Pacific Continental Corp., the holding company for Pacific Continental Bank, on Wednesday reported a profit of $1.2 million for the third quarter ended Sept. 30, compared with $279,000 for the same quarter last year.
It was the bank’s fifth consecutive profitable quarter.
Earnings per diluted share were 6 cents for the third quarter of 2010, up from 2 cents for the third quarter of 2009.
For the first nine months of the year, Pacific Continental, which is based in Eugene, reported a profit of $3.9 million, compared with a loss of $4.9 million for the same period a year ago.
“I am pleased with the progress we have made in this challenging economy,” CEO Hal Brown said. “While the economic conditions continue to remain difficult and uncertain, as evidenced by an increase in our nonperfoming assets, we remain cautiously optimistic that we have turned the corner on this deep credit cycle.”
As of Sept. 30, nonperforming assets — typically loans that are overdue — stood at $58 million, or 4.86 percent of total assets. That’s up from $48.9 million, or 4.16 percent, as of June 30.
Nonperforming assets for the quarter rose because planned resolutions of three problem assets were unexpectedly delayed, said Roger Busse, president and chief operating officer. “However, those resolutions remain on track, and are expected to be executed during the fourth quarter, which should offset the increases and potentially provide a sizeable recovery.”
The bank’s provision for loan losses in the third quarter of 2010 remained elevated compared with prerecession levels. But it has been heading down over the past six quarters. The provision for loan losses in the third quarter was $3.8 million in the third quarter of 2010, compared with $8.3 million in the third quarter of 2009.
In the third quarter of 2010, Pacific Continental charged off $3.8 million in loans gone sour, down significantly from $8.6 million in the third quarter of 2009.
Pacific Continental Bank is the operating subsidiary of Pacific Continental. It has $1.2 billion in assets and operates 14 offices in Oregon and Washington.