Exhibit 99.1
COLUMBIA BANCORP REPORTS RECORD PROFITS, PERFORMANCE IN 2005
NET INCOME ROSE 27% TO $13.7 MILLION, OR $1.36 PER DILUTED SHARE
RAPID GROWTH IN LOAN PORTFOLIO IN FOURTH QUARTER CONTRIBUTES TO STRONG FINISH
IN 2005
THE DALLES, Ore., Jan. 25 /PRNewswire-FirstCall/ -- Columbia Bancorp
(Nasdaq: CBBO), the financial holding company for Columbia River Bank, one of
the Northwest's best-performing financial institutions (according to SNL
Datasource), today reported continued acceleration in loan portfolio growth and
market penetration that helped the company close 2005 as one of its strongest on
record.
* 2005 Return on Equity (ROE) was 19.01%, with 4Q05 ROE of 17.63%
* 2005 Return on Assets (ROA) was 1.78%, with 4Q05 ROA of 1.66%
* 2005 Net Interest Margin (tax equivalent) (NIM) was 5.95%, with 4Q05 NIM
of 6.07%
* 2005 Efficiency Ratio was 53.67%, with 4Q05 Efficiency Ratio of 53.94%
For the year ended December 31, 2005, net income grew 27% to $13.7 million,
or $1.36 per diluted share, compared to $10.7 million, or $1.08 per diluted
share in 2004. Fourth quarter net income declined by 3% to $3.4 million or $0.34
per diluted share, compared to $3.5 million, or $0.35 per diluted share, in the
same quarter a year ago.
In the context of one-time occurrences, the bank reported in the fourth
quarter of 2004, a one-time pre-tax gain of $671,000 from the sale of
properties; in the fourth quarter of 2005, the bank recognized a benefit of
$98,000, or $0.01 per diluted share, from the Oregon corporate tax kicker
credit. On a pro-forma basis, the net income in the fourth quarter of 2005,
would have been $3.3 million, or $0.33 per diluted share, representing an
increase of 7% as compared to fourth quarter 2004 at $3.1 million, or $0.31 per
diluted share.
COMPANY BUSINESS TRENDS
Columbia Bancorp President and Chief Executive Officer, Roger Christensen,
said he is pleased with the bank's 2005 performance and its continued growth in
the competitive Northwest market, and will continue our momentum and strategic
focus as a springboard into 2006. "One of our specific goals for 2005 was
balanced growth in loans and deposits," he said. "Our bank has a higher number
of branch personnel per deposit dollar than the industry average. This higher
staffing level allows us to continue the type of focus on customer service that
results in growth of our core customer base."
Christensen said the bank will concentrate in four key areas in 2006:
* Balanced deposit and loan growth
* Operational efficiency
* Well-planned branch expansion
* Customer convenience
"We made significant process and technological improvements last year. These
include reducing the amount of time necessary to open a customer account and
incorporating multiple drive-up lanes in our branch design. Other improvements
are more operations-oriented, like ensuring we have a reliable and tested
back-up and disaster recovery system," he said.
Customer input is influencing the company's direction for 2006. According to
Shane Correa, Executive Vice President and Chief Banking Officer, customer
convenience is a bank hallmark. "Our locations are convenient, and we're a
better choice to the big banks," he said. "We want our customers to know they
can talk with an experienced lender as soon as they walk in the door. These
efforts along with others are paying off with growth in customer relationships
and product penetration-we now average more than four products per household,
well above many of our bank peers."
INCOME STATEMENT PERFORMANCE
Revenue (net interest income plus non-interest income) for the fourth
quarter grew 15% to $13.9 million, compared to $12.1 million in the fourth
quarter a year ago. Year-to-date revenues increased 20% in 2005 to $52.5 million
from $43.7 million for 2004. Net interest income before the provision for loan
losses grew 20% to $42.3 million for the year, and set a new quarterly record at
$11.5 million for the fourth quarter 2005, a 24% improvement over the same
quarter in 2004.
The tax equivalent net interest margin was unchanged year-over-year at
5.95%. The fourth quarter figure was 6.07%, compared to 5.60% in the same
quarter of 2004.
Executive Vice President and Chief Financial Officer, Greg Spear, discussed
net interest margin trends. "Our net interest margin surpassed expectations by
growing to 6.07% in the fourth quarter. We've kept loan re- pricing relatively
short and have managed our deposit pricing to ensure a proper balance between
growth and customer retention," he said. "In addition, we maintained a
disciplined approach to loan pricing, and by design did not tie deposit products
to an index."
Non-interest income for 2005 was $10.2 million, up 23% from $8.3 million
last year. In the fourth quarter, non-interest income was $2.4 million, compared
to $2.8 million a year ago. However, revenues increased in the areas of credit
card discounts, CRB Financial Services and CRB Mortgage Team in quarter and
annual comparisons.
In 2005, non-interest expense was $28.2 million, with $7.5 million in the
fourth quarter. The comparable figures for 2004 were $24.0 million and $6.4
million, respectively. The bank's compensation expense grew 23% year-over- year,
attributable to the addition of 23 full-time employees and an increase in the
incentive compensation due to performance-based bonuses.
One-time occurrences for 2005 included:
* 1Q05: $336,000 collection of interest income attributable to a non-
accrual loan from the prior year
* 2Q05: $561,000 sale of the mortgage servicing asset
* 3Q05: $230,000 Oregon corporate tax kicker credit
* 4Q05: $98,250 Oregon corporate tax kicker credit
The bank reported 2005 quarterly diluted earnings per share consecutively of
$0.33, $0.34, $0.35 and $0.34, for a full year diluted earnings per share of
$1.36. However, after adjusting for one-time occurrences on a pro-forma basis,
the results were $0.31, $0.31, $0.33 and $0.33, respectively, for a full year
diluted earnings per share of $1.28. Essentially, this represents earnings on a
per share basis from the company's core business units: retail banking, mortgage
lending, financial services and bankcard.
The provision for loan losses totaled $3.1 million in 2005 and $1.0 million
for the fourth quarter, compared to $2.8 million and $120,000 for respective
periods in 2004. The loan loss provision in the fourth quarter of 2005 was
higher than the same quarter of 2004 due to stronger loan growth and higher loan
charge-offs.
The bank's efficiency ratio for 2005 was 53.67%, compared to 54.86% last
year. In the fourth quarter 2005 the efficiency ratio was 53.94%, compared to
53.70% in the fourth quarter 2004. The efficiency ratio is an important measure
of productivity in the banking industry and measures overhead costs as a
percentage of total revenues.
BALANCE SHEET PERFORMANCE
The loan portfolio grew by 18% to $687.3 million at the close of 2005,
compared to $583.9 million at the end of 2004. The bank reported robust loan
growth in the fourth quarter, from strong demand for land development and
construction lending.
"We've maintained geographic diversification and continue to attract quality
bankers with established loan portfolios," said Correa. "Our new Columbia River
Capital Team, an alliance with a group of independent commercial loan brokers,
produced $8.0 million in loans for Columbia River Bank during the fourth
quarter."
Total assets grew $121.0 million, or 17%, to $836.4 million in 2005,
compared to $715.4 million at the end of 2004. Shareholders' equity increased
18% to $77.5 million, or $7.86 per outstanding share at December 31, 2005,
compared to $65.9 million, or $6.78 per outstanding share at December 31, 2004.
Tangible book value per common share at December 31, 2005, was $7.11, compared
to $5.79 at December 31, 2004. "We were pleased to increase the dividend paid to
our shareholders for the fourth quarter 2005, when the Board of Directors
approved a 10% stock dividend," said Christensen. "The 10% stock dividend was
paid to shareholders on January 16, 2006, just before the record date of our
$0.09 per share cash dividend on January 17, 2006."
Total deposits declined in the fourth quarter by $6.5 million, but increased
for the calendar year by 17% to $707.8 million at December 31, 2005. Deposits
ended December 31, 2004 at $606.9 million. Fourth quarter declines were in the
areas of non-interest bearing, savings, and time certificates of deposit. These
were offset by an increase of $10.7 million in interest- bearing demand
accounts.
ASSET QUALITY
Non-performing assets at year end were $5.7 million, representing 0.68% of
total assets, compared to $4.3 million, 0.60% of total assets a year ago. Net
charge-offs at year-end 2005 were $1.8 million, 0.26% of gross loans, compared
to $1.2 million, 0.20% of gross loans, at year-end 2004. "We will manage our
risk of loan losses by continued improvement in loan processes, training and
hiring practices," said Britt Thomas, Executive Vice President and Chief Credit
Officer.
The allowance for loan loss was $9.5 million, or 1.39% of gross loans, at
December 31, 2005, compared to $8.2 million, or 1.40% of gross loans, at
December 31, 2004.
EARNINGS TELECONFERENCE AND WEBCAST
Columbia will conduct a Teleconference and Webcast on Wednesday, January 25,
2006, at 12:00 noon Pacific Time (3:00 p.m. Eastern Time) when management, led
by Roger Christensen, will discuss results for the fourth quarter and full year
2005. To participate in the call, dial 1-866-362-4832; the conference ID is
65405599. The live Webcast can be heard by going to Columbia Bancorp's web site,
www.columbiabancorp.com, and clicking on Presentations/Webcast under the
Investor Relations section.
The call replay will be available starting two hours after the completion of
the live call until January 30, 2006. To listen to the replay dial
1-888-286-8010 and use access code 25494579. The Webcast will be archived on
Columbia Bancorp's website.
ABOUT COLUMBIA BANCORP
Columbia Bancorp (www.columbiabancorp.com) is the financial holding company
for Columbia River Bank, which operates 20 branches located in The Dalles (2),
Hood River, Bend (4), Madras, Redmond (2), Pendleton, Hermiston, McMinnville
(3), Canby and Newberg, Oregon, and in Goldendale, White Salmon and Richland,
Washington. Columbia River Bank also provides mortgage-lending services through
CRB Mortgage Team and brokerage services through CRB Financial Services Team.
FORWARD LOOKING STATEMENTS
This press release contains 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 that 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 to estimate accurately the collectibility of our loans, economic and
other factors that affect the collectibility of our loans, the impact of
competition and fluctuations in market interest rates on Columbia's revenues and
margins, management's ability to open and generate growth from new branches, 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 the report was filed with the SEC, 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.
INCOME STATEMENT
(Unaudited)
(In thousands, except per share data and ratios)
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 31,
----------------------- % ----------------------- %
2005 2004 Change 2005 2004 Change
---------- ---------- ---------- ---------- ---------- ----------
Interest income $ 14,704 $ 11,541 27% $ 53,589 $ 42,708 25%
Interest expense 3,211 2,280 41% 11,302 7,328 54%
Net interest income before
provision for loan losses 11,493 9,261 24% 42,287 35,380 20%
Provision for loan losses 1,035 120 763% 3,115 2,760 13%
Net interest income after
provision for loan losses 10,458 9,141 14% 39,172 32,620 20%
Non-interest income:
Service charges and fees 1,131 1,215 -7% 4,733 4,658 2%
Credit card discounts
and fees 118 116 2% 484 465 4%
CRB Financial Services
Team revenues 139 125 11% 613 520 18%
Mortgage servicing, net -- 2 -- 172 (533) 132%
Gain on sale of
mortgage loans 2 30 -93% 84 196 -57%
Mortgage loan
origination income 371 213 74% 1,522 928 64%
Gain / (loss) from sale
of assets -- 671 -- (39) 671 -106%
Gain from sale of
Mortgage Servicing
Asset -- -- -- 561 -- --
Gain from sale of loans -- 6 -- 3 101 -97%
Other non-interest
income 600 419 43% 2,055 1,306 57%
Total non-interest
income 2,361 2,797 -16% 10,188 8,312 23%
Non-interest expense:
Salaries and employee
benefits 4,501 3,626 24% 16,530 13,403 23%
Occupancy expense 791 756 5% 3,125 2,654 18%
Data processing 116 134 -13% 462 513 -10%
Other non-interest
expense 2,064 1,897 9% 8,044 7,401 9%
Total non-interest
expense 7,472 6,413 17% 28,161 23,971 17%
Income before provision
for income taxes 5,347 5,525 -3% 21,199 16,961 25%
Provision for income
taxes 1,958 2,020 -3% 7,529 6,226 21%
Net income $ 3,389 $ 3,505 -3% $ 13,670 $ 10,735 27%
Earnings per common share
Basic $ 0.34 $ 0.36 -4% $ 1.39 $ 1.11 26%
Diluted 0.34 0.35 -4% 1.36 1.08 26%
Cumulative dividend per
common share 0.09 0.09 -- 0.36 0.36 --
Book value per common
share $ 7.86 $ 6.78 16%
Tangible book value per
common share (1) 7.11 5.79 23%
Weighted average shares
outstanding (2)
Basic 9,836 9,703 9,803 9,675
Diluted 10,110 10,000 10,047 9,947
Actual shares
outstanding (2) 9,862 9,723 9,862 9,723
Quarter Ended Year to Date
------------------- -------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2005 2004 2005 2004
-------- -------- -------- --------
RATIOS
Interest rate yield on
interest-earning assets,
tax equivalent 7.75% 6.97% 7.53% 7.16%
Interest rate expense on
interest-bearing
liabilities 2.49% 1.91% 2.28% 1.72%
Interest rate spread, tax
equivalent 5.26% 5.06% 5.25% 5.45%
Net interest margin, tax
equivalent 6.07% 5.60% 5.95% 5.95%
Efficiency ratio (3) 53.94% 53.70% 53.67% 54.86%
Return on average assets 1.66% 1.93% 1.78% 1.64%
Return on average equity 17.63% 21.62% 19.01% 17.50%
Average equity / average
assets 9.41% 8.95% 9.36% 9.35%
(1) Total common equity, less goodwill and other intangible assets, divided by
actual shares outstanding.
(2) Prior periods have been adjusted to reflect the 10% stock dividend,
effective December 29, 2005.
(3) Non-interest expense divided by net interest income and non-interest
income.
BALANCE SHEET
(Unaudited)
(In thousands)
Year to
Dec. 31, Dec. 31, Date
2005 2004 % Change
---------- ---------- ----------
ASSETS
Cash and cash equivalents $ 87,089 $ 57,979 50%
Investment securities 36,780 45,398 -19%
Loans:
Commercial loans 101,261 93,618 8%
Agricultural loans 84,271 79,224 6%
Real estate loans 291,283 247,045 18%
Real estate loans - construction 184,332 139,415 32%
Consumer loans 13,775 14,386 -4%
Loans held for sale 4,477 2,517 78%
Other loans 7,923 7,660 3%
Total gross loans 687,322 583,865 18%
Unearned loan fees (1,513) (1,556) 3%
Allowance for loan losses (9,526) (8,184) -16%
Net loans 676,283 574,125 18%
Property and equipment, net 15,784 15,223 4%
Goodwill 7,389 7,389 --
Mortgage servicing asset, net -- 2,163 -100%
Other assets 13,029 13,096 -1%
Total assets $ 836,354 $ 715,373 17%
LIABILITIES
Deposits:
Non-interest bearing demand
deposits $ 220,450 $ 172,422 28%
Interest bearing demand deposits 278,070 211,240 32%
Savings accounts 41,128 35,926 14%
Time certificates 168,174 187,356 -10%
Total deposits 707,822 606,944 17%
Borrowings 49,815 39,014 28%
Other liabilities 1,225 3,538 -65%
Total liabilities 758,862 649,496 17%
Shareholders' equity 77,492 65,877 18%
Total liabilities and
shareholders' equity $ 836,354 $ 715,373 17%
ADDITIONAL FINANCIAL INFORMATION
(Unaudited)
(In thousands, except quantities and ratios)
Dec. 31, Dec. 31,
2005 2004
-------- --------
NON-PERFORMING ASSETS
Delinquent loans on non-accrual status $ 5,688 $ 4,217
Delinquent loans on accrual status -- --
Restructured loans 40 --
Total non-performing loans 5,728 4,217
Other real estate owned -- 100
Total non-performing assets $ 5,728 $ 4,317
Total non-performing assets / total assets 0.68% 0.60%
Quarter Ended Year to Date
------------------- -------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2005 2004 2005 2004
-------- -------- -------- --------
ALLOWANCE FOR LOAN LOSSES
Balance at beginning of period $ 9,202 $ 8,150 $ 8,184 $ 6,612
Provision for loan losses 1,035 120 3,115 2,760
Recoveries 31 42 189 103
Charge offs (742) (128) (1,962) (1,291)
Balance at end of period $ 9,526 $ 8,184 $ 9,526 $ 8,184
Allowance for loan losses / gross
loans and loans held for sale 1.39% 1.40%
Non-performing loans / allowance for
loan losses 60.13% 51.53%
Quarter Ended Year to Date
------------------- -------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2005 2004 2005 2004
-------- -------- -------- --------
FINANCIAL PERFORMANCE
Average interest-earning assets $756,707 $663,785 $715,675 $601,058
Average gross loans and loans held
for sale 667,614 582,410 623,500 544,945
Average assets 810,521 721,022 768,191 655,674
Average interest-bearing
liabilities 511,966 473,769 495,650 426,773
Average interest-bearing deposits 481,626 434,605 461,999 388,680
Average deposits 702,589 613,728 660,315 552,633
Average liabilities 734,254 656,519 696,271 594,341
Average equity 76,267 64,504 71,919 61,333
Mortgage loans produced (quantity) 181 126 799 529
SOURCE Columbia Bancorp
-0- 01/25/2006
/CONTACT: Roger L. Christensen, President and CEO, +1-541-298-6633, or
rchristensen@columbiabancorp.com, or Greg B. Spear, Executive Vice President
and CFO, +1-541-298-6612, or gspear@columbiabancorp.com, both of Columbia
Bancorp/
/Web site: http://www.columbiabancorp.com /
(CBBO)