COLUMBIA, Md., April 15 /PRNewswire-FirstCall/ --
Columbia Bancorp (Nasdaq: CBMD), parent company of The Columbia Bank
(the "Bank"), today announced net income for the first quarter of 2003 of
$2.49 million ($.34 per diluted share) compared to $2.34 million ($.32 per
diluted share) for the first quarter 2002, a 6.5% increase.
FIRST QUARTER FINANCIAL HIGHLIGHTS
-- Loans increased $79.8 million or 12.9% since March 31, 2002. Since
December 31, 2002, loans grew $31.5 million, representing an
annualized rate of growth of 18.9%.
-- Average customer funding sources (deposits and other short-term
borrowings from core customers) increased $72.4 million or 9.7%
since the end of the first quarter 2002.
-- Credit quality improved with annualized net charge-offs to average
loans falling from 0.08% during the first quarter of 2002 to 0.03%.
-- The net interest margin (FTE) increased to 4.40% during the first
quarter 2003 from 4.31% during the fourth quarter 2002, despite a
50 basis point reduction in short-term rates on November 8, 2002.
DETAILED REVIEW OF FINANCIAL PERFORMANCE
Total assets at March 31, 2003 were $993.6 million, representing growth of
$129.3 million or 15.0% since March 31, 2002. Loans, net of unearned income,
totaled $696.3 million compared to $616.5 million at March 31, 2002,
representing growth of $79.8 million or 12.9%. Loan growth since the end of
the first quarter 2002 was primarily supported by strength in the Company's
commercial, commercial mortgage, and real estate development and construction
portfolios, which increased 23.5%, 16.7% and 12.2%, respectively. As
previously reported, through the end of 2002, brisk new business activity was
mitigated by substantial payoff activity, especially within the consumer loan
portfolio. While new business development remained strong during the first
quarter 2003, payoff activity continued to impact the consumer portfolio. The
construction and development portfolio increased $22.6 million or 12.1% since
December 31, 2002 on the strength of loan origination activity and reduced
payoff activity resulting from more severe weather conditions than normal.
Customer funding sources, representing deposits plus other short-term
borrowings from core customers, increased 17.2% to $890.2 million at March 31,
2003. Shareholders' equity climbed 11.1% to $78.4 million at March 31, 2003.
Operating performance during the first quarter 2003 was primarily driven
by an increase in net interest income of $865,000 or 10.1%, and an increase in
noninterest income of $308,000, or 18.9%, over the corresponding period in
2002. An increase in average earning assets of $90.2 million or 11.4%, during
the first quarter 2003 compared to the first quarter 2002, mitigated by a
modest decline in the net interest margin from 4.43% to 4.40% for the same
period contributed to the growth in net interest income. Growth in
noninterest income primarily resulted from the continued strength of mortgage
banking activity, with gains on sales of mortgage loans increasing from
$462,000 during the first quarter 2002 to $630,000 during the first quarter
2003, representing growth of 36.4%. The efficiency ratio during the first
quarter improved from 64.3% in 2002 to 62.5% in 2003.
Asset quality remained very strong at March 31, 2003, with non-performing
assets totaling only $970,000. As of March 31, 2003, non-performing assets
represented .10% of total assets. Net charge-offs for the first quarter 2003
totaled $45,000, or .03% of average loans. As a result of the significant
loan growth during the first quarter 2003, the provision for loan losses
increased from $77,000 in 2002 to $305,000 in 2003. At March 31, 2003, the
allowance for credit losses totaled $9.10 million, or 1.31% of loans, compared
to $8.22 million, or $1.33% of loans, at March 31, 2002.
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 an efficiency
ratio which is reported on a fully tax-equivalent basis ("FTE"). This ratio
is a non-GAAP financial measure as defined in Securities and Exchange
Commission ("SEC") Regulation G and Item 10 of SEC Regulation S-K. Management
believes that this measure of operating expense control and efficiency of
operations is a better indicator of operating performance than the GAAP-based
ratio and a better tool for managing noninterest expenses. The GAAP-based
efficiency ratio is calculated as noninterest expense divided by the sum of
net interest income and noninterest income. The efficiency ratio (FTE) adds a
tax-equivalent adjustment to net interest income to reflect the added benefit
of tax-free loans and investments. The non-GAAP efficiency ratio (FTE) was
62.52% and 64.26% for the periods ending March 31, 2003 and 2002,
respectively. The GAAP-based efficiency ratio was 63.18% and 64.65% for the
same periods. 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
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, Columbia Bancorp's actual
future results may differ materially from those expressed herein. Investors
are cautioned not to place undue reliance on any forward-looking statements.
Also, past results of operations may not be indicative of future results.
COLUMBIA BANCORP
Financial Highlights
(Dollars in Thousands Except Per-Share Data)
As of and Three Months Ended
March 31,
2003 2002 % Change
(unaudited)
SUMMARY OF OPERATING RESULTS:
Tax-equivalent interest income $12,493 $12,720 -1.8%
Interest expense 2,912 4,061 -28.3%
Tax-equivalent net interest income 9,581 8,659 10.6%
Tax-equivalent adjustment 120 63 90.5%
Net interest income 9,461 8,596 10.1%
Provision for credit losses 305 77 296.1%
Noninterest income 1,934 1,626 18.9%
Noninterest expense 7,199 6,609 8.9%
Income before taxes 3,891 3,536 10.0%
Income tax provision 1,400 1,198 16.9%
Net income 2,491 2,338 6.5%
PER SHARE DATA:
Net income:
Basic $0.35 $0.33 6.1%
Diluted 0.34 0.32 6.3%
Average number of shares outstanding:
Basic 7,115,612 7,106,850 0.1%
Diluted 7,290,541 7,229,773 0.8%
Book value, at period end $11.02 $9.95 10.8%
Tangible book value, at period end 11.02 9.95 10.8%
Cash dividends declared 0.125 0.11 13.6%
PERIOD END DATA:
Loans, net of unearned income $696,322 $616,528 12.9%
Investment securities and securities
available-for-sale 145,714 181,195 -19.6%
Assets 993,570 864,276 15.0%
Noninterest-bearing deposits 182,421 150,975 20.8%
Interest-bearing deposits 565,106 501,508 12.7%
Total deposits 747,527 652,483 14.6%
Customer funding sources (a) 890,197 759,379 17.2%
Stockholders' equity 78,422 70,606 11.1%
PERFORMANCE RATIOS:
Return on average assets 1.09% 1.13%
Return on average stockholders' equity 12.56% 13.64%
Net interest margin (FTE) 4.40% 4.43%
Efficiency ratio (FTE) (c) 62.52% 64.26%
CAPITAL RATIOS:
Period-end capital to risk-weighted assets:
Tier 1 9.62% 9.93%
Total 10.73% 11.08%
Period-end tier 1 leverage ratio 8.49% 8.41%
ASSET QUALITY:
Net (charge-offs) recoveries $(45) $(119) -62.2%
Nonperforming assets:
Nonaccrual loans 806 1,501 -46.3%
Loans 90+ days past due and accruing 164 323 -49.2%
Other real estate owned -- 1,182 -100.0%
Total nonperforming assets and
past due loans 970 3,006 -67.7%
Allowance for credit losses to loans,
net of unearned income, at period-end 1.31% 1.33%
Nonperforming and past-due loans
to total loans, net of unearned
income, at period-end 0.14% 0.30%
Nonperforming assets and past-due
loans to total assets, at period-end 0.10% 0.35%
Annualized net (charge-offs)
recoveries to average loans,
net of unearned income -0.03% -0.08%
NONINTEREST INCOME AND EXPENSE BREAKDOWN:
Noninterest income:
Fees charged for services $938 $861 8.9%
Gains on sales of mortgage
loans, net of costs 630 462 36.4%
Net income (loss) on other
real estate owned 11 (13) -184.6%
Other noninterest income 355 316 12.3%
1,934 1,626 18.9%
Noninterest expenses:
Salaries and employee benefits 3,970 3,552 11.8%
Occupancy, net 924 827 11.7%
Equipment 448 471 -4.9%
Data processing 410 378 8.5%
Marketing 232 215 7.9%
Other noninterest expenses 1,215 1,166 4.2%
7,199 6,609 8.9%
AVERAGE BALANCES:
Federal funds sold and interest
bearing deposits (b) $43,101 $5,258 719.7%
Investment securities and securities
available-for-sale 151,552 171,778 -11.8%
Loans, net of unearned income 688,231 615,691 11.8%
Total earning assets 882,883 792,727 11.4%
Total assets 926,466 842,674 9.9%
Interest-bearing deposits
NOW accounts 84,388 68,818 22.6%
Savings and money market accounts 186,126 163,272 14.0%
Time deposits 282,201 257,076 9.8%
Total deposits 712,848 625,837 13.9%
Short-term borrowings (b) 106,739 121,310 -12.0%
Long-term borrowings 20,000 20,000 0.0%
Total interest-bearing liabilities 679,454 630,476 7.8%
Stockholders' equity 80,412 69,538 15.6%
YIELD ANALYSIS:
Federal funds sold and interest-
bearing deposits 1.20% 1.70%
Investment securities and securities
available-for-sale (FTE) 4.69% 5.21%
Loans, net of unearned income (FTE) 6.25% 6.91%
Total yield on earning assets (FTE) 5.74% 6.51%
Interest-bearing deposits
NOW accounts 0.19% 0.24%
Savings and money market accounts 0.82% 1.36%
Time deposits 2.90% 4.27%
Short-term borrowings 0.81% 1.66%
Long-term borrowings 5.34% 5.35%
Total cost of interest-bearing
liabilities 1.74% 2.61%
(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 is defined as total noninterest 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
2002 Quarterly Highlights
4Q02 3Q02
SUMMARY OF OPERATING RESULTS:
Tax-equivalent interest income $13,364 $13,490
Interest expense 3,490 3,961
Tax-equivalent net interest income 9,874 9,529
Tax-equivalent adjustment 76 89
Net interest income 9,798 9,440
Provision for credit losses 35 42
Noninterest income 2,979 1,700
Noninterest expense 7,250 6,716
Income before taxes 5,492 4,382
Income tax provision 2,015 1,643
Net income 3,477 2,739
PER SHARE DATA:
Net income:
Basic $0.49 $0.39
Diluted 0.48 0.38
Average number of shares outstanding:
Basic 7,102,582 7,099,666
Diluted 7,284,434 7,271,809
Book value, at period end $10.82 $10.48
Tangible book value, at period end 10.82 10.48
Cash dividends declared 0.125 0.11
PERIOD END DATA:
Loans, net of unearned income $664,826 $664,688
Investment securities and securities
available-for-sale 151,498 178,112
Assets 982,002 990,902
Noninterest-bearing deposits 171,182 169,726
Interest-bearing deposits 559,431 557,675
Total deposits 730,613 727,401
Customer funding sources (a) 878,516 890,807
Stockholders' equity 76,923 74,385
PERFORMANCE RATIOS:
Return on average assets 1.43% 1.17%
Return on average stockholders' equity 17.61% 14.62%
Net interest margin (FTE) 4.31% 4.34%
Efficiency ratio (FTE) (c) 53.41% 59.81%
CAPITAL RATIOS:
Period-end capital to risk-weighted assets:
Tier 1 9.95% 9.50%
Total 11.10% 10.63%
Period-end tier 1 leverage ratio 8.48% 8.00%
ASSET QUALITY:
Net (charge-offs) recoveries $(36) $(61)
Nonperforming assets:
Nonaccrual loans 563 710
Loans 90+ days past due and accruing 168 219
Other real estate owned 178 443
Total nonperforming assets and
past due loans 909 1,372
Allowance for credit losses to loans, net
of unearned income, at period-end 1.33% 1.33%
Nonperforming and past-due loans to
total loans, net of unearned income,
at period-end 0.11% 0.14%
Nonperforming assets and past-due loans
to total assets, at period-end 0.09% 0.14%
Annualized net (charge-offs) recoveries
to average loans, net of unearned income 0.02% -0.04%
NONINTEREST INCOME AND EXPENSE BREAKDOWN:
Noninterest income:
Fees charged for services $953 $886
Gains on sales of mortgage
loans, net of costs 890 410
Gains (losses) on sales of
other assets, net 708 53
Net income on other real estate owned 12 17
Other noninterest income 416 334
Total noninterest income 2,979 1,700
Noninterest expenses:
Salaries and employee benefits 4,011 3,495
Occupancy, net 858 844
Equipment 454 439
Data processing 493 399
Marketing 197 202
Other noninterest expenses 1,237 1,337
Total noninterest expenses 7,250 6,716
AVERAGE BALANCES:
Federal funds sold and interest
bearing deposits $51,423 $21,830
Investment securities and securities
available-for-sale 169,630 176,965
Loans, net of unearned income 688,092 675,066
Total earning assets 909,145 873,861
Total assets 964,230 928,204
Interest-bearing deposits:
NOW accounts 84,025 75,194
Savings and money market accounts 186,087 178,603
Time deposits 290,054 291,825
Total deposits 720,357 700,275
Short-term borrowings (b) 136,391 126,933
Long-term borrowings 20,000 20,000
Total interest-bearing liabilities 716,557 692,555
Stockholders' equity 78,338 74,335
YIELD ANALYSIS:
Federal funds sold and interest
bearing deposits 1.33% 1.69%
Investment securities and securities
available-for-sale 4.77% 4.86%
Loans, net of unearned income (FTE) 6.43% 6.60%
Total yield on earning assets (FTE) 5.83% 6.12%
Interest-bearing deposits
NOW accounts 0.21% 0.24%
Savings and money market accounts 1.02% 1.30%
Time deposits 3.15% 3.53%
Short-term borrowings 1.15% 1.46%
Long-term borrowings 5.34% 5.34%
Total cost of interest-bearing liabilities 1.93% 2.27%
2Q02 1Q02
SUMMARY OF OPERATING RESULTS:
Tax-equivalent interest income $13,294 $12,720
Interest expense 3,967 4,061
Tax-equivalent net interest income 9,326 8,659
Tax-equivalent adjustment 73 63
Net interest income 9,253 8,596
Provision for credit losses 681 77
Noninterest income 1,640 1,626
Noninterest expense 6,591 6,609
Income before taxes 3,621 3,536
Income tax provision 1,304 1,198
Net income 2,317 2,338
PER SHARE DATA:
Net income:
Basic $0.33 $0.33
Diluted 0.32 0.32
Average number of shares outstanding:
Basic 7,097,964 7,106,850
Diluted 7,274,443 7,229,773
Book value, at period end $10.19 $9.95
Tangible book value, at period end 10.19 9.95
Cash dividends declared 0.11 0.11
PERIOD END DATA:
Loans, net of unearned income $666,504 $616,528
Investment securities and securities
available-for-sale 178,040 181,195
Assets 926,166 864,276
Noninterest-bearing deposits 168,737 150,975
Interest-bearing deposits 532,159 501,508
Total deposits 700,896 652,483
Customer funding sources (a) 826,823 759,379
Stockholders' equity 72,345 70,606
PERFORMANCE RATIOS:
Return on average assets 1.06% 1.13%
Return on average stockholders' equity 12.88% 13.64%
Net interest margin (FTE) 4.53% 4.43%
Efficiency ratio (FTE) 60.10% 64.26%
CAPITAL RATIOS:
Period-end capital to risk-weighted assets:
Tier 1 9.43% 9.93%
Total 10.59% 11.08%
Period-end tier 1 leverage ratio 8.24% 8.41%
ASSET QUALITY:
Net (charge-offs) recoveries $(42) $119
Nonperforming assets:
Nonaccrual loans 1,126 1,501
Loans 90+ days past due and accruing 242 323
Other real estate owned 619 1,182
Total nonperforming assets and
past due loans 1,987 3,006
Allowance for credit losses to loans, net
of unearned income, at period-end 1.33% 1.33%
Nonperforming and past-due loans to
total loans, net of unearned income,
at period-end 0.21% 0.30%
Nonperforming assets and past-due loans
to total assets, at period-end 0.21% 0.35%
Annualized net (charge-offs) recoveries
to average loans, net of unearned income -0.03% 0.08%
NONINTEREST INCOME AND EXPENSE BREAKDOWN:
Noninterest income:
Fees charged for services $870 $861
Gains on sales of mortgage
loans, net of costs 336 462
Gains (losses) on sales of
other assets, net -- (4)
Net income on other real estate owned 94 (13)
Other noninterest income 340 320
Total noninterest income 1,640 1,626
Noninterest expenses:
Salaries and employee benefits 3,726 3,552
Occupancy, net 812 826
Equipment 488 471
Data processing 385 379
Marketing 273 215
Other noninterest expenses 907 1,166
Total noninterest expenses 6,591 6,609
AVERAGE BALANCES:
Federal funds sold and interest
bearing deposits $6,046 $5,258
Investment securities and securities
available-for-sale 178,178 171,778
Loans, net of unearned income 641,943 615,691
Total earning assets 826,167 792,727
Total assets 877,436 842,674
Interest-bearing deposits:
NOW accounts 71,863 68,818
Savings and money market accounts 167,238 163,272
Time deposits 275,511 257,076
Total deposits 660,967 625,837
Short-term borrowings (b) 120,366 121,310
Long-term borrowings 20,000 20,000
Total interest-bearing liabilities 654,978 630,476
Stockholders' equity 72,173 69,538
YIELD ANALYSIS:
Federal funds sold and interest
bearing deposits 1.79% 1.70%
Investment securities and securities
available-for-sale 5.10% 5.21%
Loans, net of unearned income (FTE) 6.87% 6.91%
Total yield on earning assets (FTE) 6.45% 6.51%
Interest-bearing deposits
NOW accounts 0.24% 0.24%
Savings and money market accounts 1.38% 1.36%
Time deposits 3.76% 4.27%
Short-term borrowings 1.67% 1.66%
Long-term borrowings 5.33% 5.35%
Total cost of interest-bearing liabilities 2.43% 2.61%
(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 is defined as total noninterest 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)
March 31, March 31, December 31,
2003 2002 2002
(unaudited) (audited)
Assets
Cash and due from banks $44,107 $35,714 $37,909
Interest-bearing deposits with banks 216 221 214
Federal funds sold 78,100 7,943 101,248
Investment securities 105,300 136,108 112,545
Securities available-for-sale 40,414 45,087 38,953
Residential mortgage loans
originated for sale 14,693 2,973 10,515
Loan receivables:
Commercial and industrial 204,419 165,465 198,223
Real estate development and
construction 209,647 186,927 187,063
Real estate mortgage:
Residential 15,888 13,846 13,779
Commercial 121,433 104,069 122,458
Retail, principally second
mortgage loans and residential
equity lines of credit 143,418 144,454 143,359
Other 2,071 2,386 388
Total loans 696,876 617,147 665,270
Less: unearned income, net of
origination costs (554) (619) (444)
allowance for credit losses (9,098) (8,220) (8,839)
Total loans, net 687,224 608,308 655,987
Other real estate owned -- 1,182 178
Property and equipment, net 6,992 10,048 6,974
Prepaid expenses and other assets 16,524 16,692 17,479
Total assets $993,570 $864,276 $982,002
Liabilities
Deposits:
Noninterest-bearing $182,421 $150,975 $171,182
Interest-bearing 565,106 501,508 559,431
Total deposits 747,527 652,483 730,613
Short-term borrowings 142,670 116,896 147,903
Long-term borrowings 20,000 20,000 20,000
Accrued expenses and other liabilities 4,951 4,291 6,563
Total liabilities 915,148 793,670 905,079
Stockholders' equity
Common stock, $.01 par value per share;
authorized 10,000,000 shares; outstanding
7,116,369, 7,097,111 and 7,109,607 shares,
respectively 71 71 71
Additional paid-in capital 47,538 47,373 47,439
Retained earnings 31,009 23,317 29,408
Accumulated other comprehensive income (196) (155) 5
Total stockholders' equity 78,422 70,606 76,923
Total liabilities and
stockholders' equity $993,570 $864,276 $982,002
Certain reclassifications of information previously reported have been made to
conform with current presentation.
COLUMBIA BANCORP
Consolidated Statements of Income and Comprehensive Income
(Dollars in Thousands, Except Per-Share Data)
Three Months Ended
March 31,
2003 2002
(unaudited)
Interest income:
Loans $10,512 $10,448
Investment securities 1,733 2,187
Federal funds sold and interest-bearing
deposits with banks 128 22
Total interest income 12,373 12,657
Interest expense:
Deposits 2,436 3,299
Borrowings 476 762
Total interest expense 2,912 4,061
Net interest income 9,461 8,596
Provision for credit losses 305 77
Net interest income after provision
for credit losses 9,156 8,519
Noninterest income:
Fees charged for services 938 861
Gains on sales of mortgage loans,
net of costs 630 462
Net income (loss) on other real estate owned 11 (13)
Other 355 316
Total noninterest income 1,934 1,626
Noninterest expense:
Salaries and employee benefits 3,970 3,552
Occupancy, net 924 827
Equipment 448 471
Data processing 410 378
Marketing 232 215
Cash management services 141 139
Professional fees 258 165
Deposit insurance 49 45
Other 767 817
Total noninterest expense 7,199 6,609
Income before income taxes 3,891 3,536
Income tax provision 1,400 1,198
Net income 2,491 2,338
Other comprehensive income, net of tax -
unrealized net gain (loss) on securities
available-for-sale (201) (159)
Comprehensive income $2,290 $2,179
Per common share data:
Net income: Basic $0.35 $0.33
Diluted 0.34 0.32
Cash dividends declared $0.125 $0.11
Certain reclassifications of information previously reported have been made to
conform with current presentation.
SOURCE Columbia Bancorp
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Related links:
http://www.columbank.com
Company News On-Call:
http://www.prnewswire.com/comp/127921.html
CONTACT:
John A. Scaldara, Jr., CFO of Columbia
Bancorp, +1-410-465-4800
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