SOURCE: Columbia Commercial Bancorp

Columbia Commercial Bancorp

July 31, 2009 16:50 ET

Columbia Commercial Bancorp Reports Second Quarter 2009 Results

HILLSBORO, OR--(Marketwire - July 31, 2009) - Columbia Commercial Bancorp (OTCBB: CLBC), a single bank holding company for Columbia Community Bank, reports financial results for the three and six month periods ended June 30, 2009. For the three months ended June 30, 2009, net loss was $3.6 million, or $1.16 per diluted share, compared to net income of $471,000 for the first quarter of 2009, or $0.15 per diluted share, and $228,000, or $0.07 per diluted share for the second quarter of 2008. For the six months ended June 30, 2009, net loss was $3.2 million, or $1.01 per diluted share compared to net income of $1.1 million or $0.36 per diluted share for the same six month period in 2008.

Rick A. Roby, President and Chief Executive Officer, commented, "Earnings suffered due to an increased loan loss provision expense of $4.3 million during the quarter and a $687,000 write-down in the valuation of bank-owned property (OREO) due to the continued deterioration of the region's residential real estate market. The second quarter was also adversely impacted by recognizing an other-than-temporary-impairment (OTTI) expense of $1.2 million for a security within the Bank's investment portfolio." Roby continues, "While the security write-down adversely affected current financial results, it had no effect on the Bank's regulatory capital. The Bank also incurred a $185,000 expense this quarter related to an industry wide FDIC special assessment. Taking all these factors into consideration, and according to regulatory definitions, the Bank still remains "well-capitalized" with a total risk-based capital ratio of 10.53% compared to 10.64% at the end of 2008."

The Bank's year-to-date loan loss provision for the six months ending June 30, 2009 was $4.9 million compared to $1.7 million for the same period in 2008. With 2009 year-to-date net charge-offs of $3.7 million, the allowance for loan losses has increased to $7.0 million, or 2.40% of loans as of June 30, 2009, relative to $5.8 million or 1.85% of loans as of December 31, 2008. "The Bank continues to be successful in reducing its residential construction and land development loan concentrations and is also working diligently through its non-performing assets, but the legal procedures to obtain control of collateral on non-performing loans is a lengthy process and with today's weak economic conditions, property liquidations remain slow," states Fred Johnson, the Bank's Chief Credit Officer. Mr. Johnson continues, "While non-performing assets at the end of this quarter exceeded those outstanding at the end of 2008, over this past quarter the Bank has begun to see some stabilization and an actual decrease in non-performing loans." Non-performing assets (loans not accruing interest and other real-estate owned acquired from troubled loans) were $30.2 million as of June 30, 2009, down $1.0 million from March 31, 2009, or up $8.1 million from the December 31, 2008 amount of $22.1 million. Outstanding real estate construction and land development loans have decreased $29.3 million over the past six months to $86.7 million as of June 30, 2009 when compared to $116.0 million at December 31, 2008 and are down $46.3 million over the past twelve months when compared to the $133.0 million in outstandings as of June 30, 2008.

Net interest margin decreased 17 basis points, from 2.63% for the first quarter of 2009 to 2.46% for the second quarter. For the six months ending June 30, 2009, net interest margin was 2.55% compared to 3.80% for the same six month period of 2008. Bob Ekblad, the Bank's Chief Financial Officer, notes, "Net interest margin continues to be adversely affected by the Bank's level of non-performing assets, reduced loan origination fees, and the generally low overall interest rate environment. But as we move forward, net interest margin will benefit from the continued re-pricing of higher cost time deposits as they mature." Ekblad continues, "In other operating areas the Bank is striving to strengthen its performance. Non-interest income levels are flat and while non-interest expense has been increasing overall due to problem loan related expenses and increased FDIC insurance premiums, the Bank has been successful at reducing personnel along with premises and fixed asset related expenses by almost $250,000 when comparing the first six months of 2009 to 2008."

Rick A. Roby concludes with, "The lagging economy and the continually depressed real estate market make it difficult for the Bank to quickly rid itself of its problem assets which continue to adversely impact operating results. With this past quarter's increase in the allowance for loan losses and the write-down of a security impairment while continually reducing the amount of residential construction and land development loans outstanding, we feel that employees, management and the Board are properly positioning the Bank for the years ahead."

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 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    % Change
                           June 30,         2009 vs.     30,      Year-to-
                       2009       2008       2008       2008       Date
                     ---------  ---------  ---------  ---------  ---------

ASSETS
  Cash & due from
   banks             $  31,929  $   5,877      443.3% $   9,274      244.3%
  Federal funds sold    10,000         22    45354.5%     8,739       14.4%
  Investment
   Securities -
   Available for
   Sale                 40,140     52,606      -23.7%    54,606      -26.5%
  Investments -
   Other                 2,646      2,934       -9.8%     2,857       -7.4%

  Gross loans          292,049    309,193       -5.5%   315,150       -7.3%
  Allowance for loan
   losses               (7,005)    (4,679)      49.7%    (5,839)      20.0%
                     ---------  ---------  ---------  ---------  ---------
    Net loans          285,044    304,514       -6.4%   309,311       -7.8%

  Other real estate
   owned                 5,298          -        n/a      3,454       53.4%
  Other assets          16,539     13,902       19.0%    14,231       16.2%
                     ---------  ---------  ---------  ---------  ---------

    Total Assets     $ 391,596  $ 379,855        3.1% $ 402,472       -2.7%
                     =========  =========  =========  =========  =========

LIABILITIES
  Deposits           $ 284,389  $ 268,884        5.8% $ 288,936       -1.6%
  Repurchase
   agreements           16,750     14,352       16.7%    15,810        5.9%
  Federal funds
   purchased                 -      1,615        0.0%         -        0.0%
  FHLB borrowings       56,635     60,135       -5.8%    59,135       -4.2%
  Other borrowings       1,774      1,860       -4.6%     1,819       -2.5%
  Junior
   subordinated
   debentures            8,248      8,248        0.0%     8,248        0.0%
  Other liabilities      3,183      2,410       32.1%     4,923      -35.3%
                     ---------  ---------  ---------  ---------  ---------
    Total
     Liabilities       370,979    357,504        3.8%   378,871       -2.1%

STOCKHOLDERS' EQUITY    20,617     22,351       -7.8%    23,601      -12.6%
                     ---------  ---------  ---------  ---------  ---------
    Total
     liabilities and
     stockholders'
     equity          $ 391,596  $ 379,855        3.1% $ 402,472       -2.7%
                     =========  =========  =========  =========  =========

Shares outstanding
 at end-of-period    3,142,581  3,038,636             3,126,081
Book value per share $    6.56  $    7.36             $    7.55
Allowance for loan
 losses to total
 loans                    2.40%      1.51%                 1.85%
Non-performing
 assets (non-accrual
 loans & OREO)       $  30,162  $   5,763             $  22,058

Tier 1 leverage
 ratio (5% minimum
 for
 "well-capitalized")      7.64%      8.53%                 8.42%
Tier 1 risk-based
 capital ratio (6%
 minimum for
 "well-capitalized")      9.29%      9.36%                 9.38%
Total risk-based
 capital ratio (10%
 minimum for
 "well-capitalized")     10.53%     10.61%                10.64%



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


               Three Months Ending             Six Months Ending
               --------------------           --------------------
                                        %                             %
               6/30/2009  3/31/2009  Change   6/30/2009  6/30/2008  Change
               ---------  ---------  -------  ---------  ---------  ------
INTEREST
 INCOME
   Loans       $   4,483  $   4,647     -3.5% $   9,130  $  11,594   -21.3%
   Investments       279        466    -40.1%       745      1,564   -52.4%
   Federal
    funds sold
    and other         32         40    -20.0%        72         44    63.6%
               ---------  ---------  -------  ---------  ---------  ------
      Total
       interest
       income      4,794      5,153     -7.0%     9,947     13,202   -24.7%
               ---------  ---------  -------  ---------  ---------  ------

INTEREST
 EXPENSE
   Deposits        1,971      2,022     -2.5%     3,993      4,561   -12.5%
   Repurchase
    agreements
    and federal
    funds
    purchased         39         45    -13.3%        84        271   -69.0%
   FHLB
    borrowings       569        581     -2.1%     1,150      1,205    -4.6%
   Other
    borrowings        32         33     -3.0%        65         69    -5.8%
   Junior
    subordinated
    debentures        77         86    -10.5%       163        259   -37.1%
               ---------  ---------  -------  ---------  ---------  ------
      Total
       interest
       expense     2,688      2,767     -2.9%     5,455      6,365   -14.3%
               ---------  ---------  -------  ---------  ---------  ------

NET INTEREST
 INCOME BEFORE
 PROVISION FOR
 LOAN LOSSES       2,106      2,386    -11.7%     4,492      6,837   -34.3%

PROVISION FOR
 LOAN LOSSES       4,325        600    620.8%     4,925      1,730   184.7%
               ---------  ---------  -------  ---------  ---------  ------

NET INTEREST
 INCOME AFTER
 PROVISION FOR
 LOAN LOSSES      (2,219)     1,786   -224.2%      (433)     5,107  -108.5%

NON-INTEREST
 INCOME              117        116      0.9%       233        234    -0.4%

NON-INTEREST
 EXPENSE           2,375      2,055     15.6%     4,430      3,645    21.5%

INVESTMENTS -
 REALIZED
 GAINS /
 (LOSSES)            403        873    -53.8%     1,276         40  3090.0%
INVESTMENTS -
 OTHER THAN
 TEMPORARY
 IMPAIRMENT       (1,200)         -      n/a     (1,200)         -     n/a
OREO VALUATION
 ADJUSTMENTS &
 GAINS/LOSS ON
 SALES - NET        (687)         -      n/a       (687)         -     n/a
               ---------  ---------  -------  ---------  ---------  ------

INCOME BEFORE
 PROVISION FOR
 INCOME TAXES     (5,961)       720   -927.9%    (5,241)     1,736  -401.9%

PROVISION
 (BENEFIT) FOR
 INCOME TAXES     (2,318)       249  -1030.9%    (2,069)       608  -440.3%
               ---------  ---------  -------  ---------  ---------  ------

NET INCOME     $  (3,643) $     471   -873.5% $  (3,172) $   1,128  -381.2%
               =========  =========  =======  =========  =========  ======

Earnings per
 share - Basic $   (1.16) $    0.15           $   (1.01) $    0.37

Earnings per
 share -
 Diluted       $   (1.16) $    0.15           $   (1.01) $    0.36

Return on
 average
 equity           -62.91%      8.11%             -27.36%      9.66%
Return on
 average
 assets            -3.69%      0.48%              -1.61%      0.60%
Net interest
 margin             2.46%      2.63%               2.55%      3.80%
Efficiency
 ratio             106.8%      82.2%               93.8%      51.6%

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