SOURCE: Columbia Commercial Bancorp

Columbia Commercial Bancorp

October 30, 2009 17:35 ET

Columbia Commercial Bancorp Reports Third Quarter 2009 Results

HILLSBORO, OR--(Marketwire - October 30, 2009) - Columbia Commercial Bancorp (OTCBB: CLBC), a single bank holding company for Columbia Community Bank, reports a net loss of $556,000, or $0.18 per diluted share for the quarter ended September 30, 2009. Year-to-date for the nine months ended September 30, 2009 the net loss reported is $3.7 million, or $1.19 per diluted share, compared to net income of $1.5 million, or $0.48 per diluted share, for the same period in 2008.

"While we are beginning to see some slowing of the adverse residential real estate trends from 2008 and earlier this year, these difficult market conditions within the Bank's lending areas still continue to present challenges for us," stated the Company's President and Chief Executive Officer, Rick A. Roby. He adds, "The Bank closely monitors its troubled loans and adequacy of the allowance for loan losses and therefore posted an additional $1.0 million loan loss provision expense for this quarter over and above the $4.9 million taken earlier in the year. The allowance for loans losses is now at $7.9 million or 2.81% of total loans and even though the Bank has a net loss for the year, its total risk-based capital ratio at 10.65% is still 'well-capitalized' according to the standard regulatory definitions."

Total assets were $378.9 million as of September 30, 2009, which are consistent with the $378.1 million in total assets at this same time last year. Loans are down $28.4 million, or 9.1% over this past twelve months from $311.1 million as of September 30, 2008 relative to $282.7 million at the end of this most recent quarter. "Over this past year we've experienced growth in most areas of our loan portfolio except for residential construction and land development loans which are down $36.1 million, or 30.8% to $81.0 million at the end of this quarter compared to the $117.1 million at this same time last year. Equally important is that the remaining loans in the Bank's portfolio that are not dependent on the residential construction industry continue to perform well even through these difficult economic times," states the Company's Chief Credit Officer, Fred Johnson. Mr. Johnson continues, "Not only are we pleased with the results of our efforts to reduce the Bank's lending exposure in the residential real estate market, but we have also observed the leveling off and actual reduction of the Bank's non-performing assets over this past quarter." Non-performing assets, consisting of loans in non-accrual status and other real estate acquired through the workout of troubled loans totaled $27.6 million, or 7.3% of total assets at the end of this most recent quarter compared to $30.1 million or 7.7% of total assets as of June 30, 2009 and $31.2 million, or 7.8% of assets as of March 31, 2009.

The Bank's allowance for loan losses is $7.9 million as of September 30, 2009, or 2.81% of outstanding loans compared to $5.8 million, or 1.85% of loans at December 31, 2008 and $5.3 million, or 1.70% of loans for the same quarter ended a year ago. For 2009, the Bank's loan loss provision has been $5.9 million compared to $2.7 million for the same nine month period in 2008. Year-to-date loan charge-offs for 2009 have been $4.2 million relative to $342,000 in recoveries for the first nine months of this year.

In addition to the Bank's loan loss provision expenses, the Bank's Chief Financial Officer, Bob Ekblad, comments that "Year-to-date Bank earnings have also been adversely affected by a $1.2 million other-than-temporary impairment charge taken on one of the Bank's investments during the second quarter of this year, an FDIC special assessment of $185,000 during the second quarter of this year as well, write-downs and net losses upon the sale of OREO property totaling $691,000 for the first nine months of this year, along with the increased costs, both direct and indirect, of monitoring troubled loans and managing bank owned properties." Other non-interest expenses from year-to-year have remained relatively stable. Ekblad further comments, "Net interest margin at 2.47% for the quarter has leveled off and should improve moving forward as long-term liabilities continually reprice at today's lower costs, however the overall lower market rates, continued non-performing assets, lower loan fees from reduced originations, and the opportunity costs associated with prudently keeping strong liquid reserves in today's operating environment, are all factors that will continue to challenge net interest margin moving forward." As of September 30, 2009, the Bank had $34.3 million in excess cash, fed funds sold, short-term investments, and unpledged readily-marketable available-for-sale securities.

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 was 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. In 2008, US Banker magazine ranked Columbia Commercial Bancorp number 15 among 1,115 financial institutions in the nation with assets of $2 billion or less based upon a three-year average return on equity.

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 market; and the impacts of new government initiatives (such as climate change initiatives and other programs) 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
                     Unaudited
(amounts in 000's, except per share data and ratios)

                                       % Change
                    September 30,       2009 vs.   December     % Change
                   2009        2008       2008     30, 2008   Year-to-Date
                ----------  ----------  --------  ----------  ------------

ASSETS
  Cash & due
   from banks   $   21,342  $    3,378     531.8% $    9,274         130.1%
  Federal
   funds sold        5,000         617     710.4%      8,739         -42.8%
  Investment
   Securities
   - Available
   for Sale         52,489      47,616      10.2%     54,606          -3.9%
  Investments
   - Other           2,646       2,745      -3.6%      2,857          -7.4%

  Gross loans      282,701     311,142      -9.1%    315,150         -10.3%
  Allowance
   for loan
   losses           (7,940)     (5,280)     50.4%     (5,839)         36.0%
                ----------  ----------  --------  ----------  ------------
    Net loans      274,761     305,862     -10.2%    309,311         -11.2%

  Other real
   estate
   owned             6,009       3,865      55.5%      3,454          74.0%
  Other assets      16,648      13,990      19.0%     14,231          17.0%
                ----------  ----------  --------  ----------  ------------

    Total
     Assets     $  378,895  $  378,073       0.2% $  402,472          -5.9%
                ==========  ==========  ========  ==========  ============

LIABILITIES
  Deposits      $  270,772  $  270,063       0.3% $  288,936          -6.3%
  Repurchase
   agreements       17,399      11,352      53.3%     15,810          10.1%
  Federal
   funds
   purchased             -           -       0.0%          -           0.0%
  FHLB
   borrowings       56,635      60,135      -5.8%     59,135          -4.2%
  Other
   borrowings        1,753       1,840      -4.7%      1,819          -3.6%
  Junior
   subordinated
   debentures        8,248       8,248       0.0%      8,248           0.0%
  Other
   liabilities       3,521       3,066      14.8%      4,923         -28.5%
                ----------  ----------  --------  ----------  ------------
    Total
     Liabilities   358,328     354,704       1.0%    378,871          -5.4%

STOCKHOLDERS'
 EQUITY             20,567      23,369     -12.0%     23,601         -12.9%
                ----------  ----------  --------  ----------  ------------
    Total
     liabilities
     and
     stock-
     holders'
     equity     $  378,895  $  378,073       0.2% $  402,472          -5.9%
                ==========  ==========  ========  ==========  ============

Shares
 outstanding at
 end-of-period   3,142,581   3,111,081             3,126,081
Book value per
 share          $     6.54  $     7.51            $     7.55
Allowance for
 loan losses to
 total loans          2.81%       1.70%                 1.85%
Non-performing
 assets
 (non-accrual
 loans & OREO)  $   27,585  $   10,487            $   22,058

Tier 1 leverage
 ratio (5%
 minimum for
 "well-
 capitalized")        7.62%       8.66%                 8.42%
Tier 1
 risk-based
 capital ratio
 (6% minimum
 for "well-
 capitalized")        9.40%       9.60%                 9.38%
Total
 risk-based
 capital ratio
 (10% minimum
 for "well-
 capitalized")       10.65%      10.86%                10.64%




         Consolidated Statement of Operations
                      Unaudited
  (amounts in 000's, except per share data and ratios)


                           Three months Ending
                          ----------  ----------  --------
                          9/30/2009   6/30/2009   % Change
                          ----------  ----------  --------
INTEREST INCOME
  Loans                   $    4,382  $    4,483      -2.3%
  Investments                    303         279       8.6%
  Federal funds sold and
   other                          33          32       3.1%
                          ----------  ----------  --------
    Total interest
     income                    4,718       4,794      -1.6%
                          ----------  ----------  --------

INTEREST EXPENSE
  Deposits                     1,887       1,971      -4.3%
  Repurchase agreements
   and federal funds
   purchased                      48          39      23.1%
  FHLB borrowings                574         569       0.9%
  Other borrowings                34          32       6.3%
  Junior subordinated
   debentures                     64          77     -16.9%
                          ----------  ----------  --------
    Total interest
     expense                   2,607       2,688      -3.0%
                          ----------  ----------  --------

NET INTEREST INCOME
 BEFORE PROVISION FOR
 LOAN LOSSES                   2,111       2,106       0.2%

PROVISION FOR LOAN LOSSES      1,000       4,325     -76.9%
                          ----------  ----------  --------

NET INTEREST INCOME AFTER
 PROVISION FOR LOAN
 LOSSES                        1,111      (2,219)   -150.1%

NON-INTEREST INCOME              111         117      -5.1%

NON-INTEREST EXPENSE           2,170       2,375      -8.6%

INVESTMENTS- REALIZED
 GAINS / (LOSSES)                  -         403    -100.0%
INVESTMENTS - OTHER THAN
 TEMPORARY IMPAIRMENT              -      (1,200)   -100.0%
OREO VALUATION
 ADJUSTMENTS &
 GAINS/(LOSSES) ON SALES
 - NET                            (4)       (687)    -99.4%
                          ----------  ----------  --------

INCOME (LOSS) BEFORE
 PROVISION FOR INCOME
 TAXES                          (952)     (5,961)    -84.0%

PROVISION (BENEFIT) FOR
 INCOME TAXES                   (396)     (2,318)    -82.9%
                          ----------  ----------  --------

NET INCOME (LOSS)         $     (556) $   (3,643)    -84.7%
                          ==========  ==========  ========

Earnings (Loss) per share
 - Basic                  $    (0.18) $    (1.16)

Earnings (Loss) per share
 - Diluted                $    (0.18) $    (1.16)

Return on average equity      -10.58%     -62.91%
Return on average assets       -0.57%      -3.69%
Net interest margin             2.47%       2.46%
Efficiency ratio                97.7%      106.8%


                            Nine Months Ending
                          ----------  ----------  --------
                          9/30/2009   9/30/2008   % Change
                          ----------  ----------  --------
INTEREST INCOME
  Loans                   $   13,512  $   17,107     -21.0%
  Investments                  1,048       2,280     -54.0%
  Federal funds sold and
   other                         105          58      81.0%
                          ----------  ----------  --------
    Total interest
     income                   14,665      19,445     -24.6%
                          ----------  ----------  --------

INTEREST EXPENSE
  Deposits                     5,880       6,684     -12.0%
  Repurchase agreements
   and federal funds
   purchased                     132         354     -62.7%
  FHLB borrowings              1,724       1,813      -4.9%
  Other borrowings                99         104      -4.8%
  Junior subordinated
   debentures                    227         367     -38.1%
                          ----------  ----------  --------
    Total interest
     expense                   8,062       9,322     -13.5%
                          ----------  ----------  --------

NET INTEREST INCOME
 BEFORE PROVISION FOR
 LOAN LOSSES                   6,603      10,123     -34.8%

PROVISION FOR LOAN LOSSES      5,925       2,680     121.1%
                          ----------  ----------  --------

NET INTEREST INCOME AFTER
 PROVISION FOR LOAN
 LOSSES                          678       7,443     -90.9%

NON-INTEREST INCOME              344         363      -5.2%

NON-INTEREST EXPENSE           6,600       5,543      19.1%

INVESTMENTS- REALIZED
 GAINS / (LOSSES)              1,276          50    2452.0%
INVESTMENTS - OTHER THAN
 TEMPORARY IMPAIRMENT         (1,200)          -       n/a
OREO VALUATION
 ADJUSTMENTS &
 GAINS/(LOSSES) ON SALES
 - NET                          (691)          -       n/a
                          ----------  ----------  --------

INCOME (LOSS) BEFORE
 PROVISION FOR INCOME
 TAXES                        (6,193)      2,313    -367.7%

PROVISION (BENEFIT) FOR
 INCOME TAXES                 (2,465)        799    -408.5%
                          ----------  ----------  --------

NET INCOME (LOSS)         $   (3,728) $    1,514    -346.2%
                          ==========  ==========  ========

Earnings (Loss) per share
 - Basic                  $    (1.19) $     0.50

Earnings (Loss) per share
 - Diluted                $    (1.19) $     0.48

Return on average equity      -21.95%       8.69%
Return on average assets       -1.26%       0.54%
Net interest margin             2.52%       3.71%
Efficiency ratio                95.0%       52.9%

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