-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Qq+6Dj9nsSX2bsPi6o4m3Vumx9fhru/K/7HyRkGqaImTBGQRnrogwleNltKfSMGb r4sair/T/BNcO8fh9tYzJw== 0001072613-03-001180.txt : 20030724 0001072613-03-001180.hdr.sgml : 20030724 20030724160030 ACCESSION NUMBER: 0001072613-03-001180 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030724 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030724 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLUMBIA BANKING SYSTEM INC CENTRAL INDEX KEY: 0000887343 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 911422237 STATE OF INCORPORATION: WA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-20288 FILM NUMBER: 03801037 BUSINESS ADDRESS: STREET 1: 1102 BROADWAY PLAZA CITY: TACOMA STATE: WA ZIP: 98402 BUSINESS PHONE: 2533051900 MAIL ADDRESS: STREET 1: 1102 BROADWAY PLAZA CITY: TACOMA STATE: WA ZIP: 98402 8-K 1 form-8k_12086.txt FORM 8-K DATED JULY 24, 2003 ================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 24, 2003 COLUMBIA BANKING SYSTEM, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) WASHINGTON - -------------------------------------------------------------------------------- (State or other jurisdiction of incorporation) 0-20288 91-1422237 - ------------------------ ------------------------------- (Commission File Number) IRS Employer Identification No. 1301 A Street Tacoma, WA 98402 - -------------------------------------------------------------------------------- (Address of principal executive offices) (zip code) Registrant's telephone number, including area code: (253) 305-1900 ================================================================================ ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL RESULTS On July 24, 2003, we issued a press release announcing our second quarter 2003 financial results. A copy of the press release is attached as Exhibit 99.1 and is incorporated herein by reference in its entirety. Exhibits -------- 99.1 Press Release dated July 24, 2003 announcing Second Quarter 2003 Financial Results. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: July 24, 2003 COLUMBIA BANKING SYSTEM, INC. By: /s/ Melanie J. Dressel ------------------------- Melanie J. Dressel Chief Executive Officer EX-99.1 3 exh99-1_12086.txt PRESS RELEASE EXHIBIT 99.1 ------------ FOR IMMEDIATE RELEASE --------------------- JULY 24, 2003 Contacts: Melanie J. Dressel, President and Chief Executive Officer (253) 305-1911 Gary R. Schminkey, Executive Vice President and Chief Financial Officer (253) 305-1966 COLUMBIA BANKING SYSTEM ANNOUNCES SOUND EARNINGS FOR SECOND QUARTER 2003 SECOND QUARTER HIGHLIGHTS o NET INCOME OF $4.8 MILLION, UP 51% FROM 2ND QUARTER 2002. o DILUTED EARNINGS PER SHARE OF $0.35, UP 46% FROM THE PRIOR YEAR. o NONINTEREST INCOME UP 24% AND 30% COMPARED TO 2ND QUARTER AND THE FIRST 6 MONTHS OF 2002, RESPECTIVELY. o AVERAGE CORE DEPOSIT GROWTH OF 15%, COMPARED WITH THE PRIOR YEAR. o TOTAL NONPERFORMING ASSETS DECREASED 61% FROM JUNE 30, 2002; ALLOWANCE FOR LOAN LOSSES TO NONPERFORMING ASSETS IMPROVED TO 210%. o ALLOWANCE FOR LOAN LOSSES TO TOTAL LOANS IMPROVED TO 1.82% FROM 1.36% A YEAR AGO. o RETURN ON EQUITY AND RETURN ON ASSETS IMPROVED TO 13.61% AND 1.12%, RESPECTIVELY, IN 2ND QUARTER 2003. TACOMA, WASHINGTON---Columbia Banking System, Inc. (Nasdaq: COLB) today announced net income for the second quarter ended June 30, 2003 of $4.8 million, an increase of 51% compared to $3.2 million for the second quarter of 2002. For the same periods, earnings per share increased 46% to $0.35 per diluted share, from $0.24 per diluted share. Total nonperforming assets decreased $14.8 million, or 61%, from $24.3 million at June 30, 2002 to $9.5 million at June 30, 2003. Noninterest income for the second quarter 2003 was $5.7 million, an increase of 24% from $4.6 million for the second quarter 2002. Noninterest expense for the second quarter 2003 decreased 1%, to $14.0 million, from $14.2 million a year ago. Net income for the six months ended June 30, 2003 was $9.2 million, an increase of $6.5 million from net income of $2.7 million for the first six months of 2002. On a diluted per share basis, net income for the six months ended June 30, 2003 was $0.68, compared with $0.20 cents for the same period last year. This increase in net income is primarily due to lower loan loss provisions than the prior year. Additionally, noninterest income for the first six months of 2003 improved to $11.3 million, a 30% increase from $8.7 million the prior year. Noninterest expense for the first six months of 2003 was unchanged at $27.7 million, compared to $27.8 million a year ago. "Our earnings improved during the second quarter, despite a continued slow economy in the Pacific Northwest and a challenging interest rate environment," stated Melanie J. Dressel, President and Chief Executive Officer. "We continue to focus on improving our business processes with the ultimate goal of enhancing profitability. Columbia's noninterest income improved significantly in virtually all categories compared to last year, while noninterest expenses decreased slightly from a year ago." Ms. Dressel further noted, "One of our most significant achievements this quarter was in the area of problem loans, as evidenced by the improvement in the ratio of our allowance for loan losses to total loans and our coverage of nonperforming assets. In the second quarter 2003, the provision for loan losses was $1.0 million, as compared to $2.0 million for the same period in 2002. Nonperforming assets decreased 61% from June 30, 2002 and 32% from March 31, 2003. The allowance for loan losses to nonperforming assets improved to 210% from 65% a year ago. We are pleased with this dramatic decrease in nonperforming assets, reflecting our ongoing focus on the quality of our loan portfolio." At June 30, 2003, Columbia's total assets were $1.7 billion, an increase of 8% from $1.6 billion at June 30, 2002. Total loans were $1.1 billion at June 30, 2003, down 5% from June 30, 2002, and total securities rose to $386.0 million at June 30, 2003, an increase of 59% from the prior year. Total deposits increased 15% from June 30, 2002, ending at $1.5 billion at June 30, 2003. Core deposits at June 30, 2003 were $1.1 billion, an increase of $199 million, or 23%, compared with 2002. Ms. Dressel continued, "Total loans have decreased, primarily due to the slow economy which has resulted in lower line of credit usage, as well as softened demand for new commercial loans as businesses reduced inventory and paid down debt. In this rate environment, the strongest demand is for fixed rate commercial real estate loans. We continue to manage our interest rate risk by focusing on assets with relatively short durations." "Although our South Sound regional economy, where over 75% of our market is currently centered, is poised to lead the state in economic activity this year, a slow recovery is predicted," Ms. Dressel further noted. "We will continue to leverage the strong base of branches we have built in our existing market areas. Our primary emphasis will be to provide a complete banking relationship for businesses, the business owners and their employees." OPERATING RESULTS QUARTER ENDED JUNE 30, 2003 NET INTEREST INCOME Net interest income for the second quarter of 2003 increased 1% to $16.1 million, from $15.9 million for the three months ended June 30, 2002. The increase is due to the growth in core deposits and reflects the steps the Company has taken to manage its deposit costs. With the decreases in the prime rate since the fourth quarter 2002, the Company experienced downward pressure on its net interest margin. Net interest margin decreased to 4.26% in the second quarter of 2003, from 4.54% for the same period last year. Average interest-earning assets grew to $1.55 billion, or 9%, during the second quarter of 2003, compared with $1.43 billion in the second quarter of 2002. The yield on average interest-earning assets decreased 87 basis points (a basis point equals 1/100 of 1%) to 5.64% during the second quarter of 2003 compared with 6.51% during the same period of 2002. In comparison, average interest-bearing liabilities grew to $1.27 billion, or 6%. The cost of average interest-bearing liabilities decreased 65 basis points to 1.70% during the second quarter of 2003, from 2.35% in the same period of 2002. For the six months ended June 30, 2003, net interest income increased 2% to $32.1 million from $31.5 million for the same period last year. During the first six months of 2003, the Company's net interest margin decreased to 4.31% from 4.54 % for the same period of 2002. Average interest-earning assets grew to $1.54 billion during the first six months of 2003, compared with $1.42 billion for the same period of 2002. The yield on average interest-earning assets decreased 84 basis points to 5.77% during the first six months of 2003, from 6.61% in 2002. In comparison, average interest-bearing liabilities grew to $1.25 billion compared with $1.19 billion for the first six months of 2002. The cost of average interest-bearing liabilities decreased to 1.79% during the first six months of 2003 from 2.48% in the same period of 2002. NONINTEREST INCOME Noninterest income increased $1.1 million or 24% in the second quarter of 2003, and $2.6 million, or 30%, for the first six months of 2003 compared with the same periods in 2002. Increases during the second quarter and first six months of 2003 were primarily centered in residential lending, service charge and other fees, and merchant services income. Increases in service charge and other fees reflect growth in core deposits. Increases in merchant services income is due to the overall growth of the customer base, while residential lending increases were primarily due to continued low mortgage rates. NONINTEREST EXPENSE Total noninterest expense decreased 1% to $14.0 million for the second quarter of 2003, and decreased slightly to $27.7 million for the first six months of 2003 compared with the same period in 2002. The Company's efficiency ratio (noninterest expense divided by the sum of net interest income and noninterest income on a tax equivalent basis, excluding nonrecurring income and expense) was 62.61% for the second quarter 2003 and 62.22% for first six months of the year, compared to 67.97% for the second quarter 2002 and 68.14% for the first six months of 2002. The change in the Company's efficiency ratio is primarily due to growth in noninterest income and controlled noninterest expenses. NONPERFORMING ASSETS AND LOAN LOSS PROVISION The Company's provision for loan losses was $1.0 million for second quarter 2003, compared with $2.0 million for second quarter 2002. For the quarters ended June 30, 2003 and 2002, net loan charge-offs amounted to $278,000 and $1.4 million, respectively. For the first 6 months ended June 30, 2003 and 2002, net loan charge-offs were $1.8 million and $8.0 million, respectively. The allowance for loan losses had a net increase of $4.2 million, to $20.0 million at June 30, 2003 as compared to quarter-end a year ago. The allowance for loan losses as a percentage of loans (excluding loans held for sale at each date) improved to 1.82% at June 30, 2003 as compared to 1.36% of loans at June 30, 2002, and 1.63% at year-end 2002. At June 30, 2003, the allowance for loan losses to nonperforming loans was 322% compared to 96.3% at June 30, 2002. The allowance for loan losses to nonperforming assets was 210% compared to 65% the prior year. The Company currently has no plans for additional new locations in 2003. In May 2003, the Issaquah branch, a storefront facility in the Issaquah Commons, was closed. Although this location is in a market Columbia would ultimately like to serve, the branch was not performing up to expectations. Columbia Banking System, Inc. is a Tacoma-based bank holding company whose wholly owned subsidiary is Columbia Bank, a Washington state-chartered full-service commercial bank with 35 banking offices in Pierce, King, Cowlitz, Kitsap and Thurston counties. Columbia's stock trades on the Nasdaq Stock MarketSM under the symbol COLB. # # # NOTE REGARDING FORWARD-LOOKING STATEMENTS THIS NEWS RELEASE INCLUDES FORWARD LOOKING STATEMENTS, WHICH MANAGEMENT BELIEVES ARE A BENEFIT TO SHAREHOLDERS. THESE FORWARD LOOKING STATEMENTS DESCRIBE COLUMBIA'S MANAGEMENT'S EXPECTATIONS REGARDING FUTURE EVENTS AND DEVELOPMENTS SUCH AS FUTURE OPERATING RESULTS, GROWTH IN LOANS AND DEPOSITS, CONTINUED SUCCESS OF COLUMBIA'S STYLE OF BANKING AND THE STRENGTH OF THE LOCAL ECONOMY. THE WORDS "WILL," "BELIEVE," "EXPECT," "SHOULD," AND "ANTICIPATE" AND WORDS OF SIMILAR CONSTRUCTION ARE INTENDED IN PART TO HELP IDENTIFY FORWARD LOOKING STATEMENTS. FUTURE EVENTS ARE DIFFICULT TO PREDICT, AND THE EXPECTATIONS DESCRIBED ABOVE ARE NECESSARILY SUBJECT TO RISK AND UNCERTAINTY THAT MAY CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY AND ADVERSELY. IN ADDITION TO DISCUSSIONS ABOUT RISKS AND UNCERTAINTIES SET FORTH FROM TIME TO TIME IN COLUMBIA'S FILINGS WITH THE SEC, FACTORS THAT MAY CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTEMPLATED BY SUCH FORWARD LOOKING STATEMENTS INCLUDE, AMONG OTHERS, THE FOLLOWING POSSIBILITIES: (1) LOCAL, NATIONAL AND INTERNATIONAL ECONOMIC CONDITIONS ARE LESS FAVORABLE THAN EXPECTED OR HAVE A MORE DIRECT AND PRONOUNCED EFFECT ON COLUMBIA THAN EXPECTED AND ADVERSELY AFFECT COLUMBIA'S ABILITY TO CONTINUE ITS INTERNAL GROWTH AT HISTORICAL RATES AND MAINTAIN THE QUALITY OF ITS EARNING ASSETS; (2) CHANGES IN INTEREST RATES REDUCE INTEREST MARGINS MORE THAN EXPECTED AND NEGATIVELY AFFECT FUNDING SOURCES; (3) PROJECTED BUSINESS INCREASES FOLLOWING STRATEGIC EXPANSION OR OPENING OR ACQUIRING NEW BRANCHES ARE LOWER THAN EXPECTED; (4) COSTS OR DIFFICULTIES RELATED TO THE INTEGRATION OF ACQUISITIONS ARE GREATER THAN EXPECTED; (5) COMPETITIVE PRESSURE AMONG FINANCIAL INSTITUTIONS INCREASES SIGNIFICANTLY; (6) LEGISLATION OR REGULATORY REQUIREMENTS OR CHANGES ADVERSELY AFFECT THE BUSINESSES IN WHICH COLUMBIA IS ENGAGED. FINANCIAL STATISTICS
==================================================================================================================== COLUMBIA BANKING SYSTEM, INC. THREE MONTHS ENDED SIX MONTHS ENDED (UNAUDITED) JUNE 30, JUNE 30, ---------------------------- ---------------------------- (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) 2003 2002 2003 2002 - -------------------------------------------------------------------------------------------------------------------- EARNINGS - -------- Net interest income $ 16,114 $ 15,927 $ 32,133 $ 31,483 Provision for loan loss 1,000 1,980 2,600 9,045 Noninterest income 5,735 4,617 11,288 8,684 Noninterest expense 14,044 14,152 27,738 27,845 Net income 4,765 3,154 9,196 2,726 PER SHARE - --------- Net income (basic) $ 0.36 $ 0.24 $ 0.69 $ 0.21 Net income (diluted) 0.35 0.24 0.68 0.20 AVERAGES - -------- Total assets $1,709,468 $1,578,889 $1,691,358 $1,563,165 Interest-earning assets 1,554,936 1,430,752 1,537,953 1,423,888 Loans 1,143,862 1,176,788 1,159,810 1,185,176 Securities 404,914 251,125 370,365 232,146 Deposits 1,455,247 1,317,080 1,451,744 1,304,338 Core deposits 982,948 858,297 970,001 847,040 Shareholders' Equity 140,417 120,324 137,803 120,860 FINANCIAL RATIOS - ---------------- Return on average assets 1.12% 0.80% 1.10% 0.35% Return on average equity 13.61% 10.51% 13.46% 4.55% Net interest margin 4.26% 4.54% 4.31% 4.54% Efficiency ratio (tax equivalent) (1) 62.61% 67.97% 62.22% 68.14% Average equity to average assets 8.21% 7.62% 8.15% 7.73% JUNE 30 JUNE 30 DECEMBER 31 PERIOD END 2003 2002 2002 - ---------- ---------- ---------- ---------- Total assets $1,724,798 $1,590,862 $1,699,613 Loans 1,098,675 1,160,847 1,175,853 Allowance for loan losses 19,994 15,767 19,171 Securities 385,971 242,077 337,412 Deposits 1,542,387 1,346,199 1,487,153 Core deposits 1,079,879 881,013 980,709 Shareholders' equity 144,871 122,990 132,384 Book value per share 10.82 9.27 9.95 NONPERFORMING ASSETS - -------------------- Nonaccrual loans $ 6,165 $ 15,956 $ 16,918 Restructured loans 50 425 187 Personal property owned 769 1,275 916 Real estate owned 2,547 6,668 130 ---------- ---------- ---------- Total nonperforming assets $ 9,531 $ 24,324 $ 18,151 Nonperforming loans to period-end loans: 0.57% 1.41% 1.45% Nonperforming assets to period-end assets: 0.55% 1.53% 1.07% Allowance for loan losses to period-end loans 1.82% 1.36% 1.63% Allowance for loan losses to nonperforming loans 321.71% 96.25% 112.08% Allowance for loan losses to nonperforming assets 209.78% 64.82% 105.62% Net loan charge-offs $ 1,777(2) $ 8,012(2) $ 11,343(3) (1) Noninterest expense divided by the sum of net interest income and noninterest income on a tax equivalent basis, excluding nonrecurring income and expense. (2) For the six months ended June 30. (3) For the year ended December 31.
QUARTERLY FINANCIAL STATISTICS COLUMBIA BANKING SYSTEM, INC.
=================================================================================================================================== THREE MONTHS ENDED ---------------------------------------------------------------------------------- UNAUDITED JUNE 30 MAR 31 DEC 31 SEP 30 JUNE 30 (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) 2003 2003 2002 2002 2002 - ----------------------------------------------------------------------------------------------------------------------------------- EARNINGS - -------- Net interest income $ 16,114 $ 16,019 $ 16,587 $ 16,219 $ 15,927 Provision for loan loss 1,000 1,600 2,700 4,035 1,980 Noninterest income 5,735 5,553 5,858 5,508 4,617 Noninterest expense 14,044 13,694 13,335 12,473 14,152 Net income 4,765 4,431 4,472 3,687 3,154 PER SHARE - --------- Net income [basic] 0.36 0.33 0.34 0.28 0.24 Net income [diluted] 0.35 0.33 0.33 0.28 0.24 AVERAGES - -------- Total assets 1,709,468 1,673,047 1,668,848 1,607,831 1,578,889 Interest-earning assets 1,554,936 1,520,782 1,518,118 1,451,499 1,430,752 Loans 1,143,862 1,175,935 1,186,886 1,178,493 1,176,788 Securities 404,914 335,432 280,358 242,844 251,125 Deposits 1,455,247 1,448,203 1,454,955 1,378,396 1,317,080 Core deposits 982,948 956,909 951,165 893,548 858,297 Shareholders' Equity 140,417 135,160 129,137 125,421 120,324 FINANCIAL RATIOS - ---------------- Return on average assets 1.12% 1.07% 1.06% 0.91% 0.80% Return on average equity 13.61% 13.30% 13.74% 11.66% 10.51% Net interest margin 4.26% 4.37% 4.42% 4.52% 4.54% Efficiency ratio (tax equivalent) 62.61% 61.82% 60.28% 62.10% 67.97% Average equity to average assets 8.21% 8.08% 7.74% 7.80% 7.62% PERIOD END - ---------- Total assets 1,724,798 1,758,587 1,699,613 1,661,370 1,590,862 Loans 1,098,675 1,146,527 1,175,853 1,167,633 1,160,847 Allowance for loan losses 19,994 19,272 19,171 18,426 15,767 Securities 385,971 426,088 337,412 253,114 242,077 Deposits 1,542,387 1,489,039 1,487,153 1,437,728 1,346,199 Core deposits 1,079,879 1,006,121 980,709 945,502 881,013 Shareholders' equity 144,871 137,594 132,384 127,699 122,990 Book value per share 10.82 10.32 9.95 9.63 9.27 NONPERFORMING ASSETS - -------------------- Nonaccrual loans 6,165 10,532 16,918 15,027 15,956 Restructured loans 50 130 187 425 425 Personal property owned 769 836 916 1,148 1,275 Real estate owned 2,547 2,500 130 4,681 6,668 ---------- ---------- ---------- ---------- ---------- Total nonperforming assets 9,531 13,998 18,151 21,281 24,324 Nonperforming loans to period-end loans 0.57% 0.93% 1.45% 1.32% 1.41% Nonperforming assets to period-end assets 0.55% 0.80% 1.07% 1.28% 1.53% Allowance for loan losses to period-end loans 1.82% 1.68% 1.63% 1.58% 1.36% Allowance for loan losses to nonperforming loans 321.71% 180.75% 112.08% 119.25% 96.25% Allowance for loan losses to nonperforming assets 209.78% 137.68% 105.62% 86.58% 64.82% Net loan charge-offs 278 1,499 1,955 1,376 1,439
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS COLUMBIA BANKING SYSTEM, INC. (UNAUDITED)
================================================================================================================== THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, ------------------------- ------------------------- (IN THOUSANDS EXCEPT PER SHARE) 2003 2002 2003 2002 - ------------------------------------------------------------------------------------------------------------------ INTEREST INCOME Loans $ 17,861 $ 19,929 $ 36,473 $ 40,408 Securities available for sale 3,557 2,970 6,654 5,542 Securities held to maturity 43 53 87 112 Deposits with banks 18 12 45 55 - ----------------------------------------------------- ---------- ---------- ---------- ---------- Total interest income 21,479 22,964 43,259 46,117 INTEREST EXPENSE Deposits 4,770 6,099 9,976 12,814 Federal Home Loan Bank advances 323 633 600 1,205 Trust preferred obligations 272 305 550 615 - ----------------------------------------------------- ---------- ---------- ---------- ---------- Total interest expense 5,365 7,037 11,126 14,634 - ----------------------------------------------------- ---------- ---------- ---------- ---------- NET INTEREST INCOME 16,114 15,927 32,133 31,483 Provision for loan losses 1,000 1,980 2,600 9,045 - ----------------------------------------------------- ---------- ---------- ---------- ---------- Net interest income after provision for loan losses 15,114 13,947 29,533 22,438 NONINTEREST INCOME Service charges and other fees 2,351 1,976 4,746 3,918 Mortgage banking 1,117 563 2,198 1,159 Merchant services fees 1,517 1,233 2,808 2,279 Gain on sale of investment securities, net 234 234 Bank owned life insurance (BOLI) 368 374 766 604 Other 382 237 770 490 - ----------------------------------------------------- ---------- ---------- ---------- ---------- Total noninterest income 5,735 4,617 11,288 8,684 NONINTEREST EXPENSE Compensation and employee benefits 7,382 7,410 14,554 14,699 Occupancy 2,210 2,054 4,397 4,021 Merchant processing 638 506 1,134 923 Advertising and promotion 545 647 1,052 1,323 Data processing 467 471 916 932 Legal & Professional services 470 399 984 809 Taxes, licenses & fees 362 423 812 851 Net cost (gains) of OREO 42 (7) 37 (34) Other 1,928 2,249 3,852 4,321 - ----------------------------------------------------- ---------- ---------- ---------- ---------- Total noninterest expense 14,044 14,152 27,738 27,845 - ----------------------------------------------------- ---------- ---------- ---------- ---------- Income before income taxes 6,805 4,412 13,083 3,277 Provision for income taxes 2,040 1,258 3,887 551 - ----------------------------------------------------- ---------- ---------- ---------- ---------- NET INCOME $ 4,765 $ 3,154 $ 9,196 $ 2,726 ===================================================== ========== ========== ========== ========== Net income per common share: Basic $ 0.36 $ 0.24 $ 0.69 $ 0.21 Diluted 0.35 0.24 0.68 0.20 Dividend declared per common share 0.05 0.05 Average number of common shares outstanding 13,359 13,157 13,342 13,151 Average number of diluted common shares outstanding 13,530 13,311 13,477 13,303
CONSOLIDATED CONDENSED BALANCE SHEETS COLUMBIA BANKING SYSTEM, INC. (UNAUDITED) (IN THOUSANDS)
======================================================================================================== JUNE 30, DECEMBER 31, 2003 2002 - -------------------------------------------------------------------------------------------------------- ASSETS Cash and due from banks $ 72,170 $ 67,058 Interest-earning deposits with banks 56,368 18,425 - -------------------------------------------------------------------------- ---------- ---------- Total cash and cash equivalents 128,538 85,483 Securities available for sale at fair value (amortized cost of $364,282 and $320,499 respectively) 370,012 321,513 Securities held to maturity (fair value of $6,253 and $6,412 respectively) 6,023 6,192 Federal Home Loan Bank stock 9,936 9,707 Loans held for sale 32,438 22,102 Loans, net of unearned income of ($2,680) and ($2,625) respectively 1,098,675 1,175,853 Less: allowance for loan losses 19,994 19,171 - -------------------------------------------------------------------------- ---------- ---------- Loans, net 1,078,681 1,156,682 Interest receivable 6,692 6,710 Premises and equipment, net 51,739 52,921 Real estate owned 2,547 130 Other 38,192 38,173 - -------------------------------------------------------------------------- ---------- ---------- Total Assets $1,724,798 $1,699,613 ========================================================================== ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Noninterest-bearing $ 324,694 $ 299,862 Interest-bearing 1,217,693 1,187,291 - -------------------------------------------------------------------------- ---------- ---------- Total deposits 1,542,387 1,487,153 Federal Home Loan Bank advances 7,133 46,470 Trust preferred obligations 21,466 21,433 Other liabilities 8,941 12,173 - -------------------------------------------------------------------------- ---------- ---------- Total liabilities 1,579,927 1,567,229 Shareholders' equity: Preferred stock (no par value) Authorized, 2 million shares; none outstanding June 30, December 31, Common stock (no par value) 2003 2002 ---------- ---------- Authorized shares 60,032 60,032 Issued and outstanding 13,386 13,310 111,922 111,028 Retained earnings 29,224 20,696 Accumulated other comprehensive income - Unrealized gains on securities available for sale, net of tax 3,725 660 - -------------------------------------------------------------------------------------------------------- Total shareholders' equity 144,871 132,384 - -------------------------------------------------------------------------------------------------------- Total Liabilities and Shareholders' Equity $1,724,798 $1,699,613 ========================================================================================================
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