Clatsop Community Bank Posts Fourth Quarter and 2013 Results

FOR IMMEDIATE RELEASE: February 10, 2014

Joe Schulte, President and Chief Executive Officer, 503.738.8000 or
Joyce Allison, Corporate Secretary, 503.298.2305 or

Seaside, OR – Clatsop Community Bank (OTC: CLAT) reports a net profit of $364,000, or $0.34 per diluted share, for the twelve months ended December 31, 2013, compared to net income of $140,000, or $0.13 per diluted share, for the same twelve-month period in 2012. Net income for fourth quarter 2013 of $91,000, or $0.08 per diluted share, was up from the ($132,000) net loss, or ($0.12) net loss per diluted share, in the fourth quarter of 2012.

“We’re happy to see the positive trend in year-over-year profits continue in 2013,” said Joe Schulte, president and CEO. “The bank is well-positioned to take advantage of improving economic conditions in 2014 and beyond.”

Fiscal Year-End 2013 Financial Highlights:

Return on Average Assets (ROAA): 0.56%
Net Interest Margin (TE)(NIM): 4.04%
Efficiency Ratio: 86.98%


Total assets at $68.6 million as of December 31, 2013, increased $6.7 million, or 10.8%, from the $61.9 million as of December 31, 2012.

Loans net of unearned income at $40.9 million at December 31, 2013, increased $3.7 million, or 9.9%, from the $37.2 million at December 31, 2012. The allowance for loan losses as of December 31, 2013, at $540,000, or 1.32% of loans, was slightly less than the $511,000, or 1.57% of loans, as of December 31, 2012. Year-to-date 2013, the Bank had $161,000 in loan charge-offs with no loan recoveries, compared to the same 12-month period in 2012 when loan charge-offs were $337,000 with no loan recoveries.

Other real estate owned (OREO) at $335,000 as of December 31, 2013, increased $162,000 over December 31, 2012 as the Bank finalized foreclosure on two problem loan relationships. Non-accrual loans represented 1.17% of loans net of unearned income as of December 31, 2013, as compared to 1.15% as of December 31, 2012.

As of December 31, 2013, the Bank has over $15.9 million of excess cash and unpledged securities. This provides ample opportunities for loan growth.

“The Bank’s loan portfolio continues to perform well, and associated performance ratios are favorable compared to those of our peers,” said Schulte. “Further, our staff has succeeded in identifying quality loan prospects, and we continue to focus on core loan growth as the area with greatest potential for increased profits.”

Deposits and Other Liabilities

“Our 2013 deposit growth rate again exceeded that of our competitors as we continue to gain market share in Clatsop County. Liquidity remains strong and we are well-positioned to fund future loan growth,” said Steve McCoy, CFO. Total deposits were $60.3 million as of December 31, 2013, which was an increase of $5.9 million, or 10.83%, compared to the $54.4 million in total deposits as of December 31, 2012. Non-interest-bearing deposits increased by $1.6 million, or 13.02%, while interest-bearing deposits increased by $4.3 million, or 10.11%.


Net interest income continues to grow year-over-year. At $2.4 million for the twelve months ended December 31, 2013, net interest income was $112,000, or 4.3% more than the $2.3 million in net interest income for the same period the year prior. Net interest margin (TE) at 4.04% for the twelve months ended 2013 was twelve basis points lower than the prior year. Earnings were enhanced by $148,000 in tax benefit caused by the partial reversal of our deferred tax asset valuation allowance. At this time, we will continue to maintain a valuation allowance on the majority of our deferred tax assets. With continued improvement in core profitability, the entire valuation allowance may cease to be necessary.

“The reversal of a portion of our valuation allowance is a direct result of the improvement in core profitability over the last 12 quarters,” Schulte explained. “Expenses continue to be well-controlled, and with further growth, associated key ratios should continue to improve.”

Non-interest income for the twelve months ended December 31, 2013, at $169,000, was up from $130,000 for the same period in 2012. Net gains on sales of available-for-sale securities totaled $116,000 for the 12 months ended December 31, 2013. Noninterest expense for the twelve months ended December 31, 2013, at $2.3 million, was $13,000, or 0.6% lower than for the same period in 2012. Problem loan and OREO expenses were $58,000 for the twelve months ended 2013.

“We’re pleased to see modest improvements in the economy, which should positively impact OREO, our limited non-performing assets, and associated expenses going forward,” Schulte added.

Equity and Capital

Stockholders’ equity, at $7.2 million as of December 31, 2013, is essentially unchanged from December 31, 2012. This is due to the drop in accumulated other comprehensive income offsetting the decrease in accumulated loss due to 2013 earnings. The Bank’s leverage ratio was 10.79% as of December 31, 2013, compared to 11.23% as of December 31, 2012, while its total risk-based capital was 16.97% as of December 31, 2013, compared to 17.35% as of December 31, 2012.


About Clatsop Community Bank:

Information about the Company’s stock may be obtained through the OTCQB marketplace at Clatsop Community Bank’s stock symbol is CLAT.

Clatsop Community Bank was formed in 2008 to serve Clatsop County and neighboring counties as the only locally-owned and operated bank in the local market. The Bank has been named among the “100 Best Companies to Work for in Oregon” by Oregon Business Magazine for five consecutive years. For more information about Clatsop Community Bank, visit our website at Information contained in or linked to our website is not incorporated as a part of this release.

Certain statements in this release may constitute forward-looking statements within the definition of the “safe-harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to significant uncertainties, which could cause actual results to differ materially from those set forth in such statements. Forward-looking statements are those that incorporate management’s current expectations and plans based on information currently known to them. These statements can sometimes be identified by words such as “believe,” “estimate,” “anticipate,” “expect,” “intend,” “will,” “may,” “should,” or other similar phrases or words. Readers are cautioned not to place undue reliance on forward-looking statements. In particular, they should not be construed as assurances of a given level of performance or as promises of a given set of management’s actions. Some of the factors that could cause management to deviate from its current plans, or could cause the Company’s results to differ from current expectations, include the effect of localized or regional economic shifts that may affect the collectability of loans or the value of the collateral underlying those loans; the effects of laws, regulations, policies and government actions upon the Company’s assets and operations; sensitivity to the Northwestern Oregon geographic markets and events affecting those markets; and the impacts of new government initiatives upon us and our borrowers. The Company does not intend to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.

Clatsop Community Bank’s stock ticker symbol is CLAT and is traded OTC.  For more information regarding stock transactions, please contact your broker or Joey Warmenhoven at McAdams/Wright/Ragen, 800-754-2841.