Pacific Continental Corporation Reports Fourth Quarter and Full Year 2012 Results

Loan Growth, Deposit Growth and Credit Quality Improvement Drive Results

Jan 16, 2013, 16:30 ET from Pacific Continental Corporation

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

-

-

-

-

-