2014

Pacific Continental Corporation Reports Fourth Quarter and Full Year 2012 Results Loan Growth, Deposit Growth and Credit Quality Improvement Drive Results

EUGENE, Ore., Jan. 16, 2013 /PRNewswire/ -- Pacific Continental Corporation (Nasdaq: PCBK), the holding company of Pacific Continental Bank, today reported financial results for the fourth quarter and full year 2012.

Recent highlights:

  • Net income for the year 2012 up 136.9% over 2011.
  • Strong loan growth continues for the fourth consecutive quarter.
  • Nonperforming and classified assets continued their contraction.
  • Net loan recoveries recorded during the quarter.
  • First quarter 2013 quarterly cash dividend increased to $0.08 per share and special cash dividend of $0.08 per share declared.
  • Announced the acquisition of Century Bank in Eugene, Oregon.
  • Total risk-based capital ratio of 18.15%, significantly above the 10.0% minimum for "well-capitalized" designation.
  • Hal Brown receives "CEO of the Year" Honor from the Portland Business Journal as the top executive in the financial services industry.
  • Recognized in the 2012 Oregon Governor's Volunteer Awards.

Net Income

Net income for fourth quarter 2012 was $3.4 million or $0.19 per diluted share. Fourth quarter 2012 results included $203 thousand of merger expenses related to the Company's recently announced acquisition of Century Bank in Eugene, Oregon. Return on average assets and return on average tangible equity for fourth quarter 2012 were 0.99% and 8.33%, respectively.

Net income for the year 2012 was $12.7 million, $0.69 per diluted share, and increased $7,312 million or 136.9% over the $5,341 million, $0.29 per diluted share, reported for 2011. Return on average assets and return on average tangible equity for 2012 were 0.96% and 7.94%, respectively, compared to 0.44% and 3.45% in 2011. 

"Our current quarter and full year results and recent acquisition announcement clearly demonstrate the successful execution of strategic initiatives," said Hal Brown, chief executive officer. "Accelerating loan and deposit growth, plus continued credit quality improvement, suggest consistent and strengthening financial performance that supports the board's decision to increase the cash dividend," added Brown.

Loan and core deposit growth accelerates

Outstanding gross loans at December 31, 2012, were $871.3 million, up $34.3 million during the fourth quarter. Loan growth during the fourth quarter 2012 represented an annualized growth rate of 16.3%, and was primarily centered in construction and commercial loans. Growth in commercial loans was especially strong, increasing 6.1% during the fourth quarter and 19.4% over year-end 2011. The Bank continued to enjoy success in lending to health care professionals. Dental practice loans, in particular, grew 10.3% during the fourth quarter and 29.9% over December 31, 2011.  Contributing to the growth in dental lending was the Company's expansion of out-of-market dental loans.  Out-of-market dental loans at December 31, 2012, were $78.9 million, up $10.5 million during the quarter and up $36.5 million over December 31, 2011.

December 31, 2012, period-end Company-defined core deposits totaled $938.6 million, an increase of $56.0 million over the end of third quarter 2012 and up $52.8 million over December 31, 2011. During 2012, the Company experienced a more typical seasonal core deposit pattern with deposit outflows occurring during the first half of the year followed by growth in core deposits during the second half of the year. As is also typical, at year-end there are approximately $20 million of temporary deposits that are expected to be withdrawn during the first quarter of 2013. At December 31, 2012, noninterest-bearing demand deposits totaled $329.8 million, an 18.4% increase from that of a year ago, and now represent 35.1% of total core deposits. Average core deposits, a measure that eliminates daily volatility, for the fourth quarter 2012 were $900.4 million, up $20.8 million over third quarter 2012.

"Loan and deposit pipelines strengthened throughout 2012 and resulted in significant growth during the fourth quarter," said Roger Busse, president and chief operating officer. "The positive momentum we have generated in niche banking to health care professionals, nonprofit organizations, and community based businesses, combined with  our focus on client relationships and service, suggest excellent prospects for growth during 2013," added Busse.

Classified assets, provisioning and loan statistics

Classified assets continued a two-year trend of decline, and at December 31, 2012, totaled 31.2% of capital, a decline from the 38.96% reported at December 31, 2011. Nonperforming assets, a subcategory of classified assets, totaled $26.4 million at December 31, 2012, or 1.92% of total assets, a decrease from the December 31, 2011, ratio of 2.92%.

Loans past-due 30-89 days were 0.30% of total loans at December 31, 2012, compared to 0.41% of total loans at December 31, 2011. This is the fourteenth consecutive quarter in which this ratio was near or below one percent.

"We continued to make solid progress in reducing our level of problem assets during 2012 and our pending resolutions and collection activities suggest this trend should continue in 2013," said Casey Hogan, executive vice president and chief credit officer. "The diligence of our Credit Administration staff is apparent as we recorded net recoveries for the second consecutive quarter," added Hogan.

The Company recorded no provision for loan losses in the fourth quarter of 2012, reflecting improved credit quality and recoveries recorded during the quarter. During the fourth quarter 2012, the Company had net loan recoveries of $62 thousand compared to net recoveries of $108 thousand in third quarter 2012. For the year 2012, the Company recorded net loan charge offs of $496 thousand or an annualized 0.06% of average loans.

The allowance for loan losses as a percentage of outstanding loans at December 31, 2012, was 1.88% compared to 1.82% at December 31, 2011.

Capital management

In February 2012, the Company's board of directors authorized the repurchase of up to five percent of the Company's shares issued and outstanding, or approximately 922,000 shares, with the purchases to take place over 12 months. During the fourth quarter 2012, the Company repurchased 65,100 shares at a weighted average price of $9.04 per share including commissions. Since the inception of the repurchase plan, the Company has repurchased 641,637 shares at a weighted average price of $8.85 per share. Share repurchases and regular and special cash dividends totaling $0.31 per share during 2012 combined to keep capital levels relatively unchanged from prior year-end, a capital leverage strategy that is likely to continue in 2013.

The Company's capital ratios continue to be well above the minimum FDIC "well-capitalized" designated levels. At December 31, 2012, the Company's Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and Total risk-based capital ratio were 12.33%, 16.90% and 18.15%, respectively, as compared to 13.09%, 17.97% and 19.22% at December 31, 2011. The FDIC's current minimum "well-capitalized" designation ratios are 5.00%, 6.00% and 10.00%, respectively.

Net interest margin

The fourth quarter 2012 net interest margin was 4.11%, a decline of 5 and 48 basis points from the net interest margins reported for third quarter 2012 and fourth quarter 2011, respectively. For the year 2012, the net interest margin was 4.24%, down 37 basis points from 2011. The contraction in the net interest margin was due to lower yields on the Company's loan and securities portfolio. Loan yields continued to contract during the fourth quarter 2012 when compared to the prior quarter and prior year as new loan production in this historically low interest rate environment was booked at yields lower than the average yield on the existing portfolio. The yield on the securities portfolio was impacted by low long-term interest rates that accelerated prepayments on the agency mortgage-backed segment of the portfolio, thus increasing the amortization of premiums and reinvestment of cash flows from the portfolio at lower rates than the average yield on the portfolio.

Noninterest income and expense

Fourth quarter noninterest income was $1.4 million, relatively unchanged from the prior quarter and up $65 thousand from the fourth quarter last year.  For the year 2012, noninterest income was $5.7 million compared to $5.9 million in 2011. Noninterest income in 2011 included $884 thousand of gains on the sale of securities. Excluding the 2011 gains on the sale of securities, 2012 noninterest income was up 15.2% over prior year.

Noninterest expense in fourth quarter 2012 was up $193 thousand over the prior quarter and declined by $876 thousand, or 9.0%, from fourth quarter 2011. For the year 2012 noninterest expense of $35.1 million was down $2.0 million or 5.3% from prior year. The fourth quarter 2012 increase in noninterest expense compared to the prior quarter was primarily due to merger related expenses of $203 thousand. The decline in full year 2012 noninterest expense from last year was due to reductions in FDIC insurance assessments, other real estate expense, and costs, such as legal fees related to collection of problem assets. A portion of the decline in these three categories was offset by an increase in personnel expense. For 2012, the Company's efficiency ratio was 62.9%, a decline from the 2011 efficiency ratio of 65.0%, reflecting continued expense control during a time of compressed interest margins.

Conference call and audio webcast:

Management will conduct a live conference call and audio webcast for interested parties relating to the Company's results for the fourth quarter and full year 2012 on Thursday, January 17, 2013, at 11:00 a.m. Pacific / 2:00 p.m. Eastern. To listen to the conference call, interested parties should call (866) 292-1418. Following the formal remarks, a question and answer session will be open to all interested parties. The webcast will be available via Pacific Continental's website (http://www.therightbank.com/). To listen to the live audio webcast, click on the webcast presentation link on the Company's home page a few minutes before the presentation is scheduled to begin. An audio webcast replay is typically available within twenty-four hours following the live webcast and will be archived for one year on the Pacific Continental website. Any questions regarding the conference call presentation or webcast should be directed to Maecey Castle, vice president and director of corporate communications, at (541) 686-8685.

About Pacific Continental Bank

Pacific Continental Bank, the operating subsidiary of Pacific Continental Corporation, delivers highly personalized services through fourteen banking offices in Oregon and Washington. The Bank also operates a loan production office in Tacoma, Washington. Pacific Continental, with $1.4 billion in assets, has established one of the most unique and attractive metropolitan branch networks in the Pacific Northwest with offices in three of the region's largest markets including Seattle, Portland and Eugene. Pacific Continental targets the banking needs of community-based businesses, health care professionals, professional service providers and nonprofit organizations.

Since its founding in 1972, Pacific Continental Bank has been honored with numerous awards and recognitions from highly regarded third-party organizations including The Seattle Times, the Portland Business Journal, the Seattle Business magazine and Oregon Business magazine. A complete list of the company's awards and recognitions – as well as supplementary information about Pacific Continental Bank – can be found online at www.therightbank.com. Pacific Continental Corporation's shares are listed on the Nasdaq Global Select Market under the symbol "PCBK" and are a component of the Russell 2000 Index.

Forward-Looking Statement Safe Harbor

This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as "anticipates," "targets," "expects," "estimates," "intends," "plans," "goals," "believes" and other similar expressions or future or conditional verbs such as "will," "should," "would" and "could." The forward-looking statements made represent Pacific Continental's current estimates, projections, expectations, plans or forecasts of its future results and revenues, including but not limited to statements about performance, loan and deposit growth, capital strategy and future problem asset migration. These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions that are difficult to predict and are often beyond Pacific Continental's control. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements. You should not place undue reliance on any forward-looking statement and should consider all of the following uncertainties and risks, as well as those more fully discussed under "Risk Factors", "Business", and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Pacific Continental's most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and in any of Pacific Continental's subsequent SEC filings: the high concentration of loans of the Company's banking subsidiary in commercial and residential real estate lending; adverse economic trends in the United States and the markets we serve affecting the Bank's borrower base; a continued decline in the housing and real estate market; a continued increase in unemployment or sustained high levels of unemployment; continued erosion or sustained low levels of consumer confidence; changes in the regulatory environment and increases in associated costs, particularly ongoing compliance expenses and resource allocation needs; vendor quality and efficiency; the Company's ability to control risks associated with rapidly changing technology both from an internal perspective as well as for external providers; increased competition among financial institutions; fluctuating interest rate environments; a tightening of available credit; and risks related to acquisitions, including integration, retention of key personnel and business, anticipated cost savings and results and performance of the acquired company or the combined entity. Pacific Continental Corporation undertakes no obligation to publicly revise or update any forward-looking statement to reflect the impact of events or circumstances that arise after the date of this release. This statement is included for the express purpose of invoking PSLRA's safe harbor provisions.


PACIFIC CONTINENTAL CORPORATION

Consolidated Income Statements

(In thousands, except share and per share amounts)

(Unaudited)












Three months ended


Twelve months ended



December 31, 


December 31, 


December 31, 


December 31, 



2012


2011


2012


2011

Interest and dividend income









Loans


$    12,002


$   12,606


$   48,091


$   50,753

Securities


1,749


2,315


7,797


9,025

Federal funds sold & interest-bearing deposits with banks


2


1


6


6



13,753


14,922


55,894


59,784










Interest expense









Deposits


909


1,218


4,059


6,544

Federal Home Loan Bank & Federal Reserve borrowings


325


481


1,584


1,894

Junior subordinated debentures


35


37


151


136

Federal funds purchased


3


9


24


41



1,272


1,745


5,818


8,615










Net interest income


12,481


13,177


50,076


51,169










Provision for loan losses


-


7,000


1,900


12,900

Net interest income after provision for loan losses


12,481


6,177


48,176


38,269










Noninterest income









Service charges on deposit accounts


468


487


1,827


1,816

Other fee income, principally bankcard


389


368


1,595


1,576

Loan servicing fees


15


24


75


106

Mortgage banking income


-


67


72


191

Gain on sale of investment securities


-


59


-


884

Bank-owned life insurance income


152


38


583


38

Impairment losses on investment securities (OTTI)


-


(10)


-


(10)

Other noninterest income


358


284


1,589


1,265



1,382


1,317


5,741


5,866










Noninterest expense









Salaries and employee benefits


4,855


4,738


19,576


18,875

Premises and equipment


820


839


3,373


3,444

Bankcard processing


140


146


580


618

Business development


502


390


1,682


1,521

FDIC insurance assessment


271


424


1,085


1,692

Other real estate expense


412


1,161


1,494


3,307

Merger Related Expense (1)


203


-


203


-

Other noninterest expense


1,705


2,086


7,112


7,619



8,908


9,784


35,105


37,076










Income before provision for income taxes


4,955


(2,290)


18,812


7,059

Provision for income taxes


1,572


(1,438)


6,159


1,718










Net income


$     3,383


$      (852)


$   12,653


$     5,341










Earnings per share:









Basic


$       0.19


$     (0.05)


$       0.70


$       0.29

Diluted


$       0.19


$     (0.05)


$       0.69


$       0.29










Weighted average shares outstanding:









Basic


17,845,645


18,434,519


18,085,607


18,427,657










Common stock equivalents









attributable to stock-based awards


152,564


-


152,553


91,890

Diluted


17,998,209


18,434,519


18,238,160


18,519,547










PERFORMANCE RATIOS









Return on average assets 


0.99%


-0.27%


0.96%


0.44%

Return on average equity (book) 


7.33%


-1.86%


6.97%


3.01%

Return on average equity (tangible) (2)


8.33%


-2.12%


7.94%


3.45%

Net interest margin (3)


4.11%


4.59%


4.24%


4.61%

Efficiency ratio (4)


64.26%


67.50%


62.89%


65.01%










(1)

 Represents expenses associated with the proposed acquisition of Century Bank

(2) 

Tangible equity excludes goodwill and core deposit intangible assets related to acquisitions.

(3) 

Net interest margin is reported on a tax-equivalent yield basis at a 35% tax rate.

(4) 

Efficiency ratio is noninterest expense divided by operating revenues. Operating revenues are net interest income plus noninterest income.

 


PACIFIC CONTINENTAL CORPORATION

Consolidated Balance Sheets

(In thousands, except share amounts)

(Unaudited)






December 31,


December 31,


2012


2011

ASSETS




Cash and due from banks

$         28,607


$         19,807

Interest-bearing deposits with banks

94


52

Total cash and cash equivalents

28,701


19,859





Securities available-for-sale

389,885


346,542

Loans held-for-sale

-


1,058

Loans, less allowance for loan losses and net deferred fees

854,071


805,211

Interest receivable

4,520


4,725

Federal Home Loan Bank stock

10,462


10,652

Property and equipment, net of accumulated depreciation

19,238


20,177

Goodwill and intangible assets

22,031


22,235

Deferred tax asset

6,230


7,308

Taxes receivable

-


1,671

Other real estate owned

17,972


11,000

Prepaid FDIC assessment

1,746


2,782

Bank-owned life insurance

15,621


15,038

Other assets

3,010


1,974





Total assets

$    1,373,487


$    1,270,232





LIABILITIES AND SHAREHOLDERS' EQUITY




Deposits




Noninterest-bearing demand

$       329,825


$       278,576

Savings and interest-bearing checking

554,693


545,856

Time $100,000 and over

73,610


72,436

Other time

88,026


68,386

Total deposits

1,046,154


965,254





Federal funds and overnight funds purchased

11,570


12,300

Federal Home Loan Bank borrowings

118,000


101,500

Junior subordinated debentures

8,248


8,248

Accrued interest and other payables

6,134


4,064

Total liabilities

1,190,106


1,091,366





Shareholders' equity




Common stock: 50,000,000 shares authorized.  Shares issued and outstanding: 17,835,088 at December 31, 2012, and 18,435,084 at December 31, 2011 

 

133,017


 

137,844

Retained earnings

44,533


37,468

Accumulated other comprehensive income

5,831


3,554


183,381


178,866





Total liabilities and shareholders' equity

$    1,373,487


$    1,270,232









CAPITAL RATIOS




Total capital (to risk weighted assets)

18.15%


19.22%

Tier I capital (to risk weighted assets)

16.90%


17.97%

Tier I capital (to leverage assets)

12.33%


13.09%

Tangible common equity (to tangible assets)(1)

11.94%


12.55%

Tangible common equity (to risk-weighted assets)(1)

16.67%


17.47%





OTHER FINANCIAL DATA




Shares outstanding at end of period

17,835,088


18,435,084

Tangible shareholders' equity(1)

$     161,350


$     156,631

Book value per share

$          10.28


$            9.70

Tangible book value per share

$            9.05


$            8.50





(1)

Tangible shareholders' equity excludes goodwill and core deposit intangible assets related to acquisitions.



PACIFIC CONTINENTAL CORPORATION

Loans by Type and Allowance for Loan Losses

(In thousands)

(Unaudited)













December 31,


December 31,



2012


2011

LOANS BY TYPE





Real estate secured loans:





Permanent loans:





Multifamily residential


$    45,212


$    51,897

Residential 1-4 family


51,437


61,717

Owner-occupied commercial


219,276


207,008

Nonowner-occupied commercial


145,315


157,844

Total permanent real estate loans


461,240


478,466

Construction loans:





Multifamily residential


17,022


2,574

Residential 1-4 family


20,390


17,960

Commercial real estate


23,235


10,901

Commercial bare land and acquisition & development


10,668


19,496

Residential bare land and acquisition & development


8,405


12,707

Total construction real estate loans


79,720


63,638

Total real estate loans


540,960


542,104

Commercial loans


325,604


272,600

Consumer loans


3,581


4,569

Other loans


1,112


1,556

Gross loans


871,257


820,829

Deferred loan origination fees


(841)


(677)



870,416


820,152

Allowance for loan losses


(16,345)


(14,941)



$  854,071


$  805,211






Real estate loans held-for-sale


$               -


$       1,058

















Three months ended

Twelve months ended



December 31,


December 31,


December 31,


December 31,

ALLOWANCE FOR LOAN LOSSES


2012


2011


2012


2011

  Balance at beginning of period


$   16,283


$   15,287


$    14,941


$   16,570

   Provision for loan losses


-


7,000


1,900


12,900

   Loan charge offs


(855)


(7,720)


(3,664)


(15,805)

   Loan recoveries


917


374


3,168


1,276

     Net (charge offs) recoveries


62


(7,346)


(496)


(14,529)

  Balance at end of period


$  16,345


$  14,941


$   16,345


$  14,941




















PACIFIC CONTINENTAL CORPORATION

Selected Other Financial Information and Ratios

(In thousands)

(Unaudited)












Three months ended


Twelve months ended



December 31, 


December 31, 


December 31, 


December 31, 



2012


2011


2012


2011

BALANCE SHEET AVERAGES









  Loans(1)


$      846,199


$      825,988


$      832,787


$      833,643

  Allowance for loan losses


(16,518)


(15,250)


(16,132)


(15,728)

    Loans, net of allowance


829,681


810,738


816,655


817,915

  Securities and short-term deposits


401,537


341,563


384,918


304,620

   Earning assets


1,231,218


1,152,301


1,201,573


1,122,535

  Noninterest-earning assets


126,878


105,416


115,521


104,180

        Assets


$   1,358,096


$   1,257,717


$   1,317,094


$   1,226,715










  Interest-bearing core deposits(2)


$      583,339


$      597,550


$      579,828


$      615,864

  Noninterest-bearing core deposits(2)


317,029


275,212


297,428


263,915

    Core deposits(2)


900,368


872,762


877,256


879,779

  Noncore interest-bearing deposits


103,851


73,988


95,598


65,408

    Deposits


1,004,219


946,750


972,854


945,187

  Borrowings


164,966


124,775


158,254


100,653

  Other noninterest-bearing liabilities


5,281


4,616


4,511


3,619

       Liabilities


1,174,466


1,076,141


1,135,619


1,049,459

  Shareholders' equity (book)


183,630


181,576


181,475


177,256

       Liabilities and equity


$   1,358,096


$   1,257,717


$   1,317,094


$   1,226,715










  Shareholders' equity (tangible)(3)


$      161,586


$      159,313


$      159,349


$      154,908










SELECTED MARKET DATA









  Eugene market gross loans, period end


$      253,345


$      236,932





  Portland market gross loans, period end


383,616


380,397





  Seattle market gross loans, period end


154,229


161,144





  Out-of-market health care gross loans, period end


80,067


42,356





    Total gross loans, period end


$      871,257


$      820,829














  Eugene market core deposits, period end(2)


$      536,143


$      526,928





  Portland market core deposits, period end(2)


258,516


237,230





  Seattle market core deposits, period end(2)


143,970


121,685





    Total core deposits, period end(2)


938,629


885,843





  Other deposits, period end


107,525


79,411





      Total


$   1,046,154


$      965,254














  Eugene market core deposits, average(2)


$      518,487


$      509,882


$      508,856


$      510,324

  Portland market core deposits, average(2)


241,585


239,459


236,200


247,309

  Seattle market core deposits, average(2)


140,296


123,421


132,200


122,146

    Total core deposits, average(2)


900,368


872,762


877,256


879,779

  Other deposits, average


103,851


73,988


95,598


65,408

      Total


$   1,004,219


$      946,750


$      972,854


$      945,187










NET INTEREST MARGIN RECONCILIATION









  Yield on average loans


5.76%


6.17%


5.89%


6.21%

  Yield on average securities(4)


1.98%


2.88%


2.25%


3.14%

    Yield on average earning assets(4)


4.53%


5.19%


4.72%


5.37%










  Rate on average interest-bearing core deposits


0.41%


0.58%


0.47%


0.86%

  Rate on average interest-bearing non-core deposits


1.17%


1.81%


1.38%


1.91%

    Rate on average interest-bearing deposits


0.53%


0.72%


0.41%


0.96%










  Rate on average borrowings


0.88%


1.68%


1.11%


2.06%

    Cost of interest-bearing funds


0.59%


0.87%


0.70%


1.10%










    Interest rate spread(4)


3.93%


4.32%


4.03%


4.27%










       Net interest margin(4)


4.11%


4.59%


4.24%


4.61%










(1)

 Includes loans held-for sale.

(2) 

Core deposits include all demand, savings, and interest checking accounts plus all local time deposits including local time deposits in excess of $100.

(3) 

Tangible shareholders' equity excludes goodwill and core deposit intangible assets related to acquisitions.

(4) 

Tax-exempt income has been adjusted to a tax-equivalent basis at a 35% tax rate. The amount of such adjustment was an addition to recorded income of approximately $875 thousand, and $529 thousand for the twelve months ended December 31, 2012, and December 31, 2011, respectively.

 




PACIFIC CONTINENTAL CORPORATION

Nonperforming Assets and Asset Quality Ratios

(In thousands)

(Unaudited)






December 31,


December 31,


2012


2011

NONPERFORMING ASSETS




Non-accrual loans





Real estate secured loans:






Permanent loans:







Multifamily residential

$                 -


$             -




Residential 1-4 family

1,140


3,426




Owner-occupied commercial

3,805


5,138




Nonowner-occupied commercial

-


575





Total permanent real estate loans

4,945


9,139



Construction loans:







Multifamily residential

-


-




Residential 1-4 family

-


757




Commercial real estate

-


933




Commercial bare land and acquisition & development

-


7,837




Residential bare land and acquisition & development

101


1,929





Total construction real estate loans

101


11,456






Total real estate loans

5,046


20,595


Commercial loans

4,315


5,999







Total nonaccrual loans

9,361


26,594

90-days past due and accruing interest

-


-


Total nonperforming loans

9,361


26,594



Nonperforming loans guaranteed by government

(905)


(495)




Net nonperforming loans

8,456


26,099

Other real estate owned

17,972


11,000




Total nonperforming assets, net of guaranteed loans

$        26,428


$   37,099











ASSET QUALITY RATIOS








Allowance for loan losses as a percentage of total loans outstanding

 

1.88%


 

1.82%





Allowance for loan losses as a percentage of total nonperforming loans, net of government guarantees

 

193.29%


 

57.25%





Net loan charge offs (recoveries) as a percentage  of average loans, annualized

 

0.06%


 

1.74%





Net nonperforming loans as a percentage of total loans

0.97%


3.18%





Nonperforming assets as a percentage of total assets

1.92%


2.92%





Consolidated classified asset ratio(1)

31.18%


38.91%





Past due as a percentage of total loans(2)

0.30%


0.41%





(1) 

Classified asset ratio is defined as the sum of all loan-related contingent liabilities and loans internally graded substandard or worse, impaired loans (net of government guarantees), adversely classified securities, and other real estate owned, divided by total consolidated Tier 1 capital plus the allowance for loan losses.

(2) 

Defined as loans past due more than 30 days and still accruing interest, as a percentage of total loans, net of deferred fees.

 

PACIFIC CONTINENTAL CORPORATION


Nonperforming Loan Rollforward


(In thousands)


For the period  September 30, 2012 Through December 31, 2012


(Unaudited)


























Balance at


Additions to


Net


Returns to




Transfers


Balance at







September 30, 2012


Non-performing


Paydowns


Performing


Charge-offs


to OREO


December 31, 2012




















Real estate loans

















Multifamily residential


$                 -


$                      -


$            -


$             -


$              -


$            -


$                            -



Residential 1-4 family


2,517


320


(836)


(718)


(143)


-


1,140



Owner-occupied commercial


3,624


236


(55)


-


-


-


3,805



Nonowner-occupied commercial


-


-


-


-


-


-


-




Total real estate loans


6,141


556


(891)


(718)


(143)


-


4,945




















Construction
















  Multifamily residential


-


-


-


-


-


-


-


  Residential 1-4 family


-


-


-


-


-


-


-


  Commercial real estate


-


-


-


-


-


-


-


  Commercial bare land and acquisition & development


-


-


-


-


-


-


-


  Residential bare land and acquisition & development


104




(3)








101



  Total  construction loans


104


-


(3)


-


-


-


101





















Commercial and other


4,578


1,043


(901)


-


(405)


-


4,315





















Consumer


-


-


-


-


-


-


-
























Total


$         10,823


$                1,599


$     (1,795)


$         (718)


$          (548)


$            -


$                      9,361























PACIFIC CONTINENTAL CORPORATION


Nonperforming Loan Rollforward

(In thousands)

For the period December 31, 2011 Through December 31, 2012

(Unaudited)


























Balance at


Additions to


Net


Returns to




Transfers


Balance at







December 31, 2011


Non-performing


Paydowns


Performing


Charge-offs


to OREO


December 31, 2012




















Real estate loans

















Multifamily residential


$                 -


$                      -


$            -


$             -


$              -


$            -


$                            -



Residential 1-4 family


3,426


1,653


(2,608)


(718)


(329)


(284)


1,140



Owner-occupied commercial


5,138


655


(1,161)


-


(531)


(296)


3,805



Nonowner-occupied commercial


575


-


(565)


-


(10)


-


-




Total real estate loans


9,139


2,308


(4,334)


(718)


(870)


(580)


4,945




















Construction
















  Multifamily residential


-


-


-


-


-


-


-


  Residential 1-4 family


757


2,688


(3,341)


-


(104)


-


-


  Commercial real estate


933


5


-


-


(186)


(752)


-


  Commercial bare land and acquisition & development


7,836


4,132


(4)


-


(82)


(11,882)


-


  Residential bare land and acquisition & development


1,929


143


(1,776)


-


(163)


(32)


101



  Total  construction loans


11,455


6,968


(5,121)


-


(535)


(12,666)


101





















Commercial and other


5,999


3,016


$     (3,833)


-


(867)


-


4,315





















Consumer


-


-


-


-


-


-


-
























Total


$         26,593


$              12,292


$   (13,288)


$         (718)


$       (2,272)


$   (13,246)


$                      9,361








































 

 

 



PACIFIC CONTINENTAL CORPORATION


Other Real Estate Owned Rollforward


(In thousands)


For the period  September 30, 2012 Through December 31, 2012


(Unaudited)
























Balance at


Additions to


Capitalized


Paydowns/


Writedowns/


Balance at







September 30, 2012


OREO


Costs


Sales


Loss/Gain


December 31, 2012



































Real estate















Multifamily residential


$                           -


$                -


$            -


$             -


$                -


$                          -



Residential 1-4 family


209


-


-


(209)


-


-



Owner-occupied commercial


296


-


-


-


(5)


291



Nonowner-occupied commercial


4,362


-


-


-


(318)


4,044




Total real estate loans


4,867


-


-


(209)


(323)


4,335



















Construction















Multifamily residential


-


-


-


-


-


-



Residential 1-4 family


-


-


-


-


-


-



Commercial real estate


2,177


-


140


-


-


2,317



Commercial bare land and acquisition & development


11,985


-


-


(665)


-


11,320



Residential bare land and acquisition & development


19


-


-


(19)


-


-




Total construction loans


14,368


-


140


(684)


-


13,637



















Commercial and other


-


-


-


-


-


-



















Consumer


-


-


-


-


-


-






















Total


$                   19,235


$                -


$          140


$         (893)


$            (323)


$                  17,972




































PACIFIC CONTINENTAL CORPORATION


Other Real Estate Owned Rollforward


(In thousands)

For the period December 31, 2011 Through December 31, 2012


(Unaudited)























Balance at


Additions to


Capitalized


Paydowns/


Writedowns/


Balance at







December 31, 2011


OREO


Costs


Sales


Loss/Gain


December 31, 2012



































Real estate















Multifamily residential


$                           -


$                -


$            -


$             -


$                -


$                          -



Residential 1-4 family


3,242


284


-


(3,378)


(148)


-



Owner-occupied commercial


469


296


-


(413)


(61)


291



Nonowner-occupied commercial


4,769


-


-


(244)


(481)


4,044




Total real estate loans


8,480


580


-


(4,035)


(690)


4,335



















Construction















Multifamily residential


-


-


-


-


-


-



Residential 1-4 family


234


-


-


(225)


(9)


-



Commercial real estate


1,425


752


140


-


-


2,317



Commercial bare land and acquisition & development


819


11,882


-


(665)


(716)


11,320



Residential bare land and acquisition & development


42


32


-


(73)


(1)


-




Total construction loans


2,520


12,666


140


(963)


(726)


13,637



















Commercial and other


-


-




-


-


-



















Consumer


-


-




-


-


-






















Total


$                   11,000


$        13,246


$          140


$      (4,998)


$         (1,416)


$                  17,972




































 

PACIFIC CONTINENTAL CORPORATION

Aged Analysis of Loans Receivable (Unaudited)

(In thousands)

As of December 31, 2012


























Greater













30-59 Days


60-89 Days


Than




Total Past









Past Due


Past Due


90 Days




Due and 


Total


Total Loans





Still Accruing


Still Accruing


Still Accruing


Nonaccrual


Nonaccrual


Current


Receivable