HIGHLIGHTS - Earnings for the year of $32.4 million, up from $32.1 million
in 2006.
- Fourth quarter 2007 earnings were $7.3 million compared to $8.3 million a
year ago
- Total assets at $3.18 billion, a 25% increase from one year ago.
- Strong organic loan and deposit growth
- Core deposits at 67% of total deposits.
- Revenue for the quarter of $37 million, up 18% from one year ago; revenue
for the year of $137 million, up 12% from 2006.
- Lacey and Bellingham offices open, bringing retail network to 55 branches
serving 10 counties in Washington and Oregon.
TACOMA, Wash., Jan. 24 /PRNewswire-FirstCall/ -- Columbia Banking
System, Inc. (Nasdaq: COLB) today announced net income of $7.3 million for
the quarter ended December 31, 2007, compared to $8.3 million for the same
quarter of 2006. These results reflect a $1.8 million, one-time non-cash
accrual for litigation liabilities in the fourth quarter stemming from
membership in the Visa USA network. Additionally, organic loan growth was
stronger than anticipated, exceeding $70 million for the quarter, resulting
in an increased provision for loan losses of $1.4 million. On a diluted per
share basis, net income for the quarter was $0.41, a decline from $0.52 in
2006. The decrease in diluted earnings per share was primarily attributed
to increased compensation costs due to our expansion efforts, the Visa
litigation liability, a declining net interest margin and additional shares
outstanding as a result of Columbia's third quarter 2007 acquisitions of
Mountain Bank Holding Company and Town Center Bancorp.
For the year ended December 31, 2007, net income increased $278,000 to
$32.4 million, up 1% from $32.1 million for 2006. On a diluted per share
basis, earnings for the year were $1.91, a decrease of 4% from $1.99 in the
prior year.
Results for the fourth quarter and the year reflect the financial
consolidation of Mountain Bank Holding Company and Town Center Bancorp,
which were both acquired on July 23, 2007; consequently, the fourth quarter
and year-to-date 2006 financial information does not include the results of
the two organizations. For comparative purposes, the table below breaks out
the mix of organic growth from the growth resulting from our acquisitions.
(in millions) Loans Deposits
Beginning Balance at 12-31-2006 $1,709 $2,023
Acquired by Acquisition 287 305
Organic Growth 287 170
Ending Balance at 12-31-2007 $2,283 $2,498
Revenue (net interest income plus noninterest income) was $36.8 million
for the fourth quarter of 2007, up 18% from $31.1 million one year ago.
Revenue for 2007 totaled $136.6 million, up 12% from $122.4 million for the
year 2006. The efficiency ratio increased to 62.83% and 61.33% for the
fourth quarter and year to date 2007 as compared to 57.41% and 58.95% for
the same periods in 2006. The increase in the efficiency ratio is due to
our investments in our expansion efforts, as well as falling short-term
interest rates.
Return on average assets and return on average equity for the quarter
was .92% and 8.63%, respectively, compared to 1.31% and 13.28%,
respectively, for the same period in 2006. Return on average assets and
return on average equity for the year were 1.14% and 11.19%, respectively,
compared with 1.30% and 13.50% for 2006. Excluding the one-time charge for
the Visa litigation liability, return on average equity was 9.98% and
11.57% for the fourth quarter and year-to-date 2007, respectively.
Return on average tangible equity for the quarter was 13.08%, compared
to 15.49% for the same quarter last year. Return on average tangible equity
for the year was 14.53%, compared to 15.88% for 2006. Return on average
tangible equity, a non-GAAP performance measure, is used by Columbia's
management in recognition of the goodwill created by acquisitions,
providing a more consistent comparison with pre-acquisition performance.
Melanie J. Dressel, President and Chief Executive Officer, said, "We
achieved significant milestones in 2007 as a result of our continuing
growth in deposits and market share, reaching over $3 billion in assets,
$2.5 billion in deposits, and over $2 billion in loans. Our loan growth of
34% was attained through strong internal growth as well as through our
acquisitions, and we have maintained healthy diversity in our portfolio.
Our continued focus on developing and deepening customer relationships has
resulted in our ability to grow deposits despite intense competitive
pressures."
Ms. Dressel continued, "We expanded our geographic footprint into
important markets, as we partnered with two well-respected organizations.
Our reputation in the communities we serve has allowed us to continue to
attract talented bankers who bring their experience and specific knowledge
of their market areas to our culture of customer service. Last year, we
invested in our growth as we hired a commercial banking team for our
Bellevue South office, greatly expanded our Bellevue Private Banking team,
added residential construction lending expertise, opened a new location in
Lacey, and established our new Bellingham branch around an experienced
group of retail bankers."
Ms. Dressel further noted, "Our challenge continues to be managing the
fine line between growth and profitability while adapting to an
ever-changing and uncertain economic climate. We are asset sensitive, which
means our assets reprice more quickly than our liabilities. The 100 basis
point drop in short-term rates through December 31, 2007, coupled with
having greater than 40% of our loan portfolio tied to prime or other
indexes, resulted in a 14 basis point decline in our net interest margin
for both the fourth quarter and full-year 2007 when compared to the same
period in the prior year." A one basis point drop in the net interest
margin is equal to a decline in net interest income of approximately
$260,000 per year.
At December 31, 2007, Columbia's total assets were $3.18 billion, an
increase of 25% from $2.55 billion at December 31, 2006. Total loans were
$2.28 billion at December 31, 2007, up 34% from December 31, 2006, and
total securities decreased $32.1 million to $573 million at December 31,
2007, a decrease of 5% from the prior year. Total deposits increased 23%
from December 31, 2006, ending at $2.50 billion at December 31, 2007. Core
deposits totaled $1.67 billion at year-end 2007, comprising 67% of total
deposits.
Columbia's Visa, Inc. ("Visa") litigation reserve expense relates to an
October, 2007 restructuring of Visa. As a result of the restructuring, Visa
issued shares of common stock to its financial institution members in
contemplation of its initial public offering ("IPO") expected to occur in
2008. After the restructuring, member financial institutions became
guarantors of Visa's liabilities based upon their proportionate share of
the membership base. On November 7, 2007, Visa announced that it had
reached a settlement to resolve certain restraint of trade litigation
brought by American Express. For the 4th quarter 2007, Columbia recognized
a pre-tax charge of approximately $1.8 million, or $0.06 per diluted common
share, related to the American Express settlement and the remaining
litigation. Of this $1.8 million, $612,000 is the Company's proportionate
share of the American Express settlement and $1.16 million is the Company's
estimate of the fair value of potential losses related to the remaining
litigation in accordance with FASB Interpretation No. 45.
At this time the Company will not reflect any value for its membership
interest in Visa as a result of the restructuring. However, if the
anticipated IPO is completed, it is expected that Visa will fund an escrow
account with a portion of the proceeds. The escrow account will be for the
settlement of Visa's liabilities associated with restraint of trade actions
brought against them. The fair value of the Company's proportionate Visa
interest will be realized, based upon the value of shares utilized to
establish the escrow account (limited to the amount of the obligation
recorded) and shares redeemed for cash. The Company anticipates that its
proportionate share of the Visa IPO proceeds will more than offset the
liabilities recorded in relation to Visa's litigation matters.
Operating Results
Quarter and Year-Ended December 31, 2007
Net Interest Income
Net interest income for the quarter increased 19% to $29.6 million,
from $24.8 million for the same quarter in 2006, primarily due to increased
loan volumes. Columbia's net interest margin decreased to 4.29% in the
fourth quarter of 2007 from 4.43% for the same quarter last year. The
compression on net interest margin resulted from increased competition for
loans, slower core deposit growth and an increasing reliance on higher cost
deposits and borrowings to fund loan growth. Total revenue was $36.8
million for the quarter, up 18% from $31.1 million in the same quarter of
2006.
Average interest-earning assets grew to $2.84 billion during the
quarter, an increase of 23% compared with $2.31 billion during the same
quarter of 2006. The yield on average interest-earning assets increased 16
basis points (a basis point equals 1/100 of 1%) to 7.21% during the quarter
compared with 7.05% during the same quarter of 2006. During the same
period, average interest-bearing liabilities increased to $2.29 billion or
27% from $1.80 billion in 2006. The cost of average interest-bearing
liabilities increased 26 basis points to 3.62% during the quarter, from
3.36% in the same quarter of 2006.
For the twelve months ended December 31, 2007, net interest income
increased 11% to $108.8 million from $97.8 million in 2006. During 2007,
the Company's net interest margin decreased to 4.35% from 4.49% for 2006.
Total revenue for the year was $136.6 million, an increase of 12% from
$122.4 million for 2006. Average interest-earning assets grew to $2.60
billion during 2007, compared with $2.27 billion during 2006. The yield on
average interest-earning assets increased 38 basis points to 7.25% during
2007, from 6.87% in 2006. In comparison, average interest-bearing
liabilities grew to $2.08 billion compared with $1.77 billion for 2006. The
cost of average interest-bearing liabilities increased 59 basis points to
3.63% during 2007 from 3.04% in 2006.
Noninterest Income
Noninterest income for the quarter was $7.2 million, an increase of
$875,000, or 14% from the same quarter in 2006. The increase is primarily
due to increases in service charges, miscellaneous loan fees and other fee
income. For the year, noninterest income was $27.7 million, an increase of
$3.0 million from $24.7 million for 2006.
Noninterest Expense
Total noninterest expense for the quarter was $25.7 million, an
increase of 39% from $18.6 million for the same quarter in 2006. This
increase is primarily due to the addition of the acquisitions in the third
quarter 2007, expenses associated with employee compensation and benefits
as well as the one-time non-cash accrual for the Reserve for Visa
litigation. Employee compensation and benefits expenses increased $2.5
million, or 26%, during the fourth quarter as compared to the same period
last year. This increase is attributable to the third quarter 2007
acquisitions as well as the continued expansion of our retail branch and
commercial lending units. These expansion efforts assisted in contributing
an additional $5.9 million in production revenue (defined as loan interest
income plus noninterest income less interest expense), an increase of 25%
from the fourth quarter of 2006. Noninterest expense for the year was $88.8
million, an increase of 17% from $76.1 million from the prior year.
Nonperforming Assets and Loan Loss Provision
The provision for credit losses for the fourth quarter of 2007 was $1.4
million, an increase of $176,000, or 14.3% from the third quarter of 2007
and $457,000, or 48.1%, from the fourth quarter of 2006. The increase in
the provision for credit losses from a year ago reflected growth in the
loan portfolio, particularly the residential construction portfolio, and
higher non-performing asset levels as Columbia's credit quality metrics
continue to normalize from historically low levels. For the quarter and the
year, organic loan growth was $70 million, an increase of 12.6%, and $287
million, or $16.8%, respectively.
As expected, nonperforming assets increased during the fourth quarter
of 2007. Total nonperforming assets were $14.6 million at December 31,
2007, compared with $10.4 million at September 30, 2007, and $3.5 million
at December 31, 2006. Nonperforming assets increased $4.2 million during
the fourth quarter of 2007 compared with the third quarter of 2007. A
single credit accounted for approximately $2.1 million, with the balance
comprised of several smaller credits. This increase reflected continued
stress in real estate-related lending, including construction lending and
industries impacted by the slowing housing market. With the continuing
pressure in the homebuilding industry, management feels it is reasonable to
expect nonperforming assets to increase moderately over the next several
quarters. As of December 31, 2007, Columbia's ratio of nonperforming assets
to total assets was 0.46% compared to 0.14% as of December 31, 2006, which
was the lowest level of nonperforming loans in the company's history.
Net charge-offs in the fourth quarter of 2007 were $188,000 compared
with net charge-offs of $382,000 in the third quarter of 2007 and
$1,694,000 in the fourth quarter of 2006. The ratio of the allowance for
credit losses to period-end loans was 1.17% at December 31, 2007, compared
with 1.15% at September 30, 2007, and 1.18% at December 31, 2006.
Ms. Dressel noted, "While nonperforming assets increased during the
fourth quarter, the growth was moderate. More importantly, net charge-offs
were $380,000 or 0.02%, of total loans for the full year. While we are not
immune to the instability in the residential real estate markets and
mortgage-related industries, we continue to be committed to maintaining a
well-diversified loan portfolio. As the economy of the Pacific Northwest
changes, we will maintain a prudent approach to credit quality, and expect
to add to our allowance for loan loss as appropriate to ensure we maintain
adequate reserves."
Expansion Activities
Ms. Dressel noted, "In 2007, we made continued progress toward our
stated goal to become a Pacific Northwest regional community bank through
both de novo branching and strategic acquisitions that make economic sense
for our shareholders. Our acquisitions of Mountain Bank Holding Company and
Town Center Bancorp during the third quarter added a total of twelve
branches to our strong retail network. During the 4th quarter, we opened
our long-awaited Lacey branch, as well as a new branch location in
Bellingham, bringing our total to 55 branches serving 10 counties in
Washington and Oregon.
Conference Call
Columbia will discuss the quarterly and year-end results on a
conference call on Thursday, January 24, 2008 at 1:00 PST. Interested
investors, analysts, media representatives and the public are invited to
listen to this discussion by calling 1-888-318-7969; Conference ID code
30252038. A conference call replay will be available from approximately
3:00 p.m. PST on January 24 through midnight PST on Thursday, January 31,
2008. The conference call replay can be accessed by dialing 1-800-642-1687
and entering Conference ID code 30252038.
Annual Meeting of Shareholders
Columbia Banking System's Annual Meeting of Shareholders will be held
at 1:00 PST on April 23, 2008, at the Greater Tacoma Convention & Trade
Center; 1500 Broadway, Tacoma, Washington.
About Columbia
Headquartered in Tacoma, Washington, Columbia Banking System, Inc. is a
Tacoma-based bank holding company whose wholly owned banking subsidiaries
are Columbia Bank and Bank of Astoria, which operate a combined total of 55
branches. Columbia Bank is a Washington state-chartered full-service
commercial bank. With the July 23, 2007 completion of the acquisitions of
Mountain Bank Holding Company and Town Center Bancorp, Columbia Bank has 50
banking offices in Pierce, King, Cowlitz, Kitsap, Thurston and Whatcom
counties in Washington State, and Clackamas and Multnomah counties in
Oregon. Included in Columbia Bank are former branches of Mt. Rainier
National Bank, doing business as Mt. Rainier Bank, with 7 branches in King
and Pierce counties. Bank of Astoria, a federally insured commercial bank
headquartered in Astoria, Oregon, operates four branches in Clatsop County:
Astoria, Warrenton, Seaside and Cannon Beach; and one branch in Manzanita
in Tillamook County. More information about Columbia can be found on its
website at http://www.columbiabank.com.
Note Regarding Forward-Looking Statements
This news release includes forward looking statements, which management
believes are a benefit to shareholders. These forward looking statements
describe Columbia's management's expectations regarding future events and
developments such as future operating results, growth in loans and
deposits, continued success of Columbia's style of banking and the strength
of the local economy. The words "will," "believe," "expect," "should," and
"anticipate" and words of similar construction are intended in part to help
identify forward looking statements. Future events are difficult to
predict, and the expectations described above are necessarily subject to
risk and uncertainty that may cause actual results to differ materially and
adversely. In addition to discussions about risks and uncertainties set
forth from time to time in Columbia's filings with the SEC, factors that
may cause actual results to differ materially from those contemplated by
such forward looking statements include, among others, the following
possibilities: (1) local, national and international economic conditions
are less favorable than expected or have a more direct and pronounced
effect on Columbia than expected and adversely affect Columbia's ability to
continue its internal growth at historical rates and maintain the quality
of its earning assets; (2) changes in interest rates reduce interest
margins more than expected and negatively affect funding sources; (3)
projected business increases following strategic expansion or opening or
acquiring new branches are lower than expected; (4) costs or difficulties
related to the integration of acquisitions are greater than expected; (5)
competitive pressure among financial institutions increases significantly;
(6) legislation or regulatory requirements or changes adversely affect the
businesses in which Columbia is engaged.
Contacts: Melanie J. Dressel, President and
Chief Executive Officer
(253) 305-1911
Gary R. Schminkey, Executive Vice President
and Chief Financial Officer
(253) 305-1966
FINANCIAL STATISTICS
Columbia Banking
System, Inc.
Unaudited Three Months Ended Twelve Months Ended
(in thousands, except December 31, December 31,
per share amounts) 2007 2006 2007 2006
Earnings
Net interest income $29,562 $24,750 $108,820 $97,763
Provision for loan
and lease losses $1,407 $950 $ 3,605 $ 2,065
Noninterest income $7,199 $ 6,324 $27,748 $24,672
Noninterest expense $25,736 $18,560 $88,829 $76,134
Net income $7,298 $ 8,341 $32,381 $32,103
Per Share
Net income (basic) $ 0.41 $ 0.52 $ 1.93 $ 2.01
Net income(diluted) $ 0.41 $ 0.52 $ 1.91 $ 1.99
Averages
Total assets $ 3,131,122 $ 2,517,836 $ 2,837,162 $ 2,473,404
Interest-earning
assets $ 2,836,045 $ 2,310,502 $ 2,599,379 $ 2,265,393
Loans $ 2,241,893 $ 1,688,600 $ 1,990,622 $ 1,629,616
Securities $572,412 $602,075 $581,122 $623,631
Deposits $ 2,487,356 $ 2,024,108 $ 2,242,134 $ 1,976,448
Core deposits $ 1,632,722 $ 1,459,281 $ 1,544,056 $ 1,433,395
Shareholders'
Equity $335,510 $249,202 $289,297 $237,843
Financial Ratios
Return on average
assets 0.92% 1.31% 1.14% 1.30%
Return on average
equity 8.63% 13.28% 11.19% 13.50%
Return on average
tangible equity(1) 13.08% 15.49% 14.53% 15.88%
Average equity to
average assets 10.72% 9.90% 10.20% 9.62%
Net interest margin 4.29% 4.43% 4.35% 4.49%
Efficiency ratio
(tax equivalent) (2) 62.83% 57.41% 61.33% 58.95%
December 31,
Period end 2007 2006
Total assets $3,178,713 $ 2,553,131
Loans $2,282,728 $ 1,708,962
Allowance for loan
and lease losses $26,599 $20,182
Securities $572,973 $605,133
Deposits $2,498,061 $ 2,023,351
Core deposits $1,671,659 $ 1,473,701
Shareholders'
equity $341,731 $252,347
Book value per share $19.03 $15.71
Tangible book value
per share $13.29 $13.68
Nonperforming assets
Nonaccrual loans $14,005 $ 2,414
Restructured loans 456 1,066
Other real estate
owned 181 --
Total
nonperforming
assets $14,642 $ 3,480
Nonperforming loans
to period-end loans 0.63% 0.20%
Nonperforming assets
to period-end assets 0.46% 0.14%
Allowance for loan and
lease losses to
period-end loans 1.17% 1.18%
Allowance for loan and
lease losses to
nonperforming loans 183.94% 579.94%
Allowance for loan and
lease losses to
nonperforming assets 181.66% 579.94%
Net loan charge-offs $380(3) $2,712(4)
(1) Annualized net income, excluding core deposit intangible asset
amortization, divided by average daily shareholders' equity,
excluding average goodwill and average core deposit intangible asset.
(2) Noninterest expense divided by the sum of net interest income and
noninterest income on a tax equivalent basis, excluding
gain/losson sale of investment securities, net cost (gain) of OREO,
reserve for VISA litigation liability and mark-to-market adjustments
of interest rate floor instruments.
(3) For the twelve months ended December 31, 2007.
(4) For the twelve months ended December 31, 2006.
FINANCIAL STATISTICS
Columbia Banking System, Inc. Period End
Unaudited December 31,
(in thousands) 2007 2006
Loan Portfolio Composition
Commercial business $762,365 $617,899
Real Estate:
One-to-four family residential 60,991 51,277
Five or more family residential and
commercial 852,139 687,635
Total Real Estate 913,130 738,912
Real Estate Construction:
One-to-four family residential 269,115 92,124
Five or more family residential and
commercial 165,490 115,185
Total Real Estate Construction 434,605 207,309
Consumer 176,559 147,782
Subtotal loans 2,286,659 1,711,902
Less: Deferred loan fees (3,931) (2,940)
Total loans $ 2,282,728 $ 1,708,962
Loans held for sale $4,482 $933
Deposit Composition
Demand and other noninterest bearing $468,237 $432,293
Interest bearing demand 478,596 414,198
Money market 609,502 516,415
Savings 115,324 110,795
Certificates of deposit 826,402 549,650
Total deposits $ 2,498,061 $ 2,023,351
QUARTERLY FINANCIAL STATISTICS
Columbia Banking System, Inc.
Unaudited
(in thousands,
except Three Months Ended
per share Dec 31 Sept 30 Jun 30 Mar 31 Dec 31
amounts) 2007 2007 2007 2007 2006
Earnings
Net interest
income $29,562 $28,860 $25,695 $24,703 $24,750
Provision for
loan and lease
losses $1,407 $ 1,231 $329 $638 $950
Noninterest
income $7,199 $ 7,631 $ 6,741 $ 6,177 $6,324
Noninterest
expense $25,736 $22,425 $20,266 $20,402 $18,560
Net income $7,298 $ 9,256 $ 8,544 $ 7,283 $8,341
Per Share
Net income
[basic] $0.41 $ 0.53 $ 0.53 $ 0.45 $0.52
Net income
[diluted] $0.41 $ 0.53 $ 0.53 $ 0.45 $0.52
Averages
Total
assets $3,131,122 $2,969,197 $2,654,863 $2,586,025 $2,517,836
Interest-
earning
assets $2,836,045 $2,702,487 $2,460,603 $2,392,372 $2,310,502
Loans $2,241,893 $2,102,281 $1,846,163 $1,765,692 $1,688,600
Securities $572,412 $572,124 $582,378 $597,952 $602,075
Deposits $2,487,356 $2,382,881 $2,090,273 $2,001,136 $2,024,108
Core
deposits $1,632,722 $1,610,523 $1,485,966 $1,444,210 $1,459,281
Shareholders'
Equity $335,510 $301,499 $262,905 $256,292 $249,202
Financial Ratios
Return on average
assets 0.92% 1.24% 1.29% 1.14% 1.31%
Return on
average equity 8.63% 12.18% 13.04% 11.52% 13.28%
Return on
average tangible
equity 13.08% 15.81% 15.04% 13.38% 15.49%
Average equity
to average
assets 10.72% 10.15% 9.90% 9.91% 9.90%
Net interest
margin 4.29% 4.40% 4.36% 4.37% 4.43%
Efficiency ratio
(tax equivalent) 62.83% 59.23% 60.04% 63.39% 57.41%
Period end
Total assets $3,178,713 $3,122,744 $2,660,946 $2,676,204 $2,553,131
Loans $2,282,728 $2,212,751 $1,859,592 $1,833,852 $1,708,962
Allowance for
loan and lease
losses $26,599 $25,380 $21,339 $20,819 $20,182
Securities $572,973 $577,712 $570,742 $599,306 $605,133
Deposits $2,498,061 $2,477,794 $2,117,325 $2,081,026 $2,023,351
Core deposits $1,671,659 $1,637,530 $1,472,206 $1,518,797 $1,473,701
Shareholders'
equity $341,731 $329,969 $259,773 $261,329 $252,347
Book value per
share $19.03 $18.45 $16.07 $16.17 $15.71
Tangible book
value per share $13.29 $12.79 $14.06 $14.16 $13.68
Nonperforming assets
Nonaccrual loans $14,005 $ 9,983 $ 4,972 $ 2,580 $ 2,414
Restructured loans 456 257 985 806 1,066
Other personal
property owned -- -- 32 -- --
Other real estate
owned 181 181 -- -- --
Total
nonperforming
assets $14,642 $ 10,421 $ 5,989 $ 3,386 $ 3,480
Nonperforming loans
to period-end
loans 0.63% 0.46% 0.32% 0.18% 0.20%
Nonperforming
assets to
period-end assets 0.46% 0.33% 0.23% 0.13% 0.14%
Allowance for loan
and lease losses
to period-end
loans 1.17% 1.15% 1.15% 1.14% 1.18%
Allowance for loan
and lease losses
to nonperforming
loans 183.94% 247.85% 358.22% 614.86% 579.94%
Allowance for loan
and lease losses
to nonperforming
assets 181.66% 243.55% 356.30% 614.86% 579.94%
Net loan
(recoveries)
charge-offs $188 $382 $(191) $ 1 $ 1,694
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
Columbia Banking System, Inc.
(Unaudited)
Three Months Ended Twelve Months Ended
(in thousands except December 31, December 31,
per share) 2007 2006 2007 2006
Interest Income
Loans $43,646 $33,016 $156,253 $123,998
Taxable securities 4,547 4,833 18,614 20,018
Tax-exempt securities 1,998 1,918 7,923 7,042
Federal funds sold and
deposits with banks 247 263 1,427 617
Total interest income 50,438 40,030 184,217 151,675
Interest Expense
Deposits 17,313 12,071 59,930 40,838
Federal Home Loan Bank
advances 2,948 2,600 11,065 10,944
Long-term obligations 573 522 2,177 1,992
Other borrowings 42 87 2,225 138
Total interest expense 20,876 15,280 75,397 53,912
Net Interest Income 29,562 24,750 108,820 97,763
Provision for loan and
lease losses 1,407 950 3,605 2,065
Net interest income after
provision for loan and
lease losses 28,155 23,800 105,215 95,698
Noninterest Income
Service charges and other
fees 3,685 3,019 13,498 11,651
Merchant services fees 2,029 1,948 8,373 8,314
Gain on sale of investment
securities, net -- 26 -- 36
Bank owned life insurance
("BOLI") 507 427 1,886 1,687
Other 978 904 3,991 2,984
Total noninterest income 7,199 6,324 27,748 24,672
Noninterest Expense
Compensation and employee
benefits 12,338 9,796 46,703 38,769
Occupancy 3,299 2,692 12,322 10,760
Merchant processing 883 809 3,470 3,361
Advertising and promotion 612 468 2,391 2,582
Data processing 701 519 2,564 2,314
Legal & professional services 930 552 3,135 2,099
Reserve for Visa litigation 1,777 -- 1,777 --
Taxes, licenses & fees 793 626 2,882 2,499
Net cost (gain) of other
real estate owned 5 -- 5 (11)
Other 4,398 3,098 13,580 13,761
Total noninterest expense 25,736 18,560 88,829 76,134
Income before income taxes 9,618 11,564 44,134 44,236
Provision for income taxes 2,320 3,223 11,753 12,133
Net Income $7,298 $8,341 $32,381 $32,103
Net income per common share:
Basic $0.41 $0.52 $1.93 $2.01
Diluted $0.41 $0.52 $1.91 $1.99
Dividend paid per common
share $0.17 $0.15 $0.66 $0.57
Average number of common
shares outstanding 17,783 15,988 16,802 15,946
Average number of diluted
common shares outstanding 17,982 16,161 16,972 16,148
CONSOLIDATED CONDENSED BALANCE SHEETS
Columbia Banking System, Inc.
(Unaudited)
(in thousands)
December 31, December 31,
Assets 2007 2006
Cash and due from banks $82,735 $76,365
Interest-earning deposits with banks 11,240 13,979
Federal funds sold - - 14,000
Total cash and cash equivalents 93,975 104,344
Securities available for sale at fair value
(amortized cost of $558,685 and $598,703
respectively) 561,366 592,858
Securities held to maturity at cost
(fair value of $0 and $1,871 respectively) -- 1,822
Federal Home Loan Bank stock 11,607 10,453
Loans held for sale 4,482 933
Loans, net of unearned income of ($3,931) and
($2,940) respectively 2,282,728 1,708,962
Less: allowance for loan and lease losses 26,599 20,182
Loans, net 2,256,129 1,688,780
Interest receivable 14,622 12,549
Premises and equipment, net 56,122 44,635
Other real estate owned 181 - -
Goodwill 96,011 29,723
Other assets 84,218 67,034
Total Assets $3,178,713 $2,553,131
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing $468,237 $432,293
Interest-bearing 2,029,824 1,591,058
Total deposits 2,498,061 2,023,351
Short-term borrowings:
Federal Home Loan Bank advances 257,670 205,800
Securities sold under agreements to repurchase -- 20,000
Other borrowings 5,061 198
Total short-term borrowings 262,731 225,998
Long-term subordinated debt 25,519 22,378
Other liabilities 50,671 29,057
Total liabilities 2,836,982 2,300,784
Shareholders' equity:
Preferred stock (no par value)
Authorized, 2 million shares; none outstanding -- --
December 31, December 31,
Common stock
(no par value) 2007 2006
Authorized shares 63,034 63,034
Issued and
outstanding 17,953 16,060 226,550 166,763
Retained earnings 110,169 89,037
Accumulated other comprehensive income (loss) 5,012 (3,453)
Total shareholders' equity 341,731 252,347
Total Liabilities and Shareholders' Equity $3,178,713 $2,553,131
SOURCE Columbia Banking System, Inc.
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Related links:
http://www.columbiabank.com
CONTACT:
Melanie J. Dressel, President and Chief
Executive Officer +1-253-305-1911, or Gary R. Schminkey,
Executive Vice President and Chief Financial Officer,
+1-253-305-1966, both of Columbia Banking System, Inc.
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