West Coast Bancorp (WCBO) filed Quarterly Report for the period ended 2009-09-30.
West Coast Bancorp is a bank holding company. West Coast Bancorp has a market cap of $38.1 million; its shares were traded at around $2.44 with and P/S ratio of 0.2. West Coast Bancorp had an annual average earning growth of 13.5% over the past 10 years. GuruFocus rated West Coast Bancorp the business predictability rank of 2-star.
Highlight of Business Operations:the Series A Preferred Stock and Series B Preferred Stock would accrue dividends at an annual rate of 15% calculated on the base value applicable to shares of preferred stock, which is $2.00 per share of common stock into which such preferred stock in convertible (referred to as, Special Dividends). As a result, we would be required to accrue total dividends on newly issued shares of preferred stock of as much as $23.3 million per year;
We foreclose on and take title to the real estate serving as collateral for many of our loans as part of our business. Real estate owned by the Bank and not used in the ordinary course of its operations is referred to as other real estate owned or OREO property. During 2008 and continuing throughout the first three quarters of 2009, we have acquired a significant amount of OREO relating to loans originated in the two-step loan portfolio (two-step loans) and, to a lesser extent, other segments of our loan portfolio. Increased OREO balances lead to greater expenses as we incur costs to manage and dispose of the properties and, in certain cases, complete construction of structures prior to sale. We expect that our operating results throughout 2009 will be negatively affected by various expenses associated with OREO, including personnel costs, insurance and taxes, completion and repair costs, and other costs associated with property ownership, as well as by the funding costs associated with assets that are tied up in OREO. Any additional decreases in market prices will lead to OREO write downs and possibly losses on sale, with a corresponding expense in our income statement in each case. We evaluate OREO property values periodically and write down the carrying value of the properties if the results of our evaluations require it. At September 30, 2009, we had $132.0 million in nonaccrual loans, the majority of which was collateralized by real estate, and $76.6 million of OREO properties.
Read the The complete Report