Washington | 0-20288 | 91-1422237 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
1301 A Street Tacoma, WA | 98402 | |||
(Address of principal executive offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1 | Press Release dated July 26, 2012 reporting the financial results of Columbia Banking System, Inc. for the quarter ended June 30, 2012. | |
99.2 | Press Release dated July 26, 2012 announcing a regular quarterly cash dividend and a special, one-time cash dividend. |
COLUMBIA BANKING SYSTEM, INC. | ||||
Date: July 26, 2012 | /s/ MELANIE J. DRESSEL | |||
Melanie J. Dressel | ||||
President and Chief Executive Officer |
99.1 | Press Release dated July 26, 2012 reporting the financial results of Columbia Banking System, Inc. for the quarter ended June 30, 2012. |
99.2 | Press Release dated July 26, 2012 announcing a regular quarterly cash dividend and a special, one-time cash dividend. |
• |
• | Net income increased 38%, to $11.9 million compared to net income of $8.6 million for the 2nd quarter 2011 |
• | Net income per diluted common share increased to $0.30, as compared to $0.22 per common share for the 2nd quarter 2011 |
• | Noncovered loans increased 3% during the current quarter |
• | Business loans increased 8% from year-end 2011 |
• | Credit metrics continue to improve; noncovered nonperforming assets decreased for the sixth consecutive quarter, falling 21% from year-end 2011 |
• | Strong core deposits at 93% of total deposits |
• | Named one of Puget Sound Business Journal's “Washington's Best Workplaces” for the sixth consecutive year |
Acquired Loan Portfolio Activity | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2012 | June 30, 2011 | June 30, 2012 | June 30, 2011 | |||||||||||||
(in thousands) | ||||||||||||||||
Incremental accretion income on acquired impaired loans | $ | 13,875 | $ | 8,883 | $ | 33,196 | $ | 21,254 | ||||||||
Incremental accretion income on other acquired loans | 1,137 | — | 4,238 | — | ||||||||||||
(Provision) recapture for losses on covered loans | (11,688 | ) | (2,301 | ) | (27,373 | ) | (1,879 | ) | ||||||||
Change in FDIC loss-sharing asset | (168 | ) | (6,419 | ) | (1,836 | ) | (21,193 | ) | ||||||||
Claw back liability (expense) recapture | 208 | (448 | ) | 234 | (2,148 | ) | ||||||||||
Pre-tax earnings impact | $ | 3,364 | $ | (285 | ) | $ | 8,459 | $ | (3,966 | ) |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2012 | June 30, 2011 | June 30, 2012 | June 30, 2011 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Interest income as recorded | $ | 24,486 | $ | 16,782 | $ | 57,389 | $ | 38,084 | ||||||||
Less: Interest income at stated note rate | 9,474 | 7,899 | 19,955 | 16,830 | ||||||||||||
Incremental accretion income | $ | 15,012 | $ | 8,883 | $ | 37,434 | $ | 21,254 | ||||||||
Incremental accretion income due to: | ||||||||||||||||
Acquired impaired loans | $ | 13,875 | $ | 8,883 | $ | 33,196 | $ | 21,254 | ||||||||
Other acquired loans | 1,137 | — | 4,238 | — | ||||||||||||
Incremental accretion income | $ | 15,012 | $ | 8,883 | $ | 37,434 | $ | 21,254 | ||||||||
Reported net interest margin | 5.88 | % | 5.49 | % | 6.27 | % | 5.64 | % | ||||||||
Net interest margin excluding additional accretion income | 4.44 | % | 4.53 | % | 4.46 | % | 4.48 | % |
June 30, 2012 | March 31, 2012 | December 31, 2011 | ||||||||||
(dollars in thousands) | ||||||||||||
Nonaccrual noncovered loans: | ||||||||||||
Commercial business | $ | 13,052 | $ | 14,791 | $ | 10,243 | ||||||
Real estate: | ||||||||||||
One-to-four family residential | 2,244 | 2,624 | 2,696 | |||||||||
Commercial and multifamily residential | 23,302 | 24,872 | 19,485 | |||||||||
Total real estate | 25,546 | 27,496 | 22,181 | |||||||||
Real estate construction: | ||||||||||||
One-to-four family residential | 5,223 | 8,793 | 10,785 | |||||||||
Commercial and multifamily residential | 3,754 | 5,023 | 7,067 | |||||||||
Total real estate construction | 8,977 | 13,816 | 17,852 | |||||||||
Consumer | 1,890 | 1,449 | 3,207 | |||||||||
Total nonaccrual loans | 49,465 | 57,552 | 53,483 | |||||||||
Noncovered other real estate owned and other personal property owned | 17,608 | 21,571 | 31,905 | |||||||||
Total nonperforming noncovered assets | $ | 67,073 | $ | 79,123 | $ | 85,388 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(in thousands) | ||||||||||||||||
Beginning balance | $ | 52,283 | $ | 55,315 | $ | 53,041 | $ | 60,993 | ||||||||
Charge-offs: | ||||||||||||||||
Commercial business | (2,044 | ) | (834 | ) | (4,403 | ) | (4,205 | ) | ||||||||
One-to-four family residential real estate | (334 | ) | (216 | ) | (449 | ) | (664 | ) | ||||||||
Commercial and multifamily residential real estate | (1,839 | ) | (1,554 | ) | (4,516 | ) | (1,919 | ) | ||||||||
One-to-four family residential real estate construction | (897 | ) | (805 | ) | (1,102 | ) | (2,232 | ) | ||||||||
Commercial and multifamily residential real estate construction | (93 | ) | (1,078 | ) | (93 | ) | (1,565 | ) | ||||||||
Consumer | (374 | ) | (271 | ) | (1,467 | ) | (1,196 | ) | ||||||||
Total charge-offs | (5,581 | ) | (4,758 | ) | (12,030 | ) | (11,781 | ) | ||||||||
Recoveries: | ||||||||||||||||
Commercial business | 378 | 592 | 1,036 | 697 | ||||||||||||
One-to-four family residential real estate | 2 | — | 45 | — | ||||||||||||
Commercial and multifamily residential real estate | 822 | 13 | 892 | 86 | ||||||||||||
One-to-four family residential real estate construction | 455 | 700 | 502 | 1,804 | ||||||||||||
Commercial and multifamily residential real estate construction | 1 | — | 1 | — | ||||||||||||
Consumer | 86 | 45 | 459 | 108 | ||||||||||||
Total recoveries | 1,744 | 1,350 | 2,935 | 2,695 | ||||||||||||
Net charge-offs | (3,837 | ) | (3,408 | ) | (9,095 | ) | (9,086 | ) | ||||||||
Provision charged to expense | 3,750 | 2,150 | 8,250 | 2,150 | ||||||||||||
Ending balance | $ | 52,196 | $ | 54,057 | $ | 52,196 | $ | 54,057 |
Three Months Ended | ||||||||||||
June 30, | March 31, | |||||||||||
2012 | 2011 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Adjustments reflected in income | ||||||||||||
Amortization, net | (9,851 | ) | (8,059 | ) | (13,873 | ) | ||||||
Impairment | 9,350 | 1,841 | 12,548 | |||||||||
Sale of other real estate | (1,498 | ) | (1,149 | ) | (2,067 | ) | ||||||
Write-downs of other real estate | 1,732 | 443 | 1,629 | |||||||||
Other | 99 | 505 | 95 | |||||||||
Change in FDIC loss-sharing asset | $ | (168 | ) | $ | (6,419 | ) | $ | (1,668 | ) |
FINANCIAL STATISTICS | |||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | Six Months Ended | |||||||||||||||||||
Unaudited | June 30, | June 30, | |||||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
Earnings | (in thousands except per share amounts) | ||||||||||||||||||||
Net interest income | $ | 59,701 | $ | 49,375 | $ | 126,764 | $ | 99,824 | |||||||||||||
Provision for loan and lease losses | $ | 3,750 | $ | 2,150 | $ | 8,250 | $ | 2,150 | |||||||||||||
Provision for losses on covered loans, net (5) | $ | 11,688 | $ | 2,301 | $ | 27,373 | $ | 1,879 | |||||||||||||
Noninterest income (loss) | $ | 11,828 | $ | 3,542 | $ | 21,402 | $ | (1,877 | ) | ||||||||||||
Noninterest expense | $ | 39,825 | $ | 37,164 | $ | 84,177 | $ | 74,510 | |||||||||||||
Net income | $ | 11,899 | $ | 8,632 | $ | 20,801 | $ | 14,411 | |||||||||||||
Per Common Share | |||||||||||||||||||||
Earnings (basic) | $ | 0.30 | $ | 0.22 | $ | 0.52 | $ | 0.37 | |||||||||||||
Earnings (diluted) | $ | 0.30 | $ | 0.22 | $ | 0.52 | $ | 0.36 | |||||||||||||
Book value | $ | 19.13 | $ | 18.43 | $ | 19.13 | $ | 17.97 | |||||||||||||
Averages | |||||||||||||||||||||
Total assets | $ | 4,788,723 | $ | 4,324,390 | $ | 4,782,454 | $ | 4,296,494 | |||||||||||||
Interest-earning assets | $ | 4,194,281 | $ | 3,719,558 | $ | 4,167,048 | $ | 3,676,351 | |||||||||||||
Loans, including covered loans | $ | 2,895,436 | $ | 2,439,439 | $ | 2,877,980 | $ | 2,413,899 | |||||||||||||
Securities | $ | 1,029,337 | $ | 988,839 | $ | 1,027,385 | $ | 878,712 | |||||||||||||
Deposits | $ | 3,823,985 | $ | 3,382,486 | $ | 3,814,655 | $ | 3,344,538 | |||||||||||||
Core deposits | $ | 3,555,279 | $ | 3,073,068 | $ | 3,533,885 | $ | 3,031,677 | |||||||||||||
Interest-bearing deposits | $ | 2,682,092 | $ | 2,479,485 | $ | 2,677,502 | $ | 2,454,790 | |||||||||||||
Interest-bearing liabilities | $ | 2,820,857 | $ | 2,647,990 | $ | 2,818,359 | $ | 2,621,987 | |||||||||||||
Noninterest-bearing deposits | $ | 1,141,893 | $ | 903,001 | $ | 1,137,153 | $ | 889,748 | |||||||||||||
Shareholders' equity | $ | 758,391 | $ | 719,165 | $ | 760,038 | $ | 714,748 | |||||||||||||
Financial Ratios | |||||||||||||||||||||
Return on average assets | 1.00 | % | 0.80 | % | 0.87 | % | 0.68 | % | |||||||||||||
Return on average common equity | 6.31 | % | 4.81 | % | 5.50 | % | 4.07 | % | |||||||||||||
Average equity to average assets | 15.84 | % | 16.63 | % | 15.89 | % | 16.64 | % | |||||||||||||
Net interest margin | 5.88 | % | 5.49 | % | 6.27 | % | 5.64 | % | |||||||||||||
Efficiency ratio (tax equivalent)(1) | 68.54 | % | 69.49 | % | 70.00 | % | 71.35 | % | |||||||||||||
June 30, | December 31, | ||||||||||||||||||||
Period end | 2012 | 2011 | 2011 | ||||||||||||||||||
Total assets | $ | 4,789,413 | $ | 4,429,143 | $ | 4,785,945 | |||||||||||||||
Covered assets, net | $ | 482,073 | $ | 631,549 | $ | 560,055 | |||||||||||||||
Loans, excluding covered loans, net | $ | 2,436,961 | $ | 1,987,474 | $ | 2,348,371 | |||||||||||||||
Allowance for noncovered loan and lease losses | $ | 52,196 | $ | 54,057 | $ | 53,041 | |||||||||||||||
Securities | $ | 1,019,978 | $ | 1,008,559 | $ | 1,050,325 | |||||||||||||||
Deposits | $ | 3,830,817 | $ | 3,475,167 | $ | 3,815,529 | |||||||||||||||
Core deposits | $ | 3,568,307 | $ | 3,142,975 | $ | 3,510,435 | |||||||||||||||
Shareholders' equity | $ | 758,712 | $ | 727,680 | $ | 759,338 | |||||||||||||||
Nonperforming, noncovered assets | |||||||||||||||||||||
Nonaccrual loans | $ | 49,465 | $ | 59,404 | $ | 53,483 | |||||||||||||||
Other real estate owned ("OREO") and other personal property owned ("OPPO") | 17,608 | 37,116 | 31,905 | ||||||||||||||||||
Total nonperforming, noncovered assets | $ | 67,073 | $ | 96,520 | $ | 85,388 | |||||||||||||||
Nonperforming assets to period-end noncovered loans + OREO and OPPO | 2.73 | % | 4.77 | % | 3.59 | % | |||||||||||||||
Nonperforming loans to period-end noncovered loans | 2.03 | % | 2.99 | % | 2.28 | % | |||||||||||||||
Nonperforming assets to period-end noncovered assets | 1.56 | % | 2.54 | % | 2.02 | % | |||||||||||||||
Allowance for loan and lease losses to period-end noncovered loans | 2.14 | % | 2.72 | % | 2.26 | % | |||||||||||||||
Allowance for loan and lease losses to nonperforming noncovered loans | 105.52 | % | 91.00 | % | 99.17 | % | |||||||||||||||
Net noncovered loan charge-offs | $ | 9,094 | (2) | $ | 9,086 | (3) | $ | 15,352 | (4) | ||||||||||||
(1) Noninterest expense, excluding net cost of operation of other real estate and FDIC clawback liability expense, divided by the sum of net interest income and noninterest income on a tax equivalent basis, excluding gain/loss on sale of investment securities, impairment charge on investment securities, gain on bank acquisition, incremental accretion income on the acquired loan portfolio and the change in FDIC indemnification asset. | |||||||||||||||||||||
(2) For the six months ended June 30, 2012. | |||||||||||||||||||||
(3) For the six months ended June 30, 2011. | |||||||||||||||||||||
(4) For the twelve months ended December 31, 2011. | |||||||||||||||||||||
(5) Provision for losses on covered loans was partially offset by $9.4 million and $1.8 million in income recorded to Change in FDIC loss-sharing asset in the Consolidated Statements of Income for the three months ended June 30, 2012 and 2011, respectively. |
FINANCIAL STATISTICS | ||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||
Unaudited | June 30, | December 31, | ||||||||||||
2012 | 2011 | |||||||||||||
Loan Portfolio Composition | (dollars in thousands) | |||||||||||||
Noncovered loans: | ||||||||||||||
Commercial business | $ | 1,111,440 | 45.6 | % | $ | 1,031,721 | 43.9 | % | ||||||
Real estate: | ||||||||||||||
One-to-four family residential | 55,883 | 2.3 | % | 64,491 | 2.8 | % | ||||||||
Commercial and multifamily residential | 1,017,736 | 41.8 | % | 998,165 | 42.5 | % | ||||||||
Total real estate | 1,073,619 | 44.1 | % | 1,062,656 | 45.3 | % | ||||||||
Real estate construction: | ||||||||||||||
One-to-four family residential | 47,417 | 1.9 | % | 50,208 | 2.1 | % | ||||||||
Commercial and multifamily residential | 48,765 | 2.0 | % | 36,768 | 1.6 | % | ||||||||
Total real estate construction | 96,182 | 3.9 | % | 86,976 | 3.7 | % | ||||||||
Consumer | 167,387 | 6.9 | % | 183,235 | 7.8 | % | ||||||||
Subtotal loans | 2,448,628 | 100.5 | % | 2,364,588 | 100.7 | % | ||||||||
Less: Net unearned income | (11,667 | ) | (0.5 | )% | (16,217 | ) | (0.7 | )% | ||||||
Total noncovered loans, net of unearned income | 2,436,961 | 100.0 | % | 2,348,371 | 100.0 | % | ||||||||
Less: Allowance for loan and lease losses | (52,196 | ) | (53,041 | ) | ||||||||||
Noncovered loans, net | 2,384,765 | 2,295,330 | ||||||||||||
Covered loans, net of allowance for loan losses of ($31,784) and ($4,944), respectively | 462,994 | 531,929 | ||||||||||||
Total loans, net | $ | 2,847,759 | $ | 2,827,259 | ||||||||||
Loans held for sale | $ | 2,088 | $ | 2,148 | ||||||||||
June 30, | December 31, | |||||||||||||
2012 | 2011 | |||||||||||||
Deposit Composition | (dollars in thousands) | |||||||||||||
Core deposits: | ||||||||||||||
Demand and other non-interest bearing | $ | 1,159,462 | 30.3 | % | $ | 1,156,610 | 30.3 | % | ||||||
Interest bearing demand | 794,430 | 20.7 | % | 735,340 | 19.3 | % | ||||||||
Money market | 1,040,787 | 27.2 | % | 1,031,664 | 27.0 | % | ||||||||
Savings | 296,679 | 7.7 | % | 283,416 | 7.4 | % | ||||||||
Certificates of deposit less than $100,000 | 276,949 | 7.2 | % | 303,405 | 8.0 | % | ||||||||
Total core deposits | 3,568,307 | 93.1 | % | 3,510,435 | 92.0 | % | ||||||||
Certificates of deposit greater than $100,000 | 239,279 | 6.3 | % | 262,731 | 6.9 | % | ||||||||
Certificates of deposit insured by CDARS® | 23,062 | 0.6 | % | 42,080 | 1.1 | % | ||||||||
Subtotal | 3,830,648 | 100.0 | % | 3,815,246 | 100.0 | % | ||||||||
Premium resulting from acquisition date fair value adjustment | 169 | 283 | ||||||||||||
Total deposits | $ | 3,830,817 | $ | 3,815,529 |
FINANCIAL STATISTICS | ||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||
Unaudited | ||||||||||||||||
June 30, | December 31, | |||||||||||||||
2012 | 2011 | |||||||||||||||
OREO | OPPO | OREO | OPPO | |||||||||||||
OREO and OPPO Composition | (in thousands) | |||||||||||||||
Covered | $ | 19,079 | $ | 45 | $ | 28,126 | $ | 45 | ||||||||
Noncovered | 13,925 | 3,683 | 22,893 | 8,966 | ||||||||||||
Total | $ | 33,004 | $ | 3,728 | $ | 51,019 | $ | 9,011 | ||||||||
Three Months Ended | ||||||||||||||||
June 30, | March 31, | |||||||||||||||
OREO and OPPO Earnings Impact | 2012 | 2011 | 2012 | |||||||||||||
Net cost of operation of noncovered OREO | $ | 1,472 | $ | 2,440 | $ | 2,693 | ||||||||||
Net benefit of operation of covered OREO | (1,849 | ) | (2,226 | ) | (1,783 | ) | ||||||||||
Net cost (benefit) of operation of OREO | $ | (377 | ) | $ | 214 | $ | 910 | |||||||||
Noncovered OPPO expense, net | $ | 187 | $ | — | $ | 2,154 | ||||||||||
Covered OPPO expense (benefit), net | (10 | ) | — | 2 | ||||||||||||
OPPO expense, net (1) | $ | 177 | $ | — | $ | 2,156 | ||||||||||
(1) OPPO expense, net is included in Other noninterest expense in the Consolidated Statements of Income. |
QUARTERLY FINANCIAL STATISTICS | ||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | |||||||||||||||||||
Unaudited | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
2012 | 2012 | 2011 | 2011 | 2011 | ||||||||||||||||
(dollars in thousands except per share) | ||||||||||||||||||||
Earnings | ||||||||||||||||||||
Net interest income | $ | 59,701 | $ | 67,063 | $ | 72,124 | $ | 64,788 | $ | 49,375 | ||||||||||
Provision for loan and lease losses | $ | 3,750 | $ | 4,500 | $ | 4,750 | $ | 500 | $ | 2,150 | ||||||||||
Provision (recapture) for losses on covered loans | $ | 11,688 | $ | 15,685 | $ | (3,960 | ) | $ | 433 | $ | 2,301 | |||||||||
Noninterest income (loss) | $ | 11,828 | $ | 9,574 | $ | (9,602 | ) | $ | 2,196 | $ | 3,542 | |||||||||
Noninterest expense | $ | 39,825 | $ | 44,352 | $ | 41,314 | $ | 39,935 | $ | 37,164 | ||||||||||
Net income | $ | 11,899 | $ | 8,902 | $ | 14,754 | $ | 18,872 | $ | 8,632 | ||||||||||
Per Common Share | ||||||||||||||||||||
Earnings (basic) | $ | 0.30 | $ | 0.22 | $ | 0.37 | $ | 0.48 | $ | 0.22 | ||||||||||
Earnings (diluted) | $ | 0.30 | $ | 0.22 | $ | 0.37 | $ | 0.48 | $ | 0.22 | ||||||||||
Book value | $ | 19.13 | $ | 18.97 | $ | 19.23 | $ | 18.99 | $ | 18.43 | ||||||||||
Averages | ||||||||||||||||||||
Total assets | $ | 4,788,723 | $ | 4,776,186 | $ | 4,755,222 | $ | 4,680,901 | $ | 4,324,390 | ||||||||||
Interest-earning assets | $ | 4,194,281 | $ | 4,137,449 | $ | 4,098,603 | $ | 4,028,029 | $ | 3,719,558 | ||||||||||
Loans, including covered loans | $ | 2,895,436 | $ | 2,860,524 | $ | 2,817,279 | $ | 2,777,681 | $ | 2,439,439 | ||||||||||
Securities | $ | 1,029,337 | $ | 1,023,067 | $ | 957,727 | $ | 998,775 | $ | 988,839 | ||||||||||
Deposits | $ | 3,823,985 | $ | 3,805,324 | $ | 3,791,169 | $ | 3,678,931 | $ | 3,382,486 | ||||||||||
Core deposits | $ | 3,555,279 | $ | 3,512,490 | $ | 3,472,023 | $ | 3,332,234 | $ | 3,073,068 | ||||||||||
Interest-bearing deposits | $ | 2,682,092 | $ | 2,672,911 | $ | 2,664,133 | $ | 2,651,664 | $ | 2,479,485 | ||||||||||
Interest-bearing liabilities | $ | 2,820,857 | $ | 2,815,753 | $ | 2,808,497 | $ | 2,813,396 | $ | 2,647,990 | ||||||||||
Noninterest-bearing deposits | $ | 1,141,893 | $ | 1,132,413 | $ | 1,127,036 | $ | 1,027,268 | $ | 903,001 | ||||||||||
Shareholders' equity | $ | 758,391 | $ | 761,686 | $ | 757,696 | $ | 735,192 | $ | 719,165 | ||||||||||
Financial Ratios | ||||||||||||||||||||
Return on average assets | 1.00 | % | 0.75 | % | 1.23 | % | 1.60 | % | 0.80 | % | ||||||||||
Return on average common equity | 6.31 | % | 4.70 | % | 7.73 | % | 10.18 | % | 4.81 | % | ||||||||||
Average equity to average assets | 15.84 | % | 15.95 | % | 15.93 | % | 15.71 | % | 16.63 | % | ||||||||||
Net interest margin | 5.88 | % | 6.67 | % | 7.14 | % | 6.53 | % | 5.49 | % | ||||||||||
Efficiency ratio (tax equivalent) | 68.54 | % | 71.48 | % | 69.56 | % | 69.17 | % | 69.49 | % | ||||||||||
Period end | ||||||||||||||||||||
Total assets | $ | 4,789,413 | $ | 4,815,432 | $ | 4,785,945 | $ | 4,755,832 | $ | 4,429,143 | ||||||||||
Covered assets, net | $ | 482,073 | $ | 526,043 | $ | 560,055 | $ | 595,640 | $ | 631,549 | ||||||||||
Loans, excluding covered loans, net | $ | 2,436,961 | $ | 2,371,818 | $ | 2,348,371 | $ | 2,257,899 | $ | 1,987,474 | ||||||||||
Allowance for noncovered loan and lease losses | $ | 52,196 | $ | 52,283 | $ | 53,041 | $ | 50,422 | $ | 54,057 | ||||||||||
Securities | $ | 1,019,978 | $ | 1,021,428 | $ | 1,050,325 | $ | 1,018,069 | $ | 1,008,559 | ||||||||||
Deposits | $ | 3,830,817 | $ | 3,865,445 | $ | 3,815,529 | $ | 3,795,499 | $ | 3,475,167 | ||||||||||
Core deposits | $ | 3,568,307 | $ | 3,591,663 | $ | 3,510,435 | $ | 3,464,705 | $ | 3,142,975 | ||||||||||
Shareholders' equity | $ | 758,712 | $ | 752,703 | $ | 759,338 | $ | 749,966 | $ | 727,680 | ||||||||||
Nonperforming, noncovered assets | ||||||||||||||||||||
Nonaccrual loans | $ | 49,465 | $ | 57,552 | $ | 53,483 | $ | 55,183 | $ | 59,404 | ||||||||||
OREO and OPPO | 17,608 | 21,571 | 31,905 | 34,069 | 37,116 | |||||||||||||||
Total nonperforming, noncovered assets | $ | 67,073 | $ | 79,123 | $ | 85,388 | $ | 89,252 | $ | 96,520 | ||||||||||
Nonperforming assets to period-end noncovered loans + OREO and OPPO | 2.73 | % | 3.31 | % | 3.59 | % | 3.89 | % | 4.77 | % | ||||||||||
Nonperforming loans to period-end noncovered loans | 2.03 | % | 2.43 | % | 2.28 | % | 2.44 | % | 2.99 | % | ||||||||||
Nonperforming assets to period-end noncovered assets | 1.56 | % | 1.84 | % | 2.02 | % | 2.15 | % | 2.54 | % | ||||||||||
Allowance for loan and lease losses to period-end noncovered loans | 2.14 | % | 2.20 | % | 2.26 | % | 2.23 | % | 2.72 | % | ||||||||||
Allowance for loan and lease losses to nonperforming noncovered loans | 105.52 | % | 90.84 | % | 99.17 | % | 91.37 | % | 91.00 | % | ||||||||||
Net noncovered loan charge-offs | $ | 3,836 | $ | 5,258 | $ | 2,131 | $ | 4,135 | $ | 3,408 |
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | Six Months Ended | ||||||||||||||
Unaudited | June 30, | June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(in thousands except per share) | ||||||||||||||||
Interest Income | ||||||||||||||||
Loans | $ | 54,498 | $ | 44,362 | $ | 116,275 | $ | 91,791 | ||||||||
Taxable securities | 4,951 | 6,247 | 10,196 | 10,664 | ||||||||||||
Tax-exempt securities | 2,495 | 2,516 | 5,020 | 4,983 | ||||||||||||
Federal funds sold and deposits in banks | 170 | 184 | 335 | 482 | ||||||||||||
Total interest income | 62,114 | 53,309 | 131,826 | 107,920 | ||||||||||||
Interest Expense | ||||||||||||||||
Deposits | 1,561 | 2,848 | 3,340 | 5,927 | ||||||||||||
Federal Home Loan Bank advances | 734 | 714 | 1,484 | 1,408 | ||||||||||||
Long-term obligations | — | 253 | — | 504 | ||||||||||||
Other borrowings | 118 | 119 | 238 | 257 | ||||||||||||
Total interest expense | 2,413 | 3,934 | 5,062 | 8,096 | ||||||||||||
Net Interest Income | 59,701 | 49,375 | 126,764 | 99,824 | ||||||||||||
Provision for loan and lease losses | 3,750 | 2,150 | 8,250 | 2,150 | ||||||||||||
Provision for losses on covered loans, net | 11,688 | 2,301 | 27,373 | 1,879 | ||||||||||||
Net interest income after provision | 44,263 | 44,924 | 91,141 | 95,795 | ||||||||||||
Noninterest Income (Loss) | ||||||||||||||||
Service charges and other fees | 7,436 | 6,467 | 14,613 | 12,755 | ||||||||||||
Merchant services fees | 2,095 | 1,808 | 4,113 | 3,441 | ||||||||||||
Gain on sale of investment securities, net | — | — | 62 | — | ||||||||||||
Bank owned life insurance | 719 | 528 | 1,430 | 1,033 | ||||||||||||
Change in FDIC loss-sharing asset | (168 | ) | (6,419 | ) | (1,836 | ) | (21,193 | ) | ||||||||
Other | 1,746 | 1,158 | 3,020 | 2,087 | ||||||||||||
Total noninterest income (loss) | 11,828 | 3,542 | 21,402 | (1,877 | ) | |||||||||||
Noninterest Expense | ||||||||||||||||
Compensation and employee benefits | 20,966 | 19,459 | 42,961 | 38,380 | ||||||||||||
Occupancy | 5,091 | 4,388 | 10,424 | 8,785 | ||||||||||||
Merchant processing | 930 | 905 | 1,803 | 1,788 | ||||||||||||
Advertising and promotion | 1,119 | 1,012 | 2,001 | 1,913 | ||||||||||||
Data processing and communications | 2,551 | 1,913 | 4,764 | 3,837 | ||||||||||||
Legal and professional fees | 1,829 | 1,498 | 3,438 | 2,911 | ||||||||||||
Taxes, licenses and fees | 1,115 | 907 | 2,470 | 1,772 | ||||||||||||
Regulatory premiums | 925 | 1,279 | 1,785 | 2,979 | ||||||||||||
Net cost (benefit) of operation of other real estate | (377 | ) | 214 | 533 | (228 | ) | ||||||||||
Amortization of intangibles | 1,119 | 955 | 2,269 | 1,939 | ||||||||||||
FDIC clawback liability (recovery) | (208 | ) | 448 | (234 | ) | 2,148 | ||||||||||
Other | 4,765 | 4,186 | 11,963 | 8,286 | ||||||||||||
Total noninterest expense | 39,825 | 37,164 | 84,177 | 74,510 | ||||||||||||
Income before income taxes | 16,266 | 11,302 | 28,366 | 19,408 | ||||||||||||
Provision for income taxes | 4,367 | 2,670 | 7,565 | 4,997 | ||||||||||||
Net Income | $ | 11,899 | $ | 8,632 | $ | 20,801 | $ | 14,411 | ||||||||
Earnings per common share | ||||||||||||||||
Basic | $ | 0.30 | $ | 0.22 | $ | 0.52 | $ | 0.37 | ||||||||
Diluted | $ | 0.30 | $ | 0.22 | $ | 0.52 | $ | 0.36 | ||||||||
Dividends paid per common share | $ | 0.22 | $ | 0.05 | $ | 0.59 | $ | 0.08 | ||||||||
Weighted average number of common shares outstanding | 39,260 | 39,107 | 39,228 | 39,073 | ||||||||||||
Weighted average number of diluted common shares outstanding | 39,308 | 39,166 | 39,306 | 39,159 |
CONSOLIDATED BALANCE SHEETS | |||||||||||||
Columbia Banking System, Inc. | |||||||||||||
Unaudited | June 30, | December 31, | |||||||||||
2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||
ASSETS | |||||||||||||
Cash and due from banks | $ | 98,940 | $ | 91,364 | |||||||||
Interest-earning deposits with banks and federal funds sold | 270,873 | 202,925 | |||||||||||
Total cash and cash equivalents | 369,813 | 294,289 | |||||||||||
Securities available for sale at fair value (amortized cost of $956,636 and $987,560, respectively) | 997,763 | 1,028,110 | |||||||||||
Federal Home Loan Bank stock at cost | 22,215 | 22,215 | |||||||||||
Loans held for sale | 2,088 | 2,148 | |||||||||||
Loans, excluding covered loans, net of unearned income of ($11,666) and ($16,217), respectively | 2,436,961 | 2,348,371 | |||||||||||
Less: allowance for loan and lease losses | 52,196 | 53,041 | |||||||||||
Loans, excluding covered loans, net | 2,384,765 | 2,295,330 | |||||||||||
Covered loans, net of allowance for loan losses of ($31,784) and ($4,944), respectively | 462,994 | 531,929 | |||||||||||
Total loans, net | 2,847,759 | 2,827,259 | |||||||||||
FDIC loss-sharing asset | 140,003 | 175,071 | |||||||||||
Interest receivable | 15,560 | 15,287 | |||||||||||
Premises and equipment, net | 116,400 | 107,899 | |||||||||||
Other real estate owned ($19,079 and $28,126 covered by Federal Deposit Insurance Corporation loss-share, respectively) | 33,004 | 51,019 | |||||||||||
Goodwill | 115,554 | 115,554 | |||||||||||
Core deposit intangible, net | 17,896 | 20,166 | |||||||||||
Other assets | 111,358 | 126,928 | |||||||||||
Total assets | $ | 4,789,413 | $ | 4,785,945 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||
Deposits: | |||||||||||||
Noninterest-bearing | $ | 1,159,462 | $ | 1,156,610 | |||||||||
Interest-bearing | 2,671,355 | 2,658,919 | |||||||||||
Total deposits | 3,830,817 | 3,815,529 | |||||||||||
Federal Home Loan Bank advances | 113,145 | 119,009 | |||||||||||
Securities sold under agreements to repurchase | 25,000 | 25,000 | |||||||||||
Other liabilities | 61,739 | 67,069 | |||||||||||
Total liabilities | 4,030,701 | 4,026,607 | |||||||||||
Commitments and contingent liabilities | |||||||||||||
June 30, | December 31, | ||||||||||||
2012 | 2011 | ||||||||||||
Common stock (no par value) | |||||||||||||
Authorized shares | 63,033 | 63,033 | |||||||||||
Issued and outstanding | 39,655 | 39,506 | 580,358 | 579,136 | |||||||||
Retained earnings | 152,519 | 155,069 | |||||||||||
Accumulated other comprehensive income | 25,835 | 25,133 | |||||||||||
Total shareholders' equity | 758,712 | 759,338 | |||||||||||
Total liabilities and shareholders' equity | $ | 4,789,413 | $ | 4,785,945 |