Profile: Pacific Continental Corporation (PCBK.O)

Pacific Continental Corporation is a bank holding company located in Eugene, Oregon. The Company’s principal business activities are conducted through its full-service commercial bank subsidiary, Pacific Continental Bank (the Bank), an Oregon state-chartered bank with deposits insured by the Federal Deposit Insurance Corporation (FDIC). The Bank has two subsidiaries, PCB Service Corporation (inactive), which holds and manages Bank property, and PCB Loan Services (inactive), which manages certain other real estate owned. The Bank operates in three primary markets: Portland, Oregon / Southwest Washington market, Seattle, Washington market and Eugene, Oregon. As of December 31, 2008, the Bank operated 14 full-service offices in six Oregon and three Washington cities.

The Bank’s primary markets consist of the metropolitan Portland, which includes southwest Washington and Eugene areas in the State of Oregon and the metropolitan Seattle area in the State of Washington. The Bank has five full-service banking offices in the metropolitan Portland and Southwest Washington area, seven full-service banking offices in the metropolitan Eugene area, and two full-service offices in the metropolitan Seattle area. The Bank has its headquarters and administrative office in Eugene, Oregon.

Lending Activities

The Bank emphasizes specific areas of lending within its primary market areas, such as loans to community-based businesses, including professional service providers, not-for-profit organizations and private banking services for business owners and executives. Commercial loans, secured and unsecured, are made primarily to professionals, community-based businesses, and not-for-profit organizations. These loans are available for general operating purposes, acquisition of fixed assets, purchases of equipment and machinery, financing of inventory and accounts receivable, and other business purposes. The Bank also originates small business administration (SBA) loans and enjoys a national preferred lender status with the SBA.

Within its primary markets, the Bank also concentrates on construction loan financing for commercial facilities and for pre-sold, custom, and speculative home construction. The major thrust of residential construction lending is for the construction of single-family residences. The Bank also finances requests for multi-family residences. Fixed-rate and variable rate residential mortgage loans are offered through the Bank’s mortgage loan department. Most residential mortgage loans originated are sold in the secondary market along with the mortgage loan servicing rights. The Bank makes secured and unsecured loans to individuals for various purposes including purchases of automobiles, mobile homes, boats, and other recreational vehicles, home improvements, education, and personal investment. The Bank offers credit card services to its business customers and uses an outside vendor for credit card processing. In addition, the Bank provides merchant bankcard processing services, through an outside processor, for its business customers.

Investment Activities

All of the Company’s investment securities are accounted for as available-for-sale and are reported at estimated fair value. The Company's investment portfolio consisted of the United States Treasury, the United States Government agencies and corporations, and agency mortgage-backed securities; obligations of states and political subdivisions, and other mortgage-backed securities.

Sources of funds

The Bank offers a range of deposit services, including checking, savings, money market accounts and time deposits. The transaction accounts and time deposits are tailored to the Bank’s primary markets. Additional deposits are generated through national networks for institutional deposits and the state of Oregon and state of Washington for public time deposits. All deposit accounts are insured by the FDIC to the maximum amount permitted by law. The Bank has invested in image technology for the processing of checks. In addition, the Bank provides online cash management, remote deposit capture, and banking services to businesses and consumers. The Bank also allows customer access to deposit and loan information via telephone and online cash management products.

Merchant Card Services

The Bank provides merchant card services to its clients, which includes processing of credit card transactions and issuance of business credit cards. During the year ended December 31, 2008, the Company processed approximately $190 million in credit card transactions for its merchant clients.

Other Services

The Bank provides other commercial and consumer banking services, including cash management products for businesses, online banking, safe deposit services, debit and automated teller machine (ATM) cards, automated clearing house (ACH) transactions, savings bonds, cashier’s checks, travelers checks, notary services and others. The Bank is a member of numerous ATM networks and utilizes an outside processor for the processing of these automated transactions.