COLUMBIA, Md., Jan. 23 /PRNewswire-FirstCall/ --
Columbia Bancorp (Nasdaq: CBMD), parent company of The Columbia Bank (the
"Bank"), announced net core earnings (representing net income exclusive of
merger-related expenses) for the year ended December 31, 2001 of $8.18
million, representing an increase of 20.4% as compared to the $6.80 million
recorded for 2000. Net core earnings per diluted share for the years ended
December 31, 2001 and 2000 were $1.13 and $.94, respectively. Reported
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 2001 were $2.04 million, or
$.28 per diluted share, compared to $1.28 million, or $.18 per diluted share,
for the prior year which included a $1.5 million pretax charge in recognition
of a credit loss associated with a commercial banking relationship.
For the year ended December 31, 2001, return on average stockholders'
equity was 12.11% compared to 10.89% for the year ended December 31, 2000.
Return on average assets was 1.01% for the year 2001 compared to .93% for the
year 2000. For the fourth quarter of 2001, return on average equity was
11.66% compared to 7.91% for the same period in 2000. Return on average
assets for the quarter was .98% in 2001 and .66% in 2000. Returns for the
periods in 2000 are exclusive of merger-related expenses.
Total assets at December 31, 2001 were $849.6 million, representing growth
of 4.6% on a year-to-year basis. Loans and lease receivables, net of unearned
income, totaled a record $602.1 million at December 31, 2001 compared to
$539.1 million at December 31, 2000, representing growth of 11.7%. Deposits
and other customer funding sources grew 6.2%, increasing from $698.2 at
December 31, 2000 to $741.4 at December 31, 2001. Stockholders' equity
climbed 7.5% to $69.4 million at December 31, 2001.
Operating performance during the fourth quarter 2001 continued to be
influenced by the interest rate environment, with net interest income
declining from $9.03 million during the fourth quarter 2000 to $8.24 million
during the fourth quarter 2001. The decline was the result of a decline in
the net interest margin from 5.01% to 4.27%, reflecting the unprecedented
4.75% reduction in short-term rates initiated by the Federal Reserve
throughout 2001. The impact of a declining net interest margin was mitigated
by growth in average earning assets of $55.9 million or 7.8%. A declining
interest rate environment will continue to pressure the Company's net interest
margin. As interest rates stabilize and the Company's certificate of deposit
portfolio, with an average life of nine months, reprices, the net interest
margin will show improvement. While the historically low interest rate
environment has pressured the Company's net interest margin, it contributed to
a 255% increase in mortgage banking revenue from $129,000 during the fourth
quarter of 2000 to $458,000 during the fourth quarter of 2001.
Other contributing factors to the Company's strong financial performance
during the fourth quarter 2001 compared to 2000 included an increase of 51.3%
in fees charged for services from $602,000 to $911,000 and an increase of only
$215,000, or 3.5%, in noninterest expenses, reflecting continued emphasis on
costs containment initiatives.
Columbia Bancorp's asset quality remained strong throughout the fourth
quarter. Annualized net charge-offs to average loans totaled .11% during the
fourth quarter 2001 and .09% for the entire year, versus 1.28% and .50% for
the same periods in 2000, respectively. During the fourth quarter of 2000,
the Company recorded a $1.5 million pretax charge in recognition of a credit
loss associated with a commercial banking relationship. The Company's
nonperforming asset portfolio declined $2.19 million or 29.5% since
December 31, 2000 and represented .62% of total assets at December 31, 2001,
compared to .91% at December 31, 2000. More specifically, loans on nonaccrual
status declined $687,000 and other real estate owned declined $1.81 million.
John M. Bond, Jr., President and CEO, reflected on the Company's
performance during 2001, commenting, "While challenging, 2001 was one of our
best years and confirmed the strength of Columbia Bancorp's core banking
franchise in the Baltimore/Washington corridor. The sluggish economy and
precipitous decline in short-term interest rates placed unusual stress on
Columbia throughout the year. Nevertheless, our performance was strong as we
generated brisk loan growth of 11.7% on a year-to-year basis and a striking
49.7% increase in noninterest income, while carefully containing overhead
costs as noninterest expense increased only 5.0%."
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-two 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 contains 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
Consolidated Statements of Condition
(Dollars in Thousands)
December 31,
2001 2000
Assets
Cash and due from banks $39,653 $31,931
Federal funds sold 6,277 15,540
Investment securities 121,689 137,674
Securities available-for-sale 48,359 61,337
Residential mortgage loans originated
for sale 11,411 1,911
Loan and lease receivables:
Commercial 163,143 170,910
Leases 1,379 1,723
Real estate development and
construction 174,091 129,336
Real estate mortgage:
Residential 15,648 18,594
Commercial 99,235 75,325
Retail, principally second
mortgage loans
and residential equity lines
of credit 146,379 139,967
Credit card 2,389 2,572
Other 463 1,035
Total loans and leases 602,727 539,462
Less: unearned income, net of
origination costs (640) (411)
allowance for credit
losses (8,024) (7,026)
Total loans and leases, net 594,063 532,025
Other real estate owned 1,187 2,996
Property and equipment, net 10,400 11,372
Prepaid expenses and other assets 16,610 17,864
Total assets $849,649 $812,650
Liabilities
Deposits:
Noninterest-bearing $145,844 $130,155
Interest-bearing 492,157 500,329
Total deposits 638,001 630,484
Short-term borrowings 117,352 93,184
Long-term borrowings 20,000 20,000
Accrued expenses and other
liabilities 4,934 4,462
Total liabilities 780,287 748,130
Stockholders' equity
Common stock, $.01 par value per
share; authorized
10,000,000 shares; outstanding:
7,105,238
and 7,149,968 shares,
respectively 71 71
Additional paid-in capital 47,520 48,378
Retained earnings 21,768 16,512
Accumulated other comprehensive
income 3 (441)
Total stockholders' equity 69,362 64,520
Total liabilities and
stockholders' equity $849,649 $812,650
COLUMBIA BANCORP
Consolidated Statements of Income and Comprehensive Income
(Dollars in Thousands Except Per-Share Data)
Twelve Months Ended
December 31,
2001 2000
Interest income:
Loans and leases $47,313 $47,476
Investment securities 9,662 10,527
Federal funds sold 1,086 914
Total interest income 58,061 58,917
Interest expense:
Deposits 20,009 19,675
Borrowings 3,974 4,501
Total interest expense 23,983 24,176
Net interest income 34,078 34,741
Provision for credit losses 1,534 3,423
Net interest income after
provision
for credit losses 32,544 31,318
Noninterest income:
Fees charged for services 3,081 2,352
Gains on sales of mortgage loans,
net of costs 1,126 399
Net income on other real estate
owned 240 198
Other 1,483 1,011
Total noninterest income 5,930 3,960
Noninterest expense:
Salaries and employee benefits 13,706 12,703
Occupancy, net 3,562 3,320
Equipment 2,180 2,131
Data processing 1,286 1,389
Marketing 388 775
Cash management services 636 495
Professional fees 796 649
Deposit insurance 183 170
Merger-related expenses - 2,270
Other 3,455 3,307
Total noninterest expense 26,192 27,209
Income before income taxes 12,282 8,069
Income tax provision 4,100 2,848
Net income 8,182 5,221
Other comprehensive income, net of
tax -
unrealized net gain (loss) on
securities
available-for-sale 445 706
Comprehensive income $8,627 $5,927
Per common share data:
Net income: Basic $1.15 $0.73
Diluted 1.13 0.73
Cash dividends declared $0.41 $0.37
COLUMBIA BANCORP
Consolidated Statements of Income and Comprehensive Income
(Dollars in Thousands Except Per-Share Data)
Three Months Ended
December 31,
2001 2000
Interest income:
Loans and leases $10,889 $12,904
Investment securities 2,075 3,032
Federal funds sold 144 81
Total interest income 13,108 16,017
Interest expense:
Deposits 4,149 5,590
Borrowings 723 1,396
Total interest expense 4,872 6,986
Net interest income 8,236 9,031
Provision for credit losses 524 1,993
Net interest income after
provision
for credit losses 7,712 7,038
Noninterest income:
Fees charged for services 911 602
Gains on sales of mortgage loans,
net of costs 458 129
Net income on other real estate
owned 12 24
Other 393 281
Total noninterest income 1,774 1,036
Noninterest expense:
Salaries and employee benefits 3,419 3,211
Occupancy, net 864 772
Equipment 498 672
Data processing 341 255
Marketing 47 116
Cash management services 166 139
Professional fees 120 160
Deposit insurance 45 43
Merger-related expenses - (40)
Other 913 830
Total noninterest expense 6,413 6,158
Income before income taxes 3,073 1,916
Income tax provision 1,030 596
Net income 2,043 1,320
Other comprehensive income, net of
tax -
unrealized net gain (loss) on
securities
available-for-sale (368) 349
Comprehensive income $1,675 $1,669
Per common share data:
Net income: Basic $0.29 $0.18
Diluted 0.28 $0.19
Cash dividends declared $0.11 $0.10
COLUMBIA BANCORP
Financial Highlights
(Dollars in Thousands Except Per-Share Data)
As of and Twelve Months Ended
December 31,
2001 2000 % Change
SUMMARY OF OPERATING RESULTS:
Net interest income $34,078 $34,741 -1.9%
Provision for credit losses 1,534 3,423 -55.2%
Noninterest income 5,930 3,960 49.7%
Noninterest expense before
merger-related expenses 26,192 24,939 5.0%
Income tax provision 4,100 2,848 44.0%
Net income 8,182 5,221 56.7%
Net income before merger-related
expenses 8,182 6,796 20.4%
PER SHARE DATA:
Net income :
Basic $1.15 $0.73 56.8%
Diluted 1.13 0.73 55.4%
Net income before merger-related
expenses:
Basic 1.15 0.95 20.5%
Diluted 1.13 0.94 20.7%
Average number of shares
outstanding:
Basic 7,145,359 7,154,996 -0.1%
Diluted 7,213,726 7,198,234 0.2%
Book value, at period end $9.76 $9.02 8.2%
Tangible book value, at period
end 9.76 9.02 8.2%
Cash dividends declared 0.41 0.37 10.8%
PERIOD END DATA:
Assets $849,649 $812,650 4.6%
Deposits 638,001 630,484 1.2%
Loans and leases, net of unearned
income 602,087 539,051 11.7%
Investment securities and
securities
available-for-sale 170,048 199,011 -14.6%
Stockholders' equity 69,362 64,520 7.5%
PERFORMANCE RATIOS:
Return on average assets 1.01% 0.71%
Return on average assets before
merger-related expenses 1.01% 0.93%
Return on average stockholders'
equity 12.11% 8.36%
Return on average stockholders'
equity before
merger-related expenses 12.11% 10.89%
Net interest margin (FTE) 4.52% 5.13%
Efficiency ratio before merger-
related expenses(FTE) 65.05% 64.39%
CAPITAL RATIOS:
Period-end capital to risk-
weighted assets:
Tier 1 9.92% 10.48%
Total 11.07% 11.62%
Period-end tier 1 leverage ratio 8.42% 8.37%
ASSET QUALITY:
Net charge-offs $536 $2,468 -78.3%
Nonperforming assets:
Nonaccrual loans 3,230 3,917 -17.5%
Restructured loans - 294 -100.0%
Loans 90+ days past due and
accruing 819 218 275.7%
Other real estate owned 1,187 2,996 -60.4%
Total nonperforming
assets and past due
loans 5,236 7,425 -29.5%
Allowance for credit losses to
loans, net
of unearned income, at
period-end 1.33% 1.30%
Nonperforming and past-due loans
to total
loans, net of unearned
income, at period-end 0.67% 0.82%
Nonperforming assets and past-due
loans
to total assets, at period-
end 0.62% 0.91%
Annualized net charge-offs to
average
loans, net of unearned
income 0.09% 0.50%
AVERAGE BALANCES:
Federal funds sold (a) $28,233 $14,574 93.7%
Investment securities and
securities
available-for-sale 158,603 164,261 -3.4%
Loans and leases, net of unearned
income 567,379 496,729 14.2%
Loans originated for sale (a) 5,724 1,672 242.3%
Total earning assets 759,939 677,236 12.2%
Total assets 812,890 733,279 10.9%
Interest-bearing deposits
NOW accounts 61,524 57,751 6.5%
Savings and money market
accounts 171,436 172,601 -0.7%
Time deposits 270,588 232,941 16.2%
Total deposits 628,558 583,266 7.8%
Short-term borrowings (a) 89,624 60,490 48.2%
Long-term borrowings 20,000 20,000 0.0%
Total interest-bearing
liabilities 613,172 543,783 12.8%
Stockholders' equity 67,557 62,421 8.2%
YIELD ANALYSIS:
Federal funds sold 3.85% 6.27%
Investment securities and
securities
available-for-sale 6.14% 6.41%
Loans and leases, net of unearned
income (FTE) 8.29% 9.53%
Total yield on earning assets
(FTE) 7.67% 8.70%
Interest-bearing deposits
NOW accounts 0.46% 1.08%
Savings and money market
accounts 2.51% 3.54%
Time deposits 5.70% 5.56%
Short-term borrowings 3.23% 5.69%
Long-term borrowings 5.42% 5.30%
Total cost of interest-bearing
liabilities 3.91% 4.45%
(a) 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,
2001 2000 % Change
SUMMARY OF OPERATING RESULTS:
Net interest income $8,236 $9,031 -8.8%
Provision for credit losses 524 1,993 -73.7%
Noninterest income 1,774 1,036 71.2%
Noninterest expense before
merger-related expenses 6,413 6,198 3.5%
Income tax provision 1,030 596 72.8%
Net income 2,043 1,320 54.8%
Net income before merger-related
expenses 2,043 1,281 59.4%
PER SHARE DATA:
Net income :
Basic $0.29 $0.19 51.1%
Diluted 0.28 0.18 57.5%
Net income before merger-related
expenses:
Basic 0.29 0.18 59.4%
Diluted 0.28 0.18 57.5%
Average number of shares
outstanding:
Basic 7,127,296 7,154,329 -0.4%
Diluted 7,206,717 7,201,568 0.1%
Book value, at period end na na na
Tangible book value, at period
end na na na
Cash dividends declared $0.11 $0.10 10.0%
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 0.98% 0.68%
Return on average assets before
merger-related expenses 0.98% 0.66%
Return on average stockholders'
equity 11.66% 8.15%
Return on average stockholders'
equity before
merger-related expenses 11.66% 7.91%
Net interest margin (FTE) 4.27% 5.01%
Efficiency ratio before merger-
related expenses(FTE) 63.50% 61.51%
CAPITAL RATIOS:
Period-end capital to risk-
weighted assets:
Tier 1
Total
Period-end tier 1 leverage ratio
ASSET QUALITY:
Net charge-offs $159 $1,704 -90.7%
Nonperforming assets:
Nonaccrual loans
Restructured 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 charge-offs to
average
loans, net of unearned
income 0.11% 1.28%
AVERAGE BALANCES:
Federal funds sold (a) $26,702 $4,776 459.1%
Investment securities and
securities
available-for-sale 154,606 183,542 -15.8%
Loans and leases, net of unearned
income 584,519 528,089 10.7%
Loans originated for sale (a) 8,073 1,551 420.5%
Total earning assets 773,900 717,958 7.8%
Total assets 823,754 776,318 6.1%
Interest-bearing deposits
NOW accounts 63,887 58,314 9.6%
Savings and money market
accounts 164,822 167,299 -1.5%
Time deposits 266,600 257,370 3.6%
Total deposits 628,381 606,844 3.5%
Short-term borrowings (a) 100,640 77,412 30.0%
Long-term borrowings 20,000 20,000 0.0%
Total interest-bearing
liabilities 615,949 580,395 6.1%
Stockholders' equity 69,511 64,431 7.9%
YIELD ANALYSIS:
Federal funds sold 2.14% 6.75%
Investment securities and
securities
available-for-sale 5.38% 6.57%
Loans and leases, net of unearned
income (FTE) 7.34% 9.70%
Total yield on earning assets
(FTE) 6.77% 8.88%
Interest-bearing deposits
NOW accounts 0.25% 0.91%
Savings and money market
accounts 1.66% 3.77%
Time deposits 5.09% 5.99%
Short-term borrowings 1.79% 5.79%
Long-term borrowings 5.34% 5.38%
Total cost of interest-bearing
liabilities 3.14% 4.79%
(a) Variances reflect significant fluctuations in account
balances due to the nature of the accounts.
SOURCE Columbia Bancorp
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Related links:
http://www.columbank.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/127921.html
CONTACT:
John A. Scaldara, Jr., CFO of Columbia
Bancorp, +1-410-465-4800
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