West Coast Community Bancorp, Parent of Santa Cruz County Bank, Reports Earnings for the Quarter Ended December 31, 2024; Board Declares Increase in Quarterly Cash Dividend

Core Insights - West Coast Community Bancorp reported unaudited earnings of $29.6 million for the year ended December 31, 2024, a decrease from $35.2 million in 2023. Adjusted net income, excluding merger-related charges, would have been $40.5 million for 2024 [1][4] - The merger with 1st Capital Bank, completed on October 1, 2024, significantly impacted financial results, with a net interest margin of 5.38% in Q4 2024, up from 4.93% in Q3 2024 [2][4] - A quarterly cash dividend of $0.19 per common share was declared, reflecting confidence in the long-term outlook post-merger [2][3] Financial Performance - Quarterly net income for Q4 2024 was $3.8 million, down from $8.2 million in Q3 2024 and $8.8 million in Q4 2023, primarily due to increased merger-related expenses [4][14] - Total assets reached $2.68 billion as of December 31, 2024, a 49% increase compared to September 30, 2024, largely due to the merger [4][22] - Deposits totaled $2.3 billion at December 31, 2024, reflecting a 51% increase from the previous quarter, driven by the merger [4][22] Loan and Asset Quality - Gross loans increased by $650.7 million or 47% from September 30, 2024, largely due to the merger, with nonaccrual loans decreasing to $618 thousand or 0.03% of gross loans [19][20] - The allowance for credit losses was $31.6 million at December 31, 2024, representing 1.55% of total loans, reflecting the growth from the merger [20][21] Capital and Liquidity - Total shareholders' equity increased to $333.0 million at December 31, 2024, a 30% increase from September 30, 2024, due to common stock issuance as part of the merger [25][26] - The Bank's liquidity position showed net available liquidity sources of $1.45 billion, exceeding uninsured and uncollateralized deposits by 131% [15][16] Investment Portfolio - The investment portfolio expanded from $205.8 million as of September 30, 2024, to $407.7 million as of December 31, 2024, mainly due to acquisitions through the merger [17][18] - Net unrealized losses on available-for-sale securities totaled $18.8 million at December 31, 2024, reflecting market conditions [17][26]