Loan loss reserves cut bank's profits.Byline: ED RUSSO The Register-Guard First-quarter profits at Pacific Continental Bank have shrunk shrunk v. A past tense and a past participle of shrink. shrunk Verb a past tense and past participle of shrink shrunk, shrunken shrink in order to set aside more money in case of bad loans. Eugene-based Pacific Continental Corp., the bank's holding company, on Thursday said it boosted its allowance for loan losses in the quarter ended March 31 by $925,000 to $3.5 million. The extra set aside is the main reason first-quarter profits will be 18 cents to 20 cents a share, compared to 28 cents a share in the same quarter a year ago, said Chief Financial Officer Mick Reynolds. The holding company's stock fell 70 cents to close at $11.85 a share in trading three times heavier than normal. Pacific Continental plans to release its first-quarter earnings on April 16. In the fourth quarter ended Dec. 31, Pacific Continental increased its loan loss reserves to cover the default of loans on motels Motels may refer to any of the following:
The first-quarter increase in loan loss reserves to 1.4 percent of the bank's outstanding loans is needed in case there are more defaults of loans backed by real estate, Reynolds said. "We see continued problems in loans that are secured by commercial real estate and other hotel properties," he said. Chief Executive J. Bruce Riddle riddle, puzzling question, specifically one that consists of a fanciful description or definition of something to be guessed. A famous riddle was asked by the Sphinx: "What goes on four legs in the morning, on two at noon, on three at night?" Oedipus guessed the said Pacific Continental remains strong and well capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. , with a vigorous loan program for community-based businesses. Since Jan. 1, the bank's loans have grown about $20 million, or 8 percent, in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite a recession, he said. Still, Riddle said, increasing loan loss reserves is "prudent in light of the continued weakness in the regional economy and specifically in the hospitality industry." Banking analyst Jim Bradshaw Jim Bradshaw (born January 13, 1939 in St. Clairsville, Ohio) is a former professional American football player who played safety for five seasons for the Pittsburgh Steelers. of D.A. Davidson & Co. in Portland said given Oregon's weak economy he is surprised that so far this year only three Northwest banks have announced that profits will not meet expectations. Last week, Portland-based Centennial Bancorp said its profits will be dampened by a $1.8 million increase in loan loss reserves. Banks have absorbed losses on hotel loans because the hospitality industry has been hurt by the post Sept. 11 travel 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. , Bradshaw said. Occupancy rates Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) are improving, but hotels and motels are charging lower rates which makes it difficult for some to cover expenses. Still, banks generally are in much better shape than they were in previous recessions, Bradshaw said, including the downturn in 1991, which put pressure on bank profits. "Loan loss activity now is far better than the average recession," he said. For shareholders they "just need to hang in there," because the "first quarter may be the very bottom," Bradshaw said. |
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