Columbia Bancorp Reports First Quarter 2003 ROE in Excess of 18% and Announces a 10% Stock Dividend.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)--April 23, 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) 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 announced first quarter 2003 net income of $2.39 million, or $0.29 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, representing an increase in net income of 9.58% compared to $2.18 million, or $0.26 per diluted share in the first quarter of 2002. Total assets increased 16.24% to $569.41 million as of March 31, 2003 from $489.84 million at March 31, 2002. "We continue to be pleased by the growth of Columbia Bancorp and our staff is dedicated to providing the best products and services to their customers," said Roger Christensen Christensen may refer to:
A lawsuit is generally named for the persons who are parties to it. in excess of 18% by year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , which will reward our shareholders with quality earnings and strong performance, will drive our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. success." The Board of Columbia Bancorp announced a 10% stock dividend for shareholders of record as of May 1, 2003, payable May 15, 2003. "We believe a stock dividend is an excellent way to reward our shareholders," remarked Mr. Christensen. FINANCIAL HIGHLIGHTS -- Year-to-Date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. Return on Equity (ROE) is 18.59% -- Year-to-Date Net Interest Margin is 6.31% -- Year-to-Date Efficiency Ratio is 58.05% -- Year-to-Date Net Income up 9.58% over the same period last year LOANS AND DEPOSITS Deposits grew $83.91 million, or 20.99%, from a balance of $399.78 million as of March 31, 2002 to $483.69 million at March 31, 2003. "This growth is due to increases in non-interest demand deposits, Time CD's and brokered deposits," says Craig Craig , Edward Gordon 1872-1966. British theatrical producer, director, and designer whose innovative productions and simplified stage designs influenced modern theater. Ortega, Executive Vice President and Head of Community Banking. "Our employees continue to stress relationship banking and this is the result of their efforts." "Flat loan growth during the first quarter reflects the seasonal trend normally associated with the loan portfolio. Most of our growth has traditionally come during the second and third quarters driven by agriculture production and construction loans. We don't don't 1. Contraction of do not. 2. Nonstandard Contraction of does not. n. A statement of what should not be done: a list of the dos and don'ts. believe this year will be an exception," stated 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 , Executive Vice President and Chief Credit Officer. "The increase in non-performing assets during the quarter is the direct result of one $2.8MM loan which came on to non-accrual status in February February: see month. ," added Thomas. "The loan is real estate secured and we are currently working with the borrower to market the property. While it is too early to ascertain the loss potential of this asset, we may begin to increase loan loss reserves during the second quarter." NET INTEREST MARGIN Net interest income was 12.08% higher for first quarter 2003 at $7.63 million as compared to $6.80 million in the first quarter 2002. "Though the net interest margin compressed slightly in the first quarter, it still remained strong at 6.31% despite the challenging interest rate environment", stated Greg GREG Great Egg Harbor National Scenic and Recreational River (US National Park Service) Spear, Executive Vice President and Chief Financial Officer. "The bank grew deposits in the first quarter and held much of the new growth in overnight deposits with correspondent banks Correspondent bank Bank that accepts deposits of, and performs services for, another bank (called a respondent bank); in most cases, the two banks are in different cities. in anticipation of loan growth. This accounted for some of the net interest margin compression since 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. investment yields are at historical lows." NON-INTEREST INCOME AND EXPENSE Noninterest expense increased $.49 million, or 9.61%, from $5.10 million at March 31, 2002 to $5.59 million at March 31, 2003. The increase in noninterest expense was largely due to occupancy and personnel expense. The mortgage-servicing asset (MSA (Metropolitan Service Area) An urban area with at least 50,000 people plus surrounding counties. There are 306 MSAs and 428 RSAs (rural service areas) in the U.S. MSAs and RSAs are used to allocate cellular licenses. ) ended the first quarter 2003 with a net 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 $4.25 million. During the first quarter 2003, an MSA valuation adjustment was recognized in the amount of $500,000 thereby resulting in an MSA multiple of 86 basis points of total loans serviced. SECOND QUARTER FORECAST "In the past we have projected net loan losses of approximately 25 basis points for 2003. Given the current levels of non-performing assets, it now appears net loan losses for the year may be closer to 45 basis points on projected year-end loan totals," states Mr. Christensen. "In the short run, the allowance for loan loss may rise in anticipation of these losses. By year-end, we expect the allowance to be in the range of 1.38 to 1.45%." Christensen further added, "Although the uncertain events surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. the potential for higher loan loss provision expense and the 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. may dampen the second quarter's financial performance, we are confident in the ability of our loan staff to minimize the impact of these losses on our shareholders. However, based on information that we now possess, the result may be a lower 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 than what has been forecasted by the analysts, which is averaging around $0.31 per share for the second quarter. We will not be providing earnings guidance for the second quarter today because many of the variables have yet to be resolved with respect to loan losses as well as the effect from interest rates on the mortgage-servicing asset. Our plan is to pre-release in June June: see month. if we conclude that our year-to-date return on average equity falls below 18%." "Columbia Bancorp has a long history of quality asset growth and ever-increasing earnings," stated Christensen. "We've we've Contraction of we have. we've have established a proper balance between shareholder value, customer service and employee satisfaction. Our staff is dedicated to providing the best products and services to their customers, and they understand the importance of delivering value to the shareholders. We still hold these values as keys to our long-term success. We will always strive to let the market know to the best of our ability our successes and struggles. Although we are preparing for a difficult second quarter, we believe that the third and fourth quarters should return to normal profitability." EARNINGS TELECONFERENCE AND WEBCAST Columbia will conduct a teleconference and Web Cast on Wednesday Wednesday: see week. , April 23, 2003 at 12:00 noon Pacific Time (3:00 p.m. Eastern Time) when management, led by Roger Christensen, will discuss the first quarter 2003 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:
ABOUT COLUMBIA BANCORP 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 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 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 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 BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. 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. . FORWARD LOOKING STATEMENT 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 2003, 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 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 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
March 31,
--------------------------
INCOME STATEMENT 2003 2002
---------------- ------------- ---------
Interest income $9,396 $8,587
Interest expense 1,770 1,783
------------- ---------
Net interest income 7,626 6,804
Provision for loan losses 300 400
------------- ---------
Net interest income
After provision for loan losses 7,326 6,404
Non-interest income 2,000 2,094
Non-interest expense 5,588 5,098
Provision for income taxes 1,348 1,219
------------- ---------
Net income $2,390 $2,181
============= =========
Earnings per share
Basic $0.30 $0.27
Diluted 0.29 0.26
Cumulative dividend per share 0.08 0.08
Weighted average shares outstanding
Basic 7,886 8,063
Diluted 8,165 8,289
Actual shares outstanding 7,896 8,091
BALANCE SHEET March 31, March 31,
2003 2002
-------------- ----------- ---------
Total assets $569,406 $489,836
Securities 32,094 40,779
Loans held for sale 7,674 17,897
Loans, gross (1) 431,603 383,946
Goodwill (2) 7,389 7,389
Deposits 483,692 399,782
Borrowings 28,846 36,450
Equity 52,112 48,206
Book value per share $6.60 $5.96
(1) Excludes deferred loan fees, reserve for loan loss and loans held
for sale
(2) From the purchase of Valley Community Bancorp
ADDITIONAL FINANCIAL INFORMATION (Unaudited)(In thousands, except per
share data and ratios)
NON-PERFORMING ASSETS March 31, March 31,
2003 2002
---------------------- --------- ---------
Delinquent loans on non-accrual status $3,854 $1,863
Delinquent loans on accrual status - 1
Restructured loans 19 111
--------- ---------
Total non-performing loans 3,873 1,975
Other real estate owned 63 311
Repossessed other assets 147 -
--------- ---------
Total non-performing assets $4,083 $2,286
========= =========
Total non-performing assets / total assets 0.72% 0.47%
Three Months Ended
--------------------
CHANGE IN THE ALLOWANCE FOR LOAN LOSSES March 31, March 31,
2003 2002
---------------------------------------- ---------- ---------
Balance at beginning of period $6,417 $5,312
Provision for loan losses 300 400
Recoveries 24 44
Charge offs (343) (187)
--------- ---------
Balance at end of period $6,398 $5,569
========= =========
Loan loss allowance / gross loans 1.46% 1.39%
Non-performing loans / loan loss allowance 60.53% 35.46%
Three Months Ended
--------------------
OPERATING PERFORMANCE March 31, March 31,
2003 2002
---------------------- --------- ---------
Average interest-earning assets $497,460 $436,385
Average gross loans & loans held for sale 441,559 388,708
Average assets 545,397 482,834
Average interest-bearing liabilities 367,666 329,670
Average interest-bearing deposits 337,515 289,044
Average deposits 459,403 390,317
Total average liabilities 493,977 435,170
Average equity 51,420 47,664
Three Months Ended
--------------------
RATIOS March 31, March 31,
2003 2002
------------------------------------------------- --------- ---------
Interest rate yield on interest-earning assets
(TE) 7.75% 7.97%
Interest rate expense on interest-bearing
liabilities 1.95% 2.16%
Interest rate spread 5.80% 5.81%
Net interest margin (TE) 6.31% 6.33%
Efficiency ratio (1) 58.05% 57.29%
Return on average assets 1.75% 1.81%
Return on average equity 18.59% 18.30%
Average equity / average assets 9.43% 9.87%
(1) Non-interest expense / revenue
FINANCIAL INFORMATION UPDATE (Unaudited)
Quarter Ended
------------------------------------
INCOME STATEMENT ITEMS March 31, March 31,
2003 2002
------------------------ ------------ ------------
Service charges on deposits 971,992 840,295
Credit card discounts & fees 90,262 86,220
Financial services 92,819 151,567
Mortgage servicing, net (63,632) (272,591)
Gain on sale of mortgage loans (20,511) 26,014
Mortgage loan origination income 586,834 626,674
Other income 342,491 635,811
Gain/loss from
"called" bond (6,668) 1,650
Gain/loss from
sale of
securities - 194,595
------------ ------------
Total non-interest income 2,000,255 2,093,990
------------ ------------
Compensation & benefits 3,430,170 3,005,912
Occupancy 554,924 468,726
Data processing 80,183 82,249
Other expenses 1,523,178 1,541,976
------------ ------------
Total non-interest expense 5,588,455 5,098,863
------------ ------------
BALANCE SHEET ITEMS March 31, March 31,
2003 2002
-------------------- ------------ ------------
Commercial loans 70,725,043 70,420,701
Agricultural loans 58,621,853 54,906,206
Real estate loans 277,357,489 232,774,056
Mortgage loans held for sale 7,674,480 17,896,971
Consumer loans 19,154,611 20,665,889
Other loans 5,744,182 5,179,123
------------ ------------
Total 439,277,658 401,842,946
------------ ------------
Quarter Ended
-----------------------------------
MORTGAGE SERVICING March 31, March 31,
2003 2002
------------------ ------------ ------------
Mortgage service asset, net 4,249,567 5,657,283
Mortgage loans serviced ($) 491,994,055 451,046,638
Mortgage loans serviced number 4,128 3,781
Mortgage loans produced 532 483
Mortgage service asset multiple 0.86% 1.25%
MORTGAGE SERVICING ASSET
RECONCILIATION 1998 1999 2000
------------------------- -----------------------------------
Mortgage servicing asset,
beginning - 646,546 1,482,374
Add service retain premiums 664,665 932,724 1,437,145
Deduct MSA amortization (18,119) (96,896) (159,832)
Deduct MSA valuation write-downs - - -
-----------------------------------
Mortgage servicing asset, ending 646,546 1,482,374 2,759,687
-----------------------------------
MORTGAGE SERVICING ASSET
RECONCILIATION CON'T 2001 2002 Q1 2003
--------------------------- -----------------------------------
Mortgage servicing asset,
beginning 2,759,687 6,196,802 4,614,391
Add service retain premiums 4,700,197 2,227,511 561,091
Deduct MSA amortization (345,354) (1,028,810) (425,916)
Deduct MSA valuation write-downs (917,729) (2,781,111) (500,000)
-----------------------------------
Mortgage servicing asset, ending 6,196,802 4,614,391 4,249,567
-----------------------------------
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