SOURCE: Columbia Commercial Bancorp

Columbia Commercial Bancorp

January 27, 2012 17:12 ET

Columbia Commercial Bancorp Reports Fourth Quarter and Full Year 2011 Results

HILLSBORO, OR--(Marketwire - Jan 27, 2012) - Columbia Commercial Bancorp (OTCBB: CLBC), a single bank holding company for Columbia Community Bank (the Bank), reports a net profit of $160,000, or $0.05 per diluted share for the fourth quarter of 2011 compared to a net profit of $121,000, or $0.04 per diluted share for the third quarter. For the full year ended December 31, 2011, net income was $184,000, or $0.05 per diluted share compared to a net loss of $1.1 million, or ($0.36) per diluted share for the same twelve month period in 2010.

"The Company is very pleased with all the recent trends which include net profits for three of the past four quarters, a year-to-date profit for 2011 after two years of losses, significantly reduced exposure to the residential construction market, reduced non-performing assets, reduced reliance on non-core funding, increased capital ratios, increasing net interest income and margin, and reduced loan loss provisions and other troubled asset related expenses," states the Company's President and CEO, Rick A. Roby. And he continues, "And we are confident these trends are not merely short term in nature, but that they are all signs of a strengthening Company leading into 2012 and beyond."

Assets

Total assets as of December 31, 2011 at $352.6 million were down $11.7 million, or 3.2%, over the quarter as the Company utilized low yielding excess cash and securities to retire $10.1 million in brokered certificates and other non-local deposits while also reducing outstanding OREO by almost $2.0 million. When compared to total assets of $358.5 million as of December 31, 2010, assets are down $5.9 million, or 1.6%, over this past year as the Company decreased loans by $6.5 million and outstanding OREO by $2.6 million while increasing its liquidity via cash and investments by $3.4 million. The Company's Chief Financial Officer, Bob Ekblad, states, "And moving forward into 2012 we will continue to reduce some of the Bank's low-yielding excess liquidity and reduce OREO and other non-performing assets to pay down even more high cost non-core deposits and debt which will of course benefit the Company's earnings in 2012 as it did throughout 2011."

Total loans at $238.4 million as of December 31, 2011 are down $1.6 million over the past quarter and are down $6.5 million, or 2.6%, when compared to the $244.9 million outstanding as of December 31, 2010. "The reduction in overall loans is the result of our continued strategy to reduce residential construction and land development loans," states Fred Johnson, the Company's Chief Credit Officer. As of December 31, 2011 construction and land development loans totaled $34.4 million, or 14.4% of the Bank's total loans which is a reduction of $10.1 million over the past quarter as they totaled $44.5 million at September 30, 2011, and is a reduction of $14.6 million, or 29.8%, over the year when compared to the $49.0 million, or 20.0% of total loans as of December 31, 2010. And Mr. Johnson adds, "And the Bank continues to be successful with its additional goal of growing the other segments of its loan portfolio as together they grew by almost $8.1 million, or 4.1% over the year."

The Bank had $388,000 in net charge-offs over the quarter reducing the allowance for loan losses to $7.1 million, or 2.97% of loans as of December 31, 2011 compared to $7.5 million, or 3.11% of loans as of September 30, 2011. During the year the Bank had $2.4 million in charge-offs, $588,000 in recoveries and a $1.4 million loan loss provision expense which accounts for the change from the $7.5 million balance in the allowance for loan losses, or 3.07% of loans, as of December 31, 2010. Net loan charge-offs of $1.8 million for 2011 are down considerably when compared to the $3.9 million for 2010 and the $4.7 million in net charge-offs during 2009.

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 $19.0 million as of December 31, 2011 compared to $24.4 million as of September 30, 2011 and $22.1 million the prior year-end. The $5.4 million reduction in non-performing assets over this past quarter relate to a $1.9 million reduction in OREO from a variety of property sales and a $3.5 million reduction from pay downs in non-performing construction loans. "Despite a difficult, but somewhat improving real estate market, the Bank has and continues to actively and aggressively work through its non-performing assets which are almost exclusively derived from problematic construction and land development loans," states Mr. Johnson. During 2011, the Bank reduced OREO by $4.9 million through the full or partial sales within 15 different projects at a net gain of $114,000. Within the $8.4 million OREO balance as of December 31, 2011, the Bank has 15 various projects ranging in value from $31,000 for a single lot to $4.8 million for a significant development in southern Oregon.

Deposits

"The Bank continues to reduce its reliance on brokered and nontraditional out-of-area deposits while expanding and penetrating deeper into its local core deposit base," stated Mr. Ekblad. Total deposits for the Bank at $239.1 million as of December 31, 2011 are down 4.7% or $11.9 million for the fourth quarter and 5.4% or $13.7 million for the year, but during the fourth quarter the Bank reduced its brokered and non-traditional out-of-area deposits by $10.1 million and year-to-date they have been reduced by over $25.3 million. "And while this reduction in non-core deposits is causing overall total deposits to go down, this shouldn't overshadow our successes with local deposits which grew by almost $12.0 million over the past year," continued Mr. Ekblad. As of December 31, 2011, the Bank had $15.0 million in brokered deposits compared to $27.7 million as of December 31, 2010 and $57.1 million as of December 31, 2009. The Bank has $9.9 million in brokered deposits that mature throughout 2012 which will not be renewed.

Earnings

"The Company's construction loan portfolio continues to shrink and after beginning to see some recent signs of stabilization in our local real estate markets and therefore with our construction related loans, the Company did not take any loan loss provision expense for the past two quarters. This has led not only to positive returns for these two quarters, but also for the year," states Mr. Roby. The Company is reporting net income of $160,000 for the most recent quarter ended December 31, 2011 compared to $121,000 for the prior quarter ended September 30, 2011. And for the full-year ended December 31, 2011, the Company is reporting a net income of $184,000 after a loan loss provision expense of $1.4 million compared to the full-year 2010 when the Company reported a net loss of $1.1 million after $2.5 million in loan loss provision expense.

Net interest income has been very consistent for the past two quarters at $2.4 million each and at $9.4 million for the full year of 2011, it is $579,000, or 6.6% above the $8.8 million for 2010. "Interest income on earning assets is down for the quarter and this year as outstanding loans are down modestly and earnings on investments and the Bank's excess liquidity are negligible. However, this has been more than offset by the reduction in interest expense brought on by the decrease in higher costing brokered deposits and other deposit repricing opportunities," states Mr. Ekblad. Net interest margin for fourth quarter 2011 at 3.08% is very consistent with the 3.09% for the prior third quarter of 2011 and at 3.08% for the full year, it is 31 basis points higher than in 2010 when it was 2.77%.

Non-interest income was consistent for the fourth and third quarter of 2011 at $155,000 each and up by $146,000, or 29.3% for the full year 2011 where it was $645,000 compared to $499,000 for 2010. This change in non-interest income comes primarily from increased rental income on the Bank's OREO properties. Non-interest expense of $2.2 million for the fourth quarter of 2011 is also relatively consistent with the prior third quarter while for the full year of 2011 non-interest expense at $8.8 million is $146,000, or 1.7%, higher than the $8.7 million for 2010. Expenses related to troubled assets which include legal, foreclosure, and OREO expenses were $210,000 for the fourth quarter compared to $336,000 in the third quarter and for the entire 2011 year were just over $1.0 million compared to $792,000 for 2010. As evidenced during this most recent quarter, these expenses are expected to be down considerably in 2012 as the Bank reduces its level of non-performing assets.

Capital

The Bank's capital ratios grew during 2011 from increased retained profits and the reduction of assets but this was somewhat mitigated by an increase in the disallowed deferred tax asset for regulatory capital calculation purposes. The Bank's leverage ratio and total risk-based capital ratios were 7.63% and 11.42% as of December 31, 2011 compared to 7.53% and 11.19% as of December 31, 2010, 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 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 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)
December 31, % Change September 30, % Change
2011 2010 2011 vs. 2010 2011 Quarter
ASSETS
Cash & due from banks $ 25,982 $ 18,743 38.6 % $ 35,120 -26.0 %
Federal funds sold 10,000 9,995 0.1 % 5,000 100.0 %
Investment securities - available for sale 58,417 62,261 -6.2 % 61,992 -5.8 %
Investments - Other 2,307 2,401 -3.9 % 2,307 0.0 %
Gross loans 238,403 244,868 -2.6 % 239,968 -0.7 %
Allowance for loan losses (7,083 ) (7,525 ) -5.9 % (7,471 ) -5.2 %
Net loans 231,320 237,343 -2.5 % 232,497 -0.5 %
Other real estate owned 8,408 11,051 -23.9 % 10,370 -18.9 %
Other assets 16,174 16,704 -3.2 % 17,055 -5.2 %
Total Assets $ 352,608 $ 358,498 -1.6 % $ 364,341 -3.2 %
LIABILITIES
Deposits $ 239,083 $ 252,816 -5.4 % $ 250,940 -4.7 %
Repurchase agreements 26,722 19,893 34.3 % 26,692 0.1 %
Federal funds purchased - - 0.0 % - 0.0 %
FHLB borrowings 52,635 52,635 0.0 % 52,635 0.0 %
Other borrowings 4,513 4,453 1.3 % 4,457 1.3 %
Junior subordinated debentures 8,248 8,248 0.0 % 8,248 0.0 %
Other liabilities 3,433 3,110 10.4 % 3,560 -3.6 %
Total Liabilities 334,634 341,155 -1.9 % 346,532 -3.4 %
STOCKHOLDERS' EQUITY 17,974 17,343 3.6 % 17,809 0.9 %
Total Liabilities and Stockholders' Equity $ 352,608 $ 358,498 -1.6 % $ 364,341 -3.2 %
Shares outstanding at end-of-period 3,151,581 3,145,081 3,151,581
Book value per share $ 5.70 $ 5.51 $ 5.65
Allowance for loan losses to total loans 2.97 % 3.07 % 3.11 %
Non-performing assets (non-accrual loans & OREO) $ 18,984 $ 22,134 $ 24,446
Bank Tier 1 leverage ratio (5% minimum for "well-capitalized") 7.63 % 7.53 % 7.38 %
Bank Tier 1 risk-based capital ratio (6% minimum for "well-capitalized") 10.15 % 9.92 % 9.66 %
Bank Total risk-based capital ratio (10% minimum for "well-capitalized") 11.42 % 11.19 % 10.92 %

Consolidated Statement of Operations
Unaudited
(amounts in 000's, except per share data and ratios)
Three Months Ending Twelve Months Ending
12/31/2011 9/30/2011 % Change 12/31/2011 12/31/2010 % Change
INTEREST INCOME
Loans $ 3,581 $ 3,676 -2.6 % $ 14,649 $ 15,439 -5.1 %
Investments 241 277 -13.0 % 1,171 1,711 -31.6 %
Federal funds sold and other 17 19 -10.5 % 65 86 -24.4 %
Total interest income 3,839 3,972 -3.3 % 15,885 17,236 -7.8 %
INTEREST EXPENSE
Deposits 689 821 -16.1 % 3,359 5,316 -36.8 %
Repurchase agreements and federal funds purchased 74 87 -14.9 % 329 329 0.0 %
FHLB borrowings 536 535 0.2 % 2,125 2,125 0.0 %
Other borrowings 120 121 -0.8 % 483 460 5.0 %
Junior subordinated debentures 61 59 3.4 % 238 234 1.7 %
Total interest expense 1,480 1,623 -8.8 % 6,534 8,464 -22.8 %
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES 2,359 2,349 0.4 % 9,351 8,772 6.6 %
PROVISION FOR LOAN LOSSES - - 0.0 % 1,350 2,500 -46.0 %
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 2,359 2,349 0.4 % 8,001 6,272 27.6 %
NON-INTEREST INCOME 155 155 0.0 % 645 499 29.3 %
NON-INTEREST EXPENSE 2,194 2,261 -3.0 % 8,844 8,698 1.7 %
INVESTMENTS- REALIZED GAINS / (LOSSES) - - 0.0 % 603 643 -6.2 %
INVESTMENTS - OTHER THAN TEMPORARY IMPAIRMENT (25 ) - n/a (25 ) (375 ) -93.3 %
OREO VALUATION ADJUSTMENTS & GAINS/(LOSSES) ON SALES - NET (8 ) (93 ) -91.4 % (188 ) (393 ) -52.2 %
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES 287 150 192 (2,052 )
PROVISION (BENEFIT) FOR INCOME TAXES 127 29 8 (919 )
NET INCOME (LOSS) $ 160 $ 121 $ 184 $ (1,133 )
Earnings (Loss) per share - Basic $ 0.05 $ 0.04 $ 0.06 $ (0.36 )
Earnings (Loss) per share - Diluted $ 0.05 $ 0.04 $ 0.05 $ (0.36 )
Return on average equity 3.54 % 2.67 % 1.03 % -6.14 %
Return on average assets 0.18 % 0.13 % 0.05 % -0.30 %
Net interest margin 3.08 % 3.09 % 3.08 % 2.77 %
Efficiency ratio 87.3 % 90.3 % 88.5 % 93.8 %

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