SOURCE: Columbia Commercial Bancorp

Columbia Commercial Bancorp

April 20, 2009 18:00 ET

Columbia Commercial Bancorp Reports First Quarter 2009 Profit

HILLSBORO, OR--(Marketwire - April 20, 2009) - Columbia Commercial Bancorp (OTCBB: CLBC), a single bank holding company for Columbia Community Bank, reports net income for first quarter 2009 of $471,000, or $0.15 per diluted share, compared to a net loss of $203,000 or ($0.06) per diluted share for fourth quarter 2008, and $900,000 or $0.29 per diluted share for first quarter 2008. Total assets at March 31, 2009 of $398.9 million increased $15.1 million or 3.9% since March 31, 2008, while over the past quarter total assets decreased $3.6 million or 0.9% from the December 31, 2008 total assets of $402.5 million. "Historically the Bank's focus was on asset growth, however over the past quarter and throughout most of 2008, a significant amount of our resources have been focused on working through the Bank's residential construction and land development loan portfolio. Due to the continued residential market slowdown, this process is certainly slower than we had hoped; however, the Bank is making considerable progress," states the Company's President and Chief Executive Officer, Rick A. Roby. The Bank's residential construction and land development loan portfolio at $99.9 million as of March 31, 2009 is down 23.7% when compared to the $130.9 million in outstandings at the end of March 31, 2008. Roby continues, "With last year's loan loss provision expense of $4.2 million and another $600,000 for this quarter, current net income levels are not consistent with those of the past, however the Bank needed to bolster its allowance for loan losses which is now at $5.8 million, relative to the $3.3 million at this time last year." The Bank's allowance for loan losses has increased from 1.12% of total loans at March 31, 2008 to its current level of 1.90% relative to total loans.

First Quarter 2009 Performance Measures:

--  Return on average equity of 8.11%
--  Return on average assets of 0.48%
--  Net interest margin of 2.63%
--  Efficiency ratio of 82.2%
--  Total risk based capital ratio of 10.76% (well-capitalized)
    

"The Bank continues to aggressively work through and properly account for all the loans in its residential and land development portfolio. With the real estate market in a deep slump and many builders and developers running out of resources, the Bank has stopped accruing interest on non-performing loans," states Fred Johnson, the Bank's Chief Credit Officer. At March 31, 2009, the Bank had $31.2 million in non-performing assets which consist solely of loans from the Bank's residential and land development portfolio. Johnson continues, "While the repayment of residential construction and land development loans is taking longer than the original contractual terms, even with the downturn in real estate values most of the loans in this portfolio remain well collateralized." Net Loan charge-offs were $620,000 for the first quarter of 2009 and $1.5 million for all of 2008. All loan charge-offs relate to residential construction and land development loans.

The Bank's non-performing assets, along with the Federal Reserve Bank's actions throughout 2008 to substantially reduce interest rates, have significantly impacted the Bank's net interest margin. Net interest margin for the first quarter of 2009 was 2.63% compared to 3.02% for fourth quarter 2008 and 3.75% for first quarter of 2008. The Company's Chief Financial Officer, Bob Ekblad states, "In addition to the challenges with net interest margin, earnings are under pressure from significant increases in FDIC insurance premiums, costs related to foreclosing on loan collateral, and costs associated with maintaining and liquidating real estate properties acquired through foreclosure." As a result, the Bank's efficiency ratio increased this quarter to 82.2% relative to 60.3% for the prior quarter. Ekblad expands, "There have been no significant changes to human resources or facilities, as the Bank has always leveraged and continues to leverage these areas well. It will just take some time to work through the other issues to return our performance ratios closer to their historical levels which have traditionally been well above our peer group."

Rick A. Roby concludes with, "The Bank turns ten years old this upcoming quarter and I am very proud of our accomplishments. While slowing down and shifting some of our momentum over this past year has been a difficult thing, we knew it was what needed to be done. Our Board of Directors and employees continue to be very focused on the task at hand. We are all optimistic that with stabilization in the residential real estate market, which we are beginning to observe, these challenges will get behind us and our energies can be refocused to more forward moving activities."

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 (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 markets: 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   December
                             March 31        2009 vs.      31,    % Change
                          2009       2008      2008       2008     Quarter
                       ---------  ---------  --------  ---------  --------

ASSETS
   Cash & due from
    banks              $  14,613  $   6,055     141.3% $   9,274      57.6%
   Federal funds sold     23,405     10,590     121.0%     8,739     167.8%
   Investments            39,975     60,793     -34.2%    57,463     -30.4%

   Gross loans           306,854    297,034       3.3%   315,150      -2.6%
   Allowance for loan
    losses                (5,819)    (3,330)     74.7%    (5,839)     -0.3%
                       ---------  ---------  --------  ---------  --------
      Net loans          301,035    293,704       2.5%   309,311      -2.7%

   Other real estate
    owned                  5,663          -       n/a      3,454      64.0%
   Other assets           14,184     12,643      12.2%    14,231      -0.3%
                       ---------  ---------  --------  ---------  --------

      Total Assets     $ 398,875  $ 383,785       3.9% $ 402,472      -0.9%
                       =========  =========  ========  =========  ========

LIABILITIES
   Deposits            $ 293,330  $ 271,207       8.2% $ 288,936       1.5%
   Repurchase
    agreements            12,340     17,685     -30.2%    15,810     -21.9%
   Federal funds
    purchased                  -          -       0.0%         -       0.0%
   FHLB borrowings        56,635     57,000      -0.6%    59,135      -4.2%
   Real estate
    borrowings             1,797      1,881      -4.5%     1,819      -1.2%
   Junior subordinated
    debentures             8,248      8,248       0.0%     8,248       0.0%
   Other liabilities       3,029      4,174     -27.4%     4,923     -38.5%
                       ---------  ---------  --------  ---------  --------
      Total
       Liabilities       375,379    360,195       4.2%   378,871      -0.9%

STOCKHOLDERS' EQUITY      23,496     23,590      -0.4%    23,601      -0.4%
                       ---------  ---------  --------  ---------  --------
      Total
       liabilities and
       stockholders'
       equity          $ 398,875  $ 383,785       3.9% $ 402,472      -0.9%
                       =========  =========  ========  =========  ========

Shares outstanding at
 end-of-period         3,142,581  3,038,636            3,126,081
Book value per share   $    7.48  $    7.76            $    7.55
Allowance for loan
 losses to total loans      1.90%      1.12%                1.85%
Non-performing assets
 (non-accrual loans &
 OREO)                 $  31,185  $   4,074            $  22,058







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



                                                        Three
                      Three Months Ending   % Change    Months
                      --------------------  2009 vs.    Ending    % Change
                      3/31/2009  3/31/2008    2008    12/31/2008  Quarter
                      ---------  ---------  --------  ----------  --------
INTEREST INCOME
   Loans              $   4,647  $   5,962     -22.1% $    5,136      -9.5%
   Investments              466        791     -41.1%        595     -21.7%
   Federal funds sold
    and other                40         21      90.5%        106     -62.3%
                      ---------  ---------  --------  ----------  --------
      Total interest
       income             5,153      6,774     -23.9%      5,837     -11.7%
                      ---------  ---------  --------  ----------  --------

INTEREST EXPENSE
   Deposits               2,022      2,385     -15.2%      2,161      -6.4%
   Repurchase
    agreements and
    federal funds
    purchased                45        159     -71.7%         70     -35.7%
   FHLB borrowings          581        635      -8.5%        602      -3.5%
   Real estate
    borrowings               33         35      -5.7%         34      -2.9%
   Junior
    subordinated
    debentures               86        152     -43.4%        122     -29.5%
                      ---------  ---------  --------  ----------  --------
      Total interest
       expense            2,767      3,366     -17.8%      2,989      -7.4%
                      ---------  ---------  --------  ----------  --------

NET INTEREST INCOME
 BEFORE PROVISION FOR
 LOAN LOSSES              2,386      3,408     -30.0%      2,848     -16.2%

PROVISION FOR LOAN
 LOSSES                     600        380      57.9%      1,550     -61.3%
                      ---------  ---------  --------  ----------  --------

NET INTEREST INCOME
 AFTER PROVISION FOR
 LOAN LOSSES              1,786      3,028     -41.0%      1,298      37.6%

NON-INTEREST INCOME         116        129     -10.1%        115       0.9%

NON-INTEREST EXPENSE      2,055      1,770      16.1%      1,787      15.0%

SECURITY GAINS /
 (LOSSES)                   873         30    2810.0%          1   87200.0%
                      ---------  ---------  --------  ----------  --------

INCOME BEFORE
 PROVISION FOR INCOME
 TAXES                      720      1,417     -49.2%       (373)   -293.0%

PROVISION / (BENEFIT)
 FOR INCOME TAXES           249        517     -51.8%       (170)   -246.5%
                      ---------  ---------  --------  ----------  --------

NET INCOME            $     471  $     900     -47.7% $     (203)   -332.0%
                      =========  =========  ========  ==========  ========

Earnings per share -
 Basic                $    0.15  $    0.30            $    (0.07)

Earnings per share -
 Diluted              $    0.15  $    0.29            $    (0.06)

Return on average
 equity                    8.11%     15.95%                -3.43%
Return on average
 assets                    0.48%      0.98%                -0.21%
Net interest margin        2.63%      3.75%                 3.02%
Efficiency ratio           82.2%      49.6%                 60.3%

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