Columbia Bancorp Third Quarter Earnings Spurred by a 25% YTD Increase in Loans.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. 24, 2001 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 third quarter net income of $1.72 million, or $.21 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 of 21% compared to $1.42 million, or $.18 per diluted share in the third quarter of 2000. "Increased growth in assets and income have continued through a slowing economy," stated Roger Christensen, 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. . "We are pleased that for the nine months ending September 30, 2001, net income was $5.28 million, or $.65 per diluted share, an increase of 30% compared to $4.05 million, or $.50 per diluted share for the same nine months in 2000." The Company's assets totaled $486.1 million, compared to $416.9 million at December 31, 2000. This represents a 17% increase in assets YTD See Year-to-date. YTD See year to date (YTD). . Greg Spear, Chief Financial Officer, indicated, "During this period of falling interest rates, Columbia has seen improvement in the net interest margin ratio for the third quarter. The strong demand for loans has repositioned the balance sheet by replacing many of our low yielding investment securities with higher yielding loans. We are also taking advantage of the low interest rate environment by extending borrowings with the Federal Home Loan Bank. We believe this strategy is prudent in order to secure an economical source of funding and continue to meet the borrowing needs of our local communities." "Our 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. performance on a YTD basis is 16.26%. We would have expected something higher if it were not for the effect of falling interest rates that impacted the non-interest income from our Mortgage Group," said Greg Spear. "A combination of a third quarter valuation 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. of $355,000 in our 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. right asset and a $255,000 hedge loss decreased "pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. " by $610,000." The mortgage servicing right asset valuation write-down was largely impacted by borrowers taking advantage of low mortgage rates and refinancing Refinancing An extension and/or increase in amount of existing debt. . This affected the value of our Mortgage Servicing Rights Premium (MSRP MSRP Manufacturer's Suggested Retail Price MSRP Message Session Relay Protocol MSRP Multi-Species Recovery Plan (US Fish & Wildlife Service) MSRP Member of the Society for Radiological Protection (UK) ) asset. Columbia's Mortgage Group utilizes a risk management tool of purchasing forward hedges to cover locked mortgage loans until such time the mortgage is funded. During the months of August and September, mortgage rates were particularly volatile and combined with the events of the September 11 terrorist attacks, a higher percentage of locked mortgage loans "fell out" of their locks; causing the bank to suffer interest rate risk exposure from having uncovered Uncovered may refer to:
Hamilton, city (1990 est. pop. 3,100), capital of Bermuda, on Bermuda Island. It is a port at the head of Great Sound, a huge lagoon and deepwater harbor protected by coral reefs. , Executive Vice President of the Mortgage Group, said, "Since this occurrence, the Mortgage Group has reviewed and tightened risk management controls to ensure that the 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 hedge loss should not be repeated." "The financial results are only second to the figures posted in the second quarter of 2001," stated Christensen. "We still believe there are opportunities in our markets for growth. The economy has slowed nationally and our markets are not immune, but our position in the communities we serve will enable us to gather deposits and quality loans. We look forward to a good fourth quarter and expect to attain our financial goals for 2001." "Columbia's basic business continues to be granting loans and taking deposits in the communities we serve," states Jim McCall, Executive Vice President and 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. . "Our 16 branch system grew loans 25% YTD and deposits 14% YTD. Loan yields remain robust at 9.4% in light of a 400 basis point drop in prime since beginning of the year. The Non-Performing Assets to Total Asset ratio held steady at 0.30% and is indicative of the depth of experience in our lending staff." "During the third quarter, for the first time in Columbia's history, we opened two branches," says Christensen. "One branch is located in Canby, Oregon Canby is a city in Clackamas County, Oregon, United States. The population was 12,790 at the 2000 census. Canby is best known locally (in the greater Portland, Oregon metro area) as the home of the Clackamas County Fairgrounds. and the other is in the Hillside Hillside may refer to: Places
1. in the non-metropolitan areas of 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 . The branches should contribute to our profitability during the second quarter of next year." Columbia Bancorp (www.columbiabancorp.com) is 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, which operates 16 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 (2), 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. . In addition to its community banking services, Columbia River Bank also provides mortgage-lending services through its Columbia River Bank Mortgage Group and brokerage services through its affiliations with LaSalle St. Securities and 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 800/683-0074 to request documents. Columbia Bancorp will conduct a webcast on Thursday, October 25, 2001 at 10:00 a.m. PT (1:00 p.m. ET) at which time the Company will discuss third quarter results and provide management discussion. The webcast will be presented by CCBN CCBN Central Coast Bancorp CCBN Charles County Business Network and can be accessed at Columbia Bancorp's website at www.columbiabancorp.com. 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 2001, 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 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
(in thousands, except per-share data and ratios)
(unaudited)
INCOME STATEMENT:
----------------
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------------------------
2001 2000 2001 2000
-------------------------------------------
Interest Income $8,946 $8,720 $26,195 $24,411
Interest Expense $2,995 $3,292 $9,321 $8,990
Provision for Loan Losses $250 $464 $875 $1,317
-------------------------------------------
Net Interest Income After
Provision for Loan Losses $5,701 $4,964 $15,999 $14,104
Non-Interest Income $2,058 $1,874 $6,941 $5,002
Non-Interest Expense $5,101 $4,572 $14,556 $12,645
Provision for Income Taxes $939 $847 $3,100 $2,416
-------------------------------------------
Net Income $1,719 $1,419 $5,284 $4,045
===========================================
Earnings Per Share
Basic $0.21 $0.18 $0.66 $0.50
Diluted $0.21 $0.18 $0.65 $0.50
Cumulative Dividend Per Share $0.08 $0.07 $0.24 $0.21
Earnings Per Share Excluding
Goodwill
Basic $0.25 $0.20 $0.70 $0.56
Diluted $0.25 $0.19 $0.69 $0.56
Weighted Average Shares
Outstanding
Basic 8,015 8,017 8,034 8,014
Diluted 8,182 8,100 8,172 8,100
Efficiency Ratio (Non-Interest Expense/Revenue)
Excludes amortization of costs in
excess of net assets acquired
(Goodwill) 61.73% 60.46% 59.14% 59.61%
Includes amortization of costs in
excess of net assets acquired
(Goodwill) 63.69% 62.61% 61.12% 61.91%
BALANCE SHEET
-------------
Sept. 30, Dec. 31, Sept. 30,
2001 2000 2000
---------------------------------
Total Assets $486,124 $416,859 $420,391
Securities $44,506 $58,906 $59,327
Loans, Net $375,347 $299,881 $300,326
Costs In Excess of Net Assets
Acquired (Goodwill) $7,546 $8,018 $8,175
Deposits $395,823 $346,427 $355,836
Borrowings $39,908 $26,369 $23,062
Equity $44,896 $41,326 $39,931
Book Value Per Share(1) $5.60 $5.15 $4.98
Tangible Book Value Per Share(1) $4.66 $4.15 $3.96
(1) Calculation is based on number of shares outstanding at the
end of the period.
ADDITIONAL FINANCIAL INFORMATION
(in thousands, except per-share data and ratios)
(unaudited)
NON-PERFORMING ASSETS:
---------------------
Quarter Ended
---------------------------------
Sept. 30, Dec. 31, Sept. 30,
2001 2000 2000
---------------------------------
Delinquent Loans on Non-Accrual
Status $1,453 $1,163 $1,435
Delinquent Loans on Accrual Status $-- $7 $--
Restructured Loans $-- $116 $117
---------------------------------
Total Non-performing Loans $1,453 $1,286 $1,552
Other Real Estate Owned $-- $-- $--
---------------------------------
Total Non-performing Assets $1,453 $1,286 $1,552
=================================
Total Non-performing Assets/
Total Assets 0.30% 0.31% 0.37%
CHANGE IN THE ALLOWANCE FOR LOAN LOSSES:
----------------------------------------
Quarter Ended
---------------------------------
Sept. 30, Dec. 31, Sept. 30,
2001 2000 2000
---------------------------------
Balance at Beginning of Period $5,130 $4,397 $4,104
Provision for Loan Losses $250 $380 $464
Recoveries $35 $3 $18
Charge Offs $(75) $(202) $(189)
---------------------------------
Balance at End of Period $5,340 $4,578 $4,397
=================================
Loan Loss Allowance / Gross Loans 1.40% 1.50% 1.44%
Non-performing Loans / Loan Loss
Allowance 27.21% 28.09% 35.30%
OPERATING PERFORMANCE:
----------------------
Quarter Ended
---------------------------------
Sept. 30, Dec. 31, Sept. 30,
2001 2000 2000
---------------------------------
Average Interest-Earning Assets $421,129 $356,806 $370,930
Average-Non-Interest Earning Assets $44,293 $41,616 $42,095
---------------------------------
Total Average Assets $465,422 $398,422 $413,025
=================================
Average Interest-Bearing Liabilities $321,085 $277,320 $288,136
Average Non-Interest-Bearing
Liabilities $99,441 $82,040 $85,308
---------------------------------
Total Average Liabilities $420,526 $359,360 $373,444
Average Equity $44,896 $39,062 $39,581
---------------------------------
Total Average Liabilities and Equity $465,422 $398,422 $413,025
=================================
RATIOS (Annualized):
--------------------
Quarter Ended
---------------------------------
Sept. 30, Dec. 31, Sept. 30,
2001 2000 2000
---------------------------------
Interest Rate Yield on
Interest-Earning Assets (TE) 8.60% 9.48% 9.53%
Interest Rate Expense on
Interest-Bearing Liabilities 3.73% 4.42% 4.57%
Interest Rate Spread 4.87% 5.06% 4.96%
Net Interest Margin (TE) 5.76% 6.05% 5.98%
Return on Average Assets 1.48% 1.41% 1.37%
Return on Average Equity 15.33% 14.40% 14.34%
Average Equity / Average Assets 9.65% 9.80% 9.58%
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