Clatsop Community Bank reports first quarter 2018 results

Seaside, OR – Clatsop Community Bank (OTC: CLAT), reported a net profit of $195,000 or $0.18 per diluted share, for the three months ended March 31, 2018, compared to net profit of $125,000 or $0.12 per diluted share, for the same period the year prior.

“We are pleased to report continued strong financial performance as we celebrate our tenth anniversary in April,” said President and CEO Joe Schulte. “Through the strong efforts of our talented and dedicated staff we continue to see steady financial progress and growth.”

Year-to-Date 2018 Financial Highlights:

Return on Average Assets (ROAA): 0.87%
Net Interest Margin (TE)(NIM): 4.09%
Efficiency Ratio: 73.30%


Total assets of $90.2 million as of March 31, 2018 increased $2.8 million, or 3.20%, compared to $87.4 million in assets a year ago.

Loans, net of unearned income, increased $3.8 million to $59.8 million at March 31, 2018, or 6.79% compared to $56.0 million a year ago. The allowance for loan losses as of March 31, 2018 at $640,000, or 1.06% of gross loans, increased $23,000 compared to the $617,000, or 1.09% of gross loans as of March 31, 2017. Year-to-date 2018, the Bank had no charge-offs or recoveries. For the same period the year prior, the Bank had no charge-offs and $2,000 in loan recoveries.

“Business loan demand remained strong in the first quarter,” said Chief Credit Officer Cindy Trask, “however, loan portfolio pay-offs outpaced new production. We are continuing our disciplined approach with loan pricing and credit quality, while ensuring we are meeting the financing needs of our business community,” she added. “Our loan portfolio continues to perform very well.”

The Bank had no other real estate owned (OREO) as of March 31, 2018 or March 31, 2017. The Bank also had no loans on non-accrual as of March 31, 2018 or March 31, 2017.

Deposits and Other Liabilities

Total deposits were $79.7 million as of March 31, 2018, which is an increase of $6.9 million, or 9.48%, compared to $72.8 million in total deposits as of March 31, 2017. Non-interest-bearing deposits increased by $5.0 million or 20.58%, while interest-bearing deposits increased by $1.7 million, or 3.50%, compared to March 31, 2017.

Chief Financial Officer Steve McCoy said, “Management is pleased with the strong deposit growth year-over-year. The fact that the growth is centered on non-interesting-bearing deposits contributes greatly to profitability of the bank. As rates continue to climb, we are able to invest at higher rates leading to expanding net interest margin.”

There were no borrowings outstanding as of March 31, 2018, a decrease of $4.0 million, or 100.0%, as compared to $4.0 million as of March 31, 2017.


Net-interest income continued to grow year-over-year. At $854,000 for the three months ended March 31, 2018, net-interest income increased $52,000, or 6.48% over the $802,000 in net-interest income for the same period in 2017. Net-interest margin (TE) at 4.10% for the three months ended March 31, 2018 was 0.04% percentage points higher than the 4.06% net-interest margin (TE) during the same period a year ago.

Non-interest income, for the three months ended March 31, 2018, at $75,000, decreased $8,000 or 9.64% compared to $83,000 during the same period in 2017. Non-interest expense for the three months ended March 31, 2018, at $681,000, decreased $14,000, or 2.01% from the $695,000 during the same period in 2017.

Equity and Capital

Stockholders’ equity, at $10.4 million as of March 31, 2018, increased $100,000, or 0.97% compared to March 31, 2017. The Bank remains categorized as well-capitalized under the regulatory framework for prompt corrective action. The Bank’s tier-one leverage ratio was 11.73% as of March 31, 2018, compared to 11.52% as of March 31, 2017, while its total risk-based capital ratio was 16.08% as of March 31, 2018, compared to 15.27% as of March 31, 2017. To be well-capitalized under prompt corrective action provisions, the Bank must maintain a tier-one leverage ratio of greater than 5.0%, and a total risk-based capital ratio of greater than 10.0%. The Common Equity Tier One ratio under Basel III (Standard Approach) as of March 31, 2018 was 15.16% compared to 14.36% as of March 31, 2017.

“2018 is potentially shaping up to be as a year of milestones,” Schulte said. “we are steadily approaching $100 million in assets, are at the precipice of positive retained earnings for the first time, and have largely exhausted our deferred tax asset/NOL. We continue to be very well capitalized and have 6-plus years of consistently increasing profitability. We continue to find a warm welcome from the marketplace, which values superior customer service from the only locally owned and operated bank in Clatsop County.”

Financial Highlights


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 area. The Bank has been named among the “100 Best Companies to Work for in Oregon” by Oregon Business Magazine for 2009, 2010, 2011, 2012, 2013, 2014 and 2015. 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.