COLUMBIA, Md., July 16 /PRNewswire-FirstCall/ --
Columbia Bancorp (Nasdaq: CBMD), parent company of The Columbia Bank (the
"Bank"), today announced net income for the second quarter of 2002 of
$2.32 million ($.32 per diluted share) compared to $1.94 million ($.27 per
diluted share) for the same period in 2001, representing a 19.6% increase.
Return on average equity was 12.9% for the second quarter 2002 and 11.6% for
the corresponding period in 2001. Return on average assets was 1.06% for the
second quarter 2002 and .95% for the same period in 2001. Net income for the
six months ended June 30, 2002 totaled $4.66 million ($.64 per diluted share)
compared to $4.10 million ($.57 per diluted share), representing an increase
of 13.6%. Returns on average equity for the six months ended June 30, 2002
and 2001 were 13.3% and 12.5%, respectively. Returns on average assets were
1.09% and 1.02%, respectively.
Assets grew to a record level, totaling $926.17 million at June 30, 2002
and representing an increase of 11.2% since June 30, 2001. Also during the
period since June 30, 2001, total loans grew 15.6% to $666.50 million,
customer funding sources, representing deposits plus other short-term
borrowings from customers, grew 12.2% to $826.82 million and stockholders'
equity increased 7.1% to $72.35 million.
Second quarter performance included an increase in operating income,
representing net interest income and non-interest income, from $9.94 million
in 2001 to $10.89 million in 2002, or 9.6%. Net interest income grew
$741,000, or 8.7%, during the second quarter 2002 as compared to the second
quarter 2001, consistent with growth in average earning assets of
$65.0 million or 8.5% during the same periods. The net interest margin during
the second quarter 2002 was 4.53%, improving slightly compared to 4.52% for
the prior year period. Non-interest income improved $210,000 or 14.7% during
the second quarter 2002 when compared to the same period in 2001 as a result
of increases in fees charged for services of $147,000 and gains on the sales
of mortgage loans of $76,000. While operating income grew 9.6% when comparing
the second quarter 2002 to the same period in 2001, non-interest expense
increased only 1.7%, or $110,000. Non-interest expense during the second
quarter 2002 was reduced by the recovery of professional fees totaling
$307,000, resulting from the settlement of previously reported litigation and
by collection of expenses associated with prior foreclosure actions.
Exclusive of these items, non-interest expense would have increased 6.4% or
$417,000.
Asset quality remained strong at June 30, 2002, with non-performing assets
and past-due loans declining from $6.97 million at June 30, 2001 to $1.99
million at June 30, 2002, a 71.5% decline. As of June 30, 2002, non-
performing assets represented .21% of total assets. Net charge-offs during
the three months ended June 30, 2002 totaled $42,000 or .03% of average loans
compared to $79,000 or .06% during the same period in 2001. For the six
months ended June 30, 2002, the Company recorded net recoveries of $76,000 or
.02% of average loans as compared to net charge-offs of $187,000 or .07%
during the same period of 2001. At June 30, 2002, the Allowance for credit
losses totaled $8.86 million or 1.33% of loans.
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-three 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 Six Months Ended
June 30,
2002 2001 % Change
(unaudited)
SUMMARY OF OPERATING RESULTS:
Net interest income $17,849 $17,513 1.9%
Provision for credit losses 758 828 -8.5%
Noninterest income 3,266 2,598 25.7%
Noninterest expense 13,200 13,160 0.3%
Income tax provision 2,502 2,025 23.6%
Net income 4,655 4,098 13.6%
PER SHARE DATA:
Net income :
Basic $0.66 $0.57 15.8%
Diluted 0.64 0.57 12.3%
Average number of shares
outstanding:
Basic 7,097,742 7,154,762 -0.8%
Diluted 7,247,591 7,209,409 0.5%
Book value, at period end $10.19 $9.45 7.8%
Tangible book value, at period
end 10.19 9.45 7.8%
Cash dividends declared 0.22 0.20 10.0%
PERIOD END DATA:
Assets $926,166 $832,831 11.2%
Deposits 700,896 643,647 8.9%
Customer funding sources (a) 826,823 736,960 12.2%
Loans, net of unearned income 666,504 576,440 15.6%
Investment securities and
securities
available-for-sale 178,040 137,954 29.1%
Stockholders' equity 72,345 67,542 7.1%
PERFORMANCE RATIOS:
Return on average assets 1.09% 1.02%
Return on average stockholders'
equity 13.25% 12.48%
Net interest margin (FTE) 4.48% 4.71%
Efficiency ratio (FTE) 62.11% 65.07%
CAPITAL RATIOS:
Period-end capital to risk-
weighted assets:
Tier 1 9.43% 10.13%
Total 10.67% 11.28%
Period-end tier 1 leverage ratio 8.41% 8.26%
ASSET QUALITY:
Net charge-offs $(76) $187 -140.6%
Nonperforming assets:
Nonaccrual loans 1,126 4,228 -73.4%
Restructured loans - 254 0.0%
Loans 90+ days past due and
accruing 242 472 -48.7%
Other real estate owned 619 2,018 -69.3%
Total nonperforming
assets and past due
loans 1,987 6,972 -71.5%
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% 0.86%
Nonperforming assets and past-due
loans
to total assets, at period-
end 0.21% 0.84%
Annualized net charge-offs to
average
loans, net of unearned
income -0.02% 0.07%
AVERAGE BALANCES:
Federal funds sold (b) $5,438 $28,871 -81.2%
Investment securities and
securities
available-for-sale 174,996 166,854 4.9%
Loans, net of unearned income 626,071 553,978 13.0%
Loans originated for sale (b) 2,818 5,586 -49.6%
Total earning assets 809,323 755,289 7.2%
Total assets 860,151 809,700 6.2%
lnterest-bearing deposits
NOW accounts 70,348 61,021 15.3%
Savings and money market
accounts 165,266 180,111 -8.2%
Time deposits 266,345 272,517 -2.3%
Total deposits 643,399 634,119 1.5%
Short-term borrowings (b) 120,835 80,699 49.7%
Long-term borrowings 20,000 20,000 0.0%
Total interest-bearing
liabilities 642,794 614,348 4.6%
Stockholders' equity 70,863 66,236 7.0%
YIELD ANALYSIS:
Federal funds sold 1.63% 4.81%
Investment securities and
securities
available-for-sale 5.16% 6.62%
Loans, net of unearned income
(FTE) 6.89% 8.89%
Total yield on earning assets
(FTE) 6.48% 8.23%
lnterest-bearing deposits
NOW accounts 0.24% 0.57%
Savings and money market
accounts 1.37% 3.04%
Time deposits 4.01% 6.01%
Short-term borrowings 1.67% 4.22%
Long-term borrowings 5.34% 5.26%
Total cost of interest-bearing
liabilities 2.52% 4.34%
(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
Financial Highlights
(Dollars in Thousands Except Per-Share Data)
As of and Three Months Ended
June 30,
2002 2001 % Change
(unaudited)
SUMMARY OF OPERATING RESULTS:
Net interest income $9,253 $8,512 8.7%
Provision for credit losses 681 528 29.0%
Noninterest income 1,640 1,430 14.7%
Noninterest expense 6,591 6,481 1.7%
Income tax provision 1,304 995 31.1%
Net income 2,317 1,938 19.6%
PER SHARE DATA:
Net income :
Basic $0.33 $0.27 22.2%
Diluted 0.32 0.27 18.5%
Average number of shares
outstanding:
Basic 7,097,964 7,155,768 -0.8%
Diluted 7,274,443 7,207,807 0.9%
Book value, at period end na na na
Tangible book value, at period
end na na na
Cash dividends declared $0.11 $0.10 10.0%
PERIOD END DATA:
Assets
Deposits
Customer funding sources (a)
Loans, net of unearned income
Investment securities and
securities
available-for-sale
Stockholders' equity
PERFORMANCE RATIOS:
Return on average assets 1.06% 0.95%
Return on average stockholders'
equity 12.88% 11.60%
Net interest margin (FTE) 4.53% 4.52%
Efficiency ratio (FTE) 60.10% 64.83%
CAPITAL RATIOS:
Period-end capital to risk-
weighted assets:
Tier 1
Total
Period-end tier 1 leverage ratio
ASSET QUALITY:
Net charge-offs $42 $79 -46.8%
Nonperforming assets:
Nonaccrual loans
Restructured loans
Loans 90+ days past due and
accruing
Other real estate owned
Total nonperforming
assets and past due
loans
Allowance for credit losses to
loans, net
of unearned income, at
period-end
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
Annualized net charge-offs to
average
loans, net of unearned
income 0.03% 0.06%
AVERAGE BALANCES:
Federal funds sold (b) $5,832 $38,949 -85.0%
Investment securities and
securities
available-for-sale 178,178 152,110 17.1%
Loans, net of unearned income 639,537 561,865 13.8%
Loans originated for sale (b) 2,406 8,022 -70.0%
Total earning assets 825,953 760,946 8.5%
Total assets 877,436 816,395 7.5%
lnterest-bearing deposits
NOW accounts 71,863 62,192 15.6%
Savings and money market
accounts 167,238 184,456 -9.3%
Time deposits 275,511 271,626 1.4%
Total deposits 660,967 640,973 3.1%
Short-term borrowings (b) 120,366 78,804 52.7%
Long-term borrowings 20,000 20,000 0.0%
Total interest-bearing
liabilities 654,978 617,078 6.1%
Stockholders' equity 72,173 67,025 7.7%
YIELD ANALYSIS:
Federal funds sold 1.65% 4.58%
Investment securities and
securities
available-for-sale 5.11% 6.41%
Loans, net of unearned income
(FTE) 6.87% 8.47%
Total yield on earning assets
(FTE) 6.46% 7.86%
lnterest-bearing deposits
NOW accounts 0.24% 0.50%
Savings and money market
accounts 1.38% 2.78%
Time deposits 3.76% 5.95%
Short-term borrowings 1.67% 3.51%
Long-term borrowings 5.33% 5.25%
Total cost of interest-bearing
liabilities 2.43% 4.12%
(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)
June 30, June 30, December 31,
2002 2001 2001
(unaudited) (audited)
Assets
Cash and due from banks $41,580 $40,832 $39,435
Interest-bearing deposits at other
banks 210 212 218
Federal funds sold 13,172 46,377 6,277
Investment securities 134,547 83,450 121,689
Securities available-for-sale 43,493 54,504 48,359
Residential mortgage loans originated
for sale 8,223 8,454 11,411
Loan receivables:
Commercial 186,842 156,087 153,782
Real estate development and
construction 207,872 156,914 174,091
Real estate mortgage:
Residential 13,074 17,864 15,648
Commercial 108,618 96,233 109,975
Retail, principally second
mortgage loans
and residential equity lines
of credit 148,102 147,058 146,379
Credit card 2,223 2,401 2,389
Other 425 494 463
Total loans 667,156 577,051 602,727
Less: unearned income, net of
origination costs (652) (611) (640)
allowance for credit
losses (8,859) (7,667) (8,024)
Total loans, net 657,645 568,773 594,063
Other real estate owned 619 2,018 1,187
Property and equipment, net 9,786 11,117 10,400
Prepaid expenses and other assets 16,891 17,094 16,610
Total assets $926,166 $832,831 $849,649
Liabilities
Deposits:
Noninterest-bearing $168,737 $137,598 $145,844
Interest-bearing 532,159 506,049 492,157
Total deposits 700,896 643,647 638,001
Short-term borrowings 125,927 93,313 117,352
Long-term borrowings 20,000 20,000 20,000
Accrued expenses and other
liabilities 6,998 8,329 4,934
Total liabilities 853,821 765,289 780,287
Stockholders' equity
Common stock, $.01 par value per
share; authorized
10,000,000 shares; outstanding
7,099,135,
7,145,476 and 7,105,238 shares,
respectively 71 71 71
Additional paid-in capital 47,382 48,184 47,520
Retained earnings 24,862 19,179 21,768
Accumulated other comprehensive
income 30 108 3
Total stockholders' equity 72,345 67,542 69,362
Total liabilities and
stockholders' equity $926,166 $832,831 $849,649
COLUMBIA BANCORP
Consolidated Statements of Income and Comprehensive Income
(Dollars in Thousands Except Per-Share Data)
Six Months Ended
June 30,
2002 2001
(unaudited)
Interest income:
Loans $21,393 $24,597
Investment securities 4,440 5,441
Federal funds sold 44 688
Total interest income 25,877 30,726
Interest expense:
Deposits 6,500 11,004
Borrowings 1,528 2,209
Total interest expense 8,028 13,213
Net interest income 17,849 17,513
Provision for credit losses 758 828
Net interest income after
provision
for credit losses 17,091 16,685
Noninterest income:
Fees charged for services 1,731 1,343
Gains on sales of mortgage loans,
net of costs 798 393
Net income on other real estate
owned 81 177
Other 656 685
Total noninterest income 3,266 2,598
Noninterest expense:
Salaries and employee benefits 7,278 6,818
Occupancy, net 1,678 1,749
Equipment 959 1,120
Data processing 724 606
Marketing 488 283
Cash management services 298 263
Professional fees 10 477
Deposit insurance 89 90
Other 1,676 1,754
Total noninterest expense 13,200 13,160
Income before income taxes 7,157 6,123
Income tax provision 2,502 2,025
Net income 4,655 4,098
Other comprehensive income, net of
tax -
unrealized net gain on securities
available-for-sale 26 549
Comprehensive income $4,681 $4,647
Per common share data:
Net income: Basic $0.66 $0.57
Diluted 0.64 0.57
Cash dividends declared $0.22 $0.20
COLUMBIA BANCORP
Consolidated Statements of Income and Comprehensive Income
(Dollars in Thousands Except Per-Share Data)
Three Months Ended
June 30,
2002 2001
(unaudited)
Interest income:
Loans $10,945 $11,994
Investment securities 2,251 2,411
Federal funds sold 24 445
Total interest income 13,220 14,850
Interest expense:
Deposits 3,201 5,386
Borrowings 766 952
Total interest expense 3,967 6,338
Net interest income 9,253 8,512
Provision for credit losses 681 528
Net interest income after
provision
for credit losses 8,572 7,984
Noninterest income:
Fees charged for services 870 723
Gains on sales of mortgage loans,
net of costs 336 260
Net income on other real estate
owned 94 134
Other 340 313
Total noninterest income 1,640 1,430
Noninterest expense:
Salaries and employee benefits 3,726 3,303
Occupancy, net 832 861
Equipment 488 564
Data processing 365 316
Marketing 273 167
Cash management services 159 145
Professional fees (155) 208
Deposit insurance 44 45
Other 859 872
Total noninterest expense 6,591 6,481
Income before income taxes 3,621 2,933
Income tax provision 1,304 995
Net income 2,317 1,938
Other comprehensive income, net of
tax -
unrealized net gain on securities
available-for-sale 185 63
Comprehensive income $2,502 $2,001
Per common share data:
Net income: Basic $0.33 $0.27
Diluted 0.32 0.27
Cash dividends declared $0.11 $0.10
SOURCE Columbia Bancorp
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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
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