Attached files
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| 8-K - WEST COAST BANCORP /NEW/OR/ | v219531_8k.htm |
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 First Quarter 2011 Profits
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·
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First quarter 2011 net income was $5.1 million or $.05 per diluted share.
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Return on average assets, annualized, was .84% in the first quarter.
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New loan origination volume during the first quarter continued to improve from prior quarters.
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Nonperforming assets of $93.3 million or 3.8% of total assets at March 31, 2011, declined from previous quarter end and a year ago.
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First quarter 2011 net interest margin improved to 3.81% from 3.38% in the same period last year.
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Lake Oswego, OR – April 25, 2011 – West Coast Bancorp (NASDAQ: WCBO) (“Bancorp” or “Company”), the parent company of West Coast Bank (“Bank”) and West Coast Trust Company, Inc., today announced net income of $5.1 million or $.05 per diluted share for first quarter 2011 compared to a net loss for first quarter 2010 of $.9 million or $.01 per diluted share. The Company also reported an annualized return on average assets of .84% in the most recent quarter, compared to an operating loss in the first quarter of 2010. The year-over-year first quarter improvement was primarily reflective of positive trends in both provision for credit losses and Other Real Estate Owned (“OREO”) valuation adjustments.
“The results for the first quarter of 2011, reflecting a profit of $5.1 million and an annualized return on average assets of .84%, represent continuous progress for the Company from prior periods as virtually all of the key financial metrics of the Company continued their trend of improvement,” said Robert D. Sznewajs, President and Chief Executive Officer. “The continued growth in loan origination volume is beginning to impact total loan balances. Combined with further declines in the credit costs, growth in the loan portfolio will, over time, improve our operating leverage and further enhance our overall operating results,” said Sznewajs.
WEST COAST BANCORP REPORTS FIRST QUARTER 2011 RESULTS
April 25, 2011
Page 2 of 17
Table 1 below shows summary financial information for the quarters ended March 31, 2011 and 2010, and December 31, 2010.
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Table 1
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SUMMARY FINANCIAL INFORMATION
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Quarter ended
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Quarter ended
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Quarter ended
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March 31,
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March 31,
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Dec. 31,
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(Shares in thousands)
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2011
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2010
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Change
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2010
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Change
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Selective quarterly performance ratios
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Return on average assets, annualized
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0.84 | % | -0.13 | % | 0.97 | 0.31 | % | 0.53 | |||||||||||||
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Return on average equity, annualized
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7.56 | % | -1.42 | % | 8.98 | 2.75 | % | 4.81 | |||||||||||||
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Efficiency ratio for the quarter to date
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74.14 | % | 78.41 | % | (4.27 | ) | 77.42 | % | (3.28 | ) | |||||||||||
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Share and Per Share Figures-Actual
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Common shares outstanding at period end
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96,416 | 92,077 | 4,339 | 96,431 | (15 | ) | |||||||||||||||
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Weighted average diluted shares
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99,694 | 67,125 | 32,569 | 97,863 | 1,831 | ||||||||||||||||
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Income (loss) per diluted share
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$ | 0.05 | $ | (0.01 | ) | $ | 0.06 | $ | 0.02 | $ | 0.03 | ||||||||||
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Book value per common share
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$ | 2.65 | $ | 2.60 | $ | 0.05 | $ | 2.61 | $ | 0.04 | |||||||||||
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Please see Table 19 for additional information regarding outstanding shares and the possible dilutive effects of presently outstanding securities.
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Capital Ratios
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March 31,
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March 31,
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Dec. 31,
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| 2011 | 2010 |
Change
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2010 |
Change
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West Coast Bancorp
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Tier 1 risk based capital ratio
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17.72 | % | 15.88 | % | 1.84 | 17.47 | % | 0.25 | |||||||||||||
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Total risk based capital ratio
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18.98 | % | 17.14 | % | 1.84 | 18.74 | % | 0.24 | |||||||||||||
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Leverage ratio
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13.40 | % | 11.57 | % | 1.83 | 13.02 | % | 0.38 | |||||||||||||
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West Coast Bank
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Tier 1 risk based capital ratio
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17.02 | % | 15.24 | % | 1.78 | 16.79 | % | 0.23 | |||||||||||||
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Total risk based capital ratio
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18.28 | % | 16.50 | % | 1.78 | 18.05 | % | 0.23 | |||||||||||||
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Leverage ratio
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12.87 | % | 11.16 | % | 1.71 | 12.51 | % | 0.36 | |||||||||||||
Capital Strength
As indicated in Table 1 above, the combination of a return to profitability and a reduction in risk weighted assets continued to strengthen the Company’s capital position. At March 31, 2011, the Company’s Tier 1 and Total risk based capital ratios measured 17.72% and 18.98%, respectively, while its leverage ratio was 13.40%.
WEST COAST BANCORP REPORTS FIRST QUARTER 2011 RESULTS
April 25, 2011
Page 3 of 17
Balance Sheet Overview
Total loan balances declined $131 million or 8% from March 31, 2010 to $1.54 billion at March 31, 2011, but remained essentially unchanged from year end 2010. While loan balances contracted year-over-year, the Company has experienced a steady increase in quarterly loan origination volumes during this period as evidenced by total loan balances stabilizing during the most recent quarter. Total real estate construction loan balances declined $47 million or 55% over the past twelve months. This decline is directly a result of minimal new loan originations in this loan category during that time period. The commercial loan portfolio contracted $36 million or 10% from March 31, 2010, with a reduction in commercial nonaccrual balances representing a portion of this decline. At March 31, 2011, total residential real estate construction loans represented just 1% of total loans compared to 4% a year ago.
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Table 2
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PERIOD END LOANS
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(Dollars in thousands)
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Mar. 31,
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% of
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Mar. 31,
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% of
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Change
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Dec. 31,
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% of
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2011
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Total
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2010
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total
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Amount
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%
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2010
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Total
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Commercial loans
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$ | 306,864 | 20 | % | $ | 342,385 | 21 | % | $ | (35,521 | ) | -10 | % | $ | 309,327 | 20 | % | ||||||||||||||||
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Commercial real estate construction
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17,711 | 1 | % | 23,554 | 1 | % | (5,843 | ) | -25 | % | 19,760 | 1 | % | ||||||||||||||||||||
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Residential real estate construction
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19,896 | 1 | % | 60,879 | 4 | % | (40,983 | ) | -67 | % | 24,325 | 2 | % | ||||||||||||||||||||
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Total real estate construction loans
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37,607 | 2 | % | 84,433 | 5 | % | (46,826 | ) | -55 | % | 44,085 | 3 | % | ||||||||||||||||||||
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Mortgage
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63,780 | 4 | % | 74,613 | 4 | % | (10,833 | ) | -15 | % | 67,525 | 4 | % | ||||||||||||||||||||
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Nonstandard mortgage
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11,140 | 1 | % | 18,233 | 1 | % | (7,093 | ) | -39 | % | 12,523 | 1 | % | ||||||||||||||||||||
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Home equity
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266,606 | 17 | % | 277,527 | 17 | % | (10,921 | ) | -4 | % | 268,968 | 18 | % | ||||||||||||||||||||
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Total real estate mortgage
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341,526 | 22 | % | 370,373 | 22 | % | (28,847 | ) | -8 | % | 349,016 | 23 | % | ||||||||||||||||||||
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Commercial real estate loans
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834,880 | 55 | % | 853,180 | 51 | % | (18,300 | ) | -2 | % | 818,577 | 53 | % | ||||||||||||||||||||
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Installment and other consumer loans
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14,823 | 1 | % | 16,562 | 1 | % | (1,739 | ) | -10 | % | 15,265 | 1 | % | ||||||||||||||||||||
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Total loans
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$ | 1,535,700 | $ | 1,666,933 | $ | (131,233 | ) | -8 | % | $ | 1,536,270 | ||||||||||||||||||||||
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Yield on loans
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5.38 | % | 5.44 | % | (0.06 | ) | 5.43 | % | |||||||||||||||||||||||||
Reflecting the Company’s strong liquidity position, the Company’s total cash equivalents and investment securities balance was $768 million or 33% of earning assets at March 31, 2011. Since March 31, 2010, the Company reduced its cash equivalents by $118 million while increasing its investment portfolio $72 million, with growth in mortgage-backed securities of $74.9 million. The expected duration of the investment portfolio was 3.1 years at March 31, 2011, compared to 2.7 years at March 31, 2010.
WEST COAST BANCORP REPORTS FIRST QUARTER 2011 RESULTS
April 25, 2011
Page 4 of 17
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Table 3
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PERIOD END CASH EQUIVALENTS AND INVESTMENT SECURITIES
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(Dollars in thousands)
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Mar. 31,
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% of
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Mar. 31,
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% of
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Change
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Dec. 31,
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% of
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2011
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Total
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2010
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total
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Amount
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%
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2010
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Total
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Cash equivalents:
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Federal funds sold
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$ | 1,966 | 0 | % | $ | 3,859 | 1 | % | $ | (1,893 | ) | -49 | % | $ | 3,367 | 0 | % | ||||||||||||||||
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Interest-bearing deposits in other banks
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122,224 | 16 | % | 238,680 | 29 | % | (116,456 | ) | -49 | % | 131,952 | 17 | % | ||||||||||||||||||||
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Total cash equivalents
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124,190 | 16 | % | 242,539 | 30 | % | (118,349 | ) | -49 | % | 135,319 | 17 | % | ||||||||||||||||||||
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Investment securities:
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U.S. Treasury securities
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4,282 | 1 | % | 24,849 | 3 | % | (20,567 | ) | -83 | % | 14,392 | 2 | % | ||||||||||||||||||||
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U.S. Government Agency securities
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153,017 | 19 | % | 136,208 | 17 | % | 16,809 | 12 | % | 194,230 | 24 | % | |||||||||||||||||||||
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Corporate securities
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9,850 | 1 | % | 10,231 | 1 | % | (381 | ) | -4 | % | 9,392 | 1 | % | ||||||||||||||||||||
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Mortgage-backed securities
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405,740 | 53 | % | 330,849 | 41 | % | 74,891 | 23 | % | 363,618 | 47 | % | |||||||||||||||||||||
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Obligations of state and political sub.
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59,136 | 8 | % | 60,111 | 7 | % | (975 | ) | -2 | % | 52,645 | 7 | % | ||||||||||||||||||||
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Equity investments and other securities
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11,680 | 2 | % | 9,352 | 1 | % | 2,328 | 25 | % | 11,835 | 2 | % | |||||||||||||||||||||
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Total investment securities
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643,705 | 84 | % | 571,600 | 70 | % | 72,105 | 13 | % | 646,112 | 83 | % | |||||||||||||||||||||
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Total cash equivalents and investment securities
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$ | 767,895 | 100 | % | $ | 814,139 | 100 | % | $ | (46,244 | ) | -6 | % | $ | 781,431 | 100 | % | ||||||||||||||||
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Tax equivalent yield on cash equivalents and investment securities
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2.52 | % | 2.34 | % | 0.18 | 2.21 | % | ||||||||||||||||||||||||||
First quarter 2011 average total deposits of $1.93 billion declined 7% or $157 million from the same quarter in 2010. With excess balance sheet liquidity, in large part caused by the year-over-year decline in loan balances, we elected to reduce higher cost time deposit balances. Consequently, average time deposit balances declined $239 million or 47% year-over-year first quarter, and time deposits represented just 14% of the Company’s average total deposits in the most recent quarter compared to 24% during first quarter 2010.
The number of checking accounts increased by over 6,000 accounts or 7% over the past 12 months and first quarter average checking account balances grew $56 million or 7% year-over-year. The continuing shift in the mix of deposit balances from time deposits to non-time deposits together with our deposit pricing strategies, helped reduce the rate paid on total deposits to .38% in first quarter 2011, a decline of 45 basis points from .83% same quarter last year. The rate paid on total deposits remained virtually unchanged from the fourth quarter of 2010.
WEST COAST BANCORP REPORTS FIRST QUARTER 2011 RESULTS
April 25, 2011
Page 5 of 17
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Table 4
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QUARTERLY AVERAGE DEPOSITS BY CATEGORY
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(Dollars in thousands)
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Q1 |
% of
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Q1 |
% of
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Change
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Q4 |
% of
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| 2011 |
Total
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2010 |
Total
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Amount
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%
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2010 |
Total
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Demand deposits
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$ | 552,229 | 28% | $ | 519,492 | 25% | $ | 32,737 | 6% | $ | 566,998 | 29% | ||||||||||||||||||||
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Interest bearing demand
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344,090 | 18% | 321,070 | 15% | 23,020 | 7% | 349,071 | 18% | ||||||||||||||||||||||||
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Total checking deposits
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896,319 | 46% | 840,562 | 40% | 55,757 | 7% | 916,069 | 47% | ||||||||||||||||||||||||
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Savings
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106,309 | 6% | 98,075 | 5% | 8,234 | 8% | 105,114 | 5% | ||||||||||||||||||||||||
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Money market
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660,672 | 34% | 642,594 | 31% | 18,078 | 3% | 670,580 | 34% | ||||||||||||||||||||||||
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Total non-time deposits
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1,663,300 | 86% | 1,581,231 | 76% | 82,069 | 5% | 1,691,763 | 86% | ||||||||||||||||||||||||
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Time deposits
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269,038 | 14% | 507,706 | 24% | (238,668 | ) | -47% | 281,009 | 14% | |||||||||||||||||||||||
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Total deposits
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$ | 1,932,338 | 100% | $ | 2,088,937 | 100% | $ | (156,599 | ) | -7% | $ | 1,972,772 | 100% | |||||||||||||||||||
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Average rate on total deposits
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0.38 | % | 0.83 | % | (0.45 | ) | 0.40 | % | ||||||||||||||||||||||||
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Table 5
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NUMBER OF DEPOSIT ACCOUNTS
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Mar. 31,
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% of
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Mar. 31,
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% of
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Change
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Dec. 31,
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% of
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Change
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2011
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Total
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2010
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Total
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# |
%
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2010 |
Total
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# | %1 | |||||||||||||||||||||||||||||||
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Demand deposits
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52,805 | 33% | 49,230 | 32% | 3,575 | 7% | 51,324 | 33% | 1,481 | 12% | ||||||||||||||||||||||||||||||
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Interest bearing demand
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53,377 | 33% | 50,465 | 32% | 2,912 | 6% | 52,468 | 33% | 909 | 7% | ||||||||||||||||||||||||||||||
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Total checking accounts
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106,182 | 66% | 99,695 | 64% | 6,487 | 7% | 103,792 | 66% | 2,390 | 9% | ||||||||||||||||||||||||||||||
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Savings
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29,710 | 19% | 27,773 | 18% | 1,937 | 7% | 28,924 | 19% | 786 | 11% | ||||||||||||||||||||||||||||||
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Money market
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14,357 | 9% | 14,629 | 9% | (272 | ) | -2% | 14,388 | 9% | (31 | ) | -1% | ||||||||||||||||||||||||||||
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Total non-time deposits
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150,249 | 94% | 142,097 | 91% | 8,152 | 6% | 147,104 | 94% | 3,145 | 9% | ||||||||||||||||||||||||||||||
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Time deposits
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9,678 | 6% | 13,850 | 9% | (4,172 | ) | -30% | 10,014 | 6% | (336 | ) | -13% | ||||||||||||||||||||||||||||
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Total deposit accounts
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159,927 | 100% | 155,947 | 100% | 3,980 | 3% | 157,118 | 100% | 2,809 | 7% | ||||||||||||||||||||||||||||||
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1 Annualized.
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WEST COAST BANCORP REPORTS FIRST QUARTER 2011 RESULTS
April 25, 2011
Page 6 of 17
Operating Results Improved from First Quarter 2010
As shown in Table 6 below, first quarter 2011 net income of $5.1 million increased $6.0 million compared to a net loss of $.9 million in the same quarter of 2010, and an increase of $3.2 million from $1.9 million in fourth quarter of 2010. The improved year-over-year first quarter results were primarily due to a $5.6 million decline in provision for credit losses and a $1.7 million reduction in Other Real Estate Owned (“OREO”) valuation adjustments and losses resulting from OREO dispositions.
First quarter 2011 net interest income of $21.5 million grew $.9 million or 4% from the same quarter in 2010. This increase was attributable to a reduction in interest expense on deposits and borrowings which more than offset a decline in interest income on loans due to lower loan balances and a continued shift in average earning assets from higher yielding loan balances to investment securities.
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Table 6
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SUMMARY INCOME STATEMENT
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(Dollars in thousands)
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Q1 | Q1 |
Change
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Q4 |
Change
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| 2011 | 2010 | $ | % | 2010 | $ | % | |||||||||||||||||||||||
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Net interest income
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$ | 21,512 | $ | 20,633 | $ | 879 | 4 | % | $ | 21,889 | $ | (377 | ) | -2 | % | ||||||||||||||
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Provision for credit losses
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2,076 | 7,634 | (5,558 | ) | -73 | % | 1,693 | 383 | 23 | % | |||||||||||||||||||
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Noninterest income
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8,916 | 6,408 | 2,508 | 39 | % | 8,595 | 321 | 4 | % | ||||||||||||||||||||
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Noninterest expense
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22,553 | 21,095 | 1,458 | 7 | % | 23,330 | (777 | ) | -3 | % | |||||||||||||||||||
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Income (loss) before income taxes
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5,799 | (1,688 | ) | 7,487 | 444 | % | 5,461 | 338 | 6 | % | |||||||||||||||||||
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Provision (benefit) for income taxes 1
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694 | (800 | ) | 1,494 | 187 | % | 3,549 | (2,855 | ) | -80 | % | ||||||||||||||||||
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Net income (loss)
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$ | 5,105 | $ | (888 | ) | $ | 5,993 | 675 | % | $ | 1,912 | $ | 3,193 | 167 | % | ||||||||||||||
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1 For more information on income taxes see table 10.
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As shown in Table 7 below, the net interest margin of 3.81% in the most recent quarter expanded 43 basis points from 3.38% in first quarter 2010. A 39 basis points year-over-year first quarter expansion in the spread between yield and fees earned on loans and the rate paid on interest bearing deposits more than offset an unfavorable earning assets mix shift from loans to investment securities over the same period.
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Table 7
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NET INTEREST SPREAD AND MARGIN
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(Annualized, tax-equivalent basis)
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Q1 | Q1 | Q4 | ||||||||||||||||||
| 2011 | 2010 |
Change
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2010 |
Change
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Yield on average interest-earning assets
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4.41 | % | 4.44 | % | (0.03 | ) | 4.35 | % | 0.06 | ||||||||||||
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Rate on average interest-bearing liabilities
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0.86 | % | 1.41 | % | (0.55 | ) | 0.88 | % | (0.02 | ) | |||||||||||
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Net interest spread
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3.55 | % | 3.03 | % | 0.52 | 3.47 | % | 0.08 | |||||||||||||
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Net interest margin
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3.81 | % | 3.38 | % | 0.43 | 3.74 | % | 0.07 | |||||||||||||
WEST COAST BANCORP REPORTS FIRST QUARTER 2011 RESULTS
April 25, 2011
Page 7 of 17
As shown in Table 8 below, first quarter 2011 total noninterest income of $8.9 million increased $2.5 million from the same quarter last year. Excluding net loss on OREO of $.3 million in the most recent quarter and $2.1 million in the first quarter last year, the Company’s noninterest income increased $.8 million or 9%. This increase was a result of $.4 million growth in both payment system revenue and gains on sales of loans over the first quarter in 2010. The Company recorded gains on sales of investment securities of $.3 million in the quarter ended March 31, 2011, down $.2 million compared to first quarter 2010.
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Table 8
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NONINTEREST INCOME
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(Dollars in thousands)
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Q1 | Q1 |
Change
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Q4 |
Change
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| 2011 | 2010 | $ | % | 2010 | $ | % | ||||||||||||||||||||||
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Noninterest income
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Service charges on deposit accounts
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$ | 3,644 | $ | 3,596 | $ | 48 | 1 | % | $ | 3,736 | $ | (92 | ) | -2 | % | |||||||||||||
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Payment systems related revenue
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2,930 | 2,536 | 394 | 16 | % | 2,984 | (54 | ) | -2 | % | ||||||||||||||||||
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Trust and investment services revenues
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1,148 | 979 | 169 | 17 | % | 1,143 | 5 | 0 | % | |||||||||||||||||||
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Gains on sales of loans
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513 | 141 | 372 | 264 | % | 568 | (55 | ) | -10 | % | ||||||||||||||||||
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Gains on sales of securities
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267 | 457 | (190 | ) | -42 | % | 617 | (350 | ) | -57 | % | |||||||||||||||||
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Other
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748 | 757 | (9 | ) | -1 | % | 733 | 15 | 2 | % | ||||||||||||||||||
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Total
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9,250 | 8,466 | 784 | 9 | % | 9,781 | (531 | ) | -5 | % | ||||||||||||||||||
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OREO gains (losses) on sale
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323 | 301 | 22 | 7 | % | 336 | (13 | ) | -4 | % | ||||||||||||||||||
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OREO valuation adjustments
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(657 | ) | (2,359 | ) | 1,702 | 72 | % | (1,522 | ) | 865 | 57 | % | ||||||||||||||||
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Total net loss on OREO
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(334 | ) | (2,058 | ) | 1,724 | 84 | % | (1,186 | ) | 852 | 72 | % | ||||||||||||||||
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Total noninterest income
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$ | 8,916 | $ | 6,408 | $ | 2,508 | 39 | % | $ | 8,595 | $ | 321 | 4 | % | ||||||||||||||
WEST COAST BANCORP REPORTS FIRST QUARTER 2011 RESULTS
April 25, 2011
Page 8 of 17
As shown in Table 9 below, first quarter 2011 total noninterest expense of $22.6 million increased $1.5 million or 7% from the first quarter 2010. Salaries and employee benefits expense grew $.7 million in the first quarter 2011 when compared to the same quarter a year ago, primarily reflecting higher variable performance based compensation and expense related to the restricted stock granted to employees in 2010. The continued increase in payment system expense was related to higher customer transaction volumes and expenses associated with the discontinuance of our debit card reward program in the most recent quarter. Due to a reversal of an over-accrual relating to Federal Deposit Insurance Corporation (“FDIC”) insurance premium expense in the first quarter in 2010, which did not repeat itself in the most recent quarter, first quarter other noninterest expense increased $.5 million year-over-year.
|
Table 9
|
|||||||||||||||||||||||||||||
|
NONINTEREST EXPENSE
|
|||||||||||||||||||||||||||||
|
(Dollars in thousands)
|
Q1 | Q1 |
Change
|
Q4 |
Change
|
||||||||||||||||||||||||
| 2011 | 2010 | $ | % | 2010 | $ | % | |||||||||||||||||||||||
|
Noninterest expense
|
|||||||||||||||||||||||||||||
|
Salaries and employee benefits
|
$ | 11,877 | $ | 11,175 | $ | 702 | 6 | % | $ | 11,521 | $ | 356 | 3 | % | |||||||||||||||
|
Equipment
|
1,528 | 1,576 | (48 | ) | -3 | % | 1,540 | (12 | ) | -1 | % | ||||||||||||||||||
|
Occupancy
|
2,165 | 2,184 | (19 | ) | -1 | % | 2,245 | (80 | ) | -4 | % | ||||||||||||||||||
|
Payment systems related expense
|
1,247 | 1,004 | 243 | 24 | % | 1,297 | (50 | ) | -4 | % | |||||||||||||||||||
|
Professional fees
|
982 | 861 | 121 | 14 | % | 822 | 160 | 19 | % | ||||||||||||||||||||
|
Postage, printing and office supplies
|
810 | 804 | 6 | 1 | % | 816 | (6 | ) | -1 | % | |||||||||||||||||||
|
Marketing
|
651 | 687 | (36 | ) | -5 | % | 800 | (149 | ) | -19 | % | ||||||||||||||||||
|
Communications
|
378 | 382 | (4 | ) | -1 | % | 388 | (10 | ) | -3 | % | ||||||||||||||||||
|
Other noninterest expense
|
2,915 | 2,422 | 493 | 20 | % | 3,901 | (986 | ) | -25 | % | |||||||||||||||||||
|
Total noninterest expense
|
$ | 22,553 | 21,095 | $ | 1,458 | 7 | % | $ | 23,330 | $ | (777 | ) | -3 | % | |||||||||||||||
WEST COAST BANCORP REPORTS FIRST QUARTER 2011 RESULTS
April 25, 2011
Page 9 of 17
Income Taxes and Deferred Tax Asset Valuation Allowance
First quarter 2011 provision for income taxes was $.7 million compared to a benefit for income taxes in the same quarter of 2010 of $.8 million. The provision for income taxes (expense) in the most recent quarter was the result of a $1.8 million decline in gross unrealized gains on the investment securities portfolio during the quarter.
At March 31, 2011, the Company maintained a valuation allowance of $21.5 million against the deferred tax asset balance of $28.4 million for a net deferred tax asset of $6.9 million.
Any future reversals of the deferred tax asset valuation allowance, including a reduction for the effect of pretax income, would decrease the Company’s income tax expense and increase net income. While the Company maintains a deferred tax asset valuation allowance, changes in the gross unrealized gain on the Company’s investment portfolio will continue to affect the Company’s future deferred tax valuation allowance and provision for income taxes.
|
Table 10
|
||||||||||||||||
|
PROVISION (BENEFIT) FOR INCOME TAXES
|
||||||||||||||||
|
(Dollars in thousands)
|
Q1 | Q1 | Q4 | |||||||||||||
| 2011 | 2010 |
Change
|
2010 | |||||||||||||
|
Benefit for income taxes net of initial
|
||||||||||||||||
|
establishment of deferred tax asset valuation allowance
|
$ | - | $ | - | $ | - | $ | - | ||||||||
|
Provision (benefit) for income taxes from deferred
|
||||||||||||||||
|
tax asset valuation allowance:
|
||||||||||||||||
|
Establishment of deferred tax asset valuation allowance
|
- | - | - | - | ||||||||||||
|
Unrealized (gain) loss on securities
|
694 | (800 | ) | 1,494 | 2,077 | |||||||||||
|
Change in deferred tax assets-tax return adjustments
|
- | - | - | 1,472 | ||||||||||||
|
Total provision (benefit) for income taxes
|
$ | 694 | $ | (800 | ) | $ | 1,494 | $ | 3,549 | |||||||
Credit Quality
The Company recorded a first quarter 2011 provision for credit losses of $2.1 million, a decline from $7.6 million in the same quarter of 2010. During the first quarter of 2011 we continued to have significant reduction in net charge-offs compared to the corresponding quarter a year ago. First quarter 2011 net charge-offs of $2.7 million, or .72% of average loans on an annualized basis, declined $3.1 million from $5.8 million or 1.37% of average loans annualized in the first quarter of 2010. The largest decline occurred in the real estate mortgage category where net charge-offs fell $1.9 million. The Company’s future provisioning will continue to be heavily dependent on the local real estate market, level of market interest rates, and general economic conditions nationally and in areas where the Company does business.
WEST COAST BANCORP REPORTS FIRST QUARTER 2011 RESULTS
April 25, 2011
Page 10 of 17
|
Table 11
|
||||||||||||||||||||
|
ALLOWANCE FOR CREDIT LOSSES AND NET CHARGEOFFS
|
||||||||||||||||||||
|
(Dollars in thousands)
|
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
| 2011 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||
|
Allowance for credit losses, beginning of period
|
$ | 41,067 | $ | 42,618 | $ | 44,347 | $ | 41,299 | $ | 39,418 | ||||||||||
|
Total provision for credit losses
|
2,076 | 1,693 | 1,567 | 7,758 | 7,634 | |||||||||||||||
|
Loan net charge-offs:
|
||||||||||||||||||||
|
Commercial
|
263 | 1,109 | 524 | 1,684 | 839 | |||||||||||||||
|
Commercial real estate construction
|
65 | 76 | - | 248 | 487 | |||||||||||||||
|
Residential real estate construction
|
311 | 89 | 813 | 432 | 734 | |||||||||||||||
|
Total real estate construction
|
376 | 165 | 813 | 680 | 1,221 | |||||||||||||||
|
Mortgage
|
205 | 347 | 449 | 478 | 909 | |||||||||||||||
|
Nonstandard mortgage
|
315 | 76 | 5 | 641 | 1,497 | |||||||||||||||
|
Home equity
|
853 | 570 | 568 | 627 | 914 | |||||||||||||||
|
Total real estate mortgage
|
1,373 | 993 | 1,022 | 1,746 | 3,320 | |||||||||||||||
|
Commercial real estate
|
326 | 584 | 339 | 275 | 95 | |||||||||||||||
|
Installment and consumer
|
168 | 59 | 272 | 146 | 137 | |||||||||||||||
|
Overdraft
|
208 | 334 | 326 | 179 | 141 | |||||||||||||||
|
Total loan net charge-offs
|
2,714 | 3,244 | 3,296 | 4,710 | 5,753 | |||||||||||||||
|
Total allowance for credit losses
|
$ | 40,429 | $ | 41,067 | $ | 42,618 | $ | 44,347 | $ | 41,299 | ||||||||||
|
Components of allowance for credit losses:
|
||||||||||||||||||||
|
Allowance for loan losses
|
$ | 39,692 | $ | 40,217 | $ | 41,753 | $ | 43,329 | $ | 40,446 | ||||||||||
|
Reserve for unfunded commitments
|
737 | 850 | 865 | 1,018 | 853 | |||||||||||||||
|
Total allowance for credit losses
|
$ | 40,429 | $ | 41,067 | $ | 42,618 | $ | 44,347 | $ | 41,299 | ||||||||||
|
Net loan charge-offs to average loans (annualized)
|
0.72 | % | 0.83 | % | 0.82 | % | 1.15 | % | 1.37 | % | ||||||||||
|
Allowance for loan losses to total loans
|
2.58 | % | 2.62 | % | 2.65 | % | 2.70 | % | 2.43 | % | ||||||||||
|
Allowance for credit losses to total loans
|
2.63 | % | 2.67 | % | 2.71 | % | 2.77 | % | 2.48 | % | ||||||||||
|
Allowance for loan losses to nonperforming loans
|
74 | % | 66 | % | 61 | % | 55 | % | 47 | % | ||||||||||
|
Allowance for credit losses to nonperforming loans
|
75 | % | 67 | % | 62 | % | 56 | % | 48 | % | ||||||||||
The March 31, 2011, allowance for credit losses of $40.4 million or 2.63% of total loan balances was a decrease in the allowance for credit losses from $41.3 million a year ago but an increase from 2.48% as a percentage of total loan balances over the same period. The increase in the allowance for credit losses as a percentage of total loan balances over the past twelve months was mostly due to higher general valuation allowances in our reserve model and negative risk rating migration. During first quarter 2011, net charge-offs exceeded the provision for credit losses by $.6 million. This was due to a lower amount of provision for credit losses being required as a result of a reduction in unallocated reserves and the release of reserves as certain loans moved from being included in the general valuation allowance to being individually measured for impairment. These changes caused the March 31, 2011 allowance for credit losses at 2.63% of total loans to decline slightly from 2.67% at year end 2010. The Company’s estimate of appropriate reserve amounts will continue to be closely related to the loan portfolio’s credit quality performance trends and the region’s economic conditions.
Total nonperforming assets were $93.3 million or 3.8% of total assets as of March 31, 2011, compared to $130.7 million and 4.9%, respectively, a year ago. The decline in total nonperforming assets from $100.7 million at December 31, 2010, represents the eighth consecutive quarterly decline. The allowance for credit losses represented 75% of nonperforming loans at March 31, 2011, an increase from 48% a year ago.
WEST COAST BANCORP REPORTS FIRST QUARTER 2011 RESULTS
April 25, 2011
Page 11 of 17
|
Table 12
|
||||||||||||||||||||
|
NONPERFORMING ASSETS
|
||||||||||||||||||||
|
(Dollars in thousands)
|
Mar. 31,
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
March 31,
|
|||||||||||||||
|
2011
|
2010
|
2010
|
2010
|
2010
|
||||||||||||||||
|
Loans on nonaccrual status:
|
||||||||||||||||||||
|
Commercial
|
$ | 12,803 | $ | 13,377 | $ | 13,319 | $ | 15,317 | $ | 24,856 | ||||||||||
|
Real estate construction:
|
||||||||||||||||||||
|
Commercial real estate construction
|
4,032 | 4,077 | 3,391 | 3,391 | 3,939 | |||||||||||||||
|
Residential real estate construction
|
4,093 | 6,615 | 13,316 | 19,465 | 19,776 | |||||||||||||||
|
Total real estate construction
|
8,125 | 10,692 | 16,707 | 22,856 | 23,715 | |||||||||||||||
|
Real estate mortgage:
|
||||||||||||||||||||
|
Mortgage
|
5,714 | 9,318 | 13,040 | 14,535 | 9,829 | |||||||||||||||
|
Nonstandard mortgage
|
6,451 | 5,223 | 5,150 | 6,121 | 9,327 | |||||||||||||||
|
Home equity
|
1,426 | 950 | 1,538 | 2,198 | 2,248 | |||||||||||||||
|
Total real estate mortgage
|
13,591 | 15,491 | 19,728 | 22,854 | 21,404 | |||||||||||||||
|
Commercial real estate
|
19,424 | 21,671 | 18,792 | 17,542 | 15,322 | |||||||||||||||
|
Installment and consumer
|
- | - | - | 74 | 172 | |||||||||||||||
|
Total nonaccrual loans
|
53,943 | 61,231 | 68,546 | 78,643 | 85,469 | |||||||||||||||
|
90 days past due not on nonaccrual
|
- | - | - | - | - | |||||||||||||||
|
Total nonperforming loans
|
53,943 | 61,231 | 68,546 | 78,643 | 85,469 | |||||||||||||||
|
Other real estate owned
|
39,329 | 39,459 | 35,814 | 37,578 | 45,238 | |||||||||||||||
|
Total nonperforming assets
|
$ | 93,272 | $ | 100,690 | $ | 104,360 | $ | 116,221 | $ | 130,707 | ||||||||||
|
Nonperforming loans to total loans
|
3.51 | % | 3.99 | % | 4.35 | % | 4.91 | % | 5.13 | % | ||||||||||
|
Nonperforming assets to total assets
|
3.80 | % | 4.09 | % | 4.20 | % | 4.64 | % | 4.91 | % | ||||||||||
Over the past year total nonaccrual loans declined $31.5 million or 37% to $53.9 million at March 31, 2011. This reduction reflected nonaccrual loans migrating through steps leading to resolutions, including nonaccrual loan payoffs, problem loans managed to lower outstanding balances, and advancing nonaccrual loans to OREO. Non-accrual loans declined in all loan categories except commercial real estate. At March 31, 2011, the total nonaccrual loan portfolio had been written down 21% from the original principal balance compared to 29% at the end of 2010 as the severity of impairments on nonaccrual loans eased.
WEST COAST BANCORP REPORTS FIRST QUARTER 2011 RESULTS
April 25, 2011
Page 12 of 17
As indicated in Table 13 below, the Company’s OREO property disposition activities continue. During the first quarter 2011, the Company disposed of 28 OREO properties with a book value of $5.9 million while acquiring 25 properties with a book value of $6.5 million. The Company continued to take ownership of additional real property related to loans which previously were on nonaccrual status, and this offset the Company’s OREO sales activities in the most recent quarter. At March 31, 2011, the OREO portfolio consisted of 399 properties with a book value of $39.3 million. The year-end OREO balance reflected write-downs totaling 48% from original loan principal compared to 50% twelve months earlier. The largest balances in the OREO portfolio at March 31, 2011, were attributable to homes followed by residential site development projects and income producing properties, all of which are located within our footprint.
|
Table 13
|
|||||||||||||||||||||||||||||||||||||||||
|
OTHER REAL ESTATE OWNED ACTIVITY
|
|||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) |
Q1 2011
|
Q4 2010
|
Q3 2010
|
Q2 2010
|
Q1 2010
|
||||||||||||||||||||||||||||||||||||
|
Amount
|
# |
Amount
|
# |
Amount
|
# |
Amount
|
# |
Amount
|
# | ||||||||||||||||||||||||||||||||
|
Beginning balance
|
$ | 39,459 | 402 | $ | 35,814 | 448 | $ | 37,578 | 446 | $ | 45,238 | 596 | $ | 53,594 | 672 | ||||||||||||||||||||||||||
|
Additions to OREO
|
6,479 | 25 | 11,053 | 35 | 5,119 | 53 | 7,209 | 20 | 5,003 | 15 | |||||||||||||||||||||||||||||||
|
Dispositions of OREO
|
(5,952 | ) | (28 | ) | (5,886 | ) | (81 | ) | (5,372 | ) | (51 | ) | (13,612 | ) | (170 | ) | (11,000 | ) | (91 | ) | |||||||||||||||||||||
|
OREO valuation adj.
|
(657 | ) | - | (1,522 | ) | - | (1,511 | ) | - | (1,257 | ) | - | (2,359 | ) | - | ||||||||||||||||||||||||||
|
Ending balance
|
$ | 39,329 | 399 | $ | 39,459 | 402 | $ | 35,814 | 448 | $ | 37,578 | 446 | $ | 45,238 | 596 | ||||||||||||||||||||||||||
|
Table 14
|
|||||||||||||||||||||||||
|
OTHER REAL ESTATE OWNED BY PROPERTY TYPE
|
|||||||||||||||||||||||||
|
(Dollars in thousands)
|
Mar. 31
|
# of
|
Dec. 31,
|
# of
|
Sept. 30,
|
# of
|
|||||||||||||||||||
|
2011
|
properties
|
2010
|
properties
|
2010
|
properties
|
||||||||||||||||||||
|
Homes
|
$ | 15,093 | 64 | $ | 17,297 | 69 | $ | 15,341 | 66 | ||||||||||||||||
|
Residential site developments
|
6,973 | 236 | 7,340 | 245 | 8,096 | 281 | |||||||||||||||||||
|
Lots
|
3,758 | 56 | 3,700 | 56 | 4,062 | 61 | |||||||||||||||||||
|
Land
|
4,427 | 11 | 5,135 | 12 | 3,525 | 10 | |||||||||||||||||||
|
Income producing properties
|
6,613 | 9 | 5,162 | 7 | 3,212 | 7 | |||||||||||||||||||
|
Condominiums
|
1,792 | 12 | 128 | 2 | 881 | 12 | |||||||||||||||||||
|
Multifamily
|
673 | 11 | 697 | 11 | 697 | 11 | |||||||||||||||||||
|
Total
|
$ | 39,329 | 399 | $ | 39,459 | 402 | $ | 35,814 | 448 | ||||||||||||||||
Other:
The Company will hold a Webcast conference call Monday, April 25, 2011, at 11:00 a.m. Pacific Time, during which the Company will discuss first quarter 2011 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 2011 Earnings Conference Call” tab. The conference call may also be accessed by dialing (877) 247-4281 Conference ID#: 56331847 a few minutes prior to 11:00 a.m. Pacific Time. 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 REPORTS FIRST QUARTER 2011 RESULTS
April 25, 2011
Page 13 of 17
West Coast Bancorp 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. These statements can often be identified by words such as "expects," "believes," “anticipates,” or "will," or other words of similar meaning. Actual results could be quite different from those expressed or implied by the forward-looking statements, which give our current 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.
A number of factors could cause results to differ significantly from our expectations, including, among others, the effects of (i) market conditions in our service areas on our efforts to continue to reduce our levels of nonperforming assets and increase loan originations as well as (ii) all risk factors identified in our Annual Report on Form 10-K for the year ended December 31, 2010, including under the headings "Forward Looking Statement Disclosure" and in the section "Risk Factors.”
WEST COAST BANCORP REPORTS FIRST QUARTER 2011 RESULTS
April 25, 2011
Page 14 of 17
|
Table 15
|
||||||||||||||||||||||||||||
|
INCOME STATEMENT
|
||||||||||||||||||||||||||||
|
(Dollars in thousands)
|
Q1 | Q1 |
Change
|
Q4 |
Full Year
|
Full Year
|
||||||||||||||||||||||
| 2011 | 2010 | $ | % | 2010 | 2010 | 2009 | ||||||||||||||||||||||
|
Net interest income
|
||||||||||||||||||||||||||||
|
Interest and fees on loans
|
$ | 20,299 | $ | 22,843 | $ | (2,544 | ) | -11 | % | $ | 21,350 | $ | 88,409 | $ | 100,356 | |||||||||||||
|
Interest on investment securities
|
4,548 | 4,207 | 341 | 8 | % | 4,064 | 16,668 | 11,422 | ||||||||||||||||||||
|
Other interest income
|
71 | 148 | (77 | ) | -52 | % | 95 | 499 | 372 | |||||||||||||||||||
|
Total interest income
|
24,918 | 27,198 | (2,280 | ) | -8 | % | 25,509 | 105,576 | 112,150 | |||||||||||||||||||
|
Interest expense on deposit accounts
|
1,809 | 4,293 | (2,484 | ) | -58 | % | 2,009 | 12,130 | 24,442 | |||||||||||||||||||
|
Interest on borrowings and subordinated debentures
|
1,597 | 2,272 | (675 | ) | -30 | % | 1,611 | 10,139 | 8,981 | |||||||||||||||||||
|
Total interest expense
|
3,406 | 6,565 | (3,159 | ) | -48 | % | 3,620 | 22,269 | 33,423 | |||||||||||||||||||
|
Net interest income
|
21,512 | 20,633 | 879 | 4 | % | 21,889 | 83,307 | 78,727 | ||||||||||||||||||||
|
Provision for credit losses
|
2,076 | 7,634 | (5,558 | ) | -73 | % | 1,693 | 18,652 | 90,057 | |||||||||||||||||||
|
Noninterest income
|
||||||||||||||||||||||||||||
|
Service charges on deposit accounts
|
3,644 | 3,596 | 48 | 1 | % | 3,736 | 15,690 | 15,765 | ||||||||||||||||||||
|
Payment systems related revenue
|
2,930 | 2,536 | 394 | 16 | % | 2,984 | 11,393 | 9,399 | ||||||||||||||||||||
|
Trust and investment services revenues
|
1,148 | 979 | 169 | 17 | % | 1,143 | 4,267 | 4,101 | ||||||||||||||||||||
|
Gains on sales of loans
|
513 | 141 | 372 | 264 | % | 568 | 1,197 | 1,738 | ||||||||||||||||||||
|
Net OREO valuation adjustments
|
||||||||||||||||||||||||||||
|
and gains (losses) on sales
|
(334 | ) | (2,058 | ) | 1,724 | 84 | % | (1,186 | ) | (4,415 | ) | (26,953 | ) | |||||||||||||||
|
Other
|
748 | 757 | (9 | ) | -1 | % | 733 | 3,003 | 4,438 | |||||||||||||||||||
|
Other-than-temporary impairment losses
|
- | - | - | 0 | % | - | - | (192 | ) | |||||||||||||||||||
|
Gain on sales of securities
|
267 | 457 | (190 | ) | -42 | % | 617 | 1,562 | 833 | |||||||||||||||||||
|
Total noninterest income
|
8,916 | 6,408 | 2,508 | 39 | % | 8,595 | 32,697 | 9,129 | ||||||||||||||||||||
|
Noninterest expense
|
||||||||||||||||||||||||||||
|
Salaries and employee benefits
|
11,877 | 11,175 | 702 | 6 | % | 11,521 | 45,854 | 44,608 | ||||||||||||||||||||
|
Equipment
|
1,528 | 1,576 | (48 | ) | -3 | % | 1,540 | 6,247 | 8,120 | |||||||||||||||||||
|
Occupancy
|
2,165 | 2,184 | (19 | ) | -1 | % | 2,245 | 8,894 | 9,585 | |||||||||||||||||||
|
Payment systems related expense
|
1,247 | 1,004 | 243 | 24 | % | 1,297 | 4,727 | 4,036 | ||||||||||||||||||||
|
Professional fees
|
982 | 861 | 121 | 14 | % | 822 | 3,991 | 4,342 | ||||||||||||||||||||
|
Postage, printing and office supplies
|
810 | 804 | 6 | 1 | % | 816 | 3,148 | 3,201 | ||||||||||||||||||||
|
Marketing
|
651 | 687 | (36 | ) | -5 | % | 800 | 3,086 | 2,990 | |||||||||||||||||||
|
Communications
|
378 | 382 | (4 | ) | -1 | % | 388 | 1,525 | 1,574 | |||||||||||||||||||
|
Goodwill impairment
|
- | - | - | 0 | % | - | - | 13,059 | ||||||||||||||||||||
|
Other noninterest expense
|
2,915 | 2,422 | 493 | 20 | % | 3,901 | 12,865 | 16,773 | ||||||||||||||||||||
|
Total noninterest expense
|
22,553 | 21,095 | 1,458 | 7 | % | 23,330 | 90,337 | 108,288 | ||||||||||||||||||||
|
Net income (loss) before income taxes
|
5,799 | (1,688 | ) | 7,487 | 444 | % | 5,461 | 7,015 | (110,489 | ) | ||||||||||||||||||
|
Provision (benefit) for income taxes
|
694 | (800 | ) | 1,494 | 187 | % | 3,549 | 3,790 | (19,276 | ) | ||||||||||||||||||
|
Net income (loss)
|
$ | 5,105 | $ | (888 | ) | $ | 5,993 | 675 | % | $ | 1,912 | $ | 3,225 | $ | (91,213 | ) | ||||||||||||
|
Net income (loss) per share:
|
||||||||||||||||||||||||||||
|
Basic
|
$ | 0.05 | $ | (0.01 | ) | $ | 0.06 | $ | 0.02 | $ | 0.03 | $ | (5.83 | ) | ||||||||||||||
|
Diluted
|
$ | 0.05 | $ | (0.01 | ) | $ | 0.06 | $ | 0.02 | $ | 0.03 | $ | (5.83 | ) | ||||||||||||||
|
Weighted average common shares
|
94,800 | 67,125 | 27,675 | 94,792 | 87,300 | 15,510 | ||||||||||||||||||||||
|
Weighted average diluted shares
|
99,694 | 67,125 | 32,569 | 97,863 | 90,295 | 15,510 | ||||||||||||||||||||||
|
Tax equivalent net interest income
|
$ | 21,770 | $ | 20,954 | $ | 816 | $ | 22,156 | $ | 84,478 | $ | 80,222 | ||||||||||||||||
WEST COAST BANCORP REPORTS FIRST QUARTER 2011 RESULTS
April 25, 2011
Page 15 of 17
|
Table 16
|
||||||||||||||||||||
|
BALANCE SHEETS
|
||||||||||||||||||||
|
(Dollars in thousands)
|
Mar. 31,
|
Mar. 31,
|
Change
|
Dec. 31,
|
||||||||||||||||
|
2011
|
2010
|
$ | % | 2010 | ||||||||||||||||
|
Assets:
|
||||||||||||||||||||
|
Cash and due from banks
|
$ | 50,865 | $ | 47,002 | $ | 3,863 | 8 | % | $ | 42,672 | ||||||||||
|
Federal funds sold
|
1,966 | 3,859 | (1,893 | ) | -49 | % | 3,367 | |||||||||||||
|
Interest-bearing deposits in other banks
|
122,224 | 238,680 | (116,456 | ) | -49 | % | 131,952 | |||||||||||||
|
Total cash and cash equivalents
|
175,055 | 289,541 | (114,486 | ) | -40 | % | 177,991 | |||||||||||||
|
Investment securities
|
643,705 | 571,600 | 72,105 | 13 | % | 646,112 | ||||||||||||||
|
Total loans
|
1,535,700 | 1,666,933 | (131,233 | ) | -8 | % | 1,536,270 | |||||||||||||
|
Allowance for loan losses
|
(39,692 | ) | (40,446 | ) | 754 | 2 | % | (40,217 | ) | |||||||||||
|
Loans, net
|
1,496,008 | 1,626,487 | (130,479 | ) | -8 | % | 1,496,053 | |||||||||||||
|
Total interest earning assets
|
2,305,780 | 2,482,437 | (176,657 | ) | -7 | % | 2,321,611 | |||||||||||||
|
OREO, net
|
39,329 | 45,238 | (5,909 | ) | -13 | % | 39,459 | |||||||||||||
|
Goodwill and other intangibles
|
298 | 557 | (259 | ) | -46 | % | 358 | |||||||||||||
|
Other assets
|
97,462 | 128,286 | (30,824 | ) | -24 | % | 101,086 | |||||||||||||
|
Total assets
|
$ | 2,451,857 | $ | 2,661,709 | $ | (209,852 | ) | -8 | % | $ | 2,461,059 | |||||||||
|
Liabilities and Stockholders' Equity:
|
||||||||||||||||||||
|
Demand
|
$ | 561,995 | $ | 517,628 | $ | 44,367 | 9 | % | $ | 555,766 | ||||||||||
|
Savings and interest-bearing demand
|
461,542 | 415,212 | 46,330 | 11 | % | 445,878 | ||||||||||||||
|
Money market
|
661,327 | 636,786 | 24,541 | 4 | % | 663,467 | ||||||||||||||
|
Time deposits
|
243,567 | 495,797 | (252,230 | ) | -51 | % | 275,411 | |||||||||||||
|
Total deposits
|
1,928,431 | 2,065,423 | (136,992 | ) | -7 | % | 1,940,522 | |||||||||||||
|
Borrowings and subordinated debentures
|
219,599 | 314,299 | (94,700 | ) | -30 | % | 219,599 | |||||||||||||
|
Reserve for unfunded commitments
|
737 | 853 | (116 | ) | -14 | % | 850 | |||||||||||||
|
Other liabilities
|
26,102 | 20,637 | 5,465 | 26 | % | 27,528 | ||||||||||||||
|
Total liabilities
|
2,174,869 | 2,401,212 | (226,343 | ) | -9 | % | 2,188,499 | |||||||||||||
|
Stockholders' equity
|
276,988 | 260,497 | 16,491 | 6 | % | 272,560 | ||||||||||||||
|
Total liabilities and stockholders' equity
|
$ | 2,451,857 | $ | 2,661,709 | $ | (209,852 | ) | -8 | % | $ | 2,461,059 | |||||||||
WEST COAST BANCORP REPORTS FIRST QUARTER 2011 RESULTS
April 25, 2011
Page 16 of 17
|
Table 17
|
||||||||||||||||||||
|
AVERAGE BALANCE SHEETS
|
||||||||||||||||||||
|
(Dollars in thousands)
|
Q1 | Q1 | Q4 |
Full Year
|
Full Year
|
|||||||||||||||
| 2011 | 2010 | 2010 | 2010 | 2009 | ||||||||||||||||
|
Cash and due from banks
|
$ | 48,698 | $ | 46,480 | $ | 51,044 | $ | 48,976 | $ | 47,433 | ||||||||||
|
Federal funds sold
|
3,947 | 12,912 | 3,996 | 6,194 | 6,673 | |||||||||||||||
|
Interest-bearing deposits in other banks
|
106,794 | 227,278 | 142,398 | 188,925 | 136,944 | |||||||||||||||
|
Total cash and cash equivalents
|
159,439 | 286,670 | 197,438 | 244,095 | 191,050 | |||||||||||||||
|
Investment securities
|
673,449 | 557,378 | 646,776 | 606,099 | 337,541 | |||||||||||||||
|
Total loans
|
1,529,290 | 1,702,763 | 1,556,975 | 1,622,445 | 1,914,975 | |||||||||||||||
|
Allowance for loan losses
|
(40,296 | ) | (39,957 | ) | (42,208 | ) | (42,003 | ) | (37,363 | ) | ||||||||||
|
Loans, net
|
1,488,994 | 1,662,806 | 1,514,767 | 1,580,442 | 1,877,612 | |||||||||||||||
|
Total interest earning assets
|
2,314,612 | 2,513,313 | 2,351,927 | 2,425,073 | 2,398,675 | |||||||||||||||
|
Other assets
|
128,986 | 170,521 | 126,179 | 145,235 | 209,073 | |||||||||||||||
|
Total assets
|
$ | 2,450,868 | $ | 2,677,375 | $ | 2,485,160 | $ | 2,575,871 | $ | 2,615,276 | ||||||||||
|
Demand
|
$ | 552,229 | $ | 519,492 | $ | 566,998 | $ | 540,280 | $ | 499,283 | ||||||||||
|
Savings and interest-bearing demand
|
450,399 | 419,145 | 454,185 | 438,665 | 387,905 | |||||||||||||||
|
Money market
|
660,672 | 642,594 | 670,580 | 659,542 | 617,881 | |||||||||||||||
|
Time deposits
|
269,038 | 507,706 | 281,009 | 388,500 | 587,299 | |||||||||||||||
|
Total deposits
|
1,932,338 | 2,088,937 | 1,972,772 | 2,026,987 | 2,092,368 | |||||||||||||||
|
Borrowings and subordinated debentures
|
219,599 | 314,299 | 217,256 | 264,589 | 304,085 | |||||||||||||||
|
Total interest bearing liabilities
|
1,599,708 | 1,883,744 | 1,623,030 | 1,751,296 | 1,897,170 | |||||||||||||||
|
Other liabilities
|
24,983 | 19,762 | 18,858 | 18,486 | 19,044 | |||||||||||||||
|
Stockholders' equity
|
273,948 | 254,377 | 276,274 | 265,809 | 199,779 | |||||||||||||||
|
Total liabilities and stockholders' equity
|
$ | 2,450,868 | $ | 2,677,375 | $ | 2,485,160 | $ | 2,575,871 | $ | 2,615,276 | ||||||||||
WEST COAST BANCORP REPORTS FIRST QUARTER 2011 RESULTS
April 25, 2011
Page 17 of 17
The following table presents information about the Company’s total performing delinquent loans.
|
Table 18
|
|||||||||||||
|
DELINQUENT LOANS 30-89 DAYS PAST DUE AS A % OF LOAN CATEGORY
|
|||||||||||||
|
(Dollars in thousands)
|
Mar. 31,
|
Mar. 31,
|
Dec. 31,
|
||||||||||
|
2011
|
2010
|
2010
|
|||||||||||
|
Commercial loans
|
0.26 | % | 0.10 | % | 0.02 | % | |||||||
|
Real estate construction loans
|
0.00 | % | 0.72 | % | 0.00 | % | |||||||
|
Real estate mortgage loans
|
0.28 | % | 0.53 | % | 0.59 | % | |||||||
|
Commercial real estate loans
|
0.36 | % | 0.30 | % | 0.07 | % | |||||||
|
Installment and other consumer loans
|
1.06 | % | 0.69 | % | 0.34 | % | |||||||
|
Total delinquent loans 30-89 days past due
|
$ | 4,901 | $ | 5,566 | $ | 2,721 | |||||||
|
Delinquent loans to total loans
|
0.32 | % | 0.33 | % | 0.18 | % | |||||||
The following table presents information regarding common shares outstanding at March 31, 2011 on an actual and diluted basis.
|
Table 19
|
||||
|
COMMON SHARE AND DILUTIVE SHARE INFORMATION
|
||||
|
(Shares in thousands)
|
||||
|
Number
|
||||
|
of shares
|
||||
|
Common shares outstanding at March 31, 2011
|
94,800 | |||
|
Common shares issuable on conversion of series B preferred stock 1
|
6,066 | |||
|
Dilutive impact of warrants 2 3
|
4,780 | |||
|
Dilutive impact of stock options and restricted stock 3
|
582 | |||
|
Total potential dilutive shares 4
|
106,228 | |||
|
1 121,328 shares of series B preferred stock outstanding at December 31, 2010.
2 Warrants to purchase 240,000 shares at a price of $100 per series B preferred share outstanding at March 31, 2011.
3 The estimated dilutive impact of warrants, options, and restricted stock is shown. These figures are calculated under the treasury method utilizing an average stock price of $3.32 for the period and do not reflect the number of common shares that would be issued if securities were exercised in full.
4 Potential dilutive shares is a non-GAAP figure and not the weighted average diluted shares calculated in accordance with GAAP.
|
||||