Pacific Continental Bank sees earnings drop after buying Capital Pacific Bank; 1-800Flowers.com reports $10.5 million loss.
BY JACOB PALMER | DIGITAL NEWS EDITOR
Eugene-based Pacific Continental Bank acquired Capital Pacific Bank, of Portland, in March, but the merger trimmed the parent bank’s first-quarter earnings.
Profits were down $3.6 million from the fourth quarter of 2014, OregonLive.com reports.
Chief executive Roger Busse said he expects the deal to boost the bank’s future performance, particularly because the bank is now larger in Portland. Portland-based deposits more than doubled over the past year, from $234.6 million to nearly $517 million. Loans increased 53 percent, from $400.5 million to $612.7 million. It picked up a total of $199.9 million in loans from Capital Pacific.
Pacific Continental also booked $10 million more in “organic loans” not tied to the acquisition during the first quarter. Executives reported $1.24 billion in overall loans after allowing for losses. That compares with $1 billion in first quarter 2014. Over the year, assets expanded from $1.47 billion to $1.78 billion. Deposits increased from $990.9 million to $1.41 billion, and liabilities from $1.29 billion to $1.57 billion.
A quarterly dividend of 10 cents per share was approved by the board.
Medford-based Harry & David was acquired by 1-800Flowers.com in September, and that merger also cut into quarterly profits as the parent company reported a $10.5 million loss in the third quarter.
From the Medford Mail Tribune:
1-800Flowers.com Tuesday reported a fiscal third quarter loss of $10.5 million, or 16 cents per share, compared with a net loss of $1.4 million, or 2 cents per share, a year earlier. The florist and gift shop said revenue grew 29.3 percent to $232.2 million for the period ending March 29, up from $179.6 million a year ago. The company said the increased revenue primarily reflected contributions from Harry & David. Harry & David operating expenses, however, helped nudge 1-800-Flowers’ operating expense ratio to 48 percent from 42.6 percent.
“During the fiscal third quarter, we saw solid performance across all of our business segments while facing a number of headwinds, most notably the significant seasonality of the Harry & David business, the Saturday placement of the Valentine holiday and the lingering impacts of the Thanksgiving Day fire on our Fannie May Fine Chocolates business,” CEO Jim McCann told investors and analysts. “Regarding Harry & David, during the third quarter, while the business generated an anticipated loss, we were pleased to see year-over-year improvements in both top- and bottom-line results. As we continue our integration of Harry & David, we plan to build on this by leveraging our business platform, our growing family of gift brands and the millions of customers we serve across all of our business channels.”
Harry & David’s presence in the company spurred a $57.7 million gain in gourmet food and gift basket sales.
