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West Coast Bancorp – WCBO – Reports Q2 2012 Net Income of $6.0 Million up 30%

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West Coast Bancorp (Nasdaq:WCBO) , the parent company of West Coast Bank and West Coast Trust Company, Inc., announced second quarter 2012 net income of $6.0 million or $.28 per diluted share compared to net income of $4.6 million or $.22 per diluted share in the same quarter of 2011. Net income for the first six months of 2012 was $11.8 million or $.55 per diluted share compared to net income of $9.7 million or $.45 per diluted share in the same period of 2011.

  • Return on Average Assets Was 1.01% in the Second Quarter 2012, an Improvement From .76% in the Same Quarter Last Year.
  • Net Income for the Six Month Period Ended, June 30, 2012 Was $11.8 Million, an Increase of 21% From the Same Period in 2011.
  • The Written Agreement Between the Holding Company and Certain Regulators Was Terminated on June 27, 2012.
  • Second Quarter 2012 Total Noninterest Expense Declined 6%, or $1.5 Million, From the Same Period in 2011.
  • The Efficiency Ratio Improved to 70.3% in First Half of 2012 From 75.1% in the Same Period in 2011.

“Net income reached $11.8 million for the first half of 2012 and grew 21% or $2.1 million from the same period a year ago,” said Robert D. Sznewajs, President and Chief Executive Officer. “The continued reduction in credit-related costs and ongoing improvements in expense management were the primary contributors to the improved operating results. The Company’s return on average assets for the first half of 2012 reached 1.00% compared to .80% in the same period in 2011.”

WCBO – Operating Results


Pre-tax income in the second quarter of 2012 was $9.3 million, an increase of $5.6 million or 155% from the corresponding quarter in 2011, and a $.4 million or 4% improvement from the first quarter of 2012. The improvement was principally the result of declines in the provision for credit losses and total noninterest expense. Net income of $6.0 million in the second quarter of 2012 increased $1.4 million or 30% from the corresponding quarter last year, and $.2 million or 4% from the first quarter of 2012.

WCBO – Credit Quality

The Company recorded a benefit for credit losses of $.5 million in the second quarter of 2012, a significant improvement compared to a provision for credit losses of $3.4 million in the second quarter of 2011 and $.1 million in the previous quarter of 2012. Second quarter 2012 net charge-offs of $.2 million, or .07% of average loans on an annualized basis, declined from 1.22% in the corresponding quarter in 2011 and .39% on a linked-quarter basis. The net charge off and benefit for credit losses in the second quarter of 2012 were heavily influenced by a recovery of $1.1 million related to a commercial real estate loan. As shown in the table below, net charge-offs declined in every loan category from the second quarter last year.

About West Coast Bancorp – WCBO

West Coast Bancorp (WCBO ) is a publicly held, Northwest bank holding company headquartered in Oregon with $2.4 billion in assets, and the parent company of West Coast Bank and West Coast Trust Company, Inc. West Coast Bank operates 58 branches in Oregon and Washington. WCBO serves clients who seek the resources, sophisticated products and expertise of larger financial institutions, along with the local decision-making, market knowledge, and customer service orientation of a community bank. The Company offers a broad range of banking, investment, fiduciary and trust services.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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