The $2.4 billion-asset company reported on Friday that profit for the quarter jumped nine-fold from a year earlier, to $17.8 million. Its full-year profit of $33.8 million was more than 10 times higher than what it made in 2010.
During the fourth quarter, West Coast reversed its remaining deferred tax asset valuation allowance, generating a benefit for income taxes of $17.6 million for the quarter and $20.2 million for the year.
The company also prepaid $80 million in Federal Home Loan Bank term borrowings in the fourth quarter, incurring a $4.4 million charge. It also incurred roughly $1 million in expenses associated with branch closures and staff reductions. The bank said in August that it would close three of its 62 branches.
With these changes and an $88 million FHLB prepayment in the third quarter, West Coast projected that it would improve its pretax income by $5.8 million to $6 million in 2012.
Total average loans in the fourth quarter fell 4% from a year earlier, to $1.5 billion, because of higher-than-expected loan payoffs and a greater-than-expected resolution of nonaccrual loans.
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