Columbia Bancorp Generates Strong Profits in 1Q05; Net Income Rose 64% Producing ROE of 19.89% and ROA of 1.84%.THE DALLES dalles pl.n. The rapids of a river that runs between the steep precipices of a gorge or narrow valley. [French, pl. of dalle, gutter, from Old French, from Old Norse dæla.] , Ore. -- Columbia Columbia, cities, United States Columbia (kəlŭm`bēə). 1 City (1990 pop. 75,883), Howard co., central Md., between Washington, D.C., and Baltimore. Bancorp (Nasdaq: CBBO), the financial holding company for Columbia River Columbia River River, southwestern Canada and northwestern U.S. Rising in the Canadian Rockies, it flows through Washington state, entering the Pacific Ocean at Astoria, Ore.; it has a total length of 1,240 mi (2,000 km). Bank, today reported excellent asset quality, a solid net interest margin and a 64% increase in profits in the first quarter of 2005 as compared to the same quarter a year ago. First quarter net income increased to $3.3 million, or $0.36 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, from $2.0 million, or $0.22 per diluted share, in the first quarter of 2004 and down from $3.5 million, or $0.39 per diluted share, in the fourth quarter of 2004. "The state of Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. continues to show steady economic improvement due to the health of the state's small businesses, which also are our target market. Small businesses comprise 60% of Oregon's employment and are credited with virtually all of the net new job creation over the past few years by the National Federation of Independent Business The National Federation of Independent Business (NFIB) is a lobbying organization with offices in Washington, D.C. USA, and in all 50 state capitals. NFIB claims a membership base in excess of 600,000. , America's largest small-business advocacy group," said Roger Christensen Christensen may refer to:
n. Variant of brit. Noun 1. britt - the young of a herring or sprat or similar fish brit young fish - a fish that is young 2. Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs , Chief Credit Officer. FIRST QUARTER 2005 FINANCIAL HIGHLIGHTS --Return on Equity (ROE A fictitious surname used for an unknown or anonymous person or for a hypothetical person in an illustration. A lawsuit is generally named for the persons who are parties to it. ) was 19.89% --Return on Assets (ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). ) was 1.84% --Net Interest Margin (NIM nim 1 tr. & intr.v. nimmed, nim·ming, nims Archaic To steal; pilfer. [Middle English nimen, to take, from Old English niman; see ) was 5.82% --Efficiency Ratio was 54.92% INCOME STATEMENT PERFORMANCE First quarter revenue (net interest income plus non-interest income) grew 23% to $12.0 million compared to $9.7 million in the first quarter of 2004. Net interest income before the provision for loan losses grew 19% to $9.7 million in the first quarter of 2005. Net interest margin on a tax equivalent basis was 5.82% for the first quarter 2005, compared to 6.21% in the first quarter a year ago and 5.60% in the fourth quarter of 2004. "As expected, the net interest margin improved by 22 basis points from the prior quarter," stated Greg GREG Great Egg Harbor National Scenic and Recreational River (US National Park Service) Spear, Chief Financial Officer. "This increase is largely attributable to the collection of past-due interest from the single $3.1 million loan, which in the previous quarter was on non-accrual status. The collection of $336,000 in past-due interest associated with the previous year increased our diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of by $0.02 in the first quarter 2005 on a pro-forma basis." The provision for loan losses was $200,000 in the first quarter of 2005 compared to $700,000 in the first quarter of 2004, reflecting the improvement in asset quality across the entire portfolio. Non-interest income totaled $2.3 million in the first quarter of 2005 compared to $1.6 million in the same period of 2004. "Some of the positive contributors to our non-interest income were from mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. , increased mortgage production, increased financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. revenue and growth in service charges and fee income," stated Christensen. "During the past 12 months, we have opened two new branches and plan to continue opening one or two new branches each year as we strengthen our market relationships and grow the franchise," said Craig Craig , Edward Gordon 1872-1966. British theatrical producer, director, and designer whose innovative productions and simplified stage designs influenced modern theater. Ortega, Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "Data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a costs were down 12%, reflecting technology upgrades that are enhancing efficiency and customer service." Overhead expenses grew moderately in the first quarter as a result of investments in our infrastructure, rising 12% to $6.6 million from $5.9 million in the first quarter of 2004, with compensation costs rising 15% and occupancy expense up 34%. Our efficiency ratio, which is a measurement of operating efficiencies, improved in the first quarter to 54.92% from 60.39% in the first quarter a year ago as a result of higher overall revenues. The efficiency ratio, calculated by dividing non-interest expense by net interest income and non-interest income, measures overhead costs overhead costs see fixed costs. as a percentage of total revenues. BALANCE SHEET PERFORMANCE The loan portfolio grew 19% to $583 million at March 31, 2005, compared to $491 million at March 31, 2004. "Loan demand is strong and is expected to be robust for 2005 in all of our markets, led by Central Oregon Central Oregon is a geographical region lying near the center of the U.S. state of Oregon. It is commonly considered to include Deschutes, Jefferson, and Crook counties. Primary cities in Central Oregon are La Pine, Sunriver, Bend, Redmond, Madras, and Prineville. , and Kennewick, Washington Kennewick is a city in Benton County in southeastern Washington. It is the most populous of the three cities collectively referred to as the Tri-Cities (the others being Pasco and Richland). ," said Shane Shane a classic, serious western film about a pioneer family protected by a mysterious stranger. [Am. Cinema: Halliwell, 651] See : Wild West Correa Correa may refer to:
"Asset quality at the end of the first quarter was excellent with non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. at 0.12% of gross loans," said Thomas. Total non-performing assets at the end of the quarter were $789,000, or 0.11% of total assets, compared to $3.1 million, or 0.52% of total assets, at March 31, 2004. "Underlying these improved numbers is a lending team that has put a lot of effort into improving our processes in order to maintain excellent loan quality. Over the past year, we have upgraded our underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. standards, and our team's efforts are reflected in these results." Net charge-offs in the first quarter totaled $135,000, or 0.02% of gross loans, at March 31, 2005, compared to $436,000, or 0.08% of gross loans, for the same quarter of 2004 and $86,000, or 0.01% of gross loans, at December December: see month. 31, 2004. The carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of the mortgage servicing asset at March 31, 2005, was $2.0 million, which represents 65 basis points of serviced mortgage loans. "We are confident the valuation of this asset is conservative and in a rising rate environment believe we will be able to complete a sale of the mortgage servicing asset this year," said Spear. Total deposits increased 26% to $636 million at March 31, 2005, compared to $504 million a year earlier. "Our strategy is to build deposits through focused marketing of business customers and remaining competitive on rates, which is producing solid results," Correa noted. Core deposits (excluding time certificates) increased 21% to $457 million over the same period in 2004, and account for 72% of total deposits at the end of the quarter. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. increased 16% to $68.8 million, or $7.73 per share, at March 31, 2005, compared to $59.1 million, or $6.73 per share, at March 31, 2004. Tangible book value per share at March 31, 2005, was $6.67 compared to $5.53 at March 31, 2004. LOOKING AHEAD "We will be applying to the FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). to open an additional branch in The Dalles, Oregon. This new branch will be a strong addition to our presence in our hometown home·town n. The town or city of one's birth, rearing, or main residence. Noun 1. hometown - the town (or city) where you grew up or where you have your principal residence; "he never went back to his hometown again" , making it our third office in the community and our sixth branch in the Columbia River Gorge area. It will feature a coffee shop and a five-lane drive through, including one for coffee, and offer added convenience for our customers while supporting the downtown office in The Dalles," said Ortega. "We are delighted with the solid start for 2005 and believe the coming year offers great opportunities for further growth and profitability. Our employees, customers and shareholders have come to expect Columbia to exceed their expectations, and that is what we plan to deliver on for the remainder of 2005," said Christensen. "We are off to a great start in the first quarter, and we invite all shareholders and interested investors to join us for our Annual meeting tomorrow at The Dalles' Discovery Center at 5:45 p.m." EARNINGS TELECONFERENCE AND WEBCAST Columbia will conduct a teleconference and webcast on Wednesday Wednesday: see week. , April 27, 2005, at 12:00 noon Pacific Time (3:00 p.m. Eastern Time) when management, led by Roger Christensen, will discuss 1Q05 results. To participate in the call, dial 1-888-339-2688. The conference ID number to access the call is 24369769. The live webcast can be heard by going to Columbia Bancorp's website, www.columbiabancorp.com under the Investor Relations Investor relations The process by which the corporation communicates with its investors. section and clicking on Presentations/Webcast. The call replay will be available starting two hours after the completion of the live call, until April 30, 2005. To listen to the replay, dial 1-888-286-8010 and use access code 67243393. In addition, the webcast will be archived on Columbia Bancorp's website. ABOUT COLUMBIA BANCORP Columbia Bancorp (www.columbiabancorp.com) is the financial holding company for Columbia River Bank, which operates 20 branches located in The Dalles (2), Hood River The Hood River is a tributary of the Columbia River in northwestern Oregon in the United States. Approximately 25 mi (40 km) long from its mouth to its farthest headwaters on the East Fork, the river descends from wilderness areas in the Cascade Range on Mount Hood and flows , Bend (4), Madras Madras. 1 State and former province, India: see Tamil Nadu. 2 City, India: see Chennai. , Redmond Redmond, city (1990 pop. 35,800), King co., W Wash., a suburb of Seattle, on Lake Sammamish; inc. 1912. Its economy centers around computer software (Microsoft Corp. (2), Pendleton Pendleton, city (1990 pop. 15,126), seat of Umatilla co., NE Oreg., on the Umatilla River, in the foothills of the Blue Mts.; founded 1869 on the old Oregon Trail, inc. 1889. , Hermiston, McMinnville McMinnville, city (1990 pop. 17,894), seat of Yamhill co., NW Oreg.; inc. 1876. It is a trade and processing center in the fertile Willamette valley. Foods, textiles, and building materials are produced, and there are wineries. Linfield College is in McMinnville. (3), Canby and Newberg, Oregon Newberg is a city in Yamhill County, Oregon, United States. A tradition holds that this town was named by its first postmaster, Sebastian Brutscher, for his former hometown of Neuberg in Germany. One of the current streets, Brutscher Street, is named after him. , and in Goldendale, White Salmon and Kennewick, Washington. Columbia River Bank also provides mortgage-lending services through CRB CRB See: Commodity Research Bureau. Mortgage Team and brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. services through CRB Financial Services Team. FORWARD-LOOKING STATEMENTS forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Forward-looking statements about the financial condition, results of operations, plans and business of Columbia are subject to various risks and uncertainties that could cause actual results to differ materially from those set forth in this release. These include, without limitation, changes in the overall economic condition and interest rate markets that would impact our interest rate margins and our operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. ; our ability to accurately assess the value of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. and to monitor loan quality and loan loss reserve adequacy; our ability to timely collect non-performing loans or to realize on the underlying collateral; the impact of competition on revenues and margins and on our expansion strategy, Columbia's ability to open and generate growth from new branches, achieve resolution on non-performing assets, and other risks and uncertainties, including statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the year 2005, some of which are described from time to time in our public announcements and filings with the Securities and Exchange Commission ("SEC"). Some forward-looking statements can be identified by the use of forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. terminology, such as "believe," "will," "should," "expect," "anticipate," "estimate," "continue," "plans," "hope," or other similar terminology. Forward-looking statements offered in this release are accurate only as of the date released, and we do not intend to update these forward-looking statements to reflect subsequent events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or .
INCOME STATEMENT
(Unaudited)
(In thousands, except per share data and ratios)
Three Months Ended %
March 31, Change
----------------- ------
2005 2004
------- ------
Interest income $12,172 $9,607 27%
Interest expense 2,511 1,467 71%
------- ------
Net interest income before provision
for loan losses 9,661 8,140 19%
Provision for loan losses 200 700 -71%
------- ------
Net interest income
after provision for loan losses 9,461 7,440 27%
Non-interest income:
Service charges and fees 1,173 1,056 11%
Credit card discounts and fees 113 105 8%
CRB Financial Services Team revenues 144 136 6%
Mortgage servicing, net 89 (240) 137%
Gain on sale of mortgage loans 45 72 -38%
Mortgage loan origination income 326 218 50%
Other non-interest income 413 234 76%
------- ------
Total non-interest income 2,303 1,581 46%
Non-interest expense:
Salaries and employee benefits 3,687 3,201 15%
Occupancy expense 797 596 34%
Data processing 100 114 -12%
Other non-interest expense 1,987 1,960 1%
------- ------
Total non-interest expense 6,571 5,871 12%
------- ------
Income before provision for income
taxes 5,193 3,150 65%
Provision for income taxes 1,880 1,133 66%
------- ------
Net income $ 3,313 $2,017 64%
======= ======
Earnings per common share
Basic $ 0.37 $ 0.23 62%
Diluted 0.36 0.22 65%
Cumulative dividend per common share 0.09 0.09 0%
Weighted average shares outstanding
Basic 8,868 8,769
Diluted 9,105 9,053
Actual shares outstanding 8,890 8,776
Year to Date
-------------------
March 31, March 31,
RATIOS 2005 2004
--------- ---------
Interest rate yield on interest-
earning assets, tax equivalent 7.32% 7.32%
Interest rate expense on
interest-bearing liabilities 2.09% 1.57%
Interest rate spread, tax
equivalent 5.23% 5.75%
Net interest margin, tax
equivalent 5.82% 6.21%
Efficiency ratio (1) 54.92% 60.39%
Return on average assets 1.84% 1.39%
Return on average equity 19.89% 13.80%
Average equity / average assets 9.24% 10.07%
(1) Non-interest expense divided by net interest income and
non-interest income.
BALANCE SHEET
(Unaudited)
(In thousands, except per share data)
Year Year
over to
March 31, March 31, Year December 31, Date
ASSETS 2005 2004 % Change 2004 % Change
Cash and cash
equivalents $ 96,807 $ 46,128 110% $ 57,979 67%
Investment securities 37,519 31,123 21% 45,398 -17%
Loans:
Commercial loans 99,338 90,155 10% 93,618 6%
Agricultural loans 71,385 65,278 9% 79,224 -10%
Real estate loans 255,212 218,500 17% 247,045 3%
Real estate loans -
construction 130,811 91,746 43% 139,415 -6%
Consumer loans 14,259 16,611 -14% 14,386 -1%
Loans held for sale 4,188 2,193 91% 2,517 66%
Other loans 7,791 6,939 12% 7,660 2%
-------- -------- --------
Total gross loans 582,984 491,422 19% 583,865 0%
Unearned loan fees (1,421) (1,484) -4% (1,556) -9%
Allowance for loan
losses (8,249) (6,876) 20% (8,184) 1%
-------- -------- --------
Net loans 573,313 483,062 19% 574,125 0%
Property and
equipment, net 15,144 13,914 9% 15,223 -1%
Goodwill 7,389 7,389 0% 7,389 0%
Mortgage servicing
asset, net 2,046 3,175 -36% 2,163 -5%
Other assets 11,769 13,513 -13% 13,096 -10%
-------- -------- --------
Total assets $743,987 $598,304 24% $715,373 4%
======== ======== ========
LIABILITIES
Deposits:
Non-interest
bearing demand
deposits $187,787 $153,650 22% $172,422 9%
Interest bearing
demand deposits 233,050 186,381 25% 211,240 10%
Savings accounts 36,272 36,233 0% 35,926 1%
Time certificates 178,718 127,894 40% 187,356 -5%
-------- -------- --------
Total deposits 635,827 504,158 26% 606,944 5%
Borrowings 37,545 30,751 22% 39,014 -4%
Other liabilities 1,865 4,299 -57% 3,538 -47%
-------- -------- --------
Total
liabilities 675,237 539,208 25% 649,496 4%
Shareholders' equity 68,750 59,096 16% 65,877 4%
-------- -------- --------
Total
liabilities
and
shareholders'
equity $743,987 $598,304 24% $715,373 4%
======== ======== ========
Book value per common
share $ 7.73 $ 6.73 15% $ 7.45 4%
Tangible book value
per common share (1)$ 6.67 $ 5.53 21% $ 6.37 5%
(1) Total common equity, less goodwill and other intangible assets,
divided by actual shares outstanding.
ADDITIONAL FINANCIAL INFORMATION
(Unaudited)
(In thousands, except quantities and ratios)
March 31, March 31,
NON-PERFORMING ASSETS 2005 2004
--------- ---------
Delinquent loans on non-accrual status $ 705 $ 1,703
Delinquent loans on accrual status - 11
Restructured loans - 10
-------- --------
Total non-performing loans 705 1,724
Other real estate owned 84 1,401
-------- --------
Total non-performing assets $ 789 $ 3,125
======== ========
Total non-performing assets / total assets 0.11% 0.52%
Quarter Ended
---------------------
March 31, March 31,
ALLOWANCE FOR LOAN LOSSES 2005 2004
--------- ---------
Balance at beginning of period $ 8,184 $ 6,612
Provision for loan losses 200 700
Recoveries 17 9
Charge offs (152) (445)
-------- --------
Balance at end of period $ 8,249 $ 6,876
======== ========
Allowance for loan losses / gross loans and
loans held for sale 1.42% 1.40%
Non-performing loans / allowance for loan
losses 8.55% 25.07%
Quarter Ended
---------------------
March 31, March 31,
OPERATING PERFORMANCE 2005 2004
--------- ---------
Average interest-earning assets $679,128 $532,901
Average gross loans and loans held for sale 578,409 483,297
Average assets 731,022 583,629
Average interest-bearing liabilities 486,378 376,448
Average interest-bearing deposits 448,218 348,400
Average deposits 622,459 493,254
Average liabilities 663,473 524,841
Average equity 67,548 58,788
Quarter Ended
---------------------
March 31, March 31,
MORTGAGE SERVICING 2005 2004
--------- ---------
Mortgage servicing asset, net $ 2,046 $ 3,175
Mortgage loans serviced $313,857 $411,842
Mortgage loans serviced number (quantity) 2,782 3,530
Mortgage loans produced (quantity) 152 123
Mortgage servicing asset multiple 0.65% 0.77%
MORTGAGE SERVICING ASSET Q1 Year End Year End Year End
RECONCILIATION 2005 2004 2003 2002
------- ------- ------- -------
Mortgage servicing asset (MSA),
beginning $2,163 $3,691 $4,614 $6,197
Add servicing retained premiums - 93 1,935 2,227
Deduct MSA amortization (117) (1,621) (2,000) (1,029)
Deduct MSA valuation adjustments - - (858) (2,781)
------- ------- ------- -------
Mortgage servicing asset, ending $2,046 $2,163 $3,691 $4,614
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