COLUMBIA, Md., April 16 /PRNewswire-FirstCall/ --
Columbia Bancorp (Nasdaq: CBMD), parent company of The Columbia Bank,
announced 2002 first quarter earnings of $2.34 million, or $.32 per diluted
common share, compared to $2.16 million, or $.30 per diluted common share, for
the same period of 2001, representing an increase of 8.2%. Return on average
equity and return on average assets were 13.64% and 1.13%, respectively, for
the three months ended March 31, 2002, compared to 13.39% and 1.09% for the
same period in 2001.
Asset quality improved significantly during the first quarter of 2002,
with total nonperforming assets and past due loans decreasing $5.24 million,
or 63.6%, compared to March 31, 2001. Nonperforming assets and past due loans
totaled $3.01 million, or .35% of total assets, at March 31, 2002 compared to
$8.25 million, or .97% of total assets, at March 31, 2001. The significant
decline in nonperforming assets and past due loans reflected successful
continuing efforts to resolve a previously reported significant nonperforming
commercial loan relationship. During the first quarter of 2002, these efforts
yielded the collection of $1.75 million in principal outstanding and the
recovery of $255,000 previously charged-off. As a result, the Company
recorded net recoveries of $118,000 during the first quarter, representing
.08% of loans outstanding. The allowance for loan losses remained at 1.33% of
loans outstanding at March 31, 2002.
Loans grew to $616.53 million at March 31, 2002, representing strong
annual growth of 13.6%. Noninterest-bearing deposits increased 21.4% to
$150.98 million since March 31, 2001, reflecting continued success in the
development of core banking relationships. Total customer funding sources,
representing deposits and short-term borrowings from customers in the form of
commercial paper and repurchase agreements, however, declined from $762.69
million at March 31, 2001 to $759.38 million at March 31, 2002. Growth in
noninterest-bearing deposits was mitigated by a decline in certificates of
deposit of $19.30 million, resulting from the Company's conservative pricing
strategy in response to the extraordinary interest rate environment, and by a
decline in balances maintained by several title company customers. Total
assets and stockholders' equity reached record levels as of March 21, 2002,
totaling $864.28 million and $70.61 million, respectively.
Operating performance continued to be heavily influenced by the interest
rate environment, with net interest income declining from $9.00 million during
the first quarter of 2001 to $8.60 million during the first quarter of 2002,
despite an increase in average earning assets of 5.7%. The 4.75% drop in
short-term interest rates recorded throughout 2001 was reflected in a decline
in the Company's net interest margin from 4.89% during the first quarter 2001
to 4.43% during the same period in 2002. A more stable interest rate
environment and the continued repricing of the Company's certificate of
deposit portfolio during the first quarter of 2002 led to an improvement in
the net interest margin from 4.27% during the fourth quarter of 2001 to 4.43%
in the current quarter. While the historically low interest rate environment
has pressured the Company's net interest margin, it also contributed to a
247.4% increase in mortgage banking revenue from $133,000 during the first
quarter of 2001 to $462,000 in 2002.
Other contributing factors to the Company's strong financial performance
during the first quarter of 2002 included an increase of 38.9% in fees charged
for services from $620,000 to $861,000 and a decrease of $70,000 in total
noninterest expense, reflecting continuing cost containment initiatives. In
addition, as reported in the Form 10-K for the year ended December 31, 2001,
the Company settled a significant litigation matter, which resulted in a
decline in professional fees from $269,000 in the first quarter 2001 to
$165,000 in 2002.
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
Financial Highlights
(Dollars in Thousands Except Per-Share Data)
As of and Three Months Ended
March 31,
2002 2001 % Change
(unaudited)
SUMMARY OF OPERATING RESULTS:
Net interest income $8,596 $9,001 -4.5%
Provision for credit losses 77 300 -74.3%
Noninterest income 1,626 1,168 39.2%
Noninterest expense 6,609 6,679 -1.0%
Income tax provision 1,198 1,030 16.3%
Net income 2,338 2,160 8.2%
PER SHARE DATA:
Net income :
Basic $0.33 $0.30 10.0%
Diluted 0.32 0.30 6.7%
Average number of shares
outstanding:
Basic 7,106,850 7,153,744 -0.7%
Diluted 7,229,773 7,211,027 0.3%
Book value, at period end $9.95 $9.28 7.2%
Tangible book value, at period end 9.95 9.28 7.2%
Cash dividends declared 0.11 0.10 10.0%
PERIOD END DATA:
Assets $864,276 $854,959 1.1%
Deposits 652,483 682,135 -4.3%
Customer funding sources (a) 759,379 762,686 -0.4%
Loans, net of unearned income 616,528 542,698 13.6%
Investment securities and
securities available-for-sale 181,195 157,327 15.2%
Stockholders' equity 70,606 66,507 6.2%
PERFORMANCE RATIOS:
Return on average assets 1.13% 1.09%
Return on average stockholders'
equity 13.64% 13.39%
Net interest margin (FTE) 4.43% 4.89%
Efficiency ratio (FTE) 64.26% 65.44%
CAPITAL RATIOS:
Period-end capital to risk-
weighted assets:
Tier 1 9.93% 10.38%
Total 11.08% 11.51%
Period-end tier 1 leverage ratio 8.41% 8.28%
ASSET QUALITY:
Net charge-offs (recoveries) $(118) $108 -209.3%
Nonperforming assets:
Nonaccrual loans 1,501 4,959 -69.7%
Restructured loans -- 285 0.0%
Loans 90+ days past due and
accruing 323 270 19.6%
Other real estate owned 1,182 2,738 -56.8%
Total nonperforming
assets and past due loans 3,006 8,252 -63.6%
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 0.30% 1.02%
Nonperforming assets and past-due
loans to total assets,
at period-end 0.35% 0.97%
Annualized net charge-offs
(recoveries) to average
loans, net of unearned
income -0.08% 0.08%
AVERAGE BALANCES:
Federal funds sold (b) $5,039 $18,681 -73.0%
Investment securities and
securities
available-for-sale 171,778 181,762 -5.5%
Loans, net of unearned income 612,456 546,002 12.2%
Loans originated for sale (b) 3,235 3,124 3.6%
Total earning assets 792,508 749,569 5.7%
Total assets 842,674 802,931 4.9%
Interest-bearing deposits
NOW accounts 68,818 59,837 15.0%
Savings and money market
accounts 163,272 175,718 -7.1%
Time deposits 257,076 273,418 -6.0%
Total deposits 625,837 627,189 -0.2%
Short-term borrowings (b) 121,310 82,616 46.8%
Long-term borrowings 20,000 20,000 0.0%
Total interest-bearing
liabilities 630,476 611,589 3.1%
Stockholders' equity 69,538 65,437 6.3%
YIELD ANALYSIS:
Federal funds sold 1.61% 5.28%
Investment securities and
securities
available-for-sale 5.21% 6.76%
Loans, net of unearned income 6.91% 9.34%
Total yield on earning assets 6.51% 8.61%
Interest-bearing deposits
NOW accounts 0.24% 0.64%
Savings and money market
accounts 1.36% 3.32%
Time deposits 4.27% 6.06%
Short-term borrowings 1.66% 4.89%
Long-term borrowings 5.35% 5.27%
Total cost of interest-bearing
liabilities 2.61% 4.56%
(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.
COLUMBIA BANCORP
Consolidated Statements of Condition
(Dollars in Thousands)
March 31, March 31, December 31,
2002 2001 2001
(unaudited) (audited)
Assets
Cash and due from banks $35,935 $34,198 $39,653
Federal funds sold 7,943 88,229 6,277
Investment securities 136,108 99,686 121,689
Securities available-for-sale 45,087 57,641 48,359
Residential mortgage loans originated
for sale 2,973 8,695 11,411
Loan receivables:
Commercial 165,465 155,164 153,782
Real estate development and
construction 186,927 137,769 174,091
Real estate mortgage:
Residential 13,846 18,537 15,648
Commercial 104,069 89,374 109,975
Retail, principally second
mortgage loans and residential
equity lines of credit 144,454 139,836 146,379
Credit card 2,184 2,340 2,389
Other 202 154 463
Total loans 617,147 543,174 602,727
Less: Unearned income, net of
origination costs (619) (476) (640)
Allowance for credit
losses (8,220) (7,218) (8,024)
Total loans, net 608,308 535,480 594,063
Other real estate owned 1,182 2,738 1,187
Property and equipment, net 10,048 11,025 10,400
Prepaid expenses and other assets 16,692 17,267 16,610
Total assets $864,276 $854,959 $849,649
Liabilities
Deposits:
Noninterest-bearing $150,975 $124,382 $145,844
Interest-bearing 501,508 557,753 492,157
Total deposits 652,483 682,135 638,001
Short-term borrowings 116,896 80,551 117,352
Long-term borrowings 20,000 20,000 20,000
Accrued expenses and other
liabilities 4,291 5,766 4,934
Total liabilities 793,670 788,452 780,287
Stockholders' equity
Common stock, $.01 par value per
share; authorized
10,000,000 shares;
outstanding 7,097,111
7,164,964 and 7,105,238 shares,
respectively 71 72 71
Additional paid-in capital 47,373 48,434 47,520
Retained earnings 23,317 17,956 21,768
Accumulated other comprehensive
income (155) 45 3
Total stockholders' equity 70,606 66,507 69,362
Total liabilities and
stockholders' equity $864,276 $854,959 $849,649
COLUMBIA BANCORP
Consolidated Statements of Income and Comprehensive Income
(Dollars in Thousands Except Per-Share Data)
Three Months Ended
March 31,
2002 2001
(unaudited)
Interest income:
Loans $10,448 $12,603
Investment securities 2,189 3,030
Federal funds sold 20 243
Total interest income 12,657 15,876
Interest expense:
Deposits 3,299 5,618
Borrowings 762 1,257
Total interest expense 4,061 6,875
Net interest income 8,596 9,001
Provision for credit losses 77 300
Net interest income after
provision
for credit losses 8,519 8,701
Noninterest income:
Fees charged for services 861 620
Gains on sales of mortgage loans,
net of costs 462 133
Net income (expense) on other
real estate owned (13) 43
Other 316 372
Total noninterest income 1,626 1,168
Noninterest expense:
Salaries and employee benefits 3,552 3,515
Occupancy, net 846 888
Equipment 471 556
Data processing 359 290
Marketing 215 116
Cash management services 139 118
Professional fees 165 269
Deposit insurance 45 45
Other 817 882
Total noninterest expense 6,609 6,679
Income before income taxes 3,536 3,190
Income tax provision 1,198 1,030
Net income 2,338 2,160
Other comprehensive income, net of
tax - unrealized net gain (loss) on
securities available-for-sale (159) 486
Comprehensive income $2,179 $2,646
Per common share data:
Net income: Basic $0.33 $0.30
Diluted 0.32 0.30
Cash dividends declared $0.11 $0.10
SOURCE Columbia Bancorp
 back to top
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
|
