MEDFORD, Ore., Aug. 11, 2009 (GLOBE NEWSWIRE) -- PremierWest Bancorp (Nasdaq:PRWT) announced results for the second quarter of 2009 as follows:
For the three months ended June 30, 2009:
* Loss per common share for the three month period of $1.15 on
net loss of $28.6 million, compared with earnings per common
share of $0.02 on net income of $579 thousand for the same
period in 2008.
* Strong capital position with all regulatory ratios well above
published requirements for "Well Capitalized" status with
risk-based capital at 11.55%.
* Net interest margin of 4.33%.
* Non-performing loans of $103.4 million and other real estate
owned of $14.6 million.
* Provision expense of $50.4 million and charge-offs, net of
recoveries, of $35.7 million.
* Reserve for loan and lease losses of $40.3 million or 3.36%
of gross loans.
* Efficiency ratio of 78.4%.
For the six months ended June 30, 2009:
* Loss per common share for the six month period of $1.32 on
net loss of $32.5 million, compared with earnings per common
share of $0.10 on net income of $2.3 million for the same
period in 2008.
* Net interest margin of 4.37%.
* Growth in deposits of $37.5 million, 6.2% annualized growth,
with significant growth occurring in core deposit categories.
* Provision expense of $61.1 million and charge-offs, net of
recoveries, of $37.9 million.
James M. Ford, President and Chief Executive Officer, remarked, "We are very disappointed with our operating results. The recession has proven to be far more long-lasting than anticipated, and our profitability has been adversely affected. We have continued to increase our loan loss reserve through added provision expense in response to an increasing level of non-performing loans. On the brighter side, the source of our ultimate earnings power, net interest margin, has remained strong at 4.33%. We know that recessions ultimately subside, and we believe the bulk of the additional expenses associated with the credit issues we have faced in recent months will subside as well. In the meantime, we are working very hard to resolve borrower issues and to reduce the level of non-performing assets."
CREDIT QUALITY AND NON-PERFORMING ASSETS
During the quarter just ended, we recorded $50.4 million in provision expense and charged-off $36.0 million of non-performing loans. Recoveries of previously charged-off loans totaled $241 thousand for the quarter. Our reserve for loan and lease losses totaled $40.3 million or 3.36% of gross loans. Non-performing loans rose to $103.4 million or 8.6% of gross loans at June 30, 2009.
The table below summarizes the Company's non-performing loans (NPL) by loan type and geographic region:
Total non-performing
loans by type and
geographic region
(Dollars in 000's)
June 30, 2009
-----------------------------------------------------
Non-performing Loans
-----------------------------------------------------
Mid-
Southern Central Northern Sacramento
Oregon Oregon California Valley Totals*
-----------------------------------------------------
Agricultural
/Farm $ -- $ -- $ 391 $ -- $ 391
C&I 4,634 562 -- 2,306 7,502
CRE 18,308 22,266 1,887 12,039 54,500
Residential RE
construction 5,269 9,264 7,464 12,423 34,420
Residential RE 2,681 -- 1,667 2,024 6,372
Consumer RE -- -- -- -- --
Consumer 105 123 7 -- 235
------------------------------------------------------
Total
non-
performing
loans $ 30,997 $ 32,215 $ 11,416 $ 28,792 $ 103,420
======================================================
Non-performing
loans to total
loans 5.9% 13.4% 7.5% 10.4% 8.6%
Total funded
loans $526,722 $241,290 $152,771 $275,715 $1,196,498
June 30, 2009
------------------------
Percent
NPL to
Funded
Funded Loan
Loan Totals by
Totals Category
----------------------------------------
Agricultural
/Farm $ 49,580 0.8%
C&I 236,178 3.2%
CRE 754,601 7.2%
Residential RE
construction 41,253 83.4%
Residential RE 31,860 20.0%
Consumer RE 33,080 0.0%
Consumer 49,946 0.5%
------------
Total
non-
performing
loans $1,196,498
============
* Excludes Other category comprised of credit cards, overdrafts,
leases and other adjustments such as deferred loan fees, etc., in
the amount of $4.6 million.
The Company's principal source of credit stress is real estate related loans. Borrowers either involved in real estate or having secured loans with real estate have been vulnerable to both the ongoing economic downturn and to declining real estate values. Over 92 percent of our non-performing loan total of $103.4 million is directly related to real estate in the form of commercial or residential real estate development loans. At June 30, 2009, more than $22.3 million of our real estate related non-performing loans remain current as to principal and interest payments, but were placed on non-accrual status due to the absence of evidence supporting the borrowers' ongoing ability to discharge their loan obligations.
Ongoing actions taken to address the credit situation include:
* Credit monitoring activities have escalated since the
beginning of the fourth quarter of 2008 to provide early
warning of possible borrower distress that could lead to
loan payment defaults. The pre-emptive credit monitoring
and early warnings are intended to provide additional time
to seek viable alternatives with the borrower. For those
borrowers who have experienced payment problems and wish to
seek a workable arrangement with the Company, management
and staff are actively involved in seeking loan restructuring
and other loan modification options and obtaining additional
collateral coverage. We believe that these actions have and
will continue to facilitate recovery strategies with
cooperative borrowers. In those instances where alternatives
have been exhausted or determined to be impractical and
default under the terms of the loans has occurred,
foreclosure actions are pursued.
* An evaluation of a significant portion of our loan portfolio was
completed during the second quarter by the independent firm that
had conducted a similar review of our acquisition and development
portfolio during the fourth quarter of 2008 to confirm the
reliability of our internal reviews.
* Senior management continues to actively guide our line
managers in dealing with resolution of non-performing asset
problems.
Rich Hieb, Senior Executive Vice President, stated, "Resolving the numerous problem loans will take a considerable amount of effort and time, but our efforts are producing results. We were active in marketing and selling smaller OREO properties throughout the second quarter with dispositions totaling $1.9 million. Following the end of the quarter, we were successful in selling one of our non-performing loans for $5.5 million. In addition, we have recently seen the removal of a legal impediment to foreclosure of a number of high value properties for which foreclosure is planned. This should enable us to complete the foreclosure on these properties and proceed with selling the collateral."
LOAN AND DEPOSIT GROWTH
Gross loans as of June 30, 2009 were $1.20 billion, down $46.9 million from the balance as of December 31, 2008. Charge-offs of non-performing loans with no significant offset from new loan generation were the principal reason for the decline.
Deposits at June 30, 2009 were $1.25 billion, up $37.5 million from year end 2008. The increase was largely the result of ongoing branch campaigns to stimulate core deposit growth. Non-interest bearing demand deposits were up over the year end 2008 total by $15.3 million to a total of $244.1 million or 19.5% of total deposits. Non-interest bearing demand deposits have been growing at an annualized rate of 13.4% since the end of 2008. Similarly, the total of NOW, money market and savings accounts grew by $17.7 million, or an 8.5% annualized rate, to a total of $434.3 million. Joe Danelson, Executive Vice President & Chief Banking Officer, remarked, "I am extremely pleased with the results our branch personnel have achieved. Their personable approach with bank customers, both existing and potential, is producing growth that is key to our ongoing success, particularly as the current recession ends."
NET INTEREST INCOME
Net interest income was relatively strong during the second quarter of 2009 at $14.3 million, despite the impact on yields from higher non-performing loan totals. Net interest margin was 4.33% during the second quarter, down slightly from the 4.41% recorded during the preceding quarter.
Yield on earning assets for the quarter just ended was 5.82% compared to 6.13% for the immediately preceding quarter. The cost of average total deposits and borrowings for the quarter ended June 30, 2009 was 1.54% compared to 1.79% for the quarter ended March 31, 2009.
Mike Fowler, Executive Vice President & Chief Financial Officer, commented, "Despite a highly competitive deposit gathering environment in both Oregon and California and high levels of non-performing loans, our net interest margin has remained relatively strong this year. Since this is the primary engine of our profitability, I am optimistic that a transition to our historical rates of return is simply awaiting resolution of the recession and related credit issues."
NON-INTEREST INCOME
During the second quarter of 2009, PremierWest recorded non-interest income of $2.6 million, up $124 thousand from the preceding quarter and unchanged from the same period last year. The increase from the previous quarter was primarily related to increased saleable mortgage loan fees and deposit service charge growth.
NON-INTEREST EXPENSE
Non-interest expense during the quarter just ended was $13.2 million, an increase of $645 thousand or 5.1% when compared to the preceding quarter and 9.0% when compared to the same period of 2008. The principal increases in non-interest expense were the special deposit fee assessment imposed by the FDIC to restore the deposit insurance fund and increased problem loan and OREO expenses. The FDIC assessment added $581 thousand to second quarter expenses while problem loan and OREO expenses were up $215 thousand from the immediately preceding quarter.
CAPITAL OUTLOOK
PremierWest remained "Well Capitalized" by published regulatory standards as of June 30, 2009. Nonetheless, our Board of Directors concluded that the common dividend should be eliminated until such time as we see a return to profitability and we satisfy the dividend payment conditions accompanying our acceptance of TARP Capital Purchase Program funding. It is essential that the Company maintain a strong capital position in order to prosper over the long run.
Jim Ford commented, "We've shown resilience in the face of adversity in recent times given the extended recession and the credit environment. For the first time, we have begun to hear cautious optimism from public commentators regarding moderation in the rate of decline in economic activity and the likelihood of economic growth during the second half of 2009. While we still have a number of challenges through which we must work, notably reducing the level of non-performing assets, we have the team, the work ethic and the game plan to accomplish what we must. With resumption of more normal economic times, I expect that we will be positioned to resume our historical levels of financial performance and returns to our shareholders. We are focused on that objective and are working very hard to speed the recovery in profitability to PremierWest Bancorp."
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. Most recently, PremierWest acquired two new branches, one in Grass Valley, California and the other in Davis, 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)
STATEMENT OF OPERATIONS
AND EARNINGS (LOSS) AND PER COMMON SHARE DATA
For the Three Months
Ended June 30
2009 2008 Change % Change
-------- --------- -------- ---------
Interest income $ 19,231 $ 22,716 $ (3,485) -15.3%
Interest expense 4,920 6,977 (2,057) -29.5%
-------- --------- --------
Net interest income 14,311 15,739 (1,428) -9.1%
Loan loss provision 50,390 5,225 45,165 864.4%
Non-interest income 2,590 2,600 (10) -0.4%
Non-interest expense 13,246 12,152 1,094 9.0%
-------- --------- --------
Pre-tax income (loss) (46,735) 962 (47,697) -4958.1%
Provision (benefit)
for income taxes (18,750) 314 (19,064) -6071.3%
-------- --------- --------
Net income (loss) $(27,985) $ 648 $(28,633) -4418.7%
======== ========= ========
Net income (loss) $(27,985) $ 648 $(28,633) -4418.7%
Less preferred
dividend and discount
accretion (614) (69) (545) 789.9%
-------- --------- --------
Net income (loss)
applicable to
common
shareholders $(28,599) $ 579 $(29,178) -5039.4%
======== ========= ========
Basic earnings (loss)
per common share(1) $ (1.15) $ 0.02 $ (1.17) -5850.0%
======== ========= ========
Diluted earnings (loss)
per common share(1) $ (1.15) $ 0.02 $ (1.17) -5850.0%
======== ========= ========
Average common shares
outstanding--basic(1) 24,766,928 23,509,708 1,257,220 5.3%
Average common shares
outstanding--diluted(1) 24,766,928 23,516,299 1,250,629 5.3%
For the
Three
Months
Ended
March 31,
2009 Change % Change
--------- --------- ---------
Interest income $ 20,059 $ (828) -4.1%
Interest expense 5,666 (746) -13.2%
-------- ---------
Net interest income 14,393 (82) -0.6%
Loan loss provision 10,700 39,690 370.9%
Non-interest income 2,466 124 5.0%
Non-interest expense 12,601 645 5.1%
-------- ---------
Pre-tax income (loss) (6,442) (40,293) -625.5%
Provision (benefit)
for income taxes (2,835) (15,915) -561.4%
-------- ---------
Net income (loss) $ (3,607) $ (24,378) -675.9%
======== =========
Net income (loss) $ (3,607) $ (24,378) -675.9%
Less preferred
dividend and
discount
accretion (372) (242) 65.1%
-------- ---------
Net income (loss)
applicable to
common
shareholders $ (3,979) $ (24,620) -618.7%
======== =========
Basic earnings (loss)
per common share(1) $ (0.16) $ (0.99) -618.8%
======== =========
Diluted earnings (loss)
per common share(1) $ (0.16) $ (0.99) -618.8%
======== =========
Average common shares
outstanding--basic(1) 24,766,495 433 0.0%
Average common shares
outstanding--diluted(1) 24,766,495 433 0.0%
For the Six Months
Ended June 30
2009 2008 Change % Change
-------- --------- -------- ---------
Interest income $ 39,290 $ 45,654 $ (6,364) -13.9%
Interest expense 10,586 14,848 (4,262) -28.7%
-------- --------- --------
Net interest income 28,704 30,806 (2,102) -6.8%
Loan loss provision 61,090 8,300 52,790 636.0%
Non-interest income 5,056 4,850 206 4.2%
Non-interest expense 25,847 23,626 2,221 9.4%
-------- --------- --------
Pre-tax income (loss) (53,177) 3,730 (56,907) -1525.7%
Provision (benefit) for
income taxes (21,585) 1,279 (22,864) -1787.6%
-------- --------- --------
Net income (loss) $(31,592) $ 2,451 $(34,043) -1388.9%
======== ========= ========
Net income (loss) $(31,592) $ 2,451 $(34,043) -1388.9%
Less preferred dividend
and discount accrection (941) (138) (803) 581.9%
-------- --------- --------
Net income (loss)
applicable to common
shareholders $(32,533) $ 2,313 $(34,846) -1506.5%
======== ========= ========
Basic earnings (loss)
per common share(1) $ (1.32) $ 0.10 $ (1.42) -1420.0%
======== ========= ========
Diluted earnings (loss)
per common share(1) $ (1.32) $ 0.10 $ (1.42) -1420.0%
======== ========= ========
Average common shares
outstanding--basic(1) 24,720,994 22,739,017 1,981,977 8.7%
Average common shares
outstanding--diluted(1) 24,720,994 22,789,760 1,931,234 8.5%
(1) Share and per share amounts adjusted for the 5% stock dividend,
effective April 15, 2009, for the periods presented.
SELECTED FINANCIAL RATIOS
(annualized) (unaudited)
For the
Three
Months
For the Three Months Ended
Ended June 30 March 31,
2009 2008 Change 2009 Change
------ ------ ------ -------- -------
Yield on average
gross loans (1) 6.11% 7.10% (0.99) 6.32% (0.21)
Yield on average
investments (1) 1.75% 4.01% (2.26) 2.22% (0.47)
Total yield on
average earning
assets (1) 5.82% 7.02% (1.20) 6.13% (0.31)
Cost of average
interest bearing
deposits 1.78% 2.65% (0.87) 2.11% (0.33)
Cost of average
borrowings 5.83% 4.83% 1.00 3.88% 1.95
Cost of average
total deposits and
borrowings 1.54% 2.23% (0.69) 1.79% (0.25)
Cost of average
interest bearing
liabilities 1.90% 2.74% (0.84) 2.19% (0.29)
Net interest spread 3.92% 4.28% (0.36) 3.94% (0.02)
Net interest
margin (1) 4.33% 4.89% (0.56) 4.41% (0.08)
Net (charge-offs)
recoveries to
average gross loans -2.88% -0.33% (2.55) -0.17% (2.71)
Allowance for loan
losses to gross
loans 3.36% 1.92% 1.44 2.07% 1.29
Allowance for loan
losses to non-
performing loans 38.97% 60.06% (21.09) 30.54% 8.43
Non-performing loans
to gross loans 8.61% 3.19% 5.42 6.78% 1.83
Non-performing
assets to total
assets 7.98% 2.81% 5.17 6.24% 1.74
Return on average
common equity -67.16% 1.28% (68.44) -9.29% (57.87)
Return on average
assets -7.45% 0.18% (7.63) -0.98% (6.47)
Efficiency ratio(2) 78.38% 66.26% 12.12 74.74% 3.64
For the Six Months
Ended June 30
2009 2008 Change
------ ------ ------
Yield on average
gross loans (1) 6.22% 7.34% (1.12)
Yield on average
investments (1) 1.94% 3.88% (1.94)
Total yield on
average earning
assets (1) 5.98% 7.25% (1.27)
Cost of average
interest bearing
deposits 1.94% 2.91% (0.97)
Cost of average
borrowings 4.63% 5.40% (0.77)
Cost of average
total deposits and
borrowings 1.67% 2.44% (0.77)
Cost of average
interest bearing
liabilities 2.04% 3.01% (0.97)
Net interest spread 3.94% 4.24% (0.30)
Net interest
margin (1) 4.37% 4.91% (0.54)
Net (charge-offs)
recoveries to
average gross loans -3.03% -0.35% (2.68)
Allowance for loan
losses to gross
loans 3.36% 1.92% 1.44
Allowance for loan
losses to non-
performing loans 38.97% 60.06% (21.09)
Non-performing loans
to gross loans 8.61% 3.19% 5.42
Non-performing assets
to total assets 7.98% 2.81% 5.17
Return on average
common equity -37.67% 2.68% (40.35)
Return on average
assets -4.25% 0.34% (4.59)
Efficiency ratio (2) 76.56% 66.26% 10.30
(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 June 30 2009 2008 Change % Change
---------- ---------- ---------- --------
Fed funds sold and
investments $ 87,047 $ 38,708 $ 48,339 124.9%
---------- ---------- ----------
Gross loans, net of
deferred fees 1,199,776 1,272,858 (73,082) -5.7%
Allowance for loan
losses (40,300) (24,423) (15,877) 65.0%
---------- ---------- ----------
Net loans 1,159,476 1,248,435 (88,959) -7.1%
Other assets 231,517 202,787 28,730 14.2%
---------- ---------- ----------
Total assets $1,478,040 $1,489,930 $ (11,890) -0.8%
========== ========== ==========
Non-interest-bearing
deposits $ 244,083 $ 234,672 $ 9,411 4.0%
Interest-bearing
deposits 1,004,688 986,139 18,549 1.9%
---------- ---------- ----------
Total deposits 1,248,771 1,220,811 27,960 2.3%
Borrowings 30,960 66,433 (35,473) -53.4%
Other liabilities 12,289 14,398 (2,109) -14.6%
Stockholders' equity 186,020 188,288 (2,268) -1.2%
---------- ---------- ----------
Total liabilities and
stockholders' equity $1,478,040 $1,489,930 $ (11,890) -0.8%
========== ========== ==========
Period end common
shares outstanding 24,766,928 23,517,672 1,249,256 5.3%
Period end common
shares outstanding,
all preferred shares
or warrant converted
to common(1) 25,857,313 24,746,093 1,111,220 4.5%
Book value per common
share (excluding
preferred) $ 5.83 $ 7.63 $ (1.80) -23.6%
Tangible book value
per common share
(excluding preferred) $ 3.02 $ 4.46 $ (1.44) -32.3%
Allowance for loan
losses:
Balance beginning
of period $ 17,157 $ 11,450 $ 5,707 49.8%
Acquired from
Stockmans Bank
merger -- 9,112 (9,112) nm
Provision for
loan losses 61,090 8,300 52,790 636.0%
Net (charge-offs)
recoveries (37,947) (4,439) (33,508) 754.9%
---------- ---------- ----------
Balance end of period $ 40,300 $ 24,423 $ 15,877 65.0%
========== ========== ==========
Non-performing assets:
Loans in nonaccrual
status $ 103,185 $ 40,532 $ 62,653 154.6%
Impaired loans
in process of
collection -- -- -- nm
Other real estate
owned 14,588 1,244 13,344 1072.7%
90-days past due not
on non-accrual 235 130 105 80.8%
---------- ---------- ----------
Total non-performing
assets $ 118,008 $ 41,906 $ 76,102 181.6%
========== ========== ==========
Balance Sheet
at March 31,
2009 Change % Change
---------- ---------- --------
Fed funds sold and investments $ 79,037 $ 8,010 10.1%
---------- ----------
Gross loans, net of deferred fees 1,237,518 (37,742) -3.0%
Allowance for loan losses (25,659) (14,641) 57.1%
---------- ----------
Net loans 1,211,859 (52,383) -4.3%
Other assets 205,875 25,642 12.5%
---------- ----------
Total assets $1,496,771 $ (18,731) -1.25%
========== ==========
Non-interest-bearing deposits $233,447 $10,636 4.6%
Interest-bearing deposits 1,005,865 (1,177) -0.1%
---------- ----------
Total deposits 1,239,312 9,459 0.8%
Borrowings 30,965 (5) 0.0%
Other liabilities 12,079 210 1.7%
Stockholders' equity 214,415 (28,395) -13.2%
---------- ----------
Total liabilities and stockholders'
equity $1,496,771 $ (18,731) -1.3%
========== ==========
Period end common shares
outstanding 24,766,928 -- 0.0%
Period end common shares
outstanding, all
preferred shares or warrant
converted to common (1) 25,857,313 -- 0.0%
Book value per common share
(excluding preferred) $ 6.98 $ (1.15) -16.5%
Tangible book value per common
share (excluding preferred) $ 4.05 $ (1.03) -25.4%
Allowance for loan losses:
Balance beginning of period $ 17,157 $ -- 0.0%
Acquired from Stockmans Bank
merger -- -- nm
Provision for loan losses 10,700 50,390 470.9%
Net (charge-offs) recoveries (2,198) (35,749) 1626.4%
---------- ----------
Balance end of period $ 25,659 $ 14,641 57.1%
========== ==========
Non-performing assets:
Loans in nonaccrual status $ 69,045 $ 34,140 49.4%
Impaired loans in process of
collection 14,207 (14,207) -100.0%
Other real estate owned 9,362 5,226 55.8%
90-days past due not on
non-accrual 761 (526) -69.1%
---------- ----------
Total non-performing assets $ 93,375 $ 24,633 26.4%
========== ==========
(1) The June 30, 2008 shares includes 11,000 shares of Series A
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 increased by the April 2009 5% stock
dividend. The March 31, 2009 and June 30, 2009 shares include
1,090,385 shares related to the U.S. Treasury Troubled Asset Relief
Program (TARP) Capital Purchase Program warrant.
For the Three Months
Ended June 30 2009 2008 Change % Change
---------- ---------- ---------- --------
Average fed funds sold
and investments $ 89,791 $ 36,971 $ 52,820 142.9%
Average gross loans,
including mortgages
held for sale $1,241,117 $1,269,596 $ (28,479) -2.2%
Average total assets $1,506,252 $1,474,619 $ 31,633 2.1%
Average non-interest-
bearing deposits $ 240,744 $ 238,714 $ 2,030 0.9%
Average interest-
bearing deposits $1,009,095 $ 978,391 $ 30,704 3.1%
Average total deposits $1,249,839 $1,217,105 $ 32,734 2.7%
Average total
borrowings $ 30,962 $ 45,580 $ (14,618) -32.1%
Average stockholders'
equity $ 212,322 $ 190,771 $ 21,551 11.3%
Average common equity $ 170,796 $ 181,181 $ (10,385) -5.7%
For the three
months ended
March 31,
2009 Change % Change
------------ ---------- ---------
Average fed funds sold and
investments $ 61,489 $ 28,302 46.0%
Average gross loans, including
mortgages held for sale $1,266,886 $ (25,769) -2.0%
Average total assets $1,489,512 $ 16,740 1.1%
Average non-interest-bearing
deposits $ 234,259 $ 6,485 2.8%
Average interest-bearing deposits $ 997,552 $ 11,543 1.2%
Average total deposits $1,231,812 $ 18,027 1.5%
Average total borrowings $ 50,335 $ (19,373) -38.5%
Average stockholders' equity $ 195,293 $ 17,029 8.7%
Average common equity $ 173,619 $ (2,823) -1.6%
For the Six Months
Ended June 30
Average fed funds sold
and investments $ 75,718 $ 35,921 $ 39,797 110.8%
Average gross loans,
including mortgages
held for sale $1,254,522 $1,235,248 $ 19,274 1.6%
Average total assets $1,497,928 $1,444,148 $ 53,780 3.7%
Average non-interest-
bearing deposits $ 237,520 $ 230,522 $ 6,998 3.0%
Average interest-
bearing deposits $1,003,356 $ 950,961 $ 52,395 5.5%
Average total deposits $1,240,875 $1,181,483 $ 59,392 5.0%
Average total borrowings $ 40,595 $ 39,917 $ 678 1.7%
Average stockholders'
equity $ 206,029 $ 182,291 $ 23,738 13.0%
Average common equity $ 174,400 $ 172,701 $ 1,699 1.0%
LOANS BY CATEGORY
(All amounts in 000's)
(unaudited)
6/30/ 3/31/ 12/31/ 9/30/ 6/30/
2009 2009 2008 2008 2008
----------------------------------------------------------
Agricultural
/Farm $ 49,580 $ 42,626 $ 48,640 $ 47,473 $ 60,009
Commercial
and
Industrial 236,178 265,305 253,107 265,776 272,689
Commercial
Real
Estate
- Owner
Occupied 262,031 261,646 265,965 253,668 246,048
Commercial
Real
Estate -
Non-Owner
Occupied 533,823 556,075 567,119 592,125 584,328
Consumer
/Other 118,164 111,866 111,741 108,836 109,784
----------------------------------------------------------
Gross
loans,
net
of
deferred
fees $1,199,776 $1,237,518 $1,246,572 $1,267,878 $1,272,858
==========================================================
Commercial
Real
Estate
Owner
Occupied
----------
Commercial
Term $ 235,081 $ 235,199 $ 236,951 $ 219,977 $ 211,532
Commercial
Con-
struction 19,051 16,370 16,778 20,284 20,001
Single
Family
Residential
Con-
struction
Oregon 450 1,180 1,599 1,071 1,271
California 7,449 8,897 10,637 12,336 13,244
----------------------------------------------------------
Total Owner
Occupied $ 262,031 $ 261,646 $ 265,965 $ 253,668 $ 246,048
==========================================================
Non-Owner
Occupied
----------
Commercial
Term $ 323,699 $ 322,008 $ 321,168 $ 302,638 $ 300,737
Commercial
Con-
struction 40,548 41,602 45,155 62,491 64,519
Single
Family
Residential
Con-
struction
Oregon
Pre-Sold 1,286 1,359 1,100 3,093 2,962
Specu-
lative 1,455 2,310 3,098 4,937 6,940
Builder
Inven-
tory 11,775 13,507 15,158 18,526 10,987
----------------------------------------------------------
Total
Oregon 14,516 17,176 19,356 26,556 20,889
----------------------------------------------------------
California
Pre-Sold 1,870 1,718 1,977 1,779 701
Specu-
lative 3,316 3,407 3,643 4,033 5,542
Builder
Inven-
tory 13,652 16,321 12,370 11,131 13,578
----------------------------------------------------------
Total
Califor-
nia 18,838 21,446 17,990 16,943 19,821
----------------------------------------------------------
Commercial
- Land
Acquisition
and
Development 27,521 31,119 32,167 30,749 25,059
Commercial
- Land
Only 48,155 47,163 48,751 48,925 56,418
Residential
- Land
Acquisition
and
Development 60,546 75,561 82,532 103,823 96,885
----------------------------------------------------------
Total
Non-Owner
Occupied $ 533,823 $ 556,075 $ 567,119 $ 592,125 $ 584,328
==========================================================
NONPERFORMING LOANS BY REGION AND TYPE
(All amounts in 000's)
(unaudited)
Other Real Estate Owned 6/30/ 3/31/ 12/31/
By Geographic Region 2009 2009 2008
-------------------- -------------------------------
Mid-Central Oregon $ 7,975 $ 2,111 $ --
Southern Oregon 1,578 5,368 2,540
Northern California 148 -- --
Greater Sacramento 4,887 1,883 1,883
Other -- -- --
-------------------------------
Total Other Real Estate Owned $ 14,588 $ 9,362 $ 4,423
===============================
Non Performing Loans 6/30/ 3/31/ 12/31/
By Geographic Region 2009 2009 2008
-------------------- -------------------------------
Mid-Central Oregon $ 32,215 $ 16,717 $ 19,338
Southern Oregon 30,997 31,641 27,854
Northern California 11,416 15,166 18,376
Greater Sacramento 28,792 19,941 15,610
Other -- 548 1,437
--------------------------------
Total Nonperforming Loans $ 103,420 $ 84,013 $ 82,615
================================
By Loan Type
-----------------
Agricultural/Farm $ 391 $ 391 $ 493
Commercial and
Industrial 7,502 4,003 5,154
Commercial Real
Estate - Owner
Occupied
Single Family Residential
Construction
Oregon -- -- 162
California 409 439 439
Other 5,149 5,932 5,029
Commercial Real Estate -
Non-Owner Occupied
Oregon 11,081 8,235 12,754
California 6,565 594 594
Single Family Residential
Construction
Oregon 13,041 8,729 9,595
California 16,811 14,269 9,715
Commercial - Land
Acquisition and Development 13,324 11,208 7,164
Commercial - Land Only 6,429 1,498 1,498
Residential - Land
Acquisition and Development 10,531 14,224 14,601
Commercial Construction -
Multiplex (5+) 5,541 5,543 5,543
Other 6,411 6,830 6,830
Consumer/Other 235 2,118 3,044
--------------------------------
Total Nonperforming Loans $ 103,420 $ 84,013 $ 82,615
================================