Exhibit 99.1
ANOTHER EARNINGS RECORD FOR COLUMBIA BANCORP IN THIRD QUARTER 2006
THE DALLES, Ore., Oct. 25 /PRNewswire-FirstCall/ -- Columbia Bancorp
(Nasdaq: CBBO), the financial holding company for Columbia River Bank, reported
another earnings record in the third quarter of 2006, with $4.2 million in net
income, or $0.42 per diluted share. This is an increase of 20% over the same
period last year, when the company earned $3.5 million, or $0.35 per diluted
share.
Key third quarter analytics:
-- 3Q06 Return on Average Equity (ROE) was 19.63%
-- 3Q06 Return on Average Assets (ROA) was 1.83%
-- 3Q06 Net Interest Margin (tax equivalent) (NIM) was 6.44%
-- 3Q06 Efficiency Ratio was 56.45%
Key year-to-date analytics:
-- Return on Average Equity (ROE) was 18.75%
-- Return on Average Assets (ROA) was 1.80%
-- Net Interest Margin (tax equivalent) (NIM) was 6.47%
-- Efficiency Ratio was 54.89%
"Columbia Bancorp continues to grow and perform above banks of similar
size," said President and CEO, Roger Christensen. "We are pleased with our
financial performance and will continue to use that momentum to expand the Bank
into new markets and attract additional customers."
COMPANY BUSINESS TRENDS
The company remains focused on its five areas of emphasis in 2006:
-- Operational efficiency
-- Well-planned branch expansion
-- Balanced deposit and loan growth
-- Attractive products, services, and customer convenience
-- Loan quality
Columbia River Bank President, Craig Ortega, reports progress on the
Company's priorities. "The Bank's outstanding operational performance provides a
solid platform for our expansion effort. We are pursuing future branch sites to
augment our Portland metro footprint. By the end of 2006, we expect to have
expanded our Portland area loan production office into a limited service branch
located in Lake Oswego, Oregon."
Executive Vice President and Chief Banking Officer, Shane Correa stated,
"Our Columbia Gorge and Columbia Basin Regions have shown strong deposit growth,
despite the nationwide trend of flat deposit growth in community banks."
Correa credited the Bank's year-to-date loan growth of 14% primarily due to
increases in real estate and construction loans, mainly from the High Desert
region. He anticipated, however, that fourth quarter growth could subside due to
historical seasonal patterns.
INCOME STATEMENT PERFORMANCE
Third quarter revenue (net interest income plus non-interest income) grew to
$16.5 million, contributing to a year-to-date revenue figure of $46.0 million.
Revenue for the third quarter 2005 was $13.6 million, with a year- to-date total
of $38.6 million. "Our loan yields have historically exceeded our peer group,
and we believe our deposit pricing structure is competitive," said Greg Spear,
Executive Vice President and Chief Financial Officer.
Net interest income, before the provision of loan losses, continued its
climb, ending the quarter at $13.9 million, a 26% increase over last year's
third quarter total of $11.1 million. Year-to-date net interest income was $38.6
million, a 25% improvement over the 2005 third quarter year-to-date total of
$30.8 million.
The tax equivalent net interest margin continues to outperform both the
company's expectations and its peer group of banks $500 million to $1 billion in
asset size. The third quarter's net interest margin was 6.44%, and 6.47%
year-to-date. This compares with 6.01% in the third quarter of 2005, and 5.91%
year-to-date last year.
In the non-interest income category, the company's third quarter total was
$2.6 million, an increase of 4% over last year's third quarter $2.5 million
total. Year-to-date figures were $7.3 million for the nine months ended
September 30, 2006, and $7.8 million for the same period of 2005, a decrease of
6%.
Total non-interest expense for the company was $9.3 million at September 30,
2006, compared to $7.1 million last year, an increase of 31%. Year-to- date, the
Bank's non-interest expense totaled $25.2 million, a 22% growth over last year's
year-to-date total of $20.7 million. Spear attributes the growth to increased
compensation, leasing and depreciation costs associated with recent expansion,
as well as increased incentive compensation accrual due to strong performance.
We expect growth in non-interest expense to level off in the fourth quarter of
2006.
The Bank's efficiency ratio for the third quarter was 56.45%, compared to
52.50% in the third quarter 2005. Year-to-date efficiency ratio at September 30,
2006, was 54.89%, compared to 53.57% at September 30, 2005. The increase in the
ratio is a result of the increase in non-interest expense as mentioned above.
Since these expenses are expected to flatten in the fourth quarter, further
increase in the efficiency ratio is not anticipated. The efficiency ratio, an
important measure of productivity in the banking industry, is calculated by
dividing non-interest expense by net interest income and non- interest income,
which measures overhead costs as a percentage of total revenues.
BALANCE SHEET PERFORMANCE
The company's loan portfolio continued its strong growth pace, with $784.2
million in total gross loans, a 19% increase over $659.4 million at the end of
the third quarter last year. Year-to-date, the Bank has enjoyed a 14% growth in
gross loans.
Total deposits at September 30, 2006, were $813.0 million, 14% higher than
the $714.5 million total at September 30, 2005. Year-to-date, total deposits
have grown by 15%.
Shareholders' equity was $87.4 million, or $8.78 per outstanding share at
the end of the third quarter, up from $74.6 million, or $7.59 per outstanding
share, for the like period last year, a 17% increase. Year-to-date,
shareholders' equity has grown by 13%. Tangible book value stands at $8.04 per
common share, compared to $6.84 per common share at the end of the third quarter
2005.
ASSET QUALITY
Non-performing assets at September 30, 2006, were $4.9 million, or 0.50% of
total assets, compared to $1.4 million, or 0.17% of total assets, at September
30, 2005. The increase in non-performing assets is due to one large account in
the aggregate amount of $3.5 million which was placed on non- accrual during the
third quarter. Net charge-offs during the third quarter were $85,000, or 0.01%
of gross loans, at September 30, 2006, compared to $709,000, or 0.11% of gross
loans, during the third quarter of 2005.
Allowance for credit losses was $10.7 million, or 1.36% of gross loans, at
September 30, 2006, compared to $9.2 million, or 1.40% of gross loans, at
September 30, 2005.
EARNINGS TELECONFERENCE AND WEBCAST
Columbia will conduct a Teleconference and Webcast on Wednesday, October 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 third quarter 2006. To
participate in the call, dial 1-800-901-5218; the conference ID is 77719618. 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 October 30, 2006. To listen to the replay dial 1-888-
286-8010 and use access code 12619794. A text version 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 (3), Madras, Redmond (2), Pendleton, Hermiston, McMinnville,
Canby and Newberg, Oregon, and in Goldendale, White Salmon, Sunnyside, Yakima,
Pasco and Richland, Washington. In addition, Columbia River Bank has three
limited service branches located in retirement homes, one in Bend, Oregon and
two in McMinnville, Oregon. To supplement its community banking services,
Columbia River Bank also provides mortgage-lending services through Columbia
River Bank 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 Nine Months Ended
September 30, September 30,
------------------- % ------------------- %
2006 2005 Change 2006 2005 Change
-------- -------- -------- -------- -------- --------
Interest income $ 18,919 $ 13,998 35% $ 51,111 $ 38,886 31%
Interest expense 5,007 2,937 70% 12,468 8,091 54%
Net interest income before provision
for loan losses 13,912 11,061 26% 38,643 30,795 25%
Provision for loan losses 330 1,230 -73% 2,150 2,080 3%
Net interest income after provision for
loan losses 13,582 9,831 38% 36,493 28,715 27%
Non-interest income:
Service charges and fees 935 1,239 -25% 3,257 3,602 -10%
Mortgage loan origination income 935 765 22% 2,269 2,111 7%
Financial services revenue 207 174 19% 649 474 37%
Credit card discounts and fees 136 136 0% 363 366 -1%
Gain from sale of MSA - - - - 561 -
Other non-interest income 423 226 87% 807 713 13%
Total non-interest income 2,636 2,540 4% 7,345 7,827 -6%
Non-interest expense:
Salaries and employee benefits 5,951 4,298 38% 15,343 12,029 28%
Occupancy expense 1,037 774 34% 2,821 2,334 21%
Other non-interest expense 2,353 2,069 14% 7,080 6,326 12%
Total non-interest expense 9,341 7,141 31% 25,244 20,689 22%
Income before provision for income taxes 6,877 5,230 31% 18,594 15,853 17%
Provision for income taxes 2,634 1,704 55% 7,022 5,572 26%
Net income $ 4,243 $ 3,526 20% $ 11,572 $ 10,281 13%
Earnings per common share (1)
Basic $ 0.43 $ 0.36 19% $ 1.17 $ 1.05 12%
Diluted 0.42 0.35 19% 1.14 1.02 12%
Cumulative dividend per common share 0.10 0.09 11% 0.29 0.27 7%
Book value per common share (1) $ 8.78 $ 7.59 16%
Tangible book value per common share (1) (2) 8.04 6.84 18%
Weighted average shares outstanding (1)
Basic 9,902 9,825 9,873 9,792
Diluted 10,180 10,084 10,149 10,040
Actual shares outstanding (1) 9,957 9,830 9,957 9,830
Quarter Ended Year to Date
---------------------- ----------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
RATIOS 2006 2005 2006 2005
- --------------------------------------- --------- --------- --------- ---------
Interest rate yield on interest-earning
assets, tax equivalent 8.75% 7.59% 8.55% 7.45%
Interest rate expense on
interest-bearing liabilities 3.26% 2.31% 2.98% 2.21%
Interest rate spread, tax equivalent 5.49% 5.28% 5.57% 5.24%
Net interest margin, tax equivalent 6.44% 6.01% 6.47% 5.91%
Efficiency ratio (3) 56.45% 52.50% 54.89% 53.57%
Return on average assets 1.83% 1.78% 1.80% 1.82%
Return on average equity 19.63% 19.14% 18.75% 19.51%
Average equity / average assets 9.30% 9.27% 9.59% 9.35%
(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
Sept. 30, Sept. 30, Year Dec. 31, Date
2006 2005 %Change 2005 %Change
--------- --------- --------- --------- ---------
ASSETS
Cash and cash equivalents $ 124,222 $ 97,445 27% $ 87,089 43%
Investment securities 39,447 38,973 1% 36,780 7%
Loans:
Commercial loans 120,990 101,914 19% 101,261 19%
Agricultural loans 95,584 82,543 16% 84,271 13%
Real estate loans 333,758 293,056 14% 291,283 15%
Real estate loans - construction 206,327 152,931 35% 184,332 12%
Consumer loans 12,701 13,386 -5% 13,775 -8%
Loans held for sale 6,207 7,254 -14% 5,879 6%
Other loans 8,636 8,321 4% 7,923 9%
Total gross loans 784,203 659,405 19% 688,724 14%
Unearned loan fees (1,504) (1,716) 12% (1,513) 1%
Allowance for loan losses (9,916) (9,202) -8% (9,526) -4%
Net loans 772,783 648,487 19% 677,685 14%
Property and equipment, net 18,087 14,870 22% 15,784 15%
Goodwill 7,389 7,389 - 7,389 -
Other assets 20,515 13,884 48% 16,512 24%
Total assets $ 982,443 $ 821,048 20% $ 841,239 17%
LIABILITIES
Deposits:
Non-interest bearing demand deposits $ 233,942 $ 228,144 3% $ 220,450 6%
Interest bearing demand deposits 275,811 267,321 3% 278,070 -1%
Savings accounts 38,745 42,379 -9% 41,128 -6%
Time certificates 264,501 176,679 50% 168,174 57%
Total deposits 812,999 714,523 14% 707,822 15%
Borrowings 74,713 30,028 149% 49,815 50%
Other liabilities 7,307 1,859 293% 6,110 20%
Total liabilities 895,019 746,410 20% 763,747 17%
Shareholders' equity 87,424 74,638 17% 77,492 13%
Total liabilities and
shareholders' equity $ 982,443 $ 821,048 20% $ 841,239 17%
ADDITIONAL FINANCIAL INFORMATION
(Unaudited)
(In thousands, except quantities and ratios)
September 30, September 30,
NON-PERFORMING ASSETS 2006 2005
- ------------------------------------------- ------------- -------------
Delinquent loans on non-accrual status $ 4,897 $ 1,345
Delinquent loans on accrual status - -
Restructured loans 28 43
Total non-performing loans 4,925 1,388
Other real estate owned - -
Total non-performing assets $ 4,925 $ 1,388
Total non-performing assets / total assets 0.50% 0.17%
Quarter Ended Year to Date
----------------------- ----------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
ALLOWANCE FOR CREDIT LOSSES 2006 2005 2006 2005
- --------------------------------- --------- --------- --------- ---------
Allowance for loan losses,
beginning of period $ 9,671 $ 8,681 $ 9,526 $ 8,184
Provision for loan losses 330 1,230 2,150 2,080
Recoveries 123 50 218 158
Charge offs (208) (759) (1,288) (1,220)
Reclassify liability for unfunded
loan commitments - - (690) -
Allowance for loan losses, end of
period 9,916 9,202 9,916 9,202
Liability for unfunded loan
commitments 743 - 743 -
Allowance for credit losses $ 10,659 $ 9,202 $ 10,659 $ 9,202
Allowance for loan losses / gross
loans and loans held for sale 1.26% 1.40%
Allowance for credit losses /
gross loans and loans held for
sale 1.36% 1.40%
Non-performing loans / allowance
for loan losses 49.67% 15.09%
Quarter Ended Year to Date
--------------------- ---------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30
FINANCIAL PERFORMANCE 2006 2005 2006 2005
- ------------------------------------ --------- --------- --------- ---------
Average interest-earning assets $ 860,979 $ 735,589 $ 802,910 $ 701,848
Average gross loans and
loans held for sale 787,128 639,539 727,526 608,633
Average assets 921,762 787,763 860,378 753,925
Average interest-bearing liabilities 609,634 504,569 558,994 490,152
Average interest-bearing deposits 569,993 473,381 523,118 455,384
Average deposits 793,194 680,893 738,484 646,069
Average liabilities 836,021 714,881 777,883 683,455
Average equity 85,742 73,081 82,494 70,470
SOURCE Columbia Bancorp
-0- 10/25/2006
/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 /