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WEST COAST BANCORP, CA, REPORTS SECOND QUARTER RESULTS

 NEWPORT BEACH, Calif., Aug. 6 /PRNewswire/ -- West Coast Bancorp (NASDAQ-NMS: WCBC), a California multi-bank holding company, today announced a loss of $2.6 million, or 28 cents per share, for the second quarter ended June 30, 1993, compared with a net loss of $1.4 million, or 16 cents per share, reported in the same quarter a year ago. For the first half, the company reported a net loss of $4.0 million, or 44 cents per share, compared with a net loss of $1.4 million, or 15 cents per share in the same period a year ago. The 1993 losses resulted primarily from lower loan volumes and losses associated with nonperforming loans and real estate owned.
 For the quarter, net interest income declined 29 percent to $4.5 million. For the six months, net interest income was $9.2 million, down 25 percent. These declines reflect both lower loan volumes and lower interest rates. Average loans declined $79 million to $258.7 million for the first six months of 1993, reflecting lower loan demand, more stringent underwriting standards and the liquidation of the company's subsidiary, WCV Inc., formerly Heritage Thrift & Loan Association, which accounted for approximately $26 million of the decline. Reflecting lower prevailing interest rates, the net interest margin declined to 5.11 percent for the quarter, down from 5.63 percent in the same quarter a year ago, and to 5.25 percent for the full six months, down from 5.31 percent in the same period of 1992.
 For the quarter, the provision for loan losses, collection expenses and the net cost of operation of real estate owned was $2.4 million, down from $3.0 million in the second quarter of the prior year. For the six months, the provision increased slightly to $4.2 million, up from $4.1 million in the same period of 1992. Nonperforming assets were $24.2 million on June 30, 1993, down slightly from $24.8 million a year ago.
 Other operating expenses, exclusive of collection and net real estate owned expenses, decreased significantly over the period, down $400,000 for the quarter and $900,000 for the six months, due to the liquidation of WCV Inc. and cost control measures implemented across the board. During the quarter, West Coast Bancorp recorded an additional loss on the liquidation of $300,000 to account for losses on loans and real estate owned. The company originally reported a loss on liquidation of $1.5 million in the fourth quarter of 1992.
 West Coast Bancorp's leverage ratio, tier 1 and total risk-based capital ratios of 5.89 percent, 7.20 percent and 9.13 percent, respectively, all exceed the regulatory minimums. However, the leverage ratio at Sunwest Bank, the company's largest subsidiary, fell to 6.38 percent. Sunwest is required to maintain a minimum leverage ratio of 6.50 percent under an agreement with the FDIC. Sunwest's tier 1 and total risk-based capital ratios of 7.17 percent and 8.43 percent remain above regulatory minimums.
 -0- 8/6/93
 /CONTACT: Frank Smith of West Coast Bancorp, 714-730-4492; or Lise Needham or Stephanie Meyer of the Financial Relations Board, 415-986-1591, for West Coast Bancorp/
 (WCBC)


CO: West Coast Bancorp ST: California IN: FIN SU: ERN

TM -- SF005 -- 0360 08/06/93 14:36 EDT
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Publication:PR Newswire
Date:Aug 6, 1993
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