TACOMA, Wash., April 27,
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 first quarter 2016 earnings, "Our
reported earnings were muted by the last of the Intermountain
acquisition expense, increased provision expense and lower
accretion income. In the near term, the current rate environment is
challenging for organic loan growth to fully offset the runoff in
accretion income. Aside from our reported earnings, we had some
very positive outcomes in the quarter. These include the highest
first quarter loan production we have ever achieved, continued
growth during what is historically our slowest quarter for deposit
gathering, and meaningful expense control." Ms. Dressel continued,
"Despite the uptick in provision expense for the quarter, we remain
confident in the overall quality of our loan portfolio."
Balance Sheet
Total assets at March 31, 2016 were $9.04 billion, an increase of $84.2 million from December 31, 2015 as
deposit account net inflows were used to fund loan growth and
purchase investment securities. Loan growth of $62.3 million during the quarter was driven by
strong loan originations of $254
million. Loan production was diversified across the
portfolio sectors but centered in our commercial business
sector. Securities were $2.20 billion
at March 31, 2016, an increase of $26.0
million, or 1% from $2.17
billion at December 31, 2015. Total deposits at
March 31, 2016 were $7.60
billion, an increase of $158.1
million from $7.44 billion at
December 31, 2015. Core deposits comprised 96% of total
deposits and were $7.29 billion at
March 31, 2016, an increase of $157.2
million from December 31, 2015. The average rate on
interest-bearing deposits and total deposits for the quarter was
0.07% and 0.04%, respectively, remaining unchanged from the fourth
quarter of 2015.
Income Statement
Net Interest Income
Net interest income for the first quarter of 2016 was
$80.2 million, a decrease of
$1.6 million and $194 thousand from the linked and prior year
first quarter, respectively. The linked quarter decrease was the
result of one less day of interest accruals in the current quarter
and a decline in incremental accretion income on loans, partially
offset by higher loan volumes. The decrease from the prior year
period is attributed to lower incremental accretion income, which
in the current quarter is $2.8
million less than the first quarter of 2015. For additional
information regarding net interest income, see the "Average
Balances and Rates" table.
Noninterest Income
Noninterest income was $20.6
million for the first quarter of 2016, a decrease of
$4.1 million compared to $24.7 million for the fourth quarter of 2015. The
linked quarter decrease was primarily due to the $3.1 million accrual adjustment recorded during
the fourth quarter of 2015 through other noninterest income related
to the mortgage repurchase liability resulting from our acquisition
of West Coast Bank. Additionally, income from interest rate
contracts associated with commercial loan products was $428 thousand lower than the linked quarter.
Compared to the first quarter of 2015, noninterest income
declined by $2.1 million primarily
due to the change in FDIC loss-sharing asset, which accounted for
$1.3 million of the decrease. In
addition, other noninterest income was lower in the current quarter
due to a $402 thousand decrease
related to gains on disposals of loans.
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
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
2015
|
|
|
(in
thousands)
|
Adjustments reflected
in income
|
|
|
|
|
|
|
Amortization,
net
|
|
(1,332)
|
|
|
(1,098)
|
|
|
(2,294)
|
|
Loan
impairment
|
|
147
|
|
|
855
|
|
|
1,532
|
|
Sale of other real
estate
|
|
144
|
|
|
(484)
|
|
|
(420)
|
|
Write-downs of other
real estate
|
|
18
|
|
|
10
|
|
|
1,071
|
|
Other
|
|
(80)
|
|
|
(314)
|
|
|
261
|
|
Change in FDIC
loss-sharing asset
|
|
$
|
(1,103)
|
|
|
$
|
(1,031)
|
|
|
$
|
150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expense
Total noninterest expense for the first quarter of 2016 was
$65.1 million, a decrease of
$1.8 million compared to $66.9 million for the fourth quarter of 2015.
After removing the effect of the acquisition-related expenses,
which were predominantly related to occupancy in the current
quarter, noninterest expense for the current quarter was
$2.4 million lower than the fourth
quarter of 2015 on the same basis. The decrease was due in part to
$852 thousand higher occupancy costs
recorded in the prior quarter related to the write-down of land
pending sale, which was sold during the current quarter. Also
contributing to the decrease was lower expense related to the FDIC
clawback liability of $209 thousand
during the current quarter compared to $813
thousand in the prior quarter. The linked quarter reduction
in legal and professional expense was principally driven by higher
fees incurred in the fourth quarter of 2015 for regulatory exams
and filings.
Compared to the first quarter of 2015, noninterest expense
decreased $1.7 million, or 2%, from
$66.7 million. This decrease was due
to lower compensation and benefits and was partially offset by
higher net OREO expenses. OREO expenses were a net cost of
$104 thousand in the current quarter
but were a net benefit of $1.2
million in the first quarter of 2015.
Net Interest Margin ("NIM")
Columbia's net interest margin
(tax equivalent) for the first quarter of 2016 was 4.13%, a decline
of 12 and 26 basis points from the linked and prior year quarters,
respectively. The decline was due to both lower incremental
accretion on acquired loans and lower yielding originated loans.
Incremental accretion income was $4.7
million in the current period compared to $7.5 million in the prior year quarter.
Columbia's operating net interest
margin (tax equivalent)(1) was 4.03% for the first
quarter of 2016, a decrease of 6 basis points from 4.09% for the
fourth quarter of 2015 and down 15 basis points compared to 4.18%
for the first quarter of 2015 as a result of the continuing low
interest rate environment.
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
|
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
|
(dollars in
thousands)
|
Incremental accretion
income due to:
|
|
|
|
|
|
|
|
|
|
|
FDIC purchased credit
impaired loans
|
|
$
|
1,657
|
|
|
$
|
2,200
|
|
|
$
|
2,082
|
|
|
$
|
2,367
|
|
|
$
|
2,447
|
|
Other FDIC acquired
loans (2)
|
|
—
|
|
|
68
|
|
|
34
|
|
|
15
|
|
|
117
|
|
Other acquired
loans
|
|
3,073
|
|
|
3,746
|
|
|
4,293
|
|
|
4,889
|
|
|
4,934
|
|
Incremental accretion
income
|
|
$
|
4,730
|
|
|
$
|
6,014
|
|
|
$
|
6,409
|
|
|
$
|
7,271
|
|
|
$
|
7,498
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(tax equivalent)
|
|
4.13
|
%
|
|
4.25
|
%
|
|
4.37
|
%
|
|
4.41
|
%
|
|
4.39
|
%
|
Operating net
interest margin (tax equivalent) (1)
|
|
4.03
|
%
|
|
4.09
|
%
|
|
4.18
|
%
|
|
4.17
|
%
|
|
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 March 31, 2016, nonperforming assets to total assets
were 0.55% compared to 0.39% at December 31, 2015. Total
nonperforming assets increased $14.1
million due to a $15.4 million
increase in nonaccrual loans, partially offset by a decrease in
other real estate owned.
The following table sets forth information regarding nonaccrual
loans and total nonperforming assets:
|
|
March 31,
2016
|
|
December 31,
2015
|
|
|
(in
thousands)
|
Nonaccrual
loans:
|
|
|
|
|
Commercial
business
|
|
$
|
22,559
|
|
|
$
|
9,437
|
|
Real
estate:
|
|
|
|
|
One-to-four family
residential
|
|
730
|
|
|
820
|
|
Commercial and
multifamily residential
|
|
8,117
|
|
|
9,513
|
|
Total real
estate
|
|
8,847
|
|
|
10,333
|
|
Real estate
construction:
|
|
|
|
|
One-to-four family
residential
|
|
768
|
|
|
928
|
|
Total real estate
construction
|
|
768
|
|
|
928
|
|
Consumer
|
|
4,717
|
|
|
766
|
|
Total nonaccrual
loans
|
|
36,891
|
|
|
21,464
|
|
Other real estate
owned and other personal property owned
|
|
12,427
|
|
|
13,738
|
|
Total nonperforming
assets
|
|
$
|
49,318
|
|
|
$
|
35,202
|
|
The following table provides an analysis of the Company's
allowance for loan and lease losses:
|
|
Three Months
Ended
|
|
|
March 31,
2016
|
|
December 31,
2015
|
|
March 31,
2015
|
|
|
(in
thousands)
|
Beginning
balance
|
|
$
|
68,172
|
|
|
$
|
69,049
|
|
|
$
|
69,569
|
|
Charge-offs:
|
|
|
|
|
|
|
Commercial
business
|
|
(3,773)
|
|
|
(2,184)
|
|
|
(1,426)
|
|
One-to-four family
residential real estate
|
|
—
|
|
|
(79)
|
|
|
(8)
|
|
Commercial and
multifamily residential real estate
|
|
—
|
|
|
(264)
|
|
|
—
|
|
Consumer
|
|
(266)
|
|
|
(545)
|
|
|
(891)
|
|
Purchased credit
impaired
|
|
(2,866)
|
|
|
(3,680)
|
|
|
(4,100)
|
|
Total
charge-offs
|
|
(6,905)
|
|
|
(6,752)
|
|
|
(6,425)
|
|
Recoveries:
|
|
|
|
|
|
|
Commercial
business
|
|
662
|
|
|
886
|
|
|
618
|
|
One-to-four family
residential real estate
|
|
41
|
|
|
19
|
|
|
12
|
|
Commercial and
multifamily residential real estate
|
|
69
|
|
|
277
|
|
|
3,261
|
|
One-to-four family
residential real estate construction
|
|
254
|
|
|
52
|
|
|
28
|
|
Commercial and
multifamily residential real estate construction
|
|
1
|
|
|
1
|
|
|
3
|
|
Consumer
|
|
165
|
|
|
224
|
|
|
273
|
|
Purchased credit
impaired
|
|
1,551
|
|
|
2,067
|
|
|
1,686
|
|
Total
recoveries
|
|
2,743
|
|
|
3,526
|
|
|
5,881
|
|
Net
charge-offs
|
|
(4,162)
|
|
|
(3,226)
|
|
|
(544)
|
|
Provision for loan
and lease losses
|
|
5,254
|
|
|
2,349
|
|
|
1,209
|
|
Ending
balance
|
|
$
|
69,264
|
|
|
$
|
68,172
|
|
|
$
|
70,234
|
|
The allowance for loan losses to period end loans was 1.18% at
March 31, 2016 compared to 1.17% at December 31, 2015.
For the first quarter of 2016, Columbia recorded a net provision for loan and
lease losses of $5.3 million compared
to a net provision of $1.2 million
for the comparable quarter last year. The provision for loan and
lease losses recorded during the current quarter was due to net
charge-off activity, $3.5 million of
which stemmed from two commercial business loans, and organic loan
growth.
Andy McDonald, Columbia's Executive Vice President and Chief
Credit Officer, stated, "Our provision for the first quarter was
primarily driven by charge-offs which rose six basis points to 28
basis points on an annualized basis when compared to last quarter.
While not a big jump quarter over quarter, it nevertheless did have
an impact." Mr. McDonald continued, "We are still satisfied
with how our loan portfolio is behaving. Nonperforming assets
at 55 basis points and an impaired asset capital ratio of less than
16% continue to reflect strong performance."
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
|
|
|
March 31,
2016
|
|
December 31,
2015
|
|
March 31,
2015
|
|
|
(in
thousands)
|
Incremental accretion
income on FDIC purchased credit impaired loans
|
|
$
|
1,657
|
|
|
$
|
2,200
|
|
|
$
|
2,447
|
|
Incremental accretion
income on other FDIC acquired loans (1)
|
|
—
|
|
|
68
|
|
|
117
|
|
Provision for losses
on FDIC purchased credit impaired loans
|
|
(653)
|
|
|
(1,349)
|
|
|
(2,609)
|
|
Change in FDIC
loss-sharing asset
|
|
(1,103)
|
|
|
(1,031)
|
|
|
150
|
|
FDIC clawback
liability expense
|
|
(209)
|
|
|
(812)
|
|
|
(23)
|
|
Pre-tax earnings
impact
|
|
$
|
(308)
|
|
|
$
|
(924)
|
|
|
$
|
82
|
|
|
|
(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
March 31, 2016, the accretable yield on purchased credit
impaired loans was $56.6 million.
Accretable yield is subject to change based upon expected future
loan cash flows, which are remeasured by Columbia on a quarterly basis.
The $1.1 million change in the
FDIC loss-sharing asset in the current quarter reduced noninterest
income and consisted primarily of $1.3
million 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.
Organizational Update
Ms. Dressel commented, "We carefully evaluate opportunities to
improve our noninterest expense, particularly in light of continued
pressure from the prolonged low interest rate environment. Our
goal, as always, is to improve operating leverage while not
sacrificing our commitment to customer service. To that end, during
2015 we consolidated four branches and during the first quarter of
2016 we consolidated an additional branch as a part of this
objective."
Ms. Dressel continued, "Since our founding, we have maintained a
strong commitment to being actively engaged in the communities we
have the privilege to serve. We were very pleased to be
recently recognized by the Puget Sound Business Journal as
one of Washington State's 75 Top
Corporate Philanthropists for 2016."
Regular and Special Cash Dividends
A regular cash dividend of $0.19
per common share, and per common share equivalent for holders of
preferred stock, will be paid on May 25,
2016 to shareholders of record as of the close of business
on May 11, 2016. In addition, a
special cash dividend of $0.18 per
common share, and per common share equivalent for holders of
preferred stock, which will also be paid on May 25, 2016 to shareholders of record as of the
close of business on May 11,
2016.
Ms. Dressel commented, "We are pleased that our financial
performance allows us to increase our regular dividend from the
prior quarter by 6% to $0.19 per
share, and to pay a special cash dividend for the ninth consecutive
quarter. Along with our regular dividend, the special
dividend constitutes a payout ratio of 100% for the quarter and a
dividend yield of 4.67% based on our closing price on April 27, 2016."
Conference Call Information
Columbia's management will
discuss the first quarter 2016 results on a conference call
scheduled for Thursday, April 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 #22782081.
A conference call replay will be available from approximately
4:00 p.m. PDT on April 28, 2016 through 9:00 p.m. PDT on May 5,
2016. The conference call replay can be accessed by dialing
1-855-859-2056 and entering Conference ID code #22782081.
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
ninth consecutive year, the bank was named in 2015 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.
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
|
FINANCIAL
STATISTICS
|
|
|
|
Columbia
Banking System, Inc.
|
Three Months
Ended
|
Unaudited
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
2015
|
Earnings
|
|
(dollars in
thousands except per share amounts)
|
Net interest
income
|
|
$
|
80,170
|
|
|
$
|
81,819
|
|
|
$
|
80,364
|
|
Provision for loan
and lease losses
|
|
$
|
5,254
|
|
|
$
|
2,349
|
|
|
$
|
1,209
|
|
Noninterest
income
|
|
$
|
20,646
|
|
|
$
|
24,745
|
|
|
$
|
22,767
|
|
Noninterest
expense
|
|
$
|
65,074
|
|
|
$
|
66,877
|
|
|
$
|
66,734
|
|
Acquisition-related
expense (included in noninterest expense)
|
|
$
|
2,436
|
|
|
$
|
1,872
|
|
|
$
|
2,974
|
|
Net income
|
|
$
|
21,259
|
|
|
$
|
26,740
|
|
|
$
|
24,361
|
|
Per Common
Share
|
|
|
|
|
|
|
Earnings
(basic)
|
|
$
|
0.37
|
|
|
$
|
0.46
|
|
|
$
|
0.42
|
|
Earnings
(diluted)
|
|
$
|
0.37
|
|
|
$
|
0.46
|
|
|
$
|
0.42
|
|
Book value
|
|
$
|
21.70
|
|
|
$
|
21.48
|
|
|
$
|
21.53
|
|
Averages
|
|
|
|
|
|
|
Total
assets
|
|
$
|
8,949,212
|
|
|
$
|
8,905,743
|
|
|
$
|
8,505,776
|
|
Interest-earning
assets
|
|
$
|
8,005,945
|
|
|
$
|
7,937,308
|
|
|
$
|
7,529,040
|
|
Loans
|
|
$
|
5,827,440
|
|
|
$
|
5,762,048
|
|
|
$
|
5,414,942
|
|
Securities, including
Federal Home Loan Bank stock
|
|
$
|
2,147,457
|
|
|
$
|
2,136,703
|
|
|
$
|
2,068,806
|
|
Deposits
|
|
$
|
7,445,693
|
|
|
$
|
7,440,628
|
|
|
$
|
6,927,756
|
|
Interest-bearing
deposits
|
|
$
|
3,983,314
|
|
|
$
|
3,933,001
|
|
|
$
|
4,157,491
|
|
Interest-bearing
liabilities
|
|
$
|
4,124,582
|
|
|
$
|
4,031,214
|
|
|
$
|
4,395,502
|
|
Noninterest-bearing
deposits
|
|
$
|
3,462,379
|
|
|
$
|
3,507,627
|
|
|
$
|
2,770,265
|
|
Shareholders'
equity
|
|
$
|
1,258,411
|
|
|
$
|
1,259,117
|
|
|
$
|
1,240,853
|
|
Financial
Ratios
|
|
|
|
|
|
|
Return on average
assets
|
|
0.95
|
%
|
|
1.20
|
%
|
|
1.15
|
%
|
Return on average
common equity
|
|
6.76
|
%
|
|
8.50
|
%
|
|
7.86
|
%
|
Average equity to
average assets
|
|
14.06
|
%
|
|
14.14
|
%
|
|
14.59
|
%
|
Net interest margin
(tax equivalent)
|
|
4.13
|
%
|
|
4.25
|
%
|
|
4.39
|
%
|
Efficiency ratio (tax
equivalent) (1)
|
|
62.63
|
%
|
|
60.99
|
%
|
|
62.95
|
%
|
Operating efficiency
ratio (tax equivalent) (2)
|
|
59.43
|
%
|
|
60.53
|
%
|
|
63.02
|
%
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
Period
end
|
|
2016
|
|
2015
|
|
|
Total
assets
|
|
$
|
9,035,932
|
|
|
$
|
8,951,697
|
|
|
|
Loans, net of
unearned income
|
|
$
|
5,877,283
|
|
|
$
|
5,815,027
|
|
|
|
Allowance for loan
and lease losses
|
|
$
|
69,264
|
|
|
$
|
68,172
|
|
|
|
Securities, including
Federal Home Loan Bank stock
|
|
$
|
2,196,407
|
|
|
$
|
2,170,416
|
|
|
|
Deposits
|
|
$
|
7,596,949
|
|
|
$
|
7,438,829
|
|
|
|
Core
deposits
|
|
$
|
7,285,067
|
|
|
$
|
7,127,866
|
|
|
|
Shareholders'
equity
|
|
$
|
1,260,788
|
|
|
$
|
1,242,128
|
|
|
|
Nonperforming
assets
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
36,891
|
|
|
$
|
21,464
|
|
|
|
Other real estate
owned ("OREO") and other personal property owned
("OPPO")
|
|
12,427
|
|
|
13,738
|
|
|
|
Total
nonperforming assets
|
|
$
|
49,318
|
|
|
$
|
35,202
|
|
|
|
Nonperforming loans
to period-end loans
|
|
0.63
|
%
|
|
0.37
|
%
|
|
|
Nonperforming assets
to period-end assets
|
|
0.55
|
%
|
|
0.39
|
%
|
|
|
Allowance for loan
and lease losses to period-end loans
|
|
1.18
|
%
|
|
1.17
|
%
|
|
|
Net loan
charge-offs
|
|
$
|
4,162
|
|
(3)
|
$
|
3,226
|
|
(4)
|
|
|
|
(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 March 31, 2016.
|
|
|
(4)
|
For the three months
ended December 31, 2015.
|
QUARTERLY
FINANCIAL STATISTICS
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
Three Months
Ended
|
Unaudited
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
|
(dollars in
thousands except per share)
|
Earnings
|
|
|
Net interest
income
|
|
$
|
80,170
|
|
|
$
|
81,819
|
|
|
$
|
81,694
|
|
|
$
|
81,010
|
|
|
$
|
80,364
|
|
Provision for loan
and lease losses
|
|
$
|
5,254
|
|
|
$
|
2,349
|
|
|
$
|
2,831
|
|
|
$
|
2,202
|
|
|
$
|
1,209
|
|
Noninterest
income
|
|
$
|
20,646
|
|
|
$
|
24,745
|
|
|
$
|
22,499
|
|
|
$
|
21,462
|
|
|
$
|
22,767
|
|
Noninterest
expense
|
|
$
|
65,074
|
|
|
$
|
66,877
|
|
|
$
|
64,067
|
|
|
$
|
68,471
|
|
|
$
|
66,734
|
|
Acquisition-related
expense (included in noninterest expense)
|
|
$
|
2,436
|
|
|
$
|
1,872
|
|
|
$
|
428
|
|
|
$
|
5,643
|
|
|
$
|
2,974
|
|
Net income
|
|
$
|
21,259
|
|
|
$
|
26,740
|
|
|
$
|
25,780
|
|
|
$
|
21,946
|
|
|
$
|
24,361
|
|
Per Common
Share
|
|
|
|
|
|
|
|
|
|
|
Earnings
(basic)
|
|
$
|
0.37
|
|
|
$
|
0.46
|
|
|
$
|
0.45
|
|
|
$
|
0.38
|
|
|
$
|
0.42
|
|
Earnings
(diluted)
|
|
$
|
0.37
|
|
|
$
|
0.46
|
|
|
$
|
0.45
|
|
|
$
|
0.38
|
|
|
$
|
0.42
|
|
Book value
|
|
$
|
21.70
|
|
|
$
|
21.48
|
|
|
$
|
21.69
|
|
|
$
|
21.38
|
|
|
$
|
21.53
|
|
Averages
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
8,949,212
|
|
|
$
|
8,905,743
|
|
|
$
|
8,672,692
|
|
|
$
|
8,532,173
|
|
|
$
|
8,505,776
|
|
Interest-earning
assets
|
|
$
|
8,005,945
|
|
|
$
|
7,937,308
|
|
|
$
|
7,711,531
|
|
|
$
|
7,560,288
|
|
|
$
|
7,529,040
|
|
Loans
|
|
$
|
5,827,440
|
|
|
$
|
5,762,048
|
|
|
$
|
5,712,614
|
|
|
$
|
5,542,489
|
|
|
$
|
5,414,942
|
|
Securities, including
Federal Home Loan Bank stock
|
|
$
|
2,147,457
|
|
|
$
|
2,136,703
|
|
|
$
|
1,945,174
|
|
|
$
|
1,976,959
|
|
|
$
|
2,068,806
|
|
Deposits
|
|
$
|
7,445,693
|
|
|
$
|
7,440,628
|
|
|
$
|
7,233,863
|
|
|
$
|
6,978,472
|
|
|
$
|
6,927,756
|
|
Interest-bearing
deposits
|
|
$
|
3,983,314
|
|
|
$
|
3,933,001
|
|
|
$
|
3,910,695
|
|
|
$
|
3,753,101
|
|
|
$
|
4,157,491
|
|
Interest-bearing
liabilities
|
|
$
|
4,124,582
|
|
|
$
|
4,031,214
|
|
|
$
|
4,007,198
|
|
|
$
|
3,961,013
|
|
|
$
|
4,395,502
|
|
Noninterest-bearing
deposits
|
|
$
|
3,462,379
|
|
|
$
|
3,507,627
|
|
|
$
|
3,323,168
|
|
|
$
|
3,225,371
|
|
|
$
|
2,770,265
|
|
Shareholders'
equity
|
|
$
|
1,258,411
|
|
|
$
|
1,259,117
|
|
|
$
|
1,239,830
|
|
|
$
|
1,247,887
|
|
|
$
|
1,240,853
|
|
Financial
Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
0.95
|
%
|
|
1.20
|
%
|
|
1.19
|
%
|
|
1.03
|
%
|
|
1.15
|
%
|
Return on average
common equity
|
|
6.76
|
%
|
|
8.50
|
%
|
|
8.32
|
%
|
|
7.04
|
%
|
|
7.86
|
%
|
Average equity to
average assets
|
|
14.06
|
%
|
|
14.14
|
%
|
|
14.30
|
%
|
|
14.63
|
%
|
|
14.59
|
%
|
Net interest margin
(tax equivalent)
|
|
4.13
|
%
|
|
4.25
|
%
|
|
4.37
|
%
|
|
4.41
|
%
|
|
4.39
|
%
|
Period
end
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
9,035,932
|
|
|
$
|
8,951,697
|
|
|
$
|
8,755,984
|
|
|
$
|
8,518,019
|
|
|
$
|
8,552,902
|
|
Loans, net of
unearned income
|
|
$
|
5,877,283
|
|
|
$
|
5,815,027
|
|
|
$
|
5,746,511
|
|
|
$
|
5,611,897
|
|
|
$
|
5,450,895
|
|
Allowance for loan
and lease losses
|
|
$
|
69,264
|
|
|
$
|
68,172
|
|
|
$
|
69,049
|
|
|
$
|
69,257
|
|
|
$
|
70,234
|
|
Securities, including
Federal Home Loan Bank stock
|
|
$
|
2,196,407
|
|
|
$
|
2,170,416
|
|
|
$
|
2,037,666
|
|
|
$
|
1,926,248
|
|
|
$
|
2,040,163
|
|
Deposits
|
|
$
|
7,596,949
|
|
|
$
|
7,438,829
|
|
|
$
|
7,314,805
|
|
|
$
|
7,044,373
|
|
|
$
|
7,074,965
|
|
Core
deposits
|
|
$
|
7,285,067
|
|
|
$
|
7,127,866
|
|
|
$
|
6,986,206
|
|
|
$
|
6,737,969
|
|
|
$
|
6,771,755
|
|
Shareholders'
equity
|
|
$
|
1,260,788
|
|
|
$
|
1,242,128
|
|
|
$
|
1,254,136
|
|
|
$
|
1,236,214
|
|
|
$
|
1,244,443
|
|
Nonperforming,
assets
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
36,891
|
|
|
$
|
21,464
|
|
|
$
|
19,080
|
|
|
$
|
25,746
|
|
|
$
|
31,828
|
|
OREO and
OPPO
|
|
12,427
|
|
|
13,738
|
|
|
19,475
|
|
|
20,665
|
|
|
23,347
|
|
Total
nonperforming assets
|
|
$
|
49,318
|
|
|
$
|
35,202
|
|
|
$
|
38,555
|
|
|
$
|
46,411
|
|
|
$
|
55,175
|
|
Nonperforming loans
to period-end loans
|
|
0.63
|
%
|
|
0.37
|
%
|
|
0.33
|
%
|
|
0.46
|
%
|
|
0.58
|
%
|
Nonperforming assets
to period-end assets
|
|
0.55
|
%
|
|
0.39
|
%
|
|
0.44
|
%
|
|
0.54
|
%
|
|
0.65
|
%
|
Allowance for loan
and lease losses to period-end loans
|
|
1.18
|
%
|
|
1.17
|
%
|
|
1.20
|
%
|
|
1.23
|
%
|
|
1.29
|
%
|
Net loan
charge-offs
|
|
$
|
4,162
|
|
|
$
|
3,226
|
|
|
$
|
3,039
|
|
|
$
|
3,179
|
|
|
$
|
544
|
|
LOAN PORTFOLIO
COMPOSITION
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
|
|
|
|
|
|
|
Unaudited
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
Loan Portfolio
Composition - Dollars
|
|
(dollars in
thousands)
|
Commercial
business
|
|
$
|
2,401,193
|
|
|
$
|
2,362,575
|
|
|
$
|
2,354,731
|
|
|
$
|
2,255,468
|
|
|
$
|
2,139,873
|
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
One-to-four family
residential
|
|
175,050
|
|
|
176,295
|
|
|
177,108
|
|
|
181,849
|
|
|
173,739
|
|
Commercial and
multifamily residential
|
|
2,520,352
|
|
|
2,491,736
|
|
|
2,449,847
|
|
|
2,406,594
|
|
|
2,374,454
|
|
Total
real estate
|
|
2,695,402
|
|
|
2,668,031
|
|
|
2,626,955
|
|
|
2,588,443
|
|
|
2,548,193
|
|
Real estate
construction:
|
|
|
|
|
|
|
|
|
|
|
One-to-four family
residential
|
|
133,447
|
|
|
135,874
|
|
|
136,783
|
|
|
127,311
|
|
|
124,017
|
|
Commercial and
multifamily residential
|
|
183,548
|
|
|
167,413
|
|
|
134,097
|
|
|
129,302
|
|
|
119,880
|
|
Total
real estate construction
|
|
316,995
|
|
|
303,287
|
|
|
270,880
|
|
|
256,613
|
|
|
243,897
|
|
Consumer
|
|
329,902
|
|
|
342,601
|
|
|
348,315
|
|
|
358,365
|
|
|
352,960
|
|
Purchased credit
impaired
|
|
173,201
|
|
|
180,906
|
|
|
191,066
|
|
|
202,367
|
|
|
219,839
|
|
Subtotal
loans
|
|
5,916,693
|
|
|
5,857,400
|
|
|
5,791,947
|
|
|
5,661,256
|
|
|
5,504,762
|
|
Less: Net
unearned income
|
|
(39,410)
|
|
|
(42,373)
|
|
|
(45,436)
|
|
|
(49,359)
|
|
|
(53,867)
|
|
Loans, net of
unearned income
|
|
5,877,283
|
|
|
5,815,027
|
|
|
5,746,511
|
|
|
5,611,897
|
|
|
5,450,895
|
|
Less: Allowance
for loan and lease losses
|
|
(69,264)
|
|
|
(68,172)
|
|
|
(69,049)
|
|
|
(69,257)
|
|
|
(70,234)
|
|
Total loans,
net
|
|
5,808,019
|
|
|
5,746,855
|
|
|
5,677,462
|
|
|
5,542,640
|
|
|
5,380,661
|
|
Loans held for
sale
|
|
$
|
3,681
|
|
|
$
|
4,509
|
|
|
$
|
6,637
|
|
|
$
|
4,220
|
|
|
$
|
3,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
September
30,
|
|
|
June
30,
|
|
|
March
31,
|
Loan Portfolio
Composition - Percentages
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
Commercial
business
|
|
|
40.9
|
%
|
|
|
40.6
|
%
|
|
|
41.0
|
%
|
|
|
40.2
|
%
|
|
|
39.3
|
%
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-four family
residential
|
|
|
3.0
|
%
|
|
|
3.0
|
%
|
|
|
3.1
|
%
|
|
|
3.2
|
%
|
|
|
3.2
|
%
|
Commercial and
multifamily residential
|
|
|
42.9
|
%
|
|
|
42.9
|
%
|
|
|
42.6
|
%
|
|
|
42.9
|
%
|
|
|
43.5
|
%
|
Total
real estate
|
|
|
45.9
|
%
|
|
|
45.9
|
%
|
|
|
45.7
|
%
|
|
|
46.1
|
%
|
|
|
46.7
|
%
|
Real estate
construction:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-four family
residential
|
|
|
2.3
|
%
|
|
|
2.3
|
%
|
|
|
2.4
|
%
|
|
|
2.3
|
%
|
|
|
2.3
|
%
|
Commercial and
multifamily residential
|
|
|
3.1
|
%
|
|
|
2.9
|
%
|
|
|
2.3
|
%
|
|
|
2.3
|
%
|
|
|
2.2
|
%
|
Total
real estate construction
|
|
|
5.4
|
%
|
|
|
5.2
|
%
|
|
|
4.7
|
%
|
|
|
4.6
|
%
|
|
|
4.5
|
%
|
Consumer
|
|
|
5.6
|
%
|
|
|
5.9
|
%
|
|
|
6.1
|
%
|
|
|
6.4
|
%
|
|
|
6.5
|
%
|
Purchased credit
impaired
|
|
|
2.9
|
%
|
|
|
3.1
|
%
|
|
|
3.3
|
%
|
|
|
3.6
|
%
|
|
|
4.0
|
%
|
Subtotal
loans
|
|
|
100.7
|
%
|
|
|
100.7
|
%
|
|
|
100.8
|
%
|
|
|
100.9
|
%
|
|
|
101.0
|
%
|
Less: Net
unearned income
|
|
|
(0.7)%
|
|
|
|
(0.7)%
|
|
|
|
(0.8)%
|
|
|
|
(0.9)%
|
|
|
|
(1.0)%
|
|
Loans, net of
unearned income
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
DEPOSIT
COMPOSITION
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
Deposit
Composition - Dollars
|
|
(dollars in
thousands)
|
Core
deposits:
|
|
|
|
|
|
|
|
|
|
|
Demand and other
non-interest bearing
|
|
$
|
3,553,468
|
|
|
$
|
3,507,358
|
|
|
$
|
3,386,968
|
|
|
$
|
3,207,538
|
|
|
$
|
3,260,376
|
|
Interest bearing
demand
|
|
958,469
|
|
|
925,909
|
|
|
911,686
|
|
|
912,637
|
|
|
901,684
|
|
Money
market
|
|
1,838,364
|
|
|
1,788,552
|
|
|
1,776,087
|
|
|
1,718,000
|
|
|
1,700,014
|
|
Savings
|
|
695,588
|
|
|
657,016
|
|
|
651,695
|
|
|
630,897
|
|
|
630,423
|
|
Certificates of
deposit less than $100,000
|
|
239,178
|
|
|
249,031
|
|
|
259,770
|
|
|
268,897
|
|
|
279,258
|
|
Total
core deposits
|
|
7,285,067
|
|
|
7,127,866
|
|
|
6,986,206
|
|
|
6,737,969
|
|
|
6,771,755
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of
deposit greater than $100,000
|
|
170,126
|
|
|
182,973
|
|
|
184,047
|
|
|
194,449
|
|
|
199,728
|
|
Certificates of
deposit insured by CDARS®
|
|
24,752
|
|
|
26,901
|
|
|
26,975
|
|
|
18,357
|
|
|
18,430
|
|
Brokered money market
accounts
|
|
116,878
|
|
|
100,854
|
|
|
117,196
|
|
|
93,061
|
|
|
84,336
|
|
Subtotal
|
|
7,596,823
|
|
|
7,438,594
|
|
|
7,314,424
|
|
|
7,043,836
|
|
|
7,074,249
|
|
Premium resulting
from acquisition date fair value adjustment
|
|
126
|
|
|
235
|
|
|
381
|
|
|
537
|
|
|
716
|
|
Total
deposits
|
|
$
|
7,596,949
|
|
|
$
|
7,438,829
|
|
|
$
|
7,314,805
|
|
|
$
|
7,044,373
|
|
|
$
|
7,074,965
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
|
December
31,
|
|
|
September
30,
|
|
|
June
30,
|
|
|
March
31,
|
|
Deposit
Composition - Percentages
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
|
2015
|
|
Core
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand and other
non-interest bearing
|
|
|
46.8
|
%
|
|
|
47.2
|
%
|
|
|
46.3
|
%
|
|
|
45.5
|
%
|
|
|
46.2
|
%
|
Interest bearing
demand
|
|
|
12.6
|
%
|
|
|
12.4
|
%
|
|
|
12.5
|
%
|
|
|
13.0
|
%
|
|
|
12.7
|
%
|
Money
market
|
|
|
24.2
|
%
|
|
|
24.0
|
%
|
|
|
24.3
|
%
|
|
|
24.4
|
%
|
|
|
24.0
|
%
|
Savings
|
|
|
9.2
|
%
|
|
|
8.8
|
%
|
|
|
8.9
|
%
|
|
|
9.0
|
%
|
|
|
8.9
|
%
|
Certificates of
deposit less than $100,000
|
|
|
3.1
|
%
|
|
|
3.3
|
%
|
|
|
3.6
|
%
|
|
|
3.8
|
%
|
|
|
3.9
|
%
|
Total core
deposits
|
|
|
95.9
|
%
|
|
|
95.7
|
%
|
|
|
95.6
|
%
|
|
|
95.7
|
%
|
|
|
95.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of
deposit greater than $100,000
|
|
|
2.3
|
%
|
|
|
2.5
|
%
|
|
|
2.4
|
%
|
|
|
2.7
|
%
|
|
|
2.8
|
%
|
Certificates of
deposit insured by CDARS®
|
|
|
0.3
|
%
|
|
|
0.4
|
%
|
|
|
0.4
|
%
|
|
|
0.3
|
%
|
|
|
0.3
|
%
|
Brokered money market
accounts
|
|
|
1.5
|
%
|
|
|
1.4
|
%
|
|
|
1.6
|
%
|
|
|
1.3
|
%
|
|
|
1.2
|
%
|
Total
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
Three Months
Ended
|
Unaudited
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
2016
|
|
2015 (1)
|
|
2015 (1)
|
|
|
(in thousands
except per share)
|
Interest
Income
|
|
|
|
|
|
|
Loans
|
|
$
|
70,316
|
|
|
$
|
71,358
|
|
|
$
|
70,822
|
|
Taxable
securities
|
|
8,017
|
|
|
8,516
|
|
|
7,526
|
|
Tax-exempt
securities
|
|
2,803
|
|
|
2,870
|
|
|
3,042
|
|
Deposits in
banks
|
|
38
|
|
|
25
|
|
|
27
|
|
Total interest
income
|
|
81,174
|
|
|
82,769
|
|
|
81,417
|
|
Interest
Expense
|
|
|
|
|
|
|
Deposits
|
|
742
|
|
|
733
|
|
|
748
|
|
Federal Home Loan
Bank advances
|
|
124
|
|
|
83
|
|
|
159
|
|
Other
borrowings
|
|
138
|
|
|
134
|
|
|
146
|
|
Total interest
expense
|
|
1,004
|
|
|
950
|
|
|
1,053
|
|
Net Interest
Income
|
|
80,170
|
|
|
81,819
|
|
|
80,364
|
|
Provision for loan
and lease losses
|
|
5,254
|
|
|
2,349
|
|
|
1,209
|
|
Net interest income
after provision for loan and lease losses
|
|
74,916
|
|
|
79,470
|
|
|
79,155
|
|
Noninterest
Income
|
|
|
|
|
|
|
Deposit account and
treasury management fees (1)
|
|
6,989
|
|
|
7,010
|
|
|
6,860
|
|
Card revenue
(1)
|
|
5,652
|
|
|
5,776
|
|
|
5,363
|
|
Financial services
and trust revenue (1)
|
|
2,821
|
|
|
2,940
|
|
|
3,124
|
|
Loan revenue
(1)
|
|
2,262
|
|
|
2,808
|
|
|
2,603
|
|
Merchant processing
revenue
|
|
2,102
|
|
|
2,173
|
|
|
2,040
|
|
Bank owned life
insurance
|
|
1,116
|
|
|
1,071
|
|
|
1,078
|
|
Investment securities
gains, net
|
|
373
|
|
|
281
|
|
|
721
|
|
Change in FDIC
loss-sharing asset
|
|
(1,103)
|
|
|
(1,031)
|
|
|
150
|
|
Other (1)
|
|
434
|
|
|
3,717
|
|
|
828
|
|
Total noninterest
income
|
|
20,646
|
|
|
24,745
|
|
|
22,767
|
|
Noninterest
Expense
|
|
|
|
|
|
|
Compensation and
employee benefits
|
|
36,319
|
|
|
36,689
|
|
|
39,100
|
|
Occupancy
|
|
10,173
|
|
|
10,037
|
|
|
7,993
|
|
Merchant processing
expense
|
|
1,033
|
|
|
1,058
|
|
|
977
|
|
Advertising and
promotion
|
|
842
|
|
|
1,233
|
|
|
931
|
|
Data
processing
|
|
4,146
|
|
|
4,399
|
|
|
4,984
|
|
Legal and
professional fees
|
|
1,325
|
|
|
2,081
|
|
|
2,507
|
|
Taxes, licenses and
fees
|
|
1,290
|
|
|
1,392
|
|
|
1,232
|
|
Regulatory
premiums
|
|
1,141
|
|
|
1,180
|
|
|
1,221
|
|
Net cost (benefit) of
operation of other real estate owned
|
|
104
|
|
|
(60)
|
|
|
(1,246)
|
|
Amortization of
intangibles
|
|
1,583
|
|
|
1,652
|
|
|
1,817
|
|
Other
|
|
7,118
|
|
|
7,216
|
|
|
7,218
|
|
Total noninterest
expense
|
|
65,074
|
|
|
66,877
|
|
|
66,734
|
|
Income before income
taxes
|
|
30,488
|
|
|
37,338
|
|
|
35,188
|
|
Provision for income
taxes
|
|
9,229
|
|
|
10,598
|
|
|
10,827
|
|
Net
Income
|
|
$
|
21,259
|
|
|
$
|
26,740
|
|
|
$
|
24,361
|
|
Earnings per common
share
|
|
|
|
|
|
|
Basic
|
|
$
|
0.37
|
|
|
$
|
0.46
|
|
|
$
|
0.42
|
|
Diluted
|
|
$
|
0.37
|
|
|
$
|
0.46
|
|
|
$
|
0.42
|
|
Dividends paid per
common share
|
|
$
|
0.38
|
|
|
$
|
0.36
|
|
|
$
|
0.30
|
|
Weighted average
number of common shares outstanding
|
|
57,114
|
|
|
57,057
|
|
|
56,965
|
|
Weighted average
number of diluted common shares outstanding
|
|
57,125
|
|
|
57,070
|
|
|
56,978
|
|
|
|
(1)
|
Reclassified to
conform to the current period's presentation. Reclassifications
consisted of disaggregating income previously presented as 'Service
charges and other fees' and certain income previously presented in
'Other' into the presentation above. 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
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
(in
thousands)
|
ASSETS
|
|
Cash and due from
banks
|
|
|
|
|
$
|
150,683
|
|
|
$
|
166,929
|
|
Interest-earning
deposits with banks
|
|
|
|
|
38,248
|
|
|
8,373
|
|
Total cash and cash
equivalents
|
|
|
|
|
188,931
|
|
|
175,302
|
|
Securities available
for sale at fair value (amortized cost of $2,156,999 and
$2,157,610, respectively)
|
2,186,166
|
|
|
2,157,694
|
|
Federal Home Loan
Bank stock at cost
|
|
|
|
|
10,241
|
|
|
12,722
|
|
Loans held for
sale
|
|
|
|
|
3,681
|
|
|
4,509
|
|
Loans, net of
unearned income of ($39,410) and ($42,373), respectively
|
5,877,283
|
|
|
5,815,027
|
|
Less: allowance for
loan and lease losses
|
|
|
|
|
69,264
|
|
|
68,172
|
|
Loans, net
|
|
|
|
|
5,808,019
|
|
|
5,746,855
|
|
FDIC loss-sharing
asset
|
|
|
|
|
5,954
|
|
|
6,568
|
|
Interest
receivable
|
|
|
|
|
29,304
|
|
|
27,877
|
|
Premises and
equipment, net
|
|
|
|
|
158,101
|
|
|
164,239
|
|
Other real estate
owned
|
|
|
|
|
12,427
|
|
|
13,738
|
|
Goodwill
|
|
|
|
|
382,762
|
|
|
382,762
|
|
Other intangible
assets, net
|
|
|
|
|
21,994
|
|
|
23,577
|
|
Other
assets
|
|
|
|
|
228,352
|
|
|
235,854
|
|
Total
assets
|
|
|
|
|
$
|
9,035,932
|
|
|
$
|
8,951,697
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
|
|
|
$
|
3,553,468
|
|
|
$
|
3,507,358
|
|
Interest-bearing
|
|
|
|
|
4,043,481
|
|
|
3,931,471
|
|
Total
deposits
|
|
|
|
|
7,596,949
|
|
|
7,438,829
|
|
Federal Home Loan
Bank advances
|
|
|
|
|
6,521
|
|
|
68,531
|
|
Securities sold under
agreements to repurchase
|
|
|
|
|
73,839
|
|
|
99,699
|
|
Other
liabilities
|
|
|
|
|
97,835
|
|
|
102,510
|
|
Total
liabilities
|
|
|
|
|
7,775,144
|
|
|
7,709,569
|
|
Commitments and
contingent liabilities
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
Preferred stock (no
par value)
|
(in
thousands)
|
|
|
|
Authorized
shares
|
2,000
|
|
|
2,000
|
|
|
|
|
|
Issued and
outstanding
|
9
|
|
|
9
|
|
|
2,217
|
|
|
2,217
|
|
Common stock (no par
value)
|
|
|
|
|
|
|
|
Authorized
shares
|
115,000
|
|
|
115,000
|
|
|
|
|
|
Issued and
outstanding
|
58,008
|
|
|
57,724
|
|
|
991,026
|
|
|
990,281
|
|
Retained
earnings
|
|
|
|
|
255,202
|
|
|
255,925
|
|
Accumulated other
comprehensive income (loss)
|
|
|
|
|
12,343
|
|
|
(6,295)
|
|
Total shareholders'
equity
|
|
|
|
|
1,260,788
|
|
|
1,242,128
|
|
Total liabilities and
shareholders' equity
|
|
|
|
|
$
|
9,035,932
|
|
|
$
|
8,951,697
|
|
AVERAGE
BALANCES AND RATES
|
|
|
Columbia
Banking System, Inc.
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March 31,
2016
|
|
March 31,
2015
|
|
|
Average
Balances
|
|
Interest
Earned / Paid
|
|
Average
Rate
|
|
Average
Balances
|
|
Interest
Earned / Paid
|
|
Average
Rate
|
|
|
(dollars in
thousands)
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
net (1)(2)
|
|
$
|
5,827,440
|
|
|
$
|
71,298
|
|
|
4.89
|
%
|
|
$
|
5,414,942
|
|
|
$
|
71,487
|
|
|
5.28
|
%
|
Taxable
securities
|
|
1,689,289
|
|
|
8,017
|
|
|
1.90
|
%
|
|
1,609,323
|
|
|
7,526
|
|
|
1.87
|
%
|
Tax exempt securities
(2)
|
|
458,168
|
|
|
4,312
|
|
|
3.76
|
%
|
|
459,483
|
|
|
4,680
|
|
|
4.07
|
%
|
Interest-earning
deposits with banks
|
|
31,048
|
|
|
38
|
|
|
0.49
|
%
|
|
45,292
|
|
|
27
|
|
|
0.24
|
%
|
Total
interest-earning assets
|
|
8,005,945
|
|
|
$
|
83,665
|
|
|
4.18
|
%
|
|
7,529,040
|
|
|
$
|
83,720
|
|
|
4.45
|
%
|
Other earning
assets
|
|
154,336
|
|
|
|
|
|
|
146,055
|
|
|
|
|
|
Noninterest-earning
assets
|
|
788,931
|
|
|
|
|
|
|
830,681
|
|
|
|
|
|
Total
assets
|
|
$
|
8,949,212
|
|
|
|
|
|
|
$
|
8,505,776
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
Certificates of
deposit
|
|
$
|
448,915
|
|
|
$
|
144
|
|
|
0.13
|
%
|
|
$
|
502,287
|
|
|
$
|
240
|
|
|
0.19
|
%
|
Savings
accounts
|
|
675,876
|
|
|
17
|
|
|
0.01
|
%
|
|
625,132
|
|
|
19
|
|
|
0.01
|
%
|
Interest-bearing
demand
|
|
927,948
|
|
|
169
|
|
|
0.07
|
%
|
|
1,214,149
|
|
|
138
|
|
|
0.05
|
%
|
Money market
accounts
|
|
1,930,575
|
|
|
412
|
|
|
0.09
|
%
|
|
1,815,923
|
|
|
351
|
|
|
0.08
|
%
|
Total
interest-bearing deposits
|
|
3,983,314
|
|
|
742
|
|
|
0.07
|
%
|
|
4,157,491
|
|
|
748
|
|
|
0.07
|
%
|
Federal Home Loan
Bank advances
|
|
50,569
|
|
|
124
|
|
|
0.98
|
%
|
|
129,841
|
|
|
159
|
|
|
0.49
|
%
|
Other
borrowings
|
|
90,699
|
|
|
138
|
|
|
0.61
|
%
|
|
108,170
|
|
|
146
|
|
|
0.54
|
%
|
Total
interest-bearing liabilities
|
|
4,124,582
|
|
|
$
|
1,004
|
|
|
0.10
|
%
|
|
4,395,502
|
|
|
$
|
1,053
|
|
|
0.10
|
%
|
Noninterest-bearing
deposits
|
|
3,462,379
|
|
|
|
|
|
|
2,770,265
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
103,840
|
|
|
|
|
|
|
99,156
|
|
|
|
|
|
Shareholders'
equity
|
|
1,258,411
|
|
|
|
|
|
|
1,240,853
|
|
|
|
|
|
Total
liabilities & shareholders' equity
|
|
$
|
8,949,212
|
|
|
|
|
|
|
$
|
8,505,776
|
|
|
|
|
|
Net interest income
(tax equivalent)
|
|
$
|
82,661
|
|
|
|
|
|
|
$
|
82,667
|
|
|
|
Net interest margin
(tax equivalent)
|
|
4.13
|
%
|
|
|
|
|
|
4.39
|
%
|
|
|
(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 $1.1 million for
both three month periods ended March 31, 2016 and
March 31, 2015. The incremental accretion on acquired loans
was $4.7 million and $7.5 million for the three months ended
March 31, 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 $982 thousand and $665
thousand for the three months ended March 31, 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 March 31, 2016 and 2015,
respectively.
|
AVERAGE
BALANCES AND RATES
|
Columbia
Banking System, Inc.
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March 31,
2016
|
|
December 31,
2015
|
|
|
Average
Balances
|
|
Interest
Earned / Paid
|
|
Average
Rate
|
|
Average
Balances
|
|
Interest
Earned / Paid
|
|
Average
Rate
|
|
|
(dollars in
thousands)
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
net (1)(2)
|
|
$
|
5,827,440
|
|
|
$
|
71,298
|
|
|
4.89
|
%
|
|
$
|
5,762,048
|
|
|
$
|
72,322
|
|
|
5.02
|
%
|
Taxable
securities
|
|
1,689,289
|
|
|
8,017
|
|
|
1.90
|
%
|
|
1,686,594
|
|
|
8,516
|
|
|
2.02
|
%
|
Tax exempt securities
(2)
|
|
458,168
|
|
|
4,312
|
|
|
3.76
|
%
|
|
450,109
|
|
|
4,417
|
|
|
3.93
|
%
|
Interest-earning
deposits with banks
|
|
31,048
|
|
|
38
|
|
|
0.49
|
%
|
|
38,557
|
|
|
25
|
|
|
0.26
|
%
|
Total
interest-earning assets
|
|
8,005,945
|
|
|
$
|
83,665
|
|
|
4.18
|
%
|
|
7,937,308
|
|
|
$
|
85,280
|
|
|
4.30
|
%
|
Other earning
assets
|
|
154,336
|
|
|
|
|
|
|
153,298
|
|
|
|
|
|
Noninterest-earning
assets
|
|
788,931
|
|
|
|
|
|
|
815,137
|
|
|
|
|
|
Total
assets
|
|
$
|
8,949,212
|
|
|
|
|
|
|
$
|
8,905,743
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
Certificates of
deposit
|
|
$
|
448,915
|
|
|
$
|
144
|
|
|
0.13
|
%
|
|
$
|
460,858
|
|
|
$
|
179
|
|
|
0.16
|
%
|
Savings
accounts
|
|
675,876
|
|
|
17
|
|
|
0.01
|
%
|
|
653,738
|
|
|
17
|
|
|
0.01
|
%
|
Interest-bearing
demand
|
|
927,948
|
|
|
169
|
|
|
0.07
|
%
|
|
920,021
|
|
|
161
|
|
|
0.07
|
%
|
Money market
accounts
|
|
1,930,575
|
|
|
412
|
|
|
0.09
|
%
|
|
1,898,384
|
|
|
376
|
|
|
0.08
|
%
|
Total
interest-bearing deposits
|
|
3,983,314
|
|
|
742
|
|
|
0.07
|
%
|
|
3,933,001
|
|
|
733
|
|
|
0.07
|
%
|
Federal Home Loan
Bank advances
|
|
50,569
|
|
|
124
|
|
|
0.98
|
%
|
|
18,915
|
|
|
83
|
|
|
1.76
|
%
|
Other
borrowings
|
|
90,699
|
|
|
138
|
|
|
0.61
|
%
|
|
79,298
|
|
|
134
|
|
|
0.68
|
%
|
Total
interest-bearing liabilities
|
|
4,124,582
|
|
|
$
|
1,004
|
|
|
0.10
|
%
|
|
4,031,214
|
|
|
$
|
950
|
|
|
0.09
|
%
|
Noninterest-bearing
deposits
|
|
3,462,379
|
|
|
|
|
|
|
3,507,627
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
103,840
|
|
|
|
|
|
|
107,785
|
|
|
|
|
|
Shareholders'
equity
|
|
1,258,411
|
|
|
|
|
|
|
1,259,117
|
|
|
|
|
|
Total
liabilities & shareholders' equity
|
|
$
|
8,949,212
|
|
|
|
|
|
|
$
|
8,905,743
|
|
|
|
|
|
Net interest income
(tax equivalent)
|
|
$
|
82,661
|
|
|
|
|
|
|
$
|
84,330
|
|
|
|
Net interest margin
(tax equivalent)
|
|
4.13
|
%
|
|
|
|
|
|
4.25
|
%
|
|
|
(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 $1.1 million for
both three month periods ended March 31, 2016 and
December 31, 2015. The incremental accretion on acquired loans
was $4.7 million and $6.0 million for the three months ended
March 31, 2016 and December 31, 2015,
respectively.
|
|
|
(2)
|
Tax-exempt income is
calculated on a tax equivalent basis. The tax equivalent yield
adjustment to interest earned on loans was $982 thousand and $964
thousand for the three months ended March 31, 2016 and
December 31, 2015, respectively. The tax equivalent yield
adjustment to interest earned on tax exempt securities was $1.5
million for both three month periods ended March 31, 2016 and
December 31, 2015.
|
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
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
2015
|
Operating net
interest margin non-GAAP reconciliation:
|
|
(dollars in
thousands)
|
Net interest income
(tax equivalent) (1)
|
|
$
|
82,661
|
|
|
$
|
84,330
|
|
|
$
|
82,667
|
|
Adjustments to arrive
at operating net interest income (tax equivalent):
|
|
|
|
|
|
|
Incremental accretion
income on FDIC purchased credit impaired loans
|
|
(1,657)
|
|
|
(2,200)
|
|
|
(2,447)
|
|
Incremental accretion
income on other FDIC acquired loans (2)
|
|
—
|
|
|
(68)
|
|
|
(117)
|
|
Incremental accretion
income on other acquired loans
|
|
(3,073)
|
|
|
(3,746)
|
|
|
(4,934)
|
|
Premium amortization
on acquired securities
|
|
2,324
|
|
|
2,253
|
|
|
2,861
|
|
Interest reversals on
nonaccrual loans
|
|
453
|
|
|
582
|
|
|
650
|
|
Operating net
interest income (tax equivalent) (1)
|
|
$
|
80,708
|
|
|
$
|
81,151
|
|
|
$
|
78,680
|
|
Average interest
earning assets
|
|
$
|
8,005,945
|
|
|
$
|
7,937,308
|
|
|
$
|
7,529,040
|
|
Net interest margin
(tax equivalent) (1)
|
|
4.13
|
%
|
|
4.25
|
%
|
|
4.39
|
%
|
Operating net
interest margin (tax equivalent) (1)
|
|
4.03
|
%
|
|
4.09
|
%
|
|
4.18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
2016
|
|
2015
|
|
2015
|
Operating
efficiency ratio non-GAAP reconciliation:
|
|
(dollars in
thousands)
|
Noninterest expense
(numerator A)
|
|
$
|
65,074
|
|
|
$
|
66,877
|
|
|
$
|
66,734
|
|
Adjustments to arrive
at operating noninterest expense:
|
|
|
|
|
|
|
Acquisition-related
expenses
|
|
(2,436)
|
|
|
(1,872)
|
|
|
(2,974)
|
|
Net benefit (cost) of
operation of OREO and OPPO
|
|
(102)
|
|
|
150
|
|
|
1,241
|
|
FDIC clawback
liability expense
|
|
(209)
|
|
|
(812)
|
|
|
(23)
|
|
Loss on asset
disposals
|
|
(160)
|
|
|
(52)
|
|
|
(96)
|
|
State of Washington
Business and Occupation ("B&O") taxes
|
|
(1,171)
|
|
|
(1,294)
|
|
|
(1,129)
|
|
Operating noninterest
expense (numerator B)
|
|
$
|
60,996
|
|
|
$
|
62,997
|
|
|
$
|
63,753
|
|
|
|
|
|
|
|
|
Net interest income
(tax equivalent) (1)
|
|
$
|
82,661
|
|
|
$
|
84,330
|
|
|
$
|
82,667
|
|
Noninterest
income
|
|
20,646
|
|
|
24,745
|
|
|
22,767
|
|
Bank owned life
insurance tax equivalent adjustment
|
|
600
|
|
|
576
|
|
|
581
|
|
Total revenue (tax
equivalent) (denominator A)
|
|
$
|
103,907
|
|
|
$
|
109,651
|
|
|
$
|
106,015
|
|
|
|
|
|
|
|
|
Operating net
interest income (tax equivalent) (1)
|
|
$
|
80,708
|
|
|
$
|
81,151
|
|
|
$
|
78,680
|
|
Adjustments to arrive
at operating noninterest income (tax equivalent):
|
|
|
|
|
|
|
Investment securities
gains, net
|
|
(373)
|
|
|
(281)
|
|
|
(721)
|
|
Gain on asset
disposals
|
|
(54)
|
|
|
(4)
|
|
|
—
|
|
Mortgage loan
repurchase liability adjustment
|
|
—
|
|
|
(3,147)
|
|
|
—
|
|
Change in FDIC
loss-sharing asset
|
|
1,103
|
|
|
1,031
|
|
|
(150)
|
|
Operating noninterest
income (tax equivalent)
|
|
21,922
|
|
|
22,920
|
|
|
22,477
|
|
Total operating
revenue (tax equivalent) (denominator B)
|
|
$
|
102,630
|
|
|
$
|
104,071
|
|
|
$
|
101,157
|
|
Efficiency ratio (tax
equivalent) (numerator A/denominator A)
|
|
62.63
|
%
|
|
60.99
|
%
|
|
62.95
|
%
|
Operating efficiency
ratio (tax equivalent) (numerator B/denominator B)
|
|
59.43
|
%
|
|
60.53
|
%
|
|
63.02
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $2.5
million, $2.5 million and $2.3 million for the three months
ended March 31, 2016, December 31, 2015
and March 31, 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.
|
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SOURCE Columbia Banking System, Inc.