COLUMBIA, Md., July 18 /PRNewswire/ -- Columbia Bancorp (Nasdaq: CBMD),
parent company of The Columbia Bank (the "Bank"), today announced core
earnings for the six months ended June 30, 2001 of $4.10 million ($.57 per
diluted share) compared to $3.43 million ($.48 per diluted share) for the same
period in 2000, representing a 19.3% increase. Core earnings exclude merger-
related expenses incurred in connection with the merger of Suburban Bancshares
into Columbia Bancorp, which was effective March 8, 2000 and accounted for as
a pooling of interests. Reported earnings for the six months ended June 30,
2000 were $1.82 million ($.25 per diluted share) and reflected pre-tax one-
time merger-related charges of $2.31 million. Returns on average equity for
the six months ended June 30, 2001 and 2000 (before merger-related expenses)
were 12.48% and 11.31%, respectively. Returns on average assets (before
merger-related expenses) were 1.02% and .98%, respectively.
Assets totaled $832.8 million at June 30, 2001, representing an increase
of 12.9% compared to $737.7 million at June 30, 2000. During the period since
June 30, 2000, total loans and leases grew 16.5% to $577.1 million, deposits
increased 7.6% to $643.6 million and stockholders' equity increased 9.3% to
$67.5 million.
Core earnings for the second quarter 2001 totaled $1.94 million ($.27 per
diluted share) compared to $1.81 million ($.25 per diluted share) for the
prior year period, representing a 7.3% increase. Operating performance during
the second quarter 2001 continued to be strongly influenced by the dramatic
decline in interest rates. Reflecting rate adjustments totaling 2.75%
initiated by the Federal Reserve since the beginning of the year, the
Company's net interest margin fell to 4.51% during the second quarter 2001
compared to 5.21% for the prior year period. Despite an increase in average
earning assets of 14.4%, net interest income declined from $8.61 million
during the second quarter 2000 to $8.51 million during the second quarter 2001
as a result of the pressure on the net interest margin. Management
anticipates that the net interest margin will continue to come under pressure
as the Company's loan and investment portfolios absorb the full impact of
recent Federal Reserve actions and any further interest rate reductions.
Management further anticipates that the net interest margin will improve as
interest rates stabilize and the Bank's certificate of deposit portfolio
continues to reprice downward.
Noninterest income totaled $1.43 million during the second quarter 2001
compared to $932,000 for the prior year period. The strong 53.4% increase was
due primarily to growth in mortgage banking revenues, revenue from the sale of
real estate owned and growth in transaction based service fees.
Noninterest expense, excluding merger-related expenses, for the second
quarter 2001 grew $248,000, or 4.0%, compared to the prior year period. The
modest growth reflected strong cost control measures implemented during the
year and continued leverage of existing corporate resources following the
Suburban merger.
Annualized net charge-offs as a percentage of average loans were .03% for
the second quarter 2001 as compared to .10% for the same period in 2000. At
June 30, 2001, the allowance for loan losses totaled $7.67 million, or 1.33%
of loans outstanding as compared to 1.33% at June 30, 2000. Total
nonperforming assets and past due loans increased from $5.42 million at
June 30, 2000 to $6.97 million at June 30, 2001. As previously reported, the
increase was primarily attributable to the movement of a single commercial
banking relationship with a local manufacturer to non-accrual status. The
Company believes that the carrying value of these loans ($2.08 million at
June 30, 2001) is adequately secured by the underlying collateral. Other real
estate owned declined from $3.62 million at June 30, 2000 to $2.01 million at
June 30, 2001.
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,
2001 2000 % Change
(unaudited)
SUMMARY OF OPERATING RESULTS:
Net interest income $17,513 $16,584 5.6%
Provision for credit losses 828 812 2.0%
Noninterest income 2,598 1,877 38.4%
Noninterest expense before
merger-related expenses 13,160 12,342 6.6%
Income tax provision 2,025 1,176 72.2%
Net income 4,098 1,822 124.9%
Net income before merger-related
expenses 4,098 3,435 19.3%
PER SHARE DATA:
Net income :
Basic $0.57 $0.26 119.2%
Diluted 0.57 0.25 128.0%
Net income before merger-related
expenses:
Basic 0.57 0.48 18.8%
Diluted 0.57 0.48 18.8%
Average number of shares
outstanding:
Basic 7,154,762 7,154,876 0.0%
Diluted 7,209,409 7,196,513 0.2%
Book value, at period end $9.45 $8.64 9.5%
Tangible book value, at period
end 9.45 8.64 9.5%
Cash dividends declared 0.20 0.18 11.1%
PERIOD END DATA:
Assets $832,831 $737,696 12.9%
Deposits 643,647 598,174 7.6%
Loans and leases, net of unearned
income 576,440 495,017 16.4%
Investment securities and
securities available-for-sale 137,954 157,299 -12.3%
Stockholders' equity 67,542 61,798 9.3%
PERFORMANCE RATIOS:
Return on average assets 1.02% 0.52%
Return on average assets before
merger-related expenses 1.02% 0.98%
Return on average stockholders'
equity 12.48% 6.00%
Return on average stockholders'
equity before merger-related
expenses 12.48% 11.31%
Net interest margin (FTE) 4.70% 5.11%
Efficiency ratio before merger-
related expenses 65.44% 66.85%
CAPITAL RATIOS:
Period-end capital to risk-
weighted assets:
Tier 1 10.13% 10.95%
Total 11.28% 12.09%
Period-end tier 1 leverage ratio 8.26% 8.83%
ASSET QUALITY:
Net charge-offs $187 $323 -42.1%
Nonperforming assets:
Nonaccrual loans 4,228 1,403 201.4%
Restructured loans 254 - 0.0%
Loans 90+ days past due and
accruing 472 395 19.5%
Other real estate owned 2,018 3,620 -44.3%
Total nonperforming
assets and past due
loans 6,972 5,418 28.7%
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 0.86% 0.36%
Nonperforming assets and past-due
loans to total assets, at period-
end 0.84% 0.73%
Annualized net charge-offs to
average loans, net of unearned
income 0.07% 0.14%
AVERAGE BALANCES:
Federal funds sold $28,871 $18,596 55.3%
Investment securities and
securities available-for-sale 166,854 158,218 5.5%
Loans and leases, net of unearned
income 553,978 473,944 16.9%
Loans originated for sale 5,586 1,889 195.7%
Total earning assets 755,289 652,647 15.7%
Total assets 809,700 708,345 14.3%
Interest-bearing deposits
NOW accounts 61,021 56,738 7.5%
Savings and money market
accounts 180,111 175,041 2.9%
Time deposits 272,517 216,961 25.6%
Total deposits 634,119 565,962 12.0%
Short-term borrowings 80,699 53,777 50.1%
Long-term borrowings 20,000 20,000 0.0%
Total interest-bearing
liabilities 614,348 522,517 17.6%
Stockholders' equity 66,236 61,071 8.5%
YIELD ANALYSIS:
Federal funds sold 4.81% 6.03%
Investment securities and
securities available-for-sale 6.58% 6.25%
Loans and leases, net of unearned
income (FTE) 8.89% 9.33%
Total yield on earning assets
(FTE) 8.22% 8.49%
Interest-bearing deposits
NOW accounts 0.57% 1.21%
Savings and money market
accounts 3.04% 3.42%
Time deposits 6.01% 5.23%
Short-term borrowings 4.22% 5.50%
Long-term borrowings 5.26% 5.33%
Total cost of interest-bearing
liabilities 4.34% 4.22%
(a) 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,
2001 2000 % Change
(unaudited)
SUMMARY OF OPERATING RESULTS:
Net interest income $8,512 $8,605 -1.1%
Provision for credit losses 528 541 -2.4%
Noninterest income 1,430 932 53.4%
Noninterest expense before
merger-related expenses 6,481 6,233 4.0%
Income tax provision 995 901 10.4%
Net income 1,938 1,766 9.7%
Net income before merger-related
expenses 1,938 1,807 7.3%
PER SHARE DATA:
Net income :
Basic $0.27 $0.25 8.0%
Diluted 0.27 0.25 8.0%
Net income before merger-related
expenses:
Basic 0.27 0.25 8.0%
Diluted 0.27 0.25 8.0%
Average number of shares
outstanding:
Basic 7,155,768 7,155,847 0.0%
Diluted 7,207,807 7,194,100 0.2%
Book value, at period end na na na
Tangible book value, at period
end na na na
Cash dividends declared $0.10 $0.09 11.1%
PERIOD END DATA:
Assets
Deposits
Loans and leases, net of unearned
income
Investment securities and
securities available-for-sale
Stockholders' equity
PERFORMANCE RATIOS:
Return on average assets 0.95% 0.98%
Return on average assets before
merger-related expenses 0.95% 1.01%
Return on average stockholders'
equity 11.60% 11.67%
Return on average stockholders'
equity before merger-related
expenses 11.60% 11.94%
Net interest margin (FTE) 4.51% 5.21%
Efficiency ratio before merger-
related expenses 65.19% 65.36%
CAPITAL RATIOS:
Period-end capital to risk-
weighted assets:
Tier 1
Total
Period-end tier 1 leverage ratio
ASSET QUALITY:
Net charge-offs $79 $233 -66.1%
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% 0.10%
AVERAGE BALANCES:
Federal funds sold $38,949 $21,509 81.1%
Investment securities and
securities available-for-sale 152,110 156,238 -2.6%
Loans and leases, net of unearned
income 561,865 485,518 15.7%
Loans originated for sale 8,022 2,010 299.1%
Total earning assets 760,946 665,275 14.4%
Total assets 816,395 722,157 13.0%
Interest-bearing deposits
NOW accounts 62,192 59,583 4.4%
Savings and money market
accounts 184,456 178,800 3.2%
Time deposits 271,626 224,395 21.0%
Total deposits 640,973 583,416 9.9%
Short-term borrowings 78,804 50,846 55.0%
Long-term borrowings 20,000 20,000 0.0%
Total interest-bearing
liabilities 617,078 533,624 15.6%
Stockholders' equity 67,025 60,860 10.1%
YIELD ANALYSIS:
Federal funds sold 4.58% 6.34%
Investment securities and
securities available-for-sale 6.36% 6.29%
Loans and leases, net of unearned
income (FTE) 8.47% 9.47%
Total yield on earning assets
(FTE) 7.85% 8.63%
Interest-bearing deposits
NOW accounts 0.50% 1.15%
Savings and money market
accounts 2.78% 3.44%
Time deposits 5.95% 5.36%
Short-term borrowings 3.51% 5.54%
Long-term borrowings 5.25% 5.31%
Total cost of interest-bearing
liabilities 4.12% 4.26%
(a) 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,
2001 2000 2000
(unaudited) (audited)
Assets
Cash and due from banks $41,044 $41,787 $31,931
Federal funds sold 46,377 16,719 15,540
Investment securities 83,450 94,893 137,674
Securities available-for-sale 54,504 62,406 61,337
Residential mortgage loans originated
for sale 8,454 2,127 1,911
Loan and lease receivables:
Commercial 167,752 169,928 170,910
Leases 1,790 1,226 1,723
Real estate development and
construction 156,914 104,641 129,336
Real estate mortgage:
Residential 17,864 17,754 18,594
Commercial 82,778 71,537 75,325
Retail, principally second
mortgage loans and residential
equity lines of credit 147,058 127,552 139,967
Credit card 2,401 2,200 2,572
Other 494 548 1,035
Total loans and leases 577,051 495,386 539,462
Less: unearned income, net of
origination costs (611) (369) (411)
allowance for credit
losses (7,667) (6,560) (7,026)
Total loans and leases, net 568,773 488,457 532,025
Other real estate owned 2,018 3,620 2,996
Property and equipment, net 11,117 11,272 11,372
Prepaid expenses and other assets 17,094 16,415 17,864
Total assets $832,831 $737,696 $812,650
Liabilities
Deposits:
Noninterest-bearing $137,598 $120,717 $130,155
Interest-bearing 506,049 477,457 500,329
Total deposits 643,647 598,174 630,484
Short-term borrowings 93,313 53,376 93,184
Long-term borrowings 20,000 20,000 20,000
Accrued expenses and other
liabilities 8,329 4,348 4,462
Total liabilities 765,289 675,898 748,130
Stockholders' equity
Common stock, $.01 par value per
share; authorized 10,000,000 shares;
outstanding 7,145,476, 7,156,025
and 7,149,968 shares, respectively 71 71 71
Additional paid-in capital 48,184 48,454 48,378
Retained earnings 19,179 14,472 16,512
Accumulated other comprehensive
income 108 (1,199) (441)
Total stockholders' equity 67,542 61,798 64,520
Total liabilities and
stockholders' equity $832,831 $737,696 $812,650
COLUMBIA BANCORP
Consolidated Statements of Income and Comprehensive Income
(Dollars in Thousands Except Per-Share Data)
Six Months Ended Three Months Ended
June 30, June 30,
2001 2000 2001 2000
(unaudited) (unaudited)
Interest income:
Loans and leases $24,597 $22,068 $11,994 $11,475
Investment securities 5,441 4,919 2,411 2,446
Federal funds sold 688 558 445 339
Total interest income 30,726 27,545 14,850 14,260
Interest expense:
Deposits 11,004 8,961 5,386 4,690
Borrowings 2,209 2,000 952 965
Total interest expense 13,213 10,961 6,338 5,655
Net interest income 17,513 16,584 8,512 8,605
Provision for credit losses 828 812 528 541
Net interest income after
provision for credit
losses 16,685 15,772 7,984 8,064
Noninterest income:
Fees charged for services 1,343 1,160 723 616
Gains on sales of mortgage
loans, net of costs 393 167 260 76
Net income on other real estate
owned 177 56 134 26
Other 685 494 313 214
Total noninterest income 2,598 1,877 1,430 932
Noninterest expense:
Salaries and employee benefits 6,818 6,074 3,303 2,944
Occupancy, net 1,749 1,754 861 895
Equipment 1,120 965 564 504
Data processing 606 816 316 424
Marketing 283 495 167 321
Cash management services 263 215 145 119
Professional fees 477 322 208 164
Deposit insurance 90 84 45 42
Merger-related expenses - 2,309 - 96
Other 1,754 1,617 872 820
Total noninterest expense 13,160 14,651 6,481 6,329
Income before income taxes 6,123 2,998 2,933 2,667
Income tax provision 2,025 1,176 995 901
Net income 4,098 1,822 1,938 1,766
Other comprehensive income, net of
tax - unrealized net gain (loss) on
securities available-for-sale 549 (52) 63 405
Comprehensive income $4,647 $1,770 $2,001 $2,171
Per common share data:
Net income: Basic $0.57 $0.26 $0.27 $0.25
Diluted 0.57 0.25 0.27 0.25
Cash dividends declared $0.20 $0.18 $0.10 $0.09
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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