SOURCE: Columbia Commercial Bancorp

Columbia Commercial Bancorp

February 19, 2010 16:46 ET

Columbia Commercial Bancorp Reports Fourth Quarter and Full Year 2009 Results

HILLSBORO, OR--(Marketwire - February 19, 2010) - Columbia Commercial Bancorp (OTCBB: CLBC), a single bank holding company for Columbia Community Bank (the Bank), reports a net loss of $1.8 million, or $0.57 per diluted share for the fourth quarter 2009. Year-to-date for the twelve months ended December 31, 2009 the Company's net loss reported is $5.5 million, or $1.76 per diluted share, compared to net income of $1.3 million, or $0.42 per diluted share, for the same period in 2008.

"Declining real estate values continued to adversely affect the Bank's earnings in the fourth quarter just as they had for all of 2009. Loan loss provision expense was $1.8 million for the quarter and $7.7 million for the year but to a great extent this has bolstered reserves such that at year-end 2009 the Bank's allowance for loan losses was 3.40% of loans compared to 1.85% of loans at the prior year-end. Over this past year the Bank has reduced its construction and land development loan portfolio by over $55.4 million, or by almost 48%, while growing other loan categories, growing core deposits, and remaining well-capitalized," stated the Company's President and Chief Executive Officer, Rick A. Roby.

Total assets were $380.2 million at December 31, 2009, which are down $22.3 million, or 5.5% compared to year-end 2008. Over the year, cash, federal funds sold, and marketable securities grew by over $22.4 million while outstanding loans decreased $53.6 million, or 17.0% which is primarily from the decline in outstanding construction and land development loans. Construction and land development loans at December 31, 2009 totaled $60.6 million, or 23.2% of the Bank's total loans of $261.6 million compared to $116.0 million, or 36.8% of the Bank's total loans of $315.2 million as of December 31, 2008.

The allowance for loan losses ending December 31, 2009 was $8.9 million, or 3.40% of loans after the $7.7 million loan loss provision and $4.6 million in net charge-offs for 2009. The allowance has increased when compared to year-end 2008 when it was $5.8 million, or 1.85% of loans, after a $4.2 million loan loss provision and $1.5 million in net charge-offs during 2008. Loans past due over 30 days, excluding those in non-accrual status, were $1.8 million or 0.7% of loans as of December 31, 2009. Non-accruing loans totaled $17.0 million at year-end 2009 which are down from the $21.6 million and $24.9 million for the third and second 2009 quarter-ends respectively. "Much of the Bank's recent reduction in non-accrual loans is the result of the Bank obtaining ownership of underlying collateral," states the Company's Chief Credit Officer, Fred Johnson. And as a result, the Bank's OREO properties totaling $11.9 million at the end of 2009, is up significantly from the $6.0 million as of September 30, 2009, and the $3.5 million at year-end 2008. Mr. Johnson continues, "but while the amount of OREO properties is up, we are having considerable success at moving properties once we get them within our control." Non-performing assets (non-accrual loans and OREO combined) at $28.9 million as of December 31, 2009 is relatively consistent with the $27.6 million outstanding as of September 30, 2009 and the $30.2 million outstanding as of June 30, 2009 and are up $6.8 million when compared to the $22.1 million in non-performing assets as of December 31, 2008.

Earnings continue to be adversely affected by a declining net interest margin. The net interest margin of 2.45% for the fourth quarter of 2009 is relatively consistent with that of the prior quarter but net interest margin for the whole year at 2.51% is down from the prior year's 3.54%. Bob Ekblad, the Company's Chief Financial Officer, states, "The higher levels of non-performing assets has certainly adversely affected net interest margin over this past year, but so has the mix of the Bank's assets to more lower yielding instruments than loans as it is holding $95.0 million in cash, federal funds sold, and marketable securities at the end of 2009 when compared to $72.6 million at the end of 2008 and $53.3 million at the end of 2007." Ekblad continues by noting, "Besides net margin pressures and the loan loss provision, other challenges to earnings over this past quarter and year include impairment charges on one of the Bank's securities and write-downs on OREO properties." For the fourth quarter, the Bank took an additional $300,000 other-than-temporary impairment charge on one of its investment securities, bringing the total write-down of this investment to $1.5 million for the year while OREO property valuation adjustments and net losses on OREO sales adversely affected income by $1.1 million for the fourth quarter of 2009 and $1.8 million for the year.

Mr. Roby continues, "With considerable success, the Bank is deploying both internal and external resources to work through and reduce its exposure to the construction and land development markets while remaining very liquid and well-capitalized." As of December 31, 2009, the Bank has $51.5 million in excess cash, federal funds sold, and unpledged marketable securities while its regulatory capital at 7.17%, 9.12%, and 10.39% for the Tier 1 Leverage Ratio, Tier 1 Risk-based Capital Ratio, and Total Risk-based Capital Ratio, as of December 31, 2009 respectively, are all considered "well-capitalized" according to the standard regulatory definitions. Roby continues by noting that "The Company has just successfully completed a private placement debt offering of approximately $3.0 million for which a majority of these proceeds will be down-streamed to the Bank, providing even more capital than the current levels."

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
                             December 31,        2009   September  % Change
                           2009       2008     vs. 2008  30, 2009  Quarter
                         ---------  ---------  -------  ---------  -------

ASSETS
   Cash & due from banks $  25,810  $   9,274    178.3% $  21,342     20.9%
   Federal funds sold       15,000      8,739     71.6%     5,000    200.0%
   Investment Securities
    - Available for Sale    54,198     54,606     -0.7%    52,489      3.3%
   Investments - Other       2,566      2,857    -10.2%     2,646     -3.0%

   Gross loans             261,591    315,150    -17.0%   282,701     -7.5%
   Allowance for loan
    losses                  (8,903)    (5,839)    52.5%    (7,940)    12.1%
                         ---------  ---------  -------  ---------  -------
      Net loans            252,688    309,311    -18.3%   274,761     -8.0%

   Other real estate
    owned                   11,890      3,454    244.2%     6,009     97.9%
   Other assets             18,021     14,231     26.6%    16,648      8.2%
                         ---------  ---------  -------  ---------  -------

      Total Assets       $ 380,173  $ 402,472     -5.5% $ 378,895      0.3%
                         =========  =========  =======  =========  =======

LIABILITIES
   Deposits              $ 273,825  $ 288,936     -5.2% $ 270,772      1.1%
   Repurchase agreements    22,515     15,810     42.4%    17,399     29.4%
   Federal funds
    purchased                    -          -      0.0%         -      0.0%
   FHLB borrowings          52,635     59,135    -11.0%    56,635     -7.1%
   Other borrowings          1,730      1,819     -4.9%     1,753     -1.3%
   Junior subordinated
    debentures               8,248      8,248      0.0%     8,248      0.0%
   Other liabilities         2,728      4,923    -44.6%     3,521    -22.5%
                         ---------  ---------  -------  ---------  -------
      Total Liabilities    361,681    378,871     -4.5%   358,328      0.9%

STOCKHOLDERS' EQUITY        18,492     23,601    -21.6%    20,567    -10.1%
                         ---------  ---------  -------  ---------  -------
      Total Liabilities
       and Stockholders'
       Equity            $ 380,173  $ 402,472     -5.5% $ 378,895      0.3%
                         =========  =========  =======  =========  =======

Shares outstanding at
 end-of-period           3,142,581  3,126,081           3,142,581
Book value per share     $    5.88  $    7.55           $    6.54
Allowance for loan
 losses to total loans        3.40%      1.85%               2.81%
Non-performing assets
 (non-accrual loans &
 OREO)                   $  28,914  $  22,058           $  27,585

Tier 1 leverage ratio
 (5% minimum for
 "well-capitalized")          7.17%      8.42%               7.62%
Tier 1 risk-based
 capital ratio (6%
 minimum for
 "well-capitalized")          9.12%      9.38%               9.40%
Total risk-based capital
 ratio (10% minimum for
 "well-capitalized")         10.39%     10.64%              10.65%





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

                        Three Months Ending        Twelve Months Ending
                    --------------------------  --------------------------
                     12/31/    9/30/      %      12/31/    12/31/     %
                      2009      2009    Change    2009      2008    Change
                    --------  -------  -------  --------  -------  -------
INTEREST INCOME
   Loans            $  4,072  $ 4,382     -7.1% $ 17,584  $22,243    -20.9%
   Investments           373      303     23.1%    1,421    2,875    -50.6%
   Federal funds
    sold and other        28       33    -15.2%      133      164    -18.9%
                    --------  -------  -------  --------  -------  -------
      Total interest
       income          4,473    4,718     -5.2%   19,138   25,282    -24.3%
                    --------  -------  -------  --------  -------  -------

INTEREST EXPENSE
   Deposits            1,705    1,887     -9.6%    7,585    8,845    -14.2%
   Repurchase
    agreements and
    federal funds
    purchased             64       48     33.3%      196      424    -53.8%
   FHLB borrowings       550      574     -4.2%    2,274    2,415     -5.8%
   Other borrowings       32       34     -5.9%      131      138     -5.1%
   Junior subordinated
    debentures            56       64    -12.5%      283      489    -42.1%
                    --------  -------  -------  --------  -------  -------
      Total interest
       expense         2,407    2,607     -7.7%   10,469   12,311    -15.0%
                    --------  -------  -------  --------  -------  -------

NET INTEREST INCOME
 BEFORE PROVISION
 FOR LOAN LOSSES       2,066    2,111     -2.1%    8,669   12,971    -33.2%

PROVISION FOR LOAN
 LOSSES                1,815    1,000     81.5%    7,740    4,230     83.0%
                    --------  -------  -------  --------  -------  -------

NET INTEREST INCOME
 AFTER PROVISION
 FOR LOAN LOSSES         251    1,111    -77.4%      929    8,741    -89.4%

NON-INTEREST INCOME      114      111      2.7%      458      448      2.2%

NON-INTEREST
 EXPENSE               2,157    2,170     -0.6%    8,757    7,330     19.5%

INVESTMENTS-REALIZED
 GAINS / (LOSSES)        107        -      n/a     1,383       51   2611.8%
INVESTMENTS - OTHER
 THAN TEMPORARY
 IMPAIRMENT             (300)       -      n/a    (1,500)       -      n/a
OREO VALUATION
 ADJUSTMENTS &
 GAINS/(LOSSES) ON
 SALES - NET          (1,137)      (4) 28325.0%   (1,828)      30  -6193.3%
                    --------  -------  -------  --------  -------  -------

INCOME (LOSS)
 BEFORE PROVISION
 FOR INCOME TAXES     (3,122)    (952)   227.9%   (9,315)   1,940   -580.2%

PROVISION (BENEFIT)
 FOR INCOME TAXES     (1,332)    (396)   236.4%   (3,797)     629   -703.7%
                    --------  -------  -------  --------  -------  -------

NET INCOME (LOSS)   $ (1,790) $  (556)   221.9% $ (5,518) $ 1,311   -520.9%
                    ========  =======  =======  ========  =======  =======

Earnings (Loss) per
 share - Basic      $  (0.57) $ (0.18)          $  (1.76) $  0.43

Earnings (Loss) per
 share - Diluted    $  (0.57) $ (0.18)          $  (1.76) $  0.42

Return on average
 equity               -34.29%  -10.58%            -24.85%    5.61%
Return on average
 assets                -1.86%   -0.57%             -1.41%    0.34%
Net interest margin     2.45%    2.47%              2.51%    3.54%
Efficiency ratio        98.9%    97.7%              95.9%    54.5%

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