Columbia Commercial Bancorp Reports Fourth Quarter and Full Year 2011 Results
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HILLSBORO, OR, Jan 27, 2012 (MARKETWIRE via COMTEX) –
Columbia Commercial Bancorp
/quotes/zigman/372738 CLBC
+28.79%
, a single bank holding
company for Columbia Community Bank (the Bank), reports a net profit
of $160,000, or $0.05 per diluted share for the fourth quarter of
2011 compared to a net profit of $121,000, or $0.04 per diluted share
for the third quarter. For the full year ended December 31, 2011, net
income was $184,000, or $0.05 per diluted share compared to a net
loss of $1.1 million, or ($0.36) per diluted share for the same
twelve month period in 2010.
“The Company is very pleased with all the recent trends which include
net profits for three of the past four quarters, a year-to-date
profit for 2011 after two years of losses, significantly reduced
exposure to the residential construction market, reduced
non-performing assets, reduced reliance on non-core funding,
increased capital ratios, increasing net interest income and margin,
and reduced loan loss provisions and other troubled asset related
expenses,” states the Company’s President and CEO, Rick A. Roby. And
he continues, “And we are confident these trends are not merely short
term in nature, but that they are all signs of a strengthening
Company leading into 2012 and beyond.”
Assets
Total assets as of December 31, 2011 at $352.6 million were down
$11.7 million, or 3.2%, over the quarter as the Company utilized low
yielding excess cash and securities to retire $10.1 million in
brokered certificates and other non-local deposits while also
reducing outstanding OREO by almost $2.0 million. When compared to
total assets of $358.5 million as of December 31, 2010, assets are
down $5.9 million, or 1.6%, over this past year as the Company
decreased loans by $6.5 million and outstanding OREO by $2.6 million
while increasing its liquidity via cash and investments by $3.4
million. The Company’s Chief Financial Officer, Bob Ekblad, states,
“And moving forward into 2012 we will continue to reduce some of the
Bank’s low-yielding excess liquidity and reduce OREO and other
non-performing assets to pay down even more high cost non-core
deposits and debt which will of course benefit the Company’s earnings
in 2012 as it did throughout 2011.”
Total loans at $238.4 million as of December 31, 2011 are down $1.6
million over the past quarter and are down $6.5 million, or 2.6%,
when compared to the $244.9 million outstanding as of December 31,
2010. “The reduction in overall loans is the result of our continued
strategy to reduce residential construction and land development
loans,” states Fred Johnson, the Company’s Chief Credit Officer. As
of December 31, 2011 construction and land development loans totaled
$34.4 million, or 14.4% of the Bank’s total loans which is a
reduction of $10.1 million over the past quarter as they totaled
$44.5 million at September 30, 2011, and is a reduction of $14.6
million, or 29.8%, over the year when compared to the $49.0 million,
or 20.0% of total loans as of December 31, 2010. And Mr. Johnson
adds, “And the Bank continues to be successful with its additional
goal of growing the other segments of its loan portfolio as together
they grew by almost $8.1 million, or 4.1% over the year.”
The Bank had $388,000 in net charge-offs over the quarter reducing
the allowance for loan losses to $7.1 million, or 2.97% of loans as
of December 31, 2011 compared to $7.5 million, or 3.11% of loans as
of September 30, 2011. During the year the Bank had $2.4 million in
charge-offs, $588,000 in recoveries and a $1.4 million loan loss
provision expense which accounts for the change from the $7.5 million
balance in the allowance for loan losses, or 3.07% of loans, as of
December 31, 2010. Net loan charge-offs of $1.8 million for 2011 are
down considerably when compared to the $3.9 million for 2010 and the
$4.7 million in net charge-offs during 2009.
As of December 31, 2011, the Bank had no loans that were past due
over 30 days and still accruing interest.
Non-performing assets consist of loans on nonaccrual status and other
real estate owned (OREO) which in aggregate were $19.0 million as of
December 31, 2011 compared to $24.4 million as of September 30, 2011
and $22.1 million the prior year-end. The $5.4 million reduction in
non-performing assets over this past quarter relate to a $1.9 million
reduction in OREO from a variety of property sales and a $3.5 million
reduction from pay downs in non-performing construction loans.
“Despite a difficult, but somewhat improving real estate market, the
Bank has and continues to actively and aggressively work through its
non-performing assets which are almost exclusively derived from
problematic construction and land development loans,” states Mr.
Johnson. During 2011, the Bank reduced OREO by $4.9 million through
the full or partial sales within 15 different projects at a net gain
of $114,000. Within the $8.4 million OREO balance as of December 31,
2011, the Bank has 15 various projects ranging in value from $31,000
for a single lot to $4.8 million for a significant development in
southern Oregon.
Deposits
“The Bank continues to reduce its reliance on brokered and
nontraditional out-of-area deposits while expanding and penetrating
deeper into its local core deposit base,” stated Mr. Ekblad. Total
deposits for the Bank at $239.1 million as of December 31, 2011 are
down 4.7% or $11.9 million for the fourth quarter and 5.4% or $13.7
million for the year, but during the fourth quarter the Bank reduced
its brokered and non-traditional out-of-area deposits by $10.1
million and year-to-date they have been reduced by over $25.3
million. “And while this reduction in non-core deposits is causing
overall total deposits to go down, this shouldn’t overshadow our
successes with local deposits which grew by almost $12.0 million over
the past year,” continued Mr. Ekblad. As of December 31, 2011, the
Bank had $15.0 million in brokered deposits compared to $27.7 million
as of December 31, 2010 and $57.1 million as of December 31, 2009.
The Bank has $9.9 million in brokered deposits that mature throughout
2012 which will not be renewed.
Earnings
“The Company’s construction loan portfolio continues to shrink and
after beginning to see some recent signs of stabilization in our
local real estate markets and therefore with our construction related
loans, the Company did not take any loan loss provision expense for
the past two quarters. This has led not only to positive returns for
these two quarters, but also for the year,” states Mr. Roby. The
Company is reporting net income of $160,000 for the most recent
quarter ended December 31, 2011 compared to $121,000 for the prior
quarter ended September 30, 2011. And for the full-year ended
December 31, 2011, the Company is reporting a net income of $184,000
after a loan loss provision expense of $1.4 million compared to the
full-year 2010 when the Company reported a net loss of $1.1 million
after $2.5 million in loan loss provision expense.
Net interest income has been very consistent for the past two
quarters at $2.4 million each and at $9.4 million for the full year
of 2011, it is $579,000, or 6.6% above the $8.8 million for 2010.
“Interest income on earning assets is down for the quarter and this
year as outstanding loans are down modestly and earnings on
investments and the Bank’s excess liquidity are negligible. However,
this has been more than offset by the reduction in interest expense
brought on by the decrease in higher costing brokered deposits and
other deposit repricing opportunities,” states Mr. Ekblad. Net
interest margin for fourth quarter 2011 at 3.08% is very consistent
with the 3.09% for the prior third quarter of 2011 and at 3.08% for
the full year, it is 31 basis points higher than in 2010 when it was
2.77%.
Non-interest income was consistent for the fourth and third quarter
of 2011 at $155,000 each and up by $146,000, or 29.3% for the full
year 2011 where it was $645,000 compared to $499,000 for 2010. This
change in non-interest income comes primarily from increased rental
income on the Bank’s OREO properties. Non-interest expense of $2.2
million for the fourth quarter of 2011 is also relatively consistent
with the prior third quarter while for the full year of 2011
non-interest expense at $8.8 million is $146,000, or 1.7%, higher
than the $8.7 million for 2010. Expenses related to troubled assets
which include legal, foreclosure, and OREO expenses were $210,000 for
the fourth quarter compared to $336,000 in the third quarter and for
the entire 2011 year were just over $1.0 million compared to $792,000
for 2010. As evidenced during this most recent quarter, these
expenses are expected to be down considerably in 2012 as the Bank
reduces its level of non-performing assets.
Capital
The Bank’s capital ratios grew during 2011 from increased retained
profits and the reduction of assets but this was somewhat mitigated
by an increase in the disallowed deferred tax asset for regulatory
capital calculation purposes. The Bank’s leverage ratio and total
risk-based capital ratios were 7.63% and 11.42% as of December 31,
2011 compared to 7.53% and 11.19% as of December 31, 2010,
respectively. The Bank’s capital ratios continue to exceed those
required to be considered “well-capitalized” according to the
standard regulatory guidelines.
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 deliver loan and deposit product solutions through
experienced and professional bankers to businesses, nonprofits,
professionals, and individuals throughout Washington County and the
greater Portland metropolitan area. The Bank has been 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.
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 markets; and the
impacts of new government initiatives 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.
Columbia Commercial Bancorp
Consolidated Balance Sheet
Unaudited
(amounts in 000′s, except per share data and ratios)
% Change
2011 September
December 31, vs. 30, % Change
2011 2010 2010 2011 Quarter
———- ———- —— ———- ——-
ASSETS
Cash & due from banks $ 25,982 $ 18,743 38.6% $ 35,120 -26.0%
Federal funds sold 10,000 9,995 0.1% 5,000 100.0%
Investment securities
– available for sale 58,417 62,261 -6.2% 61,992 -5.8%
Investments – Other 2,307 2,401 -3.9% 2,307 0.0%
Gross loans 238,403 244,868 -2.6% 239,968 -0.7%
Allowance for loan
losses (7,083) (7,525) -5.9% (7,471) -5.2%
———- ———- —— ———- ——-
Net loans 231,320 237,343 -2.5% 232,497 -0.5%
Other real estate
owned 8,408 11,051 -23.9% 10,370 -18.9%
Other assets 16,174 16,704 -3.2% 17,055 -5.2%
———- ———- —— ———- ——-
Total Assets $ 352,608 $ 358,498 -1.6% $ 364,341 -3.2%
========== ========== ====== ========== =======
LIABILITIES
Deposits $ 239,083 $ 252,816 -5.4% $ 250,940 -4.7%
Repurchase agreements 26,722 19,893 34.3% 26,692 0.1%
Federal funds
purchased – – 0.0% – 0.0%
FHLB borrowings 52,635 52,635 0.0% 52,635 0.0%
Other borrowings 4,513 4,453 1.3% 4,457 1.3%
Junior subordinated
debentures 8,248 8,248 0.0% 8,248 0.0%
Other liabilities 3,433 3,110 10.4% 3,560 -3.6%
———- ———- —— ———- ——-
Total Liabilities 334,634 341,155 -1.9% 346,532 -3.4%
STOCKHOLDERS’ EQUITY 17,974 17,343 3.6% 17,809 0.9%
———- ———- —— ———- ——-
Total Liabilities
and Stockholders’
Equity $ 352,608 $ 358,498 -1.6% $ 364,341 -3.2%
========== ========== ====== ========== =======
Shares outstanding at
end-of-period 3,151,581 3,145,081 3,151,581
Book value per share $ 5.70 $ 5.51 $ 5.65
Allowance for loan
losses to total loans 2.97% 3.07% 3.11%
Non-performing assets
(non-accrual loans &
OREO) $ 18,984 $ 22,134 $ 24,446
Bank Tier 1 leverage
ratio (5% minimum for
“well-capitalized”) 7.63% 7.53% 7.38%
Bank Tier 1 risk-based
capital ratio (6%
minimum for “well-
capitalized”) 10.15% 9.92% 9.66%
Bank Total risk-based
capital ratio (10%
minimum for “well-
capitalized”) 11.42% 11.19% 10.92%
Consolidated Statement of Operations
Unaudited
(amounts in 000's, except per share data and ratios)
Three Months Ending Twelve Months Ending
-------------------- ---------------------
% %
12/31/2011 9/30/2011 Change 12/31/2011 12/31/2010 Change
---------- --------- ------ ---------- ---------- ------
INTEREST INCOME
Loans $ 3,581 $ 3,676 -2.6% $ 14,649 $ 15,439 -5.1%
Investments 241 277 -13.0% 1,171 1,711 -31.6%
Federal funds
sold and other 17 19 -10.5% 65 86 -24.4%
---------- --------- ------ ---------- ---------- ------
Total interest
income 3,839 3,972 -3.3% 15,885 17,236 -7.8%
---------- --------- ------ ---------- ---------- ------
INTEREST EXPENSE
Deposits 689 821 -16.1% 3,359 5,316 -36.8%
Repurchase
agreements and
federal funds
purchased 74 87 -14.9% 329 329 0.0%
FHLB borrowings 536 535 0.2% 2,125 2,125 0.0%
Other
borrowings 120 121 -0.8% 483 460 5.0%
Junior
subordinated
debentures 61 59 3.4% 238 234 1.7%
---------- --------- ------ ---------- ---------- ------
Total interest
expense 1,480 1,623 -8.8% 6,534 8,464 -22.8%
---------- --------- ------ ---------- ---------- ------
NET INTEREST
INCOME BEFORE
PROVISION FOR
LOAN LOSSES 2,359 2,349 0.4% 9,351 8,772 6.6%
PROVISION FOR
LOAN LOSSES - - 0.0% 1,350 2,500 -46.0%
---------- --------- ------ ---------- ---------- ------
NET INTEREST
INCOME AFTER
PROVISION FOR
LOAN LOSSES 2,359 2,349 0.4% 8,001 6,272 27.6%
NON-INTEREST
INCOME 155 155 0.0% 645 499 29.3%
NON-INTEREST
EXPENSE 2,194 2,261 -3.0% 8,844 8,698 1.7%
INVESTMENTS-
REALIZED GAINS
/ (LOSSES) - - 0.0% 603 643 -6.2%
INVESTMENTS -
OTHER THAN
TEMPORARY
IMPAIRMENT (25) - n/a (25) (375) -93.3%
OREO VALUATION
ADJUSTMENTS &
GAINS/(LOSSES)
ON SALES - NET (8) (93) -91.4% (188) (393) -52.2%
---------- --------- ------ ---------- ---------- ------
INCOME (LOSS)
BEFORE
PROVISION FOR
INCOME TAXES 287 150 192 (2,052)
PROVISION
(BENEFIT) FOR
INCOME TAXES 127 29 8 (919)
---------- --------- ---------- ----------
NET INCOME
(LOSS) $ 160 $ 121 $ 184 $ (1,133)
========== ========= ========== ==========
Earnings (Loss)
per share -
Basic $ 0.05 $ 0.04 $ 0.06 $ (0.36)
Earnings (Loss)
per share -
Diluted $ 0.05 $ 0.04 $ 0.05 $ (0.36)
Return on
average equity 3.54% 2.67% 1.03% -6.14%
Return on
average assets 0.18% 0.13% 0.05% -0.30%
Net interest
margin 3.08% 3.09% 3.08% 2.77%
Efficiency ratio 87.3% 90.3% 88.5% 93.8%
CONTACT:
Rick A. Roby
President and Chief Executive Officer
503-693-7500
or
rick@columbiacommunitybank.com
SOURCE: Columbia Commercial Bancorp
mailto:rick@columbiacommunitybank.com
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