Business & Finance
Business and Finance
Business and Finance
Mon, August 3, 2009
Sun, August 2, 2009
Fri, July 31, 2009 Columbia Commercial Bancorp: Columbia Commercial Bancorp Reports Second Quarter 2009 Results
HILLSBORO, OR--(Marketwire - July 31, 2009) - Columbia Commercial Bancorp (
Rick A. Roby, President and Chief Executive Officer, commented, "Earnings suffered due to an increased loan loss provision expense of $4.3 million during the quarter and a $687,000 write-down in the valuation of bank-owned property (OREO) due to the continued deterioration of the region's residential real estate market. The second quarter was also adversely impacted by recognizing an other-than-temporary-impairment (OTTI) expense of $1.2 million for a security within the Bank's investment portfolio." Roby continues, "While the security write-down adversely affected current financial results, it had no effect on the Bank's regulatory capital. The Bank also incurred a $185,000 expense this quarter related to an industry wide FDIC special assessment. Taking all these factors into consideration, and according to regulatory definitions, the Bank still remains "well-capitalized" with a total risk-based capital ratio of 10.53% compared to 10.64% at the end of 2008."
The Bank's year-to-date loan loss provision for the six months ending June 30, 2009 was $4.9 million compared to $1.7 million for the same period in 2008. With 2009 year-to-date net charge-offs of $3.7 million, the allowance for loan losses has increased to $7.0 million, or 2.40% of loans as of June 30, 2009, relative to $5.8 million or 1.85% of loans as of December 31, 2008. "The Bank continues to be successful in reducing its residential construction and land development loan concentrations and is also working diligently through its non-performing assets, but the legal procedures to obtain control of collateral on non-performing loans is a lengthy process and with today's weak economic conditions, property liquidations remain slow," states Fred Johnson, the Bank's Chief Credit Officer. Mr. Johnson continues, "While non-performing assets at the end of this quarter exceeded those outstanding at the end of 2008, over this past quarter the Bank has begun to see some stabilization and an actual decrease in non-performing loans." Non-performing assets (loans not accruing interest and other real-estate owned acquired from troubled loans) were $30.2 million as of June 30, 2009, down $1.0 million from March 31, 2009, or up $8.1 million from the December 31, 2008 amount of $22.1 million. Outstanding real estate construction and land development loans have decreased $29.3 million over the past six months to $86.7 million as of June 30, 2009 when compared to $116.0 million at December 31, 2008 and are down $46.3 million over the past twelve months when compared to the $133.0 million in outstandings as of June 30, 2008.
Net interest margin decreased 17 basis points, from 2.63% for the first quarter of 2009 to 2.46% for the second quarter. For the six months ending June 30, 2009, net interest margin was 2.55% compared to 3.80% for the same six month period of 2008. Bob Ekblad, the Bank's Chief Financial Officer, notes, "Net interest margin continues to be adversely affected by the Bank's level of non-performing assets, reduced loan origination fees, and the generally low overall interest rate environment. But as we move forward, net interest margin will benefit from the continued re-pricing of higher cost time deposits as they mature." Ekblad continues, "In other operating areas the Bank is striving to strengthen its performance. Non-interest income levels are flat and while non-interest expense has been increasing overall due to problem loan related expenses and increased FDIC insurance premiums, the Bank has been successful at reducing personnel along with premises and fixed asset related expenses by almost $250,000 when comparing the first six months of 2009 to 2008."
Rick A. Roby concludes with, "The lagging economy and the continually depressed real estate market make it difficult for the Bank to quickly rid itself of its problem assets which continue to adversely impact operating results. With this past quarter's increase in the allowance for loan losses and the write-down of a security impairment while continually reducing the amount of residential construction and land development loans outstanding, we feel that employees, management and the Board are properly positioning the Bank for the years ahead."
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 market; 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 and ratios) % Change December % Change June 30, 2009 vs. 30, Year-to- 2009 2008 2008 2008 Date --------- --------- --------- --------- --------- ASSETS Cash & due from banks $ 31,929 $ 5,877 443.3% $ 9,274 244.3% Federal funds sold 10,000 22 45354.5% 8,739 14.4% Investment Securities - Available for Sale 40,140 52,606 -23.7% 54,606 -26.5% Investments - Other 2,646 2,934 -9.8% 2,857 -7.4% Gross loans 292,049 309,193 -5.5% 315,150 -7.3% Allowance for loan losses (7,005) (4,679) 49.7% (5,839) 20.0% --------- --------- --------- --------- --------- Net loans 285,044 304,514 -6.4% 309,311 -7.8% Other real estate owned 5,298 - n/a 3,454 53.4% Other assets 16,539 13,902 19.0% 14,231 16.2% --------- --------- --------- --------- --------- Total Assets $ 391,596 $ 379,855 3.1% $ 402,472 -2.7% ========= ========= ========= ========= ========= LIABILITIES Deposits $ 284,389 $ 268,884 5.8% $ 288,936 -1.6% Repurchase agreements 16,750 14,352 16.7% 15,810 5.9% Federal funds purchased - 1,615 0.0% - 0.0% FHLB borrowings 56,635 60,135 -5.8% 59,135 -4.2% Other borrowings 1,774 1,860 -4.6% 1,819 -2.5% Junior subordinated debentures 8,248 8,248 0.0% 8,248 0.0% Other liabilities 3,183 2,410 32.1% 4,923 -35.3% --------- --------- --------- --------- --------- Total Liabilities 370,979 357,504 3.8% 378,871 -2.1% STOCKHOLDERS' EQUITY 20,617 22,351 -7.8% 23,601 -12.6% --------- --------- --------- --------- --------- Total liabilities and stockholders' equity $ 391,596 $ 379,855 3.1% $ 402,472 -2.7% ========= ========= ========= ========= ========= Shares outstanding at end-of-period 3,142,581 3,038,636 3,126,081 Book value per share $ 6.56 $ 7.36 $ 7.55 Allowance for loan losses to total loans 2.40% 1.51% 1.85% Non-performing assets (non-accrual loans & OREO) $ 30,162 $ 5,763 $ 22,058 Tier 1 leverage ratio (5% minimum for "well-capitalized") 7.64% 8.53% 8.42% Tier 1 risk-based capital ratio (6% minimum for "well-capitalized") 9.29% 9.36% 9.38% Total risk-based capital ratio (10% minimum for "well-capitalized") 10.53% 10.61% 10.64% Consolidated Statement of Operations Unaudited (amounts in 000's, except per share data and ratios) Three Months Ending Six Months Ending -------------------- -------------------- % % 6/30/2009 3/31/2009 Change 6/30/2009 6/30/2008 Change --------- --------- ------- --------- --------- ------ INTEREST INCOME Loans $ 4,483 $ 4,647 -3.5% $ 9,130 $ 11,594 -21.3% Investments 279 466 -40.1% 745 1,564 -52.4% Federal funds sold and other 32 40 -20.0% 72 44 63.6% --------- --------- ------- --------- --------- ------ Total interest income 4,794 5,153 -7.0% 9,947 13,202 -24.7% --------- --------- ------- --------- --------- ------ INTEREST EXPENSE Deposits 1,971 2,022 -2.5% 3,993 4,561 -12.5% Repurchase agreements and federal funds purchased 39 45 -13.3% 84 271 -69.0% FHLB borrowings 569 581 -2.1% 1,150 1,205 -4.6% Other borrowings 32 33 -3.0% 65 69 -5.8% Junior subordinated debentures 77 86 -10.5% 163 259 -37.1% --------- --------- ------- --------- --------- ------ Total interest expense 2,688 2,767 -2.9% 5,455 6,365 -14.3% --------- --------- ------- --------- --------- ------ NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES 2,106 2,386 -11.7% 4,492 6,837 -34.3% PROVISION FOR LOAN LOSSES 4,325 600 620.8% 4,925 1,730 184.7% --------- --------- ------- --------- --------- ------ NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES (2,219) 1,786 -224.2% (433) 5,107 -108.5% NON-INTEREST INCOME 117 116 0.9% 233 234 -0.4% NON-INTEREST EXPENSE 2,375 2,055 15.6% 4,430 3,645 21.5% INVESTMENTS - REALIZED GAINS / (LOSSES) 403 873 -53.8% 1,276 40 3090.0% INVESTMENTS - OTHER THAN TEMPORARY IMPAIRMENT (1,200) - n/a (1,200) - n/a OREO VALUATION ADJUSTMENTS & GAINS/LOSS ON SALES - NET (687) - n/a (687) - n/a --------- --------- ------- --------- --------- ------ INCOME BEFORE PROVISION FOR INCOME TAXES (5,961) 720 -927.9% (5,241) 1,736 -401.9% PROVISION (BENEFIT) FOR INCOME TAXES (2,318) 249 -1030.9% (2,069) 608 -440.3% --------- --------- ------- --------- --------- ------ NET INCOME $ (3,643) $ 471 -873.5% $ (3,172) $ 1,128 -381.2% ========= ========= ======= ========= ========= ====== Earnings per share - Basic $ (1.16) $ 0.15 $ (1.01) $ 0.37 Earnings per share - Diluted $ (1.16) $ 0.15 $ (1.01) $ 0.36 Return on average equity -62.91% 8.11% -27.36% 9.66% Return on average assets -3.69% 0.48% -1.61% 0.60% Net interest margin 2.46% 2.63% 2.55% 3.80% Efficiency ratio 106.8% 82.2% 93.8% 51.6%
