2014

Pacific Continental Corporation Reports Second Quarter 2013 Results Loan Growth and Successful Integration of Acquisition Drive Increased Profitability

EUGENE, Ore., July 17, 2013 /PRNewswire/ -- Pacific Continental Corporation (Nasdaq: PCBK), the holding company of Pacific Continental Bank, today reported financial results for the second quarter 2013.

Recent highlights:

  • Net income $3.7 million or $0.21 per diluted share.
  • Organic loan growth continued for sixth consecutive quarter.
  • Declared third quarter 2013 quarterly cash dividend of $0.09 per share and special cash dividend of $0.12 per share.   
  • Total risk-based capital ratio of 16.56%, significantly above the 10.00% minimum for "well-capitalized" designation.
  • Successfully converted Century Bank core systems.
  • Recognized by the U.S. Small Business Administration (SBA) Portland District Office as a Lending All-Star.
  • Recognized by Seattle Business magazine as one of Washington's 100 Best Companies to Work for in 2013 in "Companies Headquartered Outside Washington" category.

Net income
Net income for second quarter 2013 was $3.7 million or $0.21 per diluted share compared to net income of $3.1 million or $0.17 per diluted share in second quarter 2012. Return on average assets, average book equity, and average tangible equity were 1.04%, 8.19%, and 9.42%, respectively, in second quarter 2013, compared to 0.97%, 6.94%, and 7.92% for the same quarter last year.

"We are pleased with the successful integration of our recent acquisition and can report a high level of client retention following conversion of systems," said Hal Brown, chief executive officer. "We also enjoyed our sixth consecutive quarter of organic loan growth, and we believe that our future performance outlook supports the board's decision to reward our shareholders by once again declaring a special cash dividend," added Brown.

Loan activity continues
Outstanding gross loans at June 30, 2013, were $960.4 million, up $9.6 million over the prior quarter end and up $89.2 million from year-end 2012. Excluding loans acquired in the Century Bank transaction, organic loan growth for the first six months of 2013 was $35.6 million and represents an annualized growth rate of 8.20%.  Loan growth for the second quarter was primarily centered in permanent real estate lending and residential construction.  The Bank continued to expand its lending to health care professionals; at June 30, 2013, loans to dental practitioners totaled $290.5 million representing 30.25% of the total loan portfolio.  Outstanding loans to dental professionals grew 7.30% during the first six months of 2013 and 24.69% over June 30, 2012.  National dental lending at June 30, 2013, totaled $102.3 million, up $12.1 million during the second quarter and up $41.8 million over June 30, 2012.

"We've now seen loan growth for the sixth consecutive quarter which reflects the good work of our bankers as well as the improving economic conditions in the Pacific Northwest," said Roger Busse, president and chief operating officer. "Both our local and national pipelines are strong, suggesting organic loan growth should  continue throughout 2013," added Busse.

Capital levels
The Company's capital ratios continue to be well above the minimum FDIC "well-capitalized" designated levels. At June 30, 2013, the Company's Tier 1 leverage ratio, Tier 1 risk-based capital ratio, and Total risk-based capital ratios were 11.58%, 15.30% and 16.56%, respectively, as compared to 12.70%, 17.73% and 18.99% at June 30, 2012, reflecting incrementally improved capital leverage. The FDIC's minimum "well-capitalized" ratios are 5.00%, 6.00% and 10.00%, respectively.

In February 2013, the Company's board of directors authorized a stock repurchase plan. The plan is authorized to repurchase up to 892,000 shares or five percent of the Company's outstanding shares. The plan commenced on April 1, 2013, with the purchases to occur over a 12-month period. No shares were repurchased during the first or second quarter of 2013.

Classified assets, provisioning and loan statistics
At June 30, 2013, classified assets totaled $60.6 million and represented 33.82% of regulatory capital, compared to $56.1 million and 31.18% of regulatory capital at December 31, 2012.  The increase in classified assets was primarily due to classified loans acquired through the Century Bank acquisition, net of the fair value credit adjustment, totaling approximately $5.8 million.

Nonperforming assets, a subcategory of classified assets, totaled $24.2 million at June 30, 2013, or 1.69% of total assets, a decrease from December 31, 2012, and June 30, 2012, ratios of 1.92% and 2.30%, respectively. Nonperforming assets were comprised of $6.4 million of nonperforming loans, net of government guarantees, and $17.8 million in other real estate owned.

Loans past-due 30-89 days were 0.11% of total loans at June 30, 2013, compared to 0.30% at December 31, 2012. This is the sixteenth consecutive quarter in which this ratio was near or below one percent.

The dental loan portfolio continued to perform well with no loans past-due in the 30-89 days category. Classified dental loans totaled 2.21% of total dental loans with net charge offs of $397 thousand for the first half of 2013. National dental lending statistics continued to be very strong with no loans past due, and 0.89% of the national dental lending portfolio considered classified. 

"Our expectation is that we will see further reductions in the level of classified and problem assets throughout 2013 based on current pending resolutions," said Casey Hogan, executive vice president and chief credit officer.

The Company made no provision for loan losses during the second quarter 2013, compared to $250 thousand in provision for first quarter 2013 and a provision of $600 thousand in second quarter 2012.  During the second quarter 2013, net loan charge offs totaled only $9 thousand.  For the first six months of 2013, net loan charge offs totaled $293 thousand, compared to $666 thousand for the same period last year.

The allowance for loan losses as a percentage of outstanding loans at June 30, 2013, was 1.70% compared to 1.88% at December 31, 2012, and 1.96% at June 30, 2012. The decrease was partially attributable to the Century Bank acquired loans included at their fair value, net of credit risk adjustments. The allowance for loan losses as a percentage of total nonperforming loans, net of government guarantees, has improved to 254.62% at June 30, 2013, from the 67.70% reported one year ago, reflecting both a reduction in nonperforming loans and an overall general improvement in the quality of the loan portfolio.

Core deposit growth slows
Period-end Company-defined core deposits at June 30, 2013, were $958.7 million, relatively unchanged from the prior quarter end. This is a typical seasonal pattern where outstanding core deposits are relatively flat or decline during the first six months of the year, with growth historically occurring during the last half of the year. Average core deposits, a calculation that eliminates daily volatility of outstanding balances, for the second quarter 2013 were $966.8 million, up $23.5 million over the prior quarter end. A portion of the increase was attributable to the acquisition of Century Bank core deposits. At period-end June 30, 2013, noninterest-bearing demand deposits totaled $341.2 million and represented 35.59% of core deposits.

Net interest margin
The second quarter 2013 net interest margin, on a tax equivalent basis, was 4.20%, representing a linked-quarter decline of 9 basis points from first quarter 2013, and a decline of 11 basis points from second quarter 2012. The decline in the linked-quarter net interest margin was attributable to a 10 basis point reduction on earning assets, while the cost of interest-bearing funds was unchanged.  The accretion of the Century Bank loan fair value market adjustment during the second quarter 2013 positively impacted the net interest margin by 11 basis points in second quarter 2013 compared to 7 basis points in first quarter 2013.

Noninterest income and expense
Second quarter noninterest income was $1.5 million, up $42 thousand over second quarter 2012. On a linked-quarter basis, second quarter 2013 noninterest income was up $255 thousand over first quarter 2013.  The linked-quarter increase in noninterest income was due to seasonal improvement in merchant bankcard revenues, increased service charges attributable to the accounts acquired in the Century Bank acquisition and approximately $100 thousand of rental income received on other real estate owned. 

Noninterest expense in second quarter 2013 was up $743 thousand over second quarter 2012, with increases in compensation, premises, data processing and business development, partially offset by a reduction in FDIC assessments and other real estate expense.  When first quarter merger-related expenses of $1.2 million are excluded from first quarter 2013, linked-quarter noninterest expense was relatively unchanged at $9.5 million

The second quarter efficiency ratio was 63.17% compared to 62.64% for second quarter 2012. For the first six months of 2013, excluding merger expenses, the efficiency ratio was 64.07% compared to 62.32% for the same period in 2012. 

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 second quarter 2013 on Thursday, July 18, 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 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 Shannon Coffin, executive administrative assistant, 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" "anticipates" 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  growth, capital strategy, future classified and problem asset migration and credit quality trends and economic conditions generally. 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, including the high concentration of loans of the Company's banking subsidiary in commercial and residential real estate lending and our significant concentration in loans to dental professionals; 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 Federal Reserve's monetary policies and 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 operational systems or infrastructure failures; increased competition; fluctuating interest rates; 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


Six months ended



June 30, 


June 30, 


June 30, 


June 30, 



2013


2012


2013


2012

Interest and dividend income









Loans


$      13,066


$      11,997


$      25,765


$      24,118

Taxable securities


1,237


1,596


2,674


3,395

Tax-exempt securities


474


397


941


742

Federal funds sold & interest-bearing deposits with banks


2


1


5


2



14,779


13,991


29,385


28,257










Interest expense









Deposits


900


1,018


1,785


2,157

Federal Home Loan Bank & Federal Reserve borrowings


305


426


613


895

Junior subordinated debentures


55


38


89


78

Federal funds purchased


3


10


7


16



1,263


1,492


2,494


3,146










  Net interest income


13,516


12,499


26,891


25,111










Provision for loan losses


-


600


250


1,900

  Net interest income after provision for loan losses


13,516


11,899


26,641


23,211










Noninterest income









Service charges on deposit accounts


489


457


949


897

Other fee income, principally bankcard


412


410


784


797

Mortgage banking income


-


-


-


72

Bank-owned life insurance income


130


148


256


275

Loss on sale of investment securities


-


-


(8)


-

  Impairment losses on investment securities (OTTI)


-


-


(16)


-

Other noninterest income


504


478


850


904



1,535


1,493


2,815


2,945










Noninterest expense









Salaries and employee benefits


5,324


5,088


10,803


10,002

Premises and equipment


937


852


1,827


1,715

Data processing


672


512


1,295


1,005

Legal and professional fees


581


397


1,039


943

Business development


528


347


1,024


770

FDIC insurance assessment


221


290


443


529

Bankcard processing


141


152


268


293

Other real estate expense


153


238


577


616

Merger related expenses(1)


-


-


1,246


-

Other noninterest expense


951


889


1,756


1,611



9,508


8,765


20,278


17,484










Income before provision for income taxes


5,543


4,627


9,178


8,672

Provision for income taxes


1,819


1,510


3,004


2,840










  Net income


$        3,724


$        3,117


$        6,174


$        5,832










Earnings per share:









Basic


$          0.21


$          0.17


$          0.35


$          0.32

Diluted


$          0.21


$          0.17


$          0.34


$          0.32










Weighted average shares outstanding:









Basic


17,872,378


18,147,729


17,854,094


18,262,658










Common stock equivalents









attributable to stock-based awards


187,703


208,345


187,689


206,513

Diluted


18,060,081


18,356,074


18,041,783


18,469,171










PERFORMANCE RATIOS









Return on average assets 


1.04%


0.97%


0.87%


0.91%

Return on average equity (book) 


8.19%


6.94%


6.81%


6.51%

Return on average equity (tangible) (2)


9.42%


7.92%


7.82%


7.42%

Net interest margin (3)


4.20%


4.31%


4.24%


4.35%

Efficiency ratio (4)


63.17%


62.64%


68.26%


62.32%










(1) Represents expenses associated with the 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)








June 30, 


December 31,


June 30, 


2013


2012


2012

ASSETS






Cash and due from banks

$      24,193


$      28,607


$      19,768

Interest-bearing deposits with banks

69


94


60

  Total cash and cash equivalents

24,262


28,701


19,828







Securities available-for-sale

357,394


389,885


387,378

Loans, less allowance for loan losses and net deferred fees

943,255


854,071


809,870

Interest receivable

5,101


4,520


4,761

Federal Home Loan Bank stock

10,620


10,462


10,652

Property and equipment, net of accumulated depreciation

19,310


19,238


19,760

Goodwill and intangible assets

23,740


22,031


22,123

Deferred tax asset

9,845


6,230


6,323

Taxes receivable

130


-


1,671

Other real estate owned

17,823


17,972


6,966

Prepaid FDIC assessment

-


1,746


2,265

Bank-owned life insurance

15,877


15,621


15,313

Other assets

3,717


3,010


3,174







  Total assets

$ 1,431,074


$ 1,373,487


$ 1,310,084







LIABILITIES AND SHAREHOLDERS' EQUITY






Deposits






 Noninterest-bearing demand

$    341,218


$    329,825


$    288,061

 Savings and interest-bearing checking

545,749


554,693


504,561

 Time $100,000 and over

82,418


73,610


76,679

 Other time

101,243


88,026


80,649

  Total deposits

1,070,628


1,046,154


949,950







Federal funds and overnight funds purchased

7,660


11,570


8,580

Federal Home Loan Bank borrowings

162,000


118,000


158,000

Junior subordinated debentures

8,248


8,248


8,248

Accrued interest and other payables

3,609


6,134


4,717

  Total liabilities

1,252,145


1,190,106


1,129,495







Shareholders' equity






Common stock: 50,000,000 shares authorized.  Shares issued






and outstanding:  17,887,945 at June 30, 2013, 17,835,088






at December 31, 2012 and 18,062,633 at June 30, 2012

133,331


133,017


134,665

Retained earnings

45,349


44,533


41,296

Accumulated other comprehensive income

249


5,831


4,628


178,929


183,381


180,589







  Total liabilities and shareholders' equity

$ 1,431,074


$ 1,373,487


$ 1,310,084













CAPITAL RATIOS






Total capital (to risk weighted assets)

16.56%


18.15%


18.99%

Tier I capital (to risk weighted assets)

15.30%


16.90%


17.73%

Tier I capital (to leverage assets)

11.58%


12.33%


12.70%

Tangible common equity (to tangible assets)(1)

11.03%


11.94%


12.30%

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

14.58%


16.67%


17.55%







OTHER FINANCIAL DATA






Shares outstanding at end of period

17,887,945


17,835,088


18,062,633

Tangible shareholders' equity(1)

$    155,189


$    161,350


$    158,466

Book value per share

$        10.00


$        10.28


$        10.00

Tangible book value per share

$          8.68


$          9.05


$          8.77







(1)Tangible common 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)























June 30, 


December 31,


June 30, 





2013


2012


2012



LOANS BY TYPE









Real estate secured loans:









Permanent loans:









 Multi-family residential


$   45,142


$   45,212


$   46,539



 Residential 1-4 family


51,312


51,437


58,071



 Owner-occupied commercial


238,332


219,276


220,814



 Nonowner-occupied commercial


172,159


145,315


136,612



  Total permanent real estate loans


506,945


461,240


462,036



Construction loans:









 Multi-family residential


23,925


17,022


7,503



 Residential 1-4 family


26,277


20,390


17,158



 Commercial real estate


20,317


23,235


13,095



 Commercial bare land and acquisition & development


10,664


10,668


18,522



 Residential bare land and acquisition & development


8,087


8,405


9,634



  Total construction real estate loans


89,270


79,720


65,912



    Total real estate loans


596,215


540,960


527,948



Commercial loans


359,397


325,604


293,282



Consumer loans


3,922


3,581


4,095



Other loans


899


1,112


1,463



 Gross loans


960,433


871,257


826,788



Deferred loan origination fees


(875)


(841)


(743)





959,558


870,416


826,045



Allowance for loan losses


(16,303)


(16,345)


(16,175)





$ 943,255


$ 854,071


$ 809,870























Three months ended


Six months ended



June 30, 


June 30,


June 30,


June 30,

ALLOWANCE FOR LOAN LOSSES


2013


2012


2013


2012

  Balance at beginning of period


$   16,312


$   15,829


$   16,345


$ 14,941

   Provision for loan losses


-


600


250


1,900

   Loan charge offs


(230)


(1,147)


(828)


(1,669)

   Loan recoveries


221


893


536


1,003

     Net charge offs


(9)


(254)


(292)


(666)

  Balance at end of period


$   16,303


$   16,175


$   16,303


$ 16,175

 


PACIFIC CONTINENTAL CORPORATION

Selected Other Financial Information and Ratios

(In thousands)

(Unaudited)












Three months ended


Six months ended 



June 30, 


June 30, 


June 30, 


June 30, 



2013


2012


2013


2012

BALANCE SHEET AVERAGES









  Loans(1)


$    955,717


$    825,689


$    936,699


$    825,977

  Allowance for loan losses


(16,465)


(16,428)


(16,426)


(15,928)

    Loans, net of allowance


939,252


809,261


920,273


810,049

  Securities and short-term deposits


376,031


377,631


381,641


369,285

   Earning assets


1,315,283


1,186,892


1,301,914


1,179,334

  Noninterest-earning assets


123,220


111,122


123,405


111,987

        Assets


$ 1,438,503


$ 1,298,014


$ 1,425,319


$ 1,291,321










  Interest-bearing core deposits(2)


$    638,195


$    570,314


$    637,173


$    578,234

  Noninterest-bearing core deposits(2)


328,627


288,405


317,961


286,174

    Core deposits(2)


966,822


858,719


955,134


864,408

  Noncore interest-bearing deposits


108,804


99,770


109,865


89,275

    Deposits


1,075,626


958,489


1,064,999


953,683

  Borrowings


177,319


154,903


173,833


153,366

  Other noninterest-bearing liabilities


3,174


4,108


3,790


4,073

       Liabilities


1,256,119


1,117,500


1,242,622


1,111,122

  Shareholders' equity (book)


182,384


180,514


182,697


180,199

       Liabilities and equity


$ 1,438,503


$ 1,298,014


$ 1,425,319


$ 1,291,321










  Shareholders' equity (tangible)(3)


$    158,630


$    158,361


$    159,251


$    158,018










SELECTED MARKET DATA









  Eugene market gross loans, period-end


$    325,373


$    240,366





  Portland market gross loans, period-end


391,822


366,713





  Seattle market gross loans, period-end


140,137


159,134





  National health care gross loans, period-end (4)


103,101


60,575





    Total gross loans, period-end


$    960,433


$    826,788














  Eugene market core deposits, period-end(2)


$    578,829


$    498,987





  Portland market core deposits, period-end(2)


240,582


224,586





  Seattle market core deposits, period-end(2)


139,330


128,208





    Total core deposits, period-end(2)


958,741


851,781





  Other deposits, period-end


111,887


98,169





      Total


$ 1,070,628


$    949,950














  Eugene market core deposits, average(2)


$    589,647


$    505,175





  Portland market core deposits, average(2)


242,668


228,058





  Seattle market core deposits, average(2)


134,508


125,486





    Total core deposits, average(2)


966,823


858,719





  Other deposits, average


108,803


99,770





      Total


$ 1,075,626


$    958,489














NET INTEREST MARGIN RECONCILIATION









  Yield on average loans


5.58%


5.96%


5.65%


5.99%

  Yield on average securities(5)


2.10%


2.35%


2.18%


2.47%

    Yield on average earning assets(5)


4.58%


4.81%


4.63%


4.89%










  Rate on average interest-bearing core deposits


0.35%


0.49%


0.36%


0.51%

  Rate on average interest-bearing non-core deposits


1.25%


1.30%


1.20%


1.53%

    Rate on average interest-bearing deposits


0.48%


0.61%


0.30%


0.65%










  Rate on average borrowings


0.82%


1.23%


0.82%


1.30%

    Cost of interest-bearing funds


0.55%


0.73%


0.55%


0.77%










    Interest rate spread(5)


4.04%


4.09%


4.08%


4.12%










       Net interest margin(5)


4.20%


4.31%


4.24%


4.35%










(1)Includes loans held-for-sale.

(2)Core deposits include demand, interest checking, money market, savings, and local time deposits, including local nonpublic time deposits in excess of $100 thousand.  

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

(4) National Healthcare loans include loan to heath care professionals, primarily dental practitioners, operating outside of Pacific Continental Bank's market area. The market area is defined as Oregon and Washington West of the Cascade Mountain Range.

(5)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 $255 thousand, and $214 thousand for the six months ended June 30, 2013, and June 30, 2012, respectively.

 







PACIFIC CONTINENTAL CORPORATION






Nonperforming Assets and Asset Quality Ratios






(In thousands)






(Unaudited)




















June 30, 


December 31,


June 30,








2013


2012


2012




NONPERFORMING ASSETS






Non-accrual loans







Real estate secured loans:








Permanent loans:









Multi-family residential

$         -


$           -


$         -




Residential 1-4 family

1,243


1,140


3,435




Owner-occupied commercial

3,097


3,805


3,952




Nonowner-occupied commercial

-


-


-





Total permanent real estate loans

4,340


4,945


7,387



Construction loans:









Multi-family residential

-


-


-




Residential 1-4 family

-


-


2,637




Commercial real estate

-


-


933




Commercial bare land and acquisition & development

-


-


8,491




Residential bare land and acquisition & development

101


101


1,157





Total construction real estate loans

101


101


13,218






Total real estate loans

4,441


5,046


20,605


Commercial loans

2,890


4,315


3,089







Total nonaccrual loans

7,331


9,361


23,694

90-days past due and accruing interest

-


-


-


Total nonperforming loans

7,331


9,361


23,694



Nonperforming loans guaranteed by government

(928)


(905)


(486)




Net nonperforming loans

6,403


8,456


23,208

Other real estate owned

17,823


17,972


6,966




Total nonperforming assets, net of guaranteed loans

$ 24,226


$ 26,428


$ 30,174
















ASSET QUALITY RATIOS




















Allowance for loan losses as a percentage of total loans outstanding

1.70%


1.88%


1.96%





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

254.62%


193.29%


69.70%





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

0.06%


0.06%


0.16%





Net nonperforming loans as a percentage of total loans

0.67%


0.97%


2.81%





Nonperforming assets as a percentage of total assets

1.69%


1.92%


2.30%





Consolidated classified asset ratio(1)

33.82%


31.18%


33.98%





Past due as a percentage of total loans(2)

0.11%


0.30%


1.04%













(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

Aged Analysis of Loans Receivable (Unaudited)

(In thousands)

As of June 30, 2013


























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

















Real estate loans














Multi-family residential

$       -


$       -


$   -


$         -


$         -


$   45,142


$   45,142

Residential 1-4 family

198


-


-


1,243


1,441


49,871


51,312

Owner-occupied commercial

151


-


-


3,097


3,248


235,084


238,332

Nonowner-occupied commercial

558


-


-


-


558


171,601


172,159


Total real estate loans

907


-


-


4,340


5,247


501,698


506,945


















Construction














  Multi-family residential

-


-


-


-


-


23,925


23,925

  Residential 1-4 family

-


-


-


-


-


26,277


26,277

  Commercial real estate

38


-


-


-


38


20,279


20,317

  Commercial bare land and acquisition & development

-


-


-


-


-


10,664


10,664

  Residential bare land and acquisition & development

-


-


-


101


101


7,986


8,087


  Total  construction loans

38


-


-


101


139


89,131


89,270


















Commercial and other

74


-


-


2,890


2,964


357,332


360,296


















Consumer

2


-


-


-


2


3,920


3,922




















Total

$ 1,021


$       -


$   -


$   7,331


$   8,352


$ 952,081


$ 960,433




















































PACIFIC CONTINENTAL CORPORATION

Aged Analysis of Loans Receivable (Unaudited)

(In thousands)

As of  June 30, 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


Receivables

















Real estate loans














Multi-family residential

$       -


$       -


$   -


$         -


$         -


$   46,539


$   46,539

Residential 1-4 family

557


5,652


-


3,435


9,644


48,427


58,071

Owner-occupied commercial

186


341


-


3,952


4,479


216,335


220,814

Nonowner-occupied commercial

94


-


-


-


94


136,518


136,612


Total real estate loans

837


5,993


-


7,387


14,217


447,819


462,036


















Construction














    Multi-family residential

-


-


-


-


-


7,503


7,503

    Residential 1-4 family

-


-


-


2,637


2,637


14,521


17,158

    Commercial real estate

1,611


-


-


933


2,544


10,551


13,095

    Commercial bare land and acquisition & development

-


-


-


8,491


8,491


10,031


18,522

    Residential bare land and acquisition & development

-


-


-


1,157


1,157


8,477


9,634


Total construction loans

1,611


-


-


13,218


14,829


51,083


65,912


















Commercial and other

178


-


-


3,089


3,267


291,478


294,745


















Consumer

9


3


-


-


12


4,083


4,095





















Total

$ 2,635


$ 5,996


$   -


$ 23,694


$ 32,325


$ 794,463


$ 826,788

 


PACIFIC CONTINENTAL CORPORATION

Credit Quality Indicators (Unaudited)

(In thousands)

As of June 30, 2013
















Loan Grade






Pass


Special Mention


Substandard


Doubtful


Total













Real estate loans










Multi-family residential

$   43,827


$   -


$   1,315


$      -


$   45,142

Residential 1-4 family

41,817


-


9,495


-


51,312

Owner-occupied commercial

227,870


-


10,462


-


238,332

Nonowner-occupied commercial

166,940


-


5,219


-


172,159


Total real estate loans

480,454


-


26,491


-


506,945













Construction










  Multi-family residential

23,925


-


-


-


23,925

  Residential 1-4 family

26,171


-


106


-


26,277

  Commercial real estate

18,741


-


1,576


-


20,317

  Commercial bare land and acquisition & development

10,472


-


192


-


10,664

  Residential bare land and acquisition & development

4,780


-


3,307


-


8,087


  Total  construction loans

84,089


-


5,181


-


89,270













Commercial and other

349,598


-


10,698


-


360,296













Consumer

3,888


-


34


-


3,922















Total

$ 918,029


$   -


$ 42,404


$      -


$ 960,433



























PACIFIC CONTINENTAL CORPORATION

Credit Quality Indicators (Unaudited)

(In thousands)

As of June 30, 2012
















Loan Grade






Pass


Special Mention


Substandard


Doubtful


Total

























Real estate loans










Multi-family residential

$   45,202


$   -


$   1,337


$      -


46,539

Residential 1-4 family

48,311


-


9,760


-


58,071

Owner-occupied commercial

210,833


-


9,981


-


220,814

Nonowner-occupied commercial

133,016


-


3,596


-


136,612


Total real estate loans

437,362


-


24,674


-


462,036













Construction










  Multi-family residential

7,503


-


-


-


7,503

  Residential 1-4 family

14,343


-


2,815


-


17,158

  Commercial real estate

10,551


-


2,544


-


13,095

  Commercial bare land and acquisition & development

10,031


-


8,491


-


18,522

  Residential bare land and acquisition & development

5,417


-


4,217


-


9,634


  Total  construction loans

47,845


-


18,067


-


65,912













Commercial and other

284,667


-


10,003


75


294,745













Consumer

4,023


-


72


-


4,095















Total

$ 773,897


$   -


$ 52,816


$     75


$ 826,788

  

SOURCE Pacific Continental Corporation



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