LAKE OSWEGO, Ore., April 25, 2011 /PRNewswire/ -- 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.
Table 1 below shows summary financial information for the
quarters ended March 31, 2011 and
2010, and December 31, 2010.
Table 1
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SUMMARY
FINANCIAL INFORMATION
|
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Quarter
ended
|
Quarter
ended
|
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|
Quarter
ended
|
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|
March
31,
|
March
31,
|
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|
Dec.
31,
|
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|
|
(Shares in thousands)
|
2011
|
2010
|
Change
|
|
2010
|
Change
|
|
|
Selective quarterly performance
ratios
|
|
|
|
|
|
|
|
|
Return on average assets,
annualized
|
0.84%
|
-0.13%
|
0.97
|
|
0.31%
|
0.53
|
|
|
Return on average equity,
annualized
|
7.56%
|
-1.42%
|
8.98
|
|
2.75%
|
4.81
|
|
|
Efficiency ratio for the quarter
to date
|
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
|
96,416
|
92,077
|
4,339
|
|
96,431
|
(15)
|
|
|
Weighted average diluted
shares
|
99,694
|
67,125
|
32,569
|
|
97,863
|
1,831
|
|
|
Income (loss) per diluted
share
|
$
0.05
|
$
(0.01)
|
$ 0.06
|
|
$
0.02
|
$
0.03
|
|
|
Book value per common
share
|
$
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,
|
March
31,
|
|
|
Dec.
31,
|
|
|
|
|
2011
|
2010
|
Change
|
|
2010
|
Change
|
|
|
West Coast Bancorp
|
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|
Tier 1 risk based capital
ratio
|
17.72%
|
15.88%
|
1.84
|
|
17.47%
|
0.25
|
|
|
Total risk based capital
ratio
|
18.98%
|
17.14%
|
1.84
|
|
18.74%
|
0.24
|
|
|
Leverage ratio
|
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
|
17.02%
|
15.24%
|
1.78
|
|
16.79%
|
0.23
|
|
|
Total risk based capital
ratio
|
18.28%
|
16.50%
|
1.78
|
|
18.05%
|
0.23
|
|
|
Leverage ratio
|
12.87%
|
11.16%
|
1.71
|
|
12.51%
|
0.36
|
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|
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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%.
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.
Table 2
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PERIOD END
LOANS
|
|
|
(Dollars in
thousands)
|
Mar.
31,
|
%
of
|
Mar.
31,
|
%
of
|
Change
|
|
Dec.
31,
|
%
of
|
|
|
|
2011
|
Total
|
2010
|
total
|
Amount
|
%
|
|
2010
|
Total
|
|
|
Commercial loans
|
$
306,864
|
20%
|
$
342,385
|
21%
|
$
(35,521)
|
-10%
|
|
$
309,327
|
20%
|
|
|
Commercial real estate
construction
|
17,711
|
1%
|
23,554
|
1%
|
(5,843)
|
-25%
|
|
19,760
|
1%
|
|
|
Residential real estate
construction
|
19,896
|
1%
|
60,879
|
4%
|
(40,983)
|
-67%
|
|
24,325
|
2%
|
|
|
Total real estate construction
loans
|
37,607
|
2%
|
84,433
|
5%
|
(46,826)
|
-55%
|
|
44,085
|
3%
|
|
|
Mortgage
|
63,780
|
4%
|
74,613
|
4%
|
(10,833)
|
-15%
|
|
67,525
|
4%
|
|
|
Nonstandard
mortgage
|
11,140
|
1%
|
18,233
|
1%
|
(7,093)
|
-39%
|
|
12,523
|
1%
|
|
|
Home
equity
|
266,606
|
17%
|
277,527
|
17%
|
(10,921)
|
-4%
|
|
268,968
|
18%
|
|
|
Total real estate
mortgage
|
341,526
|
22%
|
370,373
|
22%
|
(28,847)
|
-8%
|
|
349,016
|
23%
|
|
|
Commercial real estate
loans
|
834,880
|
55%
|
853,180
|
51%
|
(18,300)
|
-2%
|
|
818,577
|
53%
|
|
|
Installment and other consumer
loans
|
14,823
|
1%
|
16,562
|
1%
|
(1,739)
|
-10%
|
|
15,265
|
1%
|
|
|
Total loans
|
$
1,535,700
|
|
$
1,666,933
|
|
$ (131,233)
|
-8%
|
|
$
1,536,270
|
|
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Yield on loans
|
5.38%
|
|
5.44%
|
|
(0.06)
|
|
|
5.43%
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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.
Table 3
|
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PERIOD END
CASH EQUIVALENTS AND INVESTMENT SECURITIES
|
|
|
(Dollars in
thousands)
|
Mar.
31,
|
%
of
|
Mar.
31,
|
%
of
|
Change
|
|
Dec.
31,
|
%
of
|
|
|
|
2011
|
Total
|
2010
|
total
|
Amount
|
%
|
|
2010
|
Total
|
|
|
Cash equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds
sold
|
$
1,966
|
0%
|
$
3,859
|
1%
|
$
(1,893)
|
-49%
|
|
$
3,367
|
0%
|
|
|
Interest-bearing deposits
in other banks
|
122,224
|
16%
|
238,680
|
29%
|
(116,456)
|
-49%
|
|
131,952
|
17%
|
|
|
Total cash
equivalents
|
124,190
|
16%
|
242,539
|
30%
|
(118,349)
|
-49%
|
|
135,319
|
17%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
securities
|
4,282
|
1%
|
24,849
|
3%
|
(20,567)
|
-83%
|
|
14,392
|
2%
|
|
|
U.S. Government Agency
securities
|
153,017
|
19%
|
136,208
|
17%
|
16,809
|
12%
|
|
194,230
|
24%
|
|
|
Corporate
securities
|
9,850
|
1%
|
10,231
|
1%
|
(381)
|
-4%
|
|
9,392
|
1%
|
|
|
Mortgage-backed
securities
|
405,740
|
53%
|
330,849
|
41%
|
74,891
|
23%
|
|
363,618
|
47%
|
|
|
Obligations of state and
political sub.
|
59,136
|
8%
|
60,111
|
7%
|
(975)
|
-2%
|
|
52,645
|
7%
|
|
|
Equity investments and
other securities
|
11,680
|
2%
|
9,352
|
1%
|
2,328
|
25%
|
|
11,835
|
2%
|
|
|
Total investment
securities
|
643,705
|
84%
|
571,600
|
70%
|
72,105
|
13%
|
|
646,112
|
83%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash equivalents and
investment securities
|
$ 767,895
|
100%
|
$ 814,139
|
100%
|
$ (46,244)
|
-6%
|
|
$ 781,431
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax equivalent yield on cash
equivalents and investment securities
|
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.
Table 4
|
|
|
|
|
|
|
|
|
|
|
|
QUARTERLY
AVERAGE DEPOSITS BY CATEGORY
|
|
|
(Dollars in
thousands)
|
Q1
|
%
of
|
Q1
|
%
of
|
Change
|
|
Q4
|
%
of
|
|
|
|
2011
|
Total
|
2010
|
Total
|
Amount
|
%
|
|
2010
|
Total
|
|
|
Demand deposits
|
$
552,229
|
28%
|
$
519,492
|
25%
|
$
32,737
|
6%
|
|
$
566,998
|
29%
|
|
|
Interest bearing
demand
|
344,090
|
18%
|
321,070
|
15%
|
23,020
|
7%
|
|
349,071
|
18%
|
|
|
Total checking
deposits
|
896,319
|
46%
|
840,562
|
40%
|
55,757
|
7%
|
|
916,069
|
47%
|
|
|
Savings
|
106,309
|
6%
|
98,075
|
5%
|
8,234
|
8%
|
|
105,114
|
5%
|
|
|
Money market
|
660,672
|
34%
|
642,594
|
31%
|
18,078
|
3%
|
|
670,580
|
34%
|
|
|
Total non-time
deposits
|
1,663,300
|
86%
|
1,581,231
|
76%
|
82,069
|
5%
|
|
1,691,763
|
86%
|
|
|
Time deposits
|
269,038
|
14%
|
507,706
|
24%
|
(238,668)
|
-47%
|
|
281,009
|
14%
|
|
|
Total deposits
|
$
1,932,338
|
100%
|
$
2,088,937
|
100%
|
$ (156,599)
|
-7%
|
|
$
1,972,772
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate on total
deposits
|
0.38%
|
|
0.83%
|
|
(0.45)
|
|
|
0.40%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NUMBER OF
DEPOSIT ACCOUNTS
|
|
|
|
Mar.
31,
|
%
of
|
Mar.
31,
|
%
of
|
Change
|
|
Dec.
31,
|
%
of
|
Change
|
|
|
|
2011
|
Total
|
2010
|
Total
|
#
|
%
|
|
2010
|
Total
|
#
|
% (1)
|
|
|
Demand deposits
|
52,805
|
33%
|
49,230
|
32%
|
3,575
|
7%
|
|
51,324
|
33%
|
1,481
|
12%
|
|
|
Interest bearing
demand
|
53,377
|
33%
|
50,465
|
32%
|
2,912
|
6%
|
|
52,468
|
33%
|
909
|
7%
|
|
|
Total checking
accounts
|
106,182
|
66%
|
99,695
|
64%
|
6,487
|
7%
|
|
103,792
|
66%
|
2,390
|
9%
|
|
|
Savings
|
29,710
|
19%
|
27,773
|
18%
|
1,937
|
7%
|
|
28,924
|
19%
|
786
|
11%
|
|
|
Money market
|
14,357
|
9%
|
14,629
|
9%
|
(272)
|
-2%
|
|
14,388
|
9%
|
(31)
|
-1%
|
|
|
Total non-time
deposits
|
150,249
|
94%
|
142,097
|
91%
|
8,152
|
6%
|
|
147,104
|
94%
|
3,145
|
9%
|
|
|
Time deposits
|
9,678
|
6%
|
13,850
|
9%
|
(4,172)
|
-30%
|
|
10,014
|
6%
|
(336)
|
-13%
|
|
|
Total deposit
accounts
|
159,927
|
100%
|
155,947
|
100%
|
3,980
|
3%
|
|
157,118
|
100%
|
2,809
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
Table 6
|
|
SUMMARY
INCOME STATEMENT
|
|
|
(Dollars in
thousands)
|
Q1
|
Q1
|
Change
|
|
Q4
|
Change
|
|
|
|
2011
|
2010
|
$
|
%
|
|
2010
|
$
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
$ 21,512
|
$ 20,633
|
$
879
|
4%
|
|
$ 21,889
|
$ (377)
|
-2%
|
|
|
Provision for credit
losses
|
2,076
|
7,634
|
(5,558)
|
-73%
|
|
1,693
|
383
|
23%
|
|
|
Noninterest income
|
8,916
|
6,408
|
2,508
|
39%
|
|
8,595
|
321
|
4%
|
|
|
Noninterest expense
|
22,553
|
21,095
|
1,458
|
7%
|
|
23,330
|
(777)
|
-3%
|
|
|
Income (loss) before income
taxes
|
5,799
|
(1,688)
|
7,487
|
444%
|
|
5,461
|
338
|
6%
|
|
|
Provision (benefit) for income
taxes (1)
|
694
|
(800)
|
1,494
|
187%
|
|
3,549
|
(2,855)
|
-80%
|
|
|
Net income
(loss)
|
$ 5,105
|
$
(888)
|
$ 5,993
|
675%
|
|
$ 1,912
|
$ 3,193
|
167%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For more information on
income taxes see table 10.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
Table 7
|
|
|
|
|
|
|
|
|
NET INTEREST
SPREAD AND MARGIN
|
|
|
(Annualized, tax-equivalent
basis)
|
Q1
|
Q1
|
|
|
Q4
|
|
|
|
|
2011
|
2010
|
Change
|
|
2010
|
Change
|
|
|
Yield on average
interest-earning assets
|
4.41%
|
4.44%
|
(0.03)
|
|
4.35%
|
0.06
|
|
|
Rate on average interest-bearing
liabilities
|
0.86%
|
1.41%
|
(0.55)
|
|
0.88%
|
(0.02)
|
|
|
Net interest spread
|
3.55%
|
3.03%
|
0.52
|
|
3.47%
|
0.08
|
|
|
Net interest margin
|
3.81%
|
3.38%
|
0.43
|
|
3.74%
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
Table 8
|
|
NONINTEREST
INCOME
|
|
|
(Dollars in
thousands)
|
Q1
|
Q1
|
Change
|
|
Q4
|
Change
|
|
|
|
2011
|
2010
|
$
|
%
|
|
2010
|
$
|
%
|
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
$ 3,644
|
$ 3,596
|
$
48
|
1%
|
|
$ 3,736
|
$ (92)
|
-2%
|
|
|
Payment systems related
revenue
|
2,930
|
2,536
|
394
|
16%
|
|
2,984
|
(54)
|
-2%
|
|
|
Trust and investment
services revenues
|
1,148
|
979
|
169
|
17%
|
|
1,143
|
5
|
0%
|
|
|
Gains on sales of
loans
|
513
|
141
|
372
|
264%
|
|
568
|
(55)
|
-10%
|
|
|
Gains on sales of
securities
|
267
|
457
|
(190)
|
-42%
|
|
617
|
(350)
|
-57%
|
|
|
Other
|
748
|
757
|
(9)
|
-1%
|
|
733
|
15
|
2%
|
|
|
Total
|
9,250
|
8,466
|
784
|
9%
|
|
9,781
|
(531)
|
-5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OREO gains (losses) on
sale
|
323
|
301
|
22
|
7%
|
|
336
|
(13)
|
-4%
|
|
|
OREO valuation
adjustments
|
(657)
|
(2,359)
|
1,702
|
72%
|
|
(1,522)
|
865
|
57%
|
|
|
Total net loss on
OREO
|
(334)
|
(2,058)
|
1,724
|
84%
|
|
(1,186)
|
852
|
72%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest
income
|
$ 8,916
|
$ 6,408
|
$ 2,508
|
39%
|
|
$ 8,595
|
$ 321
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
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.
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.
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 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."
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
SOURCE West Coast Bancorp