WCBO West Coast Bancorp (MM)

- Fourth quarter earnings were reduced by a pre-tax provision for credit losses of $30.0 million, of which $27.8 million pre-tax was associated with the two-step residential construction loan portfolio. LAKE OSWEGO, Ore., Jan. 15 /PRNewswire-FirstCall/ -- West Coast Bancorp (NASDAQ:WCBO) today announced a quarterly loss of $7.6 million or ($.49) per diluted share for the fourth quarter of 2007, compared to fourth quarter 2006 earnings of $7.7 million or $.48 per diluted share. The Company also reported net income of $16.7 million or $1.04 per diluted share for the full year 2007, compared to $29.3 million or $1.86 per diluted share for 2006. (Dollars in millions, except per Three months ended December 31, share data) 2007 2006 % Change Diluted Earnings Per Share ($0.49) $0.48 Return On Average Equity (13.8%) 15.5% Return On Average Equity, Tangible* (14.6%) 17.0% Total Period End Loans $2,173 $1,948 12% Total Period End Deposits $2,095 $2,006 4% * 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 loan portfolio, excluding the two-step loans, continues to perform within our expectations," said Robert D. Sznewajs, President and Chief Executive Officer. "We remain committed to growing our core businesses consistent with our previously outlined strategy. The combination of our strong payments system products, delivery branch system and very talented people continues to give us a competitive advantage in the market place." Financial Results: As previously announced, the Company recorded a fourth quarter 2007 total provision for credit losses of $30.0 million including $27.8 million related to the two-step portfolio and $2.2 million related to all other loans. In fourth quarter 2006, the Company recorded a total provision of $1.2 million, of which $.7 million was associated with the two-step portfolio. Total net charge-offs in the fourth quarter were 0.65% annualized of average loans outstanding or $3.6 million, of which $1.9 million related to the two-step portfolio. In the same period of 2006, $.6 million in total net charge-offs were recorded, none of which related to two-step loans. At year end 2007, the total allowance for credit losses was $54.9 million, or 2.53% of total loans, including $31.1 million associated with the two-step loan portfolio and $23.8 million related to the remainder of the loan portfolio. The allowance for credit losses related to the two-step portfolio was 11.81% of total outstanding two-step loans. At December 31, 2007, the allowance for credit losses associated with loans other than two-step loans was 1.25% of such outstanding loan balances. At year-end 2006, the total allowance for credit losses was $23.0 million, or 1.18% of total loans. Total non-performing assets were $29.7 million or 1.12% of total assets at December 31, 2007. The non-performing assets related to the two-step loans was $23.8 million or .90% of total assets at December 31, 2007, as compared to $0.6 million or 0.02% of total assets at year-end 2006. At year-end 2007, there were $5.9 million of non-performing loans outside the two-step portfolio or .22% of total assets, as compared to $0.9 million or .04% of total assets at year-end 2006. Total non-performing assets were $1.5 million or .06% of total assets on December 31, 2006. For more information on non-performing loans and assets, see tables 3 through 9. In the fourth quarter of 2007, total net interest income increased $2.6 million or 10% from the same quarter last year primarily due to the 12% loan growth from the fourth quarter 2006. The fourth quarter net interest margin remained relatively unchanged from the same quarter in 2006, but compressed 14 basis points from the third quarter of this year. The compression in the margin for the fourth quarter was mainly the result of a lag in the decrease in deposit and borrowing rates relative to the decline in loan yields along with interest reversals on loans that fell into non-accrual status during the most recent quarter. Total fourth quarter non-interest income rose $1.1 million or 15% from the same quarter in 2006 despite a $.4 million or 46% decline in gain of sales of loans resulting from slower residential mortgage market activity. Compared to fourth quarter 2006, payment system revenues increased $.5 million or 26% with strong growth in number of card related and merchant services processing revenues. Total deposit service charge revenues grew 31% or $.9 million over the same period primarily reflecting the approximately 10% year-over-year growth in consumer and business transaction accounts, lower earnings credits and higher transaction volumes. Compared to the fourth quarter 2006, total non-interest expense increased a modest $.1 million or 1% in the final quarter of 2007. Personnel expense declined 5% from the fourth quarter in 2006, primarily caused by lower performance-related pay. New and relocated branches over the past 12 months and system upgrades were the primary drivers of the 27% and 17% growth in equipment and occupancy expense, respectively, from the same quarter in 2006. Consistent with the past few quarters, the 30% or $.2 million increase in year-over-year fourth-quarter payment system expense was largely due to significantly higher transaction volumes across our payment systems product offerings. Other: The Company will hold a Webcast conference call Wednesday, January 16, 2008, at 8:30 a.m. Pacific Time, during which the Company will discuss results for fourth quarter and year end 2007, as well as management's expectations for 2008. The Company will review and respond to questions regarding the provision associated with the two-step portfolio. To access the conference call via a live Webcast, go to http://www.wcb.com/ and click on Investor Relations and the "4th Quarter 2007 Earnings Conference Call" tab. The conference call may also be accessed by dialing 877-604-2074, conference ID#: 26072584 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 63 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 as updated the Company's Quarterly Report in Form 10-Q for the period ended September 20, 2007. West Coast Bancorp Consolidated Statements of Income (Loss) (Unaudited) Three months ended Twelve months ended (Dollars and shares in December 31, September 30, December 31, thousands) 2007 2006 2007 2007 2006 Net interest income Interest and fees on loans $43,254 $38,137 $44,517 $170,319 $136,193 Interest on investment securities 3,178 3,815 3,129 13,446 13,737 Other interest income 235 349 96 564 868 Total interest income 46,667 42,301 47,742 184,329 150,798 Interest expense on deposit accounts 14,020 13,486 14,504 55,036 40,927 Interest on borrowings and subordinated debentures 3,233 1,975 3,401 13,434 8,999 Total interest expense 17,253 15,461 17,905 68,470 49,926 Net interest income 29,414 26,840 29,837 115,859 100,872 Provision for credit losses 29,956 1,200 2,700 38,956 2,733 Non-interest income Service charges on deposit accounts 3,698 2,833 3,213 12,932 11,096 Payment systems related revenue 2,197 1,738 2,122 8,009 6,738 Trust and investment services revenues 1,587 1,484 1,662 6,390 5,480 Gains on sales of loans 443 821 650 3,364 2,962 Other 690 631 661 2,870 2,506 Losses on sales of securities - - (163) (67) (686) Total non-interest income 8,615 7,507 8,145 33,498 28,096 Non-interest expense Salaries and employee benefits 11,418 12,017 13,312 49,787 47,240 Equipment 1,852 1,455 1,593 6,544 5,477 Occupancy 2,242 1,921 2,099 8,548 7,048 Payment systems related expense 810 625 843 3,143 2,378 Professional fees 621 646 485 2,072 2,484 Postage, printing and office supplies 1,079 919 973 3,896 3,558 Marketing 1,233 1,260 1,298 4,524 4,967 Communications 421 388 415 1,624 1,370 Other non-interest expense 1,854 2,149 1,584 6,531 7,143 Total non-interest expense 21,530 21,380 22,602 86,669 81,665 Income (loss) before income taxes (13,457) 11,767 12,680 23,732 44,570 Provision (benefit) for income taxes (5,828) 4,068 4,350 7,032 15,310 Net (loss) income $(7,629) $7,699 $8,330 $16,700 $29,260 Basic (loss) earnings per share $(0.49) $0.50 $0.54 $1.08 $1.95 Diluted (loss) earnings per share $(0.49) $0.48 $0.52 $1.04 $1.86 Weighted average common shares 15,445 15,432 15,536 15,507 15,038 Weighted average diluted shares 15,445 16,130 16,035 16,045 15,730 Tax equivalent net interest income $29,871 $27,246 $30,225 $117,500 $102,432 West Coast Bancorp Consolidated Balance Sheets (Dollars and shares in thousands, December 31, December 31, September 30, unaudited) 2007 2006 2007 Assets: Cash and cash equivalents $113,802 $93,800 $101,372 Investments 269,425 328,652 271,409 Total loans 2,172,669 1,947,690 2,183,301 Allowance for loan losses (46,917) (23,017) (27,534) Loans, net 2,125,752 1,924,673 2,155,767 Goodwill and other intangibles 14,491 15,032 14,611 Other assets 123,232 103,215 104,452 Total assets $2,646,702 $2,465,372 $2,647,611 Liabilities and Stockholders' Equity: Demand $501,506 $496,676 $500,120 Savings and interest-bearing demand 364,971 343,689 347,560 Money market 678,090 642,507 666,352 Certificates of deposits 550,265 523,480 597,421 Total deposits 2,094,832 2,006,352 2,111,453 Borrowings and subordinated debentures 301,100 229,409 285,141 Reserve for unfunded commitments 7,986 - 972 Other liabilities 34,685 28,729 32,134 Total liabilities 2,438,603 2,264,490 2,429,700 Stockholders' equity 208,099 200,882 217,911 Total liabilities and stockholders' equity $2,646,702 $2,465,372 $2,647,611 Common shares outstanding period end 15,593 15,586 15,604 Book value per common share $13.35 $12.89 $13.97 Tangible book value per common share $12.42 $11.92 $13.03 West Coast Bancorp Period End Loan Portfolio By Category (Dollars in thousands, December 31, December 31, Change Sept. 30, unaudited) 2007 2006 Amount % 2007 Commercial loans $504,101 $463,188 $40,913 9% $530,196 Real estate construction loans(1) 517,988 365,954 152,034 42% 519,870 Real estate mortgage loans 330,803 287,495 43,308 15% 305,675 Commercial real estate loans 796,622 804,865 (8,243) (1%) 804,200 Installment and other consumer loans 23,155 26,188 (3,033) (12%) 23,360 Total loans $2,172,669 $1,947,690 $224,979 12% $2,183,301 (1) Two-step residential construction loan balances within this category are: 262,952 171,692 91,260 53% 274,747 Non two-step residential construction loans 1,909,717 1,775,998 133,719 8% 1,908,554 Total loans $2,172,669 $1,947,690 $224,979 12% $2,183,301 The following table reconciles return on average equity to return on average equity tangible. Table 1 West Coast Bancorp Return on average equity tangible reconciliation(1) For the three months For the twelve months (Dollars in thousands) ended Dec. 31, ended Dec. 31, 2007 2006 2007 2006 Net income $(7,629) $7,699 $16,700 $29,260 Less: intangible asset amortization, net of tax* 77 98 351 283 Net income, tangible $(7,552) $7,797 $17,051 $29,543 Average shareholders' equity $219,890 $196,619 $212,349 $177,648 Less: average intangibles (14,549) (15,104) (14,740) (8,039) Average shareholders' equity, tangible $205,341 $181,515 $197,609 $169,609 *Federal income tax provision applied at 35%. Return on average equity (13.8%) 15.5% 7.9% 16.5% Return on average equity, tangible (14.6%) 17.0% 8.6% 17.4% (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. Table 2 West Coast Bancorp Financial Information (Dollars in thousands except for per share data, unaudited) Fourth Fourth Third (all rates have been annualized where Quarter Quarter Quarter appropriate) 2007 2006 2007 PERFORMANCE RATIOS - Return on average assets (1.16%) 1.29% 1.29% - Return on average common equity (13.76%) 15.54% 15.33% - Return on average tangible equity (14.59%) 17.04% 16.60% - Non-interest income to average assets 1.31% 1.26% 1.26% - Non-interest expense to average assets 3.27% 3.58% 3.49% - Efficiency ratio, tax equivalent 55.9% 61.5% 58.7% NET INTEREST MARGIN - Yield on interest-earning assets 7.57% 7.59% 7.87% - Rate on interest-bearing liabilities 3.66% 3.71% 3.86% - Net interest spread 3.91% 3.88% 4.01% - Net interest margin 4.80% 4.84% 4.94% AVERAGE ASSETS - Investment securities $273,328 $321,942 $267,681 - Commercial loans $504,330 $442,512 $516,634 - Real estate construction loans 525,110 328,625 507,613 - Real estate mortgage loans 314,497 279,526 300,114 - Commercial real estate loans 804,585 802,230 798,940 - Installment and other consumer loans 23,320 27,066 23,799 - Total loans $2,171,842 $1,879,959 $2,147,100 - Total interest earning assets $2,468,863 $2,233,725 $2,426,360 - Other assets 140,963 138,218 143,180 - Total assets $2,609,826 $2,371,943 $2,569,540 AVERAGE LIABILITIES & EQUITY - Demand deposits $492,636 $496,870 $490,336 - Savings and Interest bearing demand 367,359 343,921 341,496 - Money market 676,908 640,306 680,027 - Certificates of deposits 573,967 534,000 565,550 - Total deposits $2,110,870 $2,015,097 $2,077,409 - Borrowings and subordinated debentures $251,868 $137,326 $252,314 - Total interest bearing liabilities $1,797,355 $1,655,553 $1,839,387 - Other liabilities 592,581 519,771 514,603 - Total liabilities $2,389,936 $2,175,324 $2,353,990 - Average common equity 219,890 196,619 215,550 - Total average liabilities and common equity $2,609,826 $2,371,943 $2,569,540 AVERAGE ASSET/LIABILITY RATIOS - Average stockholders' equity to average assets 8.43% 8.29% 8.39% - Average int. earning assets to int. bearing liabilities 137.4% 134.9% 131.9% - Average loans to average assets 83.2% 79.3% 83.6% - Interest bearing deposits to assets 59.2% 64.0% 61.8% (Dollars in thousands except for per share data, unaudited) (all rates have been annualized where Year to date Year to date appropriate) 2007 2006 PERFORMANCE RATIOS - Return on average assets 0.66% 1.33% - Return on average common equity 7.86% 16.47% - Return on average tangible equity 8.62% 17.42% - Non-interest income to average assets 1.32% 1.28% - Non-interest expense to average assets 3.42% 3.72% - Efficiency ratio, tax equivalent 57.4% 62.2% NET INTEREST MARGIN - Yield on interest-earning assets 7.77% 7.37% - Rate on interest-bearing liabilities 3.76% 3.27% - Net interest spread 4.01% 4.10% - Net interest margin 4.91% 4.96% AVERAGE ASSETS - Investment securities $284,582 $298,758 - Commercial loans $497,975 $418,955 - Real estate construction loans 477,055 274,856 - Real estate mortgage loans 296,859 265,217 - Commercial real estate loans 798,383 759,023 - Installment and other consumer loans 24,705 27,726 - Total loans $2,094,977 $1,745,777 - Total interest earning assets $2,394,958 $2,066,217 - Other assets 142,760 127,412 - Total assets $2,537,718 $2,193,629 AVERAGE LIABILITIES & EQUITY - Demand deposits $479,310 $466,282 - Savings and Interest bearing demand 351,521 339,082 - Money market 665,037 558,735 - Certificates of deposits 554,263 457,077 - Total deposits $2,050,131 $1,821,176 - Borrowings and subordinated debentures $250,481 $170,790 - Total interest bearing liabilities $1,748,515 $1,525,683 - Other liabilities 576,854 490,298 - Total liabilities $2,325,369 $2,015,981 - Average common equity 212,349 177,648 - Total average liabilities and common equity $2,537,718 $2,193,629 AVERAGE ASSET/LIABILITY RATIOS - Average stockholders' equity to average assets 8.37% 8.10% - Average int. earning assets to int. bearing liabilities 137.0% 135.4% - Average loans to average assets 82.6% 79.6% - Interest bearing deposits to assets 59.0% 61.8% The following table presents information with respect to the change in the Company's total allowance for credit losses. Table 3 West Coast Bancorp Total Loan Portfolio Allowance For Credit Losses and Net Charge-offs Quarter ended Quarter ended Quarter ended December 31, December 31, September 30, (Dollars in thousands, unaudited) 2007 2006 2007 Allowance for credit losses, beginning of period $28,506 $22,404 $26,496 Provision for credit losses 29,956 1,200 2,700 Charge-offs 3,636 774 990 Recoveries 77 187 300 Net charge-offs 3,559 587 690 Total allowance for credit losses $54,903 $23,017 $28,506 Components of allowance for credit losses Allowance for loan losses $46,917 $23,017 $27,534 Reserve for unfunded commitments 7,986 - 972 Total allowance for credit losses $54,903 $23,017 $28,506 Net loan charge-offs to average loans (annualized) 0.65% 0.12% 0.13% Year to date Year to date December 31, December 31, (Dollars in thousands, unaudited) 2007 2006 Allowance for credit losses, beginning of period $23,017 $20,469 Provision for credit losses 38,956 2,733 Charge-offs 7,713 1,921 Recoveries 643 849 Net Charge-offs 7,070 1,072 Allowance for loan losses, from acquisition - 887 Total allowance for loan losses $54,903 $23,017 Components of allowance for credit losses Allowance for loan losses $46,917 $23,017 Reserve for unfunded commitments 7,986 - Total allowance for credit losses $54,903 $23,017 Net loan charge-offs to average loans 0.34% 0.06% The following table presents information about the Company's total non-performing assets and delinquent loans. Table 4 West Coast Bancorp Total Loan Portfolio Non-performing Assets and Delinquencies December 31, December 31, September 30, (Dollars in thousands, unaudited) 2007 2006 2007 Non-accruing loans $26,427 $1,468 $7,867 90 day past and accruing interest - - - Total non-performing loans 26,427 1,468 7,867 Other real estate owned 3,255 - 1,183 Total non-performing assets $29,682 $1,468 $9,050 Delinquent loans 30-89 days pastdue, not in nonaccrual status $44,484 $9,922 $14,827 Allowance for loan losses to total loans 2.16% 1.18% 1.26% Allowance for credit losses to total loans 2.53% 1.18% 1.31% Non-performing loans to total loans 1.22% 0.08% 0.36% Delinquent loans to total loans 2.05% 0.51% 0.68% Allowance for loan losses to non-performing loans 178% 1568% 350% Non-performing assets to total assets 1.12% 0.06% 0.34% Allowance for loan losses to non-performing assets 158% 1568% 304% The following table presents information about the Company's activity in other real estate owned. Table 5 West Coast Bancorp Other real estate owned ("OREO") activity December 31, December 31, September 30, (Dollars in thousands, unaudited) 2007 2006 2007 Beginning balance $ - $ - $ - Additions to other real estate owned 3,793 - 1,721 Disposition of other real estate owned (538) - (538) Ending other real estate owned balance $3,255 $ - $1,183 The following table presents information with respect to the change in the Company's allowance for credit losses in the two-step residential construction loan portfolio. Table 6 West Coast Bancorp Two-Step Loan Portfolio Allowance For Credit Losses and Net Charge-offs Two-Step Portfolio Quarter ended Quarter ended Quarter ended December 31, December 31, September 30, (Dollars in thousands, unaudited) 2007 2006 2007 Allowance for credit losses, beginning of period $5,196 $1,940 $3,971 Provision for credit losses 27,736 678 1,891 Charge-offs 1,867 - 666 Recoveries - - - Net charge-offs 1,867 - 666 Total allowance for credit losses $31,065 $2,618 $5,196 Components of allowance for credit losses Allowance for loan losses $23,917 $2,618 $5,025 Reserve for unfunded commitments 7,148 - 171 Total allowance for credit losses $31,065 $2,618 $5,196 Net loan charge-offs to average loans (annualized) 0.34% 0.00% 0.12% Year to date Year to date December 31, December 31, (Dollars in thousands, unaudited) 2007 2006 Allowance for credit losses, beginning of period $2,618 $1,166 Provision for credit losses 30,980 1,452 Charge-offs 2,540 - Recoveries 7 - Net Charge-offs 2,533 - Total allowance for credit losses $31,065 $2,618 Components of allowance for credit losses Allowance for loan losses $23,917 $2,618 Reserve for unfunded commitments 7,148 - Total allowance for credit losses $31,065 $2,618 Net loan charge-offs to average loans 0.12% 0.00% The following table presents information about the Company's allowance for credit losses, nonperforming assets and delinquencies in the two-step residential construction loan portfolio. Table 7 West Coast Bancorp Two-step Residential Construction Loans Non-performing Assets and Delinquencies December 31, December 31, September 30, (Dollars in thousands, unaudited) 2007 2006 2007 Non-accruing two-step loans $20,545 $567 $6,695 90 day past and accruing interest - - - Total non-performing two-step loans 20,545 567 6,695 Other real estate owned two-step 3,255 - 1,183 Total non-performing two-step assets $23,800 $567 $7,878 Delinquent two-step loans 30-89 days past due $36,778 $2,969 $9,878 Allowance for two-step loan losses to total two-step loans 9.10% 1.52% 1.83% Allowance for two-step credit losses to total two-step loans 11.81% 1.52% 1.89% Non-performing two-step loans to total two-step loans 7.81% 0.33% 2.44% Delinquent two-step loans to total two-step loans 13.99% 1.73% 3.60% Allowance for two-step loan losses to non-performing two-step loans 116% 462% 75% Non-performing two-step assets to total assets 0.90% 0.02% 0.30% Allowance for two-step loan losses to non-performing two-step assets 100% 462% 64% The following table presents information with respect to the change in the Company's allowance for credit losses for the non two-step residential construction loan portfolio. Table 8 West Coast Bancorp Non Two-step Residential Construction Loans Allowance For Credit Losses and Net Charge-offs non two-step loans Quarter ended Quarter ended Quarter ended December 31, December 31, September 30, (Dollars in thousands, unaudited) 2007 2006 2007 Allowance for credit losses, beginning of period $23,310 $20,464 $22,525 Provision for credit losses 2,220 522 809 Charge-offs 1,769 774 324 Recoveries 77 187 300 Net charge-offs 1,692 587 24 Total allowance for credit losses $23,838 $20,399 $23,310 Components of allowance for credit losses Allowance for loan losses $23,000 $20,399 $22,509 Reserve for unfunded commitments 838 - 801 Total allowance for credit losses $23,838 $20,399 $23,310 Net loan charge-offs to average loans (annualized) 0.31% 0.12% 0.00% Year to date Year to date December 31, December 31, (Dollars in thousands, unaudited) 2007 2006 Allowance for credit losses, beginning of period $20,399 $19,303 Provision for credit losses 7,976 1,281 Charge-offs 5,173 1,921 Recoveries 636 849 Net Charge-offs 4,537 1,072 Allowance for loan losses, from acquisition - 887 Total allowance for credit losses $23,838 $20,399 Components of allowance for credit losses Allowance for loan losses $23,000 $20,399 Reserve for unfunded commitments 838 - Total allowance for credit losses $23,838 $20,399 Net loan charge-offs to average loans 0.22% 0.06% The following table presents information about the Company's allowance for credit losses, nonperforming assets and delinquencies in the non two-step residential construction loan portfolio. Table 9 West Coast Bancorp Non Two-step Residential Construction Loans Non-performing Assets and Delinquencies December 31, December 31, September 30, (Dollars in thousands, unaudited) 2007 2006 2007 Non-accruing non two-step loans $5,882 $901 $1,172 90 day past and accruing interest - - - Total non-performing non-step loans 5,882 901 1,172 Other real estate owned non two-step - - - Total non-performing non two-step assets $5,882 $901 $1,172 Delinquent non two-step loans 30-89 days past due $7,706 $6,953 $4,949 Allowance for non two-step loan losses to total non two-step loans 1.20% 1.15% 1.18% Allowance for non two-step credit losses to total non two-step loans 1.25% 1.15% 1.22% Non-performing non two-step loans to total non two-step loans 0.31% 0.05% 0.06% Delinquent non two-step loans to total non two-step loans 0.40% 0.39% 0.26% Allowance for non two-step loan losses to non-performing non two- step loans 391% 2264% 1921% Non-performing non two-step assets to total assets 0.22% 0.04% 0.04% Allowance for non two-step loan losses to non-performing non two- step assets 391% 2264% 1921% 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/

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