COLUMBIA, Md., Jan. 27 /PRNewswire-FirstCall/ -- Columbia Bancorp
(Nasdaq: CBMD), parent company of The Columbia Bank (the "Bank"), today
announced that net income for the fourth quarter 2004 increased 17.2% to
$3.67 million ($.50 per diluted share), from $3.13 million ($.42 per diluted
share) for the fourth quarter 2003. For the fourth quarter 2004, return on
average equity was 15.99% and return on average assets was 1.25%, compared to
14.55% and 1.23%, respectively, for the fourth quarter 2003.
Net income for the year ended December 31, 2004 was a record
$13.29 million ($1.80 per diluted share), representing an increase of 11.6%
over the $11.90 million ($1.62 per diluted share) reported for the comparable
period in 2003. The Company's return on average equity improved to 14.88% for
2004 from 14.63% for 2003. Return on average assets was 1.21% for 2004,
compared to 1.22% for 2003.
FOURTH QUARTER FINANCIAL HIGHLIGHTS
-- Net interest income (FTE) increased $2.05 million or 18.9% over the
fourth quarter of 2003.
-- The net interest margin (FTE) improved to 4.57% during the fourth
quarter of 2004 compared to 4.43% during the fourth quarter 2003.
-- Non-performing assets decreased to .05% of total assets at December 31,
2004 compared to .09% at year-end 2003.
-- Quarterly cash dividends declared increased 13.3% from $.15 per share
for the third quarter of 2004 to $.17 per share for the fourth quarter
of 2004.
DETAILED REVIEW OF 2004 FINANCIAL PERFORMANCE
Total assets at December 31, 2004 were $1.18 billion compared to
$1.03 billion at December 31, 2003, representing growth of 14.6%. Loan
production continued to be strong during 2004, resulting in an overall
increase in total loans, net of unearned income, during the year of 13.7%, or
$114.69 million, to $950.17 million. Loan growth during 2004 can be
attributed, in large part, to the Company's continued success in the real
estate development and construction and commercial real estate lending
markets, which netted increases in the respective portfolios of $61.78 million
(21.8%) and $20.26 million (14.1%). The consumer loan portfolio, consisting
primarily of home equity lines of credit, also exhibited strong growth during
the year, increasing $26.90 million, or 15.9%.
The Company continued to focus on funding loan growth with customer-based
funding sources during 2004 in the form of retail and commercial deposits and
also short-term borrowings from customers in the form of commercial paper and
repurchase agreements. As a result, customer funding sources increased 16.2%
to $1.03 billion at December 31, 2004, from $882.71 million at December 31,
2003. The $142.69 million increase in total customer funding sources during
2004 was primarily due to the increase in noninterest-bearing deposits of
$49.81 million and also to the $75.16 million increase in interest-bearing
deposits. Stockholders' equity increased 8.1% to $92.35 million at
December 31, 2004 from $85.45 million at December 31, 2003, representing a
tangible book value per share of $12.98. Cash dividends declared of $.62 per
share for the year ended December 31, 2004 represented an increase of 18.1%
over 2003 dividends declared of $.525 per share.
The principal driver of the Company's 2004 earnings improvement was an
increase of $5.51 million, or 13.4%, in net interest income (FTE) as compared
to 2003. This increase was primarily the result of a 12.9% increase in
average earning assets during 2004 as compared to 2003 and improvement in the
net interest margin (FTE) to 4.44% for 2004, from 4.42% in 2003. This
increase more than offset a decline in noninterest income of $2.17 million, or
24.2%, which was attributable, in part, to a decline in residential mortgage
loan production associated with a slowdown in refinancing activity.
Specifically, decreased mortgage origination volume resulted in a decline of
$1.52 million, or 51.4%, in gains and fees realized on sales of mortgage
loans, net of costs.
The Company continued to leverage its overhead structure by limiting the
increase in total noninterest expenses to $1.08 million, or 3.6%, for 2004 as
compared to 2003, while operating income (net interest income plus noninterest
income) increased $2.75 million or 5.5%. The increase in noninterest expense
during the year included: (i) an increase of $480,000, or 2.9%, in salaries
and employee benefits; (ii) an increase in occupancy costs of $132,000, or
3.5%, reflecting normal escalations in lease payments and costs to maintain
business properties; and (iii) an increase in other noninterest expenses of
$604,000, or 12.7%, primarily reflecting added consulting, legal and audit
expenses related to Sarbanes-Oxley compliance and added costs incurred to
support increases in loan and deposit processing volumes.
While the Company continued to experience growth in its loan portfolio,
asset quality remained strong as evidenced by a reduction in non-performing
assets and past due loans to $645,000 at December 31, 2004. As a percent of
total assets, non-performing assets and past due loans at December 31, 2004
were .05% compared to .09% at December 31, 2003. At December 31, 2004, the
allowance for credit losses totaled $11.58 million, or 1.22% of total loans,
compared to $10.83 million, or 1.30% of loans, at December 31, 2003. The
Company recorded net recoveries during 2004 and 2003 of $27,000 and $819,000,
respectively.
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)
(Unaudited)
As of and Twelve Months Ended
December 31,
2004 2003 % Change
SUMMARY OF OPERATING RESULTS:
Tax equivalent interest income $58,683 $51,942 13.0%
Interest expense 11,963 10,736 11.4%
Tax equivalent net interest
income 46,720 41,206 13.4%
Tax equivalent adjustment 1,137 539 110.9%
Net interest income 45,583 40,667 12.1%
Provision for credit losses 728 1,170 (37.8%)
Noninterest income 6,798 8,963 (24.2%)
Noninterest expense 31,045 29,970 3.6%
Income before taxes 20,608 18,490 11.5%
Income tax provision 7,323 6,586 11.2%
Net income 13,285 11,904 11.6%
PER SHARE DATA:
Net income:
Basic $1.86 $1.67 11.4%
Diluted 1.80 1.62 11.1%
Average number of shares
outstanding:
Basic 7,148,420 7,133,937 0.2%
Diluted 7,391,371 7,369,736 0.3%
Book value, at period end $12.98 $11.92 8.9%
Tangible book value, at period
end 12.98 11.92 8.9%
Cash dividends declared $0.62 $0.525 18.1%
PERIOD END DATA:
Loans, net of unearned income $950,170 $835,484 13.7%
Investment securities and
securities available-for-sale 164,150 133,927 22.6%
Assets 1,179,006 1,029,255 14.5%
Noninterest-bearing deposits 256,132 206,323 24.1%
Interest-bearing deposits 656,446 581,285 12.9%
Total deposits 912,578 787,608 15.9%
Customer funding sources (a) 1,025,403 882,710 16.2%
Stockholders' equity 92,348 85,449 8.1%
PERFORMANCE RATIOS:
Return on average assets 1.21% 1.22%
Return on average stockholders'
equity 14.88% 14.63%
Net interest margin 4.33% 4.36%
Net interest margin (FTE) 4.44% 4.42%
Efficiency ratio (FTE)(c) 58.01% 59.74%
CAPITAL RATIOS:
Period-end capital to risk-
weighted assets:
Tier 1 9.74% 9.28%
Total 10.85% 10.45%
Period-end tier 1 leverage ratio 8.75% 8.43%
ASSET QUALITY:
Allowance for credit losses to
loans, net of unearned income, at
period-end 1.22% 1.30%
Net recoveries $27 $819 (96.7%)
Annualized net recoveries to average
loans, net of unearned income 0.00% 0.11%
Nonperforming assets:
Nonaccrual loans $614 $892 (31.2%)
Restructured loans - - na
Loans 90+ days past due and
accruing 31 72 (56.9%)
Other real estate owned - - na
Total nonperforming
assets $645 $964 (33.1%)
Nonperforming and past due loans
to total loans, net of unearned
income, at period-end 0.07% 0.12%
Nonperforming assets and past due
loans to total assets, at period-end 0.05% 0.09%
As of and Twelve Months Ended
December 31,
2004 2003 % Change
NONINTEREST INCOME AND EXPENSE BREAKDOWN:
Noninterest income:
Fees charged for services $3,718 $3,994 (6.9%)
Gains and fees on sales of
mortgage loans, net of costs 1,437 2,955 (51.4%)
Net income on other real
estate owned 59 22 168.2%
Gain on sale of available for
sale securities - 28 (100.0%)
Commissions earned on
financial
services sales 589 606 (2.8%)
Other noninterest income 995 1,358 (26.7%)
6,798 8,963 (24.2%)
Noninterest expenses:
Salaries and employee
benefits 16,931 16,451 2.9%
Occupancy, net 3,950 3,818 3.5%
Equipment 1,912 1,958 (2.3%)
Data processing 1,969 1,955 0.7%
Marketing 929 1,038 (10.5%)
Other noninterest expenses 5,354 4,750 12.7%
31,045 29,970 3.6%
AVERAGE BALANCES:
Federal funds sold and
interest-bearing deposits (b) $20,635 $25,158 (18.0%)
Investment securities and
securities
available-for-sale 130,865 144,445 (9.4%)
Loans, net of unearned income 894,961 747,153 19.8%
Loans originated for sale (b) 6,328 15,707 (59.7%)
Total earning assets 1,052,789 932,463 12.9%
Total assets 1,100,098 977,201 12.6%
Interest-bearing deposits:
NOW accounts 88,127 89,366 (1.4%)
Savings/money market accounts 199,618 199,352 0.1%
Time deposits 347,351 280,638 23.8%
Noninterest-bearing deposits 221,810 175,906 26.1%
Total deposits 856,906 745,262 15.0%
Short-term borrowings (b) 123,092 121,158 1.6%
Long-term borrowings 23,236 20,000 16.2%
Total interest-bearing
liabilities 781,424 710,514 10.0%
Stockholders' equity 89,262 81,377 9.7%
YIELD ANALYSIS:
Federal funds sold and
interest-bearing deposits 1.16% 1.11%
Investment securities and
securities
available-for-sale (FTE) 4.16% 4.41%
Loans, net of unearned income
(FTE) 5.88% 5.94%
Total yield on earning assets
(FTE) 5.57% 5.57%
Interest-bearing deposits
NOW accounts 0.15% 0.12%
Savings/money market accounts 0.40% 0.54%
Time deposits 2.42% 2.72%
Short-term borrowings 1.14% 0.71%
Long-term borrowings 5.24% 5.34%
Total cost of interest-bearing
liabilities 1.53% 1.51%
As of and Three Months Ended
December 31,
2004 2003 % Change
SUMMARY OF OPERATING RESULTS:
Tax equivalent interest income $16,376 $13,339 22.8%
Interest expense 3,497 2,507 39.5%
Tax equivalent net interest
income 12,879 10,832 18.9%
Tax equivalent adjustment 326 188 73.4%
Net interest income 12,553 10,644 17.9%
Provision for credit losses 36 120 (70.0%)
Noninterest income 1,475 1,848 (20.2%)
Noninterest expense 8,343 7,587 10.0%
Income before taxes 5,649 4,785 18.1%
Income tax provision 1,976 1,652 19.6%
Net income 3,673 3,133 17.2%
PER SHARE DATA:
Net income:
Basic $0.52 $0.44 18.2%
Diluted 0.50 0.42 19.0%
Average number of shares outstanding:
Basic 7,113,768 7,164,091 (0.7%)
Diluted 7,371,541 7,413,256 (0.6%)
Book value, at period end
Tangible book value, at period end
Cash dividends declared $0.17 $0.15 13.3%
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 (a)
Stockholders' equity
PERFORMANCE RATIOS:
Return on average assets 1.25% 1.23%
Return on average stockholders'
equity 15.99% 14.55%
Net interest margin 4.46% 4.36%
Net interest margin (FTE) 4.57% 4.43%
Efficiency ratio (FTE)(c) 58.12% 59.83%
CAPITAL RATIOS:
Period-end capital to risk-
weighted assets:
Tier 1
Total
Period-end tier 1 leverage ratio
ASSET QUALITY:
Allowance for credit losses to loans, net
of unearned income, at period-end
Net recoveries $33 $148 (77.7%)
Annualized net recoveries to average
loans, net of unearned income 0.01% 0.07%
Nonperforming assets:
Nonaccrual loans
Restructured loans
Loans 90+ days past due and accruing
Other real estate owned
Total nonperforming assets
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
As of and Three Months Ended
December 31,
2004 2003 % Change
NONINTEREST INCOME AND EXPENSE BREAKDOWN:
Noninterest income:
Fees charged for services $774 $1,006 (23.1%)
Gains and fees on sales of
mortgage loans, net of costs 287 322 (10.9%)
Net income on other real
estate owned - 2 (100.0%)
Gain on sale of available for
sale securities - - na
Commissions earned on
financial services sales 166 150 10.7%
Other noninterest income 248 368 (32.6%)
1,475 1,848 (20.2%)
Noninterest expenses:
Salaries and employee
benefits 4,865 4,301 13.1%
Occupancy, net 1,112 1,000 11.2%
Equipment 426 514 (17.1%)
Data processing 394 498 (20.9%)
Marketing 193 199 (3.0%)
Other noninterest expenses 1,353 1,075 25.9%
8,343 7,587 10.0%
AVERAGE BALANCES:
Federal funds sold and
interest-bearing deposits (b) $15,512 $8,584 80.7%
Investment securities and
securities available-for-sale 157,348 135,749 15.9%
Loans, net of unearned income 940,368 818,038 15.0%
Loans originated for sale (b) 7,068 6,891 2.6%
Total earning assets 1,120,296 969,262 15.6%
Total assets 1,167,536 1,012,865 15.3%
Interest-bearing deposits:
NOW accounts 87,742 86,806 1.1%
Savings/money market accounts 201,479 207,351 (2.8%)
Time deposits 364,888 292,383 24.8%
Noninterest-bearing deposits 245,886 192,030 28.0%
Total deposits 899,995 778,570 15.6%
Short-term borrowings (b) 139,635 124,563 12.1%
Long-term borrowings 26,231 20,000 31.2%
Total interest-bearing
liabilities 819,975 731,103 12.2%
Stockholders' equity 91,367 85,420 7.0%
YIELD ANALYSIS:
Federal funds sold and
interest-bearing deposits 1.59% 0.88%
Investment securities and
securities available-for-sale (FTE) 3.92% 3.96%
Loans, net of unearned income (FTE) 6.20% 5.75%
Total yield on earning assets (FTE) 5.81% 5.46%
Interest-bearing deposits
NOW accounts 0.16% 0.10%
Savings/money market accounts 0.47% 0.37%
Time deposits 2.48% 2.46%
Short-term borrowings 1.74% 0.68%
Long-term borrowings 5.22% 5.34%
Total cost of interest-bearing
liabilities 1.70% 1.36%
(a) Deposits plus customer-related short-term borrowings in the form of
commercial paper and repurchase agreements.
(b) Variances reflect significant fluctuations in account
balances due to the nature of the accounts.
(c) The efficiency ratio (FTE) is defined as total expense as a
percentage of net interest income, on a tax-equivalent basis, plus
noninterest income.
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,
2004 2003
(unaudited) (audited)
Assets
Cash and due from banks $30,012 $35,846
Interest-bearing deposits with banks 208 205
Federal funds sold 9,904 3,292
Investment securities held-to-maturity 116,170 77,344
Securities available-for-sale 47,980 56,583
Residential mortgage loans originated for sale 8,698 6,046
Loan receivables:
Real estate - development and construction 345,375 283,599
Commercial 226,763 221,374
Real estate - mortgage:
Residential 17,272 16,349
Commercial 163,985 143,723
Retail, principally second mortgage loans
and residential equity lines of credit 196,198 169,298
Other 668 1,504
Total loans 950,261 835,847
Less: unearned income, net of origination costs (91) (363)
allowance for credit losses (11,583) (10,828)
Loans, net 938,587 824,656
Property and equipment, net 6,647 7,332
Prepaid expenses and other assets 20,800 17,951
Total assets $1,179,006 $1,029,255
Liabilities
Deposits:
Noninterest-bearing $256,132 $206,323
Interest-bearing 656,446 581,285
Total deposits 912,578 787,608
Short-term borrowings 135,825 128,844
Subordinated debentures 10,310 ---
Long-term borrowings 20,000 20,000
Accrued expenses and other liabilities 7,945 7,354
Total liabilities 1,086,658 943,806
Stockholders' equity
Common stock, $.01 par value per share; authorized
10,000,000 shares; outstanding 7,114,267
and 7,170,882 shares, respectively 71 72
Additional paid-in capital 45,739 47,886
Retained earnings 46,419 37,561
Accumulated other comprehensive income (loss) 119 (70)
Total stockholders' equity 92,348 85,449
Total liabilities and stockholders' equity $1,179,006 $1,029,255
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,
2004 2003 2004 2003
(unaudited) (unaudited)(unaudited) (unaudited)
Interest income:
Loans $52,245 $44,962 $14,528 $11,841
Investment securities 5,062 6,161 1,459 1,292
Federal funds sold and interest-
bearing deposits with banks 239 280 63 18
Total interest income 57,546 51,403 16,050 13,151
Interest expense:
Deposits 9,340 8,814 2,544 2,024
Borrowings 2,623 1,922 953 483
Total interest expense 11,963 10,736 3,497 2,507
Net interest income 45,583 40,667 12,553 10,644
Provision for credit losses 728 1,170 36 120
Net interest income after
provision for credit losses 44,855 39,497 12,517 10,524
Noninterest income:
Fees charged for services 3,718 3,994 774 1,006
Gains and fees on sales of
mortgage loans, net of costs 1,437 2,955 287 322
Net income on other
real estate owned 59 22 --- 2
Gain on sale of investment
securities --- 28 --- ---
Commissions earned on
financial services sales 589 606 166 150
Other 995 1,358 248 368
Total noninterest income 6,798 8,963 1,475 1,848
Noninterest expense:
Salaries and employee
benefits 16,931 16,451 4,865 4,301
Occupancy, net 3,950 3,818 1,112 1,000
Equipment 1,912 1,958 426 514
Data processing 1,969 1,955 394 498
Marketing 929 1,038 193 199
Professional fees 945 663 344 95
Cash management services 548 579 137 140
Deposit insurance 202 196 52 49
Other 3,659 3,312 820 791
Total noninterest expense 31,045 29,970 8,343 7,587
Income before income taxes 20,608 18,490 5,649 4,785
Income tax provision 7,323 6,586 1,976 1,652
Net income $13,285 $11,904 $3,673 $3,133
Per common share data:
Net income: Basic $1.86 $1.67 $0.52 $0.44
Diluted 1.80 1.62 0.50 0.42
Cash dividends declared $0.62 $0.525 $0.17 $0.15
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)
(unaudited)
Twelve Months Ended Three Months Ended
December 31, December 31,
2004 2003 2004 2003
GAAP-based Operating
Performance Measures:
Net interest income $45,583 $40,667 $12,553 $10,644
Provision for credit losses 728 1,170 36 120
Noninterest income 6,798 8,963 1,475 1,848
Noninterest expense 31,045 29,970 8,343 7,587
Income before taxes 20,608 18,490 5,649 4,785
Income tax provision 7,323 6,586 1,976 1,652
Net income 13,285 11,904 3,673 3,133
Return on average assets 1.21% 1.22% 1.25% 1.23%
Return on average equity 14.88% 14.63% 15.99% 14.55%
Net interest margin 4.33% 4.36% 4.46% 4.36%
Efficiency ratio 59.27% 60.39% 59.47% 60.73%
Net income per share - diluted $1.80 $1.62 $0.50 $0.42
Non-GAAP adjustments
Tax equivalent adjustment -
net interest income $1,137 $539 $326 $188
Core Operating Performance Measures
Net interest income -
tax equivalent $46,720 $41,206 $12,879 $10,832
Tax equivalent adjustment (1,137) (539) (326) (188)
Net interest income 45,583 40,667 12,553 10,644
Provision for credit losses 728 1,170 36 120
Noninterest income 6,798 8,963 1,475 1,848
Noninterest expense 31,045 29,970 8,343 7,587
Income before taxes 20,608 18,490 5,649 4,785
Income tax provision 7,323 6,586 1,976 1,652
Net income 13,285 11,904 3,673 3,133
Return on average assets 1.21% 1.22% 1.25% 1.23%
Return on average equity 14.88% 14.63% 15.99% 14.55%
Net interest margin (FTE) 4.44% 4.42% 4.57% 4.43%
Efficiency ratio (FTE) 58.01% 59.74% 58.12% 59.83%
Net income per share - diluted $1.80 $1.62 $0.50 $0.42
COLUMBIA BANCORP
Quarterly Highlights
(Dollars in Thousands, Except Per-Share Data)
4Q04 3Q04 2Q04 1Q04
(unaudited)
SUMMARY OF OPERATING RESULTS:
GAAP-based:
Interest income $16,050 $14,833 $13,408 $13,255
Interest expense 3,497 3,131 2,755 2,580
Net interest income 12,553 11,702 10,653 10,675
Provision for credit losses 36 192 190 310
Noninterest income 1,475 1,714 1,872 1,737
Noninterest expense 8,343 7,669 7,504 7,529
Income before taxes 5,649 5,555 4,831 4,573
Income tax provision 1,976 2,037 1,718 1,592
Net income 3,673 3,518 3,113 2,981
Based on core operating performance (a):
Tax-equivalent
interest income $16,376 $15,097 $13,681 $13,529
Interest expense 3,497 3,131 2,755 2,580
Tax-equivalent net
interest income 12,879 11,966 10,926 10,949
Tax-equivalent adjustment 326 264 273 274
Net interest income 12,553 11,702 10,653 10,675
Provision for credit losses 36 192 190 310
Noninterest income 1,475 1,714 1,872 1,737
Noninterest expense 8,343 7,669 7,504 7,529
Income before taxes 5,649 5,555 4,831 4,573
Income tax provision 1,976 2,037 1,718 1,592
Net income 3,673 3,518 3,113 2,981
PER SHARE DATA:
Net income :
GAAP-based:
Basic $0.52 $0.49 $0.43 $0.42
Diluted 0.50 0.48 0.42 0.40
Based on core operating
performance (a):
Basic $0.52 $0.49 0.43 0.42
Diluted 0.50 0.48 0.42 0.40
Average number of shares
outstanding:
Basic 7,113,768 7,128,359 7,170,585 7,178,797
Diluted 7,371,541 7,350,901 7,404,762 7,434,701
Book value, at period end $12.98 $12.65 $12.33 $12.23
Tangible book value,
at period end 12.98 12.66 12.33 12.23
Cash dividends declared 0.17 0.15 0.15 0.15
PERIOD END DATA:
Loans, net of
unearned income $950,170 $936,000 $900,320 $864,753
Investment securities
and securities
available-for-sale 164,150 150,604 122,430 104,211
Assets 1,179,006 1,179,107 1,126,916 1,083,798
Noninterest-bearing deposits 256,132 246,092 240,117 220,700
Interest-bearing deposits 656,446 669,250 650,884 625,311
Total deposits 912,578 915,342 891,001 846,011
Customer funding sources (a) 1,025,403 1,053,771 1,001,524 963,051
Stockholders' equity 92,348 90,100 88,039 87,934
PERFORMANCE RATIOS:
GAAP-based:
Return on average assets 1.25% 1.24% 1.16% 1.16%
Return on average
stockholders' equity 15.99% 15.60% 14.07% 13.75%
Net interest margin 4.46% 4.31% 4.18% 4.34%
Efficiency ratio 59.47% 57.16% 59.91% 60.66%
Based on core operating
performance (a):
Return on average assets 1.25% 1.24% 1.16% 1.16%
Return on average
stockholders' equity 15.99% 15.60% 14.07% 13.75%
Net interest margin (FTE) 4.57% 4.41% 4.29% 4.46%
Efficiency ratio (FTE) 58.12% 56.06% 58.63% 59.35%
CAPITAL RATIOS:
Period-end capital to risk-weighted assets:
Tier 1 9.74% 9.23% 9.45% 9.04%
Total 10.85% 10.35% 10.58% 10.20%
Period-end tier 1 leverage ratio 8.75% 8.51% 8.79% 8.34%
ASSET QUALITY:
Allowance for credit losses to
loans, net of unearned income,
at period-end 1.22% 1.23% 1.25% 1.28%
Net recoveries (charge-offs) $33 $81 $10 $(97)
Annualized net recoveries
(charge-offs) to average loans,
net of unearned income 0.01% 0.04% ---% (0.05%)
Nonperforming assets:
Nonaccrual loans $614 $635 $1,095 $1,168
Restructured loans --- --- --- ---
Loans 90+ days past due
and accruing 31 22 91 69
Other real estate owned --- --- 250 250
Total nonperforming assets $645 $657 $1,436 $1,487
Nonperforming and past due
loans to total loans,net of
unearned income, at period-end 0.07% 0.07% 0.13% 0.14%
Nonperforming assets and past
due loans to total assets,
at period-end 0.05% 0.06% 0.13% 0.14%
NONINTEREST INCOME AND EXPENSE BREAKDOWN:
Noninterest income:
Fees charged for
deposit services $774 $910 $1,029 $1,005
Gains on sales of mortgage
loans, net of costs 287 291 508 351
Net income (loss) on other
real estate owned - 73 (5) (9)
Commissions earned on
financial services sales 166 146 137 140
Other noninterest income 248 294 203 250
Total noninterest income $1,475 $1,714 $1,872 $1,737
Noninterest expenses:
Salaries and payroll taxes $4,014 $3,718 $3,618 $3,684
Employee benefits 851 396 288 362
Occupancy, net 1,112 918 944 976
Equipment 426 468 505 513
Data processing 394 525 532 518
Marketing 193 140 296 300
Other noninterest expenses 1,353 1,504 1,321 1,176
Total noninterest expenses $8,343 $7,669 $7,504 $7,529
AVERAGE BALANCES:
Federal funds sold
and interest bearing deposits $15,512 $20,056 $37,521 $9,513
Investment securities
and securities
available-for-sale 157,348 140,143 103,384 122,192
Loans, net of unearned income 940,368 914,052 873,278 851,436
Loans originated for sale (b) 7,068 4,738 8,320 5,196
Total earning assets 1,120,296 1,078,989 1,022,503 988,337
Total assets 1,167,536 1,126,923 1,071,793 1,033,102
Interest-bearing deposits:
NOW accounts 87,742 89,532 89,308 85,917
Savings/money market accounts 201,479 208,538 194,197 194,141
Time deposits 364,888 361,653 348,394 314,116
Noninterest-bearing deposits 245,886 228,429 221,033 191,551
Total deposits 899,995 888,152 852,932 785,725
Short-term borrowings (b) 139,635 118,077 105,985 128,547
Long-term borrowings 26,231 26,186 20,462 20,000
Total interest-bearing
liabilities 819,975 803,986 758,346 742,721
Stockholders' equity 91,367 89,730 88,743 87,180
YIELD ANALYSIS:
Federal funds sold and
interest bearing deposits 1.59% 1.29% 0.96% 0.89%
Investment securities and
securities available-
for-sale (FTE) 3.92% 4.07% 4.45% 4.30%
Loans, net of unearned
income (FTE) 6.20% 5.89% 5.68% 5.71%
Total yield on earning
assets (FTE) 5.81% 5.57% 5.38% 5.49%
Interest-bearing deposits
NOW accounts 0.16% 0.15% 0.15% 0.13%
Savings/money market accounts 0.47% 0.41% 0.37% 0.36%
Time deposits 2.48% 2.42% 2.39% 2.39%
Short-term borrowings 1.74% 1.17% 0.77% 0.77%
Long-term borrowings 5.22% 5.09% 5.35% 5.36%
Total cost of interest-
bearing liabilities 1.70% 1.55% 1.46% 1.40%
(a) Core operating performance reflects GAAP-based performance
presented on a fully tax-equivalent basis, exclusive of non-
recurring items, where applicable. There were no non-recurring
items in the periods presented.
(b) Deposits plus customer-related short-term borrowings in the form
of commercial paper and repurchase agreements.
Certain reclassifications of information previously reported have been
made to conform with current presentation.
COLUMBIA BANCORP
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) 887,930 897,860 937,758 877,955
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% 58.09% 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:
Allowance for credit losses to
loans, net of unearned income,
at period-end 1.30% 1.32% 1.31% 1.31%
Net recoveries (charge-offs) $148 $695 $21 $(45)
Annualized net recoveries
(charge-offs) to average loans,
net of unearned income 0.07% 0.36% 0.01% (0.03%)
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 $964 $1,101 $1,475 $970
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%
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)
Commissions earned on 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 818,038 772,604 721,274 676,358
Loans originated for sale (b) 6,891 24,081 19,945 11,872
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 (FTE) 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, where applicable. There were no non-recurring
items in the periods presented.
(b) Deposits plus customer-related short-term borrowings in the form
of commercial paper and repurchase agreements.
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., President and COO,
+1-410-423-8012, or James P. Radick, CFO, +1-410-423-8020, both
of Columbia Bancorp
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