West Coast Bancorp in Lake Oswego, Ore., reported net income Friday of $6.1 million in the third quarter, making it the company's first profitable quarter in more than two years.
The $2.5 billion-asset company attributed the earnings to lower credit costs as nonperforming assets declined for a sixth consecutive quarter.
A higher net interest margin, lower-cost funding and a growing core deposit base contributed to the swing to profit, Chief Executive Officer Robert Sznewajs said in a press release.
West Coast's third-quarter performance put the company in the black for the year, with aggregate earnings of $1.3 million to date.
It lost $12.4 million in the third quarter of 2009.
The Oregon company reduced its provision for loan losses by 92.6%, to $1.5 million, from $20.3 million the year earlier.
Nonperforming assets fell 50% from a year earlier, to $104.4 million, or 4.2% of total assets, compared with 7.9% at Sept 30, 2009.