- Year-to-date diluted earnings per share of $1.51 increased 9%
over 2006. LAKE OSWEGO, Ore., Oct. 16 /PRNewswire-FirstCall/ --
West Coast Bancorp (NASDAQ:WCBO) today announced quarterly earnings
of $8.3 million or $.52 per diluted share for the third quarter of
2007, compared to third quarter 2006 earnings of $7.9 million or
$.49 per diluted share. Year-to-date earnings per diluted share
growth and return on average equity, tangible, were 9% and 17%,
respectively. Three months ended September 30, (Dollars in
millions, except per share data) 2007 2006 % Change Diluted
Earnings Per Share $0.52 $0.49 6% Return On Average Equity 15.3%
16.6% Return On Average Equity, Tangible* 16.6% 18.2% Total Period
End Loans $2,183 $1,869 17% Total Period End Deposits $2,111 $2,007
5% * Return on Average Equity, Tangible is a non-GAAP measure that
we define and calculate as net income excluding intangible asset
amortization, net of tax, divided by average equity less average
intangible assets. See financial tables for a reconciliation to the
GAAP measure. "The continuation of strong growth in net interest
and non-interest income in the third quarter of 2007, as compared
to the same period a year ago, contributed to the 6% quarter over
quarter growth in diluted quarterly earnings per share," said
Robert D. Sznewajs, President and Chief Executive Officer.
"Year-to-date 2007, as compared to the same period in 2006, the
diluted earnings per share increased 9%. The quarterly and
year-to-date performance results in 2007 versus the same periods in
2006 compare favorably to recent industry trends in our region."
Financial Results: In the third quarter of 2007, total net interest
income increased $3.5 million or 13% compared to the same quarter
last year primarily due to 17% loan growth from September 30, 2006.
The third quarter net interest spread and net interest margin
remained relatively unchanged from the same quarter in 2006, as the
Company was able to match higher rates on interest bearing deposits
with higher yields on loans. The third quarter 2007 net interest
margin of 4.94% was slightly better than anticipated due to higher
than expected construction loan balances and loan fees. Total
non-interest income rose $.7 million, or 9%, year-over-year third
quarter. Excluding the $.4 million merchant services contract
credit received during the third quarter of 2006, total
non-interest income grew 15%. See financial tables for
reconciliation. Beyond slightly lower gains on sales of loans,
which were impacted by lower residential mortgage market activity,
the company generated broad-based fee income growth. Deposit
service charges revenues grew 11% in the third quarter primarily
reflecting the 11% year-over-year growth in number of transaction
deposit accounts. This account growth also boosted payment
system-related revenues which, adjusted for the above mentioned
merchant services credit, grew 24% from the third quarter of 2006.
Due to a strong equity market and investment product sales, trust
and investment services revenue grew 26% from the same quarter of
2006. Compared to the third quarter 2006, total non-interest
expense increased $1.5 million or 7% in the third quarter of 2007.
Approximately one-third of this growth can be attributed to
additional team members and branch locations. The 27% increase in
year over year third quarter payment system expense was largely due
to significantly higher transaction volumes across our payment
systems product offerings. Marketing expense grew 18% from third
quarter 2006 due to an aggressive direct mail schedule in the most
recent quarter, which we expect to extend the growth of new
transaction deposit accounts in future periods. The $2.7 million
2007 third quarter provision for loan losses increased
significantly from $.6 million in the same quarter in 2006. The
higher provision was due to a moderately negative trend in credit
migration of the loan portfolio in the most recent quarter compared
to the improving trend that occurred during the third quarter in
2006, as well as net charge-offs increasing to $.7 million from $.1
million in the same period in 2006. The ratio of net charge-offs to
average loans (annualized) was 0.13% in the most recent quarter
compared to 0.02% in the third quarter of 2006. Non-performing
assets increased to $9.1 million or .34% of total assets on
September 30, 2007, from $2.7 million or .11% on September 30,
2006, mainly due to higher non-performing 2-step residential
construction loans. As of September 30, 2007, we reclassified a
portion of the allowance for loan losses and recorded a reserve for
unfunded loan commitments. The amount reclassified into other
liabilities was $1.0 million or .05% of total loans. For purposes
of comparison to prior periods, the combined allowance for loan
losses and reserve for unfunded commitments, defined as the total
allowance for credit losses, was 1.31% as a percentage of total
loans at September 30, 2007. See financial tables for details. This
reclassification had no impact on our provision for loan losses
expense. Any future expense related to a provision for unfunded
commitments will be recorded in other non-interest expense.
Reflecting a slowing trend in risk-weighted asset growth, the
Company repurchased 175,000 shares during the third quarter of
2007. As of September 30, 2007, approximately 1.1 million shares
remained available for repurchase under the Company's recently
announced share repurchase program. The Company also increased its
quarterly cash dividend payable on October 31, 2007, 12.5% to 13.5
cents. Other: The Company will hold a Webcast conference call
Wednesday, October 17, at 8:30 a.m. Pacific Time, during which the
Company will discuss results for third quarter 2007, review its
strategic progress, and provide management's current expectations
for the remainder of 2007. To access the conference call via a live
Webcast, go to http://www.wcb.com/ and click on Investor Relations
and the "3rd Quarter 2007 Earnings Conference Call" tab. The
conference call may also be accessed by dialing 877.604.2074, ID #
15774636 a few minutes prior to 8:30 a.m. PDT. The call will be
available for replay by accessing the Company's website at
http://www.wcb.com/ and following the same instructions. West Coast
Bancorp, one of Oregon Business Magazine's 100 Best Companies to
Work For, is a Northwest bank holding company with $2.6 billion in
assets, and 62 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 http://www.wcb.com/. Forward Looking
Statements: Statements in this release regarding future events,
performance or results are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995
("PSLRA") and are made pursuant to the safe harbors of the PSLRA.
Actual results could be quite different from those expressed or
implied by the forward-looking statements. Do not unduly rely on
forward-looking statements. They give our expectations about the
future and are not guarantees. Forward-looking statements speak
only as of the date they are made, and we do not undertake any
obligation to update them to reflect changes that occur after that
date. A number of factors could cause results to differ
significantly from our expectations, including, among others,
factors identified in our Annual Report on Form 10-K for the year
ended December 31, 2006, including under the heading "Forward
Looking Statement Disclosure" and in Item 1A. Risk Factors. West
Coast Bancorp Consolidated Income Statements (Unaudited) Three
months ended Nine months ended (Dollars and shares in thousands)
September 30, June 30, September 30, 2007 2006 2007 2007 2006 Net
interest income Interest and fees on loans $44,517 $36,748 $42,637
$127,065 $98,056 Interest on investment securities 3,129 3,485
3,397 10,268 9,921 Other interest income 96 316 114 329 519 Total
interest income 47,742 40,549 46,148 137,662 108,496 Interest
expense on deposit accounts 14,504 11,860 13,524 41,015 27,441
Interest on borrowings and subordinated debentures 3,401 2,394
3,900 10,201 7,023 Total interest expense 17,905 14,254 17,424
51,216 34,464 Net interest income 29,837 26,295 28,724 86,446
74,032 Provision for loan losses 2,700 625 3,500 9,000 1,533
Non-interest income Service charges on deposit accounts 3,213 2,897
3,136 9,234 8,262 Payment systems related revenue 2,122 2,116 2,012
5,812 5,000 Trust and investment services revenues 1,662 1,322
1,649 4,803 3,997 Gains on sales of loans 650 748 967 2,921 2,141
Other 661 591 845 2,180 1,875 Gains (losses) on sales of securities
(163) (206) 96 (67) (686) Total non-interest income 8,145 7,468
8,705 24,883 20,589 Non-interest expense Salaries and employee
benefits 13,312 12,209 12,544 38,369 35,223 Equipment 1,593 1,412
1,574 4,693 4,022 Occupancy 2,099 1,855 2,158 6,306 5,127 Payment
systems related expense 843 666 825 2,333 1,754 Professional fees
485 680 545 1,451 1,837 Postage, printing and office supplies 973
996 969 2,818 2,639 Marketing 1,298 1,103 870 3,292 3,708
Communications 415 372 354 1,202 982 Other non-interest expense
1,584 1,845 1,661 4,677 4,994 Total non-interest expense 22,602
21,138 21,500 65,141 60,286 Income before income taxes 12,680
12,000 12,429 37,188 32,802 Provision for income taxes 4,350 4,131
4,294 12,859 11,241 Net income $8,330 $7,869 $8,135 $24,329 $21,561
Basic earnings per share $0.54 $0.51 $0.52 $1.57 $1.45 Diluted
earnings per share $0.52 $0.49 $0.50 $1.51 $1.38 Weighted average
common shares 15,536 15,386 15,567 15,528 14,904 Weighted average
diluted shares 16,035 16,053 16,143 16,108 15,587 Tax equivalent
net interest income $30,225 $26,700 $29,121 $87,629 $75,186 West
Coast Bancorp Consolidated Balance Sheets Sept. 30 Sept. 30 June
30, (Dollars and shares in thousands, 2007 2006 2007 unaudited)
Assets: Cash and cash equivalents $101,372 $119,301 $82,414
Investments 271,409 295,753 267,614 Total loans 2,183,301 1,868,564
2,140,942 Allowance for loan losses (27,534) (22,404) (26,496)
Loans, net 2,155,767 1,846,160 2,114,446 Goodwill and other
intangibles 14,611 15,182 14,730 Other assets 104,452 93,045
105,195 Total assets $2,647,611 $2,369,441 $2,584,399 Liabilities
and Stockholders' Equity: Demand $500,120 $508,719 $482,698 Savings
and interest-bearing demand 347,560 336,557 347,028 Money market
666,352 622,652 668,373 Certificates of deposits 597,421 539,319
547,054 Total deposits 2,111,453 2,007,247 2,045,153 Borrowings and
subordinated debentures 285,141 146,111 296,727 Other liabilities
33,106 21,827 28,656 Total liabilities 2,429,700 2,175,185
2,370,536 Stockholders' equity 217,911 194,256 213,863 Total
liabilities and stockholders' equity $2,647,611 $2,369,441
$2,584,399 Common shares outstanding period end 15,604 15,532
15,748 Book value per common share $13.97 $12.51 $13.58 Tangible
book value per common share $13.03 $11.53 $12.65 West Coast Bancorp
Period End Loan Portfolio By Category Sept. 30 Sept. 30 Change June
30, (Dollars in thousands, 2007 2006 Amount % 2007 unaudited)
Commercial loans $530,196 $452,035 $78,161 17% $515,590 Real estate
construction loans 519,870 308,886 210,984 68% 503,414 Real estate
mortgage loans 305,675 274,812 30,863 11% 294,447 Real estate
commercial loans 804,200 805,458 (1,258) 0% 803,155 Installment and
other consumer loans 23,360 27,373 (4,013) -15% 24,336 Total loans
$2,183,301 $1,868,564 $314,737 17% $2,140,942 West Coast Bancorp
Return on average equity tangible reconciliation(1) For the three
months For the nine months (Dollars in thousands) ended Sept. 30,
ended Sept. 30, 2007 2006 2007 2006 Net income $8,330 $7,869
$24,329 $21,561 Less: intangible asset amortization, net of tax* 78
99 274 185 Net income, tangible $8,408 $7,968 $24,603 $21,746
Average shareholders' equity $215,550 $188,496 $209,808 $171,254
Less: average intangibles (14,660) (15,266) (14,805) (5,658)
Average shareholders' equity, tangible $200,890 $173,230 $195,003
$165,596 *Federal income tax provision applied at 35%. Return on
average equity 15.3% 16.6% 15.5% 16.8% Return on average equity,
tangible 16.6% 18.2% 16.9% 17.6% (1) Management uses return on
equity, tangible internally and has disclosed it to investors based
on its belief that the figure makes it easier to compare the
Company's performance to other financial institutions that do not
have merger-related intangible assets and is commonly used in the
industry. Ratios have been annualized where appropriate. West Coast
Bancorp Noninterest income/payment systems income reconciliation(2)
For the three months ended Sept. Variance Variance (Dollars in
thousands) 30, $$ % 2007 2006 Noninterest income per GAAP $8,145
$7,468 $677 9% Less: merchant services contract credit -- 400
Noninterest income excluding adjustment $8,145 $7,068 $1,077 15%
Payment system income per GAAP $2,122 $2,116 $6 0% Less: merchant
services contract credit -- 400 Payment system income excluding
adjustment $2,122 $1,716 $406 24% (2) Management has adjusted
percentage growth and has disclosed it to investors based on its
belief that the figure makes it easier to compare the Company's
performance in the current year to the prior year. West Coast
Bancorp Allowance For Credit Losses and Net Charge-offs Quarter
Quarter Quarter ended ended ended Sept. 30, Sept. 30, June 30,
(Dollars in thousands, unaudited) 2007 2006 2007 Allowance for loan
losses, beginning of period $26,496 $21,883 $24,464 Provision for
loan losses 2,700 625 3,500 Reclassification to reserve for
unfunded commitments (972) -- -- Charge-offs 990 330 1,567
Recoveries 300 226 99 Net charge-offs 690 104 1,468 Total allowance
for loan losses $27,534 $22,404 $26,496 Reserve for unfunded
commitments 972 -- -- Total allowance for credit losses $28,506
$22,404 $26,496 Net loan charge-offs to average loans (annualized)
0.13% 0.02% 0.28% Year to date Year to date Sept. 30, Sept. 30,
(Dollars in thousands, unaudited) 2007 2006 Allowance for loan
losses, beginning of period $23,017 $20,469 Provision for loan
losses 9,000 1,533 Reclassification to reserve for unfunded
commitments (972) -- Charge-offs 4,076 1,147 Recoveries 565 662 Net
Charge-offs 3,511 485 Allowance for loan losses, from acquisition
-- 887 Total allowance for loan losses $27,534 $22,404 Reserve for
unfunded commitments 972 -- Total allowance for credit losses
$28,506 $22,404 Net loan charge-offs to average loans (annualized)
0.23% 0.04% West Coast Bancorp Financial Information (Dollars in
thousands except for per share data, unaudited) (all rates have
been annualized Third Third Second Year to Year to where Quarter
Quarter Quarter date date appropriate) 2007 2006 2007 2007 2006
PERFORMANCE RATIOS - Return on average assets 1.29% 1.35% 1.29%
1.29% 1.35% - Return on average common equity 15.33% 16.56% 15.51%
15.50% 16.83% - Return on average tangible equity 16.60% 18.24%
16.89% 16.87% 17.56% - Non-interest income to average assets 1.26%
1.28% 1.38% 1.32% 1.29% - Non-interest expense to average assets
3.49% 3.63% 3.41% 3.47% 3.78% - Efficiency ratio, tax equivalent
58.7% 61.5% 57.0% 57.9% 62.5% NET INTEREST MARGIN - Yield on
interest-earning assets 7.87% 7.50% 7.84% 7.83% 7.29% - Rate on
interest-bearing liabilities 3.86% 3.51% 3.84% 3.79% 3.10% - Net
interest spread 4.01% 3.99% 4.00% 4.04% 4.19% - Net interest margin
4.94% 4.89% 4.90% 4.94% 5.00% AVERAGE ASSETS - Investment
securities $267,681 $298,988 $285,156 $288,377 $290,946 -
Commercial loans $516,634 $449,107 $502,749 $495,833 $411,016 -
Real estate construction loans 507,613 287,558 474,660 460,861
256,736 - Real estate mortgage loans 300,114 271,511 289,812
290,915 260,395 - Real estate commercial loans 798,940 801,354
790,372 796,294 744,463 - Installment and other consumer loans
23,799 28,567 25,967 25,172 27,948 - Total loans $2,147,100
$1,838,097 $2,083,560 $2,069,075 $1,700,558 - Total interest
earning assets $2,426,360 $2,167,250 $2,381,652 $2,370,055
$2,009,767 - Other assets 143,180 143,854 144,857 143,374 123,771 -
Total assets $2,569,540 $2,311,104 $2,526,509 $2,513,429 $2,133,538
AVERAGE LIABILITIES & EQUITY - Demand deposits $490,336
$489,796 $470,622 $474,828 $455,975 - Savings and Interest bearing
demand 341,496 338,642 348,086 273,383 337,452 - Money market
680,027 587,174 659,817 661,037 531,245 - Certificates of deposits
565,550 504,894 538,713 547,622 431,154 - Total deposits $2,077,409
$1,920,506 $2,017,238 $1,956,870 $1,755,826 - Borrowings and
subordinated debentures $252,314 $182,085 $274,093 $250,011
$188,422 - Total interest bearing liabilities $1,839,387 $1,612,796
$1,820,709 $1,804,853 $1,488,273 - Other liabilities 514,603
509,812 495,451 498,768 474,011 - Total liabilities $2,353,990
$2,122,608 $2,316,160 $2,303,621 $1,962,284 - Average common equity
215,550 188,496 210,349 209,808 171,254 - Total average liabilities
and common equity $2,569,540 $2,311,104 $2,526,509 $2,513,429
$2,133,538 AVERAGE ASSET/LIABILITY RATIOS - Average stockholders'
equity to average assets 8.39% 8.16% 8.33% 8.35% 8.03% - Average
int. earning assets to int. bearing liabilities 131.9% 134.4%
130.8% 131.3% 135.0% - Average loans to average assets 83.6% 79.5%
82.5% 82.3% 79.7% - Interest bearing deposits to assets 61.8% 61.9%
61.2% 59.0% 57.1% West Coast Bancorp Non-performing Assets Sept.
30, Sept. 30, June 30, (Dollars in thousands, unaudited) 2007 2006
2007 Non-accruing loans $7,867 $2,652 $6,116 90 day delinquencies
-- -- -- Total non-performing loans 7,867 2,652 6,116 Other real
estate owned 1,183 -- -- Total non-performing assets $9,050 $2,652
$6,116 Allowance for loan losses to total loans 1.26% 1.20% 1.24%
Allowance for credit losses to total loans 1.31% 1.20% 1.24%
Non-performing loans to total loans 0.36% 0.14% 0.29% Allowance for
loan losses to non- performing loans 350% 845% 433% Non-performing
assets to total assets 0.34% 0.11% 0.24% Allowance for loan losses
to non- performing assets 304% 845% 433% DATASOURCE: West Coast
Bancorp CONTACT: Robert D. Sznewajs, President & CEO,
+1-503-598-3243, or Anders Giltvedt, Executive Vice President &
CFO, +1-503-598-3250, both of West Coast Bancorp Web site:
http://www.wcb.com/
Copyright
West Coast Bancorp (MM) (NASDAQ:WCBO)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
West Coast Bancorp (MM) (NASDAQ:WCBO)
Historical Stock Chart
Von Jul 2023 bis Jul 2024