Columbia Bancorp Reports Record Third Quarter Net Income and 18% Asset Growth.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)--Oct. 25, 2000 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 for the first nine months of 2000, net interest income improved 12% to $14.1 million from $12.6 million in the like period of 1999. Net income for the nine month period was $4.0 million, or $.50 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 $3.7 million, or $.45 per diluted share, in the like period a year ago. Cash earnings for the first nine months of 2000 were $.56 per diluted share compared to $.51 per diluted share in the first nine months of 1999, a 10% increase. As compared to a year ago, assets increased 18% to $420 million, loans grew 29% to $294 million and deposits rose 16% to $356 million. Third quarter net interest income increased 6% to $5.0 million from $4.7 million in the third quarter of 1999. Net income for the third quarter was up 1% to $1.4 million, or $.18 per diluted share, compared to $1.4 million, or $.17 per diluted share, in the like quarter a year ago. Cash earnings for the quarter -- earnings before the amortization of goodwill -- were $.19 per diluted share, matching the $.19 per diluted share in the year ago quarter. "The strong net interest income is due to the increase in interest-earning assets and maintaining our net interest margin," 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. . "Earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin were up 19% while net interest margin, at 5.98%, was up .03% from last quarter." Non-interest income was up 34% for the third quarter to $1.9 million from $1.4 million in the third quarter of 1999. For the first nine months of 2000, non-interest income increased 19% to $5.0 million from $4.2 million in the like period of 1999. The increase is from service charges, fees generated from mortgage lending services 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. revenues. "Service charges and fees were up 24% compared to the same quarter last year," noted Cochran. "Our customer base is expanding and customers continue to recognize the value of banking with 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. The mortgage group rebounded in the quarter with mortgage related revenue growing 40% compared to the same quarter last year. Favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. rates and a robust economy throughout our market areas contributed to this growth." "We implemented a number of initiatives in the last two quarters that will positively impact the company for years to come. These initiatives have also had an impact on current expenses as we continue to grow and add staff in most of our markets. During the quarter we outsourced most of data and item processing functions and recognized some expense in transition," said Cochran. "We continue to invest in technology infrastructure and delivery channels that will allow us to meet our customers' expectations, provide the best in customer service and enhance shareholder value. Our Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the based banking product -- BankNet -- was rolled out in April and has enjoyed great acceptance with approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 3% of our customers actively using it," continued Cochran. Non-interest expense was $4.6 million in the quarter compared to $3.8 million in the third quarter of 1999. For the nine month period, non-interest expense was $12.6 million compared to $10.9 million in the like period a year ago. At September September: see month. 30, 2000, Columbia's net loans had increased 29% to $294 million from $228 million a year earlier. The increase was from internally generated loan growth and primarily in the commercial (34% growth) and real estate (29% growth) categories. Asset quality remains high with non-performing assets accounting for only 0.37% of total assets compared to 0.32% a year earlier. The allowance for loan losses totaled $4.4 million, or 1.44% of total loans outstanding. Columbia's year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. return on average assets was 1.37% and return on average equity was 13.96% compared with a return on average assets of 1.43% and a return on average equity of 13.68% a year ago. As a result of 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 9%, to $39.9 million, from $36.6 million a year ago. Book value at September 30, 2000 was $4.98 per share compared to $4.66 per share at December December: see month. 31, 1999 and $4.58 per share at September 30, 1999. Columbia will pay its quarterly dividend, $.07 per share, on November November: see month. 1st, to shareholders of record October October: see month. 15th. Columbia Bancorp (www.columbiabancorp.com) is the holding company for Columbia River Bank, which currently operates 13 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 Bend, city (1990 pop. 20,469), seat of Deschutes co., W central Oregon, on the Deschutes River, at the eastern foot of the Cascade Range; inc. 1904. Lumbering is the primary industry, and tourism is also important. , 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, Newberg and 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. 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. , 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. . 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 affiliations 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. and LaSalle Lasalle (ləsăl`) or Ville Lasalle (vēl), city (1991 pop. 73,804), S Que., Canada, SW of Montreal on the St. Lawrence River at the head of the Lachine Rapids. It is a suburb of Montreal. St. Securities. In addition, Columbia Bancorp's news releases, 10-Qs and 10-Ks for the last twelve months are available via Fax-on-Demand. Call 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 Bancorp 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.
FINANCIAL HIGHLIGHTS
(unaudited)($ and shares in thousands)
INCOME STATEMENT
----------------
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
----------------------------------------
Interest Income $ 8,720 $ 7,012 $24,411 $19,768
Interest Expense $ 3,292 $ 2,148 $ 8,990 $ 6,280
Provision For
Loan Losses $ 464 $ 170 $ 1,317 $ 855
------- ------- ------- -------
Net Interest Income
After Provision
for Loan Loss $ 4,964 $ 4,693 $14,104 $12,633
Non-Interest
Income $ 1,874 $ 1,403 $ 5,002 $ 4,216
Non-Interest
Expense $ 4,572 $ 3,753 $12,645 $10,928
Provision for
Income Taxes $ 847 $ 937 $ 2,416 $ 2,256
------- ------- ------- -------
Net Income $ 1,419 $ 1,407 $ 4,045 $ 3,664
======= ======= ======= =======
Earnings Per Share
Basic $ 0.18 $ 0.18 $ 0.50 $ 0.46
Diluted $ 0.18 $ 0.17 $ 0.50 $ 0.45
Cumulative Dividend
Per Share $ 0.07 $ 0.06 $ 0.14 $ 0.12
Cash Earnings
Per Share (1)
Basic $ 0.20 $ 0.20 $ 0.56 $ 0.52
Diluted $ 0.19 $ 0.19 $ 0.56 $ 0.51
Weighted Average
Shares Outstanding
Basic 8,017 7,996 8,014 7,977
Diluted 8,100 8,117 8,100 8,107
Efficiency Ratio
(Non-Interest
Expense/Revenue)
Excludes amortization
of costs in excess of
net assets acquired
(Goodwill) 60.46% 57.38% 59.61% 59.07%
Includes amortization
of costs in excess of
net assets acquired
(Goodwill) 62.61% 59.89% 61.91% 61.73%
BALANCE SHEET Sept. 30, Dec. 31, Sept. 30,
------------- 2000 1999 1999
--------- -------- ---------
Total Assets $420,391 $361,241 $355,632
Securities
Available
For Sale $ 40,704 $ 41,111 $ 41,591
Securities
Held To
Maturity $ 18,623 $ 20,125 $ 22,689
Loans Receivable
Held For Sale $ 6,628 $ 3,283 $ 3,732
Loans Receivable,
Net $293,698 $243,692 $228,004
Costs In Excess
of Net Assets
Acquired $ 8,175 $ 8,646 $ 8,803
Deposits $355,836 $310,910 $307,572
Borrowings $ 23,062 $ 10,598 $ 8,611
Equity $ 39,931 $ 37,322 $ 36,645
Book Value
Per Share (2) $ 4.98 $ 4.66 $ 4.58
Tangible Book
Value Per
Share (2) $ 3.96 $ 3.58 $ 3.48
(1) Earnings per share excluding Goodwill.
(2) 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: Sept. 30, Dec. 31, Sept. 30,
----------------------- 2000 1999 1999
---------------------------------------
Delinquent Loans
on Non-Accrual
Status $1,435 $ 394 $ 343
Delinquent Loans
on Accrual
Status $ -- $ -- $ 1
Restructured Loans $ 117 $ 202 $ 541
------ ------ ------
Total Non-performing
Loans $1,552 $ 596 $ 885
REO $ -- $ -- $ 259
------ ------ ------
Total Non-performing
Assets $1,552 $ 596 $1,144
====== ====== ======
Total Non-performing
Assets / Total Assets 0.37% 0.16% 0.32%
Quarter Ended
CHANGE IN THE ALLOWANCE ----------------------------------------
FOR LOAN LOSSES: Sept. 30, Dec. 31, Sept. 30,
----------------------- 2000 1999 1999
----------------------------------------
Balance at Beginning
of Period $ 4,104 $ 3,206 $ 3,029
Provision for Loan
Losses $ 464 $ 150 $ 170
Recoveries $ 18 $ 8 $ 23
Charge Offs $ (189) $ (66) $ (16)
------- ------- -------
Balance at End of Period $ 4,397 $ 3,298 $ 3,206
======= ======= =======
Loan Loss Allowance
/ Gross Loans 1.44% 1.32% 1.36%
Loan Loss Allowance
/ Non-performing Loans 283.29% 553.45% 280.35%
Quarter Ended
------------------------------------
OPERATING PERFORMANCE: Sept. 30, Dec. 31, Sept. 30,
---------------------- 2000 1999 1999
------------------------------------
Average Interest-Earning
Assets $370,930 $317,584 $311,025
Average-Non-Interest
Earning Assets $ 42,095 $ 45,196 $ 41,774
-------- -------- --------
Total Average Assets $413,025 $362,780 $352,799
======== ======== ========
Average Interest-Bearing
Liabilities $288,136 $245,871 $241,322
Average Non-Interest-Bearing
Liabilities $ 85,308 $ 79,757 $ 75,872
-------- -------- --------
Total Average Liabilities $373,444 $325,628 $317,194
Average Equity $ 39,581 $ 37,152 $ 35,605
-------- -------- --------
Total Average
Liabilities and Equity $413,025 $362,780 $352,799
======== ======== ========
RATIOS (Annualized): Sept. 30, Dec. 31, Sept. 30,
-------------------- 2000 1999 1999
------------------------------
Interest Rate Yield
on Interest-Earning
Assets 9.53% 9.13% 9.19%
Interest Rate Expense
on Interest-Bearing
Liabilities 4.57% 3.72% 3.56%
Interest Rate Spread 4.96% 5.41% 5.63%
Net Interest Margin 5.98% 6.25% 6.43%
Return on Average Assets 1.37% 1.49% 1.60%
Return on Average Equity 14.34% 14.52% 15.81%
Average Equity / Average Assets 9.58% 10.24% 10.09%
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