This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

West Coast Bancorp Reports Net Income Of $5.7 Million For Fourth Quarter 2012 And $23.5 Million For Full Year 2012

* This press release contains certain non-generally accepted accounting principles in the United States of America ("GAAP") financial measures. Table 1 below shows the reconciliation of net income, pretax income, and noninterest expense to the related non-GAAP measures calculated after excluding the effects of merger-related expenses for the quarters ended December 31, 2012, and 2011, and the full years ended December 31, 2012 and 2011. Management uses this non-GAAP information internally and has disclosed it to investors based on its belief that the information provides additional, valuable information relating to its operating performance as compared to prior periods.

Table 1 below shows the reconciliation of net income, pretax income, and noninterest expense to the related non-GAAP measures calculated after excluding the effects of merger-related expenses for the quarters ended December 31, 2012, and 2011, and the full years ended December 31, 2012, and 2011. Merger-related expenses were $1.2 million and $1.8 million for the fourth quarter and full year 2012, respectively.

 
Table 1            
Reconciliation of Net Income, Pretax Income and Noninterest Expense to Non-GAAP financial measures  
(Dollars in thousands) Q4 Q4 Change Full year Full year Change
  2012 2011 $ 12/31/2012 12/31/2011 $
             
Net income  $ 5,739  $ 17,762  $ (12,023)  $ 23,506  $ 33,777  $ (10,271)
             
Merger-related expenses  1,194  --   1,194  1,772  --   1,772
 Less: tax benefit from merger-related expenses (1)  417  --   417  620  --   620
After-tax merger-related expenses  777  --   777  1,152  --   1,152
             
Net income excluding after-tax merger-related expenses (2,3)  $ 6,516  $ 17,762  $ (11,246)  $ 24,658  $ 33,777  $ (9,119)
             
Pretax income  $ 8,419  $ 116  $ 8,303  $ 35,753  $ 13,565  $ 22,188
Merger-related expenses  1,194  --   1,194  1,772  --   1,772
Pretax income excluding merger-related expenses  $ 9,613  $ 116  $ 9,497  $ 37,525  $ 13,565  $ 23,960
             
Noninterest expense  $ 20,277  $ 22,744  $ (2,467)  $ 84,085  $ 90,875  $ (6,790)
Merger-related expenses  1,194  --   1,194  1,772  --   1,772
Noninterest expense excluding merger-related expenses (3, 4)  $ 19,083  $ 22,744  $ (3,661)  $ 82,313  $ 90,875  $ (8,562)
             
             
(1) Tax rate assumed to be 35%.            
(2) Net income excluding merger-related expenses is GAAP net income adjusted for the after-tax impact of merger-related expenses.  
(3) Management uses this non-GAAP information internally and has disclosed it to investors based on its belief that the information provides additional, valuable information relating to the Company's operating performance as compared to prior periods.  
(4) Noninterest expense excluding merger-related expenses is used to calculate the efficiency ratio excluding merger expenses.  
   

Table 2 below shows summary financial information for the quarters ended December 31, 2012, and 2011, and September 30, 2012.

 
Table 2          
SUMMARY FINANCIAL INFORMATION
           
  Qtr. ended Qtr. ended   Qtr. ended  
  Dec. 31, Dec. 31,   Sept. 30,  
(Dollars and shares in thousands) 2012 2011 Change 2012 Change
           
Net income and performance ratios excluding after-tax merger-related expenses 1      
Net income  $ 6,516  $ 17,762  $ (11,246)  $ 6,320  $ 196
Net income per diluted share  $ 0.30  $ 0.83  $ (0.53)  $ 0.29  $ 0.01
Return on average assets, annualized 1.05% 2.88%  (1.83) 1.03%  0.02
Return on average equity, annualized 7.67% 23.68%  (16.01) 7.59%  0.08
Efficiency ratio 65.77% 93.02%  (27.25) 68.75%  (2.98)
           
Net income and performance ratios          
Net income  $ 5,739  $ 17,762  $ (12,023)  $ 5,944  $ (205)
Net income available to common stockholders 3  $ 5,369  $ 16,532  $ (11,163)  $ 5,559  $ (190)
Net income per diluted share  $ 0.26  $ 0.83  $ (0.57)  $ 0.27  $ (0.01)
Book value per common share  $ 16.49  $ 15.20  $ 1.29  $ 16.32  $ 0.17
Return on average assets, annualized 0.93% 2.88%  (1.95) 0.97%  (0.04)
Return on average equity, annualized 6.76% 23.68%  (16.92) 7.14%  (0.38)
Efficiency ratio 69.89% 93.02%  (23.13) 70.66%  (0.77)
           
Share and per share figures          
Common shares outstanding at period end  19,293  19,298  (5)  19,290  3
Weighted average diluted shares 4  21,727  21,175  552  21,598  129
Weighted average diluted shares-two class method 5  20,450  19,911  539  20,344  106
           
           
1  These measurements exclude the after-tax impact of $.8 million of merger-related expenses; see Table 1 for a reconciliation of net income and noninterest expense to nongaap financial measures.          
2 The efficiency ratio has been computed as noninterest expense divided by the sum of net interest income on a tax equivalent basis and noninterest income excluding gains/losses on sales of securities.          
3 Adjusted for the impact of allocating net income to participating instruments, which include restricted stock and Series B preferred stock.  
4 Reflects the average dilutive impacts of Series B preferred stock (1,213), warrants (1,310), options (27), and restricted stock (64).  
5 Reflects the calculation of diluted shares under the two-class method which includes average common (19,113), options (27), and warrants (1,310).
 

Balance Sheet Overview

Fourth quarter 2012 total average loan balance of $1.48 billion declined $10 million or 1% from the preceding quarter, with declines primarily in commercial and real estate mortgage categories more than offsetting growth in commercial real estate balances. The main driver of the decline in commercial loan balances can be attributed to line utilization declining to 34% from 39% linked-quarters. Total average loans also declined 1% year over year with a decline in commercial and real estate mortgage categories being offset by growth in commercial real estate and real estate construction categories.

2 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,203.37 -85.26 -0.47%
S&P 500 2,107.78 -9.61 -0.45%
NASDAQ 4,979.9010 -28.1950 -0.56%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs