SOURCE: Columbia Commercial Bancorp

April 16, 2008 12:19 ET

Columbia Commercial Bancorp Reports First Quarter 2008 ROE of 15.95% and Strong Asset Growth

HILLSBORO, OR--(Marketwire - April 16, 2008) - Columbia Commercial Bancorp (OTCBB: CLBC), a single bank financial holding company for Columbia Community Bank, reports net income for first quarter 2008 of $899,632, or $0.29 per diluted share, compared to $972,875 or $0.31 per diluted share, for the same quarter in 2007. As of March 31, 2008, total assets at $383.8 million were 9.9% above the $349.2 million reported at December 31, 2007 and 31.2% above the $292.5 million reported at the end of first quarter 2007. Gross loans increased $13.1 million over the past quarter and $61.3 million, or 26.0%, over the past year. "Given the recent pressures on net interest margin and credit quality affecting the banking industry as a whole, along with the competitiveness in our local markets for new loans, I am very pleased with our continued successes," states Columbia Commercial Bancorp's President and Chief Executive Officer, Rick A. Roby.

First Quarter 2008 Performance Highlights:

--  Return on equity of 15.95%
--  Return on assets of 0.98%
--  Net interest margin of 3.75%
--  Efficiency ratio of 49.62%
    

Earnings are down slightly from prior quarters due to compressing margins and an increase to the Bank's provision for loan losses. Net interest margin for first quarter 2008 at 3.75% is down from 4.29% for fourth quarter 2007 and 4.75% for first quarter 2007 as the Bank's loans have re-priced downward quicker than its deposits during the recent interest rate cuts. Earning asset growth has helped mitigate margin compression as net interest income at $3.4 million for first quarter 2008 is up from first quarter 2007's $3.2 million and down only slightly from the fourth quarter 2007 amount of $3.5 million.

Provision for loan loss expense was $380,000 for first quarter 2008 compared to $180,000 last quarter and $150,000 for the first quarter in 2007. "While the quality in our loan portfolio remains strong, given the continued challenges in the residential real estate markets and the Bank's sizable construction loan portfolio, we felt it prudent to increase our loan loss provision for the current quarter and potentially the next few quarters as well," said Roby. The Bank's current allowance for loan losses to total loans has now increased to 1.12%. As of March 31, 2008, the Bank had $4.1 million in non-performing loans, or 1.06% of total assets. Fred Johnson, the Bank's Chief Credit Officer, states, "The Bank continues to closely monitor the projects and builders in its residential construction loan portfolio where the economy appears to present the biggest current risk." Johnson continues, "While we won't be immune from future challenges, our builders are located predominantly in the Portland MSA where real estate values, as a whole, have proven to be more resistant to decline. Our Bank benefits further from dealing with experienced builders and developers whose work and reputation are well known to the Bank."

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 provide business loans and deposit products for Oregon businesses.

With offices in Hillsboro, Forest Grove, Tanasbourne and Tigard/Durham, Columbia Community Bank is dedicated to providing a superior and personalized business banking experience for its clients in and around Oregon. The bank was named among the "100 Best Companies to Work for in Oregon" by Oregon Business Magazine (2007); US Banker magazine ranked Columbia Community Bank number 51 among 7,966 banks in the nation with assets of $1 billion or less (2007); and the bank has also been named by Portland Business Journal as one of the "100 Fastest-Growing Private Companies in Oregon" for seven consecutive years.

For more information about Columbia Community Bank, please call (503) 693-7500 or visit www.columbiacommunitybank.com.

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 can 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. The bank 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)


                                             % Change   December  % Change
                             March 31,        2008 vs.    31,     Year-to-
                          2008      2007       2007      2007      Date
                       ---------  ---------  --------  ---------  --------

ASSETS
   Cash & due from
    banks              $   6,055  $   3,909     54.90% $   4,724     28.18%
   Federal funds sold     10,590          -       n/a        737   1336.91%
   Investments            60,793     45,196     34.51%    49,976     21.64%

   Gross loans           297,034    235,784     25.98%   283,967      4.60%
   Allowance for loan
    losses                (3,330)    (2,509)    32.72%    (3,100)     7.42%
                       ---------  ---------  --------  ---------  --------
      Net loans          293,704    233,275     25.90%   280,867      4.57%

   Other assets           12,643     10,122     24.91%    12,887     -1.89%
                       ---------  ---------  --------  ---------  --------

      Total Assets     $ 383,785  $ 292,502     31.21% $ 349,191      9.91%
                       =========  =========  ========  =========  ========

LIABILITIES
   Deposits            $ 271,207  $ 192,069     41.20% $ 236,690     14.58%
   Repurchase
    agreements            17,685     13,817     27.99%    16,375      8.00%
   Federal funds
    purchased                  -      4,174       n/a          -      0.00%
   FHLB borrowings        57,000     51,500     10.68%    59,000     -3.39%
   Real estate
    borrowings             1,881      1,957     -3.88%     1,901     -1.05%
   Junior subordinated
    debentures             8,248      8,248      0.00%     8,248      0.00%
   Other liabilities       4,174      2,401     73.84%     4,880    -14.47%
                       ---------  ---------  --------  ---------  --------
      Total
       Liabilities       360,195    274,166     31.38%   327,094     10.12%

STOCKHOLDERS' EQUITY      23,590     18,336     28.65%    22,097      6.76%
                       ---------  ---------  --------  ---------  --------

      Total
       liabilities and
       stockholders'
       equity          $ 383,785  $ 292,502     31.21% $ 349,191      9.91%
                       =========  =========  ========  =========  ========

Shares outstanding at
 end-of-period         3,038,636  2,958,836            3,006,236
Book value per share   $    7.76  $    6.20            $    7.35





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


                                                          Three
                                 Three Months    %Change  Months
                                    Ending        2008    Ending
                                3/31/    3/31/     vs.    12/31/
                                2008     2007     2007     2007    %Change
                               -------  -------  -------  -------  -------
INTEREST INCOME
   Loans                       $ 5,962  $ 5,423     9.94% $ 6,306    -5.46%
   Investments                     791      572    38.29%     648    22.07%
   Federal funds sold and
    other                           21       11    90.91%      16    31.25%
                               -------  -------  -------  -------  -------
      Total interest income      6,774    6,006    12.79%   6,970    -2.81%
                               -------  -------  -------  -------  -------

INTEREST EXPENSE
   Deposits                      2,385    1,860    28.23%   2,541    -6.14%
   Repurchase agreements and
    federal funds purchased        159      219   -27.40%     182   -12.64%
   FHLB borrowings                 635      527    20.49%     535    18.69%
   Real estate borrowings           35       36    -2.78%      34     2.94%
   Junior subordinated
    debentures                     152      160    -5.00%     164    -7.32%
                               -------  -------  -------  -------  -------
      Total interest expense     3,366    2,802    20.13%   3,456    -2.60%
                               -------  -------  -------  -------  -------

NET INTEREST INCOME BEFORE
 PROVISION FOR LOAN LOSSES       3,408    3,204     6.37%   3,514    -3.02%

PROVISION FOR LOAN LOSSES          380      150   153.33%     180   111.11%
                               -------  -------  -------  -------  -------

NET INTEREST INCOME AFTER
 PROVISION FOR LOAN LOSSES       3,028    3,054    -0.85%   3,334    -9.18%

NON-INTEREST INCOME                129       87    48.28%      83    55.42%

NON-INTEREST EXPENSE             1,770    1,580    12.03%   1,706     3.75%

SECURITY GAINS / (LOSSES)           30        -      n/a        -      n/a
                               -------  -------  -------  -------  -------

INCOME BEFORE PROVISION FOR
 INCOME TAXES                    1,417    1,561    -9.22%   1,711   -17.18%

PROVISION FOR INCOME TAXES         517      588   -12.07%     617   -16.21%
                               -------  -------  -------  -------  -------

NET INCOME                     $   900  $   973    -7.50% $ 1,094   -17.73%
                               =======  =======  =======  =======  =======

Earnings per share - Basic (1) $  0.30  $  0.33    -9.09% $  0.37   -18.92%

Earnings per share - Diluted(1)$  0.29  $  0.31    -4.92% $  0.34   -14.71%

Return on average equity         15.95%   21.94%  -27.31%   20.30%  -21.44%
Return on average assets          0.98%    1.41%  -30.66%    1.29%  -24.17%
Net interest margin               3.75%    4.75%  -21.05%    4.29%  -12.59%
Efficiency ratio                 49.62%   48.01%    3.36%   47.43%    4.62%
Allowance for loan losses to
 total loans                      1.12%    1.06%    5.35%    1.09%    2.69%
Non-performing assets          $ 4,074  $     -      n/a  $     -      n/a

(1) All prior periods have been restated for the 100% stock dividend
    effective July 1, 2007.

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