West Coast Bancorp Reports Record Second Quarter and Six Months
Earnings - Earnings per diluted share increased by 8% for the first
six months of 2004 LAKE OSWEGO, Ore., July 13
/PRNewswire-FirstCall/ -- West Coast Bancorp (NASDAQ:WCBO) today
announced quarterly earnings of $5.3 million or $0.34 per diluted
share for the second quarter of 2004, compared to earnings of $5.00
million or $0.32 per fully diluted share in the second quarter of
2003. This represents a 6% increase in net income and earnings per
diluted share growth from the same quarter in 2003. (Logo:
http://www.newscom.com/cgi-bin/prnh/20010816/SFTH016ALOGO ) Three
Months Ended June 30, (# in 000's except per share data) 2004 2003
Earnings per Diluted Share $.34 $.32 Net Income $5,282 $4,999
Return on Average Equity 15.0% 14.8% Book Value per Share $9.38
$9.07 Total Period End Loans $1,300,684 $1,211,778 Total Period End
Deposits $1,424,762 $1,324,562 "I'm pleased to report net income of
$10.5 million or $.67 per fully diluted share for the first six
months of 2004, representing an 8% increase from the $9.7 million
or $.62 per fully diluted share in the same period a year ago. In
addition, our return on average equity reached 14.9% for the first
six months of 2004, as compared to 14.6% for the first six months
in 2003. The Company continues its pattern of strong growth in
commercial and home equity loans", said Robert D. Sznewajs,
President and Chief Executive Officer. "In addition, I am excited
to announce two new branches which are expected to open in the last
half of 2004, along with the previously announced branch in
Vancouver, Washington. These two branches will be located in
Gresham and Salem, Oregon. Our new locations, along with existing
locations, give West Coast Bank the largest number of branches and
the greatest deposit market share of any community bank in the
Portland/Vancouver and Salem market areas", said Sznewajs.
Financial Results: Excluding commercial real estate loans, average
loans for the second quarter of 2004 grew 10% over the same period
a year ago (see reconciliations to GAAP financial measure on page
6). Extending the trend and reflecting the Company's strategy,
average commercial and home equity loan balances expanded 11% and
26%, respectively, from second quarter of 2003. Since the second
quarter of 2003, total average loans grew $82 million or 7%, while
total average deposits increased by $111 million or 9%. The Company
has experienced excellent growth in lower cost average demand and
money market deposits which combined expanded $162 million or
nearly 20% over the same time period in 2003. For the quarter ended
June 30, 2004, net interest income was $18.3 million, an increase
of $1.1 million compared with the second quarter of 2003. Higher
interest earning assets outstanding and an improved deposit mix
contributed to the increase in net interest income. The net
interest margin declined to 4.68% from 4.78% in the same quarter
last year mainly due to lower loan yields, particularly in the
commercial real estate category. Second quarter 2004 total
non-interest income declined $.1 million from the same period a
year ago. This was due to a $.5 million or 29% reduction in gains
on sales of loans stemming from lower residential mortgage loan
production. Combined, all other fee income sources increased $.4
million or 9%, with especially strong growth in trust, investment
sales, and payment systems related revenues, which rose 20%, 26%,
and 23%, respectively. Total non-interest expense increased $.5
million or 3% in the second quarter of 2004 from the second quarter
of 2003. Personnel expense increased $.5 million from higher salary
and benefits costs, partly offset by lower commission payouts and
higher salary reimbursement related to strong loan originations in
the most recent quarter. Primarily due to branch and product
expansion, equipment and occupancy expenses increased $.2 million
from the second quarter of 2003. All other expenses declined $.2
million despite an increase of $.15 million in expenses on
foreclosed real estate properties. Annualized net charge-offs for
the second quarter 2004 were 0.18% of average loans, compared to
0.08% in the same period last year. Net charge-offs were $.6
million in the second quarter ended June 30, 2004, up from $.3
million in the second quarter of 2003. At June 30, 2004, the
allowance for loan losses was 1.47% of total loans, unchanged from
June 30, 2003. Non- performing assets at the end of the second
quarter 2004 were $6.6 million or .38% of total assets, compared to
$6.3 million or .40% at June 30, 2003. The allowance for loan
losses was 368% of total non-performing loans at June 30, 2004,
versus 386% the same time last year. During the second quarter of
2004, and consistent with its capital plan and pursuant to its
corporate repurchase program, the Company repurchased 157,600
shares at an average cost of $21.97 per share. At June 30, 2004,
approximately 1 million shares remained available for future
repurchases under the program. Other: The Company will hold a
webcast conference call Wednesday, July 14, 2004, at 8:30 a.m.
Pacific Time, during which the Company will discuss second quarter
results, review its strategic progress, and provide management's
current earnings expectations for the full year 2004. To access the
conference call via a live webcast, go to http://www.wcb.com/ and
click on Investor Relations/Conference Call/West Coast Bancorp
Webcast. The conference call may also be accessed by dialing
877-604-2074 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.comand/ clicking on Investor Relations/Conference
Call/Archived Conference Call (Replay). West Coast Bancorp is a
Northwest bank holding company with $1.7 billion in assets,
operating 48 offices in Oregon and Washington. West Coast Bancorp,
the parent company of West Coast Bank and West Coast Trust, is
headquartered in Oregon. West Coast Bank serves clients who seek
the resources, sophisticated products and expertise of larger
financial institutions, along with the local decision making,
market knowledge, and customer service orientation of a community
bank. The Company offers a broad range of banking, investment,
fiduciary and trust services. For more information, please visit
the Company web site athttp://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. Factors that could cause
results to differ from forward-looking statements include, among
others: general economic and banking business conditions; evolving
banking industry standards; competitive factors, including pricing
pressures on Bancorp's loan yield and rates paid on deposits;
changing customer investment, deposit and lending behaviors;
changing interest rate environments, including the shape and the
level of the yield curve, that could decrease net interest income
and fee income, including lower gains on sales of loans; vendor
service quality; changes in laws and other legal developments;
changes in government funding of Small Business Administration
("SBA") loans; and changes in technology or required investments in
technology. Furthermore, the forward-looking statements are subject
to risks related to the Company's ability to: attract and retain
lending officers and other key personnel; close loans in the
pipeline; generate loan and deposit balances at projected spreads;
sustain fee generation; maintain asset quality; control the level
of net charge-offs; generate retail investments; retain customers
of greatest value; control expenses; monitor and manage the
Company's internal control environments, including disclosure and
financial reporting controls, and other matters. Readers are
cautioned not to place undue reliance on the forward-looking
statements which reflect management's analysis only as of the date
of the statements. Readers should carefully review the disclosures
we file from time to time with the Securities and Exchange
Commission ("SEC"). Bancorp undertakes no obligation to publicly
review or update forward-looking statements to reflect events or
circumstances that arise after the date of this report. FINANCIAL
HIGHLIGHTS Three months ended Six months ended (Unaudited) June 30,
June 30, (Dollars and shares in thousands) 2004 2003 2004 2003
Interest and fees on loans $19,170 $19,692 $38,106 $39,187 Interest
on investment securities 3,284 2,803 6,766 5,844 Other interest
income 18 28 32 40 Total interest income 22,472 22,523 44,904
45,071 Interest expense on deposit accounts 2,636 4,006 5,387 8,193
Interest on borrowings including subordinated debentures 1,544
1,283 2,988 2,946 Total interest expense 4,180 5,289 8,375 11,139
Net interest income 18,292 17,234 36,529 33,932 Provision for loan
loss 1,000 850 1,900 1,700 Non-interest income Service charges on
deposit accounts 1,825 1,777 3,679 3,449 Other service charges,
commissions and fees 1,940 1,712 3,645 3,104 Trust revenues 537 445
1,037 860 Gains on sales of loans 1,117 1,572 2,030 2,714 Bank
owned life insurance 188 196 411 305 Other 92 138 405 199 Gains on
sales of securities 75 -- 75 192 Non-interest income 5,774 5,840
11,282 10,823 Non-interest expense Salaries and employee benefits
8,580 8,063 17,501 15,893 Equipment 1,307 1,245 2,607 2,461
Occupancy 1,313 1,174 2,887 2,355 Check and other transaction
processing 664 717 1,294 1,392 Professional fees 504 640 918 1,141
Courier and postage 473 519 939 1,028 Marketing 639 678 1,130 967
Other loan expense 578 440 767 887 Communications 277 310 567 597
Other taxes and insurance 180 181 370 363 Printing and office
supplies 189 196 365 336 Other non-interest expense 597 664 1,144
1,090 Non-interest expense 15,301 14,827 30,489 28,510 Income
before income taxes 7,765 7,397 15,422 14,545 Provision for income
taxes 2,483 2,398 4,969 4,826 Net income $5,282 $4,999 $10,453
$9,719 Basic earnings per share $0.35 $0.33 $0.70 $0.64 Diluted
earnings per share $0.34 $0.32 $0.67 $0.62 Weighted average common
shares 14,890 15,076 14,917 15,111 Weighted average diluted shares
15,542 15,586 15,593 15,604 PERIOD END BALANCES Prior Qtr-to-
(Unaudited) Quarter Quarter Year- Quarter Qtr (000's except per
share ended ended to-year ended % change data) Jun-04 Jun-03 %
change Mar-04 annualized Total assets $1,717,343 $1,593,544 7.8%
$1,684,001 7.9% Total investment securities $308,688 $253,130 21.9%
$316,410 -9.8% Total loans $1,300,684 $1,211,778 7.3% $1,260,771
12.7% Allowance for loan losses $19,123 $17,843 7.2% $18,685 9.4%
Total deposits $1,424,762 $1,324,562 7.6% $1,380,120 12.9% Total
borrowings including including subordinated debentures $140,341
$113,072 24.1% $148,739 -22.6% Stockholders' equity $140,334
$137,676 1.9% $143,114 -7.8% Non-performing assets $6,583 $6,324
4.1% $5,151 111.2% WEST COAST BANCORP (unaudited) (in thousands
except Second Second First Year Year for per share data) Quarter
Quarter Quarter to date to date (all rates have been 2004 2003 2004
2004 2003 annualized where appropriate) CAPITAL - Stockholders'
equity $140,334 $137,676 $143,114 $140,334 $137,676 - Shares
outstanding period end 14,968 15,179 15,025 14,968 15,179 - Average
stockholders' equity to average assets 8.30% 8.71% 8.47% 8.38%
8.73% - Book value per common share $9.38 $9.07 $9.52 $9.38 $9.07 -
Tangible book value per common share $9.33 $9.00 $9.47 $9.33 $9.00
PERFORMANCE RATIOS - Return on average assets 1.25% 1.29% 1.25%
1.25% 1.27% - Return on average equity 15.04% 14.76% 14.79% 14.92%
14.56% - Non-interest income to average assets 1.36% 1.50% 1.33%
1.35% 1.41% - Non-interest expense to average assets 3.62% 3.81%
3.68% 3.65% 3.73% - Efficiency ratio, tax equivalent 62.69% 63.05%
62.86% 62.77% 62.73% RATES - Earned on interest-earning assets
5.73% 6.22% 5.86% 5.79% 6.33% - Paid on interest- bearing
liabilities 1.39% 1.85% 1.40% 1.39% 1.97% - Net interest spread
4.34% 4.37% 4.46% 4.40% 4.36% - Net interest margin 4.68% 4.78%
4.78% 4.73% 4.80% - Tax equivalent net interest income $18,709
$17,675 $18,655 $37,364 $34,820 AVERAGE ASSETS - Investment
securities $310,021 $262,949 $317,741 $313,881 $263,431 -
Commercial loans $265,072 $239,188 $246,461 $255,767 $228,162 -
Real estate construction loans $122,769 $118,839 $117,368 $120,068
$117,545 - Real estate mortgage loans $191,269 $160,438 $182,234
$186,751 $156,890 - Real estate commercial loans $667,922 $642,014
$656,030 $661,976 $640,129 - Installment and other consumer loans
$37,483 $41,870 $38,560 $38,022 $43,025 - Total loans $1,284,515
$1,202,349 $1,240,653 $1,262,584 $1,185,751 - Total interest
earning assets $1,606,929 $1,481,671 $1,568,364 $1,587,646
$1,462,931 - Total assets $1,701,869 $1,559,660 $1,659,927
$1,681,173 $1,542,762 AVERAGE LIABILITIES - Total demand deposits
$335,647 $266,461 $300,358 $318,314 $258,112 - Total interest
bearing demand, savings, and money market $732,928 $641,650
$734,022 $733,475 $632,774 - Total certificates of deposits
$332,552 $382,425 $329,418 $330,985 $376,608 - Total deposits
$1,401,127 $1,290,536 $1,363,798 $1,382,774 $1,267,494 - Total
borrowings including subordinated debentures $147,943 $124,409
$141,389 $147,633 $130,800 - Total interest bearing liabilities
$1,213,423 $1,148,485 $1,204,829 $1,212,093 $1,140,182 - Total
liabilities $1,560,643 $1,423,791 $1,519,305 $1,540,286 $1,408,128
AVERAGE ASSET/LIABILITY RATIOS - Average int. earning assets to
int. bearing liabilities 132.4% 129.0% 130.2% 131.0% 128.4% - Loans
to assets 75.5% 77.1% 74.7% 75.1% 76.9% - Interest bearing deposits
to assets 62.6% 65.7% 64.1% 63.3% 65.4% ASSET QUALITY -
Non-accruing loans $5,201 $4,621 $3,560 $5,201 $4,621 - 90-day
delinquencies -- -- $9 -- -- - Total non-performing loans $5,201
$4,621 $3,569 $5,201 $4,621 - Real estate owned $1,382 $1,703
$1,582 $1,382 $1,703 - Total non-performing assets $6,583 $6,324
$5,151 $6,583 $6,324 ASSET QUALITY RATIOS - Allowance for loan
losses to total loans 1.47% 1.47% 1.48% 1.47% 1.47% -
Non-performing loans to total loans 0.40% 0.38% 0.28% 0.40% 0.38% -
Allowance for loan losses to Non-performing loans 367.68% 386.07%
523.57% 367.68% 386.07% - Non-performing assets to total assets
0.38% 0.40% 0.31% 0.38% 0.40% - Allowance for loan losses to
Non-performing assets 290.49% 282.12% 362.76% 290.49% 282.12% - Net
loan charge-offs to average loans (annualized) 0.18% 0.08% 0.11%
0.14% 0.12% Trailing Four Quarters Financial Data Second First
Fourth Third Trailing and Ratios Quarter Quarter Quarter Quarter
Four (Unaudited) 2004 2004 2003 2003 Quarters (dollars in
thousands): Net income $5,282 $5,171 $5,034 $5,045 $20,532 Diluted
earnings per share $0.34 $0.33 $0.32 $0.32 $1.31 Return on average
assets 1.25% 1.25% 1.20% 1.24% 1.24% Return on average equity
15.04% 14.79% 14.39% 14.59% 14.70% Net interest margin 4.68% 4.78%
4.60% 4.63% 4.67% Efficiency ratio, tax equivalent 62.69% 62.86%
62.60% 63.00% 62.79% Non-interest income to Avg. Assets 1.36% 1.33%
1.30% 1.43% 1.36% Non-interest expense to Avg. Assets 3.62% 3.68%
3.54% 3.66% 3.63% NON GAAP FINANCIAL MEASURES BELOW This press
release includes information relating to the percentage change from
prior periods in average total loans, that is calculated on a
non-GAAP basis.Management uses this non-GAAP information
internally, and has disclosed it to investors, based on its belief
that the information provides additional, valuable information
relating to its operating results in light of its business
strategies. The tables below include a reconciliation of these
measures to comparable measures calculated in accordance with GAAP.
Reconciliations to GAAP financial measures (Unaudited) (dollars in
thousands): Quarter Quarter ended ended Change Jun-04 Jun-03 $ %
Average total loans excluding commercial real estate loans $616,593
$560,335 $56,258 10% Average commercial real estate loans 667,922
642,014 25,908 4% Average loans $1,284,515 $1,202,349 $82,166 7%
http://www.newscom.com/cgi-bin/prnh/20010816/SFTH016ALOGO
http://photoarchive.ap.org/ 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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