Pacific Continental shares fall on weak Q2 view
July 1 (Reuters) - Shares of Pacific Continental Corp (PCBK.O) fell as much as 13 percent Wednesday, a day after the lender forecast a surprise loss for the second quarter on increased loan loss provisions, prompting at least one brokerage to downgrade the stock.
Sandler O'Neil downgraded the stock to "sell" from "hold" on the company's weak quarterly outlook, but said "despite the poor credit performance, other operating metrics at the company appear strong".
On Tuesday, the bank holding company said it expects a second-quarter loss of 70 cents a share and loan loss provision of about $19.2 million, hurt by continued weakness in the Pacific Northwest residential real-estate markets.
Three analysts on an average were expecting a profit of 25 cents a share, before items, according to Reuters Estimates.
Shares of Eugene, Oregon-based Pacific Continental fell $1.58 to $10.55, before recouping some losses to trade down $1.49 at $10.64 later in the day on Nasdaq.
Pacific Continental shares have shed 29 percent of their value since the start of the year. (Reporting by Abhinav Sharma in Bangalore; Editing by Himani Sarkar)
