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 TACOMA, Wash., Nov. 10 /PRNewswire/ -- Columbia Banking System Inc. (NASDAQ: COLB) announced today a third quarter loss of $1.8 million due to expenses associated with Columbia Bank's recent expansion into the Tacoma/Pierce County market. The loss includes pre-opening expenses of approximately $1 million consisting primarily of salaries, advertising, premises, furniture and equipment. Also impacting performance were expenses associated with the merger of Columbia National Bankshares Inc. (CNBI) which was treated as a pooling of interests for accounting purposes. Pre-merger historical financial information has been restated to include the accounts of CNBI.
 The company recorded a net loss for the third quarter of 1993 of $1.8 million compared to net income of $282,000 in the third quarter of 1992. For the first nine months of 1993, net losses were $1.1 million compared with a net profit of $924,000 for the first nine months of 1992. Fully diluted earnings per share for the third quarter ended Sept. 30, 1993, reflected a net loss of 76 cents per share compared to earnings of 21 cents per share for the third quarter ending Sept. 30, 1992.
 "Management forecasted a loss for the third quarter due to our expansion in the Tacoma/Pierce County market," noted A.G. Espe, chairman and chief executive officer. "Losses are expected to continue for a period of several quarters until growth in revenues is sufficient to cover overhead."
 Columbia Bank, headed by W.W. Philip, president, opened its first Tacoma area branch location in Fircrest on Sept. 20, just five weeks after the opening of its Main Office at 11th & Broadway in downtown Tacoma. Another branch in Lakewood, a Tacoma suburb, is scheduled to open Nov. 16. A branch in Gig Harbor is planned to open soon, and management is pursuing sites at 19th & Union and in the Puyallup area.
 "The bank has been very well received by the people in the Tacoma community," said Philip. "Customer demand for additional branch locations is strong. With such a favorable community response to our bank, we plan to open well located branch offices as soon as practical."
 Total assets increased $55.3 million, or 34.9 percent, to $214 million at Sept. 30, 1993 from $158.7 million at Dec. 31, 1992. Total loans were $143.8 million at Sept. 30, 1993, an increase of $23.0 million, or 19 percent, from $120.8 million at Dec. 31, 1992. Total deposits were $146.7 million at Sept. 30, 1993, an increase of $28.7 million, or 24.3 percent, from $118.0 million at Dec. 31, 1992. Deposits in Pierce County are climbing at a rapid rate and were over $30 million at the end of October 1993. Loan demand is also demonstrating good growth.
 Columbia Savings Bank, the company's thrift banking subsidiary, continues to serve the local housing market and is also building a base of small to medium-size business customers. Columbia Savings Bank recently established a new consumer credit card program and merchant services program as it continues to develop a broader range of products and services. As previously announced, Columbia Bank plans to acquire the Longview, Wash. and southwest Washington branches of Columbia Savings Bank.
 Columbia First Service, the company's mortgage banking subsidiary, expanded its operations to include a new Tacoma office during the third quarter and now operates out of Pierce, King and Cowlitz counties. Columbia Fist Service, headed by James Maxwell, will be moving its administrative offices form Bellevue, Wash. to Tacoma early in 1994 and will be located at the Columbia Bank headquarters at 11th and Broadway.
 "With our experienced and capable team of banking professionals committed to the growth of the organization and our strong capital position, we are optimistic about the future progress of Columbia Banking System," said Espe.
 Columbia Banking System moved its headquarters to Tacoma in late September. Columbia Bank is headquartered in Tacoma and Columbia Savings Bank remains headquartered in Bellevue.
 (dollars in thousands, except per-share amounts)
 Three months ended Nine months ended
 Sept. 30 1993 1992 1993 1992
 Net interest income $ 1,719 $ 1,199 $ 4,611 $ 3,227
 Provision for loan
 losses 202 60 362 130
 Net income (loss) (1,839) 282 (1,053) 924
 Per share:
 Net income (loss) (0.76) 0.21 (0.58) 0.93
 Fully diluted earnings
 (loss) per share (0.76) 0.21 (0.58) 0.89
 Total assets 206,935 145,644 182,036 131,819
 Loans 139,638 109,845 133,544 101,614
 Deposits 136,234 106,829 126,852 99,491
 Shareholders' equity 30,562 11,540 18,657 8,516
 Financial ratios:
 Return on average
 assets (pct.) n/a 0.77 n/a 0.93
 Return on average
 equity (pct.) n/a 9.77 n/a 14.47
 Average equity to average
 assets (pct.) 14.77 7.92 10.25 6.46
 At Sept. 30, At Dec. 31,
 1993 1992
 Total assets $214,005 $158,694
 Loans 143,805 120,797
 Allowance for loan losses 1,877 1,539
 Deposits 146,680 118,014
 Shareholders' equity 31,177 11,641
 Book value per share 9.60 8.66
 Nonperforming assets:
 Nonaccrual loans 723 650
 Restructured loans 95 109
 Real estate owned 3,128 2,959
 -0- 11/10/93
 /CONTACT: A.G. Espe, chairman, 206-305-1970, or W.W. Philip, president, 206-305-1993, or Mike Pete, senior vice president and chief financial officer, 206-646-5372, all of Columbia Banking System/

CO: Columbia Banking System Inc.; Columbia Bank; Columbia National
 Bankshares Inc.; Columbia Savings Bank; Columbia First Service ST: Washington IN: FIN SU: ERN

IC-JH -- SE008 -- 2593 11/10/93 08:51 EST
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Publication:PR Newswire
Date:Nov 10, 1993

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