COLUMBIA, Md., Jan. 21 /PRNewswire/ -- Columbia Bancorp (Nasdaq: CBMD),
parent company of The Columbia Bank, today announced fourth quarter earnings
of $1.21 million, or $.26 per diluted share compared to $1.11 million, or
$.24 per diluted share for the same period in 1997. For the year ended
December 31, 1998, earnings totaled $4.75 million, or $1.03 per diluted share,
representing increases of 13.9% and 13.2%, respectively, over the
$4.17 million, or $.91 per diluted share reported for 1997. All results have
been restated to reflect the 2-for-1 stock split-up in the form of a 100%
stock dividend paid in June 1998. At year-end, assets totaled $427.3 million,
loans, net of unearned income, totaled $274.4 million, and deposits totaled
$339.3 million, all representing record levels for the Company. Reflecting
their confidence in the long-term prospects of the Company, the Board of
Directors announced in December 1998 an increase in the quarterly cash
dividend of 14.3% to $.08 per share.
During 1998, the Company faced accelerated consumer refinancing activity
and intense competition for new loans with regard to pricing and credit terms.
Throughout this period, management remained cautious and maintained
conservative underwriting standards. As a result, loan growth on a
year-to-year basis slowed significantly to 3.5%. Deposit growth of 8.3% on a
year-to-year basis remained strong, but reflected the Company's slower loan
growth and strong liquidity position throughout the year. Also as a result of
competitive loan pricing forces and the dramatic 75 basis point decline in the
prime lending rate during the fourth quarter of 1998, the net interest margin
for the quarter ended December 31, 1998, declined to 4.98% as compared to
5.65% during the same period in 1997. On a year-to-year comparison, the
average net interest margin fell from 5.94% for 1997 to 5.39% for 1998.
Repricing of the Company's time deposits during 1999 will lessen the impact of
the decline in the prime rate during the past quarter. Other operating trends
remained essentially unchanged from those reported throughout the year.
Mr. John M. Bond, Jr., President and CEO of the Company, commented further
upon 1998 results and future prospects stating, "We are pleased with the
record performance delivered in 1998 given the challenges presented by
competitive forces and the unstable interest rate environment."
Columbia Bancorp, headquartered in Columbia, Maryland, is a bank holding
company and parent company of The Columbia Bank, a commercial bank. The
Columbia Bank operates fourteen banking offices and provides a full range of
financial services to consumers and businesses.
COLUMBIA BANCORP
Financial Highlights
(Dollars In Thousands Except Per-Share Data)
As of and Twelve Months Ended As of and Three Months Ended
December 31, December 31,
1998 1997 % Change 1998 1997 % Change
(unaudited) (unaudited)
SUMMARY OF
OPERATING RESULTS:
Net interest
income $19,910 18,720 6.4% $4,908 4,787 2.5%
Provision for
credit losses 659 663 -0.6% 142 34 317.6%
Noninterest
income 3,424 2,182 56.9% 1,003 595 68.6%
Noninterest
expense 15,384 13,721 12.1% 3,929 3,655 7.5%
Income tax
provision 2,545 2,350 8.3% 635 581 9.3%
Net income 4,746 4,168 13.9% 1,205 1,112 8.4%
PER COMMON
SHARE DATA (a):
Net income:
Basic $1.05 0.97 8.2% $0.26 0.26 0.0%
Diluted 1.03 0.91 13.2% 0.26 0.24 8.3%
Average number
of shares
outstanding:
Basic 4,529,052 4,325,512 4.7% 4,570,903 4,373,014 4.5%
Diluted 4,627,080 4,579,346 1.0% 4,655,308 4,617,864 0.8%
Tangible book
value, at
period end 8.39 7.77 7.9%
Cash dividends
declared $0.29 0.25 16.0% $0.08 0.07 14.3%
PERIOD END DATA:
Assets $427,335 373,451 14.4%
Deposits 339,336 313,357 8.3%
Loans, net of
unearned
income 274,413 265,194 3.5%
Investment
securities and
securities
available-
for-sale 84,016 66,645 26.1%
Stockholders'
equity 38,354 34,385 11.5%
PERFORMANCE
RATIOS:
Return on
average
assets 1.18% 1.21% 1.12% 1.19%
Return on
average
stockholders'
equity 12.94% 12.78% 12.51% 13.03%
Net interest
margin 5.39% 5.94% 4.98% 5.65%
CAPITAL AND
ASSET QUALITY:
Period-end
capital to
period-end
risk-weighted
assets:
Tier 1 11.68% 11.31%
Total 12.89% 12.51%
Period-end
Tier 1 capital
leverage
ratio 9.00% 9.25%
Allowance for
credit losses
to loans, net
of unearned
income, at
period-end 1.45% 1.37%
Nonperforming
and past-due
loans to total
loans, net of
unearned
income, at
period-end 1.11% 0.25%
Nonperforming
assets and
past-due loans
to total
assets, at
period-end 1.66% 1.41%
Net charge-offs
to average
loans, net of
unearned
income 0.12% 0.13% 0.12% 0.04%
AVERAGE BALANCES:
Federal funds
sold $13,577 3,113 336.1%* $25,530 1,990 1182.9%*
Investment
securities and
securities
available-
for-sale 74,454 55,974 33.0% 77,908 64,124 21.5%
Loans, net of
unearned
income 268,205 253,809 5.7% 270,671 264,961 2.2%
Loans
originated
for sale 13,463 3,140 328.8%* 17,110 4,948 245.8%*
Total earning
assets 369,699 316,036 17.0% 391,219 336,023 16.4%
Total assets 403,340 345,626 16.7% 425,555 369,724 15.1%
Interest-
bearing
deposits 269,716 236,775 13.9% 278,521 254,033 9.6%
Short-term
borrowings 27,973 27,653 1.2% 28,465 29,825 -4.6%
Long-term
borrowings 10,769 -- na 18,750 -- na
Stockholders'
equity 36,676 32,620 12.4% 38,204 33,859 12.8%
(a) Per common share data for 1997 has been adjusted to reflect the
2-for-1 stock split-up in the form of a 100% stock dividend paid in
June 1998.
* Variances caused by large daily fluctuations in the balance due to
the nature of the account.
Note: Certain amounts for prior periods have been reclassified to conform
to the presentation at December 31, 1998.
COLUMBIA BANCORP
Consolidated Statements of Condition
(Dollars In Thousands)
December 31,
1998 1997
(Unaudited)
ASSETS
Cash and due from banks $15,430 13,497
Federal funds sold 17,099 2,014
Investment securities 73,782 64,971
Securities available-for-sale 10,234 1,674
Residential mortgage loans
originated for sale 17,387 6,557
Loans, net of unearned income 274,413 265,194
Less: allowance for credit losses 3,965 3,632
Loans, net 270,448 261,562
Other real estate owned 4,043 4,622
Property and equipment, net 8,616 9,125
Prepaid expenses and other assets 10,296 9,429
Total assets $427,335 373,451
LIABILITIES
Deposits:
Noninterest-bearing demand deposits $60,372 56,584
Interest-bearing deposits 278,964 256,773
Total deposits 339,336 313,357
Short-term borrowings 27,012 23,725
Long-term borrowings 20,000 --
Accrued expenses and other liabilities 2,633 1,984
Total liabilities 388,981 339,066
STOCKHOLDERS' EQUITY
Common stock, $.01 par value per share;
authorized 9,550,000 shares; outstanding
4,561,650 and 4,400,330 shares,
respectively 46 44
Additional paid-in capital 23,511 22,919
Retained earnings 14,826 11,423
Accumulated other comprehensive income (29) (1)
Total stockholders' equity 38,354 34,385
Total liabilities and stockholders'
equity $427,335 373,451
COLUMBIA BANCORP
Consolidated Statements of Income
(Dollars in Thousands Except Per-Share Data)
Twelve Months Ended Three Months Ended
December 31, December 31,
1998 1997 1998 1997
(unaudited) (unaudited)
Interest income:
Loans $27,768 26,742 6,754 6,946
Investment securities 4,448 3,259 1,167 949
Federal funds sold 712 192 299 32
Total interest income 32,928 30,193 8,220 7,927
Interest expense:
Deposits 11,195 10,094 2,903 2,788
Borrowings 1,823 1,379 409 352
Total interest expense 13,018 11,473 3,312 3,140
Net interest income 19,910 18,720 4,908 4,787
Provision for credit losses 659 663 142 34
Net interest income after
provision for credit
losses 19,251 18,057 4,766 4,753
Noninterest income:
Gains and fees on sales of
mortgage loans, net
of costs 1,268 356 431 138
Fees charged for services 1,380 1,227 374 300
Other 776 599 198 157
Total noninterest income 3,424 2,182 1,003 595
Noninterest expense:
Salaries and employee
benefits 7,749 6,815 1,962 1,924
Occupancy, net 1,885 1,420 479 399
Equipment 1,217 1,038 324 295
Data processing 780 597 204 160
Marketing 540 544 135 83
Cash management services 338 413 83 84
Professional fees 361 392 96 90
Deposit insurance and
assessments 126 112 32 31
Net expense (income) on
other real estate owned (14) 134 25 (33)
Other 2,402 2,256 589 622
Total noninterest
expense 15,384 13,721 3,929 3,655
Income before income taxes 7,291 6,518 1,840 1,693
Income tax provision 2,545 2,350 635 581
Net income 4,746 4,168 1,205 1,112
Other comprehensive income,
net of tax:
Unrealized gains on securities
available-for-sale (28) 7 (29) 0
Comprehensive income $4,718 4,175 1,176 1,112
Per common share data (a):
Net income: Basic $1.05 0.97 0.26 0.26
Diluted 1.03 0.91 0.26 0.24
Cash dividends declared $0.29 0.25 0.08 0.07
(a) Per common share data for 1997 has been adjusted to reflect the
two-for-one stock split-up in the form of a 100% stock dividend paid
in June 1998.
Note: Certain amounts for prior periods have been reclassified to conform
to the presentation at December 31, 1998.
SOURCE Columbia Bancorp
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Related links:
http://www.columbank.com
Company News On-Call:
http://www.prnewswire.com/comp/127921.html or fax,
800-758-5804, ext. 127921
CONTACT:
John A. Scaldara, Jr., CFO of Columbia
Bancorp, 410-465-4800
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