HILLSBORO, OR--(Marketwired - Apr 18, 2013) - Columbia Commercial Bancorp (
"While outstanding loans continue to increase, total assets have decreased over these past twelve months as a part of the Company's planned deleveraging strategy during 2012; and the results are now becoming quite apparent as we begin 2013. Over the past year, excess cash and low-yielding investments were re-deployed to pay down higher cost liabilities as they matured and also to grow outstanding loans by $13.3 million, and these results are yielding improved margins which translates into enhanced earnings," states the Company's President and CEO, Rick A. Roby.
Total assets as of March 31, 2013 at $330.3 million were down $17.3 million, or 5.0%, when compared to the $347.6 million as of March 31, 2012. Cash, federal funds sold, and investments have decreased by $30.1 million, or 31.6%, over the past twelve months while loans have increased $13.3 million or 5.7%. Other assets have remained relatively unchanged.
"Over the past few years, outstanding loans have decreased considerably as the Bank reduced its exposure to the residential construction market and, now that these reductions are behind us, we are seeing the loan growth in other areas, such as commercial real estate and C&I loans, lead to increased overall total loans," states Fred Johnson, the Company's Chief Credit Officer. As of March 31, 2013, Commercial and Industrial (C&I) loans were $74.6 million or 30.3% of the Bank's total loans, commercial real estate loans were $106.1 million or 43.0%, while residential and commercial construction and development loans totaled $36.3 million or 14.7% of the Bank's total loans. Mr. Johnson continues, "The competition to retain existing loans and attract new loans continues to be quite high but, with our experienced staff, networks, and strong reputation in the market place, I am confident the Bank will continue to generate new loan opportunities creating further loan growth."
For the quarter, the Bank had $32,000 in loan charge-offs along with $75,000 in loan recoveries, or $43,000 in net recoveries. The allowance for loan losses as of March 31, 2013 at $6.2 million, or 2.5% of total loans, was consistent with the December 31, 2012 amounts, and below the $7.1 million, or 3.0% of loans, at this time last year due to the Bank's $750,000 negative loan provisioning during fourth quarter 2012. The Bank took no loan loss provision expense for first quarter 2013 or 2012.
As of March 31, 2013 the Bank had no loans that were past due over 30 days and still accruing interest while as of December 31, 2012 and March 31, 2012 these amounts were $329,000 and $53,000, respectively.
Non-performing assets consist of loans on nonaccrual status and other real estate owned (OREO) which in aggregate were $15.3 million as of March 31, 2013 compared to $17.7 million as of December 31, 2012 and $18.3 million as of March 31, 2012. Nonaccrual loans as of March 31, 2013 consisted of nine relationships ranging in size from $45,000 to $3.6 million and totaled $8.0 million. OREO as of March 31, 2013 consisted of eight projects/properties with carrying amounts ranging from $45,000 to $4.6 million and totaled $7.3 million. OREO as a percentage of non-performing assets was 48.0% as of March 31, 2013.
Total deposits for the Bank at $232.0 million as of March 31, 2013 are down $3.1 million, or 1.3%, over the past twelve months. However as Mr. Ekblad, the Company's Chief Financial Officer, states, "Considering the $9.9 million reduction in brokered deposits and $7.8 million reduction in non-traditional out-of-area deposits over the past twelve months, the Bank's core deposit base has grown an impressive $14.6 million or 6.2%. And the $4.0 million, or 1.8%, growth in outstanding deposits over this most recent quarter is reflective of our steadfast commitment for continued deposit growth." As of March 31, 2013, the Bank has $5.0 million in outstanding brokered deposits, of which $2.7 million matures in late April 2013 and $1.9 million matures in October 2013; both of these high cost brokered deposits will be retired with the Bank's excess cash.
Scheduled loan repricings and competitive market conditions continue to put pressure on loan yields while the reduction in outstanding investments has also negatively impacted asset income which was $3.5 million for first quarter 2013 compared to $3.7 million for both the first and fourth quarters of 2012. However, interest expense has also decreased over the past year from favorable repricings on deposits, maturing brokered deposits, and the significant reductions in outstanding debt. Debt reductions were all completed during the fourth quarter of 2012 and consisted of paying off $6.9 million of Federal Home Loan Bank borrowings that had a weighted average cost of 4.23% and converting $1.9 million of the Company's 8.50% subordinated convertible notes into common stock. The result was net interest income of $2.5 million for first quarter 2013 that was 6.5% above the $2.4 million for fourth quarter 2012 and 9.4% above the $2.3 million for first quarter 2012. The Company's net interest margin at 3.58% for first quarter 2013 also reflects these significant changes when compared to the 3.18% for the prior quarter and the 3.13% for first quarter 2012.
The Bank took no loan loss provision expense in the first quarters of 2013 or 2012 compared to fourth quarter 2012 when, after significant recoveries and continued improvements within the loan portfolio's credit metrics throughout the year, the Bank negative provisioned $750,000 from its overfunded reserve for loan losses.
Noninterest income at $144,000 for first quarter 2013 was down slightly from prior quarters due to reductions in rental income on bank-owned properties which have subsequently been sold. Noninterest expense at $2.2 million for first quarter 2013 rose 3.2% and 5.8% when compared to the fourth quarter and first quarter of 2012, respectively, as a result of increased personnel and personnel related costs along with increased costs for the quarter related to the Bank's problem loans and OREO properties as they are worked toward final resolutions and liquidations.
Equity and Capital
Stockholders' equity for the Company at $21.8 million as of March 31, 2013 increased $3.6 million, or 20.3%, over the past year from both retained profits and from the fourth quarter 2012 conversion of $1.9 million of the Company's 8.50% subordinated notes into 496,596 common shares. And at the Bank level, increased and retained profits over the past year along with deleveraging by 5.0%, or $17.3 million in assets, capital levels continued to rise. The Bank's leverage ratio and total risk-based capital ratios were 9.39% and 12.47% as of March 31, 2013 compared to 8.79% and 12.16%, respectively, as of December 31, 2012, and are significantly higher than the 7.88% and 11.79% as of March 31, 2012. 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 for 2012, 2011, and 2009.
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 known 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.
|Consolidated Balance Sheet |
(amounts in 000s, except per share data and ratios)
|March 31,||% Change||December 31,||% Change|
|2013||2012||2013 vs. 2012||2012||Quarter|
|Cash & due from banks||$||27,564||$||39,523||-30.3||%||$||19,102||44.3||%|
|Federal funds sold||-||5,000||-100.0||%||-||0.0||%|
|Investment Securities - Available for Sale||37,585||50,702||-25.9||%||40,019||-6.1||%|
|Investments - Other||2,207||2,266||-2.6||%||2,227||-0.9||%|
|Allowance for loan losses||(6,196||)||(7,056||)||-12.2||%||(6,153||)||0.7||%|
|Other real estate owned||7,344||8,199||-10.4||%||7,289||0.8||%|
|Federal funds purchased||-||-||0.0||%||-||0.0||%|
|Junior subordinated debentures||8,248||8,248||0.0||%||8,248||0.0||%|
|Total Liabilities and Stockholders' Equity||$||330,308||$||347,581||-5.0||%||$||322,619||2.4||%|
|Shares outstanding at end-of-period||3,775,752||3,151,581||3,759,677|
|Book value per share||$||5.78||$||5.76||$||5.72|
|Allowance for loan losses to total loans||2.51||%||3.03||%||2.51||%|
|Non-performing assets (non-accrual loans & OREO)||$||15,287||$||18,305||$||17,661|
|Bank Tier 1 leverage ratio (5% minimum for "well-capitalized")||9.39||%||7.88||%||8.79||%|
|Bank Tier 1 risk-based capital ratio (6% minimum for "well-capitalized")||11.21||%||10.52||%||10.90||%|
|Bank Total risk-based capital ratio (10% minimum for "well-capitalized")||12.47||%||11.79||%||12.16||%|
|Consolidated Statement of Operations |
(amounts in 000s, except per share data and ratios)
|Three Months Ending||Three Months Ending|
|3/31/2013||3/31/2012||% Change||12/31/2012||% Change|
|Federal funds sold and other||10||19||-47.4||%||17||-41.2||%|
|Total interest income||3,477||3,694||-5.9||%||3,654||-4.8||%|
|Repurchase agreements and federal funds purchased||27||51||-47.1||%||34||-20.6||%|
|Junior subordinated debentures||61||64||-4.7||%||64||-4.7||%|
|Total interest expense||963||1,395||-31.0||%||1,293||-25.5||%|
|NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES||2,514||2,299||9.4||%||2,361||6.5||%|
|PROVISION FOR LOAN LOSSES||-||-||0.0||%||(750||)||-100.0||%|
|NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES||2,514||2,299||9.4||%||3,111||-19.2||%|
|INVESTMENTS- REALIZED GAINS / (LOSSES)||-||-||0.0||%||33||-100.0||%|
|INVESTMENTS - OTHER THAN TEMPORARY IMPAIRMENT||-||-||0.0||%||-||0.0||%|
|OREO VALUATION ADJUSTMENTS & GAINS/(LOSSES) ON SALES - NET||137||24||470.8||%||(55||)||-349.1||%|
|INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES||548||351||56.1||%||1,090||-49.7||%|
|PROVISION (BENEFIT) FOR INCOME TAXES||180||140||28.6||%||482||-62.7||%|
|NET INCOME (LOSS)||$||368||$||211||74.4||%||$||608||-39.5||%|
|Earnings (Loss) per share - Basic||$||0.10||$||0.07||$||0.19|
|Earnings (Loss) per share - Diluted||$||0.10||$||0.07||$||0.19|
|Return on average equity||6.89||%||4.69||%||12.61||%|
|Return on average assets||0.46||%||0.24||%||0.71||%|
|Net interest margin||3.58||%||3.13||%||3.18||%|