COLUMBIA, Md., Oct. 19 /PRNewswire-FirstCall/ -- Columbia Bancorp
(NASDAQ:CBMD), parent company of The Columbia Bank (the "Bank"),
today announced net income for the nine months ended September 30,
2005 of $11.84 million compared to $9.61 million for the same
period during 2004, an increase of 23.1%. Fully diluted earnings
per share increased 26.2%, from $1.30 for the first nine months of
2004 to $1.64 in 2005. Returns on average equity were 17.32% and
14.50% for the nine months ended September 30, 2005 and 2004,
respectively. Return on average assets was 1.27% for the nine
months ended September 30, 2005 compared to 1.19% for the same
period in 2004. Net income for the third quarter 2005 totaled $4.17
million compared to $3.52 million for the third quarter 2004, an
18.4% increase. Fully diluted earnings per share for the quarter
increased 20.8% to $.58 for 2005 compared to $.48 for 2004. Returns
on average equity for the third quarter 2005 and 2004 were 17.73%
and 15.60%, respectively. Returns on average assets for the third
quarter 2005 and 2004 were 1.29% and 1.24%, respectively. THIRD
QUARTER FINANCIAL HIGHLIGHTS - Net interest income (FTE) increased
$2.73 million, or 22.9%, over the third quarter of 2004 and
increased $7.72 million, or 22.8%, over the first nine months of
2004. - Return on average equity and return on average assets
increased to 17.73% and 1.29%, respectively, for the third quarter
of 2005 compared to 15.60% and 1.24%, respectively, reported for
the third quarter of 2004. - The net interest margin (FTE) improved
to 4.75% during the third quarter of 2005 as compared to 4.41%
during third quarter 2004 and 4.64% during the second quarter of
2005. - The efficiency ratio (FTE) improved to 54.97% for the third
quarter of 2005 compared to 56.14% for the same period of 2004. -
Total assets ($1.31 billion), loans, net of unearned income ($1.04
billion) and customer funding sources ($1.15 billion) reached
record levels at September 30, 2005 and represented growth since
September 30, 2004 of 10.8%, 10.8% and 9.5%, respectively. During
the nine months of 2005, loans, net of unearned income, and
customer funding sources grew at annualized rates of 12.2% and
16.8%, respectively. - Non-performing assets decreased to .04% of
total assets at September 30, 2005 compared to .06% at September
30, 2004. DETAILED REVIEW OF FINANCIAL PERFORMANCE Total assets at
September 30, 2005 were $1.31 billion, representing growth of
$127.41 million, or 10.8%, since September 30, 2004. Loans, net of
unearned income, totaled $1.04 billion compared to $936.00 million
at September 30, 2004, representing growth of $101.02 million, or
10.8%. Growth in the loan portfolio during the twelve months since
September 30, 2004 has been driven by the Company's continued
success in the real estate development and construction and
commercial and industrial lending markets, which netted increases
in the respective portfolios of $77.40 million (23.3%) and $35.04
million (15.3%). Growth in the consumer loan portfolio, mainly
consisting of second mortgage and real estate equity lines of
credit, contributed an additional $3.25 million (1.7%). The
commercial real estate portfolio declined by $12.69 million (8.0%),
primarily due to very aggressive market competition relative to
pricing terms and deal structuring. Customer funding sources,
representing deposits plus other short-term borrowings from core
customers, increased 9.5% to $1.15 billion at September 30, 2005.
Shareholders' equity rose to $94.43 million, or 4.8%, at September
30, 2005. Operating performance through September 30, 2005 was
primarily driven by a net interest income (FTE) increase of 22.9%
during the third quarter 2005 and 22.8% during the nine months
ended September 30, 2005 as compared to the corresponding periods
of 2004. The increase in net interest income resulted from
continued growth in earning assets, most specifically, the loan
portfolio. The Company remained asset sensitive at September 30,
2005 and has benefited from a series of short-term rate increases
during the quarter and throughout the year. As a result, the net
interest margin (FTE) increased .34% during the third quarter 2005
as compared to the third quarter 2004 and .26% during the nine
months ended September 30, 2005 as compared to the same period in
2004. The potential ongoing benefit to the Company from a rising
interest rate environment may be muted by the increasing pressure
of market forces on the Company's overall cost of funding sources.
Non-interest income increased $92,000, or 5.3%, for the third
quarter and decreased $153,000, or 2.8%, for the first nine months
of 2005 as compared to the same periods in 2004, primarily
resulting from a decline in deposit service charges, including
lower fees charged on overdraft deposit accounts and commercial
account analysis charges. Mortgage-banking activities improved
during the third quarter of 2005, resulting in an increase in
corresponding revenues of $128,000 compared to the same period in
2004, while revenues for the nine months ended September 30, 2005
were up 1.7% or $19,000. Commission revenue on financial services
sales was even with the comparable 2004 quarter and was up $97,000,
or 22.9%, for the first nine months of 2005 compared to the same
period in 2004. Other non-interest income increased $126,000 and
$315,000 for the third quarter and first nine months of 2005,
respectively, compared to 2004, principally due to fees generated
from the prepayment of several large commercial loan relationships.
Non-interest expense rose 18.1% and 13.7% for the third quarter and
nine months ended September 30, 2005, respectively, as compared to
the corresponding periods in 2004. The increase for the quarter and
the year was primarily due to an increase in salary and benefit
expense reflecting additional staffing costs, and increased costs
associated with the Company's Deferred Compensation Plan, which are
largely determined by appreciation in the Company's stock. Expenses
incurred in preparation for the Company's merger with Fulton
Financial Corporation totaling $247,000 also contributed to the
overall non-interest expense increase. Despite the overall increase
in operating expenses, the efficiency ratio (FTE) improved to
55.32% for the nine months ended September 30, 2005 compared to
58.04% for the same period in 2004. Asset quality remained strong
at September 30, 2005, with non-performing assets and past-due
loans totaling $587,000. As of September 30, 2005, non- performing
assets and past-due loans represented only .04% of total assets.
The ratio of non-performing loans and past-due loans to total loans
improved from .07% at September 30, 2004 to .06% at September 30,
2005. Net charge- offs totaled $522,000 during the third quarter of
2005 and included a $450,000 charge-off of a single commercial
relationship. Net charge-offs for the nine months ended September
30, 2005 totaled $469,000 compared to net charge-offs of $6,000 for
the nine months ended September 30, 2004. At September 30, 2005,
the allowance for credit losses totaled $12.56 million, or 1.21% of
loans, net of unearned income, compared to $11.51 million, or 1.23%
of net loans at September 30, 2004. ABOUT COLUMBIA BANCORP Columbia
Bancorp, headquartered in Columbia, Maryland, is a bank holding
company and parent company of The Columbia Bank, a commercial bank.
The Columbia Bank currently operates twenty-four banking offices in
the Baltimore/Washington Corridor and provides a full range of
financial services to consumers and businesses. Columbia Bancorp's
Common Stock is traded on the National Market tier of The Nasdaq
Stock Market(SM) under the symbol "CBMD". On July 26, 2005, the
Company entered into a definitive Agreement and Plan of Merger (the
"Merger Agreement") with Fulton Financial Corporation ("Fulton").
Pursuant to the Merger Agreement, the Company will merge (the
"Merger") with and into Fulton, with Fulton surviving, and all of
the outstanding shares of common stock of the Company ("Company
Common Stock") will be converted into the right to receive shares
of common stock of Fulton ("Fulton Common Stock"), cash, or a
combination of both. Following the Merger, the Company's
wholly-owned banking subsidiary, The Columbia Bank, a Maryland
corporation (the "Bank") and certain other subsidiaries of the
Company and the Bank will continue operations as subsidiaries of
Fulton. Under the terms of the Merger Agreement, each share of
Company Common Stock will be, at the Effective Time (as defined in
the Merger Agreement) of the Merger and at the election of the
holder exchanged for (i) 2.325 shares of Fulton Common Stock; (ii)
cash of $42.48; or (iii) a combination of (i) and (ii). This
election is subject to proration so that, in the aggregate, a
minimum of 20% and a maximum of 50% of total consideration for the
shares of Company Common Stock will be paid in cash. Completion of
the Merger is subject to customary conditions, including, among
others, the approval of the Merger by applicable bank regulatory
authorities and the approval of the Merger and the Merger Agreement
by the stockholders of the Company. In connection with the
execution and delivery of the Merger Agreement, the Company issued
Fulton a warrant to acquire up to 1,881,809 shares (subject to
adjustment) of Company Common Stock at an exercise price of $37.26
per share, such warrant to be exercisable only upon the occurrence
of certain events in connection with a competing acquisition
proposal. Assuming that all conditions are satisfied without
unexpected delay, it is anticipated that the Merger will be
consummated in the first quarter of 2006. NON-GAAP PRESENTATION
This press release includes disclosure and discussion of the net
interest margin and efficiency ratio that are reported on a fully
tax-equivalent basis ("FTE"). These amounts and ratios are non-GAAP
financial measures as defined in Securities and Exchange Commission
("SEC") Regulation G and Item 10 of SEC Regulation S-K. Management
believes that these measures are better indicators of operating
performance than the GAAP-based ratios and better tools for
managing net interest income, non-interest income, and non-interest
expenses. A complete reconciliation of the GAAP-based and non-GAAP
information included in this press release is provided in the
following schedules. Non-GAAP information presented by other
companies may not be comparable to that presented herein, since
each company may define non-GAAP measures differently.
FORWARD-LOOKING STATEMENTS Certain statements contained in this
Press Release are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. The
forward-looking statements are based on Columbia Bancorp's current
intent, belief and expectations. These statements are not
guarantees of future performance and are subject to certain risks
and uncertainties that are difficult to predict. Actual results may
differ materially from these forward-looking statements because of
interest rate fluctuations, a deterioration of economic conditions
in the Baltimore/Washington metropolitan area, a downturn in the
real estate market, losses from impaired loans, an increase in
non-performing assets, potential exposure to environmental laws,
federal and state bank laws and regulations, the highly competitive
nature of the banking industry, a loss of key personnel, changes in
accounting standards and other risks described in this filing and
the Company's other filings with the Securities and Exchange
Commission. Existing and prospective investors are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of today's date. Columbia Bancorp undertakes no
obligation to update or revise the information contained in this
filing whether as a result of new information, future events or
circumstances or otherwise. Past results of operations may not be
indicative of future results. COLUMBIA BANCORP Financial Highlights
(dollars in thousands, except per share data) (unaudited) As of and
Nine Months Ended September 30, --------------------------------
2005 2004 % Change -------------------------------- SUMMARY OF
OPERATING RESULTS: Tax equivalent interest income $56,910 $42,307
34.5% Interest expense 15,349 8,466 81.3% Tax equivalent net
interest income 41,561 33,841 22.8% Tax equivalent adjustment 986
811 21.6% Net interest income 40,575 33,030 22.8% Provision for
credit losses 1,441 692 108.2% Noninterest income 5,238 5,391
(2.8%) Noninterest expense 25,889 22,770 13.7% Income before taxes
18,483 14,959 23.6% Income tax provision 6,646 5,347 24.3% Net
income 11,837 9,612 23.1% PER SHARE DATA: Net income: Basic $1.70
$1.34 26.9% Diluted 1.64 1.30 26.2% Average number of shares
outstanding: Basic 6,947,046 7,160,055 (3.0%) Diluted 7,218,696
7,398,029 (2.4%) Book value, at period end $13.61 $12.66 7.5%
Tangible book value, at period end 13.61 12.66 7.5% Cash dividends
declared $0.51 $0.45 13.3% PERIOD END DATA: Loans, net of unearned
income $1,037,021 $936,000 10.8% Investment securities held-to-
maturity and securities available-for-sale 186,374 150,454 23.9%
Assets 1,306,522 1,179,107 10.8% Noninterest-bearing deposits
252,503 246,092 2.6% Interest-bearing deposits 720,661 669,250 7.7%
Total deposits 973,164 915,342 6.3% Customer funding sources (a)
1,154,035 1,053,771 9.5% Stockholders' equity 94,428 90,100 4.8%
PERFORMANCE RATIOS: Return on average assets 1.27% 1.19% Return on
average stockholders' equity 17.32% 14.50% Net interest margin
4.54% 4.28% Net interest margin (FTE) 4.65% 4.39% Efficiency ratio
(FTE)(b) 55.32% 58.04% CAPITAL RATIOS: Period-end capital to risk-
weighted assets: Tier 1 10.00% 9.23% Total 11.15% 10.35% Period-end
tier 1 leverage ratio 8.58% 8.51% ASSET QUALITY: Allowance for
credit losses to loans, net of unearned income, at period-end 1.21%
1.23% Net recoveries (charge-offs) $(469) $(6) 7716.7% Annualized
net recoveries (charge-offs) to average loans, net of unearned
income (0.06%) 0.00% Nonperforming assets: Nonaccrual loans $453
$635 (28.7%) Loans 90+ days past due and accruing 134 22 509.1%
Other real estate owned - - na ------- ------- Total nonperforming
assets $587 $657 (10.7%) ------- ------- Nonperforming and past due
loans to total loans, net of unearned income, at period-end 0.06%
0.07% Nonperforming assets and past due loans to total assets, at
period- end 0.04% 0.06% NONINTEREST INCOME AND EXPENSE BREAKDOWN:
Noninterest income: Fees charged for services $2,450 $2,975 (17.6%)
Gains on sales of mortgage loans, net of costs 1,169 1,150 1.7% Net
loss on other real estate owned - 59 (100.0%) Commissions earned on
financial services sales 520 423 22.9% Other noninterest income
1,099 784 40.2% ---------------------- $5,238 $5,391 (2.8%)
---------------------- Noninterest expenses: Salaries and employee
benefits $14,730 $12,065 22.1% Occupancy 2,891 2,838 1.9% Equipment
1,308 1,486 (12.0%) Data processing 1,295 1,575 (17.8%) Marketing
1,006 736 36.7% Professional fees 897 602 49.0% Postage 324 280
15.7% Stationery and supplies 344 334 3.0% Cash management services
348 411 (15.3%) Other noninterest expenses 2,746 2,443 12.4%
---------------------- $25,889 $22,770 13.7% ----------------------
AVERAGE BALANCES: Federal funds sold and interest- bearing deposits
(c) $14,421 $22,354 (35.5%) Investment securities held-to- maturity
and securities available-for-sale 171,831 121,973 40.9% Loans, net
of unearned income 1,000,390 879,715 13.7% Loans originated for
sale (c) 7,706 6,080 26.7% Total earning assets 1,194,348 1,030,122
15.9% Total assets 1,246,833 1,077,454 15.7% Interest-bearing
deposits: NOW accounts 86,632 88,257 (1.8%) Savings and money
market accounts 183,790 198,994 (7.6%) Time deposits 433,387
341,462 26.9% Noninterest-bearing deposits 246,987 213,725 15.6%
Total deposits 950,796 842,438 12.9% Short-term borrowings (c)
162,911 117,538 38.6% Long-term borrowings 34,638 22,230 55.8%
Total interest-bearing liabilities 901,358 768,481 17.3%
Stockholders' equity 91,351 88,555 3.2% YIELD ANALYSIS: Federal
funds sold and interest- bearing deposits (c) 2.73% 1.05%
Investment securities held-to- maturity and securities
available-for-sale (FTE) 3.84% 4.19% Loans, net of unearned income
(FTE) 6.85% 5.77% Total yield on earning assets (FTE) 6.37% 5.49%
Interest-bearing deposits NOW accounts 0.17% 0.14% Savings and
money market accounts 0.76% 0.38% Time deposits 2.93% 2.40%
Short-term borrowings 2.72% 0.90% Long-term borrowings 5.36% 5.25%
Total cost of interest-bearing liabilities 2.28% 1.47% As of and
Three Months Ended September 30, ---------------------------------
2005 2004 % Change --------------------------------- SUMMARY OF
OPERATING RESULTS: Tax equivalent interest income $20,640 $15,097
36.7% Interest expense 5,939 3,131 89.7% Tax equivalent net
interest income 14,701 11,966 22.9% Tax equivalent adjustment 317
264 20.1% Net interest income 14,384 11,702 22.9% Provision for
credit losses 631 192 228.6% Noninterest income 1,830 1,738 5.3%
Noninterest expense 9,087 7,693 18.1% Income before taxes 6,496
5,555 16.9% Income tax provision 2,330 2,037 14.4% Net income 4,166
3,518 18.4% PER SHARE DATA: Net income: Basic $0.60 $0.49 22.4%
Diluted 0.58 0.48 20.8% Average number of shares outstanding: Basic
6,935,658 7,128,359 (2.7%) Diluted 7,240,074 7,350,901 (1.5%) Book
value, at period end Tangible book value, at period end Cash
dividends declared $0.17 $0.15 13.3% PERIOD END DATA: Loans, net of
unearned income Investment securities held-to- maturity and
securities available- for-sale Assets Noninterest-bearing deposits
Interest-bearing deposits Total deposits Customer funding sources
(a) Stockholders' equity PERFORMANCE RATIOS: Return on average
assets 1.29% 1.24% Return on average stockholders' equity 17.73%
15.60% Net interest margin 4.65% 4.31% Net interest margin (FTE)
4.75% 4.41% Efficiency ratio (FTE)(b) 54.97% 56.14% CAPITAL RATIOS:
Period-end capital to risk- weighted assets: Tier 1 Total
Period-end tier 1 leverage ratio ASSET QUALITY: Allowance for
credit losses to loans, net of unearned income, at period-end Net
recoveries (charge-offs) $(522) $81 (744.4%) Annualized net
recoveries (charge-offs) to average loans, net of unearned income
(0.20%) 0.04% Nonperforming assets: Nonaccrual loans Loans 90+ days
past due and accruing Other real estate owned Total nonperforming
assets Nonperforming and past due loans to total loans, net of
unearned income, at period-end Nonperforming assets and past due
loans to total assets, at period- end NONINTEREST INCOME AND
EXPENSE BREAKDOWN: Noninterest income: Fees charged for services
$832 $920 (9.6%) Gains on sales of mortgage loans, net of costs 420
292 43.8% Net loss on other real estate owned - 73 (100.0%)
Commissions earned on financial services sales 145 146 (0.7%) Other
noninterest income 433 307 41.0% ----------------------- $1,830
$1,738 5.3% ----------------------- Noninterest expenses: Salaries
and employee benefits $5,379 $4,144 29.8% Occupancy 955 978 (2.4%)
Equipment 417 468 (10.9%) Data processing 406 525 (22.7%) Marketing
268 140 91.4% Professional fees 449 264 70.1% Postage 105 79 32.9%
Stationery and supplies 123 121 1.7% Cash management services 117
131 (10.7%) Other noninterest expenses 868 843 3.0%
----------------------- $9,087 $7,693 18.1% -----------------------
AVERAGE BALANCES: Federal funds sold and interest-bearing deposits
(c) $14,849 $20,056 (26.0%) Investment securities held-to- maturity
and securities available-for-sale 178,739 140,143 27.5% Loans, net
of unearned income 1,025,465 914,052 12.2% Loans originated for
sale (c) 9,130 4,738 92.7% Total earning assets 1,228,183 1,078,989
13.8% Total assets 1,284,080 1,126,923 13.9% Interest-bearing
deposits: NOW accounts 86,517 89,532 (3.4%) Savings and money
market accounts 174,078 208,538 (16.5%) Time deposits 453,346
361,653 25.4% Noninterest-bearing deposits 252,142 228,429 10.4%
Total deposits 966,083 888,152 8.8% Short-term borrowings (c)
180,185 118,077 52.6% Long-term borrowings 36,496 26,186 39.4%
Total interest-bearing liabilities 930,622 803,986 15.8%
Stockholders' equity 93,219 89,730 3.9% YIELD ANALYSIS: Federal
funds sold and interest-bearing deposits (c) 3.29% 1.29% Investment
securities held-to- maturity and securities available-for-sale
(FTE) 3.79% 4.07% Loans, net of unearned income (FTE) 7.21% 5.89%
Total yield on earning assets (FTE) 6.67% 5.57% Interest-bearing
deposits NOW accounts 0.17% 0.15% Savings and money market accounts
1.12% 0.41% Time deposits 3.04% 2.42% Short-term borrowings 3.14%
1.17% Long-term borrowings 5.51% 5.09% Total cost of
interest-bearing liabilities 2.53% 1.55%
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(a) Deposits plus customer-related short-term borrowings in the
form of commercial paper and repurchase agreements. (b) The
efficiency ratio (FTE) is defined as total noninterest expense as a
percentage of net interest income, on a tax-equivalent basis, plus
noninterest income. (c) Variances reflect significant fluctuations
in account balances due to the nature of the accounts.
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Certain reclassifications of information previously reported have
been made to conform with current presentation. COLUMBIA BANCORP
Consolidated Statements of Condition (dollars in thousands, except
per share data) September 30, December 31, 2005 2004 2004
---------------------------------- (unaudited) (audited) Assets
Cash and due from banks $39,314 $37,959 $30,012 Interest-bearing
deposits with banks 205 206 208 Federal funds sold 15,905 36,409
9,904 Investment securities held-to-maturity 110,072 99,295 116,170
Securities available-for-sale 76,302 51,159 47,980 Residential
mortgage loans originated for sale 10,636 2,587 8,698 Loan
receivables: Real estate - development and construction 409,662
332,258 345,375 Commercial 264,626 229,589 226,763 Real estate -
mortgage: Residential 19,750 17,564 17,272 Commercial 145,894
158,585 163,985 Consumer, principally second mortgage loans and
residential equity lines of credit 197,277 194,031 196,198 Other
322 4,056 668 ---------------------------------- Total loans
1,037,531 936,083 950,261 Less: Unearned income, net of origination
costs (510) (83) (91) Allowance for credit losses (12,555) (11,514)
(11,583) ---------------------------------- Loans, net 1,024,466
924,486 938,587 Property and equipment, net 6,546 6,910 6,647
Prepaid expenses and other assets 23,076 20,096 20,800
---------------------------------- Total assets $1,306,522
$1,179,107 $1,179,006 ==================================
Liabilities Deposits: Noninterest-bearing demand deposits $252,503
$246,092 $256,132 Interest-bearing deposits 720,661 669,250 656,446
---------------------------------- Total deposits 973,164 915,342
912,578 Short-term borrowings 194,280 141,031 135,825 Subordinated
debentures 16,496 6,186 10,310 Long-term borrowings 20,000 20,000
20,000 Accrued expenses and other liabilities 8,154 6,448 7,945
---------------------------------- Total liabilities 1,212,094
1,089,007 1,086,658 ----------------------------------
Stockholders' equity Common stock, $.01 par value per share;
authorized 10,000,000 shares; outstanding 6,938,276, 7,117,317 and
7,114,267 shares, respectively 69 71 71 Additional paid-in capital
39,361 45,925 45,739 Retained earnings 54,724 43,956 46,419
Accumulated other comprehensive income (loss) 274 148 119
---------------------------------- Total stockholders' equity
94,428 90,100 92,348 ---------------------------------- Total
liabilities and stockholders' equity $1,306,522 $1,179,107
$1,179,006 ================================== Certain
reclassifications of information previously reported have been made
to conform with current presentation. COLUMBIA BANCORP Consolidated
Statements of Income (dollars in thousands, except per share data)
Nine Months Ended Three Months Ended September 30, September 30,
------------------------------------ 2005 2004 2005 2004
------------------------------------ (unaudited) (unaudited)
Interest income: Loans $50,959 $37,717 $18,582 $13,428 Investment
securities 4,671 3,603 1,618 1,340 Federal funds sold and interest-
bearing deposits with banks 294 176 123 65
------------------------------------ Total interest income 55,924
41,496 20,323 14,833 ------------------------------------ Interest
expense: Deposits 10,650 6,796 4,004 2,450 Borrowings 4,699 1,670
1,935 681 ------------------------------------ Total interest
expense 15,349 8,466 5,939 3,131
------------------------------------ Net interest income 40,575
33,030 14,384 11,702 Provision for credit losses 1,441 692 631 192
------------------------------------ Net interest income after
provision for credit losses 39,134 32,338 13,753 11,510
------------------------------------ Noninterest income: Fees
charged for services 2,450 2,975 832 920 Gains on sales of mortgage
loans, net of costs 1,169 1,150 420 292 Net gain on other real
estate owned - 59 - 73 Commissions earned on financial services
sales 520 423 145 146 Other 1,099 784 433 307
------------------------------------ Total noninterest income 5,238
5,391 1,830 1,738 ------------------------------------ Noninterest
expense: Salaries and employee benefits 14,730 12,065 5,379 4,144
Occupancy 2,891 2,838 955 978 Equipment 1,308 1,486 417 468 Data
processing 1,295 1,575 406 525 Marketing 1,006 736 268 140
Professional fees 897 602 449 264 Postage 324 280 105 79 Stationery
and supplies 344 334 123 121 Cash management services 348 411 117
131 Other 2,746 2,443 868 843 ------------------------------------
Total noninterest expense 25,889 22,770 9,087 7,693
------------------------------------ Income before income taxes
18,483 14,959 6,496 5,555 Income tax provision 6,646 5,347 2,330
2,037 ------------------------------------ Net income $11,837
$9,612 $4,166 $3,518 ==================================== Per
common share data: Net income: Basic $1.70 $1.34 $0.60 $0.49
Diluted 1.64 1.30 0.58 0.48 Cash dividends declared $0.51 $0.45
$0.17 $0.15 Certain reclassifications of information previously
reported have been made to conform with current presentation.
COLUMBIA BANCORP Reconciliation of GAAP-based Operating Performance
Measures and Core Operating Performance Measures (dollars in
thousands, except per share data) Nine Months Ended Three Months
Ended September 30, September 30,
------------------------------------ 2005 2004 2005 2004
------------------------------------ (unaudited) (unaudited)
GAAP-based Operating Performance Measures: Net interest income
$40,575 $33,030 $14,384 $11,702 Provision for credit losses 1,441
692 631 192 Noninterest income 5,238 5,391 1,830 1,738 Noninterest
expense 25,889 22,770 9,087 7,693 Income before taxes 18,483 14,959
6,496 5,555 Income tax provision 6,646 5,347 2,330 2,037 Net income
11,837 9,612 4,166 3,518 Return on average assets 1.27% 1.19% 1.29%
1.24% Return on average equity 17.32% 14.50% 17.73% 15.60% Net
interest margin 4.54% 4.28% 4.65% 4.31% Efficiency ratio 56.51%
59.26% 56.04% 57.24% Net income per share - diluted $1.64 $1.30
$0.58 $0.48
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Non-GAAP adjustments Interest income on tax-exempt loans $718 $525
$89 $169 Interest income on tax-exempt securities 268 286 228 95
------------------------------------ Total tax equivalent
adjustment - net interest income $986 $811 $317 $264
====================================
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Core Operating Performance Measures: (a)(b) Net interest income -
tax equivalent $41,561 $33,841 $14,701 $11,966 Tax equivalent
adjustment (986) (811) (317) (264)
------------------------------------ Net interest income 40,575
33,030 14,384 11,702 Provision for credit losses 1,441 692 631 192
Noninterest income 5,238 5,391 1,830 1,738 Noninterest expense
25,889 22,770 9,087 7,693 Income before taxes 18,483 14,959 6,496
5,555 Income tax provision 6,646 5,347 2,330 2,037 Net income
11,837 9,612 4,166 3,518 Return on average assets 1.27% 1.19% 1.29%
1.24% Return on average equity 17.32% 14.50% 17.73% 15.60% Net
interest margin (FTE) 4.65% 4.39% 4.75% 4.41% Efficiency ratio
(FTE) 55.32% 58.04% 54.97% 56.14% Net income per share - diluted
$1.64 $1.30 $0.58 $0.48
-------------------------------------------------------------------------
(a) Core operating performance reflects GAAP-based performance
presented on a fully tax-equivalent basis, exclusive of
non-recurring items, where applicable. There were no non-recurring
items in the periods presented. (b) The efficiency ratio (FTE) is
defined as total noninterest expense as a percentage of net
interest income, on a tax-equivalent basis, plus noninterest
income.
-------------------------------------------------------------------------
Certain reclassifications of information previously reported have
been made to conform with current presentation. COLUMBIA BANCORP
Quarterly Highlights (dollars in thousands, except per share data)
3Q05 2Q05 1Q05 ---------------------------------- (unaudited)
SUMMARY OF OPERATING RESULTS: GAAP-based: Interest income $20,323
$18,657 $16,944 Interest expense 5,939 5,111 4,299 Net interest
income 14,384 13,546 12,645 Provision for credit losses 631 560 250
Noninterest income 1,830 1,777 1,631 Noninterest expense 9,087
8,767 8,035 Income before taxes 6,496 5,996 5,991 Income tax
provision 2,330 2,154 2,162 Net income 4,166 3,842 3,829 Based on
core operating performance (a): Tax-equivalent interest income
$20,640 $18,953 $17,317 Interest expense 5,939 5,111 4,299
Tax-equivalent net interest income 14,701 13,842 13,018
Tax-equivalent adjustment 317 296 373 Net interest income 14,384
13,546 12,645 Provision for credit losses 631 560 250 Noninterest
income 1,830 1,777 1,631 Noninterest expense 9,087 8,767 8,035
Income before taxes 6,496 5,996 5,991 Income tax provision 2,330
2,154 2,162 Net income 4,166 3,842 3,829
-------------------------------------------------------------------------
PER SHARE DATA: Net income: GAAP-based: Basic $0.60 $0.56 $0.55
Diluted 0.58 0.54 0.53 Based on core operating performance (a):
Basic $0.60 $0.56 $0.55 Diluted 0.58 0.54 0.53 Average number of
shares outstanding: Basic 6,935,658 6,921,811 6,984,185 Diluted
7,240,074 7,173,060 7,242,967 Book value, at period end $13.61
$13.17 $12.74 Tangible book value, at period end 13.61 13.17 12.74
Cash dividends declared 0.17 0.17 0.17
-------------------------------------------------------------------------
PERIOD END DATA: Loans, net of unearned income $1,037,021
$1,029,568 $978,941 Investment securities held-to- maturity and
securities available-for-sale 186,374 173,212 170,595 Assets
1,306,522 1,284,115 1,240,496 Noninterest-bearing deposits 252,503
263,834 248,122 Interest-bearing deposits 720,661 712,657 720,503
Total deposits 973,164 976,491 968,625 Customer funding sources (b)
1,154,035 1,137,342 1,104,701 Stockholders' equity 94,428 91,331
87,971
-------------------------------------------------------------------------
PERFORMANCE RATIOS: GAAP-based: Return on average assets 1.29%
1.23% 1.29% Return on average stockholders' equity 17.73% 17.08%
17.14% Net interest margin 4.65% 4.54% 4.43% Efficiency ratio
56.04% 57.21% 56.28% Based on core operating performance (a):
Return on average assets 1.29% 1.23% 1.29% Return on average
stockholders' equity 17.73% 17.08% 17.14% Net interest margin (FTE)
4.75% 4.64% 4.56% Efficiency ratio (FTE) 54.97% 56.13% 54.85%
-------------------------------------------------------------------------
CAPITAL RATIOS: Period-end capital to risk-weighted assets: Tier 1
10.00% 9.67% 9.62% Total 11.15% 10.81% 10.73% Period-end tier 1
leverage ratio 8.58% 8.57% 8.62%
-------------------------------------------------------------------------
ASSET QUALITY: Allowance for credit losses to loans, net of
unearned income, at period-end 1.21% 1.21% 1.22% Net recoveries
(charge-offs) $(522) $(20) $73 Annualized net recoveries (charge-
offs) to average loans, net of unearned income (0.20%) (0.01%)
0.03% Nonperforming assets: Nonaccrual loans $453 $1,043 $588 Loans
90+ days past due and accruing 134 128 128 Other real estate owned
- - - ------- ------- ------- Total nonperforming assets $587
$1,171 $716 ------- ------- ------- Nonperforming and past due
loans to total loans, net of unearned income, at period-end 0.06%
0.11% 0.07% Nonperforming assets and past due loans to total
assets, at period-end 0.04% 0.09% 0.06%
-------------------------------------------------------------------------
NONINTEREST INCOME AND EXPENSE BREAKDOWN: Noninterest income: Fees
charged for deposit services $832 $824 $794 Gains on sales of
mortgage loans, net of costs 420 397 352 Commissions earned on
financial services sales 145 183 192 Other noninterest income 433
373 293 ------- ------- ------- Total noninterest income $1,830
$1,777 $1,631 ------- ------- ------- Noninterest expenses:
Salaries and payroll taxes $4,501 $4,146 $3,940 Employee benefits -
health and welfare 371 371 365 Employee benefits - retirement 507
507 22 Occupancy 955 938 998 Equipment 417 467 424 Data processing
406 437 452 Marketing 268 381 357 Professional fees 449 174 274
Postage 105 96 123 Stationery and supplies 123 110 111 Cash
management services 117 123 108 Other noninterest expenses 868
1,017 861 ------- ------- ------- Total noninterest expenses $9,087
$8,767 $8,035 ------- ------- -------
-------------------------------------------------------------------------
AVERAGE BALANCES: Federal funds sold and interest- bearing deposits
$14,849 $14,296 $14,109 Investment securities and securities
available-for-sale 178,739 172,833 163,757 Loans, net of unearned
income 1,025,465 1,001,922 973,208 Loans originated for sale 9,130
8,070 5,883 Total earning assets 1,228,183 1,197,121 1,156,957
Total assets 1,284,080 1,248,918 1,206,651 Interest-bearing
deposits: NOW accounts 86,517 87,262 86,113 Savings and money
market accounts 174,078 184,600 192,899 Time deposits 453,346
441,267 405,018 Noninterest-bearing deposits 252,142 246,056
242,659 Total deposits 966,083 959,185 926,689 Short-term
borrowings 180,185 155,492 152,754 Long-term borrowings 36,496
36,496 30,860 Total interest-bearing liabilities 930,622 905,117
867,644 Stockholders' equity 93,219 90,215 90,592
-------------------------------------------------------------------------
YIELD ANALYSIS: Federal funds sold and interest- bearing deposits
3.29% 2.69% 2.15% Investment securities and securities
available-for-sale (FTE) 3.79% 3.84% 3.91% Loans, net of unearned
income (FTE) 7.21% 6.83% 6.49% Total yield on earning assets (FTE)
6.67% 6.35% 6.07% Interest-bearing deposits NOW accounts 0.17%
0.16% 0.16% Savings and money market accounts 1.12% 0.65% 0.52%
Time deposits 3.04% 2.96% 2.77% Short-term borrowings 3.14% 2.66%
2.26% Long-term borrowings 5.51% 5.32% 5.23% Total cost of
interest-bearing liabilities 2.53% 2.26% 2.01%
-------------------------------------------------------------------------
(a) Core operating performance reflects GAAP-based performance
presented on a fully tax-equivalent basis, exclusive of
non-recurring items, where applicable. There were no non-recurring
items in the periods presented. (b) Deposits plus customer-related
short-term borrowings in the form of commercial paper and
repurchase agreements.
-------------------------------------------------------------------------
Certain reclassifications of information previously reported have
been made to conform with current presentation. COLUMBIA BANCORP
Quarterly Highlights (dollars in thousands, except per share data)
4Q04 3Q04 2Q04 1Q04 --------------------------------------------
(unaudited) SUMMARY OF OPERATING RESULTS: GAAP-based: Interest
income $16,050 $14,833 $13,408 $13,255 Interest expense 3,497 3,131
2,755 2,580 Net interest income 12,553 11,702 10,653 10,675
Provision for credit losses 36 192 190 310 Noninterest income 1,499
1,738 1,897 1,756 Noninterest expense 8,367 7,693 7,529 7,548
Income before taxes 5,649 5,555 4,831 4,573 Income tax provision
1,976 2,037 1,718 1,592 Net income 3,673 3,518 3,113 2,981 Based on
core operating performance (a): Tax-equivalent interest income
$16,376 $15,097 $13,681 $13,529 Interest expense 3,497 3,131 2,755
2,580 Tax-equivalent net interest income 12,879 11,966 10,926
10,949 Tax-equivalent adjustment 326 264 273 274 Net interest
income 12,553 11,702 10,653 10,675 Provision for credit losses 36
192 190 310 Noninterest income 1,499 1,738 1,897 1,756 Noninterest
expense 8,367 7,693 7,529 7,548 Income before taxes 5,649 5,555
4,831 4,573 Income tax provision 1,976 2,037 1,718 1,592 Net income
3,673 3,518 3,113 2,981
-------------------------------------------------------------------------
PER SHARE DATA: Net income: GAAP-based: Basic $0.52 $0.49 $0.43
$0.42 Diluted 0.50 0.48 0.42 0.40 Based on core operating
performance (a): Basic $0.52 $0.49 0.43 0.42 Diluted 0.50 0.48 0.42
0.40 Average number of shares outstanding: Basic 7,113,768
7,128,359 7,170,585 7,178,797 Diluted 7,371,541 7,350,901 7,404,762
7,434,701 Book value, at period end $12.98 $12.66 $12.33 $12.23
Tangible book value, at period end 12.98 12.66 12.33 12.23 Cash
dividends declared 0.17 0.15 0.15 0.15
-------------------------------------------------------------------------
PERIOD END DATA: Loans, net of unearned income $950,170 $936,000
$900,320 $864,753 Investment securities held-to-maturity and
securities available- for-sale 164,150 150,604 122,430 104,211
Assets 1,179,006 1,179,107 1,126,916 1,083,798 Noninterest-bearing
deposits 256,132 246,092 240,117 220,700 Interest-bearing deposits
656,446 669,250 650,884 625,311 Total deposits 912,578 915,342
891,001 846,011 Customer funding sources (b) 1,025,403 1,053,771
1,001,524 963,051 Stockholders' equity 92,348 90,100 88,039 87,934
-------------------------------------------------------------------------
PERFORMANCE RATIOS: GAAP-based: Return on average assets 1.25%
1.24% 1.16% 1.16% Return on average stockholders' equity 15.99%
15.60% 14.07% 13.75% Net interest margin 4.46% 4.31% 4.18% 4.34%
Efficiency ratio 59.54% 57.24% 59.99% 60.72% Based on core
operating performance (a): Return on average assets 1.25% 1.24%
1.16% 1.16% Return on average stockholders' equity 15.99% 15.60%
14.07% 13.75% Net interest margin (FTE) 4.57% 4.41% 4.29% 4.46%
Efficiency ratio (FTE) 58.19% 56.14% 58.71% 59.41%
-------------------------------------------------------------------------
CAPITAL RATIOS: Period-end capital to risk-weighted assets: Tier 1
9.74% 9.23% 9.45% 9.04% Total 10.85% 10.35% 10.58% 10.20%
Period-end tier 1 leverage ratio 8.75% 8.51% 8.79% 8.34%
-------------------------------------------------------------------------
ASSET QUALITY: Allowance for credit losses to loans, net of
unearned income, at period-end 1.22% 1.23% 1.25% 1.28% Net
recoveries (charge-offs) $33 $81 $10 $(97) Annualized net
recoveries (charge-offs) to average loans, net of unearned income
0.01% 0.04% 0.00% (0.05%) Nonperforming assets: Nonaccrual loans
$614 $635 $1,095 $1,168 Loans 90+ days past due and accruing 31 22
91 69 Other real estate owned - - 250 250 ------- ------- -------
------- Total nonperforming assets $645 $657 $1,436 $1,487 -------
------- ------- ------- Nonperforming and past due loans to total
loans, net of unearned income, at period-end 0.07% 0.07% 0.13%
0.14% Nonperforming assets and past due loans to total assets, at
period-end 0.05% 0.06% 0.13% 0.14%
-------------------------------------------------------------------------
NONINTEREST INCOME AND EXPENSE BREAKDOWN: Noninterest income: Fees
charged for deposit services $786 $920 $1,041 $1,014 Gains on sales
of mortgage loans, net of costs 286 292 508 351 Net income (loss)
on other real estate owned - 73 (5) (9) Commissions earned on
financial services sales 166 146 137 140 Other noninterest income
261 307 216 260 ------- ------- ------- ------- Total noninterest
income $1,499 $1,738 $1,897 $1,756 ------- ------- ------- -------
Noninterest expenses: Salaries and payroll taxes $4,014 $3,738
$3,610 $3,671 Employee benefits - health and welfare 365 258 245
237 Employee benefits - retirement 486 148 33 125 Occupancy 991 978
913 947 Equipment 426 468 505 513 Data processing 394 525 532 518
Marketing 193 140 296 300 Professional fees 343 264 174 164 Postage
99 79 93 108 Stationery and supplies 157 121 98 115 Cash management
services 137 131 158 122 Other noninterest expenses 762 843 872 728
------- ------- ------- ------- Total noninterest expenses $8,367
$7,693 $7,529 $7,548 ------- ------- ------- -------
-------------------------------------------------------------------------
AVERAGE BALANCES: Federal funds sold and interest-bearing deposits
$15,512 $20,056 $37,521 $9,513 Investment securities and securities
available-for- sale 157,348 140,143 103,384 122,192 Loans, net of
unearned income 940,368 914,052 873,278 851,436 Loans originated
for sale 7,068 4,738 8,320 5,196 Total earning assets 1,120,296
1,078,989 1,022,503 988,337 Total assets 1,167,536 1,126,923
1,071,793 1,033,102 Interest-bearing deposits: NOW accounts 87,742
89,532 89,308 85,917 Savings and money market accounts 201,479
208,538 194,197 194,141 Time deposits 364,888 361,653 348,394
314,116 Noninterest-bearing deposits 245,886 228,429 221,033
191,551 Total deposits 899,995 888,152 852,932 785,725 Short-term
borrowings 139,635 118,077 105,985 128,547 Long-term borrowings
26,231 26,186 20,462 20,000 Total interest-bearing liabilities
819,975 803,986 758,346 742,721 Stockholders' equity 91,367 89,730
88,743 87,180
-------------------------------------------------------------------------
YIELD ANALYSIS: Federal funds sold and interest-bearing deposits
1.59% 1.29% 0.96% 0.89% Investment securities and securities
available-for- sale (FTE) 3.92% 4.07% 4.45% 4.30% Loans, net of
unearned income (FTE) 6.20% 5.89% 5.68% 5.71% Total yield on
earning assets (FTE) 5.81% 5.57% 5.38% 5.49% Interest-bearing
deposits NOW accounts 0.16% 0.15% 0.15% 0.13% Savings and money
market accounts 0.47% 0.41% 0.37% 0.36% Time deposits 2.48% 2.42%
2.39% 2.39% Short-term borrowings 1.74% 1.17% 0.77% 0.77% Long-term
borrowings 5.22% 5.09% 5.35% 5.36% Total cost of interest- bearing
liabilities 1.70% 1.55% 1.46% 1.40%
-------------------------------------------------------------------------
(a) Core operating performance reflects GAAP-based performance
presented on a fully tax-equivalent basis, exclusive of
non-recurring items, where applicable. There were no non-recurring
items in the periods presented. (b) Deposits plus customer-related
short-term borrowings in the form of commercial paper and
repurchase agreements.
-------------------------------------------------------------------------
Certain reclassifications of information previously reported have
been made to conform with current presentation. DATASOURCE:
Columbia Bancorp CONTACT: John A. Scaldara, Jr., President and COO,
+1-410-423-8012, or James P. Radick, CFO, +1-410-423-8020, both of
Columbia Bancorp Web site: http://www.columbank.com/ Company News
On-Call: http://www.prnewswire.com/comp/127921.html
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