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LONG-TERM BORROWINGS AND JUNIOR SUBORDINATED DEBT
9 Months Ended
Sep. 30, 2011
Debt Disclosure [Abstract] 
Debt Disclosure [Text Block]
9. LONG-TERM BORROWINGS AND JUNIOR SUBORDINATED DEBT
 
     The following table summarized Bancorp’s long-term borrowings for the periods shown:
 
(Dollars in thousands)     September 30, 2011 December 31, 2010
FHLB non-putable advances $     110,281     $138,599
FHLB putable advances  20,000  30,000
Total long-term borrowings $130,281 $     168,599
       
     Long-term borrowings consisting of notes with fixed maturities and structured advances with the FHLB totaled $130.3 million at September 30, 2011, compared to long-term borrowings of $168.6 million at December 31, 2010. The decrease in long-term borrowings of $38.3 million during the first nine months of 2011 was due to advances totaling $39.2 million becoming short-term (which were paid off in the third quarter), a $39.1 million prepayment of eight long-term borrowings, a $10.0 million prepayment of a structured, or putable, advance, and the addition of three new long-term advances totaling $50.0 million. The Company incurred a prepayment charge of $2.8 million related to the prepayment of $88.3 million of FHLB borrowings in the nine months ended September 30, 2011, as compared to a prepayment charge of $2.3 million associated with the prepayment of $99.1 million in such borrowings the first nine months of 2010. At September 30, 2011, Bancorp’s remaining long-term borrowings with fixed maturities, or non-putable advances, were $110.3 million, with rates ranging from 0.81% to 4.20%. Bancorp also had two structured, or putable, advances totaling $20.0 million, with original terms of five years and rates ranging from 2.45% to 3.78%. The scheduled maturities on these structured advances occur in August 2013 and March 2014, although the FHLB may under certain circumstances require payment prior to maturity. At September 30, 2011, principal payments due at scheduled maturity of Bancorp’s total long-term borrowings are $90.3 million in 2013 and $40.0 million in 2014.
 
     Bancorp had no outstanding federal funds purchased from correspondent banks, borrowings from the discount window or reverse repurchase agreements at September 30, 2011.
  
     At September 30, 2011, six wholly-owned subsidiary grantor trusts established by Bancorp had an outstanding balance of $51.0 million in trust preferred securities. Under our December 2009 Written Agreement with the Oregon Department of Consumer and Business Services, Division of Finance and Corporate Securities (“DFCS”) and the Reserve Bank, the Company must request regulatory approval prior to making interest or other payments on its trust preferred securities. Bancorp has no deferred interest on its trust preferred securities at September 30, 2011.
 
     The following table is a summary of outstanding trust preferred securities issued by the grantor trusts and guaranteed by Bancorp:
 
(Dollars in thousands)
 
    Preferred   Rate at   Next possible
Issuance Trust     Issuance date     security amount     Rate type 1     9/30/11     Maturity date     redemption date2
West Coast Statutory Trust III September 2003 $     7,500 Variable 3.30% September 2033 Currently redeemable
West Coast Statutory Trust IV March 2004  6,000 Variable 3.14% March 2034 Currently redeemable
West Coast Statutory Trust V April 2006  15,000 Variable 1.78% June 2036 Currently redeemable
West Coast Statutory Trust VI December 2006  5,000 Variable 2.03% December 2036 December 2011
West Coast Statutory Trust VII March 2007  12,500 Variable 1.90% March 2037 March 2012
West Coast Statutory Trust VIII June 2007  5,000 Variable 1.73% June 2037 June 2012
       Total   $51,000 Weighted rate 2.21%    
              
1 The variable rate preferred securities reprice quarterly.
2 Securities are redeemable at the option of Bancorp following these dates.
  
     Bancorp accounts for intercompany fees and services at fair value according to regulatory requirements for the service provided. Intercompany items relate primarily to the provision of accounting, human resources, data processing and marketing services.
 
     Summarized financial information concerning Bancorp’s reportable segments and the reconciliation to Bancorp’s consolidated results are shown in the following table. The “Other” column includes Bancorp’s trust operations and corporate-related items, including interest expense related to trust preferred securities. Investment in subsidiaries is netted out of the presentations below. The “Intersegment” column identifies the intersegment activities of revenues, expenses and other assets between the “Banking” and “Other” segments.
 
(Dollars in thousands) Three months ended September 30, 2011
      Banking     Other     Intersegment     Consolidated
Interest income $     24,711  $     10  $     -  $     24,721 
Interest expense  5,104   276   -   5,380 
       Net interest income (expense)  19,607   (266)  -   19,341 
Provision for credit losses  1,132   -   -   1,132 
Noninterest income  7,931   754   (271)  8,414 
Noninterest expense  21,982   909   (271)  22,620 
       Income (loss) before income taxes  4,424   (421)  -   4,003 
Benefit for income taxes  (2,109)  (164)  -   (2,273)
       Net income (loss) $6,533  $(257) $-  $6,276 
                 
Depreciation and amortization $2,349  $8  $-  $2,357 
Assets $2,516,335  $15,227  $(10,315) $2,521,247 
Loans, net $1,467,310  $-  $-  $1,467,310 
Deposits $2,000,518  $-  $(9,740) $1,990,778 
Equity $334,746  $(37,879) $-  $296,867 
   
(Dollars in thousands) Three months ended September 30, 2010
  Banking Other Intersegment Consolidated
Interest income $     26,037  $     16  $     -  $     26,053 
Interest expense  3,866   312   -   4,178 
       Net interest income (expense)  22,171   (296)  -   21,875 
Provision for credit losses  1,567   -   -   1,567 
Noninterest income  7,612   744   (287)  8,069 
Noninterest expense  22,403   887   (287)  23,003 
       Income (loss) before income taxes  5,813   (439)  -   5,374 
Provision (benefit) for income taxes  (505)  (171)  -   (676)
       Net income (loss) $6,318  $(268) $-  $6,050 
                 
Depreciation and amortization $2,201  $9  $-  $2,210 
Assets $2,481,955  $16,782  $(12,358) $2,486,379 
Loans, net $1,533,698  $-  $-  $1,533,698 
Deposits $1,986,850  $-  $(11,795) $1,975,055 
Equity $312,783  $(38,076) $-  $274,707