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 April 27, 2016 reporting the financial results of Columbia Banking System, Inc. for the quarter ended March 31, 2016. |
99.2 | Press Release dated April 27, 2016 announcing a regular quarterly dividend and a special cash dividend. |
COLUMBIA BANKING SYSTEM, INC. | |||||
Date: | April 28, 2016 | /s/ MELANIE J. DRESSEL | |||
Melanie J. Dressel | |||||
President and Chief Executive Officer |
99.1 | Press Release dated April 27, 2016 reporting the financial results of Columbia Banking System, Inc. for the quarter ended March 31, 2016. |
99.2 | Press Release dated April 27, 2016 announcing a regular quarterly dividend and a special cash dividend. |
• | Net income of $21.3 million with diluted earnings per share of $0.37, inclusive of pre-tax acquisition-related expenses of $2.4 million, or $0.03 per diluted share |
• | New loan production for the quarter of $254 million |
• | Solid deposit growth of $158 million, or 9% annualized for the quarter |
• | Nonperforming assets to period end assets ratio remains excellent at 0.55% |
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
2016 | 2015 | 2015 | ||||||||||
(in thousands) | ||||||||||||
Adjustments reflected in income | ||||||||||||
Amortization, net | $ | (1,332 | ) | $ | (1,098 | ) | $ | (2,294 | ) | |||
Loan impairment | 147 | 855 | 1,532 | |||||||||
Sale of other real estate | 144 | (484 | ) | (420 | ) | |||||||
Write-downs of other real estate | 18 | 10 | 1,071 | |||||||||
Other | (80 | ) | (314 | ) | 261 | |||||||
Change in FDIC loss-sharing asset | $ | (1,103 | ) | $ | (1,031 | ) | $ | 150 |
Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Incremental accretion income due to: | ||||||||||||||||||||
FDIC purchased credit impaired loans | $ | 1,657 | $ | 2,200 | $ | 2,082 | $ | 2,367 | $ | 2,447 | ||||||||||
Other FDIC acquired loans (2) | — | 68 | 34 | 15 | 117 | |||||||||||||||
Other acquired loans | 3,073 | 3,746 | 4,293 | 4,889 | 4,934 | |||||||||||||||
Incremental accretion income | $ | 4,730 | $ | 6,014 | $ | 6,409 | $ | 7,271 | $ | 7,498 | ||||||||||
Net interest margin (tax equivalent) | 4.13 | % | 4.25 | % | 4.37 | % | 4.41 | % | 4.39 | % | ||||||||||
Operating net interest margin (tax equivalent) (1) | 4.03 | % | 4.09 | % | 4.18 | % | 4.17 | % | 4.18 | % |
March 31, 2016 | December 31, 2015 | |||||||
(in thousands) | ||||||||
Nonaccrual loans: | ||||||||
Commercial business | $ | 22,559 | $ | 9,437 | ||||
Real estate: | ||||||||
One-to-four family residential | 730 | 820 | ||||||
Commercial and multifamily residential | 8,117 | 9,513 | ||||||
Total real estate | 8,847 | 10,333 | ||||||
Real estate construction: | ||||||||
One-to-four family residential | 768 | 928 | ||||||
Total real estate construction | 768 | 928 | ||||||
Consumer | 4,717 | 766 | ||||||
Total nonaccrual loans | 36,891 | 21,464 | ||||||
Other real estate owned and other personal property owned | 12,427 | 13,738 | ||||||
Total nonperforming assets | $ | 49,318 | $ | 35,202 |
Three Months Ended | ||||||||||||
March 31, 2016 | December 31, 2015 | March 31, 2015 | ||||||||||
(in thousands) | ||||||||||||
Beginning balance | $ | 68,172 | $ | 69,049 | $ | 69,569 | ||||||
Charge-offs: | ||||||||||||
Commercial business | (3,773 | ) | (2,184 | ) | (1,426 | ) | ||||||
One-to-four family residential real estate | — | (79 | ) | (8 | ) | |||||||
Commercial and multifamily residential real estate | — | (264 | ) | — | ||||||||
Consumer | (266 | ) | (545 | ) | (891 | ) | ||||||
Purchased credit impaired | (2,866 | ) | (3,680 | ) | (4,100 | ) | ||||||
Total charge-offs | (6,905 | ) | (6,752 | ) | (6,425 | ) | ||||||
Recoveries: | ||||||||||||
Commercial business | 662 | 886 | 618 | |||||||||
One-to-four family residential real estate | 41 | 19 | 12 | |||||||||
Commercial and multifamily residential real estate | 69 | 277 | 3,261 | |||||||||
One-to-four family residential real estate construction | 254 | 52 | 28 | |||||||||
Commercial and multifamily residential real estate construction | 1 | 1 | 3 | |||||||||
Consumer | 165 | 224 | 273 | |||||||||
Purchased credit impaired | 1,551 | 2,067 | 1,686 | |||||||||
Total recoveries | 2,743 | 3,526 | 5,881 | |||||||||
Net charge-offs | (4,162 | ) | (3,226 | ) | (544 | ) | ||||||
Provision for loan and lease losses | 5,254 | 2,349 | 1,209 | |||||||||
Ending balance | $ | 69,264 | $ | 68,172 | $ | 70,234 |
FDIC Acquired Loan Accounting | ||||||||||||
Three Months Ended | ||||||||||||
March 31, 2016 | December 31, 2015 | March 31, 2015 | ||||||||||
(in thousands) | ||||||||||||
Incremental accretion income on FDIC purchased credit impaired loans | $ | 1,657 | $ | 2,200 | $ | 2,447 | ||||||
Incremental accretion income on other FDIC acquired loans (1) | — | 68 | 117 | |||||||||
Provision for losses on FDIC purchased credit impaired loans | (653 | ) | (1,349 | ) | (2,609 | ) | ||||||
Change in FDIC loss-sharing asset | (1,103 | ) | (1,031 | ) | 150 | |||||||
FDIC clawback liability expense | (209 | ) | (812 | ) | (23 | ) | ||||||
Pre-tax earnings impact | $ | (308 | ) | $ | (924 | ) | $ | 82 |
FINANCIAL STATISTICS | ||||||||||||
Columbia Banking System, Inc. | Three Months Ended | |||||||||||
Unaudited | March 31, | December 31, | March 31, | |||||||||
2016 | 2015 | 2015 | ||||||||||
Earnings | (dollars in thousands except per share amounts) | |||||||||||
Net interest income | $ | 80,170 | $ | 81,819 | $ | 80,364 | ||||||
Provision for loan and lease losses | $ | 5,254 | $ | 2,349 | $ | 1,209 | ||||||
Noninterest income | $ | 20,646 | $ | 24,745 | $ | 22,767 | ||||||
Noninterest expense | $ | 65,074 | $ | 66,877 | $ | 66,734 | ||||||
Acquisition-related expense (included in noninterest expense) | $ | 2,436 | $ | 1,872 | $ | 2,974 | ||||||
Net income | $ | 21,259 | $ | 26,740 | $ | 24,361 | ||||||
Per Common Share | ||||||||||||
Earnings (basic) | $ | 0.37 | $ | 0.46 | $ | 0.42 | ||||||
Earnings (diluted) | $ | 0.37 | $ | 0.46 | $ | 0.42 | ||||||
Book value | $ | 21.70 | $ | 21.48 | $ | 21.53 | ||||||
Averages | ||||||||||||
Total assets | $ | 8,949,212 | $ | 8,905,743 | $ | 8,505,776 | ||||||
Interest-earning assets | $ | 8,005,945 | $ | 7,937,308 | $ | 7,529,040 | ||||||
Loans | $ | 5,827,440 | $ | 5,762,048 | $ | 5,414,942 | ||||||
Securities, including Federal Home Loan Bank stock | $ | 2,147,457 | $ | 2,136,703 | $ | 2,068,806 | ||||||
Deposits | $ | 7,445,693 | $ | 7,440,628 | $ | 6,927,756 | ||||||
Interest-bearing deposits | $ | 3,983,314 | $ | 3,933,001 | $ | 4,157,491 | ||||||
Interest-bearing liabilities | $ | 4,124,582 | $ | 4,031,214 | $ | 4,395,502 | ||||||
Noninterest-bearing deposits | $ | 3,462,379 | $ | 3,507,627 | $ | 2,770,265 | ||||||
Shareholders' equity | $ | 1,258,411 | $ | 1,259,117 | $ | 1,240,853 | ||||||
Financial Ratios | ||||||||||||
Return on average assets | 0.95 | % | 1.20 | % | 1.15 | % | ||||||
Return on average common equity | 6.76 | % | 8.50 | % | 7.86 | % | ||||||
Average equity to average assets | 14.06 | % | 14.14 | % | 14.59 | % | ||||||
Net interest margin (tax equivalent) | 4.13 | % | 4.25 | % | 4.39 | % | ||||||
Efficiency ratio (tax equivalent) (1) | 62.63 | % | 60.99 | % | 62.95 | % | ||||||
Operating efficiency ratio (tax equivalent) (2) | 59.43 | % | 60.53 | % | 63.02 | % | ||||||
March 31, | December 31, | |||||||||||
Period end | 2016 | 2015 | ||||||||||
Total assets | $ | 9,035,932 | $ | 8,951,697 | ||||||||
Loans, net of unearned income | $ | 5,877,283 | $ | 5,815,027 | ||||||||
Allowance for loan and lease losses | $ | 69,264 | $ | 68,172 | ||||||||
Securities, including Federal Home Loan Bank stock | $ | 2,196,407 | $ | 2,170,416 | ||||||||
Deposits | $ | 7,596,949 | $ | 7,438,829 | ||||||||
Core deposits | $ | 7,285,067 | $ | 7,127,866 | ||||||||
Shareholders' equity | $ | 1,260,788 | $ | 1,242,128 | ||||||||
Nonperforming assets | ||||||||||||
Nonaccrual loans | $ | 36,891 | $ | 21,464 | ||||||||
Other real estate owned ("OREO") and other personal property owned ("OPPO") | 12,427 | 13,738 | ||||||||||
Total nonperforming assets | $ | 49,318 | $ | 35,202 | ||||||||
Nonperforming loans to period-end loans | 0.63 | % | 0.37 | % | ||||||||
Nonperforming assets to period-end assets | 0.55 | % | 0.39 | % | ||||||||
Allowance for loan and lease losses to period-end loans | 1.18 | % | 1.17 | % | ||||||||
Net loan charge-offs | $ | 4,162 | (3) | $ | 3,226 | (4) | ||||||
(1) Noninterest expense divided by the sum of net interest income on a tax equivalent basis and noninterest income on a tax equivalent basis. | ||||||||||||
(2) The operating efficiency ratio (tax equivalent) is a non-GAAP financial measure. See section titled "Non-GAAP Financial Measures" on the last pages of this earnings release for the reconciliation of the operating efficiency ratio (tax equivalent) to the efficiency ratio (tax equivalent). | ||||||||||||
(3) For the three months ended March 31, 2016. | ||||||||||||
(4) For the three months ended December 31, 2015. |
QUARTERLY FINANCIAL STATISTICS | ||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | |||||||||||||||||||
Unaudited | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | ||||||||||||||||
(dollars in thousands except per share) | ||||||||||||||||||||
Earnings | ||||||||||||||||||||
Net interest income | $ | 80,170 | $ | 81,819 | $ | 81,694 | $ | 81,010 | $ | 80,364 | ||||||||||
Provision for loan and lease losses | $ | 5,254 | $ | 2,349 | $ | 2,831 | $ | 2,202 | $ | 1,209 | ||||||||||
Noninterest income | $ | 20,646 | $ | 24,745 | $ | 22,499 | $ | 21,462 | $ | 22,767 | ||||||||||
Noninterest expense | $ | 65,074 | $ | 66,877 | $ | 64,067 | $ | 68,471 | $ | 66,734 | ||||||||||
Acquisition-related expense (included in noninterest expense) | $ | 2,436 | $ | 1,872 | $ | 428 | $ | 5,643 | $ | 2,974 | ||||||||||
Net income | $ | 21,259 | $ | 26,740 | $ | 25,780 | $ | 21,946 | $ | 24,361 | ||||||||||
Per Common Share | ||||||||||||||||||||
Earnings (basic) | $ | 0.37 | $ | 0.46 | $ | 0.45 | $ | 0.38 | $ | 0.42 | ||||||||||
Earnings (diluted) | $ | 0.37 | $ | 0.46 | $ | 0.45 | $ | 0.38 | $ | 0.42 | ||||||||||
Book value | $ | 21.70 | $ | 21.48 | $ | 21.69 | $ | 21.38 | $ | 21.53 | ||||||||||
Averages | ||||||||||||||||||||
Total assets | $ | 8,949,212 | $ | 8,905,743 | $ | 8,672,692 | $ | 8,532,173 | $ | 8,505,776 | ||||||||||
Interest-earning assets | $ | 8,005,945 | $ | 7,937,308 | $ | 7,711,531 | $ | 7,560,288 | $ | 7,529,040 | ||||||||||
Loans | $ | 5,827,440 | $ | 5,762,048 | $ | 5,712,614 | $ | 5,542,489 | $ | 5,414,942 | ||||||||||
Securities, including Federal Home Loan Bank stock | $ | 2,147,457 | $ | 2,136,703 | $ | 1,945,174 | $ | 1,976,959 | $ | 2,068,806 | ||||||||||
Deposits | $ | 7,445,693 | $ | 7,440,628 | $ | 7,233,863 | $ | 6,978,472 | $ | 6,927,756 | ||||||||||
Interest-bearing deposits | $ | 3,983,314 | $ | 3,933,001 | $ | 3,910,695 | $ | 3,753,101 | $ | 4,157,491 | ||||||||||
Interest-bearing liabilities | $ | 4,124,582 | $ | 4,031,214 | $ | 4,007,198 | $ | 3,961,013 | $ | 4,395,502 | ||||||||||
Noninterest-bearing deposits | $ | 3,462,379 | $ | 3,507,627 | $ | 3,323,168 | $ | 3,225,371 | $ | 2,770,265 | ||||||||||
Shareholders' equity | $ | 1,258,411 | $ | 1,259,117 | $ | 1,239,830 | $ | 1,247,887 | $ | 1,240,853 | ||||||||||
Financial Ratios | ||||||||||||||||||||
Return on average assets | 0.95 | % | 1.20 | % | 1.19 | % | 1.03 | % | 1.15 | % | ||||||||||
Return on average common equity | 6.76 | % | 8.50 | % | 8.32 | % | 7.04 | % | 7.86 | % | ||||||||||
Average equity to average assets | 14.06 | % | 14.14 | % | 14.30 | % | 14.63 | % | 14.59 | % | ||||||||||
Net interest margin (tax equivalent) | 4.13 | % | 4.25 | % | 4.37 | % | 4.41 | % | 4.39 | % | ||||||||||
Period end | ||||||||||||||||||||
Total assets | $ | 9,035,932 | $ | 8,951,697 | $ | 8,755,984 | $ | 8,518,019 | $ | 8,552,902 | ||||||||||
Loans, net of unearned income | $ | 5,877,283 | $ | 5,815,027 | $ | 5,746,511 | $ | 5,611,897 | $ | 5,450,895 | ||||||||||
Allowance for loan and lease losses | $ | 69,264 | $ | 68,172 | $ | 69,049 | $ | 69,257 | $ | 70,234 | ||||||||||
Securities, including Federal Home Loan Bank stock | $ | 2,196,407 | $ | 2,170,416 | $ | 2,037,666 | $ | 1,926,248 | $ | 2,040,163 | ||||||||||
Deposits | $ | 7,596,949 | $ | 7,438,829 | $ | 7,314,805 | $ | 7,044,373 | $ | 7,074,965 | ||||||||||
Core deposits | $ | 7,285,067 | $ | 7,127,866 | $ | 6,986,206 | $ | 6,737,969 | $ | 6,771,755 | ||||||||||
Shareholders' equity | $ | 1,260,788 | $ | 1,242,128 | $ | 1,254,136 | $ | 1,236,214 | $ | 1,244,443 | ||||||||||
Nonperforming, assets | ||||||||||||||||||||
Nonaccrual loans | $ | 36,891 | $ | 21,464 | $ | 19,080 | $ | 25,746 | $ | 31,828 | ||||||||||
OREO and OPPO | 12,427 | 13,738 | 19,475 | 20,665 | 23,347 | |||||||||||||||
Total nonperforming assets | $ | 49,318 | $ | 35,202 | $ | 38,555 | $ | 46,411 | $ | 55,175 | ||||||||||
Nonperforming loans to period-end loans | 0.63 | % | 0.37 | % | 0.33 | % | 0.46 | % | 0.58 | % | ||||||||||
Nonperforming assets to period-end assets | 0.55 | % | 0.39 | % | 0.44 | % | 0.54 | % | 0.65 | % | ||||||||||
Allowance for loan and lease losses to period-end loans | 1.18 | % | 1.17 | % | 1.20 | % | 1.23 | % | 1.29 | % | ||||||||||
Net loan charge-offs | $ | 4,162 | $ | 3,226 | $ | 3,039 | $ | 3,179 | $ | 544 |
LOAN PORTFOLIO COMPOSITION | ||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||
Unaudited | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | ||||||||||||||||
Loan Portfolio Composition - Dollars | (dollars in thousands) | |||||||||||||||||||
Commercial business | $ | 2,401,193 | $ | 2,362,575 | $ | 2,354,731 | $ | 2,255,468 | $ | 2,139,873 | ||||||||||
Real estate: | ||||||||||||||||||||
One-to-four family residential | 175,050 | 176,295 | 177,108 | 181,849 | 173,739 | |||||||||||||||
Commercial and multifamily residential | 2,520,352 | 2,491,736 | 2,449,847 | 2,406,594 | 2,374,454 | |||||||||||||||
Total real estate | 2,695,402 | 2,668,031 | 2,626,955 | 2,588,443 | 2,548,193 | |||||||||||||||
Real estate construction: | ||||||||||||||||||||
One-to-four family residential | 133,447 | 135,874 | 136,783 | 127,311 | 124,017 | |||||||||||||||
Commercial and multifamily residential | 183,548 | 167,413 | 134,097 | 129,302 | 119,880 | |||||||||||||||
Total real estate construction | 316,995 | 303,287 | 270,880 | 256,613 | 243,897 | |||||||||||||||
Consumer | 329,902 | 342,601 | 348,315 | 358,365 | 352,960 | |||||||||||||||
Purchased credit impaired | 173,201 | 180,906 | 191,066 | 202,367 | 219,839 | |||||||||||||||
Subtotal loans | 5,916,693 | 5,857,400 | 5,791,947 | 5,661,256 | 5,504,762 | |||||||||||||||
Less: Net unearned income | (39,410 | ) | (42,373 | ) | (45,436 | ) | (49,359 | ) | (53,867 | ) | ||||||||||
Loans, net of unearned income | 5,877,283 | 5,815,027 | 5,746,511 | 5,611,897 | 5,450,895 | |||||||||||||||
Less: Allowance for loan and lease losses | (69,264 | ) | (68,172 | ) | (69,049 | ) | (69,257 | ) | (70,234 | ) | ||||||||||
Total loans, net | 5,808,019 | 5,746,855 | 5,677,462 | 5,542,640 | 5,380,661 | |||||||||||||||
Loans held for sale | $ | 3,681 | $ | 4,509 | $ | 6,637 | $ | 4,220 | $ | 3,545 |
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
Loan Portfolio Composition - Percentages | 2016 | 2015 | 2015 | 2015 | 2015 | ||||||||||
Commercial business | 40.9 | % | 40.6 | % | 41.0 | % | 40.2 | % | 39.3 | % | |||||
Real estate: | |||||||||||||||
One-to-four family residential | 3.0 | % | 3.0 | % | 3.1 | % | 3.2 | % | 3.2 | % | |||||
Commercial and multifamily residential | 42.9 | % | 42.9 | % | 42.6 | % | 42.9 | % | 43.5 | % | |||||
Total real estate | 45.9 | % | 45.9 | % | 45.7 | % | 46.1 | % | 46.7 | % | |||||
Real estate construction: | |||||||||||||||
One-to-four family residential | 2.3 | % | 2.3 | % | 2.4 | % | 2.3 | % | 2.3 | % | |||||
Commercial and multifamily residential | 3.1 | % | 2.9 | % | 2.3 | % | 2.3 | % | 2.2 | % | |||||
Total real estate construction | 5.4 | % | 5.2 | % | 4.7 | % | 4.6 | % | 4.5 | % | |||||
Consumer | 5.6 | % | 5.9 | % | 6.1 | % | 6.4 | % | 6.5 | % | |||||
Purchased credit impaired | 2.9 | % | 3.1 | % | 3.3 | % | 3.6 | % | 4.0 | % | |||||
Subtotal loans | 100.7 | % | 100.7 | % | 100.8 | % | 100.9 | % | 101.0 | % | |||||
Less: Net unearned income | (0.7 | )% | (0.7 | )% | (0.8 | )% | (0.9 | )% | (1.0 | )% | |||||
Loans, net of unearned income | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
DEPOSIT COMPOSITION | ||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | ||||||||||||||||
Deposit Composition - Dollars | (dollars in thousands) | |||||||||||||||||||
Core deposits: | ||||||||||||||||||||
Demand and other non-interest bearing | $ | 3,553,468 | $ | 3,507,358 | $ | 3,386,968 | $ | 3,207,538 | $ | 3,260,376 | ||||||||||
Interest bearing demand | 958,469 | 925,909 | 911,686 | 912,637 | 901,684 | |||||||||||||||
Money market | 1,838,364 | 1,788,552 | 1,776,087 | 1,718,000 | 1,700,014 | |||||||||||||||
Savings | 695,588 | 657,016 | 651,695 | 630,897 | 630,423 | |||||||||||||||
Certificates of deposit less than $100,000 | 239,178 | 249,031 | 259,770 | 268,897 | 279,258 | |||||||||||||||
Total core deposits | 7,285,067 | 7,127,866 | 6,986,206 | 6,737,969 | 6,771,755 | |||||||||||||||
Certificates of deposit greater than $100,000 | 170,126 | 182,973 | 184,047 | 194,449 | 199,728 | |||||||||||||||
Certificates of deposit insured by CDARS® | 24,752 | 26,901 | 26,975 | 18,357 | 18,430 | |||||||||||||||
Brokered money market accounts | 116,878 | 100,854 | 117,196 | 93,061 | 84,336 | |||||||||||||||
Subtotal | 7,596,823 | 7,438,594 | 7,314,424 | 7,043,836 | 7,074,249 | |||||||||||||||
Premium resulting from acquisition date fair value adjustment | 126 | 235 | 381 | 537 | 716 | |||||||||||||||
Total deposits | $ | 7,596,949 | $ | 7,438,829 | $ | 7,314,805 | $ | 7,044,373 | $ | 7,074,965 |
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
Deposit Composition - Percentages | 2016 | 2015 | 2015 | 2015 | 2015 | ||||||||||
Core deposits: | |||||||||||||||
Demand and other non-interest bearing | 46.8 | % | 47.2 | % | 46.3 | % | 45.5 | % | 46.2 | % | |||||
Interest bearing demand | 12.6 | % | 12.4 | % | 12.5 | % | 13.0 | % | 12.7 | % | |||||
Money market | 24.2 | % | 24.0 | % | 24.3 | % | 24.4 | % | 24.0 | % | |||||
Savings | 9.2 | % | 8.8 | % | 8.9 | % | 9.0 | % | 8.9 | % | |||||
Certificates of deposit less than $100,000 | 3.1 | % | 3.3 | % | 3.6 | % | 3.8 | % | 3.9 | % | |||||
Total core deposits | 95.9 | % | 95.7 | % | 95.6 | % | 95.7 | % | 95.7 | % | |||||
Certificates of deposit greater than $100,000 | 2.3 | % | 2.5 | % | 2.4 | % | 2.7 | % | 2.8 | % | |||||
Certificates of deposit insured by CDARS® | 0.3 | % | 0.4 | % | 0.4 | % | 0.3 | % | 0.3 | % | |||||
Brokered money market accounts | 1.5 | % | 1.4 | % | 1.6 | % | 1.3 | % | 1.2 | % | |||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
Columbia Banking System, Inc. | Three Months Ended | |||||||||||
Unaudited | March 31, | December 31, | March 31, | |||||||||
2016 | 2015 (1) | 2015 (1) | ||||||||||
(in thousands except per share) | ||||||||||||
Interest Income | ||||||||||||
Loans | $ | 70,316 | $ | 71,358 | $ | 70,822 | ||||||
Taxable securities | 8,017 | 8,516 | 7,526 | |||||||||
Tax-exempt securities | 2,803 | 2,870 | 3,042 | |||||||||
Deposits in banks | 38 | 25 | 27 | |||||||||
Total interest income | 81,174 | 82,769 | 81,417 | |||||||||
Interest Expense | ||||||||||||
Deposits | 742 | 733 | 748 | |||||||||
Federal Home Loan Bank advances | 124 | 83 | 159 | |||||||||
Other borrowings | 138 | 134 | 146 | |||||||||
Total interest expense | 1,004 | 950 | 1,053 | |||||||||
Net Interest Income | 80,170 | 81,819 | 80,364 | |||||||||
Provision for loan and lease losses | 5,254 | 2,349 | 1,209 | |||||||||
Net interest income after provision for loan and lease losses | 74,916 | 79,470 | 79,155 | |||||||||
Noninterest Income | ||||||||||||
Deposit account and treasury management fees (1) | 6,989 | 7,010 | 6,860 | |||||||||
Card revenue (1) | 5,652 | 5,776 | 5,363 | |||||||||
Financial services and trust revenue (1) | 2,821 | 2,940 | 3,124 | |||||||||
Loan revenue (1) | 2,262 | 2,808 | 2,603 | |||||||||
Merchant processing revenue | 2,102 | 2,173 | 2,040 | |||||||||
Bank owned life insurance | 1,116 | 1,071 | 1,078 | |||||||||
Investment securities gains, net | 373 | 281 | 721 | |||||||||
Change in FDIC loss-sharing asset | (1,103 | ) | (1,031 | ) | 150 | |||||||
Other (1) | 434 | 3,717 | 828 | |||||||||
Total noninterest income | 20,646 | 24,745 | 22,767 | |||||||||
Noninterest Expense | ||||||||||||
Compensation and employee benefits | 36,319 | 36,689 | 39,100 | |||||||||
Occupancy | 10,173 | 10,037 | 7,993 | |||||||||
Merchant processing expense | 1,033 | 1,058 | 977 | |||||||||
Advertising and promotion | 842 | 1,233 | 931 | |||||||||
Data processing | 4,146 | 4,399 | 4,984 | |||||||||
Legal and professional fees | 1,325 | 2,081 | 2,507 | |||||||||
Taxes, licenses and fees | 1,290 | 1,392 | 1,232 | |||||||||
Regulatory premiums | 1,141 | 1,180 | 1,221 | |||||||||
Net cost (benefit) of operation of other real estate owned | 104 | (60 | ) | (1,246 | ) | |||||||
Amortization of intangibles | 1,583 | 1,652 | 1,817 | |||||||||
Other | 7,118 | 7,216 | 7,218 | |||||||||
Total noninterest expense | 65,074 | 66,877 | 66,734 | |||||||||
Income before income taxes | 30,488 | 37,338 | 35,188 | |||||||||
Provision for income taxes | 9,229 | 10,598 | 10,827 | |||||||||
Net Income | $ | 21,259 | $ | 26,740 | $ | 24,361 | ||||||
Earnings per common share | ||||||||||||
Basic | $ | 0.37 | $ | 0.46 | $ | 0.42 | ||||||
Diluted | $ | 0.37 | $ | 0.46 | $ | 0.42 | ||||||
Dividends paid per common share | $ | 0.38 | $ | 0.36 | $ | 0.30 | ||||||
Weighted average number of common shares outstanding | 57,114 | 57,057 | 56,965 | |||||||||
Weighted average number of diluted common shares outstanding | 57,125 | 57,070 | 56,978 |
CONSOLIDATED BALANCE SHEETS | |||||||||||||
Columbia Banking System, Inc. | |||||||||||||
Unaudited | March 31, | December 31, | |||||||||||
2016 | 2015 | ||||||||||||
(in thousands) | |||||||||||||
ASSETS | |||||||||||||
Cash and due from banks | $ | 150,683 | $ | 166,929 | |||||||||
Interest-earning deposits with banks | 38,248 | 8,373 | |||||||||||
Total cash and cash equivalents | 188,931 | 175,302 | |||||||||||
Securities available for sale at fair value (amortized cost of $2,156,999 and $2,157,610, respectively) | 2,186,166 | 2,157,694 | |||||||||||
Federal Home Loan Bank stock at cost | 10,241 | 12,722 | |||||||||||
Loans held for sale | 3,681 | 4,509 | |||||||||||
Loans, net of unearned income of ($39,410) and ($42,373), respectively | 5,877,283 | 5,815,027 | |||||||||||
Less: allowance for loan and lease losses | 69,264 | 68,172 | |||||||||||
Loans, net | 5,808,019 | 5,746,855 | |||||||||||
FDIC loss-sharing asset | 5,954 | 6,568 | |||||||||||
Interest receivable | 29,304 | 27,877 | |||||||||||
Premises and equipment, net | 158,101 | 164,239 | |||||||||||
Other real estate owned | 12,427 | 13,738 | |||||||||||
Goodwill | 382,762 | 382,762 | |||||||||||
Other intangible assets, net | 21,994 | 23,577 | |||||||||||
Other assets | 228,352 | 235,854 | |||||||||||
Total assets | $ | 9,035,932 | $ | 8,951,697 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||
Deposits: | |||||||||||||
Noninterest-bearing | $ | 3,553,468 | $ | 3,507,358 | |||||||||
Interest-bearing | 4,043,481 | 3,931,471 | |||||||||||
Total deposits | 7,596,949 | 7,438,829 | |||||||||||
Federal Home Loan Bank advances | 6,521 | 68,531 | |||||||||||
Securities sold under agreements to repurchase | 73,839 | 99,699 | |||||||||||
Other liabilities | 97,835 | 102,510 | |||||||||||
Total liabilities | 7,775,144 | 7,709,569 | |||||||||||
Commitments and contingent liabilities | |||||||||||||
March 31, | December 31, | ||||||||||||
2016 | 2015 | ||||||||||||
Preferred stock (no par value) | (in thousands) | ||||||||||||
Authorized shares | 2,000 | 2,000 | |||||||||||
Issued and outstanding | 9 | 9 | 2,217 | 2,217 | |||||||||
Common stock (no par value) | |||||||||||||
Authorized shares | 115,000 | 115,000 | |||||||||||
Issued and outstanding | 58,008 | 57,724 | 991,026 | 990,281 | |||||||||
Retained earnings | 255,202 | 255,925 | |||||||||||
Accumulated other comprehensive income (loss) | 12,343 | (6,295 | ) | ||||||||||
Total shareholders' equity | 1,260,788 | 1,242,128 | |||||||||||
Total liabilities and shareholders' equity | $ | 9,035,932 | $ | 8,951,697 |
AVERAGE BALANCES AND RATES | ||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
March 31, 2016 | March 31, 2015 | |||||||||||||||||||||
Average Balances | Interest Earned / Paid | Average Rate | Average Balances | Interest Earned / Paid | Average Rate | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Loans, net (1)(2) | $ | 5,827,440 | $ | 71,298 | 4.89 | % | $ | 5,414,942 | $ | 71,487 | 5.28 | % | ||||||||||
Taxable securities | 1,689,289 | 8,017 | 1.90 | % | 1,609,323 | 7,526 | 1.87 | % | ||||||||||||||
Tax exempt securities (2) | 458,168 | 4,312 | 3.76 | % | 459,483 | 4,680 | 4.07 | % | ||||||||||||||
Interest-earning deposits with banks | 31,048 | 38 | 0.49 | % | 45,292 | 27 | 0.24 | % | ||||||||||||||
Total interest-earning assets | 8,005,945 | $ | 83,665 | 4.18 | % | 7,529,040 | $ | 83,720 | 4.45 | % | ||||||||||||
Other earning assets | 154,336 | 146,055 | ||||||||||||||||||||
Noninterest-earning assets | 788,931 | 830,681 | ||||||||||||||||||||
Total assets | $ | 8,949,212 | $ | 8,505,776 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||
Certificates of deposit | $ | 448,915 | $ | 144 | 0.13 | % | $ | 502,287 | $ | 240 | 0.19 | % | ||||||||||
Savings accounts | 675,876 | 17 | 0.01 | % | 625,132 | 19 | 0.01 | % | ||||||||||||||
Interest-bearing demand | 927,948 | 169 | 0.07 | % | 1,214,149 | 138 | 0.05 | % | ||||||||||||||
Money market accounts | 1,930,575 | 412 | 0.09 | % | 1,815,923 | 351 | 0.08 | % | ||||||||||||||
Total interest-bearing deposits | 3,983,314 | 742 | 0.07 | % | 4,157,491 | 748 | 0.07 | % | ||||||||||||||
Federal Home Loan Bank advances | 50,569 | 124 | 0.98 | % | 129,841 | 159 | 0.49 | % | ||||||||||||||
Other borrowings | 90,699 | 138 | 0.61 | % | 108,170 | 146 | 0.54 | % | ||||||||||||||
Total interest-bearing liabilities | 4,124,582 | $ | 1,004 | 0.10 | % | 4,395,502 | $ | 1,053 | 0.10 | % | ||||||||||||
Noninterest-bearing deposits | 3,462,379 | 2,770,265 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 103,840 | 99,156 | ||||||||||||||||||||
Shareholders’ equity | 1,258,411 | 1,240,853 | ||||||||||||||||||||
Total liabilities & shareholders’ equity | $ | 8,949,212 | $ | 8,505,776 | ||||||||||||||||||
Net interest income (tax equivalent) | $ | 82,661 | $ | 82,667 | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.13 | % | 4.39 | % |
(1) | Nonaccrual loans have been included in the tables as loans carrying a zero yield. Amortized net deferred loan fees and net unearned discounts on acquired loans were included in the interest income calculations. The amortization of net deferred loan fees was $1.1 million for both three month periods ended March 31, 2016 and March 31, 2015. The incremental accretion on acquired loans was $4.7 million and $7.5 million for the three months ended March 31, 2016 and 2015, respectively. |
(2) | Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was $982 thousand and $665 thousand for the three months ended March 31, 2016 and 2015, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.5 million and $1.6 million for the three months ended March 31, 2016 and 2015, respectively. |
AVERAGE BALANCES AND RATES | ||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
March 31, 2016 | December 31, 2015 | |||||||||||||||||||||
Average Balances | Interest Earned / Paid | Average Rate | Average Balances | Interest Earned / Paid | Average Rate | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Loans, net (1)(2) | $ | 5,827,440 | $ | 71,298 | 4.89 | % | $ | 5,762,048 | $ | 72,322 | 5.02 | % | ||||||||||
Taxable securities | 1,689,289 | 8,017 | 1.90 | % | 1,686,594 | 8,516 | 2.02 | % | ||||||||||||||
Tax exempt securities (2) | 458,168 | 4,312 | 3.76 | % | 450,109 | 4,417 | 3.93 | % | ||||||||||||||
Interest-earning deposits with banks | 31,048 | 38 | 0.49 | % | 38,557 | 25 | 0.26 | % | ||||||||||||||
Total interest-earning assets | 8,005,945 | $ | 83,665 | 4.18 | % | 7,937,308 | $ | 85,280 | 4.30 | % | ||||||||||||
Other earning assets | 154,336 | 153,298 | ||||||||||||||||||||
Noninterest-earning assets | 788,931 | 815,137 | ||||||||||||||||||||
Total assets | $ | 8,949,212 | $ | 8,905,743 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||
Certificates of deposit | $ | 448,915 | $ | 144 | 0.13 | % | $ | 460,858 | $ | 179 | 0.16 | % | ||||||||||
Savings accounts | 675,876 | 17 | 0.01 | % | 653,738 | 17 | 0.01 | % | ||||||||||||||
Interest-bearing demand | 927,948 | 169 | 0.07 | % | 920,021 | 161 | 0.07 | % | ||||||||||||||
Money market accounts | 1,930,575 | 412 | 0.09 | % | 1,898,384 | 376 | 0.08 | % | ||||||||||||||
Total interest-bearing deposits | 3,983,314 | 742 | 0.07 | % | 3,933,001 | 733 | 0.07 | % | ||||||||||||||
Federal Home Loan Bank advances | 50,569 | 124 | 0.98 | % | 18,915 | 83 | 1.76 | % | ||||||||||||||
Other borrowings | 90,699 | 138 | 0.61 | % | 79,298 | 134 | 0.68 | % | ||||||||||||||
Total interest-bearing liabilities | 4,124,582 | $ | 1,004 | 0.10 | % | 4,031,214 | $ | 950 | 0.09 | % | ||||||||||||
Noninterest-bearing deposits | 3,462,379 | 3,507,627 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 103,840 | 107,785 | ||||||||||||||||||||
Shareholders’ equity | 1,258,411 | 1,259,117 | ||||||||||||||||||||
Total liabilities & shareholders’ equity | $ | 8,949,212 | $ | 8,905,743 | ||||||||||||||||||
Net interest income (tax equivalent) | $ | 82,661 | $ | 84,330 | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.13 | % | 4.25 | % |
(1) | Nonaccrual loans have been included in the tables as loans carrying a zero yield. Amortized net deferred loan fees and net unearned discounts on acquired loans were included in the interest income calculations. The amortization of net deferred loan fees was $1.1 million for both three month periods ended March 31, 2016 and December 31, 2015. The incremental accretion on acquired loans was $4.7 million and $6.0 million for the three months ended March 31, 2016 and December 31, 2015, respectively. |
(2) | Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was $982 thousand and $964 thousand for the three months ended March 31, 2016 and December 31, 2015, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.5 million for both three month periods ended March 31, 2016 and December 31, 2015. |
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
2016 | 2015 | 2015 | ||||||||||
Operating net interest margin non-GAAP reconciliation: | (dollars in thousands) | |||||||||||
Net interest income (tax equivalent) (1) | $ | 82,661 | $ | 84,330 | $ | 82,667 | ||||||
Adjustments to arrive at operating net interest income (tax equivalent): | ||||||||||||
Incremental accretion income on FDIC purchased credit impaired loans | (1,657 | ) | (2,200 | ) | (2,447 | ) | ||||||
Incremental accretion income on other FDIC acquired loans (2) | — | (68 | ) | (117 | ) | |||||||
Incremental accretion income on other acquired loans | (3,073 | ) | (3,746 | ) | (4,934 | ) | ||||||
Premium amortization on acquired securities | 2,324 | 2,253 | 2,861 | |||||||||
Interest reversals on nonaccrual loans | 453 | 582 | 650 | |||||||||
Operating net interest income (tax equivalent) (1) | $ | 80,708 | $ | 81,151 | $ | 78,680 | ||||||
Average interest earning assets | $ | 8,005,945 | $ | 7,937,308 | $ | 7,529,040 | ||||||
Net interest margin (tax equivalent) (1) | 4.13 | % | 4.25 | % | 4.39 | % | ||||||
Operating net interest margin (tax equivalent) (1) | 4.03 | % | 4.09 | % | 4.18 | % |
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
2016 | 2015 | 2015 | ||||||||||
Operating efficiency ratio non-GAAP reconciliation: | (dollars in thousands) | |||||||||||
Noninterest expense (numerator A) | $ | 65,074 | $ | 66,877 | $ | 66,734 | ||||||
Adjustments to arrive at operating noninterest expense: | ||||||||||||
Acquisition-related expenses | (2,436 | ) | (1,872 | ) | (2,974 | ) | ||||||
Net benefit (cost) of operation of OREO and OPPO | (102 | ) | 150 | 1,241 | ||||||||
FDIC clawback liability expense | (209 | ) | (812 | ) | (23 | ) | ||||||
Loss on asset disposals | (160 | ) | (52 | ) | (96 | ) | ||||||
State of Washington Business and Occupation ("B&O") taxes | (1,171 | ) | (1,294 | ) | (1,129 | ) | ||||||
Operating noninterest expense (numerator B) | $ | 60,996 | $ | 62,997 | $ | 63,753 | ||||||
Net interest income (tax equivalent) (1) | $ | 82,661 | $ | 84,330 | $ | 82,667 | ||||||
Noninterest income | 20,646 | 24,745 | 22,767 | |||||||||
Bank owned life insurance tax equivalent adjustment | 600 | 576 | 581 | |||||||||
Total revenue (tax equivalent) (denominator A) | $ | 103,907 | $ | 109,651 | $ | 106,015 | ||||||
Operating net interest income (tax equivalent) (1) | $ | 80,708 | $ | 81,151 | $ | 78,680 | ||||||
Adjustments to arrive at operating noninterest income (tax equivalent): | ||||||||||||
Investment securities gains, net | (373 | ) | (281 | ) | (721 | ) | ||||||
Gain on asset disposals | (54 | ) | (4 | ) | — | |||||||
Mortgage loan repurchase liability adjustment | — | (3,147 | ) | — | ||||||||
Change in FDIC loss-sharing asset | 1,103 | 1,031 | (150 | ) | ||||||||
Operating noninterest income (tax equivalent) | 21,922 | 22,920 | 22,477 | |||||||||
Total operating revenue (tax equivalent) (denominator B) | $ | 102,630 | $ | 104,071 | $ | 101,157 | ||||||
Efficiency ratio (tax equivalent) (numerator A/denominator A) | 62.63 | % | 60.99 | % | 62.95 | % | ||||||
Operating efficiency ratio (tax equivalent) (numerator B/denominator B) | 59.43 | % | 60.53 | % | 63.02 | % |