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Pacific Continental Corp. Reports Operating Results (10-Q)

November 04, 2009 | About:
10qk

10qk

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Pacific Continental Corp. (PCBK) filed Quarterly Report for the period ended 2009-09-30.

PACIFIC CONTINENTAL is a one-bank holding company. Their principal business activities are conducted through their full- service commercial bank subsidiary PacificContinental Bank. The Bank is engaged in general commercial banking with emphasis on lending to small and medium-sized businesses and construction lending for commercial facilities and single family residences. The Bank provides a range of financial services tailored to the needs of the community. Pacific Continental Corp. has a market cap of $132.3 million; its shares were traded at around $10.28 with and P/S ratio of 1.9. The dividend yield of Pacific Continental Corp. stocks is 1.6%. Pacific Continental Corp. had an annual average earning growth of 16.6% over the past 5 years.

Highlight of Business Operations:

However, operating revenue, which consists of net interest income and noninterest income, continued to be solid. Operating revenue for the third quarter 2009 was $14,826, up $1,476 or 11.1% over third quarter 2008. Net interest income in the current quarter increased by $1,414 or 11.5%, and noninterest income was virtually flat compared to the same quarter last year. The improvement in third quarter net interest income resulted from an 8.9% growth in average earning assets, combined with an 11 basis point increase in the net interest margin.

Operating revenue for the nine months ended September 30, 2009 was $43,581, up $4,277 or 10.9% over the same period of 2008. Net interest income for year-to-date 2009 increased by $4,178 or 10.6% and noninterest income was virtually flat compared to the same period last year. The improvement in year-to-date net interest income resulted from an 11.6% growth in average earning assets, combined with a flat net interest margin.

Loan growth abated significantly during the third quarter 2009 as period-end loans decreased by $3,119 from June 30, 2009 and for the first nine months of 2009, grew by $2,745 or less than 0.3% from December 31, 2008 period-end loans. This marks a significant decline in loan growth as compared to the 12.4% growth experienced during the first nine months of 2008. However, the Company continued to

experience strong quarterly growth in its core deposit base during the third quarter 2009 as period-end core deposits increased by $45,750 or 6.5% from June 30, 2009, $135,821 or 22.1% from December 31, 2008 and $112,214 or 17.5% from September 30, 2009 period-end core deposits. On an annualized basis, core deposits grew by 29.5% during the first nine months of 2009, compared to 5.1% for the same period of 2008. On a linked-quarter basis, growth in average core deposits during the current quarter showed similar results, up more than $43,565 or an annualized rate of 25.7% over the prior quarter. Core deposits, which are defined as demand deposits, interest checking, money market account, and local time deposits (including local time deposits in excess of $100), constitute 90.9% of September 30, 2009 period-end deposits, compared to 85.2% and 89.9% at December 31, 2008 and September 30, 2008, respectively. Noninterest-bearing demand deposits were $196,320 or 26.1% of period-end core deposits and funded 17.1% of total assets at September 30, 2009, compared to $178,957 or 16.4% and $178,632 or 17.0% at December 31, 2008 and September 30, 2008, respectively.

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