Columbia Bancorp Net Income Reaches $1.1 Million or $.14 Per Share; First Quarter Net Interest Income Increases 27 Percent to $4.1 Million.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.--(BUSINESS WIRE)--April 19, 1999-- 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) today reported first quarter net income was $1.1 million, or $.14 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, compared to $1.0 million, or $.14 per diluted share, in the first quarter of 1998. Per share results remained flat because of a 14% increase in the weighted average shares outstanding due to the company's public offering of one million shares in November November: see month. 1998. Comprehensive income was $965,000 due to fluctuations in Columbia's investment securities portfolio. Cash earnings in the first quarter were $.16 per diluted share compared to $.14 per diluted share in the like quarter a year ago. Cash earnings are earnings before the amortization of goodwill. Goodwill is added to the company's balance sheet when it purchases another institution for a price that is in excess of the fair value of net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. acquired. Each quarter Columbia takes a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. to write off a portion of the goodwill, which effectively reduces reported earnings. "We have invested significantly in expansion and infrastructure to support future growth and we have remained solidly profitable despite these investments," said Terry Cochran, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Assets jumped 38%, net loans are up 26%, and deposits have increased 39% over the last 12 months. "Strong loan growth was instrumental in our 28% increase in net interest income," Cochran added. "Year-over-year, we increased the size of our loan portfolio by more than 26% to $202.4 million at the end of March compared to $160.3 million a year ago." Columbia's net interest income after the provision for loan losses increased to $3.8 million compared to $3.0 million in the first quarter a year ago. The Bancorp's net interest margin remained strong at 5.85%, while it was 6.27% in the year ago quarter. Non-interest income for the first quarter was up 77% to $1.4 million compared to $766,000 a year ago. The increase resulted from service charges, fees generated from mortgage lending services through 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 Mortgage Group and gains on 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. rights. "As expected, recent expansion activities have increased 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. . The new branch in Hermiston broke-even during the quarter and we expect the 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. branch to break-even in the second quarter," said Cochran. Non-interest, or operating, expense totaled $3.4 million during the quarter, up from $2.3 million in like quarter a year ago. Columbia's efficiency ratio for the quarter was 62.8% compared to 57.0% in the year ago quarter. On a cash basis, excluding the goodwill amortization cost, the efficiency ratio was 59.9% compared to 57.0% a year ago. "As our new branches reach break-even status we think our overall corporate efficiency should once again improve," said Cochran. As a result of mark to market calculations for the company's securities portfolio, comprehensive income for the first quarter was $965,000, compared to $980,000 in the like quarter a year ago. Virtually all of the investments in the securities available for sale category are U.S. Treasury securities U.S. Treasury securities Interest-bearing obligations if the U.S. government issued by the U.S. Department of the Treasury as a means of borrowing money to meet government expenditures not covered by tax revenues. or U.S. government agency obligations. These investments mature in less than five years. "We feel it is important to maintain flexibility in managing our assets and liabilities," commented Cochran. "By holding a large portion of our investment securities as available for sale we can actively choose to hold these securities to maturity or deploy the capital into higher yielding loans when the opportunity arises." Columbia's total assets increased 38% to $334.6 million from year earlier levels, primarily from internally generated loan growth and the Valley Community Bank acquisition. Total deposits were up 39% year-over-year to $288.0 million. "Although we showed strong growth over the last 12 months total assets and total deposits were down slightly from December December: see month. 31, 1998 levels. This is a result of a large customer's sinking fund sinking fund, sum set apart periodically from the income of a government or a business and allowed to accumulate in order ultimately to pay off a debt. A preferred investment for a sinking fund is the purchase of the government's or firm's bonds that are to be paid , the level of which fluctuates periodically. We expect similar activity related to this account from time-to-time," Cochran added. Despite the growth of loans, asset quality remained high with non-performing assets totaling $2.5 million, or 0.74% of total assets, at March 31, 1999. Allowances for loan losses totaled $2.7 million, or 1.31% of total loans outstanding. Columbia's return on average assets was 1.34% and return on average equity was 12.5% compared with a return on average assets of 1.75% and a return on average equity of 17.0% in 1998. The additional equity that was raised in the November stock offering contributed to the decline in Columbia's return on equity. As a result of the stock offering and earnings growth, stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. increased 47%, to $35.3 million, from $24.0 million a year ago. Tangible book value at March 31, 1999 was $3.29 per share compared to $3.19 per share at December 31, 1998, and $3.47 per share at March 31, 1998. Columbia Bancorp is the holding company for Columbia River Bank, which operates 10 branches located in The Dalles, 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, 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. , Pendleton and Hermiston, Oregon Hermiston is a city in Umatilla County, Oregon, United States, near the junction of I-82 and I-84. U.S. Highway 395 also goes through the center of the city. Hermiston is seven miles south of the Columbia River, Lake Wallula, and the McNary Dam. , and in Goldendale and White Salmon, Washington White Salmon is a census-designated place (CDP) in Klickitat County, Washington, United States. The population was 2,193 at the 2000 census. History White Salmon was officially incorporated on June 3, 1907. and Valley Community Bank, which operates a branch in McMinnville, Oregon McMinnville is the county seat and largest city of Yamhill County, Oregon, United States. According to Oregon Geographic Names, it was named by its founder, William T. Newby, an early immigrant on the Oregon Trail, for his hometown of McMinnville, Tennessee. . Columbia River Bank expects to open its second Columbia River Bank branch in Bend, Oregon Bend is a city in Deschutes County, Oregon, United States. The name Bend was derived from "Farewell Bend," the designation used by early pioneers to refer to the location along the Deschutes River where the town eventually was platted, one of the few fordable points along the by mid- mid- pref. Middle: midbrain. 1999. In addition to its community banking services, Columbia River Bank also provides mortgage lending services through its Columbia River Bank Mortgage Group, and brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. services through its affiliation with PrimeVest 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. , Inc. 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. with respect to the financial condition, results of operations and the business of Columbia are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in such statements. These include, without limitation: Columbia's ability to manage new and acquired branches; the impact of competition on revenues and margins; 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 2000, as may be detailed from time to time in Columbia's public announcements and filings with the SEC. 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 "may", "will", "should", "expect", "anticipate", "estimate", "continue", "plans", "intends", or other similar terminology. Columbia does not intend to publicly release any revisions to these forward-looking statements to reflect 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 after the date of the Report, other than in its periodic filings with the SEC, or to reflect the occurrence of unanticipated events. -0-
FINANCIAL HIGHLIGHTS
(unaudited)($ and shares in thousands) Quarter Ended
INCOME STATEMENT Mar. 31, 1999 Dec. 31, 1998 Mar. 31, 1998(a)
----------------
Interest Income $ 6,169 $ 5,915 $ 4,859
Interest Expense $ 2,040 $ 1,938 $ 1,629
Provision For
Loan Losses $ 350 $ 300 $ 225
Net Interest Income
After Provision
for Loan Loss $ 3,780 $ 3,677 $ 3,005
Non-Interest Income $ 1,359 $ 1,364 $ 766
Non-Interest Expense $ 3,444 $ 3,140 $ 2,277
Provision for
Income Taxes $ 595 $ 647 $ 488
Net Income $ 1,099 $ 1,254 $ 1,006
Earnings Per Share
Basic $ 0.14 $ 0.17 $ 0.15
Diluted $ 0.14 $ 0.16 $ 0.14
Cumulative Dividend
Per Share $ 0.06 $ 0.06 $ 0.05
Cash Earnings Per
Share (b)
Basic $ 0.15 $ 0.17 $ 0.15
Diluted $ 0.16 $ 0.17 $ 0.14
Weighted Average
Shares Outstanding
Basic 7,960 7,487 6,899
Diluted 8,109 7,653 7,118
Efficiency Ratio
(Non-Interest
Expense/Revenue)
Excludes amortization
of costs in excess of
Net assets acquired
(Goodwill) 59.89% 57.81% 56.98%
Includes amortization
of costs in excess of
Net assets acquired
(Goodwill) 62.75% 58.79% 56.98%
BALANCE SHEET Mar. 31, 1999 Dec. 31, 1998 Mar. 31, 1998
------------- ------------ ------------- -------------
Total Assets $334,555 $342,413 $242,755
Securities Available
For Sale $ 34,031 $ 29,467 $ 26,368
Securities Held
To Maturity $ 21,162 $ 17,310 $ 16,818
Loans Receivable
Held For Sale $ 7,033 $ 7,819 $ 5,604
Loans Receivable, Net $195,372 $198,733 $154,735
Costs In Excess of
Net Assets Acquired $ 9,118 $ 9,287 $ --
Deposits $287,986 $295,680 $207,934
Borrowings $ 8,793 $ 9,734 $ 8,985
Equity $ 35,327 $ 34,756 $ 24,011
Book Value Per
Share (c) $ 4.43 $ 4.37 $ 3.47
Tangible Book Value
Per Share (c) $ 3.29 $ 3.19 $ 3.47
(a) Certain amounts in the prior periods' financial statements have
been reclassified to conform to the current period's
presentation. These reclassifications have affected certain
ratios for the prior periods. The effect of such
reclassifications is immaterial.
(b) Earnings per share excluding Goodwill.
(c) Calculation is based on number of shares outstanding at the end
of the period.
ADDITIONAL FINANCIAL INFORMATION
(UNAUDITED)($ IN THOUSANDS)
Quarter Ended
NON-PERFORMING ASSETS: Mar. 31, 1999 Dec. 31, 1998 Mar. 31, 1998
----------------------- ------------- ------------- -------------
Delinquent Loans on
Non-Accrual Status $ 1,349 $ 1,082 $ 1,452
Delinquent Loans on
Accrual Status $ -- $ -- $ 601
Restructured Loans $ 675 $ 825 $ 548
Total Non-performing
Loans $ 2,024 $ 1,907 $ 2,601
REO $ 440 $ 281 $--
Total Non-performing
Assets $ 2,464 $ 2,188 $ 2,601
Total Non-performing
Assets/Total Assets 0.74% 0.64% 1.07%
CHANGE IN THE ALLOWANCE FOR LOAN LOSSES:
----------------------------------------- Quarter Ended
Mar. 31, 1999 Dec. 31, 1998 Mar. 31, 1998
------------- ------------- -------------
Balance at Beginning
of Period $ 2,380 $ 1,932 $ 1,639
Acquisition of Valley
Community Bancorp $ -- $ 410 $ --
Provision for Loan
Losses $ 350 $ 300 $ 225
Recoveries $ 36 $ 34 $ 24
Charge Offs $ (72) $ 296 $ (15)
Balance at End
of Period $ 2,694 $ 2,380 $ 1,873
Loan Loss Allowance
/ Gross Loans 1.31% 1.14% 1.15%
Loan Loss Allowance
/ Non-performing Loans 109.32% 108.81% 71.99%
Quarter Ended
OPERATING PERFORMANCE:
----------------------
Mar. 31, 1999 Dec. 31, 1998 Mar. 31, 1998
------------- ------------- -------------
Average Interest-Earning
Assets $ 290,307 $ 254,015 $ 212,871
Average-Non-Interest
Earning Assets $ 38,923 $ 25,798 $ 16,925
Total Average Assets $ 329,230 $ 279,813 $ 229,796
Average Interest-Bearing
Liabilities $ 229,303 $ 194,145 $ 164,486
Average Non-Interest
-Bearing Liabilities $ 64,709 $ 59,468 $ 41,686
Total Average Liabilities $ 294,012 $ 253,613 $ 206,172
Average Equity $ 35,218 $ 26,200 $ 23,624
Total Average Liabilities
and Equity $ 329,230 $ 279,813 $ 229,796
RATIOS: Mar. 31, 1999 Dec. 31, 1998 Mar. 31, 1998
------- ------------- ------------- -------------
Interest Rate Yield on
Interest-Earning Assets 8.66% 9.50% 9.34%
Interest Rate Expense on
Interest-Bearing
Liabilities 3.56% 3.99% 3.60%
Interest Rate Spread 5.11% 5.50% 5.37%
Net Interest Margin 5.85% 6.44% 6.27%
Return on Average Assets 1.34% 1.79% 1.75%
Return on Average Equity 12.49% 19.15% 17.03%
Average Equity
/ Average Assets 10.70% 9.36% 10.28%
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