Exhibit 99
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 2009 First Quarter Results
| · | West Coast Bank’s total capital ratio increased to 10.68% at March 31, 2009 from 10.57% at march 31, 2008. West Coast Bank continues to be well capitalized. |
| · | the allowance for credit losses increased as the provision for credit losses exceeded net charge-offs by $8.5 million |
| · | West Coast Bancorp recorded a non-cash goodwill impairment charge of $13.1 million after-tax or $.84 per diluted share that did not affect capital, regulatory capital ratios, cash flows, or liquidity. |
| · | first quarter 2009 operating loss*, excluding the goodwill impairment charge, was $.68 per diluted share compared to earnings per diluted share of $.13 in the same quarter 2008. |
| · | total number of customer deposit accounts and relationships continued to grow. |
| · | two-step nonperforming assets extended their decline in line with our expectations. |
Lake Oswego, OR – April 27, 2009 – West Coast Bancorp (NASDAQ: WCBO) today announced a loss in the first quarter of 2009 of $23.6 million or $1.52 per diluted share including a noncash goodwill impairment charge of $13.1 million after-tax or $.84 per diluted share. The operating loss* was $10.5 million or $.68 per diluted share in the first quarter of 2009, compared to operating income of $2.0 million or $.13 per diluted share in the same quarter of 2008. The goodwill impairment charge eliminated the entire amount of the Company’s previously recorded goodwill associated with the purchase of Mid-Valley Bank in June 2006. Goodwill impairment is a noncash accounting charge that does not affect capital, regulatory capital ratios, cash flows or liquidity.
WEST COAST BANCORP REPORTS FIRST QUARTER 2009 EARNINGS
APRIL 27, 2009
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| | | GAAP | | | Operating* | |
| | | Three months ended | | | | | | Three months ended | |
| (Dollars in thousands, | | March 31, | | | | | | March 31, | |
| except per share data, unaudited) | | 2009 | | | 2008 | | | Change | | | 2009 | | | 2008 | |
| | | | | | | | | | | | | | | | |
| For the three months ended: | | | | | | | | | | | | | | | |
| Net (loss) income | | $ | (23,599 | ) | | $ | 2,000 | | | | -1280 | % | | $ | (10,540 | ) | | $ | 2,000 | |
| Net (loss) income per diluted share | | $ | (1.52 | ) | | $ | 0.13 | | | | -1269 | % | | $ | (0.68 | ) | | $ | 0.13 | |
| | | | | | | | | | | | | | | | | | | | | |
| Return on average equity | | | -48.5 | % | | | 3.8 | % | | | -52.3 | % | | | -21.7 | % | | | 3.8 | % |
| | | | | | | | | | | | | | | | | | | | | |
| West Coast Bank Tier 1 capital ratio | | | 9.43 | % | | | 9.32 | % | | | 0.11 | % | | | | | | | | |
| West Coast Bank Total capital ratio | | | 10.68 | % | | | 10.57 | % | | | 0.11 | % | | | | | | | | |
| West Coast Bank leverage ratio | | | 8.92 | % | | | 8.84 | % | | | 0.08 | % | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| West Coast Bancorp Tier 1 capital ratio | | | 9.72 | % | | | 9.96 | % | | | -0.24 | % | | | | | | | | |
| West Coast Bancorp Total capital ratio | | | 10.97 | % | | | 11.22 | % | | | -0.25 | % | | | | | | | | |
| West Coast Bancorp leverage ratio | | | 9.19 | % | | | 9.49 | % | | | -0.30 | % | | | | | | | | |
| West Coast Bancorp common equity to tangible assets | | | 6.96 | % | | | 7.43 | % | | | -0.47 | % | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total period end loans | | $ | 1,998,451 | | | $ | 2,194,311 | | | | -9 | % | | | | | | | | |
| Total period end deposits | | $ | 2,052,097 | | | $ | 2,061,847 | | | | 0 | % | | | | | | | | |
*Operating loss for the quarter ended March 31, 2009, and numbers derived using operating loss for the quarter, including operating loss per diluted share, and operating return on average equity are non-GAAP (Generally Accepted Accounting Principles) financial measures derived by adjusting the Company’s GAAP earnings for the noncash goodwill impairment charge of $13.1 million, after-tax. 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 performance as compared to prior periods. See table 1 below for a reconciliation of non-GAAP financial information.
"Despite the very challenging economic conditions and disappointing operating results, we accomplished several very important goals in the first quarter of 2009 compared to the same quarter one year ago,” said Robert D. Sznewajs, President and CEO. “First, West Coast Bank’s total capital ratio at 10.68% increased 11 basis points. Second, we lowered our loan to deposit ratio from 106% to 97%. Third, we reduced our residential land and construction loan exposure by 55% to less than 9% of total loans. And fourth, our cost of interest bearing deposits for the first quarter was 1.74%, an improvement of 118 basis points and amongst the lowest within our markets. Additionally, our allowance for credit losses for loans other than two-step increased to 1.95% from 1.55%.” Sznewajs continued, “As compared to a year ago, and despite these tough economic times, we have improved the Bank’s total capital position, continued to maintain a strong core deposit base at an attractive cost, and significantly reduced our outstanding residential construction loan portfolio, while building our reserve for credit losses. These results are a direct consequence of and consistent with initiatives implemented in late 2007 when the economic crises began.”
WEST COAST BANCORP REPORTS FIRST QUARTER 2009 EARNINGS
APRIL 27, 2009
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Financial Results:
Over the past 12 months total loans declined $196 million or 9% to $2.00 billion at March 31, 2009. Excluding the $188 million or 89% reduction in two-step loan balances, total loan balances remained substantially unchanged. While the commercial real estate and residential mortgage loan categories increased over the same time period, the impact of the recession and the challenging residential housing market was evident in both demand for and origination of commercial and construction loans. Consistent with our strategy, the residential construction loan portfolio contracted 57% over the past year, meaningfully reducing the Company’s risk exposure to this sector. At March 31, 2009, the remaining two-step loan balance measured $24 million or 1% of total loans, down from $211 million and 10% a year ago. First quarter 2009 average total deposits of $1.98 billion declined 4% from the same quarter in 2008. The lower average balance per money market account and a reduction in certificate of deposit balances greater than $100,000 explained the decrease in total deposits. The Company’s funding position at March 31, 2009 has improved over the past year with its loan to deposit ratio declining to 97% from 106% a year ago.
As a result of lower average earning asset balances and 25 basis points compression in the net interest margin to 3.67%, first quarter 2009 net interest income declined $3.4 million to $20.1 million from the first quarter last year. The year over year contraction in first quarter net interest margin of 25 basis points was a consequence of the declining benefit from non-interest bearing demand deposits in this unusually low interest rate environment. Despite the decline in construction loan fee income and higher average nonaccrual loan balances, the net interest spread improved 9 basis points in the most recent quarter due to a substantially lower volume of loan interest reversals than in the first quarter of 2008.
WEST COAST BANCORP REPORTS FIRST QUARTER 2009 EARNINGS
APRIL 27, 2009
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Total non-interest income of $4.3 million in the quarter ended March 31, 2009 declined $5.9 million from the same period in 2008. Due to extended weakness in the housing market, first quarter OREO valuation adjustments totaled $4.8 million, of which $4.1 million were associated with two-step properties, compared to no such charges in the same quarter of 2008. However, the loss recorded at the time of final disposition of the 17 two-step OREO properties during the quarter was insignificant suggesting such properties are being written down to realizable value prior to final disposition of the properties. Including 7 short sales, we disposed of a total of 24 two-step related properties during the first quarter for total proceeds of $6.4 million. The disposition volume was down from 41 properties sold for $11.9 million in the fourth quarter of 2008 but in line with the market and seasonal home sales patterns. Evidenced by 36 pending sales, with expected total proceeds of $8.3 million, as of March 31, 2009, we have experienced a substantial acceleration in sales activity beginning in early March, a trend which is continuing in April. Through March 31, 2009, we had cumulative sold or pending sales on 157 two-step properties, including 47 short sales. At the end of the first quarter the two-step OREO portfolio consisted of 296 properties. (See table 7 for details.) Future financial results will be heavily dependent on the Company's ability to dispose of its OREO properties quickly and at prices that are in line with current expectations.
The year-over-year first quarter non-interest revenue comparison was affected by two other items. During the first quarter of 2009 we recognized a gain on settlement of an insurance claim of $1.2 million, while in the first quarter of 2008 we recorded a gain of $.7 million associated with the VISA initial public offering.
WEST COAST BANCORP REPORTS FIRST QUARTER 2009 EARNINGS
APRIL 27, 2009
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As a result of 5% growth in the number of consumer and business deposit transaction accounts over the past 12 months, first quarter 2009 deposit service charge revenues improved 5% or $.2 million. Directly related to the significant slowing in economic activity, total payment systems revenues remained flat from first quarter of 2008 despite the increase in number of deposit accounts and associated cards. The weak equity markets contributed to a $.7 million or 42% decline in trust and investment revenues over first quarter 2008. First quarter 2009 gain on sales of loans declined $.5 million from first quarter 2008 due to the secondary market for SBA loans effectively being inactive.
First quarter 2009 total non-interest expense of $35.4 million included the $13.1 million goodwill impairment charge. Without this charge, total non-interest expense was $22.3 million, substantially unchanged from the same period of 2008. Also, excluding an increase in the FDIC insurance premium expense of $.6 million and a $.9 million increase in property collection and disposition expenses, total non-interest expense declined 7% from the first quarter of 2008 due to the Company’s sharp focus on reducing controllable expense items. As part of that effort, total personnel expense fell 9% or $1.2 million in the most recent quarter compared to the first quarter of 2008 due to lower salary, incentive and benefit costs.
Capital:
West Coast Bank continued to be well capitalized for regulatory purposes. The Bank’s total capital ratio measured 10.68% at March 31, 2009 up from 10.57% a year ago. The Bank’s tier 1 capital ratio at 9.43% and leverage ratio of 8.92% also improved over the past 12 months and continued to be above the well capitalized regulatory threshold at quarter end. The enhanced Bank capital ratios were primarily accomplished by reducing the Bank’s loan portfolio and thus its risk-weighted assets.
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APRIL 27, 2009
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Credit Quality:
The Company recorded a first quarter 2009 provision for credit losses of $23.1 million, up from $8.7 million in the same quarter of 2008, and up from $16.5 million in the fourth quarter of 2008. The provision related to the two-step portfolio is trending down as the loan balance contracts. This provision measured $3.1 million in the most recent quarter, down from $4.8 million in the fourth quarter of 2008. Each two-step property is re-appraised within 45 days of its expected foreclosure date. The following table presents the significant decline in the two-step loan portfolio over the past 15 months.
(Dollars in thousands, unaudited) | | | | | | | | | | | | | | | |
| Period ended | | Total accruing two- step loan commitments | | | Accruing two-step loans | | | Nonaccrual two- step loans | | | Two-step OREO | | | Total two-step nonperforming assets | |
| 12/31/2007 | | $ | 320,991 | | | $ | 242,407 | | | $ | 20,545 | | | $ | 3,255 | | | $ | 23,800 | |
| 3/31/2008 | | | 156,823 | | | | 122,622 | | | | 88,784 | | | | 5,688 | | | | 94,472 | |
| 6/30/2008 | | | 59,603 | | | | 46,975 | | | | 98,728 | | | | 26,460 | | | | 125,188 | |
| 9/30/2008 | | | 16,943 | | | | 14,904 | | | | 82,990 | | | | 44,675 | | | | 127,665 | |
| 12/31/2008 | | | 3,276 | | | | 3,124 | | | | 49,960 | | | | 60,022 | | | | 109,982 | |
| 3/31/2009 | | | - | | | | - | | | | 23,725 | | | | 73,319 | | | | 97,044 | |
The provision for credit losses associated with loans other than two-step loans was $20.0 million in the first quarter of 2009, up from $7.9 million in the same quarter of 2008 and $11.7 million in the fourth quarter of 2008. The combination of negative risk rating migration, higher net charge-offs, higher general valuation allowances and a significantly larger unallocated allowance contributed to an increased quarterly provision in the most recent quarter under our allowance model compared to the first quarter of 2008. The level of future provisioning will be heavily dependent on the real estate market and general economic conditions nationally and in the areas in which we do business.
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APRIL 27, 2009
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As shown in the table below, at March 31, 2009 total residential construction loans, which consist of residential land, site development, vertical construction (construction of residences) and two-step construction loans, measured $177 million or 9% of the total loan portfolio, a material reduction from 18% a year ago. This amounted to a decrease of $220 million or 55% from the same period in 2008. At the end of the most recent quarter, accruing residential construction loans totaled $104 million or 5% of total loans, down from $304 million and 14%, respectively, at March 31, 2008. Nonaccrual residential construction loan balances declined by $19 million over the past 12 months to $73 million or 3.7% of total loans as the decline in the two-step nonaccrual loan balances more than offset the increase in the remaining residential construction loan categories. Loans to borrowers involved in residential site development exhibited the most deterioration in credit quality. The non two-step residential construction nonaccrual loan properties are largely located in Clark, Pierce and King counties in the state of Washington, and in Marion and Deschutes counties in the state of Oregon.
| | | West Coast Bancorp | |
| | | Residential construction and land loans including two-step loans | |
| | | | | | | | | | | | | | | | | | | |
(Dollars in thousands, unaudited) | | March 31, 2009 | | | March 31, 2008 | | | December 31, 2008 | |
| | | Amount | | | Percent of total loans2 | | | Amount | | | Percent of total loans2 | | | Amount | | | Percent of total loans2 | |
| Accruing residential construction loans and land loans | | | | | | | | | | | | | | | | | | |
Land loans1 | | $ | 17,739 | | | | 0.9 | % | | $ | 27,210 | | | | 1.2 | % | | $ | 17,887 | | | | 0.9 | % |
| Site development | | | 28,946 | | | | 1.4 | % | | | 75,702 | | | | 3.4 | % | | | 37,437 | | | | 1.8 | % |
| Vertical construction | | | 57,244 | | | | 2.9 | % | | | 78,524 | | | | 3.6 | % | | | 61,593 | | | | 3.0 | % |
| Two-step loans | | | - | | | | 0.0 | % | | | 122,622 | | | | 5.6 | % | | | 3,124 | | | | 0.2 | % |
| Total accruing residential construction and land loans | | $ | 103,929 | | | | 5.2 | % | | $ | 304,058 | | | | 13.9 | % | | $ | 120,041 | | | | 5.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual residential construction loans and land loans | | | | | | | | | | | | | | | | | | | | | | | | |
Land loans1 | | $ | 2,092 | | | | 0.1 | % | | $ | 710 | | | | 0.0 | % | | $ | 5,608 | | | | 0.3 | % |
| Site development | | | 34,316 | | | | 1.7 | % | | | 620 | | | | 0.0 | % | | | 27,291 | | | | 1.3 | % |
| Vertical construction | | | 12,901 | | | | 0.6 | % | | | 2,226 | | | | 0.1 | % | | | 9,703 | | | | 0.5 | % |
| Two-step loans | | | 23,725 | | | | 1.2 | % | | | 88,784 | | | | 4.0 | % | | | 49,960 | | | | 2.4 | % |
| Total nonaccrual residential construction and land loans | | $ | 73,034 | | | | 3.7 | % | | $ | 92,340 | | | | 4.2 | % | | $ | 92,562 | | | | 4.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total residential construction and land loans | | | | | | | | | | | | | | | | | | | | | | | | |
Land loans1 | | $ | 19,831 | | | | 1.0 | % | | $ | 27,920 | | | | 1.3 | % | | $ | 23,495 | | | | 1.1 | % |
| Site development | | | 63,262 | | | | 3.2 | % | | | 76,322 | | | | 3.5 | % | | | 64,728 | | | | 3.1 | % |
| Vertical construction | | | 70,145 | | | | 3.5 | % | | | 80,750 | | | | 3.7 | % | | | 71,296 | | | | 3.5 | % |
| Two-step loans | | | 23,725 | | | | 1.2 | % | | | 211,406 | | | | 9.6 | % | | | 53,084 | | | | 2.6 | % |
| Total residential construction and land loans | | $ | 176,963 | | | | 8.9 | % | | $ | 396,398 | | | | 18.1 | % | | $ | 212,603 | | | | 10.3 | % |
1 Land loans represent balances that are carried in the Company's residential real estate mortgage and commercial real estate loan portfolios.
2 Calculations have been based on more detailed information and therefore may not recompute exactly due to rounding.
WEST COAST BANCORP REPORTS FIRST QUARTER 2009 EARNINGS
APRIL 27, 2009
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Total net charge-offs in the first quarter of 2009 were $14.6 million. The net charge-offs related to the two-step portfolio were $3.5 million, down from $20.0 million in the same period last year. The net charge-offs for loans other than two-step loans were $11.1 million compared to $1.1 million in the first quarter of 2008 and $15.2 million in the final quarter of 2008. The higher year over year first quarter level of net charge-off activity for loans other than two-step loans was primarily associated with residential construction, commercial, and residential mortgage and home equity loans. The Bank has experienced very few charge-offs of commercial real estate loans over the past 15 months. A significant deterioration in credit quality in the Bank’s commercial real estate portfolio, however, would put additional pressure on our results of operations and financial position.
As a result of the provision for credit losses exceeding net charge-offs by $9.0 million during the first quarter of 2009, the allowance for credit losses associated with loans other than two-step loans increased from $29.5 million or 1.47% of such outstanding loan balances at year end 2008 to $38.5 million or 1.95% at March 31, 2009. The first quarter 2009 provision expense was in part driven by a decision to increase the unallocated reserve given uncertainty associated with current economic conditions. The unallocated portion of the allowance for loan losses increased to $5.8 million or 15% of the total allowance at March 31, 2009, up from $1.4 million and 3% a year ago. The Company’s estimate of appropriate reserve amounts will continue to be primarily dependent on the loan portfolio’s credit quality performance trends, including net charge-offs, which will be heavily dependent on local economic conditions and the health of the real estate market.
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Total non-performing assets were $215.5 million or 8.6% of total assets at March 31, 2009, up from $105 million and 4.0%, respectively, at March 31, 2008 and $198 million and 7.9% at year-end 2008. Non-performing assets related to the two-step loan portfolio were $97 million or 3.9% of total assets, up from $94 million a year ago but down from $110 million at December 31, 2008. There were no accruing two-step loans remaining at March 31, 2009 and all such nonaccruing loans have been impaired. The $97 million balance of nonperforming two-step assets at quarter end reflected prior write-downs of approximately 28% of the original loan balance, consistent with our realized loss rate to date for this portfolio. During the first quarter of 2009 the nonaccrual two-step loan balance declined from $50 million to $24 million, while the two-step OREO balance increased from $60 million to $73 million as we took ownership of more properties. The decline in two-step nonperforming assets is projected to accelerate over the remainder of 2009 based on seasonality factors and recent increases in number of pending sales.
Nonperforming assets, excluding the two-step portfolio, increased by $31 million to $118 million or 4.74% of total assets at March 31, 2009, from $88 million and 3.49%, respectively, at year end 2008. The $31 million increase was largely linked to three commercial relationships amounting to $22 million and residential construction loans totaling $6.5 million. The significant jump in commercial nonperforming assets reflects businesses impacted directly by the deterioration in the housing industry coupled with difficult business conditions associated with an economy in recession. The incidence of commercial nonperforming assets was not widespread. The inflow into nonaccrual loan balances from the residential construction portfolio slowed from the prior quarter, in part due to the reduction in the accruing portfolio balance. Also, nonstandard mortgage loan balances on nonaccrual status declined by $4.3 million since year end 2008 to $10.9 million.
At March 31, 2009, all nonaccrual loans, including all non two-step loans, had been measured for impairment and written down to the proceeds we would currently expect to receive upon disposition of the underlying collateral. As in all cases, these estimates do not take into account changes in market value after the date of a particular estimate until new appraisal information is received. For more detailed credit quality information, see tables 3 through 12.
March 31, 2009 total delinquent loans were $9.6 million or .48% of total loans, down from $27.1 million and 1.23% a year ago. The decline in delinquent loans was primarily due to lower delinquencies in residential construction loans.
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Other:
The Company will hold a Webcast conference call Monday, April 27, 2009, at 11:00 a.m. Pacific Time, during which the Company will discuss first quarter 2009 results and key activities. To access the conference call via a live Webcast, go to www.wcb.com and click on Investor Relations and the “1st Quarter 2009 Earnings Conference Call” tab. The conference call may also be accessed by dialing (866) 395-2683 Conference ID#: 88847420 a few minutes prior to 11:00 a.m. PDT. The call will be available for replay by accessing the Company’s website at www.wcb.com and following the same instructions.
West Coast Bancorp, one of Oregon Business Magazine’s 100 Best Companies to Work For, is a Northwest bank holding company with $2.5 billion in assets, and 65 offices in Oregon and Washington. The Company combines the sophisticated products and expertise of larger banks with the local decision making, market knowledge and customer service of a community bank. For more information, visit the Company’s web site at www.wcb.com.
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. Do not unduly rely on forward-looking statements. They give our expectations about the future and are not guarantees. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them to reflect changes that occur after that date.
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A number of factors could cause results to differ significantly from our expectations, including, among others, factors identified in our Annual Report on Form 10-K for the year ended December 31, 2008, including under the heading "Forward Looking Statement Disclosure" and in Item 1A, “Risk Factors.”
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| | | West Coast Bancorp | |
| | | Consolidated Statements of Income (Loss) | |
| | | | | | | | | | | | | | | | |
| (Unaudited) | | Three months ended | | | Twelve months ended | |
(Dollars and shares in thousands, except per share data) | | March 31, | | | Dec. 31, | | | December 31, | |
| | | 2009 | | | 2008 | | | 2008 | | | 2008 | | | 2007 | |
| Net interest income | | | | | | | | | | | | | | | |
| Interest and fees on loans | | $ | 26,117 | | | $ | 35,073 | | | $ | 29,605 | | | $ | 129,517 | | | $ | 169,180 | |
| Interest on investment securities | | | 2,478 | | | | 3,098 | | | | 2,388 | | | | 10,951 | | | | 13,446 | |
| Other interest income | | | 13 | | | | 141 | | | | 24 | | | | 378 | | | | 564 | |
| Total interest income | | | 28,608 | | | | 38,312 | | | | 32,017 | | | | 140,846 | | | | 183,190 | |
| Interest expense on deposit accounts | | | 6,485 | | | | 11,613 | | | | 8,562 | | | | 37,549 | | | | 55,036 | |
| Interest on borrowings and subordinated debentures | | | 1,993 | | | | 3,122 | | | | 2,318 | | | | 11,147 | | | | 13,434 | |
| Total interest expense | | | 8,478 | | | | 14,735 | | | | 10,880 | | | | 48,696 | | | | 68,470 | |
| Net interest income | | | 20,130 | | | | 23,577 | | | | 21,137 | | | | 92,150 | | | | 114,720 | |
| | | | | | | | | | | | | | | | | | | | | |
| Provision for credit losses | | | 23,131 | | | | 8,725 | | | | 16,517 | | | | 40,367 | | | | 38,956 | |
| | | | | | | | | | | | | | | | | | | | | |
| Noninterest income | | | | | | | | | | | | | | | | | | | | |
| Service charges on deposit accounts | | | 3,805 | | | | 3,635 | | | | 3,853 | | | | 15,547 | | | | 12,932 | |
| Payment systems related revenue | | | 2,137 | | | | 2,131 | | | | 2,225 | | | | 9,033 | | | | 8,009 | |
| Trust and investment services revenues | | | 919 | | | | 1,585 | | | | 1,053 | | | | 5,413 | | | | 6,390 | |
| Gains on sales of loans | | | 343 | | | | 860 | | | | 244 | | | | 2,328 | | | | 3,364 | |
| OREO valuation adjustments and gain (loss) on sale | | | (4,804 | ) | | | 11 | | | | (3,701 | ) | | | (5,386 | ) | | | 27 | |
| Other | | | 1,942 | | | | 1,399 | | | | 633 | | | | 3,252 | | | | 2,843 | |
| Other-than-temporary impairment losses | | | (192 | ) | | | - | | | | - | | | | (6,338 | ) | | | - | |
| Gain (loss) on sales of securities | | | 198 | | | | 590 | | | | 3 | | | | 780 | | | | (67 | ) |
| Total noninterest income | | | 4,348 | | | | 10,211 | | | | 4,310 | | | | 24,629 | | | | 33,498 | |
| Noninterest expense | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 11,195 | | | | 12,355 | | | | 11,483 | | | | 47,500 | | | | 49,787 | |
| Equipment | | | 1,892 | | | | 1,751 | | | | 1,808 | | | | 7,117 | | | | 6,544 | |
| Occupancy | | | 2,366 | | | | 2,375 | | | | 2,414 | | | | 9,440 | | | | 8,548 | |
| Payment systems related expense | | | 919 | | | | 843 | | | | 935 | | | | 3,622 | | | | 3,143 | |
| Professional fees | | | 927 | | | | 800 | | | | 1,235 | | | | 4,317 | | | | 2,072 | |
| Postage, printing and office supplies | | | 795 | | | | 966 | | | | 877 | | | | 3,834 | | | | 3,896 | |
| Marketing | | | 630 | | | | 795 | | | | 773 | | | | 3,583 | | | | 4,524 | |
| Communications | | | 393 | | | | 402 | | | | 456 | | | | 1,722 | | | | 1,624 | |
| Goodwill impairment | | | 13,059 | | | | - | | | | - | | | | - | | | | - | |
| Other noninterest expense | | | 3,198 | | | | 1,934 | | | | 2,554 | | | | 9,188 | | | | 5,161 | |
| Total noninterest expense | | | 35,374 | | | | 22,221 | | | | 22,535 | | | | 90,323 | | | | 85,299 | |
| Income (loss) before income taxes | | | (34,027 | ) | | | 2,842 | | | | (13,605 | ) | | | (13,911 | ) | | | 23,963 | |
| Provision (benefit) for income taxes | | | (10,428 | ) | | | 842 | | | | (4,924 | ) | | | (7,598 | ) | | | 7,121 | |
| Net income (loss) | | $ | (23,599 | ) | | $ | 2,000 | | | $ | (8,681 | ) | | $ | (6,313 | ) | | $ | 16,842 | |
| | | | | | | | | | | | | | | | | | | | | |
| Earnings (loss) per share: | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | (1.52 | ) | | $ | 0.13 | | | $ | (0.56 | ) | | $ | (0.41 | ) | | $ | 1.09 | |
| Diluted | | $ | (1.52 | ) | | $ | 0.13 | | | $ | (0.56 | ) | | $ | (0.41 | ) | | $ | 1.05 | |
| | | | | | | | | | | | | | | | | | | | | |
| Weighted average common shares | | | 15,485 | | | | 15,445 | | | | 15,489 | | | | 15,472 | | | | 15,507 | |
| Weighted average diluted shares | | | 15,485 | | | | 15,589 | | | | 15,489 | | | | 15,472 | | | | 16,045 | |
| | | | | | | | | | | | | | | | | | | | | |
| Tax equivalent net interest income | | $ | 20,545 | | | $ | 24,027 | | | $ | 21,558 | | | $ | 93,901 | | | $ | 116,361 | |
WEST COAST BANCORP REPORTS FIRST QUARTER 2009 EARNINGS
APRIL 27, 2009
Page 13 of 28
| | | West Coast Bancorp | |
| | | Consolidated Balance Sheets | |
| | | | | | | | | | |
| | | March 31, | | | March 31, | | | December 31, | |
| (Dollars and shares in thousands, unaudited) | | 2009 | | | 2008 | | | 2008 | |
| Assets: | | | | | | | | | |
| Cash and cash equivalents | | $ | 72,626 | | | $ | 88,205 | | | $ | 64,778 | |
| Investments | | | 233,668 | | | | 229,431 | | | | 198,515 | |
| Total loans | | | 1,998,451 | | | | 2,194,311 | | | | 2,064,796 | |
| Allowance for loan losses | | | (37,532 | ) | | | (39,602 | ) | | | (28,920 | ) |
| Loans, net | | | 1,960,919 | | | | 2,154,709 | | | | 2,035,876 | |
| OREO, net | | | 87,189 | | | | 5,688 | | | | 70,110 | |
| Goodwill and other intangibles | | | 895 | | | | 14,372 | | | | 14,054 | |
| Other assets | | | 140,930 | | | | 128,489 | | | | 132,807 | |
| Total assets | | $ | 2,496,227 | | | $ | 2,620,894 | | | $ | 2,516,140 | |
| | | | | | | | | | | | | |
| Liabilities and Stockholders' Equity: | | | | | | | | | | | | |
| Demand | | $ | 489,274 | | | $ | 472,116 | | | $ | 478,292 | |
| Savings and interest-bearing demand | | | 351,153 | | | | 366,267 | | | | 346,206 | |
| Money market | | | 595,954 | | | | 652,559 | | | | 615,588 | |
| Time deposits | | | 615,716 | | | | 570,905 | | | | 584,293 | |
| Total deposits | | | 2,052,097 | | | | 2,061,847 | | | | 2,024,379 | |
| Borrowings and subordinated debentures | | | 252,059 | | | | 306,052 | | | | 274,059 | |
| Reserve for unfunded commitments | | | 931 | | | | 2,852 | | | | 1,014 | |
| Other liabilities | | | 16,581 | | | | 42,206 | | | | 18,501 | |
| Total liabilities | | | 2,321,668 | | | | 2,412,957 | | | | 2,317,953 | |
| Stockholders' equity | | | 174,559 | | | | 207,937 | | | | 198,187 | |
| Total liabilities and stockholders' equity | | $ | 2,496,227 | | | $ | 2,620,894 | | | $ | 2,516,140 | |
| | | | | | | | | | | | | |
| Common shares outstanding period end | | | 15,687 | | | | 15,580 | | | | 15,696 | |
| Book value per common share | | $ | 11.13 | | | $ | 13.35 | | | $ | 12.63 | |
| Tangible book value per common share | | $ | 11.07 | | | $ | 12.42 | | | $ | 11.73 | |
WEST COAST BANCORP REPORTS FIRST QUARTER 2009 EARNINGS
APRIL 27, 2009
Page 14 of 28
| | | West Coast Bancorp | |
| | | Summary Financial Information | |
| | | | | | | | | | | | | | | | |
| | | First | | | First | | | Fourth | | | | | | | |
| (Dollars in thousands except for per share data, unaudited) | | Quarter | | | Quarter | | | Quarter | | | Year to date | | | Year to date | |
(all rates have been annualized where appropriate) | | 2009 | | | 2008 | | | 2008 | | | 2008 | | | 2007 | |
| PERFORMANCE RATIOS | | | | | | | | | | | | | | | |
| - Return on average assets | | | -(3.85 | )% | | | 0.31 | % | | | (1.38 | )% | | | (0.25 | )% | | | 0.66 | % |
| - Return on average common equity | | | -(48.54 | )% | | | 3.81 | % | | | (17.21 | )% | | | (3.06 | )% | | | 7.93 | % |
| - Return on average tangible equity | | | -(52.07 | )% | | | 4.25 | % | | | (18.37 | )% | | | (3.14 | )% | | | 8.69 | % |
| - Non-interest income to average assets | | | 0.71 | % | | | 1.58 | % | | | 0.68 | % | | | 0.96 | % | | | 1.32 | % |
| - Non-interest expense to average assets | | | 5.77 | % | | | 3.44 | % | | | 3.57 | % | | | 3.52 | % | | | 3.36 | % |
| - Efficiency ratio, tax equivalent | | | 143.2 | % | | | 66.0 | % | | | 87.1 | % | | | 72.8 | % | | | 56.9 | % |
| | | | | | | | | | | | | | | | | | | | | |
| NET INTEREST MARGIN | | | | | | | | | | | | | | | | | | | | |
| - Yield on average interest-earning assets | | | 5.19 | % | | | 6.33 | % | | | 5.57 | % | | | 5.92 | % | | | 7.72 | % |
| - Rate on average interest-bearing liabilities | | | 1.91 | % | | | 3.14 | % | | | 2.36 | % | | | 2.60 | % | | | 3.76 | % |
| - Net interest spread | | | 3.28 | % | | | 3.19 | % | | | 3.21 | % | | | 3.32 | % | | | 3.96 | % |
| - Net interest margin | | | 3.67 | % | | | 3.92 | % | | | 3.70 | % | | | 3.90 | % | | | 4.86 | % |
| | | | | | | | | | | | | | | | | | | | | |
| AVERAGE ASSETS | | | | | | | | | | | | | | | | | | | | |
| - Investment securities | | $ | 200,875 | | | $ | 254,773 | | | $ | 212,900 | | | $ | 229,478 | | | $ | 284,582 | |
| | | | | | | | | | | | | | | | | | | | | |
| - Commercial loans | | | 471,650 | | | | 508,566 | | | | 491,663 | | | | 507,641 | | | | 497,975 | |
| - Real estate construction loans | | | 267,296 | | | | 501,459 | | | | 311,117 | | | | 403,823 | | | | 477,055 | |
| - Real estate mortgage loans | | | 392,445 | | | | 342,315 | | | | 392,570 | | | | 371,365 | | | | 296,859 | |
| - Commercial real estate loans | | | 882,614 | | | | 800,350 | | | | 875,211 | | | | 840,496 | | | | 798,383 | |
| - Installment and other consumer loans | | | 21,032 | | | | 24,245 | | | | 22,364 | | | | 23,545 | | | | 24,705 | |
| - Total loans | | | 2,035,037 | | | | 2,176,935 | | | | 2,092,925 | | | | 2,146,870 | | | | 2,094,977 | |
| | | | | | | | | | | | | | | | | | | | | |
| - Total interest earning assets | | | 2,267,580 | | | | 2,464,280 | | | | 2,318,140 | | | | 2,409,896 | | | | 2,394,958 | |
| - Other assets | | | 217,178 | | | | 132,456 | | | | 190,705 | | | | 159,723 | | | | 142,760 | |
| - Total assets | | $ | 2,484,758 | | | $ | 2,596,736 | | | $ | 2,508,845 | | | $ | 2,569,619 | | | $ | 2,537,718 | |
| | | | | | | | | | | | | | | | | | | | | |
| AVERAGE LIABILITIES & EQUITY | | | | | | | | | | | | | | | | | | | | |
| - Demand deposits | | $ | 469,667 | | | $ | 464,088 | | | $ | 467,768 | | | $ | 470,601 | | | $ | 479,311 | |
| - Savings and Interest bearing demand | | | 348,011 | | | | 358,986 | | | | 338,584 | | | | 350,769 | | | | 351,521 | |
| - Money market | | | 594,108 | | | | 662,508 | | | | 636,013 | | | | 658,360 | | | | 665,037 | |
| - Time deposits | | | 570,049 | | | | 579,157 | | | | 584,137 | | | | 566,195 | | | | 554,263 | |
| - Total deposits | | | 1,981,835 | | | | 2,064,739 | | | | 2,026,502 | | | | 2,045,925 | | | | 2,050,132 | |
| | | | | | | | | | | | | | | | | | | | | |
| - Borrowings and subordinated debentures | | | 289,406 | | | | 285,138 | | | | 276,336 | | | | 300,759 | | | | 250,478 | |
| | | | | | | | | | | | | | | | | | | | | |
| - Total interest bearing liabilities | | | 1,801,575 | | | | 1,885,789 | | | | 1,835,069 | | | | 1,876,083 | | | | 1,821,299 | |
| - Other liabilities | | | 486,028 | | | | 499,741 | | | | 473,061 | | | | 487,010 | | | | 504,070 | |
| - Total liabilities | | | 2,287,603 | | | | 2,385,530 | | | | 2,308,130 | | | | 2,363,093 | | | | 2,325,369 | |
| - Common equity | | | 197,155 | | | | 211,206 | | | | 200,715 | | | | 206,526 | | | | 212,349 | |
| - Total average liabilities and common equity | | $ | 2,484,758 | | | $ | 2,596,736 | | | $ | 2,508,845 | | | $ | 2,569,619 | | | $ | 2,537,718 | |
| | | | | | | | | | | | | | | | | | | | | |
| AVERAGE ASSET/LIABILITY RATIOS | | | | | | | | | | | | | | | | | | | | |
| - Stockholders' equity to total assets | | | 7.93 | % | | | 8.13 | % | | | 8.00 | % | | | 8.04 | % | | | 8.37 | % |
| - Interest earning assets to interest bearing liabilities | | | 125.9 | % | | | 130.7 | % | | | 126.3 | % | | | 128.5 | % | | | 131.5 | % |
| - Total loans to total assets | | | 81.9 | % | | | 83.8 | % | | | 83.4 | % | | | 83.6 | % | | | 82.6 | % |
| - Interest bearing deposits to total assets | | | 60.9 | % | | | 59.0 | % | | | 62.1 | % | | | 61.3 | % | | | 59.0 | % |
WEST COAST BANCORP REPORTS FIRST QUARTER 2009 EARNINGS
APRIL 27, 2009
Page 15 of 28
The following table reconciles return on average equity to return on average equity, tangible.
| Table 1 | | West Coast Bancorp | |
| | | Reconciliation of Operating earnings (loss) to GAAP net income | |
| | | | | | | |
| | | For the three months ended March 31, | |
| (Dollars in thousands, unaudited) | | 2009 | | | 2008 | |
| GAAP net income (loss) | | $ | (23,599 | ) | | $ | 2,000 | |
| Add: Goodwill impairment charge, net of tax | | | 13,059 | | | | - | |
| Operating net income (loss) | | $ | (10,540 | ) | | $ | 2,000 | |
| | | | | | | | | |
| Diluted earnings (loss) per diluted share | | | | | | | | |
| GAAP net income (loss) | | $ | (1.52 | ) | | $ | 0.13 | |
| Operating net income (loss) | | $ | (0.68 | ) | | $ | 0.13 | |
The following table presents information with respect to the Company’s loan portfolio.
| Table 2 | | West Coast Bancorp | |
| | | Period End Loan Portfolio By Category | |
| | | March 31, | | | % of | | | March 31, | | | % of | | | Change | | | Dec. 31, | | | % of | |
(Dollars in thousands, unaudited) | | 2009 | | | loans | | | 2008 | | | loans | | | Amount | | | % | | | 2008 | | | loans | |
| Commercial loans | | $ | 462,466 | | | | 23 | % | | $ | 529,519 | | | | 24 | % | | $ | (67,053 | ) | | | -13 | % | | $ | 482,405 | | | | 23 | % |
| Comercial real estate construction | | | 87,561 | | | | 4 | % | | | 94,878 | | | | 4 | % | | | (7,317 | ) | | | -8 | % | | | 92,414 | | | | 4 | % |
| Residential real estate construction | | | 157,050 | | | | 8 | % | | | 369,150 | | | | 17 | % | | | (212,100 | ) | | | -57 | % | | | 192,735 | | | | 9 | % |
| Total real estate construction loans | | | 244,611 | | | | 12 | % | | | 464,028 | | | | 21 | % | | | (219,417 | ) | | | -47 | % | | | 285,149 | | | | 14 | % |
| Standard mortgages | | | 83,889 | | | | 4 | % | | | 87,621 | | | | 4 | % | | | (3,732 | ) | | | -4 | % | | | 87,628 | | | | 4 | % |
| Nonstandard mortgages | | | 26,111 | | | | 1 | % | | | 25,107 | | | | 1 | % | | | 1,004 | | | | 4 | % | | | 32,597 | | | | 2 | % |
| Home equity | | | 281,186 | | | | 14 | % | | | 243,457 | | | | 11 | % | | | 37,729 | | | | 15 | % | | | 272,983 | | | | 13 | % |
| Total real estate mortgage | | | 391,186 | | | | 20 | % | | | 356,185 | | | | 16 | % | | | 35,001 | | | | 10 | % | | | 393,208 | | | | 19 | % |
| Commercial real estate loans | | | 879,394 | | | | 44 | % | | | 819,586 | | | | 37 | % | | | 59,808 | | | | 7 | % | | | 882,092 | | | | 43 | % |
| Installment and other consumer loans | | | 20,794 | | | | 1 | % | | | 24,993 | | | | 1 | % | | | (4,199 | ) | | | -17 | % | | | 21,942 | | | | 1.1 | % |
| Total loans | | $ | 1,998,451 | | | | | | | $ | 2,194,311 | | | | | | | $ | (195,860 | ) | | | -9 | % | | $ | 2,064,796 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Two-step residential construction loans | | $ | 23,725 | | | | 1 | % | | $ | 211,406 | | | | 10 | % | | $ | (187,681 | ) | | | -89 | % | | $ | 53,084 | | | | 3 | % |
| Total loans other than two-step loans | | | 1,974,726 | | | | 99 | % | | | 1,982,905 | | | | 90 | % | | | (8,179 | ) | | | 0 | % | | | 2,011,712 | | | | 97 | % |
| Total loans | | $ | 1,998,451 | | | | 100 | % | | $ | 2,194,311 | | | | 100 | % | | $ | (195,860 | ) | | | -9 | % | | $ | 2,064,796 | | | | 100 | % |
WEST COAST BANCORP REPORTS FIRST QUARTER 2009 EARNINGS
APRIL 27, 2009
Page 16 of 28
The following tables present information with respect to the change in the Company’s total allowance for credit losses.
| Table 3 | | West Coast Bancorp | |
| | | Total Loan Portfolio | |
| | | Allowance For Credit Losses and Net Charge-offs | |
| | | Quarter ended | | | Quarter ended | | | Quarter ended | |
| | | March 31, | | | March 31, | | | December 31, | |
| (Dollars in thousands, unaudited) | | 2009 | | | 2008 | | | 2008 | |
| Allowance for credit losses, beginning of period | | $ | 29,934 | | | $ | 54,903 | | | $ | 34,444 | |
| Provision for credit losses | | | 23,131 | | | | 8,725 | | | | 16,517 | |
| | | | | | | | | | | | | |
| Loan charge-offs: | | | | | | | | | | | | |
| Commercial | | | 1,275 | | | | 623 | | | | 3,208 | |
| Commercial real estate construction | | | - | | | | - | | | | 1,422 | |
| Residential real estate construction | | | 8,776 | | | | 20,394 | | | | 11,475 | |
| Total real estate construction | | | 8,776 | | | | 20,394 | | | | 12,897 | |
| Standard mortgages | | | 1,018 | | | | - | | | | 1,640 | |
| Nonstandard mortgages | | | 1,929 | | | | - | | | | 2,495 | |
| Home equity | | | 1,281 | | | | - | | | | 121 | |
| Total real estate mortgage | | | 4,228 | | | | - | | | | 4,256 | |
| Commercial real estate | | | 406 | | | | - | | | | 782 | |
| Installment and consumer | | | 132 | | | | 74 | | | | 29 | |
| Overdraft | | | 249 | | | | 302 | | | | 401 | |
| Total loan charge-offs | | | 15,066 | | | | 21,393 | | | | 21,573 | |
| Loan recoveries: | | | | | | | | | | | | |
| Commercial | | | 217 | | | | 32 | | | | 122 | |
| Commercial real estate construction | | | - | | | | - | | | | - | |
| Residential real estate construction | | | 151 | | | | 66 | | | | 319 | |
| Total real estate construction | | | 151 | | | | 66 | | | | 319 | |
| Standard mortgages | | | 3 | | | | - | | | | - | |
| Nonstandard mortgages | | | - | | | | - | | | | 38 | |
| Home equity | | | - | | | | 27 | | | | 2 | |
| Total real estate mortgage | | | 3 | | | | 27 | | | | 40 | |
| Commercial real estate | | | - | | | | - | | | | - | |
| Installment and consumer | | | 22 | | | | 26 | | | | 15 | |
| Overdraft | | | 71 | | | | 68 | | | | 50 | |
| Total loan recoveries | | | 464 | | | | 219 | | | | 546 | |
| Net charge-offs | | | 14,602 | | | | 21,174 | | | | 21,027 | |
| | | | | | | | | | | | | |
| Total allowance for credit losses | | $ | 38,463 | | | $ | 42,454 | | | $ | 29,934 | |
| Components of allowance for credit losses: | | | | | | | | | | | | |
| Allowance for loan losses | | $ | 37,532 | | | $ | 39,602 | | | $ | 28,920 | |
| Reserve for unfunded commitments | | | 931 | | | | 2,852 | | | | 1,014 | |
| Total allowance for credit losses | | $ | 38,463 | | | $ | 42,454 | | | $ | 29,934 | |
| | | | | | | | | | | | | |
| Net loan charge-offs to average loans (annualized) | | | 2.92 | % | | | 3.91 | % | | | 4.00 | % |
| Allowance for loan losses to total loans | | | 1.88 | % | | | 1.80 | % | | | 1.40 | % |
| Allowance for credit losses to total loans | | | 1.92 | % | | | 1.93 | % | | | 1.45 | % |
| Allowance for loan losses to nonperforming loans | | | 29 | % | | | 40 | % | | | 23 | % |
| Allowance for credit losses to nonperforming loans | | | 30 | % | | | 43 | % | | | 23 | % |
WEST COAST BANCORP REPORTS FIRST QUARTER 2009 EARNINGS
APRIL 27, 2009
Page 17 of 28
| Table 4 | | West Coast Bancorp | |
| | | Total Loan Portfolio | |
| | | Allowance For Credit Losses and Net Charge-offs | |
| | | Year ended | | | Year ended | |
| | | December 31, | | | December 31, | |
| (Dollars in thousands, unaudited) | | 2008 | | | 2007 | |
| Allowance for credit losses, beginning of period | | $ | 54,903 | | | $ | 23,017 | |
| Provision for credit losses | | | 40,367 | | | | 38,956 | |
| | | | | | | | | |
| Loan charge-offs: | | | | | | | | |
| Commercial | | | 6,464 | | | | 3,798 | |
| Commercial real estate construction | | | 1,422 | | | | - | |
| Residential real estate construction | | | 52,588 | | | | 2,540 | |
| Total real estate construction | | | 54,010 | | | | 2,540 | |
| Standard mortgages | | | 1,811 | | | | - | |
| Nonstandard mortgages | | | 3,036 | | | | - | |
| Home equity | | | 249 | | | | 71 | |
| Total real estate mortgage | | | 5,096 | | | | 71 | |
| Commercial real estate | | | 826 | | | | - | |
| Installment and consumer | | | 531 | | | | 254 | |
| Overdraft | | | 1,328 | | | | 1,050 | |
| Total loan charge-offs | | | 68,255 | | | | 7,713 | |
| Loan recoveries: | | | | | | | | |
| Commercial | | | 203 | | | | 269 | |
| Commercial real estate construction | | | - | | | | - | |
| Residential real estate construction | | | 2,339 | | | | 7 | |
| Total real estate construction | | | 2,339 | | | | 7 | |
| Standard mortgages | | | - | | | | - | |
| Nonstandard mortgages | | | 38 | | | | - | |
| Home equity | | | 32 | | | | 33 | |
| Total real estate mortgage | | | 70 | | | | 33 | |
| Commercial real estate | | | - | | | | 2 | |
| Installment and consumer | | | 78 | | | | 112 | |
| Overdraft | | | 229 | | | | 220 | |
| Total loan recoveries | | | 2,919 | | | | 643 | |
| Net charge-offs | | | 65,336 | | | | 7,070 | |
| | | | | | | | | |
| Total allowance for credit losses | | $ | 29,934 | | | $ | 54,903 | |
| Components of allowance for credit losses: | | | | | | | | |
| Allowance for loan losses | | $ | 28,920 | | | $ | 46,917 | |
| Reserve for unfunded commitments | | | 1,014 | | | | 7,986 | |
| Total allowance for credit losses | | $ | 29,934 | | | $ | 54,903 | |
| | | | | | | | | |
| Net loan charge-offs to average loans | | | 3.04 | % | | | 0.34 | % |
| Allowance for loan losses to total loans | | | 1.40 | % | | | 2.16 | % |
| Allowance for credit losses to total loans | | | 1.45 | % | | | 2.53 | % |
| Allowance for loan losses to nonperforming loans | | | 23 | % | | | 178 | % |
| Allowance for credit losses to nonperforming loans | | | 23 | % | | | 208 | % |
WEST COAST BANCORP REPORTS FIRST QUARTER 2009 EARNINGS
APRIL 27, 2009
Page 18 of 28
The following table presents information about the Company’s total nonperforming assets and delinquent loans.
| Table 5 | | West Coast Bancorp | |
| | | Total Loan Portfolio | |
| | | Nonperforming Assets and Delinquencies | |
| | | | | | | | | | |
| | | March 31, | | | March 31, | | | December 31, | |
| (Dollars in thousands, unaudited) | | 2009 | | | 2008 | | | 2008 | |
| Loans on nonaccrual status: | | | | | | | | | |
| Commercial | | $ | 29,014 | | | $ | 4,336 | | | $ | 6,250 | |
| Real estate construction: | | | | | | | | | | | | |
| Commercial real estate construction | | | 2,923 | | | | - | | | | 2,922 | |
| Residential real estate construction | | | 70,942 | | | | 91,630 | | | | 90,712 | |
| Total real estate construction | | | 73,865 | | | | 91,630 | | | | 93,634 | |
| Real estate mortgage: | | | | | | | | | | | | |
| Standard mortgage | | | 9,467 | | | | 936 | | | | 8,283 | |
| Nonstandard mortgage | | | 10,972 | | | | 295 | | | | 15,229 | |
| Home equity | | | 961 | | | | 274 | | | | 1,043 | |
| Total real estate mortgage | | | 21,400 | | | | 1,505 | | | | 24,555 | |
| Commercial real estate | | | 3,980 | | | | 1,565 | | | | 3,145 | |
| Installment and consumer | | | 22 | | | | 2 | | | | 6 | |
| Total nonaccrual loans | | | 128,281 | | | | 99,038 | | | | 127,590 | |
| 90 days past due not on nonaccrual | | | - | | | | - | | | | - | |
| Total non-performing loans | | | 128,281 | | | | 99,038 | | | | 127,590 | |
| | | | | | | | | | | | | |
| Other real estate owned | | | 87,189 | | | | 5,688 | | | | 70,110 | |
| Total non-performing assets | | $ | 215,470 | | | $ | 104,726 | | | $ | 197,700 | |
| | | | | | | | | | | | | |
| Non-performing loans to total loans | | | 6.42 | % | | | 4.51 | % | | | 6.18 | % |
| Non-performing assets to total assets | | | 8.63 | % | | | 4.00 | % | | | 7.86 | % |
| | | Total Loan Portfolio | |
| | | Delinquent loans 30-89 days past due as a % of loan category | |
| | | | | | | | | | |
| | | March 31, | | | March 31, | | | December 31, | |
| (Dollars in thousands, unaudited) | | 2009 | | | 2008 | | | 2008 | |
| Commercial loans | | | 0.20 | % | | | 0.47 | % | | | 0.58 | % |
| Real estate construction loans | | | 1.51 | % | | | 4.06 | % | | | 0.68 | % |
| Real estate mortgage loans | | | 0.78 | % | | | 1.42 | % | | | 0.49 | % |
| Commercial real estate loans | | | 0.19 | % | | | 0.07 | % | | | 0.15 | % |
| Installment and other consumer loans | | | 0.96 | % | | | 0.39 | % | | | 0.36 | % |
| | | | | | | | | | | | | |
| Delinquent loans 30-89 days past due: | | | | | | | | | | | | |
| Two-step residential construction loans | | $ | - | | | $ | 14,269 | | | $ | 1,242 | |
| Total loans other than two-step loans | | | 9,605 | | | | 12,826 | | | | 6,850 | |
| Total delinquent loans 30-89 days past due, not in nonaccrual status | | $ | 9,605 | | | $ | 27,095 | | | $ | 8,092 | |
| | | | | | | | | | | | | |
| Delinquent loans to total loans | | | 0.48 | % | | | 1.23 | % | | | 0.39 | % |
WEST COAST BANCORP REPORTS FIRST QUARTER 2009 EARNINGS
APRIL 27, 2009
Page 19 of 28
The following table presents information about the Company’s activity in other real estate owned.
| Table 6 | | West Coast Bancorp | |
| | | Other real estate owned ("OREO") activity | |
| | | Three months | | | | | | Three months | | | | | | Three months | | | | |
| | | ended March 31, | | | Number | | | ended March 31, | | | Number | | | ended Dec. 31, | | | Number | |
(Dollars in thousands, unaudited) | | 2009 | | | of properties | | | 2008 | | | of properties | | | 2008 | | | of properties | |
| Beginning balance | | $ | 70,110 | | | | 288 | | | $ | 3,255 | | | | 15 | | | $ | 48,121 | | | | 189 | |
Additions to OREO1 | | | 25,931 | | | | 79 | | | | 2,707 | | | | 10 | | | | 34,066 | | | | 129 | |
| Valuation adjustments to OREO | | | (4,761 | ) | | | - | | | | - | | | | - | | | | (3,422 | ) | | | | |
| Disposition of OREO | | | (4,091 | ) | | | (18 | ) | | | (274 | ) | | | (1 | ) | | | (8,655 | ) | | | (30 | ) |
| Ending balance | | $ | 87,189 | | | | 349 | | | $ | 5,688 | | | | 24 | | | $ | 70,110 | | | | 288 | |
| | | OREO activity related to two-step loans | |
| | | Three months | | | | | | Three months | | | | | | Three months | | | | |
| | | ended March 31, | | | Number | | | ended March 31, | | | Number | | | ended Dec. 31, | | | Number | |
(Dollars in thousands, unaudited) | | 2009 | | | of properties | | | 2008 | | | of properties | | | 2008 | | | of properties | |
| Beginning balance | | $ | 60,022 | | | | 251 | | | $ | 3,255 | | | | 14 | | | $ | 44,675 | | | | 173 | |
Additions to OREO1 | | | 21,303 | | | | 62 | | | | 2,707 | | | | 10 | | | | 26,541 | | | | 106 | |
| Valuation adjustments to OREO | | | (4,110 | ) | | | | | | | - | | | | - | | | | (2,923 | ) | | | | |
| Disposition of OREO | | | (3,896 | ) | | | (17 | ) | | | (274 | ) | | | (1 | ) | | | (8,271 | ) | | | (28 | ) |
| Ending balance | | $ | 73,319 | | | | 296 | | | $ | 5,688 | | | | 23 | | | $ | 60,022 | | | | 251 | |
| | | OREO activity related to loans other than two-step loans | |
| | | Three months | | | | | | Three months | | | | | | Three months | | | | |
| | | ended March 31, | | | Number | | | ended March 31, | | | Number | | | ended Dec. 31, | | | Number | |
(Dollars in thousands, unaudited) | | 2009 | | | of properties | | | 2008 | | | of properties | | | 2008 | | | of properties | |
| Beginning balance | | $ | 10,088 | | | | 37 | | | $ | - | | | | 1 | | | $ | 3,446 | | | | 16 | |
Additions to OREO1 | | | 4,628 | | | | 17 | | | | - | | | | - | | | | 7,525 | | | | 23 | |
| Valuation adjustments to OREO | | | (651 | ) | | | | | | | - | | | | - | | | | (499 | ) | | | | |
| Disposition of OREO | | | (195 | ) | | | (1 | ) | | | - | | | | - | | | | (384 | ) | | | (2 | ) |
| Ending balance | | $ | 13,870 | | | | 53 | | | $ | - | | | | 1 | | | $ | 10,088 | | | | 37 | |
1 Includes capitalized cost of OREO.
WEST COAST BANCORP REPORTS FIRST QUARTER 2009 EARNINGS
APRIL 27, 2009
Page 20 of 28
The following table presents information with respect to two-step residential construction related OREO activity and two-step short sales.
| Table 7 | | | | | | | | | | | | | | | | | | |
| (Dollars in thousands) | | Two-step related OREO activity | | | Two-step short sales | | | Total two-step OREO property sales and short sales | |
Quarterly 2008: | | Amount | | | Number | | | Amount | | | Number | | | Amount | | | Number | |
| Beginning balance January 1 | | $ | 3,255 | | | | 14 | | | | | | | | | | | | | |
| Additions to OREO | | | 2,461 | | | | 10 | | | | | | | | | | | | | |
| Capitalized improvements | | | 246 | | | | | | | | | | | | | | | | | |
| Valuation adjustments | | | - | | | | | | | | | | | | | | | | | |
| Disposition of OREO properties and short sales | | | (274 | ) | | | (1 | ) | | $ | (286 | ) | | | (1 | ) | | $ | (560 | ) | | | (2 | ) |
| Ending balance March 31 | | $ | 5,688 | | | | 23 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Additions to OREO | | | 23,546 | | | | 87 | | | | | | | | | | | | | | | | | |
| Capitalized improvements | | | 188 | | | | | | | | | | | | | | | | | | | | | |
| Valuation adjustments | | | (245 | ) | | | | | | | | | | | | | | | | | | | | |
| Disposition of OREO properties and short sales | | | (2,717 | ) | | | (9 | ) | | $ | (4,368 | ) | | | (14 | ) | | $ | (7,085 | ) | | | (23 | ) |
| Ending balance June 30 | | $ | 26,460 | | | | 101 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Additions to OREO | | | 24,025 | | | | 91 | | | | | | | | | | | | | | | | | |
| Capitalized improvements | | | 175 | | | | | | | | | | | | | | | | | | | | | |
| Valuation adjustments | | | (1,118 | ) | | | | | | | | | | | | | | | | | | | | |
| Disposition of OREO properties and short sales | | | (4,867 | ) | | | (19 | ) | | $ | (3,200 | ) | | | (12 | ) | | $ | (8,067 | ) | | | (31 | ) |
| Ending balance September 30 | | $ | 44,675 | | | | 173 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Additions to OREO | | | 25,831 | | | | 106 | | | | | | | | | | | | | | | | | |
| Capitalized improvements | | | 710 | | | | | | | | | | | | | | | | | | | | | |
| Valuation adjustments | | | (2,923 | ) | | | | | | | | | | | | | | | | | | | | |
| Disposition of OREO properties and short sales | | | (8,271 | ) | | | (28 | ) | | $ | (3,594 | ) | | | (13 | ) | | $ | (11,865 | ) | | | (41 | ) |
| Ending balance December 31 | | $ | 60,022 | | | | 251 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Full year 2008: | | | | | | | | | | | | | | | | | | | | | | | | |
| Beginning balance January 1 | | $ | 3,255 | | | | 14 | | | | | | | | | | | | | | | | | |
| Additions to OREO | | | 75,863 | | | | 294 | | | | | | | | | | | | | | | | | |
| Capitalized improvements | | | 1,319 | | | | | | | | | | | | | | | | | | | | | |
| Valuation adjustments | | | (4,286 | ) | | | | | | | | | | | | | | | | | | | | |
| Disposition of OREO properties and short sales | | | (16,129 | ) | | | (57 | ) | | $ | (11,448 | ) | | | (40 | ) | | $ | (27,577 | ) | | | (97 | ) |
| Ending balance December 31 | | $ | 60,022 | | | | 251 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Quarterly 2009: | | | | | | | | | | | | | | | | | | | | | | | | |
| Additions to OREO | | | 20,635 | | | | 62 | | | | | | | | | | | | | | | | | |
| Capitalized improvements | | | 668 | | | | | | | | | | | | | | | | | | | | | |
| Valuation adjustments | | | (4,110 | ) | | | | | | | | | | | | | | | | | | | | |
| Disposition of OREO properties and short sales | | | (3,896 | ) | | | (17 | ) | | $ | (2,502 | ) | | | (7 | ) | | $ | (6,398 | ) | | | (24 | ) |
| Ending balance March 31, 2009 | | $ | 73,319 | | | | 296 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
January 1, 2008 through March 31, 2009 Beginning balance 1/1/2008 | | | 3,255 | | | | 14 | | | | | | | | | | | | | | | | | |
| Additions to OREO | | | 96,498 | | | | 356 | | | | | | | | | | | | | | | | | |
| Capitalized improvements | | | 1,987 | | | | | | | | | | | | | | | | | | | | | |
| Valuation adjustments | | | (8,396 | ) | | | | | | | | | | | | | | | | | | | | |
| Disposition of OREO properties and short sales | | | (20,025 | ) | | | (74 | ) | | $ | (13,950 | ) | | | (47 | ) | | $ | (33,975 | ) | | | (121 | ) |
| Ending balance March 31, 2009 | | $ | 73,319 | | | | 296 | | | | | | | | | | | | | | | | | |
WEST COAST BANCORP REPORTS FIRST QUARTER 2009 EARNINGS
APRIL 27, 2009
Page 21 of 28
The following table presents information with respect to the change in the Company’s allowance for credit losses in the two-step residential construction loan portfolio.
| Table 8 | | West Coast Bancorp | |
| | | Two-Step Loan Portfolio | |
| | | Allowance For Credit Losses and Net Charge-offs Two- Step Portfolio | |
| | | Quarter ended | | | Quarter ended | | | Quarter ended | |
| | | March 31, | | | March 31, | | | December 31, | |
| (Dollars in thousands, unaudited) | | 2009 | | | 2008 | | | 2008 | |
| Allowance for credit losses, beginning of period | | $ | 421 | | | $ | 31,065 | | | $ | 1,502 | |
| Provision for credit losses | | | 3,103 | | | | 780 | | | | 4,776 | |
| Charge-offs | | | 3,675 | | | | 20,099 | | | | 6,176 | |
| Recoveries | | | 151 | | | | 66 | | | | 319 | |
| Net charge-offs | | | 3,524 | | | | 20,033 | | | | 5,857 | |
| | | | | | | | | | | | | |
| Total allowance for credit losses | | $ | - | | | $ | 11,812 | | | $ | 421 | |
| | | | | | | | | | | | | |
| Components of allowance for credit losses | | | | | | | | | | | | |
| Allowance for loan losses | | $ | - | | | $ | 9,991 | | | $ | 420 | |
| Reserve for unfunded commitments | | | - | | | | 1,821 | | | | 1 | |
| Total allowance for credit losses | | $ | - | | | $ | 11,812 | | | $ | 421 | |
| | | Year to date | | | Year to date | |
| | | December 31, | | | December 31, | |
| (Dollars in thousands, unaudited) | | 2008 | | | 2007 | |
| Allowance for credit losses, beginning of period | | $ | 31,065 | | | $ | 2,618 | |
| Provision for credit losses | | | 9,500 | | | | 30,980 | |
| Charge-offs | | | 42,483 | | | | 2,540 | |
| Recoveries | | | 2,339 | | | | 7 | |
| Net Charge-offs | | | 40,144 | | | | 2,533 | |
| | | | | | | | | |
| Total allowance for credit losses | | $ | 421 | | | $ | 31,065 | |
| | | | | | | | | |
| Components of allowance for credit losses | | | | | | | | |
| Allowance for loan losses | | $ | 420 | | | $ | 23,917 | |
| Reserve for unfunded commitments | | | 1 | | | | 7,148 | |
| Total allowance for credit losses | | $ | 421 | | | $ | 31,065 | |
| | | | | | | | | |
| Net loan charge-offs to average total loans | | | 1.87 | % | | | 0.12 | % |
WEST COAST BANCORP REPORTS FIRST QUARTER 2009 EARNINGS
APRIL 27, 2009
Page 22 of 28
The following table presents information about the Company’s nonperforming assets and delinquencies in the two-step residential construction loan portfolio.
| Table 9 | | West Coast Bancorp | |
| | | Two-Step Residential Construction Loans | |
| | | Nonperforming Assets and Delinquencies | |
| | | | |
| | | March 31, | | | March 31, | | | December 31, | |
| (Dollars in thousands, unaudited) | | 2009 | | | 2008 | | | 2008 | |
| Nonaccrual two-step loans | | $ | 23,725 | | | $ | 88,784 | | | $ | 49,960 | |
| 90 day past due and accruing interest | | | - | | | | - | | | | - | |
| Total nonperforming two-step loans | | | 23,725 | | | | 88,784 | | | | 49,960 | |
| | | | | | | | | | | | | |
| Other real estate owned two-step | | | 73,319 | | | | 5,688 | | | | 60,022 | |
| Total nonperforming two-step assets | | $ | 97,044 | | | $ | 94,472 | | | $ | 109,982 | |
| | | | | | | | | | | | | |
| Delinquent two-step loans 30-89 days past due, not in nonaccrual status | | $ | - | | | $ | 14,269 | | | $ | 1,242 | |
| | | | | | | | | | | | | |
| Nonperforming two-step assets to total assets | | | 3.89 | % | | | 3.60 | % | | | 4.37 | % |
| Delinquent two-step loans to total two-step loans | | | 0.00 | % | | | 6.75 | % | | | 2.34 | % |
WEST COAST BANCORP REPORTS FIRST QUARTER 2009 EARNINGS
APRIL 27, 2009
Page 23 of 28
The following table presents information with respect to the change in the Company’s allowance for credit losses for the loans other than two-step residential construction loans.
| Table 10 | | West Coast Bancorp | |
| | | Other than two-step loan portfolio | |
| | | Allowance For Credit Losses and Net Charge-offs other than two-step loans | |
| | | Quarter ended | | | Quarter ended | | | Quarter ended | |
| | | March 31, | | | March 31, | | | December 31, | |
| (Dollars in thousands, unaudited) | | 2009 | | | 2008 | | | 2008 | |
| Allowance for credit losses, beginning of period | | $ | 29,513 | | | $ | 23,838 | | | $ | 32,942 | |
| Provision for credit losses | | | 20,028 | | | | 7,945 | | | | 11,741 | |
| | | | | | | | | | | | | |
| Loan charge-offs: | | | | | | | | | | | | |
| Commercial | | | 1,275 | | | | 623 | | | | 3,208 | |
| Commercial real estate construction | | | - | | | | - | | | | 1,422 | |
| Residential real estate construction | | | 5,101 | | | | 295 | | | | 5,299 | |
| Total real estate construction | | | 5,101 | | | | 295 | | | | 6,721 | |
| Standard mortgages | | | 1,018 | | | | - | | | | 1,640 | |
| Nonstandard mortgages | | | 1,929 | | | | - | | | | 2,495 | |
| Home equity | | | 1,281 | | | | - | | | | 121 | |
| Total real estate mortgage | | | 4,228 | | | | - | | | | 4,256 | |
| Commercial real estate | | | 406 | | | | - | | | | 782 | |
| Installment and consumer | | | 132 | | | | 74 | | | | 29 | |
| Overdraft | | | 249 | | | | 302 | | | | 401 | |
| Total loan charge-offs | | | 11,391 | | | | 1,294 | | | | 15,397 | |
| Loan recoveries: | | | | | | | | | | | | |
| Commercial | | | 217 | | | | 32 | | | | 122 | |
| Commercial real estate construction | | | - | | | | - | | | | - | |
| Residential real estate construction | | | - | | | | - | | | | - | |
| Total real estate construction | | | - | | | | - | | | | - | |
| Standard mortgages | | | 3 | | | | - | | | | - | |
| Nonstandard mortgages | | | - | | | | - | | | | 38 | |
| Home equity | | | - | | | | 27 | | | | 2 | |
| Total real estate mortgage | | | 3 | | | | 27 | | | | 40 | |
| Commercial real estate | | | - | | | | - | | | | - | |
| Installment and consumer | | | 22 | | | | 26 | | | | 15 | |
| Overdraft | | | 71 | | | | 68 | | | | 50 | |
| Total loan recoveries | | | 313 | | | | 153 | | | | 227 | |
| Net charge-offs | | | 11,078 | | | | 1,141 | | | | 15,170 | |
| | | | | | | | | | | | | |
| Total allowance for credit losses | | $ | 38,463 | | | $ | 30,642 | | | $ | 29,513 | |
| Components of allowance for credit losses: | | | | | | | | | | | | |
| Allowance for loan losses | | $ | 37,532 | | | $ | 29,611 | | | $ | 28,500 | |
| Reserve for unfunded commitments | | | 931 | | | | 1,031 | | | | 1,013 | |
| Total allowance for credit losses | | $ | 38,463 | | | $ | 30,642 | | | $ | 29,513 | |
| | | | | | | | | | | | | |
| Net loan charge-offs to average loans (annualized) | | | 2.21 | % | | | 0.21 | % | | | 2.88 | % |
| Allowance for loan losses to total loans | | | 1.90 | % | | | 1.49 | % | | | 1.42 | % |
| Allowance for credit losses to total loans | | | 1.95 | % | | | 1.55 | % | | | 1.47 | % |
| Allowance for loan losses to nonperforming loans | | | 36 | % | | | 289 | % | | | 37 | % |
| Allowance for credit losses to nonperforming loans | | | 37 | % | | | 289 | % | | | 38 | % |
WEST COAST BANCORP REPORTS FIRST QUARTER 2009 EARNINGS
APRIL 27, 2009
Page 24 of 28
| Table 11 | | West Coast Bancorp | |
| | | Other than two-step loan portfolio | |
| | | Allowance For Credit Losses and Net Charge-offs other than two-step loans | |
| | | Year ended | | | Year ended | |
| | | December 31, | | | December 31, | |
| (Dollars in thousands, unaudited) | | 2008 | | | 2007 | |
| Allowance for credit losses, beginning of period | | $ | 23,838 | | | $ | 20,399 | |
| Provision for credit losses | | | 30,867 | | | | 7,976 | |
| | | | | | | | | |
| Loan charge-offs: | | | | | | | | |
| Commercial | | | 6,464 | | | | 3,798 | |
| Commercial real estate construction | | | 1,422 | | | | - | |
| Residential real estate construction | | | 10,105 | | | | - | |
| Total real estate construction | | | 11,527 | | | | - | |
| Standard mortgages | | | 1,811 | | | | - | |
| Nonstandard mortgages | | | 3,036 | | | | - | |
| Home equity | | | 249 | | | | 71 | |
| Total real estate mortgage | | | 5,096 | | | | 71 | |
| Commercial real estate | | | 826 | | | | - | |
| Installment and consumer | | | 531 | | | | 254 | |
| Overdraft | | | 1,328 | | | | 1,050 | |
| Total loan charge-offs | | | 25,772 | | | | 5,173 | |
| Loan recoveries: | | | | | | | | |
| Commercial | | | 203 | | | | 269 | |
| Commercial real estate construction | | | - | | | | - | |
| Residential real estate construction | | | - | | | | - | |
| Total real estate construction | | | - | | | | - | |
| Standard mortgages | | | - | | | | - | |
| Nonstandard mortgages | | | 38 | | | | - | |
| Home equity | | | 32 | | | | 33 | |
| Total real estate mortgage | | | 70 | | | | 33 | |
| Commercial real estate | | | - | | | | 2 | |
| Installment and consumer | | | 78 | | | | 112 | |
| Overdraft | | | 229 | | | | 220 | |
| Total loan recoveries | | | 580 | | | | 636 | |
| Net charge-offs | | | 25,192 | | | | 4,537 | |
| | | | | | | | | |
| Total allowance for credit losses | | $ | 29,513 | | | $ | 23,838 | |
| Components of allowance for credit losses: | | | | | | | | |
| Allowance for loan losses | | $ | 28,500 | | | $ | 23,000 | |
| Reserve for unfunded commitments | | | 1,013 | | | | 838 | |
| Total allowance for credit losses | | $ | 29,513 | | | $ | 23,838 | |
| | | | | | | | | |
| Net loan charge-offs to average loans | | | 1.17 | % | | | 0.22 | % |
| Allowance for loan losses to total loans | | | 1.42 | % | | | 1.20 | % |
| Allowance for credit losses to total loans | | | 1.47 | % | | | 1.25 | % |
| Allowance for loan losses to nonperforming loans | | | 37 | % | | | 391 | % |
| Allowance for credit losses to nonperforming loans | | | 38 | % | | | 405 | % |
WEST COAST BANCORP REPORTS FIRST QUARTER 2009 EARNINGS
APRIL 27, 2009
Page 25 of 28
The following table presents information about the Company’s nonperforming assets and delinquencies in the loan portfolio excluding two-step residential construction loans.
| Table 12 | | West Coast Bancorp | |
| | | Loans Other than Two-Step Loans | |
| | | Nonperforming Assets and Delinquencies | |
| | | | | | | | | | |
| | | March 31, | | | March 31, | | | December 31, | |
| (Dollars in thousands, unaudited) | | 2009 | | | 2008 | | | 2008 | |
| Loans on nonaccrual status: | | | | | | | | | |
| Commercial | | $ | 29,014 | | | $ | 4,336 | | | $ | 6,250 | |
| Real estate construction: | | | | | | | | | | | | |
| Commercial real estate construction | | | 2,923 | | | | 2,846 | | | | 2,922 | |
| Residential real estate construction | | | 47,217 | | | | - | | | | 40,752 | |
| Total real estate construction | | | 50,140 | | | | 2,846 | | | | 43,674 | |
| Real estate mortgage: | | | | | | | | | | | | |
| Standard mortgage | | | 9,467 | | | | 936 | | | | 8,283 | |
| Nonstandard mortgage | | | 10,972 | | | | 295 | | | | 15,229 | |
| Home equity | | | 961 | | | | 274 | | | | 1,043 | |
| Total real estate mortgage | | | 21,400 | | | | 1,505 | | | | 24,555 | |
| Commercial real estate | | | 3,980 | | | | 1,565 | | | | 3,145 | |
| Installment and consumer | | | 22 | | | | 2 | | | �� | 6 | |
| Total nonaccrual loans | | | 104,556 | | | | 10,254 | | | | 77,630 | |
| 90 days past due not on nonaccrual | | | - | | | | - | | | | - | |
| Total non-performing loans | | | 104,556 | | | | 10,254 | | | | 77,630 | |
| | | | | | | | | | | | | |
| Other real estate owned | | | 13,870 | | | | - | | | | 10,088 | |
| Total non-performing assets | | $ | 118,426 | | | $ | 10,254 | | | $ | 87,718 | |
| | | | | | | | | | | | | |
| Delinquent non two-step loans 30-89 days past due, not in nonaccrual status | | $ | 9,605 | | | $ | 12,826 | | | $ | 6,850 | |
| | | | | | | | | | | | | |
| Nonperforming non two-step loans to total non two-step loans | | | 5.29 | % | | | 0.52 | % | | | 3.86 | % |
| Nonperforming non two-step assets to total assets | | | 4.74 | % | | | 0.39 | % | | | 3.49 | % |
| Delinquent non two-step loans to total non two-step loans | | | 0.49 | % | | | 0.65 | % | | | 0.34 | % |
WEST COAST BANCORP REPORTS FIRST QUARTER 2009 EARNINGS
APRIL 27, 2009
Page 26 of 28
The following table shows the components of our construction and land loans outside the two-step portfolio as of the dates shown:
| Table 13 | | West Coast Bancorp | |
| | | Construction and land loans outside the two-step portfolio | |
| | | | | | | | | | | | | | | | | | | |
(Dollars in thousands, unaudited) | | March 31, 2009 | | | March 31, 2008 | | | December 31, 2008 | |
| | | Amount | | | Percent2 | | | Amount | | | Percent2 | | | Amount | | | Percent2 | |
Land loans1 | | $ | 41,483 | | | | 16 | % | | $ | 49,849 | | | | 17 | % | | $ | 46,286 | | | | 17 | % |
| Residential construction loans other than two-step loans | | | 131,125 | | | | 50 | % | | | 157,072 | | | | 52 | % | | | 136,024 | | | | 49 | % |
| Commercial construction loans | | | 87,709 | | | | 34 | % | | | 94,878 | | | | 31 | % | | | 92,616 | | | | 34 | % |
| Total construction and land loans other than two-step loans | | $ | 260,317 | | | | 100 | % | | $ | 301,799 | | | | 100 | % | | $ | 274,926 | | | | 100 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Components of residential construction and land loans other than two-step loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Land loans1 | | $ | 19,831 | | | | 13 | % | | $ | 27,920 | | | | 15 | % | | $ | 23,495 | | | | 15 | % |
| Site development | | | 63,262 | | | | 41 | % | | | 76,322 | | | | 41 | % | | | 64,728 | | | | 40 | % |
| Vertical construction | | | 70,145 | | | | 46 | % | | | 80,750 | | | | 44 | % | | | 71,296 | | | | 45 | % |
| Total residential construction and land loans other than two-step loans | | $ | 153,238 | | | | 100 | % | | | 184,992 | | | | 100 | % | | $ | 159,519 | | | | 100 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Components of commercial construction and land loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Land loans1 | | $ | 21,652 | | | | 20 | % | | $ | 21,929 | | | | 19 | % | | $ | 22,791 | | | | 20 | % |
| Site development | | | 607 | | | | 1 | % | | | 1,107 | | | | 1 | % | | | 607 | | | | 1 | % |
| Vertical construction | | | 87,102 | | | | 80 | % | | | 93,771 | | | | 80 | % | | | 92,009 | | | | 79 | % |
| Total commercial construction and land loans | | $ | 109,361 | | | | 100 | % | | $ | 116,807 | | | | 100 | % | | $ | 115,407 | | | | 100 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Components of total construction and land loans other than two-step loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Land loans1 | | $ | 41,483 | | | | 16 | % | | $ | 49,849 | | | | 17 | % | | $ | 46,286 | | | | 17 | % |
| Site development | | | 63,869 | | | | 24 | % | | | 77,429 | | | | 26 | % | | | 65,335 | | | | 24 | % |
| Vertical construction | | | 157,247 | | | | 60 | % | | | 174,521 | | | | 57 | % | | | 163,305 | | | | 59 | % |
| Total construction and land loans other than two-step loans | | $ | 262,599 | | | | 100 | % | | $ | 301,799 | | | | 100 | % | | $ | 274,926 | | | | 100 | % |
1 Land loans represent balances that are carried in the Company's residential real estate mortgage and commercial real estate loan portfolios.
2 Calculations have been based on more detailed information and therefore may not recompute exactly due to rounding.
WEST COAST BANCORP REPORTS FIRST QUARTER 2009 EARNINGS
APRIL 27, 2009
Page 27 of 28
The following table shows the components of our nonaccrual construction and land loans outside the two-step portfolio as of the dates shown.
| Table 14 | | West Coast Bancorp | |
| | | Nonaccrual construction and land loans oustide the two-step portfolio | |
(Dollars in thousands, unaudited) | | March 31, 2009 | | | March 31, 2008 | | | December 31, 2008 | |
| | | Amount | | | Percent of loan category2 | | | Amount | | | Percent of loan category2 | | | Amount | | | Percent of loan category2 | |
Land loans1 | | $ | 2,092 | | | | 5.04 | % | | $ | 710 | | | | 1.42 | % | | $ | 5,794 | | | | 12.50 | % |
| Residential construction loans other than two-step loans | | | 47,217 | | | | 35.39 | % | | | 2,846 | | | | 1.81 | % | | | 36,994 | | | | 27.20 | % |
| Commercial construction loans | | | 2,922 | | | | 3.33 | % | | | - | | | | 0.00 | % | | | 2,922 | | | | 3.20 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total nonaccrual construction and land loans other than two-step loans | | $ | 52,231 | | | | 19.89 | % | | $ | 3,556 | | | | 1.17 | % | | $ | 45,710 | | | | 16.63 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Components of nonaccrual residential construction and land loans other than two-step loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Land loans1 | | $ | 2,092 | | | | 10.55 | % | | $ | 710 | | | | 2.54 | % | | $ | 5,608 | | | | 23.90 | % |
| Site development | | | 34,316 | | | | 54.24 | % | | | 620 | | | | 0.81 | % | | | 27,291 | | | | 42.20 | % |
| Vertical construction | | | 12,901 | | | | 18.39 | % | | | 2,226 | | | | 2.76 | % | | | 9,703 | | | | 13.60 | % |
| Total nonaccrual residential construction and land loans other than two-step loans | | $ | 49,309 | | | | 32.18 | % | | $ | 3,556 | | | | 1.92 | % | | $ | 42,602 | | | | 26.71 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Components of nonaccrual commercial construction and land loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Land loans1 | | | - | | | | 0.00 | % | | | - | | | | 0.00 | % | | | 186 | | | | 0.08 | % |
| Site development | | | - | | | | 0.00 | % | | | - | | | | 0.00 | % | | | - | | | | 0.00 | % |
| Vertical construction | | | 2,922 | | | | 3.35 | % | | | - | | | | 0.00 | % | | | 2,922 | | | | 3.20 | % |
| Total nonaccrual commercial construction and land loans | | $ | 2,922 | | | | 2.67 | % | | $ | - | | | | 0.00 | % | | $ | 3,108 | | | | 2.69 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Components of total nonaccrual construction and land loans other than two-step loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Land loans1 | | $ | 2,092 | | | | 5.04 | % | | $ | 710 | | | | 1.42 | % | | $ | 5,794 | | | | 12.50 | % |
| Site development | | | 34,316 | | | | 53.73 | % | | | 620 | | | | 0.80 | % | | | 27,291 | | | | 41.80 | % |
| Vertical construction | | | 15,823 | | | | 10.06 | % | | | 2,226 | | | | 1.28 | % | | | 12,625 | | | | 7.70 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total nonaccrual construction and land loans other than two-step loans | | $ | 52,231 | | | | 19.89 | % | | $ | 3,556 | | | | 1.18 | % | | $ | 45,710 | | | | 16.63 | % |
1 Land loans represent balances that are carried in the Company's residential real estate mortgage and commercial real estate loan portfolios.
2 Calculations have been based on more detailed information and therefore may not recompute exactly due to rounding.
WEST COAST BANCORP REPORTS FIRST QUARTER 2009 EARNINGS
APRIL 27, 2009
Page 28 of 28
The following table shows the components of our delinquent construction and land loans outside the two-step portfolio as of the dates shown.
| Table 15 | | West Coast Bancorp | |
| | | Delinquent construction and land loans outside the two-step loan portfolio | |
(Dollars in thousands, unaudited) | | March 31, 2009 | | | March 31, 2008 | | | December 31, 2008 | |
| | | Amount | | | Percent of loan category2 | | | Amount | | | Percent of loan category2 | | | Amount | | | Percent of loan category2 | |
Land loans1 | | $ | 452 | | | | 1.09 | % | | $ | 336 | | | | 0.67 | % | | $ | 638 | | | | 1.38 | % |
| Residential construction loans other than two-step loans | | | 3,718 | | | | 2.84 | % | | | 4,557 | | | | 2.90 | % | | | 698 | | | | 0.51 | % |
| Commercial construction loans | | | - | | | | 0.00 | % | | | - | | | | 0.00 | % | | | - | | | | 0.00 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total 30-89 days past due construction loans other than two-step loans | | $ | 4,170 | | | | 1.60 | % | | $ | 4,893 | | | | 1.62 | % | | $ | 1,336 | | | | 0.49 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Components of 30-89 days past due residential construction and land loans other than two-step loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Land loans1 | | $ | 452 | | | | 2.28 | % | | $ | 336 | | | | 1.20 | % | | $ | 165 | | | | 0.70 | % |
| Site development | | | 1,090 | | | | 1.79 | % | | | 2,119 | | | | 2.78 | % | | | 131 | | | | 0.20 | % |
| Vertical construction | | | 2,628 | | | | 3.75 | % | | | 2,438 | | | | 3.02 | % | | | 567 | | | | 0.80 | % |
| Total 30-89 days past due residential construction and land loans other than two-step loans | | $ | 4,170 | | | | 2.76 | % | | $ | 4,893 | | | | 2.64 | % | | $ | 863 | | | | 0.54 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Components of 30-89 days past due commercial construction and land loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Land loans1 | | $ | - | | | | 0.00 | % | | $ | - | | | | 0.00 | % | | $ | 473 | | | | 2.08 | % |
| Site development | | | - | | | | 0.00 | % | | | - | | | | 0.00 | % | | | - | | | | 0.00 | % |
| Vertical construction | | | - | | | | 0.00 | % | | | - | | | | 0.00 | % | | | - | | | | 0.00 | % |
| Total 30-89 days past due commercial construction and land loans | | $ | - | | | | 0.00 | % | | $ | - | | | | 0.00 | % | | $ | 473 | | | | 0.41 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Components of total 30-89 days past due construction and land loans other than two-step loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Land loans1 | | $ | 452 | | | | 1.09 | % | | $ | 336 | | | | 0.67 | % | | $ | 638 | | | | 1.38 | % |
| Site development | | | 1,090 | | | | 1.77 | % | | | 2,119 | | | | 2.74 | % | | | 131 | | | | 0.20 | % |
| Vertical construction | | | 2,628 | | | | 1.67 | % | | | 2,438 | | | | 1.40 | % | | | 567 | | | | 0.35 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total 30-89 days past due construction and land loans other than two-step loans | | $ | 4,170 | | | | 1.60 | % | | $ | 4,893 | | | | 1.62 | % | | $ | 1,336 | | | | 0.49 | % |
1 Land loans represent balances that are carried in the Company's residential real estate mortgage and commercial real estate loan portfolios.
2 Calculations have been based on more detailed information and therefore may not recompute exactly due to rounding.
