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 October 23, 2014 reporting the financial results of Columbia Banking System, Inc. for the quarter ended September 30, 2014. |
99.2 | Press Release dated October 23, 2014 announcing a regular quarterly dividend and a special, one-time cash dividend. |
COLUMBIA BANKING SYSTEM, INC. | |||||
Date: | October 23, 2014 | /s/ MELANIE J. DRESSEL | |||
Melanie J. Dressel | |||||
President and Chief Executive Officer |
99.1 | Press Release dated October 23, 2014 reporting the financial results of Columbia Banking System, Inc. for the quarter ended September 30, 2014. |
99.2 | Press Release dated October 23, 2014 announcing a regular quarterly dividend and a special, one-time cash dividend. |
• | Announced merger agreement with Intermountain Community Bancorp |
• | Net income of $21.6 million and diluted earnings per share of $0.41, up from net income of $21.2 million and diluted earnings per share of $0.40 at June 30, 2014. |
• | Loan production of over $250 million during the quarter, resulting in annualized noncovered loan growth of over 11% for the current period |
• | Core deposit growth of $255 million, or 17% annualized, during the quarter |
• | Nonperforming assets to period end noncovered assets reduced to 0.53%, a decrease of 31 basis points from year end and a decrease of 12 basis points from June 30, 2014 |
• | CEO Melanie Dressel named one of American Banker’s Most Powerful Women in Banking |
September 30, 2014 | June 30, 2014 | December 31, 2013 | ||||||||||
(in thousands) | ||||||||||||
Nonaccrual noncovered loans: | ||||||||||||
Commercial business | $ | 11,490 | $ | 11,484 | $ | 12,609 | ||||||
Real estate: | ||||||||||||
One-to-four family residential | 3,513 | 3,024 | 2,667 | |||||||||
Commercial and multifamily residential | 8,468 | 11,039 | 11,043 | |||||||||
Total real estate | 11,981 | 14,063 | 13,710 | |||||||||
Real estate construction: | ||||||||||||
One-to-four family residential | 1,031 | 1,040 | 3,705 | |||||||||
Total real estate construction | 1,031 | 1,040 | 3,705 | |||||||||
Consumer | 3,496 | 4,026 | 3,991 | |||||||||
Total nonaccrual loans | 27,998 | 30,613 | 34,015 | |||||||||
Noncovered other real estate owned and other personal property owned | 10,352 | 15,203 | 23,918 | |||||||||
Total nonperforming noncovered assets | $ | 38,350 | $ | 45,816 | $ | 57,933 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Beginning balance | $ | 49,494 | $ | 51,698 | $ | 52,280 | $ | 52,244 | ||||||||
Charge-offs: | ||||||||||||||||
Commercial business | (1,348 | ) | (755 | ) | (3,298 | ) | (3,030 | ) | ||||||||
One-to-four family residential real estate | — | (47 | ) | (207 | ) | (191 | ) | |||||||||
Commercial and multifamily residential real estate | (7 | ) | (657 | ) | (2,993 | ) | (2,054 | ) | ||||||||
One-to-four family residential real estate construction | — | — | — | (133 | ) | |||||||||||
Consumer | (620 | ) | (453 | ) | (2,256 | ) | (1,262 | ) | ||||||||
Total charge-offs | (1,975 | ) | (1,912 | ) | (8,754 | ) | (6,670 | ) | ||||||||
Recoveries: | ||||||||||||||||
Commercial business | 356 | 854 | 2,558 | 1,319 | ||||||||||||
One-to-four family residential real estate | 63 | 39 | 103 | 180 | ||||||||||||
Commercial and multifamily residential real estate | 140 | 332 | 716 | 509 | ||||||||||||
One-to-four family residential real estate construction | 20 | 461 | 504 | 2,649 | ||||||||||||
Consumer | 340 | 112 | 931 | 353 | ||||||||||||
Total recoveries | 919 | 1,798 | 4,812 | 5,010 | ||||||||||||
Net charge-offs | (1,056 | ) | (114 | ) | (3,942 | ) | (1,660 | ) | ||||||||
Provision for loan and lease losses | 1,500 | 4,260 | 1,600 | 5,260 | ||||||||||||
Ending balance | $ | 49,938 | $ | 55,844 | $ | 49,938 | $ | 55,844 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2014 | September 30, 2013 | September 30, 2014 | September 30, 2013 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Incremental accretion income due to: | ||||||||||||||||
FDIC acquired impaired loans | $ | 4,205 | $ | 7,063 | $ | 16,428 | $ | 23,275 | ||||||||
Other FDIC acquired loans | 175 | 266 | 474 | 1,974 | ||||||||||||
Other acquired loans | 5,040 | 10,025 | 16,136 | 19,660 | ||||||||||||
Incremental accretion income | $ | 9,420 | $ | 17,354 | $ | 33,038 | $ | 44,909 | ||||||||
Net interest margin (tax equivalent) | 4.85 | % | 5.37 | % | 4.86 | % | 5.21 | % | ||||||||
Operating net interest margin (tax equivalent) (1) | 4.22 | % | 4.41 | % | 4.23 | % | 4.33 | % |
FDIC Acquired Loan Activity | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, 2014 | September 30, 2013 | September 30, 2014 | September 30, 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Incremental accretion income on FDIC acquired impaired loans | $ | 4,205 | $ | 7,063 | $ | 16,428 | $ | 23,275 | ||||||||
Incremental accretion income on other FDIC acquired loans | 175 | 266 | 474 | 1,974 | ||||||||||||
Recapture (provision) for losses on covered loans | 520 | 947 | (3,419 | ) | 1,679 | |||||||||||
Change in FDIC loss-sharing asset | (4,816 | ) | (11,826 | ) | (14,685 | ) | (35,446 | ) | ||||||||
FDIC clawback liability benefit (expense) | (201 | ) | 188 | (302 | ) | (242 | ) | |||||||||
Pre-tax earnings impact | $ | (117 | ) | $ | (3,362 | ) | $ | (1,504 | ) | $ | (8,760 | ) |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(in thousands) | ||||||||||||||||
Adjustments reflected in income | ||||||||||||||||
Amortization, net | (3,992 | ) | (9,890 | ) | (16,208 | ) | (29,470 | ) | ||||||||
Loan impairment (recapture) | (416 | ) | (758 | ) | 2,735 | (1,343 | ) | |||||||||
Sale of other real estate | (383 | ) | (1,479 | ) | (2,104 | ) | (5,076 | ) | ||||||||
Write-downs of other real estate | 67 | 220 | 860 | 373 | ||||||||||||
Other | (92 | ) | 81 | 32 | 70 | |||||||||||
Change in FDIC loss-sharing asset | $ | (4,816 | ) | $ | (11,826 | ) | $ | (14,685 | ) | $ | (35,446 | ) |
FINANCIAL STATISTICS | ||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | Nine Months Ended | ||||||||||||||
Unaudited | September 30, | September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Earnings | (dollars in thousands except per share amounts) | |||||||||||||||
Net interest income | $ | 76,220 | $ | 80,415 | $ | 225,284 | $ | 213,886 | ||||||||
Provision for loan and lease losses | $ | 1,500 | $ | 4,260 | $ | 1,600 | $ | 5,260 | ||||||||
Provision (recapture) for losses on covered loans, net (1) | $ | (520 | ) | $ | (947 | ) | $ | 3,419 | $ | (1,679 | ) | |||||
Noninterest income | $ | 15,930 | $ | 7,622 | $ | 44,565 | $ | 16,088 | ||||||||
Noninterest expense | $ | 59,982 | $ | 64,714 | $ | 175,132 | $ | 167,267 | ||||||||
Acquisition-related expense (included in noninterest expense) | $ | 3,238 | $ | 7,621 | $ | 4,876 | $ | 17,578 | ||||||||
Net income | $ | 21,583 | $ | 13,276 | $ | 62,654 | $ | 40,043 | ||||||||
Per Common Share | ||||||||||||||||
Earnings (basic) | $ | 0.41 | $ | 0.26 | $ | 1.20 | $ | 0.84 | ||||||||
Earnings (diluted) | $ | 0.41 | $ | 0.25 | $ | 1.18 | $ | 0.83 | ||||||||
Book value | $ | 20.78 | $ | 20.35 | $ | 20.78 | $ | 20.35 | ||||||||
Averages | ||||||||||||||||
Total assets | $ | 7,337,306 | $ | 7,048,864 | $ | 7,237,459 | $ | 6,345,006 | ||||||||
Interest-earning assets | $ | 6,451,660 | $ | 6,101,960 | $ | 6,345,909 | $ | 5,580,871 | ||||||||
Loans, including covered loans | $ | 4,770,443 | $ | 4,504,040 | $ | 4,652,157 | $ | 4,018,240 | ||||||||
Securities | $ | 1,585,996 | $ | 1,512,292 | $ | 1,637,766 | $ | 1,411,397 | ||||||||
Deposits | $ | 6,110,809 | $ | 5,837,018 | $ | 5,994,608 | $ | 5,224,081 | ||||||||
Interest-bearing deposits | $ | 3,847,730 | $ | 3,805,260 | $ | 3,809,546 | $ | 3,514,549 | ||||||||
Interest-bearing liabilities | $ | 3,889,233 | $ | 3,898,997 | $ | 3,886,180 | $ | 3,614,742 | ||||||||
Noninterest-bearing deposits | $ | 2,263,079 | $ | 2,031,758 | $ | 2,185,062 | $ | 1,709,532 | ||||||||
Shareholders' equity | $ | 1,099,512 | $ | 1,036,134 | $ | 1,084,049 | $ | 952,949 | ||||||||
Financial Ratios | ||||||||||||||||
Return on average assets | 1.18 | % | 0.75 | % | 1.15 | % | 0.84 | % | ||||||||
Return on average common equity | 7.86 | % | 5.13 | % | 7.71 | % | 5.61 | % | ||||||||
Average equity to average assets | 14.99 | % | 14.70 | % | 14.98 | % | 15.02 | % | ||||||||
Net interest margin (tax equivalent) | 4.85 | % | 5.37 | % | 4.86 | % | 5.21 | % | ||||||||
Efficiency ratio (tax equivalent) (2) | 63.33 | % | 71.88 | % | 63.16 | % | 70.93 | % | ||||||||
Operating efficiency ratio (tax equivalent) (3) | 63.81 | % | 65.03 | % | 64.26 | % | 65.00 | % | ||||||||
September 30, | December 31, | |||||||||||||||
Period end | 2014 | 2013 | 2013 | |||||||||||||
Total assets | $ | 7,466,081 | $ | 7,150,297 | $ | 7,161,582 | ||||||||||
Covered assets, net | $ | 237,500 | $ | 314,898 | $ | 289,790 | ||||||||||
Loans, excluding covered loans, net | $ | 4,579,178 | $ | 4,193,732 | $ | 4,219,451 | ||||||||||
Allowance for noncovered loan and lease losses | $ | 49,938 | $ | 55,844 | $ | 52,280 | ||||||||||
Securities, including Federal Home Loan Bank stock | $ | 1,643,003 | $ | 1,602,484 | $ | 1,696,640 | ||||||||||
Deposits | $ | 6,244,401 | $ | 5,948,967 | $ | 5,959,475 | ||||||||||
Core deposits | $ | 5,990,118 | $ | 5,662,958 | $ | 5,696,357 | ||||||||||
Shareholders' equity | $ | 1,096,211 | $ | 1,045,797 | $ | 1,053,249 | ||||||||||
Nonperforming, noncovered assets | ||||||||||||||||
Nonaccrual loans | $ | 27,998 | $ | 35,961 | $ | 34,015 | ||||||||||
Other real estate owned ("OREO") and other personal property owned ("OPPO") | 10,352 | 23,641 | 23,918 | |||||||||||||
Total nonperforming, noncovered assets | $ | 38,350 | $ | 59,602 | $ | 57,933 | ||||||||||
Nonperforming assets to period-end noncovered loans + OREO and OPPO | 0.84 | % | 1.41 | % | 1.37 | % | ||||||||||
Nonperforming loans to period-end noncovered loans | 0.61 | % | 0.86 | % | 0.81 | % | ||||||||||
Nonperforming assets to period-end noncovered assets | 0.53 | % | 0.87 | % | 0.84 | % | ||||||||||
Allowance for loan and lease losses to period-end noncovered loans | 1.09 | % | 1.33 | % | 1.24 | % | ||||||||||
Allowance for loan and lease losses to nonperforming noncovered loans | 178.36 | % | 155.29 | % | 153.70 | % | ||||||||||
Net noncovered loan charge-offs | $ | 3,942 | (4) | $ | 1,660 | (5) | $ | 3,124 | (6) | |||||||
(1) Provision(recapture) for losses on covered loans was partially offset by $416 thousand and $758 thousand in expense recorded to Change in FDIC loss-sharing asset in the Consolidated Statements of Income for the three months ended September 30, 2014 and 2013, respectively. For the nine months ended September 30, 2014 and 2013, provision(recapture) for losses on covered loans was partially offset by $2.7 million in income and $1.3 million in expense, respectively. | ||||||||||||||||
(2) Noninterest expense divided by the sum of net interest income on a tax equivalent basis and noninterest income on a tax equivalent basis. | ||||||||||||||||
(3) The operating efficiency ratio (tax equivalent) is a non-GAAP financial measure. See section titled "Non-GAAP Financial Measures" on the last pages of this earnings release for the reconciliation of the operating efficiency ratio (tax equivalent) to the efficiency ratio (tax equivalent). During the second quarter of 2014, the methodology was changed to now exclude Washington state Business and Occupation ("B&O") taxes. Amounts presented in prior periods have been adjusted to conform with the current methodology. | ||||||||||||||||
(4) For the nine months ended September 30, 2014. | ||||||||||||||||
(5) For the nine months ended September 30, 2013. | ||||||||||||||||
(6) For the twelve months ended December 31, 2013. |
FINANCIAL STATISTICS | ||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||
Unaudited | September 30, | December 31, | ||||||||||||
2014 | 2013 | |||||||||||||
Loan Portfolio Composition | (dollars in thousands) | |||||||||||||
Noncovered loans: | ||||||||||||||
Commercial business | $ | 1,829,393 | 40.0 | % | $ | 1,561,782 | 37.0 | % | ||||||
Real estate: | ||||||||||||||
One-to-four family residential | 108,743 | 2.4 | % | 108,317 | 2.6 | % | ||||||||
Commercial and multifamily residential | 2,144,044 | 46.8 | % | 2,080,075 | 49.2 | % | ||||||||
Total real estate | 2,252,787 | 49.2 | % | 2,188,392 | 51.8 | % | ||||||||
Real estate construction: | ||||||||||||||
One-to-four family residential | 73,882 | 1.6 | % | 54,155 | 1.3 | % | ||||||||
Commercial and multifamily residential | 137,366 | 3.0 | % | 126,390 | 3.0 | % | ||||||||
Total real estate construction | 211,248 | 4.6 | % | 180,545 | 4.3 | % | ||||||||
Consumer | 338,826 | 7.4 | % | 357,014 | 8.5 | % | ||||||||
Subtotal loans | 4,632,254 | 101.2 | % | 4,287,733 | 101.6 | % | ||||||||
Less: Net unearned income | (53,076 | ) | (1.2 | )% | (68,282 | ) | (1.6 | )% | ||||||
Total noncovered loans, net of unearned income | 4,579,178 | 100.0 | % | 4,219,451 | 100.0 | % | ||||||||
Less: Allowance for loan and lease losses | (49,938 | ) | (52,280 | ) | ||||||||||
Noncovered loans, net | 4,529,240 | 4,167,171 | ||||||||||||
Covered loans, net of allowance for loan losses of ($17,933) and ($20,174), respectively | 225,911 | 277,671 | ||||||||||||
Total loans, net | $ | 4,755,151 | $ | 4,444,842 | ||||||||||
Loans held for sale | $ | 949 | $ | 735 | ||||||||||
September 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
Deposit Composition | (dollars in thousands) | |||||||||||||
Core deposits: | ||||||||||||||
Demand and other non-interest bearing | $ | 2,352,210 | 37.6 | % | $ | 2,171,703 | 36.4 | % | ||||||
Interest bearing demand | 1,192,094 | 19.1 | % | 1,170,006 | 19.6 | % | ||||||||
Money market | 1,640,618 | 26.3 | % | 1,569,261 | 26.3 | % | ||||||||
Savings | 547,853 | 8.8 | % | 496,444 | 8.3 | % | ||||||||
Certificates of deposit less than $100,000 | 257,343 | 4.1 | % | 288,943 | 4.9 | % | ||||||||
Total core deposits | 5,990,118 | 95.9 | % | 5,696,357 | 95.5 | % | ||||||||
Certificates of deposit greater than $100,000 | 173,644 | 2.8 | % | 201,498 | 3.5 | % | ||||||||
Certificates of deposit insured by CDARS® | 19,015 | 0.3 | % | 19,488 | 0.3 | % | ||||||||
Brokered money market accounts | 61,448 | 1.0 | % | 41,765 | 0.7 | % | ||||||||
Subtotal | 6,244,225 | 100.0 | % | 5,959,108 | 100.0 | % | ||||||||
Premium resulting from acquisition date fair value adjustment | 176 | 367 | ||||||||||||
Total deposits | $ | 6,244,401 | $ | 5,959,475 |
FINANCIAL STATISTICS | ||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||
Unaudited | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
OREO | OPPO | OREO | OPPO | |||||||||||||
OREO and OPPO Composition | (in thousands) | |||||||||||||||
Covered | $ | 11,589 | $ | — | $ | 12,093 | $ | 26 | ||||||||
Noncovered | 10,315 | 37 | 23,834 | 84 | ||||||||||||
Total | $ | 21,904 | $ | 37 | $ | 35,927 | $ | 110 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
OREO and OPPO Earnings Impact | (in thousands) | |||||||||||||||
Net cost (benefit) of operation of noncovered OREO | $ | (833 | ) | $ | 851 | $ | 224 | $ | 1,190 | |||||||
Net benefit of operation of covered OREO | (423 | ) | (1,628 | ) | (1,431 | ) | (7,296 | ) | ||||||||
Net benefit of operation of OREO | $ | (1,256 | ) | $ | (777 | ) | $ | (1,207 | ) | $ | (6,106 | ) | ||||
Noncovered OPPO cost (benefit), net | $ | 3 | $ | (29 | ) | $ | (122 | ) | $ | (125 | ) | |||||
Covered OPPO cost (benefit), net | 6 | — | (13 | ) | — | |||||||||||
OPPO cost (benefit), net (1) | $ | 9 | $ | (29 | ) | $ | (135 | ) | $ | (125 | ) | |||||
(1) OPPO cost (benefit), net is included in Other noninterest expense in the Consolidated Statements of Income. |
Three Months Ended | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2014 | 2014 | 2014 | 2013 | 2013 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Expense to pre-tax earnings (1) | $ | (117 | ) | $ | (635 | ) | $ | (752 | ) | $ | (1,248 | ) | $ | (3,362 | ) | |||||
Balance sheet components: | ||||||||||||||||||||
Covered loans, net of allowance | $ | 225,911 | $ | 242,100 | $ | 260,158 | $ | 277,671 | $ | 302,160 | ||||||||||
Covered OREO | 11,589 | 13,051 | 14,712 | 12,093 | 12,730 | |||||||||||||||
FDIC loss-sharing asset | 23,492 | 27,981 | 36,837 | 39,846 | 53,559 | |||||||||||||||
(1) For details of the components of expense to pre-tax earnings related to FDIC acquired loan accounting, see previous table entitled "FDIC Acquired Loan Activity." |
QUARTERLY FINANCIAL STATISTICS | ||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | |||||||||||||||||||
Unaudited | September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2014 | 2014 | 2014 | 2013 | 2013 | ||||||||||||||||
(dollars in thousands except per share) | ||||||||||||||||||||
Earnings | ||||||||||||||||||||
Net interest income | $ | 76,220 | $ | 75,124 | $ | 73,940 | $ | 77,209 | $ | 80,415 | ||||||||||
Provision (recapture) for loan and lease losses | $ | 1,500 | $ | 600 | $ | (500 | ) | $ | (2,100 | ) | $ | 4,260 | ||||||||
Provision (recapture) for losses on covered loans | $ | (520 | ) | $ | 1,517 | $ | 2,422 | $ | (1,582 | ) | $ | (947 | ) | |||||||
Noninterest income | $ | 15,930 | $ | 14,627 | $ | 14,008 | $ | 10,612 | $ | 7,622 | ||||||||||
Noninterest expense | $ | 59,982 | $ | 57,764 | $ | 57,386 | $ | 63,619 | $ | 64,714 | ||||||||||
Acquisition-related expense (included in noninterest expense) | $ | 3,238 | $ | 672 | $ | 966 | $ | 7,910 | $ | 7,621 | ||||||||||
Net income | $ | 21,583 | $ | 21,227 | $ | 19,844 | $ | 19,973 | $ | 13,276 | ||||||||||
Per Common Share | ||||||||||||||||||||
Earnings (basic) | $ | 0.41 | $ | 0.40 | $ | 0.38 | $ | 0.39 | $ | 0.26 | ||||||||||
Earnings (diluted) | $ | 0.41 | $ | 0.40 | $ | 0.37 | $ | 0.38 | $ | 0.25 | ||||||||||
Book value | $ | 20.78 | $ | 20.71 | $ | 20.39 | $ | 20.50 | $ | 20.35 | ||||||||||
Averages | ||||||||||||||||||||
Total assets | $ | 7,337,306 | $ | 7,229,187 | $ | 7,143,759 | $ | 7,192,084 | $ | 7,048,864 | ||||||||||
Interest-earning assets | $ | 6,451,660 | $ | 6,339,102 | $ | 6,244,692 | $ | 6,269,894 | $ | 6,101,960 | ||||||||||
Loans, including covered loans | $ | 4,770,443 | $ | 4,646,356 | $ | 4,537,107 | $ | 4,504,587 | $ | 4,504,040 | ||||||||||
Securities | $ | 1,585,996 | $ | 1,645,993 | $ | 1,682,370 | $ | 1,662,720 | $ | 1,512,292 | ||||||||||
Deposits | $ | 6,110,809 | $ | 5,968,881 | $ | 5,901,838 | $ | 6,003,657 | $ | 5,837,018 | ||||||||||
Interest-bearing deposits | $ | 3,847,730 | $ | 3,807,710 | $ | 3,772,370 | $ | 3,839,060 | $ | 3,805,260 | ||||||||||
Interest-bearing liabilities | $ | 3,889,233 | $ | 3,901,016 | $ | 3,868,060 | $ | 3,886,126 | $ | 3,898,997 | ||||||||||
Noninterest-bearing deposits | $ | 2,263,079 | $ | 2,161,171 | $ | 2,129,468 | $ | 2,164,597 | $ | 2,031,758 | ||||||||||
Shareholders' equity | $ | 1,099,512 | $ | 1,084,927 | $ | 1,067,353 | $ | 1,056,694 | $ | 1,036,134 | ||||||||||
Financial Ratios | ||||||||||||||||||||
Return on average assets | 1.18 | % | 1.17 | % | 1.11 | % | 1.11 | % | 0.75 | % | ||||||||||
Return on average common equity | 7.86 | % | 7.83 | % | 7.45 | % | 7.57 | % | 5.13 | % | ||||||||||
Average equity to average assets | 14.99 | % | 15.01 | % | 14.94 | % | 14.69 | % | 14.70 | % | ||||||||||
Net interest margin (tax equivalent) | 4.85 | % | 4.86 | % | 4.85 | % | 5.03 | % | 5.37 | % | ||||||||||
Period end | ||||||||||||||||||||
Total assets | $ | 7,466,081 | $ | 7,297,458 | $ | 7,237,053 | $ | 7,161,582 | $ | 7,150,297 | ||||||||||
Covered assets, net | $ | 237,500 | $ | 255,151 | $ | 274,896 | $ | 289,790 | $ | 314,898 | ||||||||||
Loans, excluding covered loans, net | $ | 4,579,178 | $ | 4,452,674 | $ | 4,297,076 | $ | 4,219,451 | $ | 4,193,732 | ||||||||||
Allowance for noncovered loan and lease losses | $ | 49,938 | $ | 49,494 | $ | 50,442 | $ | 52,280 | $ | 55,844 | ||||||||||
Securities | $ | 1,643,003 | $ | 1,621,929 | $ | 1,671,594 | $ | 1,696,640 | $ | 1,602,484 | ||||||||||
Deposits | $ | 6,244,401 | $ | 5,985,069 | $ | 6,044,416 | $ | 5,959,475 | $ | 5,948,967 | ||||||||||
Core deposits | $ | 5,990,118 | $ | 5,735,047 | $ | 5,768,434 | $ | 5,696,357 | $ | 5,662,958 | ||||||||||
Shareholders' equity | $ | 1,096,211 | $ | 1,092,151 | $ | 1,074,491 | $ | 1,053,249 | $ | 1,045,797 | ||||||||||
Nonperforming, noncovered assets | ||||||||||||||||||||
Nonaccrual loans | $ | 27,998 | $ | 30,613 | $ | 36,397 | $ | 34,015 | $ | 35,961 | ||||||||||
OREO and OPPO | 10,352 | 15,203 | 15,924 | 23,918 | 23,641 | |||||||||||||||
Total nonperforming, noncovered assets | $ | 38,350 | $ | 45,816 | $ | 52,321 | $ | 57,933 | $ | 59,602 | ||||||||||
Nonperforming assets to period-end noncovered loans + OREO and OPPO | 0.84 | % | 1.03 | % | 1.21 | % | 1.37 | % | 1.41 | % | ||||||||||
Nonperforming loans to period-end noncovered loans | 0.61 | % | 0.69 | % | 0.85 | % | 0.81 | % | 0.86 | % | ||||||||||
Nonperforming assets to period-end noncovered assets | 0.53 | % | 0.65 | % | 0.75 | % | 0.84 | % | 0.87 | % | ||||||||||
Allowance for loan and lease losses to period-end noncovered loans | 1.09 | % | 1.11 | % | 1.17 | % | 1.24 | % | 1.33 | % | ||||||||||
Allowance for loan and lease losses to nonperforming noncovered loans | 178.36 | % | 161.68 | % | 138.59 | % | 153.70 | % | 155.29 | % | ||||||||||
Net noncovered loan charge-offs | $ | 1,056 | $ | 1,548 | $ | 1,338 | $ | 1,464 | $ | 114 |
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | Nine Months Ended | ||||||||||||||
Unaudited | September 30, | September 30, | ||||||||||||||
2014 | 2013 (1) | 2014 | 2013 (1) | |||||||||||||
(in thousands except per share) | ||||||||||||||||
Interest Income | ||||||||||||||||
Loans | $ | 65,903 | $ | 74,125 | $ | 198,448 | $ | 196,990 | ||||||||
Taxable securities | 8,545 | 4,935 | 21,679 | 14,059 | ||||||||||||
Tax-exempt securities | 2,624 | 2,483 | 7,913 | 7,289 | ||||||||||||
Deposits in banks | 61 | 56 | 105 | 290 | ||||||||||||
Total interest income | 77,133 | 81,599 | 228,145 | 218,628 | ||||||||||||
Interest Expense | ||||||||||||||||
Deposits | 713 | 929 | 2,194 | 3,072 | ||||||||||||
Federal Home Loan Bank advances | 80 | 135 | 309 | (493 | ) | |||||||||||
Prepayment charge on Federal Home Loan Bank advances | — | — | — | 1,548 | ||||||||||||
Other borrowings | 120 | 120 | 358 | 615 | ||||||||||||
Total interest expense | 913 | 1,184 | 2,861 | 4,742 | ||||||||||||
Net Interest Income | 76,220 | 80,415 | 225,284 | 213,886 | ||||||||||||
Provision for loan and lease losses | 1,500 | 4,260 | 1,600 | 5,260 | ||||||||||||
Provision (recapture) for losses on covered loans, net | (520 | ) | (947 | ) | 3,419 | (1,679 | ) | |||||||||
Net interest income after provision (recapture) for loan and lease losses | 75,240 | 77,102 | 220,265 | 210,305 | ||||||||||||
Noninterest Income | ||||||||||||||||
Service charges and other fees | 14,254 | 13,357 | 40,980 | 34,511 | ||||||||||||
Merchant services fees | 2,104 | 2,070 | 6,014 | 5,934 | ||||||||||||
Investment securities gains, net | 33 | — | 552 | 462 | ||||||||||||
Bank owned life insurance | 956 | 904 | 2,897 | 2,610 | ||||||||||||
Change in FDIC loss-sharing asset | (4,816 | ) | (11,826 | ) | (14,685 | ) | (35,446 | ) | ||||||||
Other | 3,399 | 3,117 | 8,807 | 8,017 | ||||||||||||
Total noninterest income | 15,930 | 7,622 | 44,565 | 16,088 | ||||||||||||
Noninterest Expense | ||||||||||||||||
Compensation and employee benefits | 32,559 | 33,287 | 94,961 | 90,597 | ||||||||||||
Occupancy | 7,445 | 9,264 | 24,276 | 21,560 | ||||||||||||
Merchant processing | 1,080 | 951 | 3,058 | 2,660 | ||||||||||||
Advertising and promotion | 1,027 | 1,165 | 2,746 | 3,195 | ||||||||||||
Data processing and communications | 4,269 | 4,285 | 11,469 | 10,503 | ||||||||||||
Legal and professional fees | 2,905 | 2,421 | 7,377 | 9,975 | ||||||||||||
Taxes, licenses and fees | 1,156 | 1,446 | 3,387 | 4,037 | ||||||||||||
Regulatory premiums | 1,195 | 1,372 | 3,444 | 3,406 | ||||||||||||
Net benefit of operation of other real estate | (1,256 | ) | (777 | ) | (1,207 | ) | (6,106 | ) | ||||||||
Amortization of intangibles | 1,456 | 1,666 | 4,516 | 4,388 | ||||||||||||
Other (1) | 8,146 | 9,634 | 21,105 | 23,052 | ||||||||||||
Total noninterest expense | 59,982 | 64,714 | 175,132 | 167,267 | ||||||||||||
Income before income taxes | 31,188 | 20,010 | 89,698 | 59,126 | ||||||||||||
Provision for income taxes | 9,605 | 6,734 | 27,044 | 19,083 | ||||||||||||
Net Income | $ | 21,583 | $ | 13,276 | $ | 62,654 | $ | 40,043 | ||||||||
Earnings per common share | ||||||||||||||||
Basic | $ | 0.41 | $ | 0.26 | $ | 1.20 | $ | 0.84 | ||||||||
Diluted | $ | 0.41 | $ | 0.25 | $ | 1.18 | $ | 0.83 | ||||||||
Dividends paid per common share | $ | 0.28 | $ | 0.10 | $ | 0.64 | $ | 0.30 | ||||||||
Weighted average number of common shares outstanding | 52,112 | 50,834 | 51,772 | 47,032 | ||||||||||||
Weighted average number of diluted common shares outstanding | 52,516 | 52,297 | 52,479 | 47,947 |
CONSOLIDATED BALANCE SHEETS | |||||||||||||
Columbia Banking System, Inc. | |||||||||||||
Unaudited | September 30, | December 31, | |||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
ASSETS | |||||||||||||
Cash and due from banks | $ | 157,817 | $ | 165,030 | |||||||||
Interest-earning deposits with banks | 105,631 | 14,531 | |||||||||||
Total cash and cash equivalents | 263,448 | 179,561 | |||||||||||
Securities available for sale at fair value (amortized cost of $1,609,784 and $1,680,491, respectively) | 1,611,411 | 1,664,111 | |||||||||||
Federal Home Loan Bank stock at cost | 31,592 | 32,529 | |||||||||||
Loans held for sale | 949 | 735 | |||||||||||
Loans, excluding covered loans, net of unearned income of ($53,076) and ($68,282), respectively | 4,579,178 | 4,219,451 | |||||||||||
Less: allowance for loan and lease losses | 49,938 | 52,280 | |||||||||||
Loans, excluding covered loans, net | 4,529,240 | 4,167,171 | |||||||||||
Covered loans, net of allowance for loan losses of ($17,933) and ($20,174), respectively | 225,911 | 277,671 | |||||||||||
Total loans, net | 4,755,151 | 4,444,842 | |||||||||||
FDIC loss-sharing asset | 23,492 | 39,846 | |||||||||||
Interest receivable | 25,294 | 22,206 | |||||||||||
Premises and equipment, net | 152,311 | 154,732 | |||||||||||
Other real estate owned ($11,589 and $12,093 covered by FDIC loss-share, respectively) | 21,904 | 35,927 | |||||||||||
Goodwill | 343,952 | 343,952 | |||||||||||
Other intangible assets, net | 21,336 | 25,852 | |||||||||||
Other assets | 215,241 | 217,289 | |||||||||||
Total assets | $ | 7,466,081 | $ | 7,161,582 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||
Deposits: | |||||||||||||
Noninterest-bearing | $ | 2,352,210 | $ | 2,171,703 | |||||||||
Interest-bearing | 3,892,191 | 3,787,772 | |||||||||||
Total deposits | 6,244,401 | 5,959,475 | |||||||||||
Federal Home Loan Bank advances | 6,578 | 36,606 | |||||||||||
Securities sold under agreements to repurchase | 25,000 | 25,000 | |||||||||||
Other liabilities | 93,891 | 87,252 | |||||||||||
Total liabilities | 6,369,870 | 6,108,333 | |||||||||||
Commitments and contingent liabilities | |||||||||||||
September 30, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Preferred stock (no par value) | |||||||||||||
Authorized shares | 2,000 | 2,000 | |||||||||||
Issued and outstanding | 9 | 9 | 2,217 | 2,217 | |||||||||
Common stock (no par value) | |||||||||||||
Authorized shares | 63,033 | 63,033 | |||||||||||
Issued and outstanding | 52,649 | 51,265 | 862,912 | 860,562 | |||||||||
Retained earnings | 231,577 | 202,514 | |||||||||||
Accumulated other comprehensive loss | (495 | ) | (12,044 | ) | |||||||||
Total shareholders' equity | 1,096,211 | 1,053,249 | |||||||||||
Total liabilities and shareholders' equity | $ | 7,466,081 | $ | 7,161,582 |
AVERAGE BALANCES AND RATES | ||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Average Balances | Interest Earned / Paid | Average Rate | Average Balances | Interest Earned / Paid | Average Rate | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Loans, excluding covered loans, net (1) (4) | $ | 4,517,606 | $ | 58,009 | 5.14 | % | $ | 4,166,904 | $ | 61,567 | 5.91 | % | ||||||||||
Covered loans, net (2) | 252,837 | 8,412 | 13.31 | % | 337,136 | 12,685 | 15.05 | % | ||||||||||||||
Taxable securities (3) | 1,224,608 | 8,545 | 2.79 | % | 1,183,635 | 4,935 | 1.67 | % | ||||||||||||||
Tax exempt securities (4) | 361,388 | 4,118 | 4.56 | % | 328,657 | 3,852 | 4.69 | % | ||||||||||||||
Interest-earning deposits with banks | 95,221 | 61 | 0.26 | % | 85,628 | 56 | 0.26 | % | ||||||||||||||
Total interest-earning assets | 6,451,660 | $ | 79,145 | 4.91 | % | 6,101,960 | $ | 83,095 | 5.45 | % | ||||||||||||
Other earning assets | 131,887 | 124,477 | ||||||||||||||||||||
Noninterest-earning assets | 753,759 | 822,427 | ||||||||||||||||||||
Total assets | $ | 7,337,306 | $ | 7,048,864 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||
Certificates of deposit | $ | 460,985 | $ | 288 | 0.25 | % | $ | 548,396 | $ | 457 | 0.33 | % | ||||||||||
Savings accounts | 539,982 | 15 | 0.01 | % | 484,336 | 27 | 0.02 | % | ||||||||||||||
Interest-bearing demand | 1,201,154 | 117 | 0.04 | % | 1,132,009 | 126 | 0.04 | % | ||||||||||||||
Money market accounts | 1,645,609 | 293 | 0.07 | % | 1,640,519 | 319 | 0.08 | % | ||||||||||||||
Total interest-bearing deposits | 3,847,730 | 713 | 0.07 | % | 3,805,260 | 929 | 0.10 | % | ||||||||||||||
Federal Home Loan Bank advances | 16,503 | 80 | 1.95 | % | 68,737 | 135 | 0.79 | % | ||||||||||||||
Other borrowings | 25,000 | 120 | 1.92 | % | 25,000 | 120 | 1.92 | % | ||||||||||||||
Total interest-bearing liabilities | 3,889,233 | $ | 913 | 0.09 | % | 3,898,997 | $ | 1,184 | 0.12 | % | ||||||||||||
Noninterest-bearing deposits | 2,263,079 | 2,031,758 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 85,482 | 81,975 | ||||||||||||||||||||
Shareholders’ equity | 1,099,512 | 1,036,134 | ||||||||||||||||||||
Total liabilities & shareholders’ equity | $ | 7,337,306 | $ | 7,048,864 | ||||||||||||||||||
Net interest income (tax equivalent) | $ | 78,232 | $ | 81,911 | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.85 | % | 5.37 | % |
(1) | Nonaccrual loans have been included in the tables as loans carrying a zero yield. Amortized net deferred loan fees and net unearned discounts on certain acquired loans were included in the interest income calculations. The amortization of net deferred loan fees was $1.2 million and $783 thousand for the three months ended September 30, 2014 and 2013, respectively. The accretion of net unearned discounts on certain acquired loans was $5.2 million and $10.3 million for the three months ended September 30, 2014 and 2013, respectively. |
(2) | Incremental accretion on acquired impaired loans is included in covered loan interest earned. The incremental accretion income on acquired impaired loans was $4.2 million and $7.1 million for the three months ended September 30, 2014 and 2013, respectively. |
(3) | During the three months ended September 30, 2014, the Company recorded a $2.6 million reversal of premium amortization, which increased interest income on taxable securities. For more information on this adjustment, see paragraph titled "Correction of Immaterial Error Related to Prior Periods" within the section titled "Net Interest Income." |
(4) | Yields on a fully tax equivalent basis. The tax equivalent yield adjustment to interest earned on noncovered loans was $518 thousand and $127 thousand for the three months ended September 30, 2014 and 2013, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.5 million and $1.4 million for the three months ended September 30, 2014 and 2013, respectively. |
AVERAGE BALANCES AND RATES | ||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Average Balances | Interest Earned / Paid | Average Rate | Average Balances | Interest Earned / Paid | Average Rate | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Loans, excluding covered loans, net (1) (4) | $ | 4,380,704 | $ | 169,761 | 5.17 | % | $ | 3,645,423 | $ | 155,611 | 5.69 | % | ||||||||||
Covered loans, net (2) | 271,453 | 29,986 | 14.73 | % | 372,817 | 41,750 | 14.93 | % | ||||||||||||||
Taxable securities (3) | 1,278,295 | 21,679 | 2.26 | % | 1,099,670 | 14,059 | 1.70 | % | ||||||||||||||
Tax exempt securities (4) | 359,471 | 12,419 | 4.61 | % | 311,727 | 11,310 | 4.84 | % | ||||||||||||||
Interest-earning deposits with banks | 55,986 | 105 | 0.25 | % | 151,234 | 290 | 0.26 | % | ||||||||||||||
Total interest-earning assets | 6,345,909 | $ | 233,950 | 4.92 | % | 5,580,871 | $ | 223,020 | 5.33 | % | ||||||||||||
Other earning assets | 129,819 | 106,322 | ||||||||||||||||||||
Noninterest-earning assets | 761,731 | 657,813 | ||||||||||||||||||||
Total assets | $ | 7,237,459 | $ | 6,345,006 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||
Certificates of deposit | $ | 481,370 | $ | 975 | 0.27 | % | $ | 540,674 | $ | 1,572 | 0.39 | % | ||||||||||
Savings accounts | 527,183 | 42 | 0.01 | % | 430,134 | 71 | 0.02 | % | ||||||||||||||
Interest-bearing demand | 1,185,831 | 340 | 0.04 | % | 1,011,570 | 458 | 0.06 | % | ||||||||||||||
Money market accounts | 1,615,162 | 837 | 0.07 | % | 1,532,171 | 971 | 0.08 | % | ||||||||||||||
Total interest-bearing deposits | 3,809,546 | 2,194 | 0.08 | % | 3,514,549 | 3,072 | 0.12 | % | ||||||||||||||
Federal Home Loan Bank advances (5) | 51,634 | 309 | 0.80 | % | 60,791 | 1,055 | 2.31 | % | ||||||||||||||
Other borrowings | 25,000 | 358 | 1.91 | % | 39,402 | 615 | 2.08 | % | ||||||||||||||
Total interest-bearing liabilities | 3,886,180 | $ | 2,861 | 0.10 | % | 3,614,742 | $ | 4,742 | 0.17 | % | ||||||||||||
Noninterest-bearing deposits | 2,185,062 | 1,709,532 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 82,168 | 67,783 | ||||||||||||||||||||
Shareholders’ equity | 1,084,049 | 952,949 | ||||||||||||||||||||
Total liabilities & shareholders’ equity | $ | 7,237,459 | $ | 6,345,006 | ||||||||||||||||||
Net interest income (tax equivalent) | $ | 231,089 | $ | 218,278 | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.86 | % | 5.21 | % |
(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 certain acquired loans were included in the interest income calculations. The amortization of net deferred loan fees was $3.3 million and $2.3 million for the nine months ended September 30, 2014 and 2013, respectively. The accretion of net unearned discounts on certain acquired loans was $16.6 million and $21.6 million for the nine months ended September 30, 2014 and 2013, respectively. |
(2) | Incremental accretion on acquired impaired loans is included in covered loan interest earned. The incremental accretion income on acquired impaired loans was $16.4 million and $23.3 million for the nine months ended September 30, 2014 and 2013, respectively. |
(3) | During the nine months ended September 30, 2014, the Company recorded a $2.6 million reversal of premium amortization, which increased interest income on taxable securities. For more information on this adjustment, see paragraph titled "Correction of Immaterial Error Related to Prior Periods" within the section titled "Net Interest Income." |
(4) | Yields on a fully tax equivalent basis. The tax equivalent yield adjustment to interest earned on noncovered loans was $1.3 million and $371 thousand for the nine months ended September 30, 2014 and 2013, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $4.5 million and $4.0 million for the nine months ended September 30, 2014 and 2013, respectively. |
(5) | Federal Home Loan Bank advances includes a prepayment charge of $1.5 million during the six months ended June 30, 2013. As a result of the prepayment, the Company recorded $874 thousand in premium amortization, which partially offset the impact of the prepayment charge. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Operating net interest margin non-GAAP reconciliation: | (dollars in thousands) | |||||||||||||||
Net interest income (tax equivalent) (1) | $ | 78,232 | $ | 81,911 | $ | 231,089 | $ | 218,278 | ||||||||
Adjustments to arrive at operating net interest income (tax equivalent): | ||||||||||||||||
Incremental accretion income on FDIC acquired impaired loans | (4,205 | ) | (7,063 | ) | (16,428 | ) | (23,275 | ) | ||||||||
Incremental accretion income on other FDIC acquired loans | (175 | ) | (266 | ) | (474 | ) | (1,974 | ) | ||||||||
Incremental accretion income on other acquired loans | (5,040 | ) | (10,025 | ) | (16,136 | ) | (19,660 | ) | ||||||||
Premium amortization on acquired securities | 1,454 | 2,427 | 4,633 | 5,481 | ||||||||||||
Correction of error - securities premium amortization and discount accretion | (2,622 | ) | — | (2,622 | ) | — | ||||||||||
Interest reversals on nonaccrual loans | 423 | 326 | 1,103 | 721 | ||||||||||||
Prepayment charges on FHLB advances | — | — | — | 1,548 | ||||||||||||
Operating net interest income (tax equivalent) (1) | $ | 68,067 | $ | 67,310 | $ | 201,165 | $ | 181,119 | ||||||||
Average interest earning assets | $ | 6,451,660 | $ | 6,101,960 | $ | 6,345,909 | $ | 5,580,871 | ||||||||
Net interest margin (tax equivalent) (1) | 4.85 | % | 5.37 | % | 4.86 | % | 5.21 | % | ||||||||
Operating net interest margin (tax equivalent) (1) | 4.22 | % | 4.41 | % | 4.23 | % | 4.33 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Operating efficiency ratio non-GAAP reconciliation: | (dollars in thousands) | |||||||||||||||
Noninterest expense (numerator A) | $ | 59,982 | $ | 64,714 | $ | 175,132 | $ | 167,267 | ||||||||
Adjustments to arrive at operating noninterest expense: | ||||||||||||||||
Acquisition-related expenses | (3,238 | ) | (7,621 | ) | (4,876 | ) | (17,578 | ) | ||||||||
Net benefit of operation of OREO and OPPO | 1,247 | 806 | 1,342 | 6,231 | ||||||||||||
FDIC clawback liability benefit (expense) | (201 | ) | 188 | (302 | ) | (242 | ) | |||||||||
Loss on asset disposals | (106 | ) | — | (557 | ) | (34 | ) | |||||||||
State of Washington Business and Occupation ("B&O") taxes | (1,069 | ) | (1,363 | ) | (3,116 | ) | (3,818 | ) | ||||||||
Operating noninterest expense (numerator B) | $ | 56,615 | $ | 56,724 | $ | 167,623 | $ | 151,826 | ||||||||
Net interest income (tax equivalent) (1) | $ | 78,232 | $ | 81,911 | $ | 231,089 | $ | 218,278 | ||||||||
Noninterest income | 15,930 | 7,622 | 44,565 | 16,088 | ||||||||||||
Bank owned life insurance tax equivalent adjustment | 544 | 498 | 1,649 | 1,439 | ||||||||||||
Total revenue (tax equivalent) (denominator A) | $ | 94,706 | $ | 90,031 | $ | 277,303 | $ | 235,805 | ||||||||
Operating net interest income (tax equivalent) (1) | $ | 68,067 | $ | 67,310 | $ | 201,165 | $ | 181,119 | ||||||||
Adjustments to arrive at operating noninterest income (tax equivalent): | ||||||||||||||||
Investment securities gains, net | (33 | ) | — | (552 | ) | (462 | ) | |||||||||
Gain on asset disposals | (28 | ) | (26 | ) | (78 | ) | (67 | ) | ||||||||
Gain related to branch sale deposit premium | (565 | ) | — | (565 | ) | — | ||||||||||
Change in FDIC loss-sharing asset | 4,816 | 11,826 | 14,685 | 35,446 | ||||||||||||
Operating noninterest income (tax equivalent) | 20,664 | 19,920 | 59,704 | 52,444 | ||||||||||||
Total operating revenue (tax equivalent) (denominator B) | $ | 88,731 | $ | 87,230 | $ | 260,869 | $ | 233,563 | ||||||||
Efficiency ratio (tax equivalent) (numerator A/denominator A) | 63.33 | % | 71.88 | % | 63.16 | % | 70.93 | % | ||||||||
Operating efficiency ratio (tax equivalent) (numerator B/denominator B) | 63.81 | % | 65.03 | % | 64.26 | % | 65.00 | % |
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
(dollars in thousands) | ||||||||
Allowance for loan and lease losses (numerator a) | $ | 49,938 | $ | 52,280 | ||||
Less: Allowance for loan and lease losses attributable to acquired loans | (3,943 | ) | (4,188 | ) | ||||
Equals: Allowance for noncovered loans, excluding acquired loans (numerator b) | $ | 45,995 | 48,092 | |||||
Loans, excluding covered loans, net of unearned income (denominator a) | $ | 4,579,178 | $ | 4,219,451 | ||||
Less: Acquired loans, net of unearned income | (943,643 | ) | (1,181,542 | ) | ||||
Equals: Loans, excluding covered loans and acquired loans, net of unearned income (denominator b) | $ | 3,635,535 | $ | 3,037,909 | ||||
Allowance for loan and lease losses to period-end noncovered loans (numerator a/denominator a) | 1.09 | % | 1.24 | % | ||||
Allowance for loan and lease losses to period-end noncovered loans, excluding acquired loans (numerator b/denominator b) | 1.27 | % | 1.58 | % |