THIRD QUARTER HIGHLIGHTS
- Net income of $9.3 million, up 11% from third quarter 2006; earnings per
diluted share of $0.53
- Results include acquisitions of Mountain Bank Holding Company and Town
Center Bancorp, completed July 23, 2007.
- Reached milestone of over $3 billion in assets, which were $3.12 billion,
a 22% increase from $2.55 billion December 31, 2006.
- Total loans were $2.21 billion, an increase of $504 million, or 29%, from
December 31, 2006.
- Asset quality remains good
- Total deposits were $2.5 billion, up 22% from December 31, 2006.
- Linked-quarter efficiency ratio improves to 59.23%
- Columbia Bank attains #1 deposit market share in Pierce County; Bank of
Astoria maintains #1 deposit market share in Clatsop County.
TACOMA, Wash., Oct. 25 /PRNewswire-FirstCall/ -- Columbia Banking
System, Inc. (Nasdaq: COLB) today announced earnings for the third quarter
2007 of $9.3 million, an increase of 11% from $8.3 million for the third
quarter of 2006. Earnings were $0.53 per diluted share, up from $0.52 per
diluted share one year ago. Pro-forma earnings for the third quarter, which
exclude nonrecurring expenses associated with the acquisitions of Mountain
Bank Holding Company and Town Center Bancorp, were $9.5 million, resulting
in pro-forma earnings per diluted share of $0.54. Revenue (net interest
income plus noninterest income) was $36.5 million for the third quarter of
2007, up 20% from $30.5 million one year ago. Return on average equity and
return on average tangible equity for the third quarter 2007 were 12.18%
and 15.81%, respectively, compared to 13.88% and 16.32%, respectively, for
the third quarter of the prior year. The decreases in return on equity and
return on tangible equity for the quarter were primarily due to the
increase in shareholder equity related to the two acquisitions in the third
quarter of 2007. Return on average tangible equity, a non-GAAP performance
measure, is used by Columbia's management in recognition of the goodwill
created by acquisitions, providing a more consistent comparison with
pre-acquisition performance.
Third quarter 2007 results reflect the financial consolidation of
Mountain Bank Holding Company and Town Center Bancorp, which were acquired
on July 23, 2007; consequently, third quarter and year-to-date 2006
financial information does not include the results of the two
organizations. For comparative purposes to prior periods, Mountain Bank
Holding Company and Town Center Bancorp combined contributed $287 million
in loans, $360 million in assets, and $305 million in deposits, all as of
July 23, 2007.
Net income for the nine months ended September 30, 2007 increased $1.3
million to $25.1 million, up 6% from $23.8 million for the first nine
months of 2006. On a diluted per share basis, net income for the nine
months ended September 30, 2007 was $1.51, compared with $1.47 for the same
period last year, an increase of 3%. Return on average equity and return on
average tangible equity for the nine months ended September 30, 2007 were
12.92% and 16.03%, respectively, compared to 13.58% and 16.02%,
respectively, for the same period of 2006. Revenue for the nine months
ended September 30, 2007 was $99.8 million, up 9% from $91.4 million for
the first nine months of 2006.
Melanie Dressel, President & Chief Executive Officer said, "We continue
to experience good earnings growth due to increased interest income
resulting from higher loan volumes, reflecting our strong internal growth
as well as the impact of our recent acquisitions. This was a landmark
quarter for Columbia, as we reached $3 billion in assets, $2 billion in
loans, and closed two strategic acquisitions extending our geographic
footprint into two important markets. We are beginning to benefit from the
planned cost savings associated with these transactions, although it will
take several months to complete the integration process. We are eager to
build on these investments by offering a broader array of products and
services to our new customers, enabling us to enhance and deepen these
relationships."
Ms. Dressel continued, "Maintaining the stability of our net interest
margin at 4.4% was also a noteworthy achievement in light of the margin
compression that many of our competitors and peers are experiencing.
Columbia's dedicated staff continued their commitment to enhancing and
deepening customer relationships, resulting in organic growth in loans and
deposits of approximately $217 million and $131 million, respectively, for
the first nine months of 2007. As of June 30, 2007, Columbia Bank has the
number one share of the deposit market in Pierce County, Washington,
according to the FDIC Deposit Market Share Report. Bank of Astoria
continues to maintain their number one status in their primary market while
recently celebrating their 40th anniversary of service to communities along
the northern coast of Oregon."
At September 30, 2007, Columbia's total assets were $3.12 billion, an
increase of 22% from $2.55 billion at December 31, 2006. Total loans were
$2.21 billion at September 30, 2007, up 29% from $1.71 billion at year-end
2006, and 34% from $1.66 billion at September 30, 2006. Total deposits
increased to $2.48 billion at September 30, 2007, an increase of 22% from
December 31, 2006. Core deposits totaled $1.64 billion at September 30,
2007, comprising 66% of total deposits.
Operating Results
Net Interest Income
Net interest income increased $4.4 million, or 18%, in the third
quarter 2007 compared to the third quarter 2006. The increase is due to
increased loans outstanding from new loan originations as well as loans
derived from acquisitions. For the three months and nine months ended
September 30, 2007, funding costs have increased as our core deposits have
shifted within our existing portfolio toward higher cost core and non-core
funding products. In addition, the deposits derived from our acquisitions
were comprised of a greater percentage of non-core deposits. Columbia has
maintained a stable net interest margin because we were able to offset the
increased funding costs with higher yielding assets. The net interest
margin was 4.40% for the third quarter of 2007, compared to 4.41% for the
third quarter of 2006. On a linked quarterly basis, the net interest margin
was 4.37% and 4.36%, respectively, for the first and second quarters of
2007. The 50 basis point reduction in the prime rate on September 18, 2007
had a fractional impact on our net interest income, because the rate change
occurred so late in the third quarter. Due to our asset sensitive position,
the full impact will not be realized until the fourth quarter, as we have
over $650 million in loans tied to prime related indices which adjust on a
daily basis.
Average interest-earning assets increased to $2.70 billion, or 18%,
during the third quarter of 2007, compared with $2.29 billion during the
third quarter of 2006. The yield on average interest-earning assets
increased 44 basis points to 7.41% during the third quarter of 2007, from
6.97% for the same period in 2006. Average interest-bearing liabilities
increased to $2.18 billion from $1.80 billion last year. The cost of
average interest-bearing liabilities increased 49 basis points to 3.74% in
the third quarter of 2007, compared to 3.25% in the third quarter of 2006.
For the nine months ended September 30, 2007, net interest income
increased 9% to $79.3 million from $73.0 million for the same period last
year. During the first nine months of 2007, Columbia's net interest margin
decreased to 4.38% from 4.51% for the same period of 2006. Average
interest-earning assets grew to $2.52 billion during the first nine months
of 2007, compared with $2.25 billion for the same period of 2006. The yield
on average interest-earning assets increased 47 basis points to 7.27%
during the first nine months of 2007, from 6.80% in 2006. In comparison,
average interest-bearing liabilities grew to $2.00 billion compared with
$1.76 billion for the first nine months of 2006. The cost of average
interest-bearing liabilities increased 71 basis points to 3.64% during the
first nine months of 2007, compared to 2.93% for the same period in 2006.
Noninterest income
Total noninterest income for the third quarter 2007 was $7.6 million,
an increase of 25% from $6.1 million a year ago. The increase in
noninterest income is primarily due to increased service charges and other
miscellaneous fees earned over a larger customer base. The increase in
service charges is a result of a change in our deposit account fee
structure combined with an increase in the number of deposit accounts. The
increase in deposit accounts results from a combination of organic growth
and accounts obtained from our two acquisitions which closed early in the
third quarter. The increase in other miscellaneous fees is attributed to
the two acquisitions and fees collected from increased activity within our
wealth management advisory services and our customer interest rate swap
program which we started during the second quarter of 2007. Fees earned
during the first nine months of 2007 for wealth management advisory
services within our CB Financial Services unit have increased $509,000, or
86%, over the same period in 2006. Total noninterest income for the first
nine months of 2007 was $20.5 million, up from $18.3 million for the same
period of 2006. These increases are primarily attributable to the same
factors discussed above for the three month period.
Noninterest expense
Noninterest expense for the third quarter of 2007 was $22.4 million up
from $18.1 million for the same period in 2006. The two acquisitions during
the quarter represent approximately $2.1 million of the increase in
noninterest expense inclusive of an estimated $300,000 of nonrecurring
items. Ms. Dressel noted, "We are pleased that even with merger expenses,
our efficiency ratio improved to 59.23% for the third quarter, from 63.39%
in the first quarter 2007, and 60.04% in the second quarter of 2007."
In addition, Other Noninterest Expense in the third quarter 2006 was
decreased $611,000 by the favorable mark to market adjustments associated
with our interest rate floor instruments. After considering the prior year
adjustment for the interest rate floors and the effect of the acquisitions,
the increase in noninterest expense on a comparative basis for the quarter
approximates $1.6 million.
Noninterest expense for the first nine months of 2007 was $63.1
million, an increase of 9.5% from $57.6 million for the same period of
2006. During the second quarter 2006, Other Noninterest Expense was
impacted $1.8 million by the unfavorable mark to market adjustments
associated with our interest rate floor instruments. After considering the
prior year-to-date net adjustments of $1.2 million for the interest rate
floors, included in Other Noninterest Expense, and the effect of the
acquisitions, the increase in noninterest expense on a comparative basis
for the first nine months of 2007 approximates $4.6 million. This increase
is largely attributed to costs associated with our expansion efforts within
the King, Thurston and Whatcom County markets.
Nonperforming Assets and Loan Loss Provision
During the third quarter of 2007, Columbia allocated $1.2 million to
its provision for loan and lease losses, compared to $650,000 for the same
period in 2006. The increased allocation for the three months ending
September 30, 2007 is due to moderate loan growth during the period. In the
third quarter of 2007, Columbia had total charge-offs of $528,000 and
recoveries of $146,000, resulting in a net charge-off position of $382,000.
The current quarter compares favorably to the same period last year when
total charge-offs were $843,000 coupled with recoveries of $129,000,
resulting in a net charge-off position of $714,000.
For the first nine months of 2007, the Company allocated $2.2 million
to its provision for loan and lease losses, compared to $1.1 million for
the same period in 2006. This increased allocation is consistent with the
rate of loan growth for the first nine months of 2007 compared to the same
period in 2006. Year-to-date, the company's organic increase in net loans
has been approximately $217 million compared to $91 million during the
prior year-to-date period. For the first nine months of 2007, charge-offs
were $854,000 and recoveries were $662,000, resulting in a year-to-date net
charge-off position of $192,000, or 0.01% of total loans. The current
year-to-date compares favorably to the same period last year when total
charge-offs were $1.42 million coupled with recoveries of $405,000,
resulting in a net charge-off position of $1.02 million. Ms. Dressel
commented, "As the economy of the Pacific Northwest changes, we will
maintain a prudent approach to credit quality, and expect to add to our
provision for loan loss as appropriate to ensure we maintain adequate
reserves."
At September 30, 2007, Columbia's ratio of nonperforming assets to
total assets was 0.33%, compared to 0.20% of period-end assets one year
ago. The increase in nonperforming assets during the quarter was centered
in a single $4.9 million credit originated in October of 2006 in which
Columbia Bank participates with another lender who acts as agent in the
transaction. The borrower is engaged in the business of selling residential
lots to builders for the purpose of constructing single family residences.
The borrower's inability to obtain final plat approval prior to the
expiration of agreements for the sale of lots at a predetermined price
combined with softening market conditions resulted in new agreements for
the sale of lots at prices reduced from the original agreements. Given
these developments, management believes the conservative course of action
is to place the loan on non-accrual until a restructure of the debt is
completed. As a result, our ratio of the allowance for loan and lease
losses to nonperforming loans declined to 248% at September 30, 2007
compared with 580% at December 31, 2006 and 427% at September 30, 2006.
Expansion Activities
The acquisitions of Mountain Bank Holding Company, and Town Center
Bancorp closed on July 23, 2007, bringing Columbia's number of branches to
53, located in nine counties in Washington and Oregon. These strategic
acquisitions expand Columbia's footprint into important markets. The
Company will continue to look for opportunities to grow strategically
through de novo expansion and accretive partnerships.
Columbia Bank's previously announced Lacey Branch, which had been
delayed by permitting issues, is currently under construction and is
scheduled to open in the next few months. A new Bellingham office is slated
to open during the fourth quarter of this year.
About Columbia
Headquartered in Tacoma, Washington, Columbia Banking System, Inc. is a
Tacoma-based bank holding company whose wholly owned banking subsidiaries
are Columbia Bank and Bank of Astoria, which operate a combined total of 53
branches. Columbia Bank is a Washington state-chartered full-service
commercial bank. With the July 23, 2007 completion of the acquisitions of
Mountain Bank Holding Company and Town Center Bancorp, Columbia Bank has 48
banking offices in Pierce, King, Cowlitz, Kitsap and Thurston counties in
Washington State, and Clackamas and Multnomah counties in Oregon. Included
in Columbia Bank are former branches of Mt. Rainier National Bank, doing
business as Mt. Rainier Bank, with 7 branches in King and Pierce counties.
Bank of Astoria, a federally insured commercial bank headquartered in
Astoria, Oregon, operates four branches in Clatsop County: Astoria,
Warrenton, Seaside and Cannon Beach; and one branch 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 Columbia's management's expectations regarding future events and
developments such as future operating results, growth in loans and
deposits, continued success of Columbia's 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 Columbia's 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, national and international economic conditions
are less favorable than expected or have a more direct and pronounced
effect on Columbia than expected and adversely affect Columbia's ability to
continue its internal growth at historical rates and maintain the quality
of its earning assets; (2) changes in interest rates reduce interest
margins more than expected and negatively affect funding sources; (3)
projected business increases following strategic expansion or opening or
acquiring new branches are lower than expected; (4) costs or difficulties
related to the integration of acquisitions are greater than expected; (5)
competitive pressure among financial institutions increases significantly;
(6) legislation or regulatory requirements or changes adversely affect the
businesses in which Columbia is engaged.
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.
Unaudited Three Months Ended Nine Months Ended
(in thousands, September 30, September 30,
except per share) 2007 2006 2007 2006
Earnings
Net interest income $28,860 $24,405 $79,258 $73,013
Provision for loan
and lease losses $1,231 $650 $2,198 $1,115
Noninterest income $7,631 $6,108 $20,549 $18,348
Noninterest expense $22,425 $18,098 $63,093 $57,574
Net income $9,256 $8,335 $25,083 $23,762
Per Share
Net income (basic) $0.53 $0.52 $1.52 $1.49
Net income (diluted) $0.53 $0.52 $1.51 $1.47
Averages
Total assets $2,969,197 $2,504,371 $2,738,099 $2,458,431
Interest-earning
assets $2,702,487 $2,290,351 $2,519,623 $2,250,192
Loans $2,102,281 $1,647,471 $1,905,945 $1,609,739
Securities $572,124 $627,821 $584,057 $630,895
Deposits $2,382,881 $1,975,103 $2,159,495 $1,960,387
Core deposits $1,610,523 $1,433,641 $1,514,175 $1,424,671
Shareholders'
Equity $301,499 $238,272 $273,731 $234,015
Financial Ratios
Return on average
assets 1.24% 1.32% 1.22% 1.29%
Return on average
equity 12.18% 13.88% 12.92% 13.58%
Return on average
tangible equity(1) 15.81% 16.32% 16.03% 16.02%
Average equity to
average assets 10.15% 9.51% 9.48% 9.52%
Net interest margin 4.40% 4.41% 4.38% 4.51%
Efficiency ratio
(tax equivalent) (2) 59.23% 58.81% 60.79% 59.48%
September 30, December 31,
Period end 2007 2006 2006
Total assets $3,122,744 $2,507,450 $2,553,131
Loans $2,212,751 $1,655,809 $1,708,962
Allowance for loan
and lease losses $25,380 $20,926 $20,182
Securities $577,712 $611,497 $605,133
Deposits $2,477,794 $2,020,065 $2,023,351
Core deposits $1,637,530 $1,460,634 $1,473,701
Shareholders' equity $329,969 $245,801 $252,347
Book value per share $18.45 $15.32 $15.71
Tangible book value
per share $12.79 $13.27 $13.68
Nonperforming assets
Nonaccrual loans $9,983 $4,101 $2,414
Restructured loans 257 804 1,066
Other personal property owned -- -- --
Other real estate owned 181 -- --
Total nonperforming assets $10,421 $4,905 $3,480
Nonperforming loans to
period-end loans 0.46% 0.30% 0.20%
Nonperforming assets to
period-end assets 0.33% 0.20% 0.14%
Allowance for loan and
lease losses to
period-end loans 1.15% 1.26% 1.18%
Allowance for loan
and lease losses
to nonperforming loans 247.85% 426.63% 579.94%
Allowance for loan and
lease losses to
nonperforming assets 243.55% 426.63% 579.94%
Net loan charge-offs
(recoveries) $192(3) $1,018(4) $2,712(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 and mark-to-
market adjustments of interest rate floor instruments.
(3) For the nine months ended September 30, 2007.
(4) For the nine months ended September 30, 2006.
(5) For the twelve months ended December 31, 2006.
FINANCIAL STATISTICS
Columbia Banking System, Inc. Period End
Unaudited September 30, December 31,
(in thousands) 2007 2006 2006
Loan Portfolio Composition
Commercial business $732,195 $600,615 $617,899
Real Estate:
One-to-four family
residential 55,233 49,507 51,277
Five or more family
residential and commercial 872,342 704,452 687,635
Total Real Estate 927,575 753,959 738,912
Real Estate Construction:
One-to-four family
residential 231,017 77,093 92,124
Five or more family
residential and commercial 154,455 80,918 115,185
Total Real Estate
Construction 385,472 158,011 207,309
Consumer 171,786 145,873 147,782
Subtotal loans 2,217,028 1,658,458 1,711,902
Less: Deferred loan fees (4,277) (2,649) (2,940)
Total loans $2,212,751 $1,655,809 $1,708,962
Loans held for sale $2,273 $1,160 $933
Deposit Composition
Demand and other
noninterest bearing $474,600 $455,773 $432,293
Interest bearing demand 451,282 395,281 414,198
Money market 593,301 495,933 516,415
Savings 118,347 113,647 110,795
Certificates of deposit 840,264 559,431 549,650
Total deposits $2,477,794 $2,020,065 $2,023,351
QUARTERLY FINANCIAL STATISTICS
Columbia Banking System, Inc.
Unaudited
(in thousands,
except per share) Three Months Ended
Sep 30 Jun 30 Mar 31 Dec 31 Sep 30
2007 2007 2007 2006 2006
Earnings
Net interest
income $28,860 $25,695 $24,703 $24,750 $24,405
Provision for
loan and
lease losses $1,231 $329 $638 $950 $650
Noninterest
income $7,631 $6,741 $6,177 $6,324 $6,108
Noninterest
expense $22,425 $20,266 $20,402 $18,560 $18,098
Net income $9,256 $8,544 $7,283 $8,341 $8,335
Per Share
Net income
(basic) $0.53 $0.53 $0.45 $0.52 $0.52
Net income
(diluted) $0.53 $0.53 $0.45 $0.52 $0.52
Averages
Total
assets $2,969,197 $2,654,863 $2,586,025 $2,517,836 $2,504,371
Interest-
earning
assets $2,702,487 $2,460,603 $2,392,372 $2,310,502 $2,290,351
Loans $2,102,281 $1,846,163 $1,765,692 $1,688,600 $1,647,471
Securities $572,124 $582,378 $597,952 $602,075 $627,821
Deposits $2,382,881 $2,090,273 $2,001,136 $2,024,108 $1,975,103
Core
deposits $1,610,523 $1,485,966 $1,444,210 $1,459,281 $1,433,641
Share-
holders'
Equity $301,499 $262,905 $256,292 $249,202 $238,272
Financial
Ratios
Return on
average
assets 1.24% 1.29% 1.14% 1.31% 1.32%
Return on
average
equity 12.18% 13.04% 11.52% 13.28% 13.88%
Return on
average
tangible
equity 15.81% 15.04% 13.38% 15.49% 16.32%
Average
equity to
average
assets 10.15% 9.90% 9.91% 9.90% 9.51%
Net interest
margin 4.40% 4.36% 4.37% 4.43% 4.41%
Efficiency
ratio (tax
equivalent) 59.23% 60.04% 63.39% 57.41% 58.81%
Period end
Total
assets $3,122,744 $2,660,946 $2,676,204 $2,553,131 $2,507,450
Loans $2,212,751 $1,859,592 $1,833,852 $1,708,962 $1,655,809
Allowance
for loan
and lease
losses $25,380 $21,339 $20,819 $20,182 $20,926
Securities $577,712 $570,742 $599,306 $605,133 $611,497
Deposits $2,477,794 $2,117,325 $2,081,026 $2,023,351 $2,020,065
Core
deposits $1,637,530 $1,472,206 $1,518,797 $1,473,701 $1,460,634
Share-
holders'
equity $329,969 $259,773 $261,329 $252,347 $245,801
Book value
per share $18.45 $16.07 $16.17 $15.71 $15.32
Tangible
book value
per share $12.79 $14.06 $14.16 $13.68 $13.27
Nonperforming
assets
Nonaccrual
loans $9,983 $4,972 $2,580 $2,414 $4,101
Restructured
loans 257 985 806 1,066 804
Other personal
property owned -- 32 -- -- --
Other real
estate owned 181 -- -- -- --
Total non-
performing
assets $10,421 $5,989 $3,386 $3,480 $4,905
Nonperforming
loans to
period-end
loans 0.46% 0.32% 0.18% 0.20% 0.30%
Nonperforming
assets to
period-end
assets 0.33% 0.23% 0.13% 0.14% 0.20%
Allowance for
loan and lease
losses to
period-end
loans 1.15% 1.15% 1.14% 1.18% 1.26%
Allowance for
loan and lease
losses to
nonperforming
loans 247.85% 358.22% 614.86% 579.94% 426.63%
Allowance for
loan and lease
losses to
nonperforming
assets 243.55% 356.30% 614.86% 579.94% 426.63%
Net loan
charge-offs
(recoveries) $382 $(191) $1 $1,694 $714
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
Columbia Banking System, Inc.
(Unaudited)
Three Months Ended Nine Months Ended
(in thousands, September 30, September 30,
except per share) 2007 2006 2007 2006
Interest Income
Loans $42,353 $32,010 $112,607 $90,982
Taxable securities 4,625 5,019 14,067 15,185
Tax-exempt securities 2,005 1,944 5,925 5,124
Federal funds sold and
deposits with banks 395 193 1,180 354
Total interest income 49,378 39,166 133,779 111,645
Interest Expense
Deposits 16,841 10,868 42,617 28,767
Federal Home Loan
Bank advances 2,454 3,370 8,117 8,344
Long-term obligations 584 519 1,604 1,470
Other borrowings 639 4 2,183 51
Total interest
expense 20,518 14,761 54,521 38,632
Net Interest Income 28,860 24,405 79,258 73,013
Provision for loan
and lease losses 1,231 650 2,198 1,115
Net interest income
after provision
for loan and
lease losses 27,629 23,755 77,060 71,898
Noninterest Income
Service charges and
other fees 3,561 2,891 9,813 8,632
Merchant services fees 2,251 2,154 6,344 6,366
Gain on sale of
securities available
for sale, net -- -- -- 10
Bank owned life
insurance ("BOLI") 502 427 1,379 1,260
Other 1,317 636 3,013 2,080
Total noninterest
income 7,631 6,108 20,549 18,348
Noninterest Expense
Compensation and
employee benefits 12,159 9,878 34,365 28,973
Occupancy 3,241 2,735 9,023 8,068
Merchant processing 880 881 2,587 2,552
Advertising and
promotion 575 608 1,779 2,114
Data processing 743 475 1,863 1,795
Legal & professional
services 695 580 2,205 1,547
Taxes, licenses & fees 773 637 2,089 1,873
Gain on sale of other
real estate owned, net -- -- -- (11)
Other 3,359 2,304 9,182 10,663
Total noninterest
expense 22,425 18,098 63,093 57,574
Income before
income taxes 12,835 11,765 34,516 32,672
Provision for
income taxes 3,579 3,430 9,433 8,910
Net Income $9,256 $8,335 $25,083 $23,762
Net income per
common share:
Basic $.53 $.52 $1.52 $1.49
Diluted $.53 $.52 $1.51 $1.47
Dividend paid per
common share $0.17 $0.15 $0.49 $0.42
Average number of
common shares
outstanding 17,339 15,981 16,472 15,931
Average number of
diluted common
shares outstanding 17,533 16,143 16,636 16,135
CONSOLIDATED CONDENSED BALANCE SHEETS
Columbia Banking System, Inc.
(Unaudited)
(in thousands) September 30, December 31,
2007 2006
Assets
Cash and due from banks $82,760 $76,365
Interest-earning deposits with banks 6,695 13,979
Federal funds sold 15,000 14,000
Total cash and cash equivalents 104,455 104,344
Securities available for sale at fair value
(amortized cost of $567,804
and $598,703 respectively) 564,861 592,858
Securities held to maturity at cost
(fair value of $1,290 and $1,871 respectively) 1,245 1,822
Federal Home Loan Bank stock at cost 11,606 10,453
Loans held for sale 2,273 933
Loans, net of deferred loan fees of ($4,277)
and ($2,940), respectively 2,212,751 1,708,962
Less: allowance for loan and lease losses 25,380 20,182
Loans, net 2,187,371 1,688,780
Interest receivable 16,292 12,549
Premises and equipment, net 55,745 44,635
Other real estate owned 181 --
Goodwill 93,737 29,723
Other assets 84,978 67,034
Total Assets $3,122,744 $2,553,131
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing $474,600 $432,293
Interest-bearing 2,003,194 1,591,058
Total deposits 2,477,794 2,023,351
Short-term borrowings:
Federal Home Loan Bank advances 252,275 205,800
Securities sold under agreements to repurchase -- 20,000
Other borrowings 208 198
Total short-term borrowings 252,483 225,998
Long-term subordinated debt 25,498 22,378
Other liabilities 37,000 29,057
Total liabilities 2,792,775 2,300,784
Commitments and contingent liabilities -- --
Shareholders' equity:
Preferred stock (no par value)
Authorized, 2 million shares;
none outstanding -- --
Common stock September 30, December 31,
(no par value) 2007 2006
Authorized shares 63,034 63,034
Issued and
outstanding 17,882 16,060 224,804 166,763
Retained earnings 105,913 89,037
Accumulated other
comprehensive loss (748) (3,453)
Total shareholders'
equity 329,969 252,347
Total Liabilities
and Shareholders'
Equity $3,122,744 $2,553,131
SOURCE Columbia Banking System, Inc.
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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.
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