TACOMA, Wash., July 28,
2016 /PRNewswire/ -- Melanie
Dressel, President and Chief Executive Officer of Columbia
Banking System and Columbia Bank (NASDAQ: COLB) ("Columbia"), said today upon the release of
Columbia's second quarter 2016
earnings, "The second quarter of the year has traditionally been a
strong quarter for us and it was again this year. Our bankers
continue their impressive level of loan production, our
nonperforming assets to total assets remains well below our peers,
and the results of our expense initiatives are reflected in the
continued improvement in our efficiency ratio." Ms. Dressel
continued, "Our net interest margin has held up remarkably well
over the past several years, but the prolonged low interest rate
environment and flattening of the yield curve continue to apply
downward pressure on the margin."
Balance Sheet
Total assets at June 30, 2016 were $9.35 billion, an increase of $317.7 million from March 31, 2016. Loan
growth of $229.9 million during the
quarter was driven by strong loan originations of $337.8 million and seasonal increases in line
utilization. Loan production was diversified across the portfolio,
but was centered in our commercial business and commercial and
multifamily residential real estate sectors. Securities available
for sale were $2.28 billion at
June 30, 2016, an increase of $93.4
million, or 4% from $2.19
billion at March 31, 2016. Total deposits at
June 30, 2016 were $7.67
billion, an increase of $76.3
million from $7.60 billion at
March 31, 2016. Core deposits comprised 97% of total deposits
and were $7.45 billion at
June 30, 2016, an increase of $63.3
million from March 31, 2016. The average cost of total
deposits for the quarter was 0.04%, unchanged from the first
quarter of 2016.
Income Statement
Net Interest Income
Net interest income for the second quarter of 2016 was
$82.1 million, an increase of
$2.0 million and $1.1 million from the linked and prior year
periods, respectively. The linked quarter increase was driven
principally by higher loan and securities volumes. The increase
from the prior year period was also due to higher loan and
securities volumes, partially offset by lower incremental accretion
income on loans. Such accretion income was $2.9 million lower in the current quarter as
compared to the second quarter of 2015. For additional information
regarding net interest income, see the "Average Balances and Rates"
table.
Noninterest Income
Noninterest income was $21.9
million for the second quarter of 2016, an increase of
$1.3 million compared to $20.6 million for the first quarter of 2016. The
linked quarter increase was primarily driven by higher loan and
card revenue during the current quarter. The loan revenue increase
was a result of loan fees as well as revenue from interest rate
contracts associated with certain commercial loan production.
Revenue from such contracts was $190
thousand higher than the linked quarter. Additionally, card
revenue increased $399 thousand due
primarily to increased interchange fees associated with higher
debit card transaction volumes.
Compared to the second quarter of 2015, noninterest income
increased by $478 thousand due to
loan and card revenue as well as lower expenses from the FDIC
loss-sharing asset. Card revenue was up $349
thousand principally from interchange fees as noted above.
The increased loan revenue was driven by sales of Small Business
Administration-guaranteed loans and, to a lesser extent, mortgage
banking activity. These increases were partially offset by lower
financial services revenue which is sensitive to volatility in the
stock market.
The change in the FDIC loss-sharing asset has been a significant
component of noninterest income but, over time, the significance
has diminished. The following table reflects the income statement
components of the change in the FDIC loss-sharing asset:
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(in
thousands)
|
Adjustments reflected
in income
|
|
|
|
|
|
|
|
|
|
|
Amortization,
net
|
|
$
|
(883)
|
|
|
$
|
(1,332)
|
|
|
$
|
(1,376)
|
|
|
(2,215)
|
|
|
(3,670)
|
|
Loan
impairment
|
|
(20)
|
|
|
147
|
|
|
1
|
|
|
127
|
|
|
1,532
|
|
Sale of other real
estate
|
|
(24)
|
|
|
144
|
|
|
(208)
|
|
|
120
|
|
|
(627)
|
|
Write-downs of other
real estate
|
|
(40)
|
|
|
18
|
|
|
52
|
|
|
(22)
|
|
|
1,124
|
|
Other
|
|
(23)
|
|
|
(80)
|
|
|
37
|
|
|
(103)
|
|
|
297
|
|
Change in FDIC
loss-sharing asset
|
|
$
|
(990)
|
|
|
$
|
(1,103)
|
|
|
$
|
(1,494)
|
|
|
$
|
(2,093)
|
|
|
$
|
(1,344)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expense
Total noninterest expense for the second quarter of 2016 was
$63.8 million, a decrease of
$1.3 million compared to $65.1 million for the first quarter of 2016,
which included $2.4 million of
acquisition-related expenses. Removing those acquisition-related
expenses from the prior quarter results in an increase in
noninterest expense of $1.2 million.
The increase was due to higher compensation costs in the current
quarter.
Compared to the second quarter of 2015, noninterest expense
decreased $4.7 million, or 7%, from
$68.5 million. After removing the
effect of the acquisition-related expenses, noninterest expense for
the current quarter was $962 thousand
higher than the second quarter of 2015 on the same basis. This
increase was due to higher compensation and benefits, driven by
higher insurance expense as well as higher OREO expenses. OREO
expenses were a net cost of $84
thousand in the current quarter but were a net benefit of
$563 thousand in the second quarter
of 2015. These increases were partially offset by decreased legal
and professional fees as well as decreased occupancy expense in the
current quarter.
Net Interest Margin ("NIM")
Columbia's net interest margin
(tax equivalent) for the second quarter of 2016 was 4.10%, a
decline of 3 and 31 basis points from the linked and prior year
periods, respectively. The declines were due to both lower
incremental accretion income on acquired loans and lower yielding
originated loans. Incremental accretion income was $4.4 million in the current period compared to
$7.3 million in the prior year
quarter. Columbia's operating net
interest margin (tax equivalent)(1) was 4.00% for the
second quarter of 2016, a decrease of 3 basis points from 4.03% for
the first quarter of 2016 and down 17 basis points compared to
4.17% for the second quarter of 2015 as a result of lower yielding
originated loans.
The following table shows the impact to interest income
resulting from income accretion on acquired loan portfolios as well
as the net interest margin and operating net interest margin:
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2016
|
|
2015
|
|
|
(dollars in
thousands)
|
Incremental accretion
income due to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FDIC purchased credit
impaired loans
|
|
$
|
1,300
|
|
|
$
|
1,657
|
|
|
$
|
2,200
|
|
|
$
|
2,082
|
|
|
$
|
2,367
|
|
|
$
|
2,957
|
|
|
$
|
4,814
|
|
Other FDIC acquired
loans (2)
|
|
—
|
|
|
—
|
|
|
68
|
|
|
34
|
|
|
15
|
|
|
—
|
|
|
132
|
|
Other acquired
loans
|
|
3,074
|
|
|
3,073
|
|
|
3,746
|
|
|
4,293
|
|
|
4,889
|
|
|
6,147
|
|
|
9,823
|
|
Incremental accretion
income
|
|
$
|
4,374
|
|
|
$
|
4,730
|
|
|
$
|
6,014
|
|
|
$
|
6,409
|
|
|
$
|
7,271
|
|
|
$
|
9,104
|
|
|
$
|
14,769
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(tax equivalent)
|
|
4.10
|
%
|
|
4.13
|
%
|
|
4.25
|
%
|
|
4.37
|
%
|
|
4.41
|
%
|
|
4.12
|
%
|
|
4.40
|
%
|
Operating net
interest margin (tax equivalent) (1)
|
|
4.00
|
%
|
|
4.03
|
%
|
|
4.09
|
%
|
|
4.18
|
%
|
|
4.17
|
%
|
|
4.01
|
%
|
|
4.18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Operating net
interest margin (tax equivalent) is a non-GAAP financial measure.
See the section titled "Non-GAAP Financial Measures" on the last
pages of this earnings release for the reconciliation of operating
net interest margin (tax equivalent) to net interest
margin.
|
(2) For 2016,
incremental accretion income on other FDIC acquired loans is no
longer considered significant.
|
Asset Quality
At June 30, 2016, nonperforming assets to total assets were
0.36% compared to 0.55% at March 31, 2016 and 0.39% at
December 31, 2015. Total nonperforming assets decreased
$15.8 million due to a $14.0 million decrease in nonaccrual loans as
well as a decrease in other real estate owned.
The following table sets forth information regarding nonaccrual
loans and total nonperforming assets:
|
|
June 30,
2016
|
|
March 31,
2016
|
|
December 31,
2015
|
|
|
(in
thousands)
|
Nonaccrual
loans:
|
|
|
|
|
|
|
Commercial
business
|
|
$
|
9,548
|
|
|
$
|
22,559
|
|
|
$
|
9,437
|
|
Real
estate:
|
|
|
|
|
|
|
One-to-four family
residential
|
|
957
|
|
|
730
|
|
|
820
|
|
Commercial and
multifamily residential
|
|
7,834
|
|
|
8,117
|
|
|
9,513
|
|
Total real
estate
|
|
8,791
|
|
|
8,847
|
|
|
10,333
|
|
Real estate
construction:
|
|
|
|
|
|
|
One-to-four family
residential
|
|
562
|
|
|
768
|
|
|
928
|
|
Total real estate
construction
|
|
562
|
|
|
768
|
|
|
928
|
|
Consumer
|
|
4,014
|
|
|
4,717
|
|
|
766
|
|
Total nonaccrual
loans
|
|
22,915
|
|
|
36,891
|
|
|
21,464
|
|
Other real estate
owned and other personal property owned
|
|
10,613
|
|
|
12,427
|
|
|
13,738
|
|
Total nonperforming
assets
|
|
$
|
33,528
|
|
|
$
|
49,318
|
|
|
$
|
35,202
|
|
The following table provides an analysis of the Company's
allowance for loan and lease losses:
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
2016
|
|
March 31,
2016
|
|
June 30,
2015
|
|
June 30,
2016
|
|
June 30,
2015
|
|
|
(in
thousands)
|
Beginning
balance
|
|
$
|
69,264
|
|
|
$
|
68,172
|
|
|
$
|
70,234
|
|
|
$
|
68,172
|
|
|
$
|
69,569
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
Commercial
business
|
|
(2,941)
|
|
|
(3,773)
|
|
|
(2,086)
|
|
|
(6,714)
|
|
|
(3,512)
|
|
One-to-four family
residential real estate
|
|
(35)
|
|
|
—
|
|
|
(289)
|
|
|
(35)
|
|
|
(297)
|
|
Commercial and
multifamily residential real estate
|
|
(26)
|
|
|
—
|
|
|
(43)
|
|
|
(26)
|
|
|
(43)
|
|
Consumer
|
|
(334)
|
|
|
(266)
|
|
|
(319)
|
|
|
(600)
|
|
|
(1,210)
|
|
Purchased credit
impaired
|
|
(2,898)
|
|
|
(2,866)
|
|
|
(2,876)
|
|
|
(5,764)
|
|
|
(6,976)
|
|
Total
charge-offs
|
|
(6,234)
|
|
|
(6,905)
|
|
|
(5,613)
|
|
|
(13,139)
|
|
|
(12,038)
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
Commercial
business
|
|
753
|
|
|
662
|
|
|
209
|
|
|
1,415
|
|
|
827
|
|
One-to-four family
residential real estate
|
|
20
|
|
|
41
|
|
|
15
|
|
|
61
|
|
|
27
|
|
Commercial and
multifamily residential real estate
|
|
130
|
|
|
69
|
|
|
20
|
|
|
199
|
|
|
3,281
|
|
One-to-four family
residential real estate construction
|
|
5
|
|
|
254
|
|
|
8
|
|
|
259
|
|
|
36
|
|
Commercial and
multifamily residential real estate construction
|
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
|
5
|
|
Consumer
|
|
201
|
|
|
165
|
|
|
137
|
|
|
366
|
|
|
410
|
|
Purchased credit
impaired
|
|
1,524
|
|
|
1,551
|
|
|
2,043
|
|
|
3,075
|
|
|
3,729
|
|
Total
recoveries
|
|
2,634
|
|
|
2,743
|
|
|
2,434
|
|
|
5,377
|
|
|
8,315
|
|
Net
charge-offs
|
|
(3,600)
|
|
|
(4,162)
|
|
|
(3,179)
|
|
|
(7,762)
|
|
|
(3,723)
|
|
Provision for loan
and lease losses
|
|
3,640
|
|
|
5,254
|
|
|
2,202
|
|
|
8,894
|
|
|
3,411
|
|
Ending
balance
|
|
$
|
69,304
|
|
|
$
|
69,264
|
|
|
$
|
69,257
|
|
|
$
|
69,304
|
|
|
$
|
69,257
|
|
The allowance for loan losses to period end loans was 1.13% at
June 30, 2016 compared to 1.18% at March 31, 2016 and
1.17% at December 31, 2015. For the second quarter of 2016,
Columbia recorded a net provision
for loan and lease losses of $3.6
million compared to a net provision of $5.3 million for the linked quarter and
$2.2 million for the comparable
quarter last year. The provision for loan and lease losses recorded
during the current quarter was due to growth in the loan portfolio
and net charge-off activity.
Andy McDonald, Columbia's Executive Vice President and Chief
Credit Officer, commented, "As we have previously stated, one of
our long standing benchmarks coming out of the great recession was
to have nonperforming assets at a level of 50 basis points or
below. We achieved this metric during the second half of 2015 and
now see this ratio moving within a range on either side of 50 basis
points." Mr. McDonald continued, "The ratio is expected to move
from period to period due to events occurring within the normal
course of business."
Impact of FDIC Acquired Loan Accounting
While the significance of the FDIC acquired loan accounting has
diminished over time, the following table illustrates the impact to
earnings associated with Columbia's FDIC acquired loan portfolios:
FDIC Acquired Loan
Accounting
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
2016
|
|
March 31,
2016
|
|
June 30,
2015
|
|
June 30,
2016
|
|
June 30,
2015
|
|
|
(in
thousands)
|
Incremental accretion
income on FDIC purchased credit impaired loans
|
|
$
|
1,300
|
|
|
$
|
1,657
|
|
|
$
|
2,367
|
|
|
$
|
2,957
|
|
|
$
|
4,814
|
|
Incremental accretion
income on other FDIC acquired loans (1)
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
132
|
|
Provision for losses
on FDIC purchased credit impaired loans
|
|
(91)
|
|
|
(653)
|
|
|
(476)
|
|
|
(744)
|
|
|
(3,085)
|
|
Change in FDIC
loss-sharing asset
|
|
(990)
|
|
|
(1,103)
|
|
|
(1,494)
|
|
|
(2,093)
|
|
|
(1,344)
|
|
FDIC clawback
liability recovery (expense)
|
|
(70)
|
|
|
(209)
|
|
|
30
|
|
|
(279)
|
|
|
7
|
|
Pre-tax earnings
impact
|
|
$
|
149
|
|
|
$
|
(308)
|
|
|
$
|
442
|
|
|
$
|
(159)
|
|
|
$
|
524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For 2016,
incremental accretion income on other FDIC acquired loans is no
longer considered significant.
|
The incremental accretion income on FDIC purchased credit
impaired loans represents the amount of income recorded above the
contractual rate stated in the individual loan notes. At
June 30, 2016, the accretable yield on purchased credit
impaired loans was $52.9 million.
Accretable yield is subject to change based upon expected future
loan cash flows, which are remeasured by Columbia on a quarterly basis.
The $990 thousand change in the
FDIC loss-sharing asset in the current quarter reduced noninterest
income and consisted primarily of $883
thousand in amortization expense. Additional details of the
components of the change in the FDIC loss-sharing asset are
provided in tabular format in the section titled "Noninterest
Income" in the prior pages.
Stock Repurchase Program
The Board of Directors approved a stock repurchase program which
succeeds the prior program that was adopted in October 2011. The program authorizes the Company
to repurchase up to 2.9 million shares of our outstanding common
stock, representing approximately 5% of the common shares
outstanding. The Company intends to repurchase the shares from time
to time in the open market or in private transactions, under
conditions which allow such repurchases to be accretive to earnings
while maintaining capital ratios that exceed the guidelines for a
well-capitalized financial institution.
Organizational Update
Ms. Dressel commented, "As a result of our ongoing efforts to
improve operating leverage while still preserving our commitment to
our customers and the communities we serve, we consolidated two
branches during the second quarter of 2016."
Ms. Dressel continued, "We firmly believe that in order to be a
great place to bank, we must first be a great place to work. We
strive to create an engaged work environment in which our employees
can serve our customers effectively. We are delighted and gratified
that Columbia Bank was recently named one of "Washington's Best Places to Work" 2016 by the
Puget Sound Business Journal for the tenth consecutive
year."
Conference Call Information
Columbia's management will
discuss the second quarter 2016 results on a conference call
scheduled for Thursday, July 28, 2016
at 1:00 p.m. Pacific Daylight Time
(4:00 p.m. Eastern Daylight Time).
Interested parties may listen to this discussion by calling
1-866-378-3802; Conference ID code #22782088.
A conference call replay will be available from approximately
4:00 p.m. PDT on July 28, 2016 through midnight PDT on August 4,
2016. The conference call replay can be accessed by dialing
1-855-859-2056 and entering Conference ID code #22782088.
About Columbia
Headquartered in Tacoma,
Washington, Columbia Banking System, Inc. is the holding
company of Columbia Bank, a Washington
state-chartered full-service commercial bank with locations
throughout Washington,
Oregon and Idaho. For the
tenth consecutive year, the bank was named in 2016 as one
of Puget Sound Business Journal's "Washington's Best Workplaces."
Columbia ranked in the top 20 on
the 2016 Forbes list of best banks in the country
for the fifth year in a row.
More information about Columbia
can be found on its website at www.columbiabank.com.
Note Regarding Forward-Looking Statements
This news
release includes forward looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These forward
looking statements include, but are not limited to, descriptions of
Columbia's management's
expectations regarding future events and developments such as
future operating results, growth in loans and deposits, continued
success of Columbia's style of
banking and the strength of the local economy. The words "will,"
"believe," "expect," "intend," "should," and "anticipate" or the
negative of these words or words of similar construction are
intended in part to help identify forward looking statements.
Future events are difficult to predict, and the expectations
described above are necessarily subject to risks and uncertainties,
many of which are outside our control, that may cause actual
results to differ materially and adversely. In addition to
discussions about risks and uncertainties set forth from time to
time in Columbia's filings with
the Securities and Exchange Commission, available at the SEC's
website at www.sec.gov and the Company's website at
www.columbiabank.com, including the "Risk Factors," "Business" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" sections of our annual reports on Form 10-K
and quarterly reports on Form 10-Q, (as applicable), factors that
may cause actual results to differ materially from those
contemplated by such forward-looking statements include, among
others, the following: (1) local, national and international
economic conditions may be less favorable than expected or have a
more direct and pronounced effect on Columbia than expected and adversely affect
Columbia's ability to continue its
internal growth at historical rates and maintain the quality of its
earning assets; (2) changes in interest rates could significantly
reduce net interest income and negatively affect funding sources;
(3) projected business increases following strategic expansion or
opening or acquiring new branches may be lower than expected; (4)
costs or difficulties related to the integration of acquisitions
may be greater than expected; (5) competitive pressure among
financial institutions may increase significantly; and (6)
legislation or regulatory requirements or changes may adversely
affect the businesses in which Columbia is engaged. We believe the
expectations reflected in our forward-looking statements are
reasonable, based on information available to us on the date
hereof. However, given the described uncertainties and risks, we
cannot guarantee our future performance or results of operations
and you should not place undue reliance on these forward-looking
statements which speak only as of the date hereof. We undertake no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by the federal securities laws. The factors
noted above and the risks and uncertainties described in our SEC
filings should be considered when reading any forward-looking
statements in this release.
FINANCIAL
STATISTICS
|
|
|
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
Three Months
Ended
|
|
Six Months
Ended
|
Unaudited
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Earnings
|
|
(dollars in
thousands except per share amounts)
|
Net interest
income
|
|
$
|
82,140
|
|
|
$
|
80,170
|
|
|
$
|
81,010
|
|
|
$
|
162,310
|
|
|
$
|
161,374
|
|
Provision for loan
and lease losses
|
|
$
|
3,640
|
|
|
$
|
5,254
|
|
|
$
|
2,202
|
|
|
$
|
8,894
|
|
|
$
|
3,411
|
|
Noninterest
income
|
|
$
|
21,940
|
|
|
$
|
20,646
|
|
|
$
|
21,462
|
|
|
$
|
42,586
|
|
|
$
|
44,229
|
|
Noninterest
expense
|
|
$
|
63,790
|
|
|
$
|
65,074
|
|
|
$
|
68,471
|
|
|
$
|
128,864
|
|
|
$
|
135,205
|
|
Acquisition-related
expense (included in noninterest expense)
|
|
$
|
—
|
|
|
$
|
2,436
|
|
|
$
|
5,643
|
|
|
$
|
2,436
|
|
|
$
|
8,617
|
|
Net income
|
|
$
|
25,405
|
|
|
$
|
21,259
|
|
|
$
|
21,946
|
|
|
$
|
46,664
|
|
|
$
|
46,307
|
|
Per Common
Share
|
|
|
|
|
|
|
|
|
|
|
Earnings
(basic)
|
|
$
|
0.44
|
|
|
$
|
0.37
|
|
|
$
|
0.38
|
|
|
$
|
0.80
|
|
|
$
|
0.80
|
|
Earnings
(diluted)
|
|
$
|
0.44
|
|
|
$
|
0.37
|
|
|
$
|
0.38
|
|
|
$
|
0.80
|
|
|
$
|
0.80
|
|
Book value
|
|
$
|
21.93
|
|
|
$
|
21.70
|
|
|
$
|
21.38
|
|
|
$
|
21.93
|
|
|
$
|
21.38
|
|
Averages
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
9,230,791
|
|
|
$
|
8,949,212
|
|
|
$
|
8,532,173
|
|
|
$
|
9,090,001
|
|
|
$
|
8,519,047
|
|
Interest-earning
assets
|
|
$
|
8,285,183
|
|
|
$
|
8,005,945
|
|
|
$
|
7,560,288
|
|
|
$
|
8,145,564
|
|
|
$
|
7,544,750
|
|
Loans
|
|
$
|
5,999,428
|
|
|
$
|
5,827,440
|
|
|
$
|
5,542,489
|
|
|
$
|
5,913,434
|
|
|
$
|
5,479,067
|
|
Securities, including
Federal Home Loan Bank stock
|
|
$
|
2,262,012
|
|
|
$
|
2,147,457
|
|
|
$
|
1,976,959
|
|
|
$
|
2,204,734
|
|
|
$
|
2,022,629
|
|
Deposits
|
|
$
|
7,622,266
|
|
|
$
|
7,445,693
|
|
|
$
|
6,978,472
|
|
|
$
|
7,533,980
|
|
|
$
|
6,953,254
|
|
Interest-bearing
deposits
|
|
$
|
4,026,384
|
|
|
$
|
3,983,314
|
|
|
$
|
3,753,101
|
|
|
$
|
4,004,849
|
|
|
$
|
3,954,179
|
|
Interest-bearing
liabilities
|
|
$
|
4,264,792
|
|
|
$
|
4,124,582
|
|
|
$
|
3,961,013
|
|
|
$
|
4,194,687
|
|
|
$
|
4,177,057
|
|
Noninterest-bearing
deposits
|
|
$
|
3,595,882
|
|
|
$
|
3,462,379
|
|
|
$
|
3,225,371
|
|
|
$
|
3,529,131
|
|
|
$
|
2,999,075
|
|
Shareholders'
equity
|
|
$
|
1,267,670
|
|
|
$
|
1,258,411
|
|
|
$
|
1,247,887
|
|
|
$
|
1,263,040
|
|
|
$
|
1,244,389
|
|
Financial
Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.10
|
%
|
|
0.95
|
%
|
|
1.03
|
%
|
|
1.03
|
%
|
|
1.09
|
%
|
Return on average
common equity
|
|
8.02
|
%
|
|
6.76
|
%
|
|
7.04
|
%
|
|
7.39
|
%
|
|
7.45
|
%
|
Average equity to
average assets
|
|
13.73
|
%
|
|
14.06
|
%
|
|
14.63
|
%
|
|
13.89
|
%
|
|
14.61
|
%
|
Net interest margin
(tax equivalent)
|
|
4.10
|
%
|
|
4.13
|
%
|
|
4.41
|
%
|
|
4.12
|
%
|
|
4.40
|
%
|
Efficiency ratio (tax
equivalent) (1)
|
|
59.30
|
%
|
|
62.63
|
%
|
|
64.96
|
%
|
|
60.93
|
%
|
|
63.95
|
%
|
Operating efficiency
ratio (tax equivalent) (2)
|
|
58.81
|
%
|
|
59.43
|
%
|
|
60.78
|
%
|
|
59.12
|
%
|
|
61.90
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
|
|
|
Period
end
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
Total
assets
|
|
$
|
9,353,651
|
|
|
$
|
9,035,932
|
|
|
8,951,697
|
|
|
|
|
|
Loans, net of
unearned income
|
|
$
|
6,107,143
|
|
|
$
|
5,877,283
|
|
|
5,815,027
|
|
|
|
|
|
Allowance for loan
and lease losses
|
|
$
|
69,304
|
|
|
$
|
69,264
|
|
|
68,172
|
|
|
|
|
|
Securities, including
Federal Home Loan Bank stock
|
|
$
|
2,297,713
|
|
|
$
|
2,196,407
|
|
|
2,170,416
|
|
|
|
|
|
Deposits
|
|
$
|
7,673,213
|
|
|
$
|
7,596,949
|
|
|
7,438,829
|
|
|
|
|
|
Core
deposits
|
|
$
|
7,447,963
|
|
|
$
|
7,384,622
|
|
|
7,238,713
|
|
|
|
|
|
Shareholders'
equity
|
|
$
|
1,274,479
|
|
|
$
|
1,260,788
|
|
|
1,242,128
|
|
|
|
|
|
Nonperforming
assets
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
22,915
|
|
|
$
|
36,891
|
|
|
21,464
|
|
|
|
|
|
Other real estate
owned ("OREO") and other personal property owned
("OPPO")
|
|
10,613
|
|
|
12,427
|
|
|
13,738
|
|
|
|
|
|
Total nonperforming
assets
|
|
$
|
33,528
|
|
|
$
|
49,318
|
|
|
$
|
35,202
|
|
|
|
|
|
Nonperforming loans
to period-end loans
|
|
0.38
|
%
|
|
0.63
|
%
|
|
0.37
|
%
|
|
|
|
|
Nonperforming assets
to period-end assets
|
|
0.36
|
%
|
|
0.55
|
%
|
|
0.39
|
%
|
|
|
|
|
Allowance for loan
and lease losses to period-end loans
|
|
1.13
|
%
|
|
1.18
|
%
|
|
1.17
|
%
|
|
|
|
|
Net loan
charge-offs
|
|
$
|
3,600
|
|
(3)
|
$
|
4,162
|
|
(4)
|
$
|
3,226
|
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Noninterest
expense divided by the sum of net interest income on a tax
equivalent basis and noninterest income on a tax equivalent
basis.
|
(2) The operating
efficiency ratio (tax equivalent) is a non-GAAP financial measure.
See section titled "Non-GAAP Financial Measures" on the last pages
of this earnings release for the reconciliation of the operating
efficiency ratio (tax equivalent) to the efficiency ratio (tax
equivalent).
|
(3) For the three
months ended June 30, 2016.
|
|
|
|
|
|
|
|
|
|
|
(4) For the three
months ended March 31, 2016.
|
|
|
|
|
|
|
|
|
(5) For the three
months ended December 31, 2015.
|
|
|
|
|
|
|
|
|
QUARTERLY
FINANCIAL STATISTICS
|
|
|
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
Three Months
Ended
|
Unaudited
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
|
(dollars in
thousands except per share)
|
Earnings
|
|
|
Net interest
income
|
|
$
|
82,140
|
|
|
$
|
80,170
|
|
|
$
|
81,819
|
|
|
$
|
81,694
|
|
|
$
|
81,010
|
|
Provision for loan
and lease losses
|
|
$
|
3,640
|
|
|
$
|
5,254
|
|
|
$
|
2,349
|
|
|
$
|
2,831
|
|
|
$
|
2,202
|
|
Noninterest
income
|
|
$
|
21,940
|
|
|
$
|
20,646
|
|
|
$
|
24,745
|
|
|
$
|
22,499
|
|
|
$
|
21,462
|
|
Noninterest
expense
|
|
$
|
63,790
|
|
|
$
|
65,074
|
|
|
$
|
66,877
|
|
|
$
|
64,067
|
|
|
$
|
68,471
|
|
Acquisition-related
expense (included in noninterest expense)
|
|
$
|
—
|
|
|
$
|
2,436
|
|
|
$
|
1,872
|
|
|
$
|
428
|
|
|
$
|
5,643
|
|
Net income
|
|
$
|
25,405
|
|
|
$
|
21,259
|
|
|
$
|
26,740
|
|
|
$
|
25,780
|
|
|
$
|
21,946
|
|
Per Common
Share
|
|
|
|
|
|
|
|
|
|
|
Earnings
(basic)
|
|
$
|
0.44
|
|
|
$
|
0.37
|
|
|
$
|
0.46
|
|
|
$
|
0.45
|
|
|
$
|
0.38
|
|
Earnings
(diluted)
|
|
$
|
0.44
|
|
|
$
|
0.37
|
|
|
$
|
0.46
|
|
|
$
|
0.45
|
|
|
$
|
0.38
|
|
Book value
|
|
$
|
21.93
|
|
|
$
|
21.70
|
|
|
$
|
21.48
|
|
|
$
|
21.69
|
|
|
$
|
21.38
|
|
Averages
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
9,230,791
|
|
|
$
|
8,949,212
|
|
|
$
|
8,905,743
|
|
|
$
|
8,672,692
|
|
|
$
|
8,532,173
|
|
Interest-earning
assets
|
|
$
|
8,285,183
|
|
|
$
|
8,005,945
|
|
|
$
|
7,937,308
|
|
|
$
|
7,711,531
|
|
|
$
|
7,560,288
|
|
Loans
|
|
$
|
5,999,428
|
|
|
$
|
5,827,440
|
|
|
$
|
5,762,048
|
|
|
$
|
5,712,614
|
|
|
$
|
5,542,489
|
|
Securities, including
Federal Home Loan Bank stock
|
|
$
|
2,262,012
|
|
|
$
|
2,147,457
|
|
|
$
|
2,136,703
|
|
|
$
|
1,945,174
|
|
|
$
|
1,976,959
|
|
Deposits
|
|
$
|
7,622,266
|
|
|
$
|
7,445,693
|
|
|
$
|
7,440,628
|
|
|
$
|
7,233,863
|
|
|
$
|
6,978,472
|
|
Interest-bearing
deposits
|
|
$
|
4,026,384
|
|
|
$
|
3,983,314
|
|
|
$
|
3,933,001
|
|
|
$
|
3,910,695
|
|
|
$
|
3,753,101
|
|
Interest-bearing
liabilities
|
|
$
|
4,264,792
|
|
|
$
|
4,124,582
|
|
|
$
|
4,031,214
|
|
|
$
|
4,007,198
|
|
|
$
|
3,961,013
|
|
Noninterest-bearing
deposits
|
|
$
|
3,595,882
|
|
|
$
|
3,462,379
|
|
|
$
|
3,507,627
|
|
|
$
|
3,323,168
|
|
|
$
|
3,225,371
|
|
Shareholders'
equity
|
|
$
|
1,267,670
|
|
|
$
|
1,258,411
|
|
|
$
|
1,259,117
|
|
|
$
|
1,239,830
|
|
|
$
|
1,247,887
|
|
Financial
Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.10
|
%
|
|
0.95
|
%
|
|
1.20
|
%
|
|
1.19
|
%
|
|
1.03
|
%
|
Return on average
common equity
|
|
8.02
|
%
|
|
6.76
|
%
|
|
8.50
|
%
|
|
8.32
|
%
|
|
7.04
|
%
|
Average equity to
average assets
|
|
13.73
|
%
|
|
14.06
|
%
|
|
14.14
|
%
|
|
14.30
|
%
|
|
14.63
|
%
|
Net interest margin
(tax equivalent)
|
|
4.10
|
%
|
|
4.13
|
%
|
|
4.25
|
%
|
|
4.37
|
%
|
|
4.41
|
%
|
Period
end
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
9,353,651
|
|
|
$
|
9,035,932
|
|
|
$
|
8,951,697
|
|
|
$
|
8,755,984
|
|
|
$
|
8,518,019
|
|
Loans, net of
unearned income
|
|
$
|
6,107,143
|
|
|
$
|
5,877,283
|
|
|
$
|
5,815,027
|
|
|
$
|
5,746,511
|
|
|
$
|
5,611,897
|
|
Allowance for loan
and lease losses
|
|
$
|
69,304
|
|
|
$
|
69,264
|
|
|
$
|
68,172
|
|
|
$
|
69,049
|
|
|
$
|
69,257
|
|
Securities, including
Federal Home Loan Bank stock
|
|
$
|
2,297,713
|
|
|
$
|
2,196,407
|
|
|
$
|
2,170,416
|
|
|
$
|
2,037,666
|
|
|
$
|
1,926,248
|
|
Deposits
|
|
$
|
7,673,213
|
|
|
$
|
7,596,949
|
|
|
$
|
7,438,829
|
|
|
$
|
7,314,805
|
|
|
$
|
7,044,373
|
|
Core
deposits
|
|
$
|
7,447,963
|
|
|
$
|
7,384,622
|
|
|
$
|
7,238,713
|
|
|
$
|
7,104,554
|
|
|
$
|
6,862,970
|
|
Shareholders'
equity
|
|
$
|
1,274,479
|
|
|
$
|
1,260,788
|
|
|
$
|
1,242,128
|
|
|
$
|
1,254,136
|
|
|
$
|
1,236,214
|
|
Nonperforming,
assets
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
22,915
|
|
|
$
|
36,891
|
|
|
$
|
21,464
|
|
|
$
|
19,080
|
|
|
$
|
25,746
|
|
OREO and
OPPO
|
|
10,613
|
|
|
12,427
|
|
|
13,738
|
|
|
19,475
|
|
|
20,665
|
|
Total nonperforming
assets
|
|
$
|
33,528
|
|
|
$
|
49,318
|
|
|
$
|
35,202
|
|
|
$
|
38,555
|
|
|
$
|
46,411
|
|
Nonperforming loans
to period-end loans
|
|
0.38
|
%
|
|
0.63
|
%
|
|
0.37
|
%
|
|
0.33
|
%
|
|
0.46
|
%
|
Nonperforming assets
to period-end assets
|
|
0.36
|
%
|
|
0.55
|
%
|
|
0.39
|
%
|
|
0.44
|
%
|
|
0.54
|
%
|
Allowance for loan
and lease losses to period-end loans
|
|
1.13
|
%
|
|
1.18
|
%
|
|
1.17
|
%
|
|
1.20
|
%
|
|
1.23
|
%
|
Net loan
charge-offs
|
|
$
|
3,600
|
|
|
$
|
4,162
|
|
|
$
|
3,226
|
|
|
$
|
3,039
|
|
|
$
|
3,179
|
|
LOAN PORTFOLIO
COMPOSITION
|
|
|
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
Loan Portfolio
Composition - Dollars
|
|
(dollars in
thousands)
|
Commercial
business
|
|
$
|
2,518,682
|
|
|
$
|
2,401,193
|
|
|
$
|
2,362,575
|
|
|
$
|
2,354,731
|
|
|
$
|
2,255,468
|
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
One-to-four family
residential
|
|
172,957
|
|
|
175,050
|
|
|
176,295
|
|
|
177,108
|
|
|
181,849
|
|
Commercial and
multifamily residential
|
|
2,651,476
|
|
|
2,520,352
|
|
|
2,491,736
|
|
|
2,449,847
|
|
|
2,406,594
|
|
Total real
estate
|
|
2,824,433
|
|
|
2,695,402
|
|
|
2,668,031
|
|
|
2,626,955
|
|
|
2,588,443
|
|
Real estate
construction:
|
|
|
|
|
|
|
|
|
|
|
One-to-four family
residential
|
|
129,195
|
|
|
133,447
|
|
|
135,874
|
|
|
136,783
|
|
|
127,311
|
|
Commercial and
multifamily residential
|
|
185,315
|
|
|
183,548
|
|
|
167,413
|
|
|
134,097
|
|
|
129,302
|
|
Total real estate
construction
|
|
314,510
|
|
|
316,995
|
|
|
303,287
|
|
|
270,880
|
|
|
256,613
|
|
Consumer
|
|
325,632
|
|
|
329,902
|
|
|
342,601
|
|
|
348,315
|
|
|
358,365
|
|
Purchased credit
impaired
|
|
161,107
|
|
|
173,201
|
|
|
180,906
|
|
|
191,066
|
|
|
202,367
|
|
Subtotal
loans
|
|
6,144,364
|
|
|
5,916,693
|
|
|
5,857,400
|
|
|
5,791,947
|
|
|
5,661,256
|
|
Less: Net
unearned income
|
|
(37,221)
|
|
|
(39,410)
|
|
|
(42,373)
|
|
|
(45,436)
|
|
|
(49,359)
|
|
Loans, net of
unearned income
|
|
6,107,143
|
|
|
5,877,283
|
|
|
5,815,027
|
|
|
5,746,511
|
|
|
5,611,897
|
|
Less: Allowance
for loan and lease losses
|
|
(69,304)
|
|
|
(69,264)
|
|
|
(68,172)
|
|
|
(69,049)
|
|
|
(69,257)
|
|
Total loans,
net
|
|
6,037,839
|
|
|
5,808,019
|
|
|
5,746,855
|
|
|
5,677,462
|
|
|
5,542,640
|
|
Loans held for
sale
|
|
$
|
7,649
|
|
|
$
|
3,681
|
|
|
$
|
4,509
|
|
|
$
|
6,637
|
|
|
$
|
4,220
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
Loan Portfolio
Composition - Percentages
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
Commercial
business
|
|
41.2
|
%
|
|
40.9
|
%
|
|
40.6
|
%
|
|
41.0
|
%
|
|
40.2
|
%
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
One-to-four family
residential
|
|
2.8
|
%
|
|
3.0
|
%
|
|
3.0
|
%
|
|
3.1
|
%
|
|
3.2
|
%
|
Commercial and
multifamily residential
|
|
43.6
|
%
|
|
42.9
|
%
|
|
42.9
|
%
|
|
42.6
|
%
|
|
42.9
|
%
|
Total real
estate
|
|
46.4
|
%
|
|
45.9
|
%
|
|
45.9
|
%
|
|
45.7
|
%
|
|
46.1
|
%
|
Real estate
construction:
|
|
|
|
|
|
|
|
|
|
|
One-to-four family
residential
|
|
2.1
|
%
|
|
2.3
|
%
|
|
2.3
|
%
|
|
2.4
|
%
|
|
2.3
|
%
|
Commercial and
multifamily residential
|
|
3.0
|
%
|
|
3.1
|
%
|
|
2.9
|
%
|
|
2.3
|
%
|
|
2.3
|
%
|
Total real estate
construction
|
|
5.1
|
%
|
|
5.4
|
%
|
|
5.2
|
%
|
|
4.7
|
%
|
|
4.6
|
%
|
Consumer
|
|
5.3
|
%
|
|
5.6
|
%
|
|
5.9
|
%
|
|
6.1
|
%
|
|
6.4
|
%
|
Purchased credit
impaired
|
|
2.6
|
%
|
|
2.9
|
%
|
|
3.1
|
%
|
|
3.3
|
%
|
|
3.6
|
%
|
Subtotal
loans
|
|
100.6
|
%
|
|
100.7
|
%
|
|
100.7
|
%
|
|
100.8
|
%
|
|
100.9
|
%
|
Less: Net
unearned income
|
|
(0.6)
|
%
|
|
(0.7)
|
%
|
|
(0.7)
|
%
|
|
(0.8)
|
%
|
|
(0.9)
|
%
|
Loans, net of
unearned income
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
DEPOSIT
COMPOSITION
|
|
|
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
|
2016
|
|
2016
(1)
|
|
2015
(1)
|
|
2015
(1)
|
|
2015
(1)
|
Deposit
Composition - Dollars
|
|
(dollars in
thousands)
|
Core
deposits:
|
|
|
|
|
|
|
|
|
|
|
Demand and other
non-interest bearing
|
|
$
|
3,652,951
|
|
|
$
|
3,553,468
|
|
|
$
|
3,507,358
|
|
|
$
|
3,386,968
|
|
|
$
|
3,207,538
|
|
Interest bearing
demand
|
|
957,548
|
|
|
958,469
|
|
|
925,909
|
|
|
911,686
|
|
|
912,637
|
|
Money
market
|
|
1,818,337
|
|
|
1,838,364
|
|
|
1,788,552
|
|
|
1,776,087
|
|
|
1,718,000
|
|
Savings
|
|
692,694
|
|
|
695,588
|
|
|
657,016
|
|
|
651,695
|
|
|
630,897
|
|
Certificates of
deposit, less than $250,000 (1)
|
|
326,433
|
|
|
338,733
|
|
|
359,878
|
|
|
378,118
|
|
|
393,898
|
|
Total core
deposits
|
|
7,447,963
|
|
|
7,384,622
|
|
|
7,238,713
|
|
|
7,104,554
|
|
|
6,862,970
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of
deposit, $250,000 or more (1)
|
|
72,812
|
|
|
70,571
|
|
|
72,126
|
|
|
65,699
|
|
|
69,448
|
|
Certificates of
deposit insured by CDARS®
|
|
22,755
|
|
|
24,752
|
|
|
26,901
|
|
|
26,975
|
|
|
18,357
|
|
Brokered money market
accounts
|
|
129,590
|
|
|
116,878
|
|
|
100,854
|
|
|
117,196
|
|
|
93,061
|
|
Subtotal
|
|
7,673,120
|
|
|
7,596,823
|
|
|
7,438,594
|
|
|
7,314,424
|
|
|
7,043,836
|
|
Premium resulting
from acquisition date fair value adjustment
|
|
93
|
|
|
126
|
|
|
235
|
|
|
381
|
|
|
537
|
|
Total
deposits
|
|
$
|
7,673,213
|
|
|
$
|
7,596,949
|
|
|
$
|
7,438,829
|
|
|
$
|
7,314,805
|
|
|
$
|
7,044,373
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
Deposit
Composition - Percentages
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
Core
deposits:
|
|
|
|
|
|
|
|
|
|
|
Demand and other
non-interest bearing
|
|
47.6
|
%
|
|
46.8
|
%
|
|
47.2
|
%
|
|
46.3
|
%
|
|
45.5
|
%
|
Interest bearing
demand
|
|
12.5
|
%
|
|
12.6
|
%
|
|
12.4
|
%
|
|
12.5
|
%
|
|
13.0
|
%
|
Money
market
|
|
23.7
|
%
|
|
24.2
|
%
|
|
24.0
|
%
|
|
24.3
|
%
|
|
24.4
|
%
|
Savings
|
|
9.0
|
%
|
|
9.2
|
%
|
|
8.8
|
%
|
|
8.9
|
%
|
|
9.0
|
%
|
Certificates of
deposit, less than $250,000 (1)
|
|
4.3
|
%
|
|
4.5
|
%
|
|
4.8
|
%
|
|
5.2
|
%
|
|
5.6
|
%
|
Total core
deposits
|
|
97.1
|
%
|
|
97.3
|
%
|
|
97.2
|
%
|
|
97.2
|
%
|
|
97.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of
deposit, $250,000 or more (1)
|
|
0.9
|
%
|
|
0.9
|
%
|
|
1.0
|
%
|
|
0.8
|
%
|
|
0.9
|
%
|
Certificates of
deposit insured by CDARS®
|
|
0.3
|
%
|
|
0.3
|
%
|
|
0.4
|
%
|
|
0.4
|
%
|
|
0.3
|
%
|
Brokered money market
accounts
|
|
1.7
|
%
|
|
1.5
|
%
|
|
1.4
|
%
|
|
1.6
|
%
|
|
1.3
|
%
|
Total
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
(1) Reclassified to
conform to current period's presentation. The reclassification was
limited to changing the threshold for certificates of deposit
presented to the current FDIC insurance limit.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
Three Months
Ended
|
|
Six Months
Ended
|
Unaudited
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
|
2016
|
|
2016
|
|
2015
(1)
|
|
2016
|
|
2015
(1)
|
|
|
(in thousands
except per share)
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
71,651
|
|
|
$
|
70,316
|
|
|
$
|
71,744
|
|
|
$
|
141,967
|
|
|
$
|
142,566
|
|
Taxable
securities
|
|
8,829
|
|
|
8,017
|
|
|
7,260
|
|
|
16,846
|
|
|
14,786
|
|
Tax-exempt
securities
|
|
2,795
|
|
|
2,803
|
|
|
3,010
|
|
|
5,598
|
|
|
6,052
|
|
Deposits in
banks
|
|
28
|
|
|
38
|
|
|
26
|
|
|
66
|
|
|
53
|
|
Total interest
income
|
|
83,303
|
|
|
81,174
|
|
|
82,040
|
|
|
164,477
|
|
|
163,457
|
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
787
|
|
|
742
|
|
|
740
|
|
|
1,529
|
|
|
1,488
|
|
Federal Home Loan
Bank advances
|
|
241
|
|
|
124
|
|
|
154
|
|
|
365
|
|
|
313
|
|
Other
borrowings
|
|
135
|
|
|
138
|
|
|
136
|
|
|
273
|
|
|
282
|
|
Total interest
expense
|
|
1,163
|
|
|
1,004
|
|
|
1,030
|
|
|
2,167
|
|
|
2,083
|
|
Net Interest
Income
|
|
82,140
|
|
|
80,170
|
|
|
81,010
|
|
|
162,310
|
|
|
161,374
|
|
Provision for loan
and lease losses
|
|
3,640
|
|
|
5,254
|
|
|
2,202
|
|
|
8,894
|
|
|
3,411
|
|
Net interest income
after provision for loan and lease losses
|
|
78,500
|
|
|
74,916
|
|
|
78,808
|
|
|
153,416
|
|
|
157,963
|
|
Noninterest
Income
|
|
|
|
|
|
|
|
|
|
|
Deposit account and
treasury management fees (1)
|
|
7,093
|
|
|
6,989
|
|
|
7,351
|
|
|
14,082
|
|
|
14,211
|
|
Card revenue
(1)
|
|
6,051
|
|
|
5,652
|
|
|
5,702
|
|
|
11,703
|
|
|
11,065
|
|
Financial services
and trust revenue (1)
|
|
2,780
|
|
|
2,821
|
|
|
3,217
|
|
|
5,601
|
|
|
6,341
|
|
Loan revenue
(1)
|
|
2,802
|
|
|
2,262
|
|
|
2,322
|
|
|
5,064
|
|
|
4,925
|
|
Merchant processing
revenue
|
|
2,272
|
|
|
2,102
|
|
|
2,340
|
|
|
4,374
|
|
|
4,380
|
|
Bank owned life
insurance
|
|
1,270
|
|
|
1,116
|
|
|
1,206
|
|
|
2,386
|
|
|
2,284
|
|
Investment securities
gains, net
|
|
229
|
|
|
373
|
|
|
343
|
|
|
602
|
|
|
1,064
|
|
Change in FDIC
loss-sharing asset
|
|
(990)
|
|
|
(1,103)
|
|
|
(1,494)
|
|
|
(2,093)
|
|
|
(1,344)
|
|
Other (1)
|
|
433
|
|
|
434
|
|
|
475
|
|
|
867
|
|
|
1,303
|
|
Total noninterest
income
|
|
21,940
|
|
|
20,646
|
|
|
21,462
|
|
|
42,586
|
|
|
44,229
|
|
Noninterest
Expense
|
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
|
37,291
|
|
|
36,319
|
|
|
38,446
|
|
|
73,610
|
|
|
77,546
|
|
Occupancy
|
|
7,652
|
|
|
10,173
|
|
|
8,687
|
|
|
17,825
|
|
|
16,680
|
|
Merchant processing
expense
|
|
1,118
|
|
|
1,033
|
|
|
1,079
|
|
|
2,151
|
|
|
2,056
|
|
Advertising and
promotion
|
|
1,043
|
|
|
842
|
|
|
1,195
|
|
|
1,885
|
|
|
2,126
|
|
Data
processing
|
|
3,929
|
|
|
4,146
|
|
|
4,242
|
|
|
8,075
|
|
|
9,226
|
|
Legal and
professional fees
|
|
1,777
|
|
|
1,325
|
|
|
2,847
|
|
|
3,102
|
|
|
5,354
|
|
Taxes, licenses and
fees
|
|
1,298
|
|
|
1,290
|
|
|
1,427
|
|
|
2,588
|
|
|
2,659
|
|
Regulatory
premiums
|
|
1,068
|
|
|
1,141
|
|
|
1,321
|
|
|
2,209
|
|
|
2,542
|
|
Net cost (benefit) of
operation of other real estate owned
|
|
84
|
|
|
104
|
|
|
(563)
|
|
|
188
|
|
|
(1,809)
|
|
Amortization of
intangibles
|
|
1,483
|
|
|
1,583
|
|
|
1,718
|
|
|
3,066
|
|
|
3,535
|
|
Other
|
|
7,047
|
|
|
7,118
|
|
|
8,072
|
|
|
14,165
|
|
|
15,290
|
|
Total noninterest
expense
|
|
63,790
|
|
|
65,074
|
|
|
68,471
|
|
|
128,864
|
|
|
135,205
|
|
Income before income
taxes
|
|
36,650
|
|
|
30,488
|
|
|
31,799
|
|
|
67,138
|
|
|
66,987
|
|
Provision for income
taxes
|
|
11,245
|
|
|
9,229
|
|
|
9,853
|
|
|
20,474
|
|
|
20,680
|
|
Net
Income
|
|
$
|
25,405
|
|
|
$
|
21,259
|
|
|
$
|
21,946
|
|
|
$
|
46,664
|
|
|
$
|
46,307
|
|
Earnings per common
share
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.44
|
|
|
$
|
0.37
|
|
|
$
|
0.38
|
|
|
$
|
0.80
|
|
|
$
|
0.80
|
|
Diluted
|
|
$
|
0.44
|
|
|
$
|
0.37
|
|
|
$
|
0.38
|
|
|
$
|
0.80
|
|
|
$
|
0.80
|
|
Dividends paid per
common share
|
|
$
|
0.37
|
|
|
$
|
0.38
|
|
|
$
|
0.34
|
|
|
$
|
0.75
|
|
|
$
|
0.64
|
|
Weighted average
number of common shares outstanding
|
|
57,185
|
|
|
57,114
|
|
|
57,055
|
|
|
57,149
|
|
|
56,999
|
|
Weighted average
number of diluted common shares outstanding
|
|
57,195
|
|
|
57,125
|
|
|
57,069
|
|
|
57,160
|
|
|
57,012
|
|
|
(1) Reclassified to
conform to the current period's presentation. Reclassifications
consisted of disaggregating fee revenue previously presented in
'Service charges and other fees' and certain revenue previously
presented in 'Other' into the presentation above. The Company made
these reclassifications to provide additional information about its
sources of noninterest income. There was no change to total
noninterest income as previously reported as a result of these
reclassifications.
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
|
|
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
(in
thousands)
|
ASSETS
|
|
|
Cash and due from
banks
|
|
|
|
|
|
|
$
|
167,172
|
|
|
$
|
150,683
|
|
|
$
|
166,929
|
|
Interest-earning
deposits with banks
|
|
|
|
|
|
|
11,216
|
|
|
38,248
|
|
|
8,373
|
|
Total cash and cash
equivalents
|
|
|
|
|
|
|
178,388
|
|
|
188,931
|
|
|
175,302
|
|
Securities available
for sale at fair value (amortized cost of $2,237,264, $2,156,999
and $2,157,610, respectively)
|
|
2,279,552
|
|
|
2,186,166
|
|
|
2,157,694
|
|
Federal Home Loan
Bank stock at cost
|
|
|
|
|
|
|
18,161
|
|
|
10,241
|
|
|
12,722
|
|
Loans held for
sale
|
|
|
|
|
|
|
7,649
|
|
|
3,681
|
|
|
4,509
|
|
Loans, net of
unearned income of ($37,221), ($39,410) and ($42,373),
respectively
|
|
6,107,143
|
|
|
5,877,283
|
|
|
5,815,027
|
|
Less: allowance for
loan and lease losses
|
|
|
|
|
|
|
69,304
|
|
|
69,264
|
|
|
68,172
|
|
Loans, net
|
|
|
|
|
|
|
6,037,839
|
|
|
5,808,019
|
|
|
5,746,855
|
|
FDIC loss-sharing
asset
|
|
|
|
|
|
|
4,266
|
|
|
5,954
|
|
|
6,568
|
|
Interest
receivable
|
|
|
|
|
|
|
29,738
|
|
|
29,304
|
|
|
27,877
|
|
Premises and
equipment, net
|
|
|
|
|
|
|
156,446
|
|
|
158,101
|
|
|
164,239
|
|
Other real estate
owned
|
|
|
|
|
|
|
10,613
|
|
|
12,427
|
|
|
13,738
|
|
Goodwill
|
|
|
|
|
|
|
382,762
|
|
|
382,762
|
|
|
382,762
|
|
Other intangible
assets, net
|
|
|
|
|
|
|
20,511
|
|
|
21,994
|
|
|
23,577
|
|
Other
assets
|
|
|
|
|
|
|
227,726
|
|
|
228,352
|
|
|
235,854
|
|
Total
assets
|
|
|
|
|
|
|
$
|
9,353,651
|
|
|
$
|
9,035,932
|
|
|
$
|
8,951,697
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
|
|
|
|
|
$
|
3,652,951
|
|
|
$
|
3,553,468
|
|
|
$
|
3,507,358
|
|
Interest-bearing
|
|
|
|
|
|
|
4,020,262
|
|
|
4,043,481
|
|
|
3,931,471
|
|
Total
deposits
|
|
|
|
|
|
|
7,673,213
|
|
|
7,596,949
|
|
|
7,438,829
|
|
Federal Home Loan
Bank advances
|
|
|
|
|
|
|
204,512
|
|
|
6,521
|
|
|
68,531
|
|
Securities sold under
agreements to repurchase
|
|
89,218
|
|
|
73,839
|
|
|
99,699
|
|
Other
liabilities
|
|
|
|
|
|
|
112,229
|
|
|
97,835
|
|
|
102,510
|
|
Total
liabilities
|
|
|
|
|
|
|
8,079,172
|
|
|
7,775,144
|
|
|
7,709,569
|
|
Commitments and
contingent liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
|
|
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
|
|
Preferred stock (no
par value)
|
(in
thousands)
|
|
|
|
|
|
|
Authorized
shares
|
2,000
|
|
|
2,000
|
|
|
2,000
|
|
|
|
|
|
|
|
Issued and
outstanding
|
9
|
|
|
9
|
|
|
9
|
|
|
2,217
|
|
|
2,217
|
|
|
2,217
|
|
Common stock (no par
value)
|
|
|
|
|
|
|
|
|
|
|
|
Authorized
shares
|
115,000
|
|
|
115,000
|
|
|
115,000
|
|
|
|
|
|
|
|
Issued and
outstanding
|
58,025
|
|
|
58,008
|
|
|
57,724
|
|
|
992,343
|
|
|
991,026
|
|
|
990,281
|
|
Retained
earnings
|
|
|
|
|
|
|
259,108
|
|
|
255,202
|
|
|
255,925
|
|
Accumulated other
comprehensive income (loss)
|
|
|
|
|
|
|
20,811
|
|
|
12,343
|
|
|
(6,295)
|
|
Total shareholders'
equity
|
|
|
|
|
|
|
1,274,479
|
|
|
1,260,788
|
|
|
1,242,128
|
|
Total liabilities and
shareholders' equity
|
|
|
|
|
|
|
$
|
9,353,651
|
|
|
$
|
9,035,932
|
|
|
$
|
8,951,697
|
|
AVERAGE
BALANCES AND RATES
|
|
|
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
June 30,
2016
|
|
June 30,
2015
|
|
|
Average
Balances
|
|
Interest
Earned / Paid
|
|
Average
Rate
|
|
Average
Balances
|
|
Interest
Earned / Paid
|
|
Average
Rate
|
|
|
(dollars in
thousands)
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
net (1)(2)
|
|
$
|
5,999,428
|
|
|
$
|
72,952
|
|
|
4.86
|
%
|
|
$
|
5,542,489
|
|
|
$
|
72,410
|
|
|
5.23
|
%
|
Taxable
securities
|
|
1,801,195
|
|
|
8,829
|
|
|
1.96
|
%
|
|
1,516,740
|
|
|
7,260
|
|
|
1.91
|
%
|
Tax exempt securities
(2)
|
|
460,817
|
|
|
4,300
|
|
|
3.73
|
%
|
|
460,219
|
|
|
4,632
|
|
|
4.03
|
%
|
Interest-earning
deposits with banks
|
|
23,743
|
|
|
28
|
|
|
0.47
|
%
|
|
40,840
|
|
|
26
|
|
|
0.25
|
%
|
Total
interest-earning assets
|
|
8,285,183
|
|
|
$
|
86,109
|
|
|
4.16
|
%
|
|
7,560,288
|
|
|
$
|
84,328
|
|
|
4.46
|
%
|
Other earning
assets
|
|
154,843
|
|
|
|
|
|
|
148,573
|
|
|
|
|
|
Noninterest-earning
assets
|
|
790,765
|
|
|
|
|
|
|
823,312
|
|
|
|
|
|
Total
assets
|
|
$
|
9,230,791
|
|
|
|
|
|
|
$
|
8,532,173
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
Certificates of
deposit
|
|
$
|
428,279
|
|
|
$
|
140
|
|
|
0.13
|
%
|
|
$
|
489,984
|
|
|
$
|
236
|
|
|
0.19
|
%
|
Savings
accounts
|
|
692,179
|
|
|
18
|
|
|
0.01
|
%
|
|
626,930
|
|
|
17
|
|
|
0.01
|
%
|
Interest-bearing
demand
|
|
949,669
|
|
|
183
|
|
|
0.08
|
%
|
|
883,366
|
|
|
155
|
|
|
0.07
|
%
|
Money market
accounts
|
|
1,956,257
|
|
|
446
|
|
|
0.09
|
%
|
|
1,752,821
|
|
|
332
|
|
|
0.08
|
%
|
Total
interest-bearing deposits
|
|
4,026,384
|
|
|
787
|
|
|
0.08
|
%
|
|
3,753,101
|
|
|
740
|
|
|
0.08
|
%
|
Federal Home Loan
Bank advances
|
|
161,637
|
|
|
241
|
|
|
0.60
|
%
|
|
121,828
|
|
|
154
|
|
|
0.51
|
%
|
Other
borrowings
|
|
76,771
|
|
|
135
|
|
|
0.70
|
%
|
|
86,084
|
|
|
136
|
|
|
0.63
|
%
|
Total
interest-bearing liabilities
|
|
4,264,792
|
|
|
$
|
1,163
|
|
|
0.11
|
%
|
|
3,961,013
|
|
|
$
|
1,030
|
|
|
0.10
|
%
|
Noninterest-bearing
deposits
|
|
3,595,882
|
|
|
|
|
|
|
3,225,371
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
102,447
|
|
|
|
|
|
|
97,902
|
|
|
|
|
|
Shareholders'
equity
|
|
1,267,670
|
|
|
|
|
|
|
1,247,887
|
|
|
|
|
|
Total
liabilities & shareholders' equity
|
|
$
|
9,230,791
|
|
|
|
|
|
|
$
|
8,532,173
|
|
|
|
|
|
Net interest income
(tax equivalent)
|
|
$
|
84,946
|
|
|
|
|
|
|
$
|
83,298
|
|
|
|
Net interest margin
(tax equivalent)
|
|
4.10
|
%
|
|
|
|
|
|
4.41
|
%
|
|
|
(1)
|
Nonaccrual
loans have been included in the tables as loans carrying a zero
yield. Amortized net deferred loan fees and net unearned discounts
on acquired loans were included in the interest income
calculations. The amortization of net deferred loan fees was $1.2
million and $1.5 million for the three month periods ended
June 30, 2016 and June 30, 2015, respectively. The
incremental accretion on acquired loans was $4.4 million and $7.3
million for the three months ended June 30, 2016 and 2015,
respectively.
|
(2)
|
Tax-exempt income is
calculated on a tax equivalent basis. The tax equivalent yield
adjustment to interest earned on loans was $1.3 million and $666
thousand for the three months ended June 30, 2016 and 2015,
respectively. The tax equivalent yield adjustment to interest
earned on tax exempt securities was $1.5 million and $1.6 million
for the three months ended June 30, 2016 and 2015,
respectively.
|
AVERAGE
BALANCES AND RATES
|
|
|
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
June 30,
2016
|
|
March 31,
2016
|
|
|
Average
Balances
|
|
Interest
Earned / Paid
|
|
Average
Rate
|
|
Average
Balances
|
|
Interest
Earned / Paid
|
|
Average
Rate
|
|
|
(dollars in
thousands)
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
net (1)(2)
|
|
$
|
5,999,428
|
|
|
$
|
72,952
|
|
|
4.86
|
%
|
|
$
|
5,827,440
|
|
|
$
|
71,298
|
|
|
4.89
|
%
|
Taxable
securities
|
|
1,801,195
|
|
|
8,829
|
|
|
1.96
|
%
|
|
1,689,289
|
|
|
8,017
|
|
|
1.90
|
%
|
Tax exempt securities
(2)
|
|
460,817
|
|
|
4,300
|
|
|
3.73
|
%
|
|
458,168
|
|
|
4,312
|
|
|
3.76
|
%
|
Interest-earning
deposits with banks
|
|
23,743
|
|
|
28
|
|
|
0.47
|
%
|
|
31,048
|
|
|
38
|
|
|
0.49
|
%
|
Total
interest-earning assets
|
|
8,285,183
|
|
|
$
|
86,109
|
|
|
4.16
|
%
|
|
8,005,945
|
|
|
$
|
83,665
|
|
|
4.18
|
%
|
Other earning
assets
|
|
154,843
|
|
|
|
|
|
|
154,336
|
|
|
|
|
|
Noninterest-earning
assets
|
|
790,765
|
|
|
|
|
|
|
788,931
|
|
|
|
|
|
Total
assets
|
|
$
|
9,230,791
|
|
|
|
|
|
|
$
|
8,949,212
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
Certificates of
deposit
|
|
$
|
428,279
|
|
|
$
|
140
|
|
|
0.13
|
%
|
|
$
|
448,915
|
|
|
$
|
144
|
|
|
0.13
|
%
|
Savings
accounts
|
|
692,179
|
|
|
18
|
|
|
0.01
|
%
|
|
675,876
|
|
|
17
|
|
|
0.01
|
%
|
Interest-bearing
demand
|
|
949,669
|
|
|
183
|
|
|
0.08
|
%
|
|
927,948
|
|
|
169
|
|
|
0.07
|
%
|
Money market
accounts
|
|
1,956,257
|
|
|
446
|
|
|
0.09
|
%
|
|
1,930,575
|
|
|
412
|
|
|
0.09
|
%
|
Total
interest-bearing deposits
|
|
4,026,384
|
|
|
787
|
|
|
0.08
|
%
|
|
3,983,314
|
|
|
742
|
|
|
0.07
|
%
|
Federal Home Loan
Bank advances
|
|
161,637
|
|
|
241
|
|
|
0.60
|
%
|
|
50,569
|
|
|
124
|
|
|
0.98
|
%
|
Other
borrowings
|
|
76,771
|
|
|
135
|
|
|
0.70
|
%
|
|
90,699
|
|
|
138
|
|
|
0.61
|
%
|
Total
interest-bearing liabilities
|
|
4,264,792
|
|
|
$
|
1,163
|
|
|
0.11
|
%
|
|
4,124,582
|
|
|
$
|
1,004
|
|
|
0.10
|
%
|
Noninterest-bearing
deposits
|
|
3,595,882
|
|
|
|
|
|
|
3,462,379
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
102,447
|
|
|
|
|
|
|
103,840
|
|
|
|
|
|
Shareholders'
equity
|
|
1,267,670
|
|
|
|
|
|
|
1,258,411
|
|
|
|
|
|
Total
liabilities & shareholders' equity
|
|
$
|
9,230,791
|
|
|
|
|
|
|
$
|
8,949,212
|
|
|
|
|
|
Net interest income
(tax equivalent)
|
|
$
|
84,946
|
|
|
|
|
|
|
$
|
82,661
|
|
|
|
Net interest margin
(tax equivalent)
|
|
4.10
|
%
|
|
|
|
|
|
4.13
|
%
|
|
|
(1)
|
Nonaccrual loans have
been included in the tables as loans carrying a zero yield.
Amortized net deferred loan fees and net unearned discounts on
acquired loans were included in the interest income calculations.
The amortization of net deferred loan fees was $1.2 million and
$1.1 million for the three month periods ended June 30, 2016
and March 31, 2016. The incremental accretion on acquired
loans was $4.4 million and $4.7 million for the three months ended
June 30, 2016 and March 31, 2016,
respectively.
|
(2)
|
Tax-exempt income is
calculated on a tax equivalent basis. The tax equivalent yield
adjustment to interest earned on loans was $1.3 million and $982
thousand for the three months ended June 30, 2016 and
March 31, 2016, respectively. The tax equivalent yield
adjustment to interest earned on tax exempt securities was $1.5
million for both three month periods ended June 30, 2016 and
March 31, 2016.
|
AVERAGE
BALANCES AND RATES
|
|
|
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2016
|
|
2015
|
|
|
Average
Balances
|
|
Interest
Earned / Paid
|
|
Average
Rate
|
|
Average
Balances
|
|
Interest
Earned / Paid
|
|
Average
Rate
|
|
|
(dollars in
thousands)
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net
(1)(2)
|
|
$
|
5,913,434
|
|
|
$
|
144,250
|
|
|
4.88
|
%
|
|
$
|
5,479,067
|
|
|
$
|
143,897
|
|
|
5.25
|
%
|
Taxable
securities
|
|
1,745,242
|
|
|
16,846
|
|
|
1.93
|
%
|
|
1,562,776
|
|
|
14,786
|
|
|
1.89
|
%
|
Tax exempt securities
(2)
|
|
459,492
|
|
|
8,612
|
|
|
3.75
|
%
|
|
459,853
|
|
|
9,311
|
|
|
4.05
|
%
|
Interest-earning
deposits with banks
|
|
27,396
|
|
|
66
|
|
|
0.48
|
%
|
|
43,054
|
|
|
53
|
|
|
0.25
|
%
|
Total
interest-earning assets
|
|
8,145,564
|
|
|
$
|
169,774
|
|
|
4.17
|
%
|
|
7,544,750
|
|
|
$
|
168,047
|
|
|
4.45
|
%
|
Other earning
assets
|
|
154,589
|
|
|
|
|
|
|
147,321
|
|
|
|
|
|
Noninterest-earning
assets
|
|
789,848
|
|
|
|
|
|
|
826,976
|
|
|
|
|
|
Total
assets
|
|
$
|
9,090,001
|
|
|
|
|
|
|
$
|
8,519,047
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
Certificates of
deposit
|
|
$
|
438,597
|
|
|
$
|
284
|
|
|
0.13
|
%
|
|
$
|
496,101
|
|
|
$
|
476
|
|
|
0.19
|
%
|
Savings
accounts
|
|
684,027
|
|
|
35
|
|
|
0.01
|
%
|
|
626,036
|
|
|
36
|
|
|
0.01
|
%
|
Interest-bearing
demand
|
|
938,809
|
|
|
352
|
|
|
0.07
|
%
|
|
1,047,844
|
|
|
293
|
|
|
0.06
|
%
|
Money market
accounts
|
|
1,943,416
|
|
|
858
|
|
|
0.09
|
%
|
|
1,784,198
|
|
|
683
|
|
|
0.08
|
%
|
Total
interest-bearing deposits
|
|
4,004,849
|
|
|
1,529
|
|
|
0.08
|
%
|
|
3,954,179
|
|
|
1,488
|
|
|
0.08
|
%
|
Federal Home Loan
Bank advances
|
|
106,103
|
|
|
365
|
|
|
0.69
|
%
|
|
125,812
|
|
|
313
|
|
|
0.50
|
%
|
Other
borrowings
|
|
83,735
|
|
|
273
|
|
|
0.65
|
%
|
|
97,066
|
|
|
282
|
|
|
0.58
|
%
|
Total
interest-bearing liabilities
|
|
4,194,687
|
|
|
$
|
2,167
|
|
|
0.10
|
%
|
|
4,177,057
|
|
|
$
|
2,083
|
|
|
0.10
|
%
|
Noninterest-bearing
deposits
|
|
3,529,131
|
|
|
|
|
|
|
2,999,075
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
103,143
|
|
|
|
|
|
|
98,526
|
|
|
|
|
|
Shareholders'
equity
|
|
1,263,040
|
|
|
|
|
|
|
1,244,389
|
|
|
|
|
|
Total
liabilities & shareholders' equity
|
|
$
|
9,090,001
|
|
|
|
|
|
|
$
|
8,519,047
|
|
|
|
|
|
Net interest income
(tax equivalent)
|
|
$
|
167,607
|
|
|
|
|
|
|
$
|
165,964
|
|
|
|
Net interest margin
(tax equivalent)
|
|
4.12
|
%
|
|
|
|
|
|
4.40
|
%
|
|
|
(1)
|
Nonaccrual loans have
been included in the table as loans carrying a zero yield.
Amortized net deferred loan fees and net unearned discounts on
acquired loans were included in the interest income calculations.
The amortization of net deferred loan fees was $2.3 million and
$2.6 million for the six months ended June 30, 2016 and 2015,
respectively. The incremental accretion on acquired loans was $9.1
million and $14.8 million for the six months ended June 30,
2016 and 2015, respectively.
|
(2)
|
Tax-exempt income is
calculated on a tax equivalent basis. The tax equivalent yield
adjustment to interest earned on loans was $2.3 million and $1.3
million for the six months ended June 30, 2016 and 2015,
respectively. The tax equivalent yield adjustment to interest
earned on tax exempt securities was $3.0 million and $3.3 million
for the six months ended June 30, 2016 and 2015,
respectively.
|
Non-GAAP Financial Measures
The Company considers its operating net interest margin and
operating efficiency ratios to be important measurements as they
more closely reflect the ongoing operating performance of the
Company. Despite the importance of the operating net interest
margin and operating efficiency ratio to the Company, there are no
standardized definitions for them and, as a result, the Company's
calculations may not be comparable with other organizations. The
Company encourages readers to consider its consolidated financial
statements in their entirety and not to rely on any single
financial measure.
The following tables reconcile the Company's calculation of the
operating net interest margin and operating efficiency ratio:
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating net
interest margin non-GAAP reconciliation:
|
|
(dollars in
thousands)
|
Net interest income
(tax equivalent) (1)
|
|
$
|
84,946
|
|
|
$
|
82,661
|
|
|
$
|
83,298
|
|
|
$
|
167,607
|
|
|
$
|
165,964
|
|
Adjustments to arrive
at operating net interest income (tax equivalent):
|
|
|
|
|
|
|
|
|
|
|
Incremental accretion
income on FDIC purchased credit impaired loans
|
|
(1,300)
|
|
|
(1,657)
|
|
|
(2,367)
|
|
|
(2,957)
|
|
|
(4,814)
|
|
Incremental accretion
income on other FDIC acquired loans (2)
|
|
—
|
|
|
—
|
|
|
(15)
|
|
|
—
|
|
|
(132)
|
|
Incremental accretion
income on other acquired loans
|
|
(3,074)
|
|
|
(3,073)
|
|
|
(4,889)
|
|
|
(6,147)
|
|
|
(9,823)
|
|
Premium amortization
on acquired securities
|
|
2,075
|
|
|
2,324
|
|
|
2,706
|
|
|
4,399
|
|
|
5,567
|
|
Interest reversals on
nonaccrual loans
|
|
107
|
|
|
453
|
|
|
156
|
|
|
560
|
|
|
806
|
|
Operating net
interest income (tax equivalent) (1)
|
|
$
|
82,754
|
|
|
$
|
80,708
|
|
|
$
|
78,889
|
|
|
$
|
163,462
|
|
|
$
|
157,568
|
|
Average interest
earning assets
|
|
$
|
8,285,183
|
|
|
$
|
8,005,945
|
|
|
$
|
7,560,288
|
|
|
$
|
8,145,564
|
|
|
$
|
7,544,750
|
|
Net interest margin
(tax equivalent) (1)
|
|
4.10
|
%
|
|
4.13
|
%
|
|
4.41
|
%
|
|
4.12
|
%
|
|
4.40
|
%
|
Operating net
interest margin (tax equivalent) (1)
|
|
4.00
|
%
|
|
4.03
|
%
|
|
4.17
|
%
|
|
4.01
|
%
|
|
4.18
|
%
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating
efficiency ratio non-GAAP reconciliation:
|
|
(dollars in
thousands)
|
Noninterest expense
(numerator A)
|
|
$
|
63,790
|
|
|
$
|
65,074
|
|
|
$
|
68,471
|
|
|
$
|
128,864
|
|
|
$
|
135,205
|
|
Adjustments to arrive
at operating noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
expenses
|
|
—
|
|
|
(2,436)
|
|
|
(5,643)
|
|
|
(2,436)
|
|
|
(8,617)
|
|
Net benefit (cost) of
operation of OREO and OPPO
|
|
(84)
|
|
|
(102)
|
|
|
561
|
|
|
(186)
|
|
|
1,802
|
|
FDIC clawback
liability expense
|
|
(70)
|
|
|
(209)
|
|
|
30
|
|
|
(279)
|
|
|
7
|
|
Loss on asset
disposals
|
|
(7)
|
|
|
(160)
|
|
|
(10)
|
|
|
(167)
|
|
|
(106)
|
|
State of Washington
Business and Occupation ("B&O") taxes
|
|
(1,204)
|
|
|
(1,171)
|
|
|
(1,327)
|
|
|
(2,375)
|
|
|
(2,456)
|
|
Operating noninterest
expense (numerator B)
|
|
$
|
62,425
|
|
|
$
|
60,996
|
|
|
$
|
62,082
|
|
|
$
|
123,421
|
|
|
$
|
125,835
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(tax equivalent) (1)
|
|
$
|
84,946
|
|
|
$
|
82,661
|
|
|
$
|
83,298
|
|
|
$
|
167,607
|
|
|
$
|
165,964
|
|
Noninterest
income
|
|
21,940
|
|
|
20,646
|
|
|
21,462
|
|
|
42,586
|
|
|
44,229
|
|
Bank owned life
insurance tax equivalent adjustment
|
|
685
|
|
|
600
|
|
|
649
|
|
|
1,285
|
|
|
1,230
|
|
Total revenue (tax
equivalent) (denominator A)
|
|
$
|
107,571
|
|
|
$
|
103,907
|
|
|
$
|
105,409
|
|
|
$
|
211,478
|
|
|
$
|
211,423
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating net
interest income (tax equivalent) (1)
|
|
$
|
82,754
|
|
|
$
|
80,708
|
|
|
$
|
78,889
|
|
|
$
|
163,462
|
|
|
$
|
157,568
|
|
Adjustments to arrive
at operating noninterest income (tax equivalent):
|
|
|
|
|
|
|
|
|
|
|
Investment securities
gains, net
|
|
(229)
|
|
|
(373)
|
|
|
(343)
|
|
|
(602)
|
|
|
(1,064)
|
|
Gain on asset
disposals
|
|
(2)
|
|
|
(54)
|
|
|
(5)
|
|
|
(56)
|
|
|
(5)
|
|
Change in FDIC
loss-sharing asset
|
|
990
|
|
|
1,103
|
|
|
1,494
|
|
|
2,093
|
|
|
1,344
|
|
Operating noninterest
income (tax equivalent)
|
|
23,384
|
|
|
21,922
|
|
|
23,257
|
|
|
45,306
|
|
|
45,734
|
|
Total operating
revenue (tax equivalent) (denominator B)
|
|
$
|
106,138
|
|
|
$
|
102,630
|
|
|
$
|
102,146
|
|
|
$
|
208,768
|
|
|
$
|
203,302
|
|
Efficiency ratio (tax
equivalent) (numerator A/denominator A)
|
|
59.30
|
%
|
|
62.63
|
%
|
|
64.96
|
%
|
|
60.93
|
%
|
|
63.95
|
%
|
Operating efficiency
ratio (tax equivalent) (numerator B/denominator B)
|
|
58.81
|
%
|
|
59.43
|
%
|
|
60.78
|
%
|
|
59.12
|
%
|
|
61.90
|
%
|
|
(1) Tax-exempt
interest income has been adjusted to a tax equivalent basis. The
amount of such adjustment was an addition to net interest income of
$2.8 million, $2.5 million and $2.3 million for the three
months ended June 30, 2016, March 31, 2016
and June 30, 2015, respectively; and $5.3 million and
$4.6 million for the six months ended June 30, 2016 and
June 30, 2015, respectively.
|
(2) For 2016,
incremental accretion income on other FDIC acquired loans is no
longer considered significant and will no longer be tracked for
these non-GAAP financial measures.
|
Contacts:
|
Melanie J.
Dressel,
|
|
President
and
|
|
Chief Executive
Officer
|
|
(253)
305-1911
|
|
|
|
Clint E.
Stein,
|
|
Executive Vice
President
|
|
and Chief Financial
Officer
|
|
(253)
593-8304
|
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SOURCE Columbia Banking System, Inc.