HIGHLIGHTED LINKS
SOURCE: Columbia Commercial Bancorp
Columbia Commercial Bancorp Reports Fourth Quarter and Full Year 2008 Earnings
HILLSBORO, OR--(Marketwire - February 6, 2009) - Columbia Commercial Bancorp (
Total assets at December 31, 2008 grew to $402.5 million compared to $349.2 million at the end of 2007, an increase of $53.1 million or 15.2%. The Company's allowance for loan losses at $5.8 million is 1.85% of loans as of December 31, 2008 compared to $3.1 million or 1.09% of loans at the end of 2007. The allowance for loan loss reserve grew as a result of the $4.2 million provision for loan loss expense during 2008 relative to the $1.5 million in charge-offs taken within the Bank's residential construction loan portfolio during the year.
Fourth Quarter 2008 Performance Measures:
-- Return on equity of -3.43%
-- Return on assets of -0.21%
-- Net interest margin of 3.02%
-- Efficiency ratio of 60.3%
Year-to-Date 2008 Performance Measures:
-- Return on equity of 5.61%
-- Return on assets of 0.34%
-- Net interest margin of 3.54%
-- Efficiency ratio of 54.5%
-- Loans at $315.2 million, growth of $31.2 million or 11.0% for 2008
-- Investments at $57.5 million, growth of $7.5 million or 15.0% for 2008
-- Deposit growth of $52.4 million, or 22.1% during 2008
Fred Johnson, the Bank's Chief Credit Officer, states, "We are working hard to reduce our residential construction and land development loan portfolios which is not an easy task in today's market. We continue to work closely with our builders and developers. While our loan officers have well-established relationships with these clients, loan administration is still closely monitoring them and expeditiously taking all the necessary courses of action to protect the Company and its shareholders." Regarding the rest of the Company's loan portfolio, Johnson continues, "Outside of the residential construction and land development loans, the Company's remaining portfolio is performing very well with no charge-offs during 2008 and only modest delinquencies."
Net interest income for the 2008 fiscal year was $13.0 million, down $800,000 or 5.7% when compared to the $13.8 million for 2007. Net interest margin for 2008 at 3.54% was down 1.05% when compared to the 4.59% for 2007. The Company's Chief Financial Officer, Bob Ekblad, states, "Net interest margin continues to drop and was 3.02% for the fourth quarter of this year. Loan yields have dropped with market rate declines and the increase in non-accrual loans along with the extremely competitive nature of local deposits have also adversely affected margin."
"The banking industry had a challenging year in 2008 and our Company was no exception," said the Company's President and CEO, Rick A. Roby. Roby continued by stating "The Company will continue to be challenged with its residential construction and land development loan portfolio going into 2009, but I am confident we made significant strides to identify and quantify these portfolio's underlying risk during 2008. The Company continues to be profitable, meets the federal regulatory definition of well-capitalized, and we believe it is well positioned for moving forward into 2009."
About Columbia Commercial Bancorp:
Information about the Company's stock may be obtained through the Over the Counter Bulletin Board at www.otcbb.com. Columbia Commercial Bancorp's stock symbol is CLBC.
Columbia Commercial Bancorp was formed in 2002 as a holding company for Columbia Community Bank, which was opened in 1999 by local business people to provide business loans and deposit products for Oregon businesses.
With offices in Hillsboro, Forest Grove, Tanasbourne and Tigard/Durham, Columbia Community Bank is dedicated to providing a superior and personalized business banking experience for its clients in and around Oregon. The Bank was named among the "100 Best Companies to Work for in Oregon" by Oregon Business Magazine (2009 and 2007) and the Bank has also been named by Portland Business Journal as one of the "100 Fastest-Growing Private Companies in Oregon" consistently over the past several years. In 2008, US Banker magazine ranked Columbia Commercial Bancorp number 15 among 1,115 financial institutions in the nation with assets of $2 billion or less based upon a three-year average return on equity.
For more information about Columbia Commercial Bancorp, or its subsidiary, Columbia Community Bank, call (503) 693-7500 or visit our website at www.columbiacommunitybank.com. Information contained in or linked to our website is not incorporated as a part of this release.
Certain statements in this release may constitute forward-looking statements within the definition of the "safe-harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to significant uncertainties, which could cause actual results to differ materially from those set forth in such statements. Forward-looking statements are those that incorporate management's current expectations and plans based on information currently know to them. These statements can sometimes be identified by words such as "believe," "estimate," "anticipate," "expect," "intend," "will," "may," "should," or other similar phrases or words. Readers are cautioned not to place undue reliance on forward-looking statements. In particular, they should not be construed as assurances of a given level of performance or as promises of a given set of management's actions. Some of the factors that could cause management to deviate from its current plans, or could cause the Company's results to differ from current expectations, include the effect of localized or regional economic shifts that may affect the collectability of loans or the value of the collateral underlying those loans; the effects of laws, regulations, policies and government actions upon the Company's assets and operations; sensitivity to the Northwestern Oregon geographic markets and events affecting those markets: and the impacts of new government initiatives (such as climate change initiatives and other programs) upon us and our borrowers. The Company does not intend to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
Consolidated Balance Sheet
Unaudited
(amounts in 000's, except per share data)
% Change September
December 31, 2008 vs. 30, % Change
2008 2007 2007 2008 Quarter
--------- --------- --------- --------- ---------
ASSETS
Cash & due from
banks $ 9,274 $ 4,724 96.3% $ 3,378 174.5%
Federal funds
sold 8,739 737 1085.8% 617 1316.4%
Investments 57,463 49,976 15.0% 50,361 14.1%
Gross loans 315,150 283,967 11.0% 311,142 1.3%
Allowance for
loan losses (5,839) (3,100) 88.4% (5,280) 10.6%
--------- --------- --------- --------- ---------
Net loans 309,311 280,867 10.1% 305,862 1.1%
Other assets 17,685 12,887 37.2% 17,855 -1.0%
--------- --------- --------- --------- ---------
Total Assets $ 402,472 $ 349,191 15.3% $ 378,073 6.5%
========= ========= ========= ========= =========
LIABILITIES
Deposits $ 289,089 $ 236,690 22.1% $ 270,063 7.0%
Repurchase
agreements 15,810 16,375 -3.5% 11,352 39.3%
Federal funds
purchased - - 0.0% - 0.0%
FHLB borrowings 59,135 59,000 0.2% 60,135 -1.7%
Real estate
borrowings 1,819 1,901 -4.3% 1,840 -1.1%
Junior
subordinated
debentures 8,248 8,248 0.0% 8,248 0.0%
Other liabilities 4,770 4,880 -2.3% 3,066 55.6%
--------- --------- --------- --------- ---------
Total
Liabilities 378,871 327,094 15.8% 354,704 6.8%
STOCKHOLDERS' EQUITY 23,601 22,097 6.8% 23,369 1.0%
--------- --------- --------- --------- ---------
Total
liabilities
and
stockholders'
equity $ 402,472 $ 349,191 15.3% $ 378,073 6.5%
========= ========= ========= ========= =========
Shares outstanding
at end-of-period 3,126,081 3,006,236 3,111,081
Book value per share $ 7.55 $ 7.35 $ 7.51
Allowance for loan
losses to total
loans 1.85% 1.09% 1.70%
Non-performing
assets (non-accrual
loans & OREO) $ 22,058 $ - $ 10,487
Consolidated Income Statement
Unaudited
(amounts in 000's, except per share data and ratios)
Twelve Months Ending Three Months Ending
---------------------------- ----------------------------
12/31/2008 12/31/2007 % Change 12/31/2008 9/30/2008 % Change
-------- -------- -------- -------- -------- --------
INTEREST INCOME
Loans $ 22,243 $ 23,860 -6.8% $ 5,136 $ 5,513 -6.84%
Investments 2,875 2,368 21.4% 595 716 -16.90%
Federal
funds sold
and other 164 155 5.8% 106 14 657.14%
-------- -------- -------- -------- -------- --------
Total
interest
income 25,282 26,383 -4.2% 5,837 6,243 -6.50%
-------- -------- -------- -------- -------- --------
INTEREST
EXPENSE
Deposits 8,845 8,948 -1.2% 2,161 2,123 1.79%
Repurchase
agreements
and federal
funds
purchased 424 760 -44.2% 70 83 -15.66%
FHLB
borrowings 2,415 2,128 13.5% 602 608 -0.99%
Real estate
borrowings 138 144 -4.2% 34 35 -2.86%
Junior
subordinated
debentures 489 651 -24.9% 122 108 12.96%
-------- -------- -------- -------- -------- --------
Total
interest
expense 12,311 12,631 -2.5% 2,989 2,957 1.08%
-------- -------- -------- -------- -------- --------
NET INTEREST
INCOME BEFORE
PROVISION FOR
LOAN LOSSES 12,971 13,752 -5.7% 2,848 3,286 -13.33%
PROVISION FOR
LOAN LOSSES 4,230 740 471.6% 1,550 950 63.16%
-------- -------- -------- -------- -------- --------
NET INTEREST
INCOME AFTER
PROVISION FOR
LOAN LOSSES 8,741 13,012 -32.8% 1,298 2,336 -44.43%
NON-INTEREST
INCOME 478 313 52.7% 115 129 -10.85%
NON-INTEREST
EXPENSE 7,330 6,530 12.3% 1,787 1,898 -5.85%
SECURITY GAINS
/ (LOSSES) 51 (122) n/a 1 10 -90.00%
-------- -------- -------- -------- -------- --------
INCOME BEFORE
PROVISION FOR
INCOME TAXES 1,940 6,673 -70.9% (373) 577 -164.64%
PROVISION
(BENEFIT) FOR
INCOME TAXES 629 2,518 -75.0% (170) 191 -189.01%
-------- -------- -------- -------- -------- --------
NET INCOME $ 1,311 $ 4,155 -68.4% $ (203) $ 386 -152.59%
======== ======== ======== ======== ======== ========
Earnings per
share - Basic
(1) $ 0.43 $ 1.40 $ (0.07) $ 0.13
Earnings per
share -
Diluted (1) $ 0.42 $ 1.34 $ (0.06) $ 0.12
Return on
average equity 5.61% 21.45% -3.43% 6.72%
Return on
average assets 0.34% 1.36% -0.21% 0.40%
Net interest
margin 3.54% 4.59% 3.02% 3.55%
Efficiency
ratio 54.5% 46.43% 60.3% 55.55%
(1) All prior periods have been restated for the 100% stock dividend
effective July 1, 2007.