SOURCE: Columbia Commercial Bancorp

Columbia Commercial Bancorp

April 23, 2012 16:28 ET

Columbia Commercial Bancorp Reports First Quarter 2012 Results

HILLSBORO, OR--(Marketwire - Apr 23, 2012) - Columbia Commercial Bancorp (OTCBB: CLBC), a single bank holding company for Columbia Community Bank (the Bank), reports a net profit of $211,000, or $0.07 per diluted share for the first quarter of 2012 compared to a net profit of $160,000, or $0.05 per diluted share for the fourth quarter of 2011.

"The positive trends continue," states the Company's President and CEO, Rick A. Roby. And he expands, "Steady progress is being made across the Company as non-performing assets continue to decrease, the Bank's construction loan portfolio continues to stabilize, and net interest margin, profitability, and capital ratios continue to increase. We finished 2011 strong and are now starting out 2012 with the same continued momentum."

Assets

Total assets as of March 31, 2012 at $347.6 million were down $5.0 million, or 1.4%, when compared to the $352.6 million as of December 31, 2011 and are down $17.5 million or 4.8% when compared to the $365.1 million as of March 31, 2011. "Much of this asset reduction is from a decrease in loans which is the result of a planned and continued reduction in residential construction and development loans," states Fred Johnson, the Company's Chief Credit Officer. As of March 31, 2012 construction and land development loans totaled $34.6 million, or 14.8%, of the Bank's total loans which is very consistent with the year-end 2011 amounts but is a reduction of $11.9 million when compared to March 31, 2011 when they were $46.5 million, or 19.2%, of total loans. Total loans at $233.2 million as of March 31, 2012 are down $5.2 million over the past quarter and are down $8.3 million, or 3.4%, when compared to the $241.5 million outstanding as of March 31, 2011. And Mr. Johnson continues, "While other loan growth has been only modest over the past year, the Bank has plenty of liquidity to deploy and an experienced lending staff that continues to actively pursue quality lending relationships. While the marketplace continues to be very competitive, with the near completion of our objective to reduce construction exposure and considering the current loan pipeline in progress, we anticipate that outstanding loans will start to grow again."

For the quarter, the Bank had $620,000 in loan charge-offs along with $593,000 in loan recoveries, or $27,000 in net charge-offs. The allowance for loan losses at $7.1 million, or 3.0% of total loans, is consistent with the December 31, 2011 amounts and is above the $6.7 million, or 2.8% of loans, as of March 31, 2011. The Bank had no loan loss provision for this first quarter of 2012 or the last two quarters of 2011 compared to first quarter of 2011 when it had a $250,000 loan loss provision expense and second quarter 2011 when it was $1.1 million.

As of March 31, 2012 the Bank had loans in the amount of $203,000 that were past due over 30 days and still accruing interest while 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 $18.3 million as of March 31, 2012 compared to $19.0 million as of December 31, 2011 and $20.1 million as of March 31, 2011. Mr. Johnson states, "As most of the Bank's non-performing assets relate to residential development and construction projects, reductions over this past quarter were somewhat minimal due to the time of the year; however the Bank and our clients continue to work through these projects and a number of them are gaining traction as winter passes and we move into what is looking to be an improved buying season relative to the past few years. With the number of accepted offers in process on both the Bank's OREO and many of our borrowers' projects, we are confident non-performing assets will reduce over the next couple of quarters."

Deposits

"While overall deposit totals have decreased, it is from a reduction in brokered and nontraditional out-of-area deposits as the Bank's core deposit base has actually grown $8.5 million from this time last year," states Mr. Ekblad, the Company's Chief Financial Officer. Total deposits for the Bank at $235.1 million as of March 31, 2012 are down $4.0 million, or 1.7%, for the quarter and $14.3 million, or 5.7%, over the past year. During this first quarter, the Bank reduced its brokered and non-traditional out-of-area deposits by $4.1 million and over the past year they have been reduced by over $22.8 million. The Bank has a $5.6 million brokered deposit that matures in late April that will be retired from excess cash, and at that time the Bank will have $9.3 million in remaining brokered deposits that mature between October 2012 and February 2014.

Earnings

"We continue to see stabilization in the local real estate market and with a well-funded loan loss reserve, the Bank has not taken any provision for loan losses over the past three quarters," states Mr. Roby. Net income for first quarter 2012 was $211,000 compared to $160,000 for fourth quarter 2011 and $333,000 for first quarter 2011 when the Company had $603,000 in gains on the sale of marketable securities but also had a $250,000 loan loss provision expense.

Net interest income remains very stable at approximately $2.3 million for first quarter 2012 as well as the fourth and first quarters of 2011. "Even though our earning assets have declined over the quarter and this past year, the Bank's net interest income has remained very stable as high cost liabilities are maturing and being either liquidated with excess cash or are being replaced with other lower cost alternatives, such as core deposits, which is reducing interest expense considerably. And this is evident in the Company's continually rising net interest margin," states Mr. Ekblad. Net interest margin for first quarter 2012 was 3.13% compared to 3.08% for fourth quarter 2011 and 3.00% for first quarter 2011. And Mr. Ekblad continues, "While our net interest margin is lower than desired and we continue to have interest rate pressures on both new and existing loans, our margin will continue to increase in the quarters ahead as additional high cost liabilities are retired or repriced, non-performing assets are reduced, and some of the Bank's low yielding excess liquidity is redeployed into higher earning assets such as loans."

Non-interest income at $152,000 for the quarter is very consistent with the $155,000 for fourth quarter 2011 and the $151,000 for first quarter 2011. Non-interest expense at $2.1 million for first quarter 2012 is down slightly from the $2.2 million for both the fourth and first quarters of 2011 as costs associated with troubled assets which include legal, foreclosure, and OREO expenses continue their anticipated decrease as they were $75,000 for first quarter 2012 compared to $210,000 and $191,000 for the fourth and first quarters of 2011, respectively. Other non-interest expenses remain relatively flat.

Capital

The Bank's capital ratios are steadily increasing through continued profits and the slight reduction in assets. The Bank's leverage ratio and total risk-based capital ratios were 7.88% and 11.79% as of March 31, 2012 compared to 7.63% and 11.42% as of December 31, 2011 and 7.61% and 10.93% as of March 31, 2011, 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 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.

Columbia Commercial Bancorp
Consolidated Balance Sheet
Unaudited
(amounts in 000's, except per share data and ratios)
March 31, % Change
2012 vs. 2011
December 31, 2011 % Change Quarter
2012 2011
ASSETS
Cash & due from banks $ 39,523 $ 44,313 -10.8 % $ 25,982 52.1 %
Federal funds sold 5,000 15,000 -66.7 % 10,000 -50.0 %
Investment Securities - Available for Sale 50,702 39,208 29.3 % 58,417 -13.2 %
Investments - Other 2,266 2,307 -1.8 % 2,307 -1.8 %
Gross loans 233,175 241,504 -3.4 % 238,403 -2.2 %
Allowance for loan losses (7,056 ) (6,734 ) 4.8 % (7,083 ) -0.4 %
Net loans 226,119 234,770 -3.7 % 231,320 -2.2 %
Other real estate owned 8,199 12,796 -35.9 % 8,408 -2.5 %
Other assets 15,772 16,706 -5.6 % 16,174 -2.5 %
Total Assets $ 347,581 $ 365,100 -4.8 % $ 352,608 -1.4 %
LIABILITIES
Deposits $ 235,097 $ 249,397 -5.7 % $ 239,083 -1.7 %
Repurchase agreements 29,912 27,504 8.8 % 26,722 11.9 %
Federal funds purchased - - 0.0 % - 0.0 %
FHLB borrowings 47,900 52,635 -9.0 % 52,635 -9.0 %
Other borrowings 4,514 4,455 1.3 % 4,513 0.0 %
Junior subordinated debentures 8,248 8,248 0.0 % 8,248 0.0 %
Other liabilities 3,753 5,316 -29.4 % 3,433 9.3 %
Total Liabilities 329,424 347,555 -5.2 % 334,634 -1.6 %
STOCKHOLDERS' EQUITY 18,157 17,545 3.5 % 17,974 1.0 %
Total Liabilities and Stockholders' Equity $ 347,581 $ 365,100 -4.8 % $ 352,608 -1.4 %
Shares outstanding at end-of-period 3,151,581 3,151,581 3,151,581
Book value per share $ 5.76 $ 5.57 $ 5.70
Allowance for loan losses to total loans 3.03 % 2.79 % 2.97 %
Non-performing assets (non-accrual loans & OREO) $ 18,305 $ 20,105 $ 18,984
Bank Tier 1 leverage ratio (5% minimum for "well-capitalized") 7.88 % 7.61 % 7.63 %
Bank Tier 1 risk-based capital ratio (6% minimum for "well-capitalized") 10.52 % 9.67 % 10.16 %
Bank Total risk-based capital ratio (10% minimum for "well-capitalized") 11.79 % 10.93 % 11.42 %
Consolidated Statement of Operations
Unaudited
(amounts in 000's, except per share data and ratios)
Three Months Ending Three Months Ending
3/31/2012 3/31/2011 % Change 12/31/2011 % Change
INTEREST INCOME
Loans $ 3,447 $ 3,676 -6.2 % $ 3,581 -3.7 %
Investments 228 358 -36.3 % 241 -5.4 %
Federal funds sold and other 19 12 58.3 % 17 11.8 %
Total interest income 3,694 4,046 -8.7 % 3,839 -3.8 %
INTEREST EXPENSE
Deposits 616 984 -37.4 % 689 -10.6 %
Repurchase agreements and federal funds purchased 51 83 -38.6 % 74 -31.1 %
FHLB borrowings 544 524 3.8 % 536 1.5 %
Other borrowings 120 121 -0.8 % 120 0.0 %
Junior subordinated debentures 64 58 10.3 % 61 4.9 %
Total interest expense 1,395 1,770 -21.2 % 1,480 -5.7 %
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES 2,299 2,276 1.0 % 2,359 -2.5 %
PROVISION FOR LOAN LOSSES - 250 -100.0 % - 0.0 %
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 2,299 2,026 13.5 % 2,359 -2.5 %
NON-INTEREST INCOME 152 151 0.7 % 155 -1.9 %
NON-INTEREST EXPENSE 2,124 2,196 -3.3 % 2,194 -3.2 %
INVESTMENTS- REALIZED GAINS / (LOSSES) - 603 -100.0 % - 0.0 %
INVESTMENTS - OTHER THAN TEMPORARY IMPAIRMENT - - 0.0 % (25 ) -100.0 %
OREO VALUATION ADJUSTMENTS & GAINS/(LOSSES) ON SALES - NET 24 (86 ) -127.9 % (8 ) -400.0 %
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES 351 498 -29.5 % 287 22.3 %
PROVISION (BENEFIT) FOR INCOME TAXES 140 165 -15.2 % 127 10.2 %
NET INCOME (LOSS) $ 211 $ 333 -36.6 % $ 160 31.9 %
Earnings (Loss) per share - Basic $ 0.07 $ 0.11 $ 0.05
Earnings (Loss) per share - Diluted $ 0.07 $ 0.11 $ 0.05
Return on average equity 4.69 % 7.67 % 3.54 %
Return on average assets 0.24 % 0.38 % 0.18 %
Net interest margin 3.13 % 3.00 % 3.08 %
Efficiency ratio 86.7 % 90.5 % 87.3 %

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