Exhibit 99.1
COLUMBIA BANCORP REPORTS STRONG GROWTH IN SECOND QUARTER 2006
THE DALLES, Ore., July 26 /PRNewswire-FirstCall/ -- Columbia Bancorp
(Nasdaq: CBBO), the financial holding company for Columbia River Bank, reported
another strong quarter of balance sheet growth, including an increase of $96.0
million in total assets and another pronounced increase in net interest margin.
Key second quarter analytics:
-- Return on Equity (ROE) was 17.57%
-- Return on Assets (ROA) was 1.72%
-- Net Interest Margin (tax equivalent) (NIM) was 6.60%
-- Efficiency Ratio was 53.60%
Key year-to-date analytics:
-- Total Assets were $952.8 million, a YTD growth rate of 13%
-- Gross Loans were $766.6 million, a YTD growth rate of 11%
-- Deposits were $777.3 million, a YTD growth rate of 10%
-- Return on Equity (ROE) was 18.28%
-- Return on Assets (ROA) was 1.78%
-- Net Interest Margin (tax equivalent) (NIM) was 6.49%
-- Efficiency Ratio was 54.02%
Second quarter net income for the Company was $3.6 million, or $0.36 per
diluted share, compared to $3.4 million, or $0.34 per diluted share in the
second quarter of 2005, a 5% increase in net income.
COMPANY BUSINESS TRENDS
In late 2005, the Company established five areas of focus for 2006:
-- Operational efficiency
-- Well-planned branch expansion
-- Balanced deposit and loan growth
-- Attractive products and services, and customer convenience
-- Loan quality
Columbia Bancorp President and CEO, Roger Christensen, said while the
Company is making progress on all fronts, the branch expansion work continues to
pay rewards. "Our Richland, Pasco, Yakima and Sunnyside, Washington, branches
are all contributing to our company," he said.
Christensen believes the Bank's increased brand awareness and corporate
reputation has created opportunities for branch expansion. "We are looking
intently at new markets that will bring us closer to additional metropolitan
areas that surround our current market area," he said. "We believe moving into
those markets will contribute to loan and deposit growth and enable us to
surpass the $1.0 billion in assets milestone."
While maintaining its investments in infrastructure and technologies as a
way to focus on customer convenience and efficiency, the Company continues to
see growth in the loan portfolio and retail deposits. "In addition to quality
products and services, our objective is to ensure our customer's experience will
help us strengthen our relationships," said Shane Correa, Executive Vice
President and Chief Banking Officer.
INCOME STATEMENT PERFORMANCE
In the second quarter, revenue (net interest income plus non-interest
income) grew to $15.2 million, contributing to a year-to-date figure of $29.4
million. Revenue for the second quarter 2005 was $13.1 million, with a year-
to-date figure of $25.0 million. "As the Federal Reserve Board of Governors
continues increasing interest rates, we benefit from assets re-pricing more
quickly than deposits," said Greg Spear, Executive Vice President and Chief
Financial Officer. "During the last several years we have positioned our balance
sheet to be asset sensitive, meaning that the assets re-price, or adjust to
market interest rates, more frequently than the liabilities."
Net interest income before the provision for loan losses set another high
mark by growing to $12.8 million, an increase of 27% over last year's second
quarter total of $10.1 million. The year-to-date net interest income figure also
increased markedly, to $24.7 million at June 30, 2006, up from $19.7 million a
year ago, a 25% increase.
The tax equivalent net interest margin for the second quarter was 6.60%,
another significant increase and well ahead of the 5.90% figure for the same
period in 2005. Year-to-date net interest margin for 2006 was 6.49%, also well
ahead of the 5.86% figure from the same period a year ago. "Our loan and deposit
pricing strategy takes into account the seasonal growth patterns between
deposits and loans," Spear said. "Therefore, we hold the same pricing discipline
for deposits as we do loans, and utilize wholesale liabilities to fund interim
gaps in the balance sheet."
Non-interest income for the second quarter was $2.4 million, a decrease of
20% over last year's second quarter total of $3.0 million. This decrease is due
to a one-time gain in the second quarter of 2005, from the sale of the Bank's
mortgage servicing asset. On a pro forma basis, second quarter 2005 non-interest
income would have been $2.4 million. Year-to-date figures for the end of the
second quarters of 2006 and 2005 were $4.7 million and $5.3 million,
respectively.
Total non-interest expense was $8.1 million, a 16% increase over the second
quarter 2005 figure of $7.0 million. Year-to-date, total non-interest expense
was $15.9 million, up 17% from last year's figure of $13.5 million. Expense
growth for the quarter is due mainly to increases in compensation and recent de
novo branch expansion activity.
The Bank's efficiency ratio for the second quarter was 53.60%, compared to
54.92% in the second quarter 2005. Year-to-date efficiency ratio at June 30,
2006 was 54.02%, compared to 54.15% a year ago. 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
Consistent with seasonal trends, the Company's loan portfolio grew at a
strong pace in the second quarter, with $766.6 million in gross loans, a 22%
increase over the $626.4 million total reported at mid-year 2005. Total assets
as of June 30, 2006, were $952.8 million, a gain of 22% over the second quarter
2005 total of $778.9 million. The Bank experienced growth across all markets
with significant contributions coming from its new markets in Yakima, Sunnyside
and the Tri-Cities area of Washington.
Total deposits at June 30, 2006 were $777.3 million, compared to $668.9
million at June 30, 2005, a gain of 16%. Some of the growth in the second
quarter was supplemented with wholesale liabilities collected outside of our
regional branch network. Brokered certificates of deposit accounted for $32.0
million in deposit growth.
Shareholders' equity now stands at $83.4 million, or $8.43 per outstanding
share at June 30, 2006, up from $71.8 million, or $7.32 per outstanding share,
for the second quarter 2005. Tangible book value stands at $7.68 as of June 30,
2006, compared to $6.57 as of June 30, 2005.
ASSET QUALITY
Asset quality remains consistent with our FDIC peer group with assets
between $500 million to $1 billion. Non-performing assets at June 30, 2006 were
$3.1 million, or 0.32% of total assets, compared to an unusually low $394,000,
or 0.05% of total assets, at June 30, 2005. Net charge-offs during the second
quarter were $465,000, or 0.06% of gross loans, at June 30, 2006, compared to
$218,000, or 0.03% of gross loans, during the second quarter 2005.
Allowance for loan loss was $9.7 million, or 1.26% of gross loans, at June
30, 2006, compared to $8.7 million, or 1.39% of gross loans, at June 30, 2005.
EARNINGS TELECONFERENCE AND WEBCAST
Columbia will conduct a Teleconference and Webcast on Wednesday, July 26,
2006, at 12:00 noon Pacific Time (3:00 p.m. Eastern Time) when management, led
by Roger Christensen, will discuss results for the second quarter 2006. To
participate in the call, dial 1-800-510-9691 the conference ID is 20414455. 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 August 1, 2006. To listen to the replay dial 1-888-286-8010
and use access code 46449907. 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 23 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, Richland,
Pasco, Yakima and Sunnyside, 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 potential for losses inherent in our loan
portfolio, 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, and our ability to open and generate growth
from new branches and to expand in new markets as we expect. Some of the 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 report 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 Six Months Ended
June 30, June 30,
--------------------------- % --------------------------- %
2006 2005 Change 2006 2005 Change
------------ ------------ ------------ ------------ ------------ ------------
Interest income $ 16,634 $ 12,715 31% $ 32,192 $ 24,888 29%
Interest expense 3,861 2,643 46% 7,461 5,154 45%
Net interest income before
provision for loan losses 12,773 10,072 27% 24,731 19,734 25%
Provision for loan losses 1,270 650 95% 1,820 850 114%
Net interest income
after provision for
loan losses 11,503 9,422 22% 22,911 18,884 21%
Non-interest income:
Service charges and fees 1,192 1,190 0% 2,322 2,363 -2%
Mortgage loan
origination income 696 724 -4% 1,334 1,345 -1%
Financial services
revenue 243 156 56% 442 300 47%
Credit card discounts
and fees 121 117 3% 227 230 -1%
Gain from sale of MSA -- 561 -- -- 561 --
Other non-interest
income 138 236 -42% 384 488 -21%
Total non-interest
income 2,390 2,984 -20% 4,709 5,287 -11%
Non-interest expense:
Salaries and employee
benefits 4,815 4,044 19% 9,392 7,731 21%
Occupancy expense 918 763 20% 1,784 1,560 14%
Other non-interest
expense 2,394 2,170 10% 4,727 4,257 11%
Total non-interest
expense 8,127 6,977 16% 15,903 13,548 17%
Income before provision
for income taxes 5,766 5,429 6% 11,717 10,623 10%
Provision for income taxes 2,159 1,987 9% 4,388 3,868 13%
Net income $ 3,607 $ 3,442 5% $ 7,329 $ 6,755 8%
Earnings per common share
Basic $ 0.36 $ 0.35 4% $ 0.74 $ 0.69 8%
Diluted 0.36 0.34 4% 0.72 0.67 8%
Cumulative dividend per
common share 0.10 0.09 11% 0.19 0.18 6%
Book value per common
share (1) $ 8.43 $ 7.32 15%
Tangible book value per
common share (1) (2) 7.68 6.57 17%
Weighted average shares
outstanding (1)
Basic 9,888 9,796 9,871 9,776
Diluted 10,156 10,048 10,132 10,022
Actual shares
outstanding (1) 9,901 9,815 9,901 9,815
Quarter Ended Year to Date
--------------------------- ---------------------------
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
------------ ------------ ------------ ------------
RATIOS
Interest rate yield on interest-
earning assets,
tax equivalent 8.59% 7.44% 8.43% 7.38%
Interest rate expense on interest-
bearing
liabilities 2.89% 2.21% 2.82% 2.15%
Interest rate spread, tax equivalent 5.69% 5.23% 5.61% 5.22%
Net interest margin, tax equivalent 6.60% 5.90% 6.49% 5.86%
Efficiency ratio (3) 53.60% 54.92% 54.02% 54.15%
Return on average assets 1.72% 1.86% 1.78% 1.85%
Return on average equity 17.57% 19.51% 18.28% 19.69%
Average equity / average assets 9.81% 9.54% 9.75% 9.39%
(1) Prior periods have been adjusted to reflect the 10% stock dividend,
effective December 29, 2005.
(2) Total common equity, less goodwill and other intangible assets, divided by
actual shares outstanding.
(3) Non-interest expense divided by net interest income and non-interest
income.
BALANCE SHEET
(Unaudited)
(In thousands)
Year Year
over to
June 30, June 30, Year December 31, Date
2006 2005 %Change 2005 %Change
------------ ------------ ------------ ------------ ------------
ASSETS
Cash and cash equivalents $ 117,051 $ 87,655 34% $ 87,089 34%
Investment securities 36,825 39,406 -7% 36,780 0%
Loans:
Commercial loans 117,563 97,956 20% 101,261 16%
Agricultural loans 93,222 88,506 5% 84,271 11%
Real estate loans 327,942 280,880 17% 291,283 13%
Real estate loans -
construction 199,707 130,007 54% 184,332 8%
Consumer loans 13,466 13,576 -1% 13,775 -2%
Loans held for sale 6,159 7,479 -18% 5,879 5%
Other loans 8,540 8,045 6% 7,923 8%
Total gross loans 766,599 626,449 22% 688,724 11%
Unearned loan fees (1,806) (1,542) -17% (1,513) -19%
Allowance for loan losses (9,671) (8,681) -11% (9,526) -2%
Net loans 755,122 616,226 23% 677,685 11%
Property and equipment, net 17,934 15,146 18% 15,784 14%
Goodwill 7,389 7,389 -- 7,389 --
Other assets 18,432 13,116 41% 16,512 12%
Total assets $ 952,753 $ 778,938 22% $ 841,239 13%
LIABILITIES
Deposits:
Non-interest bearing demand
deposits $ 236,075 $ 205,378 15% $ 220,450 7%
Interest bearing demand
deposits 282,918 245,371 15% 278,070 2%
Savings accounts 40,651 39,448 3% 41,128 -1%
Time certificates 217,679 178,693 22% 168,174 29%
Total deposits 777,323 668,890 16% 707,822 10%
Borrowings 81,589 32,040 155% 49,815 64%
Other liabilities 10,403 6,171 69% 6,110 70%
Total liabilities 869,315 707,101 23% 763,747 14%
Shareholders' equity 83,438 71,837 16% 77,492 8%
Total liabilities and
shareholders' equity $ 952,753 $ 778,938 22% $ 841,239 13%
ADDITIONAL FINANCIAL INFORMATION
(Unaudited)
(In thousands, except quantities and ratios)
June 30, June 30,
2006 2005
------------ ------------
NON-PERFORMING ASSETS
Delinquent loans on non-accrual
status $ 3,032 $ 347
Delinquent loans on accrual status -- --
Restructured loans 32 47
Total non-performing loans 3,064 394
Other real estate owned -- --
Total non-performing assets $ 3,064 $ 394
Total non-performing assets / total
assets 0.32% 0.05%
Quarter Ended Year to Date
--------------------------- ---------------------------
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
------------ ------------ ------------ ------------
ALLOWANCE FOR LOAN LOSSES
Allowance, beginning of period $ 8,866 $ 8,249 $ 9,526 $ 8,184
Provision for loan losses 1,270 650 1,820 850
Recoveries 45 91 95 108
Charge offs (510) (309) (1,080) (461)
Reclassify liability for unfunded
loan commitments -- -- (690) --
Allowance, end of period 9,671 8,681 9,671 8,681
Liability for unfunded loan
commitments 690 -- 690 --
Allowance for credit losses $ 10,361 $ 8,681 $ 10,361 $ 8,681
Allowance for loan losses / gross
loans and loans held for sale 1.26% 1.39%
Allowance for credit losses /
gross loans and loans held for
sale 1.35% 1.39%
Non-performing loans / allowance
for loan losses 31.68% 4.54%
Quarter Ended Year to Date
--------------------------- ---------------------------
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
------------ ------------ ------------ ------------
FINANCIAL PERFORMANCE
Average interest-earning assets $ 780,516 $ 689,687 $ 773,368 $ 684,698
Average gross loans and
loans held for sale 708,005 607,280 697,231 592,925
Average assets 839,072 742,166 829,177 736,625
Average interest-bearing
liabilities 535,302 479,310 533,255 482,824
Average interest-bearing deposits 497,356 444,277 499,292 446,237
Average deposits 713,967 634,212 710,676 628,368
Average liabilities 756,720 671,386 748,306 667,460
Average equity 82,352 70,781 80,871 69,164
SOURCE Columbia Bancorp
-0- 07/26/2006
/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/
/Web site: http://www.columbiabancorp.com/