West Coast Bancorp to Record Other-Than-Temporary Impairment on Freddie Mac Preferred Stock in First Quarter of 2005
05 April 2005 - 12:47AM
PR Newswire (US)
West Coast Bancorp to Record Other-Than-Temporary Impairment on
Freddie Mac Preferred Stock in First Quarter of 2005 LAKE OSWEGO,
Ore., April 4 /PRNewswire-FirstCall/ -- West Coast Bancorp
(NASDAQ:WCBO) today announced that it intends to record an
other-than- temporary impairment charge of approximately $803,000
after-tax, or $.05 per fully diluted share, in the first quarter of
2005 related to its $5 million investment in Freddie Mac preferred
stock it purchased in November 1999. The impairment charge is a
non-cash, non-operating charge. West Coast Bancorp holds this
investment grade security in its available-for-sale investment
portfolio. If the security had not been recorded as
other-than-temporary impaired, the $803,000 after-tax investment
loss would have been recorded as a reduction in other comprehensive
income in our balance sheet on March 31, 2005. Therefore, the
reclassification of the unrealized investment loss to an
other-than-temporary impairment charge does not affect
shareholders' equity. President and CEO Robert D. Sznewajs said,
"While this charge has a negative effect on reported Generally
Accepted Accounting Principles (GAAP) earnings, we remain
comfortable with analysts' 2005 earnings expectations in the range
of $1.50 to $1.60 per diluted share referred to in our January
earnings call, excluding the current charge of $.05 per diluted
share. After factoring in the charge, GAAP earnings per diluted
share expectations range is $1.45-$1.55." The company based the
decision to record an other-than-temporary impairment charge on the
facts and circumstances surrounding the security at this time,
including the duration and amount of the unrealized loss in the
security, as well as the prospect for a change in market value
within a reasonable period of time. The charge does not reflect
management's current expectation for the long-term value of the
security. Forward Looking Statements: Statements contained in this
news release which are not historical facts are forward-looking
statements as the term is defined in the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are
subject to risks and uncertainties which could cause actual results
to differ materially from those currently anticipated due to a
number of factors, which include, but are not limited to, factors
discussed in reports filed by the Company with the Securities and
Exchange Commission from time to time, including our most recent
Form 10-K. Bancorp undertakes no obligation to publicly review or
update forward-looking statements to reflect events or
circumstances that arise after the date of this release. West Coast
Bancorp, one of Oregon Business Magazine's 100 Best Companies to
Work For in 2004 and 2005, is a Northwest bank holding company with
$1.8 billion in assets, operating 52 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 web site at http://www.wcb.com/.
DATASOURCE: West Coast Bancorp CONTACT: Robert D. Sznewajs,
President & CEO, +1-503-598-3243, or Anders Giltvedt, Chief
Financial Officer, +1-503-598-3250, both of West Coast Bancorp Web
site: http://www.wcb.com/
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