COLUMBIA, Md., July 19 /PRNewswire-FirstCall/ -- Columbia Bancorp
(Nasdaq: CBMD), parent company of The Columbia Bank (the "Bank"), today
announced net income for the six months ended June 30, 2005 of $7.67 million
compared to $6.09 million for the same period during 2004, an increase of
25.9%. Fully diluted earnings per share increased 29.3%, from $.82 for the
first half of 2004 to $1.06 in 2005. Returns on average equity were 17.11%
and 13.93% for the six months ended June 30, 2005 and 2004, respectively.
Return on average assets was 1.26% for the six months ended June 30, 2005
compared to 1.16% for the same period in 2004.
Net income for the second quarter 2005 totaled $3.84 million compared to
$3.11 million for the second quarter 2004, a 23.4% increase. Fully diluted
earnings per share for the quarter increased 28.6% to $.54 for 2005 compared
to $.42 for 2004. Returns on average equity for the second quarter 2005 and
2004 were 17.08% and 14.07%, respectively. Returns on average assets for the
second quarter 2005 and 2004 were 1.23% and 1.16%, respectively.
SECOND QUARTER FINANCIAL HIGHLIGHTS
-- Total assets ($1.28 billion), loans, net of unearned income ($1.03
billion) and customer funding sources ($1.14 billion) reached record
levels at June 30, 2005 and represented growth since June 30, 2004 of
13.9%, 14.4% and 13.6%, respectively. During the first half of 2005,
loans, net of unearned income, and customer funding sources grew at
annualized rates of 16.9% and 22.0%, respectively.
-- Net interest income (FTE) increased $2.92 million, or 26.7%, over the
second quarter of 2004 and increased $4.98 million, or 22.8%, over the
first six months of 2004.
-- The net interest margin (FTE) improved to 4.64% during the second
quarter of 2005 as compared to 4.29% during second quarter 2004 and
4.56% during the first quarter of 2005.
-- The efficiency ratio (FTE) improved to 56.13% for the second quarter of
2005 compared to 58.71% for the same period of 2004.
-- Non-performing assets decreased to .09% of total assets at June 30,
2005 compared to .13% at June 30, 2004.
DETAILED REVIEW OF FINANCIAL PERFORMANCE
Total assets at June 30, 2005 were $1.28 billion, representing growth of
$157.20 million, or 13.9%, since June 30, 2004. Loans, net of unearned
income, totaled $1,029.57 million compared to $900.32 million at June 30,
2004, representing growth of $129.25 million, or 14.4%. Growth in the loan
portfolio since June 30, 2004 was primarily bolstered by continued strength in
the Company's real estate development and construction activities and, to a
lesser extent, in commercial lending and consumer lending activities.
Specifically, the real estate development and construction portfolio increased
$98.00 million (31.2%), the commercial portfolio, inclusive of commercial
mortgage loans, increased $14.51 million (3.8%) and the consumer portfolio
increased $13.96 million (7.6%). Customer funding sources, representing
deposits plus other short-term borrowings from core customers, increased 13.6%
to $1.14 billion at June 30, 2005. Shareholders' equity also rose to $91.33
million or 3.7% at June 30, 2005.
Operating performance through June 30, 2005 was primarily driven by a net
interest income (FTE) increase of 26.7% during the second quarter 2005 and
22.8% during the six months ended June 30, 2005 as compared to the
corresponding periods of 2004, as a result of continued growth in earning
assets, most specifically, the loan portfolio. The Company remained asset
sensitive at June 30, 2005 and has benefited from the Federal Reserve's
actions to increase short-term rates. As a result, the net interest margin
(FTE) increased .35% during the second quarter 2005 as compared to the second
quarter 2004 and .22% during the six months ended June 30, 2005 as compared to
the same period in 2004. The potential ongoing benefit to the Company, from a
rising interest rate environment, may be diminished depending upon the extent
to which market forces influence increases in the cost of funding sources.
This increase in net interest income more than offset a decline in non-
interest income of $120,000, or 6.3% for the second quarter and $245,000 or
6.7% for the first half of 2005 as compared to the same period in 2004,
primarily resulting from a decline in deposit service charges, including lower
fees charged on overdraft deposit accounts and commercial account analysis
charges. Mortgage-banking activities slowed somewhat resulting in a decline
in corresponding revenues of $111,000 and $109,000 during the second quarter
2005 and six months ended June 30, 2005, respectively. Commission revenue on
financial services sales served to partially offset the impact of the decline
in deposit service charges and mortgage activity with increases of 33.6% for
the second quarter and 35.4% for the first six months of 2005 compared to the
same periods in 2004.
Non-interest expense rose 16.4% and 11.4% for the second quarter and six
months ended June 30, 2005, respectively, as compared to the corresponding
periods in 2004. The increase for the quarter and, on a year-to-date basis,
was primarily due to an increase in salary and benefit expense reflecting
additional staffing costs and increased costs associated with the Company's
Deferred Compensation Plan which are largely determined by appreciation in the
Company's stock. Despite the overall increase in operating expenses, the
efficiency ratio (FTE) improved to 55.51% for the six months ended June 30,
2005 compared to 59.06% for the same period in 2004.
Asset quality remained very strong at June 30, 2005, with non-performing
assets and past-due loans totaling $1.17 million. As of June 30, 2005, non-
performing assets and past-due loans represented only .09% of total assets.
The ratio of non-performing loans and past-due loans to total loans improved
from .13% at June 30, 2004 to .11% at June 30, 2005. Net charge-offs totaled
$20,000 during the second quarter of 2005. Net recoveries for the six months
ended June 30, 2005 totaled $53,000 compared to net charge-offs of $87,000 for
the six months ended June 30, 2004. At June 30, 2005, the allowance for
credit losses totaled $12.45 million, or 1.21% of loans, compared to $11.24
million, or 1.25% of loans at June 30, 2004.
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 the net interest
margin and efficiency ratio that are reported on a fully tax-equivalent basis
("FTE"). These amounts and ratios are non-GAAP financial measures as defined
in Securities and Exchange Commission ("SEC") Regulation G and Item 10 of SEC
Regulation S-K. Management believes that these measures are better indicators
of operating performance than the GAAP-based ratios and better tools for
managing net interest income, non-interest income, and non-interest expenses.
A complete reconciliation of the GAAP-based and non-GAAP information included
in this press release is provided in the following schedules. 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
Certain statements contained in this Press Release are forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
The forward-looking statements are based on Columbia Bancorp's current intent,
belief and expectations. These statements are not guarantees of future
performance and are subject to certain risks and uncertainties that are
difficult to predict. Actual results may differ materially from these
forward-looking statements because of interest rate fluctuations, a
deterioration of economic conditions in the Baltimore/Washington metropolitan
area, a downturn in the real estate market, losses from impaired loans, an
increase in non-performing assets, potential exposure to environmental laws,
federal and state bank laws and regulations, the highly competitive nature of
the banking industry, a loss of key personnel, changes in accounting standards
and other risks described in this filing and the Company's other filings with
the Securities and Exchange Commission. Existing and prospective investors
are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of today's date. Columbia Bancorp undertakes no
obligation to update or revise the information contained in this filing
whether as a result of new information, future events or circumstances or
otherwise. Past results of operations may not be indicative of future
results.
COLUMBIA BANCORP
Financial Highlights
(dollars in thousands, except per share data)
(unaudited)
As of and Six Months Ended
June 30,
-----------------------------
2005 2004 % Change
-----------------------------
SUMMARY OF OPERATING RESULTS:
Tax equivalent interest income $36,270 $27,211 33.3%
Interest expense 9,410 5,335 76.4%
Tax equivalent net
interest income 26,860 21,876 22.8%
Tax equivalent adjustment 669 548 22.1%
Net interest income 26,191 21,328 22.8%
Provision for credit losses 810 500 62.0%
Noninterest income 3,408 3,653 (6.7%)
Noninterest expense 16,802 15,077 11.4%
Income before taxes 11,987 9,404 27.5%
Income tax provision 4,316 3,310 30.4%
Net income 7,671 6,094 25.9%
PER SHARE DATA:
Net income:
Basic $1.10 $0.85 29.4%
Diluted 1.06 0.82 29.3%
Average number of shares outstanding:
Basic 6,952,835 7,175,939 (3.1%)
Diluted 7,207,830 7,421,715 (2.9%)
Book value, at period end $13.17 $12.33 6.8%
Tangible book value, at period end 13.17 12.33 6.8%
Cash dividends declared $0.34 $0.30 13.3%
PERIOD END DATA:
Loans, net of unearned income $1,029,568 $900,320 14.4%
Investment securities held-to-
maturity and securities
available-for-sale 173,212 122,430 41.5%
Assets 1,284,115 1,126,916 13.9%
Noninterest-bearing deposits 263,834 240,117 9.9%
Interest-bearing deposits 712,657 650,884 9.5%
Total deposits 976,491 891,001 9.6%
Customer funding sources (a) 1,137,342 1,001,524 13.6%
Stockholders' equity 91,331 88,039 3.7%
PERFORMANCE RATIOS:
Return on average assets 1.26% 1.16%
Return on average stockholders'
equity 17.11% 13.93%
Net interest margin 4.49% 4.27%
Net interest margin (FTE) 4.60% 4.38%
Efficiency ratio (FTE)(b) 55.51% 59.06%
CAPITAL RATIOS:
Period-end capital to
risk-weighted assets:
Tier 1 9.67% 9.45%
Total 10.81% 10.58%
Period-end tier 1 leverage ratio 8.57% 8.79%
ASSET QUALITY:
Allowance for credit losses to
loans, net of unearned income,
at period-end 1.21% 1.25%
Net recoveries (charge-offs) $53 $(87) (160.9%)
Annualized net recoveries
(charge-offs) to average loans,
net of unearned income 0.01% (0.02%)
Nonperforming assets:
Nonaccrual loans $1,043 $1,095 (4.7%)
Loans 90+ days past due and
accruing 128 91 40.7%
Other real estate owned - 250 na
------ ------
Total nonperforming assets $1,171 $1,436 (18.5%)
------ ------
Nonperforming and past due loans
to total loans, net of unearned
income, at period-end 0.11% 0.13%
Nonperforming assets and past due
loans to total assets, at period-end 0.09% 0.13%
NONINTEREST INCOME AND EXPENSE BREAKDOWN:
Noninterest income:
Fees charged for services $1,618 $2,055 (21.3%)
Gains on sales of mortgage
loans, net of costs 749 858 (12.7%)
Net loss on other real estate owned - (14) (100.0%)
Commissions earned on
financial services sales 375 277 35.4%
Other noninterest income 666 477 39.6%
------------------
$3,408 $3,653 (6.7%)
------------------
Noninterest expenses:
Salaries and employee benefits $9,351 $7,921 18.1%
Occupancy 1,936 1,860 4.1%
Equipment 891 1,018 (12.5%)
Data processing 889 1,050 (15.3%)
Marketing 738 596 23.8%
Professional fees 448 338 32.5%
Postage 219 201 9.0%
Stationery and supplies 221 213 3.8%
Cash management services 231 280 (17.5%)
Other noninterest expenses 1,878 1,600 17.4%
-------------------
$16,802 $15,077 11.4%
-------------------
AVERAGE BALANCES:
Federal funds sold and
interest-bearing deposits (c) $14,203 $23,517 (39.6%)
Investment securities held-to-
maturity and securities
available-for-sale 168,320 112,788 49.2%
Loans, net of unearned income 987,645 862,357 14.5%
Loans originated for sale (c) 6,982 6,758 3.3%
Total earning assets 1,177,150 1,005,420 17.1%
Total assets 1,227,902 1,052,448 16.7%
Interest-bearing deposits:
NOW accounts 86,691 87,612 (1.1%)
Savings and money
market accounts 188,726 194,169 (2.8%)
Time deposits 423,242 331,255 27.8%
Noninterest-bearing deposits 244,367 206,292 18.5%
Total deposits 943,026 819,328 15.1%
Short-term borrowings (c) 154,131 117,267 31.4%
Long-term borrowings 33,694 20,231 66.5%
Total interest-bearing liabilities 886,484 750,534 18.1%
Stockholders' equity 90,402 87,960 2.8%
YIELD ANALYSIS:
Federal funds sold and
interest-bearing deposits 2.43% 0.95%
Investment securities
held-to-maturity and securities
available-for-sale (FTE) 3.87% 4.38%
Loans, net of unearned income (FTE) 6.66% 5.70%
Total yield on earning assets (FTE) 6.21% 5.44%
Interest-bearing deposits
NOW accounts 0.16% 0.14%
Savings and money market
accounts 0.59% 0.37%
Time deposits 2.87% 2.38%
Short-term borrowings 2.46% 0.77%
Long-term borrowings 5.28% 5.34%
Total cost of interest-bearing
liabilities 2.14% 1.43%
As of and Three Months Ended
June 30,
-------------------------------
2005 2004 % Change
-------------------------------
SUMMARY OF OPERATING RESULTS:
Tax equivalent interest income $18,953 $13,681 38.5%
Interest expense 5,111 2,755 85.5%
Tax equivalent net
interest income 13,842 10,926 26.7%
Tax equivalent adjustment 296 273 8.4%
Net interest income 13,546 10,653 27.2%
Provision for credit losses 560 190 194.7%
Noninterest income 1,777 1,897 (6.3%)
Noninterest expense 8,767 7,529 16.4%
Income before taxes 5,996 4,831 24.1%
Income tax provision 2,154 1,718 25.4%
Net income 3,842 3,113 23.4%
PER SHARE DATA:
Net income:
Basic $0.56 $0.43 30.2%
Diluted 0.54 0.42 28.6%
Average number of shares outstanding:
Basic 6,921,811 7,170,585 (3.5%)
Diluted 7,173,060 7,404,762 (3.1%)
Book value, at period end
Tangible book value, at period end
Cash dividends declared $0.17 $0.15 13.3%
PERIOD END DATA:
Loans, net of unearned income
Investment securities held-to-
maturity and securities
available-for-sale
Assets
Noninterest-bearing deposits
Interest-bearing deposits
Total deposits
Customer funding sources (a)
Stockholders' equity
PERFORMANCE RATIOS:
Return on average assets 1.23% 1.16%
Return on average stockholders'
equity 17.08% 14.07%
Net interest margin 4.54% 4.18%
Net interest margin (FTE) 4.64% 4.29%
Efficiency ratio (FTE)(b) 56.13% 58.71%
CAPITAL RATIOS:
Period-end capital to
risk-weighted assets:
Tier 1
Total
Period-end tier 1 leverage ratio
ASSET QUALITY:
Allowance for credit losses to
loans, net of unearned income, at
period-end
Net recoveries (charge-offs) $(20) $10 (300.0%)
Annualized net recoveries
(charge-offs) to average
loans, net of unearned
income (0.01%) 0.00%
Nonperforming assets:
Nonaccrual loans
Loans 90+ days past due and
accruing
Other real estate owned
Total nonperforming
assets
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
NONINTEREST INCOME AND EXPENSE BREAKDOWN:
Noninterest income:
Fees charged for services $824 $1,041 (20.8%)
Gains on sales of mortgage
loans, net of costs 397 508 (21.9%)
Net loss on other real estate
owned - (5) (100.0%)
Commissions earned on financial
services sales 183 137 33.6%
Other noninterest income 373 216 72.7%
-------------------
$1,777 $1,897 (6.3%)
-------------------
Noninterest expenses:
Salaries and employee benefits $5,024 $3,888 29.2%
Occupancy 938 913 2.7%
Equipment 467 505 (7.5%)
Data processing 437 532 (17.9%)
Marketing 381 296 28.7%
Professional fees 174 174 0.0%
Postage 96 93 3.2%
Stationery and supplies 110 98 12.2%
Cash management services 123 158 (22.2%)
Other noninterest expenses 1,017 872 16.6%
-------------------
$8,767 $7,529 16.4%
-------------------
AVERAGE BALANCES:
Federal funds sold and
interest-bearing deposits (c) $14,296 $37,521 (61.9%)
Investment securities held-to-
maturity and securities
available-for-sale 172,833 103,384 67.2%
Loans, net of unearned income 1,001,922 873,278 14.7%
Loans originated for sale (c) 8,070 8,320 (3.0%)
Total earning assets 1,197,121 1,022,503 17.1%
Total assets 1,248,918 1,071,793 16.5%
Interest-bearing deposits:
NOW accounts 87,262 89,308 (2.3%)
Savings and money
market accounts 184,600 194,197 (4.9%)
Time deposits 441,267 348,394 26.7%
Noninterest-bearing deposits 246,056 221,033 11.3%
Total deposits 959,185 852,932 12.5%
Short-term borrowings (c) 155,492 105,985 46.7%
Long-term borrowings 36,496 20,462 78.4%
Total interest-bearing liabilities 905,117 758,346 19.4%
Stockholders' equity 90,215 88,743 1.7%
YIELD ANALYSIS:
Federal funds sold and
interest-bearing deposits 2.69% 0.96%
Investment securities held-to-
maturity and securities
available-for-sale (FTE) 3.84% 4.45%
Loans, net of unearned income (FTE) 6.83% 5.68%
Total yield on earning assets (FTE) 6.35% 5.38%
Interest-bearing deposits
NOW accounts 0.16% 0.15%
Savings and money market accounts 0.65% 0.37%
Time deposits 2.96% 2.39%
Short-term borrowings 2.66% 0.77%
Long-term borrowings 5.32% 5.35%
Total cost of interest-bearing
liabilities 2.26% 1.46%
(a) Deposits plus customer-related short-term borrowings in the form of
commercial paper and repurchase agreements.
(b) The efficiency ratio (FTE) is defined as total noninterest expense as
a percentage of net interest income, on a tax-equivalent basis, plus
noninterest income.
(c) Variances reflect significant fluctuations in account balances due to
the nature of the accounts.
Certain reclassifications of information previously reported
have been made to conform with current presentation.
COLUMBIA BANCORP
Consolidated Statements of Condition
(dollars in thousands, except per share data)
June 30, June 30, December 31,
2005 2004 2004
------------------------------------
(unaudited) (audited)
Assets
Cash and due from banks $39,474 $38,014 $30,012
Interest-bearing deposits with banks 203 207 208
Federal funds sold 15,096 43,547 9,904
Investment securities held-to-maturity 110,156 69,803 116,170
Securities available-for-sale 63,056 52,627 47,980
Residential mortgage loans originated
for sale 10,219 7,307 8,698
Loan receivables:
Real estate - development and
construction 412,478 314,480 345,375
Commercial 252,881 213,353 226,763
Real estate - mortgage:
Residential 19,003 17,197 17,272
Commercial 147,212 172,233 163,985
Consumer, principally second
mortgage loans and residential
equity lines of credit 196,521 182,560 196,198
Other 1,660 707 668
------------------------------------
Total loans 1,029,755 900,530 950,261
Less: Unearned income, net of
origination costs (187) (210) (91)
Allowance for credit
losses (12,446) (11,241) (11,583)
------------------------------------
Loans, net 1,017,122 889,079 938,587
Other real estate owned - 250 -
Property and equipment, net 6,594 6,948 6,647
Prepaid expenses and other assets 22,195 19,134 20,800
------------------------------------
Total assets $1,284,115 $1,126,916 $1,179,006
====================================
Liabilities
Deposits:
Noninterest-bearing demand
deposits $263,834 $240,117 $256,132
Interest-bearing deposits 712,657 650,884 656,446
------------------------------------
Total deposits 976,491 891,001 912,578
Short-term borrowings 171,798 115,523 135,825
Subordinated debentures 16,496 6,186 10,310
Long-term borrowings 20,000 20,000 20,000
Accrued expenses and other liabilities 7,999 6,167 7,945
------------------------------------
Total liabilities 1,192,784 1,038,877 1,086,658
------------------------------------
Stockholders' equity
Common stock, $.01 par value per
share; authorized 10,000,000 shares;
outstanding 6,932,502, 7,137,692 and
7,114,267 shares, respectively 69 71 71
Additional paid-in capital 39,275 46,626 45,739
Retained earnings 51,738 41,506 46,419
Accumulated other comprehensive
income (loss) 249 (164) 119
------------------------------------
Total stockholders' equity 91,331 88,039 92,348
------------------------------------
Total liabilities and
stockholders' equity $1,284,115 $1,126,916 $1,179,006
====================================
Certain reclassifications of information previously reported
have been made to conform with current presentation.
COLUMBIA BANCORP
Consolidated Statements of Income
(dollars in thousands, except per share data)
Six Months Ended Three Months Ended
June 30, June 30,
------------------------------------
2005 2004 2005 2004
------------------------------------
(unaudited) (unaudited)
Interest income:
Loans $32,377 $24,289 $16,998 $12,267
Investment securities 3,053 2,263 1,563 1,051
Federal funds sold and interest-
bearing deposits with banks 171 111 96 90
------------------------------------
Total interest income 35,601 26,663 18,657 13,408
------------------------------------
Interest expense:
Deposits 6,646 4,346 3,597 2,278
Borrowings 2,764 989 1,514 477
------------------------------------
Total interest expense 9,410 5,335 5,111 2,755
------------------------------------
Net interest income 26,191 21,328 13,546 10,653
Provision for credit losses 810 500 560 190
------------------------------------
Net interest income after
provision for credit
losses 25,381 20,828 12,986 10,463
------------------------------------
Noninterest income:
Fees charged for services 1,618 2,055 824 1,041
Gains on sales of mortgage loans,
net of costs 749 858 397 508
Net loss on other real estate
owned - (14) - (5)
Commissions earned on financial
services sales 375 277 183 137
Other 666 477 373 216
------------------------------------
Total noninterest income 3,408 3,653 1,777 1,897
------------------------------------
Noninterest expense:
Salaries and employee benefits 9,351 7,921 5,024 3,888
Occupancy 1,936 1,860 938 913
Equipment 891 1,018 467 505
Data processing 889 1,050 437 532
Marketing 738 596 381 296
Professional fees 448 338 174 174
Postage 219 201 96 93
Stationery and supplies 221 213 110 98
Cash management services 231 280 123 158
Other 1,878 1,600 1,017 872
------------------------------------
Total noninterest expense 16,802 15,077 8,767 7,529
------------------------------------
Income before income taxes 11,987 9,404 5,996 4,831
Income tax provision 4,316 3,310 2,154 1,718
------------------------------------
Net income $7,671 $6,094 $3,842 $3,113
====================================
Per common share data:
Net income: Basic $1.10 $0.85 $0.56 $0.43
Diluted 1.06 0.82 0.54 0.42
Cash dividends declared $0.34 $0.30 $0.17 $0.15
Certain reclassifications of information previously reported
have been made to conform with current presentation.
COLUMBIA BANCORP
Reconciliation of GAAP-based Operating Performance Measures
and Core Operating Performance Measures
(dollars in thousands, except per share data)
Six Months Ended Three Months Ended
June 30, June 30,
------------------------------------
2005 2004 2005 2004
------------------------------------
(unaudited) (unaudited)
GAAP-based Operating Performance
Measures:
Net interest income $26,191 $21,328 $13,546 $10,653
Provision for credit losses 810 500 560 190
Noninterest income 3,408 3,653 1,777 1,897
Noninterest expense 16,802 15,077 8,767 7,529
Income before taxes 11,987 9,404 5,996 4,831
Income tax provision 4,316 3,310 2,154 1,718
Net income 7,671 6,094 3,842 3,113
Return on average assets 1.26% 1.16% 1.23% 1.16%
Return on average equity 17.11% 13.93% 17.08% 14.07%
Net interest margin 4.49% 4.27% 4.54% 4.18%
Efficiency ratio 56.77% 60.35% 57.21% 59.99%
Net income per share - diluted $1.06 $0.82 $0.54 $0.42
--------------------------------------------------------------------------
Non-GAAP adjustments
Interest income on tax-exempt loans $490 $356 $207 $178
Interest income on tax-exempt securities 179 192 89 95
------------------------------------
Total tax equivalent adjustment
- net interest income $669 $548 $296 $273
====================================
--------------------------------------------------------------------------
Core Operating Performance Measures:
(a)(b)
Net interest income - tax equivalent $26,860 $21,876 $13,842 $10,926
Tax equivalent adjustment (669) (548) (296) (273)
------------------------------------
Net interest income 26,191 21,328 13,546 10,653
Provision for credit losses 810 500 560 190
Noninterest income 3,408 3,653 1,777 1,897
Noninterest expense 16,802 15,077 8,767 7,529
Income before taxes 11,987 9,404 5,996 4,831
Income tax provision 4,316 3,310 2,154 1,718
Net income 7,671 6,094 3,842 3,113
Return on average assets 1.26% 1.16% 1.23% 1.16%
Return on average equity 17.11% 13.93% 17.08% 14.07%
Net interest margin (FTE) 4.60% 4.38% 4.64% 4.29%
Efficiency ratio (FTE) 55.51% 59.06% 56.13% 58.71%
Net income per share - diluted $1.06 $0.82 $0.54 $0.42
--------------------------------------------------------------------------
(a) Core operating performance reflects GAAP-based performance presented
on a fully tax-equivalent basis, exclusive of non-recurring items,
where applicable. There were no non-recurring items in the periods
presented.
(b) The efficiency ratio (FTE) 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
Quarterly Highlights
(dollars in thousands, except per share data)
2Q05 1Q05
--------------------------
(unaudited)
SUMMARY OF OPERATING RESULTS:
GAAP-based:
Interest income 18,657 $16,944
Interest expense 5,111 4,299
Net interest income 13,546 12,645
Provision for credit losses 560 250
Noninterest income 1,777 1,631
Noninterest expense 8,767 8,035
Income before taxes 5,996 5,991
Income tax provision 2,154 2,162
Net income 3,842 3,829
Based on core operating performance (a):
Tax-equivalent interest income 18,953 $17,317
Interest expense 5,111 4,299
Tax-equivalent net interest income 13,842 13,018
Tax-equivalent adjustment 296 373
Net interest income 13,546 12,645
Provision for credit losses 560 250
Noninterest income 1,777 1,631
Noninterest expense 8,767 8,035
Income before taxes 5,996 5,991
Income tax provision 2,154 2,162
Net income 3,842 3,829
--------------------------------------------------------------------------
PER SHARE DATA:
Net income :
GAAP-based:
Basic $0.56 $0.55
Diluted 0.54 0.53
Based on core operating performance (a):
Basic $0.56 $0.55
Diluted 0.54 0.53
Average number of shares outstanding:
Basic 6,921,811 6,984,185
Diluted 7,173,060 7,242,967
Book value, at period end $13.17 $12.74
Tangible book value, at period end 13.17 12.74
Cash dividends declared 0.17 0.17
--------------------------------------------------------------------------
PERIOD END DATA:
Loans, net of unearned income $1,029,568 $978,941
Investment securities held-to-
maturity and securities
available-for-sale 173,212 170,595
Assets 1,284,115 1,240,496
Noninterest-bearing deposits 263,834 248,122
Interest-bearing deposits 712,657 720,503
Total deposits 976,491 968,625
Customer funding sources (b) 1,137,342 1,104,701
Stockholders' equity 91,331 87,971
--------------------------------------------------------------------------
PERFORMANCE RATIOS:
GAAP-based:
Return on average assets 1.23% 1.29%
Return on average stockholders' equity 17.08% 17.14%
Net interest margin 4.54% 4.43%
Efficiency ratio 57.21% 56.28%
Based on core operating performance (a):
Return on average assets 1.23% 1.29%
Return on average stockholders' equity 17.08% 17.14%
Net interest margin (FTE) 4.64% 4.56%
Efficiency ratio (FTE) 56.13% 54.85%
--------------------------------------------------------------------------
CAPITAL RATIOS:
Period-end capital to risk-weighted assets:
Tier 1 9.67% 9.62%
Total 10.81% 10.73%
Period-end tier 1 leverage ratio 8.57% 8.62%
--------------------------------------------------------------------------
ASSET QUALITY:
Allowance for credit losses to
loans, net of unearned income, at
period-end 1.21% 1.22%
Net recoveries (charge-offs) $(20) $73
Annualized net recoveries (charge-offs) to
average loans, net of unearned income (0.01%) 0.03%
Nonperforming assets:
Nonaccrual loans $1,043 $588
Loans 90+ days past due and accruing 128 128
Other real estate owned - -
------ ------
Total nonperforming assets $1,171 $716
------ ------
Nonperforming and past due loans
to total loans, net of unearned
income, at period-end 0.11% 0.07%
Nonperforming assets and past due
loans to total assets, at period-end 0.09% 0.06%
--------------------------------------------------------------------------
NONINTEREST INCOME AND EXPENSE BREAKDOWN:
Noninterest income:
Fees charged for deposit services $824 $794
Gains on sales of mortgage
loans, net of costs 397 352
Commissions earned on
financial services sales 183 192
Other noninterest income 373 293
------ ------
Total noninterest income $1,777 $1,631
------ ------
Noninterest expenses:
Salaries and payroll taxes $4,146 $3,940
Employee benefits - health and welfare 371 365
Employee benefits - retirement 507 22
Occupancy 938 998
Equipment 467 424
Data processing 437 452
Marketing 381 357
Professional fees 174 274
Postage 96 123
Stationery and supplies 110 111
Cash management services 123 108
Other noninterest expenses 1,017 861
------ ------
Total noninterest expenses $8,767 $8,035
------ ------
--------------------------------------------------------------------------
AVERAGE BALANCES:
Federal funds sold and interest
bearing deposits $14,296 $14,109
Investment securities and
securities available-for-sale 172,833 163,757
Loans, net of unearned income 1,001,922 973,208
Loans originated for sale 8,070 5,883
Total earning assets 1,197,121 1,156,957
Total assets 1,248,918 1,206,651
Interest-bearing deposits:
NOW accounts 87,262 86,113
Savings and money market accounts 184,600 192,899
Time deposits 441,267 405,018
Noninterest-bearing deposits 246,056 242,659
Total deposits 959,185 926,689
Short-term borrowings 155,492 152,754
Long-term borrowings 36,496 30,860
Total interest-bearing liabilities 905,117 867,644
Stockholders' equity 90,215 90,592
--------------------------------------------------------------------------
YIELD ANALYSIS:
Federal funds sold and interest bearing
deposits 2.69% 2.15%
Investment securities and securities
available-for-sale (FTE) 3.84% 3.91%
Loans, net of unearned income (FTE) 6.83% 6.49%
Total yield on earning assets (FTE) 6.35% 6.07%
Interest-bearing deposits
NOW accounts 0.16% 0.16%
Savings and money market accounts 0.65% 0.52%
Time deposits 2.96% 2.77%
Short-term borrowings 2.66% 2.26%
Long-term borrowings 5.32% 5.23%
Total cost of interest-bearing liabilities 2.26% 2.01%
--------------------------------------------------------------------------
(a) Core operating performance reflects GAAP-based performance presented
on a fully tax-equivalent basis, exclusive of non-recurring items,
where applicable. There were no non-recurring items in the periods
presented.
(b) Deposits plus customer-related short-term borrowings in the form of
commercial paper and repurchase agreements.
--------------------------------------------------------------------------
Certain reclassifications of information previously reported
have been made to conform with current presentation.
COLUMBIA BANCORP
Quarterly Highlights
(dollars in thousands, except per share data)
4Q04 3Q04 2Q04 1Q04
-------------------------------------------
(unaudited)
SUMMARY OF OPERATING RESULTS:
GAAP-based:
Interest income $16,050 $14,833 $13,408 $13,255
Interest expense 3,497 3,131 2,755 2,580
Net interest income 12,553 11,702 10,653 10,675
Provision for credit losses 36 192 190 310
Noninterest income 1,499 1,738 1,897 1,756
Noninterest expense 8,367 7,693 7,529 7,548
Income before taxes 5,649 5,555 4,831 4,573
Income tax provision 1,976 2,037 1,718 1,592
Net income 3,673 3,518 3,113 2,981
Based on core operating
performance (a):
Tax-equivalent interest
income $16,376 $15,097 $13,681 $13,529
Interest expense 3,497 3,131 2,755 2,580
Tax-equivalent net
interest income 12,879 11,966 10,926 10,949
Tax-equivalent adjustment 326 264 273 274
Net interest income 12,553 11,702 10,653 10,675
Provision for credit losses 36 192 190 310
Noninterest income 1,499 1,738 1,897 1,756
Noninterest expense 8,367 7,693 7,529 7,548
Income before taxes 5,649 5,555 4,831 4,573
Income tax provision 1,976 2,037 1,718 1,592
Net income 3,673 3,518 3,113 2,981
--------------------------------------------------------------------------
PER SHARE DATA:
Net income:
GAAP-based:
Basic $0.52 $0.49 $0.43 $0.42
Diluted 0.50 0.48 0.42 0.40
Based on core operating
performance (a):
Basic $0.52 $0.49 0.43 0.42
Diluted 0.50 0.48 0.42 0.40
Average number of shares
outstanding:
Basic 7,113,768 7,128,359 7,170,585 7,178,797
Diluted 7,371,541 7,350,901 7,404,762 7,434,701
Book value, at period end $12.98 $12.66 $12.33 $12.23
Tangible book value, at
period end 12.98 12.66 12.33 12.23
Cash dividends declared 0.17 0.15 0.15 0.15
--------------------------------------------------------------------------
PERIOD END DATA:
Loans, net of unearned
income $950,170 $936,000 $900,320 $864,753
Investment securities
held-to-maturity and
securities available-
for-sale 164,150 150,604 122,430 104,211
Assets 1,179,006 1,179,107 1,126,916 1,083,798
Noninterest-bearing
deposits 256,132 246,092 240,117 220,700
Interest-bearing deposits 656,446 669,250 650,884 625,311
Total deposits 912,578 915,342 891,001 846,011
Customer funding
sources (b) 1,025,403 1,053,771 1,001,524 963,051
Stockholders' equity 92,348 90,100 88,039 87,934
--------------------------------------------------------------------------
PERFORMANCE RATIOS:
GAAP-based:
Return on average assets 1.25% 1.24% 1.16% 1.16%
Return on average
stockholders' equity 15.99% 15.60% 14.07% 13.75%
Net interest margin 4.46% 4.31% 4.18% 4.34%
Efficiency ratio 59.54% 57.24% 59.99% 60.72%
Based on core operating
performance (a):
Return on average assets 1.25% 1.24% 1.16% 1.16%
Return on average
stockholders' equity 15.99% 15.60% 14.07% 13.75%
Net interest margin (FTE) 4.57% 4.41% 4.29% 4.46%
Efficiency ratio (FTE) 58.19% 56.14% 58.71% 59.41%
--------------------------------------------------------------------------
CAPITAL RATIOS:
Period-end capital to
risk-weighted assets:
Tier 1 9.74% 9.23% 9.45% 9.04%
Total 10.85% 10.35% 10.58% 10.20%
Period-end tier 1 leverage
ratio 8.75% 8.51% 8.79% 8.34%
--------------------------------------------------------------------------
ASSET QUALITY:
Allowance for credit
losses to loans, net
of unearned income,
at period-end 1.22% 1.23% 1.25% 1.28%
Net recoveries (charge-offs) $33 $81 $10 $(97)
Annualized net recoveries
(charge-offs) to average
loans, net of unearned
income 0.01% 0.04% 0.00% (0.05%)
Nonperforming assets:
Nonaccrual loans $614 $635 $1,095 $1,168
Loans 90+ days past
due and accruing 31 22 91 69
Other real estate owned - - 250 250
------ ------ ------ ------
Total nonperforming
assets $645 $657 $1,436 $1,487
------ ------ ------ ------
Nonperforming and past due
loans to total loans, net of
unearned income, at
period-end 0.07% 0.07% 0.13% 0.14%
Nonperforming assets and
past due loans to total
assets, at period-end 0.05% 0.06% 0.13% 0.14%
--------------------------------------------------------------------------
NONINTEREST INCOME AND EXPENSE BREAKDOWN:
Noninterest income:
Fees charged for
deposit services $786 $920 $1,041 $1,014
Gains on sales of
mortgage loans, net
of costs 287 291 508 351
Net income (loss) on
other real estate owned - 73 (5) (9)
Commissions earned on
financial services sales 166 146 137 140
Other noninterest
income 260 308 216 260
------ ------ ------ ------
Total noninterest
income $1,499 $1,738 $1,897 $1,756
------ ------ ------ ------
Noninterest expenses:
Salaries and payroll
taxes $4,014 $3,738 $3,610 $3,671
Employee benefits -
health and welfare 365 258 245 237
Employee benefits -
retirement 486 148 33 125
Occupancy 991 978 913 947
Equipment 426 468 505 513
Data processing 394 525 532 518
Marketing 193 140 296 300
Professional fees 343 264 174 164
Postage 99 79 93 108
Stationery and supplies 157 121 98 115
Cash management
services 137 131 158 122
Other noninterest expenses 762 843 872 728
------ ------ ------ ------
Total noninterest
expenses $8,367 $7,693 $7,529 $7,548
------ ------ ------ ------
--------------------------------------------------------------------------
AVERAGE BALANCES:
Federal funds sold and
interest-bearing
deposits $15,512 $20,056 $37,521 $9,513
Investment securities and
securities
available-for-sale 157,348 140,143 103,384 122,192
Loans, net of unearned
income 940,368 914,052 873,278 851,436
Loans originated for sale 7,068 4,738 8,320 5,196
Total earning assets 1,120,296 1,078,989 1,022,503 988,337
Total assets 1,167,536 1,126,923 1,071,793 1,033,102
Interest-bearing deposits:
NOW accounts 87,742 89,532 89,308 85,917
Savings and money
market accounts 201,479 208,538 194,197 194,141
Time deposits 364,888 361,653 348,394 314,116
Noninterest-bearing
deposits 245,886 228,429 221,033 191,551
Total deposits 899,995 888,152 852,932 785,725
Short-term borrowings 139,635 118,077 105,985 128,547
Long-term borrowings 26,231 26,186 20,462 20,000
Total interest-bearing
liabilities 819,975 803,986 758,346 742,721
Stockholders' equity 91,367 89,730 88,743 87,180
--------------------------------------------------------------------------
YIELD ANALYSIS:
Federal funds sold and
interest-bearing deposits 1.59% 1.29% 0.96% 0.89%
Investment securities and
securities
available-for-sale (FTE) 3.92% 4.07% 4.45% 4.30%
Loans, net of unearned
income (FTE) 6.20% 5.89% 5.68% 5.71%
Total yield on earning
assets (FTE) 5.81% 5.57% 5.38% 5.49%
Interest-bearing deposits
NOW accounts 0.16% 0.15% 0.15% 0.13%
Savings and money
market accounts 0.47% 0.41% 0.37% 0.36%
Time deposits 2.48% 2.42% 2.39% 2.39%
Short-term borrowings 1.74% 1.17% 0.77% 0.77%
Long-term borrowings 5.22% 5.09% 5.35% 5.36%
Total cost of interest-
bearing liabilities 1.70% 1.55% 1.46% 1.40%
--------------------------------------------------------------------------
(a) Core operating performance reflects GAAP-based performance presented
on a fully tax-equivalent basis, exclusive of non-recurring items,
where applicable. There were no non-recurring items in the periods
presented.
(b) Deposits plus customer-related short-term borrowings in the form of
commercial paper and repurchase agreements.
--------------------------------------------------------------------------
Certain reclassifications of information previously reported
have been made to conform with current presentation.
SOURCE Columbia Bancorp
 back to top
Related links:
http://www.columbank.com
Company News On-Call:
http://www.prnewswire.com/comp/127921.html
CONTACT:
John A. Scaldara, Jr., President and COO,
+1-410-423-8012, or James P. Radick, CFO, +1-410-423-8020, both
of Columbia Bancorp
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