COLUMBIA, Md., Oct. 16 /PRNewswire/ -- Columbia Bancorp (Nasdaq: CBMD),
parent company of The Columbia Bank (the "Bank"), today announced core
earnings for the nine months ended September 30, 2001 of $6.14 million ($.85
per diluted share) compared to $5.51 million ($.77 per diluted share) for the
same period in 2000, representing a 11.3% 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 nine
months ended September 30, 2000 were $3.90 million ($.54 per diluted share)
and reflected pre-tax one-time merger-related charges of $2.31 million.
Returns on average equity for the nine months ended September 30, 2001 and
2000 (before merger-related expenses) were 12.27% and 11.93%, respectively.
Returns on average assets (before merger-related expenses) were 1.01% and
1.02%, respectively.
Assets totalled $824.8 million at September 30, 2001, representing an
increase of 7.9% compared to $764.7 million at September 30, 2000. During the
period since September 30, 2000, total loans and leases grew 11.9% to
$576.5 million, customer related funding sources (deposits and other
borrowings from core customers) increased 8.0% to $730.1 million and
stockholders' equity increased 8.6% to $69.1 million.
Earnings for the third quarter 2001 totalled $2.04 million ($.28 per
diluted share) compared to $2.08 million ($.29 per diluted share) for the
prior year period, representing a 1.9% decrease. Operating performance during
the third quarter 2001 was again strongly influenced by the dramatic decline
in interest rates. Reflecting rate adjustments totalling 3.50% initiated by
the Federal Reserve since the beginning of the year through September 30,
2001, the Company's net interest margin fell to 4.41% during the third quarter
2001 compared to 5.32% for the prior year period. Despite an increase in
average earning assets of 10.2%, net interest income declined from
$9.13 million during the third quarter 2000 to $8.33 million during the third
quarter 2001 as a result of the pressure on the net interest margin.
Management anticipates that the net interest margin will remain under pressure
through the fourth quarter as the Company's loan and investment portfolios
absorb the full impact of recent Federal Reserve actions. Additional actions
by the Federal Reserve to lower interest rates will result in further pressure
on the net interest margin. Management anticipates that when interest rates
stabilize, the net interest margin will improve as the Bank's $274.8 million
certificate of deposit portfolio with an average maturity of less than nine
months continues to reprice downward.
Noninterest income totalled $1.56 million during the third quarter 2001
compared to $1.05 million for the prior year period. The strong 48.8%
increase was due primarily to growth in transaction based service fees and
mortgage banking revenues.
Noninterest expense, excluding merger-related expenses, for the third
quarter 2001 grew $220,000, or 3.4%, 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 .13% for
the third quarter 2001 as compared to .34% for the same period in 2000. At
September 30, 2001, the allowance for loan losses totalled $7.66 million, or
1.33% of loans outstanding, as compared to 1.31% at September 30, 2000. Total
nonperforming assets and past due loans increased from $4.93 million at
September 30, 2000 to $5.77 million at September 30, 2001. As previously
reported, the increase was primarily attributable to the placement of a single
commercial banking relationship with a local manufacturer on non-accrual
status. The Company believes that the carrying value of these loans
($2.04 million at September 30, 2001) is adequately secured by the underlying
collateral. Other real estate owned declined from $3.23 million at
September 30, 2000 to $1.76 million at September 30, 2001. Since December 31,
2000, nonperforming assets have declined from $7.43 million to $5.77 million,
reflecting improvement in both nonaccrual loans and other real estate owned.
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-two 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 Nine Months Ended
September 30,
2001 2000 % Change
(unaudited)
SUMMARY OF OPERATING RESULTS:
Net interest income $25,842 $25,710 0.5%
Provision for credit losses 1,010 1,430 -29.4%
Noninterest income 4,156 2,924 42.1%
Noninterest expense before
merger-related expenses 19,779 18,741 5.5%
Income tax provision 3,070 2,252 36.3%
Net income 6,139 3,901 57.4%
Net income before merger-related
expenses 6,139 5,515 11.3%
PER SHARE DATA:
Net income:
Basic $0.86 $0.55 56.4%
Diluted 0.85 0.54 57.4%
Net income before merger-related
expenses:
Basic 0.86 0.77 11.7%
Diluted 0.85 0.77 10.4%
Average number of shares
outstanding:
Basic 7,151,447 7,155,262 -0.1%
Diluted 7,216,089 7,197,459 0.3%
Book value, at period end $9.67 $8.89 8.8%
Tangible book value, at period
end 9.67 8.89 8.8%
Cash dividends declared 0.30 0.27 11.1%
PERIOD END DATA:
Assets $824,810 $764,654 7.9%
Deposits 631,155 606,958 4.0%
Loans and leases, net of unearned
income 576,456 515,119 11.9%
Investment securities and
securities available-for-sale 154,896 163,273 -5.1%
Stockholders' equity 69,104 63,636 8.6%
PERFORMANCE RATIOS:
Return on average assets 1.01% 0.72%
Return on average assets before
merger-related expenses 1.01% 1.02%
Return on average stockholders'
equity 12.27% 8.44%
Return on average stockholders'
equity before merger-related
expenses 12.27% 11.93%
Net interest margin (FTE) 4.60% 5.20%
Efficiency ratio before merger-
related expenses(FTE) 65.57% 65.20%
CAPITAL RATIOS:
Period-end capital to risk-
weighted assets:
Tier 1 10.34% 10.81%
Total 11.49% 11.95%
Period-end tier 1 leverage ratio 8.50% 8.71%
ASSET QUALITY:
Net charge-offs $377 $764 -50.7%
Nonperforming assets:
Nonaccrual loans 3,469 1,374 152.5%
Restructured loans 244 - 0.0%
Loans 90+ days past due and
accruing 297 319 -6.9%
Other real estate owned 1,764 3,233 -45.4%
Total nonperforming
assets and past due
loans 5,774 4,926 17.2%
Allowance for credit losses to
loans, net of unearned income,
at period-end 1.33% 1.31%
Nonperforming and past-due loans
to total loans, net of unearned
income, at period-end 0.70% 0.33%
Nonperforming assets and past-due
loans to total assets, at period-
end 0.70% 0.64%
Annualized net charge-offs to
average loans, net of unearned
income 0.09% 0.21%
As of and Three Months Ended
September 30,
2001 2000 % Change
(unaudited)
SUMMARY OF OPERATING RESULTS:
Net interest income $8,329 $9,126 -8.7%
Provision for credit losses 182 618 -70.6%
Noninterest income 1,558 1,047 48.8%
Noninterest expense before
merger-related expenses 6,619 6,399 3.4%
Income tax provision 1,045 1,076 -2.9%
Net income 2,041 2,079 -1.8%
Net income before merger-related
expenses 2,041 2,080 -1.9%
PER SHARE DATA:
Net income :
Basic $0.29 $0.29 0.0%
Diluted 0.28 0.29 -3.4%
Net income before merger-related
expenses:
Basic 0.29 0.29 0.0%
Diluted 0.28 0.29 -3.4%
Average number of shares
outstanding:
Basic 7,144,925 7,156,025 -0.2%
Diluted 7,229,231 7,198,427 0.4%
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 1.00% 1.12%
Return on average assets before
merger-related expenses 1.00% 1.12%
Return on average stockholders'
equity 11.87% 13.11%
Return on average stockholders'
equity before merger-related
expenses 11.87% 13.12%
Net interest margin (FTE) 4.41% 5.32%
Efficiency ratio before merger-
related expenses(FTE) 66.56% 62.66%
CAPITAL RATIOS:
Period-end capital to risk-
weighted assets:
Tier 1
Total
Period-end tier 1 leverage ratio
ASSET QUALITY:
Net charge-offs $190 $441 -56.9%
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 0.13% 0.34%
COLUMBIA BANCORP
Financial Highlights
(Dollars in Thousands Except Per-Share Data)
As of and Nine Months Ended
September 30,
2001 2000 % Change
(unaudited)
AVERAGE BALANCES:
Federal funds sold $28,749 $17,865 60.9% (a)
Investment securities and
securities available-for-sale 159,950 157,787 1.4%
Loans and leases, net of unearned
income 561,603 486,199 15.5%
Loans originated for sale 4,932 1,712 188.1% (a)
Total earning assets 755,234 663,563 13.8%
Total assets 809,229 718,828 12.6%
Interest-bearing deposits
NOW accounts 60,728 57,562 5.5%
Savings and money market
accounts 173,665 174,381 -0.4%
Time deposits 271,932 224,739 21.0%
Total deposits 634,119 575,350 10.2%
Short-term borrowings 85,911 54,808 56.7% (a)
Long-term borrowings 20,000 20,000 0.0%
Total interest-bearing
liabilities 612,236 531,490 15.2%
Stockholders' equity 66,899 61,746 8.3%
YIELD ANALYSIS:
Federal funds sold 4.38% 6.23%
Investment securities and
securities available-for-sale 6.39% 6.41%
Loans and leases, net of unearned
income (FTE) 8.62% 9.47%
Total yield on earning assets
(FTE) 7.99% 8.66%
Interest-bearing deposits
NOW accounts 0.53% 1.14%
Savings and money market
accounts 2.78% 3.47%
Time deposits 5.90% 5.39%
Short-term borrowings 3.79% 5.64%
Long-term borrowings 5.44% 5.27%
Total cost of interest-bearing
liabilities 4.17% 4.32%
(a) Variances reflect significant fluctuations in account balances due to
the nature of the accounts.
As of and Three Months Ended
September 30,
2001 2000 % Change
(unaudited)
AVERAGE BALANCES:
Federal funds sold $28,511 $16,418 73.7% (a)
Investment securities and
securities
available-for-sale 146,365 156,935 -6.7%
Loans and leases, net of unearned
income 576,603 510,443 13.0%
Loans originated for sale 3,646 1,362 167.7% (a)
Total earning assets 755,125 685,158 10.2%
Total assets 808,303 739,567 9.3%
Interest-bearing deposits
NOW accounts 60,151 59,192 1.6%
Savings and money market
accounts 160,982 173,073 -7.0%
Time deposits 270,782 240,145 12.8%
Total deposits 617,796 593,919 4.0%
Short-term borrowings 96,164 56,850 69.2% (a)
Long-term borrowings 20,000 20,000 0.0%
Total interest-bearing
liabilities 608,079 549,260 10.7%
Stockholders' equity 68,204 63,081 8.1%
YIELD ANALYSIS:
Federal funds sold 3.53% 6.66%
Investment securities and
securities
available-for-sale 5.87% 6.53%
Loans and leases, net of unearned
income (FTE) 8.11% 9.72%
Total yield on earning assets
(FTE) 7.50% 8.92%
Interest-bearing deposits
NOW accounts 0.46% 1.00%
Savings and money market
accounts 2.22% 3.55%
Time deposits 5.70% 5.68%
Short-term borrowings 3.09% 5.89%
Long-term borrowings 5.79% 5.23%
Total cost of interest-bearing
liabilities 3.85% 4.51%
(a) Variances reflect significant fluctuations in account balances due to
the nature of the accounts.
COLUMBIA BANCORP
Consolidated Statements of Condition
(Dollars in Thousands)
Sept. 30 Sept. 30 Dec. 31,
2001 2000 2000
(unaudited) (audited)
Assets
Cash and due from banks $28,128 $34,015 $31,931
Federal funds sold 32,951 26,296 15,540
Investment securities 102,529 101,780 137,674
Securities available-for-sale 52,367 61,493 61,337
Residential mortgage loans originated
for sale 10,793 1,423 1,911
Loan and lease receivables:
Commercial 158,192 170,593 170,910
Leases 1,503 1,335 1,723
Real estate development and
construction 160,022 114,956 129,336
Real estate mortgage:
Residential 16,029 18,252 18,594
Commercial 88,068 72,516 75,325
Retail, principally second
mortgage loans and residential
equity lines of credit 150,888 135,056 139,967
Credit card 2,179 2,325 2,572
Other 167 531 1,035
Total loans and leases 577,048 515,564 539,462
Less: unearned income, net of
origination costs (592) (445) (411)
allowance for credit
losses (7,659) (6,737) (7,026)
Total loans and leases, net 568,797 508,382 532,025
Other real estate owned 1,764 3,233 2,996
Property and equipment, net 10,822 10,899 11,372
Prepaid expenses and other assets 16,659 17,133 17,864
Total assets $824,810 $764,654 $812,650
Liabilities
Deposits:
Noninterest-bearing $136,156 $127,021 $130,155
Interest-bearing 494,999 479,937 500,329
Total deposits 631,155 606,958 630,484
Short-term borrowings 98,983 69,172 93,184
Long-term borrowings 20,000 20,000 20,000
Accrued expenses and other liabilities 5,568 4,888 4,462
Total liabilities 755,706 701,018 748,130
Stockholders' equity
Common stock, $.01 par value per
share; authorized 10,000,000 shares;
outstanding 7,143,376, 7,156,025 and
7,149,968 shares, respectively 71 71 71
Additional paid-in capital 48,155 48,449 48,378
Retained earnings 20,506 15,906 16,512
Accumulated other comprehensive income 372 (790) (441)
Total stockholders' equity 69,104 63,636 64,520
Total liabilities and
stockholders' equity $824,810 $764,654 $812,650
COLUMBIA BANCORP
Consolidated Statements of Income and Comprehensive Income
(Dollars in Thousands Except Per-Share Data)
Nine Months Ended
September 30,
2001 2000
(unaudited)
Interest income:
Loans and leases $36,424 $34,572
Investment securities 7,587 7,495
Federal funds sold 942 833
Total interest income 44,953 42,900
Interest expense:
Deposits 15,860 14,085
Borrowings 3,251 3,105
Total interest expense 19,111 17,190
Net interest income 25,842 25,710
Provision for credit losses 1,010 1,430
Net interest income after
provision
for credit losses 24,832 24,280
Noninterest income:
Fees charged for services 2,170 1,750
Gains on sales of mortgage loans,
net of costs 668 270
Net income on other real estate
owned 228 174
Other 1,090 730
Total noninterest income 4,156 2,924
Noninterest expense:
Salaries and employee benefits 10,287 9,492
Occupancy, net 2,698 2,548
Equipment 1,682 1,459
Data processing 945 1,134
Marketing 341 659
Cash management services 470 356
Professional fees 676 489
Deposit insurance 138 127
Merger-related expenses - 2,310
Other 2,542 2,477
Total noninterest expense 19,779 21,051
Income before income taxes 9,209 6,153
Income tax provision 3,070 2,252
Net income 6,139 3,901
Other comprehensive income, net of
tax - unrealized net gain (loss) on
securities available-for-sale 813 357
Comprehensive income $6,952 $4,258
Per common share data:
Net income: Basic $0.86 $0.55
Diluted 0.85 0.54
Cash dividends declared $0.30 $0.27
Three Months Ended
September 30,
2001 2000
(unaudited)
Interest income:
Loans and leases $11,827 $12,504
Investment securities 2,146 2,576
Federal funds sold 254 275
Total interest income 14,227 15,355
Interest expense:
Deposits 4,856 5,124
Borrowings 1,042 1,105
Total interest expense 5,898 6,229
Net interest income 8,329 9,126
Provision for credit losses 182 618
Net interest income after
provision for credit losses 8,147 8,508
Noninterest income:
Fees charged for services 827 590
Gains on sales of mortgage loans,
net of costs 275 103
Net income on other real estate
owned 51 118
Other 405 236
Total noninterest income 1,558 1,047
Noninterest expense:
Salaries and employee benefits 3,469 3,418
Occupancy, net 949 794
Equipment 562 494
Data processing 339 318
Marketing 58 164
Cash management services 207 141
Professional fees 199 167
Deposit insurance 48 43
Merger-related expenses - 1
Other 788 860
Total noninterest expense 6,619 6,400
Income before income taxes 3,086 3,155
Income tax provision 1,045 1,076
Net income 2,041 2,079
Other comprehensive income, net of
tax - unrealized net gain (loss) on
securities available-for-sale 264 410
Comprehensive income $2,305 $2,489
Per common share data:
Net income: Basic $0.29 $0.29
Diluted 0.28 $0.29
Cash dividends declared $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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