MEDFORD, Ore., Oct. 22, 2008 (GLOBE NEWSWIRE) -- PremierWest Bancorp (Nasdaq:PRWT) announced net income of $1.3 million for the quarter ended September 30, 2008. Earnings per share on a fully diluted basis were $0.05. Earnings for the nine months ended September 30, 2008 were $3.7 million or $0.16 per fully diluted share. Chief Executive Officer, John Anhorn, stated, "The current state of the financial markets reflects lending practices that have evolved over the past few years. We, as an institution, have strived to stay above much of the turmoil by following our 'stick-to-the-fundamentals' approach to banking. We did not make subprime loans, and we did not invest in Fannie Mae or Freddie Mac preferred stock. Our approach has succeeded, in part, as evidenced by our ability to strengthen our loan loss reserves and continue to produce quarterly profits. Nevertheless, the downturn in real estate markets has affected several of our borrowing relationships. We are working hard to accelerate our return to top tier performance levels."
For the third quarter just ended, items of significance included:
* The bank remained "Well Capitalized" with a risk-based capital ratio of approximately 11.36 percent. * Net interest margin, on a tax equivalent basis, was 4.67 percent, decreasing 21 basis points as compared to last quarter due to interest reversals and interest income lost from non-performing loans. * Non-performing assets increased to $61.5 million, or 4.2 percent of total assets, related primarily to loans adversely affected by the real estate downturn. * Provision for loan losses was $4.8 million, a decrease of $475 thousand from the prior quarter. This represents lost earnings after tax of $0.14 per fully diluted share. * Charge-offs of non-performing loans during the quarter totaled $8.6 million. Recoveries of previously charged-off loans totaled $364 thousand.
Anhorn continued stating, "Real estate values have declined. Concerns over the economy and stability of the financial markets have also affected the real estate market. We remain confident in the soundness of our bank and its potential. We are dealing aggressively with non-performing assets and are meticulously evaluating risk in our entire loan portfolio. During this most recent quarter, $8.6 million in non-performing loans were charged off and a $4.8 million loan loss provision was charged against earnings. We are focused on promoting our safety and soundness for the protection of our greatest asset -- our customers."
Jim Ford, President, added, "Our core deposits have remained relatively stable. We remain 'Well Capitalized' by all regulatory standards and, despite the narrowing of our net interest margin, continue to perform in the upper tier of our peer group of banks in margin performance. While the forward economic trend deviated from the expectations we held at the end of last year, we remain confident in our ability to use this period of consolidation in the industry to strengthen our competitive position in the markets we serve. We do this with a fresh approach in our marketing and service strategies and by continuing to focus on improving our operating efficiency. Our business footprint is sound and ripe with opportunity as the economy recovers. The potential for organic growth from existing branches in a number of our markets is significant and is driving much of our business development strategy at this point in time."
CREDIT QUALITY
Our Special Assets team is successfully working through various non-performing credit relationships as evidenced by the progress achieved this quarter in the successful resolution of a number of previously reported non-performing assets and one large relationship described in more detail below. With the receipt of new appraisals and in recognition of the current real estate values, $8.6 million in previously identified non-performing loans were charged off this quarter. After the charge-offs, our reserve for loan and lease losses remains strong at $21.0 million or 1.7 percent of total loans.
Total non-performing assets were $61.5 million at September 30, 2008, up from $41.9 million at June 30, 2008. Non-performing assets are concentrated in 11 relationships comprising $53.7 million or 87.3 percent of the total. Management continues to take a conservative, proactive approach in evaluating the current portfolio of loans, particularly in view of the ongoing volatility in real estate valuations. Consistent with our June 30, 2008 release, we provide below an updated summary addressing the status of previously reported non-performing assets and additions that occurred during the quarter.
The first previously reported relationship consists of multiple loans secured by real estate in northern California that totaled $14.1 million as of June 30, 2008. This relationship is now at $6.4 million as the result of a $1.0 million paydown and our decision to charge off $5.0 million during the quarter. Two additional loans totaling $1.7 million with separate sources of repayment were restored to accrual status and remain current. Foreclosure by another lender against our guarantor on an adjacent property during the second quarter and the borrower filing personal bankruptcy during the third quarter led to the actions we have taken. We intend to continue to work through foreclosure of the real estate and to ensure any bankruptcy proceeds available are properly applied to this relationship. A reserve for impairment on the remaining credit relationship had been previously established.
The second previously reported non-performing relationship is comprised of two purchased participation loans: the first is secured with approved residential lots and the second with unimproved land also in northern California. We purchased a minority position from two separate financial institutions, each with a national presence. The borrower is a well-known local real estate development company that was impacted by the decline in real estate activity in late 2007. One of the guarantors has since filed for personal bankruptcy. The $5.0 million credit was reported as non-performing with the December 31, 2007 earnings release. The related $7.3 million credit was placed on non-accrual status during the first quarter of 2008, at which time a new appraisal was obtained from the lead bank. As these two properties are in close proximity, a reserve for impairment was established in the second quarter of 2008 for both credits. During the third quarter, foreclosure was completed on the $5.0 million participation loan and, as a result of actions by the lead lender, $1.3 million was booked as Other Real Estate Owned with the balance being charged against the loan loss reserve. We are working with the lead bank on marketing this property. The second participation is in the final stages of foreclosure with a resolution expected during the fourth quarter.
The third previously reported relationship consists of two loans originally totaling $6.8 million that were acquired at the time of our merger with Stockmans in January of this year. The relationship was secured with undeveloped property in central and northern California and was identified and discussed in detail during our pre-merger due diligence of Stockmans. The northern California property, comprising $2.3 million of the total, was foreclosed on in the second quarter with a charge-off of $1.3 million and the remaining $1.0 million balance included as Other Real Estate Owned. During the third quarter, we have been actively marketing this property with interest expressed by several parties. The second credit consists of a $4.5 million credit secured by undeveloped real estate with a significant loan from a third-party investor group in second position behind our lien. The borrower continues to keep this loan current while both parties negotiate a workout. We had previously established a specific reserve for impairment on this credit, which management believes is sufficient given the value of the property as well as guarantor support.
The fourth previously reported relationship consisted of a $3.1 million credit secured with Class A commercial office space in the Portland, Oregon area. This credit was paid in full during the quarter with no loss sustained by the Bank.
The fifth previously reported relationship totaling $3.0 million is comprised of multiple loans secured by approved residential building lots and by completed and partially completed residential units, all situated in central Oregon. During this quarter, negotiations continued with the borrower to obtain the collateral and to restructure the remaining debt with a goal of avoiding any further loss. Once the Bank obtains the underlying collateral, it will be marketed and any deficiency pursued.
The sixth previously reported credit consists of notes totaling $2.8 million. The loans were for property acquisition and development as well as residential unit construction in central Oregon. Based on updated appraisals and cross collateral/cross default provisions, we do not anticipate any significant loss when we obtain the underlying collateral through foreclosure or restructuring of the debt. We have been working with the borrower to bring this relationship to a positive conclusion.
A number of credit relationships totaling $30.8 million were moved to non-performing status during the most recent quarter. The first of these credit relationships consists of multiple notes totaling $10.7 million, all secured by commercial property including an assisted living facility, commercially zoned land and a non-owner occupied commercial building. Two of the properties are in Oregon and one in Northern California. The borrower has experienced severe cash flow difficulties and is attempting to sell assets. We have obtained updated appraisals on the properties and, as a result, have established an impairment. Negotiations with the borrower are on-going and legal actions have been initiated.
The second relationship consists of two notes totaling $6.3 million. This relationship is secured by two residential developments in Central Oregon. Based on updated appraisals, a specific reserve for impairment has been established for these credits, and negotiations with the borrower continue.
The third relationship consists of multiple notes totaling $6.3 million. This borrower has been impacted by a real estate related business that failed with the downturn of the mortgage lending industry. He has been working with all of his creditors to establish an orderly plan to sell assets. Our collateral consists of residential development lots, a utility system infrastructure and other commercial property in Southern Oregon. We have agreed to a restructure of this credit and will be monitoring it closely for performance. Based on current collateral values, we anticipate no loss at this time.
The fourth credit relationship moved to non-performing status during the quarter consists of notes totaling $4.8 million. The notes are secured by residential lots or bare land in Central Oregon. Updated appraisals have been ordered and a specific reserve for impairment has been established based on management's evaluation of the collateral value.
The last of the new credit relationships moved to non-performing status this quarter is comprised of loans totaling $2.7 million. The collateral includes two commercial buildings and two completed spec homes in Southern Oregon. A restructure plan was in place during the third quarter; however, due to delays in the sale of collateral securing one of the loans, the relationship went past due over 90 days as of quarter end. We are working with the borrower on the restructure plan and anticipate a reduction of the debt during the fourth quarter. Based on appraised values of the remaining collateral, we anticipate no loss on this relationship.
As reported last quarter, the bank strengthened its concentration of resources directed at dealing with non-performing assets in late 2007 to provide a proactive, centralized and focused approach to expediting potential collections, recoveries, workouts and liquidations of criticized assets. The continuing results from these actions were evident during the most recent quarter with foreclosure actions commenced and liquidations scheduled or initiated. More importantly, this team is working closely with borrowers that are motivated to resolve their financial issues through properly collateralized restructures and workouts. In addition, the team is proactive in contacting distressed asset investors in anticipation of soliciting interest in acquiring notes or foreclosed property. The holding costs of certain other real estate owned are being reviewed as current volatile market conditions may warrant holding some foreclosed assets for future gains. With shareholder value in mind, our team will continue to evaluate these assets and act accordingly.
NET INTEREST MARGIN
Net interest income totaled $15.6 million for the quarter ended September 30, 2008, down slightly from $15.7 million for the previous quarter. The Company's tax adjusted net interest margin for the quarter ended September 30, 2008 was 4.67 percent, compared to 4.88 percent for the quarter ended June 30, 2008. The decline in the net interest margin is attributable to an increase in interest reversals of approximately $218 thousand related to loans moved to non-accrual status during the quarter and an increase of $217 thousand in interest income that would have otherwise been recorded on loans that were on non-accrual status during the quarter. These factors accounted for a 13 basis point decrease in what we otherwise would have reported. The balance of the decline in net interest income occurred primarily as a result of the yield on our investment portfolio declining due to maturities of higher yielding securities during the quarter. Nonetheless, we are confident that third quarter results will, once again, demonstrate that our net interest margin is among the strongest for our peer group of banks.
DEPOSIT & LOAN GROWTH
Gross outstanding loans at September 30, 2008 totaled $1.27 billion, essentially unchanged from the previous quarter's total. Total deposits amounted to $1.23 billion at September 30, 2008, up slightly from the $1.22 billion at the end of the previous quarter. Non-interest bearing checking account balances totaled $231 million or 18.8 percent of total deposits at September 30, 2008. Rich Hieb, Senior Executive Vice President and Chief Operating Officer, stated, "Although there is intense competition for core deposits, our 'People doing Business with People' approach remains the cornerstone to building solid relationships. Core deposit accounts continued to grow this quarter as depositors sought safety; and, we expect continued growth as depositors migrate towards solid community focused banks, and we become better known in our newer locations."
NON-INTEREST INCOME
Non-interest income increased $228 thousand, or 9.9 percent when compared to the same period in 2007, largely as a result of the acquisition of Stockmans Financial Group. On a sequential quarter basis, non-interest income declined $63 thousand or 2.4 percent with no dominant factor driving the decline.
NON-INTEREST EXPENSE
On a sequential quarter basis, non-interest expense declined $735 thousand. The majority of the decline is attributable to the absence in the third quarter of non-recurring expenses incurred during the second quarter, related to our acquisition and subsequent integration of Stockmans Bank to our Information Technology platform. Additionally, during the third quarter, we achieved a substantial reduction in credit portfolio related legal fees. The improvement in expense control positively influenced our efficiency ratio. This important ratio was 63.1 percent for the quarter ended September 30, 2008, compared to 66.2 percent from the immediately preceding quarter.
Non-interest expense increased $1.6 million from $9.8 million during the third quarter of 2007 to $11.4 million during the quarter ending September 30, 2008, primarily as a result of the acquisition of Stockmans in January of 2008.
CAPITAL
At September 30, 2008, PremierWest remained "Well Capitalized" as measured by all regulatory standards. John Anhorn stated, "Our previously announced intention to re-establish and sustain our top-tier earnings performance and to maintain our well-capitalized position while continuing our cash dividend program continues to be our primary focus. While we believe that all of the foregoing is achievable, we also recognize that safety and soundness is essential in maintaining customer confidence and is of the highest priority during this period of temporary turbulence in the financial markets. Accordingly, we will continually assess our profitability and capital growth objectives until the financial market environment returns to something that we believe is more normal."
ABOUT PREMIERWEST BANCORP
PremierWest Bancorp (Nasdaq:PRWT) is a financial services holding company headquartered in Medford, Oregon, and operates primarily through its subsidiary PremierWest Bank. PremierWest Bank offers expanded banking-related services through two subsidiaries, Premier Finance Company and PremierWest Investment Services, Inc.
PremierWest Bank was created following the merger of the Bank of Southern Oregon and Douglas National Bank in May, 2000. In April, 2001, PremierWest Bancorp acquired Timberline Bancshares, Inc. and its wholly-owned subsidiary, Timberline Community Bank, with eight branch offices located in Siskiyou County in northern California. In January, 2004, PremierWest acquired Mid Valley Bank with five branch offices located in the northern California counties of Shasta, Tehama and Butte. In January, 2008, PremierWest acquired Stockmans Financial Group, and its wholly owned subsidiary, Stockmans Bank, with five full service banking offices in the Sacramento, California area. During the last several years, PremierWest expanded into the Klamath Falls and Central Oregon communities of Bend and Redmond, and into Yolo, Butte, and Placer counties in California.
DISCLOSURE REGARDING FORWARD LOOKING STATEMENTS
This press release includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to certain risk factors, including those set forth from time to time in PremierWest's filings with the SEC. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. We make forward-looking statements in this press release about the prospects for earnings growth, deposit and loan growth, capital levels, our dividend program, expected peer rankings, the effective management of our credit quality, the collectability of identified non-performing loans and the adequacy of our Allowance for Loan Losses.
PREMIERWEST BANCORP
FINANCIAL HIGHLIGHTS
(All amounts in 000's, except per share data)
(unaudited)
EARNINGS AND PER SHARE DATA
For the Three Months Ended %
September 30 2008 2007 Change Change
---------- ---------- ---------- ------
Interest income $ 22,703 $ 21,540 $ 1,163 5.4%
Interest expense 7,149 7,250 (101) -1.4%
---------- ---------- ----------
Net interest income 15,554 14,290 1,264 8.8%
Provision for possible
loan losses 4,750 225 4,525 2011.1%
Non-interest income 2,536 2,308 228 9.9%
Non-interest expense 11,420 9,828 1,592 16.2%
---------- ---------- ----------
Pre-tax income 1,920 6,545 (4,625) -70.7%
Provision for income taxes 632 2,502 (1,870) -74.7%
---------- ---------- ----------
Net income $ 1,288 $ 4,043 $ (2,755) -68.1%
========== ========== ==========
Basic earnings per share $ 0.05 $ 0.23 $ (0.18) -78.3%
========== ========== ==========
Diluted earnings per share $ 0.05 $ 0.22 $ (0.17) -77.3%
========== ========== ==========
Average shares outstanding
--basic 22,398,418 17,007,857 5,390,561 31.7%
Average shares outstanding
--diluted(1) 22,424,008 18,449,381 3,974,627 21.5%
For the Nine Months Ended
September 30
Interest income $ 68,357 $ 61,237 $ 7,120 11.6%
Interest expense 21,997 19,799 2,198 11.1%
---------- ---------- ----------
Net interest income 46,360 41,438 4,922 11.9%
Provision for possible
loan losses 13,050 500 12,550 2510.0%
Non-interest income 7,386 6,610 776 11.7%
Non-interest expense 35,049 29,173 5,876 20.1%
---------- ---------- ----------
Pre-tax income 5,647 18,375 (12,728) -69.3%
Provision for income taxes 1,911 7,023 (5,112) -72.8%
---------- ---------- ----------
Net income $ 3,736 $ 11,352 $ (7,616) -67.1%
========== ========== ==========
Basic earnings per share $ 0.16 $ 0.65 $ (0.49) -75.4%
========== ========== ==========
Diluted earnings per share $ 0.16 $ 0.61 $ (0.45) -73.8%
========== ========== ==========
Average shares
outstanding--basic 21,905,440 17,022,356 4,883,084 28.7%
Average shares outstanding
--diluted(1) 21,948,588 18,512,521 3,436,067 18.6%
For the
three months
ended
June 30, %
2008 Change Change
---------------------- ------
Interest income $ 22,716 $ (13) -0.1%
Interest expense 6,977 172 2.5%
----------------------
Net interest income 15,739 (185) -1.2%
Provision for possible loan losses 5,225 (475) -9.1%
Non-interest income 2,599 (63) -2.4%
Non-interest expense 12,155 (735) -6.0%
----------------------
Pre-tax income 958 962 100.4%
Provision for income taxes 313 319 101.9%
----------------------
Net income $ 645 $ 643 99.7%
======================
Basic earnings per share $ 0.03 $ 0.02 66.7%
======================
Diluted earnings per share $ 0.03 $ 0.02 66.7%
======================
Average shares outstanding--basic 22,390,198 8,220 0.0%
Average shares outstanding--diluted(1) 22,396,475 27,533 0.1%
(1) Conversion of the Company's preferred stock would be antidilutive
as of June 30, and September 30, 2008. Hence, fully diluted average
shares outstanding have been adjusted at June 30 and September 30,
2008, accordingly despite the fact that the preferred shares are
mandatorily convertible in November 2008.
SELECTED FINANCIAL RATIOS
(annualized)
For the
three
months
ended
For the Three Months Ended June 30,
September 30 2008 2007 Change 2008 Change
------ ------- ------- ------- ------
Yield on average gross
loans(1) 6.95% 8.63% (1.68) 7.11% (0.16)
Yield on average
investments(1) 2.96% 5.02% (2.06) 4.01% (1.05)
Total yield on average
earning assets(1) 6.81% 8.60% (1.79) 7.03% (0.22)
Cost of average interest
bearing deposits 2.60% 3.64% (1.04) 2.65% (0.05)
Cost of average borrowings 4.44% 5.61% (1.17) 4.83% (0.39)
Cost of average total
deposits and borrowings 2.20% 2.98% (0.78) 2.23% (0.03)
Cost of average interest
bearing liabilities 2.70% 3.75% (1.05) 2.74% (0.04)
Net interest spread 4.61% 5.62% (1.01) 4.80% (0.19)
Net interest margin(1) 4.67% 5.72% (1.05) 4.88% (0.21)
Net (charge-offs) recoveries
to average loans -0.98% 0.02% (1.00) 0.35% (1.33)
Allowance for loan losses to
loans 1.65% 1.14% 0.51 1.92% (0.27)
Allowance for loan losses to
non-performing loans 35.64% 275.91% (240.27) 60.06% (24.42)
Non-performing loans to
total loans 4.64% 0.41% 4.23 3.19% 1.45
Non-performing assets to
total assets 4.17% 0.37% 3.80 2.81% 1.36
Return on average equity 2.70% 12.84% (10.14) 1.37% 1.33
Return on average assets 0.34% 1.46% (1.12) 0.18% 0.16
Efficiency ratio(2) 63.13% 59.21% 3.92 66.17% (3.04)
For the Nine Months Ended
September 30
Yield on average gross
loans(1) 7.21% 8.64% (1.43)
Yield on average
investments(1) 3.72% 5.37% (1.65)
Total yield on average
earning assets(1) 7.11% 8.60% (1.49)
Cost of average interest-
bearing deposits 2.80% 3.53% (0.73)
Cost of average borrowings 4.99% 5.67% (0.68)
Cost of average total
deposits and borrowings 2.36% 2.87% (0.51)
Cost of average interest-
bearing liabilities 2.90% 3.63% (0.73)
Net interest spread 4.75% 5.73% (0.98)
Net interest margin(1) 4.83% 5.83% (1.00)
Net (charge-offs) recoveries
to average loans -1.01% 0.02% (1.03)
Allowance for loan losses to
loans 1.65% 1.14% 0.51
Allowance for loan losses to
non-performing loans 35.64% 275.91% (240.27)
Non-performing loans to
total loans 4.64% 0.41% 4.23
Non-performing assets to
total assets 4.17% 0.37% 3.80
Return on average equity 2.70% 12.46% (9.76)
Return on average assets 0.34% 1.44% (1.10)
Efficiency ratio(2) 65.21% 60.72% 4.49
(1) Tax equivalent
(2) Non-interest expense divided by net interest income plus
non-interest income
PREMIERWEST BANCORP
FINANCIAL HIGHLIGHTS
(All amounts in 000's, except per share data)
(unaudited)
BALANCE SHEET %
At September 30 2008 2007 Change Change
---------- ---------- ---------- ------
Fed funds sold and
investments $ 43,692 $ 8,188 $ 35,503 433.6%
---------- ---------- ----------
Gross loans 1,268,536 1,002,441 266,095 26.5%
Allowance for loan losses (20,960) (11,387) (9,573) 84.1%
---------- ---------- ----------
Net loans 1,247,576 991,054 256,522 25.9%
Other assets 181,951 115,671 66,281 57.3%
---------- ---------- ----------
Total assets $1,473,219 $1,114,913 $ 358,306 32.1%
========== ========== ==========
Non-interest-bearing
deposits $ 230,619 $ 193,666 $ 36,953 19.1%
Interest-bearing deposits 995,299 732,735 262,564 35.8%
---------- ---------- ----------
Total deposits 1,225,918 926,401 299,517 32.3%
Borrowings 44,281 52,098 (7,817) 15.0%
Other liabilities 14,730 11,266 3,464 30.7%
Stockholders' equity 188,290 125,148 63,142 50.5%
---------- ---------- ----------
Total liabilities and
stockholders' equity $1,473,219 $1,114,913 $ 358,306 32.1%
========== ========== ==========
Period end shares
outstanding(1) 23,572,811 18,164,288 5,408,523 29.8%
Book value per share $ 8.04 $ 6.89 $ 1.15 16.7%
Tangible book value per
share $ 4.74 $ 5.65 $ (0.91) -16.1%
Allowance for loan losses:
Balance beginning of
period $ 11,450 $ 10,877 $ 573 5.3%
Balance-sheet
reclassification(2) -- (255) 255 nm
Finance portfolio
purchased(3) -- 436 (436) nm
Acquired from Stockmans
Bank merger 9,112 -- 9,112 nm
Provision for loan losses 13,050 500 12,550 2510.0%
Net (charge-offs)
recoveries (12,652) (171) (12,481) 7298.8%
---------- ---------- ----------
Balance end of period $ 20,960 $ 11,387 $ 9,573 84.1%
========== ========== ==========
Non-performing assets:
Non-performing loans $ 55,864 $ 3,471 $ 52,393 1509.4%
Real estate owned 2,669 -- 2,669 nm
90-day past due not on
non-accrual 2,948 656 2,292 349.4%
---------- ---------- ----------
Total non-performing
assets $ 61,481 $ 4,127 $ 57,354 1389.7%
========== ========== ==========
Balance
Sheet at
June 30, %
2008 Change Change
---------- ---------- ------
Fed funds sold and investments $ 38,102 $ 5,589 14.7%
---------- ----------
Gross loans 1,273,679 (5,143) -0.4%
Allowance for loan losses (24,423) 3,463 -14.2%
---------- ----------
Net loans 1,249,256 (1,680) -0.1%
Other assets 202,572 (20,620) -10.2%
---------- ----------
Total assets $1,489,930 $ (16,711) -1.1%
========== ==========
Non-interest-bearing deposits $ 234,672 $ (4,053) -1.7%
Interest-bearing deposits 986,139 9,160 0.9%
---------- ----------
Total deposits 1,220,811 5,107 0.4%
Borrowings 66,433 (22,152) -33.3%
Other liabilities 14,398 332 2.3%
Stockholders' equity 188,288 2 0.0%
---------- ----------
Total liabilities and stockholders'
equity $1,489,930 $ (16,711) -1.1%
========== ==========
Period end shares outstanding(1) 23,561,349 11,462 nm
Book value per share $ 7.99 $ 0.05 0.6%
Tangible book value per share $ 4.67 $ 0.07 1.5%
Allowance for loan losses:
Balance beginning of period $ 11,450 $ -- nm
Balance-sheet reclassification(2) -- -- nm
Finance portfolio purchased(3) -- -- nm
Acquired from Stockmans Bank merger 9,112 -- nm
Provision for loan losses 8,300 4,750 57.2%
Net (charge-offs) recoveries (4,439) (8213) 185.0%
---------- ----------
Balance end of period $ 24,423 $ (3,463) -14.2%
========== ==========
Non-performing assets:
Non-performing loans $ 40,532 $ 15,332 37.8%
Real estate owned 1,244 1,425 114.5%
90-day past due not on non-accrual 130 2,818 2167.7%
---------- ----------
Total non-performing assets $ 41,906 $ 19,575 46.7%
========== ==========
Notes:
(1) Amount includes 11,000 shares of preferred stock issued
November 17, 2003 as if converted into common stock at a
conversion ratio of 106.35 to 1 for a total of 1,169,925 common
shares.
(2) Amount reclassified from the allowance for loan losses to other
liabilities in accordance with Financial Accounting Standard
No. 5. The amount reclassified represents the off-balance sheet
credit exposure related to unfunded commitments to lend and
letters of credit.
(3) Amount resulting from the purchase of a consumer finance loan
portfolio on June 29, 2007.
For the Three Months Ended %
September 30 2008 2007 Change Change
---------- ---------- --------- ------
Average fed funds sold and
investments $ 44,074 $ 9,319 $ 34,755 372.9%
Average loans, gross 1,284,678 990,231 294,447 29.7%
Average total assets 1,495,529 1,102,091 393,438 35.7%
Average non-interest-bearing
deposits 236,220 198,045 38,175 19.3%
Average interest-bearing
deposits 997,605 724,993 272,612 37.6%
Average total deposits 1,233,825 923,038 310,787 33.7%
Average total borrowings 56,936 42,654 14,282 33.5%
Average stockholders' equity 189,952 124,962 64,990 52.0%
For the Nine Months Ended
September 30
Average fed funds sold and
investments $ 38,434 $ 10,412 $ 28,022 269.1%
Average loans, gross 1,250,709 945,424 305,285 32.3%
Average total assets 1,449,040 1,056,148 392,892 37.2%
Average non-interest-bearing
deposits 232,435 194,117 38,318 19.7%
Average interest-bearing
deposits 966,622 696,479 270,143 38.8%
Average total deposits 1,199,057 890,596 308,461 34.6%
Average total borrowings 45,631 33,198 12,433 37.5%
Average stockholders' equity 184,909 121,852 63,057 51.7%
For the
three months
ended
June 30, %
2008 Change Change
---------- --------- ------
Average fed funds sold and investments $ 36,883 $ 7,191 19.5%
Average loans, gross 1,268,015 16,663 1.3%
Average total assets 1,470,640 24,889 1.7%
Average non-interest-bearing deposits 238,714 (2,494) -1.0%
Average interest-bearing deposits 978,392 19,213 2.0%
Average total deposits 1,217,105 16,720 1.4%
Average total borrowings 45,580 11,356 24.9%
Average stockholders' equity 190,852 (900) -0.5%
LOANS BY CATEGORY
(All amounts in 000's)
(unaudited)
9/30/2008 6/30/2008
----------------------
Agricultural/Farm $ 47,473 $ 60,009
Commercial and Industrial 265,776 272,689
Commercial Real Estate - Owner Occupied 253,668 246,048
Commercial Real Estate - Non-Owner Occupied 592,125 584,328
Consumer 105,787 104,621
Other 3,708 5,983
----------------------
$1,268,537 $1,273,678
======================
Commercial Real Estate
Owner Occupied
--------------
Commercial Term $ 219,977 $ 211,532
Commercial Construction 20,284 20,001
Single Family Residential Construction
Oregon 1,071 1,271
California 12,336 13,244
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Total Owner Occupied 253,668 246,048
----------------------
Non-Owner Occupied
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Commercial Term $ 302,638 $ 300,737
Commercial Construction 62,491 64,519
Single Family Residential Construction
Oregon
Pre-Sold 3,093 2,962
Speculative 4,937 6,940
Builder Inventory 18,526 10,987
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Total Oregon 26,556 20,889
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California
Pre-Sold 1,779 701
Speculative 4,033 5,542
Builder Inventory 11,131 13,578
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Total California 16,943 19,821
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Commercial - Land Acquisition and Development 30,749 25,059
Commercial - Land Only 48,925 56,418
Residential - Land Acquisition and Development 103,823 96,885
----------------------
Total Non-Owner Occupied $ 592,125 $ 584,328
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