Sunday, January 25, 2009

Oregon banks cut dividends

From the Portland Business Journal:

With little visibility into the economic future, Portland-area banks are cutting dividends to preserve precious cash.
Umpqua Bank parent Umpqua Holdings Inc., based in Portland, cut its quarterly dividend in December to 5 cents from prior payments of 19 cents per share.
l West Coast Bancorp, the Lake Oswego-based parent of West Coast Bank, cut its third and fourth-quarter dividends to 1 cent per share, down from 13.5 cents per share in the second quarter.
Some local banks have cut their dividends completely.
Riverview Bancorp Inc., the Vancouver-based parent of Riverview Community Bank, and Columbia Bancorp, based in The Dalles, both eliminated dividends in 2008.
Both banks are struggling with high loan losses due to failing construction loans.
Riverview said its capital ratio is 10.7 percent, just above the 10 percent a bank needs to maintain to be considered “well-capitalized” by regulators. Columbia has said it adequate reserves to meet its obligations.