Printer Friendly

COLUMBIA BANKING SYSTEM INC. REPORTS 1993 SECOND QUARTER EARNINGS

 BELLEVUE, Wash., Aug. 19 /PRNewswire/ -- Columbia Banking System Inc. (NASDAQ: COLB) today reported second quarter 1993 earnings of $190,000 compared with $299,000 for the second quarter of 1992. Earnings for the first six months of 1993 were $606,000, compared with $584,000 for the first six months of 1992. Fully diluted per share earnings for the quarter ended June 30, 1993 were 13 cents compared with 46 cents per share, as adjusted, for the second quarter of 1992.
 Net income per share decreased primarily due to the issuance of common stock in the company's initial public offering, which was completed in June of 1992, and due to the conversion of convertible subordinated notes in the first six months of 1993. Net income per share was also impacted by expenses associated with rapid growth, a data processing system installed during the second half of 1992, and expenses associated with Columbia Bank's (Commercial Bank) expansion into the Tacoma/Pierce County market. In July, 1992, Columbia Banking System raised additional equity through its initial public offering consisting of the sale of 604,740 shares of common stock and $5.75 million in convertible notes. Second quarter 1993 earnings per share reflect the public offering and the issuance of 174,301 shares of common stock on conversion of the convertible notes.
 A. G. Espe, chairman and chief executive officer of Columbia Banking System noted that net interest income, before provision for loan losses was up a strong 38 percent during the quarter and that non-interest income, excluding gains on sales of securities, were also up a strong 69 percent. Those increases in income were more than offset by substantial increases in personnel and other expenditures associated with the company's current growth and to proposed expansion into the Tacoma/Pierce County area.
 Espe also reported that the company's pending merger with Columbia National Bankshares Inc. was consummated on Aug. 16 and that 1,580,000 shares of common stock were sold in an underwritten public offering completed on that date. On Aug. 17 Columbia Bank opened for business at 1102 Broadway Plaza in Tacoma, under the direction of W. W. (Bill) Philip, the former chairman and chief executive officer of Puget Sound Bancorp. Two additional Pierce County branches are expected to open before year end in the Fircrest area and at 19th and Union. In addition to his duties as president and chief executive officer of Columbia Bank, Philip has also assumed the position of president and chief operating officer of the company.
 Espe noted that the company has determined and previously announced its intent that Columbia Bank establish broad branch coverage in the greater Tacoma area as soon as possible. That strategy anticipates that the commercial bank will incur substantial losses as it attempts to increase its asset base efficiently to generate total income in excess of its expected overhead and other expenses. In anticipation of the expanded operations in the Tacoma area, the company incurred certain expenses in the second quarter of 1993 which had a negative impact on net income for the quarter. In view of the volume of expenditures expected in the next several quarters, Espe noted that the company will likely report net losses for several quarters, expects to report a net loss for fiscal year 1993 and may report a net loss for fiscal year 1994 as it attempts to substantially increase its franchise.
 Net interest income for the second quarter of 1993 increased to $1.2 million from $869,000 in the second quarter of 1992. For the first six months of 1993, net interest income increased to $2.4 million from $1.6 million for the first six months of 1992. The increase in net interest income in the second quarter and for the first six months of 1993 is largely due to average interest-earning assets, primarily loans and securities, increasing more rapidly than average interest bearing liabilities, primarily interest-bearing deposits and borrowings.
 Total noninterest expense increased $604,000 in the second quarter and $1.2 million in the first six months of 1993 compared to the same periods in 1992. Columbia First Service, which was not in operation during the first six months of 1992, represented $122,000 and $403,000 of the expense increase in the second quarter and first six months of 1993, respectively, compared to the same periods in 1992. Other noninterest expense increases were centered in compensation and employee benefits, premises and professional services. These increases were a result of management's aggressive growth strategy and its planned expansion in the Tacoma/Pierce County market.
 In addition to Columbia Bank, which is a commercial bank, Columbia Banking System Inc. operates Columbia Bank, F.S.B. which has four offices in western Washington: two in Longview, one in Woodland and one in Bellevue. Columbia First Service Inc., the bank's mortgage subsidiary, has offices in Bellevue, Seattle and Longview. Espe noted that the mortgage banking operation is now headed by James Maxwell, the former president of Puget Sound Savings Bank, and that the company expects to expand its mortgage banking operation in Tacoma as part of the Columbia Bank expansion in that market.
 Upon opening of Columbia Bank in Pierce County, Columbia Banking System is also moving its headquarters to Tacoma. Columbia Savings Bank will continue to be headquartered in Bellevue.
 COLUMBIA BANKING SYSTEM INC.
 FINANCIAL HIGHLIGHTS
 (In thousands, except per share data)
 Three months ended Six months ended
 June 30: 1993 1992 1993 1992
 Interest income $2,963 $2,389 $5,733 $4,591
 Interest expense 1,764 1,520 3,378 2,986
 Non-interest expense 1,301 697 2,589 1,373
 Net interest income after
 provision for loan losses 1,099 824 2,195 1,535
 Income before income taxes
 and cumulative effect of
 SFAS 109 accounting
 changes 190 299 484 584
 Income taxes and cumulative
 effect of accounting
 changes, net - - 122 -
 Net income 190 299 606 584
 Net income per share:
 Primary 0.13 0.48 0.41 0.97
 Fully diluted $ 0.13 $ 0.46 $ 0.41 $ 0.95
 Common stock shares
 outstanding:
 Average primary 1,478 628 1,462 604
 Average fully diluted 1,478 674 1,462 627
 6/30/93 12/31/92
 Total assets $168,585 $139,532
 Loans receivable 119,079 106,644
 Shareholders' equity 13,682 10,301
 Book value per share 9.71 9.07
 Net worth ratio (shareholders'
 equity to total assets) 8.12 7.38
 Market price of common stock
 at period end $ 13.00 $ 9 1/2
 Common shares outstanding at
 period end 1,409 1,136
 -0- 8/19/93
 /CONTACT: Arnold G. Espe, chairman, of Columbia Bank, 206-646-5371/
 (COLB)


CO: Columbia Banking System ST: Washington IN: FIN SU: ERN

MN-JH -- SE013 -- 4564 08/19/93 21:41 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 19, 1993
Words:1133
Previous Article:MAI SYSTEMS CORP. FILES PLAN OF REORGANIZATION AND ANNOUNCES RESULTS
Next Article:DEJA SHOE RECRUITS VICE PRESIDENT OF ENVIRONMENTAL AFFAIRS
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters