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
RECORD FIRST QUARTER 2004 EARNINGS
O EARNINGS PER DILUTED SHARE OF $.33; A 10% INCREASE OVER FIRST QUARTER 2003
O TOTAL LOANS INCREASED 7% OR $87 MILLION FROM THE FIRST QUARTER OF 2003
O RETURN ON AVERAGE EQUITY OF 14.8%, UP FROM 14.3% IN THE FIRST QUARTER 2003
Lake Oswego, OR - April 13, 2004- West Coast Bancorp (NASDAQ: WCBO) today
announced quarterly earnings of $5.2 million or $0.33 per diluted share for the
first quarter of 2004, compared to earnings of $4.72 million or $0.30 per
diluted share in the first quarter of 2003. This represents a 10% net income and
earnings per diluted share growth from the same quarter in 2003.
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Three Months Ended
March 31,
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(# in 000's except per
share data) 2004 2003
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Earnings per Diluted Share $ .33 $ .30
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Net Income $ 5,171 $ 4,719
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Return on Average Equity 14.8% 14.3%
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Book Value per Share $ 9.52 $ 8.88
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Total Period End Loans $1,260,771 $1,174,242
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Total Period End Deposits $1,380,120 $1,272,475
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"The 10% increase in earnings per share, to $.33 in the first quarter of 2004,
from the same quarter last year represents continued progress for the Company,"
said Robert D. Sznewajs, President and CEO. "The Company remains dedicated to
its stated strategy of growing its commercial and home equity loan portfolios.
In addition, the Company was successful in growing its real estate construction
loan portfolio by almost $10 million or 9% from the end of the first quarter a
year ago. Credit quality has also remained consistent with previous quarterly
trends. Furthermore, the Company was selected by Oregon Business Magazine as one
of their `100 Best Companies To Work For' in Oregon."
Financial Results
Over the 12 months ending March 31, 2004, total loans for the Company grew by
more than 7%, or $87 million. The Company experienced particularly strong growth
during this period in commercial, real estate construction, and home equity
loans. Compared to year-end 2003, total loans increased by nearly $40 million,
an annualized rate of 13%, with solid increases in the commercial, real estate
construction, and home equity loan categories.
For the quarter ended March 31, 2004, net interest income was $18.2 million; an
increase of $1.5 million or 9% from the first quarter of 2003. Higher loan and
investment balances and an improved deposit mix contributed to the increase in
net interest income. The net interest margin at 4.78 % in the latest quarter
declined slightly from 4.82% in the same
WEST COAST BANCORP REPORTS FIRST QUARTER 2004 EARNINGS
April 13, 2004
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quarter last year due to lower reinvestment yields and declining yields in the
loan and investment portfolios. However, the first quarter 2004 net interest
margin increased 18 basis points from the fourth quarter 2003. The sequential
quarter increase in the net interest margin was caused by an improved mix in
average earning assets and a wider loan to deposit spread.
Total non-interest income increased by $.5 million or 11% in the first quarter
of 2004 compared to the same period a year ago. The quarter over quarter
increase in deposit accounts and related fees associated with overdraft
protection activity, additional related payment systems revenues, and higher
investment product sales revenue accounted for $.4 million of the increase.
These increases were partly offset by a $.3 million decline in gain on sales
from reduced residential mortgage origination volume compared to the first
quarter of 2003. Other non-interest income increased by $.2 million due to the
one-time sale of a repossessed property.
First quarter 2004 total non-interest expense increased 11% or $1.5 million
compared to the first quarter 2003. Salaries and benefits increases represented
$1.1 million of the year-over-year quarterly increase. Approximately 40% of the
$1.1 million increase in salaries and benefits was associated with new branch
offices and additional commercial and residential lending officers. The first
quarter 2004 occupancy expense increased $.4 million from the first quarter of
2003, with $.3 million being a one-time charge as a result of decreasing our
book value in an affordable housing tax credit to match our equity in the
project. Year over year first quarter marketing expenses increased $.2 million
mainly due to additional direct mail cost associated with a new product launched
in the South Puget Sound Region, while other loan expense declined $.3 million,
primarily in the area of other real estate owned costs. Declining legal costs
positively affected professional expense on a year over year first quarter
basis.
Annualized net charge-offs were .11% of average loans for the first quarter
2004, compared to .15% in the same period last year. Net charge-offs were $.3
million in the quarter ended March 31, 2004, virtually unchanged from the $.4
million in the first quarter of 2003. At March 31, 2004, the allowance for loan
losses was 1.48% of total loans compared to 1.47% on March 31, 2003.
Non-performing assets were $5.2 million or .31% of total assets at March 31,
2004, down from $6.4 million or .41% at March 31, 2003. The allowance for loan
losses was 524% of total non-performing loans at March 31, 2004, compared to
358% at March 31, 2003.
During the first quarter of 2004, consistent with its capital plan and pursuant
to its corporate repurchase program, the Company repurchased approximately
132,400 shares. During the past twelve months, the Company repurchased
approximately 520,100 shares or 3.5% of its common shares outstanding at an
average cost of $19.70 per share. At March 31, 2004, approximately 188,000
shares remained available for repurchase.
Other:
The Company will hold a webcast conference call Wednesday, April 14, 2004, at
8:30 a.m. Pacific Time, during which the Company will discuss first quarter
results, review its strategic progress, and provide management's current
earnings expectations for the full year 2004. To access the conference call via
a live webcast, go to www.wcb.com and click on Investor Relations/Conference
Call/West Coast Bancorp Webcast. The conference call
WEST COAST BANCORP REPORTS FIRST QUARTER 2004 EARNINGS
April 13, 2004
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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 at
www.wcb.com and clicking on Investor Relations/Conference Call/Archived
Conference Call (Replay).
West Coast Bancorp is a Northwest bank holding company with $1.7 billion in
assets, operating 48 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 at www.wcb.com.
Forward Looking Statements:
Statements in this report 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 loan yield and
rates paid on deposits; changing customer investment, deposit and lending
behaviors; changing interest rate environments, including the shape and the
level of the yield curve, that could decrease net interest income and fee
income, including lowers gains on sales of loans; vendor service quality;
changes in laws and other legal developments; 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 additional lending officers and other
key personnel; close loans in the pipeline; generate loan and deposit balances
at projected spreads; sustain fee generation; maintain asset quality; control
the level of net charge-offs; generate retail investments; retain customers of
greatest value; control expenses; monitor and manage the Company's internal
operating and disclosure control environments; 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 ("SEC"). 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 FIRST QUARTER 2004 EARNINGS
April 13, 2004
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FINANCIAL HIGHLIGHTS Three months ended Twelve months ended
(Unaudited) March 31, December 31,
(Dollars and shares in thousands) 2004 2003 2003 2002
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Interest and fees on loans $18,936 $19,494 $77,321 $82,989
Interest on investment securities 3,482 3,042 12,148 12,785
Other interest income 14 12 209 254
------- ------- ------- -------
Total interest income 22,432 22,548 89,678 96,028
Interest expense on deposit accounts 2,751 4,187 15,131 21,319
Interest on borrowings including trust preferred sec. 1,444 1,663 5,508 7,213
------- ------- ------- -------
Total interest expense 4,195 5,850 20,639 28,532
------- ------- ------- -------
Net interest income 18,237 16,698 69,039 67,496
Provision for loan loss 900 850 3,800 4,979
Non-interest income
Service charges on deposit accounts 1,855 1,672 6,960 6,352
Other service charges, commissions and fees 1,706 1,392 6,577 5,099
Trust revenues 500 414 1,776 1,683
Gains on sales of loans 913 1,142 5,124 4,024
Bank owned life insurance 224 110 827 227
Other 310 60 590 1,309
Gains on sales of securities - 192 192 -
------- ------- ------- -------
Non-interest income 5,508 4,982 22,046 18,694
Non-interest expense
Salaries and employee benefits 8,920 7,830 32,487 24,499
Equipment 1,301 1,216 5,139 5,100
Occupancy 1,573 1,181 4,901 4,642
Check and other transaction processing 629 675 2,778 2,572
Professional fees 414 501 2,314 1,834
Courier and postage 466 509 1,953 1,948
Marketing 492 290 2,047 2,018
Other loan expense 190 447 1,624 1,276
Communications 290 286 1,166 1,100
Other taxes and insurance 190 182 700 721
Printing and office supplies 176 140 637 710
Other non-interest expense 547 427 2,404 2,598
------- ------- ------- -------
Non-interest expense 15,188 13,684 58,150 54,018
------- ------- ------- -------
Income before income taxes 7,657 7,146 29,135 27,193
Provision for income taxes 2,486 2,427 9,338 8,990
------- ------- ------- -------
Net income $ 5,171 $ 4,719 $19,797 $18,203
======= ======= ======= =======
Basic earnings per share $ 0.35 $ 0.31 $ 1.31 $ 1.17
Diluted earnings per share $ 0.33 $ 0.30 $ 1.26 $ 1.13
Weighted average common shares 14,943 15,147 15,077 15,575
Weighted average diluted shares 15,642 15,611 15,674 16,069
PERIOD END BALANCES Prior Qtr-to-Qtr
(Unaudited) Quarter ended Quarter ended Year-to-year Quarter ended % change
(000's except per share data) Mar-04 Mar-03 % change Dec-03 annualized
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Total assets $1,684,001 $1,557,174 8.1% $1,662,882 5.1%
Total investment securities $ 316,410 $ 265,072 19.4% $ 321,970 -6.9%
Total loans $1,260,771 $1,174,242 7.4% $1,220,881 13.1%
Allowance for loan losses $ 18,685 $ 17,246 8.3% $ 18,131 12.2%
Total deposits $1,380,120 $1,272,475 8.5% $1,404,859 -7.0%
Total borrowings including
including subordinated debentures $ 148,739 $ 133,832 11.1% $ 103,646 174.0%
Stockholders' equity $ 143,114 $ 134,543 6.4% $ 140,053 8.7%
Non-performing assets $ 5,151 $ 6,366 -19.1% $ 4,410 67.2%
WEST COAST BANCORP REPORTS FIRST QUARTER 2004 EARNINGS
April 13, 2004
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WEST COAST BANCORP (unaudited) First First Fourth Year Year
(in thousands except for per share data) Quarter Quarter Quarter to date to date
(all rates have been annualized where appropriate 2004 2003 2003 2003 2002
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CAPITAL
- Stockholders' equity $ 143,114 $ 134,543 $ 140,053 $ 140,053 $ 133,387
- Shares outstanding period end 15,025 15,154 15,076 15,076 15,326
- Average stockholders' equity to average assets 8.47% 8.74% 8.36% 8.57% 8.76%
- Book value per common share $ 9.52 $ 8.88 $ 9.29 $ 9.29 $ 8.70
- Tangible book value per common share $ 9.47 $ 8.80 $ 9.23 $ 9.23 $ 8.62
PERFORMANCE RATIOS
- Return on average assets 1.25% 1.25% 1.20% 1.24% 1.22%
- Return on average equity 14.79% 14.35% 14.39% 14.52% 13.96%
- Non-interest income to average assets 1.33% 1.32% 1.30% 1.39% 1.26%
- Non-interest expense to average assets 3.68% 3.64% 3.54% 3.66% 3.63%
- Efficiency ratio, tax equivalent 62.86% 62.38% 62.60% 62.77% 61.32%
RATES
- Earned on interest-earning assets 5.86% 6.46% 5.77% 6.08% 6.99%
- Paid on interest-bearing liabilities 1.40% 2.10% 1.54% 1.78% 2.56%
- Net interest spread 4.46% 4.36% 4.23% 4.29% 4.43%
- Net interest margin 4.78% 4.82% 4.60% 4.70% 4.95%
- Tax equivalent net interest income $ 18,655 $ 17,146 $ 18,200 $ 70,793 $ 69,402
AVERAGE ASSETS
- Investment securities $ 317,741 $ 263,918 $ 323,210 $ 280,028 $ 251,728
- Commercial loans $ 246,461 $ 217,014 $ 238,575 $ 234,720 $ 201,600
- Real estate construction loans $ 117,368 $ 116,236 $ 115,696 $ 116,820 $ 109,044
- Real estate mortgage loans $ 182,234 $ 153,302 $ 174,889 $ 163,505 $ 137,744
- Real estate commercial loans $ 656,030 $ 638,222 $ 645,078 $ 640,349 $ 633,066
- Installment and other consumer loans $ 38,560 $ 44,194 $ 39,248 $ 41,568 $ 46,308
- Total loans $1,240,653 $1,168,968 $1,213,486 $1,196,962 $1,127,762
- Total interest earning assets $1,568,364 $1,443,984 $1,569,079 $1,504,949 $1,401,525
- Total assets $1,659,927 $1,525,676 $1,659,062 $1,590,242 $1,487,564
AVERAGE LIABILITIES
- Total demand deposits $ 300,358 $ 249,671 $ 312,837 $ 283,504 $ 234,189
- Total interest bearing demand,
savings, and money market $ 734,022 $ 623,798 $ 731,220 $ 669,689 $ 592,150
- Total certificates of deposits $ 329,418 $ 370,727 $ 356,911 $ 371,534 $ 395,161
- Total deposits $1,363,798 $1,244,196 $1,400,968 $1,324,727 $1,221,500
- Total borrowings including subordinated debentures $ 141,389 $ 137,262 $ 106,014 $ 117,533 $ 125,997
- Total interest bearing liabilities $1,204,829 $1,131,788 $1,194,144 $1,158,755 $1,113,308
- Total liabilities $1,519,305 $1,392,292 $1,520,295 $1,453,925 $1,357,188
AVERAGE ASSET/LIABILITY RATIOS
- Average int. earning assets to int. bearing liabilities 130.2% 127.6% 131.4% 129.9% 125.9%
- Loans to assets 74.7% 76.6% 73.1% 75.3% 75.8%
- Interest bearing deposits to assets 64.1% 65.2% 65.6% 65.5% 66.4%
ASSET QUALITY
- Non-accruing loans $ 3,560 $ 4,815 $ 2,669 $ 2,669 $ 5,080
- 90-day delinquencies $ 9 - - - $ 15
- Total non-performing loans $ 3,569 $ 4,815 $ 2,669 $ 2,669 $ 5,095
- Real estate owned $ 1,582 $ 1,551 $ 1,741 $ 1,741 $ 1,672
- Total non-performing assets $ 5,151 $ 6,366 $ 4,410 $ 4,410 $ 6,767
ASSET QUALITY RATIOS
- Allowance for loan losses to total loans 1.48% 1.47% 1.49% 1.49% 1.45%
- Non-performing loans to total loans 0.28% 0.41% 0.22% 0.22% 0.44%
- Allowance for loan losses to Non-performing loans 523.57% 358.15% 679.30% 697.30% 330.45%
- Non-performing assets to total assets 0.31% 0.41% 0.27% 0.27% 0.44%
- Allowance for loan losses to Non-performing assets 362.76% 270.90% 411.08% 411.08% 248.81%
- Net loan charge-offs to average loans (annualized) 0.11% 0.15% 0.37% 0.21% 0.30%
WEST COAST BANCORP REPORTS FIRST QUARTER 2004 EARNINGS
April 13, 2004
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Trailing Four Quarters First Fourth Third Second Trailing
Financial Data and Ratios Quarter Quarter Quarter Quarter Four
(Unaudited) (dollars in thousands): 2004 2003 2003 2003 Quarters
- ---------------------------------------------------------------------------------------
Net income $5,171 $5,034 $5,045 $4,999 $20,249
Diluted earnings per share $ 0.33 $ 0.32 $ 0.32 $ 0.32 $ 1.29
Return on average assets 1.25% 1.20% 1.24% 1.29% 1.24%
Return on average equity 14.79% 14.39% 14.59% 14.76% 14.63%
Net interest margin 4.78% 4.60% 4.63% 4.78% 4.69%
Efficiency ratio, tax equivalent 62.86% 62.60% 63.00% 63.05% 62.89%
Non-interest income to Avg. Assets 1.33% 1.30% 1.43% 1.50% 1.39%
Non-interest expense to Avg. Assets 3.68% 3.54% 3.66% 3.81% 3.67%