Columbia Bancorp Reports 27% Increase in Net Income, Net Interest Margin Remains Strong at 6.41% and Year 2002 Stock Price Appreciation of 47%.Business Editors 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)--Jan. 22, 2003 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): -- Year End Return on Equity (ROE) is 18.80% -- Year End Net Interest Margin is 6.41% -- Year End Efficiency Ratio is 57.32% -- Year End Net Income up 27.22% over last year Columbia Bancorp today reported fourth quarter 2002 net income of $2.25 million, or $0.27 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, an increase in net income of 7.90% compared to $2.09 million, or $0.25 per diluted share in the fourth quarter of 2001. The 2002 year end net income was $9.38 million, or $1.13 per diluted share, an increase in net income of 27.22% compared to $7.37 million, or $0.89 per diluted share for 2001 year end. Total assets increased 12.88% to $544.33 million as of December December: see month. 31, 2002 from $482.21 million at December 31, 2001. As of December 31, 2002, gross loans and deposits were up 13.85% and 15.51%, respectively, as compared to December 31, 2001. Roger Christensen Christensen may refer to:
"In the third quarter, we anticipated that mortgage interest rates would have stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. or slightly moved upwards. However, our interest rate predictions did not come to fruition fru·i·tion n. 1. Realization of something desired or worked for; accomplishment: labor finally coming to fruition. 2. Enjoyment derived from use or possession. 3. ," stated Greg GREG Great Egg Harbor National Scenic and Recreational River (US National Park Service) Spear, Chief Financial Officer. "During the months of October October: see month. and November November: see month. , when mortgage prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. rates climbed to record high levels, it was necessary to take an $832,500 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. asset write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. . In addition to record high mortgage prepayment rates, the fair market values for mortgage servicing assets declined. We estimate that 75% of the write-down was due to rising prepayment speeds Prepayment speed Also called speed, the estimated rate at which mortgagors pay off their loans ahead of schedule, critical in assessing the value of mortgage pass-through securities. and 25% was due to declining market values of the mortgage-servicing portfolio. As a result, we ended the year with a mortgage servicing asset equivalent to 0.94% of the total mortgage portfolio serviced by the bank. If, in fact, rates had cooperated and the mortgage servicing valuation adjustment had not occurred, the fourth quarter would have ended at $0.33 per diluted share and the year end figure would have been $1.19 per diluted share on a pro-forma basis." "Though we've we've Contraction of we have. we've have addressed the market difficulties with the mortgage servicing asset, it is important to note that in the fourth quarter the retail branches were carefully pricing loans and retaining deposit relationships in an environment of low interest rates," noted Mr. Spear. "Loan officers have done an excellent job of incorporating rate floors and ensuring that repricing Repricing To change the price of an asset. In derivatives, it sometimes refers to the exchange of options of with different strike prices. repricing and maturity dates remain short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. . This is evidenced in a net interest margin that has remained steady throughout 2002 near 6.41%. The Asset-Liability Committee sets objectives for maintaining strong net interest margins and appropriate maturities for assets and liabilities. Its objectives are critical to mitigating mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. interest rate risk when rates eventually trend upwards." "We are pleased with how the Bank's loan portfolio has performed, through the recent economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. , as reflected by the year-end non-performing asset ratio of 0.14%. We remain cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about quality through 2003 and expect defaults and losses slightly greater than what we experienced in 2002," quotes Britt britt 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. "We believe that the Bank's goals of double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" growth and high quality loans remains attainable at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. ." During the fourth quarter we opened a new branch, Aspen aspen, in botany aspen: see willow. Aspen, city, United States Aspen (ăs`pən), city (1990 pop. 5,049), alt. 7,850 ft (2,390 m), seat of Pitkin co., S central Colo. Ridge, which is a limited facility branch. The branch is located in a retirement center 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 . "We currently have two other retirement center branches in the Willamette Valley The Willamette Valley (pronounced [wɪˈlæ.mɪt], with the accent on the second syllable) is the region in northwest Oregon in the United States that surrounds the Willamette River as it proceeds northward from its ," states Craig Ortega, Head of Community Banking. "As for future branch expansion, our strategic plan is to open two full-service branches this year," says Mr. Ortega. "We are presently pursuing branch locations in new and existing communities of 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. We have been successful in opening new branches and communities are receptive receptive /re·cep·tive/ (re-cep´tiv) capable of receiving or of responding to a stimulus. to our style of banking. This is defined by personal service through the convenience of drive-up tellers and branches with employees available to help customers." "Columbia supports this personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. service through its investment in technology," informs Jim McCall, 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. . "During the fourth quarter the Bank implemented a system that shortens the time frame it takes to open an account. This will result in improved customer service while improving efficiency." Columbia will conduct a teleconference and Web Cast on Wednesday, January 22, 2003 at 12:00 noon Pacific Time (3:00 p.m. Eastern Time) when management, lead by Roger Christensen, will discuss the fourth quarter and year-end 2002 results. To participate in the call, the conference number is 1-888-482-0024. The conference ID number to access the call is 934497. The live Web Cast can be heard on Columbia Bancorp's Web Site at www.columbiabancorp.com under the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of Events/Presentations. This event will be archived on Columbia Bancorp's Web Site. There will be a playback Playback could mean:
Columbia Bancorp (www.columbiabancorp.com) is the financial holding company for Columbia River Bank, which operates 17 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 (3), Madras Madras. 1 State and former province, India: see Tamil Nadu. 2 City, India: see Chennai. , Redmond, Pendleton, Hermiston, 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 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. . To supplement its community banking services, Columbia River Bank also provides mortgage-lending services through its Columbia River Bank Mortgage Group and brokerage services through its affiliation with CRB CRB See: Commodity Research Bureau. 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. . In addition, Columbia Bancorp's news releases, 10-Qs and 10-Ks for the last twelve months are available via Fax-on-Demand. Call 1-800-683-0074 to request documents. 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, the impact of competition and interest rates 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 2002, as may be detailed from time to time in Columbia's public announcements and filings with the Securities and Exchange Commission ("SEC"). Forward-looking statements can be identified by the use of forward-looking 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 this press release, other than in its periodic filings with the SEC, or to reflect the occurrence of unanticipated events.
FINANCIAL HIGHLIGHTS
(Unaudited)(In thousands, except per share data and ratios)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------------------------
INCOME STATEMENT 2002 2001 2002 2001
-------------------------------------
Interest income $9,749 $8,882 $37,616 $35,078
Interest expense 1,873 2,263 7,781 11,583
--------- --------- -------- --------
Net interest income 7,876 6,619 29,835 23,495
Provision for loan losses 100 575 1,800 1,450
--------- --------- -------- --------
Net interest income
After provision for loan
losses 7,776 6,044 28,035 22,045
Non-interest income 1,461 2,603 8,551 9,185
Non-interest expense 5,669 5,281 21,981 19,479
Provision for income taxes 1,314 1,277 5,224 4,377
--------- --------- -------- --------
Net income $2,254 $2,089 $9,381 $7,374
========= ========= ======== ========
Earnings per share
Basic $0.28 $0.26 $1.16 $0.92
Diluted 0.27 0.25 1.13 0.89
Cumulative dividend per share 0.08 0.08 0.32 0.32
Weighted average shares
outstanding
Basic 8,061 8,030 8,091 8,033
Diluted 8,247 8,222 8,302 8,244
Actual shares outstanding 7,862 8,037 7,862 8,037
BALANCE SHEET December December
31, 2002 31, 2001
------------------------------------------ ---------
Total assets $544,326 $482,207
Securities 36,048 43,532
Loans held for sale 8,770 18,960
Loans, gross 431,579 367,829
Goodwill (1) 7,389 7,389
Deposits 455,835 394,636
Borrowings 31,135 35,905
Equity 50,190 46,445
Book value per share $6.38 $5.78
(1) From the purchase of Valley Community Bancorp
ADDITIONAL FINANCIAL INFORMATION
(Unaudited)(In thousands, except per share data and ratios)
NON-PERFORMING ASSETS December December
31, 2002 31, 2001
------------------------------ --------- ---------
Delinquent loans on non-
accrual status $742 $890
Delinquent loans on accrual
status 5 -
Restructured loans 25 113
--------- ---------
Total non-performing loans 772 1,003
Other real estate owned - 349
--------- ---------
Total non-performing assets $772 $1,352
========= =========
Total non-performing assets /
total assets 0.14% 0.28%
Quarter Ended Year to Date
------------------- -------------------
CHANGE IN THE ALLOWANCE FOR December December December December
LOAN LOSSES 31, 2002 31, 2001 31, 2002 31, 2001
---------------------------------------- --------- --------- ---------
Balance at beginning of period $6,427 $5,340 $5,312 $4,578
Provision for loan losses 100 575 1,800 1,450
Recoveries 14 26 191 83
Charge offs (124) (629) (886) (799)
--------- --------- --------- ---------
Balance at end of period $6,417 $5,312 $6,417 $5,312
========= ========= ========= =========
Loan loss allowance / gross
loans 1.46% 1.38%
Non-performing loans / loan
loss allowance 12.04% 18.88%
Quarter Ended Year to Date
------------------- -------------------
OPERATING PERFORMANCE December December December December
31, 2002 31, 2001 31, 2002 31, 2001
------------------------------ --------- --------- --------- ---------
Average interest-earning
assets $496,498 $432,919 $472,867 $404,324
Average gross loans 437,996 380,374 419,608 348,239
Average assets 546,829 482,145 521,537 450,261
Average interest-bearing
liabilities 363,014 328,790 353,430 311,283
Average interest-bearing
deposits 331,734 289,216 318,087 277,044
Average deposits 459,290 392,253 432,739 368,775
Total average liabilities 496,235 435,863 471,631 406,271
Average equity 50,594 46,282 49,905 43,990
Quarter Ended Year to Date
------------------- -------------------
RATIOS December December December December
31, 2002 31, 2001 31, 2002 31, 2001
------------------------------ --------- --------- --------- ---------
Interest rate yield on
interest-earning assets (TE) 7.94% 8.31% 8.04% 8.79%
Interest rate expense on
interest-bearing liabilities 2.05% 2.75% 2.19% 3.72%
Interest rate spread 5.88% 5.56% 5.85% 5.07%
Net interest margin (TE) 6.43% 6.22% 6.41% 5.92%
Efficiency ratio (1) 60.76% 57.83% 57.32% 60.20%
Return on average assets 1.65% 1.73% 1.80% 1.64%
Return on average equity 17.82% 18.05% 18.80% 16.76%
Average equity / average
assets 9.25% 9.60% 9.57% 9.77%
(1) Non-interest expense / revenue
FINANCIAL INFORMATION UPDATE
(Unaudited)
Quarter Ended Year to Date
----------------------------------------------------------------------
INCOME STATEMENT December December December December
ITEMS 31, 2002 31, 2001 31, 2002 31, 2001
----------------------------------------------------------------------
Service charges
on deposits 1,030,196 779,576 4,089,240 3,013,734
Credit card
discounts &
fees 102,330 94,076 419,762 357,729
Financial
services 100,948 91,791 559,968 467,791
Mortgage
servicing,
net (308,290) 1,121,230 (418,595) 4,068,554
Gain on sale
of mortgage
loans (374,736) (474,107) (366,767) (1,476,262)
Mortgage
loan
origination
income 654,498 649,455 2,513,005 1,662,268
Other income 255,831 341,174 1,754,534 1,091,133
Gain/loss from
"called" bond (299) - 2,415 27,368
Gain/loss from
sale of
securities - - 294,133 -
--------- --------- --------- ---------
Total
non-interest
income 1,460,777 2,603,195 8,551,147 9,184,947
--------- --------- --------- ---------
Compensation &
benefits 3,238,044 3,166,044 13,059,537 11,421,967
Occupancy 557,481 463,522 2,051,679 1,826,864
Data processing 95,414 77,422 370,889 301,878
Other expenses 1,775,936 1,574,251 6,498,885 5,928,866
Goodwill expense - 157,156 - 628,623
--------- --------- --------- ---------
Total non-interest
expense 5,666,875 5,281,239 21,980,990 19,479,575
--------- --------- --------- ---------
BALANCE SHEET ITEMS December 31, December 31,
2002 2001
---------------------------------------------------
Commercial loans 69,881,954 64,163,290
Agricultural loans 61,770,202 54,934,115
Real estate loans 272,492,589 223,678,195
Mortgage loans held
for sale 8,769,777 18,959,979
Consumer loans 26,269,362 22,922,589
Other loans 1,165,096 2,130,341
----------- -----------
Total 440,348,980 386,788,509
----------- -----------
Quarter Ended
MORTGAGE SERVICING December 31, December 31,
2002 2001
---------------------------------------------------
Mortgage service
asset, net 4,614,391 6,196,802
Mortgage loans
serviced ($) 488,504,982 416,205,645
Mortgage loans
serviced number 4,092 3,500
Mortgage loans
produced 558 800
Mortgage service
asset multiple 0.94% 1.49%
MORTGAGE SERVICING
ASSET RECONCILIATON 1998 1999 2000 2001 2002
----------------------------------------------------------------------
Mortgage servicing
asset, beginning - 646,546 1,482,374 2,759,687 6,196,802
Add service retain
premiums 664,665 932,724 1,437,145 4,700,197 2,227,511
Deduct MSA
amortization (18,119) (96,896) (159,832) (345,354)(1,028,810)
Deduct MSA valuation
write-downs - - - (917,729)(2,781,111)
-------------------------------------------------
Mortgage servicing
asset, ending 646,546 1,482,374 2,759,687 6,196,802 4,614,391
-------------------------------------------------
PRO-FORMA INCOME STATEMENT
(Unaudited)(In thousands, except per share data)
Pro- Pro-
Forma Actual Forma Actual
4th 4th Dif- Yearend Yearend Dif-
Quarter Quarter ference 2002 2002 ference
--------------------------------------------------
Interest & fees on
loans 9,177 9,177 0 35,334 35,334 0
Interest on
investments 404 404 0 1,843 1,843 0
Other interest
income 168 168 0 439 439 0
Interest exp. -
deposits 1,557 1,557 0 6,427 6,427 0
Interest exp. -
borrowings 316 316 0 1,354 1,354 0
--------------------------------------------- ----------------------
Net interest income 7,887 7,887 0 29,883 29,883 0
--------------------------------------------- ----------------------
Non interest income 2,294 1,461 (833) 9,384 8,551 (833)
Provision for loan
loss 100 100 0 1,800 1,800 0
Salaries and
benefits 3,339 3,239 (100)13,160 13,060 (100)
Other operating
expense 2,430 2,430 0 8,969 8,969 0
--------------------------------------------- ----------------------
Operating income 4,301 3,568 (733)15,338 14,605 (733)
--------------------------------------------- ----------------------
Income tax 1,585 1,314 (271) 5,495 5,224 (271)
--------------------------------------------- ----------------------
Net income $2,716 $2,254 (462)$9,843 $9,381 (462)
--------------------------------------------- ----------------------
---------------- --------------
Diluted EPS $0.33 $0.27 $1.19 $1.13
---------------- --------------
Pro-Forma Assumptions: Recover 4th Qtr MSA Write-down of $833,000,
increase incentive compensation $100,000 and adjust the tax provision.
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