Pacific Continental Corp. in Eugene, Ore., said Monday that it expects to post fourth-quarter earnings of 28 cents a share, or 2 cents shy of the average of analysts' estimates, because of problem residential construction loans.
The $900 million-asset Pacific Continental said it expects to report that fourth-quarter earnings rose 6% from a year earlier, to $3.3 million.
As it had previously warned, it said it would report that nonperforming assets more than doubled, to $4.1 million, because of problems in an "isolated segment" of its residential construction portfolio. Because of a cash-secured, 20% principal guarantee for each of the loans, Pacific Continental said it does not expect any significant losses on these or future nonperforming loans in the portfolio.
In addition, the company said that it expects to report $344,000 of chargeoffs for two bad commercial loans that are not related to the residential construction portfolio.
