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, 2017 reporting the financial results of Columbia Banking System, Inc. for the quarter ended March 31, 2017 and quarterly cash dividend. |
COLUMBIA BANKING SYSTEM, INC. | |||||
Date: | April 27, 2017 | /s/ HADLEY S. ROBBINS | |||
Hadley S. Robbins | |||||
Executive Vice President and Interim Chief Executive Officer |
99.1 | Press Release dated April 27, 2017 reporting the financial results of Columbia Banking System, Inc. for the quarter ended March 31, 2017 and quarterly cash dividend. |
• | Record first quarter net income of $29.2 million; diluted earnings per share of $0.50 |
• | New loan production for the quarter of $251.7 million |
• | Net interest margin expanded to 4.20% |
• | Nonperforming assets to period end assets ratio remains near record lows at 0.32% |
• | Outstanding preferred shares converted to common shares during the quarter |
Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Incremental accretion income due to: | ||||||||||||||||||||
FDIC purchased credit impaired loans | $ | 2,117 | $ | 1,199 | $ | 1,816 | $ | 1,300 | $ | 1,657 | ||||||||||
Other acquired loans | 1,948 | 3,087 | 2,749 | 3,074 | 3,073 | |||||||||||||||
Incremental accretion income | $ | 4,065 | $ | 4,286 | $ | 4,565 | $ | 4,374 | $ | 4,730 | ||||||||||
Net interest margin (tax equivalent) | 4.20 | % | 4.11 | % | 4.13 | % | 4.10 | % | 4.13 | % | ||||||||||
Operating net interest margin (tax equivalent) (1) | 4.09 | % | 3.99 | % | 4.03 | % | 4.00 | % | 4.03 | % |
March 31, 2017 | December 31, 2016 | |||||||
(in thousands) | ||||||||
Nonaccrual loans: | ||||||||
Commercial business | $ | 10,848 | $ | 11,555 | ||||
Real estate: | ||||||||
One-to-four family residential | 450 | 568 | ||||||
Commercial and multifamily residential | 10,237 | 11,187 | ||||||
Total real estate | 10,687 | 11,755 | ||||||
Real estate construction: | ||||||||
One-to-four family residential | 213 | 563 | ||||||
Total real estate construction | 213 | 563 | ||||||
Consumer | 3,799 | 3,883 | ||||||
Total nonaccrual loans | 25,547 | 27,756 | ||||||
Other real estate owned and other personal property owned | 4,519 | 5,998 | ||||||
Total nonperforming assets | $ | 30,066 | $ | 33,754 |
Three Months Ended | ||||||||||||
March 31, 2017 | December 31, 2016 | March 31, 2016 | ||||||||||
(in thousands) | ||||||||||||
Beginning balance | $ | 70,043 | $ | 70,264 | $ | 68,172 | ||||||
Charge-offs: | ||||||||||||
Commercial business | (1,127 | ) | (1,195 | ) | (3,773 | ) | ||||||
One-to-four family residential real estate | (307 | ) | — | — | ||||||||
Commercial and multifamily residential real estate | — | (63 | ) | — | ||||||||
One-to-four family residential real estate construction | (14 | ) | (88 | ) | — | |||||||
Consumer | (428 | ) | (255 | ) | (266 | ) | ||||||
Purchased credit impaired | (1,939 | ) | (2,118 | ) | (2,866 | ) | ||||||
Total charge-offs | (3,815 | ) | (3,719 | ) | (6,905 | ) | ||||||
Recoveries: | ||||||||||||
Commercial business | 365 | 377 | 662 | |||||||||
One-to-four family residential real estate | 117 | 29 | 41 | |||||||||
Commercial and multifamily residential real estate | 78 | 1,182 | 69 | |||||||||
One-to-four family residential real estate construction | 29 | 11 | 254 | |||||||||
Commercial and multifamily residential real estate construction | — | — | 1 | |||||||||
Consumer | 285 | 168 | 165 | |||||||||
Purchased credit impaired | 1,144 | 1,713 | 1,551 | |||||||||
Total recoveries | 2,018 | 3,480 | 2,743 | |||||||||
Net charge-offs | (1,797 | ) | (239 | ) | (4,162 | ) | ||||||
Provision for loan and lease losses | 2,775 | 18 | 5,254 | |||||||||
Ending balance | $ | 71,021 | $ | 70,043 | $ | 69,264 |
Contacts: | Hadley S. Robbins, |
Interim Chief Executive Officer | |
Clint E. Stein, | |
Executive Vice President and | |
Chief Financial Officer | |
Investor Relations | |
(253) 305-1921 |
FINANCIAL STATISTICS | ||||||||||||
Columbia Banking System, Inc. | Three Months Ended | |||||||||||
Unaudited | March 31, | December 31, | March 31, | |||||||||
2017 | 2016 | 2016 | ||||||||||
Earnings | (dollars in thousands except per share amounts) | |||||||||||
Net interest income | $ | 86,675 | $ | 85,737 | $ | 80,170 | ||||||
Provision for loan and lease losses | $ | 2,775 | $ | 18 | $ | 5,254 | ||||||
Noninterest income | $ | 24,859 | $ | 22,330 | $ | 20,646 | ||||||
Noninterest expense | $ | 68,986 | $ | 65,014 | $ | 65,074 | ||||||
Acquisition-related expense (included in noninterest expense) | $ | 1,364 | $ | 291 | $ | 2,436 | ||||||
Net income | $ | 29,199 | $ | 30,718 | $ | 21,259 | ||||||
Per Common Share | ||||||||||||
Earnings (basic) | $ | 0.50 | $ | 0.53 | $ | 0.37 | ||||||
Earnings (diluted) | $ | 0.50 | $ | 0.53 | $ | 0.37 | ||||||
Book value | $ | 21.86 | $ | 21.52 | $ | 21.70 | ||||||
Averages | ||||||||||||
Total assets | $ | 9,473,698 | $ | 9,568,214 | $ | 8,949,212 | ||||||
Interest-earning assets | $ | 8,520,291 | $ | 8,612,498 | $ | 8,005,945 | ||||||
Loans | $ | 6,198,215 | $ | 6,200,506 | $ | 5,827,440 | ||||||
Securities, including Federal Home Loan Bank stock | $ | 2,310,490 | $ | 2,314,521 | $ | 2,147,457 | ||||||
Deposits | $ | 7,954,653 | $ | 8,105,522 | $ | 7,445,693 | ||||||
Interest-bearing deposits | $ | 4,118,604 | $ | 4,151,695 | $ | 3,983,314 | ||||||
Interest-bearing liabilities | $ | 4,263,660 | $ | 4,222,820 | $ | 4,124,582 | ||||||
Noninterest-bearing deposits | $ | 3,836,049 | $ | 3,953,827 | $ | 3,462,379 | ||||||
Shareholders' equity | $ | 1,261,652 | $ | 1,274,388 | $ | 1,258,411 | ||||||
Financial Ratios | ||||||||||||
Return on average assets | 1.23 | % | 1.28 | % | 0.95 | % | ||||||
Return on average common equity | 9.26 | % | 9.65 | % | 6.76 | % | ||||||
Average equity to average assets | 13.32 | % | 13.32 | % | 14.06 | % | ||||||
Net interest margin (tax equivalent) | 4.20 | % | 4.11 | % | 4.13 | % | ||||||
Efficiency ratio (tax equivalent) (1) | 59.95 | % | 58.35 | % | 62.63 | % | ||||||
Operating efficiency ratio (tax equivalent) (2) | 59.07 | % | 58.10 | % | 59.43 | % | ||||||
March 31, | December 31, | |||||||||||
Period end | 2017 | 2016 | ||||||||||
Total assets | $ | 9,527,272 | $ | 9,509,607 | ||||||||
Loans, net of unearned income | $ | 6,228,136 | $ | 6,213,423 | ||||||||
Allowance for loan and lease losses | $ | 71,021 | $ | 70,043 | ||||||||
Securities, including Federal Home Loan Bank stock | $ | 2,341,959 | $ | 2,288,817 | ||||||||
Deposits | $ | 8,088,827 | $ | 8,059,415 | ||||||||
Core deposits | $ | 7,794,590 | $ | 7,749,568 | ||||||||
Shareholders' equity | $ | 1,275,343 | $ | 1,251,012 | ||||||||
Nonperforming assets | ||||||||||||
Nonaccrual loans | $ | 25,547 | $ | 27,756 | ||||||||
Other real estate owned ("OREO") and other personal property owned ("OPPO") | 4,519 | 5,998 | ||||||||||
Total nonperforming assets | $ | 30,066 | $ | 33,754 | ||||||||
Nonperforming loans to period-end loans | 0.41 | % | 0.45 | % | ||||||||
Nonperforming assets to period-end assets | 0.32 | % | 0.35 | % | ||||||||
Allowance for loan and lease losses to period-end loans | 1.14 | % | 1.13 | % | ||||||||
Net loan charge-offs | $ | 1,797 | (3) | $ | 239 | (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 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 March 31, 2017. | ||||||||||||
(4) For the three months ended December 31, 2016. |
QUARTERLY FINANCIAL STATISTICS | ||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | |||||||||||||||||||
Unaudited | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | ||||||||||||||||
(dollars in thousands except per share) | ||||||||||||||||||||
Earnings | ||||||||||||||||||||
Net interest income | $ | 86,675 | $ | 85,737 | $ | 85,572 | $ | 82,140 | $ | 80,170 | ||||||||||
Provision for loan and lease losses | $ | 2,775 | $ | 18 | $ | 1,866 | $ | 3,640 | $ | 5,254 | ||||||||||
Noninterest income | $ | 24,859 | $ | 22,330 | $ | 23,166 | $ | 21,940 | $ | 20,646 | ||||||||||
Noninterest expense | $ | 68,986 | $ | 65,014 | $ | 67,264 | $ | 63,790 | $ | 65,074 | ||||||||||
Acquisition-related expense (included in noninterest expense) | $ | 1,364 | $ | 291 | $ | — | $ | — | $ | 2,436 | ||||||||||
Net income | $ | 29,199 | $ | 30,718 | $ | 27,484 | $ | 25,405 | $ | 21,259 | ||||||||||
Per Common Share | ||||||||||||||||||||
Earnings (basic) | $ | 0.50 | $ | 0.53 | $ | 0.47 | $ | 0.44 | $ | 0.37 | ||||||||||
Earnings (diluted) | $ | 0.50 | $ | 0.53 | $ | 0.47 | $ | 0.44 | $ | 0.37 | ||||||||||
Book value | $ | 21.86 | $ | 21.52 | $ | 21.96 | $ | 21.93 | $ | 21.70 | ||||||||||
Averages | ||||||||||||||||||||
Total assets | $ | 9,473,698 | $ | 9,568,214 | $ | 9,493,451 | $ | 9,230,791 | $ | 8,949,212 | ||||||||||
Interest-earning assets | $ | 8,520,291 | $ | 8,612,498 | $ | 8,544,876 | $ | 8,285,183 | $ | 8,005,945 | ||||||||||
Loans | $ | 6,198,215 | $ | 6,200,506 | $ | 6,179,163 | $ | 5,999,428 | $ | 5,827,440 | ||||||||||
Securities, including Federal Home Loan Bank stock | $ | 2,310,490 | $ | 2,314,521 | $ | 2,351,093 | $ | 2,262,012 | $ | 2,147,457 | ||||||||||
Deposits | $ | 7,954,653 | $ | 8,105,522 | $ | 7,918,532 | $ | 7,622,266 | $ | 7,445,693 | ||||||||||
Interest-bearing deposits | $ | 4,118,604 | $ | 4,151,695 | $ | 4,118,787 | $ | 4,026,384 | $ | 3,983,314 | ||||||||||
Interest-bearing liabilities | $ | 4,263,660 | $ | 4,222,820 | $ | 4,295,485 | $ | 4,264,792 | $ | 4,124,582 | ||||||||||
Noninterest-bearing deposits | $ | 3,836,049 | $ | 3,953,827 | $ | 3,799,745 | $ | 3,595,882 | $ | 3,462,379 | ||||||||||
Shareholders' equity | $ | 1,261,652 | $ | 1,274,388 | $ | 1,278,588 | $ | 1,267,670 | $ | 1,258,411 | ||||||||||
Financial Ratios | ||||||||||||||||||||
Return on average assets | 1.23 | % | 1.28 | % | 1.16 | % | 1.10 | % | 0.95 | % | ||||||||||
Return on average common equity | 9.26 | % | 9.65 | % | 8.60 | % | 8.02 | % | 6.76 | % | ||||||||||
Average equity to average assets | 13.32 | % | 13.32 | % | 13.47 | % | 13.73 | % | 14.06 | % | ||||||||||
Net interest margin (tax equivalent) | 4.20 | % | 4.11 | % | 4.13 | % | 4.10 | % | 4.13 | % | ||||||||||
Period end | ||||||||||||||||||||
Total assets | $ | 9,527,272 | $ | 9,509,607 | $ | 9,586,754 | $ | 9,353,651 | $ | 9,035,932 | ||||||||||
Loans, net of unearned income | $ | 6,228,136 | $ | 6,213,423 | $ | 6,259,757 | $ | 6,107,143 | $ | 5,877,283 | ||||||||||
Allowance for loan and lease losses | $ | 71,021 | $ | 70,043 | $ | 70,264 | $ | 69,304 | $ | 69,264 | ||||||||||
Securities, including Federal Home Loan Bank stock | $ | 2,341,959 | $ | 2,288,817 | $ | 2,372,724 | $ | 2,297,713 | $ | 2,196,407 | ||||||||||
Deposits | $ | 8,088,827 | $ | 8,059,415 | $ | 8,057,816 | $ | 7,673,213 | $ | 7,596,949 | ||||||||||
Core deposits | $ | 7,794,590 | $ | 7,749,568 | $ | 7,809,064 | $ | 7,447,963 | $ | 7,384,622 | ||||||||||
Shareholders' equity | $ | 1,275,343 | $ | 1,251,012 | $ | 1,276,735 | $ | 1,274,479 | $ | 1,260,788 | ||||||||||
Nonperforming assets | ||||||||||||||||||||
Nonaccrual loans | $ | 25,547 | $ | 27,756 | $ | 21,366 | $ | 22,915 | $ | 36,891 | ||||||||||
OREO and OPPO | 4,519 | 5,998 | 8,994 | 10,613 | 12,427 | |||||||||||||||
Total nonperforming assets | $ | 30,066 | $ | 33,754 | $ | 30,360 | $ | 33,528 | $ | 49,318 | ||||||||||
Nonperforming loans to period-end loans | 0.41 | % | 0.45 | % | 0.34 | % | 0.38 | % | 0.63 | % | ||||||||||
Nonperforming assets to period-end assets | 0.32 | % | 0.35 | % | 0.32 | % | 0.36 | % | 0.55 | % | ||||||||||
Allowance for loan and lease losses to period-end loans | 1.14 | % | 1.13 | % | 1.12 | % | 1.13 | % | 1.18 | % | ||||||||||
Net loan charge-offs | $ | 1,797 | $ | 239 | $ | 906 | $ | 3,600 | $ | 4,162 |
LOAN PORTFOLIO COMPOSITION | ||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||
Unaudited | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | ||||||||||||||||
Loan Portfolio Composition - Dollars | (dollars in thousands) | |||||||||||||||||||
Commercial business | $ | 2,559,247 | $ | 2,551,054 | $ | 2,630,017 | $ | 2,518,682 | $ | 2,401,193 | ||||||||||
Real estate: | ||||||||||||||||||||
One-to-four family residential | 172,581 | 170,331 | 168,511 | 172,957 | 175,050 | |||||||||||||||
Commercial and multifamily residential | 2,783,433 | 2,719,830 | 2,686,783 | 2,651,476 | 2,520,352 | |||||||||||||||
Total real estate | 2,956,014 | 2,890,161 | 2,855,294 | 2,824,433 | 2,695,402 | |||||||||||||||
Real estate construction: | ||||||||||||||||||||
One-to-four family residential | 115,219 | 121,887 | 130,163 | 129,195 | 133,447 | |||||||||||||||
Commercial and multifamily residential | 172,896 | 209,118 | 202,014 | 185,315 | 183,548 | |||||||||||||||
Total real estate construction | 288,115 | 331,005 | 332,177 | 314,510 | 316,995 | |||||||||||||||
Consumer | 318,069 | 329,261 | 325,741 | 325,632 | 329,902 | |||||||||||||||
Purchased credit impaired | 138,903 | 145,660 | 152,764 | 161,107 | 173,201 | |||||||||||||||
Subtotal loans | 6,260,348 | 6,247,141 | 6,295,993 | 6,144,364 | 5,916,693 | |||||||||||||||
Less: Net unearned income | (32,212 | ) | (33,718 | ) | (36,236 | ) | (37,221 | ) | (39,410 | ) | ||||||||||
Loans, net of unearned income | 6,228,136 | 6,213,423 | 6,259,757 | 6,107,143 | 5,877,283 | |||||||||||||||
Less: Allowance for loan and lease losses | (71,021 | ) | (70,043 | ) | (70,264 | ) | (69,304 | ) | (69,264 | ) | ||||||||||
Total loans, net | 6,157,115 | 6,143,380 | 6,189,493 | 6,037,839 | 5,808,019 | |||||||||||||||
Loans held for sale | $ | 3,245 | $ | 5,846 | $ | 3,361 | $ | 7,649 | $ | 3,681 |
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
Loan Portfolio Composition - Percentages | 2017 | 2016 | 2016 | 2016 | 2016 | ||||||||||
Commercial business | 41.1 | % | 41.1 | % | 42.0 | % | 41.2 | % | 40.9 | % | |||||
Real estate: | |||||||||||||||
One-to-four family residential | 2.8 | % | 2.7 | % | 2.7 | % | 2.8 | % | 3.0 | % | |||||
Commercial and multifamily residential | 44.7 | % | 43.7 | % | 43.0 | % | 43.6 | % | 42.9 | % | |||||
Total real estate | 47.5 | % | 46.4 | % | 45.7 | % | 46.4 | % | 45.9 | % | |||||
Real estate construction: | |||||||||||||||
One-to-four family residential | 1.8 | % | 2.0 | % | 2.1 | % | 2.1 | % | 2.3 | % | |||||
Commercial and multifamily residential | 2.8 | % | 3.4 | % | 3.2 | % | 3.0 | % | 3.1 | % | |||||
Total real estate construction | 4.6 | % | 5.4 | % | 5.3 | % | 5.1 | % | 5.4 | % | |||||
Consumer | 5.1 | % | 5.3 | % | 5.2 | % | 5.3 | % | 5.6 | % | |||||
Purchased credit impaired | 2.2 | % | 2.3 | % | 2.4 | % | 2.6 | % | 2.9 | % | |||||
Subtotal loans | 100.5 | % | 100.5 | % | 100.6 | % | 100.6 | % | 100.7 | % | |||||
Less: Net unearned income | (0.5 | )% | (0.5 | )% | (0.6 | )% | (0.6 | )% | (0.7 | )% | |||||
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, | ||||||||||||||||
2017 | 2016 | 2016 | 2016 | 2016 | ||||||||||||||||
Deposit Composition - Dollars | (dollars in thousands) | |||||||||||||||||||
Core deposits: | ||||||||||||||||||||
Demand and other non-interest bearing | $ | 3,958,106 | $ | 3,944,495 | $ | 3,942,434 | $ | 3,652,951 | $ | 3,553,468 | ||||||||||
Interest bearing demand | 985,954 | 985,293 | 963,242 | 957,548 | 958,469 | |||||||||||||||
Money market | 1,798,034 | 1,791,283 | 1,873,376 | 1,818,337 | 1,838,364 | |||||||||||||||
Savings | 759,002 | 723,667 | 714,047 | 692,694 | 695,588 | |||||||||||||||
Certificates of deposit, less than $250,000 | 293,494 | 304,830 | 315,965 | 326,433 | 338,733 | |||||||||||||||
Total core deposits | 7,794,590 | 7,749,568 | 7,809,064 | 7,447,963 | 7,384,622 | |||||||||||||||
Certificates of deposit, $250,000 or more | 74,460 | 79,424 | 79,590 | 72,812 | 70,571 | |||||||||||||||
Certificates of deposit insured by CDARS® | 20,994 | 22,039 | 16,951 | 22,755 | 24,752 | |||||||||||||||
Brokered money market accounts | 198,768 | 208,348 | 152,151 | 129,590 | 116,878 | |||||||||||||||
Subtotal | 8,088,812 | 8,059,379 | 8,057,756 | 7,673,120 | 7,596,823 | |||||||||||||||
Premium resulting from acquisition date fair value adjustment | 15 | 36 | 60 | 93 | 126 | |||||||||||||||
Total deposits | $ | 8,088,827 | $ | 8,059,415 | $ | 8,057,816 | $ | 7,673,213 | $ | 7,596,949 |
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
Deposit Composition - Percentages | 2017 | 2016 | 2016 | 2016 | 2016 | ||||||||||
Core deposits: | |||||||||||||||
Demand and other non-interest bearing | 48.9 | % | 48.9 | % | 48.9 | % | 47.6 | % | 46.8 | % | |||||
Interest bearing demand | 12.2 | % | 12.2 | % | 12.0 | % | 12.5 | % | 12.6 | % | |||||
Money market | 22.2 | % | 22.2 | % | 23.2 | % | 23.7 | % | 24.2 | % | |||||
Savings | 9.4 | % | 9.0 | % | 8.9 | % | 9.0 | % | 9.2 | % | |||||
Certificates of deposit, less than $250,000 | 3.6 | % | 3.8 | % | 3.9 | % | 4.3 | % | 4.5 | % | |||||
Total core deposits | 96.3 | % | 96.1 | % | 96.9 | % | 97.1 | % | 97.3 | % | |||||
Certificates of deposit, $250,000 or more | 0.9 | % | 1.0 | % | 1.0 | % | 0.9 | % | 0.9 | % | |||||
Certificates of deposit insured by CDARS® | 0.3 | % | 0.3 | % | 0.2 | % | 0.3 | % | 0.3 | % | |||||
Brokered money market accounts | 2.5 | % | 2.6 | % | 1.9 | % | 1.7 | % | 1.5 | % | |||||
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, | |||||||||
2017 | 2016 | 2016 | ||||||||||
(in thousands except per share) | ||||||||||||
Interest Income | ||||||||||||
Loans | $ | 74,120 | $ | 74,542 | $ | 70,316 | ||||||
Taxable securities | 10,986 | 9,333 | 8,017 | |||||||||
Tax-exempt securities | 2,691 | 2,724 | 2,803 | |||||||||
Deposits in banks | 19 | 135 | 38 | |||||||||
Total interest income | 87,816 | 86,734 | 81,174 | |||||||||
Interest Expense | ||||||||||||
Deposits | 787 | 782 | 742 | |||||||||
Federal Home Loan Bank advances | 225 | 77 | 124 | |||||||||
Other borrowings | 129 | 138 | 138 | |||||||||
Total interest expense | 1,141 | 997 | 1,004 | |||||||||
Net Interest Income | 86,675 | 85,737 | 80,170 | |||||||||
Provision for loan and lease losses | 2,775 | 18 | 5,254 | |||||||||
Net interest income after provision for loan and lease losses | 83,900 | 85,719 | 74,916 | |||||||||
Noninterest Income | ||||||||||||
Deposit account and treasury management fees | 7,287 | 7,196 | 6,989 | |||||||||
Card revenue | 5,723 | 5,803 | 5,652 | |||||||||
Financial services and trust revenue | 2,839 | 2,919 | 2,821 | |||||||||
Loan revenue | 3,593 | 2,954 | 2,262 | |||||||||
Merchant processing revenue | 2,019 | 2,006 | 2,102 | |||||||||
Bank owned life insurance | 1,280 | 1,087 | 1,116 | |||||||||
Investment securities gains, net | — | 7 | 373 | |||||||||
Change in FDIC loss-sharing asset | (274 | ) | (388 | ) | (1,103 | ) | ||||||
Other | 2,392 | 746 | 434 | |||||||||
Total noninterest income | 24,859 | 22,330 | 20,646 | |||||||||
Noninterest Expense | ||||||||||||
Compensation and employee benefits | 40,825 | 38,196 | 36,319 | |||||||||
Occupancy | 7,191 | 7,690 | 10,173 | |||||||||
Merchant processing expense | 1,049 | 1,018 | 1,033 | |||||||||
Advertising and promotion | 817 | 720 | 842 | |||||||||
Data processing | 4,208 | 4,138 | 4,146 | |||||||||
Legal and professional fees | 3,369 | 2,523 | 1,325 | |||||||||
Taxes, licenses and fees | 1,241 | 1,106 | 1,290 | |||||||||
Regulatory premiums | 776 | 792 | 1,141 | |||||||||
Net cost of operation of other real estate owned | 152 | 612 | 104 | |||||||||
Amortization of intangibles | 1,349 | 1,420 | 1,583 | |||||||||
Other | 8,009 | 6,799 | 7,118 | |||||||||
Total noninterest expense | 68,986 | 65,014 | 65,074 | |||||||||
Income before income taxes | 39,773 | 43,035 | 30,488 | |||||||||
Provision for income taxes | 10,574 | 12,317 | 9,229 | |||||||||
Net Income | $ | 29,199 | $ | 30,718 | $ | 21,259 | ||||||
Earnings per common share | ||||||||||||
Basic | $ | 0.50 | $ | 0.53 | $ | 0.37 | ||||||
Diluted | $ | 0.50 | $ | 0.53 | $ | 0.37 | ||||||
Dividends paid per common share - regular | $ | 0.22 | $ | 0.20 | $ | 0.18 | ||||||
Dividends paid per common share - special | $ | — | $ | 0.19 | $ | 0.20 | ||||||
Dividends paid per common share - total | $ | 0.22 | $ | 0.39 | $ | 0.38 | ||||||
Weighted average number of common shares outstanding | 57,388 | 57,220 | 57,114 | |||||||||
Weighted average number of diluted common shares outstanding | 57,394 | 57,229 | 57,125 |
CONSOLIDATED BALANCE SHEETS | |||||||||||||
Columbia Banking System, Inc. | |||||||||||||
Unaudited | March 31, | December 31, | |||||||||||
2017 | 2016 | ||||||||||||
(in thousands) | |||||||||||||
ASSETS | |||||||||||||
Cash and due from banks | $ | 169,697 | $ | 193,038 | |||||||||
Interest-earning deposits with banks | 13,124 | 31,200 | |||||||||||
Total cash and cash equivalents | 182,821 | 224,238 | |||||||||||
Securities available for sale at fair value (amortized cost of $2,349,149 and $2,299,037, respectively) | 2,331,359 | 2,278,577 | |||||||||||
Federal Home Loan Bank stock at cost | 10,600 | 10,240 | |||||||||||
Loans held for sale | 3,245 | 5,846 | |||||||||||
Loans, net of unearned income of ($32,212) and ($33,718), respectively | 6,228,136 | 6,213,423 | |||||||||||
Less: allowance for loan and lease losses | 71,021 | 70,043 | |||||||||||
Loans, net | 6,157,115 | 6,143,380 | |||||||||||
FDIC loss-sharing asset | 3,239 | 3,535 | |||||||||||
Interest receivable | 31,345 | 30,074 | |||||||||||
Premises and equipment, net | 148,541 | 150,342 | |||||||||||
Other real estate owned | 4,519 | 5,998 | |||||||||||
Goodwill | 382,762 | 382,762 | |||||||||||
Other intangible assets, net | 16,282 | 17,631 | |||||||||||
Other assets | 255,444 | 256,984 | |||||||||||
Total assets | $ | 9,527,272 | $ | 9,509,607 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||
Deposits: | |||||||||||||
Noninterest-bearing | $ | 3,958,106 | $ | 3,944,495 | |||||||||
Interest-bearing | 4,130,721 | 4,114,920 | |||||||||||
Total deposits | 8,088,827 | 8,059,415 | |||||||||||
Federal Home Loan Bank advances | 15,483 | 6,493 | |||||||||||
Securities sold under agreements to repurchase | 46,914 | 80,822 | |||||||||||
Other liabilities | 100,705 | 111,865 | |||||||||||
Total liabilities | 8,251,929 | 8,258,595 | |||||||||||
Commitments and contingent liabilities | |||||||||||||
March 31, | December 31, | ||||||||||||
2017 | 2016 | ||||||||||||
Preferred stock (no par value) | (in thousands) | ||||||||||||
Authorized shares | 2,000 | 2,000 | |||||||||||
Issued and outstanding | — | 9 | — | 2,217 | |||||||||
Common stock (no par value) | |||||||||||||
Authorized shares | 115,000 | 115,000 | |||||||||||
Issued and outstanding | 58,329 | 58,042 | 999,702 | 995,837 | |||||||||
Retained earnings | 288,247 | 271,957 | |||||||||||
Accumulated other comprehensive loss | (12,606 | ) | (18,999 | ) | |||||||||
Total shareholders' equity | 1,275,343 | 1,251,012 | |||||||||||
Total liabilities and shareholders' equity | $ | 9,527,272 | $ | 9,509,607 |
AVERAGE BALANCES AND RATES | ||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
March 31, 2017 | March 31, 2016 | |||||||||||||||||||||
Average Balances | Interest Earned / Paid | Average Rate | Average Balances | Interest Earned / Paid | Average Rate | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Loans, net (1)(2) | $ | 6,198,215 | $ | 75,514 | 4.87 | % | $ | 5,827,440 | $ | 71,298 | 4.89 | % | ||||||||||
Taxable securities | 1,861,627 | 10,986 | 2.36 | % | 1,689,289 | 8,017 | 1.90 | % | ||||||||||||||
Tax exempt securities (2) | 448,863 | 4,140 | 3.69 | % | 458,168 | 4,312 | 3.76 | % | ||||||||||||||
Interest-earning deposits with banks | 11,586 | 19 | 0.66 | % | 31,048 | 38 | 0.49 | % | ||||||||||||||
Total interest-earning assets | 8,520,291 | $ | 90,659 | 4.26 | % | 8,005,945 | $ | 83,665 | 4.18 | % | ||||||||||||
Other earning assets | 178,091 | 154,336 | ||||||||||||||||||||
Noninterest-earning assets | 775,316 | 788,931 | ||||||||||||||||||||
Total assets | $ | 9,473,698 | $ | 8,949,212 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||
Certificates of deposit | $ | 399,306 | $ | 95 | 0.10 | % | $ | 448,915 | $ | 144 | 0.13 | % | ||||||||||
Savings accounts | 738,631 | 19 | 0.01 | % | 675,876 | 17 | 0.01 | % | ||||||||||||||
Interest-bearing demand | 972,560 | 159 | 0.07 | % | 927,948 | 169 | 0.07 | % | ||||||||||||||
Money market accounts | 2,008,107 | 514 | 0.10 | % | 1,930,575 | 412 | 0.09 | % | ||||||||||||||
Total interest-bearing deposits | 4,118,604 | 787 | 0.08 | % | 3,983,314 | 742 | 0.07 | % | ||||||||||||||
Federal Home Loan Bank advances | 81,577 | 225 | 1.10 | % | 50,569 | 124 | 0.98 | % | ||||||||||||||
Other borrowings | 63,479 | 129 | 0.81 | % | 90,699 | 138 | 0.61 | % | ||||||||||||||
Total interest-bearing liabilities | 4,263,660 | $ | 1,141 | 0.11 | % | 4,124,582 | $ | 1,004 | 0.10 | % | ||||||||||||
Noninterest-bearing deposits | 3,836,049 | 3,462,379 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 112,337 | 103,840 | ||||||||||||||||||||
Shareholders’ equity | 1,261,652 | 1,258,411 | ||||||||||||||||||||
Total liabilities & shareholders’ equity | $ | 9,473,698 | $ | 8,949,212 | ||||||||||||||||||
Net interest income (tax equivalent) | $ | 89,518 | $ | 82,661 | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.20 | % | 4.13 | % |
(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 $1.6 million and $1.1 million for the three month periods ended March 31, 2017 and March 31, 2016, respectively. The incremental accretion on acquired loans was $4.1 million and $4.7 million for the three months ended March 31, 2017 and 2016, respectively. |
(2) | Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was $1.4 million and $982 thousand for the three months ended March 31, 2017 and 2016, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.4 million and $1.5 million for the three months ended March 31, 2017 and 2016, respectively. |
AVERAGE BALANCES AND RATES | ||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
March 31, 2017 | December 31, 2016 | |||||||||||||||||||||
Average Balances | Interest Earned / Paid | Average Rate | Average Balances | Interest Earned / Paid | Average Rate | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Loans, net (1)(2) | $ | 6,198,215 | $ | 75,514 | 4.87 | % | $ | 6,200,506 | $ | 75,838 | 4.89 | % | ||||||||||
Taxable securities | 1,861,627 | 10,986 | 2.36 | % | 1,853,788 | 9,333 | 2.01 | % | ||||||||||||||
Tax exempt securities (2) | 448,863 | 4,140 | 3.69 | % | 460,733 | 4,191 | 3.64 | % | ||||||||||||||
Interest-earning deposits with banks | 11,586 | 19 | 0.66 | % | 97,471 | 135 | 0.55 | % | ||||||||||||||
Total interest-earning assets | 8,520,291 | $ | 90,659 | 4.26 | % | 8,612,498 | $ | 89,497 | 4.16 | % | ||||||||||||
Other earning assets | 178,091 | 162,591 | ||||||||||||||||||||
Noninterest-earning assets | 775,316 | 793,125 | ||||||||||||||||||||
Total assets | $ | 9,473,698 | $ | 9,568,214 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||
Certificates of deposit | $ | 399,306 | $ | 95 | 0.10 | % | $ | 410,372 | $ | 114 | 0.11 | % | ||||||||||
Savings accounts | 738,631 | 19 | 0.01 | % | 720,453 | 18 | 0.01 | % | ||||||||||||||
Interest-bearing demand | 972,560 | 159 | 0.07 | % | 969,104 | 154 | 0.06 | % | ||||||||||||||
Money market accounts | 2,008,107 | 514 | 0.10 | % | 2,051,766 | 496 | 0.10 | % | ||||||||||||||
Total interest-bearing deposits | 4,118,604 | 787 | 0.08 | % | 4,151,695 | 782 | 0.08 | % | ||||||||||||||
Federal Home Loan Bank advances | 81,577 | 225 | 1.10 | % | 10,128 | 77 | 3.04 | % | ||||||||||||||
Other borrowings | 63,479 | 129 | 0.81 | % | 60,997 | 138 | 0.90 | % | ||||||||||||||
Total interest-bearing liabilities | 4,263,660 | $ | 1,141 | 0.11 | % | 4,222,820 | $ | 997 | 0.09 | % | ||||||||||||
Noninterest-bearing deposits | 3,836,049 | 3,953,827 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 112,337 | 117,179 | ||||||||||||||||||||
Shareholders’ equity | 1,261,652 | 1,274,388 | ||||||||||||||||||||
Total liabilities & shareholders’ equity | $ | 9,473,698 | $ | 9,568,214 | ||||||||||||||||||
Net interest income (tax equivalent) | $ | 89,518 | $ | 88,500 | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.20 | % | 4.11 | % |
(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 $1.6 million and $1.7 million for the three month periods ended March 31, 2017 and December 31, 2016. The incremental accretion on acquired loans was $4.1 million and $4.3 million for the three months ended March 31, 2017 and December 31, 2016, respectively. |
(2) | Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was $1.4 million and $1.3 million for the three months ended March 31, 2017 and December 31, 2016, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.4 million and $1.5 million for the three month periods ended March 31, 2017 and December 31, 2016, respectively. |
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
2017 | 2016 | 2016 | ||||||||||
Operating net interest margin non-GAAP reconciliation: | (dollars in thousands) | |||||||||||
Net interest income (tax equivalent) (1) | $ | 89,518 | $ | 88,500 | $ | 82,661 | ||||||
Adjustments to arrive at operating net interest income (tax equivalent): | ||||||||||||
Incremental accretion income on FDIC purchased credit impaired loans | (2,117 | ) | (1,199 | ) | (1,657 | ) | ||||||
Incremental accretion income on other acquired loans | (1,948 | ) | (3,087 | ) | (3,073 | ) | ||||||
Premium amortization on acquired securities | 1,462 | 1,348 | 2,324 | |||||||||
Interest reversals on nonaccrual loans | 265 | 246 | 453 | |||||||||
Operating net interest income (tax equivalent) (1) | $ | 87,180 | $ | 85,808 | $ | 80,708 | ||||||
Average interest earning assets | $ | 8,520,291 | $ | 8,612,498 | $ | 8,005,945 | ||||||
Net interest margin (tax equivalent) (1) | 4.20 | % | 4.11 | % | 4.13 | % | ||||||
Operating net interest margin (tax equivalent) (1) | 4.09 | % | 3.99 | % | 4.03 | % |
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
2017 | 2016 | 2016 | ||||||||||
Operating efficiency ratio non-GAAP reconciliation: | (dollars in thousands) | |||||||||||
Noninterest expense (numerator A) | $ | 68,986 | $ | 65,014 | $ | 65,074 | ||||||
Adjustments to arrive at operating noninterest expense: | ||||||||||||
Acquisition-related expenses | (1,364 | ) | (291 | ) | (2,436 | ) | ||||||
Net benefit (cost) of operation of OREO and OPPO | (150 | ) | (612 | ) | (102 | ) | ||||||
FDIC clawback liability expense | 54 | 28 | (209 | ) | ||||||||
Loss on asset disposals | (6 | ) | (7 | ) | (160 | ) | ||||||
State of Washington Business and Occupation ("B&O") taxes | (1,123 | ) | (995 | ) | (1,171 | ) | ||||||
Operating noninterest expense (numerator B) | $ | 66,397 | $ | 63,137 | $ | 60,996 | ||||||
Net interest income (tax equivalent) (1) | $ | 89,518 | $ | 88,500 | $ | 82,661 | ||||||
Noninterest income | 24,859 | 22,330 | 20,646 | |||||||||
Bank owned life insurance tax equivalent adjustment | 689 | 586 | 600 | |||||||||
Total revenue (tax equivalent) (denominator A) | $ | 115,066 | $ | 111,416 | $ | 103,907 | ||||||
Operating net interest income (tax equivalent) (1) | $ | 87,180 | $ | 85,808 | $ | 80,708 | ||||||
Adjustments to arrive at operating noninterest income (tax equivalent): | ||||||||||||
Investment securities gains, net | — | (7 | ) | (373 | ) | |||||||
Gain on asset disposals | (29 | ) | (52 | ) | (54 | ) | ||||||
Mortgage loan repurchase liability adjustment | (573 | ) | (391 | ) | — | |||||||
Change in FDIC loss-sharing asset | 274 | 388 | 1,103 | |||||||||
Operating noninterest income (tax equivalent) | 25,220 | 22,854 | 21,922 | |||||||||
Total operating revenue (tax equivalent) (denominator B) | $ | 112,400 | $ | 108,662 | $ | 102,630 | ||||||
Efficiency ratio (tax equivalent) (numerator A/denominator A) | 59.95 | % | 58.35 | % | 62.63 | % | ||||||
Operating efficiency ratio (tax equivalent) (numerator B/denominator B) | 59.07 | % | 58.10 | % | 59.43 | % |
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