Go to Top

Columbia Commercial Bancorp (CLBC): Full Year and Fourth Quarter 2012 Results

Columbia Commercial Bancorp (OTCBB: CLBC) operates as the holding company for Columbia Community Bank, which provides various banking products and services to businesses, non-profit organizations, and individuals in Oregon.

CLBC reported a net profit of $1.2 million, or $0.38 per diluted share for the year ended December 31, 2012 compared to $184,000, or $0.06 per diluted share for 2011.

Net income for fourth quarter 2012 was $608,000 or $0.18 per diluted share after a $750,000 negative loan loss provision which was partially offset by a $144,000 prepayment fee expense on $6.9 million of FHLB borrowings. The effect of these two transactions was $370,000 after tax. Net income for third quarter 2012 was $294,000, or $0.09 per diluted share. Return on average equity for the full year of 2012 was 6.64% compared to 1.03% for 2011.

Rick A. Roby, Columbia Commercial’s President and CEO, stated:

The Company had considerable success during 2012 with a variety of its strategic objectives. During the year, low-yielding cash and investments were utilized to pay down high-cost liabilities such as brokered deposits, repurchase agreements, and FHLB borrowings; and while these activities deleveraged the overall balance sheet by almost $30.0 million, at the same time we were still able to grow loans by over $6.4 million. Year-to-date net interest margins reflect the success of these initiatives which also set a strong foundation for continued improvement in net interest income for 2013. Additionally, during the fourth quarter, the Company converted over $1.9 million of its 8.50% convertible subordinated notes into common stock which moving forward reduces both the leverage and interest expense at the holding company level.

Highlights:

  • Total assets of $322.6 million as of December 31, 2012 were down $30.0 million, or 8.5%, over the past year when compared to the $352.6 million at year-end 2011.
  • Cash, federal funds sold, and investments totaled $61.3 million as of December 31, 2012, or 19.0% of total assets, and are down $35.4 million compared to the end of 2011 when they totaled $96.7 million, or 27.4% of total assets.
  • Total loans at $244.8 million as of December 31, 2012 are up $1.0 million, or 0.4%, during the fourth quarter and have increased $6.4 million or 2.7% when compared to the $238.4 million outstanding as of December 31, 2011. As of December 31, 2012, the Bank had $329,000 in loans, or 0.13% of total 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 totaled $17.7 million as of December 31, 2012 and are down $1.3 million compared to year-end 2011 when they were $19.0 million. During 2012 the Bank reduced non-performing assets through pay downs on nonaccrual loans and the liquidation of OREO properties by $7.1 million while additions to nonaccrual loans (which were primarily from two existing relationships) were $5.8 million. OREO at year-end 2012 consisted of nine properties totaling $7.3 million which was 41.2% of non-performing assets while nonaccrual loans consisted of nine relationships totaling $10.4 million, or 58.8% of non-performing assets.
  • Total deposits for the Bank at $228.0 million as of December 31, 2012 were down $11.1 million, or 4.6% for the year when compared to deposits of $239.1 million at year-end 2011.
  • Asset income for full year 2012 at $14.7 million was down $1.2 million, or 7.2%, compared to the $15.9 million for 2011 due substantially from lower yields on both the loan and investment portfolios.
  • For 2012 the Company recognized $51,000 in realized gains on securities that were liquidated as part the Bank’s deleveraging strategy while for 2011 security gains were $603,000. The 2012 OREO liquidations and revaluation adjustments netted to a $19,000 loss for the year showing some stabilization within the real estate markets when compared to 2011 and the net losses were $188,000.
  • During the fourth quarter of 2012, the Company converted over $1.9 million of its $3.0 million subordinated 8.50% convertible notes, along with their fourth quarter interest into 496,596 of common shares at $4.00 per share. The dilution from this transaction was approximately $0.26 per share but reduces leverage, reduces cash flow requirements, and saves over $165,000 in interest expense annually at the holding company.