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Columbia Commercial Bancorp Reports First Quarter 2014 Results
HILLSBORO, OR--(Marketwired - Apr 23, 2014) - Columbia Commercial Bancorp (OTCBB: CLBC), a single bank holding company for Premier Community Bank (the Bank), reports a net profit of $258,000, or $0.05 per diluted share for the first quarter of 2014 compared to a net profit of $368,000, or $0.10 per diluted share for the first quarter of 2013.
"The Bank continues to reduce its non-performing assets and has eliminated all brokered deposits while also reducing reliance on other non-traditional out-of-area deposits which have had a positive effect on net interest income and earnings. And while operating expenses have been elevated the past few quarters in regards to problem assets and the Bank's recent name change, the Company is well positioned for growth and continued profitability in the year ahead," stated the Company's President and CEO, Rick A. Roby.
Earnings
Interest income on loans at $3.3 million for first quarter 2014 was consistent with the first quarter 2013 amount but continues to be pressured by competition and the low interest rate environment which affects pricing on new relationships as well as scheduled loan repricings. However, with a reduction in non-accrual loans, increased investment income, collection of back interest on non-performing loans, and reduced deposit interest expense (due to the elimination of higher-costing brokered deposits and the reduction of non-traditional out-of-area deposits), net interest income at $2.7 million for first quarter 2014 was 8.4% higher than the $2.5 million for first quarter 2013. Net interest margin for first quarter 2014 was 3.60% compared to 3.39% for first quarter 2013 and 3.27% for fourth quarter 2013.
Non-interest income at $153,000 for first quarter 2014 was relatively unchanged relative to prior periods. Non-interest expense for first quarter 2014 was up $193,000 compared to first quarter 2013 due to increased personnel costs along with advertising and other costs related to changing the name of the Bank. Expenses related to troubled assets were just over $140,000 for both the first quarters of 2014 and 2013. Compared to fourth quarter 2013, non-interest expense for first quarter 2014 was down $212,000 as a result of reductions in name change and troubled asset related expenses.
Assets
Total assets as of March 31, 2014 at $332.5 million were an increase of $2.2 million, or 0.7%, when compared to the $330.3 million as of March 31, 2013. Over the past year, a decrease of $4.8 million in cash and equivalents was offset by an increase in investments of $5.3 million and an increase in net loans of $2.0 million. The increase in overall loans was attributable to an increase in commercial real estate loans which at $115.3 million, or 46.5% of the loan portfolio, were up $9.2 million or 8.7% compared to the $106.1 million, or 43.0% of total loans, as of March 31, 2013. Commercial and Industrial (C&I) loans of $74.5 million, or 30.1% of the Bank's total loans as of March 31, 2014, were consistent with the amounts from a year ago. Real estate acquisition, development, and construction loans continued their decline as outstandings at March 31, 2014 were $25.0 million, or 10.1%, of total loans, and were down $11.3 million when compared to the $36.3 million, or 14.7% of total loans as of March 31, 2013. In regard to this reduction in construction loans, the Company's Chief Credit Officer, Fred Johnson comments, "Over these past twelve months, the Bank continued to work through a number of problematic residential construction and development loans which has led to a continued reduction in this portfolio, however in this process almost all have come to final resolution and as of March 31, 2014, substantially all of the Bank's construction and development loans were fully performing."
For first quarter 2014, the Bank had $118,000 in loan recoveries relative to $21,000 in charge-offs, or $97,000 in net recoveries. For the full-year of 2013, the Bank had $309,000 in loan recoveries relative to $290,000 in charge-offs, or net recoveries of $19,000. The allowance for loan losses as of March 31, 2014 at $5.5 million, or 2.23% of total loans, was consistent with the December 31, 2013 amounts, but below the $6.2 million, or 2.51% of loans, at this time last year due to the Bank's $750,000 reverse loan loss provision taken during fourth quarter 2013. The Bank had no loan loss provision expense for first quarter 2014 or 2013.
As of March 31, 2014 and for December 31, 2013, 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 combined to $13.1 million, or 3.94% of total assets, as of March 31, 2014 compared to $15.3 million, or 4.62% as of March 31, 2013. As of March 31, 2014 the Bank had $6.2 million in loans on nonaccrual status which consisted of six relationships (for which one borrower accounted for $5.1 million of this amount). OREO as of March 31, 2014 consisted of 13 projects/properties with carrying amounts ranging from $17,000 to $2.9 million and totaled $6.9 million in aggregate.
Deposits
Total deposits for the Bank at $234.0 million as of March 31, 2014 were consistent with deposits at year-end 2013 and were up $2.0 million, or 0.8% when compared to the $232.0 million as of March 31, 2013. And the Company's Chief Financial Officer, Bob Ekblad, states, "The Bank continues to focus considerable energies and resources on core deposit growth and reducing its reliance on non-core funding which is evident by its elimination of all brokered deposits while continuing to reduce the levels of other non-traditional out-of-area deposits." As of March 31, 2014 the Bank had no brokered deposits and $39.3 million of non-traditional out-of-area deposits compared to March 31, 2013 when brokered deposits were $5.0 million and other non-traditional out-of-area deposits were $50.0 million. And Mr. Ekblad adds, "We continue to see successes in core deposit acquisition as they have increased almost $18.0 million over the past twelve months."
Equity, Capital, and Regulatory Matters
With retained earnings and $6.1 million in net proceeds from a stock offering during third quarter 2013, stockholders' equity for the Company at $29.2 million as of March 31, 2014 increased $7.4 million, or 33.7%, when compared to the $21.8 million as of March 31, 2013. And at the Bank, capital levels continue to increase from retained earnings, a $4.4 million capital injection from the Company as a result of the third quarter 2013 stock offering, and some continued deleveraging (primarily from a reduction in low yielding excess cash). The Bank's leverage ratios and total risk-based capital ratios as of March 31, 2014 were 10.93% and 14.33%, respectively, compared to 9.39% and 12.47% as of March 31, 2013.
And as a result of continued reductions in problem assets, increased capital levels, and improved earnings, effective April 10, 2014, Premier Community Bank was released from its Regulatory Consent Order originally entered into in March 2009.
About Columbia Commercial Bancorp:
Information about the Company's stock may be obtained through the OTCQB marketplace at www.otcmarkets.com. Columbia Commercial Bancorp's stock symbol is CLBC.
Columbia Commercial Bancorp was formed in 2002 as a holding company for Premier Community Bank, the new name 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 for 2009, 2011, 2012, and 2013.
For more information about Columbia Commercial Bancorp, or its subsidiary Premier Community Bank, call (503) 693-7500 or visit our website at www.pcboregon.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.
Consolidated Balance Sheet | ||||||||||||||||||||
March 31, | % Change | December 31, | % Change | |||||||||||||||||
2014 | 2013 | 2014 vs. 2013 | 2013 | Quarter | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash & due from banks | $ | 22,756 | $ | 27,564 | -17.4 | % | $ | 27,602 | -17.6 | % | ||||||||||
Federal funds sold | - | - | 0.0 | % | - | 0.0 | % | |||||||||||||
Investment Securities - Available for Sale | 42,901 | 37,585 | 14.1 | % | 39,471 | 8.7 | % | |||||||||||||
Investments - Other | 2,129 | 2,207 | -3.5 | % | 2,149 | -0.9 | % | |||||||||||||
Gross loans | 247,753 | 246,458 | 0.5 | % | 248,434 | -0.3 | % | |||||||||||||
Allowance for loan losses | (5,519 | ) | (6,196 | ) | -10.9 | % | (5,422 | ) | 1.8 | % | ||||||||||
Net loans | 242,234 | 240,262 | 0.8 | % | 243,012 | -0.3 | % | |||||||||||||
Other real estate owned | 6,942 | 7,344 | -5.5 | % | 7,598 | -8.6 | % | |||||||||||||
Other assets | 15,570 | 15,346 | 1.5 | % | 15,294 | 1.8 | % | |||||||||||||
Total Assets | $ | 332,532 | $ | 330,308 | 0.7 | % | $ | 335,126 | -0.8 | % | ||||||||||
LIABILITIES | ||||||||||||||||||||
Deposits | $ | 233,996 | $ | 232,048 | 0.8 | % | $ | 234,082 | 0.0 | % | ||||||||||
Repurchase agreements | 14,155 | 20,452 | -30.8 | % | 16,530 | -14.4 | % | |||||||||||||
Federal funds purchased | - | - | 0.0 | % | - | 0.0 | % | |||||||||||||
FHLB borrowings | 41,000 | 41,000 | 0.0 | % | 41,000 | 0.0 | % | |||||||||||||
Other borrowings | 2,435 | 2,550 | -4.5 | % | 2,465 | -1.2 | % | |||||||||||||
Junior subordinated debentures | 8,248 | 8,248 | 0.0 | % | 8,248 | 0.0 | % | |||||||||||||
Other liabilities | 3,511 | 4,174 | -15.9 | % | 4,355 | -19.4 | % | |||||||||||||
Total Liabilities | 303,345 | 308,472 | -1.7 | % | 306,680 | -1.1 | % | |||||||||||||
STOCKHOLDERS' EQUITY | 29,187 | 21,836 | 33.7 | % | 28,446 | 2.6 | % | |||||||||||||
Total Liabilities and Stockholders' Equity | $ | 332,532 | $ | 330,308 | 0.7 | % | $ | 335,126 | -0.8 | % | ||||||||||
Shares outstanding at end-of-period | 5,535,974 | 3,775,752 | 5,535,974 | |||||||||||||||||
Book value per share | $ | 5.27 | $ | 5.78 | $ | 5.14 | ||||||||||||||
Allowance for loan losses to total loans | 2.23 | % | 2.51 | % | 2.18 | % | ||||||||||||||
Non-performing assets (non-accrual loans & OREO) | $ | 13,105 | $ | 15,287 | $ | 15,136 | ||||||||||||||
Bank Tier 1 leverage ratio | 10.93 | % | 9.39 | % | 10.65 | % | ||||||||||||||
Bank Tier 1 risk-based capital ratio | 13.07 | % | 11.21 | % | 12.97 | % | ||||||||||||||
Bank Total risk-based capital ratio | 14.33 | % | 12.47 | % | 14.23 | % | ||||||||||||||
Consolidated Statement of Operations | ||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||
3/31/2014 | 3/31/2013 | % Change | 12/31/2013 | % Change | ||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||
Loans | $ | 3,326 | $ | 3,328 | -0.1 | % | $ | 3,211 | 3.6 | % | ||||||||||
Investments | 195 | 139 | 40.3 | % | 180 | 8.3 | % | |||||||||||||
Federal funds sold and other | 16 | 10 | 60.0 | % | 15 | 6.7 | % | |||||||||||||
Total interest income | 3,537 | 3,477 | 1.7 | % | 3,406 | 3.8 | % | |||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||
Deposits | 285 | 417 | -31.7 | % | 303 | -5.9 | % | |||||||||||||
Repurchase agreements and federal funds purchased | 9 | 27 | -66.7 | % | 12 | -25.0 | % | |||||||||||||
FHLB borrowings | 408 | 408 | 0.0 | % | 417 | -2.2 | % | |||||||||||||
Other borrowings | 48 | 50 | -4.0 | % | 49 | -2.0 | % | |||||||||||||
Junior subordinated debentures | 62 | 61 | 1.6 | % | 62 | 0.0 | % | |||||||||||||
Total interest expense | 812 | 963 | -15.7 | % | 843 | -3.7 | % | |||||||||||||
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES | 2,725 | 2,514 | 8.4 | % | 2,563 | 6.3 | % | |||||||||||||
PROVISION FOR LOAN LOSSES | - | - | 0.0 | % | (750 | ) | -100.0 | % | ||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 2,725 | 2,514 | 8.4 | % | 3,313 | -17.7 | % | |||||||||||||
NON-INTEREST INCOME | 153 | 144 | 6.3 | % | 145 | 5.5 | % | |||||||||||||
NON-INTEREST EXPENSE | 2,440 | 2,247 | 8.6 | % | 2,652 | -8.0 | % | |||||||||||||
NON-RECURRING SETTLEMENT | - | - | 0.0 | % | 900 | -100.0 | % | |||||||||||||
INVESTMENTS- REALIZED GAINS / (LOSSES) | - | - | 0.0 | % | - | 0.0 | % | |||||||||||||
OREO VALUATION ADJUSTMENTS & GAINS/(LOSSES) ON SALES - NET | (64 | ) | 137 | -146.7 | % | (1,831 | ) | -96.5 | % | |||||||||||
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | 374 | 548 | -31.8 | % | (125 | ) | -399.2 | % | ||||||||||||
PROVISION (BENEFIT) FOR INCOME TAXES | 116 | 180 | -35.6 | % | (77 | ) | -250.6 | % | ||||||||||||
NET INCOME (LOSS) | $ | 258 | $ | 368 | -29.9 | % | $ | (48 | ) | -637.5 | % | |||||||||
Earnings (Loss) per share - Basic | $ | 0.05 | $ | 0.10 | $ | (0.01 | ) | |||||||||||||
Earnings (Loss) per share - Diluted | $ | 0.05 | $ | 0.10 | $ | (0.01 | ) | |||||||||||||
Return on average equity | 3.62 | % | 6.89 | % | -0.67 | % | ||||||||||||||
Return on average assets | 0.31 | % | 0.46 | % | -0.06 | % | ||||||||||||||
Net interest margin | 3.60 | % | 3.39 | % | 3.27 | % | ||||||||||||||
Efficiency ratio | 84.8 | % | 84.5 | % | 97.9 | % | ||||||||||||||
