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) |
þ | 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 January 24, 2013 reporting the financial results of Columbia Banking System, Inc. for the quarter ended December 31, 2012 and quarterly cash dividend. |
COLUMBIA BANKING SYSTEM, INC. | ||||
Date: January 31, 2013 | /s/ CLINT E. STEIN | |||
Clint E. Stein | ||||
Executive Vice President and Chief Financial Officer |
99.1 | Press Release dated January 24, 2013 reporting the financial results of Columbia Banking System, Inc. for the quarter ended December 31, 2012 and quarterly cash dividend. |
Three Months Ended | Year Ended | |||||||||||||||
December 31, 2012 | December 31, 2011 | December 31, 2012 | December 31, 2011 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Interest income as recorded | $ | 19,719 | $ | 38,722 | $ | 98,583 | $ | 109,581 | ||||||||
Less: Interest income at stated note rate | 7,848 | 12,316 | 37,406 | 42,221 | ||||||||||||
Incremental accretion income | $ | 11,871 | $ | 26,406 | $ | 61,177 | $ | 67,360 | ||||||||
Incremental accretion income due to: | ||||||||||||||||
Acquired impaired loans | $ | 10,850 | $ | 17,222 | $ | 55,305 | $ | 53,079 | ||||||||
Other acquired loans | 1,021 | 9,184 | 5,872 | 14,281 | ||||||||||||
Incremental accretion income | $ | 11,871 | $ | 26,406 | $ | 61,177 | $ | 67,360 | ||||||||
Reported net interest margin | 5.15 | % | 7.14 | % | 5.77 | % | 6.29 | % | ||||||||
Net interest margin excluding incremental accretion income, interest reversals on nonaccrual loans and prepayment charge on FHLB advances | 4.14 | % | 4.68 | % | 4.36 | % | 4.53 | % |
Acquired Loan Portfolio Activity | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, 2012 | December 31, 2011 | December 31, 2012 | December 31, 2011 | |||||||||||||
(in thousands) | ||||||||||||||||
Incremental accretion income on acquired impaired loans | $ | 10,850 | $ | 17,222 | $ | 55,305 | $ | 53,079 | ||||||||
Incremental accretion income on other acquired loans | 1,021 | 9,184 | 5,872 | 14,281 | ||||||||||||
(Provision) recapture for losses on covered loans | (2,511 | ) | 3,960 | (25,892 | ) | 1,648 | ||||||||||
Change in FDIC loss-sharing asset | (9,680 | ) | (17,448 | ) | (24,467 | ) | (49,496 | ) | ||||||||
Claw back liability benefit (expense) | 154 | (362 | ) | 54 | (3,656 | ) | ||||||||||
Pre-tax earnings impact | $ | (166 | ) | $ | 12,556 | $ | 10,872 | $ | 15,856 |
December 31, 2012 | September 30, 2012 | December 31, 2011 | ||||||||||
(dollars in thousands) | ||||||||||||
Nonaccrual noncovered loans: | ||||||||||||
Commercial business | $ | 9,299 | $ | 12,564 | $ | 10,243 | ||||||
Real estate: | ||||||||||||
One-to-four family residential | 2,349 | 2,220 | 2,696 | |||||||||
Commercial and multifamily residential | 19,204 | 19,459 | 19,485 | |||||||||
Total real estate | 21,553 | 21,679 | 22,181 | |||||||||
Real estate construction: | ||||||||||||
One-to-four family residential | 4,900 | 5,359 | 10,785 | |||||||||
Commercial and multifamily residential | — | — | 7,067 | |||||||||
Total real estate construction | 4,900 | 5,359 | 17,852 | |||||||||
Consumer | 1,643 | 1,987 | 3,207 | |||||||||
Total nonaccrual loans | 37,395 | 41,589 | 53,483 | |||||||||
Noncovered other real estate owned and other personal property owned | 11,108 | 11,749 | 31,905 | |||||||||
Total nonperforming noncovered assets | $ | 48,503 | $ | 53,338 | $ | 85,388 |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(in thousands) | ||||||||||||||||
Beginning balance | $ | 51,527 | $ | 50,422 | $ | 53,041 | $ | 60,993 | ||||||||
Charge-offs: | ||||||||||||||||
Commercial business | (1,903 | ) | (1,758 | ) | (10,173 | ) | (7,909 | ) | ||||||||
One-to-four family residential real estate | (50 | ) | — | (549 | ) | (717 | ) | |||||||||
Commercial and multifamily residential real estate | (365 | ) | (1,325 | ) | (5,474 | ) | (3,687 | ) | ||||||||
One-to-four family residential real estate construction | (181 | ) | (72 | ) | (1,606 | ) | (2,487 | ) | ||||||||
Commercial and multifamily residential real estate construction | — | (503 | ) | (93 | ) | (2,213 | ) | |||||||||
Consumer | (658 | ) | (620 | ) | (2,534 | ) | (3,918 | ) | ||||||||
Total charge-offs | (3,157 | ) | (4,278 | ) | (20,429 | ) | (20,931 | ) | ||||||||
Recoveries: | ||||||||||||||||
Commercial business | 234 | 1,441 | 1,548 | 2,598 | ||||||||||||
One-to-four family residential real estate | 83 | 2 | 285 | 80 | ||||||||||||
Commercial and multifamily residential real estate | 261 | 363 | 1,599 | 459 | ||||||||||||
One-to-four family residential real estate construction | 582 | 168 | 1,488 | 2,091 | ||||||||||||
Commercial and multifamily residential real estate construction | 2 | — | 66 | — | ||||||||||||
Consumer | 362 | 173 | 1,171 | 351 | ||||||||||||
Total recoveries | 1,524 | 2,147 | 6,157 | 5,579 | ||||||||||||
Net charge-offs | (1,633 | ) | (2,131 | ) | (14,272 | ) | (15,352 | ) | ||||||||
Provision charged to expense | 2,350 | 4,750 | 13,475 | 7,400 | ||||||||||||
Ending balance | $ | 52,244 | $ | 53,041 | $ | 52,244 | $ | 53,041 |
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(in thousands) | ||||||||||||||||
Adjustments reflected in income | ||||||||||||||||
Amortization, net | (9,522 | ) | (13,493 | ) | (42,940 | ) | (46,049 | ) | ||||||||
Loan impairment (recapture) | 2,009 | (3,742 | ) | 20,714 | (1,318 | ) | ||||||||||
Sale of other real estate | (2,908 | ) | (859 | ) | (7,789 | ) | (4,346 | ) | ||||||||
Write-downs of other real estate | 687 | 563 | 5,190 | 1,474 | ||||||||||||
Other | 54 | 83 | 358 | 743 | ||||||||||||
Change in FDIC loss-sharing asset | $ | (9,680 | ) | $ | (17,448 | ) | $ | (24,467 | ) | $ | (49,496 | ) |
FINANCIAL STATISTICS | |||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | Year Ended | |||||||||||||||||||
Unaudited | December 31, | December 31, | |||||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
Earnings | (dollars in thousands except per share amounts) | ||||||||||||||||||||
Net interest income | $ | 54,898 | $ | 72,124 | $ | 238,927 | $ | 236,736 | |||||||||||||
Provision for loan and lease losses | $ | 2,350 | $ | 4,750 | $ | 13,475 | $ | 7,400 | |||||||||||||
Provision (recapture) for losses on covered loans, net (1) | $ | 2,511 | $ | (3,960 | ) | $ | 25,892 | $ | (1,648 | ) | |||||||||||
Noninterest income (loss) | $ | 6,567 | $ | (9,602 | ) | $ | 27,058 | $ | (9,283 | ) | |||||||||||
Noninterest expense | $ | 37,800 | $ | 41,314 | $ | 162,913 | $ | 155,759 | |||||||||||||
Net income | $ | 13,462 | $ | 14,754 | $ | 46,143 | $ | 48,037 | |||||||||||||
Per Common Share | |||||||||||||||||||||
Earnings (basic) | $ | 0.34 | $ | 0.37 | $ | 1.16 | $ | 1.22 | |||||||||||||
Earnings (diluted) | $ | 0.34 | $ | 0.37 | $ | 1.16 | $ | 1.21 | |||||||||||||
Book value | $ | 19.25 | $ | 19.23 | $ | 19.25 | $ | 19.23 | |||||||||||||
Averages | |||||||||||||||||||||
Total assets | $ | 4,925,736 | $ | 4,755,222 | $ | 4,826,283 | $ | 4,509,010 | |||||||||||||
Interest-earning assets | $ | 4,388,487 | $ | 4,098,603 | $ | 4,246,724 | $ | 3,871,424 | |||||||||||||
Loans, including covered loans | $ | 2,926,825 | $ | 2,817,279 | $ | 2,900,520 | $ | 2,607,266 | |||||||||||||
Securities | $ | 1,007,059 | $ | 957,727 | $ | 1,011,294 | $ | 928,891 | |||||||||||||
Deposits | $ | 4,012,764 | $ | 3,791,169 | $ | 3,875,666 | $ | 3,541,399 | |||||||||||||
Core deposits | $ | 3,769,409 | $ | 3,472,023 | $ | 3,609,467 | $ | 3,218,425 | |||||||||||||
Interest-bearing deposits | $ | 2,714,292 | $ | 2,664,133 | $ | 2,683,630 | $ | 2,557,179 | |||||||||||||
Interest-bearing liabilities | $ | 2,796,155 | $ | 2,808,497 | $ | 2,808,968 | $ | 2,717,243 | |||||||||||||
Noninterest-bearing deposits | $ | 1,298,472 | $ | 1,127,036 | $ | 1,192,036 | $ | 984,220 | |||||||||||||
Shareholders' equity | $ | 767,781 | $ | 757,696 | $ | 761,185 | $ | 730,726 | |||||||||||||
Financial Ratios | |||||||||||||||||||||
Return on average assets | 1.09 | % | 1.23 | % | 0.96 | % | 1.07 | % | |||||||||||||
Return on average common equity | 6.98 | % | 7.73 | % | 6.06 | % | 6.57 | % | |||||||||||||
Average equity to average assets | 15.59 | % | 15.93 | % | 15.77 | % | 16.21 | % | |||||||||||||
Net interest margin | 5.15 | % | 7.14 | % | 5.77 | % | 6.27 | % | |||||||||||||
Efficiency ratio (tax equivalent)(2) | 68.26 | % | 69.56 | % | 69.17 | % | 70.68 | % | |||||||||||||
December 31, | |||||||||||||||||||||
Period end | 2012 | 2011 | |||||||||||||||||||
Total assets | $ | 4,906,335 | $ | 4,785,945 | |||||||||||||||||
Covered assets, net | $ | 407,648 | $ | 560,055 | |||||||||||||||||
Loans, excluding covered loans, net | $ | 2,525,710 | $ | 2,348,371 | |||||||||||||||||
Allowance for noncovered loan and lease losses | $ | 52,244 | $ | 53,041 | |||||||||||||||||
Securities | $ | 1,023,484 | $ | 1,050,325 | |||||||||||||||||
Deposits | $ | 4,042,085 | $ | 3,815,529 | |||||||||||||||||
Core deposits | $ | 3,802,366 | $ | 3,510,435 | |||||||||||||||||
Shareholders' equity | $ | 764,008 | $ | 759,338 | |||||||||||||||||
Nonperforming, noncovered assets | |||||||||||||||||||||
Nonaccrual loans | $ | 37,395 | $ | 53,483 | |||||||||||||||||
Other real estate owned ("OREO") and other personal property owned ("OPPO") | 11,108 | 31,905 | |||||||||||||||||||
Total nonperforming, noncovered assets | $ | 48,503 | $ | 85,388 | |||||||||||||||||
Nonperforming assets to period-end noncovered loans + OREO and OPPO | 1.91 | % | 3.59 | % | |||||||||||||||||
Nonperforming loans to period-end noncovered loans | 1.48 | % | 2.28 | % | |||||||||||||||||
Nonperforming assets to period-end noncovered assets | 1.08 | % | 2.02 | % | |||||||||||||||||
Allowance for loan and lease losses to period-end noncovered loans | 2.07 | % | 2.26 | % | |||||||||||||||||
Allowance for loan and lease losses to nonperforming noncovered loans | 139.71 | % | 99.17 | % | |||||||||||||||||
Net noncovered loan charge-offs | $ | 14,272 | (3) | $ | 15,352 | (4) | |||||||||||||||
(1) Provision (recapture) for losses on covered loans was partially offset by $2.0 million in income and $3.7 million in expense recorded to Change in FDIC loss-sharing asset in the Consolidated Statements of Income for the three months ended December 31, 2012 and 2011, respectively. For the year ended December 31, 2012 and 2011, provision (recapture) for losses on covered loans was partially offset by $20.7 million in income and $1.3 million in expense, respectively. | |||||||||||||||||||||
(2) Noninterest expense, excluding net cost of operation of other real estate, FDIC clawback liability expense and merger related expenses, divided by the sum of net interest income, excluding incremental accretion income on the acquired loan portfolio and prepayment expenses on FHLB advances, and noninterest income on a tax equivalent basis, excluding gain/loss on investment securities, gain on bank acquisition, and the change in FDIC loss-sharing asset. | |||||||||||||||||||||
(3) For the year ended December 31, 2012. | |||||||||||||||||||||
(4) For the year ended December 31, 2011. |
FINANCIAL STATISTICS | ||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||
Unaudited | December 31, | December 31, | ||||||||||||
2012 | 2011 | |||||||||||||
Loan Portfolio Composition | (dollars in thousands) | |||||||||||||
Noncovered loans: | ||||||||||||||
Commercial business | $ | 1,155,158 | 45.7 | % | $ | 1,031,721 | 43.9 | % | ||||||
Real estate: | ||||||||||||||
One-to-four family residential | 43,922 | 1.7 | % | 64,491 | 2.8 | % | ||||||||
Commercial and multifamily residential | 1,061,201 | 42.0 | % | 998,165 | 42.5 | % | ||||||||
Total real estate | 1,105,123 | 43.7 | % | 1,062,656 | 45.3 | % | ||||||||
Real estate construction: | ||||||||||||||
One-to-four family residential | 50,602 | 2.0 | % | 50,208 | 2.1 | % | ||||||||
Commercial and multifamily residential | 65,101 | 2.7 | % | 36,768 | 1.6 | % | ||||||||
Total real estate construction | 115,703 | 4.7 | % | 86,976 | 3.7 | % | ||||||||
Consumer | 157,493 | 6.2 | % | 183,235 | 7.8 | % | ||||||||
Subtotal loans | 2,533,477 | 100.3 | % | 2,364,588 | 100.7 | % | ||||||||
Less: Net unearned income | (7,767 | ) | (0.3 | )% | (16,217 | ) | (0.7 | )% | ||||||
Total noncovered loans, net of unearned income | 2,525,710 | 100.0 | % | 2,348,371 | 100.0 | % | ||||||||
Less: Allowance for loan and lease losses | (52,244 | ) | (53,041 | ) | ||||||||||
Noncovered loans, net | 2,473,466 | 2,295,330 | ||||||||||||
Covered loans, net of allowance for loan losses of ($29,157) and ($4,944), respectively | 391,337 | 531,929 | ||||||||||||
Total loans, net | $ | 2,864,803 | $ | 2,827,259 | ||||||||||
Loans held for sale | $ | 2,563 | $ | 2,148 | ||||||||||
December 31, | December 31, | |||||||||||||
2012 | 2011 | |||||||||||||
Deposit Composition | (dollars in thousands) | |||||||||||||
Core deposits: | ||||||||||||||
Demand and other non-interest bearing | $ | 1,321,171 | 32.7 | % | $ | 1,156,610 | 30.3 | % | ||||||
Interest bearing demand | 870,821 | 21.5 | % | 735,340 | 19.3 | % | ||||||||
Money market | 1,043,459 | 25.8 | % | 1,031,664 | 27.0 | % | ||||||||
Savings | 314,371 | 7.8 | % | 283,416 | 7.4 | % | ||||||||
Certificates of deposit less than $100,000 | 252,544 | 6.2 | % | 303,405 | 8.0 | % | ||||||||
Total core deposits | 3,802,366 | 94 | % | 3,510,435 | 92.0 | % | ||||||||
Certificates of deposit greater than $100,000 | 212,924 | 5.3 | % | 262,731 | 6.9 | % | ||||||||
Certificates of deposit insured by CDARS® | 26,720 | 0.7 | % | 42,080 | 1.1 | % | ||||||||
Subtotal | 4,042,010 | 100.0 | % | 3,815,246 | 100.0 | % | ||||||||
Premium resulting from acquisition date fair value adjustment | 75 | 283 | ||||||||||||
Total deposits | $ | 4,042,085 | $ | 3,815,529 |
FINANCIAL STATISTICS | ||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||
Unaudited | ||||||||||||||||
December 31, | December 31, | |||||||||||||||
2012 | 2011 | |||||||||||||||
OREO | OPPO | OREO | OPPO | |||||||||||||
OREO and OPPO Composition | (in thousands) | |||||||||||||||
Covered | $ | 16,311 | $ | 45 | $ | 28,126 | $ | — | ||||||||
Noncovered | 10,676 | 432 | 22,893 | 9,011 | ||||||||||||
Total | $ | 26,987 | $ | 477 | $ | 51,019 | $ | 9,011 | ||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
OREO and OPPO Earnings Impact | (in thousands) | |||||||||||||||
Net cost of operation of noncovered OREO | $ | 664 | $ | 1,567 | $ | 4,766 | $ | 7,416 | ||||||||
Net benefit of operation of covered OREO | (2,097 | ) | (2,166 | ) | (6,735 | ) | (8,438 | ) | ||||||||
Net benefit of operation of OREO | $ | (1,433 | ) | $ | (599 | ) | $ | (1,969 | ) | $ | (1,022 | ) | ||||
Noncovered OPPO cost (benefit), net | $ | (271 | ) | $ | 20 | $ | 1,971 | $ | (1,088 | ) | ||||||
Covered OPPO benefit, net | (197 | ) | (1 | ) | (213 | ) | (105 | ) | ||||||||
OPPO expense, net (1) | $ | (468 | ) | $ | 19 | $ | 1,758 | $ | (1,193 | ) | ||||||
(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 | December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
2012 | 2012 | 2012 | 2012 | 2011 | ||||||||||||||||
(dollars in thousands except per share) | ||||||||||||||||||||
Earnings | ||||||||||||||||||||
Net interest income | $ | 54,898 | $ | 57,265 | $ | 59,701 | $ | 67,063 | $ | 72,124 | ||||||||||
Provision for loan and lease losses | $ | 2,350 | $ | 2,875 | $ | 3,750 | $ | 4,500 | $ | 4,750 | ||||||||||
Provision (recapture) for losses on covered loans | $ | 2,511 | $ | (3,992 | ) | $ | 11,688 | $ | 15,685 | $ | (3,960 | ) | ||||||||
Noninterest income (loss) | $ | 6,567 | $ | (911 | ) | $ | 11,828 | $ | 9,574 | $ | (9,602 | ) | ||||||||
Noninterest expense | $ | 37,800 | $ | 40,936 | $ | 39,825 | $ | 44,352 | $ | 41,314 | ||||||||||
Net income | $ | 13,462 | $ | 11,880 | $ | 11,899 | $ | 8,902 | $ | 14,754 | ||||||||||
Per Common Share | ||||||||||||||||||||
Earnings (basic) | $ | 0.34 | $ | 0.30 | $ | 0.30 | $ | 0.22 | $ | 0.37 | ||||||||||
Earnings (diluted) | $ | 0.34 | $ | 0.30 | $ | 0.30 | $ | 0.22 | $ | 0.37 | ||||||||||
Book value | $ | 19.25 | $ | 19.20 | $ | 19.13 | $ | 18.97 | $ | 19.23 | ||||||||||
Averages | ||||||||||||||||||||
Total assets | $ | 4,925,736 | $ | 4,828,102 | $ | 4,788,723 | $ | 4,776,186 | $ | 4,755,222 | ||||||||||
Interest-earning assets | $ | 4,388,487 | $ | 4,263,414 | $ | 4,194,281 | $ | 4,137,449 | $ | 4,098,603 | ||||||||||
Loans, including covered loans | $ | 2,926,825 | $ | 2,919,520 | $ | 2,895,436 | $ | 2,860,524 | $ | 2,817,279 | ||||||||||
Securities | $ | 1,007,059 | $ | 983,815 | $ | 1,029,337 | $ | 1,023,067 | $ | 957,727 | ||||||||||
Deposits | $ | 4,012,764 | $ | 3,859,284 | $ | 3,823,985 | $ | 3,805,324 | $ | 3,791,169 | ||||||||||
Core deposits | $ | 3,769,409 | $ | 3,599,246 | $ | 3,555,279 | $ | 3,512,490 | $ | 3,472,023 | ||||||||||
Interest-bearing deposits | $ | 2,714,292 | $ | 2,665,094 | $ | 2,682,092 | $ | 2,672,911 | $ | 2,664,133 | ||||||||||
Interest-bearing liabilities | $ | 2,796,155 | $ | 2,803,201 | $ | 2,820,857 | $ | 2,815,753 | $ | 2,808,497 | ||||||||||
Noninterest-bearing deposits | $ | 1,298,472 | $ | 1,194,190 | $ | 1,141,893 | $ | 1,132,413 | $ | 1,127,036 | ||||||||||
Shareholders' equity | $ | 767,781 | $ | 761,281 | $ | 758,391 | $ | 761,686 | $ | 757,696 | ||||||||||
Financial Ratios | ||||||||||||||||||||
Return on average assets | 1.09 | % | 0.98 | % | 1.00 | % | 0.75 | % | 1.23 | % | ||||||||||
Return on average common equity | 6.98 | % | 6.21 | % | 6.31 | % | 4.70 | % | 7.73 | % | ||||||||||
Average equity to average assets | 15.59 | % | 15.77 | % | 15.84 | % | 15.95 | % | 15.93 | % | ||||||||||
Net interest margin | 5.15 | % | 5.52 | % | 5.88 | % | 6.67 | % | 7.14 | % | ||||||||||
Efficiency ratio (tax equivalent) | 68.26 | % | 68.46 | % | 68.54 | % | 71.48 | % | 69.56 | % | ||||||||||
Period end | ||||||||||||||||||||
Total assets | $ | 4,906,335 | $ | 4,903,049 | $ | 4,789,413 | $ | 4,815,432 | $ | 4,785,945 | ||||||||||
Covered assets, net | $ | 407,648 | $ | 445,797 | $ | 482,073 | $ | 526,043 | $ | 560,055 | ||||||||||
Loans, excluding covered loans, net | $ | 2,525,710 | $ | 2,476,844 | $ | 2,436,961 | $ | 2,371,818 | $ | 2,348,371 | ||||||||||
Allowance for noncovered loan and lease losses | $ | 52,244 | $ | 51,527 | $ | 52,196 | $ | 52,283 | $ | 53,041 | ||||||||||
Securities | $ | 1,023,484 | $ | 965,641 | $ | 1,019,978 | $ | 1,021,428 | $ | 1,050,325 | ||||||||||
Deposits | $ | 4,042,085 | $ | 3,938,855 | $ | 3,830,817 | $ | 3,865,445 | $ | 3,815,529 | ||||||||||
Core deposits | $ | 3,802,366 | $ | 3,685,844 | $ | 3,568,307 | $ | 3,591,663 | $ | 3,510,435 | ||||||||||
Shareholders' equity | $ | 764,008 | $ | 761,977 | $ | 758,712 | $ | 752,703 | $ | 759,338 | ||||||||||
Nonperforming, noncovered assets | ||||||||||||||||||||
Nonaccrual loans | $ | 37,395 | $ | 41,589 | $ | 49,465 | $ | 57,552 | $ | 53,483 | ||||||||||
OREO and OPPO | 11,108 | 11,749 | 17,608 | 21,571 | 31,905 | |||||||||||||||
Total nonperforming, noncovered assets | $ | 48,503 | $ | 53,338 | $ | 67,073 | $ | 79,123 | $ | 85,388 | ||||||||||
Nonperforming assets to period-end noncovered loans + OREO and OPPO | 1.91 | % | 2.14 | % | 2.73 | % | 3.31 | % | 3.59 | % | ||||||||||
Nonperforming loans to period-end noncovered loans | 1.48 | % | 1.68 | % | 2.03 | % | 2.43 | % | 2.28 | % | ||||||||||
Nonperforming assets to period-end noncovered assets | 1.08 | % | 1.20 | % | 1.56 | % | 1.84 | % | 2.02 | % | ||||||||||
Allowance for loan and lease losses to period-end noncovered loans | 2.07 | % | 2.08 | % | 2.14 | % | 2.20 | % | 2.26 | % | ||||||||||
Allowance for loan and lease losses to nonperforming noncovered loans | 139.71 | % | 123.90 | % | 105.52 | % | 90.84 | % | 99.17 | % | ||||||||||
Net noncovered loan charge-offs | $ | 1,633 | $ | 3,544 | $ | 3,836 | $ | 5,258 | $ | 2,131 |
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | Year Ended | ||||||||||||||
Unaudited | December 31, | December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(in thousands except per share) | ||||||||||||||||
Interest Income | ||||||||||||||||
Loans | $ | 50,558 | $ | 66,974 | $ | 219,433 | $ | 218,420 | ||||||||
Taxable securities | 3,862 | 5,169 | 18,276 | 21,870 | ||||||||||||
Tax-exempt securities | 2,499 | 2,659 | 9,941 | 10,142 | ||||||||||||
Federal funds sold and deposits in banks | 290 | 117 | 854 | 839 | ||||||||||||
Total interest income | 57,209 | 74,919 | 248,504 | 251,271 | ||||||||||||
Interest Expense | ||||||||||||||||
Deposits | 1,208 | 1,909 | 5,887 | 10,478 | ||||||||||||
Federal Home Loan Bank advances | 379 | 765 | 2,608 | 2,980 | ||||||||||||
Prepayment charge on Federal Home Loan Bank advances | 603 | — | 603 | — | ||||||||||||
Long-term obligations | — | — | — | 579 | ||||||||||||
Other borrowings | 121 | 121 | 479 | 498 | ||||||||||||
Total interest expense | 2,311 | 2,795 | 9,577 | 14,535 | ||||||||||||
Net Interest Income | 54,898 | 72,124 | 238,927 | 236,736 | ||||||||||||
Provision for loan and lease losses | 2,350 | 4,750 | 13,475 | 7,400 | ||||||||||||
Provision (recapture) for losses on covered loans, net | 2,511 | (3,960 | ) | 25,892 | (1,648 | ) | ||||||||||
Net interest income after provision (recapture) for loan and lease losses | 50,037 | 71,334 | 199,560 | 230,984 | ||||||||||||
Noninterest Income (Loss) | ||||||||||||||||
Service charges and other fees | 7,776 | 6,886 | 29,998 | 26,632 | ||||||||||||
Gain on bank acquisitions, net of tax | — | — | — | 1,830 | ||||||||||||
Merchant services fees | 1,987 | 1,992 | 8,154 | 7,385 | ||||||||||||
Investment securities gains (losses), net | 3,671 | (2,816 | ) | 3,733 | (2,816 | ) | ||||||||||
Bank owned life insurance | 684 | 632 | 2,861 | 2,188 | ||||||||||||
Change in FDIC loss-sharing asset | (9,680 | ) | (17,448 | ) | (24,467 | ) | (49,496 | ) | ||||||||
Other | 2,129 | 1,152 | 6,779 | 4,994 | ||||||||||||
Total noninterest income (loss) | 6,567 | (9,602 | ) | 27,058 | (9,283 | ) | ||||||||||
Noninterest Expense | ||||||||||||||||
Compensation and employee benefits | 20,950 | 21,780 | 85,434 | 81,552 | ||||||||||||
Occupancy | 4,721 | 5,363 | 20,031 | 18,963 | ||||||||||||
Merchant processing | 888 | 934 | 3,612 | 3,698 | ||||||||||||
Advertising and promotion | 308 | 636 | 3,650 | 3,686 | ||||||||||||
Data processing and communications | 2,451 | 2,452 | 9,714 | 8,484 | ||||||||||||
Legal and professional fees | 2,694 | 1,618 | 8,915 | 6,486 | ||||||||||||
Taxes, licenses and fees | 1,142 | 1,463 | 4,736 | 4,446 | ||||||||||||
Regulatory premiums | 824 | 784 | 3,384 | 4,337 | ||||||||||||
Net benefit of operation of other real estate | (1,433 | ) | (599 | ) | (1,969 | ) | (1,022 | ) | ||||||||
Amortization of intangibles | 1,083 | 1,203 | 4,445 | 4,319 | ||||||||||||
FDIC clawback liability expense (recovery) | (154 | ) | 362 | (54 | ) | 3,656 | ||||||||||
Other | 4,326 | 5,318 | 21,015 | 17,154 | ||||||||||||
Total noninterest expense | 37,800 | 41,314 | 162,913 | 155,759 | ||||||||||||
Income before income taxes | 18,804 | 20,418 | 63,705 | 65,942 | ||||||||||||
Provision for income taxes | 5,342 | 5,664 | 17,562 | 17,905 | ||||||||||||
Net Income | $ | 13,462 | $ | 14,754 | $ | 46,143 | $ | 48,037 | ||||||||
Earnings per common share | ||||||||||||||||
Basic | $ | 0.34 | $ | 0.37 | $ | 1.16 | $ | 1.22 | ||||||||
Diluted | $ | 0.34 | $ | 0.37 | $ | 1.16 | $ | 1.21 | ||||||||
Dividends paid per common share | $ | 0.09 | $ | 0.13 | $ | 0.98 | $ | 0.27 | ||||||||
Weighted average number of common shares outstanding | 39,295 | 39,135 | 39,260 | 39,103 | ||||||||||||
Weighted average number of diluted common shares outstanding | 39,297 | 39,222 | 39,263 | 39,180 |
CONSOLIDATED BALANCE SHEETS | |||||||||||||
Columbia Banking System, Inc. | |||||||||||||
Unaudited | December 31, | December 31, | |||||||||||
2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||
ASSETS | |||||||||||||
Cash and due from banks | $ | 124,573 | $ | 91,364 | |||||||||
Interest-earning deposits with banks and federal funds sold | 389,353 | 202,925 | |||||||||||
Total cash and cash equivalents | 513,926 | 294,289 | |||||||||||
Securities available for sale at fair value (amortized cost of $969,359 and $987,560, respectively) | 1,001,665 | 1,028,110 | |||||||||||
Federal Home Loan Bank stock at cost | 21,819 | 22,215 | |||||||||||
Loans held for sale | 2,563 | 2,148 | |||||||||||
Loans, excluding covered loans, net of unearned income of ($7,767) and ($16,217), respectively | 2,525,710 | 2,348,371 | |||||||||||
Less: allowance for loan and lease losses | 52,244 | 53,041 | |||||||||||
Loans, excluding covered loans, net | 2,473,466 | 2,295,330 | |||||||||||
Covered loans, net of allowance for loan losses of ($30,056) and ($4,944), respectively | 391,337 | 531,929 | |||||||||||
Total loans, net | 2,864,803 | 2,827,259 | |||||||||||
FDIC loss-sharing asset | 96,354 | 175,071 | |||||||||||
Interest receivable | 14,268 | 15,287 | |||||||||||
Premises and equipment, net | 118,708 | 107,899 | |||||||||||
Other real estate owned ($16,311 and $28,126 covered by FDIC loss-share, respectively) | 26,987 | 51,019 | |||||||||||
Goodwill | 115,554 | 115,554 | |||||||||||
Core deposit intangible, net | 15,721 | 20,166 | |||||||||||
Other assets | 113,967 | 126,928 | |||||||||||
Total assets | $ | 4,906,335 | $ | 4,785,945 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||
Deposits: | |||||||||||||
Noninterest-bearing | $ | 1,321,171 | $ | 1,156,610 | |||||||||
Interest-bearing | 2,720,914 | 2,658,919 | |||||||||||
Total deposits | 4,042,085 | 3,815,529 | |||||||||||
Federal Home Loan Bank advances | 6,644 | 119,009 | |||||||||||
Securities sold under agreements to repurchase | 25,000 | 25,000 | |||||||||||
Other liabilities | 68,598 | 67,069 | |||||||||||
Total liabilities | 4,142,327 | 4,026,607 | |||||||||||
Commitments and contingent liabilities | |||||||||||||
December 31, | December 31, | ||||||||||||
2012 | 2011 | ||||||||||||
Common stock (no par value) | |||||||||||||
Authorized shares | 63,033 | 63,033 | |||||||||||
Issued and outstanding | 39,686 | 39,506 | 581,471 | 579,136 | |||||||||
Retained earnings | 162,388 | 155,069 | |||||||||||
Accumulated other comprehensive income | 20,149 | 25,133 | |||||||||||
Total shareholders' equity | 764,008 | 759,338 | |||||||||||
Total liabilities and shareholders' equity | $ | 4,906,335 | $ | 4,785,945 |