COLUMBIA, Md., Jan. 23 /PRNewswire/ -- Columbia Bancorp (Nasdaq: CBMD),
parent company of The Columbia Bank (the "Bank"), announced net core earnings
for the year ended December 31, 2000 of $6.80 million, representing an
increase of 15.5% as compared to the $5.89 million recorded for 1999. Net
core earnings per diluted share for the years ended December 31, 2000 and 1999
were $.94 and $.81, respectively. Reported net earnings for the year ended
2000 were $5.22 million and reflected a pre-tax one-time merger-related charge
of $2.27 million recorded in connection with the completion of the merger of
Suburban Bancshares, Inc. into Columbia Bancorp effective March 8, 2000. All
results have been restated to reflect the merger, which was accounted for as a
pooling of interests.
Net core earnings for the fourth quarter of 2000 were $1.28 million, or
$.18 per diluted share, compared to $1.31 million, or $.18 per diluted share,
for 1999. Earnings for the fourth quarter 2000 were reduced by a $2.0 million
provision for credit losses. The provision was increased to accommodate a
$1.5 million charge to the allowance for credit losses in recognition of a
loss associated with a commercial banking relationship. The relationship,
which totals $2.9 million (subsequent to the write-down) is secured by
residential and commercial properties and other business assets. In addition,
the Bank has the personal guarantees of the principals involved. The
financial difficulty encountered by the borrower resulted from inadequate
financial controls over an expanding manufacturing business. The loss
represents management's current estimate of the realizable value of the Bank's
collateral and reflects a significant decline in inventory and real property
values since originally appraised. Exclusive of this charge, net core
earnings for the quarter would have been $2.20 million, or $.31 per diluted
share.
Operating income, exclusive of income on real estate owned and the
allowance for credit losses, for the fourth quarter 2000 increased 14.9% as
compared to the same period in 1999, and reflected a 17.5% increase in net
interest income. The increase in net interest income resulted from both
growth in the loan portfolio and an improved net interest margin. Average
loans and lease receivables outstanding during the fourth quarter 2000
increased 16.7% over the same period in 1999 and the net interest margin
improved from 4.83% during the fourth quarter 1999 to 5.01% during the fourth
quarter 2000.
Operating expenses for the fourth quarter 2000, exclusive of merger-
related charges, increased 0.7% compared to the same period in 1999, growing
more slowly than operating income as the Company continued to effectively
leverage existing corporate resources. Relative to 1999, operating expenses
for the fourth quarter 2000 include cost savings realized after the merger
with Suburban Bancshares.
Total assets at December 31, 2000 reached a record high of $812.7 million.
Loans and lease receivables, net of unearned income, totaled $539.1 million at
December 31, 2000, reflecting growth on a year-to-year basis of 20.0%. Growth
in the loan portfolio was supported by growth in all major product lines.
Deposits totaled $630.5 million at December 31, 2000, increasing 14.4% on a
year-to-year basis.
John M. Bond, Jr., President and Chief Executive Officer, commented that
the Company is pleased with the continued strength in its core financial
performance, exclusive of nonrecurring charges. Specifically, Mr. Bond, Jr.
noted solid growth in loans and deposits and continuing leverage of corporate
resources. Mr. Bond, Jr. also noted that although disappointed with the need
to recognize a substantial loss on one lending relationship, he was pleased
with the Company's financial strength as evident in its ability to produce
15.5% growth in core net earnings on a year-to-year basis. He also commented
that the Company remains cautious about economic conditions and has maintained
the allowance for credit losses at 1.3% of total loans.
Columbia Bancorp, headquartered in Columbia, Maryland, is a bank holding
company and parent company of The Columbia Bank, a commercial bank. The
Columbia Bank provides a full range of financial services to consumers and
businesses through twenty-three branch offices located in Baltimore, Howard,
Montgomery, and Prince George's Counties and Baltimore City. Columbia
Bancorp's Common Stock is traded on the National Market tier of The Nasdaq
Stock Market(SM) under the symbol "CBMD".
This press release may contain forward-looking statements of goals,
intentions and expectations concerning or based upon economic conditions,
interest rates and other matters which are subject to significant
uncertainties. Because of these uncertainties and the assumptions on which
the statements in this press release are based, actual future results may
differ materially from those expressed herein.
COLUMBIA BANCORP
Financial Highlights
(Dollars in Thousands Except Per-Share Data)
As of and Twelve Months Ended
December 31,
2000 1999 % Change
SUMMARY OF OPERATING RESULTS:
Net interest income $34,741 29,363 18.3%
Provision for credit losses 3,423 1,149 197.9%
Noninterest income 3,960 4,255 -6.9%
Noninterest expense before
merger-related expenses 24,939 23,478 6.2%
Income tax provision 2,848 3,106 -8.3%
Net income 5,221 5,885 -11.3%
Net income before merger-related
expenses 6,796 5,885 15.5%
PER SHARE DATA:
Net income (a):
Basic $0.73 0.82 -11.0%
Diluted 0.73 0.81 -9.9%
Net income before merger-related
expenses:
Basic 0.95 0.82 15.9%
Diluted 0.94 0.81 16.0%
Average number of shares
outstanding:
Basic 7,154,996 7,157,796 0.0%
Diluted 7,198,234 7,224,394 -0.4%
Book value, at period end $9.02 8.57 5.3%
Tangible book value, at period end 9.02 8.57 5.3%
Cash dividends declared (b) $0.37 0.21 76.2%
PERIOD END DATA:
Assets $812,650 688,030 18.1%
Deposits 630,484 551,360 14.4%
Loans and leases, net of
unearned income 539,051 449,225 20.0%
Investment securities and securities
available-for-sale 199,011 150,904 31.9%
Stockholders' equity 64,520 61,286 5.3%
PERFORMANCE RATIOS:
Return on average assets 0.71% 0.88%
Return on average assets before
merger-related expenses 0.93% 0.88%
Return on average stockholders'
equity 8.36% 9.71%
Return on average stockholders'
equity before merger-related
expenses 10.89% 9.71%
Net interest margin 5.13% 4.79%
Efficiency ratio before
merger-related expenses 64.44% 69.84%
CAPITAL RATIOS:
Period-end capital to
risk-weighted assets:
Tier 1 10.48% 12.36%
Total 11.62% 13.56%
Period-end tier 1 leverage ratio 8.37% 9.03%
ASSET QUALITY:
Net charge-offs $2,468 568 334.5%
Nonperforming assets:
Nonaccrual loans 3,917 2,284 71.5%
Restructured loans - - 0.0%
Loans 90+ day past due and accruing 218 5 4260.0%
Other real estate owned 2,996 4,035 -25.7%
Total nonperforming assets 7,131 6,324 12.8%
Allowance for credit losses to
loans, net of unearned income,
at period-end 1.30% 1.35%
Nonperforming and past-due loans
to total loans, net of unearned
income, at period-end 0.77% 0.51%
Nonperforming assets and past-due
loans to total assets, at period-end 0.88% 0.92%
Annualized net charge-offs to average
loans, net of unearned income 0.50% 0.13%
As of and Twelve Months Ended
December 31,
2000 1999 % Change
AVERAGE BALANCES:
Federal funds sold $14,574 31,970 -54.4%(c)
Investment securities and securities
available-for-sale 164,261 147,413 11.4%
Loans and leases, net of unearned
income 496,729 429,067 15.8%
Loans originated for sale 1,672 4,673 -64.2%(c)
Total earning assets 677,236 613,123 10.5%
Total assets 733,279 665,199 10.2%
Interest-bearing deposits
NOW accounts 57,751 53,686 7.6%
Savings and money market accounts 172,601 175,128 -1.4%
Time deposits 232,941 199,700 16.6%
Total deposits 583,266 534,183 9.2%
Short-term borrowings 60,490 43,476 39.1%(c)
Long-term borrowings 20,000 20,000 0.0%
Total interest-bearing liabilities 543,783 491,990 10.5%
Stockholders' equity 62,421 60,636 2.9%
YIELD ANALYSIS:
Federal funds sold 6.27% 4.99%
Investment securities and securities
available-for-sale 6.41% 5.90%
Loans and leases, net of unearned
income 9.53% 8.88%
Total yield on earning assets 8.70% 7.96%
Interest-bearing deposits
NOW accounts 1.08% 1.29%
Savings and money market accounts 3.54% 3.36%
Time deposits 5.56% 4.94%
Short-term borrowings 5.69% 4.40%
Long-term borrowings 5.30% 5.34%
Total cost of interest-bearing
liabilities 4.45% 3.95%
(a) Pro-forma net income per share, basic and diluted, for the twelve
months and three months ended December 31, 1999 represents
historical net income divided by the number of shares of Columbia
Bancorp common stock which would have been issued and outstanding
had the merger taken place on December 31, 1999, including the
effects of dilutive securities in the case of diluted pro-forma
income per common share, adjusted based on the conversion factor of
.2338.
(b) Pro-forma cash dividends per share declared during the twelve months
and three months ended December 31, 1999 is calculated by dividing
the historical amount of dividends declared by Columbia Bancorp (no
dividends were declared by Suburban Bancshares during the periods
presented) by the sum of (1) the total number of shares of Columbia
Bancorp common stock outstanding at such date and (2) the total
number of shares of Suburban Bancshares common stock outstanding at
such date multiplied by the conversion factor of .2338.
(c) Variances reflect significant fluctuations in account balances due to
the nature of the accounts.
COLUMBIA BANCORP
Financial Highlights
(Dollars in Thousands Except Per-Share Data)
As of and Three Months Ended
December 31,
2000 1999 % Change
(unaudited)
SUMMARY OF OPERATING RESULTS:
Net interest income $9,031 7,689 17.5%
Provision for credit losses 1,993 490 306.7%
Noninterest income 1,036 968 7.0%
Noninterest expense before
merger-related expenses 6,198 6,152 0.7%
Income tax provision 596 707 -15.7%
Net income 1,320 1,308 0.9%
Net income before
merger-related expenses 1,281 1,308 -2.0%
PER SHARE DATA:
Net income (a):
Basic $0.19 0.18 5.6%
Diluted 0.18 0.18 0.0%
Net income before
merger-related expenses:
Basic 0.18 0.18 0.0%
Diluted 0.18 0.18 0.0%
Average number of shares outstanding:
Basic 7,154,329 7,148,205 0.1%
Diluted 7,201,568 7,203,704 0.0%
Book value, at period end na na na
Tangible book value, at period end na na na
Cash dividends declared (b) $0.10 0.06 66.7%
PERIOD END DATA:
Assets
Deposits
Loans and leases, net of unearned income
Investment securities and securities
available-for-sale
Stockholders' equity
PERFORMANCE RATIOS:
Return on average assets 0.68% 0.75%
Return on average assets before
merger-related expenses 0.66% 0.75%
Return on average stockholders'
equity 8.15% 8.37%
Return on average stockholders'
equity before merger-related
expenses 7.91% 8.37%
Net interest margin 5.01% 4.83%
Efficiency ratio before
merger-related expenses 61.57% 71.06%
CAPITAL RATIOS:
Period-end capital to risk-weighted assets:
Tier 1
Total
Period-end tier 1 leverage ratio
ASSET QUALITY:
Net charge-offs $1,704 292 483.6%
Nonperforming assets:
Nonaccrual loans
Restructured loans
Loans 90+ day past due and accruing
Other real estate owned
Total nonperforming assets
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 charge-offs to average
loans, net of unearned income 1.28% 0.26%
AVERAGE BALANCES:
Federal funds sold $4,776 22,028 -78.3%(c)
Investment securities and securities
available-for-sale 183,542 155,367 18.1%
Loans and leases, net of unearned
income 528,089 452,454 16.7%
Loans originated for sale 1,551 2,790 -44.4%(c)
Total earning assets 717,958 632,639 13.5%
Total assets 776,318 691,008 12.3%
Interest-bearing deposits
NOW accounts 58,314 52,586 10.9%
Savings and money market accounts 167,299 178,570 -6.3%
Time deposits 257,370 204,011 26.2%
Total deposits 606,844 551,192 10.1%
Short-term borrowings 77,412 51,473 50.4%(c)
Long-term borrowings 20,000 20,000 0.0%
Total interest-bearing liabilities 580,395 506,640 14.6%
Stockholders' equity 64,431 62,005 3.9%
YIELD ANALYSIS:
Federal funds sold 6.75% 5.40%
Investment securities and securities
available-for-sale 6.57% 5.98%
Loans and leases, net of unearned income9.70% 8.83%
Total yield on earning assets 8.88% 8.01%
Interest-bearing deposits
NOW accounts 0.91% 1.24%
Savings and money market accounts 3.77% 3.39%
Time deposits 5.99% 4.87%
Short-term borrowings 5.85% 4.76%
Long-term borrowings 5.11% 5.32%
Total cost of interest-bearing
liabilities 4.79% 3.98%
(a) Pro-forma net income per share, basic and diluted, for the twelve
months and three months ended December 31, 1999 represents
historical net income divided by the number of shares of Columbia
Bancorp common stock which would have been issued and outstanding
had the merger taken place on December 31, 1999, including the
effects of dilutive securities in the case of diluted pro-forma
income per common share, adjusted based on the conversion factor of
.2338.
(b) Pro-forma cash dividends per share declared during the twelve months
and three months ended December 31, 1999 is calculated by dividing
the historical amount of dividends declared by Columbia Bancorp (no
dividends were declared by Suburban Bancshares during the periods
presented) by the sum of (1) the total number of shares of Columbia
Bancorp common stock outstanding at such date and (2) the total
number of shares of Suburban Bancshares common stock outstanding at
such date multiplied by the conversion factor of .2338.
(c) Variances reflect significant fluctuations in account balances due to
the nature of the accounts.
COLUMBIA BANCORP
Consolidated Statements of Condition
(Dollars in Thousands)
December 31, December 31,
2000 1999
Assets
Cash and due from banks $31,931 $37,108
Federal funds sold 15,540 22,507
Investment securities 137,674 93,412
Securities available-for-sale 61,337 57,492
Residential mortgage loans originated for sale 1,911 2,707
Loans:
Commercial 172,633 141,561
Real estate development and construction 129,336 100,770
Real estate mortgage:
Residential 18,594 18,892
Commercial 75,325 72,274
Retail, principally second mortgage loans
and residential equity lines of credit 139,967 111,864
Credit card 2,572 2,217
Other 1,035 1,908
Total loans and leases, net of unearned income 539,462 449,486
Less: unearned income, net of origination
costs (411) (261)
allowance for credit losses (7,026) (6,071)
Total loans and leases, net 532,025 443,154
Other real estate owned 2,996 4,035
Property and equipment, net 11,372 10,473
Prepaid expenses and other assets 17,864 17,142
Total assets $812,650 $688,030
Liabilities
Deposits:
Noninterest-bearing $130,155 $120,165
Interest-bearing 500,329 431,195
Total deposits 630,484 551,360
Short-term borrowings 93,184 51,728
Long-term borrowings 20,000 20,000
Accrued expenses and other liabilities 4,462 3,656
Total liabilities 748,130 626,744
Stockholders' equity
Common stock, $.01 par value per share; authorized
10,000,000 shares; outstanding 7,149,968
and 7,150,371 shares, respectively 71 71
Additional paid-in capital 48,378 48,424
Retained earnings 16,512 13,938
Accumulated other comprehensive income (441) (1,147)
Total stockholders' equity 64,520 61,286
Total liabilities and stockholders'
equity $812,650 $688,030
COLUMBIA BANCORP
Consolidated Statements of Income and Comprehensive Income
(Dollars in Thousands Except Per-Share Data)
Twelve Months Ended Three Months Ended
December 31, December 31,
2000 1999 2000 1999
(unaudited)
Interest income:
Loans and leases $47,476 38,479 12,904 10,129
Investment securities 10,527 8,702 3,032 2,341
Federal funds sold 914 1,594 81 300
Total interest income 58,917 48,775 16,017 12,770
Interest expense:
Deposits 19,675 16,429 5,590 4,195
Borrowings 4,501 2,983 1,396 886
Total interest expense 24,176 19,412 6,986 5,081
Net interest income 34,741 29,363 9,031 7,689
Provision for credit losses 3,423 1,149 1,993 490
Net interest income after
provision for credit losses 31,318 28,214 7,038 7,199
Noninterest income:
Fees charged for services 2,352 2,296 602 611
Gains on sales of mortgage
loans, net of costs 399 1,006 129 194
Net income on other real
estate owned 198 (61) 24 (85)
Gains on sale of securities
available-for-sale 0 23 0 0
Other 1,011 991 281 248
Total noninterest income 3,960 4,255 1,036 968
Noninterest expense:
Salaries and employee
benefits 12,703 11,947 3,211 3,081
Occupancy, net 3,320 3,043 772 826
Equipment 2,131 1,652 672 458
Data processing 1,389 1,589 255 400
Marketing 775 648 116 168
Cash management services 495 422 139 118
Professional fees 649 386 160 95
Deposit insurance 170 182 43 47
Merger-related expenses 2,270 0 (40) 0
Other 3,307 3,609 830 959
Total noninterest expense 27,209 23,478 6,158 6,152
Income before income taxes 8,069 8,991 1,916 2,015
Income tax provision 2,848 3,106 596 707
Net income 5,221 5,885 1,320 1,308
Other comprehensive income,
net of tax - unrealized net
gain (loss) on securities
available-for-sale 705 (1,412) 348 (280)
Comprehensive income $5,926 4,473 1,668 1,028
Per common share data:
Net income: Basic $0.73 0.82 0.19 0.18
Diluted 0.73 0.81 0.18 0.18
Cash dividends declared $0.37 0.21 0.10 0.06
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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