2014

Columbia Banking System Announces Strong Second Quarter Earnings and Growth; Total Assets Approaching $1 Billion

    TACOMA, Wash., July 21 /PRNewswire/ -- Columbia Banking System, Inc.
 (Nasdaq:   COLB) today announced results for the second quarter 1998, with an
 increase in earnings of 17% over the second quarter 1997.  Net income for the
 second quarter 1998 was $2.5 million compared with $2.2 million for the second
 quarter 1997.  On a per share basis, net income was $0.25, compared with
 $0.22 last year.
     Net income for the six months ended June 30, 1998, was $5.0 million, or
 $0.50 per share, up 39% compared with $3.6 million in 1997.  The earnings
 increases for the quarter and six month periods reflect strong growth in loans
 and improved net interest margins, coupled with continued increases in
 noninterest income.  Net interest income increased by 19% and 25% for the
 second quarter and six months of 1998 compared with 1997.  Noninterest income
 from fees and mortgage banking, adjusted to reflect a nonrecurring gain on
 sale of assets in the second quarter of 1997, increased 39% and 43% during the
 quarter and six month periods compared with similar periods in 1997.
 Noninterest expense, which increased by 19% in the quarter and six month
 periods compared with 1997, reflects the Company's continued growth.
     Total assets were $953.7 million at June 30, 1998, up 10% since year-end
 1997 and 23% over one year ago.  Strong growth was also recorded for loans and
 deposits, with increases of 10% and 12%, respectively, from year-end 1997, and
 21% and 27%, respectively, from one year ago.  At June 30, 1998, total loans
 were $753.0 million and total deposits were $830.0 million.
     "Our balance sheet continues to grow at rates consistent with past
 quarters," said Chairman, President and Chief Executive Officer W. W. Philip.
 "Year to date, assets have grown nearly $89 million, which equates to 56% of
 total asset growth for the full year 1997.  As we approach $1 billion in total
 assets, I am pleased to report that the Company has more than quadrupled in
 size in just five years while maintaining good asset quality, and has
 established a solid base for future earnings growth."
     Financial results for the second quarter 1998 have been adjusted to
 reflect the Company's three shares for two stock split of May 22, 1998.  The
 Company's financial statements were also restated to reflect two acquisitions
 completed in 1997 which were accounted for on a pooling of interests basis.
     The Company plans to open several new branches before year end.  Upcoming
 locations include a full-service facility in Port Orchard (Kitsap County) and
 a branch in the Triangle Mall Thriftway store of Longview (Cowlitz County).
 Additionally, management continues to pursue opportunities for branching in
 the Stadium district and near 84th and Pacific, both in Tacoma (Pierce
 County), in Olympia (Thurston County) and in Forest Villa (King County).
     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.
     The announcement above contains certain forward-looking statements within
 the meaning of the federal securities laws.  Actual results and the timing of
 certain events could differ materially from those projected in the
 forward-looking statements due to a number of factors.  Specific factors
 include, among others, the effect of interest rate changes, risk associated
 with bank acquisitions or opening new branches, expense control and general
 economic conditions.
 
                     Consolidated Statements of Operations
                         Columbia Banking System, Inc.
                          (in thousands except per share)
 
                                        Three Months Ended  Six Months Ended
                                             June 30,           June 30,
                                        1998      1997      1998      1997
     Interest Income
      Loans                            $16,522   $13,729   $32,375   $25,957
      Securities available for sale      1,100       925     2,158     1,784
      Securities held to maturity          110       196       246       364
      Deposits with banks                  153       333       513       806
       Total interest income            17,885    15,183    35,292    28,911
     Interest Expense
      Deposits                           7,023     6,056    13,872    11,717
      Federal Home Loan Bank advances      549       429     1,076       890
      Other borrowings                      --        20        --        41
       Total interest expense            7,572     6,505    14,948    12,648
     Net Interest Income                10,313     8,678    20,344    16,263
      Provision for loan losses            450     1,259     1,000     1,708
      Net interest income after
       provision for loan losses         9,863     7,419    19,344    14,555
     Noninterest Income
      Service charges and other fees     1,416     1,059     2,701     1,927
      Mortgage banking                     412       191       810       295
      Gain on sales of loans, net           --     1,035        --     1,035
      Other fees                         1,043       810     1,880     1,557
       Total noninterest income          2,871     3,095     5,391     4,814
     Noninterest Expense
      Compensation and employee
       benefits                          3,889     3,175     7,660     6,302
      Occupancy                          1,206     1,164     2,329     2,260
      Advertising and promotion            371       306       737       543
      Data processing                      453       350       860       694
      Other                              2,918     2,423     5,509     4,523
       Total noninterest expense         8,837     7,418    17,095    14,322
      Income before income taxes         3,897     3,096     7,640     5,047
      Provision for income taxes         1,349       918     2,679     1,492
      Net Income                        $2,548    $2,178    $4,961    $3,555
     Net income per common share:
      Basic                              $0.25     $0.22     $0.50     $0.36
      Diluted                             0.25      0.22      0.48      0.35
     Average number of common
      shares outstanding                10,028     9,806    10,013     9,804
     Average number of diluted
      common shares outstanding         10,387    10,066    10,353    10,060
 
                          Consolidated Balance Sheets
                         Columbia Banking System, Inc.
                                 (in thousands)
 
                                                     June 30,     December 31,
                                                       1998           1997
     Assets
      Cash and due from banks                         $57,626        $47,604
      Interest-earning deposits with banks             26,313         28,108
      Securities available for sale                    61,497         56,279
      Securities held to maturity                       7,254          9,679
      FHLB stock                                        5,343          5,144
      Loans held for sale                               9,043          4,377
      Loans                                           752,968        685,889
       Less: allowance for loan losses                  8,877          8,440
       Loans, net                                     744,091        677,449
      Interest receivable                               5,649          5,023
      Premises and equipment, net                      32,583         27,246
      Real estate owned                                   921            231
      Other                                             3,402          3,415
      Total Assets                                   $953,722       $864,555
 
     Liabilities and Shareholders' Equity
      Deposits:
       Noninterest-bearing                           $169,304       $146,063
       Interest-bearing                               660,655        594,367
        Total deposits                                829,959        740,430
      Federal Home Loan Bank advances                  34,000         39,000
      Other liabilities                                 5,981          6,772
       Total liabilities                              869,940        786,202
      Shareholders' equity:
       Preferred stock (no par value)
        Authorized, 2,000,000 shares;
        None outstanding
                                June 30,   December 31,
       Common stock (no           1998         1997
        par value)
        Authorized shares        45,000      16,500
        Issued and outstanding   10,035       9,880    68,442         67,901
       Retained earnings                               15,376         10,415
       Unrealized gains (losses)
        on securities available
        for sale, net of tax                             (36)             37
        Total shareholders' equity                     83,782         78,353
     Total Liabilities and Shareholders' Equity      $953,722       $864,555
 
 
                           Columbia Banking System, Inc.
                                Financial Statistics
                  (dollars in thousands, except per share amounts)
 
                                       Three Months Ended    Six Months Ended
                                           June 30,              June 30,
                                       1998       1997      1998       1997
     Earnings:
      Net interest income            $10,313     $8,678    $20,344   $16,263
      Provision for loan losses          450      1,259      1,000     1,708
      Net income                       2,548      2,178      4,961     3,555
     Per share:
      Net income (basic)               $0.25      $0.22      $0.50     $0.36
      Net income (diluted)              0.25       0.22       0.48      0.35
     Averages:
      Total assets                  $895,157   $753,349   $881,653  $727,453
      Earning assets                 821,744    693,638    811,762   671,710
      Loans                          731,906    596,242    716,119   571,183
      Securities                      78,753     72,093     76,960    69,836
     Deposits                        766,573    642,637    754,440   617,792
      Shareholders' equity            83,371     72,053     82,097    70,608
     Financial Ratios:
      Return on average assets         1.14%      1.16%      1.13%     0.99%
      Return on average equity         12.26      12.12      12.19     10.15
      Net interest margin               5.03       5.02       5.05      4.88
      Average equity to average
       assets                           9.31       9.56       9.31      9.71
 
                                      June 30,       June 30,     December 31,
                                        1998           1997           1997
 
     Period-end:
      Total assets                    $953,722       $775,470       $864,555
      Loans                            752,968        620,510        685,889
      Allowance for loan losses          8,877          6,457          8,440
     Deposits                          829,959        655,950        740,430
      Shareholders' equity              83,782         72,144         78,353
     Book value per share                 8.35           7.35           7.93
     Nonperforming assets:
      Nonaccrual loans                   2,090          1,205          1,462
      Restructured loans                    18             23             20
      Real estate owned                    921            501            231
       Total nonperforming assets       $3,029         $1,729         $1,713
     Nonperforming assets to
      period-end assets:                 0.32%          0.22%          0.20%
 
 

SOURCE Columbia Banking System

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.