Despite higher expenses related to a recent acquisition, Columbia Bancorp's profit rose 23.8 percent in the second quarter, spurred by strong gains in lending, the company said yesterday.
Columbia made $1.77 million in the quarter that ended June 30, or 25 cents per diluted share, after merger-related expenses, compared with $1.43 million, or 20 cents per diluted share, in the corresponding period a year earlier.
Net income before merger-related fees was $1.81 million, or 25 cents per diluted share, 26.6 percent higher than the corresponding quarter last year.
Columbia acquired Suburban Bancshares Inc. of Greenbelt on March 8 in a deal that added $220 million in assets and increased its branch network from 15 to 23 branches.
"We have been very busy around here with the consolidation of Suburban. To be able to achieve these kinds of results ... I think it is very, very good," said John M. Bond Jr., president and chief executive of Columbia Bancorp, which is based in Columbia.
In the first six months of the year, Columbia made $1.82 million, or 25 cents per diluted share, after merger-related expenses, compared with $2.98 million, or 41 cents per diluted share, in the corresponding period last year.
The company made $3.44 million, or 48 cents per diluted share, before merger-related expenses in the first half of the year.
Columbia's net interest income, or money made from interest charged on its loans and investment portfolio, rose 20.5 percent in the second quarter to $8.60 million. In the first half of the year, it was up 18.6 percent to $16.58 million.
Assets rose to a record $740.76 million at the end of June, up 8.9 percent; loans shot up 16.1 percent to $498.08 million; and deposits were up 10.7 percent to $601.24 million.
Bond said he is optimistic that the bank will continue to perform well throughout the year.
"I guess there are some things to worry about with regard to the economy," he said. "If the economy remains at least as strong as it is now, we should have a very strong finish."
Columbia's shares closed up 25 cents yesterday at $8.625.