COLUMBIA, Md., Jan. 22 /PRNewswire-FirstCall/ -- Columbia Bancorp
(Nasdaq: CBMD), parent company of The Columbia Bank (the "Bank"), today
announced net income for the year ended December 31, 2003 of $11.90 million
($1.62 per diluted share) compared to $10.87 million ($1.50 per diluted share)
for 2002, a 9.5% increase. Core net income (net income exclusive of
non-recurring income related to the sale of the Company's administrative
office building in the fourth quarter 2002) for 2003 and 2002 was $11.90
million and $10.44 million, respectively, representing an increase of 14.1%.
Reported net income for the fourth quarters in 2003 and 2002 was $3.13 million
and $3.48 million, respectively. Core net income for the fourth quarter 2003
totaled $3.13 million ($.42 per diluted share) compared to $3.04 million ($.42
per diluted share) for the fourth quarter 2002.
For the year ended December 31, 2003, return on average equity was 14.63%
compared to 14.17%, exclusive of non-recurring income, and 14.77%, as
reported, for 2002. Return on average equity for the fourth quarter 2003 was
14.55% compared to 15.40%, exclusive of non-recurring income, and 17.61%, as
reported, for 2002.
Total assets at December 31, 2003 were $1.03 billion, representing growth
on a year-to-year basis of 4.8%. The strength in loan growth reported
throughout the year continued in the fourth quarter 2003 with loans, net of
unearned income, ending the year at $835.48 million, up $170.66 million or
25.7% since December 31, 2002. Loan growth during 2003 was primarily
supported by strength in the Company's real estate development and
construction, commercial and retail loan portfolios, which increased $85.04
million (45.5%), $57.03 million (28.8%) and $25.94 million (18.1%),
respectively. Customer funding sources, representing deposits plus other
short-term borrowings from customers, increased 1.4% to $890.85 million at
December 31, 2003. The modest growth in customer funding sources was achieved
despite a decrease in balances maintained by title company customers of $50.39
million, which corresponded with the sharp decline in mortgage refinancing
activity at year-end. Stockholders' equity climbed to $85.45 million, or
11.1%, since December 31, 2002, representing a tangible book value of $11.92.
The Company continued its uninterrupted payment of quarterly cash dividends
since 1994, increasing the quarterly dividend amount 20% to $.15 per share in
December 2003.
Core operating performance during 2003 as compared to 2002 was driven by
an increase in net interest income of $3.58 million, or 9.7%, and an increase
in noninterest income of $1.74 million, or 24.1%, adjusted to exclude
non-recurring income in 2002. Exceptional loan growth during 2003 and modest
improvement in the net interest margin (FTE) from 4.37% to 4.42% contributed
to the growth in net interest income. Growth in noninterest income during the
year was influenced by increased gains on sales of mortgage loans, net of
costs, of $857,000, increased fees charged for deposit services of $424,000,
and increased revenues from the sale of financial products of $306,000.
The Company was successful in continuing efforts to leverage its overhead
structure by limiting the increase in noninterest expenses during 2003 to
$2.80 million or 10.3%, while core operating income (net interest income plus
noninterest income adjusted to exclude non-recurring income) increased $5.32
million or 12.0%. The increase in noninterest expense during the year
included: (i) an increase of $1.20 million in salaries and payroll taxes,
reflecting merit and promotion adjustments and increased business activities;
(ii) an increase in employee benefits of $463,000, reflecting costs associated
with the Company's Deferred Compensation Plan driven by an appreciation in the
Company's common stock from $22.03 at December 31, 2002 to $31.95 at December
31, 2003, a 45% increase; (iii) an increase in occupancy costs of $478,000
reflecting the transition from property ownership in 2002 to rental in 2003;
and (iv) an increase in data processing costs of $299,000, reflecting
increased transaction activity.
Asset quality remained strong at December 31, 2003, with non-performing
assets totaling only $964,000. As of December 31, 2003, non-performing assets
represented .09% of total assets. At December 31, 2003, the allowance for
credit losses totaled $10.83 million, or 1.30% of loans, compared to $8.84
million, or 1.33% of loans, at December 31, 2002. The Company recorded net
recoveries during 2003 of $819,000. The provision for loan losses increased
from $835,000 in 2002 to $1.17 million in 2003, reflecting loan growth.
FOURTH QUARTER FINANCIAL HIGHLIGHTS
* Loans, net of unearned income increased $38.38 million since September
30, 2003, representing an annualized growth rate of 19.3%.
* Net interest income (FTE) increased $958,000 or 9.7% over the fourth
quarter of 2002.
* The net interest margin improved, increasing from 4.31% during the
fourth quarter 2002 to 4.43% during the fourth quarter 2003.
* Gains on sales of mortgage loans, net of costs, declined $568,000,
reflecting the sharp decline in mortgage financing activity.
* Quarterly cash dividends increased 20% from $.125 per share to $.15 per
share.
ABOUT COLUMBIA BANCORP
Columbia Bancorp, headquartered in Columbia, Maryland, is a bank holding
company and parent company of The Columbia Bank, a commercial bank. The
Columbia Bank currently operates twenty-four banking offices in the
Baltimore/Washington Corridor and provides a full range of financial services
to consumers and businesses. Columbia Bancorp's Common Stock is traded on the
National Market tier of The Nasdaq Stock Market(SM) under the symbol "CBMD".
NON-GAAP PRESENTATION
This press release includes disclosure and discussion of the net interest
margin and efficiency ratio which are reported on a fully tax-equivalent basis
("FTE"). This press release also includes disclosure and discussion of net
income, noninterest income, the efficiency ratio, earnings per share, and
return on average equity, exclusive of non-recurring income. These amounts
and ratios are non-GAAP financial measures as defined in Securities and
Exchange Commission ("SEC") Regulation G and Item 10 of SEC Regulation S-K.
Management believes that these measures are better indicators of operating
performance than the GAAP-based ratios and better tools for managing net
interest income, noninterest income, and noninterest expenses. A complete
reconciliation of the GAAP-based and non-GAAP information included in this
press release is provided in the following schedules. Non-GAAP information
presented by other companies may not be comparable to that presented herein,
since each company may define non-GAAP measures differently.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this Press Release are forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
The forward-looking statements are based on Columbia Bancorp's current intent,
belief and expectations. These statements are not guarantees of future
performance and are subject to certain risks and uncertainties that are
difficult to predict. Actual results may differ materially from these
forward-looking statements because of interest rate fluctuations, a
deterioration of economic conditions in the Baltimore/Washington metropolitan
area, a downturn in the real estate market, losses from impaired loans, an
increase in non-performing assets, potential exposure to environmental laws,
federal and state bank laws and regulations, the highly competitive nature of
the banking industry, a loss of key personnel, changes in accounting standards
and other risks described in this filing and the Company's other filings with
the Securities and Exchange Commission. Existing and prospective investors
are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of today's date. Columbia Bancorp undertakes no
obligation to update or revise the information contained in this filing
whether as a result of new information, future events or circumstances or
otherwise. Past results of operations may not be indicative of future
results.
COLUMBIA BANCORP
Financial Highlights
(Dollars in Thousands Except Per-Share Data
As of and Twelve Months
Ended
December 31,
2003 2002 % Change
(unaudited)
SUMMARY OF OPERATING
RESULTS:
GAAP-based:
Interest income $51,403 $52,566 (2.2%)
Interest expense 10,736 15,479 (30.6%)
Net interest income 40,667 37,087 9.7%
Provision for credit losses 1,170 835 40.1%
Noninterest income 8,963 7,945 12.8%
Noninterest expense 29,970 27,166 10.3%
Income before taxes 18,490 17,031 8.6%
Income tax provision 6,586 6,160 6.9%
Net income 11,904 10,871 9.5%
Based on core operating performance
(a):
Tax equivalent interest income $51,942 $52,867 (1.7%)
Interest expense 10,736 15,479 (30.6%)
Tax equivalent net interest
income 41,206 37,388 10.2%
Tax equivalent adjustment 539 301 79.1%
Net interest income 40,667 37,087 9.7%
Provision for credit losses 1,170 835 40.1%
Noninterest income 8,963 7,225 24.1%
Noninterest expense 29,970 27,166 10.3%
Income before taxes 18,490 16,311 13.4%
Income tax provision 6,586 5,876 12.1%
Net income 11,904 10,435 14.1%
PER SHARE DATA:
Net income:
GAAP-based:
Basic $1.67 $1.53 9.2%
Diluted $1.62 $1.50 8.0%
Based on core operating
performance (a):
Basic $1.67 $1.47 13.5%
Diluted $1.62 $1.44 12.4%
Average number of shares
outstanding:
Basic 7,133,937 7,099,502 0.5%
Diluted 7,369,736 7,263,037 1.5%
Book value, at period end $11.92 $10.82 10.1%
Tangible book value, at period
end $11.92 $10.82 10.1%
Cash dividends declared $0.525 $0.455 15.4%
PERIOD END DATA:
Loans, net of unearned income $835,484 $664,826 25.7%
Investment securities and
securities
available-for-sale 133,927 151,498 (11.6%)
Assets 1,029,255 982,002 4.8%
Noninterest-bearing deposits 206,323 171,182 20.5%
Interest-bearing deposits 581,285 559,431 3.9%
Total deposits 787,608 730,613 7.8%
Customer funding sources (b) 890,852 878,516 1.4%
Stockholders' equity 85,449 76,923 11.1%
PERFORMANCE RATIOS:
GAAP-based:
Return on average assets 1.22% 1.20%
Return on average stockholders'
equity 14.63% 14.77%
Net interest margin 4.36% 4.34%
Efficiency ratio 60.39% 60.33%
Based on core operating performance
(a):
Return on average assets 1.22% 1.15%
Return on average stockholders'
equity 14.63% 14.17%
Net interest margin (FTE) 4.42% 4.37%
Efficiency ratio (FTE) 59.74% 60.89%
CAPITAL RATIOS:
Period-end capital to risk-
weighted assets:
Tier 1 9.28% 9.84%
Total 10.45% 10.97%
Period-end tier 1 leverage ratio 8.43% 7.98%
ASSET QUALITY:
Net recoveries (charge-offs) $819 $(20) (4195.0%)
Nonperforming assets:
Nonaccrual loans 892 563 58.4%
Loans 90+ days past due and
accruing 72 168 (57.1%)
Other real estate owned - 178 (100.0%)
Total nonperforming
assets and past due
loans 964 909 6.1%
Allowance for credit losses to
loans, net
of unearned income, at
period-end 1.30% 1.33%
Nonperforming and past due loans
to total
loans, net of unearned
income, at period-end 0.12% 0.11%
Nonperforming assets and past due
loans
to total assets, at period-
end 0.09% 0.09%
Annualized net recoveries
(charge-offs) to average
loans, net of unearned
income 0.11% 0.00%
NONINTEREST INCOME AND EXPENSE
BREAKDOWN:
Noninterest income:
Fees charged for deposit
services $3,994 $3,570 11.9%
Gains on sales of mortgage
loans,
net of costs 2,955 2,098 40.8%
Net income on other real
estate owned 22 110 (80.0%)
Gain on sale of investment
securities 28 - 0.0%
Gain (loss) on sale of other
assets, net (10) 757 (101.3%)
Financial Services sales 606 300 102.0%
Other noninterest income 1,368 1,110 23.2%
8,963 7,945 12.8%
Noninterest expenses:
Salaries and payroll taxes 14,350 13,146 9.2%
Employee benefits 2,101 1,638 28.3%
Occupancy, net 3,818 3,340 14.3%
Equipment 1,958 1,852 5.7%
Data processing 1,955 1,656 18.1%
Marketing 1,038 887 17.0%
Other noninterest expenses 4,750 4,647 2.2%
29,970 27,166 10.3%
AVERAGE BALANCES:
Federal funds sold and
interest-bearing deposits (c) $25,158 $21,268 18.3%
Investment securities and
securities
available-for-sale 144,445 174,036 (17.0%)
Loans, net of unearned income 747,153 649,631 15.0%
Loans originated for sale (c) 15,707 9,795 60.4%
Total earning assets 932,463 854,730 9.1%
Total assets 977,201 907,465 7.7%
Interest-bearing deposits:
NOW accounts 89,366 75,017 19.1%
Savings / money market
accounts 199,352 173,876 14.7%
Time deposits 280,638 278,743 0.7%
Noninterest-bearing deposits 175,906 149,546 17.6%
Total deposits 745,262 677,182 10.1%
Short-term borrowings (c) 121,158 126,293 (4.1%)
Long-term borrowings 20,000 20,000 0.0%
Total interest-bearing
liabilities 710,514 673,929 5.4%
Stockholders' equity 81,377 73,622 10.5%
YIELD ANALYSIS:
Federal funds sold and
interest-bearing deposits 1.11% 1.47%
Investment securities and
securities
available-for-sale (FTE) 4.41% 4.99%
Loans, net of unearned income
(FTE) 5.94% 6.65%
Total yield on earning assets
(FTE) 5.57% 6.19%
Interest-bearing deposits
NOW accounts 0.12% 0.23%
Savings and money market
accounts 0.54% 1.26%
Time deposits 2.72% 3.65%
Short-term borrowings 0.71% 1.47%
Long-term borrowings 5.34% 5.34%
Total cost of interest-bearing
liabilities 1.51% 2.30%
(a) Core operating performance reflects GAAP-based performance presented
on a fully tax-equivalent basis, exclusive of non-recurring items.
For the periods presented, non-recurring items include the gain of
$720,000 on the sale of the administrative building in the fourth
quarter of 2002, net of the tax effect of $284,000.
(b) Deposits plus customer-related short-term borrowings in the form of
commercial paper and repurchase agreements.
(c) Variances reflect significant fluctuations in account balances
due to the nature of the accounts.
Certain reclassifications of information previously reported
have been made to conform with current presentation.
As of and Three Months
Ended
December 31,
2003 2002 % Change
(unaudited)
SUMMARY OF OPERATING
RESULTS:
GAAP-based:
Interest income $13,151 $13,288 (1.0%)
Interest expense 2,507 3,490 (28.2%)
Net interest income 10,644 9,798 8.6%
Provision for credit losses 120 35 242.9%
Noninterest income 1,848 2,979 (38.0%)
Noninterest expense 7,587 7,250 4.6%
Income before taxes 4,785 5,492 (12.9%)
Income tax provision 1,652 2,015 (18.0%)
Net income 3,133 3,477 (9.9%)
Based on core operating performance
(a):
Tax equivalent interest income $13,339 $13,364 (0.2%)
Interest expense 2,507 3,490 (28.2%)
Tax equivalent net interest
income 10,832 9,874 9.7%
Tax equivalent adjustment 188 76 147.4%
Net interest income 10,644 9,798 8.6%
Provision for credit losses 120 35 242.9%
Noninterest income 1,848 2,259 (18.2%)
Noninterest expense 7,587 7,250 4.6%
Income before taxes 4,785 4,772 0.3%
Income tax provision 1,652 1,731 (4.6%)
Net income 3,133 3,041 3.0%
PER SHARE DATA:
Net income:
GAAP-based:
Basic $0.44 $0.49 (10.2%)
Diluted $0.42 $0.48 (12.5%)
Based on core operating
performance (a):
Basic $0.44 $0.43 2.1%
Diluted $0.42 $0.42 1.2%
Average number of shares
outstanding:
Basic 7,164,091 7,102,582 0.9%
Diluted 7,413,256 7,284,434 1.8%
Book value, at period end na na na
Tangible book value, at period
end na na na
Cash dividends declared $0.150 $0.125 20.0%
PERIOD END DATA:
Loans, net of unearned income
Investment securities and
securities
available-for-sale
Assets
Noninterest-bearing deposits
Interest-bearing deposits
Total deposits
Customer funding sources (b)
Stockholders' equity
PERFORMANCE RATIOS:
GAAP-based:
Return on average assets 1.23% 1.43%
Return on average stockholders'
equity 14.55% 17.61%
Net interest margin 4.36% 4.28%
Efficiency ratio 60.73% 56.74%
Based on core operating performance
(a):
Return on average assets 1.23% 1.25%
Return on average stockholders'
equity 14.55% 15.40%
Net interest margin (FTE) 4.43% 4.31%
Efficiency ratio (FTE) 59.83% 59.75%
CAPITAL RATIOS:
Period-end capital to risk-
weighted assets:
Tier 1
Total
Period-end tier 1 leverage ratio
ASSET QUALITY:
Net recoveries (charge-offs) $148 $(36) 511.1%
Nonperforming assets:
Nonaccrual loans
Loans 90+ days past due and
accruing
Other real estate owned
Total nonperforming
assets and past due
loans
Allowance for credit losses to
loans, net
of unearned income, at
period-end
Nonperforming and past due loans
to total
loans, net of unearned
income, at period-end
Nonperforming assets and past due
loans
to total assets, at period-
end
Annualized net recoveries
(charge-offs) to average
loans, net of unearned
income 0.07% (0.02%)
NONINTEREST INCOME AND EXPENSE
BREAKDOWN:
Noninterest income:
Fees charged for deposit
services $1,006 $953 5.6%
Gains on sales of mortgage
loans,
net of costs 322 890 (63.8%)
Net income on other real
estate owned 2 12 (83.3%)
Gain on sale of investment
securities - - 0.0%
Gain (loss) on sale of other
assets, net (3) 708 (100.4%)
Financial Services sales 150 90 66.7%
Other noninterest income 371 326 13.8%
1,848 2,979 (38.0%)
Noninterest expenses:
Salaries and payroll taxes 3,583 3,532 1.4%
Employee benefits 718 479 49.9%
Occupancy, net 1,000 858 16.6%
Equipment 514 454 13.2%
Data processing 498 493 1.0%
Marketing 199 197 1.0%
Other noninterest expenses 1,075 1,237 (13.1%)
7,587 7,250 4.6%
AVERAGE BALANCES:
Federal funds sold and
interest-bearing deposits (c) $8,584 $51,423 (83.3%)
Investment securities and
securities
available-for-sale 135,749 169,630 (20.0%)
Loans, net of unearned income 818,038 669,602 22.2%
Loans originated for sale (c) 6,891 18,490 (62.7%)
Total earning assets 969,262 909,145 6.6%
Total assets 1,012,865 964,230 5.0%
Interest-bearing deposits:
NOW accounts 86,806 84,025 3.3%
Savings / money market
accounts 207,351 186,087 11.4%
Time deposits 292,383 290,054 0.8%
Noninterest-bearing deposits 192,030 160,191 19.9%
Total deposits 778,570 720,357 8.1%
Short-term borrowings (c) 124,563 136,391 (8.7%)
Long-term borrowings 20,000 20,000 0.0%
Total interest-bearing
liabilities 731,103 716,557 2.0%
Stockholders' equity 85,420 78,338 9.0%
YIELD ANALYSIS:
Federal funds sold and
interest-bearing deposits 0.88% 1.33%
Investment securities and
securities
available-for-sale (FTE) 3.96% 4.77%
Loans, net of unearned income
(FTE) 5.75% 6.43%
Total yield on earning assets
(FTE) 5.46% 5.83%
Interest-bearing deposits
NOW accounts 0.10% 0.21%
Savings and money market
accounts 0.37% 1.02%
Time deposits 2.46% 3.15%
Short-term borrowings 0.68% 1.15%
Long-term borrowings 5.34% 5.34%
Total cost of interest-bearing
liabilities 1.36% 1.93%
(a) Core operating performance reflects GAAP-based performance presented
on a fully tax-equivalent basis, exclusive of non-recurring items.
For the periods presented, non-recurring items include the gain of
$720,000 on the sale of the administrative building in the fourth
quarter of 2002, net of the tax effect of $284,000.
(b) Deposits plus customer-related short-term borrowings in the form of
commercial paper and repurchase agreements.
(c) Variances reflect significant fluctuations in account balances
due to the nature of the accounts.
Certain reclassifications of information previously reported
have been made to conform with current presentation.
COLUMBIA BANCORP
Consolidated Statements of Condition
(Dollars in Thousands)
December 31, December 31,
2003 2002
(unaudited) (audited)
Assets
Cash and due from banks $35,846 $37,909
Interest-bearing deposits with banks 205 214
Federal funds sold 3,292 101,248
Investment securities 77,344 112,545
Securities available-for-sale 56,583 38,953
Residential mortgage loans originated
for sale 6,046 10,515
Loan receivables:
Commercial 255,253 198,223
Real estate development and
construction 272,107 187,063
Real estate mortgage:
Residential 16,349 13,779
Commercial 121,336 122,458
Retail, principally second
mortgage loans
and residential equity lines
of credit 169,298 143,359
Other 1,504 388
Total loans 835,847 665,270
Less: unearned income, net of
origination costs (363) (444)
allowance for credit
losses (10,828) (8,839)
Total loans, net 824,656 655,987
Other real estate owned - 178
Property and equipment, net 7,332 6,974
Prepaid expenses and other assets 17,951 17,479
Total assets $1,029,255 $982,002
Liabilities
Deposits:
Noninterest-bearing $206,323 $171,182
Interest-bearing 581,285 559,431
Total deposits 787,608 730,613
Short-term borrowings 128,844 147,903
Long-term borrowings 20,000 20,000
Accrued expenses and other
liabilities 7,354 6,563
Total liabilities 943,806 905,079
Stockholders' equity
Common stock, $.01 par value per
share; authorized
10,000,000 shares; outstanding
7,170,882
and 7,109,607 shares,
respectively 72 71
Additional paid-in capital 47,886 47,439
Retained earnings 37,561 29,408
Accumulated other comprehensive
income (loss) (70) 5
Total stockholders' equity 85,449 76,923
Total liabilities and
stockholders' equity $1,029,255 $982,002
Certain reclassifications of information previously reported have been
made to conform with current presentation.
COLUMBIA BANCORP
Consolidated Statements of Income
(Dollars in Thousands Except Per-Share Data)
Twelve Months Ended Three Months Ended
December 31, December 31,
2003 2002 2003 2002
(unaudited) (audited) (unaudited) (audited)
Interest income:
Loans $44,962 $43,649 $11,841 $11,097
Investment securities 6,161 8,605 1,292 2,019
Federal funds sold and
interest-bearing deposits
with banks 280 312 18 172
Total interest income 51,403 52,566 13,151 13,288
Interest expense:
Deposits 8,814 12,549 2,024 2,825
Borrowings 1,922 2,930 483 665
Total interest expense 10,736 15,479 2,507 3,490
Net interest income 40,667 37,087 10,644 9,798
Provision for credit losses 1,170 835 120 35
Net interest income
after provision
for credit losses 39,497 36,252 10,524 9,763
Noninterest income:
Fees charged for deposit
services 3,994 3,570 1,006 953
Gains on sales of mortgage
loans, net of costs 2,955 2,098 322 890
Net income on other real
estate owned 22 110 2 12
Gain on sale of investment
securities 28 - - -
Financial Services sales 606 300 150 90
Other 1,358 1,867 368 1,034
Total noninterest
income 8,963 7,945 1,848 2,979
Noninterest expense:
Salaries and employee
benefits 16,451 14,784 4,301 4,011
Occupancy, net 3,818 3,340 1,000 858
Equipment 1,958 1,852 514 454
Data processing 1,955 1,656 498 493
Marketing 1,038 887 199 197
Cash management services 579 639 140 175
Professional fees 663 242 95 88
Deposit insurance 196 179 49 46
Other 3,312 3,587 791 928
Total noninterest
expense 29,970 27,166 7,587 7,250
Income before income
taxes 18,490 17,031 4,785 5,492
Income tax provision 6,586 6,160 1,652 2,015
Net income 11,904 10,871 3,133 3,477
Per common share data:
Net income: Basic $1.67 $1.53 $0.44 $0.49
Diluted 1.62 1.50 0.42 0.48
Cash dividends declared $0.525 $0.455 $0.15 $0.125
Certain reclassifications of information previously reported have been
made to conform with current presentation.
COLUMBIA BANCORP
Reconciliation of GAAP-based Operating Performance Measures
and Core Operating Performance Measures
(Dollars in Thousands Except Per-Share Data)
Three Months
Twelve Months Ended Ended
December 31, December 31,
2003 2002 2003 2002
(unaudited) (unaudited)
GAAP-based Operating Performance
Measures:
Net interest income $40,667 $37,087 $10,644 $9,798
Provision for credit losses 1,170 835 120 35
Noninterest income 8,963 7,945 1,848 2,979
Noninterest expense 29,970 27,166 7,587 7,250
Income before taxes 18,490 17,031 4,785 5,492
Income tax provision 6,586 6,160 1,652 2,015
Net income 11,904 10,871 3,133 3,477
Return on average assets 1.22% 1.15% 1.23% 1.25%
Return on average equity 14.63% 14.17% 14.55% 15.40%
Net interest margin 4.36% 4.34% 4.36% 4.28%
Efficiency ratio 60.39% 60.33% 60.73% 56.74%
Net income per share - diluted $1.62 $1.50 $0.42 $0.48
Non-GAAP adjustments
1. Tax equivalent adjustment -
net interest income $539 $301 $188 $76
2. Gain on sale of office building $- $720 $- $720
Income tax provision - 284 - 284
Net income $- $436 $- $436
Core Operating Performance Measures
Net interest income - tax
equivalent $41,206 $37,388 $10,832 $9,874
Tax equivalent adjustment (539) (301) (188) (76)
Net interest income 40,667 37,087 10,644 9,798
Provision for credit losses 1,170 835 120 35
Noninterest income 8,963 7,225 1,848 2,259
Noninterest expense 29,970 27,166 7,587 7,250
Income before taxes 18,490 16,311 4,785 4,772
Income tax provision 6,586 5,876 1,652 1,731
Net income 11,904 10,435 3,133 3,041
Return on average assets 1.22% 1.15% 1.23% 1.25%
Return on average equity 14.63% 14.17% 14.55% 15.40%
Net interest margin (FTE) 4.42% 4.37% 4.43% 4.31%
Efficiency ratio (FTE) 59.74% 60.89% 59.83% 59.75%
Net income per share - diluted $1.62 $1.44 $0.42 $0.42
COLUMBIA BANCORP
2003 Quarterly Highlights
(Dollars in Thousands, Except Per-Share Data)
4Q03 3Q03 2Q03 1Q03
(unaudited)
SUMMARY OF OPERATING RESULTS:
GAAP-based:
Interest income $13,151 $13,051 $12,828 $12,373
Interest expense 2,507 2,559 2,758 2,912
Net interest income 10,644 10,492 10,070 9,461
Provision for credit
losses 120 - 745 305
Noninterest income 1,848 2,737 2,444 1,934
Noninterest expense 7,587 7,849 7,335 7,199
Income before taxes 4,785 5,380 4,434 3,891
Income tax provision 1,652 1,937 1,597 1,400
Net income 3,133 3,443 2,837 2,491
Based on core operating
performance (a):
Tax-equivalent interest
income $13,339 $13,169 $12,941 $12,493
Interest expense 2,507 2,559 2,758 2,912
Tax-equivalent net
interest income 10,832 10,610 10,183 9,581
Tax-equivalent adjustment 188 118 113 120
Net interest income 10,644 10,492 10,070 9,461
Provision for credit
losses 120 - 745 305
Noninterest income 1,848 2,737 2,444 1,934
Noninterest expense 7,587 7,849 7,335 7,199
Income before taxes 4,785 5,380 4,434 3,891
Income tax provision 1,652 1,937 1,597 1,400
Net income 3,133 3,443 2,837 2,491
PER SHARE DATA:
Net income:
GAAP-based:
Basic $0.44 $0.48 $0.40 $0.35
Diluted $0.42 $0.47 $0.39 $0.34
Based on core operating
performance (a):
Basic $0.44 $0.48 $0.40 $0.35
Diluted $0.42 $0.47 $0.39 $0.34
Average number of shares
outstanding:
Basic 7,164,091 7,137,668 7,117,805 7,115,612
Diluted 7,413,256 7,387,088 7,346,462 7,290,541
Book value, at period end $11.92 $11.65 $11.31 $11.02
Tangible book value, at
period end 11.92 11.65 11.31 11.02
Cash dividends declared 0.150 0.125 0.125 0.125
PERIOD END DATA:
Loans, net of unearned
income $835,484 $797,108 $750,509 $696,322
Investment securities and
securities
available-for-sale 133,927 142,048 140,552 145,714
Assets 1,029,255 1,013,492 1,060,141 993,570
Noninterest-bearing
deposits 206,323 190,576 197,490 182,421
Interest-bearing deposits 581,285 584,401 586,507 565,106
Total deposits 787,608 774,977 783,997 747,527
Customer funding sources
(a) 890,852 902,188 953,987 890,197
Stockholders' equity 85,449 83,132 80,538 78,422
PERFORMANCE RATIOS:
GAAP-based:
Return on average assets 1.23% 1.36% 1.18% 1.09%
Return on average
stockholders' equity 14.55% 16.56% 14.26% 12.92%
Net interest margin 4.36% 4.34% 4.40% 4.35%
Efficiency ratio 60.73% 59.33% 58.61% 63.18%
Based on core operating
performance (a):
Return on average assets 1.23% 1.36% 1.18% 1.09%
Return on average
stockholders' equity 14.55% 16.56% 14.26% 12.92%
Net interest margin (FTE) 4.43% 4.39% 4.45% 4.40%
Efficiency ratio (FTE) 59.83% 58.81% 58.10% 62.52%
CAPITAL RATIOS:
Period-end capital to
risk-weighted assets:
Tier 1 9.28% 9.31% 9.20% 9.62%
Total 10.45% 10.49% 10.33% 10.73%
Period-end tier 1 leverage
ratio 8.43% 8.30% 8.34% 8.49%
ASSET QUALITY:
Net recoveries (charge-
offs) $148 $695 $21 $(45)
Nonperforming assets:
Nonaccrual loans 892 974 720 806
Restructured loans - - 643 -
Loans 90+ days past
due and accruing 72 127 112 164
Other real estate
owned - - - -
Total
nonperforming
assets and past
due loans 964 1,101 1,475 970
Allowance for credit
losses to loans, net
of unearned income,
at period-end 1.30% 1.32% 1.31% 1.31%
Nonperforming and past due
loans to total loans, net
of unearned income, at
period-end 0.12% 0.14% 0.20% 0.14%
Nonperforming assets and
past due loans
to total assets, at
period-end 0.09% 0.11% 0.14% 0.10%
Annualized net recoveries
(charge-offs) to average
loans, net of
unearned income 0.07% 0.36% 0.01% (0.03%)
NONINTEREST INCOME AND EXPENSE
BREAKDOWN:
Noninterest income:
Fees charged for
deposit services $1,006 $1,056 $994 $938
Gains on sales of
mortgage loans, net
of costs 322 1,168 834 630
Net income (loss) on
other real estate
owned 2 (21) 30 11
Gain on sale of
investment securities - 28 - -
Gain (loss) on sale of
other assets, net (3) (6) - (1)
Financial Services
sales 150 208 125 123
Other noninterest
income 371 304 461 233
Total
noninterest
income 1,848 2,737 2,444 1,934
Noninterest expenses:
Salaries and payroll
taxes 3,583 3,717 3,610 3,440
Employee benefits 718 598 255 530
Occupancy, net 1,000 974 920 924
Equipment 514 500 495 449
Data processing 498 563 484 410
Marketing 199 272 335 232
Other noninterest
expenses 1,075 1,225 1,236 1,214
Total
noninterest
expenses 7,587 7,849 7,335 7,199
AVERAGE BALANCES:
Federal funds sold and
interest bearing deposits $8,584 $23,355 $25,995 $43,101
Investment securities and
securities
available-for-sale 135,749 139,201 151,508 151,552
Loans, net of unearned
income 824,929 796,685 721,274 688,230
Total earning assets 969,262 959,241 918,722 882,883
Total assets 1,012,865 1,003,752 965,980 926,466
Interest-bearing deposits:
NOW accounts 86,806 92,491 93,717 84,388
Savings and money
market accounts 207,351 205,166 198,470 186,126
Time deposits 292,383 280,345 280,242 282,201
Noninterest-bearing
deposits 192,030 182,221 168,554 160,133
Total deposits 778,570 760,223 740,983 712,848
Short-term borrowings (b) 124,563 137,021 115,939 106,739
Long-term borrowings 20,000 20,000 20,000 20,000
Total interest-bearing
liabilities 731,103 735,023 708,368 679,454
Stockholders' equity 85,420 82,502 79,775 78,182
YIELD ANALYSIS:
Federal funds sold and
interest bearing
deposits 0.88% 0.95% 1.18% 1.20%
Investment securities and
securities
available-for-sale 3.96% 4.34% 4.59% 4.69%
Loans, net of unearned
income (FTE) 5.75% 5.77% 6.02% 6.25%
Total yield on earning
assets (FTE) 5.46% 5.45% 5.65% 5.74%
Interest-bearing deposits
NOW accounts 0.10% 0.10% 0.10% 0.19%
Savings and money
market accounts 0.37% 0.37% 0.64% 0.82%
Time deposits 2.46% 2.62% 2.78% 2.90%
Short-term borrowings 0.68% 0.57% 0.69% 0.81%
Long-term borrowings 5.34% 5.71% 5.50% 5.34%
Total cost of interest-
bearing liabilities 1.36% 1.38% 1.56% 1.74%
(a) Core operating performance reflects GAAP-based performance
presented on a fully tax-equivalent basis, exclusive of
non-recurring items. For the periods presented,
non-recurring items include the gain of $720,000 on the
sale of the administrative building in the fourth quarter of
2002, net of the tax effect of $284,000.
(b) Deposits plus customer-related short-term borrowings in the
form of commercial paper and repurchase agreements.
(c) Variances reflect significant fluctuations in account balances
due to the nature of the accounts.
Certain reclassifications of information previously reported
have been made to conform with current presentation.
COLUMBIA BANCORP
2002 Quarterly Highlights
(Dollars in Thousands, Except Per Share Data)
4Q02 3Q02 2Q02 1Q02
(unaudited)
SUMMARY OF OPERATING RESULTS:
GAAP-based:
Interest income $13,288 $13,401 $13,220 $12,657
Interest expense 3,490 3,961 3,967 4,061
Net interest income 9,798 9,440 9,253 8,596
Provision for credit
losses 35 42 681 77
Noninterest income 2,979 1,700 1,640 1,626
Noninterest expense 7,250 6,716 6,591 6,609
Income before taxes 5,492 4,382 3,621 3,536
Income tax provision 2,015 1,643 1,304 1,198
Net income 3,477 2,739 2,317 2,338
Based on core operating
performance (a):
Tax-equivalent interest
income $13,364 $13,490 $13,293 $12,720
Interest expense 3,490 3,961 3,967 4,061
Tax-equivalent net
interest income 9,874 9,529 9,326 8,659
Tax-equivalent adjustment 76 89 73 63
Net interest income 9,798 9,440 9,253 8,596
Provision for credit
losses 35 42 681 77
Noninterest income 2,259 1,700 1,640 1,626
Noninterest expense 7,250 6,716 6,591 6,609
Income before taxes 4,772 4,382 3,621 3,536
Income tax provision 1,731 1,643 1,304 1,198
Net income 3,041 2,739 2,317 2,338
PER SHARE DATA:
Net income:
GAAP-based:
Basic $0.49 $0.39 $0.33 $0.33
Diluted 0.48 0.38 0.32 0.32
Based on core operating
performance (a):
Basic $0.43 $0.39 $0.33 $0.33
Diluted 0.42 0.38 0.32 0.32
Average number of shares
outstanding:
Basic 7,102,582 7,099,666 7,097,964 7,106,850
Diluted 7,284,434 7,271,809 7,274,443 7,229,773
Book value, at period end $10.82 $10.48 $10.19 $9.95
Tangible book value, at
period end 10.82 10.48 10.19 9.95
Cash dividends declared 0.125 0.11 0.11 0.11
PERIOD END DATA:
Loans, net of unearned
income $664,826 $664,688 $666,504 $616,528
Investment securities and
securities
available-for-sale 151,498 178,112 178,040 181,195
Assets 982,002 990,902 926,166 864,276
Noninterest-bearing
deposits 171,182 169,726 168,737 150,975
Interest-bearing deposits 559,431 557,675 532,159 501,508
Total deposits 730,613 727,401 700,896 652,483
Customer funding sources
(a) 878,516 890,807 826,823 759,379
Stockholders' equity 76,923 74,385 72,345 70,606
PERFORMANCE RATIOS:
GAAP-based:
Return on average assets 1.43% 1.17% 1.06% 1.13%
Return on average
stockholders' equity 17.61% 14.62% 12.95% 13.48%
Net interest margin 4.28% 4.29% 4.49% 4.40%
Efficiency ratio 56.74% 60.29% 60.51% 64.65%
Based on core operating
performance (a):
Return on average assets 1.25% 1.17% 1.06% 1.13%
Return on average
stockholders' equity 15.40% 14.62% 12.95% 13.48%
Net interest margin (FTE) 4.31% 4.34% 4.53% 4.43%
Efficiency ratio (FTE) 59.75% 59.81% 60.10% 64.26%
CAPITAL RATIOS:
Period-end capital to
risk-weighted assets:
Tier 1 9.95% 9.50% 9.43% 9.93%
Total 11.10% 10.63% 10.59% 11.08%
Period-end tier 1 leverage
ratio 8.48% 8.00% 8.24% 8.41%
ASSET QUALITY:
Net (charge-offs)
recoveries $(36) $(61) $(43) $119
Nonperforming assets:
Nonaccrual loans 563 710 1,126 1,501
Loans 90+ days past
due and accruing 168 219 242 323
Other real estate
owned 178 443 619 1,182
Total
nonperforming
assets and past
due loans 909 1,372 1,987 3,006
Allowance for credit
losses to loans, net
of unearned income,
at period-end 1.33% 1.33% 1.33% 1.33%
Nonperforming and past due
loans to total loans,
net of unearned
income, at period-end 0.11% 0.14% 0.21% 0.30%
Nonperforming assets and
past due loans
to total assets, at
period-end 0.09% 0.14% 0.21% 0.35%
Annualized net (charge-
offs) recoveries to
average
loans, net of
unearned income (0.02%) (0.04%) (0.03%) 0.08%
NONINTEREST INCOME AND EXPENSE
BREAKDOWN:
Noninterest income:
Fees charged for
deposit services $953 $886 $870 $861
Gains on sales of
mortgage loans, net
of costs 890 410 336 462
Gain (loss) on sale of
other assets, net 708 53 - (4)
Net income on other
real estate owned 12 17 94 (13)
Financial Services
sales 90 89 82 39
Other noninterest
income 326 245 258 281
Total
noninterest
income 2,979 1,700 1,640 1,626
Noninterest expenses:
Salaries and payroll
taxes 3,532 3,333 3,208 3,073
Employee benefits 479 162 518 479
Occupancy, net 858 844 812 826
Equipment 454 439 488 471
Data processing 493 399 385 379
Marketing 197 202 273 215
Other noninterest
expenses 1,237 1,337 907 1,166
Total
noninterest
expenses 7,250 6,716 6,591 6,609
AVERAGE BALANCES:
Federal funds sold and
interest bearing deposits $51,423 $21,830 $6,046 $5,258
Investment securities and
securities
available-for-sale 169,630 176,965 178,178 171,778
Loans, net of unearned
income 688,092 673,294 641,943 615,691
Total earning assets 909,145 872,089 826,167 792,727
Total assets 964,230 926,432 877,436 842,674
Interest-bearing deposits:
NOW accounts 84,025 75,194 71,863 68,818
Savings and money
market accounts 186,087 178,603 167,238 163,272
Time deposits 290,054 291,825 275,511 257,076
Noninterest-bearing
deposits 160,191 154,653 146,355 136,671
Total deposits 720,357 700,275 660,967 625,837
Short-term borrowings (b) 136,391 126,933 120,366 121,310
Long-term borrowings 20,000 20,000 20,000 20,000
Total interest-bearing
liabilities 716,557 692,555 654,978 630,476
Stockholders' equity 78,338 74,335 71,786 70,315
YIELD ANALYSIS:
Federal funds sold and
interest bearing
deposits 1.33% 1.69% 1.79% 1.70%
Investment securities and
securities
available-for-sale 4.77% 4.86% 5.10% 5.21%
Loans, net of unearned
income (FTE) 6.43% 6.62% 6.87% 6.91%
Total yield on earning
assets (FTE) 5.83% 6.14% 6.45% 6.51%
Interest-bearing deposits
NOW accounts 0.21% 0.24% 0.24% 0.24%
Savings and money
market accounts 1.02% 1.30% 1.38% 1.36%
Time deposits 3.15% 3.53% 3.76% 4.27%
Short-term borrowings 1.15% 1.46% 1.67% 1.66%
Long-term borrowings 5.34% 5.34% 5.33% 5.35%
Total cost of interest-
bearing liabilities 1.93% 2.27% 2.43% 2.61%
(a) Core operating performance reflects GAAP-based performance
presented on a fully tax-equivalent basis, exclusive of
non-recurring items. For the periods presented,
non-recurring items include the gain of $720,000 on the
sale of the administrative building in the fourth quarter of
2002, net of the tax effect of $284,000.
(b) Deposits plus customer-related short-term borrowings in the
form of commercial paper and repurchase agreements.
(c) Variances reflect significant fluctuations in account balances
due to the nature of the accounts.
Certain reclassifications of information previously reported
have been made to conform with current presentation.
SOURCE Columbia Bancorp
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Related links:
http://www.columbank.com
Company News On-Call:
http://www.prnewswire.com/comp/127921.html
CONTACT:
John A. Scaldara, Jr., CFO of Columbia
Bancorp, +1-410-423-8012
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