Comparing the current results to its competitors, Pacific Continental reported Revenue increase in the 3 quarter 2017 by 22.19 % year on year. The sales growth was above Pacific Continental's competitors' average revenue growth of 9.77 %, achieved in the same quarter.
Pacific Continental CorpNet Income in the 3 quarter 2017 grew year on year by 77.8%, faster than the Pacific Continental's competitors average income growth of 11.24 %
Pacific Continental's Comment on Competitors and Industry Peers
Commercial banking in the States of Oregon and Washington is highly competitive.
The Company competes with other banks, as well as with savings and loan associations,
savings banks, credit unions, mortgage companies, investment banks, insurance
companies, and other financial institutions. Banking in Oregon and Washington
is dominated by several large banking institutions including U.S. Bank, Wells
Fargo Bank, Bank of America, Key Bank and Chase. Together these banks account
for a majority of the total commercial and savings bank deposits in Oregon and
Washington. These competitors have significantly greater financial resources
and offer a much greater number of branch locations. The Company offsets the
advantage of the larger competitors by focusing on certain market segments,
providing high levels of customization and personal service, and tailoring its
technology, products and services to the specific market segments that the Company
serves.
In addition to larger institutions, numerous “community” banks and
credit unions operated, expanded or moved into the Company’s three primary
markets and have developed a similar focus to that of the Company. These institutions
have further increased competition in all three of the Company’s primary
markets. This number of similar financial institutions and an increased focus
by larger institutions in the Company’s primary markets has led to intensified
competition in all aspects of the Company’s business. During 2015, the
Company saw increased competition, specifically regarding loan pricing. The
Bank saw competitors willing to accept yields or terms not desirable to the
Company and some deals were lost due to the Company’s unwillingness to
compromise on deal pricing. The Company remained diligent in its underwriting
standards during the year and did not loosen credit standards to achieve growth.
The adoption of the Gramm-Leach-Bliley Act of 1999 (the “GLB Act”)
led to further intensification of competition in the financial services industry.
The GLB Act eliminated many of the barriers to affiliation among providers of
various types of financial services and has permitted business combinations
among financial service providers such as banks, insurance companies, securities
or brokerage firms and other financial service providers. Additionally, the
rapid adoption of financial services through the Internet has reduced or even
eliminated many barriers to entry by financial service providers physically
located outside our market areas. For example, remote deposit services allow
depository companies physically located in other geographical markets to service
local businesses with minimal cost of entry. Although the Company has been able
to compete effectively in the financial services business in its markets to
date, it may not be able to continue to do so in the future.