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Columbia Commercial Bancorp Reports Third Quarter 2008 Earnings HILLSBORO, OR--(MARKET WIRE)--Oct 23, 2008 -- Columbia Commercial Bancorp (OTC BB:CLBC.OB - News), a
single bank financial holding company for Columbia Community
Bank, reports
net income for third quarter 2008 of $386,874, or $0.12
per diluted share,
compared to $227,988 and $899,632 for the second and first
quarters of
2008, or $0.07 and $0.29 per diluted share, respectively.
"Significant
loan loss provisions along with margin compression throughout
2008 are the
major causes for reduced earnings over the past quarters,"
states the
Company's President and CEO, Rick A. Roby. The Bank's loan
loss provision
was $950,000 for the third quarter 2008, $1,350,000 for
the second quarter
2008, and $380,000 in the first quarter 2008. Roby continued,
"The speed
and depth of the current real estate and economic downturn
has been
unprecedented and the Bank is closely monitoring its residential
construction loan portfolio which requires additional attention
and loan
loss reserves in times like these. While charge-offs thus
far in 2008 have
been just under $500,000, further write-downs are likely
to occur in the
present environment."
Net income for the nine months ended September 30, 2008 was $1,514,494 or $0.48 per diluted share compared to $3,060,956 or $1.00 per diluted share for the first nine months of 2007. Period-ending total assets over the past two quarters have slightly decreased yet outstanding loans continue to increase. Gross loans at $311.1 million as of September 30, 2008 have grown $27.2 million, or 9.6%, over the fiscal year-end 2007 amount of $284.0 million. Growth has taken place in the Bank's commercial and industrial loan portfolio as well as the owner occupied commercial real estate portfolio while the average real estate construction portion of the loan portfolio has decreased. Third Quarter 2008 Performance Measures: -- Return on equity of 6.72% -- Return on assets of 0.40% -- Net interest margin of 3.55% -- Efficiency ratio of 55.55% Year-to-Date 2008 Performance Measures:
-- Return on equity of 8.69%
-- Return on assets of 0.54%
-- Net interest margin of 3.71%
-- Efficiency ratio of 52.86%
-- Total assets at $378.1 million, growth of $28.9 million or 8.3% for
2008
-- Deposit growth of $33.4 million, or 14.1% during 2008With the Bank's $2.7 million loan loss provision for the year and just under $500,000 in charge-offs, it has increased the allowance for loan losses to $5.3 million, or 1.70% of gross loans as of September 30, 2008 compared to $3.1 million, or 1.09% of total loans at year-end 2007. Fred Johnson, the Bank's Chief Credit Officer, states, "The current real estate market is the most challenging in memory. The contraction in residential sales has significantly increased carrying costs for our building customers and, in addition, housing prices have declined. Most of our residential construction loans, though, are to well-established builders with relatively small projects." Johnson continues, "We have built strong relationships with our builders over the past several years which are very beneficial as we strive to work together through these troubled times." Net interest income for the nine months ended September 30, 2008 at $10.1 million is down slightly when compared to the $10.2 million for the same period in 2007. However, as the Company's Chief Financial Officer Bob Ekblad states, "We anticipated increased net interest income in the current year as our earning asset base has increased over this period, but continued rate reductions by the Federal Reserve and a very competitive marketplace for deposits has caused significant margin compression." Net margin for the Bank during the first nine months of 2008 was 3.71%, down from the 4.69% for the same period last year. Ekblad continues, "Net interest margin has continued to drop throughout the year, down to 3.55% for this past quarter." "These are unique and unprecedented times for the Company," states Roby. He continues by saying, "While profits are down from what our team and shareholders are accustomed to, the Company still remains profitable and continues to build capital." The Bank's total risk-based capital ratio this quarter at 10.86% is up from the prior quarter's 10.61% and above the minimum threshold for well-capitalized banks of 10.00%. Roby concludes by saying, "Our employees are working hard through these challenging times as the current pace within the industry and our Company has never been faster." About Columbia Commercial Bancorp: Information about the Company's stock may be obtained through the Over the Counter Bulletin Board at www.otcbb.com. Columbia Commercial Bancorp's stock symbol is CLBC. Columbia Commercial Bancorp was formed in 2002 as a holding company for Columbia Community Bank, which was opened in 1999 by local business people to provide business loans and deposit products for Oregon businesses. With offices in Hillsboro, Forest Grove, Tanasbourne and Tigard/Durham, Columbia Community Bank is dedicated to providing a superior and personalized business banking experience for its clients in and around Oregon. The Bank was named among the "100 Best Companies to Work for in Oregon" by Oregon Business Magazine (2007) and the Bank has also been named by Portland Business Journal as one of the "100 Fastest-Growing Private Companies in Oregon" consistently over the past several years. In 2008, US Banker magazine ranked Columbia Commercial Bancorp number 15 among 1,115 financial institutions in the nation with assets of $2 billion or less based upon a three-year average return on equity. For more information about Columbia Commercial Bancorp, or its subsidiary, Columbia Community Bank, call (503) 693-7500 or visit our website at www.columbiacommunitybank.com. Certain statements in this release may constitute forward-looking statements within the definition of the "safe-harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to significant uncertainties, which could cause actual results to differ materially from those set forth in such statements. Forward-looking statements can be identified by words such as "believe," "estimate," "anticipate," "expect," "intend," "will," "may," "should," or other similar phrases or words. Readers are cautioned not to place undue reliance on forward-looking statements. The bank does not intend to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
Consolidated Balance Sheet
Unaudited
(amounts in 000's, except per share data)
% Change % Change
September 30, 2008 vs. December 31, Year-to-
2008 2007 2007 2007 Date
--------- --------- --------- --------- ---------
ASSETS
Cash & due from
banks $ 3,378 $ 3,576 -5.54% $ 4,724 -28.49%
Federal funds
sold 617 - n/a 737 -16.28%
Investments 50,361 43,934 14.63% 49,976 0.77%
Gross loans 311,142 265,520 17.18% 283,967 9.57%
Allowance for
loan losses (5,280) (2,920) 80.82% (3,100) 70.32%
--------- --------- --------- --------- ---------
Net loans 305,862 262,600 16.47% 280,867 8.90%
Other assets 17,855 10,454 70.80% 12,887 38.55%
--------- --------- --------- --------- ---------
Total Assets $ 378,073 $ 320,564 17.94% $ 349,191 8.27%
========= ========= ========= ========= =========
LIABILITIES
Deposits $ 270,063 $ 222,627 21.31% $ 236,690 14.10%
Repurchase
agreements 11,352 16,641 -31.78% 16,375 -30.67%
Federal funds
purchased - 2,048 -100.00% - 0.00%
FHLB borrowings 60,135 45,500 32.16% 59,000 1.92%
Real estate
borrowings 1,840 1,921 -4.22% 1,901 -3.21%
Junior
subordinated
debentures 8,248 8,248 0.00% 8,248 0.00%
Other liabilities 3,066 3,213 -4.58% 4,880 -37.17%
--------- --------- --------- --------- ---------
Total
Liabilities 354,704 300,198 18.16% 327,094 8.44%
STOCKHOLDERS' EQUITY 23,369 20,366 14.75% 22,097 5.76%
--------- --------- --------- --------- ---------
Total
liabilities
and
stockholders'
equity $ 378,073 $ 320,564 17.94% $ 349,191 8.27%
========= ========= ========= ========= =========
Shares outstanding
at end-of-period 3,111,081 2,967,836 3,006,236
Book value per share $ 7.51 $ 6.86 $ 7.35
Allowance for loan
losses to total
loans 1.70% 1.10% 1.09%
Non-performing
assets (non-accrual
loans & OREO) $ 10,487 $ - $ -
Consolidated Income Statement
Unaudited
(amounts in 000's, except per share data and ratios)
Three Months Ending
--------------------
9/30/2008 6/30/2008 3/31/2008 % Change
--------- --------- --------- --------
INTEREST INCOME
Loans $ 5,513 $ 5,632 $ 5,962 -2.11%
Investments 716 773 791 -7.37%
Federal funds sold and other 14 23 21 -39.13%
--------- --------- --------- --------
Total interest income 6,243 6,428 6,774 -2.88%
--------- --------- --------- --------
INTEREST EXPENSE
Deposits 2,123 2,176 2,385 -2.44%
Repurchase agreements and
federal funds purchased 83 112 159 -25.89%
FHLB borrowings 608 570 635 6.67%
Real estate borrowings 35 34 35 2.94%
Junior subordinated debentures 108 107 152 0.93%
--------- --------- --------- --------
Total interest expense 2,957 2,999 3,366 -1.40%
--------- --------- --------- --------
NET INTEREST INCOME BEFORE
PROVISION FOR LOAN LOSSES 3,286 3,429 3,408 -4.17%
PROVISION FOR LOAN LOSSES 950 1,350 380 -29.63%
--------- --------- --------- --------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 2,336 2,079 3,028 12.36%
NON-INTEREST INCOME 129 105 129 22.86%
NON-INTEREST EXPENSE 1,898 1,875 1,770 1.23%
SECURITY GAINS / (LOSSES) 10 10 30 0.00%
--------- --------- --------- --------
INCOME BEFORE PROVISION FOR
INCOME TAXES 577 319 1,417 80.88%
PROVISION FOR INCOME TAXES 191 91 517 109.89%
--------- --------- --------- --------
NET INCOME $ 386 $ 228 $ 900 69.30%
========= ========= ========= ========
Earnings per share - Basic (1) $ 0.13 $ 0.08 $ 0.30 62.50%
Earnings per share - Diluted (1) $ 0.12 $ 0.07 $ 0.29 71.43%
Return on average equity 6.72% 3.85% 15.95% 74.55%
Return on average assets 0.40% 0.24% 0.98% 66.67%
Net interest margin 3.55% 3.76% 3.84% -5.59%
Efficiency ratio 55.55% 53.06% 50.04% 4.69%
Nine Months Ending
------------------
9/30/2008 9/30/2007 % Change
-------- -------- --------
INTEREST INCOME
Loans $ 17,107 $ 17,542 -2.48%
Investments 2,280 1,785 27.73%
Federal funds sold and other 58 54 7.41%
-------- -------- --------
Total interest income 19,445 19,381 0.33%
-------- -------- --------
INTEREST EXPENSE
Deposits 6,684 6,407 4.32%
Repurchase agreements and
federal funds purchased 354 578 -38.75%
FHLB borrowings 1,813 1,593 13.81%
Real estate borrowings 104 110 -5.45%
Junior subordinated debentures 367 487 -24.64%
-------- -------- --------
Total interest expense 9,322 9,175 1.60%
-------- -------- --------
NET INTEREST INCOME BEFORE
PROVISION FOR LOAN LOSSES 10,123 10,206 -0.81%
PROVISION FOR LOAN LOSSES 2,680 560 378.57%
-------- -------- --------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 7,443 9,646 -22.84%
NON-INTEREST INCOME 363 262 38.55%
NON-INTEREST EXPENSE 5,543 4,823 14.93%
SECURITY GAINS / (LOSSES) 50 (123) n/a
-------- -------- --------
INCOME BEFORE PROVISION FOR
INCOME TAXES 2,313 4,962 -53.39%
PROVISION FOR INCOME TAXES 799 1,901 -57.97%
-------- -------- --------
NET INCOME $ 1,514 $ 3,061 -50.54%
======== ======== ========
Earnings per share - Basic (1) $ 0.50 $ 1.03 -51.46%
Earnings per share - Diluted (1) $ 0.48 $ 1.00 -52.00%
Return on average equity 8.69% 21.53% -59.64%
Return on average assets 0.54% 1.35% -60.14%
Net interest margin 3.71% 4.69% -20.85%
Efficiency ratio 52.86% 46.07% 14.73%
(1) All prior periods have been restated for the 100% stock dividend
effective July 1, 2007.Contact: CONTACT:
Rick A. Roby
President & Chief Executive Officer
503-693-7500
rick@columbiacommunitybank.com
Source: Columbia Commercial Bancorp
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