Chapter 12 Solutions

Chapter 12 Solutions - Chapter 12 Special Industries:...

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Unformatted text preview: Chapter 12 Special Industries: Banks, Utilities, Oil and Gas, Transportation, Insurance, Real Estate Companies TO THE NET 1. a. Item 1 Business Market Area Competition The bank contends with considerable competition both in generating loans and attracting deposits. b. Table 5 Summary of Delinquency Information Delinquencies have increased in the 90 day category year over year mainly due to residential real estate and consumer home equity loans all of which the company believes to be well collateralized. Table 6 Nonperforming Assets Material increase in loans past due 90 days or more but still accruing Material increase in loans accounted for on a nonaccrual basis Material increase in nonperforming loans as a percent of gross loans Material increase in nonperforming assets as a percent of total assets 2. a. Item 1 Business Columbia Bancorp (Columbia) is a financial holding company organized in 1996 under Oregon Law. Columbias common stock is traded on the NASDAQ Global Select Market under the symbol CBBO. b. Item 8 Note 4 Loans and Allowances for Loan Losses 1. There was a material increase in the total loan portfolio 2. A substantial increase in allowance for loan losses 3. As of December 31, 2006 and 2005, impaired loans totaled $4.99 million and $5.73 million, respectively. The trend is positive. 135 3. a. SIC 4911 Electric Services b. Construction Work in Progress December 31, 2006 December 31, 2005 $499,000 $1,588,000 c. Allowance for Equity Funds Used During Construction 2006 2005 2004----- $23,0 00 $42,0 00 d. Allowance for Borrowed Funds Used During Construction 2006 2005 2004----- $8,00 $15,0 00 e. Net income from continuing operations 2006 2005 2004 $804,000 $848,0 00 $2,279,0 00 f. No. There were none in 2006; immaterial in 2005 and 2004. 4. a. SIC 1311 Crude Petroleum and Natural Gas b. Item 1 Business Reserves 136 Historical Reserves Table Natural Gas Oil and Liquids Total (1) December 31, 2005 1,262,096 11,463 1,330,874 Revision of price estimates (2) (17,675) 673 (13,640) Extension, discoveries and other additions 246,197 1,066 252,594 Production (79,722) (1,415 ) (88,212) Purchase of reserves in place 1,946 38 2,176 Sales of reserves in place (44,549) (3,852 ) (67,663) December 31, 2006 1,368,293 7,973 1,416,129 Proved developed reserves December 31, 2003 812,280 9,405 868,712 December 31, 2004 857,834 8,652 909,747 December 31, 2005 944,897 9,127 999,661 December 31, 2006 996,850 5,895 1,032,22 2 (1) Includes natural gas and natural gas equivalents determined by using the ratio of mcf of natural gas to 1 bbl of crude oil, condensate or natural gas liquids. (2) The majority of the revisions were the result of the decrease in the natural gas price on December 31, 2006 from the price on December 31, 2005....
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Chapter 12 Solutions - Chapter 12 Special Industries:...

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