Exhibit 99.1
FOR IMMEDIATE RELEASE
January 27, 2005
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
COLUMBIA BANKING SYSTEM ANNOUNCES
INCREASED FULL YEAR AND FOURTH QUARTER 2004 EARNINGS;
REACHES $2 BILLION IN ASSETS
HIGHLIGHTS
| | • | | Fourth quarter earnings of $6.5 million, up 19% from 4th quarter 2003. |
| | • | | Earnings for the year of $22.5 million, up 15% compared with the prior year. |
| | • | | Diluted 4th quarter earnings per share of $0.41, up 8% from the prior year. |
| | • | | Diluted earnings per share for the year of $1.52, up 11% from last year. |
| | • | | Total loans increased $281 million, up 26% from 2003. |
| | • | | Average core deposit growth of 22% compared with the prior year. |
| | • | | Return on Assets and Return on Equity of 1.17% and 13.25%, respectively, for 2004. |
| | • | | Bank of Astoria acquisition completed October 1, 2004. |
| | • | | Reached milestone of over $2 billion in assets. |
TACOMA, Washington—Columbia Banking System, Inc. (Nasdaq: COLB) today announced increased net income for the fourth quarter ended December 31, 2004 of $6.5 million, an increase of 19% compared to $5.4 million for the fourth quarter of 2003. On a diluted per share basis, net income for the fourth quarter was $0.41, an increase of 8% from $0.38 in 2003. Return on average assets and return on average equity for the fourth quarter 2004 were 1.19% and 12.63%, respectively, compared to 1.25% and 14.80%, respectively, for last year. Total nonperforming assets decreased $6.3 million, or 41%, to $9.1 million at December 31, 2004 from $15.4 million at December 31, 2003. Return on average equity for the year was 13.25%, down from 13.83% for 2003. The slight decrease in ROE for the year was primarily due to the increase in shareholder equity related to the acquisition of the Bank of Astoria in the fourth quarter 2004. Net income for the year 2004 was $22.5 million, an increase of $3.0 million, up 15% compared to $19.5 million for 2003. On a diluted per share basis, net income for 2004 was $1.52, compared with $1.37, an increase of 11% over the same period last year. Return on average assets for the year 2004 was 1.17%, up from 1.15% for 2003.
Melanie J. Dressel, President and Chief Executive Officer, said “We are pleased to see our profitability continue to improve for the fourth quarter and full year 2004 as a result of increased interest income, loan growth and rising short-term rates. This is in spite of significant expenses related to documentation compliance with Section 404 of the Sarbanes-Oxley Act.”
Ms. Dressel said, “On October 1, 2004, we completed the acquisition of the Bank of Astoria, a 5-branch commercial bank headquartered in Astoria, Oregon with $170 million in assets. We are delighted to have such a high quality organization join our team. Bank of Astoria is continuing to operate under its existing name and locations with the same local management and board of directors.”
“Total loans at December 31, 2004 reflected a significant increase from the prior year,” Ms. Dressel continued. “Compared to a year ago, outstanding loans are up $281million. The Bank of Astoria portfolio added over $100 million in loans. Our existing loan production staff throughout our market area, including our expanded King County team, generated the remainder. We recently added nine experienced bankers who came to us when Washington Mutual discontinued its business banking operation.”
Ms. Dressel further noted, “The increases in the prime rate have had a positive impact on our net interest income, as over 40% of our loans are tied to prime and other related indices. We have been able to lower our cost of funds and manage our net interest margin through our continued growth in core deposits, which comprise over 74% of our total deposits.”
At December 31, 2004, Columbia’s total assets were $2.2 billion, an increase of 25% from $1.7 billion at December 31, 2003. Total loans were $1.4 billion at December 31, 2004, up 26% from December 31, 2003, and total securities increased $119 million to $643 million at December 31, 2004, an increase of 23% from the prior year. Total deposits increased 21% from December 31, 2003, ending at $1.9 billion at December 31, 2004. Core deposits at December 31, 2004 were $1.4 billion, an increase of $284 million, or 26%, compared with 2003.
Operating Results
Quarter Ended December 31, 2004
Net Interest Income
Net interest income for the fourth quarter of 2004 increased 26% to $20.5 million, from $16.2 million for the three months ended December 31, 2003. This was primarily due to higher average earning assets during this period, coupled with increases in the prime lending rate, and lower funding costs from increased core deposits. The net interest margin increased to 4.26% in the fourth quarter of 2004, from 4.16% for the same period last year.
Average interest-earning assets grew to $1.97 billion, or 24%, during the fourth quarter of 2004, compared with $1.59 billion in the fourth quarter of 2003. The yield on average interest-earning assets increased 7 basis points (a basis point equals 1/100 of 1%) to 5.32% during the fourth quarter of 2004 compared with 5.25% during the same period of 2003. In comparison, average interest-bearing liabilities increased $287 million to $1.53 billion compared to a year ago. The cost of average interest-bearing liabilities decreased 3 basis points to 1.36% during the fourth quarter of 2004, from 1.39% in the same period of 2003.
For the twelve months ended December 31, 2004, net interest income increased 13% to $71.9 million from $63.9 million in 2003. During 2004, the Company’s net interest margin decreased to 4.19% from 4.23% for 2003. Average interest-earning assets grew to $1.77 billion during 2004, compared with $1.54 billion for the same period of 2003. The yield on average interest-earning assets decreased 32 basis points to 5.21% during 2004, from 5.53% in 2003. In comparison, average interest-bearing liabilities grew to $1.39 billion compared with $1.24 billion for 2003. The cost of average interest-bearing liabilities decreased 30 basis points to 1.31% during 2004 from 1.61% in 2003.
Noninterest Income
Noninterest income for the fourth quarter of 2004 increased $459,000 or 8% over the same period in 2003, and decreased $540,000, or 2%, for the full year of 2004 compared with the year 2003.
The increase during the fourth quarter is due primarily to increases in service charges and other fees and continuing growth in merchant services income. The decreases in noninterest income during the full year of 2004 were primarily due to decreases in home refinancing activity. Merchant services income increased $1.2 million to $7.3 million for the year ended December 31, 2004, compared to $6.1 million for the same period in 2003.
Noninterest Expense
Total noninterest expense for the fourth quarter of 2004 was $16.7 million, an increase of 20% from $13.9 million for the same period in 2003. Noninterest expense for the full year 2004 was $61.3 million, an increase of 10% from $56.0 for the full year 2003. These increases included costs of implementing the internal control requirements of Section 404 of the Sarbanes-Oxley Act of 2002 (“Sarbanes”). The Company has incurred Sarbanes expenditures of $1.0 million year-to-date, excluding Sarbanes audit expenses; $254,000 was expensed in the fourth quarter of 2004. These expenses should continue at a lower level into subsequent quarters in 2005, as requirements are implemented. Noninterest expense during the fourth quarter of 2004 increased primarily due to the purchase of the Bank of Astoria and the investment in the expansion of our King County team. The Company also experienced higher group health insurance rates and state employment taxes in its employee benefit expenses.
Sarbanes-Oxley 404 external implementation expenses for the fourth quarter 2004 were $254,000, and total $1.0 million for the full year 2004, exclusive of audit expenses. Excluding the Sarbanes implementation expenses, pro-forma net income for the fourth quarter 2004 was $6.6 million, up 22% from $5.4 million for the fourth quarter of 2003. Pro-forma earnings per share were $0.42 per diluted share, an increase of 11% from $0.38 per diluted share one year ago. For the year 2004, pro-forma net income was $23.2 million, an increase of 19% from $19.5 million for the year 2003; pro-forma net income on a diluted per share basis for the year 2004 was $1.57 compared with $1.37 for 2003, an increase of 15%. The pro-forma efficiency ratio for the fourth quarter 2004 was 60.46% compared to 62.84% for the fourth quarter of 2003; the pro-forma efficiency ratio for the year 2004 was 62.12% compared to 62.86% for the same period last year.
Nonperforming Assets and Loan Loss Provision
Nonperforming assets decreased $6.3 million to $9.1 million from $15.4 million at year-end 2003, primarily due to decreases in nonaccrual loans, which decreased $5.0 million, or 38%, to $8.2 million at December 31, 2004.
Nonperforming loans were $8.4 million, or 0.62% of total loans (excluding loans held for sale) at December 31, 2004, compared to $13.3 million, or 1.23% of total loans at December 31, 2003. For the quarter, nonperforming loans rose slightly, from 0.51% as of September 30, 2004 to 0.62% as of December 31, 2004. Most of the increase centered in the commercial business category, which was negatively affected by events surrounding a single relationship, and resulted in the increase in nonaccrual loans and the increase in net loan charge-offs for the fourth quarter and the full year 2004. Ms. Dressel said, “Our credit quality measures continue to move in a positive direction and remain some of the strongest in the Company’s history”.
The provision for loan losses was $445,000 for the fourth quarter of 2004; the Company made no provision for loan losses in the fourth quarter of 2003. The increase in the provision for loan losses was primarily due to the increases in loan volume during the fourth quarter, 2004. For 2004 the loan loss provision was $995,000 compared to $2.9 million for the full year 2003.
The allowance for loan losses as a percentage of loans (excluding loans held for sale at each date) decreased to 1.46% at year-end 2004 as compared to 1.88% at year-end 2003, primarily due to improved credit quality and the previously mentioned increase in loan balances. In addition, the allowance for loan losses was positively impacted by a 41% decrease in nonperforming assets from 2003. At year-end, the allowance for loan losses to nonperforming loans increased to 235% compared to 153% at December 31, 2003. Ms. Dressel said, “We continue to maintain a conservative approach to credit quality and will continue to prudently add to our loan loss allowance as necessary to ensure we maintain appropriate reserves.”
Ms. Dressel continued, “The year 2004 brought the opportunity to expand our footprint as well as deepen our strength in existing markets. We have always strived to attract and hire the most experienced bankers in our market areas. We benefited from the addition of the Bank of Astoria team and the additions to our King County lending team. We believe both will continue to add value to our organization.”
Ms. Dressel further noted, “In early 2005, we will extend our footprint by adding a branch in University Place. We will continue our strategy of leveraging our strong base of branches in both Washington and Oregon, focusing on increasing market share in the communities we serve.”
Conference Call
Columbia will discuss the quarterly and year-end results on a conference call on Thursday, January 27, 2005 at 1:00 PST. Interested investors, analysts, media representatives and the public are invited to listen to this discussion by calling 1-800-322-1106. A conference call replay will be available from approximately 4:30 p.m. PST on January 27 through midnight PST on Thursday, February 3, 2005. The conference call replay can be accessed by dialing 1-800-642-1687 and entering access code 3584539.
Columbia Banking System, Inc. is a Tacoma-based bank holding company whose wholly owned bank subsidiaries are Columbia Bank and Bank of Astoria, which was acquired October 1, 2004. Columbia Bank is a Washington state-chartered full-service commercial bank with 34 banking offices in Pierce, King, Cowlitz, Kitsap and Thurston 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. Columbia Banking System Inc.’s Annual Meeting of Shareholders will be held at 1:00 PDT on April 27, 2005 at the Greater Tacoma Convention & Trade Center, 1500 Broadway, Tacoma, WA 98402.
# # #
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.
FINANCIAL STATISTICS
Columbia Banking System, Inc.
Unaudited
| | | | | | | | | | | | | | | | |
| | | Three Months Ended December 31,
| | | Twelve Months Ended December 31,
| |
(in thousands, except per share amounts) | | 2004
| | | 2003
| | | 2004
| | | 2003
| |
Earnings | | | | | | | | | | | | | | | | |
Net interest income | | $ | 20,528 | | | $ | 16,245 | | | $ | 71,943 | | | $ | 63,867 | |
Provision for loan loss | | | 445 | | | | | | | | 995 | | | | 2,850 | |
Noninterest income | | | 5,923 | | | | 5,464 | | | | 22,244 | | | | 22,784 | |
Noninterest expense | | | 16,737 | | | | 13,931 | | | | 61,326 | | | | 55,960 | |
Net income | | | 6,465 | | | | 5,431 | | | | 22,513 | | | | 19,522 | |
| | | | |
Per Share | | | | | | | | | | | | | | | | |
Net income (basic) | | $ | 0.42 | | | $ | 0.39 | | | $ | 1.55 | | | $ | 1.39 | |
Net income (diluted) | | | 0.41 | | | | 0.38 | | | | 1.52 | | | | 1.37 | |
| | | | |
Averages | | | | | | | | | | | | | | | | |
Total assets | | $ | 2,156,030 | | | $ | 1,724,573 | | | $ | 1,919,573 | | | $ | 1,696,417 | |
Interest-earning assets | | | 1,973,690 | | | | 1,588,762 | | | | 1,769,470 | | | | 1,544,869 | |
Loans | | | 1,320,260 | | | | 1,081,513 | | | | 1,186,506 | | | | 1,128,941 | |
Securities | | | 650,411 | | | | 497,380 | | | | 552,742 | | | | 401,594 | |
Deposits | | | 1,854,809 | | | | 1,532,063 | | | | 1,690,513 | | | | 1,483,173 | |
Core deposits | | | 1,381,334 | | | | 1,082,843 | | | | 1,238,536 | | | | 1,017,126 | |
Shareholders’ Equity | | | 203,679 | | | | 145,593 | | | | 169,853 | | | | 141,129 | |
| | | | |
Financial Ratios | | | | | | | | | | | | | | | | |
Return on average assets | | | 1.19 | % | | | 1.25 | % | | | 1.17 | % | | | 1.15 | % |
Return on average equity | | | 12.63 | % | | | 14.80 | % | | | 13.25 | % | | | 13.83 | % |
Net interest margin | | | 4.26 | % | | | 4.16 | % | | | 4.19 | % | | | 4.23 | % |
Efficiency ratio (tax equivalent)(1) | | | 61.40 | % | | | 62.84 | % | | | 63.20 | % | | | 62.86 | % |
Average equity to average assets | | | 9.45 | % | | | 8.44 | % | | | 8.85 | % | | | 8.32 | % |
| | |
| | | | | | December 31,
| |
| | | | | | | | | 2004
| | | 2003
| |
Period end | | | | | | | | | | | | | | | | |
Total assets | | | | | | | | | | $ | 2,179,280 | | | $ | 1,744,347 | |
Loans | | | | | | | | | | | 1,359,743 | | | | 1,078,302 | |
Allowance for loan losses | | | | | | | | | | | 19,881 | | | | 20,261 | |
Securities | | | | | | | | | | | 643,060 | | | | 523,864 | |
Deposits | | | | | | | | | | | 1,864,028 | | | | 1,544,626 | |
Core deposits | | | | | | | | | | | 1,382,235 | | | | 1,098,237 | |
Shareholders’ equity | | | | | | | | | | | 204,900 | | | | 150,372 | |
Book value per share | | | | | | | | | | | 13.14 | | | | 10.66 | |
| | | | |
Nonperforming assets | | | | | | | | | | | | | | | | |
Nonaccrual loans | | | | | | | | | | $ | 8,222 | | | $ | 13,255 | |
Restructured loans | | | | | | | | | | | 227 | | | | | |
Personal property owned | | | | | | | | | | | | | | | 691 | |
Real estate owned | | | | | | | | | | | 680 | | | | 1,452 | |
| | | | | | | | | | |
|
|
| |
|
|
|
Total nonperforming assets | | | | | | | | | | $ | 9,129 | | | $ | 15,398 | |
| | | | | | | | | | |
|
|
| |
|
|
|
Nonperforming loans to period-end loans | | | | | | | | | | | 0.62 | % | | | 1.23 | % |
Nonperforming assets to period-end assets | | | | | | | | | | | 0.42 | % | | | 0.88 | % |
Allowance for loan losses to period-end loans | | | | | | | | | | | 1.46 | % | | | 1.88 | % |
Allowance for loan losses to nonperforming loans | | | | | | | | | | | 235.31 | % | | | 152.86 | % |
Allowance for loan losses to nonperforming assets | | | | | | | | | | | 217.78 | % | | | 131.58 | % |
Net loan charge-offs | | | | | | | | | | $ | 2,742 | (2) | | $ | 1,760 | (2) |
|
(1) Noninterest expense divided by the sum of net interest income and noninterest income on a tax equivalent basis, excluding nonrecurring income and expense, such as gains/losses on investment securities and net cost (gain) of OREO. (2) For the year ended December 31, 2004 and 2003, respectively. |
QUARTERLY FINANCIAL STATISTICS
Columbia Banking System, Inc.
Unaudited
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended
| |
(in thousands, except per share amounts) | | Dec 31 2004
| | | Sept 30 2004
| | | Jun 30 2004
| | | Mar 31 2004
| | | Dec 31 2003
| |
Earnings | | | | | | | | | | | | | | | | | | | | |
Net interest income | | $ | 20,528 | | | $ | 17,567 | | | $ | 16,976 | | | $ | 16,872 | | | $ | 16,245 | |
Provision for loan loss | | | 445 | | | | 250 | | | | | | | | 300 | | | | | |
Noninterest income | | | 5,923 | | | | 5,336 | | | | 5,871 | | | | 5,114 | | | | 5,464 | |
Noninterest expense | | | 16,737 | | | | 15,061 | | | | 15,179 | | | | 14,349 | | | | 13,931 | |
Net income | | | 6,465 | | | | 5,483 | | | | 5,414 | | | | 5,151 | | | | 5,431 | |
| | | | | |
Per Share | | | | | | | | | | | | | | | | | | | | |
Net income [basic] | | | 0.42 | | | | 0.38 | | | | 0.38 | | | | 0.36 | | | | 0.39 | |
Net income [diluted] | | | 0.41 | | | | 0.38 | | | | 0.37 | | | | 0.36 | | | | 0.38 | |
| | | | | |
Averages | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 2,156,030 | | | $ | 1,885,892 | | | $ | 1,858,082 | | | $ | 1,776,056 | | | $ | 1,724,573 | |
Interest-earning assets | | | 1,973,690 | | | | 1,742,778 | | | | 1,716,825 | | | | 1,642,635 | | | | 1,588,762 | |
Loans | | | 1,320,260 | | | | 1,147,746 | | | | 1,150,611 | | | | 1,126,363 | | | | 1,081,513 | |
Securities | | | 650,411 | | | | 550,203 | | | | 498,553 | | | | 510,756 | | | | 497,380 | |
Deposits | | | 1,854,809 | | | | 1,681,896 | | | | 1,664,497 | | | | 1,559,140 | | | | 1,532,063 | |
Core deposits | | | 1,381,334 | | | | 1,243,860 | | | | 1,218,528 | | | | 1,108,794 | | | | 1,082,843 | |
Shareholders’ Equity | | | 203,679 | | | | 162,133 | | | | 158,331 | | | | 154,981 | | | | 145,593 | |
| | | | | |
Financial Ratios | | | | | | | | | | | | | | | | | | | | |
Return on average assets | | | 1.19 | % | | | 1.16 | % | | | 1.17 | % | | | 1.17 | % | | | 1.25 | % |
Return on average equity | | | 12.63 | | | | 13.45 | | | | 13.75 | | | | 13.37 | | | | 14.80 | |
Net interest margin | | | 4.26 | | | | 4.13 | | | | 4.10 | | | | 4.25 | | | | 4.16 | |
Efficiency ratio (tax equivalent) | | | 61.40 | | | | 64.14 | | | | 64.18 | | | | 63.36 | | | | 62.84 | |
Average equity to average assets | | | 9.45 | | | | 8.60 | | | | 8.52 | | | | 8.73 | | | | 8.44 | |
| | | | | |
Period end | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 2,179,280 | | | $ | 1,936,048 | | | $ | 1,861,623 | | | $ | 1,801,353 | | | $ | 1,744,347 | |
Loans | | | 1,359,743 | | | | 1,165,340 | | | | 1,130,508 | | | | 1,131,531 | | | | 1,078,302 | |
Allowance for loan losses | | | 19,881 | | | | 19,927 | | | | 19,769 | | | | 19,958 | | | | 20,261 | |
Securities | | | 643,060 | | | | 608,939 | | | | 487,407 | | | | 508,046 | | | | 523,864 | |
Deposits | | | 1,864,028 | | | | 1,688,437 | | | | 1,671,545 | | | | 1,603,378 | | | | 1,544,626 | |
Core deposits | | | 1,382,235 | | | | 1,246,958 | | | | 1,227,948 | | | | 1,147,246 | | | | 1,098,237 | |
Shareholders’ equity | | | 204,900 | | | | 169,939 | | | | 155,674 | | | | 163,016 | | | | 150,372 | |
| | | | | |
Book value per share | | | 13.14 | | | | 11.90 | | | | 10.92 | | | | 11.45 | | | | 10.66 | |
| | | | | |
Nonperforming assets | | | | | | | | | | | | | | | | | | | | |
Nonaccrual loans | | $ | 8,222 | | | $ | 5,743 | | | $ | 5,255 | | | $ | 12,715 | | | $ | 13,255 | |
Restructured loans | | | 227 | | | | 239 | | | | 251 | | | | | | | | | |
Personal property owned | | | | | | | 615 | | | | 639 | | | | 635 | | | | 691 | |
Real estate owned | | | 680 | | | | 680 | | | | 781 | | | | 1,056 | | | | 1,452 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total nonperforming assets | | $ | 9,129 | | | $ | 7,277 | | | $ | 6,926 | | | $ | 14,406 | | | $ | 15,398 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Nonperforming loans to period-end loans | | | 0.62 | % | | | 0.51 | % | | | 0.49 | % | | | 1.12 | % | | | 1.23 | % |
Nonperforming assets to period-end assets | | | 0.42 | % | | | 0.38 | % | | | 0.37 | % | | | 0.80 | % | | | 0.88 | % |
Allowance for loan losses to period-end loans | | | 1.46 | % | | | 1.71 | % | | | 1.75 | % | | | 1.76 | % | | | 1.88 | % |
Allowance for loan losses to nonperforming loans | | | 235.31 | % | | | 333.12 | % | | | 359.04 | % | | | 156.96 | % | | | 152.86 | % |
Allowance for loan losses to nonperforming assets | | | 217.78 | % | | | 273.84 | % | | | 285.43 | % | | | 138.54 | % | | | 131.58 | % |
Net loan charge-offs | | $ | 1,858 | | | $ | 92 | | | $ | 189 | | | $ | 603 | | | $ | 70 | |
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Columbia Banking System, Inc.
(Unaudited)
| | | | | | | | | | | | | |
| | | Three Months Ended
December 31,
| | Twelve Months Ended
December 31,
|
(in thousands except per share)
| | 2004
| | 2003
| | 2004
| | | 2003
|
Interest Income | | | | | | | | | | | | | |
Loans | | $ | 19,840 | | $ | 15,985 | | $ | 68,908 | | | $ | 69,427 |
Securities available for sale | | | 5,905 | | | 4,567 | | | 20,718 | | | | 14,166 |
Securities held to maturity | | | 22 | | | 34 | | | 103 | | | | 162 |
Deposits with banks | | | 15 | | | 23 | | | 337 | | | | 145 |
| | |
|
| |
|
| |
|
|
| |
|
|
Total interest income | | | 25,782 | | | 20,609 | | | 90,066 | | | | 83,900 |
| | | | |
Interest Expense | | | | | | | | | | | | | |
Deposits | | | 4,628 | | | 4,068 | | | 16,537 | | | | 18,304 |
Federal Home Loan Bank advances | | | 267 | | | 36 | | | 370 | | | | 652 |
Long-term obligations | | | 324 | | | 260 | | | 1,162 | | | | 1,077 |
Other borrowings | | | 35 | | | | | | 54 | | | | |
| | |
|
| |
|
| |
|
|
| |
|
|
Total interest expense | | | 5,254 | | | 4,364 | | | 18,123 | | | | 20,033 |
| | |
|
| |
|
| |
|
|
| |
|
|
Net Interest Income | | | 20,528 | | | 16,245 | | | 71,943 | | | | 63,867 |
Provision for loan losses | | | 445 | | | | | | 995 | | | | 2,850 |
| | |
|
| |
|
| |
|
|
| |
|
|
Net interest income after provision for loan losses | | | 20,083 | | | 16,245 | | | 70,948 | | | | 61,017 |
| | | | |
Noninterest Income | | | | | | | | | | | | | |
Service charges and other fees | | | 2,721 | | | 2,514 | | | 10,547 | | | | 10,072 |
Mortgage banking | | | 473 | | | 439 | | | 1,806 | | | | 3,746 |
Merchant services fees | | | 1,854 | | | 1,613 | | | 7,259 | | | | 6,108 |
Gain (loss) on sale of investment securities, net | | | | | | 222 | | | (6 | ) | | | 222 |
Bank owned life insurance (BOLI) | | | 384 | | | 388 | | | 1,318 | | | | 1,539 |
Other | | | 491 | | | 288 | | | 1,320 | | | | 1,097 |
| | |
|
| |
|
| |
|
|
| |
|
|
Total noninterest income | | | 5,923 | | | 5,464 | | | 22,244 | | | | 22,784 |
| | | | |
Noninterest Expense | | | | | | | | | | | | | |
Compensation and employee benefits | | | 8,743 | | | 7,512 | | | 32,228 | | | | 29,657 |
Occupancy | | | 2,451 | | | 2,060 | | | 8,437 | | | | 8,728 |
Merchant processing | | | 763 | | | 620 | | | 2,984 | | | | 2,461 |
Advertising and promotion | | | 359 | | | 326 | | | 2,002 | | | | 1,745 |
Data processing | | | 625 | | | 493 | | | 2,319 | | | | 1,918 |
Legal & professional services | | | 998 | | | 449 | | | 3,312 | | | | 1,831 |
Taxes, licenses & fees | | | 425 | | | 411 | | | 1,635 | | | | 1,670 |
Net cost (gain) of other real estate owned | | | 2 | | | 41 | | | (13 | ) | | | 139 |
Other | | | 2,371 | | | 2,019 | | | 8,422 | | | | 7,811 |
| | |
|
| |
|
| |
|
|
| |
|
|
Total noninterest expense | | | 16,737 | | | 13,931 | | | 61,326 | | | | 55,960 |
| | |
|
| |
|
| |
|
|
| |
|
|
Income before income taxes | | | 9,269 | | | 7,778 | | | 31,866 | | | | 27,841 |
Provision for income taxes | | | 2,804 | | | 2,347 | | | 9,353 | | | | 8,319 |
| | |
|
| |
|
| |
|
|
| |
|
|
Net Income | | $ | 6,465 | | $ | 5,431 | | $ | 22,513 | | | $ | 19,522 |
| | |
|
| |
|
| |
|
|
| |
|
|
Net income per common share: | | | | | | | | | | | | | |
Basic | | $ | 0.42 | | $ | 0.39 | | $ | 1.55 | | | $ | 1.39 |
Diluted | | | 0.41 | | | 0.38 | | | 1.52 | | | | 1.37 |
Dividends paid per common share | | | 0.07 | | | 0.05 | | | 0.26 | | | | 0.15 |
Average number of common shares outstanding | | | 15,570 | | | 14,073 | | | 14,558 | | | | 14,039 |
Average number of diluted common shares outstanding | | | 15,846 | | | 14,298 | | | 14,816 | | | | 14,215 |
CONSOLIDATED CONDENSED BALANCE SHEETS
Columbia Banking System, Inc.
(Unaudited)
| | | | | | | | | | | |
(in thousands)
| | | | | | December 31, 2004
| | December 31, 2003
| |
Assets | | | | | | | | | | | |
Cash and due from banks | | | | | | $ | 54,287 | | $ | 49,685 | |
Interest-earning deposits with banks | | | | | | | 369 | | | 949 | |
| | | | | | |
|
| |
|
|
|
Total cash and cash equivalents | | | | | | | 54,656 | | | 50,634 | |
| | | | |
Securities available for sale at fair value (amortized cost of $627,396 and $509,989 respectively) | | | | | | | 629,198 | | | 509,200 | |
Securities held to maturity (fair value of $3,199 and $4,708 respectively) | | | | | | | 3,101 | | | 4,548 | |
Federal Home Loan Bank stock | | | | | | | 10,761 | | | 10,116 | |
Loans held for sale | | | | | | | 6,019 | | | 10,640 | |
Loans, net of unearned income of ($2,839) and ($2,437) respectively | | | | | | | 1,359,743 | | | 1,078,302 | |
Less: allowance for loan losses | | | | | | | 19,881 | | | 20,261 | |
| | | | | | |
|
| |
|
|
|
Loans, net | | | | | | | 1,339,862 | | | 1,058,041 | |
| | | | |
Interest receivable | | | | | | | 9,582 | | | 6,640 | |
Premises and equipment, net | | | | | | | 44,774 | | | 50,692 | |
Real estate owned | | | | | | | 680 | | | 1,452 | |
Goodwill | | | | | | | 31,263 | | | | |
Other assets | | | | | | | 49,384 | | | 42,384 | |
| | | | | | |
|
| |
|
|
|
Total Assets | | | | | | $ | 2,179,280 | | $ | 1,744,347 | |
| | | | | | |
|
| |
|
|
|
Liabilities and Shareholders’ Equity | | | | | | | | | | | |
Deposits: | | | | | | | | | | | |
Noninterest-bearing | | | | | | $ | 392,173 | | $ | 317,721 | |
Interest-bearing | | | | | | | 1,471,855 | | | 1,226,905 | |
| | | | | | |
|
| |
|
|
|
Total deposits | | | | | | | 1,864,028 | | | 1,544,626 | |
| | | | |
Federal Home Loan Bank advances | | | | | | | 68,700 | | | 16,500 | |
Other borrowings | | | | | | | 2,500 | | | | |
Long-term subordinated debt | | | | | | | 22,246 | | | 22,180 | |
Other liabilities | | | | | | | 16,906 | | | 10,669 | |
| | | | | | |
|
| |
|
|
|
Total liabilities | | | | | | | 1,974,380 | | | 1,593,975 | |
| | | | |
Shareholders’ equity: | | | | | | | | | | | |
Preferred stock (no par value) | | | | | | | | | | | |
Authorized, 2 million shares; none outstanding | | | | | | | | | | | |
| | | | |
| | | December 31, 2004
| | December 31, 2003
| | | | | |
| | | | | | | | | | |
Common stock (no par value) | | | | | | | | | | | |
Authorized shares | | 63,034 | | 63,034 | | | | | | | |
Issued and outstanding | | 15,594 | | 14,105 | | | 161,185 | | | 112,675 | |
Retained earnings | | | | | | | 42,552 | | | 38,210 | |
Accumulated other comprehensive loss - | | | | | | | | | | | |
Unrealized gains (losses) on securities available for sale, net of tax | | | | | | | 1,163 | | | (513 | ) |
| | | | | | |
|
| |
|
|
|
Total shareholders’ equity | | | | | | | 204,900 | | | 150,372 | |
| | | | | | |
|
| |
|
|
|
Total Liabilities and Shareholders’ Equity | | | | | | $ | 2,179,280 | | $ | 1,744,347 | |
| | | | | | |
|
| |
|
|
|
