West Coast Bancorp Reports Strong First Quarter Earnings with Expansion of Centennial Holdings

Strategic Insights -

West Coast Bancorp, the Northwest-based multi-community bank holding company, reported a net income of $2,747,000 in the first quarter of 1998, with earnings of $0.21 per diluted share. This included merger-related costs of $569,000 and a merger-related increase in the provision for loan losses of $1,038,000. Excluding non-recurring items, the company's operating net income was $3,807,000, an increase of 30 percent over the first quarter of 1997.

Key Takeaways:

  • West Coast Bancorp reported a net income of $2,747,000 in the first quarter of 1998, with earnings of $0.21 per diluted share.
  • The company's operating net income was $3,807,000, an increase of 30 percent over the first quarter of 1997, excluding non-recurring items.
  • The merger-related costs included $569,000 in transition expenses and a $1,038,000 increase in the provision for loan losses.
  • West Coast's net interest income was $14.7 million in the first quarter of 1998, up 11.4 percent from $13.2 million in the first quarter of 1997.
  • Noninterest income increased to $4.2 million, up 2.4 percent from $4.1 million in 1997.
  • The company's noninterest expenses increased to $13.2 million, up 23 percent compared to $10.7 million in the like quarter of 1997.
  • West Coast's efficiency ratio was 70.01 percent, excluding merger-related expenditures.
  • Total deposits grew to $997.3 million at March 31, 1998, up 21 percent from $825.1 million at the same time in 1997.
  • Noninterest bearing demand deposits increased to $172.1 million, up 6 percent from $162.6 million at year-end 1997.
  • West Coast's loans, net of allowance for loan losses, increased by 3.3 percent to $792.2 million at March 31, 1998.
  • The bank holding company had $4.3 million in non-performing assets at March 31, 1998, representing 0.37 percent of total assets.
  • West Coast's provision for loan losses was $1,485,000 in the first quarter of 1998.
  • The company's allowance for loan losses totaled $11.8 million at March 31, 1998, equaling 1.47 percent of outstanding loans.
  • Net loan charge-offs to average loans were 0.07 percent in the first quarter of 1998.
  • Shareholders' equity in West Coast Bancorp was $104.7 million and book value was $8.20 per share at March 31, 1998.
  • West Coast's ending equity-to-assets ratio was 8.97 percent.

Statistics:

  • Net income: $2,747,000
  • Earnings per diluted share: $0.21
  • Operating net income: $3,807,000
  • Increase in operating net income over 1997: 30%
  • Merger-related costs: $569,000
  • Increase in provision for loan losses: $1,038,000
  • Net interest income: $14.7 million (11.4% increase from 1997)
  • Noninterest income: $4.2 million (2.4% increase from 1997)
  • Noninterest expenses: $13.2 million (23% increase from 1997)
  • Efficiency ratio (excluding merger-related expenditures): 70.01%
  • Total deposits: $997.3 million (21% increase from 1997)
  • Noninterest bearing demand deposits: $172.1 million (6% increase from 1997)
  • Loans, net of allowance for loan losses: $792.2 million (3.3% increase from 1997)
  • Non-performing assets: $4.3 million (0.37% of total assets)
  • Provision for loan losses: $1,485,000
  • Allowance for loan losses: $11.8 million (1.47% of outstanding loans)
  • Net loan charge-offs to average loans: 0.07%
  • Shareholders' equity: $104.7 million
  • Book value per share: $8.20

Sources:

  • Business Wire, April 16, 1998
  • Press release from West Coast Bancorp, April 16, 1998