COLUMBIA, Md., April 25 /PRNewswire/ -- Columbia Bancorp (Nasdaq: CBMD),
parent company of The Columbia Bank, announced first quarter core earnings of
$1.63 million, or $.23 per diluted share, compared to $1.56 million, or $.21
per diluted share, for the same period in 1999. Reported earnings for the
first quarter were $56,000 and reflect pretax one-time merger-related charges
of $2.21 million recorded in connection with the completion of the merger of
Suburban Bancshares into Columbia Bancorp effective March 8, 2000. All
results have been restated to reflect the merger, which was accounted for as a
pooling of interests.
Returns on average equity for the first quarter 2000 (before merger-
related charges) and 1999 were 10.7% and 10.6%, respectively. Returns on
average assets for the first quarter 2000 (before merger-related charges) and
1999 were .93% and .98%, respectively.
Total assets at the end of the first quarter 2000 grew to a record high
of $716.5 million, representing 6.7% growth on a year-to-year basis and 3.7%,
or 14.6% annualized, since December 31, 1999. Loans and lease receivables,
net of unearned income, totaled $469.2 million at the end of the first quarter
2000 and represented growth on a year-to-year basis of 15.1%. Growth in the
loan portfolio continued to be fueled by strong commercial lending activity.
Deposits totaled $579.1 million at March 31, 2000 and represented growth
of 5.7% on a year-to-year basis and 4.4%, or 17.7% annualized, since December
31, 1999.
Continued strong core operating performance during the first quarter of
2000 was supported by growth in net interest income of $1.14 million or 16.7%
over the same period in 1999. The improvement in net interest income resulted
from strong loan growth and an improvement in the net interest margin from
4.62% during the first quarter 1999 to 4.99% during the first quarter 2000.
Noninterest income declined $351,000 during the quarter, as compared to
the same period in 1999, primarily as a result of a decline in mortgage
banking activity. Noninterest expense, exclusive of merger-related charges,
increased $600,000 or 11.0% as compared to the first quarter of 1999. The
increase was a result of continued expansion of the branch network with the
opening of two full-service branches in Timonium and Beltsville, Maryland and
the relocation of a third branch since March 31, 1999, and continued growth in
general business activity.
As noted above, on March 8, 2000, Columbia Bancorp completed the merger
of Suburban Bancshares with and into Columbia Bancorp. The merger added
approximately $220 million in assets and increased the Company's branch
network from 15 branches to 23 branches, located in Howard, Baltimore, Prince
George's and Montgomery counties and Baltimore City. Mr. John M. Bond, Jr.,
President and CEO of Columbia Bancorp commented, "The merger with Suburban
Bancshares provides new customers, new markets, an expanded product line and
ultimately a significantly enhanced franchise opportunity in the heart of the
Baltimore/Washington Corridor."
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. Columbia Bancorp's Common Stock is traded on the National
Market tier of The Nasdaq Stock Market(SM) under the symbol "CBMD".
COLUMBIA BANCORP
Financial Highlights
(Dollars in Thousands Except Per-Share Data)
As of and Three Months Ended
March 31,
2000 1999 % Change
(unaudited)
SUMMARY OF OPERATING RESULTS:
Net interest income $7,979 6,836 16.7%
Provision for credit losses 271 210 29.0%
Noninterest income 915 1,266 -27.7%
Noninterest expense 8,292 5,479 51.3%
Income tax provision 275 857 -67.9%
Net income 56 1,556 -96.4%
Net income before
merger-related costs 1,628 1,556 4.6%
PER SHARE DATA:
Net income (a):
Basic $0.01 0.22 -95.5%
Diluted 0.01 0.21 -95.2%
Net income before
merger-related costs:
Basic 0.23 na na
Diluted 0.23 na na
Average number of
shares outstanding:
Basic 7,153,905 7,188,312 -0.5%
Diluted 7,198,924 7,268,652 -1.0%
Tangible book value,
at period end $8.42 8.27 1.8%
Cash dividends declared (b) $0.09 0.05 78.1%
PERIOD END DATA:
Assets $716,544 671,600 6.7%
Deposits 579,096 547,621 5.7%
Loans and leases,
net of unearned income 469,205 407,686 15.1%
Investment securities
and securities
available-for-sale 158,386 137,336 15.3%
Stockholders' equity 60,267 59,331 1.6%
PERFORMANCE RATIOS:
Return on average assets 0.03% 0.98%
Return on average assets
before merger-related costs 0.93% 0.98%
Return on average
stockholders' equity 0.37% 10.63%
Return on average
stockholders' equity before
merger-related costs 10.66% 10.63%
Net interest margin 4.99% 4.62%
CAPITAL AND ASSET QUALITY:
Period-end capital to
period-end
risk-weighted assets:
Tier 1 11.38% 12.49%
Total 12.60% 13.73%
Period-end Tier 1
leverage ratio 8.36% 8.90%
Allowance for credit losses
to loans, net of unearned
income, at period-end 1.33% 1.39%
Nonperforming and past-due
loans to total loans,
net of unearned income,
at period-end 0.22% 0.43%
Nonperforming assets and
past-due loans to
total assets,
at period-end 0.68% 0.88%
Annualized net charge-offs
to average loans,
net of unearned income 0.08% 0.02%
AVERAGE BALANCES:
Federal funds sold $22,317 47,855 -53.4% (c)
Investment securities
and securities
available-for-sale 158,049 132,204 19.5%
Loans and leases,
net of unearned income 460,695 403,970 14.0%
Loans originated for sale 2,474 10,675 -76.8%
Total earning assets 643,535 594,704 8.2%
Total assets 701,771 645,291 8.8%
lnterest-bearing deposits 440,767 429,939 2.5%
Short-term borrowings 56,427 35,301 59.8% (c)
Long-term borrowings 20,000 20,000 0.0%
Stockholders' equity 61,432 59,337 3.5%
(a) Pro-forma net income per share, basic and diluted, for the three
months ended March 31, 1999 represents historical net income divided
by the number of shares of Columbia Bancorp common stock which would
have been issued and outstanding had the merger taken place on March
31, 1999, including the effects of dilutive securities in the case
of diluted pro-forma income per common share, adjusted based on the
conversion factor of .2338.
(b) Pro-forma cash dividends per share declared during the quarter ended
March 31, 1999 is calculated by dividing the historical amount of
dividends declared by Columbia Bancorp (no dividends were declared
by Suburban Bancshares during the period presented) by the sum of
(1) the total number of shares of Columbia Bancorp common stock
outstanding at such date and (2) the total number of shares of
Suburban Bancshares common stock outstanding at such date multiplied
by the conversion factor of .2338.
(c) 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,
2000 1999 1999
(unaudited)
Assets
Cash and due from banks $30,608 $27,390 $37,108
Federal funds sold 30,545 71,013 22,507
Investment securities 95,409 75,205 93,412
Securities available-for-sale 62,977 62,131 57,492
Residential mortgage loans
originated for sale 2,359 3,921 2,707
Loans and leases,
net of unearned income 469,205 407,686 452,432
Less: allowance for
credit losses 6,252 5,686 6,071
Loans and leases, net 462,953 402,000 446,361
Other real estate owned 3,867 4,157 4,035
Property and equipment, net 11,148 10,079 10,473
Prepaid expenses and
other assets 16,678 15,704 17,142
Total assets $716,544 $671,600 $691,237
Liabilities
Deposits:
Noninterest-bearing $123,859 $101,060 $120,165
Interest-bearing 455,237 446,561 434,402
Total deposits 579,096 547,621 554,567
Short-term borrowings 49,265 40,565 51,728
Long-term borrowings 20,000 20,000 20,000
Accrued expenses and
other liabilities 7,916 4,083 3,656
Total liabilities 656,277 612,269 629,951
Stockholders' equity
Common stock, $.01 par value per share; authorized
10,000,000 shares; outstanding 7,155,233,
7,165,408 and 7,150,371 shares, respectively
71 71 71
Additional paid-in capital 48,450 48,729 48,424
Retained earnings 13,350 10,556 13,938
Accumulated other
comprehensive income (1,604) (25) (1,147)
Total stockholders' equity 60,267 59,331 61,286
Total liabilities and
stockholders' equity $716,544 $671,600 $691,237
COLUMBIA BANCORP
Consolidated Statements of Income and Comprehensive Income
(Dollars in Thousands Except Per-Share Data)
Three Months Ended
March 31,
2000 1999
(unaudited)
Interest income:
Loans and leases $10,593 9,124
Investment securities 2,473 1,945
Federal funds sold 219 528
Total interest income 13,285 11,597
Interest expense:
Deposits 4,271 4,161
Borrowings 1,035 600
Total interest expense 5,306 4,761
Net interest income 7,979 6,836
Provision for credit losses 271 210
Net interest income after provision
for credit losses 7,708 6,626
Noninterest income:
Fees charged for services 544 524
Gains on sales of mortgage loans, net of costs 91 452
Other 280 290
Total noninterest income 915 1,266
Noninterest expense:
Salaries and employee benefits 3,130 2,785
Occupancy, net 859 717
Equipment 461 384
Data processing 392 377
Marketing 174 148
Cash management services 96 68
Professional fees 158 91
Net expense (income) on other real estate owned (12) 55
Deposit insurance 42 43
Merger-related expenses 2,213 --
Other 779 811
Total noninterest expense 8,292 5,479
Income before income taxes 331 2,413
Income tax provision 275 857
Net income 56 1,556
Other comprehensive income, net of tax -
unrealized net loss on securities
available-for-sale (457) (290)
Comprehensive income $(401) 1,266
Per common share data:
Net income: Basic $0.01 0.22
Diluted 0.01 0.21
Cash dividends declared $0.09 0.05
SOURCE Columbia Bancorp
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http://www.columbank.com
Company News On-Call:
http://www.prnewswire.com/comp/127921.html or fax,
800-758-5804, ext. 127921
CONTACT:
John A. Scaldara, Jr., CFO, of Columbia
Bancorp, 410-465-4800
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