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EX-32 - SECTION 1350 CERTIFICATION - PACIFIC CONTINENTAL CORPsection1350cert.htm
EX-31.2 - 302 CFO CERTIFICATION - PACIFIC CONTINENTAL CORPcfocertification.htm
EX-31.1 - 302 CEO CERTIFICATION - PACIFIC CONTINENTAL CORPceocertification.htm

As Filed with the Securities & Exchange Commission on August 5, 2010.

SECURITIES & EXCHANGE COMMISSION

FORM 10-Q

[ X ]           Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Actof 1934 for the quarterly period ended June 30, 2010.

[   ]           Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Actof 1934 For the transition period from _______________ to ________________

Commission File Number:        0-30106                                                                           

PACIFIC CONTINENTAL CORPORATION
(Exact Name of Registrant as Specified in Its Charter)

OREGON
93-1269184
(State or Other Jurisdiction of
(I.R.S. Employer
Incorporation or Organization)
Identification Number)

111 West 7th Avenue
Eugene, Oregon  97401
(Address of principal executive offices) (Zip Code)

(541) 686-8685
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant:  (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  X No  __

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes __No __

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definition of “large accelerated filer”, “accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Act.
(Check one).
Large accelerated filer   __                                                      Accelerated filer   X                                               Non-accelerated filer  __
Smaller Reporting company __

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act     Yes  __                   No  X

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date:

Common Stock outstanding as of July 31, 2010:                                                                                                   18,398,725

 
 

 

PACIFIC CONTINENTAL CORPORATION
FORM 10-Q
QUARTERLY REPORT
TABLE OF CONTENTS


 
PART I
FINANCIAL INFORMATION
Page
       
 
Item 1.
Financial Statements
 
       
   
       
   
   
 
 
   
   
 
 
   
   
 
 
   
       
 
Item 2.
   
 
 
 
Item 3.
       
 
Item 4.
       
 
PART II
OTHER INFORMATION
 
       
 
Item 1.
Legal Proceedings
none
       
 
Item 1a.
       
 
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
none
       
 
Item 3.
Defaults Upon Senior Securities
none
       
 
Item 4.
Removed and Reserved
none
       
 
Item 5.
Other Information                                
none
       
 
Item 6.
       
   


 
 
 

 

Item 1.  Financial Statements


 
   
June 30,
   
December 31,
   
June 30,
 
   
2010
   
2009
   
2009
 
ASSETS
                 
  Cash and due from banks
  $ 16,908     $ 16,698     $ 23,851  
  Interest-bearing deposits with banks
    967       272       266  
            Total cash and cash equivalents
    17,875       16,970       24,117  
                         
  Securities available-for-sale
    188,193       167,618       85,653  
  Loans held-for-sale
    1,090       745       2,516  
  Loans, less allowance for loan losses and net deferred fees
    885,223       930,997       943,541  
  Interest receivable
    4,212       4,408       4,027  
  Federal Home Loan Bank stock
    10,652       10,652       10,652  
  Property, plant and equipment, net of accumulated depreciation
    21,275       20,228       20,306  
  Goodwill and other intangible assets
    22,569       22,681       22,792  
  Deferred tax asset
    5,552       7,177       4,572  
  Taxes receivable
    2,344       5,299       6,835  
  Other real estate owned
    9,651       4,224       2,659  
  Prepaid FDIC assessment
    5,339       6,242       -  
  Other assets
    1,445       1,872       2,568  
                         
            Total assets
  $ 1,175,420     $ 1,199,113     $ 1,130,238  
                         
LIABILITIES AND SHAREHOLDERS' EQUITY
                       
  Deposits
                       
    Noninterest-bearing demand
  $ 238,436     $ 202,088     $ 190,937  
    Savings and interest-bearing checking
    510,334       475,869       431,203  
    Time $100,000 and over
    65,030       68,031       66,945  
    Other time
    95,753       81,930       105,669  
       Total deposits
    909,553       827,918       794,754  
                         
  Federal funds and overnight funds purchased
    13,885       63,025       84,615  
  Federal Home Loan Bank advances and other borrowings
    70,500       130,000       118,500  
  Junior subordinated debentures
    8,248       8,248       8,248  
  Accrued interest and other payables
    2,476       4,260       4,761  
            Total liabilities
    1,004,662       1,033,451       1,010,878  
                         
Shareholders' equity
                       
Common stock; authorized 50,000,000 shares; issued and
                       
outstanding 18,398,725 shares (18,393,773 shares at
                       
December 31, 2009 and 12,872,781 shares at June 30, 2009)
    136,646       136,316       90,404  
  Retained earnings
    31,994       29,613       30,009  
  Accumulated other comprehensive income (loss)
    2,118       (267 )     (1,053 )
      170,758       165,662       119,360  
                         
             Total liabilities and shareholders’ equity
  $ 1,175,420     $ 1,199,113     $ 1,130,238  
                         
See accompanying notes.
 
                         


 
 
Page 3

 


   
Three months ended
   
Six months ended
 
   
June 30,
   
June 30,
 
   
2010
   
2009
   
2010
   
2009
 
Interest and dividend income
                       
  Loans
  $ 14,498     $ 15,329     $ 29,162     $ 30,649  
  Securities
    1,403       1,228       2,954       2,170  
  Federal funds sold & interest-bearing deposits with banks
    1       2       3       2  
      15,902       16,559       32,119       32,821  
                                 
Interest expense
                               
  Deposits
    2,341       2,309       4,673       4,599  
  Federal Home Loan Bank & Federal Reserve borrowings
    589       705       1,224       1,372  
  Junior subordinated debentures
    131       131       260       260  
  Federal funds purchased
    14       28       25       53  
      3,075       3,173       6,182       6,284  
                                 
     Net interest income
    12,827       13,386       25,937       26,537  
                                 
Provision for loan losses
    3,750       19,200       8,000       20,700  
     Net interest income (loss) after provision for loan losses
    9,077       (5,814 )     17,937       5,837  
                                 
Noninterest income
                               
  Service charges on deposit accounts
    418       472       828       936  
  Other fee income, principally bankcard
    367       310       693       582  
  Loan servicing fees
    15       18       32       37  
  Mortgage banking income
    40       127       75       186  
  Gain on sale of investment securities
    45       -       45       -  
  Impairment losses on investment securities (OTTI)
    (226 )     -       (226 )     -  
  Other noninterest income
    263       270       520       477  
      922       1,197       1,967       2,218  
                                 
Noninterest expense
                               
  Salaries and employee benefits
    4,194       4,227       8,983       9,098  
  Premises and equipment
    828       874       1,671       1,684  
  Bankcard processing
    157       128       294       246  
  Business development
    390       438       705       930  
  FDIC insurance assessment
    512       950       985       1,217  
  Other real estate expense
    12       479       101       565  
  Other noninterest expense
    1,808       1,550       3,376       2,956  
      7,901       8,646       16,115       16,696  
                                 
Income (loss) before provision (benefit) for income taxes
    2,098       (13,263 )     3,789       (8,641 )
Provision (benefit) for income taxes
    452       (5,134 )     1,040       (3,459 )
                                 
     Net income (loss)
  $ 1,646     $ (8,129 )   $ 2,749     $ (5,182 )
                                 
Earnings (loss) per share
                               
   Basic
  $ 0.09     $ (0.63 )   $ 0.15     $ (0.40 )
   Diluted
  $ 0.09     $ (0.63 )   $ 0.15     $ (0.40 )
                                 
Weighted average shares outstanding
                               
     Basic
    18,398       12,873       18,396       12,842  
     Common stock equivalents
                               
        attributable to stock-based awards
    22       -       22       -  
     Diluted
    18,420       12,873       18,418       12,842  
                                 
See accompanying notes.
 


 
Page 4

 

 


                     
Accumulated
       
                     
Other
       
   
Number
   
Common
   
Retained
   
Comprehensive
       
   
of Shares
   
Stock
   
Earnings
   
Income (Loss)
   
Total
 
                               
Balance, December 31, 2008
    12,079,691     $ 80,019     $ 37,764     $ (1,618 )   $ 116,165  
                                         
Net loss
                    (4,879 )             (4,879 )
               Other comprehensive income:
                                       
               Unrealized gain on securities
                            2,158          
               Deferred income taxes
                            (807 )        
                                         
Other comprehensive income
                            1,351       1,351  
                                         
              Comprehensive loss
                                    (3,528 )
              Stock issuance, net of costs
    6,270,000       55,293                       55,293  
              Stock options exercised and related tax benefit
    44,082       440                       440  
              Share-based compensation
            564                       564  
              Cash dividends
                    (3,272 )             (3,272 )
                                         
Balance, December 31, 2009
    18,393,773       136,316       29,613       (267 )     165,662  
                                         
                                         
             Net income
                    2,749               2,749  
             Other comprehensive income:
                                       
             Unrealized gain on securities
                            3,865          
             Deferred income taxes
                            (1,480 )        
                                         
Other comprehensive income
                            2,385       2,385  
                                         
             Comprehensive income
                                    5,134  
             Stock issuance, net of costs
    4,952       38                       38  
             Share-based compensation
            292                       292  
             Cash dividends
                    (368 )             (368 )
                                         
Balance, June 30, 2010
    18,398,725     $ 136,646     $ 31,994     $ 2,118     $ 170,758  
                                         
 
See accompanying notes.
 

 
 
 
Page 5

 
Consolidated Statements of Cash Flows
 (Dollars in thousands)
(Unaudited)

   
Six months ended
June 30,
 
   
2010
   
2009
 
Cash flows from operating activities:
           
Net income (loss)
  $ 2,749     $ (5,182 )
              Adjustments to reconcile net income to net cash
               
from operating activities:
               
              Depreciation and amortization, net of accretion
    1,844       466  
             Other than temporary impairment on investment securities
    226       -  
             Valuation adjustment on foreclosed assets
    -       436  
         Provision for loan losses
    8,000       20,700  
         (Gains) losses on foreclosed assets
    (26 )     37  
Deferred income taxes
    232       426  
         Share-based compensation
    348       247  
             Production of mortgage loans held-for-sale
    (4,903 )     (13,199 )
             Proceeds from the sale of mortgage loans held-for-sale
    4,558       11,093  
Change in:
               
Interest receivable
    196       (5 )
Deferred loan fees
    (474 )     (230 )
                            Accrued interest payable and other liabilities
    (1,784 )     (1,083 )
                   Income taxes receivable
    2,955       (6,524 )
Other assets
    1,330       (211 )
                         Net cash provided by operating activities
    15,251       6,971  
                 
Cash flow from investing activities:
               
              Proceeds from maturities of available for sale investment securities
    21,062       12,431  
              Purchase of available for sale investment securities
    (39,321 )     (41,941 )
              Net loan principal collections (originations)
    31,751       (19,947 )
Purchase of loans
    (40 )     (60 )
         Cash paid for acquisitions
    -       (10 )
Purchase of property
    (1,753 )     (256 )
          Proceeds on sale of foreclosed assets
    1,346       2,078  
          Purchase of energy tax credits
    -       (74 )
Net cash used by investing activities
    13,045       (47,779 )
                 
Cash flow from financing activities:
               
Change in deposits
    81,635       72,317  
              Change in federal funds purchased and FHLB  and FRB
               
         short-term borrowings
    (101,640 )     40,615  
              Proceeds from FHLB term advances originated
    1,000       4,000  
         FHLB term advances paid-off
    (8,000 )     (80,000 )
         Proceeds from stock options exercised
    -       452       
              Proceeds from stock issuance, net of costs
    (18 )     9,659  
Dividends paid
    (368 )     (2,573 )
Net cash provided by financing activities
    (27,391 )     44,470  
Net increase in cash and cash equivalents
    905       3,662  
Cash and cash equivalents, beginning of period
    16,970       20,455  
Cash and cash equivalents, end of period
  $ 17,875     $ 24,117  
                 
Supplemental information:
               
Noncash investing and financing activities:
               
Transfers of loans to foreclosed assets
  $ 6,747     $ 1,405  
Change in unrealized gain on securities, net of
               
    deferred income taxes
  $ 2,385     $ 565  
Cash paid during the period for:
               
Income taxes
  $ 2,029     $ 3,103  
Interest
  $ 5,958     $ 6,313  
                 
See accompanying notes.
 


 
Page 6

 


(Unaudited)

A complete set of Notes to Consolidated Financial Statements is a part of the Company’s 2009 Form 10-K filed March 16, 2010.  The notes below are included due to material changes in the financial statements or to provide the reader with additional information not otherwise available.  In preparing these financial statements, the Company has evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements.  All numbers in the following notes are expressed in thousands, except share and per share data.

Certain amounts contained in the prior period consolidated financial statements have been reclassified where appropriate to conform to the financial statement presentation used in the current period.  These reclassifications had no effect on previously reported net income.

 
1.  Basis of Presentation
 
The accompanying interim consolidated financial statements include the accounts of Pacific Continental Corporation (the “Company”), a bank holding company, and its wholly-owned subsidiary, Pacific Continental Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries, PCB Services Corporation and PCB Loan Services Corporation (both of which are presently inactive). All significant intercompany accounts and transactions have been eliminated in consolidation.

The accompanying consolidated financial statements have been prepared by the Company without audit and in conformity with generally accepted accounting principles in the United States of America for interim financial information.  The financial statements include all adjustments and normal accruals, which the Company considers necessary for a fair presentation of the results of operations for such interim periods.  In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, as of the date of the balance sheets and income and expenses for the periods.  Actual results could differ from those estimates.

The balance sheet data as of December 31, 2009 was derived from audited financial statements, but does not include all disclosures contained in the Company’s 2009 Form 10-K.  The interim consolidated financial statements should be read in conjunction with the December 31, 2009 consolidated financial statements, including the notes thereto, included in the Company’s 2009 Form 10-K.


 
 
Page 7

 

2.  Securities Available-for-Sale:

The amortized costs, unrealized gains, unrealized losses, and estimated fair values of securities available-for-sale at June 30, 2010 are as follows:


June 30, 2010
                                   
(in thousands)
                                   
                           
Securities in
   
Securities in
 
                           
Continuous
   
Continuous
 
                           
Unrealized
   
Unrealized
 
                           
Loss
   
Loss
 
         
Gross
   
Gross
   
Estimated
   
Position for
   
Position For
 
   
Amortized
   
Unrealized
   
Unrealized
   
Fair
   
Less Than
   
12 Months
 
   
Cost
   
Gains
   
Losses
   
Value
   
12 Months
   
or Longer
 
                                     
Unrealized Loss Positions
                                   
Mortgage-backed securities:
                                   
Agency mortgage-backed securities
  $ 22,908     $ -     $ (280 )   $ 22,628     $ 22,628     $ -  
Private-label mortgage-backed securities
    10,318       -       (1,270 )     9,048       1,873       7,175  
                                                 
    $ 33,226     $ -     $ (1,550 )   $ 31,676     $ 24,501     $ 7,175  
                                                 
Unrealized Gain Positions
                                               
Obligations of U.S. government agencies
  $ 7,057     $ 230     $ -     $ 7,287                  
Obligations of states and political subdivisions
    6,108       438       -       6,546                  
Mortgage-backed securities:
                                               
Agency mortgage-backed securities
    125,093       3,819       -       128,912                  
Private-label mortgage-backed securities
    13,277       495       -       13,772                  
                                                 
      151,535       4,982       -       156,517                  
                                                 
    $ 184,761     $ 4,982     $ (1,550 )   $ 188,193                  
                                                 

At June 30, 2010, there were 36 investment securities in unrealized loss positions, of which 13 have been in a continuous unrealized loss position for twelve months or longer.  The fair value of the investment securities in a continuous loss position for twelve months or longer was $7,175. The unrealized loss associated with these securities was $1,205 at June 30, 2010.  The projected average life of the securities portfolio is approximately two years.  The Company has no intent, nor is it more likely than not, that it will be required to sell these securities before their recovery.

When a security experiences a decline in fair value below its amortized cost basis, it is deemed to be impaired.  Management reviews the Company’s impaired investment securities on a quarterly basis for the presence of other-than-temporary impairment (“OTTI”).  We assess whether OTTI is present when the fair value of a debt security is less than its amortized cost basis at the balance sheet date. Under these circumstances, OTTI is considered to have occurred, (1) if we intend to sell the security, (2) if it is “more likely than not” we will be required to sell the security before recovery of its amortized cost basis, or (3) the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. The “more likely than not” criteria is a lower threshold than the “probable” criteria used under previous guidance.

At June 30, 2010, no impairment exists on the Company’s securities classified as obligations of U.S. government agencies and obligations of states and political subdivisions.  Additionally, the Company’s impaired agency mortgage-backed securities are deemed to have no OTTI, as they retain strong credit ratings, continue to perform adequately, and are backed by various government-sponsored enterprises (“GSEs”).  These impairments are deemed to be associated with the changes in market interest rates or the widening of market spreads subsequent to the initial purchase of the securities, and not due to concerns regarding the underlying credit of the issuers or the underlying collateral.  The decline in value of these securities has resulted from current economic conditions.  Although yields on these securities may be below market rates during the period, no loss of principal is expected.

During the second quarter 2010, Management performed a detailed review of its private-label mortgage-backed securities and identified five individual securities which are deemed to have OTTI.  Management’s evaluation included the use of independently-generated third-party credit surveillance reports that analyze the loans underlying each security.  These reports include estimates of default rates and severities, life collateral loss rates, and static voluntary prepayment assumptions to generate estimated cash flows at the individual security level.  Additionally, Management considered factors such as downgraded credit ratings, severity and duration of the impairments, the stability of the issuers, and any discounts paid when the securities were purchased.  Based on these results, it was determined that OTTI existed on five securities.

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The OTTI was divided into two components; the amount representing credit loss and the amount related to all other factors.  The amount representing credit loss was $226, and was recognized in the current period against earnings.  The amount representing all other factors was $140, and was recognized in other comprehensive income, net of applicable taxes.  Management has reviewed all available information related to the collectability of these impaired investment securities and believes that the estimated credit loss is appropriate.

Following is a tabular roll-forward of the amount of credit-related OTTI recognized in earnings:

   
Three months ended June 30, 2010
   
Six months ended June 30, 2010
 
Balance, beginning of period:
  $ -     $ -  
Additions:
               
Initial OTTI credit loss
    226       226  
Balance, end of period:
  $ 226     $ 226  
                 


 
Noncredit-related OTTI of $140 was recognized in other comprehensive income during the three and six months ended June 30, 2010.

 
 
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The amortized costs, unrealized gains, unrealized losses, and estimated fair values of securities available-for-sale at December 31, 2009 and June 30, 2009 are as follows:

December 31, 2009
                                   
(in thousands)
                                   
                           
Securities in
   
Securities in
 
                           
Continuous
   
Continuous
 
                           
Unrealized
   
Unrealized
 
                           
Loss
   
Loss
 
         
Gross
   
Gross
   
Estimated
   
Position for
   
Position For
 
   
Amortized
   
Unrealized
   
Unrealized
   
Fair
   
Less Than
   
12 Months
 
   
Cost
   
Gains
   
Losses
   
Value
   
12 Months
   
or Longer
 
                                     
Unrealized Loss Positions
                                   
Obligations of U.S. government agencies
  $ 5,047     $ -     $ (47 )   $ 5,000     $ 5,000     $ -  
Obligations of states and political subdivisions
    -       -       -       -       -       -  
Mortgage-backed securities:
    61,721       -       (2,511 )     59,210       53,048       6,162  
                                                 
    $ 66,768     $ -     $ (2,558 )   $ 64,210     $ 58,048     $ 6,162  
                                                 
Unrealized Gain Positions
                                               
                                                 
Obligations of U.S. government agencies
  $ -     $ -     $ -     $ -                  
Obligations of states and political subdivisions
    6,372       337       -       6,709                  
Mortgage-backed securities:
    94,910       1,789       -       96,699                  
                                                 
      101,282       2,126       -       103,408                  
                                                 
    $ 168,050     $ 2,126     $ (2,558 )   $ 167,618                  
                                                 
                                                 
June 30, 2009
                                               
(in thousands)
                                               
                                   
Securities in
   
Securities in
 
                                   
Continuous
   
Continuous
 
                                   
Unrealized
   
Unrealized
 
                                   
Loss
   
Loss
 
           
Gross
   
Gross
   
Estimated
   
Position for
   
Position For
 
   
Amortized
   
Unrealized
   
Unrealized
   
Fair
   
Less Than
   
12 Months
 
   
Cost
   
Gains
   
Losses
   
Value
   
12 Months
   
or Longer
 
                                                 
Unrealized Loss Positions
                                               
Obligations of U.S. government agencies
  $ -                                          
Obligations of states and political subdivisions
  $ 315     $ -     $ (4 )   $ 311     $ 311     $ -  
Mortgage-backed securities:
    33,147       -       (2,982 )     30,165       18,160       12,005  
                                                 
    $ 33,462     $ -     $ (2,986 )   $ 30,476     $ 18,471     $ 12,005  
                                                 
Unrealized Gain Positions
                                               
                                                 
Obligations of U.S. government agencies
  $ 999     $ 4     $ -     $ 1,003                  
Obligations of states and political subdivisions
    6,601       151       -       6,752                  
Mortgage-backed securities:
    46,297       1,125       -       47,422                  
                                                 
      53,897       1,280       -       55,177                  
                                                 
    $ 87,359     $ 1,280     $ (2,986 )   $ 85,653                  
                                                 



 

 
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The amortized costs and estimated fair values of securities at June 30, 2010, December 31, 2009, and June 30, 2009 by maturity are shown below.  Obligations of U.S. government agencies and states and political subdivisions are shown by contractual maturity.  Mortgage-backed securities are shown by projected average life.


   
June 30, 2010
   
December 31, 2009
   
June 30, 2009
 
         
Estimated
         
Estimated
         
Estimated
 
   
Amortized
   
Fair
   
Amortized
   
Fair
   
Amortized
   
Fair
 
   
Cost
   
Value
   
Cost
   
Value
   
Cost
   
Value
 
                                     
Due in one year or less
  $ 44,654     $ 44,811     $ 32,730     $ 33,110     $ 11,872     $ 12,129  
Due after one year through 5 years
    134,863       138,054       122,580       122,063       61,348       59,861  
Due after 5 years through 10 years
    5,244       5,328       12,740       12,445       14,139       13,663  
                                                 
    $ 184,761     $ 188,193     $ 168,050     $ 167,618     $ 87,359     $ 85,653  
                                                 


 
One investment security was sold during the second quarter of 2010 resulting in a gain on sale of $45.
 
At June 30, 2010, securities with amortized costs of $28,993 (estimated market values of $30,694) were pledged to secure certain Treasury and public deposits as required by law, and to secure a borrowing line with the Federal Home Loan Bank of Seattle.

 
 
Page 11

 


3.  Loans

Major classifications of period end loans are as follows:


   
June 30,
   
% of gross
   
December 31,
   
% of gross
   
June 30,
   
% of gross
 
   
2010
   
loans
   
2009
   
loans
   
2009
   
loans
 
LOANS BY TYPE
                                   
 Real estate secured loans:
                                   
  Permanent Loans:
                                   
   Multifamily residential
  $ 59,150       6.5 %   $ 68,509       7.2 %   $ 69,115       7.2 %
   Residential 1-4 family
    87,881       9.7 %     86,795       9.2 %     86,350       9.0 %
   Owner-occupied commercial
    205,126       22.7 %     197,884       20.9 %     202,594       21.0 %
   Non-owner-occupied commercial
    152,422       16.9 %     147,605       15.6 %     141,697       14.8 %
   Other loans secured by real estate
    27,064       3.1 %     37,404       4.0 %     22,275       2.3 %
    Total permanent real estate loans
    531,643       58.8 %     538,197       56.9 %     522,031       54.2 %
 Construction Loans: