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 27, 2016 reporting the financial results of Columbia Banking System, Inc. for the quarter ended September 30, 2016. |
99.2 | Press Release dated October 27, 2016 announcing a regular quarterly dividend and a special cash dividend. |
COLUMBIA BANKING SYSTEM, INC. | |||||
Date: | October 27, 2016 | /s/ MELANIE J. DRESSEL | |||
Melanie J. Dressel | |||||
President and Chief Executive Officer |
99.1 | Press Release dated October 27, 2016 reporting the financial results of Columbia Banking System, Inc. for the quarter ended September 30, 2016. |
99.2 | Press Release dated October 27, 2016 announcing a regular quarterly dividend and a special cash dividend. |
• | Net income of $27.5 million with diluted earnings per common share of $0.47 |
• | Record new loan production for the quarter of $375.3 million, resulting in solid loan growth of $152.6 million, or 10% annualized |
• | Deposits increased $384.6 million during the quarter, resulting in growth of 10% from 3Q 2015 |
• | Nonperforming assets to period end assets ratio improves to 0.32%, lowest in 8 years |
• | Net interest margin expanded to 4.13% |
• | For the seventh time, Melanie Dressel honored as one of The 25 Most Powerful Women in Banking by American Banker Magazine |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Adjustments reflected in income | ||||||||||||||||||||
Amortization, net | $ | (315 | ) | $ | (883 | ) | $ | (1,416 | ) | (2,530 | ) | (5,086 | ) | |||||||
Loan impairment (recapture) | 266 | (20 | ) | (119 | ) | 393 | 1,413 | |||||||||||||
Sales of other real estate owned | (49 | ) | (24 | ) | (126 | ) | 71 | (753 | ) | |||||||||||
Valuation adjustments on other real estate owned | — | (40 | ) | 25 | (22 | ) | 1,148 | |||||||||||||
Other | (6 | ) | (23 | ) | 1 | (109 | ) | 299 | ||||||||||||
Change in FDIC loss-sharing asset | $ | (104 | ) | $ | (990 | ) | $ | (1,635 | ) | $ | (2,197 | ) | $ | (2,979 | ) |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
2016 | 2016 | 2016 | 2015 | 2015 | 2016 | 2015 | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||
Incremental accretion income due to: | ||||||||||||||||||||||||||||
FDIC purchased credit impaired loans | $ | 1,816 | $ | 1,300 | $ | 1,657 | $ | 2,200 | $ | 2,082 | $ | 4,773 | $ | 6,896 | ||||||||||||||
Other FDIC acquired loans (2) | — | — | — | 68 | 34 | — | 166 | |||||||||||||||||||||
Other acquired loans | 2,749 | 3,074 | 3,073 | 3,746 | 4,293 | 8,896 | 14,116 | |||||||||||||||||||||
Incremental accretion income | $ | 4,565 | $ | 4,374 | $ | 4,730 | $ | 6,014 | $ | 6,409 | $ | 13,669 | $ | 21,178 | ||||||||||||||
Net interest margin (tax equivalent) | 4.13 | % | 4.10 | % | 4.13 | % | 4.25 | % | 4.37 | % | 4.12 | % | 4.39 | % | ||||||||||||||
Operating net interest margin (tax equivalent) (1) | 4.03 | % | 4.00 | % | 4.03 | % | 4.09 | % | 4.18 | % | 4.02 | % | 4.18 | % |
September 30, 2016 | June 30, 2016 | December 31, 2015 | ||||||||||
(in thousands) | ||||||||||||
Nonaccrual loans: | ||||||||||||
Commercial business | $ | 9,502 | $ | 9,548 | $ | 9,437 | ||||||
Real estate: | ||||||||||||
One-to-four family residential | 579 | 957 | 820 | |||||||||
Commercial and multifamily residential | 7,052 | 7,834 | 9,513 | |||||||||
Total real estate | 7,631 | 8,791 | 10,333 | |||||||||
Real estate construction: | ||||||||||||
One-to-four family residential | 461 | 562 | 928 | |||||||||
Total real estate construction | 461 | 562 | 928 | |||||||||
Consumer | 3,772 | 4,014 | 766 | |||||||||
Total nonaccrual loans | 21,366 | 22,915 | 21,464 | |||||||||
Other real estate owned and other personal property owned | 8,994 | 10,613 | 13,738 | |||||||||
Total nonperforming assets | $ | 30,360 | $ | 33,528 | $ | 35,202 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, 2016 | June 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Beginning balance | $ | 69,304 | $ | 69,264 | $ | 69,257 | $ | 68,172 | $ | 69,569 | ||||||||||
Charge-offs: | ||||||||||||||||||||
Commercial business | (2,159 | ) | (2,941 | ) | (2,570 | ) | (8,873 | ) | (6,082 | ) | ||||||||||
One-to-four family residential real estate | — | (35 | ) | — | (35 | ) | (297 | ) | ||||||||||||
Commercial and multifamily residential real estate | — | (26 | ) | (198 | ) | (26 | ) | (241 | ) | |||||||||||
Consumer | (383 | ) | (334 | ) | (311 | ) | (983 | ) | (1,521 | ) | ||||||||||
Purchased credit impaired | (2,062 | ) | (2,898 | ) | (3,198 | ) | (7,826 | ) | (10,174 | ) | ||||||||||
Total charge-offs | (4,604 | ) | (6,234 | ) | (6,277 | ) | (17,743 | ) | (18,315 | ) | ||||||||||
Recoveries: | ||||||||||||||||||||
Commercial business | 854 | 753 | 623 | 2,269 | 1,450 | |||||||||||||||
One-to-four family residential real estate | 81 | 20 | 261 | 142 | 288 | |||||||||||||||
Commercial and multifamily residential real estate | 20 | 130 | 417 | 219 | 3,698 | |||||||||||||||
One-to-four family residential real estate construction | 21 | 5 | 105 | 280 | 141 | |||||||||||||||
Commercial and multifamily residential real estate construction | 107 | 1 | 2 | 109 | 7 | |||||||||||||||
Consumer | 399 | 201 | 297 | 765 | 707 | |||||||||||||||
Purchased credit impaired | 2,216 | 1,524 | 1,533 | 5,291 | 5,262 | |||||||||||||||
Total recoveries | 3,698 | 2,634 | 3,238 | 9,075 | 11,553 | |||||||||||||||
Net charge-offs | (906 | ) | (3,600 | ) | (3,039 | ) | (8,668 | ) | (6,762 | ) | ||||||||||
Provision for loan and lease losses | 1,866 | 3,640 | 2,831 | 10,760 | 6,242 | |||||||||||||||
Ending balance | $ | 70,264 | $ | 69,304 | $ | 69,049 | $ | 70,264 | $ | 69,049 |
FDIC Acquired Loan Accounting | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, 2016 | June 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Incremental accretion income on FDIC purchased credit impaired loans | $ | 1,816 | $ | 1,300 | $ | 2,082 | $ | 4,773 | $ | 6,896 | ||||||||||
Incremental accretion income on other FDIC acquired loans (1) | — | — | 34 | — | 166 | |||||||||||||||
Recapture (provision) for losses on FDIC purchased credit impaired loans | 433 | (91 | ) | 519 | (311 | ) | (2,566 | ) | ||||||||||||
Change in FDIC loss-sharing asset | (104 | ) | (990 | ) | (1,635 | ) | (2,197 | ) | (2,979 | ) | ||||||||||
FDIC clawback liability expense | (29 | ) | (70 | ) | (174 | ) | (308 | ) | (167 | ) | ||||||||||
Pre-tax earnings impact | $ | 2,116 | $ | 149 | $ | 826 | $ | 1,957 | $ | 1,350 |
FINANCIAL STATISTICS | ||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | Nine Months Ended | ||||||||||||||||||
Unaudited | September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
Earnings | (dollars in thousands except per share amounts) | |||||||||||||||||||
Net interest income | $ | 85,572 | $ | 82,140 | $ | 81,694 | $ | 247,882 | $ | 243,068 | ||||||||||
Provision for loan and lease losses | $ | 1,866 | $ | 3,640 | $ | 2,831 | $ | 10,760 | $ | 6,242 | ||||||||||
Noninterest income | $ | 23,166 | $ | 21,940 | $ | 22,499 | $ | 65,752 | $ | 66,728 | ||||||||||
Noninterest expense | $ | 67,264 | $ | 63,790 | $ | 64,067 | $ | 196,128 | $ | 199,272 | ||||||||||
Acquisition-related expense (included in noninterest expense) | $ | — | $ | — | $ | 428 | $ | 2,436 | $ | 9,045 | ||||||||||
Net income | $ | 27,484 | $ | 25,405 | $ | 25,780 | $ | 74,148 | $ | 72,087 | ||||||||||
Per Common Share | ||||||||||||||||||||
Earnings (basic) | $ | 0.47 | $ | 0.44 | $ | 0.45 | $ | 1.28 | $ | 1.25 | ||||||||||
Earnings (diluted) | $ | 0.47 | $ | 0.44 | $ | 0.45 | $ | 1.28 | $ | 1.25 | ||||||||||
Book value | $ | 21.96 | $ | 21.93 | $ | 21.69 | $ | 21.96 | $ | 21.69 | ||||||||||
Averages | ||||||||||||||||||||
Total assets | $ | 9,493,451 | $ | 9,230,791 | $ | 8,672,692 | $ | 9,225,466 | $ | 8,570,825 | ||||||||||
Interest-earning assets | $ | 8,544,876 | $ | 8,285,183 | $ | 7,711,531 | $ | 8,279,639 | $ | 7,600,954 | ||||||||||
Loans | $ | 6,179,163 | $ | 5,999,428 | $ | 5,712,614 | $ | 6,002,656 | $ | 5,557,771 | ||||||||||
Securities, including Federal Home Loan Bank stock | $ | 2,351,093 | $ | 2,262,012 | $ | 1,945,174 | $ | 2,253,877 | $ | 1,996,527 | ||||||||||
Deposits | $ | 7,918,532 | $ | 7,622,266 | $ | 7,233,863 | $ | 7,663,099 | $ | 7,047,818 | ||||||||||
Interest-bearing deposits | $ | 4,118,787 | $ | 4,026,384 | $ | 3,910,695 | $ | 4,043,105 | $ | 3,939,525 | ||||||||||
Interest-bearing liabilities | $ | 4,295,485 | $ | 4,264,792 | $ | 4,007,198 | $ | 4,228,531 | $ | 4,119,815 | ||||||||||
Noninterest-bearing deposits | $ | 3,799,745 | $ | 3,595,882 | $ | 3,323,168 | $ | 3,619,994 | $ | 3,108,293 | ||||||||||
Shareholders' equity | $ | 1,278,588 | $ | 1,267,670 | $ | 1,239,830 | $ | 1,268,261 | $ | 1,242,853 | ||||||||||
Financial Ratios | ||||||||||||||||||||
Return on average assets | 1.16 | % | 1.10 | % | 1.19 | % | 1.07 | % | 1.12 | % | ||||||||||
Return on average common equity | 8.60 | % | 8.02 | % | 8.32 | % | 7.80 | % | 7.74 | % | ||||||||||
Average equity to average assets | 13.47 | % | 13.73 | % | 14.30 | % | 13.75 | % | 14.50 | % | ||||||||||
Net interest margin (tax equivalent) | 4.13 | % | 4.10 | % | 4.37 | % | 4.12 | % | 4.39 | % | ||||||||||
Efficiency ratio (tax equivalent) (1) | 60.02 | % | 59.30 | % | 59.69 | % | 60.62 | % | 62.51 | % | ||||||||||
Operating efficiency ratio (tax equivalent) (2) | 60.47 | % | 58.81 | % | 58.85 | % | 59.58 | % | 60.86 | % | ||||||||||
September 30, | June 30, | December 31, | ||||||||||||||||||
Period end | 2016 | 2016 | 2015 | |||||||||||||||||
Total assets | $ | 9,586,754 | $ | 9,353,651 | 8,951,697 | |||||||||||||||
Loans, net of unearned income | $ | 6,259,757 | $ | 6,107,143 | 5,815,027 | |||||||||||||||
Allowance for loan and lease losses | $ | 70,264 | $ | 69,304 | 68,172 | |||||||||||||||
Securities, including Federal Home Loan Bank stock | $ | 2,372,724 | $ | 2,297,713 | 2,170,416 | |||||||||||||||
Deposits | $ | 8,057,816 | $ | 7,673,213 | 7,438,829 | |||||||||||||||
Core deposits | $ | 7,809,064 | $ | 7,447,963 | 7,238,713 | |||||||||||||||
Shareholders' equity | $ | 1,276,735 | $ | 1,274,479 | 1,242,128 | |||||||||||||||
Nonperforming assets | ||||||||||||||||||||
Nonaccrual loans | $ | 21,366 | $ | 22,915 | 21,464 | |||||||||||||||
Other real estate owned ("OREO") and other personal property owned ("OPPO") | 8,994 | 10,613 | 13,738 | |||||||||||||||||
Total nonperforming assets | $ | 30,360 | $ | 33,528 | $ | 35,202 | ||||||||||||||
Nonperforming loans to period-end loans | 0.34 | % | 0.38 | % | 0.37 | % | ||||||||||||||
Nonperforming assets to period-end assets | 0.32 | % | 0.36 | % | 0.39 | % | ||||||||||||||
Allowance for loan and lease losses to period-end loans | 1.12 | % | 1.13 | % | 1.17 | % | ||||||||||||||
Net loan charge-offs | $ | 906 | (3) | $ | 3,600 | (4) | $ | 3,226 | (5) | |||||||||||
(1) Noninterest expense divided by the sum of net interest income on a tax equivalent basis and noninterest income on a tax equivalent basis. | ||||||||||||||||||||
(2) The operating efficiency ratio (tax equivalent) is a non-GAAP financial measure. See section titled "Non-GAAP Financial Measures" on the last page of this earnings release for the reconciliation of the operating efficiency ratio (tax equivalent) to the efficiency ratio (tax equivalent). | ||||||||||||||||||||
(3) For the three months ended September 30, 2016. | ||||||||||||||||||||
(4) For the three months ended June 30, 2016. | ||||||||||||||||||||
(5) For the three months ended December 31, 2015. |
QUARTERLY FINANCIAL STATISTICS | ||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | |||||||||||||||||||
Unaudited | September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2016 | 2016 | 2016 | 2015 | 2015 | ||||||||||||||||
(dollars in thousands except per share) | ||||||||||||||||||||
Earnings | ||||||||||||||||||||
Net interest income | $ | 85,572 | $ | 82,140 | $ | 80,170 | $ | 81,819 | $ | 81,694 | ||||||||||
Provision for loan and lease losses | $ | 1,866 | $ | 3,640 | $ | 5,254 | $ | 2,349 | $ | 2,831 | ||||||||||
Noninterest income | $ | 23,166 | $ | 21,940 | $ | 20,646 | $ | 24,745 | $ | 22,499 | ||||||||||
Noninterest expense | $ | 67,264 | $ | 63,790 | $ | 65,074 | $ | 66,877 | $ | 64,067 | ||||||||||
Acquisition-related expense (included in noninterest expense) | $ | — | $ | — | $ | 2,436 | $ | 1,872 | $ | 428 | ||||||||||
Net income | $ | 27,484 | $ | 25,405 | $ | 21,259 | $ | 26,740 | $ | 25,780 | ||||||||||
Per Common Share | ||||||||||||||||||||
Earnings (basic) | $ | 0.47 | $ | 0.44 | $ | 0.37 | $ | 0.46 | $ | 0.45 | ||||||||||
Earnings (diluted) | $ | 0.47 | $ | 0.44 | $ | 0.37 | $ | 0.46 | $ | 0.45 | ||||||||||
Book value | $ | 21.96 | $ | 21.93 | $ | 21.70 | $ | 21.48 | $ | 21.69 | ||||||||||
Averages | ||||||||||||||||||||
Total assets | $ | 9,493,451 | $ | 9,230,791 | $ | 8,949,212 | $ | 8,905,743 | $ | 8,672,692 | ||||||||||
Interest-earning assets | $ | 8,544,876 | $ | 8,285,183 | $ | 8,005,945 | $ | 7,937,308 | $ | 7,711,531 | ||||||||||
Loans | $ | 6,179,163 | $ | 5,999,428 | $ | 5,827,440 | $ | 5,762,048 | $ | 5,712,614 | ||||||||||
Securities, including Federal Home Loan Bank stock | $ | 2,351,093 | $ | 2,262,012 | $ | 2,147,457 | $ | 2,136,703 | $ | 1,945,174 | ||||||||||
Deposits | $ | 7,918,532 | $ | 7,622,266 | $ | 7,445,693 | $ | 7,440,628 | $ | 7,233,863 | ||||||||||
Interest-bearing deposits | $ | 4,118,787 | $ | 4,026,384 | $ | 3,983,314 | $ | 3,933,001 | $ | 3,910,695 | ||||||||||
Interest-bearing liabilities | $ | 4,295,485 | $ | 4,264,792 | $ | 4,124,582 | $ | 4,031,214 | $ | 4,007,198 | ||||||||||
Noninterest-bearing deposits | $ | 3,799,745 | $ | 3,595,882 | $ | 3,462,379 | $ | 3,507,627 | $ | 3,323,168 | ||||||||||
Shareholders' equity | $ | 1,278,588 | $ | 1,267,670 | $ | 1,258,411 | $ | 1,259,117 | $ | 1,239,830 | ||||||||||
Financial Ratios | ||||||||||||||||||||
Return on average assets | 1.16 | % | 1.10 | % | 0.95 | % | 1.20 | % | 1.19 | % | ||||||||||
Return on average common equity | 8.60 | % | 8.02 | % | 6.76 | % | 8.50 | % | 8.32 | % | ||||||||||
Average equity to average assets | 13.47 | % | 13.73 | % | 14.06 | % | 14.14 | % | 14.30 | % | ||||||||||
Net interest margin (tax equivalent) | 4.13 | % | 4.10 | % | 4.13 | % | 4.25 | % | 4.37 | % | ||||||||||
Period end | ||||||||||||||||||||
Total assets | $ | 9,586,754 | $ | 9,353,651 | $ | 9,035,932 | $ | 8,951,697 | $ | 8,755,984 | ||||||||||
Loans, net of unearned income | $ | 6,259,757 | $ | 6,107,143 | $ | 5,877,283 | $ | 5,815,027 | $ | 5,746,511 | ||||||||||
Allowance for loan and lease losses | $ | 70,264 | $ | 69,304 | $ | 69,264 | $ | 68,172 | $ | 69,049 | ||||||||||
Securities, including Federal Home Loan Bank stock | $ | 2,372,724 | $ | 2,297,713 | $ | 2,196,407 | $ | 2,170,416 | $ | 2,037,666 | ||||||||||
Deposits | $ | 8,057,816 | $ | 7,673,213 | $ | 7,596,949 | $ | 7,438,829 | $ | 7,314,805 | ||||||||||
Core deposits | $ | 7,809,064 | $ | 7,447,963 | $ | 7,384,622 | $ | 7,238,713 | $ | 7,104,554 | ||||||||||
Shareholders' equity | $ | 1,276,735 | $ | 1,274,479 | $ | 1,260,788 | $ | 1,242,128 | $ | 1,254,136 | ||||||||||
Nonperforming, assets | ||||||||||||||||||||
Nonaccrual loans | $ | 21,366 | $ | 22,915 | $ | 36,891 | $ | 21,464 | $ | 19,080 | ||||||||||
OREO and OPPO | 8,994 | 10,613 | 12,427 | 13,738 | 19,475 | |||||||||||||||
Total nonperforming assets | $ | 30,360 | $ | 33,528 | $ | 49,318 | $ | 35,202 | $ | 38,555 | ||||||||||
Nonperforming loans to period-end loans | 0.34 | % | 0.38 | % | 0.63 | % | 0.37 | % | 0.33 | % | ||||||||||
Nonperforming assets to period-end assets | 0.32 | % | 0.36 | % | 0.55 | % | 0.39 | % | 0.44 | % | ||||||||||
Allowance for loan and lease losses to period-end loans | 1.12 | % | 1.13 | % | 1.18 | % | 1.17 | % | 1.20 | % | ||||||||||
Net loan charge-offs | $ | 906 | $ | 3,600 | $ | 4,162 | $ | 3,226 | $ | 3,039 |
LOAN PORTFOLIO COMPOSITION | ||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||
Unaudited | September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2016 | 2016 | 2016 | 2015 | 2015 | ||||||||||||||||
Loan Portfolio Composition - Dollars | (dollars in thousands) | |||||||||||||||||||
Commercial business | $ | 2,630,017 | $ | 2,518,682 | $ | 2,401,193 | $ | 2,362,575 | $ | 2,354,731 | ||||||||||
Real estate: | ||||||||||||||||||||
One-to-four family residential | 168,511 | 172,957 | 175,050 | 176,295 | 177,108 | |||||||||||||||
Commercial and multifamily residential | 2,686,783 | 2,651,476 | 2,520,352 | 2,491,736 | 2,449,847 | |||||||||||||||
Total real estate | 2,855,294 | 2,824,433 | 2,695,402 | 2,668,031 | 2,626,955 | |||||||||||||||
Real estate construction: | ||||||||||||||||||||
One-to-four family residential | 130,163 | 129,195 | 133,447 | 135,874 | 136,783 | |||||||||||||||
Commercial and multifamily residential | 202,014 | 185,315 | 183,548 | 167,413 | 134,097 | |||||||||||||||
Total real estate construction | 332,177 | 314,510 | 316,995 | 303,287 | 270,880 | |||||||||||||||
Consumer | 325,741 | 325,632 | 329,902 | 342,601 | 348,315 | |||||||||||||||
Purchased credit impaired | 152,764 | 161,107 | 173,201 | 180,906 | 191,066 | |||||||||||||||
Subtotal loans | 6,295,993 | 6,144,364 | 5,916,693 | 5,857,400 | 5,791,947 | |||||||||||||||
Less: Net unearned income | (36,236 | ) | (37,221 | ) | (39,410 | ) | (42,373 | ) | (45,436 | ) | ||||||||||
Loans, net of unearned income | 6,259,757 | 6,107,143 | 5,877,283 | 5,815,027 | 5,746,511 | |||||||||||||||
Less: Allowance for loan and lease losses | (70,264 | ) | (69,304 | ) | (69,264 | ) | (68,172 | ) | (69,049 | ) | ||||||||||
Total loans, net | 6,189,493 | 6,037,839 | 5,808,019 | 5,746,855 | 5,677,462 | |||||||||||||||
Loans held for sale | $ | 3,361 | $ | 7,649 | $ | 3,681 | $ | 4,509 | $ | 6,637 |
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
Loan Portfolio Composition - Percentages | 2016 | 2016 | 2016 | 2015 | 2015 | ||||||||||
Commercial business | 42.0 | % | 41.2 | % | 40.9 | % | 40.6 | % | 41.0 | % | |||||
Real estate: | |||||||||||||||
One-to-four family residential | 2.7 | % | 2.8 | % | 3.0 | % | 3.0 | % | 3.1 | % | |||||
Commercial and multifamily residential | 43.0 | % | 43.6 | % | 42.9 | % | 42.9 | % | 42.6 | % | |||||
Total real estate | 45.7 | % | 46.4 | % | 45.9 | % | 45.9 | % | 45.7 | % | |||||
Real estate construction: | |||||||||||||||
One-to-four family residential | 2.1 | % | 2.1 | % | 2.3 | % | 2.3 | % | 2.4 | % | |||||
Commercial and multifamily residential | 3.2 | % | 3.0 | % | 3.1 | % | 2.9 | % | 2.3 | % | |||||
Total real estate construction | 5.3 | % | 5.1 | % | 5.4 | % | 5.2 | % | 4.7 | % | |||||
Consumer | 5.2 | % | 5.3 | % | 5.6 | % | 5.9 | % | 6.1 | % | |||||
Purchased credit impaired | 2.4 | % | 2.6 | % | 2.9 | % | 3.1 | % | 3.3 | % | |||||
Subtotal loans | 100.6 | % | 100.6 | % | 100.7 | % | 100.7 | % | 100.8 | % | |||||
Less: Net unearned income | (0.6 | )% | (0.6 | )% | (0.7 | )% | (0.7 | )% | (0.8 | )% | |||||
Loans, net of unearned income | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
DEPOSIT COMPOSITION | ||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2016 | 2016 | 2016 | 2015 | 2015 | ||||||||||||||||
Deposit Composition - Dollars | (dollars in thousands) | |||||||||||||||||||
Core deposits: | ||||||||||||||||||||
Demand and other non-interest bearing | $ | 3,942,434 | $ | 3,652,951 | $ | 3,553,468 | $ | 3,507,358 | $ | 3,386,968 | ||||||||||
Interest bearing demand | 963,242 | 957,548 | 958,469 | 925,909 | 911,686 | |||||||||||||||
Money market | 1,873,376 | 1,818,337 | 1,838,364 | 1,788,552 | 1,776,087 | |||||||||||||||
Savings | 714,047 | 692,694 | 695,588 | 657,016 | 651,695 | |||||||||||||||
Certificates of deposit, less than $250,000 | 315,965 | 326,433 | 338,733 | 359,878 | 378,118 | |||||||||||||||
Total core deposits | 7,809,064 | 7,447,963 | 7,384,622 | 7,238,713 | 7,104,554 | |||||||||||||||
Certificates of deposit, $250,000 or more | 79,590 | 72,812 | 70,571 | 72,126 | 65,699 | |||||||||||||||
Certificates of deposit insured by CDARS® | 16,951 | 22,755 | 24,752 | 26,901 | 26,975 | |||||||||||||||
Brokered money market accounts | 152,151 | 129,590 | 116,878 | 100,854 | 117,196 | |||||||||||||||
Subtotal | 8,057,756 | 7,673,120 | 7,596,823 | 7,438,594 | 7,314,424 | |||||||||||||||
Premium resulting from acquisition date fair value adjustment | 60 | 93 | 126 | 235 | 381 | |||||||||||||||
Total deposits | $ | 8,057,816 | $ | 7,673,213 | $ | 7,596,949 | $ | 7,438,829 | $ | 7,314,805 |
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
Deposit Composition - Percentages | 2016 | 2016 | 2016 | 2015 | 2015 | ||||||||||
Core deposits: | |||||||||||||||
Demand and other non-interest bearing | 48.9 | % | 47.6 | % | 46.8 | % | 47.2 | % | 46.3 | % | |||||
Interest bearing demand | 12.0 | % | 12.5 | % | 12.6 | % | 12.4 | % | 12.5 | % | |||||
Money market | 23.2 | % | 23.7 | % | 24.2 | % | 24.0 | % | 24.3 | % | |||||
Savings | 8.9 | % | 9.0 | % | 9.2 | % | 8.8 | % | 8.9 | % | |||||
Certificates of deposit, less than $250,000 | 3.9 | % | 4.3 | % | 4.5 | % | 4.8 | % | 5.2 | % | |||||
Total core deposits | 96.9 | % | 97.1 | % | 97.3 | % | 97.2 | % | 97.2 | % | |||||
Certificates of deposit, $250,000 or more | 1.0 | % | 0.9 | % | 0.9 | % | 1.0 | % | 0.8 | % | |||||
Certificates of deposit insured by CDARS® | 0.2 | % | 0.3 | % | 0.3 | % | 0.4 | % | 0.4 | % | |||||
Brokered money market accounts | 1.9 | % | 1.7 | % | 1.5 | % | 1.4 | % | 1.6 | % | |||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | Nine Months Ended | ||||||||||||||||||
Unaudited | September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||
2016 | 2016 | 2015 (1) | 2016 | 2015 (1) | ||||||||||||||||
(in thousands except per share) | ||||||||||||||||||||
Interest Income | ||||||||||||||||||||
Loans | $ | 74,956 | $ | 71,651 | $ | 72,242 | $ | 216,923 | $ | 214,808 | ||||||||||
Taxable securities | 8,988 | 8,829 | 7,472 | 25,834 | 22,258 | |||||||||||||||
Tax-exempt securities | 2,799 | 2,795 | 2,920 | 8,397 | 8,972 | |||||||||||||||
Deposits in banks | 15 | 28 | 31 | 81 | 84 | |||||||||||||||
Total interest income | 86,758 | 83,303 | 82,665 | 251,235 | 246,122 | |||||||||||||||
Interest Expense | ||||||||||||||||||||
Deposits | 823 | 787 | 756 | 2,352 | 2,244 | |||||||||||||||
Federal Home Loan Bank advances | 229 | 241 | 78 | 594 | 391 | |||||||||||||||
Other borrowings | 134 | 135 | 137 | 407 | 419 | |||||||||||||||
Total interest expense | 1,186 | 1,163 | 971 | 3,353 | 3,054 | |||||||||||||||
Net Interest Income | 85,572 | 82,140 | 81,694 | 247,882 | 243,068 | |||||||||||||||
Provision for loan and lease losses | 1,866 | 3,640 | 2,831 | 10,760 | 6,242 | |||||||||||||||
Net interest income after provision for loan and lease losses | 83,706 | 78,500 | 78,863 | 237,122 | 236,826 | |||||||||||||||
Noninterest Income | ||||||||||||||||||||
Deposit account and treasury management fees (1) | 7,222 | 7,093 | 7,230 | 21,304 | 21,441 | |||||||||||||||
Card revenue (1) | 6,114 | 6,051 | 5,849 | 17,817 | 16,914 | |||||||||||||||
Financial services and trust revenue (1) | 2,746 | 2,780 | 3,316 | 8,347 | 9,657 | |||||||||||||||
Loan revenue (1) | 2,949 | 2,802 | 3,200 | 8,013 | 8,125 | |||||||||||||||
Merchant processing revenue | 2,352 | 2,272 | 2,422 | 6,726 | 6,802 | |||||||||||||||
Bank owned life insurance | 1,073 | 1,270 | 1,086 | 3,459 | 3,370 | |||||||||||||||
Investment securities gains, net | 572 | 229 | 236 | 1,174 | 1,300 | |||||||||||||||
Change in FDIC loss-sharing asset | (104 | ) | (990 | ) | (1,635 | ) | (2,197 | ) | (2,979 | ) | ||||||||||
Other (1) | 242 | 433 | 795 | 1,109 | 2,098 | |||||||||||||||
Total noninterest income | 23,166 | 21,940 | 22,499 | 65,752 | 66,728 | |||||||||||||||
Noninterest Expense | ||||||||||||||||||||
Compensation and employee benefits | 38,476 | 37,291 | 35,175 | 112,086 | 112,721 | |||||||||||||||
Occupancy | 8,219 | 7,652 | 8,101 | 26,044 | 24,781 | |||||||||||||||
Merchant processing expense | 1,161 | 1,118 | 1,090 | 3,312 | 3,146 | |||||||||||||||
Advertising and promotion | 1,993 | 1,043 | 1,354 | 3,878 | 3,480 | |||||||||||||||
Data processing | 4,275 | 3,929 | 3,796 | 12,350 | 13,022 | |||||||||||||||
Legal and professional fees | 2,264 | 1,777 | 2,173 | 5,366 | 7,527 | |||||||||||||||
Taxes, licenses and fees | 1,491 | 1,298 | 1,344 | 4,079 | 4,003 | |||||||||||||||
Regulatory premiums | 776 | 1,068 | 1,084 | 2,985 | 3,626 | |||||||||||||||
Net cost (benefit) of operation of other real estate owned | (249 | ) | 84 | 240 | (61 | ) | (1,569 | ) | ||||||||||||
Amortization of intangibles | 1,460 | 1,483 | 1,695 | 4,526 | 5,230 | |||||||||||||||
Other | 7,398 | 7,047 | 8,015 | 21,563 | 23,305 | |||||||||||||||
Total noninterest expense | 67,264 | 63,790 | 64,067 | 196,128 | 199,272 | |||||||||||||||
Income before income taxes | 39,608 | 36,650 | 37,295 | 106,746 | 104,282 | |||||||||||||||
Provision for income taxes | 12,124 | 11,245 | 11,515 | 32,598 | 32,195 | |||||||||||||||
Net Income | $ | 27,484 | $ | 25,405 | $ | 25,780 | $ | 74,148 | $ | 72,087 | ||||||||||
Earnings per common share | ||||||||||||||||||||
Basic | $ | 0.47 | $ | 0.44 | $ | 0.45 | $ | 1.28 | $ | 1.25 | ||||||||||
Diluted | $ | 0.47 | $ | 0.44 | $ | 0.45 | $ | 1.28 | $ | 1.25 | ||||||||||
Dividends paid per common share | $ | 0.39 | $ | 0.37 | $ | 0.34 | $ | 1.14 | $ | 0.98 | ||||||||||
Weighted average number of common shares outstanding | 57,215 | 57,185 | 57,051 | 57,173 | 57,007 | |||||||||||||||
Weighted average number of diluted common shares outstanding | 57,225 | 57,195 | 57,064 | 57,183 | 57,021 |
CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||
Unaudited | September 30, | June 30, | December 31, | |||||||||||||||||
2016 | 2016 | 2015 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 180,839 | $ | 167,172 | $ | 166,929 | ||||||||||||||
Interest-earning deposits with banks | 11,225 | 11,216 | 8,373 | |||||||||||||||||
Total cash and cash equivalents | 192,064 | 178,388 | 175,302 | |||||||||||||||||
Securities available for sale at fair value (amortized cost of $2,324,721, $2,237,264 and $2,157,610, respectively) | 2,360,084 | 2,279,552 | 2,157,694 | |||||||||||||||||
Federal Home Loan Bank stock at cost | 12,640 | 18,161 | 12,722 | |||||||||||||||||
Loans held for sale | 3,361 | 7,649 | 4,509 | |||||||||||||||||
Loans, net of unearned income of ($36,236), ($37,221) and ($42,373), respectively | 6,259,757 | 6,107,143 | 5,815,027 | |||||||||||||||||
Less: allowance for loan and lease losses | 70,264 | 69,304 | 68,172 | |||||||||||||||||
Loans, net | 6,189,493 | 6,037,839 | 5,746,855 | |||||||||||||||||
FDIC loss-sharing asset | 3,592 | 4,266 | 6,568 | |||||||||||||||||
Interest receivable | 31,606 | 29,738 | 27,877 | |||||||||||||||||
Premises and equipment, net | 152,908 | 156,446 | 164,239 | |||||||||||||||||
Other real estate owned | 8,994 | 10,613 | 13,738 | |||||||||||||||||
Goodwill | 382,762 | 382,762 | 382,762 | |||||||||||||||||
Other intangible assets, net | 19,051 | 20,511 | 23,577 | |||||||||||||||||
Other assets | 230,199 | 227,726 | 235,854 | |||||||||||||||||
Total assets | $ | 9,586,754 | $ | 9,353,651 | $ | 8,951,697 | ||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing | $ | 3,942,434 | $ | 3,652,951 | $ | 3,507,358 | ||||||||||||||
Interest-bearing | 4,115,382 | 4,020,262 | 3,931,471 | |||||||||||||||||
Total deposits | 8,057,816 | 7,673,213 | 7,438,829 | |||||||||||||||||
Federal Home Loan Bank advances | 66,502 | 204,512 | 68,531 | |||||||||||||||||
Securities sold under agreements to repurchase | 69,189 | 89,218 | 99,699 | |||||||||||||||||
Other liabilities | 116,512 | 112,229 | 102,510 | |||||||||||||||||
Total liabilities | 8,310,019 | 8,079,172 | 7,709,569 | |||||||||||||||||
Commitments and contingent liabilities | ||||||||||||||||||||
September 30, | June 30, | December 31, | ||||||||||||||||||
2016 | 2016 | 2015 | ||||||||||||||||||
Preferred stock (no par value) | (in thousands) | |||||||||||||||||||
Authorized shares | 2,000 | 2,000 | 2,000 | |||||||||||||||||
Issued and outstanding | 9 | 9 | 9 | 2,217 | 2,217 | 2,217 | ||||||||||||||
Common stock (no par value) | ||||||||||||||||||||
Authorized shares | 115,000 | 115,000 | 115,000 | |||||||||||||||||
Issued and outstanding | 58,043 | 58,025 | 57,724 | 994,098 | 992,343 | 990,281 | ||||||||||||||
Retained earnings | 263,915 | 259,108 | 255,925 | |||||||||||||||||
Accumulated other comprehensive income (loss) | 16,505 | 20,811 | (6,295 | ) | ||||||||||||||||
Total shareholders' equity | 1,276,735 | 1,274,479 | 1,242,128 | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 9,586,754 | $ | 9,353,651 | $ | 8,951,697 |
AVERAGE BALANCES AND RATES | ||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
September 30, 2016 | September 30, 2015 | |||||||||||||||||||||
Average Balances | Interest Earned / Paid | Average Rate | Average Balances | Interest Earned / Paid | Average Rate | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Loans, net (1)(2) | $ | 6,179,163 | $ | 76,195 | 4.93 | % | $ | 5,712,614 | $ | 73,231 | 5.13 | % | ||||||||||
Taxable securities | 1,870,466 | 8,988 | 1.92 | % | 1,498,211 | 7,472 | 1.99 | % | ||||||||||||||
Tax exempt securities (2) | 480,627 | 4,306 | 3.58 | % | 446,963 | 4,491 | 4.02 | % | ||||||||||||||
Interest-earning deposits with banks | 14,620 | 15 | 0.41 | % | 53,743 | 31 | 0.23 | % | ||||||||||||||
Total interest-earning assets | 8,544,876 | $ | 89,504 | 4.19 | % | 7,711,531 | $ | 85,225 | 4.42 | % | ||||||||||||
Other earning assets | 155,663 | 149,895 | ||||||||||||||||||||
Noninterest-earning assets | 792,912 | 811,266 | ||||||||||||||||||||
Total assets | $ | 9,493,451 | $ | 8,672,692 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||
Certificates of deposit | $ | 417,887 | $ | 124 | 0.12 | % | $ | 480,132 | $ | 213 | 0.18 | % | ||||||||||
Savings accounts | 705,923 | 18 | 0.01 | % | 643,672 | 17 | 0.01 | % | ||||||||||||||
Interest-bearing demand | 961,527 | 189 | 0.08 | % | 916,388 | 158 | 0.07 | % | ||||||||||||||
Money market accounts | 2,033,450 | 492 | 0.10 | % | 1,870,503 | 368 | 0.08 | % | ||||||||||||||
Total interest-bearing deposits | 4,118,787 | 823 | 0.08 | % | 3,910,695 | 756 | 0.08 | % | ||||||||||||||
Federal Home Loan Bank advances | 96,931 | 229 | 0.95 | % | 13,968 | 78 | 2.23 | % | ||||||||||||||
Other borrowings | 79,767 | 134 | 0.67 | % | 82,535 | 137 | 0.66 | % | ||||||||||||||
Total interest-bearing liabilities | 4,295,485 | $ | 1,186 | 0.11 | % | 4,007,198 | $ | 971 | 0.10 | % | ||||||||||||
Noninterest-bearing deposits | 3,799,745 | 3,323,168 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 119,633 | 102,496 | ||||||||||||||||||||
Shareholders’ equity | 1,278,588 | 1,239,830 | ||||||||||||||||||||
Total liabilities & shareholders’ equity | $ | 9,493,451 | $ | 8,672,692 | ||||||||||||||||||
Net interest income (tax equivalent) | $ | 88,318 | $ | 84,254 | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.13 | % | 4.37 | % |
(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 acquired loans were included in the interest income calculations. The amortization of net deferred loan fees was $1.4 million and $1.2 million for the three month periods ended September 30, 2016 and September 30, 2015, respectively. The incremental accretion on acquired loans was $4.6 million and $6.4 million for the three months ended September 30, 2016 and 2015, respectively. |
(2) | Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was $1.2 million and $989 thousand for the three months ended September 30, 2016 and 2015, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.5 million for both three months ended September 30, 2016 and 2015. |
AVERAGE BALANCES AND RATES | ||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
September 30, 2016 | June 30, 2016 | |||||||||||||||||||||
Average Balances | Interest Earned / Paid | Average Rate | Average Balances | Interest Earned / Paid | Average Rate | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Loans, net (1)(2) | $ | 6,179,163 | $ | 76,195 | 4.93 | % | $ | 5,999,428 | $ | 72,952 | 4.86 | % | ||||||||||
Taxable securities | 1,870,466 | 8,988 | 1.92 | % | 1,801,195 | 8,829 | 1.96 | % | ||||||||||||||
Tax exempt securities (2) | 480,627 | 4,306 | 3.58 | % | 460,817 | 4,300 | 3.73 | % | ||||||||||||||
Interest-earning deposits with banks | 14,620 | 15 | 0.41 | % | 23,743 | 28 | 0.47 | % | ||||||||||||||
Total interest-earning assets | 8,544,876 | $ | 89,504 | 4.19 | % | 8,285,183 | $ | 86,109 | 4.16 | % | ||||||||||||
Other earning assets | 155,663 | 154,843 | ||||||||||||||||||||
Noninterest-earning assets | 792,912 | 790,765 | ||||||||||||||||||||
Total assets | $ | 9,493,451 | $ | 9,230,791 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||
Certificates of deposit | $ | 417,887 | $ | 124 | 0.12 | % | $ | 428,279 | $ | 140 | 0.13 | % | ||||||||||
Savings accounts | 705,923 | 18 | 0.01 | % | 692,179 | 18 | 0.01 | % | ||||||||||||||
Interest-bearing demand | 961,527 | 189 | 0.08 | % | 949,669 | 183 | 0.08 | % | ||||||||||||||
Money market accounts | 2,033,450 | 492 | 0.10 | % | 1,956,257 | 446 | 0.09 | % | ||||||||||||||
Total interest-bearing deposits | 4,118,787 | 823 | 0.08 | % | 4,026,384 | 787 | 0.08 | % | ||||||||||||||
Federal Home Loan Bank advances | 96,931 | 229 | 0.95 | % | 161,637 | 241 | 0.60 | % | ||||||||||||||
Other borrowings | 79,767 | 134 | 0.67 | % | 76,771 | 135 | 0.70 | % | ||||||||||||||
Total interest-bearing liabilities | 4,295,485 | $ | 1,186 | 0.11 | % | 4,264,792 | $ | 1,163 | 0.11 | % | ||||||||||||
Noninterest-bearing deposits | 3,799,745 | 3,595,882 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 119,633 | 102,447 | ||||||||||||||||||||
Shareholders’ equity | 1,278,588 | 1,267,670 | ||||||||||||||||||||
Total liabilities & shareholders’ equity | $ | 9,493,451 | $ | 9,230,791 | ||||||||||||||||||
Net interest income (tax equivalent) | $ | 88,318 | $ | 84,946 | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.13 | % | 4.10 | % |
(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 $1.4 million and $1.2 million for the three month periods ended September 30, 2016 and June 30, 2016. The incremental accretion on acquired loans was $4.6 million and $4.4 million for the three months ended September 30, 2016 and June 30, 2016, respectively. |
(2) | Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was $1.2 million and $1.3 million for the three months ended September 30, 2016 and June 30, 2016, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.5 million and $1.6 million for the three month periods ended September 30, 2016 and June 30, 2016, respectively. |
AVERAGE BALANCES AND RATES | ||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||
Average Balances | Interest Earned / Paid | Average Rate | Average Balances | Interest Earned / Paid | Average Rate | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Loans, net (1)(2) | $ | 6,002,656 | $ | 220,445 | 4.90 | % | $ | 5,557,771 | $ | 217,128 | 5.21 | % | ||||||||||
Taxable securities | 1,787,288 | 25,834 | 1.93 | % | 1,541,018 | 22,258 | 1.93 | % | ||||||||||||||
Tax exempt securities (2) | 466,589 | 12,918 | 3.69 | % | 455,509 | 13,802 | 4.04 | % | ||||||||||||||
Interest-earning deposits with banks | 23,106 | 81 | 0.47 | % | 46,656 | 84 | 0.24 | % | ||||||||||||||
Total interest-earning assets | 8,279,639 | $ | 259,278 | 4.18 | % | 7,600,954 | $ | 253,272 | 4.44 | % | ||||||||||||
Other earning assets | 154,950 | 148,189 | ||||||||||||||||||||
Noninterest-earning assets | 790,877 | 821,682 | ||||||||||||||||||||
Total assets | $ | 9,225,466 | $ | 8,570,825 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||
Certificates of deposit | $ | 431,643 | $ | 408 | 0.13 | % | $ | 490,720 | $ | 689 | 0.19 | % | ||||||||||
Savings accounts | 691,379 | 53 | 0.01 | % | 631,979 | 53 | 0.01 | % | ||||||||||||||
Interest-bearing demand | 946,437 | 541 | 0.08 | % | 1,003,544 | 451 | 0.06 | % | ||||||||||||||
Money market accounts | 1,973,646 | 1,350 | 0.09 | % | 1,813,282 | 1,051 | 0.08 | % | ||||||||||||||
Total interest-bearing deposits | 4,043,105 | 2,352 | 0.08 | % | 3,939,525 | 2,244 | 0.08 | % | ||||||||||||||
Federal Home Loan Bank advances | 103,023 | 594 | 0.77 | % | 88,121 | 391 | 0.59 | % | ||||||||||||||
Other borrowings | 82,403 | 407 | 0.66 | % | 92,169 | 419 | 0.61 | % | ||||||||||||||
Total interest-bearing liabilities | 4,228,531 | $ | 3,353 | 0.11 | % | 4,119,815 | $ | 3,054 | 0.10 | % | ||||||||||||
Noninterest-bearing deposits | 3,619,994 | 3,108,293 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 108,680 | 99,864 | ||||||||||||||||||||
Shareholders’ equity | 1,268,261 | 1,242,853 | ||||||||||||||||||||
Total liabilities & shareholders’ equity | $ | 9,225,466 | $ | 8,570,825 | ||||||||||||||||||
Net interest income (tax equivalent) | $ | 255,925 | $ | 250,218 | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.12 | % | 4.39 | % |
(1) | Nonaccrual loans have been included in the table as loans carrying a zero yield. Amortized net deferred loan fees and net unearned discounts on acquired loans were included in the interest income calculations. The amortization of net deferred loan fees was $3.6 million and $3.8 million for the nine months ended September 30, 2016 and 2015, respectively. The incremental accretion on acquired loans was $13.7 million and $21.2 million for the nine months ended September 30, 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 $3.5 million and $2.3 million for the nine months ended September 30, 2016 and 2015, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $4.5 million and $4.8 million for the nine months ended September 30, 2016 and 2015, respectively. |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
Operating net interest margin non-GAAP reconciliation: | (dollars in thousands) | |||||||||||||||||||
Net interest income (tax equivalent) (1) | $ | 88,318 | $ | 84,946 | $ | 84,254 | $ | 255,925 | $ | 250,218 | ||||||||||
Adjustments to arrive at operating net interest income (tax equivalent): | ||||||||||||||||||||
Incremental accretion income on FDIC purchased credit impaired loans | (1,816 | ) | (1,300 | ) | (2,082 | ) | (4,773 | ) | (6,896 | ) | ||||||||||
Incremental accretion income on other FDIC acquired loans (2) | — | — | (34 | ) | — | (166 | ) | |||||||||||||
Incremental accretion income on other acquired loans | (2,749 | ) | (3,074 | ) | (4,293 | ) | (8,896 | ) | (14,116 | ) | ||||||||||
Premium amortization on acquired securities | 1,991 | 2,075 | 2,396 | 6,390 | 7,964 | |||||||||||||||
Interest reversals on nonaccrual loans | 266 | 107 | 325 | 826 | 1,131 | |||||||||||||||
Operating net interest income (tax equivalent) (1) | $ | 86,010 | $ | 82,754 | $ | 80,566 | $ | 249,472 | $ | 238,135 | ||||||||||
Average interest earning assets | $ | 8,544,876 | $ | 8,285,183 | $ | 7,711,531 | $ | 8,279,639 | $ | 7,600,954 | ||||||||||
Net interest margin (tax equivalent) (1) | 4.13 | % | 4.10 | % | 4.37 | % | 4.12 | % | 4.39 | % | ||||||||||
Operating net interest margin (tax equivalent) (1) | 4.03 | % | 4.00 | % | 4.18 | % | 4.02 | % | 4.18 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
Operating efficiency ratio non-GAAP reconciliation: | (dollars in thousands) | |||||||||||||||||||
Noninterest expense (numerator A) | $ | 67,264 | $ | 63,790 | $ | 64,067 | $ | 196,128 | $ | 199,272 | ||||||||||
Adjustments to arrive at operating noninterest expense: | ||||||||||||||||||||
Acquisition-related expenses | — | — | (428 | ) | (2,436 | ) | (9,045 | ) | ||||||||||||
Net benefit (cost) of operation of OREO and OPPO | 254 | (84 | ) | (228 | ) | 68 | 1,574 | |||||||||||||
FDIC clawback liability expense | (29 | ) | (70 | ) | (174 | ) | (308 | ) | (167 | ) | ||||||||||
Loss on asset disposals | (31 | ) | (7 | ) | (274 | ) | (198 | ) | (381 | ) | ||||||||||
State of Washington Business and Occupation ("B&O") taxes | (1,382 | ) | (1,204 | ) | (1,212 | ) | (3,757 | ) | (3,668 | ) | ||||||||||
Operating noninterest expense (numerator B) | $ | 66,076 | $ | 62,425 | $ | 61,751 | $ | 189,497 | $ | 187,585 | ||||||||||
Net interest income (tax equivalent) (1) | $ | 88,318 | $ | 84,946 | $ | 84,254 | $ | 255,925 | $ | 250,218 | ||||||||||
Noninterest income | 23,166 | 21,940 | 22,499 | 65,752 | 66,728 | |||||||||||||||
Bank owned life insurance tax equivalent adjustment | 577 | 685 | 585 | 1,862 | 1,815 | |||||||||||||||
Total revenue (tax equivalent) (denominator A) | $ | 112,061 | $ | 107,571 | $ | 107,338 | $ | 323,539 | $ | 318,761 | ||||||||||
Operating net interest income (tax equivalent) (1) | $ | 86,010 | $ | 82,754 | $ | 80,566 | $ | 249,472 | $ | 238,135 | ||||||||||
Adjustments to arrive at operating noninterest income (tax equivalent): | ||||||||||||||||||||
Investment securities gains, net | (572 | ) | (229 | ) | (236 | ) | (1,174 | ) | (1,300 | ) | ||||||||||
Gain on asset disposals | (16 | ) | (2 | ) | (120 | ) | (72 | ) | (125 | ) | ||||||||||
Change in FDIC loss-sharing asset | 104 | 990 | 1,635 | 2,197 | 2,979 | |||||||||||||||
Operating noninterest income (tax equivalent) | 23,259 | 23,384 | 24,363 | 68,565 | 70,097 | |||||||||||||||
Total operating revenue (tax equivalent) (denominator B) | $ | 109,269 | $ | 106,138 | $ | 104,929 | $ | 318,037 | $ | 308,232 | ||||||||||
Efficiency ratio (tax equivalent) (numerator A/denominator A) | 60.02 | % | 59.30 | % | 59.69 | % | 60.62 | % | 62.51 | % | ||||||||||
Operating efficiency ratio (tax equivalent) (numerator B/denominator B) | 60.47 | % | 58.81 | % | 58.85 | % | 59.58 | % | 60.86 | % |
&M%K_ .:9Z=KO4I=D-_254V?^"_32;]8NANOIQVYM+K,D6.J <((JV^K[
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M;W1O D!\@'Z @,"# (4 AT")@(O
M C@"00)+ E0"70)G G$">@*$ HX"F *B JP"M@+! LL"U0+@ NL"]0, PL#
M%@,A RT#. -# T\#6@-F W(#?@.* Y8#H@.N [H#QP/3 ^ #[ /Y! 8$$P0@
M!"T$.P1(!%4$8P1Q!'X$C 2:!*@$M@3$!-,$X03P!/X%#044%]@8&!A8&)P8W!D@&609J!GL&C :=!J\&P ;1
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M&G<:GAK%&NP;%!L[&V,;BANR&]H< APJ'%(<>QRC',P<]1T>'4<=:AZ4'KX>Z1\3'SX?:1^4'[\?ZB 5($$@;""8(,0@\"$<(4@A=2&A
M( &YXS'DJ>8EYYWI&>J5[!'MC>\)\(7R!?.%]
M07VA?@%^8G["?R-_A'_E@$> J($*@6N!S8(P@I*"](-7@[J$'82 A..%1X6K
MA@Z& -_P7YC8D%__GZ21&&
M?W\%'V2!_H <_+A^=(MYY ]^5XFRRMM^3X@4L3Y^7(:TER]^@H6;?)-^OH2Z
M8.E_#X/T0P!_EH-X':* Y(/?^J-])9<(XDA]')0QR5A])9%ZK\Y]2X\>E=9]
MAHT->TY]UXL\7[1^-XF)0 O=9Y9+XVK5IS3''BHX)- !H>E
MZX1J "#'( >MS$G:\^;3Z^X:N37PFY.*A;4"JSS*8S0(6NUZ3.+[FJL*!%
M'+.H,9-G!LBE1H26 "#'( YA]V<',8T!MW2W/QN8!X'W3,HBIXZG6OBB1Y
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MVLMN&\[&Q41O*5_$'+*K/1_'7//EQ]_-731@'5_5G7=:.Y_B';V
M4#%_SW@(-)J 67D'#UB!\GD\U(Q]47Q_P+)] !8-^)H.ZMUR15V^QIC6/
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M,)6= =6#)X$]L)**G8()LLC?@WNR;
M7_T?^;MK=^C_ .$24ZG3OK ;\#J3'YN*WJ>)9G>FV]P8QE>/==C8]V36QPM;
MBU[*?M%JUL?J6';S?_#'_HJE6U\JI)*?JI)?*J22GZJ27RJD
MDI__V0 X0DE-!"$ %4 ! 0 \ 00!D &\ 8@!E " 4 !H &\
M= !O ', : !O ' 3 $$ 9 !O &( 90 @ % : !O '0 ;P!S &@ ;P!P
M " 0P!3 #8 ! #A"24T$!@ !P ( 0$ _^$S0&AT=' Z+R]N
M!S/X_.#65SXXD.T!5HN:_4N]UJ
M9ZN*INMK^:
#J9-&46V"\I&*/U6"99!"
M*V^!^Y =$>6"'HP9 " ( CR"%O*&^@0F$V9^6<>F#X9T;8