Below is transcript of the Pacific Continental Corporation (NASDAQ:PCBK)’s Fourth Quarter 2014 Earnings Call, held on January 22, 2015, at 2:00 p.m. EST. Basswood Capital, Hutchin Hill Capital and Royce & Associates was among Pacific Continental Corporation (NASDAQ:PCBK) shareholders at the end of the third quarter.
Pacific Continental Corporation (NASDAQ:PCBK) is a bank holding company. The Company’s principal business activities are conducted through Pacific Continental Bank (the Bank), an Oregon state-chartered bank with deposits insured by the Federal Deposit Insurance Corporation (FDIC). The Bank has two subsidiaries, PCB Service Corporation (presently inactive), which formerly held and managed Bank property, and PCB Loan Services (presently inactive), which formerly managed certain other real estate owned.
Company Representatives:
Mick Reynolds – Executive Vice President & Chief Financial Officer
Roger Busse – President & Chief Executive Officer
Casey Hogan – Executive Vice President & Chief Operating Officer
Damon Rose – Senior Vice President & Chief Credit Officer.
Analysts:
Eric Grubelich – Highlander Capital Group
Tim Coffey – FIG Partners
Don Worthington – Raymond James
Jeff Rulis – DA Davidson
Tim O’Brien – Sandler O’Neill
Jackie Chimera – KBW.
Operator
Ladies and gentlemen, I would like to welcome you to today’s Pacific Continental Corporation’s Fourth Quarter 2014 Earnings Call. Before we get started, I would like to explain some of the ways that you can participate in today’s call. At the conclusion of today’s presentation, management will entertain your questions. At that time you may ask a question by pressing * 8 on your telephone keypad. We will remind you of this instructions at the beginning of the question and answer session. If you experience any technical difficulties with the audio for today’s conference, please press * 0 on your phone for assistance.
And now without any further delay, I would like to introduce your first presenter, Mick Reynolds, Executive Vice President and Chief Financial Officer. Mr. Reynolds, you now have the floor.
Mick Reynolds – Executive Vice President & Chief Financial Officer
Thank you, Christine, and welcome to Pacific Continental Corporation’s conference call and webcast to discuss our fourth quarter and year-end 2014 results. Presenting today will be Roger Busse, President and Chief Executive Officer; Casey Hogan, Executive Vice President and Chief Operating Officer; and me. We will update you on our recent activities and discuss the financial results reported in our press release distributed after the market close January 21, 2015. Our press release is available on the Investor Relations section of our website at www.therightbank.com.
Before we commence the formal remarks, we advise you that this webcast contains forward-looking statements, which may include information about future profitability, loan growth, problem asset resolution, changes in the net interest margin, and anticipated cost savings. These statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. We undertake no obligation to publicly revise or update any forward-looking statements to reflect events or circumstances that arise in the future.
You should carefully review any risk factors described in the company’s periodic reports on Forms 10-K, 10-Q, 8-K, and any other documents filed with or furnished to the Securities and Exchange Commission. This statement is included for the expressed purpose of invoking the Safe Harbor Provisions for forward-looking statements under applicable law. Now let me introduce and turn the call over to Roger Busse, President and Chief Executive Officer of Pacific Continental Corporation.
Roger Busse – President & Chief Executive Officer
Thanks, Mick. Hello, welcome to today’s conference call and webcast discussing the results for our fourth quarter and also the year-end 2014. I will begin today’s conference call by briefly discussing fourth quarter year-end highlights of the core bank and then reflect on our strategic direction. At the conclusion, I will provide an update on the status of our previously announced acquisition of Capital Pacific Bank.
With regard to the core bank, Pacific Continental produced record net income for the year of $16 million. Fourth quarter results overall were in line with expectations discussed in our previous conference call. Highlights for the quarter included strong core deposit growth, continued expense control and improved efficiency ratio, stable net interest margin and solid credit metrics.
Minimal losses, very strong allowances at percentage of net non-performing loans and positive directional credit trends negated any need for addition to loan loss reserves. Loan growth continued for the 14th consecutive quarter albeit at a slower pace. Loan pipelines remains solids suggesting continued net loan growth.
We remain today in an intensive and competitive pricing environment, yet once again our pricing disciplines have help sustain our net interest margin. We will not sacrifice credit quality either losing credit standards to achieve growth. Rationally the bank is strategically focused on future growth both in terms of loans and deposits.
