<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended March 31, 2000
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from __________ to __________
Commission file number 0-27938
COLUMBIA BANCORP
(Exact name of registrant as specified in its charter)
Oregon 93-1193156
(State of Incorporation) (I.R.S. Employer
Identification Number)
420 East Third Street, Suite 200
The Dalles, Oregon 97058
(Address of principal executive offices)
(541) 298-6649
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
YES [X] NO [ ]
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
8,012,822 shares of common stock as of April 24, 2000
<PAGE> 2
COLUMBIA BANCORP
FORM 10-Q
MARCH 31, 2000
INDEX
<TABLE>
<CAPTION>
PAGE
PART I - FINANCIAL INFORMATION REFERENCE
- ------------------------------ ---------
<S> <C>
Consolidated Balance Sheets as of March 31, 2000 and 3
December 31, 1999.
Consolidated Statements of Income and Comprehensive Income for the three
months ended March 31, 2000 and 1999. 4
Consolidated Statements of Cash Flows for the three months ended March
31, 2000 and 1999. 5
Consolidated Statements of Changes in Shareholders' Equity for the
periods of December 31, 1997 to March 31, 2000. 6
Notes to Consolidated Financial Statements 7-8
Management's Discussion and Analysis of Financial
Condition and Results of Operations:
Forward Looking Information 9
Overview 9
Material Changes in Financial Condition 9-10
Material Changes in Results of Operations 10
Loan Loss Provision 10
Liquidity and Capital Resources 11
Quantitative and Qualitative Disclosures about Market Risk 11
PART II - OTHER INFORMATION
Item 5 - Other Information 12
Item 6 - Exhibits and Reports on Form 8-K 12
Signatures 12
</TABLE>
<PAGE> 3
COLUMBIA BANCORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
2000 1999
------------ ------------
ASSETS (Unaudited) (Audited)
<S> <C> <C>
Cash and due from banks $ 27,087,527 $ 23,796,174
Interest-bearing deposits with other banks 264,505 912,838
Federal funds sold 3,304,015 680,024
------------ ------------
Total cash and cash equivalents 30,656,047 25,389,036
Investment securities available-for-sale 40,853,947 41,111,041
Investment securities held-to-maturity 19,490,430 20,125,225
Restricted equity securities 1,307,500 1,096,800
------------ ------------
Total investment securities 61,651,877 62,333,066
Loans held-for-sale 3,783,873 3,282,849
Loans, net of allowance for loan losses and
unearned loan fees 262,722,781 243,692,191
Property and equipment, net of depreciation 13,143,868 12,008,224
Goodwill 8,489,185 8,646,341
Accrued interest receivable 3,602,678 2,902,601
Other assets 3,246,234 2,986,359
------------ ------------
Total assets $387,296,543 $361,240,667
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest bearing demand deposits $ 79,842,050 $ 74,889,247
Interest bearing demand accounts 125,022,417 130,148,498
Savings accounts 26,451,022 27,326,830
Time certificates 94,361,576 78,545,214
------------ ------------
Total deposits 325,677,065 310,909,789
Notes payable 21,196,539 10,870,318
Accrued interest payable and other liabilities 2,534,159 2,138,998
------------ ------------
Total liabilities 349,407,763 323,919,105
------------ ------------
Shareholders' equity:
Common stock, no par value;
20,000,000 shares authorized,
8,012,822 issued and outstanding
(8,010,522 at December 31, 1999) 14,406,885 14,392,229
Additional paid-in capital 6,371,490 6,371,490
Retained earnings 17,986,986 17,272,137
Accumulated other comprehensive income,
net of tax (876,581) (714,294)
------------ ------------
Total shareholders' equity 37,888,780 37,321,562
------------ ------------
$387,296,543 $361,240,667
============ ============
</TABLE>
See accompanying notes.
<PAGE> 4
COLUMBIA BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
Three months ended
March 31,
----------------------------
2000 1999
---------- ----------
<S> <C> <C>
INTEREST INCOME
Interest and fees on loans $6,516,064 $5,068,903
Interest on investments
Taxable investment securities 607,429 426,140
Nontaxable investment securities 232,614 230,010
Other interest income 168,901 444,318
---------- ----------
Total interest income 7,525,008 6,199,371
INTEREST EXPENSE
Interest bearing demand and savings 1,222,555 984,778
Interest on time deposit accounts 1,165,842 938,374
Other borrowed funds 242,610 116,420
---------- ----------
Total interest expense 2,631,007 2,039,572
---------- ----------
NET INTEREST INCOME 4,894,001 4,129,799
PROVISION FOR LOAN LOSSES 399,000 350,000
---------- ----------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 4,495,001 3,779,799
NONINTEREST INCOME
Service charges and fees 565,230 499,713
Credit card discounts and fees 134,188 99,381
Financial services department income 115,034 85,289
Mortgage servicing revenue 297,644 246,421
Gain on sale of loans, net of discount 14,236 64,890
Mortgage loan origination income 87,895 204,486
Other noninterest income 163,305 158,450
---------- ----------
Total noninterest income 1,377,532 1,358,630
NONINTEREST EXPENSE
Salaries and employee benefits 2,140,219 1,883,383
Occupancy expense 341,368 295,700
Credit card processing fees 102,037 69,571
Office supplies 49,361 61,062
Data processing expense 117,322 138,934
Other noninterest expenses 1,055,238 995,543
---------- ----------
Total noninterest expense 3,805,545 3,444,193
---------- ----------
INCOME BEFORE INCOME TAXES 2,066,988 1,694,236
PROVISION FOR INCOME TAXES 791,081 594,926
---------- ----------
NET INCOME $1,275,907 $1,099,310
========== ==========
OTHER COMPREHENSIVE INCOME, NET
Unrealized loss on APS securities, net (164,438) (127,273)
Reclassification for gain included in net income 2,151 (6,752)
---------- ----------
(162,287) (134,025)
---------- ----------
COMPREHENSIVE INCOME $1,113,620 $ 965,285
========== ==========
Earnings per share of common stock
Net Income Basic $ 0.16 $ 0.14
Net Income Diluted $ 0.16 $ 0.14
Weighted average common shares outstanding
Basic 8,012,662 7,959,859
Diluted 8,065,894 8,109,358
See accompanying notes.
</TABLE>
<PAGE> 5
COLUMBIA BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Three months ended
March 31,
----------------------------
2000 1999
------------ ------------
<S> <C> <C>
CASH FLOWS RELATED TO OPERATING ACTIVITIES
Net income $ 1,275,907 $ 1,099,310
Adjustments to reconcile net income to net cash from operating activities:
Loss (gain) on sale or call of investments 2,151 (6,610)
Depreciation and amortization 353,033 322,064
Federal Home Loan Bank stock dividend (18,800) (22,600)
Provision for loan losses 399,000 350,000
Increase (decrease) in cash due to changes in assets/liabilities
Accrued interest receivable (700,077) (201.059)
Other assets (259,876) (1,911,411)
Accrued interest payable and other liabilities 395,161 206,666
------------ ------------
NET CASH FROM OPERATING ACTIVITIES 1,446,499 (163,640)
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from the sale of available-for-sale securities 506,188 --
Proceeds from maturity of available-for-sale securities -- 5,840,157
Proceeds from the maturity of held-to-maturity securities 631,581 420,000
Purchases of held-to-maturity securities -- (3,685,880)
Purchases of available-for-sale securities (507,245) (11,457,783)
Purchase of restricted equity securities (191,900) (26,650)
Net change in loans made to customers (19,930,614) 4,496,067
Payments made for purchase of property and equipment (1,234,753) (868,243)
------------ ------------
NET CASH FROM INVESTING ACTIVITIES (20,726,743) (5,282,332)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in demand and savings accounts (1,049,085) (13,426,475)
Net proceeds from time deposits 15,816,362 5,732,043
Net borrowings of debt 10,326,221 (941,403)
Dividends paid (560,899) (477,951)
Proceeds from stock options exercised and sales of common stock 14,656 83,376
------------ ------------
NET CASH FROM FINANCINGS ACTIVITIES 24,547,255 (9,030,410)
------------ ------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 5,267,011 (14,476,382)
CASH AND CASH EQUIVALENTS, beginning of period 25,389,036 65,773,682
------------ ------------
CASH AND CASH EQUIVALENTS, end of period $ 30,656,047 $ 51,297,300
============ ============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid in cash $ 2,605,321 $ 2,024,679
Taxes paid in cash $ -- $ 200,000
SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Change in unrealized loss on available-for-sale securities, net of tax $ (162,287) $ (134,025)
Cash dividend declared and payable after quarter-end $ 560,898 $ 477,896
</TABLE>
See accompanying notes.
<PAGE> 6
COLUMBIA BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHODLERS' EQUITY
<TABLE>
<CAPTION>
Accumulated
Additional Other Total
Common Paid-in Retained Comprehensive Shareholders'
Shares Stock Capital Earnings Income Equity
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BALANCE, December 31, 1998 7,949,032 14,125,315 6,317,732 14,257,975 55,198 34,756,220
(Audited)
Stock options exercised 61,490 266,914 -- -- -- 266,914
Income tax benefit from
stock options exercised -- -- 53,758 -- -- 53,758
Cash dividend paid or declared -- -- -- (1,999,061) -- (1,999,061)
Net income and comprehensive
income -- -- -- 5,013,223 (769,492) 4,243,731
----------------------------------------------------------------------------------------
BALANCE, December 31, 1999 8,010,522 $14,392,229 $6,371,490 $17,272,137 $(714,294) $37,321,562
(Audited)
Stock options exercised 2,300 14,656 -- -- -- 14,656
Cash dividend paid or declared -- -- -- (561,059) -- (561,059)
Net income and comprehensive
income -- -- -- 1,275,907 (162,287) $ 1,113,620
----------------------------------------------------------------------------------------
BALANCE, March 31, 2000 (Unaudited) 8,012,822 $14,406,885 $6,371,490 $17,986,986 $(876,581) $37,888,780
========================================================================================
</TABLE>
<PAGE> 7
COLUMBIA BANCORP AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. Principles of Consolidation
The interim consolidated financial statements include the
accounts of Columbia Bancorp, a bank holding company ("Columbia"), and
its wholly-owned subsidiaries, Columbia River Bank ("CRB"), and Valley
Community Mortgage Services, Inc., after elimination of intercompany
transactions and balances. CRB is an Oregon state-chartered bank,
headquartered in The Dalles, Oregon. Substantially all activity of
Columbia is conducted through its subsidiary bank, CRB.
The interim financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements. The financial information
included in this interim report has been prepared by management and
reviewed by independent public accountants. Columbia's annual report
contains audited financial statements. All adjustments including normal
recurring accruals necessary for fair presentation of results of
operations for the interim periods included herein have been made. The
results of operations for the quarter ended March 31, 2000 are not
necessarily indicative of results to be anticipated for the year ending
December 31, 2000.
Certain reclassifications have been made to prior period
financial statements to conform with current period presentation.
2. Recent Corporate Activity
On November 30, 1999 Columbia merged its two subsidiary banks,
CRB and Valley Community Bank into a single operating entity. The
combination was designed to improve operating efficiency, strengthen the
company's commitment to community banking by more effectively sharing
the resources of the existing subsidiaries and develop a broader
regional brand identity. CRB is the remaining entity and remains a
wholly owned subsidiary of Columbia. The merger was accounted for as a
pooling of interests transaction.
3. Loans and Reserve for Loan Losses
The composition of the loan portfolio was as follows:
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
------------- -------------
(Unaudited) (Audited)
<S> <C> <C>
Commercial $ 68,204,338 $ 60,868,875
Agriculture 39,890,795 37,775,087
Real estate 140,834,005 130,313,434
Consumer 17,125,798 18,096,432
Other 1,448,856 827,362
------------- -------------
267,503,792 247,881,190
Allowance for loan losses (3,689,037) (3,298,460)
Deferred loan fees (1,091,974) (890,539)
------------- -------------
$ 262,722,781 $ 243,692,191
============= =============
</TABLE>
Transactions in the reserve for loan losses were as follows for
the quarter ended March 31:
<TABLE>
<CAPTION>
2000 1999
----------- -----------
(Unaudited) (Audited)
<S> <C> <C>
Balance at beginning of period $ 3,298,460 $ 2,380,220
Provision charged to operations 399,000 350,000
Recoveries 3,003 36,248
Loans charged off (11,426) (72,462)
----------- -----------
Balance at end of period $ 3,689,037 $ 2,694,006
=========== ===========
</TABLE>
<PAGE> 8
Columbia has adopted a policy for placement of loans on
nonaccrual status after they become 90 days past due unless otherwise
formally waived. Further, Columbia may place loans that are not
contractually past due or that are deemed fully collateralized on
nonaccrual status to promote better oversight and review of loan
arrangements. Loans on nonaccrual status at March 31, 2000 and December
31, 1999 were approximately $843,000 and $394,000, respectively.
As of March 31, 2000, Columbia identified loans totaling
$194,000 on which the interest rate or payment schedule was modified
from original terms to accommodate a borrower's weakened financial
position. There were $202,000 of loans in this category at December 31,
1999.
At March 31, 2000, Columbia had no other real estate owned
("OREO"), which represents assets held through loan foreclosure or
recovery activities. There was no OREO at December 31, 1999.
4. Earnings Per Share
Basic earning per share excludes dilution and is computed by
dividing net income by the weighted average common shares outstanding
for the period. Diluted earnings per share reflect the potential
dilution that could occur if common shares were issued pursuant to the
exercise of options under stock option plans. Weighted average shares
outstanding consist of common shares outstanding and common stock
equivalents attributable to outstanding stock options.
The weighted average number of shares and common share
equivalents have been adjusted for all prior stock dividends or splits.
5. Recently Issued Accounting Standards
SFAS No. 137 "Accounting for Derivative Instruments and Hedging
Activities - Deferral of the Effective Date of FASB Statement No. 133"
is effective for all fiscal quarters of all fiscal years beginning after
June 15, 2000. Columbia does not expect SFAS 137, or other issued but
not yet required FASB Statements to materially impact the financial
condition or results of operations of Columbia.
<PAGE> 9
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FORWARD LOOKING INFORMATION
Forward-looking statements with respect to the financial condition,
results of operations and the business of Columbia are subject to certain risks
and uncertainties that could cause actual results to differ materially from
those set forth in such statements. These include, without limitation:
Columbia's dependence on the timely development, introduction and customer
acceptance of new products; the impact of competition on revenues and margins;
and other risks and uncertainties, as may be detailed from time to time in
Columbia's public announcements and filings with the SEC. Forward-looking
statements can be identified by the use of forward-looking terminology, such as
"may", "will", "should", "expect", "anticipate", "estimate", "continue",
"plans", "intends", or other similar terminology. Columbia does not intend to
publicly release any revisions to these forward-looking statements to reflect
events or circumstances after the date of the Report, other than in its periodic
filings with the SEC, or to reflect the occurrence of unanticipated events.
OVERVIEW
Highlights for the first quarter of the new millennium for Columbia
Bancorp ("Columbia"):
- Reported record growth in loans, deposits and earnings
- Appointed Richard E. Betz to both the Columbia Board of
Directors and CRB Board of Directors
- Moved branch offices in Pendleton and Hermiston, Oregon from
temporary to permanent bank-owned facilities
- Completed preparations to unveil BankNet, its internet banking
solution
Columbia reported net income of $1,275,907, or $.16 per diluted share
for the quarter ended March 31, 2000. This represented a 16% increase in net
income, as compared to $1,099,310, or $.14 per diluted share, for the quarter
ended March 31, 1999. Cash basis diluted earnings per share - earnings per share
before the amortization of goodwill - of $.18 for the quarter ended March 31,
2000 represented an increase of 20% as compared to $.15 per diluted share for
the quarter ended March 31, 1999.
The net income added to shareholders' equity during the first three
months of 2000 was offset, in part, by dividends declared and paid of $561,059.
A first quarter dividend of $.07 per share was paid May 1 to shareholders of
record April 15. This represents a 17% increase over the $.06 per share declared
in the first quarter of 1999. With the payment of the declared dividend,
approximately 44% of earnings will have been returned to shareholders, the
remainder being retained to fund the continued growth of Columbia.
MATERIAL CHANGES IN FINANCIAL CONDITION
Changes in the balance sheet for the quarter ended March 31, 2000
include an increase in total assets, primarily in loans and federal funds sold,
and an increase in total liabilities, primarily in total deposits and notes
payable.
At March 31, 2000, total assets increased 7.2%, or approximately $26.1
million, over total assets at December 31, 1999. Major components of the change
in total assets were:
- $19.5 million increase in loans
- $5.3 million increase in cash and cash equivalents
The increase in loans is reflected in increases in all major loan
categories. Management attributes the change to a seasonal increase in real
estate construction and agricultural operating loans as well as continued
penetration within Columbia's market areas. The market areas Columbia serve
continue to experience robust local economies.
Columbia experienced an increase in deposits of approximately $14.8
million during the first three months of 2000, specifically as follows:
- Non-interest bearing deposits increased $5.0 million
- Interest bearing demand deposits decreased $5.1 million
- Savings deposits decreased $0.9 million
<PAGE> 10
- Time certificate deposits increased $15.8 million
The shift in balances between interest bearing demand deposits and
non-interest bearing deposits occurred primarily in business accounts and is
believed to be timing and customer cash management related. Time certificates
grew rapidly due to promotional rates in place in two out of the three months of
the quarter. Deposit growth and increased notes payable, were used to fund the
loan growth experienced in the quarter.
All other changes experienced in asset and liability categories during
the first three months of 2000 were comparatively modest.
MATERIAL CHANGES IN RESULTS OF OPERATIONS
Total interest income increased $1,355,637, or 22%, for quarter ended
March 31, 2000 as compared to the same period in 1999. This increase is due to
both the increase in loans and securities held in 2000 as compared to 1999, and
increased yields generated on earning assets in 2000 as compared to 1999.
Total interest expense also increased $591,435, or 29% for the quarter
ended March 31, 2000 as compared to the same period in 1999. This increase is
due in part to the increase in time deposits held during 2000 as compared to
1999, and also due to higher rates paid on all categories of interest bearing
deposits in 2000 as compared to 1999.
Columbia's net interest income increased by $764,202, or 19%, for the
quarter ended March 31, 2000 as compared to the quarter ended March 31, 1999.
Diluted net income per common share increased to $.16 for the first three months
of 2000 from $.14 for the first three months of 1999. Cash earnings in the first
half of 2000 were $.18 per diluted share compared to $.15 per diluted share in
the like period a year ago.
Noninterest income increased $18,902, or 1% for the quarter ended March
31, 2000 as compared to the same period in 1999. This increase is primarily
attributable to increases in service charges and fees on deposit accounts, and
growth revenue from the credit card and financial services departments. Due to
rising interest rates and the resultant slow down in new home loan originations
and refinance transactions, noninterest income related to CRB's mortgage group
activities decreased $116,022 or 22% as compared to the like period a year ago.
Noninterest expense increased $361,352, or 10% for the quarter ended
March 31, 2000 as compared to the comparable 1999 period. The increase for the
three-month period was primarily attributable to increases in salaries and
employee benefits and other expenses. The formation and staffing of the newly
opened Shevlin and Newberg branches and the normal expense increases associated
with maintaining an expanded employee base were the primary forces in the
increased expense in this categories.
To meet the challenges posed by our computer-reliant world, Columbia
made Y2K a top priority in 1999. Hardware, software and vendor issues were
assessed. Systems and services were tested and renovations were completed. Total
costs incurred by Columbia directly attributable to Y2K issues exceeded $500,000
and included costs for continuing technology upgrades, contingency planning,
system testing and personnel training. Preparations for Y2K accelerated some
planned technology upgrades and delayed others. This preparedness exercise,
coupled with a three-year technology plan implemented in 1999 provides clear
direction for Columbia's use of technology. Management feels that Columbia is
now better prepared than ever to meet the banking business needs of our
customers today and well into the future.
LOAN LOSS PROVISION
During the quarter ended March 31, 2000, Columbia charged a $399,000
loan loss provision to operations, as compared to $350,000 charged during the
same period in 1999. Loans charged off, net of loan recoveries, was $8,423
during the quarter ended March 31, 2000, as compared to net charged off loans of
$36,214 for the like period in 1999.
Management believes that the reserve for loan losses is adequate for
potential loan losses, based on management's assessment of various factors,
including present delinquent and nonperforming loans, past history of industry
loan loss experience, and anticipated economic trends impacting the areas and
customers served by Columbia.
<PAGE> 11
LIQUIDITY AND CAPITAL RESOURCES
Columbia has adopted policies to maintain a relatively liquid position
to enable it to respond to changes in the financial environment and ensure
sufficient funds are available to meet customers' needs for borrowing and
deposit withdrawals. Generally, Columbia's major sources of liquidity are
customer deposits, sales and maturities of investment securities, the use of
federal funds markets and net cash provided by operating activities. Scheduled
loan repayments are a relatively stable source of funds, while deposit inflows
and unscheduled loan prepayments, which are influenced by general interest rate
levels, interest rates available on other investments, competition, economic
conditions and other factors, are not.
An analysis of liquidity also includes a review of the changes that
appear in the consolidated statement of cash flows for the first three months of
2000. The statement of cash flows includes operating, investing and financing
categories. Operating activities include net income of $1,275,907, which is
adjusted for non-cash items and increases or decreases in cash due to changes in
certain assets and liabilities. Investing activities consist primarily of both
proceeds from and purchases of securities, and the impact of the net growth in
loans. Financing activities present the cash flows associated with deposit
accounts, and reflect the dividend paid to shareholders.
The Federal Reserve Board ("FRB") and Federal Deposit Insurance
Corporation ("FDIC") have established minimum requirements for capital adequacy
for bank holding companies and member banks. The requirements address both
risk-based capital and leveraged capital. The regulatory agencies may establish
higher minimum requirements if, for example, a corporation has previously
received special attention or has a high susceptibility to interest rate risk.
The following reflects Columbia's various capital ratios at March 31, 2000, as
compared to regulatory minimums.
<TABLE>
<CAPTION>
At March 31, 2000 Regulatory Minimum
----------------- ------------------
<S> <C> <C>
Tier-one capital 9.70% 4%
Total risk-based capital 10.89% 8%
Leverage ratio 8.27% 4%
</TABLE>
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There has not been a material change in the quantitative and qualitative
market risks faced by Columbia from the risk disclosures reported in Columbia's
form 10-K covering the fiscal year ended December 31, 1999.
<PAGE> 12
PART II - OTHER INFORMATION
ITEM 5. OTHER INFORMATION
Addition of Richard E. Betz to the Columbia Board of Directors
Richard E. Betz, age 57, was appointed to both the Columbia and CRB
Boards on January 25, 2000. Mr. Betz is Vice President of Royal Columbia, Inc.,
a potato farming operation in Hermiston, Oregon. He is also President of
Bud-Rich Potato, Inc., a potato packing operation and onion marketing company.
He has been involved in these operations, in various capacities, since 1969. Mr.
Betz is past chairperson of the Oregon Potato Commission and Past-President of
the Blue Mountain Potato Growers. He also sits on a number of community boards.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibit 27 - Article 9 Financial Data Schedule for Form 10-Q
(b) Exhibit 99 - Accountant's Review Report
(c) No current reports on Form 8-K were filed during the quarter ended March 31,
2000.
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 thereunto duly authorized.
COLUMBIA BANCORP
Dated: May 8, 2000 /s/ Terry L. Cochran
------------------------------------
Terry L. Cochran
President & Chief Executive Officer
Dated: May 8, 2000 /s/ Neal T. McLaughlin
------------------------------------
Neal T. McLaughlin, EVP, Chief
Financial Officer - Columbia River
Bank; and Chief Financial Officer -
Columbia Bancorp
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM COLUMBIA
BANCORP'S CONSOLIDATED FINANCIAL STATEMENTS CONTAINED IN ITS QUARTERLY REPORT ON
FORM 10-Q FOR THE PERIOD ENDED MARCH 31, 2000, AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<EXCHANGE-RATE> 1
<CASH> 27,087,527
<INT-BEARING-DEPOSITS> 264,505
<FED-FUNDS-SOLD> 3,304,015
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 42,161,447
<INVESTMENTS-CARRYING> 19,490,430
<INVESTMENTS-MARKET> 0
<LOANS> 266,411,818
<ALLOWANCE> 3,689,037
<TOTAL-ASSETS> 387,296,543
<DEPOSITS> 325,677,065
<SHORT-TERM> 19,617,521
<LIABILITIES-OTHER> 2,534,159
<LONG-TERM> 1,579,018
14,406,885
0
<COMMON> 0
<OTHER-SE> 23,481,895
<TOTAL-LIABILITIES-AND-EQUITY> 387,296,543
<INTEREST-LOAN> 6,516,064
<INTEREST-INVEST> 840,043
<INTEREST-OTHER> 168,901
<INTEREST-TOTAL> 7,525,008
<INTEREST-DEPOSIT> 2,388,397
<INTEREST-EXPENSE> 2,631,007
<INTEREST-INCOME-NET> 4,894,001
<LOAN-LOSSES> 399,000
<SECURITIES-GAINS> (2)
<EXPENSE-OTHER> 0
<INCOME-PRETAX> 2,066,988
<INCOME-PRE-EXTRAORDINARY> 1,275,907
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,275,907
<EPS-BASIC> $0.16
<EPS-DILUTED> $0.16
<YIELD-ACTUAL> 9.21
<LOANS-NON> 843,000
<LOANS-PAST> 0
<LOANS-TROUBLED> 194,000
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 3,298,460
<CHARGE-OFFS> 11,426
<RECOVERIES> 3,003
<ALLOWANCE-CLOSE> 3,689,037
<ALLOWANCE-DOMESTIC> 3,689,037
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
<PAGE> 1
[MOSS-ADAMS LLP Letterhead]
INDEPENDENT ACCOUNTANT'S REPORT
Board of Directors and Shareholders
Columbia Bancorp and Subsidiary
We have reviewed the accompanying condensed consolidated balance sheet of
Columbia Bancorp and Subsidiaries as of March 31, 2000, and the related
condensed consolidated statements of income and cash flows for the three months
ended March 31, 2000. These financial statements are the responsibility of
Columbia Bancorp's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted
in accordance with generally accepted auditing standards, the objective of
which is the expression of an opinion regarding the financial statements taken
as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the condensed consolidated financial statements referred to above
for them to be in conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet of Columbia Bancorp and Subsidiaries
as of December 31, 1999, and the related consolidated statements of income,
shareholders' equity, and cash flows for the year then ended not presented
herein; and in our report dated January 25, 2000, we expressed an unqualified
opinion on those consolidated financial statements. In our opinion, the
information set forth in the accompanying condensed consolidated balance sheet
as of December 31, 1999, is fairly presented in, all material respects, in
relation to the consolidated balance sheet from which it has been derived.
/s/ MOSS ADAMS LLP
Portland, Oregon
May 3, 2000
