.6 million due to higher direct mailing costs, while occupancy cost was up $.3 million or 22%, related mainly to higher rent and depreciation expense on low income housing investment tax credits. Associated with a $1.0 million expense for a legal matter, other non-interest expense increased $.9 million from the same quarter of 2004.
Primarily due to loan growth, the provision for loan losses was $.95 million in the fourth quarter 2005, an increase of $.8 million over the same quarter last year.
Annualized loan net charge-offs were low at 0.05% of average loans in the fourth quarter 2005, compared to .17% in the same quarter a year ago. Non-performing assets at December 31, 2005, declined to $1.1 million or 0.05% of total assets from $2.2 million or 0.12% a year ago.
During the fourth quarter of 2005, consistent with its capital plan, the Company repurchased approximately 103,000 shares at an average cost of $25.78 per share. At December 31, 2005, approximately 352,000 shares remained available for future repurchases under the Company’s share repurchase program.
Other:
The Company will hold a Webcast conference call Wednesday, January 18th, at 8:30 a.m. Pacific Time, during which the Company will discuss fourth quarter 2005 results, review its strategic progress, and provide management’s current expectations for 2006.
To access the conference call via a live Webcast, go towww.wcb.com and click on Investor Relations/Conference Call/West Coast Bancorp Webcast. The conference call may also be accessed by dialing 877-604-2074 a few minutes prior to 8:30 a.m. PDT. The call will be available for replay by accessing the Company’s website atwww.wcb.comand clicking on Investor Relations/Conference Call/Archived Conference Call (Replay).
West Coast Bancorp is a Northwest bank holding company with $2 billion in assets, operating 52 offices in Oregon and Washington. West Coast Bancorp, the parent company of West Coast Bank and West Coast Trust, is headquartered in Oregon. West Coast Bank serves clients who seek the resources, sophisticated products and expertise of larger financial institutions, along with the local decision making, market knowledge, and customer service orientation of a community bank. The Company offers a broad range of banking, investment, fiduciary and trust services. For more information, please visit the Company web site atwww.wcb.com.
WEST COAST BANCORP REPORTS FOURTH QUARTER 2005 EARNINGS
January 17, 2006
Page 4 of 8
Forward Looking Statements:
Statements in this release regarding future events, performance or results are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”) and are made pursuant to the safe harbors of the PSLRA. Actual results could be quite different from those expressed or implied by the forward-looking statements. Factors that could cause results to differ from forward-looking statements include, among others: general economic and banking business conditions; evolving banking industry standards; competitive factors, including pricing pressures on Bancorp’s yields on loans and rates paid on deposits; changing customer investment, deposit and borrowing behaviors; changing interest rate environments, including the shape and the level of the yield curve, all of which could decrease net interest income and fee income, including reducing gains on sales of loans; vendor service quality; changes in laws and other legal developments; changes in government funding of Small Business Administration (“SBA”) loans; and changes in technology or required investments in technology.
Furthermore, the forward-looking statements are subject to risks related to the Company’s ability to: attract and retain lending officers and other key personnel; close loans in the pipeline; generate loan and deposit balances at projected spreads; maintain asset quality; control the level of net charge-offs; sustain fee income generation; retain customers of greatest value; create revenue growth from investments in new team members and branches, control expenses; monitor and manage the Company’s internal control environments, including disclosure and financial reporting controls, and other matters.
Readers are cautioned not to place undue reliance on the forward-looking statements which reflect management’s analysis only as of the date of the statements. Readers should carefully review the disclosures we file from time to time with the Securities and Exchange Commission. Bancorp undertakes no obligation to publicly review or update forward-looking statements to reflect events or circumstances that arise after the date of this report.
WEST COAST BANCORP REPORTS FOURTH QUARTER 2005 EARNINGS
January 17, 2006
Page 5 of 8
| West Coast Bancorp
Consolidated Income Statements
|
|---|
| Three months ended
| Twelve months ended
|
|---|
| (Unaudited) | December 31, | Sept. 30, | December 31, |
|---|
(Dollars and shares in thousands)
| 2005
| 2004
| 2005
| 2005
| 2004
|
|---|
| Net interest income | | | | | | | | | | | | | | | | | |
| Interest and fees on loans | | | $ | 28,018 | | $ | 21,710 | | $ | 26,264 | | $ | 101,419 | | $ | 79,903 | |
| Interest on investment securities | | | | 3,029 | | | 2,926 | | | 2,596 | | | 10,920 | | | 12,889 | |
| Other interest income | | | | 263 | | | 75 | | | 298 | | | 652 | | | 196 | |
|
| |
| |
| |
| |
| |
| Total interest income | | | | 31,310 | | | 24,711 | | | 29,158 | | | 112,991 | | | 92,988 | |
| Interest expense on deposit accounts | | | | 6,566 | | | 3,093 | | | 5,574 | | | 20,497 | | | 11,214 | |
| Interest on borrowings including subordinated debentures | | | | 1,357 | | | 2,136 | | | 1,312 | | | 5,933 | | | 6,901 | |
|
| |
| |
| |
| |
| |
| Total interest expense | | | | 7,923 | | | 5,229 | | | 6,886 | | | 26,430 | | | 18,115 | |
|
| |
| |
| |
| |
| |
| Net interest income | | | | 23,387 | | | 19,482 | | | 22,272 | | | 86,561 | | | 74,873 | |
| Provision for loan loss | | | | 950 | | | 135 | | | 400 | | | 2,175 | | | 2,260 | |
| Non-interest income | | |
| Service charges on deposit accounts | | | | 2,459 | | | 1,861 | | | 2,316 | | | 8,686 | | | 7,474 | |
| Payment systems related revenue | | | | 1,352 | | | 1,030 | | | 1,282 | | | 4,900 | | | 3,878 | |
| Trust and investment services revenues | | | | 1,424 | | | 1,198 | | | 1,359 | | | 5,151 | | | 4,558 | |
| Gains on sales of loans | | | | 628 | | | 913 | | | 741 | | | 3,046 | | | 3,906 | |
| Other | | | | 706 | | | 595 | | | 764 | | | 3,348 | | | 2,667 | |
| Loss on impairment of securities | | | | — | | | — | | | — | | | (1,316 | ) | | — | |
| Losses on sales of securities | | | | — | | | (95 | ) | | (343 | ) | | (716 | ) | | (20 | ) |
|
| |
| |
| |
| |
| |
| Total non-interest income | | | | 6,569 | | | 5,502 | | | 6,119 | | | 23,099 | | | 22,463 | |
| Non-interest expense | | |
| Salaries and employee benefits | | | | 10,247 | | | 9,352 | | | 10,703 | | | 40,606 | | | 36,297 | |
| Equipment | | | | 1,317 | | | 1,314 | | | 1,226 | | | 4,837 | | | 4,917 | |
| Occupancy | | | | 1,667 | | | 1,368 | | | 1,530 | | | 6,267 | | | 5,722 | |
| Payment systems related expense | | | | 515 | | | 398 | | | 428 | | | 1,739 | | | 1,449 | |
| Professional fees | | | | 801 | | | 883 | | | 523 | | | 2,984 | | | 2,314 | |
| Postage, printing and office supplies | | | | 785 | | | 667 | | | 713 | | | 2,833 | | | 2,616 | |
| Marketing | | | | 1,202 | | | 638 | | | 998 | | | 3,830 | | | 2,402 | |
| Communications | | | | 310 | | | 314 | | | 300 | | | 1,210 | | | 1,182 | |
| Other non-interest expense | | | | 2,717 | | | 1,806 | | | 2,013 | | | 8,328 | | | 6,472 | |
|
| |
| |
| |
| |
| |
| Total non-interest expense | | | | 19,561 | | | 16,740 | | | 18,434 | | | 72,634 | | | 63,371 | |
|
| |
| |
| |
| |
| |
| Income before income taxes | | | | 9,445 | | | 8,109 | | | 9,557 | | | 34,851 | | | 31,705 | |
| Provision for income taxes | | | | 2,983 | | | 2,266 | | | 2,844 | | | 11,011 | | | 9,697 | |
|
| |
| |
| |
| |
| |
| Net income | | | $ | 6,462 | | $ | 5,843 | | $ | 6,713 | | $ | 23,840 | | $ | 22,008 | |
|
| |
| |
| |
| |
| |
| Basic earnings per share | | | $ | 0.44 | | $ | 0.40 | | $ | 0.46 | | $ | 1.63 | | $ | 1.48 | |
| Diluted earnings per share | | | $ | 0.42 | | $ | 0.38 | | $ | 0.44 | | $ | 1.55 | | $ | 1.42 | |
| Weighted average common shares | | | | 14,607 | | | 14,768 | | | 14,660 | | | 14,658 | | | 14,849 | |
| Weighted average diluted shares | | | | 15,299 | | | 15,476 | | | 15,370 | | | 15,344 | | | 15,526 | |
| Tax equivalent net interest income | | | $ | 23,758 | | $ | 19,887 | | $ | 22,634 | | $ | 88,026 | | $ | 76,526 | |
WEST COAST BANCORP REPORTS FOURTH QUARTER 2005 EARNINGS
January 17, 2006
Page 6 of 8
| West Coast Bancorp
Consolidated Balance Sheets
|
|---|
(Dollars and shares in thousands, unaudited)
| Dec. 31,
2005
| Dec. 31,
2004
| Sept. 30,
2005
|
|---|
| Assets: | | | | | | | | | | | |
| Cash and cash equivalents | | | $ | 88,369 | | $ | 40,854 | | $ | 78,539 | |
| Investments | | | | 292,664 | | | 266,262 | | | 274,344 | |
| Total loans | | | | 1,554,454 | | | 1,427,994 | | | 1,516,740 | |
| Allowance for loan losses | | | | (20,469 | ) | | (18,971 | ) | | (19,728 | ) |
|
| |
| |
| |
| Loans, net | | | | 1,533,985 | | | 1,409,023 | | | 1,497,012 | |
| Other assets | | | | 82,120 | | | 74,780 | | | 83,550 | |
|
| |
| |
| |
| Total assets | | | $ | 1,997,138 | | $ | 1,790,919 | | $ | 1,933,445 | |
|
| |
| |
| |
| Liabilities and Stockholders' Equity: | | |
| Demand | | | $ | 456,760 | | $ | 391,746 | | $ | 459,831 | |
| Savings and interest bearing demand | | | | 827,909 | | | 738,402 | | | 821,042 | |
| Certificates of deposits | | | | 364,793 | | | 342,561 | | | 363,249 | |
|
| |
| |
| |
| Total deposits | | | | 1,649,462 | | | 1,472,709 | | | 1,644,122 | |
| Borrowings and subordinated debentures | | | | 170,450 | | | 153,282 | | | 114,300 | |
| Other liabilities | | | | 20,103 | | | 17,074 | | | 20,066 | |
|
| |
| |
| |
| Total liabilities | | | | 1,840,015 | | | 1,643,065 | | | 1,778,488 | |
| Stockholders' equity | | | | 157,123 | | | 147,854 | | | 154,957 | |
|
| |
| |
| |
| Total liabilities and stockholders' equity | | | $ | 1,997,138 | | $ | 1,790,919 | | $ | 1,933,445 | |
|
| |
| |
| |
| Common shares outstanding period end | | | | 14,692 | | | 14,872 | | | 14,761 | |
| Book value per common share | | | $ | 10.69 | | $ | 9.94 | | $ | 10.50 | |
| Tangible book value per common share | | | $ | 10.68 | | $ | 9.91 | | $ | 10.48 | |
| West Coast Bancorp
Period End Loan Portfolio By Category
|
|---|
(Dollars in thousands, unaudited)
| Dec. 31,
2005
| Dec. 31,
2004
| Change
Amount
| %
| Sept. 30,
2005
|
|---|
| Commercial loans | | | $ | 364,604 | | $ | 357,776 | | $ | 6,828 | | | 2 | % | $ | 374,054 | |
| Real estate construction loans | | | | 210,828 | | | 116,974 | | | 93,854 | | | 80 | % | | 187,779 | |
| Real estate mortgage loans | | | | 242,015 | | | 212,959 | | | 29,056 | | | 14 | % | | 218,511 | |
| Real estate commercial loans | | | | 709,176 | | | 704,390 | | | 4,786 | | | 1 | % | | 707,032 | |
| Installment and other consumer loans | | | | 27,831 | | | 35,895 | | | (8,064 | ) | | -22% | | | 29,364 | |
|
| |
| |
| |
| |
| |
| Total loans | | | $ | 1,554,454 | | $ | 1,427,994 | | $ | 126,460 | | | 9 | % | $ | 1,516,740 | |
|
| |
| |
| | | |
| |
| (Reconciliation to GAAP financial measures)* | | |
| Total loans excluding real estate commercial loans | | | $ | 845,278 | | $ | 723,604 | | $ | 121,674 | | | 17 | % | $ | 809,708 | |
| Real estate commercial loans | | | | 709,176 | | | 704,390 | | | 4,786 | | | 1 | % | | 707,032 | |
| |
| |
| |
| |
| |
| |
| Total loans | | | $ | 1,554,454 | | $ | 1,427,994 | | $ | 126,460 | | | 9 | % | $ | 1,516,740 | |
|
| |
| |
| | | |
| |
*Management uses this non-GAAP information internally, and has disclosed it to investors, based on its belief that the information provides additional, valuable information relating to its operating results in light of its business strategies.
WEST COAST BANCORP REPORTS FOURTH QUARTER 2005 EARNINGS
January 17, 2006
Page 7 of 8
| West Coast Bancorp
Financial Information
|
|---|
(Dollars in thousands except for per share data, unaudited)
(all rates have been annualized where appropriate)
| Fourth
Quarter
2005
| Fourth
Quarter
2004
| Third
Quarter
2005
| Year
to date
2005
| Year
to date
2004
|
|---|
| PERFORMANCE RATIOS | | | | | | | | | | | | | | | | | |
| - Return on average assets | | | | 1.31 | % | | 1.31 | % | | 1.41 | % | | 1.28 | % | | 1.28 | % |
| - Return on average common equity | | | | 16.49 | % | | 15.90 | % | | 17.40 | % | | 15.76 | % | | 15.45 | % |
| - Non-interest income to average assets | | | | 1.34 | % | | 1.23 | % | | 1.29 | % | | 1.24 | % | | 1.31 | % |
| - Non-interest expense to average assets | | | | 3.98 | % | | 3.75 | % | | 3.88 | % | | 3.88 | % | | 3.69 | % |
| - Efficiency ratio, tax equivalent | | | | 64.5 | % | | 65.7 | % | | 63.4 | % | | 64.2 | % | | 64.0 | % |
NET INTEREST MARGIN | | |
| - Yield on interest-earning assets | | | | 6.83 | % | | 5.95 | % | | 6.59 | % | | 6.49 | % | | 5.84 | % |
| - Rate on interest-bearing liabilities | | | | 2.38 | % | | 1.71 | % | | 2.14 | % | | 2.06 | % | | 1.50 | % |
| - Net interest spread | | | | 4.45 | % | | 4.24 | % | | 4.45 | % | | 4.43 | % | | 4.34 | % |
| - Net interest margin | | | | 5.12 | % | | 4.71 | % | | 5.05 | % | | 4.99 | % | | 4.72 | % |
AVERAGE ASSETS | | |
| - Investment securities | | | $ | 279,625 | | $ | 283,748 | | $ | 247,101 | | $ | 262,134 | | $ | 302,200 | |
| - Commercial loans | | | $ | 361,158 | | $ | 321,152 | | $ | 361,771 | | $ | 360,898 | | $ | 277,882 | |
| - Real estate construction loans | | | | 202,030 | | | 112,230 | | | 169,914 | | | 157,785 | | | 117,413 | |
| - Real estate mortgage loans | | | | 225,543 | | | 210,072 | | | 220,372 | | | 219,422 | | | 196,698 | |
| - Real estate commercial loans | | | | 713,634 | | | 695,326 | | | 709,822 | | | 710,119 | | | 672,295 | |
| - Installment and other consumer loans | | | | 28,551 | | | 36,637 | | | 29,854 | | | 31,708 | | | 37,159 | |
|
| |
| |
| |
| |
| |
| - Total loans | | | $ | 1,530,916 | | $ | 1,375,417 | | $ | 1,491,733 | | $ | 1,479,932 | | $ | 1,301,447 | |
| - Total interest earning assets | | | $ | 1,840,939 | | $ | 1,679,300 | | $ | 1,777,423 | | $ | 1,764,209 | | $ | 1,621,683 | |
| - Other assets | | | | 110,692 | | | 98,445 | | | 108,797 | | | 105,551 | | | 95,999 | |
|
| |
| |
| |
| |
| |
| - Total assets | | | $ | 1,951,631 | | $ | 1,777,745 | | $ | 1,886,220 | | $ | 1,869,760 | | $ | 1,717,682 | |
AVERAGE LIABILITIES & EQUITY | | |
| - Demand deposits | | | $ | 459,201 | | $ | 396,102 | | $ | 442,922 | | $ | 421,766 | | $ | 351,432 | |
| - Interest bearing demand, | | |
| savings, and money market | | | | 842,663 | | | 745,705 | | | 790,375 | | | 789,054 | | | 737,409 | |
| - Certificates of deposits | | | | 360,717 | | | 343,068 | | | 373,197 | | | 362,035 | | | 336,623 | |
|
| |
| |
| |
| |
| |
| - Total deposits | | | $ | 1,662,581 | | $ | 1,484,875 | | $ | 1,606,494 | | $ | 1,572,855 | | $ | 1,425,464 | |
| - Borrowings and subordinated debentures | | | $ | 116,020 | | $ | 130,244 | | $ | 112,777 | | $ | 130,352 | | $ | 136,259 | |
| - Total interest bearing liabilities | | | $ | 1,319,400 | | $ | 1,219,017 | | $ | 1,276,349 | | $ | 1,281,441 | | $ | 1,210,290 | |
| - Other liabilities | | | | 476,809 | | | 412,484 | | | 456,816 | | | 437,056 | | | 364,965 | |
|
| |
| |
| |
| |
| |
| - Total liabilities | | | $ | 1,796,209 | | $ | 1,631,501 | | $ | 1,733,165 | | $ | 1,718,497 | | $ | 1,575,255 | |
| - Average common equity | | | | 155,422 | | | 146,244 | | | 153,055 | | | 151,263 | | | 142,427 | |
|
| |
| |
| |
| |
| |
| - Total average liabilities and common equity | | | $ | 1,951,631 | | $ | 1,777,745 | | $ | 1,886,220 | | $ | 1,869,760 | | $ | 1,717,682 | |
AVERAGE ASSET/LIABILITY RATIOS | | |
| - Average stockholders' equity to average assets | | | | 7.96 | % | | 8.23 | % | | 8.11 | % | | 8.09 | % | | 8.29 | % |
| - Average int. earning assets to int. bearing liabilities | | | | 139.5 | % | | 137.8 | % | | 139.3 | % | | 137.7 | % | | 134.0 | % |
| - Average loans to average assets | | | | 78.4 | % | | 77.4 | % | | 79.1 | % | | 79.2 | % | | 75.8 | % |
| - Interest bearing deposits to assets | | | | 61.7 | % | | 61.2 | % | | 61.7 | % | | 61.6 | % | | 62.5 | % |
WEST COAST BANCORP REPORTS FOURTH QUARTER 2005 EARNINGS
January 17, 2006
Page 8 of 8
| West Coast Bancorp
Allowance For Loan Losses and Net Charge-offs
|
|---|
(Dollars in thousands, unaudited)
| Quarter ended
Dec. 31,
2005
| Quarter ended
Dec. 31,
2004
| Quarter ended
Sept. 30,
2005
|
|---|
| Allowance for loan losses, beginning of period | | | $ | $19,728 | | $ | 19,421 | | $ | 19,897 | |
| Provision for loan loss | | | | 950 | | | 135 | | | 400 | |
| Charge-offs | | | | 412 | | | 784 | | | 823 | |
| Recoveries | | | | 203 | | | 199 | | | 254 | |
|
| |
| |
| |
| Net (recoveries) charge-offs | | | | 209 | | | 585 | | | 569 | |
|
| |
| |
| |
| Total allowance for loan losses | | | $ | 20,469 | | $ | 18,971 | | $ | 19,728 | |
|
| |
| |
| |
| Net loan charge-offs to average loans (annualized) | | | | 0.05 | % | | 0.17 | % | | 0.15 | % |
(Dollars in thousands, unaudited)
| Full year
Dec. 31,
2005
| Full year
Dec. 31,
2004
|
|---|
| Allowance for loan losses, beginning of performing loans | | | | 18,971 | | $ | 18,131 | |
| Provision for loan loss | | | | 2,175 | | | 2,260 | |
| Charge-offs | | | | 1,624 | | | 2,374 | |
| Recoveries | | | | 947 | | | 954 | |
|
| |
| |
| Net Charge-offs | | | | 677 | | | 1,420 | |
|
| |
| |
| Total allowance for loan losses | | | $ | 20,469 | | $ | 18,971 | |
|
| |
| |
| Net loan charge-offs to average loans (annualized) | | | | 0.05 | % | | 0.11 | % |
| West Coast Bancorp
Non-performing Assets
|
|---|
(Dollars in thousands, unaudited)
| Dec. 31,
2005
| Dec. 31,
2004
| Sept. 30,
2005
|
|---|
| Non-accruing loans | | | $ | 1,088 | | $ | 1,803 | | $ | 1,568 | |
| 90 day delinquencies | | | | — | | | — | | | — | |
|
| |
| |
| |
| Total non-performing loans | | | | 1,088 | | | 1,803 | | | 1,568 | |
Other real estate owned | | | | — | | | 384 | | | 98 | |
|
| |
| |
| |
| Total non-performing assets | | | $ | 1,088 | | $ | 2,187 | | $ | 1,666 | |
|
| |
| |
| |
| Allowance for loan losses to total loans | | | | 1.32 | % | | 1.33 | % | | 1.30 | % |
| Non-performing loans to total loans | | | | 0.07 | % | | 0.13 | % | | 0.10 | % |
| Allowance for loan losses to non-performing loans | | | | 1882 | % | | 1052 | % | | 1258 | % |
| Non-performing assets to total assets | | | | 0.05 | % | | 0.12 | % | | 0.09 | % |
| Allowance for loan losses to non-performing assets | | | | 1882 | % | | 867 | % | | 1184 | % |
