Company Remains Well Capitalized, With Solid Net Interest Margin and Strong
Business Fundamentals
TACOMA, Wash., July 24 /PRNewswire-FirstCall/ -- Columbia Banking
System, Inc. (Nasdaq: COLB) ("Columbia") today announced earnings for the
second quarter 2008 of $1.9 million, compared with $8.5 million for the
second quarter of 2007. Diluted earnings per share were $0.11, compared
with $0.53 per share a year earlier. The decrease in net income for the
quarter reflected the previously announced provision for loan losses of
$15.4 million for the second quarter 2008, which was due to an increase in
real estate construction related non-accrual loans resulting from the
slowing Pacific Northwest economic environment.
Revenue (net interest income plus noninterest income) was $39.6 million
for the second quarter of 2008, up 22% from $32.4 million a year earlier.
The net interest margin increased to 4.39% from 4.36% in the second quarter
of 2007, and from 4.38% in the first quarter of 2008. The efficiency ratio
improved to 59.31% for the second quarter of 2008 from 60.04% a year
earlier.
"The fundamentals of our business remain sound, despite the fact that
credit quality for nearly all northwest regional financial institutions is
under pressure," Melanie Dressel, President and Chief Executive Officer
said. "We believe our focus on fundamental banking will position us well to
manage through this challenging economic cycle."
Ms. Dressel continued, "Our loan portfolio is highly diverse, with less
than 20% of the total portfolio in real estate construction related loans;
approximately 12% is in the for-sale housing segment. Our core deposits,
which represent 80% of our total deposits, result from the strong
relationships we have built with our customers, and have helped us maintain
a stable net interest margin." Core deposits are defined as demand,
savings, and money market accounts, and certificates of deposit under
$100,000.
Columbia's capital position remains strong and is well above the
"well-capitalized" regulatory definition of 10% set by the Federal Deposit
Insurance Corporation (FDIC). The total risk-based capital ratio was 11.43%
at June 30 2008, compared with 12.83% one year earlier and 11.07% at the
end of the first quarter of 2008.
Columbia's liquidity ratio, a measure of funds available to meet the
loan and deposit needs of customers and for the general operations of the
Company, was approximately 28% at June 30, 2008, compared with 26% and 29%
at March 31, 2008 and December 31, 2007, respectively. The liquidity ratio
at June 30, 2008, translates into approximately $890 million of available
funding.
Columbia also announced that it will pay its quarterly cash dividend of
$0.17 per share on August 20, 2008, to shareholders of record as of the
close of business on August 6, 2008. "Reflecting our well-capitalized
position at June 30, 2008, our quarterly cash dividend is being maintained
at the same level as in the previous five quarters," Ms. Dressel said.
Return on average assets and return on average equity for the second
quarter 2008 were 0.24% and 2.19% respectively, compared to 1.29% and
13.04%, respectively, for the same period in 2007.
Net income for the six months ended June 30, 2008, was $12.9 million,
compared with $15.8 million for the first six months of 2007. On a diluted
per share basis, net income was $0.72, compared with $0.97 a year earlier.
Return on average assets and return on average equity for the first six
months of 2008 were 0.82% and 7.37%, respectively, compared with 1.22% and
12.29%, respectively, for the same period in 2007. Return on average
tangible equity for the first six months of 2008 was 10.87% compared to
14.23% for the same period last year. The efficiency ratio for the first
six months of 2008 improved to 60.77%, from 61.68% for the first six months
of 2007.
At June 30, 2008, Columbia's total assets were $3.17 billion, compared
with $3.18 billion at December 31, 2007. Total loans were $2.28 billion at
June 30, 2008, unchanged from $2.28 billion at year-end 2007. Total
deposits were $2.40 billion at June 30, 2008, compared with $2.50 billion
at December 31, 2007.
Results for the second quarter and first six months of 2008 reflect the
financial consolidation of Mountain Bank Holding Company and Town Center
Bancorp, which were both acquired on July 23, 2007; accordingly, the second
quarter and first six months of 2007 financial information does not include
the results of the two organizations. Additionally, earnings per diluted
share for the first quarter and first six months of 2008 were affected by
an increase in the total number of shares outstanding as a result of shares
issued in conjunction with the 2007 acquisitions.
During the second quarter, Columbia redeemed pre-tax $1.1 million of
the MasterCard International shares it obtained in connection with
MasterCard's 2006 initial public offering. Columbia also recognized
$612,364 of pre-tax income during the second quarter from the receipt of
life insurance proceeds received in connection with the death of a former
officer covered by bank owned life insurance ("BOLI").
In the first quarter, Columbia recorded a pre-tax gain on the sale of
investment securities in the amount of $881,872. The gain resulted from
repositioning the portfolio and extending its weighted average life. In
March 2008, Visa Inc completed its initial public offering; as a result,
Columbia received 118,637 shares of Visa Inc. Class B stock which were
subject to a partial mandatory redemption. On March 28, 2008 Visa redeemed
45,866 shares of Columbia's stock for net pre-tax cash proceeds of $1.96
million. In conjunction with the completion of Visa's IPO, Columbia also
recognized a pre-tax reversal of previously accrued Visa litigation expense
in the amount of $889,200.
For comparative purposes, the table below illustrates core earnings, a
non-GAAP measure removing the effect of income and expense items not
derived from customary business activities.
Core Earnings
(Dollars in thousands, except per share data)
Three months ended Six months ended
June 30, June 30,
2008 2007 2008 2007
Net Income $1,936 $8,544 $12,913 $15,827
Deduct: (amounts shown net of tax)
Gain on sale of investment
securities (568)
Redemption of Visa and
MasterCard shares (687) (1,952)
Reversal of previously accrued
litigation expense (573)
Insurance proceeds received on
death of former officer (395) (395)
Core Earnings $854 $8,544 $9,425 $15,827
Earnings per Diluted Share:
GAAP earnings $0.11 $0.53 $0.72 $0.97
Core earnings $0.05 $0.53 $0.52 $0.97
The amounts contained in the above table have been tax affected to
illustrate their impact on net income.
Second Quarter 2008 Operating Results
Net Interest Income
Net interest income for the second quarter of 2008 was $30.3 million,
an increase of $4.6 million, or 18%, from $25.7 million for the second
quarter 2007. The increase is primarily due to an 18% increase in earning
assets from the prior year. The increase in earning assets was due to a
combination of the 2007 acquisitions and new loan production. Columbia's
net interest margin was 4.39%, an increase from 4.36% for the second
quarter of 2007. On a linked quarterly basis, the net interest margin was
4.38% for the first quarter of 2008, and 4.29% for the fourth quarter of
2007.
Average interest-earning assets increased 18% to $2.90 billion in the
second quarter of 2008, up from $2.46 billion in the second quarter of
2007. The yield on average interest-earning assets decreased 90 basis
points to 6.33% in the second quarter of 2008, from 7.23% in the second
quarter in 2007. Average interest-bearing liabilities increased to $2.32
billion from $1.94 billion last year. The cost of average interest-bearing
liabilities decreased 118 basis points to 2.44% in the second quarter of
2008, compared with 3.62% in the second quarter of 2007.
For the six months ended June 30, 2008, net interest income increased
20% to $60.6 million from $50.4 million a year earlier. This increase for
the first half of 2008 primarily was driven by loan growth, coupled with a
decrease in interest expense on interest-bearing deposits.
During the first six months of 2008, Columbia's net interest margin
increased to 4.39% from 4.37% a year earlier. Average interest-earning
assets grew to $2.90 billion in the first six months of 2008 from $2.43
billion in the 2007 period. The yield on average interest-earning assets
decreased 57 basis points to 6.62% in the first six months of 2008 from
7.19% in 2007. In comparison, average interest-bearing liabilities grew to
$2.33 billion from $1.92 billion for the first six months of 2007. The cost
of average interest-bearing liabilities decreased 80 basis points to 2.78%
in the first six months of 2008, compared with 3.58% for the 2007 period.
Noninterest income
Total noninterest income for the second quarter 2008 was $9.3 million,
an increase of $2.6 million, or 38%, from $6.7 million a year earlier. The
increase in noninterest income is primarily due to the redemption of
MasterCard shares totaling $1.1 million, increased service charges and
other fees, and other income. Service charges and other fees increased
$445,000, or 14%, in the second quarter of 2008 compared with the 2007
period. This increase is the result of changes in the company's deposit
account fee structure in conjunction with an increase in the number of
deposit accounts, primarily due to the third quarter 2007 acquisitions.
Other income increased primarily due to the receipt of life insurance
proceeds received in connection with the death of a former officer covered
by BOLI.
For the six months ended June 30, 2008, noninterest income increased
$6.5 million, or 51%, from the 2007 period. The increase in noninterest
income is primarily due to proceeds from the redemption of Visa and
MasterCard shares of $3.0 million and a gain on the sale of investment
securities of $882,000. Services charges and other fees increased $1.1
million, or 17% in the first six months of 2008 from the 2007 period.
Noninterest expense
Noninterest expense for the second quarter of 2008 was $23.4 million,
an increase of $3.1 million, or 15%, from $20.3 million a year earlier. The
increase was primarily due to increased salary expense as a result of the
third quarter 2007 acquisitions and the expansion of the retail branch and
professional lending team.
Total noninterest expense for the first six months of 2008 increased
$6.3 million, or 15%, from the 2007 period. This increase was due primarily
to increased compensation and employee benefits as described earlier and
other expense increases also described earlier. Finally, occupancy expenses
increased $676,000 from the first half of 2007, primarily due to the 2007
acquisitions and two new branch locations opened during fourth quarter
2007.
Nonperforming Assets and Loan Loss Provision
Note: For a more complete discussion of the Company's Nonperforming
Assets and Loan Loss Provision, please refer to Columbia's press release
dated July 9, 2008, available on http://www.columbiabank.com.
The Company made a provision for loan and lease losses of $15.4 million
for the quarter ended June 30, 2008, compared with $2.1 million for the
first quarter of 2008, and $1.4 million in the fourth quarter of 2007. The
provision increased the total allowance for loan losses to 1.83% of net
loans at June 30, 2008. The additional provision is due to the weakness in
the for- sale housing industry resulting from the slowing economic
environment and non- accrual loans increasing to $71.7 million, compared
with $14.0 million at December 31, 2007. Net loan charge-offs for the
quarter were $1.54 million, compared with $761,000 for the first quarter of
2008, and $380,000 for the year ended December 31, 2007.
"As we have previously stated, Columbia is not immune to the
instability in the residential real estate markets and mortgage-related
industries," Ms. Dressel said. "We have seen significant declines in market
conditions in the past few months, with double-digit declines in both
year-over-year housing sales and in sale prices for land and lots in some
of our markets. We are diligent in maintaining our risk management
practices and monitoring the economic climate, and have taken appropriate
actions."
Columbia has placed more than $29 million of performing for-sale
housing loans on non-accrual status, and has allocated $7.0 million in
specific reserves.
Organizational Update
Ms. Dressel said, "Due to their proximity, two Mt. Rainier Bank branch
locations in Federal Way and Auburn, Washington were consolidated into two
Columbia Bank branches during the second quarter. The consolidations
brought our strong retail system to 53 branches in 10 counties in
Washington and Oregon." Ms. Dressel also noted, "We are very proud that
Columbia Bank was selected by Washington CEO magazine as one of
'Washington's Best 100 Companies to Work For' for 2008."
Conference Call
Columbia will discuss second quarter 2008 results on a conference call
scheduled for Thursday, July 24, 2008 at 1:00 p.m. PDT. To listen to this
discussion call 1-888-318-7969; Conference ID code 53553319. A conference
call replay will be available from approximately 4:00 p.m. PDT on July 24
through midnight PDT on Thursday, July 31, 2008. The conference call replay
can be accessed by dialing 1-800-642-1687 and entering Conference ID code
53553319.
About Columbia
Headquartered in Tacoma, Washington, Columbia Banking System, Inc. is
the holding company of Columbia Bank, a Washington state-chartered
full-service commercial bank which was selected by Washington CEO magazine
as one of 2008's "Washington's Best 100 Companies to Work For" . With the
2007 acquisitions of Mountain Bank Holding Company and Town Center Bancorp
and the 2008 internal merger of its subsidiary, Bank of Astoria, into
Columbia Bank, Columbia Banking System has 53 banking offices in Pierce,
King, Cowlitz, Kitsap, Thurston and Whatcom counties in Washington State,
and Clackamas, Clatsop, Tillamook and Multnomah counties in Oregon.
Included in Columbia Bank are former branches of Mt. Rainier National Bank,
doing business as Mt. Rainier Bank, with 5 branches in King and Pierce
counties. Columbia Bank does business under the Bank of Astoria name at the
Bank of Astoria's former branches located in Astoria, Warrenton, Seaside
and Cannon Beach in Clatsop County and in Manzanita in Tillamook County.
More information about Columbia can be found on its website at
http://www.columbiabank.com.
Note Regarding Forward Looking Statements
This news release includes forward looking statements, which management
believes are a benefit to shareholders. These forward looking statements
describe management's expectations regarding future events and developments
such as future operating results, growth in loans and deposits, continued
success of our style of banking and the strength of the local economy. The
words "will," "believe," "expect," "should," and "anticipate" and words of
similar construction are intended in part to help identify forward looking
statements. Future events are difficult to predict, and the expectations
described above are necessarily subject to risk and uncertainty that may
cause actual results to differ materially and adversely. In addition to
discussions about risks and uncertainties set forth from time to time in
our filings with the SEC, factors that may cause actual results to differ
materially from those contemplated by such forward looking statements
include, among others, the following possibilities: (1) local and national
economic conditions are less favorable than expected or have a more direct
and pronounced effect on us than expected and adversely affect our ability
to continue internal growth at historical rates and maintain the quality of
our earning assets; (2) a continued decline in the housing/real estate
market; (3) changes in interest rates significantly reduce interest margins
and negatively affect funding sources; (4) deterioration of credit quality
that could, among other things, increase defaults and delinquency risks in
the Banks' loan portfolios (5) projected business increases following
strategic expansion activities are lower than expected; (6) competitive
pressure among financial institutions increases significantly; (7)
legislation or regulatory requirements or changes adversely affect the
businesses in which we are engaged; and (8) our ability to realize the
efficiencies we expect to receive from our investments in personnel,
acquisitions and infrastructure.
Contacts: Melanie J. Dressel, President and
Chief Executive Officer
(253) 305-1911
Gary R. Schminkey, Executive Vice President
and Chief Financial Officer
(253) 305-1966
FINANCIAL STATISTICS
Columbia Banking System, Inc. Three Months Ended Six Months Ended
Unaudited June 30, June 30,
(in thousands except per share) 2008 2007 2008 2007
Earnings
Net interest income $30,274 $25,695 $60,601 $50,398
Provision for loan and
lease losses $15,350 $329 $17,426 $967
Noninterest income $9,305 $6,741 $19,462 $12,918
Noninterest expense $23,367 $20,266 $46,921 $40,668
Net income $1,936 $8,544 $12,913 $15,827
Per Share
Net income (basic) $0.11 $0.53 $0.72 $0.98
Net income (diluted) $0.11 $0.53 $0.72 $0.97
Averages
Total assets $3,182,877 $2,654,863 $3,184,445 $2,620,634
Interest-earning assets $2,902,449 $2,460,603 $2,904,310 $2,426,676
Loans $2,297,661 $1,846,163 $2,301,125 $1,806,150
Securities $584,780 $582,378 $583,418 $590,122
Deposits $2,413,225 $2,090,273 $2,434,208 $2,045,951
Core deposits $1,923,973 $1,733,698 $1,928,659 $1,838,486
Shareholders' equity $354,895 $262,905 $352,583 $259,617
Financial Ratios
Return on average assets 0.24% 1.29% 0.82% 1.22%
Return on average equity 2.19% 13.04% 7.37% 12.29%
Return on average tangible
equity(1) 3.56% 15.04% 10.87% 14.23%
Average equity to average
assets 11.15% 9.90% 11.07% 9.91%
Net interest margin 4.39% 4.36% 4.39% 4.37%
Efficiency ratio
(tax equivalent)(2) 59.31% 60.04% 60.77% 61.68%
June 30, December 31,
Period end 2008 2007 2007
Total assets $3,169,607 $2,660,946 $3,178,713
Loans $2,275,719 $1,859,592 $2,282,728
Allowance for loan and
lease losses $41,724 $21,339 $26,599
Securities $549,755 $570,742 $572,973
Deposits $2,398,924 $2,117,325 $2,498,061
Core deposits $1,933,256 $1,725,875 $1,997,155
Shareholders' equity $344,270 $259,773 $341,731
Book value per share $19.01 $16.07 $19.03
Tangible book value per share $13.35 $14.06 $13.29
Nonperforming assets
Nonaccrual loans $71,730 $4,972 $14,005
Restructured loans 540 985 456
Other personal property
owned - 32 -
Other real estate owned - - 181
Total nonperforming
assets $72,270 $5,989 $14,642
Nonperforming loans to
period-end loans 3.18% 0.32% 0.63%
Nonperforming assets to
period-end assets 2.28% 0.23% 0.46%
Allowance for loan and lease
losses to period-end loans 1.83% 1.15% 1.17%
Allowance for loan and lease
losses to nonperforming loans 57.73% 358.22% 183.94%
Allowance for loan and lease
losses to nonperforming assets 57.73% 356.30% 181.66%
Net loan charges-offs
(recoveries) $2,301 (3) $(190)(4) $380 (5)
(1) Annualized net income, excluding core deposit intangible asset
amortization, divided by average daily shareholders' equity, excluding
average goodwill and average core deposit intangible asset.
(2) Noninterest expense divided by the sum of net interest income and
noninterest income on a tax equivalent basis, excluding gain/loss
on sale of investment securities, net cost (gain) of OREO, proceeds
from redemption of Visa and Mastercard shares, reversal of previously
accrued Visa litigation expense, net income from BOLI policy swap
transactions, and death benefit insurance proceeds.
(3) For the six months ended June 30, 2008.
(4) For the six months ended June 30, 2007.
(5) For the twelve months ended December 31, 2007.
FINANCIAL STATISTICS
Columbia Banking System, Inc.
Unaudited June 30, December 31,
% of % of % of
(in thousands) 2008 Total 2007 Total 2007 Total
Loan Portfolio
Composition
Commercial
business $760,282 33.4% $681,534 36.7% $762,365 33.4%
Real Estate:
One-to-four
family
residential 55,504 2.4% 46,299 2.5% 60,991 2.7%
Five or more
family
residential
and
commercial 829,048 36.4% 677,477 36.4% 852,139 37.3%
Total Real
Estate 884,552 38.8% 723,776 38.9% 913,130 40.0%
Real Estate
Construction:
One-to-four
family
residential 281,848 12.4% 180,925 9.7% 269,115 11.8%
Five or more
family
residential
and
commercial 156,990 6.9% 127,769 6.9% 165,490 7.2%
Total Real
Estate
Construction 438,838 19.3% 308,694 16.6% 434,605 19.0%
Consumer 195,914 8.7% 148,869 8.0% 176,559 7.8%
Subtotal
loans 2,279,586 100.2% 1,862,873 100.2% 2,286,659 100.2%
Less: Deferred
loan fees (3,867) -0.2% (3,281 -0.2% (3,931) -0.2%
Total loans $2,275,719 100.0% $1,859,592 100.0% $2,282,728 100.0%
Loans held for
sale $3,323 $2,251 $4,482
June 30, December 31,
(in thousands) 2008 2007 2007
Deposit Composition
Demand and other
noninterest
bearing $480,612 $419,695 $468,237
Interest bearing
demand 445,798 440,051 478,596
Money market 580,535 509,463 609,502
Savings 118,145 102,997 115,324
Certificates of
deposit
< $100,000 308,166 253,669 325,496
Certificates of
deposit
> $100,000 399,950 330,964 428,885
Wholesale
certificates
of deposit 65,718 60,486 72,021
Total deposits $2,398,924 $2,117,325 $2,498,061
QUARTERLY FINANCIAL STATISTICS
Columbia Banking System, Inc.
Unaudited Three Months Ended
(in thousands except Jun 30 Mar 31 Dec 31 Sept 30 Jun 30
per share) 2008 2008 2007 2007 2007
Earnings
Net interest income $30,274 $30,327 $29,562 $28,860 $25,695
Provision for loan
and lease losses $15,350 $2,076 $1,407 $1,231 $329
Noninterest income $9,305 $10,157 $7,199 $7,631 $6,741
Noninterest expense $23,367 $23,554 $25,736 $22,425 $20,266
Net income $1,936 $10,977 $7,298 $9,256 $8,544
Per Share
Net income (basic) $0.11 $0.61 $0.41 $0.53 $0.53
Net income (diluted) $0.11 $0.61 $0.41 $0.53 $0.53
Averages
Total assets $3,182,877 $3,186,013 $3,131,122 $2,969,197 $2,654,863
Interest-earning
assets $2,902,449 $2,906,172 $2,836,045 $2,702,487 $2,460,603
Loans $2,297,661 $2,304,588 $2,241,893 $2,102,281 $1,846,163
Securities $584,780 $582,056 $572,412 $572,124 $582,378
Deposits $2,413,225 $2,455,190 $2,487,356 $2,382,881 $2,090,273
Core deposits $1,923,973 $1,933,346 $1,960,896 $1,919,908 $1,733,698
Shareholders'
equity $354,895 $350,271 $335,510 $301,499 $262,905
Financial Ratios
Return on average
assets 0.24% 1.39% 0.92% 1.24% 1.29%
Return on average
equity 2.19% 12.60% 8.63% 12.18% 13.04%
Return on average
tangible equity 3.56% 18.33% 13.08% 15.81% 15.04%
Average equity
to average assets 11.15% 10.99% 10.72% 10.15% 9.90%
Net interest margin 4.39% 4.38% 4.29% 4.40% 4.36%
Efficiency ratio
(tax equivalent) 59.31% 62.36% 62.83% 59.23% 60.04%
Period end
Total assets $3,169,607 $3,246,586 $3,178,713 $3,122,744 $2,660,946
Loans $2,275,719 $2,300,465 $2,282,728 $2,212,751 $1,859,592
Allowance for
loan and lease
losses $41,724 $27,914 $26,599 $25,380 $21,339
Securities $549,755 $598,470 $572,973 $577,712 $570,742
Deposits $2,398,924 $2,526,514 $2,498,061 $2,477,794 $2,117,325
Core deposits $1,933,256 $1,997,975 $1,997,155 $1,964,029 $1,725,875
Shareholders'
equity $344,270 $351,667 $341,731 $329,969 $259,773
Book value per share $19.01 $19.45 $19.03 $18.45 $16.07
Tangible book value
per share $13.35 $13.77 $13.29 $12.79 $14.06
Nonperforming assets
Nonaccrual loans $71,730 $14,368 $14,005 $9,983 $4,972
Restructured loans 540 468 456 257 985
Other personal
property owned - 187 - - 32
Other real estate
owned - - 181 181 -
Total
nonperforming
assets $72,270 $15,023 $14,642 $10,421 $5,989
Nonperforming loans
to period-end loans 3.18% 0.64% 0.63% 0.46% 0.32%
Nonperforming assets
to period-end assets 2.28% 0.46% 0.46% 0.33% 0.23%
Allowance for loan
and lease losses to
period-end loans 1.83% 1.21% 1.17% 1.15% 1.15%
Allowance for loan
and lease losses to
nonperforming loans 57.73% 188.15% 183.94% 247.85% 358.22%
Allowance for loan and
lease losses to
nonperforming assets 57.73% 185.81% 181.66% 243.55% 356.30%
Net loan charges-offs
(recoveries) $1,540 $761 $188 $382 $(191)
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
Columbia Banking System, Inc.
(Unaudited) Three Months Ended Six Months Ended
June 30, June 30,
(in thousands except per share) 2008 2007 2008 2007
Interest Income
Loans $37,334 $36,224 $78,637 $70,254
Taxable securities 4,895 4,657 9,875 9,442
Tax-exempt securities 1,999 1,960 4,000 3,920
Federal funds sold and deposits in banks 95 414 244 785
Total interest income 44,323 43,255 92,756 84,401
Interest Expense
Deposits 11,461 13,617 26,296 25,776
Federal Home Loan Bank advances 1,995 2,484 4,577 5,663
Long-term obligations 429 513 916 1,020
Other borrowings 164 946 366 1,544
Total interest expense 14,049 17,560 32,155 34,003
Net Interest Income 30,274 25,695 60,601 50,398
Provision for loan and lease losses 15,350 329 17,426 967
Net interest income after provision
for loan and lease losses 14,924 25,366 43,175 49,431
Noninterest Income
Service charges and other fees 3,738 3,293 7,306 6,252
Merchant services fees 2,162 2,124 4,078 4,093
Redemption of Visa and Mastercard shares 1,066 - 3,028 -
Gain on sale of investment securities,
net - - 882 -
Bank owned life insurance ("BOLI") 549 451 1,054 877
Other 1,790 873 3,114 1,696
Total noninterest income 9,305 6,741 19,462 12,918
Noninterest Expense
Compensation and employee benefits 12,348 10,848 25,744 22,206
Occupancy 3,199 2,945 6,458 5,782
Merchant processing 904 884 1,770 1,707
Advertising and promotion 637 657 1,218 1,204
Data processing 783 553 1,598 1,120
Legal and professional fees 765 687 714 1,510
Taxes, licenses and fees 796 703 1,547 1,316
Net gain on sale of other real estate
owned - - (23) -
Other 3,935 2,989 7,895 5,823
Total noninterest expense 23,367 20,266 46,921 40,668
Income before income taxes 862 11,841 15,716 21,681
Provision (benefit) for income taxes (1,074) 3,297 2,803 5,854
Net Income $1,936 $8,544 $12,913 $15,827
Net income per common share
Basic $0.11 $0.53 $0.72 $0.98
Diluted $0.11 $0.53 $0.72 $0.97
Dividends paid per common share $0.17 $0.17 $0.34 $0.32
Weighted average number of common
shares outstanding 17,898 16,126 17,874 16,115
Weighted average number of diluted
common shares outstanding 18,021 16,258 17,998 16,261
CONSOLIDATED CONDENSED BALANCE SHEETS
Columbia Banking System, Inc.
(Unaudited) June 30, December 31,
(in thousands) 2008 2007
ASSETS
Cash and due from banks $97,076 $82,735
Interest-earning deposits with banks 8,552 11,240
Federal funds sold 10,000 -
Total cash and cash equivalents 115,628 93,975
Securities available for sale at fair value
(amortized cost of $554,547 and $558,685,
respectively) 549,755 561,366
Federal Home Loan Bank stock at cost 17,260 11,607
Loans held for sale 3,323 4,482
Loans, net of deferred loan fees of ($3,867) and
($3,931), respectively 2,275,719 2,282,728
Less: allowance for loan and lease losses 41,724 26,599
Loans, net 2,233,995 2,256,129
Interest receivable 12,289 14,622
Premises and equipment, net 60,558 56,122
Other real estate owned - 181
Goodwill 96,116 96,011
Core deposit intangible, net 6,458 7,050
Other assets 74,225 77,168
Total Assets $3,169,607 $3,178,713
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing $480,612 $468,237
Interest-bearing 1,918,312 2,029,824
Total deposits 2,398,924 2,498,061
Short-term borrowings:
Federal Home Loan Bank advances 329,000 257,670
Securities sold under agreements to repurchase 25,000 -
Other borrowings 5,107 5,061
Total short-term borrowings 359,107 262,731
Long-term subordinated debt 25,561 25,519
Other liabilities 41,745 50,671
Total liabilities 2,825,337 2,836,982
Commitments and contingent liabilities - -
Shareholders' equity
Preferred stock (no par value) - -
Authorized, 2 million shares;
none outstanding
June 30, December 31,
2008 2007
Common Stock (no par value)
Authorized shares 63,034 63,034
Issued and outstanding 18,111 17,953 228,826 226,550
Retained earnings 114,810 110,169
Accumulated other comprehensive
income 634 5,012
Total shareholders' equity 344,270 341,731
Total Liabilities and
Shareholders' Equity $3,169,607 $3,178,713
SOURCE Columbia Banking System, Inc.
 back to top
Related links:
http://www.columbiabank.com
CONTACT:
Melanie J. Dressel, President and Chief
Executive Officer, +1-253-305-1911, or Gary R. Schminkey,
Executive Vice President and Chief Financial Officer,
+1-253-305-1966, both of Columbia Banking System, Inc.
|
