Centennial Bancorp Reports: First-Quarter 2002 Results; Dividend Payout; Investors Teleconference Today.Business Editors PORTLAND Portland, town, England Portland, town (1991 pop. 12,945), Dorset, S England. It is on the Isle of Portland, a small rocky peninsula. Portland stone has been used in St. Paul's Cathedral and other important London buildings. Lobsters and crabs are harvested. , Ore.--(BUSINESS WIRE)--April 18, 2002 Centennial Bancorp (Nasdaq:CEBC CEBC Center for Ethical Business Cultures (University of St. Thomas) CEBC Consulting Engineers of British Columbia CEBC Centre d'Études Biologiques de Chize CEBC Conselho Empresarial Brasil-China CEBC Centre For Evidence-Based Conservation ) today reported operating results for the three-month period ended March 31, 2002. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net income for the quarter totaled $2,110,000, or $0.08 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. These results included an added provision for loan losses of $1.1 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. , or $1.8 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta , resulting in a total loan loss provision of $2.8 million for the quarter. Without the increase in the provision, diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of would have been $0.13 per share, as compared to $0.14 per diluted share for the same period last year. This year's first-quarter results reflect weaker business activity, impacted by the prevailing Pacific Northwest For names and places containing the slightly longer word 'northwestern' (or variants), see . Northwest or north west is the ordinal direction halfway between north and west on a compass. It is the opposite of southeast. economic recession and challenging business environment. "Although we cannot predict when Northwest economic conditions will consistently improve, we remain focused on efficiently managing our business banking initiatives and continuing to target key opportunities," said Ted R. Winnowski, President and Chief Executive Officer of Centennial Bancorp and Centennial Bank. "We are encouraged by our business customers reporting more signs of recovery, and that our prospective loan pipeline appears more promising. While we are not pleased with our overall first-quarter outcome, we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the future." The allowance for loan losses as a percent of loans at March 31, 2002, totaled 1.95 percent, compared to 1.42 percent at March 31, 2001, and 1.58 percent at December December: see month. 31, 2001. The increase resulted from continued review of the loan portfolio, negatively impacted by real estate loans in areas affected by high unemployment and weak demand and several commercial business insolvencies. "Overall, our asset quality remains high. It is important to note that six borrowers account for 74 percent of non-performing assets at March 31, and we are aggressively working toward resolution on these loans. Our current reserve for problem credits, combined with our expected positive resolution of the non-performing asset issues and a normalized quarterly loan loss provision, should result in manageable coverage and reserve ratios for the remainder of the year." Non-performing assets accounted for 1.61 percent of total assets at March 31, 2002, compared to 1.16 percent a year earlier. Deposits increased 1.7 percent during the quarter from $693 million at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. to $705 million. Compared to March 31, 2001, deposits declined 2.4 percent, primarily due to decreased certificates of deposit. "In order to maintain our net interest margin and because of low loan demand, we allowed higher-rate certificates of deposit to run off. Our new deposit products are more competitively priced, and our community banking team has done an excellent job of bringing in new deposits while lowering interest expense. The average deposit size has also increased over the same time period," Mr. Winnowski noted. Increases in service charges produced by the Company's deposit base, and increased gains on sales of loans contributed to an increase in non-interest income of 27 percent from the same period last year. "Increased operating efficiencies and cost-saving measures will benefit us down the road. With an efficiency ratio of 51.91 percent for the quarter, we are only slightly higher than a year ago, and remain among the top in this ranking compared with other Northwest banks." "Our capital structure remains very strong, and among the best in the region. We will use this foundation to propel pro·pel tr.v. pro·pelled, pro·pel·ling, pro·pels To cause to move forward or onward. See Synonyms at push. [Middle English propellen, from Latin our growth as the Northwest economy demonstrates more visible signs of rebounding. For our shareholders, we also have continued with our cash dividend and share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. programs in 2002 to ensure them that we are preparing for better periods to come," concluded Mr. Winnowski. Quarterly Cash Dividend Payout pay·out n. 1. The act or an instance of paying out. 2. A percentage of corporate earnings that is paid as dividends to shareholders. Centennial Bancorp's $0.04-per-share quarterly cash dividend to shareholders of record as of April 15, 2002, will be paid on May 1, 2002. This dividend results in a 40 percent split-adjusted increase over the prior quarter's dividend, and is the fourth consecutive cash dividend declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. by Centennial Bancorp's Board of Directors since the Company initiated its cash dividend program last year. Investors Teleconference Scheduled Today at 11:00 AM PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT Mr. Winnowski and members of Centennial Bancorp's senior management will discuss the Company's 2002 first-quarter results of operations via teleconference today at 11:00 AM Pacific Daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). Time (PDT). The session will include discussion of quarter-end financial results, business outlook and credit quality, and is expected to last about an hour. Shareholders and other interested individuals can call toll-free 1-888/636-8212 to attend this teleconference. A period for questions will be provided. The session will be recorded, and an audio replay will be made available two hours after the session ends. The replay access phone number is 1-800/642-1687. You will be asked to provide the conference identification number: 3256095, followed by the pound sign. This information also will be posted on the Centennial Bank website -- www.centennialbank.com. About Centennial Bancorp Centennial Bancorp is a bank holding company organized in 1981, whose subsidiary is Centennial Bank, both headquartered in Portland, Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. . Centennial Bank currently operates twenty-three banking offices. Fourteen are in the Portland metropolitan area The Portland-Vancouver, Oregon-Washington, Metropolitan Statistical Area, also known as the Portland metropolitan area or Greater Portland, is an urban area in the U.S. states of Oregon and Washington centered around the city of Portland, Oregon. ; two in Vancouver, Washington
Vancouver, Washington is a city on the north bank of the Columbia River, in the state of Washington, USA. It is the county seat of Clark County. ; one in Salem Salem, in the Bible Salem (sā`ləm) [Heb.,=peace], in the Bible, royal city of Melchizedek, traditionally identified with Jerusalem. Salem, city, India Salem, city (1991 pop. ; and six in Lane County. The Bank also operates four mortgage lending offices, and seven commercial banking centers directed to the needs of middle-market The term middle-market may refer to either a type of newspaper or a type of company. A middle-market newspaper is one that attempts to cater to readers who want some entertainment value from their newspaper as well as adequate serious coverage of significant news commercial customers. Centennial Bancorp's common stock is traded on the Nasdaq National Market and is included in the Russell Russell, English noble family. It first appeared prominently in the reign of Henry VIII when John Russell, 1st earl of Bedford, 1486?–1555, rose to military and diplomatic importance. 200 Index under the symbol "CEBC." For more information, please contact Centennial Bancorp, One SW Columbia Columbia, cities, United States Columbia (kəlŭm`bēə). 1 City (1990 pop. 75,883), Howard co., central Md., between Washington, D.C., and Baltimore. Street, Suite 900, Portland, Oregon 97258. Telephone: 503/973-5556; FAX: 503/973-5557; Web address: www.centennialbank.com. This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Act of 1995, including statements concerning the continued financial performance of the company and its plans and opportunities for future growth. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially than those expected. Specific risks include, but are not limited to, general business and economic conditions, competitive factors, pricing pressures, further interest rate changes, and other factors listed from time to time in Centennial Bancorp's SEC reports.
FINANCIAL HIGHLIGHTS Three Months Ended
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(In thousands, except per-share data and ratios) March 31, March 31,
(Unaudited) 2002 2001
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CONDENSED STATEMENTS OF INCOME:
Interest Income $ 14,616 $ 19,986
Interest Expense 3,472 7,872
-------- --------
Net Interest Income 11,144 12,114
Provision for Loan Losses 2,775 950
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Net Interest Income after
Provision for Loan Losses 8,369 11,164
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Noninterest Income 1,778 1,399
Noninterest Expense 6,708 6,767
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Income before Income Taxes 3,439 5,796
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Provision for Income Taxes 1,329 2,144
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Net Income $ 2,110 $ 3,652
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Earnings per Common Share
Basic $ 0.08 $ 0.14
Diluted $ 0.08 $ 0.14
Weighted Average Shares Outstanding
Basic 24,860 25,258
Diluted 25,397 25,813
OPERATING PERFORMANCE:
Average Interest-Earning Assets $755,225 $780,524
Average Non-Interest-Earning Assets 61,957 61,297
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Total Average Assets 817,182 841,821
======== ========
Average Interest-Bearing Liabilities 580,444 626,487
Average Non-Interest-Bearing Liabilities 136,624 123,217
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Total Average Liabilities 717,068 749,704
Average Equity 100,114 92,117
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Total Average Liabilities and Equity $817,182 $841,821
======== ========
PERFORMANCE RATIOS:
Interest Rate Spread 5.41% 5.26%
Net Interest Margin 6.05% 6.35%
Return on Average Assets 1.05% 1.76%
Return on Average Equity 8.55% 16.08%
Efficiency Ratio 51.91% 50.08%
FINANCIAL HIGHLIGHTS
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(In thousands, except per-share data and ratios) March 31, March 31,
(Unaudited) 2002 2001
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CONDENSED BALANCE SHEETS:
Investment Securities $ 94,479 $ 62,765
Loans, Net 626,626 689,198
Total Assets 827,388 857,030
Total Deposits 704,655 721,881
Total Shareholders' Equity 99,282 94,380
Book Value per Share $ 4.00 $ 3.73
Tangible Book Value per Share 3.71 3.42
ASSET QUALITY:
Loans Past Due 90 Days or More $ 273 $ 1,589
Loans on Non-Accrual Status 12,387 7,832
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Total Non-performing Loans 12,660 9,421
Other Real Estate Owned 674 508
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Total Non-performing Assets $ 13,334 $ 9,929
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Non-performing Assets / Total Assets 1.61% 1.16%
Non-performing Loans / Total Loans 1.98% 1.35%
Non-performing Loans / Total Assets 1.53% 1.10%
Quarter Ended
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March 31, March 31,
2002 2001
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CHANGES IN THE ALLOWANCE FOR LOAN LOSSES:
Balance at Beginning of Period $ 10,506 $ 9,150
Provision for Loan Losses 2,775 950
Loans Charged Off (857) (240)
Loans Recovered 12 34
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Balance at End of Period $ 12,436 $ 9,894
======== ========
Net Charge-Offs to Average Gross Loans 0.13% 0.03%
Loan Loss Allowance / Gross Loans 1.95% 1.42%
Loan Loss Allowance / Non-performing Loans 98% 105%
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