Attached files
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| 8-K - COLUMBIA BANCORP \OR\ | v166726_8k.htm |
Exhibit
99.1Press Release of the Registrant
 |
Contact:
Terry L. Cochran, President and CEO
541/298-6633
or tcochran@columbiabancorp.com
Staci
L. Coburn, Executive Vice President and CFO
541/298-3169
or scoburn@columbiariverbank.com
|
COLUMBIA BANCORP ANNOUNCES
FILING OF FORM 10-Q QUARTERLY REPORT AND
THIRD QUARTER
2009 FINANCIAL
RESULTS
The
Dalles, Oregon – November 16, 2009 – Columbia Bancorp (Nasdaq: CBBO), the bank
holding company for Columbia River Bank, today announced a loss for the third
quarter of 2009. The Bank has continued its efforts to reduce its
concentration of residential construction and development lending by pursuing
resolution of non-performing assets, aggressively recognizing loan losses and
charging-off impairments. For the third quarter of 2009, Columbia
recognized $20.3 million of provision for loan losses which, combined with $1.3
million of FDIC premiums and state assessments, resulted in a net loss of $21.9
million, or $2.18 per diluted share. “Our efforts to liquidate
non-performing assets, combined with modest improvements in the real estate
market, resulted in the sale of a number of properties, with additional sales
closing in October,” explained Terry Cochran, President and CEO of
Columbia. “The support of our customers remains high, reflected in
the growth of non-interest bearing deposits and over 1,300 retail accounts
opened during the quarter. We were also pleased to add several
seasoned and experienced bankers to our team, including two former bank
executives.”
During
the quarter, Columbia announced the hiring of Andrew Gerlicher as Senior Vice
President and Business Banking Team Leader for Central Oregon. Mr.
Gerlicher, who has 27 years of banking experience, had previously been leading
the formation of Crown Point National Bank in Bend, Oregon. He will
oversee Columbia River Bank’s credit staff in Central Oregon and assist with
resolution of non-performing loans. In addition, Columbia hired Roy
Lewis as Special Credits Officer to assist with the resolution of non-performing
loans. Mr. Lewis has 40 years of banking experience which included
serving as President of Hood River County Bank and two other community
banks. He has also held the Chief Credit Officer position at two
community banks.
Non-interest
bearing deposits increased $9.1 million, or 5%, compared to June 30,
2009. Total deposits increased $17.3 million, or 2%, compared to June
30, 2009. During the quarter, Columbia River Bank introduced a new
value-oriented checking account product allowing customers to take advantage of
savings and discounts for a wide range of products and services, including
restaurants, hotels and retail stores.
Columbia
River Bank’s liquid assets as a percentage of total assets measured 21.7% as of
September 30, 2009, compared to 17.5% as of June 30, 2009. Columbia
is investing excess liquidity in select higher earning assets while balancing
against anticipated liquidity needs in the short-term.
Columbia’s
actions to add staffing and other resources to its management of non-performing
assets are yielding positive results. During the quarter, eight other
real estate owned (“OREO”) properties were sold for $3.0 million and after
quarter-end Columbia finalized agreements for additional sales of $3.4
million. Columbia is having success restructuring terms with
qualifying borrowers in order to return loans to performing
status. Columbia recognized $20.3 million in provision for loan
losses during the third quarter of 2009, primarily due to losses on a previously
identified problem agricultural credit, continued losses from residential
construction and lot development loans and the application of higher estimated
loss rates in its allowance methodology. Columbia also recognized
$526,000 of impairment charges on OREO properties to adjust carrying amounts to
updated appraisal values.
Non-performing
assets totaled $123.2 million as of September 30, 2009, compared to $122.6
million as of June 30, 2009. Non-performing assets included
non-accrual loans totaling $103.2 million as of September 30,
2009. Residential lot development and construction loans comprised
66% of non-accrual loans as of September 30, 2009. OREO totaled $15.2
million as of September 30, 2009, compared to $11.3 million as of June 30,
2009. During the third quarter, eight OREO properties totaling $3.0
million were sold at a net loss of $277,000; $8.1 million of foreclosed
properties were added to OREO; and impairment charges of $526,000 were
recognized on five properties to adjust carrying amounts to updated appraisal
values. “Recent national and regional economic news reports a
leveling off in residential real estate valuations. Another positive
indicator is that loans in our portfolio past-due 30 – 89 days have declined
significantly during the last quarter,” said Craig Hummel, Chief Credit Officer,
Columbia River Bank.
COLUMBIA
BANCORP ANNOUNCES FILING OF FORM 10-Q
NOVEMBER
16, 2009
PAGE 2 OF
3
Columbia’s
net interest income totaled $6.8 million for the third quarter of 2009, compared
to $6.6 million for the second quarter of 2009, a 2% increase primarily
attributable to a decrease in interest expense associated with matured brokered
deposits. The net interest margin declined slightly to 2.71% for the
third quarter of 2009, compared to 2.74% for the second quarter of
2009. The decrease is primarily due to a shift in the earning asset
mix from overall higher yielding loans to lower yielding cash and liquid
investments resulting from Columbia’s strategic initiative to maintain and
improve liquidity. Columbia reversed $1.2 million of interest income
from loans placed on non-accrual status. Interest income for the
third quarter of 2009 would have been $2.6 million higher had non-accrual loans
performed according to terms. Lower deposit rates and repayment of
higher cost brokered deposits partially offset the decrease in the net interest
margin. During the quarter, Columbia repaid $30.9 million of brokered
certificates of deposit that had a weighted-average cost of 4.43%.
Columbia’s
quarterly report on Form 10-Q filed with the Securities and Exchange Commission
includes additional information and discussion relating to its financial results
for the quarter ended September 30, 2009. The Form 10-Q is available
at http://www.columbiabancorp.com
or a copy can be requested by emailing investorrelations@columbiabancorp.com
or by calling 541/298.3191.
ABOUT
COLUMBIA BANCORP
Columbia
Bancorp (www.columbiabancorp.com)
is the bank holding company for Columbia River Bank, which operates 21 branches
located in The Dalles (2), Hood River, Bend (3), Madras, Redmond (2), Pendleton,
Hermiston, McMinnville, Canby, and Newberg, Oregon, and in Goldendale, White
Salmon, Sunnyside, Yakima, Pasco, Richland, and Vancouver,
Washington. To supplement its community banking services, Columbia
River Bank also provides brokerage services through CRB Financial Services
Team.
FORWARD
LOOKING STATEMENTS
This
press release may contain various forward-looking statements about plans and
anticipated results of operations and financial condition relating to Columbia
Bancorp. These statements include statements about management’s present plans
and intentions about our strategy, growth, and deployment of resources, and
about management’s expectations for future financial performance. Readers can
sometimes identify forward-looking statements by the use of prospective language
and context, including words like “may,” “will,” “should,” “expect,”
“anticipate,” “estimate,” “continue,” “plans,” “intends,” or other similar
terminology. Because forward-looking statements are, in part, an attempt to
project future events and explain management’s current plans, they are subject
to various risks and uncertainties which could cause our actions and our
financial and operational results to differ materially from those set forth in
such statements. These risks and uncertainties include, without limitation, our
ability maintain and grow our deposit base in the face of continuing uncertainty
surrounding the financial institutions industry and our markets in particular;
our ability to acquire and maintain capital sufficient to absorb the losses
inherent in our loan portfolio and support our continuing operations; our
ability to raise additional capital to address the risk of exacerbated or
protracted economic declines; our ability to estimate accurately the
collectability of our loans and mitigate the potential risks associated with
acquisition and sale of any underlying collateral; economic and other factors
which affect the collectability of our loans generally; our ability to address
the risks associated with the geographic and industry-specific concentrations of
our loan portfolio; the impact of banking laws and regulations, competition, and
fluctuations in market interest rates on Columbia’s revenues and margins,
management’s ability to generate growth from core operations in the face of the
announced staffing reductions, and other risks and uncertainties that we have in
the past, or that we may from time to time in the future, detail in our filings
with the Securities and Exchange Commission ("SEC"). Information presented in
this release is accurate as of the date on which the release was issued, and we
cannot undertake to update our forward-looking statements or the factors that
may cause us to deviate from them, except as required by law.
COLUMBIA
BANCORP ANNOUNCES FILING OF FORM 10-Q
NOVEMBER
16, 2009
PAGE 3 OF
3
SELECTED
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
(In
thousands, except per share data and ratios)
|
Three Months
Ended
|
Nine Months
Ended
|
|||||||||||||||||||||||||||||||
|
September
30,
|
June
30,
|
%
|
September
30,
|
%
|
September
30,
|
September
30,
|
%
|
|||||||||||||||||||||||||
|
2009
|
2009
|
Change
|
2008
|
Change
|
2009
|
2008
|
Change
|
|||||||||||||||||||||||||
| BALANCE SHEET | ||||||||||||||||||||||||||||||||
|
Cash
and cash equivalents
|
$ | 233,310 | $ | 189,717 | 23 | % | $ | 151,532 | 54 | % | ||||||||||||||||||||||
|
Investment
securities
|
38,311 | 35,550 | 8 | % | 24,952 | 54 | % | |||||||||||||||||||||||||
|
Gross
loans
|
736,213 | 799,562 | -8 | % | 922,431 | -20 | % | |||||||||||||||||||||||||
|
Non-performing assets (1)
|
123,175 | 122,648 | - | 68,911 | 79 | % | ||||||||||||||||||||||||||
|
Total
assets
|
1,057,717 | 1,067,934 | -1 | % | 1,150,026 | -8 | % | |||||||||||||||||||||||||
|
Total
deposits
|
1,009,991 | 992,696 | 2 | % | 1,015,068 | -1 | % | |||||||||||||||||||||||||
|
Total
liabilities
|
1,034,487 | 1,022,892 | 1 | % | 1,061,775 | -3 | % | |||||||||||||||||||||||||
|
Shareholders'
equity
|
23,230 | 45,042 | -48 | % | 88,251 | -74 | % | |||||||||||||||||||||||||
|
ALLOWANCE
FOR CREDIT LOSSES
|
||||||||||||||||||||||||||||||||
|
Net
charge-offs
|
23,386 | 14,879 | 57 | % | 21,353 | 10 | % | |||||||||||||||||||||||||
|
Allowance
for loan losses
|
19,607 | 22,743 | -14 | % | 20,927 | -6 | % | |||||||||||||||||||||||||
|
Liability
for unfunded loan commitments
|
555 | 590 | -6 | % | 981 | -43 | % | |||||||||||||||||||||||||
|
Allowance for credit losses (2)
|
20,162 | 23,333 | -14 | % | 21,908 | -8 | % | |||||||||||||||||||||||||
|
Allowance
for loan losses / gross loans
|
2.66 | % | 2.84 | % | -6 | % | 2.26 | % | 18 | % | ||||||||||||||||||||||
|
Allowance
for credit losses / gross loans
|
2.74 | % | 2.92 | % | -6 | % | 2.37 | % | 16 | % | ||||||||||||||||||||||
|
Non-performing
assets / total assets
|
11.65 | % | 11.48 | % | 1 | % | 5.99 | % | 94 | % | ||||||||||||||||||||||
|
INCOME
STATEMENT
|
||||||||||||||||||||||||||||||||
|
Interest
income
|
$ | 11,840 | $ | 12,107 | -2 | % | $ | 16,179 | -27 | % | $ | 36,834 | $ | 51,334 | -28 | % | ||||||||||||||||
|
Interest
expense
|
5,074 | 5,467 | -7 | % | 5,989 | -15 | % | 16,663 | 17,571 | -5 | % | |||||||||||||||||||||
|
Net
interest income before provision for loan losses
|
6,766 | 6,640 | 2 | % | 10,190 | -34 | % | 20,171 | 33,763 | -40 | % | |||||||||||||||||||||
|
Provision
for loan losses
|
20,250 | 14,400 | 41 | % | 25,400 | -20 | % | 44,350 | 34,100 | 30 | % | |||||||||||||||||||||
|
Net
interest loss after provision for loan losses
|
(13,484 | ) | (7,760 | ) | 74 | % | (15,210 | ) | -11 | % | (24,179 | ) | (337 | ) | 7075 | % | ||||||||||||||||
|
Non-interest
income
|
2,014 | 2,112 | -5 | % | 4,038 | -50 | % | 6,353 | 10,377 | -39 | % | |||||||||||||||||||||
|
Non-interest
expense
|
10,439 | 10,399 | - | 12,193 | -14 | % | 31,748 | 32,212 | -1 | % | ||||||||||||||||||||||
|
Loss
before provision for income taxes
|
(21,909 | ) | (16,047 | ) | -37 | % | (23,365 | ) | 6 | % | (49,574 | ) | (22,172 | ) | -124 | % | ||||||||||||||||
|
Provision
for (benefit from) income taxes
|
- | 7,234 | -100 | % | (9,274 | ) | -100 | % | 2,517 | (9,094 | ) | -128 | % | |||||||||||||||||||
|
Net
loss
|
(21,909 | ) | (23,281 | ) | 6 | % | (14,091 | ) | -55 | % | (52,091 | ) | (13,078 | ) | -298 | % | ||||||||||||||||
|
SHARE
DATA
|
||||||||||||||||||||||||||||||||
|
Basic
loss per common share
|
$ | (2.18 | ) | $ | (2.31 | ) | 6 | % | $ | (1.41 | ) | -55 | % | $ | (5.18 | ) | $ | (1.31 | ) | -295 | % | |||||||||||
|
Diluted
loss per common share
|
(2.18 | ) | (2.31 | ) | 6 | % | (1.41 | ) | -55 | % | (5.18 | ) | (1.31 | ) | -295 | % | ||||||||||||||||
|
Basic
weighted average shares outstanding
|
10,063 | 10,064 | - | 10,024 | - | 10,053 | 10,019 | - | ||||||||||||||||||||||||
|
Diluted
weighted average shares outstanding
|
10,063 | 10,064 | - | 10,024 | - | 10,053 | 10,019 | - | ||||||||||||||||||||||||
|
Actual
shares outstanding
|
10,063 | 10,063 | - | 10,081 | - | 10,063 | 10,081 | - | ||||||||||||||||||||||||
|
LIQUIDITY
RATIOS (COLUMBIA RIVER BANK)
|
||||||||||||||||||||||||||||||||
|
Liquid
assets / total assets
|
21.72 | % | 17.48 | % | 24 | % | 12.29 | % | 77 | % | ||||||||||||||||||||||
|
Average
gross loans / average deposits
|
77.12 | % | 85.53 | % | -10 | % | 99.07 | % | -22 | % | ||||||||||||||||||||||
|
Brokered
deposits / total deposits
|
12.24 | % | 16.08 | % | -24 | % | 31.78 | % | -61 | % | ||||||||||||||||||||||
|
FINANCIAL
RATIOS
|
||||||||||||||||||||||||||||||||
|
Net
interest spread, tax equivalent
|
2.30 | % | 2.22 | % | 4 | % | 3.17 | % | -27 | % | 2.20 | % | 3.74 | % | -41 | % | ||||||||||||||||
|
Net
interest margin, tax equivalent
|
2.71 | % | 2.74 | % | -1 | % | 3.86 | % | -30 | % | 2.71 | % | 4.51 | % | -40 | % | ||||||||||||||||
|
Efficiency ratio
(3)
|
118.88 | % | 118.82 | % | - | 83.42 | % | -43 | % | 119.70 | % | 71.59 | % | -67 | % | |||||||||||||||||
|
Return
on average assets
|
-8.15 | % | -8.81 | % | 7 | % | -5.01 | % | -63 | % | -6.55 | % | -1.63 | % | -302 | % | ||||||||||||||||
|
Return
on average equity
|
-221.61 | % | -148.91 | % | -49 | % | -59.62 | % | -272 | % | -119.81 | % | -17.47 | % | -586 | % | ||||||||||||||||
|
Average
equity / average assets
|
3.68 | % | 5.92 | % | -38 | % | 8.40 | % | -56 | % | 5.47 | % | 9.33 | % | -41 | % | ||||||||||||||||
|
CAPITAL
RATIOS (COLUMBIA RIVER BANK)
|
||||||||||||||||||||||||||||||||
|
Tier
1 leverage ratio
|
2.08 | % | 4.16 | % | -50 | % | 6.60 | % | -68 | % | ||||||||||||||||||||||
|
Tier
1 risk-based capital ratio
|
2.78 | % | 5.15 | % | -46 | % | 7.24 | % | -62 | % | ||||||||||||||||||||||
|
Total
risk-based capital ratio
|
4.05 | % | 6.41 | % | -37 | % | 8.50 | % | -52 | % | ||||||||||||||||||||||
Notes:
(1)
Includes loans on non-accrual status, troubled debt restructured loans and other
real estate owned.
(2)
Includes allowance for loan losses and liability for unfunded loan
commitments.
(3)
Non-interest expense divided by net interest income (loss) and non-interest
income.