TACOMA, Wash., Jan. 26, 2017 /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 fourth quarter and full
year 2016 earnings, "We are very pleased with our results for the
fourth quarter, which continued to build upon our second and third
quarter performance. Record loan production during the year, good
credit quality metrics, and a continued focus on improved operating
leverage helped us achieve record fourth quarter net income." Ms.
Dressel continued, "I was also inspired by the shared commitment of
our team, customers and business partners for helping to care for
those who are truly in need. It's a privilege to give back to each
of the communities we serve through our annual Warm Hearts Winter
Drive."
Balance Sheet
Total assets at December 31, 2016 were $9.51 billion, a decrease of $77.1 million from September 30, 2016. Loans
declined $46.3 million during the
quarter as payments and a seasonal decline in line utilization
offset strong loan originations of $294.1
million. Loan production was diversified across the
portfolio sectors, with growth primarily centered in commercial
business loans. Securities available for sale were $2.28 billion at December 31, 2016, a
decrease of $81.5 million, or 3% from
$2.36 billion at September 30,
2016. Total deposits at December 31, 2016 were $8.06 billion, relatively unchanged from
September 30, 2016. Core deposits comprised 96% of total
deposits and were $7.75 billion at
December 31, 2016, a decrease of $59.5
million from September 30, 2016. The average cost of
total deposits for the quarter was 0.04%, unchanged from the third
quarter of 2016.
Income Statement
Net Interest Income
Net interest income for the fourth quarter of 2016 was
$85.7 million, an increase of
$165 thousand and $3.9 million from the linked and prior year
periods, respectively. The linked quarter increase was principally
from taxable securities income, whose yields benefited from a
market-driven reduction in premium amortization. The increase from
the prior year period was due to higher loan and securities volumes
as well as the previously noted reduction in securities premium
amortization. Incremental accretion income from purchased loans in
the current period was $1.7 million
lower than the prior year period. For additional information
regarding net interest income, see the "Average Balances and Rates"
table.
Noninterest Income
Noninterest income was $22.3
million for the fourth quarter of 2016, a decrease of
$836 thousand compared to
$23.2 million for the third quarter
of 2016. The linked quarter decrease was due to lower card and
merchant processing revenue as well as investment securities gains,
partially offset by higher other noninterest income. Noninterest
income was favorably impacted by a $391
thousand adjustment to our estimated mortgage repurchase
liability which was recognized with our acquisition of West Coast
Bank. Compared to the fourth quarter of 2015, noninterest income
decreased by $2.4 million due to the
$3.1 million adjustment recorded in
the prior year period related to the previously noted mortgage
repurchase liability. This decrease was partially offset by 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 continues to diminish.
The following table reflects the income statement components of the
change in the FDIC loss-sharing asset:
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(in
thousands)
|
Adjustments reflected
in income
|
|
|
|
|
|
|
|
|
|
|
Amortization,
net
|
|
$
|
(299)
|
|
|
$
|
(315)
|
|
|
$
|
(1,098)
|
|
|
(2,829)
|
|
|
(6,184)
|
|
Loan impairment
(recapture)
|
|
(92)
|
|
|
266
|
|
|
855
|
|
|
301
|
|
|
2,268
|
|
Sales of other real
estate owned
|
|
77
|
|
|
(49)
|
|
|
(484)
|
|
|
148
|
|
|
(1,237)
|
|
Valuation adjustments
on other real estate owned
|
|
—
|
|
|
—
|
|
|
10
|
|
|
(22)
|
|
|
1,158
|
|
Other
|
|
(74)
|
|
|
(6)
|
|
|
(314)
|
|
|
(183)
|
|
|
(15)
|
|
Change in FDIC
loss-sharing asset
|
|
$
|
(388)
|
|
|
$
|
(104)
|
|
|
$
|
(1,031)
|
|
|
$
|
(2,585)
|
|
|
$
|
(4,010)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expense
Total noninterest expense for the fourth quarter of 2016 was
$65.0 million, a decrease of
$2.3 million from $67.3 million for the third quarter of 2016. The
decrease was due to lower advertising and occupancy costs in the
current quarter. During the prior quarter we incurred increased
advertising costs from production and broadcast of refreshed
television commercials as well as occupancy costs associated with
the consolidation of a branch location.
Compared to the fourth quarter of 2015, noninterest expense
decreased $1.9 million, or 3%, from
$66.9 million. After removing the
effect of $291 thousand in
acquisition-related expenses from the current quarter and
$1.9 million from the prior year
period, noninterest expense was relatively unchanged from the
fourth quarter of 2015. Compensation expense was higher in the
current quarter due to recognizing additional incentive expense
relative to the record loan production, deposit growth and
financial performance. However, the increased compensation costs
were substantially offset by decreases in several noninterest
expense line items, the largest being occupancy.
Net Interest Margin ("NIM")
Columbia's net interest margin
(tax equivalent) for the fourth quarter of 2016 was 4.11%, a
decrease of 2 basis points from the linked quarter and a decline of
14 basis points from the prior year period. The decrease from the
linked quarter was due to higher volume of interest-earning
deposits with banks as well as lower incremental accretion income
from acquired loans. The decrease from the prior year period was
due to both lower incremental accretion income from acquired loans
and lower yielding originated loans. Incremental accretion income
was $4.3 million in the current
period compared to $6.0 million in
the prior year quarter.
Columbia's operating net
interest margin (tax equivalent)(1) was 3.99% for the
fourth quarter of 2016, a decline of 4 and 10 basis points from the
linked and prior year periods, respectively. Higher volumes of
deposits with banks contributed to the decrease from both the
linked and prior year periods. Lower yielding originated loans also
contributed to the decrease from the prior year period.
Clint Stein, Columbia's Executive Vice President and Chief
Financial Officer, commented, "We held higher than normal balances
of overnight funds throughout the quarter to maintain balance sheet
flexibility through year end." Mr. Stein continued, "The impact of
the additional overnight funds was a reduction in our net interest
margin of three basis points."
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
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
(dollars in
thousands)
|
Incremental accretion
income due to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FDIC purchased credit
impaired loans
|
|
$
|
1,199
|
|
|
$
|
1,816
|
|
|
$
|
1,300
|
|
|
$
|
1,657
|
|
|
$
|
2,200
|
|
|
$
|
5,972
|
|
|
$
|
9,096
|
|
Other FDIC acquired
loans (2)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
68
|
|
|
—
|
|
|
234
|
|
Other acquired
loans
|
|
3,087
|
|
|
2,749
|
|
|
3,074
|
|
|
3,073
|
|
|
3,746
|
|
|
11,983
|
|
|
17,862
|
|
Incremental accretion
income
|
|
$
|
4,286
|
|
|
$
|
4,565
|
|
|
$
|
4,374
|
|
|
$
|
4,730
|
|
|
$
|
6,014
|
|
|
$
|
17,955
|
|
|
$
|
27,192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(tax equivalent)
|
|
4.11
|
%
|
|
4.13
|
%
|
|
4.10
|
%
|
|
4.13
|
%
|
|
4.25
|
%
|
|
4.12
|
%
|
|
4.35
|
%
|
Operating net
interest margin (tax equivalent) (1)
|
|
3.99
|
%
|
|
4.03
|
%
|
|
4.00
|
%
|
|
4.03
|
%
|
|
4.09
|
%
|
|
4.01
|
%
|
|
4.15
|
%
|
__________
|
(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 December 31, 2016, nonperforming assets to total assets
were 0.35% compared to 0.32% at September 30, 2016 and 0.39%
at December 31, 2015. Total nonperforming assets increased
$3.4 million from the linked quarter
due to a $6.4 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:
|
|
December 31,
2016
|
|
September 30,
2016
|
|
December 31,
2015
|
|
|
(in
thousands)
|
Nonaccrual
loans:
|
|
|
|
|
|
|
Commercial
business
|
|
$
|
11,555
|
|
|
$
|
9,502
|
|
|
$
|
9,437
|
|
Real
estate:
|
|
|
|
|
|
|
One-to-four family
residential
|
|
568
|
|
|
579
|
|
|
820
|
|
Commercial and
multifamily residential
|
|
11,187
|
|
|
7,052
|
|
|
9,513
|
|
Total real
estate
|
|
11,755
|
|
|
7,631
|
|
|
10,333
|
|
Real estate
construction:
|
|
|
|
|
|
|
One-to-four family
residential
|
|
563
|
|
|
461
|
|
|
928
|
|
Total real estate
construction
|
|
563
|
|
|
461
|
|
|
928
|
|
Consumer
|
|
3,883
|
|
|
3,772
|
|
|
766
|
|
Total nonaccrual
loans
|
|
27,756
|
|
|
21,366
|
|
|
21,464
|
|
Other real estate
owned and other personal property owned
|
|
5,998
|
|
|
8,994
|
|
|
13,738
|
|
Total nonperforming
assets
|
|
$
|
33,754
|
|
|
$
|
30,360
|
|
|
$
|
35,202
|
|
The following table provides an analysis of the Company's
allowance for loan and lease losses:
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December 31,
2016
|
|
September 30,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
(in
thousands)
|
Beginning
balance
|
|
$
|
70,264
|
|
|
$
|
69,304
|
|
|
$
|
69,049
|
|
|
$
|
68,172
|
|
|
$
|
69,569
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
Commercial
business
|
|
(1,195)
|
|
|
(2,159)
|
|
|
(2,184)
|
|
|
(10,068)
|
|
|
(8,266)
|
|
One-to-four family
residential real estate
|
|
—
|
|
|
—
|
|
|
(79)
|
|
|
(35)
|
|
|
(376)
|
|
Commercial and
multifamily residential real estate
|
|
(63)
|
|
|
—
|
|
|
(264)
|
|
|
(89)
|
|
|
(505)
|
|
One-to-four family
residential real estate construction
|
|
(88)
|
|
|
—
|
|
|
—
|
|
|
(88)
|
|
|
—
|
|
Consumer
|
|
(255)
|
|
|
(383)
|
|
|
(545)
|
|
|
(1,238)
|
|
|
(2,066)
|
|
Purchased credit
impaired
|
|
(2,118)
|
|
|
(2,062)
|
|
|
(3,680)
|
|
|
(9,944)
|
|
|
(13,854)
|
|
Total
charge-offs
|
|
(3,719)
|
|
|
(4,604)
|
|
|
(6,752)
|
|
|
(21,462)
|
|
|
(25,067)
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
Commercial
business
|
|
377
|
|
|
854
|
|
|
886
|
|
|
2,646
|
|
|
2,336
|
|
One-to-four family
residential real estate
|
|
29
|
|
|
81
|
|
|
19
|
|
|
171
|
|
|
307
|
|
Commercial and
multifamily residential real estate
|
|
1,182
|
|
|
20
|
|
|
277
|
|
|
1,401
|
|
|
3,975
|
|
One-to-four family
residential real estate construction
|
|
11
|
|
|
21
|
|
|
52
|
|
|
291
|
|
|
193
|
|
Commercial and
multifamily residential real estate construction
|
|
—
|
|
|
107
|
|
|
1
|
|
|
109
|
|
|
8
|
|
Consumer
|
|
168
|
|
|
399
|
|
|
224
|
|
|
933
|
|
|
931
|
|
Purchased credit
impaired
|
|
1,713
|
|
|
2,216
|
|
|
2,067
|
|
|
7,004
|
|
|
7,329
|
|
Total
recoveries
|
|
3,480
|
|
|
3,698
|
|
|
3,526
|
|
|
12,555
|
|
|
15,079
|
|
Net
charge-offs
|
|
(239)
|
|
|
(906)
|
|
|
(3,226)
|
|
|
(8,907)
|
|
|
(9,988)
|
|
Provision for loan
and lease losses
|
|
18
|
|
|
1,866
|
|
|
2,349
|
|
|
10,778
|
|
|
8,591
|
|
Ending
balance
|
|
$
|
70,043
|
|
|
$
|
70,264
|
|
|
$
|
68,172
|
|
|
$
|
70,043
|
|
|
$
|
68,172
|
|
The allowance for loan losses to period end loans was 1.13% at
December 31, 2016 compared to 1.12% at September 30, 2016
and 1.17% at December 31, 2015. For the fourth quarter of
2016, Columbia recorded a net
provision for loan and lease losses of $18
thousand compared to a net provision of $1.9 million for the linked quarter and
$2.3 million for the comparable
quarter last year. The net provision for loan and lease losses
recorded during the current quarter consisted of $600 thousand of provision for loan losses for
loans, excluding PCI loans, substantially offset by a provision
recovery of $582 thousand for PCI
loans.
Andy McDonald, Columbia's Executive Vice President and Chief
Credit Officer, commented, "Our credit quality metrics continue to
compare favorably to our peers. Our nonperforming assets to total
assets of thirty five basis points remains below the fifty basis
points we have long considered as a sustainable level for this
point in the current economic cycle."
Impact of FDIC Acquired Loan Accounting
The following table illustrates the impact to earnings
associated with Columbia's FDIC
acquired loan portfolios:
FDIC Acquired Loan
Accounting
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December 31,
2016
|
|
September 30,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
(in
thousands)
|
Incremental accretion
income on FDIC purchased credit impaired loans
|
|
$
|
1,199
|
|
|
$
|
1,816
|
|
|
$
|
2,200
|
|
|
$
|
5,972
|
|
|
$
|
9,096
|
|
Incremental accretion
income on other FDIC acquired loans (1)
|
|
—
|
|
|
—
|
|
|
68
|
|
|
—
|
|
|
234
|
|
Recapture (provision)
for losses on FDIC purchased credit impaired loans
|
|
582
|
|
|
433
|
|
|
(1,349)
|
|
|
271
|
|
|
(3,915)
|
|
Change in FDIC
loss-sharing asset
|
|
(388)
|
|
|
(104)
|
|
|
(1,031)
|
|
|
(2,585)
|
|
|
(4,010)
|
|
FDIC clawback
liability recovery (expense)
|
|
28
|
|
|
(29)
|
|
|
(812)
|
|
|
(280)
|
|
|
(979)
|
|
Pre-tax earnings
impact
|
|
$
|
1,421
|
|
|
$
|
2,116
|
|
|
$
|
(924)
|
|
|
$
|
3,378
|
|
|
$
|
426
|
|
_________
|
(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
December 31, 2016, the accretable yield on purchased credit
impaired loans was $45.2 million.
Accretable yield is subject to change based upon expected future
loan cash flows, which are remeasured by Columbia on a quarterly basis.
The $388 thousand change in the
FDIC loss-sharing asset in the current quarter reduced noninterest
income and consisted primarily of $299
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 page
Organizational Update
Ms. Dressel commented, "Earlier this month we announced the
signing of a definitive agreement to purchase Pacific Continental
Corporation. We are looking forward to this well respected
Northwest franchise joining the Columbia team." Ms. Dressel continued, "Aside
from both of our companies being commercially oriented community
banks, we share a common passion for serving our customers and
broader communities while creating an exceptional working
environment for our
employees."
Conference Call Information
Columbia's management will
discuss the fourth quarter and full-year 2016 results on a
conference call scheduled for Thursday,
January 26, 2017 at 1:00 p.m. Pacific
Standard Time (4:00 p.m. Eastern
Standard Time). Interested parties may listen to this
discussion by calling 1-866-378-3802; Conference ID code
#22782095.
A conference call replay will be available from approximately
4:00 p.m. PST on January 26, 2017 through midnight PST on February
2, 2017. The conference call replay can be accessed by
dialing 1-855-859-2056 and entering Conference ID code
#22782095.
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; (6)
legislation or regulatory requirements or changes may adversely
affect the businesses in which Columbia is engaged; and (7) the proposed
merger with Pacific Continental Corporation ("Pacific Continental")
may not close when expected or at all because required regulatory,
shareholder or other approvals and other conditions to closing are
not received or satisfied on a timely basis or at all, which may
have an effect on the trading prices of Columbia's stock. 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.
Additional Information
In connection with the Agreement and Plan of Merger, dated as of
January 9, 2017, by and between
Columbia Banking System, Inc. and Pacific Continental, Columbia will file with the SEC a Registration
Statement on Form S-4 that will include a Joint Proxy
Statement of Columbia and Pacific
Continental and a Prospectus of Columbia, as well as other relevant documents
concerning the proposed transaction. Shareholders of
Columbia and Pacific Continental
are urged to carefully read the Registration Statement and the
Joint Proxy Statement/Prospectus regarding the transaction in their
entirety when they become available and any other relevant
documents filed with the SEC, as well as any amendments or
supplements to those documents, because they will contain important
information. Shareholders of Columbia and Pacific Continental are also
urged to carefully review and consider each of Columbia's and Pacific Continental's public
filings with the SEC, including but not limited to their Annual
Reports on Form 10-K, their proxy statements, their
Current Reports on Form 8-K and their Quarterly Reports
on Form 10-Q. A definitive Joint Proxy
Statement/Prospectus will be sent to the shareholders of each
institution seeking any required shareholder approvals. The
Joint Proxy Statement/Prospectus and other relevant materials (when
they become available) filed with the SEC may be obtained free of
charge at the SEC's Website at http://www.sec.gov.
PACIFIC CONTINENTAL AND
COLUMBIA SHAREHOLDERS ARE URGED TO
READ THE JOINT PROXY STATEMENT/PROSPECTUS AND THE OTHER RELEVANT
MATERIALS BEFORE VOTING ON THE TRANSACTION.
Investors will also be able to obtain these documents, free of
charge, from Pacific Continental by accessing Pacific Continental's
website at www.therightbank.com under the link "Investor Relations"
or from Columbia at
www.columbiabank.com under the tab "About" and then under the
heading "Investor Relations." Copies can also be obtained, free of
charge, by directing a written request to Columbia, Attention: Corporate Secretary, 1301
A Street, Suite 800, Tacoma,
Washington 98401-2156 or to Pacific Continental, Attention:
Corporate Secretary, 111 West Seventh Avenue, P.O. Box 10727,
Eugene Oregon 97440-2727.
Participants in Solicitation
Columbia and Pacific
Continental and their directors and executive officers and certain
other persons may be deemed to be participants in the solicitation
of proxies from the shareholders of Pacific Continental or
Columbia in connection with the
transaction. Information about the directors and executive
officers of Columbia and their
ownership of Columbia common stock
is set forth in the proxy statement for Columbia's 2016 annual meeting of
shareholders, as filed with the SEC on a Schedule 14A on
March 16, 2016. Information about the directors and
executive officers of Pacific Continental and their ownership of
Pacific Continental common stock is set forth in the proxy
statement for Pacific Continental's 2016 annual meeting of
shareholders, as filed with the SEC on a Schedule 14A on
March 15, 2016. Additional information regarding the
interests of those participants and other persons who may be deemed
participants in the solicitation may be obtained by reading the
Joint Proxy Statement/Prospectus regarding the transaction when it
becomes available. Free copies of this document may be obtained as
described in the preceding paragraph.
Contacts:
|
Melanie J.
Dressel,
|
|
President
and
|
|
Chief Executive
Officer
|
|
|
|
Clint E.
Stein,
|
|
Executive Vice
President
|
|
and Chief Financial
Officer
|
|
|
|
Investor
Relations
|
|
(253)
305-1965
|
FINANCIAL
STATISTICS
|
|
|
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
Unaudited
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Earnings
|
|
(dollars in
thousands except per share amounts)
|
Net interest
income
|
|
$
|
85,737
|
|
|
$
|
85,572
|
|
|
$
|
81,819
|
|
|
$
|
333,619
|
|
|
$
|
324,887
|
|
Provision for loan
and lease losses
|
|
$
|
18
|
|
|
$
|
1,866
|
|
|
$
|
2,349
|
|
|
$
|
10,778
|
|
|
$
|
8,591
|
|
Noninterest
income
|
|
$
|
22,330
|
|
|
$
|
23,166
|
|
|
$
|
24,745
|
|
|
$
|
88,082
|
|
|
$
|
91,473
|
|
Noninterest
expense
|
|
$
|
65,014
|
|
|
$
|
67,264
|
|
|
$
|
66,877
|
|
|
$
|
261,142
|
|
|
$
|
266,149
|
|
Acquisition-related
expense (included in noninterest expense)
|
|
$
|
291
|
|
|
$
|
—
|
|
|
$
|
1,872
|
|
|
$
|
2,727
|
|
|
$
|
10,917
|
|
Net income
|
|
$
|
30,718
|
|
|
$
|
27,484
|
|
|
$
|
26,740
|
|
|
$
|
104,866
|
|
|
$
|
98,827
|
|
Per Common
Share
|
|
|
|
|
|
|
|
|
|
|
Earnings
(basic)
|
|
$
|
0.53
|
|
|
$
|
0.47
|
|
|
$
|
0.46
|
|
|
$
|
1.81
|
|
|
$
|
1.71
|
|
Earnings
(diluted)
|
|
$
|
0.53
|
|
|
$
|
0.47
|
|
|
$
|
0.46
|
|
|
$
|
1.81
|
|
|
$
|
1.71
|
|
Book value
|
|
$
|
21.52
|
|
|
$
|
21.96
|
|
|
$
|
21.48
|
|
|
$
|
21.52
|
|
|
$
|
21.48
|
|
Averages
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
9,568,214
|
|
|
$
|
9,493,451
|
|
|
$
|
8,905,743
|
|
|
$
|
9,311,621
|
|
|
$
|
8,655,243
|
|
Interest-earning
assets
|
|
$
|
8,612,498
|
|
|
$
|
8,544,876
|
|
|
$
|
7,937,308
|
|
|
$
|
8,363,309
|
|
|
$
|
7,685,734
|
|
Loans
|
|
$
|
6,200,506
|
|
|
$
|
6,179,163
|
|
|
$
|
5,762,048
|
|
|
$
|
6,052,389
|
|
|
$
|
5,609,261
|
|
Securities, including
Federal Home Loan Bank stock
|
|
$
|
2,314,521
|
|
|
$
|
2,351,093
|
|
|
$
|
2,136,703
|
|
|
$
|
2,269,121
|
|
|
$
|
2,031,859
|
|
Deposits
|
|
$
|
8,105,522
|
|
|
$
|
7,918,532
|
|
|
$
|
7,440,628
|
|
|
$
|
7,774,309
|
|
|
$
|
7,146,828
|
|
Interest-bearing
deposits
|
|
$
|
4,151,695
|
|
|
$
|
4,118,787
|
|
|
$
|
3,933,001
|
|
|
$
|
4,070,401
|
|
|
$
|
3,937,881
|
|
Interest-bearing
liabilities
|
|
$
|
4,222,820
|
|
|
$
|
4,295,485
|
|
|
$
|
4,031,214
|
|
|
$
|
4,227,096
|
|
|
$
|
4,097,483
|
|
Noninterest-bearing
deposits
|
|
$
|
3,953,827
|
|
|
$
|
3,799,745
|
|
|
$
|
3,507,627
|
|
|
$
|
3,703,908
|
|
|
$
|
3,208,947
|
|
Shareholders'
equity
|
|
$
|
1,274,388
|
|
|
$
|
1,278,588
|
|
|
$
|
1,259,117
|
|
|
$
|
1,269,801
|
|
|
$
|
1,246,952
|
|
Financial
Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.29
|
%
|
|
1.16
|
%
|
|
1.20
|
%
|
|
1.13
|
%
|
|
1.14
|
%
|
Return on average
common equity
|
|
9.68
|
%
|
|
8.60
|
%
|
|
8.50
|
%
|
|
8.27
|
%
|
|
7.93
|
%
|
Average equity to
average assets
|
|
13.32
|
%
|
|
13.47
|
%
|
|
14.14
|
%
|
|
13.64
|
%
|
|
14.41
|
%
|
Net interest margin
(tax equivalent)
|
|
4.11
|
%
|
|
4.13
|
%
|
|
4.25
|
%
|
|
4.12
|
%
|
|
4.35
|
%
|
Efficiency ratio (tax
equivalent) (1)
|
|
58.35
|
%
|
|
60.02
|
%
|
|
60.99
|
%
|
|
60.04
|
%
|
|
62.12
|
%
|
Operating efficiency
ratio (tax equivalent) (2)
|
|
58.10
|
%
|
|
60.47
|
%
|
|
60.53
|
%
|
|
59.21
|
%
|
|
60.78
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
|
|
Period
end
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
Total
assets
|
|
$
|
9,509,607
|
|
|
$
|
9,586,754
|
|
|
8,951,697
|
|
|
|
|
|
Loans, net of
unearned income
|
|
$
|
6,213,423
|
|
|
$
|
6,259,757
|
|
|
5,815,027
|
|
|
|
|
|
Allowance for loan
and lease losses
|
|
$
|
70,043
|
|
|
$
|
70,264
|
|
|
68,172
|
|
|
|
|
|
Securities, including
Federal Home Loan Bank stock
|
|
$
|
2,288,817
|
|
|
$
|
2,372,724
|
|
|
2,170,416
|
|
|
|
|
|
Deposits
|
|
$
|
8,059,415
|
|
|
$
|
8,057,816
|
|
|
7,438,829
|
|
|
|
|
|
Core
deposits
|
|
$
|
7,749,568
|
|
|
$
|
7,809,064
|
|
|
7,238,713
|
|
|
|
|
|
Shareholders'
equity
|
|
$
|
1,251,012
|
|
|
$
|
1,276,735
|
|
|
1,242,128
|
|
|
|
|
|
Nonperforming
assets
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
27,756
|
|
|
$
|
21,366
|
|
|
21,464
|
|
|
|
|
|
Other real estate
owned ("OREO") and other personal property owned
("OPPO")
|
|
5,998
|
|
|
8,994
|
|
|
13,738
|
|
|
|
|
|
Total
nonperforming assets
|
|
$
|
33,754
|
|
|
$
|
30,360
|
|
|
$
|
35,202
|
|
|
|
|
|
Nonperforming loans
to period-end loans
|
|
0.45
|
%
|
|
0.34
|
%
|
|
0.37
|
%
|
|
|
|
|
Nonperforming assets
to period-end assets
|
|
0.35
|
%
|
|
0.32
|
%
|
|
0.39
|
%
|
|
|
|
|
Allowance for loan
and lease losses to period-end loans
|
|
1.13
|
%
|
|
1.12
|
%
|
|
1.17
|
%
|
|
|
|
|
Net loan
charge-offs
|
|
$
|
239
|
|
(3)
|
$
|
906
|
|
(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 December 31, 2016.
|
(4) For the three
months ended September 30, 2016.
|
(5) For the three
months ended December 31, 2015.
|
QUARTERLY
FINANCIAL STATISTICS
|
|
|
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
Three Months
Ended
|
Unaudited
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
|
(dollars in
thousands except per share)
|
Earnings
|
|
|
Net interest
income
|
|
$
|
85,737
|
|
|
$
|
85,572
|
|
|
$
|
82,140
|
|
|
$
|
80,170
|
|
|
$
|
81,819
|
|
Provision for loan
and lease losses
|
|
$
|
18
|
|
|
$
|
1,866
|
|
|
$
|
3,640
|
|
|
$
|
5,254
|
|
|
$
|
2,349
|
|
Noninterest
income
|
|
$
|
22,330
|
|
|
$
|
23,166
|
|
|
$
|
21,940
|
|
|
$
|
20,646
|
|
|
$
|
24,745
|
|
Noninterest
expense
|
|
$
|
65,014
|
|
|
$
|
67,264
|
|
|
$
|
63,790
|
|
|
$
|
65,074
|
|
|
$
|
66,877
|
|
Acquisition-related
expense (included in noninterest expense)
|
|
$
|
291
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,436
|
|
|
$
|
1,872
|
|
Net income
|
|
$
|
30,718
|
|
|
$
|
27,484
|
|
|
$
|
25,405
|
|
|
$
|
21,259
|
|
|
$
|
26,740
|
|
Per Common
Share
|
|
|
|
|
|
|
|
|
|
|
Earnings
(basic)
|
|
$
|
0.53
|
|
|
$
|
0.47
|
|
|
$
|
0.44
|
|
|
$
|
0.37
|
|
|
$
|
0.46
|
|
Earnings
(diluted)
|
|
$
|
0.53
|
|
|
$
|
0.47
|
|
|
$
|
0.44
|
|
|
$
|
0.37
|
|
|
$
|
0.46
|
|
Book value
|
|
$
|
21.52
|
|
|
$
|
21.96
|
|
|
$
|
21.93
|
|
|
$
|
21.70
|
|
|
$
|
21.48
|
|
Averages
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
9,568,214
|
|
|
$
|
9,493,451
|
|
|
$
|
9,230,791
|
|
|
$
|
8,949,212
|
|
|
$
|
8,905,743
|
|
Interest-earning
assets
|
|
$
|
8,612,498
|
|
|
$
|
8,544,876
|
|
|
$
|
8,285,183
|
|
|
$
|
8,005,945
|
|
|
$
|
7,937,308
|
|
Loans
|
|
$
|
6,200,506
|
|
|
$
|
6,179,163
|
|
|
$
|
5,999,428
|
|
|
$
|
5,827,440
|
|
|
$
|
5,762,048
|
|
Securities, including
Federal Home Loan Bank stock
|
|
$
|
2,314,521
|
|
|
$
|
2,351,093
|
|
|
$
|
2,262,012
|
|
|
$
|
2,147,457
|
|
|
$
|
2,136,703
|
|
Deposits
|
|
$
|
8,105,522
|
|
|
$
|
7,918,532
|
|
|
$
|
7,622,266
|
|
|
$
|
7,445,693
|
|
|
$
|
7,440,628
|
|
Interest-bearing
deposits
|
|
$
|
4,151,695
|
|
|
$
|
4,118,787
|
|
|
$
|
4,026,384
|
|
|
$
|
3,983,314
|
|
|
$
|
3,933,001
|
|
Interest-bearing
liabilities
|
|
$
|
4,222,820
|
|
|
$
|
4,295,485
|
|
|
$
|
4,264,792
|
|
|
$
|
4,124,582
|
|
|
$
|
4,031,214
|
|
Noninterest-bearing
deposits
|
|
$
|
3,953,827
|
|
|
$
|
3,799,745
|
|
|
$
|
3,595,882
|
|
|
$
|
3,462,379
|
|
|
$
|
3,507,627
|
|
Shareholders'
equity
|
|
$
|
1,274,388
|
|
|
$
|
1,278,588
|
|
|
$
|
1,267,670
|
|
|
$
|
1,258,411
|
|
|
$
|
1,259,117
|
|
Financial
Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.29
|
%
|
|
1.16
|
%
|
|
1.10
|
%
|
|
0.95
|
%
|
|
1.20
|
%
|
Return on average
common equity
|
|
9.68
|
%
|
|
8.60
|
%
|
|
8.02
|
%
|
|
6.76
|
%
|
|
8.50
|
%
|
Average equity to
average assets
|
|
13.32
|
%
|
|
13.47
|
%
|
|
13.73
|
%
|
|
14.06
|
%
|
|
14.14
|
%
|
Net interest margin
(tax equivalent)
|
|
4.11
|
%
|
|
4.13
|
%
|
|
4.10
|
%
|
|
4.13
|
%
|
|
4.25
|
%
|
Period
end
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
9,509,607
|
|
|
$
|
9,586,754
|
|
|
$
|
9,353,651
|
|
|
$
|
9,035,932
|
|
|
$
|
8,951,697
|
|
Loans, net of
unearned income
|
|
$
|
6,213,423
|
|
|
$
|
6,259,757
|
|
|
$
|
6,107,143
|
|
|
$
|
5,877,283
|
|
|
$
|
5,815,027
|
|
Allowance for loan
and lease losses
|
|
$
|
70,043
|
|
|
$
|
70,264
|
|
|
$
|
69,304
|
|
|
$
|
69,264
|
|
|
$
|
68,172
|
|
Securities, including
Federal Home Loan Bank stock
|
|
$
|
2,288,817
|
|
|
$
|
2,372,724
|
|
|
$
|
2,297,713
|
|
|
$
|
2,196,407
|
|
|
$
|
2,170,416
|
|
Deposits
|
|
$
|
8,059,415
|
|
|
$
|
8,057,816
|
|
|
$
|
7,673,213
|
|
|
$
|
7,596,949
|
|
|
$
|
7,438,829
|
|
Core
deposits
|
|
$
|
7,749,568
|
|
|
$
|
7,809,064
|
|
|
$
|
7,447,963
|
|
|
$
|
7,384,622
|
|
|
$
|
7,238,713
|
|
Shareholders'
equity
|
|
$
|
1,251,012
|
|
|
$
|
1,276,735
|
|
|
$
|
1,274,479
|
|
|
$
|
1,260,788
|
|
|
$
|
1,242,128
|
|
Nonperforming,
assets
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
27,756
|
|
|
$
|
21,366
|
|
|
$
|
22,915
|
|
|
$
|
36,891
|
|
|
$
|
21,464
|
|
OREO and
OPPO
|
|
5,998
|
|
|
8,994
|
|
|
10,613
|
|
|
12,427
|
|
|
13,738
|
|
Total
nonperforming assets
|
|
$
|
33,754
|
|
|
$
|
30,360
|
|
|
$
|
33,528
|
|
|
$
|
49,318
|
|
|
$
|
35,202
|
|
Nonperforming loans
to period-end loans
|
|
0.45
|
%
|
|
0.34
|
%
|
|
0.38
|
%
|
|
0.63
|
%
|
|
0.37
|
%
|
Nonperforming assets
to period-end assets
|
|
0.35
|
%
|
|
0.32
|
%
|
|
0.36
|
%
|
|
0.55
|
%
|
|
0.39
|
%
|
Allowance for loan
and lease losses to period-end loans
|
|
1.13
|
%
|
|
1.12
|
%
|
|
1.13
|
%
|
|
1.18
|
%
|
|
1.17
|
%
|
Net loan
charge-offs
|
|
$
|
239
|
|
|
$
|
906
|
|
|
$
|
3,600
|
|
|
$
|
4,162
|
|
|
$
|
3,226
|
|
LOAN PORTFOLIO
COMPOSITION
|
|
|
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
Loan Portfolio
Composition - Dollars
|
|
(dollars in
thousands)
|
Commercial
business
|
|
$
|
2,551,054
|
|
|
$
|
2,630,017
|
|
|
$
|
2,518,682
|
|
|
$
|
2,401,193
|
|
|
$
|
2,362,575
|
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
One-to-four family
residential
|
|
170,331
|
|
|
168,511
|
|
|
172,957
|
|
|
175,050
|
|
|
176,295
|
|
Commercial and
multifamily residential
|
|
2,719,830
|
|
|
2,686,783
|
|
|
2,651,476
|
|
|
2,520,352
|
|
|
2,491,736
|
|
Total real
estate
|
|
2,890,161
|
|
|
2,855,294
|
|
|
2,824,433
|
|
|
2,695,402
|
|
|
2,668,031
|
|
Real estate
construction:
|
|
|
|
|
|
|
|
|
|
|
One-to-four family
residential
|
|
121,887
|
|
|
130,163
|
|
|
129,195
|
|
|
133,447
|
|
|
135,874
|
|
Commercial and
multifamily residential
|
|
209,118
|
|
|
202,014
|
|
|
185,315
|
|
|
183,548
|
|
|
167,413
|
|
Total real
estate construction
|
|
331,005
|
|
|
332,177
|
|
|
314,510
|
|
|
316,995
|
|
|
303,287
|
|
Consumer
|
|
329,261
|
|
|
325,741
|
|
|
325,632
|
|
|
329,902
|
|
|
342,601
|
|
Purchased credit
impaired
|
|
145,660
|
|
|
152,764
|
|
|
161,107
|
|
|
173,201
|
|
|
180,906
|
|
Subtotal
loans
|
|
6,247,141
|
|
|
6,295,993
|
|
|
6,144,364
|
|
|
5,916,693
|
|
|
5,857,400
|
|
Less: Net
unearned income
|
|
(33,718)
|
|
|
(36,236)
|
|
|
(37,221)
|
|
|
(39,410)
|
|
|
(42,373)
|
|
Loans, net of
unearned income
|
|
6,213,423
|
|
|
6,259,757
|
|
|
6,107,143
|
|
|
5,877,283
|
|
|
5,815,027
|
|
Less: Allowance
for loan and lease losses
|
|
(70,043)
|
|
|
(70,264)
|
|
|
(69,304)
|
|
|
(69,264)
|
|
|
(68,172)
|
|
Total loans,
net
|
|
6,143,380
|
|
|
6,189,493
|
|
|
6,037,839
|
|
|
5,808,019
|
|
|
5,746,855
|
|
Loans held for
sale
|
|
$
|
5,846
|
|
|
$
|
3,361
|
|
|
$
|
7,649
|
|
|
$
|
3,681
|
|
|
$
|
4,509
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Portfolio
Composition - Percentages
|
|
December
31,
2016
|
|
September
30, 2016
|
|
June
30, 2016
|
|
March
31, 2016
|
|
December
31, 2015
|
Commercial
business
|
|
41.1
|
%
|
|
42.0
|
%
|
|
41.2
|
%
|
|
40.9
|
%
|
|
40.6
|
%
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
One-to-four family
residential
|
|
2.7
|
%
|
|
2.7
|
%
|
|
2.8
|
%
|
|
3.0
|
%
|
|
3.0
|
%
|
Commercial and
multifamily residential
|
|
43.7
|
%
|
|
43.0
|
%
|
|
43.6
|
%
|
|
42.9
|
%
|
|
42.9
|
%
|
Total real
estate
|
|
46.4
|
%
|
|
45.7
|
%
|
|
46.4
|
%
|
|
45.9
|
%
|
|
45.9
|
%
|
Real estate
construction:
|
|
|
|
|
|
|
|
|
|
|
One-to-four family
residential
|
|
2.0
|
%
|
|
2.1
|
%
|
|
2.1
|
%
|
|
2.3
|
%
|
|
2.3
|
%
|
Commercial and
multifamily residential
|
|
3.4
|
%
|
|
3.2
|
%
|
|
3.0
|
%
|
|
3.1
|
%
|
|
2.9
|
%
|
Total real
estate construction
|
|
5.4
|
%
|
|
5.3
|
%
|
|
5.1
|
%
|
|
5.4
|
%
|
|
5.2
|
%
|
Consumer
|
|
5.3
|
%
|
|
5.2
|
%
|
|
5.3
|
%
|
|
5.6
|
%
|
|
5.9
|
%
|
Purchased credit
impaired
|
|
2.3
|
%
|
|
2.4
|
%
|
|
2.6
|
%
|
|
2.9
|
%
|
|
3.1
|
%
|
Subtotal
loans
|
|
100.5
|
%
|
|
100.6
|
%
|
|
100.6
|
%
|
|
100.7
|
%
|
|
100.7
|
%
|
Less: Net
unearned income
|
|
(0.5)
|
%
|
|
(0.6)
|
%
|
|
(0.6)
|
%
|
|
(0.7)
|
%
|
|
(0.7)
|
%
|
Loans, net of
unearned income
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
DEPOSIT
COMPOSITION
|
|
|
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
Deposit
Composition - Dollars
|
|
(dollars in
thousands)
|
Core
deposits:
|
|
|
|
|
|
|
|
|
|
|
Demand and other
non-interest bearing
|
|
$
|
3,944,495
|
|
|
$
|
3,942,434
|
|
|
$
|
3,652,951
|
|
|
$
|
3,553,468
|
|
|
$
|
3,507,358
|
|
Interest bearing
demand
|
|
985,293
|
|
|
963,242
|
|
|
957,548
|
|
|
958,469
|
|
|
925,909
|
|
Money
market
|
|
1,791,283
|
|
|
1,873,376
|
|
|
1,818,337
|
|
|
1,838,364
|
|
|
1,788,552
|
|
Savings
|
|
723,667
|
|
|
714,047
|
|
|
692,694
|
|
|
695,588
|
|
|
657,016
|
|
Certificates of
deposit, less than $250,000
|
|
304,830
|
|
|
315,965
|
|
|
326,433
|
|
|
338,733
|
|
|
359,878
|
|
Total core
deposits
|
|
7,749,568
|
|
|
7,809,064
|
|
|
7,447,963
|
|
|
7,384,622
|
|
|
7,238,713
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of
deposit, $250,000 or more
|
|
79,424
|
|
|
79,590
|
|
|
72,812
|
|
|
70,571
|
|
|
72,126
|
|
Certificates of
deposit insured by CDARS®
|
|
22,039
|
|
|
16,951
|
|
|
22,755
|
|
|
24,752
|
|
|
26,901
|
|
Brokered money market
accounts
|
|
208,348
|
|
|
152,151
|
|
|
129,590
|
|
|
116,878
|
|
|
100,854
|
|
Subtotal
|
|
8,059,379
|
|
|
8,057,756
|
|
|
7,673,120
|
|
|
7,596,823
|
|
|
7,438,594
|
|
Premium
resulting from acquisition date fair value adjustment
|
|
36
|
|
|
60
|
|
|
93
|
|
|
126
|
|
|
235
|
|
Total
deposits
|
|
$
|
8,059,415
|
|
|
$
|
8,057,816
|
|
|
$
|
7,673,213
|
|
|
$
|
7,596,949
|
|
|
$
|
7,438,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
Composition - Percentages
|
|
December
31, 2016
|
|
September
30, 2016
|
|
June
30, 2016
|
|
March
31, 2016
|
|
|
|
December
31,
2015
|
Core
deposits:
|
|
|
|
|
|
|
|
|
|
|
Demand and other
non-interest bearing
|
|
48.9
|
%
|
|
48.9
|
%
|
|
47.6
|
%
|
|
46.8
|
%
|
|
47.2
|
%
|
Interest bearing
demand
|
|
12.2
|
%
|
|
12.0
|
%
|
|
12.5
|
%
|
|
12.6
|
%
|
|
12.4
|
%
|
Money
market
|
|
22.2
|
%
|
|
23.2
|
%
|
|
23.7
|
%
|
|
24.2
|
%
|
|
24.0
|
%
|
Savings
|
|
9.0
|
%
|
|
8.9
|
%
|
|
9.0
|
%
|
|
9.2
|
%
|
|
8.8
|
%
|
Certificates of
deposit, less than $250,000
|
|
3.8
|
%
|
|
3.9
|
%
|
|
4.3
|
%
|
|
4.5
|
%
|
|
4.8
|
%
|
Total core
deposits
|
|
96.1
|
%
|
|
96.9
|
%
|
|
97.1
|
%
|
|
97.3
|
%
|
|
97.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of
deposit, $250,000 or more
|
|
1.0
|
%
|
|
1.0
|
%
|
|
0.9
|
%
|
|
0.9
|
%
|
|
1.0
|
%
|
Certificates of
deposit insured by CDARS®
|
|
0.3
|
%
|
|
0.2
|
%
|
|
0.3
|
%
|
|
0.3
|
%
|
|
0.4
|
%
|
Brokered money market
accounts
|
|
2.6
|
%
|
|
1.9
|
%
|
|
1.7
|
%
|
|
1.5
|
%
|
|
1.4
|
%
|
Total
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
Unaudited
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
2016
|
|
2015
(1)
|
|
2016
|
|
2015
(1)
|
|
|
(in thousands
except per share)
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
74,542
|
|
|
$
|
74,956
|
|
|
$
|
71,358
|
|
|
$
|
291,465
|
|
|
$
|
286,166
|
|
Taxable
securities
|
|
9,333
|
|
|
8,988
|
|
|
8,516
|
|
|
35,167
|
|
|
30,774
|
|
Tax-exempt
securities
|
|
2,724
|
|
|
2,799
|
|
|
2,870
|
|
|
11,121
|
|
|
11,842
|
|
Deposits in
banks
|
|
135
|
|
|
15
|
|
|
25
|
|
|
216
|
|
|
109
|
|
Total interest
income
|
|
86,734
|
|
|
86,758
|
|
|
82,769
|
|
|
337,969
|
|
|
328,891
|
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
782
|
|
|
823
|
|
|
733
|
|
|
3,134
|
|
|
2,977
|
|
Federal Home Loan
Bank advances
|
|
77
|
|
|
229
|
|
|
83
|
|
|
671
|
|
|
474
|
|
Other
borrowings
|
|
138
|
|
|
134
|
|
|
134
|
|
|
545
|
|
|
553
|
|
Total interest
expense
|
|
997
|
|
|
1,186
|
|
|
950
|
|
|
4,350
|
|
|
4,004
|
|
Net Interest
Income
|
|
85,737
|
|
|
85,572
|
|
|
81,819
|
|
|
333,619
|
|
|
324,887
|
|
Provision for loan
and lease losses
|
|
18
|
|
|
1,866
|
|
|
2,349
|
|
|
10,778
|
|
|
8,591
|
|
Net interest income
after provision for loan and lease losses
|
|
85,719
|
|
|
83,706
|
|
|
79,470
|
|
|
322,841
|
|
|
316,296
|
|
Noninterest
Income
|
|
|
|
|
|
|
|
|
|
|
Deposit account and
treasury management fees (1)
|
|
7,196
|
|
|
7,222
|
|
|
7,010
|
|
|
28,500
|
|
|
28,451
|
|
Card revenue
(1)
|
|
5,803
|
|
|
6,114
|
|
|
5,776
|
|
|
23,620
|
|
|
22,690
|
|
Financial services
and trust revenue (1)
|
|
2,919
|
|
|
2,746
|
|
|
2,939
|
|
|
11,266
|
|
|
12,596
|
|
Loan revenue
(1)
|
|
2,954
|
|
|
2,949
|
|
|
2,807
|
|
|
10,967
|
|
|
10,932
|
|
Merchant processing
revenue
|
|
2,006
|
|
|
2,352
|
|
|
2,173
|
|
|
8,732
|
|
|
8,975
|
|
Bank owned life
insurance
|
|
1,087
|
|
|
1,073
|
|
|
1,071
|
|
|
4,546
|
|
|
4,441
|
|
Investment securities
gains, net
|
|
7
|
|
|
572
|
|
|
281
|
|
|
1,181
|
|
|
1,581
|
|
Change in FDIC
loss-sharing asset
|
|
(388)
|
|
|
(104)
|
|
|
(1,031)
|
|
|
(2,585)
|
|
|
(4,010)
|
|
Other (1)
|
|
746
|
|
|
242
|
|
|
3,719
|
|
|
1,855
|
|
|
5,817
|
|
Total noninterest
income
|
|
22,330
|
|
|
23,166
|
|
|
24,745
|
|
|
88,082
|
|
|
91,473
|
|
Noninterest
Expense
|
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
|
38,196
|
|
|
38,476
|
|
|
36,689
|
|
|
150,282
|
|
|
149,410
|
|
Occupancy
|
|
7,690
|
|
|
8,219
|
|
|
10,037
|
|
|
33,734
|
|
|
34,818
|
|
Merchant processing
expense
|
|
1,018
|
|
|
1,161
|
|
|
1,058
|
|
|
4,330
|
|
|
4,204
|
|
Advertising and
promotion
|
|
720
|
|
|
1,993
|
|
|
1,233
|
|
|
4,598
|
|
|
4,713
|
|
Data
processing
|
|
4,138
|
|
|
4,275
|
|
|
4,399
|
|
|
16,488
|
|
|
17,421
|
|
Legal and
professional fees
|
|
2,523
|
|
|
2,264
|
|
|
2,081
|
|
|
7,889
|
|
|
9,608
|
|
Taxes, licenses and
fees
|
|
1,106
|
|
|
1,491
|
|
|
1,392
|
|
|
5,185
|
|
|
5,395
|
|
Regulatory
premiums
|
|
792
|
|
|
776
|
|
|
1,180
|
|
|
3,777
|
|
|
4,806
|
|
Net cost (benefit) of
operation of other real estate owned
|
|
612
|
|
|
(249)
|
|
|
(60)
|
|
|
551
|
|
|
(1,629)
|
|
Amortization of
intangibles
|
|
1,420
|
|
|
1,460
|
|
|
1,652
|
|
|
5,946
|
|
|
6,882
|
|
Other
|
|
6,799
|
|
|
7,398
|
|
|
7,216
|
|
|
28,362
|
|
|
30,521
|
|
Total noninterest
expense
|
|
65,014
|
|
|
67,264
|
|
|
66,877
|
|
|
261,142
|
|
|
266,149
|
|
Income before income
taxes
|
|
43,035
|
|
|
39,608
|
|
|
37,338
|
|
|
149,781
|
|
|
141,620
|
|
Provision for income
taxes
|
|
12,317
|
|
|
12,124
|
|
|
10,598
|
|
|
44,915
|
|
|
42,793
|
|
Net
Income
|
|
$
|
30,718
|
|
|
$
|
27,484
|
|
|
$
|
26,740
|
|
|
$
|
104,866
|
|
|
$
|
98,827
|
|
Earnings per common
share
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.53
|
|
|
$
|
0.47
|
|
|
$
|
0.46
|
|
|
$
|
1.81
|
|
|
$
|
1.71
|
|
Diluted
|
|
$
|
0.53
|
|
|
$
|
0.47
|
|
|
$
|
0.46
|
|
|
$
|
1.81
|
|
|
$
|
1.71
|
|
Dividends paid per
common share
|
|
$
|
0.39
|
|
|
$
|
0.39
|
|
|
$
|
0.36
|
|
|
$
|
1.53
|
|
|
$
|
1.34
|
|
Weighted average
number of common shares outstanding
|
|
57,220
|
|
|
57,215
|
|
|
57,057
|
|
|
57,184
|
|
|
57,019
|
|
Weighted average
number of diluted common shares outstanding
|
|
57,229
|
|
|
57,225
|
|
|
57,070
|
|
|
57,193
|
|
|
57,032
|
|
__________
|
(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
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
(in
thousands)
|
ASSETS
|
|
|
Cash and due from
banks
|
|
$
|
193,038
|
|
|
$
|
180,839
|
|
|
$
|
166,929
|
|
Interest-earning
deposits with banks
|
|
31,200
|
|
|
11,225
|
|
|
8,373
|
|
Total cash and cash
equivalents
|
|
224,238
|
|
|
192,064
|
|
|
175,302
|
|
Securities available
for sale at fair value (amortized cost of $2,299,037, $2,324,721
and $2,157,610, respectively)
|
|
2,278,577
|
|
|
2,360,084
|
|
|
2,157,694
|
|
Federal Home Loan
Bank stock at cost
|
|
10,240
|
|
|
12,640
|
|
|
12,722
|
|
Loans held for
sale
|
|
5,846
|
|
|
3,361
|
|
|
4,509
|
|
Loans, net of
unearned income of ($33,718), ($36,236) and ($42,373),
respectively
|
|
6,213,423
|
|
|
6,259,757
|
|
|
5,815,027
|
|
Less: allowance for
loan and lease losses
|
|
70,043
|
|
|
70,264
|
|
|
68,172
|
|
Loans, net
|
|
6,143,380
|
|
|
6,189,493
|
|
|
5,746,855
|
|
FDIC loss-sharing
asset
|
|
3,535
|
|
|
3,592
|
|
|
6,568
|
|
Interest
receivable
|
|
|
|
30,074
|
|
|
31,606
|
|
|
27,877
|
|
Premises and
equipment, net
|
|
|
|
150,342
|
|
|
152,908
|
|
|
164,239
|
|
Other real estate
owned
|
|
|
|
5,998
|
|
|
8,994
|
|
|
13,738
|
|
Goodwill
|
|
|
|
382,762
|
|
|
382,762
|
|
|
382,762
|
|
Other intangible
assets, net
|
|
|
|
17,631
|
|
|
19,051
|
|
|
23,577
|
|
Other
assets
|
|
|
|
256,984
|
|
|
230,199
|
|
|
235,854
|
|
Total
assets
|
|
|
|
$
|
9,509,607
|
|
|
$
|
9,586,754
|
|
|
$
|
8,951,697
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
|
|
$
|
3,944,495
|
|
|
$
|
3,942,434
|
|
|
$
|
3,507,358
|
|
Interest-bearing
|
|
|
|
4,114,920
|
|
|
4,115,382
|
|
|
3,931,471
|
|
Total
deposits
|
|
|
|
8,059,415
|
|
|
8,057,816
|
|
|
7,438,829
|
|
Federal Home Loan
Bank advances
|
|
|
6,493
|
|
|
66,502
|
|
|
68,531
|
|
Securities sold under
agreements to repurchase
|
|
80,822
|
|
|
69,189
|
|
|
99,699
|
|
Other
liabilities
|
|
|
|
111.865
|
|
|
116,512
|
|
|
102,510
|
|
Total
liabilities
|
|
|
|
8,258,595
|
|
|
8,310,019
|
|
|
7,709,569
|
|
Commitments and
contingent liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
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
|
58,042
|
|
|
58,043
|
|
|
57,724
|
|
|
995,837
|
|
|
994,098
|
|
|
990,281
|
|
Retained
earnings
|
|
|
|
|
|
|
271,957
|
|
|
263,915
|
|
|
255,925
|
|
Accumulated other
comprehensive income (loss)
|
|
|
|
|
|
(18,999)
|
|
|
16,505
|
|
|
(6,295)
|
|
Total shareholders'
equity
|
|
|
|
|
|
|
1,251,012
|
|
|
1,276,735
|
|
|
1,242,128
|
|
Total liabilities and
shareholders' equity
|
|
|
|
|
|
$
|
9.509,607
|
|
|
$
|
9,586,754
|
|
|
$
|
8,951,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE
BALANCES AND RATES
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
December 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)
|
|
$
|
6,200,506
|
|
|
$
|
75,838
|
|
|
4.89
|
%
|
|
$
|
5,762,048
|
|
|
$
|
72,322
|
|
|
5.02
|
%
|
Taxable
securities
|
|
1,853,788
|
|
|
9,333
|
|
|
2.01
|
%
|
|
1,686,594
|
|
|
8,516
|
|
|
2.02
|
%
|
Tax exempt securities
(2)
|
|
460,733
|
|
|
4,191
|
|
|
3.64
|
%
|
|
450,109
|
|
|
4,417
|
|
|
3.93
|
%
|
Interest-earning
deposits with banks
|
|
97,471
|
|
|
135
|
|
|
0.55
|
%
|
|
38,557
|
|
|
25
|
|
|
0.26
|
%
|
Total
interest-earning assets
|
|
8,612,498
|
|
|
$
|
89,497
|
|
|
4.16
|
%
|
|
7,937,308
|
|
|
$
|
85,280
|
|
|
4.30
|
%
|
Other earning
assets
|
|
162,591
|
|
|
|
|
|
|
153,298
|
|
|
|
|
|
Noninterest-earning
assets
|
|
793,125
|
|
|
|
|
|
|
815,137
|
|
|
|
|
|
Total
assets
|
|
$
|
9,568,214
|
|
|
|
|
|
|
$
|
8,905,743
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
Certificates of
deposit
|
|
$
|
410,372
|
|
|
$
|
114
|
|
|
0.11
|
%
|
|
$
|
460,858
|
|
|
$
|
179
|
|
|
0.16
|
%
|
Savings
accounts
|
|
720,453
|
|
|
18
|
|
|
0.01
|
%
|
|
653,738
|
|
|
17
|
|
|
0.01
|
%
|
Interest-bearing
demand
|
|
969,104
|
|
|
154
|
|
|
0.06
|
%
|
|
920,021
|
|
|
161
|
|
|
0.07
|
%
|
Money market
accounts
|
|
2,051,766
|
|
|
496
|
|
|
0.10
|
%
|
|
1,898,384
|
|
|
376
|
|
|
0.08
|
%
|
Total
interest-bearing deposits
|
|
4,151,695
|
|
|
782
|
|
|
0.08
|
%
|
|
3,933,001
|
|
|
733
|
|
|
0.07
|
%
|
Federal Home Loan
Bank advances
|
|
10,128
|
|
|
77
|
|
|
3.04
|
%
|
|
18,915
|
|
|
83
|
|
|
1.76
|
%
|
Other
borrowings
|
|
60,997
|
|
|
138
|
|
|
0.90
|
%
|
|
79,298
|
|
|
134
|
|
|
0.68
|
%
|
Total
interest-bearing liabilities
|
|
4,222,820
|
|
|
$
|
997
|
|
|
0.09
|
%
|
|
4,031,214
|
|
|
$
|
950
|
|
|
0.09
|
%
|
Noninterest-bearing
deposits
|
|
3,953,827
|
|
|
|
|
|
|
3,507,627
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
117,179
|
|
|
|
|
|
|
107,785
|
|
|
|
|
|
Shareholders'
equity
|
|
1,274,388
|
|
|
|
|
|
|
1,259,117
|
|
|
|
|
|
Total
liabilities & shareholders' equity
|
|
$
|
9,568,214
|
|
|
|
|
|
|
$
|
8,905,743
|
|
|
|
|
|
Net interest income
(tax equivalent)
|
|
$
|
88,500
|
|
|
|
|
|
|
$
|
84,330
|
|
|
|
Net interest margin
(tax equivalent)
|
|
4.11
|
%
|
|
|
|
|
|
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 $1.7 million and
$1.1 million for the three month periods ended December 31,
2016 and December 31, 2015, respectively. The incremental
accretion on acquired loans was $4.3 million and $6.0 million for
the three months ended December 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 $1.3 million and $964
thousand for the three months ended December 31, 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 December 31, 2016 and 2015.
|
AVERAGE
BALANCES AND RATES
|
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
December 31,
2016
|
|
September 30,
2016
|
|
|
Average
Balances
|
|
Interest
Earned / Paid
|
|
Average
Rate
|
|
Average
Balances
|
|
Interest
Earned / Paid
|
|
Average
Rate
|
|
|
(dollars in
thousands)
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
net (1)(2)
|
|
$
|
6,200,506
|
|
|
$
|
75,838
|
|
|
4.89
|
%
|
|
$
|
6,179,163
|
|
|
$
|
76,195
|
|
|
4.93
|
%
|
Taxable
securities
|
|
1,853,788
|
|
|
9,333
|
|
|
2.01
|
%
|
|
1,870,466
|
|
|
8,988
|
|
|
1.92
|
%
|
Tax exempt securities
(2)
|
|
460,733
|
|
|
4,191
|
|
|
3.64
|
%
|
|
480,627
|
|
|
4,306
|
|
|
3.58
|
%
|
Interest-earning
deposits with banks
|
|
97,471
|
|
|
135
|
|
|
0.55
|
%
|
|
14,620
|
|
|
15
|
|
|
0.41
|
%
|
Total
interest-earning assets
|
|
8,612,498
|
|
|
$
|
89,497
|
|
|
4.16
|
%
|
|
8,544,876
|
|
|
$
|
89,504
|
|
|
4.19
|
%
|
Other earning
assets
|
|
162,591
|
|
|
|
|
|
|
155,663
|
|
|
|
|
|
Noninterest-earning
assets
|
|
793,125
|
|
|
|
|
|
|
792,912
|
|
|
|
|
|
Total
assets
|
|
$
|
9,568,214
|
|
|
|
|
|
|
$
|
9,493,451
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
Certificates of
deposit
|
|
$
|
410,372
|
|
|
$
|
114
|
|
|
0.11
|
%
|
|
$
|
417,887
|
|
|
$
|
124
|
|
|
0.12
|
%
|
Savings
accounts
|
|
720,453
|
|
|
18
|
|
|
0.01
|
%
|
|
705,923
|
|
|
18
|
|
|
0.01
|
%
|
Interest-bearing
demand
|
|
969,104
|
|
|
154
|
|
|
0.06
|
%
|
|
961,527
|
|
|
189
|
|
|
0.08
|
%
|
Money market
accounts
|
|
2,051,766
|
|
|
496
|
|
|
0.10
|
%
|
|
2,033,450
|
|
|
492
|
|
|
0.10
|
%
|
Total
interest-bearing deposits
|
|
4,151,695
|
|
|
782
|
|
|
0.08
|
%
|
|
4,118,787
|
|
|
823
|
|
|
0.08
|
%
|
Federal Home Loan
Bank advances
|
|
10,128
|
|
|
77
|
|
|
3.04
|
%
|
|
96,931
|
|
|
229
|
|
|
0.95
|
%
|
Other
borrowings
|
|
60,997
|
|
|
138
|
|
|
0.90
|
%
|
|
79,767
|
|
|
134
|
|
|
0.67
|
%
|
Total
interest-bearing liabilities
|
|
4,222,820
|
|
|
$
|
997
|
|
|
0.09
|
%
|
|
4,295,485
|
|
|
$
|
1,186
|
|
|
0.11
|
%
|
Noninterest-bearing
deposits
|
|
3,953,827
|
|
|
|
|
|
|
3,799,745
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
117,179
|
|
|
|
|
|
|
119,633
|
|
|
|
|
|
Shareholders'
equity
|
|
1,274,388
|
|
|
|
|
|
|
1,278,588
|
|
|
|
|
|
Total
liabilities & shareholders' equity
|
|
$
|
9,568,214
|
|
|
|
|
|
|
$
|
9,493,451
|
|
|
|
|
|
Net interest income
(tax equivalent)
|
|
$
|
88,500
|
|
|
|
|
|
|
$
|
88,318
|
|
|
|
Net interest margin
(tax equivalent)
|
|
4.11
|
%
|
|
|
|
|
|
4.13
|
%
|
|
|
(1)
|
Nonaccrual loans have
been included in the tables as loans carrying a zero yield.
Amortized net deferred loan fees and net unearned discounts on
acquired loans were included in the interest income calculations.
The amortization of net deferred loan fees was $1.7 million and
$1.4 million for the three month periods ended December 31,
2016 and September 30, 2016. The incremental accretion on
acquired loans was $4.3 million and $4.6 million for the three
months ended December 31, 2016 and September 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 $1.3 million and $1.2
million for the three months ended December 31, 2016 and
September 30, 2016, respectively. The tax equivalent yield
adjustment to interest earned on tax exempt securities was $1.5
million and $1.5 million for the three month periods ended
December 31, 2016 and September 30, 2016,
respectively.
|
AVERAGE
BALANCES AND RATES
|
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31,
|
|
Twelve Months
Ended December 31,
|
|
|
2016
|
|
2015
|
|
|
Average
Balances
|
|
Interest
Earned / Paid
|
|
Average
Rate
|
|
Average
Balances
|
|
Interest
Earned / Paid
|
|
Average
Rate
|
|
|
(dollars in
thousands)
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net
(1)(2)
|
|
$
|
6,052,389
|
|
|
$
|
296,283
|
|
|
4.90
|
%
|
|
$
|
5,609,261
|
|
|
$
|
289,450
|
|
|
5.16
|
%
|
Taxable
securities
|
|
1,804,004
|
|
|
35,167
|
|
|
1.95
|
%
|
|
1,577,711
|
|
|
30,774
|
|
|
1.95
|
%
|
Tax exempt securities
(2)
|
|
465,117
|
|
|
17,109
|
|
|
3.68
|
%
|
|
454,148
|
|
|
18,219
|
|
|
4.01
|
%
|
Interest-earning
deposits with banks
|
|
41,799
|
|
|
216
|
|
|
0.52
|
%
|
|
44,614
|
|
|
109
|
|
|
0.24
|
%
|
Total
interest-earning assets
|
|
8,363,309
|
|
|
$
|
348,775
|
|
|
4.17
|
%
|
|
7,685,734
|
|
|
$
|
338,552
|
|
|
4.40
|
%
|
Other earning
assets
|
|
156,871
|
|
|
|
|
|
|
149,476
|
|
|
|
|
|
Noninterest-earning
assets
|
|
791,441
|
|
|
|
|
|
|
820,033
|
|
|
|
|
|
Total
assets
|
|
$
|
9,311,621
|
|
|
|
|
|
|
$
|
8,655,243
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
Certificates of
deposit
|
|
$
|
426,296
|
|
|
$
|
522
|
|
|
0.12
|
%
|
|
$
|
483,193
|
|
|
$
|
868
|
|
|
0.18
|
%
|
Savings
accounts
|
|
698,687
|
|
|
71
|
|
|
0.01
|
%
|
|
637,464
|
|
|
70
|
|
|
0.01
|
%
|
Interest-bearing
demand
|
|
952,135
|
|
|
695
|
|
|
0.07
|
%
|
|
982,491
|
|
|
612
|
|
|
0.06
|
%
|
Money market
accounts
|
|
1,993,283
|
|
|
1,846
|
|
|
0.09
|
%
|
|
1,834,733
|
|
|
1,427
|
|
|
0.08
|
%
|
Total
interest-bearing deposits
|
|
4,070,401
|
|
|
3,134
|
|
|
0.08
|
%
|
|
3,937,881
|
|
|
2,977
|
|
|
0.08
|
%
|
Federal Home Loan
Bank advances
|
|
79,673
|
|
|
671
|
|
|
0.84
|
%
|
|
70,678
|
|
|
474
|
|
|
0.67
|
%
|
Other
borrowings
|
|
77,022
|
|
|
545
|
|
|
0.71
|
%
|
|
88,924
|
|
|
553
|
|
|
0.62
|
%
|
Total
interest-bearing liabilities
|
|
4,227,096
|
|
|
$
|
4,350
|
|
|
0.10
|
%
|
|
4,097,483
|
|
|
$
|
4,004
|
|
|
0.10
|
%
|
Noninterest-bearing
deposits
|
|
3,703,908
|
|
|
|
|
|
|
3,208,947
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
110,816
|
|
|
|
|
|
|
101,861
|
|
|
|
|
|
Shareholders'
equity
|
|
1,269,801
|
|
|
|
|
|
|
1,246,952
|
|
|
|
|
|
Total
liabilities & shareholders' equity
|
|
$
|
9,311,621
|
|
|
|
|
|
|
$
|
8,655,243
|
|
|
|
|
|
Net interest income
(tax equivalent)
|
|
$
|
344,425
|
|
|
|
|
|
|
$
|
334,548
|
|
|
|
Net interest margin
(tax equivalent)
|
|
4.12
|
%
|
|
|
|
|
|
4.35
|
%
|
|
|
(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 $5.3 million and
$4.9 million for the twelve months ended December 31, 2016 and
2015, respectively. The incremental accretion on acquired loans was
$18.0 million and $27.2 million for the twelve months ended
December 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 $4.8 million and $3.3
million for the twelve months ended December 31, 2016 and
2015, respectively. The tax equivalent yield adjustment to interest
earned on tax exempt securities was $6.0 million and $6.4 million
for the twelve months ended December 31, 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
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating net
interest margin non-GAAP reconciliation:
|
|
(dollars in
thousands)
|
Net interest income
(tax equivalent) (1)
|
|
$
|
88,500
|
|
|
$
|
88,318
|
|
|
$
|
84,330
|
|
|
$
|
344,425
|
|
|
$
|
334,548
|
|
Adjustments to arrive
at operating net interest income (tax equivalent):
|
|
|
|
|
|
|
|
|
|
|
Incremental accretion
income on FDIC purchased credit impaired loans
|
|
(1,199)
|
|
|
(1,816)
|
|
|
(2,200)
|
|
|
(5,972)
|
|
|
(9,096)
|
|
Incremental accretion
income on other FDIC acquired loans (2)
|
|
—
|
|
|
—
|
|
|
(68)
|
|
|
—
|
|
|
(234)
|
|
Incremental accretion
income on other acquired loans
|
|
(3,087)
|
|
|
(2,749)
|
|
|
(3,746)
|
|
|
(11,983)
|
|
|
(17,862)
|
|
Premium amortization
on acquired securities
|
|
1,348
|
|
|
1,991
|
|
|
2,253
|
|
|
7,738
|
|
|
10,217
|
|
Interest reversals on
nonaccrual loans
|
|
246
|
|
|
266
|
|
|
582
|
|
|
1,072
|
|
|
1,713
|
|
Operating net
interest income (tax equivalent) (1)
|
|
$
|
85,808
|
|
|
$
|
86,010
|
|
|
$
|
81,151
|
|
|
$
|
335,280
|
|
|
$
|
319,286
|
|
Average interest
earning assets
|
|
$
|
8,612,498
|
|
|
$
|
8,544,876
|
|
|
$
|
7,937,308
|
|
|
$
|
8,363,309
|
|
|
$
|
7,685,734
|
|
Net interest margin
(tax equivalent) (1)
|
|
4.11
|
%
|
|
4.13
|
%
|
|
4.25
|
%
|
|
4.12
|
%
|
|
4.35
|
%
|
Operating net
interest margin (tax equivalent) (1)
|
|
3.99
|
%
|
|
4.03
|
%
|
|
4.09
|
%
|
|
4.01
|
%
|
|
4.15
|
%
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Operating
efficiency ratio non-GAAP reconciliation:
|
|
(dollars in
thousands)
|
Noninterest expense
(numerator A)
|
|
$
|
65,014
|
|
|
$
|
67,264
|
|
|
$
|
66,877
|
|
|
$
|
261,142
|
|
|
$
|
266,149
|
|
Adjustments to arrive
at operating noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
expenses
|
|
(291)
|
|
|
—
|
|
|
(1,872)
|
|
|
(2,727)
|
|
|
(10,917)
|
|
Net benefit (cost) of
operation of OREO and OPPO
|
|
(612)
|
|
|
254
|
|
|
150
|
|
|
(544)
|
|
|
1,724
|
|
FDIC clawback
liability expense
|
|
28
|
|
|
(29)
|
|
|
(812)
|
|
|
(280)
|
|
|
(979)
|
|
Loss on asset
disposals
|
|
(7)
|
|
|
(31)
|
|
|
(52)
|
|
|
(205)
|
|
|
(433)
|
|
State of Washington
Business and Occupation ("B&O") taxes
|
|
(995)
|
|
|
(1,382)
|
|
|
(1,294)
|
|
|
(4,752)
|
|
|
(4,962)
|
|
Operating noninterest
expense (numerator B)
|
|
$
|
63,137
|
|
|
$
|
66,076
|
|
|
$
|
62,997
|
|
|
$
|
252,634
|
|
|
$
|
250,582
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(tax equivalent) (1)
|
|
$
|
88,500
|
|
|
$
|
88,318
|
|
|
$
|
84,330
|
|
|
$
|
344,425
|
|
|
$
|
334,548
|
|
Noninterest
income
|
|
22,330
|
|
|
23,166
|
|
|
24,745
|
|
|
88,082
|
|
|
91,473
|
|
Bank owned life
insurance tax equivalent adjustment
|
|
586
|
|
|
577
|
|
|
576
|
|
|
2,448
|
|
|
2,391
|
|
Total revenue (tax
equivalent) (denominator A)
|
|
$
|
111,416
|
|
|
$
|
112,061
|
|
|
$
|
109,651
|
|
|
$
|
434,955
|
|
|
$
|
428,412
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating net
interest income (tax equivalent) (1)
|
|
$
|
85,808
|
|
|
$
|
86,010
|
|
|
$
|
81,151
|
|
|
$
|
335,280
|
|
|
$
|
319,286
|
|
Adjustments to arrive
at operating noninterest income (tax equivalent):
|
|
|
|
|
|
|
|
|
|
|
Investment securities
gains, net
|
|
(7)
|
|
|
(572)
|
|
|
(281)
|
|
|
(1,181)
|
|
|
(1,581)
|
|
Gain on asset
disposals
|
|
(52)
|
|
|
(16)
|
|
|
(4)
|
|
|
(124)
|
|
|
(129)
|
|
Mortgage loan
repurchase liability adjustment
|
|
(391)
|
|
|
—
|
|
|
(3,147)
|
|
|
(391)
|
|
|
(3,147)
|
|
Change in FDIC
loss-sharing asset
|
|
388
|
|
|
104
|
|
|
1,031
|
|
|
2,585
|
|
|
4,010
|
|
Operating noninterest
income (tax equivalent)
|
|
22,854
|
|
|
23,259
|
|
|
22,920
|
|
|
91,419
|
|
|
93,017
|
|
Total operating
revenue (tax equivalent) (denominator B)
|
|
$
|
108,662
|
|
|
$
|
109,269
|
|
|
$
|
104,071
|
|
|
$
|
426,699
|
|
|
$
|
412,303
|
|
Efficiency ratio (tax
equivalent) (numerator A/denominator A)
|
|
58.35
|
%
|
|
60.02
|
%
|
|
60.99
|
%
|
|
60.04
|
%
|
|
62.12
|
%
|
Operating efficiency
ratio (tax equivalent) (numerator B/denominator B)
|
|
58.10
|
%
|
|
60.47
|
%
|
|
60.53
|
%
|
|
59.21
|
%
|
|
60.78
|
%
|
__________
|
(1) Tax-exempt
interest income has been adjusted to a tax equivalent basis. The
amount of such adjustment was an addition to net interest income of
$2.8 million, $2.7 million and $2.5 million for the three
months ended December 31, 2016, September 30, 2016
and December 31, 2015, respectively; and $10.8 million
and $9.7 million for the twelve months ended December 31, 2016
and December 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.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/columbia-banking-system-announces-record-fourth-quarter-and-full-year-2016-results-300397183.html
SOURCE Columbia Banking System, Inc.