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2014
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Columbia Banking System Reports Third Quarter Results: Record Earnings and Strong Overall Performance



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    TACOMA, Wash., Oct. 23 /PRNewswire/ -- Columbia Banking System, Inc.
 (Nasdaq:   COLB) today announced strong third quarter results with record
 earnings and solid balance sheet growth.  Net income for the third quarter of
 1997 was $1.9 million, or $0.34 per share, compared with $483,000, or
 $0.12 per share, for the third quarter of 1996.  Net income for the nine
 months ended September 30, 1997 was $4.8 million, or $0.85 per share, compared
 with $2.3 million, or $0.61 per share, for the same period in 1996.
     During 1996, the Company had no federal income tax provision for the three
 months and nine months ended September 30 due to utilization of net operating
 loss carryforwards.  Additionally, during the third quarter of last year,
 federal legislation designed to recapitalize the Savings Association Insurance
 Fund ("SAIF") of the FDIC resulted in a one-time charge to Columbia's third
 quarter 1996 earnings of $612,000.  On a comparable fully taxed basis, net
 income for the third quarter of 1997 increased to $1.9 million from
 $723,000 in 1996, excluding the SAIF assessment.  Using the same basis for
 comparison, net income for the nine months ended September 30, 1997, more than
 doubled to $4.8 million from $1.9 million.
     Columbia Banking System's total assets reached $710.3 million at
 September 30, 1997, an increase of 21% over $588.9 million at
 December 31, 1996.  Strong third quarter loan demand resulted in portfolio
 growth of 27%, to $565.5 million at September 30, 1997, from $446.1 million at
 year-end 1996.  Nonperforming assets are currently 0.11% of total assets.
 Deposits totaled $601.5 million at the end of the third quarter, up 22% from
 $493.2 million at December 31, 1996.
     During the third quarter, the Company made announcements regarding the
 pending acquisitions of Cascade Community Bank, a wholly owned subsidiary of
 Cascade Bancorp, Inc., and Bank of Fife.  Cascade Community Bank, with
 approximately $87 million in total assets at June 30, 1997, operates three
 branches in the Auburn/Kent Valley of south King County.  Bank of Fife
 operates one banking office in downtown Fife (Pierce County), with assets
 totaling approximately $33 million at June 30, 1997.  Both of these
 transactions are scheduled to close during the fourth quarter of 1997.
     The Cascade and Fife transactions will be Columbia's first bank
 acquisitions.  Going forward, the Company will continue to carry out its
 expansion strategy through a combination of internal growth and acquisitions.
     "All of the Company's growth experienced thus far has been the result of
 internal expansion efforts," noted W. W. Philip, President and Chief Executive
 Officer of Columbia Bank.  "With our upcoming acquisitions, Columbia Bank's
 branch network will total 22 offices in 3 counties by year-end, allowing for a
 significant jump in market share in new markets.  Also by that time,
 construction will be nearing completion on 2 more offices in Tacoma.  Our
 ongoing plans are to focus simultaneously on establishing the Bank's presence
 in new markets while strengthening our presence in existing ones."
     Columbia Banking System is a Tacoma, Washington-based bank holding company
 which operates Columbia Bank, a state-chartered full-service commercial bank
 with 18 branch offices in Pierce, King and Cowlitz counties.
 
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                         Columbia Banking System, Inc.
                        (in thousands except per share)
 
                                     Three Months Ended   Nine Months Ended
                                         September 30,      September 30,
                                      1997       1996        1997       1996
 
     Interest Income
      Loans                       $  12,730   $   9,275   $  34,694   $  26,218
      Securities available for
        sale                            773         491       2,228       1,317
      Deposits with banks               198         275         807         603
       Total interest income         13,701      10,041      37,729      28,138
     Interest Expense
      Deposits                        5,334       4,230      15,010      11,823
      Federal Home Loan Bank advances   509         526       1,337       1,410
      Other borrowings                   --          24          --         149
       Total interest expense         5,843       4,780      16,347      13,382
      Net Interest Income             7,858       5,261      21,382      14,756
      Provision for loan losses         499         330       2,105       1,090
      Net interest income after
       provision for loan losses      7,359       4,931      19,277      13,666
     Noninterest Income
      Service charges and other fees    818         611       2,464       1,759
      Mortgage banking                  224         152         519         460
      Gain on sale of loans              --          --       1,035          --
      Credit card fees and other        772         627       2,121       1,644
       Total noninterest income       1,814       1,390       6,139       3,863
     Noninterest Expense
      Compensation and
       employee benefits              2,927       2,205       8,199       5,832
      Occupancy                         786         889       2,586       2,505
      Professional services             135         146         360         424
      Advertising and promotion         256         209         758         583
      Printing and supplies             129         102         429         294
      Regulatory premiums and
       assessments                       48         130         134         314
      Data processing                   350         211         886         574
      Gains on, and net cost of,
       real estate owned                 (2)         --          82          --
      Other                           1,710       1,334       5,068       4,068
      SAIF special assessment            --         612          --         612
       Total noninterest expense      6,339       5,838      18,502      15,206
     Income before income taxes       2,834         483       6,914       2,323
     Provision for income taxes         908          --       2,102          --
     Net Income                   $   1,926   $     483   $   4,812   $   2,323
     Per share (on average
      shares outstanding):
      Net income                  $    0.34   $    0.12   $    0.85   $    0.61
      Fully diluted net income         0.34        0.12        0.85        0.61
      Average number of common and
       common equivalent shares
       outstanding                    5,703       3,884       5,668       3,786
      Fully diluted average common
       and common equivalent
       shares outstanding             5,703       3,884       5,697       3,786
 
                          CONSOLIDATED BALANCE SHEETS
                         Columbia Banking System, Inc.
                                 (in thousands)
 
                                                    September 30,  December 31,
                                                           1997         1996
 
     Assets
     Cash and due from banks                           $   38,993   $   32,092
     Interest-earning deposits with banks                  23,734       38,086
     Securities available for sale:
      U.S. Treasury & Government Agencies                  38,540       30,481
      Mortgage-backed                                       9,216       10,760
      FHLB stock                                            4,540        4,248
       Total securities available for sale                 52,296       45,489
     Loans held for sale                                    4,790       11,341
     Loans                                                565,498      446,095
      Less: allowance for loan losses                       5,625        4,504
      Loans, net                                          559,873      441,591
     Interest receivable                                    4,276        3,347
     Premises and equipment, net                           20,439       15,250
     Real estate owned                                        301           40
     Other                                                  5,626        1,680
     Total Assets                                      $  710,328   $  588,916
     Liabilities and Shareholders' Equity
     Deposits:
     Noninterest-bearing                               $  116,963   $   83,983
     Interest-bearing                                     484,541      409,239
     Total deposits                                       601,504      493,222
     Federal Home Loan Bank advances                       37,000       32,000
     Other liabilities                                      7,478        4,734
     Total liabilities                                    645,982      529,956
     Shareholders' equity:
      Preferred stock (no par value)
       Authorized, 2,000,000 shares;
       None outstanding
                               September 30,  December 31,
                                    1997          1996
     Common stock (no par value)
      Authorized shares            11,000        10,000
      Issued and outstanding        5,511         5,185    60,975       56,340
     Retained earnings                                      3,365        2,694
     Unrealized losses on
      securities available for
      sale, net of tax                                          6          (74)
      Total shareholders' equity                           64,346       58,960
     Total Liabilities and
      Shareholders' Equity                             $  710,328   $  588,916
 
                         Columbia Banking System, Inc.
                              Financial Statistics
                (dollars in thousands, except per share amounts)
 
                                     Three Months Ended     Nine Months Ended
                                        September 30,         September 30,
                                      1997        1996       1997       1996
 
     Earnings:
      Net interest income         $   7,858   $   5,261   $  21,382  $  14,756
      Provision for loan losses         499         330       2,105      1,090
      SAIF special assessment            --         612          --        612
      Net income(*)                   1,926         483       4,812      2,323
     Per share:
      Net income                       0.34        0.12        0.85       0.61
     Averages:
      Total assets                  677,119     505,602     632,228    467,424
      Earning assets                623,909     474,380     584,365    437,503
      Loans                         559,735     421,009     516,183    392,590
      Deposits                      569,753     428,622     532,826    394,924
      Shareholders' equity           63,861      35,543      62,002     33,501
     Financial Ratios:
     Return on average assets          1.13%       0.38%       1.02%      0.66%
     Return on average equity         11.97        5.39       10.38       9.24
     Net interest margin               5.00        4.40        4.89       4.49
     Average equity to average assets  9.43        7.03        9.81       7.17
 
                                     September 30,  September 30,  December 31,
                                         1997           1996           1996
 
     Period-end:
      Total assets                   $  710,328     $  530,854     $  588,916
      Loans                             565,498        431,772        446,095
      Allowance for loan losses           5,625          4,348          4,504
      Deposits                          601,504        454,500        493,222
      Shareholders' equity               64,346         36,876         58,960
     Book value per share                 11.68           9.47          10.83
     Nonperforming assets:
      Nonaccrual loans                      492          1,379          2,227
      Restructured loans                     22            152             25
      Real estate owned                     301              0             40
       Total nonperforming assets    $      815     $    1,531     $    2,292
     Nonperforming assets to
      period-end assets:                   0.11%          0.29%          0.39%
 
     (*) During 1996, the Company benefited from utilization of its net
 operating loss carryforwards for federal income tax purposes.  Therefore, the
 Company had no federal income tax provision for the first nine months of 1996.
 Had earnings been fully taxed, net income for the three and nine months ended
 September 30, 1996, would have been $319,000 and $1.5 million, respectively.
 
 

SOURCE Columbia Banking System

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