HILLSBORO, OR -- (Marketwire) -- 01/25/13 -- Columbia Commercial Bancorp (OTCBB: CLBC), a single bank holding company for Columbia Community Bank (the Bank), reports 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.
"The Company had considerable success during 2012 with a variety of its strategic objectives," states the Company's President and CEO, Rick A. Roby. And he continues, "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."
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. This reduction was brought about by retiring $4.7 million of FHLB borrowings that matured during second quarter 2012, prepaying $6.9 million during the fourth quarter of FHLB borrowings that had an average rate of 4.23%, and throughout the year by reducing brokered deposits by $9.9 million and repurchase agreements by $9.3 million. "And after all the changes during 2012, the Company still retains strong liquidity with over $36.9 million of cash and unpledged securities, or 11.4% of total assets," states Bob Ekblad, the Company's Chief Financial Officer.
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. "We are seeing an increased level of confidence within several of our targeted business segments so loan demand has picked up this past year; and while the competition for these loans is strong, our team of experienced professionals continue to show our ability to succeed as evidenced by this loan growth; and we expect more for 2013," comments the Company's Chief Credit Officer, Fred Johnson.
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