Clatsop Community Bank Reports Q1 2016 Results

Seaside, OR – Clatsop Community Bank (OTC: CLAT), reported a net profit of $124,000 or $0.12 per diluted share, for the three months ended March 31, 2016, compared to net profit of $132,000, or $0.12 per diluted share, for the same period the year prior.

“We are pleased to report continued profitability despite strong competition and expenses relating to strategic initiatives for Q1 2016.  We look for these investments in staffing and SBA activity to provide a meaningful return in the coming quarters” Schulte said.

Year-to-Date 2016 Financial Highlights:

Return on Average Assets (ROAA): 0.63%
Net Interest Margin (TE)(NIM): 4.09%
Efficiency Ratio: 79.57%


Total assets of $81.9 million as of March 31, 2016 increased $9.8 million, or 13.59%, compared to $72.1 million in assets a year ago.

Loans, net of unearned income, increased $3.9 million to $52.2 million at March 31, 2016, or 8.07% compared to $48.3 million a year ago. The allowance for loan losses as of March 31, 2016 at $625,000, or 1.18% of gross loans, decreased $1,000 compared to the $626,000, or 1.28% of gross loans as of March 31, 2015. Year-to-date 2016, the Bank had no charge-offs and $1,000 in loan recoveries. For the same period the year prior, the Bank had no loan charge-offs and $23,000 in loan recoveries.

“The Bank achieved one of its 2016 strategic goals when it received SBA’s Preferred Lender Program (PLP) status in March.  PLP status allows the Bank to offer additional SBA loan programs and streamlined processing to assist small to medium size businesses with their financing needs.  Loan Portfolio performance remains strong again this quarter.  We were pleased to see growth specifically in the number of SBA loan originations,” Chief Credit Officer Cindy Trask stated.

The Bank had no other real estate owned (OREO) as of March 31, 2016 compared to $31,000 on March 31, 2015. The Bank had no loans on non-accrual as of March 31, 2016, compared to 0.26% of loans net of unearned income as of March 31, 2015.

Deposits and Other Liabilities

Total deposits were $71.8 million as of March 31, 2016, which is an increase of $9.3 million, or 14.88%, compared to $62.5 million in total deposits as of March 31, 2015. Non-interest-bearing deposits increased by $5.6 million or 29.47%, while interest-bearing deposits increased by $3.6 million, or 8.28%, compared to March 31, 2015.

There were no borrowings outstanding as of March 31, 2016 or March 31, 2015


Net-interest income continued to grow year-over-year. At $735,000 for the three months ended March 31, 2016, net-interest income increased $39,000, or 5.60% over the $696,000 in net-interest income for the same period in 2015. Net-interest margin (TE) at 4.09% for the three months ended March 31, 2016 was 0.28 percentage points lower than the 4.37% net-interest margin (TE) during the same period a year ago.

Non-interest income, for the three months ended March 31, 2016, at $53,000, decreased $11,000 or 17.19% compared to $64,000 during the same period in 2015.  Non-interest expense for the three months ended March 31, 2016, at $627,000, increased $44,000, or 7.55% over the $583,000 during the same period in 2015.

CFO Steve McCoy said, “Although the Federal Reserve began an interest rate tightening cycle at the end of 2015, long term rates have declined since that time.  This has pressured the Bank’s net interest margin.  However, our deposit balance growth – particularly in non-interest bearing deposits – has more than offset that pressure.”

Equity and Capital

Stockholders’ equity, at $9.9 million as of March 31, 2016, increased $500,000, or 5.32% compared to March 31, 2015. The Bank remains categorized as well-capitalized under the regulatory framework for prompt corrective action. The Bank’s tier-one leverage ratio was 11.85% as of March 31, 2016, compared to 11.56% as of March 31, 2015, while its total risk-based capital ratio was 15.87% as of March 31, 2016, compared to 14.27% as of March 31, 2015. 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, 2016 was 14.87%.

“The Bank continues its favorable trends relating to deposit growth, strong loan portfolio quality, and profitability.  These factors, combined with a dedicated, professional, core staff, consistent community presence and strong capital base set up the company for a positive 2016 and beyond.” Schulte stated.


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.