COLUMBIA, Md., Oct. 26 /PRNewswire-FirstCall/ -- Columbia Bancorp
(Nasdaq: CBMD), parent company of The Columbia Bank (the "Bank"), today
announced net income for the third quarter 2004 of $3.52 million ($.48 per
diluted share), representing a return on average equity of 15.60% and a return
on average assets of 1.24%. Net income for the corresponding period of 2003
was $3.44 million ($.47 per diluted share), representing a return on average
equity of 16.56% and a return on average assets of 1.36%. For the nine months
ended September 30, 2004, net income totaled $9.61 million ($1.30 per diluted
share), representing an increase of 10% from the $8.77 million ($1.19 per
diluted share) for the same period during 2003. Returns on average equity
were 14.50% and 14.63% for the nine months ended September 30, 2004 and 2003,
respectively. Total assets reached a record level of $1.18 billion at
September 30, 2004.
THIRD QUARTER FINANCIAL HIGHLIGHTS
-- Loans grew to a record level of $936.0 million, increasing $138.9
million, or 17.4%, since September 30, 2003. Since December 31, 2003,
loans grew $100.5 million, representing an annualized rate of growth of
16.0%.
-- Customer funding sources (deposits and other short-term borrowings from
core customers) grew $151.6 million, or 16.8%, since September 30,
2003.
-- Credit quality remained strong with nonperforming assets and past due
loans totaling only $657,000, or .06% of total assets. Net loan loss
recoveries during the quarter totaled $81,000.
-- As expected, the Federal Reserve's actions to increase short-term
interest rates (a total of .75% since June 30, 2004) led to improvement
in the net interest margin. As compared to the second quarter 2004,
the net interest margin (FTE) increased from 4.29% to 4.41%.
DETAILED REVIEW OF FINANCIAL PERFORMANCE
Total assets at September 30, 2004 were $1.18 billion, representing growth
of $165.6 million, or 16.3% since September 30, 2003. Loans, net of unearned
income, totaled $936.0 million compared to $797.1 million at September 30,
2003, representing growth of $138.9 million, or 17.4%. Growth in the
portfolio since September 30, 2003 was supported by strength in all lending
activities. Specifically, the real estate development and construction
portfolio increased $70.9 million (27.1%), the consumer portfolio increased
$35.0 million (22.0%), and the commercial portfolio, inclusive of commercial
mortgages, increased $27.0 million (7.5%). Customer funding sources,
representing deposits plus other short-term borrowings from core customers,
increased 16.8% to $1.05 billion at September 30, 2004. Shareholders' equity
climbed 8.4% to $90.1 million at September 30, 2004.
Operating performance through September 30, 2004 was primarily driven by
growth in net interest income and containment of noninterest expense,
mitigated by a decline in revenue from mortgage banking activities. Net
interest income increased 11.5% during the third quarter 2004 and 10.0% during
the nine months ended September 30, 2004 as compared to the corresponding
periods of 2003, as a result of continued growth in earning assets. The net
interest margin (FTE) remained relatively stable during the quarter and nine
month periods of 2004 as compared to 2003, increasing .02% during the quarter
and decreasing .02% during the nine month period. The Company remained asset
sensitive at September 30, 2004 and will continue to benefit from the Federal
Reserve's action to increase short-term rates. Since the Federal Reserve's
action to increase rates beginning June 30, 2004, the Company's net interest
margin has improved. Compared to the second quarter 2004, the net interest
margin (FTE) improved from 4.29% to 4.41%. The ongoing benefit the Company
might achieve as a result of a rising interest rate environment may be reduced
depending upon the rate at which its cost of funds increases.
The Company has successfully managed the growth of noninterest expenses.
Noninterest expense decreased 2.3% during the third quarter 2004 compared to
2003 and increased only 1.4% during the nine months ended September 30, 2004
as compared to 2003. The efficiency ratio (FTE) improved to 56.1% during the
third quarter 2004 and to 58.0% during the nine months ended September 30,
2004 as the Company continued to effectively leverage its overhead
infrastructure.
As expected, noninterest income fell $1.0 million, or 37.4%, during the
third quarter 2004 and $1.8 million, or 25.2%, during the nine months ended
September 30, 2004, compared to the corresponding periods of 2003, primarily
as a result of a decline in mortgage banking activity. Specifically, mortgage-
banking revenue declined $877,000 and $1.5 million during the third quarter
and nine months ended September 30, 2004, respectively.
Asset quality remained very strong at September 30, 2004, with
nonperforming assets and past-due loans totaling $657,000. As of September
30, 2004, nonperforming assets and past-due loans represented only .06% of
total assets. The ratio of nonperforming loans and past-due loans to total
loans improved from .14% at September 30, 2003 to .07% at September 30, 2004.
Net recoveries totaled $81,000 during the third quarter. Net charge-offs for
the nine months ended September 30, 2004 totaled $6,000. Reflecting strong
asset quality, the provision for loan losses during the nine-month period
decreased from $1.05 million in 2003 to $692,000 in 2004. At September 30,
2004, the allowance for credit losses totaled $11.51 million, or 1.23% of
loans, compared to $10.56 million, or 1.32% of loans at September 30, 2003.
ABOUT COLUMBIA BANCORP
Columbia Bancorp, headquartered in Columbia, Maryland, is a bank holding
company and parent company of The Columbia Bank, a commercial bank. The
Columbia Bank currently operates twenty-four banking offices in the
Baltimore/Washington Corridor and provides a full range of financial services
to consumers and businesses. Columbia Bancorp's Common Stock is traded on the
National Market tier of The Nasdaq Stock Market(SM) under the symbol "CBMD".
NON-GAAP PRESENTATION
This press release includes disclosure and discussion of a net interest
margin and an efficiency ratio reported on a fully tax-equivalent basis
("FTE"). These 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, noninterest income and noninterest 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 nonperforming 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,
2004 2003 % Change
SUMMARY OF OPERATING RESULTS:
Tax equivalent interest income $42,307 $38,604 9.6%
Interest expense 8,466 8,229 2.9%
Tax equivalent net interest
income 33,841 30,375 11.4%
Tax equivalent adjustment 811 352 130.4%
Net interest income 33,030 30,023 10.0%
Provision for credit losses 692 1,050 (34.1%)
Noninterest income 5,323 7,115 (25.2%)
Noninterest expense 22,702 22,383 1.4%
Income before taxes 14,959 13,705 9.1%
Income tax provision 5,347 4,934 8.4%
Net income 9,612 8,771 9.6%
PER SHARE DATA:
Net income:
Basic $1.34 $1.23 9.1%
Diluted $1.30 $1.19 9.1%
Average number of shares
outstanding:
Basic 7,160,055 7,123,776 0.5%
Diluted 7,398,029 7,351,233 0.7%
Book value, at period end $12.66 $11.65 8.7%
Tangible book value, at period end 12.66 11.65 8.7%
Cash dividends declared $0.45 $0.375 20.0%
PERIOD END DATA:
Loans, net of unearned income $936,000 $797,108 17.4%
Investment securities and
securities available-for-sale 150,604 142,048 6.0%
Assets 1,179,107 1,013,492 16.3%
Noninterest-bearing deposits 246,092 190,576 29.1%
Interest-bearing deposits 669,250 584,401 14.5%
Total deposits 915,342 774,977 18.1%
Customer funding sources (a) 1,053,771 902,188 16.8%
Stockholders' equity 90,100 83,132 8.4%
PERFORMANCE RATIOS:
Return on average assets 1.19% 1.21%
Return on average stockholders'
equity 14.50% 14.63%
Net interest margin 4.28% 4.36%
Net interest margin (FTE) 4.39% 4.41%
Efficiency ratio (FTE)(c) 57.97% 59.70%
CAPITAL RATIOS:
Period-end capital to risk-
weighted assets:
Tier 1 9.23% 9.31%
Total 10.35% 10.49%
Period-end tier 1 leverage ratio 8.51% 8.30%
ASSET QUALITY:
Allowance for credit losses to
loans, net of unearned income, at
period-end 1.23% 1.32%
Net recoveries (charge-offs) $(6) $671 (100.9%)
Annualized net recoveries
(charge-offs) to average
loans, net of unearned
income - % 0.12%
Nonperforming assets:
Nonaccrual loans $635 $974 (34.8%)
Restructured loans - - na
Loans 90+ days past due and
accruing 22 127 (82.7%)
Other real estate owned - - na
Total nonperforming assets $657 $1,101 (40.3%)
Nonperforming and past due loans
to total loans, net of unearned
income, at period-end 0.07% 0.14%
Nonperforming assets and past due
loans to total assets, at period-end 0.06% 0.11%
NONINTEREST INCOME AND EXPENSE BREAKDOWN:
Noninterest income:
Fees charged for services $2,944 $2,988 (1.5%)
Gains and fees on sales of
mortgage loans, net of costs 1,150 2,633 (56.3%)
Net income (loss) on other
real estate owned 59 20 195.0%
Gain on sale of available for
sale securities - 28 (100.0%)
Commissions earned on
financial services sales 423 456 (7.2%)
Other noninterest income 747 990 (24.5%)
5,323 7,115 (25.2%)
Noninterest expenses:
Salaries and employee benefits 12,066 12,150 (0.7%)
Occupancy, net 2,838 2,818 0.7%
Equipment 1,486 1,444 2.9%
Data processing 1,575 1,457 8.1%
Marketing 736 839 (12.3%)
Other noninterest expenses 4,001 3,675 8.9%
22,702 22,383 1.4%
AVERAGE BALANCES:
Federal funds sold and
interest-bearing deposits (b) $22,354 $30,745 (27.3%)
Investment securities and
securities available-for-sale 121,973 147,375 (17.2%)
Loans, net of unearned income 879,715 723,764 21.5%
Loans originated for sale (b) 6,080 18,678 (67.4%)
Total earning assets 1,030,122 920,562 11.9%
Total assets 1,077,454 965,682 11.6%
Interest-bearing deposits:
NOW accounts 88,257 90,228 (2.2%)
Savings/money market accounts 198,994 196,657 1.2%
Time deposits 341,462 276,680 23.4%
Noninterest-bearing deposits 213,725 170,472 25.4%
Total deposits 842,438 734,037 14.8%
Short-term borrowings (b) 117,538 120,011 (2.1%)
Long-term borrowings 22,230 20,000 11.2%
Total interest-bearing liabilities 768,481 703,576 9.2%
Stockholders' equity 88,555 80,168 10.5%
YIELD ANALYSIS:
Federal funds sold and
interest-bearing deposits 1.05% 1.14%
Investment securities and
securities available-for-sale (FTE) 4.19% 4.55%
Loans, net of unearned income
(FTE) 5.77% 6.00%
Total yield on earning assets
(FTE) 5.49% 5.61%
Interest-bearing deposits
NOW accounts 0.14% 0.13%
Savings and money market accounts 0.38% 0.60%
Time deposits 2.40% 2.81%
Short-term borrowings 0.90% 0.70%
Long-term borrowings 5.25% 5.27%
Total cost of interest-bearing
liabilities 1.47% 1.56%
As of and Three Months Ended
September 30,
2004 2003 % Change
SUMMARY OF OPERATING RESULTS:
Tax equivalent interest income $15,097 $13,169 14.6%
Interest expense 3,131 2,559 22.4%
Tax equivalent net interest
income 11,966 10,610 12.8%
Tax equivalent adjustment 264 118 123.7%
Net interest income 11,702 10,492 11.5%
Provision for credit losses 192 - 0.0%
Noninterest income 1,714 2,737 (37.4%)
Noninterest expense 7,669 7,849 (2.3%)
Income before taxes 5,555 5,380 3.3%
Income tax provision 2,037 1,937 5.2%
Net income 3,518 3,443 2.2%
PER SHARE DATA:
Net income:
Basic $0.49 $0.48 2.8%
Diluted 0.48 0.47 1.7%
Average number of shares
outstanding:
Basic 7,128,359 7,137,668 (0.1%)
Diluted 7,350,901 7,387,088 (0.4%)
Book value, at period end
Tangible book value, at period end
Cash dividends declared $0.15 $0.125 20.0%
PERIOD END DATA:
Loans, net of unearned income
Investment securities 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 1.24% 1.36%
Return on average stockholders'
equity 15.60% 16.56%
Net interest margin 4.31% 4.34%
Net interest margin (FTE) 4.41% 4.39%
Efficiency ratio (FTE)(c) 56.06% 58.81%
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) $81 $695 (88.3%)
Annualized net recoveries
(charge-offs) to average
loans, net of unearned
income 0.04% 0.36%
Nonperforming assets:
Nonaccrual loans
Restructured 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 $910 $1,056 (13.8%)
Gains and fees on sales of
mortgage loans, net of costs 291 1,168 (75.1%)
Net income (loss) on other
real estate owned 73 (21) (447.6%)
Gain on sale of available for
sale securities - 28 (100.0%)
Commissions earned on
financial services sales 146 208 (29.8%)
Other noninterest income 294 298 (1.3%)
1,714 2,737 (37.4%)
Noninterest expenses:
Salaries and employee benefits 4,114 4,315 (4.7%)
Occupancy, net 918 973 (5.7%)
Equipment 468 500 (6.4%)
Data processing 525 563 (6.7%)
Marketing 140 272 (48.5%)
Other noninterest expenses 1,504 1,226 22.7%
7,669 7,849 (2.3%)
AVERAGE BALANCES:
Federal funds sold and
interest-bearing deposits (b) $20,056 $23,355 (14.1%)
Investment securities and
securities available-for-sale 140,143 139,201 0.7%
Loans, net of unearned income 914,052 772,604 18.3%
Loans originated for sale (b) 4,738 24,081 (80.3%)
Total earning assets 1,078,989 959,241 12.5%
Total assets 1,126,923 1,003,752 12.3%
Interest-bearing deposits:
NOW accounts 89,532 92,491 (3.2%)
Savings/money market accounts 208,538 205,166 1.6%
Time deposits 361,653 280,345 29.0%
Noninterest-bearing deposits 228,429 182,221 25.4%
Total deposits 888,152 760,223 16.8%
Short-term borrowings (b) 118,077 137,021 (13.8%)
Long-term borrowings 26,186 20,000 30.9%
Total interest-bearing liabilities 803,986 735,023 9.4%
Stockholders' equity 89,730 82,502 8.8%
YIELD ANALYSIS:
Federal funds sold and
interest-bearing deposits 1.29% 0.95%
Investment securities and
securities available-for-sale (FTE) 4.07% 4.34%
Loans, net of unearned income (FTE) 5.89% 5.77%
Total yield on earning assets (FTE) 5.57% 5.45%
Interest-bearing deposits
NOW accounts 0.15% 0.10%
Savings and money market accounts 0.41% 0.37%
Time deposits 2.42% 2.62%
Short-term borrowings 1.17% 0.57%
Long-term borrowings 5.09% 5.71%
Total cost of interest-bearing
liabilities 1.55% 1.38%
(a) Deposits plus customer-related short-term borrowings in the form of
commercial paper and repurchase agreements.
(b) Variances reflect significant fluctuations in account balances due
to the nature of the accounts.
(c) 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
Consolidated Statements of Condition
(Dollars in Thousands)
September 30, December 31,
2004 2003 2003
(unaudited) (audited)
Assets
Cash and due from banks $37,959 $39,131 $35,846
Interest-bearing deposits with banks 206 204 205
Federal funds sold 36,409 5,527 3,292
Investment securities held-to-maturity 99,295 85,233 77,344
Securities available-for-sale 51,309 56,815 56,583
Residential mortgage loans originated
for sale 2,587 14,138 6,046
Loan receivables:
Real estate - development and
construction 332,258 261,397 283,599
Commercial 229,589 210,825 221,374
Real estate - mortgage:
Residential 17,564 15,776 16,349
Commercial 158,585 150,300 143,723
Retail, principally second
mortgage loans and residential
equity lines of credit 194,031 158,993 169,298
Other 4,056 258 1,504
Total loans 936,083 797,549 835,847
Less: unearned income, net of
origination costs (83) (441) (363)
allowance for credit
losses (11,514) (10,559) (10,828)
Loans, net 924,486 786,549 824,656
Property and equipment, net 6,910 7,689 7,332
Prepaid expenses and other assets 19,946 18,206 17,951
Total assets $1,179,107 $1,013,492 $1,029,255
Liabilities
Deposits:
Noninterest-bearing $246,092 $190,576 $206,323
Interest-bearing 669,250 584,401 581,285
Total deposits 915,342 774,977 787,608
Short-term borrowings 141,031 129,211 128,844
Subordinated debentures 6,186 - -
Long-term borrowings 20,000 20,000 20,000
Accrued expenses and other liabilities 6,448 6,172 7,354
Total liabilities 1,089,007 930,360 943,806
Stockholders' equity
Common stock, $.01 par value per share;
authorized 10,000,000 shares; outstanding
7,117,317, 7,142,349 and 7,170,882 shares,
respectively 71 71 72
Additional paid-in capital 45,925 47,732 47,886
Retained earnings 43,956 35,506 37,561
Accumulated other comprehensive income
(loss) 148 (177) (70)
Total stockholders' equity 90,100 83,132 85,449
Total liabilities and
stockholders' equity $1,179,107 $1,013,492 $1,029,255
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,
2004 2003 2004 2003
(unaudited) (unaudited)
Interest income:
Loans $37,717 $33,121 $13,428 $11,534
Investment securities 3,603 4,869 1,340 1,461
Federal funds sold and interest-
bearing deposits with banks 176 262 65 56
Total interest income 41,496 38,252 14,833 13,051
Interest expense:
Deposits 6,796 6,790 2,450 2,069
Borrowings 1,670 1,439 681 490
Total interest expense 8,466 8,229 3,131 2,559
Net interest income 33,030 30,023 11,702 10,492
Provision for credit losses 692 1,050 192 -
Net interest income after
provision for credit losses 32,338 28,973 11,510 10,492
Noninterest income:
Fees charged for services 2,944 2,988 910 1,056
Gains and fees on sales of
mortgage loans, net of costs 1,150 2,633 291 1,168
Net income (loss) on other real
estate owned 59 20 73 (21)
Gain on sale of investment
securities - 28 - 28
Commissions earned on financial
services sales 423 456 146 208
Other 747 990 294 298
Total noninterest income 5,323 7,115 1,714 2,737
Noninterest expense:
Salaries and employee benefits 12,066 12,150 4,114 4,315
Occupancy, net 2,838 2,818 918 973
Equipment 1,486 1,444 468 500
Data processing 1,575 1,457 525 563
Marketing 736 839 140 272
Professional fees 601 568 263 174
Cash management services 411 439 131 149
Deposit insurance 150 147 51 49
Other 2,839 2,521 1,059 854
Total noninterest expense 22,702 22,383 7,669 7,849
Income before income taxes 14,959 13,705 5,555 5,380
Income tax provision 5,347 4,934 2,037 1,937
Net income $9,612 $8,771 $3,518 $3,443
Per common share data:
Net income: Basic $1.34 $1.23 $0.49 $0.48
Diluted 1.30 1.19 0.48 0.47
Cash dividends declared $0.45 $0.375 $0.15 $0.125
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,
2004 2003 2004 2003
(unaudited) (unaudited)
GAAP-based Operating Performance
Measures:
Net interest income $33,030 $30,023 $11,702 $10,492
Provision for credit losses 692 1,050 192 -
Noninterest income 5,323 7,115 1,714 2,737
Noninterest expense 22,702 22,383 7,669 7,849
Income before taxes 14,959 13,705 5,555 5,380
Income tax provision 5,347 4,934 2,037 1,937
Net income 9,612 8,771 3,518 3,443
Return on average assets 1.19% 1.21% 1.24% 1.36%
Return on average equity 14.50% 14.63% 15.60% 16.56%
Net interest margin 4.28% 4.36% 4.31% 4.34%
Efficiency ratio 59.19% 60.27% 57.16% 59.33%
Net income per share - diluted $1.30 $1.19 $0.48 $0.47
Non-GAAP adjustments
Tax equivalent adjustment -
net interest income $811 $352 $264 $118
Core Operating Performance Measures
Net interest income - tax
equivalent $33,841 $30,375 $11,966 $10,610
Tax equivalent adjustment (811) (352) (264) (118)
Net interest income 33,030 30,023 11,702 10,492
Provision for credit losses 692 1,050 192 -
Noninterest income 5,323 7,115 1,714 2,737
Noninterest expense 22,702 22,383 7,669 7,849
Income before taxes 14,959 13,705 5,555 5,380
Income tax provision 5,347 4,934 2,037 1,937
Net income 9,612 8,771 3,518 3,443
Return on average assets 1.19% 1.21% 1.24% 1.36%
Return on average equity 14.50% 14.63% 15.60% 16.56%
Net interest margin (FTE) 4.39% 4.41% 4.41% 4.39%
Efficiency ratio (FTE) 57.97% 59.70% 56.06% 58.81%
Net income per share - diluted $1.30 $1.19 $0.48 $0.47
COLUMBIA BANCORP
Quarterly Highlights
(Dollars in Thousands, Except Per-Share Data)
3Q04 2Q04 1Q04
(unaudited)
SUMMARY OF OPERATING RESULTS:
GAAP-based:
Interest income $14,833 $13,408 $13,255
Interest expense 3,131 2,755 2,580
Net interest income 11,702 10,653 10,675
Provision for credit losses 192 190 310
Noninterest income 1,714 1,872 1,737
Noninterest expense 7,669 7,504 7,529
Income before taxes 5,555 4,831 4,573
Income tax provision 2,037 1,718 1,592
Net income 3,518 3,113 2,981
Based on core operating performance (a):
Tax-equivalent interest income $15,097 $13,681 $13,529
Interest expense 3,131 2,755 2,580
Tax-equivalent net interest
income 11,966 10,926 10,949
Tax-equivalent adjustment 264 273 274
Net interest income 11,702 10,653 10,675
Provision for credit losses 192 190 310
Noninterest income 1,714 1,872 1,737
Noninterest expense 7,669 7,504 7,529
Income before taxes 5,555 4,831 4,573
Income tax provision 2,037 1,718 1,592
Net income 3,518 3,113 2,981
PER SHARE DATA:
Net income:
GAAP-based:
Basic $0.49 $0.43 $0.42
Diluted 0.48 0.42 0.40
Based on core operating
performance (a):
Basic $0.49 0.43 0.42
Diluted 0.48 0.42 0.40
Average number of shares
outstanding:
Basic 7,128,359 7,170,585 7,178,797
Diluted 7,358,993 7,404,762 7,434,701
Book value, at period end $12.66 $12.33 $12.23
Tangible book value, at period end 12.66 12.33 12.23
Cash dividends declared $0.15 0.15 0.15
PERIOD END DATA:
Loans, net of unearned income $936,000 $900,320 $864,753
Investment securities and
securities available-for-sale 150,604 122,430 104,211
Assets 1,179,107 1,126,916 1,083,798
Noninterest-bearing deposits 246,092 240,117 220,700
Interest-bearing deposits 669,250 650,884 625,311
Total deposits 915,342 891,001 846,011
Customer funding sources (a) 1,053,771 1,001,524 963,051
Stockholders' equity 90,100 88,039 87,934
PERFORMANCE RATIOS:
GAAP-based:
Return on average assets 1.24% 1.16% 1.16%
Return on average stockholders'
equity 15.60% 14.07% 13.75%
Net interest margin 4.31% 4.18% 4.34%
Efficiency ratio 57.16% 59.91% 60.66%
Based on core operating performance (a):
Return on average assets 1.24% 1.16% 1.16%
Return on average stockholders'
equity 15.60% 14.07% 13.75%
Net interest margin (FTE) 4.41% 4.29% 4.46%
Efficiency ratio (FTE) 56.06% 58.63% 59.35%
CAPITAL RATIOS:
Period-end capital to risk-
weighted assets:
Tier 1 9.23% 9.45% 9.04%
Total 10.35% 10.58% 10.20%
Period-end tier 1 leverage ratio 8.51% 8.79% 8.34%
ASSET QUALITY:
Allowance for credit losses to
loans, net of unearned income, at
period-end 1.23% 1.25% 1.28%
Net recoveries (charge-offs) $81 $10 $(97)
Annualized net recoveries
(charge-offs) to average loans,
net of unearned income 0.04% - % (0.05%)
Nonperforming assets:
Nonaccrual loans $635 $1,095 $1,168
Restructured loans - - -
Loans 90+ days past due and
accruing 22 91 69
Other real estate owned - 250 250
Total nonperforming
assets $657 $1,436 $1,487
Nonperforming and past due loans
to total loans, net of unearned
income, at period-end 0.07% 0.13% 0.14%
Nonperforming assets and past due
loans to total assets, at
period-end 0.06% 0.13% 0.14%
NONINTEREST INCOME AND EXPENSE BREAKDOWN:
Noninterest income:
Fees charged for deposit
services $910 $1,029 $1,005
Gains on sales of mortgage
loans, net of costs 291 508 351
Net income (loss) on other
real estate owned 73 (5) (9)
Commissions earned on
financial services sales 146 137 140
Other noninterest income 294 203 250
Total noninterest income $1,714 $1,872 $1,737
Noninterest expenses:
Salaries and payroll taxes $3,718 $3,618 $3,684
Employee benefits 396 288 362
Occupancy, net 918 944 976
Equipment 468 505 513
Data processing 525 532 518
Marketing 140 296 300
Other noninterest expenses 1,504 1,321 1,176
Total noninterest
expenses $7,669 $7,504 $7,529
AVERAGE BALANCES:
Federal funds sold and interest
bearing deposits $20,056 $37,521 $9,513
Investment securities and
securities available-for-sale 140,143 103,384 122,192
Loans, net of unearned income 914,052 873,278 851,436
Loans originated for sale (b) 4,738 8,320 5,196
Total earning assets 1,078,989 1,022,503 988,337
Total assets 1,126,923 1,071,793 1,033,102
Interest-bearing deposits:
NOW accounts 89,532 89,308 85,917
Savings and money market
accounts 208,538 194,197 194,141
Time deposits 361,653 348,394 314,116
Noninterest-bearing deposits 228,429 221,033 191,551
Total deposits 888,152 852,932 785,725
Short-term borrowings (b) 118,077 105,985 128,547
Long-term borrowings 26,186 20,462 20,000
Total interest-bearing liabilities 803,986 758,346 742,721
Stockholders' equity 89,730 88,743 87,180
YIELD ANALYSIS:
Federal funds sold and interest
bearing deposits 1.29% 0.96% 0.89%
Investment securities and
securities available-for-sale (FTE) 4.07% 4.45% 4.30%
Loans, net of unearned income (FTE) 5.89% 5.68% 5.71%
Total yield on earning assets (FTE) 5.57% 5.38% 5.49%
Interest-bearing deposits
NOW accounts 0.15% 0.15% 0.13%
Savings and money market
accounts 0.41% 0.37% 0.36%
Time deposits 2.42% 2.39% 2.39%
Short-term borrowings 1.17% 0.77% 0.77%
Long-term borrowings 5.09% 5.35% 5.36%
Total cost of interest-bearing
liabilities 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.
COLUMBIA BANCORP
Quarterly Highlights
(Dollars in Thousands, Except Per-Share Data)
4Q03 3Q03 2Q03 1Q03
(unaudited)
SUMMARY OF OPERATING RESULTS:
GAAP-based:
Interest income $13,151 $13,051 $12,828 $12,373
Interest expense 2,507 2,559 2,758 2,912
Net interest income 10,644 10,492 10,070 9,461
Provision for credit losses 120 - 745 305
Noninterest income 1,848 2,737 2,444 1,934
Noninterest expense 7,587 7,849 7,335 7,199
Income before taxes 4,785 5,380 4,434 3,891
Income tax provision 1,652 1,937 1,597 1,400
Net income 3,133 3,443 2,837 2,491
Based on core operating
performance (a):
Tax-equivalent interest
income $13,339 $13,169 $12,941 $12,493
Interest expense 2,507 2,559 2,758 2,912
Tax-equivalent net
interest income 10,832 10,610 10,183 9,581
Tax-equivalent adjustment 188 118 113 120
Net interest income 10,644 10,492 10,070 9,461
Provision for credit losses 120 - 745 305
Noninterest income 1,848 2,737 2,444 1,934
Noninterest expense 7,587 7,849 7,335 7,199
Income before taxes 4,785 5,380 4,434 3,891
Income tax provision 1,652 1,937 1,597 1,400
Net income 3,133 3,443 2,837 2,491
PER SHARE DATA:
Net income:
GAAP-based:
Basic $0.44 $0.48 $0.40 $0.35
Diluted 0.42 0.47 0.39 0.34
Based on core operating
performance (a):
Basic 0.44 0.48 0.40 0.35
Diluted 0.42 0.47 0.39 0.34
Average number of shares
outstanding:
Basic 7,164,091 7,137,668 7,117,805 7,115,612
Diluted 7,413,256 7,387,088 7,346,462 7,290,541
Book value, at period end $11.92 $11.65 $11.31 $11.02
Tangible book value, at
period end 11.92 11.65 11.31 11.02
Cash dividends declared 0.150 0.125 0.125 0.125
PERIOD END DATA:
Loans, net of unearned
income $835,484 $797,108 $750,509 $696,322
Investment securities
and securities
available-for-sale 133,927 142,048 140,552 145,714
Assets 1,029,255 1,013,492 1,060,141 993,570
Noninterest-bearing
deposits 206,323 190,576 197,490 182,421
Interest-bearing deposits 581,285 584,401 586,507 565,106
Total deposits 787,608 774,977 783,997 747,527
Customer funding sources (a) 887,930 897,860 937,758 877,955
Stockholders' equity 85,449 83,132 80,538 78,422
PERFORMANCE RATIOS:
GAAP-based:
Return on average assets 1.23% 1.36% 1.18% 1.09%
Return on average
stockholders' equity 14.55% 16.56% 14.26% 12.92%
Net interest margin 4.36% 4.34% 4.40% 4.35%
Efficiency ratio 60.73% 59.33% 58.61% 63.18%
Based on core operating
performance (a):
Return on average assets 1.23% 1.36% 1.18% 1.09%
Return on average
stockholders' equity 14.55% 16.56% 14.26% 12.92%
Net interest margin (FTE) 4.43% 4.39% 4.45% 4.40%
Efficiency ratio (FTE) 59.83% 58.81% 58.09% 62.52%
CAPITAL RATIOS:
Period-end capital to
risk-weighted assets:
Tier 1 9.28% 9.31% 9.20% 9.62%
Total 10.45% 10.49% 10.33% 10.73%
Period-end tier 1 leverage
ratio 8.43% 8.30% 8.34% 8.49%
ASSET QUALITY:
Allowance for credit
losses to loans, net
of unearned income,
at period-end 1.30% 1.32% 1.31% 1.31%
Net recoveries (charge-offs) $148 $695 $21 $(45)
Annualized net recoveries
(charge-offs) to average
loans, net of unearned
income 0.07% 0.36% 0.01% (0.03%)
Nonperforming assets:
Nonaccrual loans $892 $974 $720 $806
Restructured loans - - 643 -
Loans 90+ days past
due and accruing 72 127 112 164
Other real estate owned - - - -
Total nonperforming
assets $964 $1,101 $1,475 $970
Nonperforming and past due
loans to total loans, net
of unearned income, at
period-end 0.12% 0.14% 0.20% 0.14%
Nonperforming assets and
past due loans to total
assets, at period-end 0.09% 0.11% 0.14% 0.10%
NONINTEREST INCOME AND EXPENSE
BREAKDOWN:
Noninterest income:
Fees charged for
deposit services $1,006 $1,056 $994 $938
Gains on sales of
mortgage loans, net
of costs 322 1,168 834 630
Net income (loss) on
other real estate
owned 2 (21) 30 11
Gain on sale of
investment securities - 28 - -
Gain (loss) on sale of
other assets, net (3) (6) - (1)
Commissions earned on
financial services
sales 150 208 125 123
Other noninterest
income 371 304 461 233
Total
noninterest
income $1,848 $2,737 $2,444 $1,934
Noninterest expenses:
Salaries and payroll
taxes $3,583 $3,717 $3,610 $3,440
Employee benefits 718 598 255 530
Occupancy, net 1,000 974 920 924
Equipment 514 500 495 449
Data processing 498 563 484 410
Marketing 199 272 335 232
Other noninterest
expenses 1,075 1,225 1,236 1,214
Total
noninterest
expenses $7,587 $7,849 $7,335 $7,199
AVERAGE BALANCES:
Federal funds sold and
interest bearing
deposits $8,584 $23,355 $25,995 $43,101
Investment securities
and securities
available-for-sale 135,749 139,201 151,508 151,552
Loans, net of unearned
income 818,038 772,604 721,274 676,358
Loans originated
for sale (b) 6,891 24,081 19,945 11,872
Total earning assets 969,262 959,241 918,722 882,883
Total assets 1,012,865 1,003,752 965,980 926,466
Interest-bearing deposits:
NOW accounts 86,806 92,491 93,717 84,388
Savings and money
market accounts 207,351 205,166 198,470 186,126
Time deposits 292,383 280,345 280,242 282,201
Noninterest-bearing
deposits 192,030 182,221 168,554 160,133
Total deposits 778,570 760,223 740,983 712,848
Short-term borrowings (b) 124,563 137,021 115,939 106,739
Long-term borrowings 20,000 20,000 20,000 20,000
Total interest-bearing
liabilities 731,103 735,023 708,368 679,454
Stockholders' equity 85,420 82,502 79,775 78,182
YIELD ANALYSIS:
Federal funds sold and
interest bearing deposits 0.88% 0.95% 1.18% 1.20%
Investment securities
and securities
available-for-sale (FTE) 3.96% 4.34% 4.59% 4.69%
Loans, net of unearned
income (FTE) 5.75% 5.77% 6.02% 6.25%
Total yield on earning
assets (FTE) 5.46% 5.45% 5.65% 5.74%
Interest-bearing deposits
NOW accounts 0.10% 0.10% 0.10% 0.19%
Savings and money
market accounts 0.37% 0.37% 0.64% 0.82%
Time deposits 2.46% 2.62% 2.78% 2.90%
Short-term borrowings 0.68% 0.57% 0.69% 0.81%
Long-term borrowings 5.34% 5.71% 5.50% 5.34%
Total cost of interest-
bearing liabilities 1.36% 1.38% 1.56% 1.74%
(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
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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 of
Columbia Bancorp, +1-410-423-8012
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