Columbia Banking System Announces First Quarter Earnings Up 75% Over Same Period One Year Ago

    TACOMA, Wash., April 22 /PRNewswire/ -- Columbia Banking System, Inc.
 (Nasdaq:   COLB) today announced strong performance for the first quarter
 1998, with an increase in earnings of 75 percent over the first quarter 1997.
 Net income for the period ending March 31, 1998 was $2.4 million compared with
 $1.4 million in 1997.  On a per share basis, net income was $0.36 compared
 with $0.22 last year, an increase of 64 percent.
     The Company recorded consistent balance sheet growth for the first
 quarter, with deposits, loans and assets each growing 4 percent from year-end
 1997.  At March 31, 1998, total deposits were $773.2 million, total loans were
 $716.8 and total assets were $902.1 million.  Compared with March 31, 1997,
 deposits, loans and total assets were up 23 percent, 30 percent and
 24 percent, respectively.
     Net interest income was up 32 percent over the first quarter 1997,
 reflecting the strong growth in loans and improved net interest margins.
 Noninterest income, principally from service charges and other fees and from
 mortgage banking operations, increased by 47 percent compared with the same
 period last year.  Noninterest expense increased by 20 percent, reflecting the
 Bank's continued growth.
     "The Bank continues to show steady improvement in terms of our performance
 ratios," said Chairman and Chief Executive Officer W. W. Philip.  "For
 example, compared with one year ago, return on average assets improved to
 1.12 percent from 0.80 percent, and return on average equity increased to
 12.1 percent from 8.1 percent.  These ratios are now very comparable to our
 peer group of banks, as Columbia continues to operate more efficiently while
 managing rapid growth."
     Columbia Bank opened two new branches during the first quarter 1998,
 bringing the total number of offices to 23.  The Westgate branch in north
 Tacoma opened in January, and the 176th and Meridian branch in eastern Pierce
 County opened in February.  Both are newly constructed, full-service
 facilities.  The Company's upcoming expansion plans include new locations in
 the Kitsap, Thurston, Pierce and Cowlitz counties of western Washington.
 Specifically, construction will begin during the second quarter on a site in
 Port Orchard on the Kitsap Peninsula, and Columbia's fourth Cowlitz County
 location will open later this year inside the Triangle Mall Thriftway store in
 Longview.  In addition, management is currently seeking property in Olympia
 and near 84th and Pacific in Tacoma.
     Columbia Banking System is a Tacoma, Washington-based bank holding company
 which operates Columbia Bank, a state-chartered full-service commercial bank
 with 23 branch offices in Pierce, King and Cowlitz counties.  Columbia Banking
 System's Annual Meeting of Shareholders will be held today, April 22, 1998 at
 the Sheraton Tacoma Hotel, 1320 Broadway Plaza, Tacoma, Washington, at
 1:00 p.m. PDT.
 
     CONSOLIDATED STATEMENTS OF OPERATIONS
     Columbia Banking System, Inc.
 
                                                     Three Months Ended
                                                         March 31,
                                              (in thousands except per share)
                                                  1998              1997
 
     Interest Income
     Loans                                      $ 15,853        $ 12,228
     Securities available for sale                 1,058             859
     Securities held to maturity                     136             168
     Deposits with banks                             360             473
       Total interest income                      17,407          13,728
     Interest Expense
     Deposits                                      6,849           5,661
     Federal Home Loan Bank advances                 527             461
     Other borrowings                                                 21
       Total interest expense                      7,376           6,143
     Net Interest Income                          10,031           7,585
     Provision for loan losses                       550             449
     Net interest income after provision
      for loan losses                              9,481           7,136
     Noninterest Income
     Service charges and other fees                1,285             868
     Mortgage banking                                398             104
     Other fees                                      837             747
       Total noninterest income                    2,520           1,719
     Noninterest Expense
     Compensation and employee benefits            3,771           3,127
     Occupancy                                     1,123           1,096
     Advertising and promotion                       366             237
     Data processing                                 407             344
     Other                                         2,591           2,100
       Total noninterest expense                   8,258           6,904
     Income before income taxes                    3,743           1,951
     Provision for income taxes                    1,330             574
     Net Income                                   $2,413          $1,377
     Net income per common share:
       Basic                                       $0.36           $0.22
       Diluted                                      0.35            0.22
     Average number of common
      shares outstanding                           6,647           6,245
     Average number of diluted common
      shares outstanding                           6,873           6,404
 
     CONSOLIDATED BALANCE SHEETS
     Columbia Banking System, Inc.
     (in thousands)
 
                                                March 31,      December 31,
                                                  1998             1997
 
     Assets
     Cash and due from banks                     $44,907         $47,604
     Interest-earning deposits with bank          29,868          28,108
     Securities available for sale                58,216          56,279
     Securities held to maturity                   8,755           9,679
     FHLB stock                                    5,242           5,144
     Loans held for sale                           6,987           4,377
     Loans                                       716,837         685,889
       Less:  allowance for loan losses            8,987           8,440
     Loans, net                                  707,850         677,449
     Interest receivable                           5,612           5,023
     Premises and equipment, net                  28,960          27,246
     Real estate owned                               190             231
     Other                                         5,556           3,415
       Total Asset                              $902,143        $864,555
     Liabilities and Shareholders' Equity
     Deposits:
       Noninterest-bearing                      $150,936        $146,063
       Interest-bearing                          622,267         594,367
         Total deposits                          773,203         740,430
     Federal Home Loan Bank advances              39,000          39,000
     Other liabilities                             8,873           6,772
       Total liabilities                         821,076         786,202
     Shareholders' equity:
     Preferred stock (no par value)
       Authorized, 2,000,000 shares;
       None outstanding
 
                                   March 31,   December 31,
                                     1998          1997
     Common stock (no par value)
       Authorized shares            11,000        11,000
       Issued and outstanding        6,659         6,587     68,221   67,901
     Retained earnings                                       12,828    10,415
     Unrealized gains on securities
      available for sale, net of tax                             18        37
       Total shareholders' equity                            81,067    78,353
     Total Liabilities and Shareholders' Equity            $902,143  $864,555
 
     Columbia Banking System, Inc.
     Financial Statistics
     (dollars in thousands, except per share amounts)
 
                                                      Three Months Ended
                                                           March 31,
                                                  1998                1997
 
     Earnings:
       Net interest income                       $10,031          $7,585
       Provision for loan losses                     550             449
       Net income                                  2,413           1,377
     Per share:
       Net income (basic)                          $0.36           $0.22
       Net income (diluted)                         0.35            0.22
     Averages:
       Total assets                             $873,371        $701,308
       Earning assets                            801,660         649,354
       Loans                                     700,018         545,565
       Securities                                 75,186          67,543
       Deposits                                  742,226         592,711
       Shareholders' equity                       80,813          69,147
     Financial Ratios:
       Return on average assets                   1.12 %          0.80 %
       Return on average equity                    12.11            8.08
       Net interest margin                          5.07            4.74
       Average equity to average assets             9.25            9.86
 
                                   March 31,        March 31,     December 31,
                                      1998             1997           1997
 
     Period-end:
       Total assets                 $902,143        $728,322      $864,555
       Loans                         716,837         552,815       685,889
       Allowance for loan losses       8,987           5,608         8,440
       Deposits                      773,203         627,973       740,430
       Shareholders' equity           81,067          69,472        78,353
     Book value per share              12.17           10.64         11.90
     Nonperforming assets:
       Nonaccrual loans                2,647           1,984         1,462
       Restructured loans                 19              24            20
       Real estate owned                 190             715           231
         Total nonperforming assets   $2,856          $2,723        $1,713
     Nonperforming assets
      to period-end assets:           0.32 %          0.37 %        0.20 %
 
 

SOURCE  Columbia Banking System