COLUMBIA, Md., Oct. 19 /PRNewswire-FirstCall/ -- Columbia Bancorp
(Nasdaq: CBMD), parent company of The Columbia Bank (the "Bank"), today
announced net income for the nine months ended September 30, 2005 of $11.84
million compared to $9.61 million for the same period during 2004, an increase
of 23.1%. Fully diluted earnings per share increased 26.2%, from $1.30 for
the first nine months of 2004 to $1.64 in 2005. Returns on average equity
were 17.32% and 14.50% for the nine months ended September 30, 2005 and 2004,
respectively. Return on average assets was 1.27% for the nine months ended
September 30, 2005 compared to 1.19% for the same period in 2004.
Net income for the third quarter 2005 totaled $4.17 million compared to
$3.52 million for the third quarter 2004, an 18.4% increase. Fully diluted
earnings per share for the quarter increased 20.8% to $.58 for 2005 compared
to $.48 for 2004. Returns on average equity for the third quarter 2005 and
2004 were 17.73% and 15.60%, respectively. Returns on average assets for the
third quarter 2005 and 2004 were 1.29% and 1.24%, respectively.
THIRD QUARTER FINANCIAL HIGHLIGHTS
- Net interest income (FTE) increased $2.73 million, or 22.9%, over the
third quarter of 2004 and increased $7.72 million, or 22.8%, over the
first nine months of 2004.
- Return on average equity and return on average assets increased to
17.73% and 1.29%, respectively, for the third quarter of 2005 compared
to 15.60% and 1.24%, respectively, reported for the third quarter of
2004.
- The net interest margin (FTE) improved to 4.75% during the third
quarter of 2005 as compared to 4.41% during third quarter 2004 and
4.64% during the second quarter of 2005.
- The efficiency ratio (FTE) improved to 54.97% for the third quarter of
2005 compared to 56.14% for the same period of 2004.
- Total assets ($1.31 billion), loans, net of unearned income ($1.04
billion) and customer funding sources ($1.15 billion) reached record
levels at September 30, 2005 and represented growth since September 30,
2004 of 10.8%, 10.8% and 9.5%, respectively. During the nine months of
2005, loans, net of unearned income, and customer funding sources grew
at annualized rates of 12.2% and 16.8%, respectively.
- Non-performing assets decreased to .04% of total assets at September
30, 2005 compared to .06% at September 30, 2004.
DETAILED REVIEW OF FINANCIAL PERFORMANCE
Total assets at September 30, 2005 were $1.31 billion, representing growth
of $127.41 million, or 10.8%, since September 30, 2004. Loans, net of
unearned income, totaled $1.04 billion compared to $936.00 million at
September 30, 2004, representing growth of $101.02 million, or 10.8%. Growth
in the loan portfolio during the twelve months since September 30, 2004 has
been driven by the Company's continued success in the real estate development
and construction and commercial and industrial lending markets, which netted
increases in the respective portfolios of $77.40 million (23.3%) and $35.04
million (15.3%). Growth in the consumer loan portfolio, mainly consisting of
second mortgage and real estate equity lines of credit, contributed an
additional $3.25 million (1.7%). The commercial real estate portfolio declined
by $12.69 million (8.0%), primarily due to very aggressive market competition
relative to pricing terms and deal structuring. Customer funding sources,
representing deposits plus other short-term borrowings from core customers,
increased 9.5% to $1.15 billion at September 30, 2005. Shareholders' equity
rose to $94.43 million, or 4.8%, at September 30, 2005.
Operating performance through September 30, 2005 was primarily driven by a
net interest income (FTE) increase of 22.9% during the third quarter 2005 and
22.8% during the nine months ended September 30, 2005 as compared to the
corresponding periods of 2004. The increase in net interest income resulted
from continued growth in earning assets, most specifically, the loan
portfolio. The Company remained asset sensitive at September 30, 2005 and has
benefited from a series of short-term rate increases during the quarter and
throughout the year. As a result, the net interest margin (FTE) increased
.34% during the third quarter 2005 as compared to the third quarter 2004 and
.26% during the nine months ended September 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 muted by the increasing pressure of market
forces on the Company's overall cost of funding sources.
Non-interest income increased $92,000, or 5.3%, for the third quarter and
decreased $153,000, or 2.8%, for the first nine months of 2005 as compared to
the same periods 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 improved
during the third quarter of 2005, resulting in an increase in corresponding
revenues of $128,000 compared to the same period in 2004, while revenues for
the nine months ended September 30, 2005 were up 1.7% or $19,000. Commission
revenue on financial services sales was even with the comparable 2004 quarter
and was up $97,000, or 22.9%, for the first nine months of 2005 compared to
the same period in 2004. Other non-interest income increased $126,000 and
$315,000 for the third quarter and first nine months of 2005, respectively,
compared to 2004, principally due to fees generated from the prepayment of
several large commercial loan relationships.
Non-interest expense rose 18.1% and 13.7% for the third quarter and nine
months ended September 30, 2005, respectively, as compared to the
corresponding periods in 2004. The increase for the quarter and the year 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. Expenses incurred in preparation for the Company's
merger with Fulton Financial Corporation totaling $247,000 also contributed to
the overall non-interest expense increase. Despite the overall increase in
operating expenses, the efficiency ratio (FTE) improved to 55.32% for the nine
months ended September 30, 2005 compared to 58.04% for the same period in
2004.
Asset quality remained strong at September 30, 2005, with non-performing
assets and past-due loans totaling $587,000. As of September 30, 2005, non-
performing assets and past-due loans represented only .04% of total assets.
The ratio of non-performing loans and past-due loans to total loans improved
from .07% at September 30, 2004 to .06% at September 30, 2005. Net charge-
offs totaled $522,000 during the third quarter of 2005 and included a $450,000
charge-off of a single commercial relationship. Net charge-offs for the nine
months ended September 30, 2005 totaled $469,000 compared to net charge-offs
of $6,000 for the nine months ended September 30, 2004. At September 30,
2005, the allowance for credit losses totaled $12.56 million, or 1.21% of
loans, net of unearned income, compared to $11.51 million, or 1.23% of net
loans at September 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".
On July 26, 2005, the Company entered into a definitive Agreement and Plan
of Merger (the "Merger Agreement") with Fulton Financial Corporation
("Fulton"). Pursuant to the Merger Agreement, the Company will merge (the
"Merger") with and into Fulton, with Fulton surviving, and all of the
outstanding shares of common stock of the Company ("Company Common Stock")
will be converted into the right to receive shares of common stock of Fulton
("Fulton Common Stock"), cash, or a combination of both. Following the Merger,
the Company's wholly-owned banking subsidiary, The Columbia Bank, a Maryland
corporation (the "Bank") and certain other subsidiaries of the Company and the
Bank will continue operations as subsidiaries of Fulton. Under the terms of
the Merger Agreement, each share of Company Common Stock will be, at the
Effective Time (as defined in the Merger Agreement) of the Merger and at the
election of the holder exchanged for (i) 2.325 shares of Fulton Common Stock;
(ii) cash of $42.48; or (iii) a combination of (i) and (ii). This election is
subject to proration so that, in the aggregate, a minimum of 20% and a maximum
of 50% of total consideration for the shares of Company Common Stock will be
paid in cash.
Completion of the Merger is subject to customary conditions, including,
among others, the approval of the Merger by applicable bank regulatory
authorities and the approval of the Merger and the Merger Agreement by the
stockholders of the Company. In connection with the execution and delivery of
the Merger Agreement, the Company issued Fulton a warrant to acquire up to
1,881,809 shares (subject to adjustment) of Company Common Stock at an
exercise price of $37.26 per share, such warrant to be exercisable only upon
the occurrence of certain events in connection with a competing acquisition
proposal. Assuming that all conditions are satisfied without unexpected delay,
it is anticipated that the Merger will be consummated in the first quarter of
2006.
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 Nine Months Ended
September 30,
--------------------------------
2005 2004 % Change
--------------------------------
SUMMARY OF OPERATING RESULTS:
Tax equivalent interest income $56,910 $42,307 34.5%
Interest expense 15,349 8,466 81.3%
Tax equivalent net interest
income 41,561 33,841 22.8%
Tax equivalent adjustment 986 811 21.6%
Net interest income 40,575 33,030 22.8%
Provision for credit losses 1,441 692 108.2%
Noninterest income 5,238 5,391 (2.8%)
Noninterest expense 25,889 22,770 13.7%
Income before taxes 18,483 14,959 23.6%
Income tax provision 6,646 5,347 24.3%
Net income 11,837 9,612 23.1%
PER SHARE DATA:
Net income:
Basic $1.70 $1.34 26.9%
Diluted 1.64 1.30 26.2%
Average number of shares
outstanding:
Basic 6,947,046 7,160,055 (3.0%)
Diluted 7,218,696 7,398,029 (2.4%)
Book value, at period end $13.61 $12.66 7.5%
Tangible book value, at period
end 13.61 12.66 7.5%
Cash dividends declared $0.51 $0.45 13.3%
PERIOD END DATA:
Loans, net of unearned income $1,037,021 $936,000 10.8%
Investment securities held-to-
maturity and securities
available-for-sale 186,374 150,454 23.9%
Assets 1,306,522 1,179,107 10.8%
Noninterest-bearing deposits 252,503 246,092 2.6%
Interest-bearing deposits 720,661 669,250 7.7%
Total deposits 973,164 915,342 6.3%
Customer funding sources (a) 1,154,035 1,053,771 9.5%
Stockholders' equity 94,428 90,100 4.8%
PERFORMANCE RATIOS:
Return on average assets 1.27% 1.19%
Return on average stockholders'
equity 17.32% 14.50%
Net interest margin 4.54% 4.28%
Net interest margin (FTE) 4.65% 4.39%
Efficiency ratio (FTE)(b) 55.32% 58.04%
CAPITAL RATIOS:
Period-end capital to risk-
weighted assets:
Tier 1 10.00% 9.23%
Total 11.15% 10.35%
Period-end tier 1 leverage ratio 8.58% 8.51%
ASSET QUALITY:
Allowance for credit losses to
loans, net of unearned income, at
period-end 1.21% 1.23%
Net recoveries (charge-offs) $(469) $(6) 7716.7%
Annualized net recoveries
(charge-offs) to average loans,
net of unearned income (0.06%) 0.00%
Nonperforming assets:
Nonaccrual loans $453 $635 (28.7%)
Loans 90+ days past due and
accruing 134 22 509.1%
Other real estate owned - - na
------- -------
Total nonperforming
assets $587 $657 (10.7%)
------- -------
Nonperforming and past due loans
to total loans, net of unearned
income, at period-end 0.06% 0.07%
Nonperforming assets and past due
loans to total assets, at period-
end 0.04% 0.06%
NONINTEREST INCOME AND EXPENSE
BREAKDOWN:
Noninterest income:
Fees charged for services $2,450 $2,975 (17.6%)
Gains on sales of mortgage
loans, net of costs 1,169 1,150 1.7%
Net loss on other real estate
owned - 59 (100.0%)
Commissions earned on
financial services sales 520 423 22.9%
Other noninterest income 1,099 784 40.2%
----------------------
$5,238 $5,391 (2.8%)
----------------------
Noninterest expenses:
Salaries and employee benefits $14,730 $12,065 22.1%
Occupancy 2,891 2,838 1.9%
Equipment 1,308 1,486 (12.0%)
Data processing 1,295 1,575 (17.8%)
Marketing 1,006 736 36.7%
Professional fees 897 602 49.0%
Postage 324 280 15.7%
Stationery and supplies 344 334 3.0%
Cash management services 348 411 (15.3%)
Other noninterest expenses 2,746 2,443 12.4%
----------------------
$25,889 $22,770 13.7%
----------------------
AVERAGE BALANCES:
Federal funds sold and interest-
bearing deposits (c) $14,421 $22,354 (35.5%)
Investment securities held-to-
maturity and securities
available-for-sale 171,831 121,973 40.9%
Loans, net of unearned income 1,000,390 879,715 13.7%
Loans originated for sale (c) 7,706 6,080 26.7%
Total earning assets 1,194,348 1,030,122 15.9%
Total assets 1,246,833 1,077,454 15.7%
Interest-bearing deposits:
NOW accounts 86,632 88,257 (1.8%)
Savings and money market
accounts 183,790 198,994 (7.6%)
Time deposits 433,387 341,462 26.9%
Noninterest-bearing deposits 246,987 213,725 15.6%
Total deposits 950,796 842,438 12.9%
Short-term borrowings (c) 162,911 117,538 38.6%
Long-term borrowings 34,638 22,230 55.8%
Total interest-bearing
liabilities 901,358 768,481 17.3%
Stockholders' equity 91,351 88,555 3.2%
YIELD ANALYSIS:
Federal funds sold and interest-
bearing deposits (c) 2.73% 1.05%
Investment securities held-to-
maturity and securities
available-for-sale (FTE) 3.84% 4.19%
Loans, net of unearned income (FTE) 6.85% 5.77%
Total yield on earning assets (FTE) 6.37% 5.49%
Interest-bearing deposits
NOW accounts 0.17% 0.14%
Savings and money market
accounts 0.76% 0.38%
Time deposits 2.93% 2.40%
Short-term borrowings 2.72% 0.90%
Long-term borrowings 5.36% 5.25%
Total cost of interest-bearing
liabilities 2.28% 1.47%
As of and Three Months Ended
September 30,
---------------------------------
2005 2004 % Change
---------------------------------
SUMMARY OF OPERATING RESULTS:
Tax equivalent interest income $20,640 $15,097 36.7%
Interest expense 5,939 3,131 89.7%
Tax equivalent net interest
income 14,701 11,966 22.9%
Tax equivalent adjustment 317 264 20.1%
Net interest income 14,384 11,702 22.9%
Provision for credit losses 631 192 228.6%
Noninterest income 1,830 1,738 5.3%
Noninterest expense 9,087 7,693 18.1%
Income before taxes 6,496 5,555 16.9%
Income tax provision 2,330 2,037 14.4%
Net income 4,166 3,518 18.4%
PER SHARE DATA:
Net income:
Basic $0.60 $0.49 22.4%
Diluted 0.58 0.48 20.8%
Average number of shares
outstanding:
Basic 6,935,658 7,128,359 (2.7%)
Diluted 7,240,074 7,350,901 (1.5%)
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 1.29% 1.24%
Return on average stockholders'
equity 17.73% 15.60%
Net interest margin 4.65% 4.31%
Net interest margin (FTE) 4.75% 4.41%
Efficiency ratio (FTE)(b) 54.97% 56.14%
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) $(522) $81 (744.4%)
Annualized net recoveries
(charge-offs) to average
loans, net of unearned income (0.20%) 0.04%
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 $832 $920 (9.6%)
Gains on sales of mortgage
loans, net of costs 420 292 43.8%
Net loss on other real estate
owned - 73 (100.0%)
Commissions earned on
financial services sales 145 146 (0.7%)
Other noninterest income 433 307 41.0%
-----------------------
$1,830 $1,738 5.3%
-----------------------
Noninterest expenses:
Salaries and employee benefits $5,379 $4,144 29.8%
Occupancy 955 978 (2.4%)
Equipment 417 468 (10.9%)
Data processing 406 525 (22.7%)
Marketing 268 140 91.4%
Professional fees 449 264 70.1%
Postage 105 79 32.9%
Stationery and supplies 123 121 1.7%
Cash management services 117 131 (10.7%)
Other noninterest expenses 868 843 3.0%
-----------------------
$9,087 $7,693 18.1%
-----------------------
AVERAGE BALANCES:
Federal funds sold and
interest-bearing deposits (c) $14,849 $20,056 (26.0%)
Investment securities held-to-
maturity and securities
available-for-sale 178,739 140,143 27.5%
Loans, net of unearned income 1,025,465 914,052 12.2%
Loans originated for sale (c) 9,130 4,738 92.7%
Total earning assets 1,228,183 1,078,989 13.8%
Total assets 1,284,080 1,126,923 13.9%
Interest-bearing deposits:
NOW accounts 86,517 89,532 (3.4%)
Savings and money market
accounts 174,078 208,538 (16.5%)
Time deposits 453,346 361,653 25.4%
Noninterest-bearing deposits 252,142 228,429 10.4%
Total deposits 966,083 888,152 8.8%
Short-term borrowings (c) 180,185 118,077 52.6%
Long-term borrowings 36,496 26,186 39.4%
Total interest-bearing
liabilities 930,622 803,986 15.8%
Stockholders' equity 93,219 89,730 3.9%
YIELD ANALYSIS:
Federal funds sold and
interest-bearing deposits (c) 3.29% 1.29%
Investment securities held-to-
maturity and securities
available-for-sale (FTE) 3.79% 4.07%
Loans, net of unearned income (FTE) 7.21% 5.89%
Total yield on earning assets (FTE) 6.67% 5.57%
Interest-bearing deposits
NOW accounts 0.17% 0.15%
Savings and money market
accounts 1.12% 0.41%
Time deposits 3.04% 2.42%
Short-term borrowings 3.14% 1.17%
Long-term borrowings 5.51% 5.09%
Total cost of interest-bearing
liabilities 2.53% 1.55%
-------------------------------------------------------------------------
(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)
September 30, December 31,
2005 2004 2004
----------------------------------
(unaudited) (audited)
Assets
Cash and due from banks $39,314 $37,959 $30,012
Interest-bearing deposits with banks 205 206 208
Federal funds sold 15,905 36,409 9,904
Investment securities held-to-maturity 110,072 99,295 116,170
Securities available-for-sale 76,302 51,159 47,980
Residential mortgage loans originated
for sale 10,636 2,587 8,698
Loan receivables:
Real estate - development and
construction 409,662 332,258 345,375
Commercial 264,626 229,589 226,763
Real estate - mortgage:
Residential 19,750 17,564 17,272
Commercial 145,894 158,585 163,985
Consumer, principally second
mortgage loans and residential
equity lines of credit 197,277 194,031 196,198
Other 322 4,056 668
----------------------------------
Total loans 1,037,531 936,083 950,261
Less: Unearned income, net of
origination costs (510) (83) (91)
Allowance for credit
losses (12,555) (11,514) (11,583)
----------------------------------
Loans, net 1,024,466 924,486 938,587
Property and equipment, net 6,546 6,910 6,647
Prepaid expenses and other assets 23,076 20,096 20,800
----------------------------------
Total assets $1,306,522 $1,179,107 $1,179,006
==================================
Liabilities
Deposits:
Noninterest-bearing demand
deposits $252,503 $246,092 $256,132
Interest-bearing deposits 720,661 669,250 656,446
----------------------------------
Total deposits 973,164 915,342 912,578
Short-term borrowings 194,280 141,031 135,825
Subordinated debentures 16,496 6,186 10,310
Long-term borrowings 20,000 20,000 20,000
Accrued expenses and other liabilities 8,154 6,448 7,945
----------------------------------
Total liabilities 1,212,094 1,089,007 1,086,658
----------------------------------
Stockholders' equity
Common stock, $.01 par value per
share; authorized 10,000,000 shares;
outstanding 6,938,276, 7,117,317 and
7,114,267 shares, respectively 69 71 71
Additional paid-in capital 39,361 45,925 45,739
Retained earnings 54,724 43,956 46,419
Accumulated other comprehensive income
(loss) 274 148 119
----------------------------------
Total stockholders' equity 94,428 90,100 92,348
----------------------------------
Total liabilities and
stockholders' equity $1,306,522 $1,179,107 $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)
Nine Months Ended Three Months Ended
September 30, September 30,
------------------------------------
2005 2004 2005 2004
------------------------------------
(unaudited) (unaudited)
Interest income:
Loans $50,959 $37,717 $18,582 $13,428
Investment securities 4,671 3,603 1,618 1,340
Federal funds sold and interest-
bearing deposits with banks 294 176 123 65
------------------------------------
Total interest income 55,924 41,496 20,323 14,833
------------------------------------
Interest expense:
Deposits 10,650 6,796 4,004 2,450
Borrowings 4,699 1,670 1,935 681
------------------------------------
Total interest expense 15,349 8,466 5,939 3,131
------------------------------------
Net interest income 40,575 33,030 14,384 11,702
Provision for credit losses 1,441 692 631 192
------------------------------------
Net interest income after
provision for credit losses 39,134 32,338 13,753 11,510
------------------------------------
Noninterest income:
Fees charged for services 2,450 2,975 832 920
Gains on sales of mortgage loans,
net of costs 1,169 1,150 420 292
Net gain on other real estate
owned - 59 - 73
Commissions earned on financial
services sales 520 423 145 146
Other 1,099 784 433 307
------------------------------------
Total noninterest income 5,238 5,391 1,830 1,738
------------------------------------
Noninterest expense:
Salaries and employee benefits 14,730 12,065 5,379 4,144
Occupancy 2,891 2,838 955 978
Equipment 1,308 1,486 417 468
Data processing 1,295 1,575 406 525
Marketing 1,006 736 268 140
Professional fees 897 602 449 264
Postage 324 280 105 79
Stationery and supplies 344 334 123 121
Cash management services 348 411 117 131
Other 2,746 2,443 868 843
------------------------------------
Total noninterest expense 25,889 22,770 9,087 7,693
------------------------------------
Income before income taxes 18,483 14,959 6,496 5,555
Income tax provision 6,646 5,347 2,330 2,037
------------------------------------
Net income $11,837 $9,612 $4,166 $3,518
====================================
Per common share data:
Net income: Basic $1.70 $1.34 $0.60 $0.49
Diluted 1.64 1.30 0.58 0.48
Cash dividends declared $0.51 $0.45 $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)
Nine Months Ended Three Months Ended
September 30, September 30,
------------------------------------
2005 2004 2005 2004
------------------------------------
(unaudited) (unaudited)
GAAP-based Operating Performance
Measures:
Net interest income $40,575 $33,030 $14,384 $11,702
Provision for credit losses 1,441 692 631 192
Noninterest income 5,238 5,391 1,830 1,738
Noninterest expense 25,889 22,770 9,087 7,693
Income before taxes 18,483 14,959 6,496 5,555
Income tax provision 6,646 5,347 2,330 2,037
Net income 11,837 9,612 4,166 3,518
Return on average assets 1.27% 1.19% 1.29% 1.24%
Return on average equity 17.32% 14.50% 17.73% 15.60%
Net interest margin 4.54% 4.28% 4.65% 4.31%
Efficiency ratio 56.51% 59.26% 56.04% 57.24%
Net income per share - diluted $1.64 $1.30 $0.58 $0.48
-------------------------------------------------------------------------
Non-GAAP adjustments
Interest income on tax-exempt loans $718 $525 $89 $169
Interest income on tax-exempt
securities 268 286 228 95
------------------------------------
Total tax equivalent adjustment -
net interest income $986 $811 $317 $264
====================================
--------------------------------------------------------------------------
Core Operating Performance Measures:
(a)(b)
Net interest income - tax equivalent $41,561 $33,841 $14,701 $11,966
Tax equivalent adjustment (986) (811) (317) (264)
------------------------------------
Net interest income 40,575 33,030 14,384 11,702
Provision for credit losses 1,441 692 631 192
Noninterest income 5,238 5,391 1,830 1,738
Noninterest expense 25,889 22,770 9,087 7,693
Income before taxes 18,483 14,959 6,496 5,555
Income tax provision 6,646 5,347 2,330 2,037
Net income 11,837 9,612 4,166 3,518
Return on average assets 1.27% 1.19% 1.29% 1.24%
Return on average equity 17.32% 14.50% 17.73% 15.60%
Net interest margin (FTE) 4.65% 4.39% 4.75% 4.41%
Efficiency ratio (FTE) 55.32% 58.04% 54.97% 56.14%
Net income per share - diluted $1.64 $1.30 $0.58 $0.48
-------------------------------------------------------------------------
(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)
3Q05 2Q05 1Q05
----------------------------------
(unaudited)
SUMMARY OF OPERATING RESULTS:
GAAP-based:
Interest income $20,323 $18,657 $16,944
Interest expense 5,939 5,111 4,299
Net interest income 14,384 13,546 12,645
Provision for credit losses 631 560 250
Noninterest income 1,830 1,777 1,631
Noninterest expense 9,087 8,767 8,035
Income before taxes 6,496 5,996 5,991
Income tax provision 2,330 2,154 2,162
Net income 4,166 3,842 3,829
Based on core operating performance (a):
Tax-equivalent interest income $20,640 $18,953 $17,317
Interest expense 5,939 5,111 4,299
Tax-equivalent net interest
income 14,701 13,842 13,018
Tax-equivalent adjustment 317 296 373
Net interest income 14,384 13,546 12,645
Provision for credit losses 631 560 250
Noninterest income 1,830 1,777 1,631
Noninterest expense 9,087 8,767 8,035
Income before taxes 6,496 5,996 5,991
Income tax provision 2,330 2,154 2,162
Net income 4,166 3,842 3,829
-------------------------------------------------------------------------
PER SHARE DATA:
Net income:
GAAP-based:
Basic $0.60 $0.56 $0.55
Diluted 0.58 0.54 0.53
Based on core operating
performance (a):
Basic $0.60 $0.56 $0.55
Diluted 0.58 0.54 0.53
Average number of shares
outstanding:
Basic 6,935,658 6,921,811 6,984,185
Diluted 7,240,074 7,173,060 7,242,967
Book value, at period end $13.61 $13.17 $12.74
Tangible book value, at period end 13.61 13.17 12.74
Cash dividends declared 0.17 0.17 0.17
-------------------------------------------------------------------------
PERIOD END DATA:
Loans, net of unearned income $1,037,021 $1,029,568 $978,941
Investment securities held-to-
maturity and
securities available-for-sale 186,374 173,212 170,595
Assets 1,306,522 1,284,115 1,240,496
Noninterest-bearing deposits 252,503 263,834 248,122
Interest-bearing deposits 720,661 712,657 720,503
Total deposits 973,164 976,491 968,625
Customer funding sources (b) 1,154,035 1,137,342 1,104,701
Stockholders' equity 94,428 91,331 87,971
-------------------------------------------------------------------------
PERFORMANCE RATIOS:
GAAP-based:
Return on average assets 1.29% 1.23% 1.29%
Return on average stockholders'
equity 17.73% 17.08% 17.14%
Net interest margin 4.65% 4.54% 4.43%
Efficiency ratio 56.04% 57.21% 56.28%
Based on core operating performance (a):
Return on average assets 1.29% 1.23% 1.29%
Return on average stockholders'
equity 17.73% 17.08% 17.14%
Net interest margin (FTE) 4.75% 4.64% 4.56%
Efficiency ratio (FTE) 54.97% 56.13% 54.85%
-------------------------------------------------------------------------
CAPITAL RATIOS:
Period-end capital to risk-weighted
assets:
Tier 1 10.00% 9.67% 9.62%
Total 11.15% 10.81% 10.73%
Period-end tier 1 leverage ratio 8.58% 8.57% 8.62%
-------------------------------------------------------------------------
ASSET QUALITY:
Allowance for credit losses to
loans, net of unearned income, at
period-end 1.21% 1.21% 1.22%
Net recoveries (charge-offs) $(522) $(20) $73
Annualized net recoveries (charge-
offs) to average loans, net of
unearned income (0.20%) (0.01%) 0.03%
Nonperforming assets:
Nonaccrual loans $453 $1,043 $588
Loans 90+ days past due and
accruing 134 128 128
Other real estate owned - - -
------- ------- -------
Total nonperforming assets $587 $1,171 $716
------- ------- -------
Nonperforming and past due loans to
total loans, net of unearned income,
at period-end 0.06% 0.11% 0.07%
Nonperforming assets and past due
loans to total assets, at period-end 0.04% 0.09% 0.06%
-------------------------------------------------------------------------
NONINTEREST INCOME AND EXPENSE
BREAKDOWN:
Noninterest income:
Fees charged for deposit services $832 $824 $794
Gains on sales of mortgage
loans, net of costs 420 397 352
Commissions earned on financial
services sales 145 183 192
Other noninterest income 433 373 293
------- ------- -------
Total noninterest income $1,830 $1,777 $1,631
------- ------- -------
Noninterest expenses:
Salaries and payroll taxes $4,501 $4,146 $3,940
Employee benefits - health and
welfare 371 371 365
Employee benefits - retirement 507 507 22
Occupancy 955 938 998
Equipment 417 467 424
Data processing 406 437 452
Marketing 268 381 357
Professional fees 449 174 274
Postage 105 96 123
Stationery and supplies 123 110 111
Cash management services 117 123 108
Other noninterest expenses 868 1,017 861
------- ------- -------
Total noninterest expenses $9,087 $8,767 $8,035
------- ------- -------
-------------------------------------------------------------------------
AVERAGE BALANCES:
Federal funds sold and interest-
bearing deposits $14,849 $14,296 $14,109
Investment securities and
securities available-for-sale 178,739 172,833 163,757
Loans, net of unearned income 1,025,465 1,001,922 973,208
Loans originated for sale 9,130 8,070 5,883
Total earning assets 1,228,183 1,197,121 1,156,957
Total assets 1,284,080 1,248,918 1,206,651
Interest-bearing deposits:
NOW accounts 86,517 87,262 86,113
Savings and money market
accounts 174,078 184,600 192,899
Time deposits 453,346 441,267 405,018
Noninterest-bearing deposits 252,142 246,056 242,659
Total deposits 966,083 959,185 926,689
Short-term borrowings 180,185 155,492 152,754
Long-term borrowings 36,496 36,496 30,860
Total interest-bearing liabilities 930,622 905,117 867,644
Stockholders' equity 93,219 90,215 90,592
-------------------------------------------------------------------------
YIELD ANALYSIS:
Federal funds sold and interest-
bearing deposits 3.29% 2.69% 2.15%
Investment securities and
securities available-for-sale (FTE) 3.79% 3.84% 3.91%
Loans, net of unearned income (FTE) 7.21% 6.83% 6.49%
Total yield on earning assets (FTE) 6.67% 6.35% 6.07%
Interest-bearing deposits
NOW accounts 0.17% 0.16% 0.16%
Savings and money market
accounts 1.12% 0.65% 0.52%
Time deposits 3.04% 2.96% 2.77%
Short-term borrowings 3.14% 2.66% 2.26%
Long-term borrowings 5.51% 5.32% 5.23%
Total cost of interest-bearing
liabilities 2.53% 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 286 292 508 351
Net income (loss) on
other real estate
owned - 73 (5) (9)
Commissions earned on
financial services
sales 166 146 137 140
Other noninterest
income 261 307 216 260
------- ------- ------- -------
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
|
