TACOMA, Wash., Oct. 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 third quarter 2016 earnings, "The
competitive landscape and interest rate environment remain
challenging. However, we are very pleased with our results for the
third quarter, which built upon the momentum of our second quarter
performance. Our bankers delivered another impressive quarter of
record loan production while maintaining good portfolio
diversification. We also had outstanding year-over-year deposit
growth of 10%, while our cost of funds remained one of the best in
the country."
Balance Sheet
Total assets at September 30, 2016 were $9.59 billion, an increase of $233.1 million from June 30, 2016. Loan
growth of $152.6 million during the
quarter was driven by strong loan originations of $375.3 million. Loan production was diversified
across the portfolio sectors, with growth primarily centered in
commercial business loans. Securities available for sale were
$2.36 billion at September 30,
2016, an increase of $80.5 million,
or 4% from $2.28 billion at
June 30, 2016. Total deposits at September 30, 2016 were
$8.06 billion, an increase of
$384.6 million from $7.67 billion at June 30, 2016. Core
deposits comprised 97% of total deposits and were $7.81 billion at September 30, 2016, an
increase of $361.1 million from
June 30, 2016. The average cost of total deposits for the
quarter was 0.04%, unchanged from the second quarter of 2016.
Income Statement
Net Interest Income
Net interest income for the third quarter of 2016 was
$85.6 million, an increase of
$3.4 million and $3.9 million from the linked and prior year
periods, respectively. The linked quarter increase was driven
principally by higher loan and securities volumes as well as higher
rates on loans. 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, which was $1.8 million lower in the current quarter as
compared to the third quarter of 2015. For additional information
regarding net interest income, see the "Average Balances and Rates"
table.
Noninterest Income
Noninterest income was $23.2
million for the third quarter of 2016, an increase of
$1.2 million compared to $21.9 million for the second quarter of 2016. The
linked quarter increase was due to lower expense related to the
change in FDIC loss-sharing asset as well as higher investment
security gains.
Compared to the third quarter of 2015, noninterest income
increased by $667 thousand due to
lower expenses from the FDIC loss-sharing asset. Additional details
of the components of the change in the FDIC loss-sharing asset are
provided in tabular format below.
The change in the FDIC loss-sharing asset has been a significant
component of noninterest income but, as our larger loss-sharing
agreements have expired, the significance has diminished. The
following table reflects the income statement components of the
change in the FDIC loss-sharing asset:
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(in
thousands)
|
Adjustments reflected
in income
|
|
|
|
|
|
|
|
|
|
|
Amortization,
net
|
|
$
|
(315)
|
|
|
$
|
(883)
|
|
|
$
|
(1,416)
|
|
|
(2,530)
|
|
|
(5,086)
|
|
Loan impairment
(recapture)
|
|
266
|
|
|
(20)
|
|
|
(119)
|
|
|
393
|
|
|
1,413
|
|
Sales of other real
estate owned
|
|
(49)
|
|
|
(24)
|
|
|
(126)
|
|
|
71
|
|
|
(753)
|
|
Valuation adjustments
on other real estate owned
|
|
—
|
|
|
(40)
|
|
|
25
|
|
|
(22)
|
|
|
1,148
|
|
Other
|
|
(6)
|
|
|
(23)
|
|
|
1
|
|
|
(109)
|
|
|
299
|
|
Change in FDIC
loss-sharing asset
|
|
$
|
(104)
|
|
|
$
|
(990)
|
|
|
$
|
(1,635)
|
|
|
$
|
(2,197)
|
|
|
$
|
(2,979)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expense
Total noninterest expense for the third quarter of 2016 was
$67.3 million, an increase of
$3.5 million from $63.8 million for the second quarter of 2016. The
increase was due to both higher compensation and benefits expense
as well as higher advertising costs in the current quarter. The
increase in compensation and benefits was due to recognizing
additional incentive expense from record loan production, deposit
growth and improved financial performance. The higher advertising
costs were the result of refreshed television commercials and the
associated media costs during the current quarter.
Compared to the third quarter of 2015, noninterest expense
increased $3.2 million, or 5%, from
$64.1 million. After removing the
effect of the acquisition-related expenses of $428 thousand in the prior year period,
noninterest expense for the current quarter was $3.6 million higher than the third quarter of
2015. This increase was due to higher compensation and benefits as
well as higher advertising costs as noted above. These increases
were partially offset by decreased expenses related to other real
estate owned as well as reduced regulatory premiums in the current
quarter.
Net Interest Margin ("NIM")
Columbia's net interest margin
(tax equivalent) for the third quarter of 2016 was 4.13%, an
increase of 3 basis points from the linked quarter and decline of
24 basis points from prior year period. The increase from the
linked quarter was due to higher loan rates. The decrease from the
prior year period was due to both lower incremental accretion
income on acquired loans and lower yielding originated loans.
Incremental accretion income was $4.6
million in the current period compared to $6.4 million in the prior year quarter.
Columbia's operating net interest
margin (tax equivalent)(1) was 4.03% for the third
quarter of 2016, an increase of 3 basis points from 4.00% for the
second quarter of 2016 and down 15 basis points compared to 4.18%
for the third 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
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2016
|
|
2015
|
|
|
(dollars in
thousands)
|
Incremental accretion
income due to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FDIC purchased credit
impaired loans
|
|
$
|
1,816
|
|
|
$
|
1,300
|
|
|
$
|
1,657
|
|
|
$
|
2,200
|
|
|
$
|
2,082
|
|
|
$
|
4,773
|
|
|
$
|
6,896
|
|
Other FDIC acquired
loans (2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
68
|
|
|
34
|
|
|
—
|
|
|
166
|
|
Other acquired
loans
|
|
2,749
|
|
|
3,074
|
|
|
3,073
|
|
|
3,746
|
|
|
4,293
|
|
|
8,896
|
|
|
14,116
|
|
Incremental accretion
income
|
|
$
|
4,565
|
|
|
$
|
4,374
|
|
|
$
|
4,730
|
|
|
$
|
6,014
|
|
|
$
|
6,409
|
|
|
$
|
13,669
|
|
|
$
|
21,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(tax equivalent)
|
|
4.13
|
%
|
|
4.10
|
%
|
|
4.13
|
%
|
|
4.25
|
%
|
|
4.37
|
%
|
|
4.12
|
%
|
|
4.39
|
%
|
Operating net
interest margin (tax equivalent) (1)
|
|
4.03
|
%
|
|
4.00
|
%
|
|
4.03
|
%
|
|
4.09
|
%
|
|
4.18
|
%
|
|
4.02
|
%
|
|
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 September 30, 2016, nonperforming assets to total assets
were 0.32% compared to 0.36% at June 30, 2016 and 0.39% at
December 31, 2015. Total nonperforming assets decreased
$3.2 million from the linked quarter
due to a $1.5 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:
|
|
September 30,
2016
|
|
June 30,
2016
|
|
December 31,
2015
|
|
|
(in
thousands)
|
Nonaccrual
loans:
|
|
|
|
|
|
|
Commercial
business
|
|
$
|
9,502
|
|
|
$
|
9,548
|
|
|
$
|
9,437
|
|
Real
estate:
|
|
|
|
|
|
|
One-to-four family
residential
|
|
579
|
|
|
957
|
|
|
820
|
|
Commercial and
multifamily residential
|
|
7,052
|
|
|
7,834
|
|
|
9,513
|
|
Total real
estate
|
|
7,631
|
|
|
8,791
|
|
|
10,333
|
|
Real estate
construction:
|
|
|
|
|
|
|
One-to-four family
residential
|
|
461
|
|
|
562
|
|
|
928
|
|
Total real estate
construction
|
|
461
|
|
|
562
|
|
|
928
|
|
Consumer
|
|
3,772
|
|
|
4,014
|
|
|
766
|
|
Total nonaccrual
loans
|
|
21,366
|
|
|
22,915
|
|
|
21,464
|
|
Other real estate
owned and other personal property owned
|
|
8,994
|
|
|
10,613
|
|
|
13,738
|
|
Total nonperforming
assets
|
|
$
|
30,360
|
|
|
$
|
33,528
|
|
|
$
|
35,202
|
|
The following table provides an analysis of the Company's
allowance for loan and lease losses:
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2016
|
|
June 30,
2016
|
|
September 30,
2015
|
|
September 30,
2016
|
|
September 30,
2015
|
|
|
(in
thousands)
|
Beginning
balance
|
|
$
|
69,304
|
|
|
$
|
69,264
|
|
|
$
|
69,257
|
|
|
$
|
68,172
|
|
|
$
|
69,569
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
Commercial
business
|
|
(2,159)
|
|
|
(2,941)
|
|
|
(2,570)
|
|
|
(8,873)
|
|
|
(6,082)
|
|
One-to-four family
residential real estate
|
|
—
|
|
|
(35)
|
|
|
—
|
|
|
(35)
|
|
|
(297)
|
|
Commercial and
multifamily residential real estate
|
|
—
|
|
|
(26)
|
|
|
(198)
|
|
|
(26)
|
|
|
(241)
|
|
Consumer
|
|
(383)
|
|
|
(334)
|
|
|
(311)
|
|
|
(983)
|
|
|
(1,521)
|
|
Purchased credit
impaired
|
|
(2,062)
|
|
|
(2,898)
|
|
|
(3,198)
|
|
|
(7,826)
|
|
|
(10,174)
|
|
Total
charge-offs
|
|
(4,604)
|
|
|
(6,234)
|
|
|
(6,277)
|
|
|
(17,743)
|
|
|
(18,315)
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
Commercial
business
|
|
854
|
|
|
753
|
|
|
623
|
|
|
2,269
|
|
|
1,450
|
|
One-to-four family
residential real estate
|
|
81
|
|
|
20
|
|
|
261
|
|
|
142
|
|
|
288
|
|
Commercial and
multifamily residential real estate
|
|
20
|
|
|
130
|
|
|
417
|
|
|
219
|
|
|
3,698
|
|
One-to-four family
residential real estate construction
|
|
21
|
|
|
5
|
|
|
105
|
|
|
280
|
|
|
141
|
|
Commercial and
multifamily residential real estate construction
|
|
107
|
|
|
1
|
|
|
2
|
|
|
109
|
|
|
7
|
|
Consumer
|
|
399
|
|
|
201
|
|
|
297
|
|
|
765
|
|
|
707
|
|
Purchased credit
impaired
|
|
2,216
|
|
|
1,524
|
|
|
1,533
|
|
|
5,291
|
|
|
5,262
|
|
Total
recoveries
|
|
3,698
|
|
|
2,634
|
|
|
3,238
|
|
|
9,075
|
|
|
11,553
|
|
Net
charge-offs
|
|
(906)
|
|
|
(3,600)
|
|
|
(3,039)
|
|
|
(8,668)
|
|
|
(6,762)
|
|
Provision for loan
and lease losses
|
|
1,866
|
|
|
3,640
|
|
|
2,831
|
|
|
10,760
|
|
|
6,242
|
|
Ending
balance
|
|
$
|
70,264
|
|
|
$
|
69,304
|
|
|
$
|
69,049
|
|
|
$
|
70,264
|
|
|
$
|
69,049
|
|
The allowance for loan losses to period end loans was 1.12% at
September 30, 2016 compared to 1.13% at June 30, 2016 and
1.18% at December 31, 2015. For the third quarter of 2016,
Columbia recorded a net provision
for loan and lease losses of $1.9
million compared to a net provision of $3.6 million for the linked quarter and
$2.8 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, we are
pleased with our low level of nonperforming assets, which for the
quarter remained below our long standing target of 50 basis points.
We first achieved this metric a year ago and still believe this
ratio will move within a range on either side of 50 basis points
within the normal course of business for this point in the credit
cycle."
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
|
|
Nine Months
Ended
|
|
|
September 30,
2016
|
|
June 30,
2016
|
|
September 30,
2015
|
|
September 30,
2016
|
|
September 30,
2015
|
|
|
(in
thousands)
|
Incremental accretion
income on FDIC purchased credit impaired loans
|
|
$
|
1,816
|
|
|
$
|
1,300
|
|
|
$
|
2,082
|
|
|
$
|
4,773
|
|
|
$
|
6,896
|
|
Incremental accretion
income on other FDIC acquired loans (1)
|
|
—
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
166
|
|
Recapture (provision)
for losses on FDIC purchased credit impaired loans
|
|
433
|
|
|
(91)
|
|
|
519
|
|
|
(311)
|
|
|
(2,566)
|
|
Change in FDIC
loss-sharing asset
|
|
(104)
|
|
|
(990)
|
|
|
(1,635)
|
|
|
(2,197)
|
|
|
(2,979)
|
|
FDIC clawback
liability expense
|
|
(29)
|
|
|
(70)
|
|
|
(174)
|
|
|
(308)
|
|
|
(167)
|
|
Pre-tax earnings
impact
|
|
$
|
2,116
|
|
|
$
|
149
|
|
|
$
|
826
|
|
|
$
|
1,957
|
|
|
$
|
1,350
|
|
|
|
|
|
|
(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
September 30, 2016, the accretable yield on purchased credit
impaired loans was $48.9 million.
Accretable yield is subject to change based upon expected future
loan cash flows, which are remeasured by Columbia on a quarterly basis.
The $104 thousand change in the
FDIC loss-sharing asset in the current quarter reduced noninterest
income and consisted primarily of $315
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.
Organizational Update
Ms. Dressel commented, "We continue to emphasize efficiencies
designed to improve our financial performance, always keeping in
mind our core value of customer service. To that end, we
consolidated two branches in Idaho
and one branch in Oregon during
the third quarter, and currently operate 143 locations throughout
our footprint."
For the seventh time, "American Banker" magazine recently named
Melanie Dressel one of the Top 25
Most Powerful Women in Banking. She ranked #22 on the annual list,
which highlights the professional achievements and business acumen
of the industry's leading women who are using their influence to
make banking and their communities better. Ms. Dressel commented,
"This recognition truly acknowledges the hard work and dedication
of the entire team of Columbia Bankers."
In recognition of the success and innovation of the bank's Warm
Hearts Winter Drive campaign to provide support for organizations
serving the homeless, Senior Vice President and Marketing Director
David Devine was the winner of the
prestigious 2016 George Bailey Distinguished Service Award by the
American Bankers Association Foundation. Hadley Robbins, Executive Vice President and
Chief Operating Officer said, "David's leadership initiating the
Warm Hearts drive and the tireless efforts of each employee to
ensure its success are a testament to Columbia Bank's core value of
community service."
Conference Call Information
Columbia's management will
discuss the third quarter 2016 results on a conference call
scheduled for Thursday, October 27,
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 #22782094.
A conference call replay will be available from approximately
4:00 p.m. PDT on October 27, 2016 through midnight PDT on November
3, 2016. The conference call replay can be accessed by
dialing 1-855-859-2056 and entering Conference ID code
#22782094.
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.
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
|
|
Nine Months
Ended
|
Unaudited
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Earnings
|
|
(dollars in
thousands except per share amounts)
|
Net interest
income
|
|
$
|
85,572
|
|
|
$
|
82,140
|
|
|
$
|
81,694
|
|
|
$
|
247,882
|
|
|
$
|
243,068
|
|
Provision for loan
and lease losses
|
|
$
|
1,866
|
|
|
$
|
3,640
|
|
|
$
|
2,831
|
|
|
$
|
10,760
|
|
|
$
|
6,242
|
|
Noninterest
income
|
|
$
|
23,166
|
|
|
$
|
21,940
|
|
|
$
|
22,499
|
|
|
$
|
65,752
|
|
|
$
|
66,728
|
|
Noninterest
expense
|
|
$
|
67,264
|
|
|
$
|
63,790
|
|
|
$
|
64,067
|
|
|
$
|
196,128
|
|
|
$
|
199,272
|
|
Acquisition-related
expense (included in noninterest expense)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
428
|
|
|
$
|
2,436
|
|
|
$
|
9,045
|
|
Net income
|
|
$
|
27,484
|
|
|
$
|
25,405
|
|
|
$
|
25,780
|
|
|
$
|
74,148
|
|
|
$
|
72,087
|
|
Per Common
Share
|
|
|
|
|
|
|
|
|
|
|
Earnings
(basic)
|
|
$
|
0.47
|
|
|
$
|
0.44
|
|
|
$
|
0.45
|
|
|
$
|
1.28
|
|
|
$
|
1.25
|
|
Earnings
(diluted)
|
|
$
|
0.47
|
|
|
$
|
0.44
|
|
|
$
|
0.45
|
|
|
$
|
1.28
|
|
|
$
|
1.25
|
|
Book value
|
|
$
|
21.96
|
|
|
$
|
21.93
|
|
|
$
|
21.69
|
|
|
$
|
21.96
|
|
|
$
|
21.69
|
|
Averages
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
9,493,451
|
|
|
$
|
9,230,791
|
|
|
$
|
8,672,692
|
|
|
$
|
9,225,466
|
|
|
$
|
8,570,825
|
|
Interest-earning
assets
|
|
$
|
8,544,876
|
|
|
$
|
8,285,183
|
|
|
$
|
7,711,531
|
|
|
$
|
8,279,639
|
|
|
$
|
7,600,954
|
|
Loans
|
|
$
|
6,179,163
|
|
|
$
|
5,999,428
|
|
|
$
|
5,712,614
|
|
|
$
|
6,002,656
|
|
|
$
|
5,557,771
|
|
Securities, including
Federal Home Loan Bank stock
|
|
$
|
2,351,093
|
|
|
$
|
2,262,012
|
|
|
$
|
1,945,174
|
|
|
$
|
2,253,877
|
|
|
$
|
1,996,527
|
|
Deposits
|
|
$
|
7,918,532
|
|
|
$
|
7,622,266
|
|
|
$
|
7,233,863
|
|
|
$
|
7,663,099
|
|
|
$
|
7,047,818
|
|
Interest-bearing
deposits
|
|
$
|
4,118,787
|
|
|
$
|
4,026,384
|
|
|
$
|
3,910,695
|
|
|
$
|
4,043,105
|
|
|
$
|
3,939,525
|
|
Interest-bearing
liabilities
|
|
$
|
4,295,485
|
|
|
$
|
4,264,792
|
|
|
$
|
4,007,198
|
|
|
$
|
4,228,531
|
|
|
$
|
4,119,815
|
|
Noninterest-bearing
deposits
|
|
$
|
3,799,745
|
|
|
$
|
3,595,882
|
|
|
$
|
3,323,168
|
|
|
$
|
3,619,994
|
|
|
$
|
3,108,293
|
|
Shareholders'
equity
|
|
$
|
1,278,588
|
|
|
$
|
1,267,670
|
|
|
$
|
1,239,830
|
|
|
$
|
1,268,261
|
|
|
$
|
1,242,853
|
|
Financial
Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.16
|
%
|
|
1.10
|
%
|
|
1.19
|
%
|
|
1.07
|
%
|
|
1.12
|
%
|
Return on average
common equity
|
|
8.60
|
%
|
|
8.02
|
%
|
|
8.32
|
%
|
|
7.80
|
%
|
|
7.74
|
%
|
Average equity to
average assets
|
|
13.47
|
%
|
|
13.73
|
%
|
|
14.30
|
%
|
|
13.75
|
%
|
|
14.50
|
%
|
Net interest margin
(tax equivalent)
|
|
4.13
|
%
|
|
4.10
|
%
|
|
4.37
|
%
|
|
4.12
|
%
|
|
4.39
|
%
|
Efficiency ratio (tax
equivalent) (1)
|
|
60.02
|
%
|
|
59.30
|
%
|
|
59.69
|
%
|
|
60.62
|
%
|
|
62.51
|
%
|
Operating efficiency
ratio (tax equivalent) (2)
|
|
60.47
|
%
|
|
58.81
|
%
|
|
58.85
|
%
|
|
59.58
|
%
|
|
60.86
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
December
31,
|
|
|
|
|
Period
end
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
Total
assets
|
|
$
|
9,586,754
|
|
|
$
|
9,353,651
|
|
|
8,951,697
|
|
|
|
|
|
Loans, net of
unearned income
|
|
$
|
6,259,757
|
|
|
$
|
6,107,143
|
|
|
5,815,027
|
|
|
|
|
|
Allowance for loan
and lease losses
|
|
$
|
70,264
|
|
|
$
|
69,304
|
|
|
68,172
|
|
|
|
|
|
Securities, including
Federal Home Loan Bank stock
|
|
$
|
2,372,724
|
|
|
$
|
2,297,713
|
|
|
2,170,416
|
|
|
|
|
|
Deposits
|
|
$
|
8,057,816
|
|
|
$
|
7,673,213
|
|
|
7,438,829
|
|
|
|
|
|
Core
deposits
|
|
$
|
7,809,064
|
|
|
$
|
7,447,963
|
|
|
7,238,713
|
|
|
|
|
|
Shareholders'
equity
|
|
$
|
1,276,735
|
|
|
$
|
1,274,479
|
|
|
1,242,128
|
|
|
|
|
|
Nonperforming
assets
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
21,366
|
|
|
$
|
22,915
|
|
|
21,464
|
|
|
|
|
|
Other real estate
owned ("OREO") and other personal property owned
("OPPO")
|
|
8,994
|
|
|
10,613
|
|
|
13,738
|
|
|
|
|
|
Total nonperforming
assets
|
|
$
|
30,360
|
|
|
$
|
33,528
|
|
|
$
|
35,202
|
|
|
|
|
|
Nonperforming loans
to period-end loans
|
|
0.34
|
%
|
|
0.38
|
%
|
|
0.37
|
%
|
|
|
|
|
Nonperforming assets
to period-end assets
|
|
0.32
|
%
|
|
0.36
|
%
|
|
0.39
|
%
|
|
|
|
|
Allowance for loan
and lease losses to period-end loans
|
|
1.12
|
%
|
|
1.13
|
%
|
|
1.17
|
%
|
|
|
|
|
Net loan
charge-offs
|
|
$
|
906
|
|
(3)
|
$
|
3,600
|
|
(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 page
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 September 30, 2016.
|
|
|
|
|
|
|
|
|
|
|
(4) For the three
months ended June 30, 2016.
|
|
|
|
|
|
|
|
|
(5) For the three
months ended December 31, 2015.
|
|
|
|
|
|
|
|
|
QUARTERLY
FINANCIAL STATISTICS
|
|
|
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
Three Months
Ended
|
Unaudited
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
|
(dollars in
thousands except per share)
|
Earnings
|
|
|
Net interest
income
|
|
$
|
85,572
|
|
|
$
|
82,140
|
|
|
$
|
80,170
|
|
|
$
|
81,819
|
|
|
$
|
81,694
|
|
Provision for loan
and lease losses
|
|
$
|
1,866
|
|
|
$
|
3,640
|
|
|
$
|
5,254
|
|
|
$
|
2,349
|
|
|
$
|
2,831
|
|
Noninterest
income
|
|
$
|
23,166
|
|
|
$
|
21,940
|
|
|
$
|
20,646
|
|
|
$
|
24,745
|
|
|
$
|
22,499
|
|
Noninterest
expense
|
|
$
|
67,264
|
|
|
$
|
63,790
|
|
|
$
|
65,074
|
|
|
$
|
66,877
|
|
|
$
|
64,067
|
|
Acquisition-related
expense (included in noninterest expense)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,436
|
|
|
$
|
1,872
|
|
|
$
|
428
|
|
Net income
|
|
$
|
27,484
|
|
|
$
|
25,405
|
|
|
$
|
21,259
|
|
|
$
|
26,740
|
|
|
$
|
25,780
|
|
Per Common
Share
|
|
|
|
|
|
|
|
|
|
|
Earnings
(basic)
|
|
$
|
0.47
|
|
|
$
|
0.44
|
|
|
$
|
0.37
|
|
|
$
|
0.46
|
|
|
$
|
0.45
|
|
Earnings
(diluted)
|
|
$
|
0.47
|
|
|
$
|
0.44
|
|
|
$
|
0.37
|
|
|
$
|
0.46
|
|
|
$
|
0.45
|
|
Book value
|
|
$
|
21.96
|
|
|
$
|
21.93
|
|
|
$
|
21.70
|
|
|
$
|
21.48
|
|
|
$
|
21.69
|
|
Averages
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
9,493,451
|
|
|
$
|
9,230,791
|
|
|
$
|
8,949,212
|
|
|
$
|
8,905,743
|
|
|
$
|
8,672,692
|
|
Interest-earning
assets
|
|
$
|
8,544,876
|
|
|
$
|
8,285,183
|
|
|
$
|
8,005,945
|
|
|
$
|
7,937,308
|
|
|
$
|
7,711,531
|
|
Loans
|
|
$
|
6,179,163
|
|
|
$
|
5,999,428
|
|
|
$
|
5,827,440
|
|
|
$
|
5,762,048
|
|
|
$
|
5,712,614
|
|
Securities, including
Federal Home Loan Bank stock
|
|
$
|
2,351,093
|
|
|
$
|
2,262,012
|
|
|
$
|
2,147,457
|
|
|
$
|
2,136,703
|
|
|
$
|
1,945,174
|
|
Deposits
|
|
$
|
7,918,532
|
|
|
$
|
7,622,266
|
|
|
$
|
7,445,693
|
|
|
$
|
7,440,628
|
|
|
$
|
7,233,863
|
|
Interest-bearing
deposits
|
|
$
|
4,118,787
|
|
|
$
|
4,026,384
|
|
|
$
|
3,983,314
|
|
|
$
|
3,933,001
|
|
|
$
|
3,910,695
|
|
Interest-bearing
liabilities
|
|
$
|
4,295,485
|
|
|
$
|
4,264,792
|
|
|
$
|
4,124,582
|
|
|
$
|
4,031,214
|
|
|
$
|
4,007,198
|
|
Noninterest-bearing
deposits
|
|
$
|
3,799,745
|
|
|
$
|
3,595,882
|
|
|
$
|
3,462,379
|
|
|
$
|
3,507,627
|
|
|
$
|
3,323,168
|
|
Shareholders'
equity
|
|
$
|
1,278,588
|
|
|
$
|
1,267,670
|
|
|
$
|
1,258,411
|
|
|
$
|
1,259,117
|
|
|
$
|
1,239,830
|
|
Financial
Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.16
|
%
|
|
1.10
|
%
|
|
0.95
|
%
|
|
1.20
|
%
|
|
1.19
|
%
|
Return on average
common equity
|
|
8.60
|
%
|
|
8.02
|
%
|
|
6.76
|
%
|
|
8.50
|
%
|
|
8.32
|
%
|
Average equity to
average assets
|
|
13.47
|
%
|
|
13.73
|
%
|
|
14.06
|
%
|
|
14.14
|
%
|
|
14.30
|
%
|
Net interest margin
(tax equivalent)
|
|
4.13
|
%
|
|
4.10
|
%
|
|
4.13
|
%
|
|
4.25
|
%
|
|
4.37
|
%
|
Period
end
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
9,586,754
|
|
|
$
|
9,353,651
|
|
|
$
|
9,035,932
|
|
|
$
|
8,951,697
|
|
|
$
|
8,755,984
|
|
Loans, net of
unearned income
|
|
$
|
6,259,757
|
|
|
$
|
6,107,143
|
|
|
$
|
5,877,283
|
|
|
$
|
5,815,027
|
|
|
$
|
5,746,511
|
|
Allowance for loan
and lease losses
|
|
$
|
70,264
|
|
|
$
|
69,304
|
|
|
$
|
69,264
|
|
|
$
|
68,172
|
|
|
$
|
69,049
|
|
Securities, including
Federal Home Loan Bank stock
|
|
$
|
2,372,724
|
|
|
$
|
2,297,713
|
|
|
$
|
2,196,407
|
|
|
$
|
2,170,416
|
|
|
$
|
2,037,666
|
|
Deposits
|
|
$
|
8,057,816
|
|
|
$
|
7,673,213
|
|
|
$
|
7,596,949
|
|
|
$
|
7,438,829
|
|
|
$
|
7,314,805
|
|
Core
deposits
|
|
$
|
7,809,064
|
|
|
$
|
7,447,963
|
|
|
$
|
7,384,622
|
|
|
$
|
7,238,713
|
|
|
$
|
7,104,554
|
|
Shareholders'
equity
|
|
$
|
1,276,735
|
|
|
$
|
1,274,479
|
|
|
$
|
1,260,788
|
|
|
$
|
1,242,128
|
|
|
$
|
1,254,136
|
|
Nonperforming,
assets
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
21,366
|
|
|
$
|
22,915
|
|
|
$
|
36,891
|
|
|
$
|
21,464
|
|
|
$
|
19,080
|
|
OREO and
OPPO
|
|
8,994
|
|
|
10,613
|
|
|
12,427
|
|
|
13,738
|
|
|
19,475
|
|
Total nonperforming
assets
|
|
$
|
30,360
|
|
|
$
|
33,528
|
|
|
$
|
49,318
|
|
|
$
|
35,202
|
|
|
$
|
38,555
|
|
Nonperforming loans
to period-end loans
|
|
0.34
|
%
|
|
0.38
|
%
|
|
0.63
|
%
|
|
0.37
|
%
|
|
0.33
|
%
|
Nonperforming assets
to period-end assets
|
|
0.32
|
%
|
|
0.36
|
%
|
|
0.55
|
%
|
|
0.39
|
%
|
|
0.44
|
%
|
Allowance for loan
and lease losses to period-end loans
|
|
1.12
|
%
|
|
1.13
|
%
|
|
1.18
|
%
|
|
1.17
|
%
|
|
1.20
|
%
|
Net loan
charge-offs
|
|
$
|
906
|
|
|
$
|
3,600
|
|
|
$
|
4,162
|
|
|
$
|
3,226
|
|
|
$
|
3,039
|
|
LOAN PORTFOLIO
COMPOSITION
|
|
|
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
Loan Portfolio
Composition - Dollars
|
|
(dollars in
thousands)
|
Commercial
business
|
|
$
|
2,630,017
|
|
|
$
|
2,518,682
|
|
|
$
|
2,401,193
|
|
|
$
|
2,362,575
|
|
|
$
|
2,354,731
|
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
One-to-four family
residential
|
|
168,511
|
|
|
172,957
|
|
|
175,050
|
|
|
176,295
|
|
|
177,108
|
|
Commercial and
multifamily residential
|
|
2,686,783
|
|
|
2,651,476
|
|
|
2,520,352
|
|
|
2,491,736
|
|
|
2,449,847
|
|
Total real
estate
|
|
2,855,294
|
|
|
2,824,433
|
|
|
2,695,402
|
|
|
2,668,031
|
|
|
2,626,955
|
|
Real estate
construction:
|
|
|
|
|
|
|
|
|
|
|
One-to-four family
residential
|
|
130,163
|
|
|
129,195
|
|
|
133,447
|
|
|
135,874
|
|
|
136,783
|
|
Commercial and
multifamily residential
|
|
202,014
|
|
|
185,315
|
|
|
183,548
|
|
|
167,413
|
|
|
134,097
|
|
Total real estate
construction
|
|
332,177
|
|
|
314,510
|
|
|
316,995
|
|
|
303,287
|
|
|
270,880
|
|
Consumer
|
|
325,741
|
|
|
325,632
|
|
|
329,902
|
|
|
342,601
|
|
|
348,315
|
|
Purchased credit
impaired
|
|
152,764
|
|
|
161,107
|
|
|
173,201
|
|
|
180,906
|
|
|
191,066
|
|
Subtotal
loans
|
|
6,295,993
|
|
|
6,144,364
|
|
|
5,916,693
|
|
|
5,857,400
|
|
|
5,791,947
|
|
Less: Net
unearned income
|
|
(36,236)
|
|
|
(37,221)
|
|
|
(39,410)
|
|
|
(42,373)
|
|
|
(45,436)
|
|
Loans, net of
unearned income
|
|
6,259,757
|
|
|
6,107,143
|
|
|
5,877,283
|
|
|
5,815,027
|
|
|
5,746,511
|
|
Less: Allowance
for loan and lease losses
|
|
(70,264)
|
|
|
(69,304)
|
|
|
(69,264)
|
|
|
(68,172)
|
|
|
(69,049)
|
|
Total loans,
net
|
|
6,189,493
|
|
|
6,037,839
|
|
|
5,808,019
|
|
|
5,746,855
|
|
|
5,677,462
|
|
Loans held for
sale
|
|
$
|
3,361
|
|
|
$
|
7,649
|
|
|
$
|
3,681
|
|
|
$
|
4,509
|
|
|
$
|
6,637
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Portfolio
Composition - Percentages
|
|
September
30,
2016
|
|
June
30,
2016
|
|
March
31,
2016
|
|
December
31,
2015
|
|
September
30,
2015
|
Commercial
business
|
|
42.0
|
%
|
|
41.2
|
%
|
|
40.9
|
%
|
|
40.6
|
%
|
|
41.0
|
%
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
One-to-four family
residential
|
|
2.7
|
%
|
|
2.8
|
%
|
|
3.0
|
%
|
|
3.0
|
%
|
|
3.1
|
%
|
Commercial and
multifamily residential
|
|
43.0
|
%
|
|
43.6
|
%
|
|
42.9
|
%
|
|
42.9
|
%
|
|
42.6
|
%
|
Total real
estate
|
|
45.7
|
%
|
|
46.4
|
%
|
|
45.9
|
%
|
|
45.9
|
%
|
|
45.7
|
%
|
Real estate
construction:
|
|
|
|
|
|
|
|
|
|
|
One-to-four family
residential
|
|
2.1
|
%
|
|
2.1
|
%
|
|
2.3
|
%
|
|
2.3
|
%
|
|
2.4
|
%
|
Commercial and
multifamily residential
|
|
3.2
|
%
|
|
3.0
|
%
|
|
3.1
|
%
|
|
2.9
|
%
|
|
2.3
|
%
|
Total real estate
construction
|
|
5.3
|
%
|
|
5.1
|
%
|
|
5.4
|
%
|
|
5.2
|
%
|
|
4.7
|
%
|
Consumer
|
|
5.2
|
%
|
|
5.3
|
%
|
|
5.6
|
%
|
|
5.9
|
%
|
|
6.1
|
%
|
Purchased credit
impaired
|
|
2.4
|
%
|
|
2.6
|
%
|
|
2.9
|
%
|
|
3.1
|
%
|
|
3.3
|
%
|
Subtotal
loans
|
|
100.6
|
%
|
|
100.6
|
%
|
|
100.7
|
%
|
|
100.7
|
%
|
|
100.8
|
%
|
Less: Net
unearned income
|
|
(0.6)
|
%
|
|
(0.6)
|
%
|
|
(0.7)
|
%
|
|
(0.7)
|
%
|
|
(0.8)
|
%
|
Loans, net of
unearned income
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
DEPOSIT
COMPOSITION
|
|
|
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
Deposit
Composition - Dollars
|
|
(dollars in
thousands)
|
Core
deposits:
|
|
|
|
|
|
|
|
|
|
|
Demand and other
non-interest bearing
|
|
$
|
3,942,434
|
|
|
$
|
3,652,951
|
|
|
$
|
3,553,468
|
|
|
$
|
3,507,358
|
|
|
$
|
3,386,968
|
|
Interest bearing
demand
|
|
963,242
|
|
|
957,548
|
|
|
958,469
|
|
|
925,909
|
|
|
911,686
|
|
Money
market
|
|
1,873,376
|
|
|
1,818,337
|
|
|
1,838,364
|
|
|
1,788,552
|
|
|
1,776,087
|
|
Savings
|
|
714,047
|
|
|
692,694
|
|
|
695,588
|
|
|
657,016
|
|
|
651,695
|
|
Certificates of
deposit, less than $250,000
|
|
315,965
|
|
|
326,433
|
|
|
338,733
|
|
|
359,878
|
|
|
378,118
|
|
Total core
deposits
|
|
7,809,064
|
|
|
7,447,963
|
|
|
7,384,622
|
|
|
7,238,713
|
|
|
7,104,554
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of
deposit, $250,000 or more
|
|
79,590
|
|
|
72,812
|
|
|
70,571
|
|
|
72,126
|
|
|
65,699
|
|
Certificates of
deposit insured by CDARS®
|
|
16,951
|
|
|
22,755
|
|
|
24,752
|
|
|
26,901
|
|
|
26,975
|
|
Brokered money market
accounts
|
|
152,151
|
|
|
129,590
|
|
|
116,878
|
|
|
100,854
|
|
|
117,196
|
|
Subtotal
|
|
8,057,756
|
|
|
7,673,120
|
|
|
7,596,823
|
|
|
7,438,594
|
|
|
7,314,424
|
|
Premium resulting
from acquisition date fair value adjustment
|
|
60
|
|
|
93
|
|
|
126
|
|
|
235
|
|
|
381
|
|
Total
deposits
|
|
$
|
8,057,816
|
|
|
$
|
7,673,213
|
|
|
$
|
7,596,949
|
|
|
$
|
7,438,829
|
|
|
$
|
7,314,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit Composition -
Percentages
|
|
September
30,
2016
|
|
June
30,
2016
|
|
March
31,
2016
|
|
December
31,
2015
|
|
September
30,
2015
|
Core
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand and other
non-interest bearing
|
|
48.9
|
%
|
|
47.6
|
%
|
|
46.8
|
%
|
|
47.2
|
%
|
|
46.3
|
%
|
Interest bearing
demand
|
|
12.0
|
%
|
|
12.5
|
%
|
|
12.6
|
%
|
|
12.4
|
%
|
|
12.5
|
%
|
Money
market
|
|
23.2
|
%
|
|
23.7
|
%
|
|
24.2
|
%
|
|
24.0
|
%
|
|
24.3
|
%
|
Savings
|
|
8.9
|
%
|
|
9.0
|
%
|
|
9.2
|
%
|
|
8.8
|
%
|
|
8.9
|
%
|
Certificates of
deposit, less than $250,000
|
|
3.9
|
%
|
|
4.3
|
%
|
|
4.5
|
%
|
|
4.8
|
%
|
|
5.2
|
%
|
Total core
deposits
|
|
96.9
|
%
|
|
97.1
|
%
|
|
97.3
|
%
|
|
97.2
|
%
|
|
97.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of
deposit, $250,000 or more
|
|
1.0
|
%
|
|
0.9
|
%
|
|
0.9
|
%
|
|
1.0
|
%
|
|
0.8
|
%
|
Certificates of
deposit insured by CDARS®
|
|
0.2
|
%
|
|
0.3
|
%
|
|
0.3
|
%
|
|
0.4
|
%
|
|
0.4
|
%
|
Brokered money market
accounts
|
|
1.9
|
%
|
|
1.7
|
%
|
|
1.5
|
%
|
|
1.4
|
%
|
|
1.6
|
%
|
Total
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
Unaudited
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
|
2016
|
|
2015
(1)
|
|
2016
|
|
2015
(1)
|
|
|
(in thousands
except per share)
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
74,956
|
|
|
$
|
71,651
|
|
|
$
|
72,242
|
|
|
$
|
216,923
|
|
|
$
|
214,808
|
|
Taxable
securities
|
|
8,988
|
|
|
8,829
|
|
|
7,472
|
|
|
25,834
|
|
|
22,258
|
|
Tax-exempt
securities
|
|
2,799
|
|
|
2,795
|
|
|
2,920
|
|
|
8,397
|
|
|
8,972
|
|
Deposits in
banks
|
|
15
|
|
|
28
|
|
|
31
|
|
|
81
|
|
|
84
|
|
Total interest
income
|
|
86,758
|
|
|
83,303
|
|
|
82,665
|
|
|
251,235
|
|
|
246,122
|
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
823
|
|
|
787
|
|
|
756
|
|
|
2,352
|
|
|
2,244
|
|
Federal Home Loan
Bank advances
|
|
229
|
|
|
241
|
|
|
78
|
|
|
594
|
|
|
391
|
|
Other
borrowings
|
|
134
|
|
|
135
|
|
|
137
|
|
|
407
|
|
|
419
|
|
Total interest
expense
|
|
1,186
|
|
|
1,163
|
|
|
971
|
|
|
3,353
|
|
|
3,054
|
|
Net Interest
Income
|
|
85,572
|
|
|
82,140
|
|
|
81,694
|
|
|
247,882
|
|
|
243,068
|
|
Provision for loan
and lease losses
|
|
1,866
|
|
|
3,640
|
|
|
2,831
|
|
|
10,760
|
|
|
6,242
|
|
Net interest income
after provision for loan and lease losses
|
|
83,706
|
|
|
78,500
|
|
|
78,863
|
|
|
237,122
|
|
|
236,826
|
|
Noninterest
Income
|
|
|
|
|
|
|
|
|
|
|
Deposit account and
treasury management fees (1)
|
|
7,222
|
|
|
7,093
|
|
|
7,230
|
|
|
21,304
|
|
|
21,441
|
|
Card revenue
(1)
|
|
6,114
|
|
|
6,051
|
|
|
5,849
|
|
|
17,817
|
|
|
16,914
|
|
Financial services
and trust revenue (1)
|
|
2,746
|
|
|
2,780
|
|
|
3,316
|
|
|
8,347
|
|
|
9,657
|
|
Loan revenue
(1)
|
|
2,949
|
|
|
2,802
|
|
|
3,200
|
|
|
8,013
|
|
|
8,125
|
|
Merchant processing
revenue
|
|
2,352
|
|
|
2,272
|
|
|
2,422
|
|
|
6,726
|
|
|
6,802
|
|
Bank owned life
insurance
|
|
1,073
|
|
|
1,270
|
|
|
1,086
|
|
|
3,459
|
|
|
3,370
|
|
Investment securities
gains, net
|
|
572
|
|
|
229
|
|
|
236
|
|
|
1,174
|
|
|
1,300
|
|
Change in FDIC
loss-sharing asset
|
|
(104)
|
|
|
(990)
|
|
|
(1,635)
|
|
|
(2,197)
|
|
|
(2,979)
|
|
Other (1)
|
|
242
|
|
|
433
|
|
|
795
|
|
|
1,109
|
|
|
2,098
|
|
Total noninterest
income
|
|
23,166
|
|
|
21,940
|
|
|
22,499
|
|
|
65,752
|
|
|
66,728
|
|
Noninterest
Expense
|
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
|
38,476
|
|
|
37,291
|
|
|
35,175
|
|
|
112,086
|
|
|
112,721
|
|
Occupancy
|
|
8,219
|
|
|
7,652
|
|
|
8,101
|
|
|
26,044
|
|
|
24,781
|
|
Merchant processing
expense
|
|
1,161
|
|
|
1,118
|
|
|
1,090
|
|
|
3,312
|
|
|
3,146
|
|
Advertising and
promotion
|
|
1,993
|
|
|
1,043
|
|
|
1,354
|
|
|
3,878
|
|
|
3,480
|
|
Data
processing
|
|
4,275
|
|
|
3,929
|
|
|
3,796
|
|
|
12,350
|
|
|
13,022
|
|
Legal and
professional fees
|
|
2,264
|
|
|
1,777
|
|
|
2,173
|
|
|
5,366
|
|
|
7,527
|
|
Taxes, licenses and
fees
|
|
1,491
|
|
|
1,298
|
|
|
1,344
|
|
|
4,079
|
|
|
4,003
|
|
Regulatory
premiums
|
|
776
|
|
|
1,068
|
|
|
1,084
|
|
|
2,985
|
|
|
3,626
|
|
Net cost (benefit) of
operation of other real estate owned
|
|
(249)
|
|
|
84
|
|
|
240
|
|
|
(61)
|
|
|
(1,569)
|
|
Amortization of
intangibles
|
|
1,460
|
|
|
1,483
|
|
|
1,695
|
|
|
4,526
|
|
|
5,230
|
|
Other
|
|
7,398
|
|
|
7,047
|
|
|
8,015
|
|
|
21,563
|
|
|
23,305
|
|
Total noninterest
expense
|
|
67,264
|
|
|
63,790
|
|
|
64,067
|
|
|
196,128
|
|
|
199,272
|
|
Income before income
taxes
|
|
39,608
|
|
|
36,650
|
|
|
37,295
|
|
|
106,746
|
|
|
104,282
|
|
Provision for income
taxes
|
|
12,124
|
|
|
11,245
|
|
|
11,515
|
|
|
32,598
|
|
|
32,195
|
|
Net
Income
|
|
$
|
27,484
|
|
|
$
|
25,405
|
|
|
$
|
25,780
|
|
|
$
|
74,148
|
|
|
$
|
72,087
|
|
Earnings per common
share
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.47
|
|
|
$
|
0.44
|
|
|
$
|
0.45
|
|
|
$
|
1.28
|
|
|
$
|
1.25
|
|
Diluted
|
|
$
|
0.47
|
|
|
$
|
0.44
|
|
|
$
|
0.45
|
|
|
$
|
1.28
|
|
|
$
|
1.25
|
|
Dividends paid per
common share
|
|
$
|
0.39
|
|
|
$
|
0.37
|
|
|
$
|
0.34
|
|
|
$
|
1.14
|
|
|
$
|
0.98
|
|
Weighted average
number of common shares outstanding
|
|
57,215
|
|
|
57,185
|
|
|
57,051
|
|
|
57,173
|
|
|
57,007
|
|
Weighted average
number of diluted common shares outstanding
|
|
57,225
|
|
|
57,195
|
|
|
57,064
|
|
|
57,183
|
|
|
57,021
|
|
|
|
|
|
|
(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
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
December
31,
|
|
|
|
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
(in
thousands)
|
ASSETS
|
|
|
Cash and due from
banks
|
|
|
|
|
|
|
$
|
180,839
|
|
|
$
|
167,172
|
|
|
$
|
166,929
|
|
Interest-earning
deposits with banks
|
|
|
|
|
|
|
11,225
|
|
|
11,216
|
|
|
8,373
|
|
Total cash and cash
equivalents
|
|
|
|
|
|
|
192,064
|
|
|
178,388
|
|
|
175,302
|
|
Securities available
for sale at fair value (amortized cost of $2,324,721, $2,237,264
and $2,157,610, respectively)
|
|
2,360,084
|
|
|
2,279,552
|
|
|
2,157,694
|
|
Federal Home Loan
Bank stock at cost
|
|
|
|
|
|
|
12,640
|
|
|
18,161
|
|
|
12,722
|
|
Loans held for
sale
|
|
|
|
|
|
|
3,361
|
|
|
7,649
|
|
|
4,509
|
|
Loans, net of
unearned income of ($36,236), ($37,221) and ($42,373),
respectively
|
|
6,259,757
|
|
|
6,107,143
|
|
|
5,815,027
|
|
Less: allowance for
loan and lease losses
|
|
|
|
|
|
|
70,264
|
|
|
69,304
|
|
|
68,172
|
|
Loans, net
|
|
|
|
|
|
|
6,189,493
|
|
|
6,037,839
|
|
|
5,746,855
|
|
FDIC loss-sharing
asset
|
|
|
|
|
|
|
3,592
|
|
|
4,266
|
|
|
6,568
|
|
Interest
receivable
|
|
|
|
|
|
|
31,606
|
|
|
29,738
|
|
|
27,877
|
|
Premises and
equipment, net
|
|
|
|
|
|
|
152,908
|
|
|
156,446
|
|
|
164,239
|
|
Other real estate
owned
|
|
|
|
|
|
|
8,994
|
|
|
10,613
|
|
|
13,738
|
|
Goodwill
|
|
|
|
|
|
|
382,762
|
|
|
382,762
|
|
|
382,762
|
|
Other intangible
assets, net
|
|
|
|
|
|
|
19,051
|
|
|
20,511
|
|
|
23,577
|
|
Other
assets
|
|
|
|
|
|
|
230,199
|
|
|
227,726
|
|
|
235,854
|
|
Total
assets
|
|
|
|
|
|
|
$
|
9,586,754
|
|
|
$
|
9,353,651
|
|
|
$
|
8,951,697
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
|
|
|
|
|
$
|
3,942,434
|
|
|
$
|
3,652,951
|
|
|
$
|
3,507,358
|
|
Interest-bearing
|
|
|
|
|
|
|
4,115,382
|
|
|
4,020,262
|
|
|
3,931,471
|
|
Total
deposits
|
|
|
|
|
|
|
8,057,816
|
|
|
7,673,213
|
|
|
7,438,829
|
|
Federal Home Loan
Bank advances
|
|
|
|
|
|
|
66,502
|
|
|
204,512
|
|
|
68,531
|
|
Securities sold under
agreements to repurchase
|
|
69,189
|
|
|
89,218
|
|
|
99,699
|
|
Other
liabilities
|
|
|
|
|
|
|
116,512
|
|
|
112,229
|
|
|
102,510
|
|
Total
liabilities
|
|
|
|
|
|
|
8,310,019
|
|
|
8,079,172
|
|
|
7,709,569
|
|
Commitments and
contingent liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
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
|
58,043
|
|
|
58,025
|
|
|
57,724
|
|
|
994,098
|
|
|
992,343
|
|
|
990,281
|
|
Retained
earnings
|
|
|
|
|
|
|
263,915
|
|
|
259,108
|
|
|
255,925
|
|
Accumulated other
comprehensive income (loss)
|
|
|
|
|
|
16,505
|
|
|
20,811
|
|
|
(6,295)
|
|
Total shareholders'
equity
|
|
|
|
|
|
|
1,276,735
|
|
|
1,274,479
|
|
|
1,242,128
|
|
Total liabilities and
shareholders' equity
|
|
|
|
|
|
$
|
9,586,754
|
|
|
$
|
9,353,651
|
|
|
$
|
8,951,697
|
|
AVERAGE
BALANCES AND RATES
|
|
|
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
September 30,
2016
|
|
September 30,
2015
|
|
|
Average
Balances
|
|
Interest
Earned / Paid
|
|
Average
Rate
|
|
Average
Balances
|
|
Interest
Earned / Paid
|
|
Average
Rate
|
|
|
(dollars in
thousands)
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
net (1)(2)
|
|
$
|
6,179,163
|
|
|
$
|
76,195
|
|
|
4.93
|
%
|
|
$
|
5,712,614
|
|
|
$
|
73,231
|
|
|
5.13
|
%
|
Taxable
securities
|
|
1,870,466
|
|
|
8,988
|
|
|
1.92
|
%
|
|
1,498,211
|
|
|
7,472
|
|
|
1.99
|
%
|
Tax exempt securities
(2)
|
|
480,627
|
|
|
4,306
|
|
|
3.58
|
%
|
|
446,963
|
|
|
4,491
|
|
|
4.02
|
%
|
Interest-earning
deposits with banks
|
|
14,620
|
|
|
15
|
|
|
0.41
|
%
|
|
53,743
|
|
|
31
|
|
|
0.23
|
%
|
Total
interest-earning assets
|
|
8,544,876
|
|
|
$
|
89,504
|
|
|
4.19
|
%
|
|
7,711,531
|
|
|
$
|
85,225
|
|
|
4.42
|
%
|
Other earning
assets
|
|
155,663
|
|
|
|
|
|
|
149,895
|
|
|
|
|
|
Noninterest-earning
assets
|
|
792,912
|
|
|
|
|
|
|
811,266
|
|
|
|
|
|
Total
assets
|
|
$
|
9,493,451
|
|
|
|
|
|
|
$
|
8,672,692
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
Certificates of
deposit
|
|
$
|
417,887
|
|
|
$
|
124
|
|
|
0.12
|
%
|
|
$
|
480,132
|
|
|
$
|
213
|
|
|
0.18
|
%
|
Savings
accounts
|
|
705,923
|
|
|
18
|
|
|
0.01
|
%
|
|
643,672
|
|
|
17
|
|
|
0.01
|
%
|
Interest-bearing
demand
|
|
961,527
|
|
|
189
|
|
|
0.08
|
%
|
|
916,388
|
|
|
158
|
|
|
0.07
|
%
|
Money market
accounts
|
|
2,033,450
|
|
|
492
|
|
|
0.10
|
%
|
|
1,870,503
|
|
|
368
|
|
|
0.08
|
%
|
Total
interest-bearing deposits
|
|
4,118,787
|
|
|
823
|
|
|
0.08
|
%
|
|
3,910,695
|
|
|
756
|
|
|
0.08
|
%
|
Federal Home Loan
Bank advances
|
|
96,931
|
|
|
229
|
|
|
0.95
|
%
|
|
13,968
|
|
|
78
|
|
|
2.23
|
%
|
Other
borrowings
|
|
79,767
|
|
|
134
|
|
|
0.67
|
%
|
|
82,535
|
|
|
137
|
|
|
0.66
|
%
|
Total
interest-bearing liabilities
|
|
4,295,485
|
|
|
$
|
1,186
|
|
|
0.11
|
%
|
|
4,007,198
|
|
|
$
|
971
|
|
|
0.10
|
%
|
Noninterest-bearing
deposits
|
|
3,799,745
|
|
|
|
|
|
|
3,323,168
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
119,633
|
|
|
|
|
|
|
102,496
|
|
|
|
|
|
Shareholders'
equity
|
|
1,278,588
|
|
|
|
|
|
|
1,239,830
|
|
|
|
|
|
Total
liabilities & shareholders' equity
|
|
$
|
9,493,451
|
|
|
|
|
|
|
$
|
8,672,692
|
|
|
|
|
|
Net interest income
(tax equivalent)
|
|
$
|
88,318
|
|
|
|
|
|
|
$
|
84,254
|
|
|
|
Net interest margin
(tax equivalent)
|
|
4.13
|
%
|
|
|
|
|
|
4.37
|
%
|
|
|
|
|
(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 $1.4 million and
$1.2 million for the three month periods ended September 30,
2016 and September 30, 2015, respectively. The incremental
accretion on acquired loans was $4.6 million and $6.4 million for
the three months ended September 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 $1.2 million and $989
thousand for the three months ended September 30, 2016 and
2015, respectively. The tax equivalent yield adjustment to interest
earned on tax exempt securities was $1.5 million for both three
months ended September 30, 2016 and 2015.
|
AVERAGE
BALANCES AND RATES
|
|
|
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
September 30,
2016
|
|
June 30,
2016
|
|
|
Average
Balances
|
|
Interest
Earned / Paid
|
|
Average
Rate
|
|
Average
Balances
|
|
Interest
Earned / Paid
|
|
Average
Rate
|
|
|
(dollars in
thousands)
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
net (1)(2)
|
|
$
|
6,179,163
|
|
|
$
|
76,195
|
|
|
4.93
|
%
|
|
$
|
5,999,428
|
|
|
$
|
72,952
|
|
|
4.86
|
%
|
Taxable
securities
|
|
1,870,466
|
|
|
8,988
|
|
|
1.92
|
%
|
|
1,801,195
|
|
|
8,829
|
|
|
1.96
|
%
|
Tax exempt securities
(2)
|
|
480,627
|
|
|
4,306
|
|
|
3.58
|
%
|
|
460,817
|
|
|
4,300
|
|
|
3.73
|
%
|
Interest-earning
deposits with banks
|
|
14,620
|
|
|
15
|
|
|
0.41
|
%
|
|
23,743
|
|
|
28
|
|
|
0.47
|
%
|
Total
interest-earning assets
|
|
8,544,876
|
|
|
$
|
89,504
|
|
|
4.19
|
%
|
|
8,285,183
|
|
|
$
|
86,109
|
|
|
4.16
|
%
|
Other earning
assets
|
|
155,663
|
|
|
|
|
|
|
154,843
|
|
|
|
|
|
Noninterest-earning
assets
|
|
792,912
|
|
|
|
|
|
|
790,765
|
|
|
|
|
|
Total
assets
|
|
$
|
9,493,451
|
|
|
|
|
|
|
$
|
9,230,791
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
Certificates of
deposit
|
|
$
|
417,887
|
|
|
$
|
124
|
|
|
0.12
|
%
|
|
$
|
428,279
|
|
|
$
|
140
|
|
|
0.13
|
%
|
Savings
accounts
|
|
705,923
|
|
|
18
|
|
|
0.01
|
%
|
|
692,179
|
|
|
18
|
|
|
0.01
|
%
|
Interest-bearing
demand
|
|
961,527
|
|
|
189
|
|
|
0.08
|
%
|
|
949,669
|
|
|
183
|
|
|
0.08
|
%
|
Money market
accounts
|
|
2,033,450
|
|
|
492
|
|
|
0.10
|
%
|
|
1,956,257
|
|
|
446
|
|
|
0.09
|
%
|
Total
interest-bearing deposits
|
|
4,118,787
|
|
|
823
|
|
|
0.08
|
%
|
|
4,026,384
|
|
|
787
|
|
|
0.08
|
%
|
Federal Home Loan
Bank advances
|
|
96,931
|
|
|
229
|
|
|
0.95
|
%
|
|
161,637
|
|
|
241
|
|
|
0.60
|
%
|
Other
borrowings
|
|
79,767
|
|
|
134
|
|
|
0.67
|
%
|
|
76,771
|
|
|
135
|
|
|
0.70
|
%
|
Total
interest-bearing liabilities
|
|
4,295,485
|
|
|
$
|
1,186
|
|
|
0.11
|
%
|
|
4,264,792
|
|
|
$
|
1,163
|
|
|
0.11
|
%
|
Noninterest-bearing
deposits
|
|
3,799,745
|
|
|
|
|
|
|
3,595,882
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
119,633
|
|
|
|
|
|
|
102,447
|
|
|
|
|
|
Shareholders'
equity
|
|
1,278,588
|
|
|
|
|
|
|
1,267,670
|
|
|
|
|
|
Total
liabilities & shareholders' equity
|
|
$
|
9,493,451
|
|
|
|
|
|
|
$
|
9,230,791
|
|
|
|
|
|
Net interest income
(tax equivalent)
|
|
$
|
88,318
|
|
|
|
|
|
|
$
|
84,946
|
|
|
|
Net interest margin
(tax equivalent)
|
|
4.13
|
%
|
|
|
|
|
|
4.10
|
%
|
|
|
|
|
(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 $1.4 million and
$1.2 million for the three month periods ended September 30,
2016 and June 30, 2016. The incremental accretion on acquired
loans was $4.6 million and $4.4 million for the three months ended
September 30, 2016 and June 30, 2016,
respectively.
|
(2)
|
Tax-exempt income is
calculated on a tax equivalent basis. The tax equivalent yield
adjustment to interest earned on loans was $1.2 million and $1.3
million for the three months ended September 30, 2016 and
June 30, 2016, respectively. The tax equivalent yield
adjustment to interest earned on tax exempt securities was $1.5
million and $1.6 million for the three month periods ended
September 30, 2016 and June 30, 2016,
respectively.
|
AVERAGE
BALANCES AND RATES
|
|
|
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
Nine Months Ended
September 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)
|
|
$
|
6,002,656
|
|
|
$
|
220,445
|
|
|
4.90
|
%
|
|
$
|
5,557,771
|
|
|
$
|
217,128
|
|
|
5.21
|
%
|
Taxable
securities
|
|
1,787,288
|
|
|
25,834
|
|
|
1.93
|
%
|
|
1,541,018
|
|
|
22,258
|
|
|
1.93
|
%
|
Tax exempt securities
(2)
|
|
466,589
|
|
|
12,918
|
|
|
3.69
|
%
|
|
455,509
|
|
|
13,802
|
|
|
4.04
|
%
|
Interest-earning
deposits with banks
|
|
23,106
|
|
|
81
|
|
|
0.47
|
%
|
|
46,656
|
|
|
84
|
|
|
0.24
|
%
|
Total
interest-earning assets
|
|
8,279,639
|
|
|
$
|
259,278
|
|
|
4.18
|
%
|
|
7,600,954
|
|
|
$
|
253,272
|
|
|
4.44
|
%
|
Other earning
assets
|
|
154,950
|
|
|
|
|
|
|
148,189
|
|
|
|
|
|
Noninterest-earning
assets
|
|
790,877
|
|
|
|
|
|
|
821,682
|
|
|
|
|
|
Total
assets
|
|
$
|
9,225,466
|
|
|
|
|
|
|
$
|
8,570,825
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
Certificates of
deposit
|
|
$
|
431,643
|
|
|
$
|
408
|
|
|
0.13
|
%
|
|
$
|
490,720
|
|
|
$
|
689
|
|
|
0.19
|
%
|
Savings
accounts
|
|
691,379
|
|
|
53
|
|
|
0.01
|
%
|
|
631,979
|
|
|
53
|
|
|
0.01
|
%
|
Interest-bearing
demand
|
|
946,437
|
|
|
541
|
|
|
0.08
|
%
|
|
1,003,544
|
|
|
451
|
|
|
0.06
|
%
|
Money market
accounts
|
|
1,973,646
|
|
|
1,350
|
|
|
0.09
|
%
|
|
1,813,282
|
|
|
1,051
|
|
|
0.08
|
%
|
Total
interest-bearing deposits
|
|
4,043,105
|
|
|
2,352
|
|
|
0.08
|
%
|
|
3,939,525
|
|
|
2,244
|
|
|
0.08
|
%
|
Federal Home Loan
Bank advances
|
|
103,023
|
|
|
594
|
|
|
0.77
|
%
|
|
88,121
|
|
|
391
|
|
|
0.59
|
%
|
Other
borrowings
|
|
82,403
|
|
|
407
|
|
|
0.66
|
%
|
|
92,169
|
|
|
419
|
|
|
0.61
|
%
|
Total
interest-bearing liabilities
|
|
4,228,531
|
|
|
$
|
3,353
|
|
|
0.11
|
%
|
|
4,119,815
|
|
|
$
|
3,054
|
|
|
0.10
|
%
|
Noninterest-bearing
deposits
|
|
3,619,994
|
|
|
|
|
|
|
3,108,293
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
108,680
|
|
|
|
|
|
|
99,864
|
|
|
|
|
|
Shareholders'
equity
|
|
1,268,261
|
|
|
|
|
|
|
1,242,853
|
|
|
|
|
|
Total
liabilities & shareholders' equity
|
|
$
|
9,225,466
|
|
|
|
|
|
|
$
|
8,570,825
|
|
|
|
|
|
Net interest income
(tax equivalent)
|
|
$
|
255,925
|
|
|
|
|
|
|
$
|
250,218
|
|
|
|
Net interest margin
(tax equivalent)
|
|
4.12
|
%
|
|
|
|
|
|
4.39
|
%
|
|
|
|
|
(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 $3.6 million and
$3.8 million for the nine months ended September 30, 2016 and
2015, respectively. The incremental accretion on acquired loans was
$13.7 million and $21.2 million for the nine months ended
September 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 $3.5 million and $2.3
million for the nine months ended September 30, 2016 and 2015,
respectively. The tax equivalent yield adjustment to interest
earned on tax exempt securities was $4.5 million and $4.8 million
for the nine months ended September 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
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating net
interest margin non-GAAP reconciliation:
|
|
(dollars in
thousands)
|
Net interest income
(tax equivalent) (1)
|
|
$
|
88,318
|
|
|
$
|
84,946
|
|
|
$
|
84,254
|
|
|
$
|
255,925
|
|
|
$
|
250,218
|
|
Adjustments to arrive
at operating net interest income (tax equivalent):
|
|
|
|
|
|
|
|
|
|
|
Incremental accretion
income on FDIC purchased credit impaired loans
|
|
(1,816)
|
|
|
(1,300)
|
|
|
(2,082)
|
|
|
(4,773)
|
|
|
(6,896)
|
|
Incremental accretion
income on other FDIC acquired loans (2)
|
|
—
|
|
|
—
|
|
|
(34)
|
|
|
—
|
|
|
(166)
|
|
Incremental accretion
income on other acquired loans
|
|
(2,749)
|
|
|
(3,074)
|
|
|
(4,293)
|
|
|
(8,896)
|
|
|
(14,116)
|
|
Premium amortization
on acquired securities
|
|
1,991
|
|
|
2,075
|
|
|
2,396
|
|
|
6,390
|
|
|
7,964
|
|
Interest reversals on
nonaccrual loans
|
|
266
|
|
|
107
|
|
|
325
|
|
|
826
|
|
|
1,131
|
|
Operating net
interest income (tax equivalent) (1)
|
|
$
|
86,010
|
|
|
$
|
82,754
|
|
|
$
|
80,566
|
|
|
$
|
249,472
|
|
|
$
|
238,135
|
|
Average interest
earning assets
|
|
$
|
8,544,876
|
|
|
$
|
8,285,183
|
|
|
$
|
7,711,531
|
|
|
$
|
8,279,639
|
|
|
$
|
7,600,954
|
|
Net interest margin
(tax equivalent) (1)
|
|
4.13
|
%
|
|
4.10
|
%
|
|
4.37
|
%
|
|
4.12
|
%
|
|
4.39
|
%
|
Operating net
interest margin (tax equivalent) (1)
|
|
4.03
|
%
|
|
4.00
|
%
|
|
4.18
|
%
|
|
4.02
|
%
|
|
4.18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating
efficiency ratio non-GAAP reconciliation:
|
|
(dollars in
thousands)
|
Noninterest expense
(numerator A)
|
|
$
|
67,264
|
|
|
$
|
63,790
|
|
|
$
|
64,067
|
|
|
$
|
196,128
|
|
|
$
|
199,272
|
|
Adjustments to arrive
at operating noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
expenses
|
|
—
|
|
|
—
|
|
|
(428)
|
|
|
(2,436)
|
|
|
(9,045)
|
|
Net benefit (cost) of
operation of OREO and OPPO
|
|
254
|
|
|
(84)
|
|
|
(228)
|
|
|
68
|
|
|
1,574
|
|
FDIC clawback
liability expense
|
|
(29)
|
|
|
(70)
|
|
|
(174)
|
|
|
(308)
|
|
|
(167)
|
|
Loss on asset
disposals
|
|
(31)
|
|
|
(7)
|
|
|
(274)
|
|
|
(198)
|
|
|
(381)
|
|
State of Washington
Business and Occupation ("B&O") taxes
|
|
(1,382)
|
|
|
(1,204)
|
|
|
(1,212)
|
|
|
(3,757)
|
|
|
(3,668)
|
|
Operating noninterest
expense (numerator B)
|
|
$
|
66,076
|
|
|
$
|
62,425
|
|
|
$
|
61,751
|
|
|
$
|
189,497
|
|
|
$
|
187,585
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(tax equivalent) (1)
|
|
$
|
88,318
|
|
|
$
|
84,946
|
|
|
$
|
84,254
|
|
|
$
|
255,925
|
|
|
$
|
250,218
|
|
Noninterest
income
|
|
23,166
|
|
|
21,940
|
|
|
22,499
|
|
|
65,752
|
|
|
66,728
|
|
Bank owned life
insurance tax equivalent adjustment
|
|
577
|
|
|
685
|
|
|
585
|
|
|
1,862
|
|
|
1,815
|
|
Total revenue (tax
equivalent) (denominator A)
|
|
$
|
112,061
|
|
|
$
|
107,571
|
|
|
$
|
107,338
|
|
|
$
|
323,539
|
|
|
$
|
318,761
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating net
interest income (tax equivalent) (1)
|
|
$
|
86,010
|
|
|
$
|
82,754
|
|
|
$
|
80,566
|
|
|
$
|
249,472
|
|
|
$
|
238,135
|
|
Adjustments to arrive
at operating noninterest income (tax equivalent):
|
|
|
|
|
|
|
|
|
|
|
Investment securities
gains, net
|
|
(572)
|
|
|
(229)
|
|
|
(236)
|
|
|
(1,174)
|
|
|
(1,300)
|
|
Gain on asset
disposals
|
|
(16)
|
|
|
(2)
|
|
|
(120)
|
|
|
(72)
|
|
|
(125)
|
|
Change in FDIC
loss-sharing asset
|
|
104
|
|
|
990
|
|
|
1,635
|
|
|
2,197
|
|
|
2,979
|
|
Operating noninterest
income (tax equivalent)
|
|
23,259
|
|
|
23,384
|
|
|
24,363
|
|
|
68,565
|
|
|
70,097
|
|
Total operating
revenue (tax equivalent) (denominator B)
|
|
$
|
109,269
|
|
|
$
|
106,138
|
|
|
$
|
104,929
|
|
|
$
|
318,037
|
|
|
$
|
308,232
|
|
Efficiency ratio (tax
equivalent) (numerator A/denominator A)
|
|
60.02
|
%
|
|
59.30
|
%
|
|
59.69
|
%
|
|
60.62
|
%
|
|
62.51
|
%
|
Operating efficiency
ratio (tax equivalent) (numerator B/denominator B)
|
|
60.47
|
%
|
|
58.81
|
%
|
|
58.85
|
%
|
|
59.58
|
%
|
|
60.86
|
%
|
|
|
|
|
|
(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
$2.7 million, $2.8 million and $2.6 million for the three
months ended September 30, 2016, June 30, 2016
and September 30, 2015, respectively; and $8.0 million
and $7.2 million for the nine months ended September 30, 2016
and September 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.
|
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SOURCE Columbia Banking System, Inc.