Centennial Bancorp Reports 2001 Third Quarter Earnings and Teleconference.Business Editors PORTLAND, Ore.--(BUSINESS WIRE)--Oct. 17, 2001 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 earnings for the quarter ended September 30, 2001. Highlights were as follows: -- Consolidated net income for the three months ended was $3.5 million, or $.14 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. common share, and exceeds consensus analyst expectations. Net income for the same period last year was $3.7 million, or $.15 per diluted common share. -- For the nine-month period, net income was $.42 per diluted share, consistent with the same nine-month period last year. -- At September 30, 2001, deposits rose 6% to $725 million from deposits of $686 million one year ago. -- Total assets were $838 million compared to total assets of $832 million one year ago. -- $0.03 per share dividend to be paid November 1st; 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. reaches 28% of plan authorization The right or permission to use a system resource; the process of granting access. See access control. . Third quarter results reflected a sustained slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in asset growth as contributed by a continued softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. of economic conditions and loan demand in the Northwest region
The Northwest Region . Results also were constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. by additional margin compression, which has resulted from the Federal Reserve Board's continued reduction in interest rates this year. The Federal Reserve has eased 400 basis points since January 3rd, a level of reduction by the central bank not seen since 1962. "As we have stated previously, we are an asset-sensitive business bank and are not immune from this rapid Fed easing," said Ted R. Winnowski, Centennial Bancorp President and Chief Executive Officer. "We continue to see weak loan growth now and for the foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. future. Businesses were already pushing out their timelines This article or section contains self-references. For other uses of "Timeline", see Timeline (disambiguation). The following is an index of timelines found on Wikipedia. for expansion and inventory financing Inventory financing Used in the context of factoring and general finance to refer to loans to consumer product producers that use inventory as collateral. See also: Inventory loan. , and using this time and opportunity to pare down Verb 1. pare down - decrease gradually or bit by bit pare minify, decrease, lessen - make smaller; "He decreased his staff" or pay off debt, even before the tragic events of September 11th." "Overall, the recent declines in mortgage rates have resulted in our residential mortgage and refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. markets producing a steady stream of business activity," continued Mr. Winnowski. "People recognize that a home is still one of the best investments available. In fact, the value of the average home has increased 5-6% each of the last three years." "The Company's core deposits have held up well and are an important pillar pillar, freestanding columnar supporting member. It is a general term, little used as an exact architectural definition except as applied to an upright support in the medieval styles, consisting of an assemblage of juxtaposed shafts and moldings; unlike the column, of the bank. The Bank is positioned well for future growth as the economy rebounds," said Mr. Winnowski. Management continues to be highly vigilant regarding asset quality and commercial real estate lending activities, reflecting the overall slowdown in the economy and more difficult operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. . Several Strategic Alliances Formed Several corporate growth initiatives progressed significantly in the third quarter. Centennial Bank and locally based ConceroGroup entered into an agreement to provide small business employers with brand name insurance products available through the bank's web site. Designed ideally for businesses with 2 to 50 employees, the "web" format reduces time and complexities to shop from leading vendors for these products. The service became available September 17th. Centennial Bank also has entered into an agreement with FirstCorp, another Portland-based, independent company, which specializes in equipment leasing Equipment Leasing is a financing option to lease equipment for a certain amount of time. Leasing Benefits
In still another new venture, Centennial Bank and Deschutes Investment Advisors Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control have formed an asset management alliance targeted to small cap and middle market business owners with needs for comprehensive corporate retirement plans. New Branch Announced Centennial Bank also announced plans for the development of its next full-service banking office 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. . Centennial Bank will expand further east, and open at Gresham Station, a fast growing suburban and retail hub near downtown Gresham at southeast Division and 204th Streets. The new branch is expected to open in January 2002. New Bank Services In order to enhance our ability to meet customer needs, Centennial Bank has begun development of a 24x7 phone banking service. The service, expected to be fully functional by year-end, will provide customers with easy, round-the-clock access to their accounts. Another new banking service from Centennial, planned for availability at the end of first quarter 2002, is a retail cash vault vault, ceiling over a room, formed in any one of a variety of curved shapes. Nature of Vaults A vault is generally composed of separate units of material, such as bricks, tiles, or blocks of stone, so shaped or cut that when assembled they form a service. The new cash vault service is intended to allow customers the security and convenience of making bank deposits and placing currency/coin orders without leaving their business. The service is most appealing to food stores, vending operators, ATM service providers, retail businesses not eligible for standard courier A monospaced typeface originating from the typewriter that is commonly used for letters. It is still considered by many to be the "appropriate" typeface for business correspondence. service, and businesses with frequent cash pickup Pickup A gain in yield made by selling one bond and buying another. Also referred to as "yield pickup." Notes: When the present yield is relatively low compared to the longer-term yields, pickups will be done by investors trying to increase the yield and duration of their and delivery needs. The service will be offered through the bank's Business Services Group to select customers and prospects. Increased Cash Dividend and Share Repurchase Plan share repurchase plan A corporation's plan for buying back a predetermined number of its own shares in the open market. Institution of a share repurchase plan derives from management's view that the company has limited outside investment opportunities and As announced previously, Centennial Bancorp's Board of Directors declared a $.03 per share cash dividend to shareholders of record as of October 15, 2001 and payable on November 1, 2001. The cash dividend represents an increase of 5% over the initial $.03 August cash dividend when combined with the common stock split issued earlier. The company continues to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. shares as well. During the quarter, the Company repurchased 272,400 shares, which now totals nearly 28% of the shares authorized Shares authorized The maximum number of shares of stock of a company allowed in the articles of incorporation, which may be changed only by a shareholder vote. See: Issued and outstanding. shares authorized See authorized capital stock. for repurchase under the current plan. Investors Teleconference Scheduled Monday, October 22nd at 8 AM PT Mr. Winnowski and other members of Centennial Bancorp's senior management will discuss the Company's results of operations via teleconference at 8:00 AM Pacific Daylight Time (PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT ) on Monday, October 22nd. The session will include discussion of quarter-end financial measures, 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 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: 17644971, followed by the pound sign. This information also will be posted on the Centennial Bank website--www.centennialbank.com. Centennial Bancorp is a bank holding company organized in 1981, whose subsidiary is Centennial Bank, both headquartered in Portland. Centennial Bank currently operates twenty-two banking offices. Twelve are in the Portland metropolitan area; 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; and six in Lane County. The Bank also operates five mortgage lending offices, and seven commercial banking centers aimed at the service needs of middle market commercial customers. Centennial Bancorp's common stock is traded on the NASDAQ National Market and the Russell 2000 Index Russell 2000 Index An index measuring the performance of the 2,000 smallest companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks. The Russell 2000 serves as a benchmark for small-cap stocks in the United States. under the symbol "CEBC." For more information, please contact Centennial Bancorp, 1 SW Columbia Street, Suite 900, 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. 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.
CENTENNIAL BANCORP FINANCIAL HIGHLIGHTS
(In thousands, except per-share data and ratios)
(Unaudited)
Three Months Ended Nine Months Ended
Sep 30, Sep 30,
2001 2000 2001 2000
CONDENSED STATEMENTS
OF INCOME:
Interest Income $ 17,688 $ 20,539 $ 56,223 $ 58,031
Interest Expense 5,317 7,779 19,884 20,793
-------- -------- -------- --------
Net Interest Income 12,371 12,760 36,339 37,238
Provision for Loan Losses 1,050 1,050 2,975 2,550
-------- -------- -------- --------
Net Interest Income after
Provision for Loan Losses 11,321 11,710 33,364 34,688
-------- -------- -------- --------
Noninterest Income 1,408 858 4,357 2,581
Noninterest Expense 7,052 6,518 21,062 20,529
-------- -------- -------- --------
Income before Income Taxes 5,677 6,050 16,659 16,740
-------- -------- -------- --------
Provision for Income Taxes 2,216 2,306 6,373 6,361
-------- -------- -------- --------
Net Income $ 3,461 $ 3,744 $ 10,286 $ 10,379
======== ======== ======== ========
Earnings per Common Share
Basic $ 0.14 $ 0.16 $ 0.43 $ 0.43
Diluted $ 0.14 $ 0.15 $ 0.42 $ 0.42
Weighted Average Shares Outstanding
Basic 24,049 23,952 24,061 23,889
Diluted 24,571 24,442 24,599 24,461
OPERATING PERFORMANCE:
Average Interest-
Earning Assets $779,630 $756,405 $782,979 $725,057
Average Non-Interest-
Earning Assets 63,691 64,201 62,813 63,993
-------- -------- -------- --------
Total Average Assets $843,321 $820,606 $845,792 $789,050
======== ======== ======== ========
Average Interest-
Bearing Liabilities $588,291 $611,429 $609,279 $589,074
Average Non-Interest-
Bearing Liabilities 157,001 124,733 141,322 119,013
-------- -------- -------- --------
Total Average Liabilities 745,292 736,162 750,601 708,087
Average Equity 98,029 84,444 95,191 80,963
-------- -------- ------- --------
Total Average Liabilities
and Equity $ 843,321 $ 820,606 $ 845,792 $ 789,050
=========== ========== ========== =========
PERFORMANCE RATIOS:
Interest Rate Spread 5.52% 5.90% 5.28% 6.08%
Net Interest Margin 6.35% 6.82% 6.26% 6.97%
Return on Average Assets 1.63% 1.81% 1.63% 1.76%
Return on Average Equity 14.01% 17.64% 14.45% 17.12%
Efficiency Ratio 51.17% 47.86% 51.75% 51.56%
CENTENNIAL BANCORP
FINANCIAL HIGHLIGHTS
(In thousands, except per share data and ratios)
(Unaudited)
Sep 30, Sep 30,
2001 2000
CONDENSED BALANCE SHEETS:
Investment Securities $ 74,372 $ 58,607
Loans, Net 656,223 692,496
Total Assets 837,983 831,952
Total Deposits 725,476 685,609
Total Shareholders' Equity 98,013 85,416
Book Value per Share 4.10 3.56
Tangible Book Value per Share 3.79 3.21
ASSET QUALITY:
Loans Past Due 90 Days or More 2,683 5,768
Loans on Non-Accrual Status 6,327 3,434
---------- -----------
Total Non-performing Loans 9,010 9,202
Other Real Estate Owned 2,610 448
---------- -----------
Total Non-performing Assets 11,620 9,650
========== ===========
Non-performing Assets /
Total Assets 1.39% 1.16%
Non-performing Loans /
Total Loans 1.35% 1.31%
Non-performing Loans /
Total Assets 1.08% 1.11%
Quarter Ended
Sep 30, Sep 30,
2001 2000
CHANGES IN THE ALLOWANCE
FOR LOAN LOSSES:
Balance at Beginning
of Period $ 10,211 $ 7,469
Provision for Loan Losses 1,050 1,050
Loans Charged Off (760) (64)
Loans Recovered 10 4
---------- ----------
Balance at End of Period $ 10,511 $ 8,459
========== ==========
Net Charge-Offs to
Average Loans 0.11% 0.01%
Loan Loss Allowance /
Gross Loans 1.58% 1.21%
Loan Loss Allowance /
Non-performing Loans 117% 92%
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