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)) |
COLUMBIA BANKING SYSTEM, INC. | |||||
Date: | January 25, 2018 | /s/ HADLEY S. ROBBINS | |||
Hadley S. Robbins | |||||
President and Chief Executive Officer |
• | Fourth quarter net income of $15.7 million; diluted earnings per share of $0.23, which included $0.31 per share negative impact from deferred tax asset re-measurement and acquisition-related expenses |
• | Record full year 2017 net income of $112.8 million; diluted earnings per share of $1.86 |
• | QTD net interest margin of 4.20%, unchanged from linked quarter and up 9 basis points from prior year period |
• | Loan production for the quarter of $377.7 million and full year production of $1.20 billion |
• | Completed merger with Pacific Continental Corporation |
November 1, 2017 | |||||||
(in thousands) | |||||||
Merger consideration | $ | 637,103 | |||||
Identifiable net assets acquired, at fair value | |||||||
Assets acquired | |||||||
Cash and cash equivalents | $ | 81,190 | |||||
Investment securities | 449,291 | ||||||
Federal Home Loan Bank stock | 7,084 | ||||||
Loans | 1,873,987 | ||||||
Interest receivable | 7,827 | ||||||
Premises and equipment | 27,343 | ||||||
Other real estate owned | 10,279 | ||||||
Core deposit intangible | 46,875 | ||||||
Other assets | 50,638 | ||||||
Total assets acquired | 2,554,514 | ||||||
Liabilities assumed | |||||||
Deposits | (2,118,982 | ) | |||||
Federal Home Loan Bank advances | (101,127 | ) | |||||
Subordinated debentures | (35,678 | ) | |||||
Junior subordinated debentures | (14,434 | ) | |||||
Securities sold under agreements to repurchase | (1,617 | ) | |||||
Other liabilities | (28,653 | ) | |||||
Total liabilities assumed | (2,300,491 | ) | |||||
Total identifiable net assets acquired, at fair value | 254,023 | ||||||
Goodwill | $ | 383,080 |
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||
2017 | 2017 | 2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||
Incremental accretion income due to: | ||||||||||||||||||||||||||||
FDIC purchased credit impaired loans | $ | 265 | $ | 972 | $ | 753 | $ | 2,117 | $ | 1,199 | $ | 4,107 | $ | 5,972 | ||||||||||||||
Other acquired loans | 2,482 | 1,903 | 2,356 | 1,948 | 3,087 | 8,689 | 11,983 | |||||||||||||||||||||
Incremental accretion income | $ | 2,747 | $ | 2,875 | $ | 3,109 | $ | 4,065 | $ | 4,286 | $ | 12,796 | $ | 17,955 | ||||||||||||||
Net interest margin (tax equivalent) | 4.20 | % | 4.20 | % | 4.12 | % | 4.20 | % | 4.11 | % | 4.18 | % | 4.12 | % | ||||||||||||||
Operating net interest margin (tax equivalent) (1) | 4.25 | % | 4.15 | % | 4.09 | % | 4.09 | % | 3.99 | % | 4.15 | % | 4.01 | % |
December 31, 2017 | September 30, 2017 | December 31, 2016 | ||||||||||
(in thousands) | ||||||||||||
Nonaccrual loans: | ||||||||||||
Commercial business | $ | 45,460 | $ | 25,213 | $ | 11,555 | ||||||
Real estate: | ||||||||||||
One-to-four family residential | 785 | 816 | 568 | |||||||||
Commercial and multifamily residential | 13,941 | 9,143 | 11,187 | |||||||||
Total real estate | 14,726 | 9,959 | 11,755 | |||||||||
Real estate construction: | ||||||||||||
One-to-four family residential | 1,854 | 239 | 563 | |||||||||
Total real estate construction | 1,854 | 239 | 563 | |||||||||
Consumer | 4,149 | 4,906 | 3,883 | |||||||||
Total nonaccrual loans | 66,189 | 40,317 | 27,756 | |||||||||
Other real estate owned and other personal property owned | 13,298 | 3,682 | 5,998 | |||||||||
Total nonperforming assets | $ | 79,487 | $ | 43,999 | $ | 33,754 |
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, 2017 | September 30, 2017 | December 31, 2016 | December 31, 2017 | December 31, 2016 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Beginning balance | $ | 71,616 | $ | 72,984 | $ | 70,264 | $ | 70,043 | $ | 68,172 | ||||||||||
Charge-offs: | ||||||||||||||||||||
Commercial business | (1,524 | ) | (1,362 | ) | (1,195 | ) | (7,613 | ) | (10,068 | ) | ||||||||||
One-to-four family residential real estate | — | — | — | (460 | ) | (35 | ) | |||||||||||||
Commercial and multifamily residential real estate | (287 | ) | — | (63 | ) | (287 | ) | (89 | ) | |||||||||||
One-to-four family residential real estate construction | — | — | (88 | ) | (14 | ) | (88 | ) | ||||||||||||
Consumer | (318 | ) | (263 | ) | (255 | ) | (1,474 | ) | (1,238 | ) | ||||||||||
Purchased credit impaired | (1,440 | ) | (1,633 | ) | (2,118 | ) | (6,812 | ) | (9,944 | ) | ||||||||||
Total charge-offs | (3,569 | ) | (3,258 | ) | (3,719 | ) | (16,660 | ) | (21,462 | ) | ||||||||||
Recoveries: | ||||||||||||||||||||
Commercial business | 839 | 688 | 377 | 4,836 | 2,646 | |||||||||||||||
One-to-four family residential real estate | 188 | 40 | 29 | 568 | 171 | |||||||||||||||
Commercial and multifamily residential real estate | 412 | 58 | 1,182 | 675 | 1,401 | |||||||||||||||
One-to-four family residential real estate construction | 71 | 20 | 11 | 178 | 291 | |||||||||||||||
Commercial and multifamily residential real estate construction | 1 | — | — | 1 | 109 | |||||||||||||||
Consumer | 311 | 343 | 168 | 1,187 | 933 | |||||||||||||||
Purchased credit impaired | 2,450 | 1,389 | 1,713 | 6,187 | 7,004 | |||||||||||||||
Total recoveries | 4,272 | 2,538 | 3,480 | 13,632 | 12,555 | |||||||||||||||
Net recoveries (charge-offs) | 703 | (720 | ) | (239 | ) | (3,028 | ) | (8,907 | ) | |||||||||||
Provision (recapture) for loan and lease losses | 3,327 | (648 | ) | 18 | 8,631 | 10,778 | ||||||||||||||
Ending balance | $ | 75,646 | $ | 71,616 | $ | 70,043 | $ | 75,646 | $ | 70,043 |
Contacts: | Hadley S. Robbins, |
President and | |
Chief Executive Officer | |
Clint E. Stein, | |
Executive Vice President and | |
Chief Financial Officer | |
Investor Relations | |
InvestorRelations@columbiabank.com | |
253-305-1921 |
FINANCIAL STATISTICS | ||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | Twelve Months Ended | ||||||||||||||||||
Unaudited | December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||
2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||
Earnings | (dollars in thousands except per share amounts) | |||||||||||||||||||
Net interest income | $ | 106,224 | $ | 88,929 | $ | 85,737 | $ | 367,989 | $ | 333,619 | ||||||||||
Provision (recapture) for loan and lease losses | $ | 3,327 | $ | (648 | ) | $ | 18 | $ | 8,631 | $ | 10,778 | |||||||||
Noninterest income | $ | 23,581 | $ | 37,067 | $ | 22,330 | $ | 109,642 | $ | 88,082 | ||||||||||
Noninterest expense | $ | 85,627 | $ | 67,537 | $ | 65,014 | $ | 291,017 | $ | 261,142 | ||||||||||
Acquisition-related expense (included in noninterest expense) | $ | 13,638 | $ | 1,171 | $ | 291 | $ | 17,196 | $ | 2,727 | ||||||||||
Net income | $ | 15,728 | $ | 40,769 | $ | 30,718 | $ | 112,828 | $ | 104,866 | ||||||||||
Per Common Share | ||||||||||||||||||||
Earnings (basic) | $ | 0.23 | $ | 0.70 | $ | 0.53 | $ | 1.86 | $ | 1.81 | ||||||||||
Earnings (diluted) | $ | 0.23 | $ | 0.70 | $ | 0.53 | $ | 1.86 | $ | 1.81 | ||||||||||
Book value | $ | 26.70 | $ | 22.76 | $ | 21.52 | $ | 26.70 | $ | 21.52 | ||||||||||
Averages | ||||||||||||||||||||
Total assets | $ | 11,751,049 | $ | 9,695,005 | $ | 9,568,214 | $ | 10,134,306 | $ | 9,311,621 | ||||||||||
Interest-earning assets | $ | 10,453,097 | $ | 8,750,561 | $ | 8,612,498 | $ | 9,098,276 | $ | 8,363,309 | ||||||||||
Loans | $ | 7,749,420 | $ | 6,441,537 | $ | 6,200,506 | $ | 6,682,259 | $ | 6,052,389 | ||||||||||
Securities, including Federal Home Loan Bank stock | $ | 2,539,321 | $ | 2,236,235 | $ | 2,314,521 | $ | 2,350,844 | $ | 2,269,121 | ||||||||||
Deposits | $ | 9,804,456 | $ | 8,187,337 | $ | 8,105,522 | $ | 8,482,350 | $ | 7,774,309 | ||||||||||
Interest-bearing deposits | $ | 5,033,980 | $ | 4,200,580 | $ | 4,151,695 | $ | 4,371,121 | $ | 4,070,401 | ||||||||||
Interest-bearing liabilities | $ | 5,127,100 | $ | 4,285,936 | $ | 4,222,820 | $ | 4,512,727 | $ | 4,227,096 | ||||||||||
Noninterest-bearing deposits | $ | 4,770,476 | $ | 3,986,757 | $ | 3,953,827 | $ | 4,111,229 | $ | 3,703,908 | ||||||||||
Shareholders' equity | $ | 1,754,745 | $ | 1,323,794 | $ | 1,274,388 | $ | 1,410,056 | $ | 1,269,801 | ||||||||||
Financial Ratios | ||||||||||||||||||||
Return on average assets | 0.54 | % | 1.68 | % | 1.28 | % | 1.11 | % | 1.13 | % | ||||||||||
Return on average common equity | 3.59 | % | 12.32 | % | 9.65 | % | 8.00 | % | 8.26 | % | ||||||||||
Average equity to average assets | 14.93 | % | 13.65 | % | 13.32 | % | 13.91 | % | 13.64 | % | ||||||||||
Net interest margin (tax equivalent) | 4.20 | % | 4.20 | % | 4.11 | % | 4.18 | % | 4.12 | % | ||||||||||
Efficiency ratio (tax equivalent) (1) | 63.93 | % | 52.09 | % | 58.35 | % | 59.07 | % | 60.04 | % | ||||||||||
Operating efficiency ratio (tax equivalent) (2) | 52.24 | % | 56.47 | % | 58.10 | % | 56.06 | % | 59.21 | % | ||||||||||
Noninterest expense ratio | 2.91 | % | 2.79 | % | 2.72 | % | 2.87 | % | 2.80 | % | ||||||||||
Core noninterest expense ratio (2) | 2.45 | % | 2.73 | % | 2.68 | % | 2.67 | % | 2.77 | % | ||||||||||
December 31, | September 30, | December 31, | ||||||||||||||||||
Period end | 2017 | 2017 | 2016 | |||||||||||||||||
Total assets | $ | 12,716,886 | $ | 9,814,578 | $ | 9,509,607 | ||||||||||||||
Loans, net of unearned income | $ | 8,358,657 | $ | 6,512,006 | $ | 6,213,423 | ||||||||||||||
Allowance for loan and lease losses | $ | 75,646 | $ | 71,616 | $ | 70,043 | ||||||||||||||
Securities, including Federal Home Loan Bank stock | $ | 2,753,271 | $ | 2,218,113 | $ | 2,288,817 | ||||||||||||||
Deposits | $ | 10,532,085 | $ | 8,341,717 | $ | 8,059,415 | ||||||||||||||
Core deposits | $ | 10,039,557 | $ | 7,999,499 | $ | 7,749,568 | ||||||||||||||
Shareholders' equity | $ | 1,949,922 | $ | 1,328,428 | $ | 1,251,012 | ||||||||||||||
Nonperforming assets | ||||||||||||||||||||
Nonaccrual loans | $ | 66,189 | $ | 40,317 | $ | 27,756 | ||||||||||||||
Other real estate owned ("OREO") and other personal property owned ("OPPO") | 13,298 | 3,682 | 5,998 | |||||||||||||||||
Total nonperforming assets | $ | 79,487 | $ | 43,999 | $ | 33,754 | ||||||||||||||
Nonperforming loans to period-end loans | 0.79 | % | 0.62 | % | 0.45 | % | ||||||||||||||
Nonperforming assets to period-end assets | 0.63 | % | 0.45 | % | 0.35 | % | ||||||||||||||
Allowance for loan and lease losses to period-end loans | 0.91 | % | 1.10 | % | 1.13 | % | ||||||||||||||
Net loan charge-offs (recoveries) | $ | (703 | ) | (3) | $ | 720 | (4) | $ | 239 | (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) and core noninterest expense ratio are non-GAAP financial measures. See section titled "Non-GAAP Financial Measures" on the last two pages of this earnings release for the reconciliations of the operating efficiency ratio (tax equivalent) to the efficiency ratio (tax equivalent) and the reconciliation of the noninterest expense ratio to the core noninterest expense ratio. | ||||||||||||||||||||
(3) For the three months ended December 31, 2017. | ||||||||||||||||||||
(4) For the three months ended September 30, 2017. | ||||||||||||||||||||
(5) For the three months ended December 31, 2016. |
QUARTERLY FINANCIAL STATISTICS | ||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | |||||||||||||||||||
Unaudited | December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
2017 | 2017 | 2017 | 2017 | 2016 | ||||||||||||||||
(dollars in thousands except per share) | ||||||||||||||||||||
Earnings | ||||||||||||||||||||
Net interest income | $ | 106,224 | $ | 88,929 | $ | 86,161 | $ | 86,675 | $ | 85,737 | ||||||||||
Provision (recapture) for loan and lease losses | $ | 3,327 | $ | (648 | ) | $ | 3,177 | $ | 2,775 | $ | 18 | |||||||||
Noninterest income | $ | 23,581 | $ | 37,067 | $ | 24,135 | $ | 24,859 | $ | 22,330 | ||||||||||
Noninterest expense | $ | 85,627 | $ | 67,537 | $ | 68,867 | $ | 68,986 | $ | 65,014 | ||||||||||
Acquisition-related expense (included in noninterest expense) | $ | 13,638 | $ | 1,171 | $ | 1,023 | $ | 1,364 | $ | 291 | ||||||||||
Net income | $ | 15,728 | $ | 40,769 | $ | 27,132 | $ | 29,199 | $ | 30,718 | ||||||||||
Per Common Share | ||||||||||||||||||||
Earnings (basic) | $ | 0.23 | $ | 0.70 | $ | 0.47 | $ | 0.50 | $ | 0.53 | ||||||||||
Earnings (diluted) | $ | 0.23 | $ | 0.70 | $ | 0.47 | $ | 0.50 | $ | 0.53 | ||||||||||
Book value | $ | 26.70 | $ | 22.76 | $ | 22.23 | $ | 21.86 | $ | 21.52 | ||||||||||
Averages | ||||||||||||||||||||
Total assets | $ | 11,751,049 | $ | 9,695,005 | $ | 9,597,274 | $ | 9,473,698 | $ | 9,568,214 | ||||||||||
Interest-earning assets | $ | 10,453,097 | $ | 8,750,561 | $ | 8,651,735 | $ | 8,520,291 | $ | 8,612,498 | ||||||||||
Loans | $ | 7,749,420 | $ | 6,441,537 | $ | 6,325,462 | $ | 6,198,215 | $ | 6,200,506 | ||||||||||
Securities, including Federal Home Loan Bank stock | $ | 2,539,321 | $ | 2,236,235 | $ | 2,316,077 | $ | 2,310,490 | $ | 2,314,521 | ||||||||||
Deposits | $ | 9,804,456 | $ | 8,187,337 | $ | 7,965,868 | $ | 7,954,653 | $ | 8,105,522 | ||||||||||
Interest-bearing deposits | $ | 5,033,980 | $ | 4,200,580 | $ | 4,123,135 | $ | 4,118,604 | $ | 4,151,695 | ||||||||||
Interest-bearing liabilities | $ | 5,127,100 | $ | 4,285,936 | $ | 4,367,216 | $ | 4,263,660 | $ | 4,222,820 | ||||||||||
Noninterest-bearing deposits | $ | 4,770,476 | $ | 3,986,757 | $ | 3,842,733 | $ | 3,836,049 | $ | 3,953,827 | ||||||||||
Shareholders' equity | $ | 1,754,745 | $ | 1,323,794 | $ | 1,295,564 | $ | 1,261,652 | $ | 1,274,388 | ||||||||||
Financial Ratios | ||||||||||||||||||||
Return on average assets | 0.54 | % | 1.68 | % | 1.13 | % | 1.23 | % | 1.28 | % | ||||||||||
Return on average common equity | 3.59 | % | 12.32 | % | 8.38 | % | 9.26 | % | 9.65 | % | ||||||||||
Average equity to average assets | 14.93 | % | 13.65 | % | 13.50 | % | 13.32 | % | 13.32 | % | ||||||||||
Net interest margin (tax equivalent) | 4.20 | % | 4.20 | % | 4.12 | % | 4.20 | % | 4.11 | % | ||||||||||
Period end | ||||||||||||||||||||
Total assets | $ | 12,716,886 | $ | 9,814,578 | $ | 9,685,110 | $ | 9,527,272 | $ | 9,509,607 | ||||||||||
Loans, net of unearned income | $ | 8,358,657 | $ | 6,512,006 | $ | 6,423,074 | $ | 6,228,136 | $ | 6,213,423 | ||||||||||
Allowance for loan and lease losses | $ | 75,646 | $ | 71,616 | $ | 72,984 | $ | 71,021 | $ | 70,043 | ||||||||||
Securities, including Federal Home Loan Bank stock | $ | 2,753,271 | $ | 2,218,113 | $ | 2,280,996 | $ | 2,341,959 | $ | 2,288,817 | ||||||||||
Deposits | $ | 10,532,085 | $ | 8,341,717 | $ | 8,072,464 | $ | 8,088,827 | $ | 8,059,415 | ||||||||||
Core deposits | $ | 10,039,557 | $ | 7,999,499 | $ | 7,721,766 | $ | 7,794,590 | $ | 7,749,568 | ||||||||||
Shareholders' equity | $ | 1,949,922 | $ | 1,328,428 | $ | 1,297,314 | $ | 1,275,343 | $ | 1,251,012 | ||||||||||
Nonperforming assets | ||||||||||||||||||||
Nonaccrual loans | $ | 66,189 | $ | 40,317 | $ | 36,824 | $ | 25,547 | $ | 27,756 | ||||||||||
OREO and OPPO | 13,298 | 3,682 | 4,058 | 4,519 | 5,998 | |||||||||||||||
Total nonperforming assets | $ | 79,487 | $ | 43,999 | $ | 40,882 | $ | 30,066 | $ | 33,754 | ||||||||||
Nonperforming loans to period-end loans | 0.79 | % | 0.62 | % | 0.57 | % | 0.41 | % | 0.45 | % | ||||||||||
Nonperforming assets to period-end assets | 0.63 | % | 0.45 | % | 0.42 | % | 0.32 | % | 0.35 | % | ||||||||||
Allowance for loan and lease losses to period-end loans | 0.91 | % | 1.10 | % | 1.14 | % | 1.14 | % | 1.13 | % | ||||||||||
Net loan charge-offs (recoveries) | $ | (703 | ) | $ | 720 | $ | 1,214 | $ | 1,797 | $ | 239 |
LOAN PORTFOLIO COMPOSITION | ||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||
Unaudited | December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
2017 | 2017 | 2017 | 2017 | 2016 | ||||||||||||||||
Loan Portfolio Composition - Dollars | (dollars in thousands) | |||||||||||||||||||
Commercial business | $ | 3,377,324 | $ | 2,735,206 | $ | 2,704,468 | $ | 2,559,247 | $ | 2,551,054 | ||||||||||
Real estate: | ||||||||||||||||||||
One-to-four family residential | 188,396 | 176,487 | 173,150 | 172,581 | 170,331 | |||||||||||||||
Commercial and multifamily residential | 3,825,739 | 2,825,794 | 2,787,560 | 2,783,433 | 2,719,830 | |||||||||||||||
Total real estate | 4,014,135 | 3,002,281 | 2,960,710 | 2,956,014 | 2,890,161 | |||||||||||||||
Real estate construction: | ||||||||||||||||||||
One-to-four family residential | 200,518 | 145,419 | 139,956 | 115,219 | 121,887 | |||||||||||||||
Commercial and multifamily residential | 371,931 | 213,939 | 195,565 | 172,896 | 209,118 | |||||||||||||||
Total real estate construction | 572,449 | 359,358 | 335,521 | 288,115 | 331,005 | |||||||||||||||
Consumer | 334,190 | 323,913 | 323,187 | 318,069 | 329,261 | |||||||||||||||
Purchased credit impaired | 112,670 | 120,477 | 129,853 | 138,903 | 145,660 | |||||||||||||||
Subtotal loans | 8,410,768 | 6,541,235 | 6,453,739 | 6,260,348 | 6,247,141 | |||||||||||||||
Less: Net unearned income | (52,111 | ) | (29,229 | ) | (30,665 | ) | (32,212 | ) | (33,718 | ) | ||||||||||
Loans, net of unearned income | 8,358,657 | 6,512,006 | 6,423,074 | 6,228,136 | 6,213,423 | |||||||||||||||
Less: Allowance for loan and lease losses | (75,646 | ) | (71,616 | ) | (72,984 | ) | (71,021 | ) | (70,043 | ) | ||||||||||
Total loans, net | 8,283,011 | 6,440,390 | 6,350,090 | 6,157,115 | 6,143,380 | |||||||||||||||
Loans held for sale | $ | 5,766 | $ | 7,802 | $ | 6,918 | $ | 3,245 | $ | 5,846 |
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
Loan Portfolio Composition - Percentages | 2017 | 2017 | 2017 | 2017 | 2016 | ||||||||||
Commercial business | 40.4 | % | 42.0 | % | 42.1 | % | 41.1 | % | 41.1 | % | |||||
Real estate: | |||||||||||||||
One-to-four family residential | 2.3 | % | 2.7 | % | 2.7 | % | 2.8 | % | 2.7 | % | |||||
Commercial and multifamily residential | 45.8 | % | 43.3 | % | 43.5 | % | 44.7 | % | 43.7 | % | |||||
Total real estate | 48.1 | % | 46.0 | % | 46.2 | % | 47.5 | % | 46.4 | % | |||||
Real estate construction: | |||||||||||||||
One-to-four family residential | 2.4 | % | 2.2 | % | 2.2 | % | 1.8 | % | 2.0 | % | |||||
Commercial and multifamily residential | 4.4 | % | 3.3 | % | 3.0 | % | 2.8 | % | 3.4 | % | |||||
Total real estate construction | 6.8 | % | 5.5 | % | 5.2 | % | 4.6 | % | 5.4 | % | |||||
Consumer | 4.0 | % | 5.0 | % | 5.0 | % | 5.1 | % | 5.3 | % | |||||
Purchased credit impaired | 1.3 | % | 1.9 | % | 2.0 | % | 2.2 | % | 2.3 | % | |||||
Subtotal loans | 100.6 | % | 100.4 | % | 100.5 | % | 100.5 | % | 100.5 | % | |||||
Less: Net unearned income | (0.6 | )% | (0.4 | )% | (0.5 | )% | (0.5 | )% | (0.5 | )% | |||||
Loans, net of unearned income | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
DEPOSIT COMPOSITION | ||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
2017 | 2017 | 2017 | 2017 | 2016 | ||||||||||||||||
Deposit Composition - Dollars | (dollars in thousands) | |||||||||||||||||||
Core deposits: | ||||||||||||||||||||
Demand and other non-interest bearing | $ | 5,081,901 | $ | 4,119,950 | $ | 3,905,652 | $ | 3,958,106 | $ | 3,944,495 | ||||||||||
Interest bearing demand | 1,265,212 | 1,009,378 | 988,532 | 985,954 | 985,293 | |||||||||||||||
Money market | 2,543,712 | 1,821,262 | 1,787,101 | 1,798,034 | 1,791,283 | |||||||||||||||
Savings | 861,941 | 772,858 | 756,825 | 759,002 | 723,667 | |||||||||||||||
Certificates of deposit, less than $250,000 | 286,791 | 276,051 | 283,656 | 293,494 | 304,830 | |||||||||||||||
Total core deposits | 10,039,557 | 7,999,499 | 7,721,766 | 7,794,590 | 7,749,568 | |||||||||||||||
Certificates of deposit, $250,000 or more | 100,399 | 84,105 | 81,861 | 74,460 | 79,424 | |||||||||||||||
Certificates of deposit insured by CDARS® | 25,374 | 20,690 | 19,276 | 20,994 | 22,039 | |||||||||||||||
Other brokered certificates of deposit | 78,481 | — | — | — | — | |||||||||||||||
Brokered money market accounts | 289,031 | 237,421 | 249,554 | 198,768 | 208,348 | |||||||||||||||
Subtotal | 10,532,842 | 8,341,715 | 8,072,457 | 8,088,812 | 8,059,379 | |||||||||||||||
Premium (discount) resulting from acquisition date fair value adjustment | (757 | ) | 2 | 7 | 15 | 36 | ||||||||||||||
Total deposits | $ | 10,532,085 | $ | 8,341,717 | $ | 8,072,464 | $ | 8,088,827 | $ | 8,059,415 |
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
Deposit Composition - Percentages | 2017 | 2017 | 2017 | 2017 | 2016 | ||||||||||
Core deposits: | |||||||||||||||
Demand and other non-interest bearing | 48.2 | % | 49.4 | % | 48.4 | % | 48.9 | % | 48.9 | % | |||||
Interest bearing demand | 12.0 | % | 12.1 | % | 12.2 | % | 12.2 | % | 12.2 | % | |||||
Money market | 24.2 | % | 21.8 | % | 22.1 | % | 22.2 | % | 22.2 | % | |||||
Savings | 8.2 | % | 9.3 | % | 9.4 | % | 9.4 | % | 9.0 | % | |||||
Certificates of deposit, less than $250,000 | 2.7 | % | 3.3 | % | 3.5 | % | 3.6 | % | 3.8 | % | |||||
Total core deposits | 95.3 | % | 95.9 | % | 95.6 | % | 96.3 | % | 96.1 | % | |||||
Certificates of deposit, $250,000 or more | 1.0 | % | 1.0 | % | 1.0 | % | 0.9 | % | 1.0 | % | |||||
Certificates of deposit insured by CDARS® | 0.2 | % | 0.2 | % | 0.2 | % | 0.3 | % | 0.3 | % | |||||
Other brokered certificates of deposit | 0.7 | % | — | % | — | % | — | % | — | % | |||||
Brokered money market accounts | 2.8 | % | 2.9 | % | 3.2 | % | 2.5 | % | 2.6 | % | |||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | Twelve Months Ended | ||||||||||||||||||
Unaudited | December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||
2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||
(in thousands except per share) | ||||||||||||||||||||
Interest Income | ||||||||||||||||||||
Loans | $ | 95,889 | $ | 78,641 | $ | 74,542 | $ | 324,229 | $ | 291,465 | ||||||||||
Taxable securities | 9,487 | 8,718 | 9,333 | 38,659 | 35,167 | |||||||||||||||
Tax-exempt securities | 2,920 | 2,718 | 2,724 | 11,045 | 11,121 | |||||||||||||||
Deposits in banks | 545 | 226 | 135 | 813 | 216 | |||||||||||||||
Total interest income | 108,841 | 90,303 | 86,734 | 374,746 | 337,969 | |||||||||||||||
Interest Expense | ||||||||||||||||||||
Deposits | 2,022 | 1,083 | 782 | 4,800 | 3,134 | |||||||||||||||
Federal Home Loan Bank advances | 99 | 163 | 77 | 1,078 | 671 | |||||||||||||||
Subordinated debentures | 304 | — | — | 304 | — | |||||||||||||||
Other borrowings | 192 | 128 | 138 | 575 | 545 | |||||||||||||||
Total interest expense | 2,617 | 1,374 | 997 | 6,757 | 4,350 | |||||||||||||||
Net Interest Income | 106,224 | 88,929 | 85,737 | 367,989 | 333,619 | |||||||||||||||
Provision (recapture) for loan and lease losses | 3,327 | (648 | ) | 18 | 8,631 | 10,778 | ||||||||||||||
Net interest income after provision (recapture) for loan and lease losses | 102,897 | 89,577 | 85,719 | 359,358 | 322,841 | |||||||||||||||
Noninterest Income | ||||||||||||||||||||
Deposit account and treasury management fees | 8,013 | 7,685 | 7,196 | 30,381 | 28,500 | |||||||||||||||
Card revenue | 6,967 | 6,735 | 5,803 | 25,627 | 23,620 | |||||||||||||||
Financial services and trust revenue | 2,958 | 2,645 | 2,919 | 11,478 | 11,266 | |||||||||||||||
Loan revenue | 2,663 | 3,154 | 2,954 | 12,399 | 10,967 | |||||||||||||||
Merchant processing revenue | — | — | 2,006 | 4,283 | 8,732 | |||||||||||||||
Bank owned life insurance | 1,377 | 1,290 | 1,087 | 5,380 | 4,546 | |||||||||||||||
Investment securities gains (losses), net | (11 | ) | — | 7 | (11 | ) | 1,181 | |||||||||||||
Change in FDIC loss-sharing asset | — | — | (388 | ) | (447 | ) | (2,585 | ) | ||||||||||||
Gain on sale of merchant card services portfolio | — | 14,000 | — | 14,000 | — | |||||||||||||||
Other | 1,614 | 1,558 | 746 | 6,552 | 1,855 | |||||||||||||||
Total noninterest income | 23,581 | 37,067 | 22,330 | 109,642 | 88,082 | |||||||||||||||
Noninterest Expense | ||||||||||||||||||||
Compensation and employee benefits | 50,473 | 39,983 | 38,196 | 169,674 | 150,282 | |||||||||||||||
Occupancy | 9,554 | 8,085 | 7,690 | 32,407 | 33,734 | |||||||||||||||
Merchant processing expense | — | — | 1,018 | 2,196 | 4,330 | |||||||||||||||
Advertising and promotion | 1,543 | 969 | 720 | 4,466 | 4,598 | |||||||||||||||
Data processing | 5,134 | 4,122 | 4,138 | 18,205 | 16,488 | |||||||||||||||
Legal and professional fees | 5,955 | 2,880 | 2,523 | 15,151 | 7,889 | |||||||||||||||
Taxes, licenses and fees | 1,279 | 1,505 | 1,106 | 4,773 | 5,185 | |||||||||||||||
Regulatory premiums | 884 | 782 | 792 | 3,183 | 3,777 | |||||||||||||||
Net cost of operation of other real estate owned | 46 | 271 | 612 | 468 | 551 | |||||||||||||||
Amortization of intangibles | 2,547 | 1,188 | 1,420 | 6,333 | 5,946 | |||||||||||||||
Other | 8,212 | 7,752 | 6,799 | 34,161 | 28,362 | |||||||||||||||
Total noninterest expense | 85,627 | 67,537 | 65,014 | 291,017 | 261,142 | |||||||||||||||
Income before income taxes | 40,851 | 59,107 | 43,035 | 177,983 | 149,781 | |||||||||||||||
Provision for income taxes | 25,123 | 18,338 | 12,317 | 65,155 | 44,915 | |||||||||||||||
Net Income | $ | 15,728 | $ | 40,769 | $ | 30,718 | $ | 112,828 | $ | 104,866 | ||||||||||
Earnings per common share | ||||||||||||||||||||
Basic | $ | 0.23 | $ | 0.70 | $ | 0.53 | $ | 1.86 | $ | 1.81 | ||||||||||
Diluted | $ | 0.23 | $ | 0.70 | $ | 0.53 | $ | 1.86 | $ | 1.81 | ||||||||||
Dividends paid per common share - regular | $ | 0.22 | $ | 0.22 | $ | 0.20 | $ | 0.88 | $ | 0.77 | ||||||||||
Dividends paid per common share - special | $ | — | $ | — | $ | 0.19 | $ | — | $ | 0.76 | ||||||||||
Dividends paid per common share - total | $ | 0.22 | $ | 0.22 | $ | 0.39 | $ | 0.88 | $ | 1.53 | ||||||||||
Weighted average number of common shares outstanding | 67,120 | 57,566 | 57,220 | 59,882 | 57,184 | |||||||||||||||
Weighted average number of diluted common shares outstanding | 67,125 | 57,571 | 57,229 | 59,888 | 57,193 |
CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||
Unaudited | December 31, | September 30, | December 31, | |||||||||||||||||
2017 | 2017 | 2016 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 244,615 | $ | 186,116 | $ | 193,038 | ||||||||||||||
Interest-earning deposits with banks | 97,918 | 136,578 | 31,200 | |||||||||||||||||
Total cash and cash equivalents | 342,533 | 322,694 | 224,238 | |||||||||||||||||
Securities available for sale at fair value (amortized cost of $2,768,605, $2,215,335 and $2,299,037, respectively) | 2,742,831 | 2,207,873 | 2,278,577 | |||||||||||||||||
Federal Home Loan Bank stock at cost | 10,440 | 10,240 | 10,240 | |||||||||||||||||
Loans held for sale | 5,766 | 7,802 | 5,846 | |||||||||||||||||
Loans, net of unearned income of ($52,111), ($29,229) and ($33,718), respectively | 8,358,657 | 6,512,006 | 6,213,423 | |||||||||||||||||
Less: allowance for loan and lease losses | 75,646 | 71,616 | 70,043 | |||||||||||||||||
Loans, net | 8,283,011 | 6,440,390 | 6,143,380 | |||||||||||||||||
FDIC loss-sharing asset | — | — | 3,535 | |||||||||||||||||
Interest receivable | 40,881 | 36,163 | 30,074 | |||||||||||||||||
Premises and equipment, net | 169,490 | 143,351 | 150,342 | |||||||||||||||||
Other real estate owned | 13,298 | 3,682 | 5,998 | |||||||||||||||||
Goodwill | 765,842 | 382,762 | 382,762 | |||||||||||||||||
Other intangible assets, net | 58,173 | 13,845 | 17,631 | |||||||||||||||||
Other assets | 284,621 | 245,776 | 256,984 | |||||||||||||||||
Total assets | $ | 12,716,886 | $ | 9,814,578 | $ | 9,509,607 | ||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing | $ | 5,081,901 | $ | 4,119,950 | $ | 3,944,495 | ||||||||||||||
Interest-bearing | 5,450,184 | 4,221,767 | 4,114,920 | |||||||||||||||||
Total deposits | 10,532,085 | 8,341,717 | 8,059,415 | |||||||||||||||||
Federal Home Loan Bank advances | 11,579 | 6,465 | 6,493 | |||||||||||||||||
Securities sold under agreements to repurchase | 79,059 | 40,933 | 80,822 | |||||||||||||||||
Subordinated debentures | 35,647 | — | — | |||||||||||||||||
Junior subordinated debentures | 8,248 | — | — | |||||||||||||||||
Other liabilities | 100,346 | 97,035 | 111,865 | |||||||||||||||||
Total liabilities | 10,766,964 | 8,486,150 | 8,258,595 | |||||||||||||||||
Commitments and contingent liabilities | ||||||||||||||||||||
December 31, | September 30, | December 31, | ||||||||||||||||||
2017 | 2017 | 2016 | ||||||||||||||||||
Preferred stock (no par value) | (in thousands) | |||||||||||||||||||
Authorized shares | 2,000 | 2,000 | 2,000 | |||||||||||||||||
Issued and outstanding | — | — | 9 | — | — | 2,217 | ||||||||||||||
Common stock (no par value) | ||||||||||||||||||||
Authorized shares | 115,000 | 115,000 | 115,000 | |||||||||||||||||
Issued and outstanding | 73,020 | 58,376 | 58,042 | 1,634,705 | 1,003,887 | 995,837 | ||||||||||||||
Retained earnings | 333,360 | 330,474 | 271,957 | |||||||||||||||||
Accumulated other comprehensive loss | (18,143 | ) | (5,933 | ) | (18,999 | ) | ||||||||||||||
Total shareholders' equity | 1,949,922 | 1,328,428 | 1,251,012 | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 12,716,886 | $ | 9,814,578 | $ | 9,509,607 |
AVERAGE BALANCES AND RATES | ||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
December 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) | $ | 7,749,420 | $ | 97,720 | 5.04 | % | $ | 6,200,506 | $ | 75,838 | 4.89 | % | ||||||||||
Taxable securities | 2,035,788 | 9,487 | 1.86 | % | 1,853,788 | 9,333 | 2.01 | % | ||||||||||||||
Tax exempt securities (2) | 503,533 | 4,492 | 3.57 | % | 460,733 | 4,191 | 3.64 | % | ||||||||||||||
Interest-earning deposits with banks | 164,356 | 545 | 1.33 | % | 97,471 | 135 | 0.55 | % | ||||||||||||||
Total interest-earning assets | 10,453,097 | $ | 112,244 | 4.30 | % | 8,612,498 | $ | 89,497 | 4.16 | % | ||||||||||||
Other earning assets | 202,246 | 162,591 | ||||||||||||||||||||
Noninterest-earning assets | 1,095,706 | 793,125 | ||||||||||||||||||||
Total assets | $ | 11,751,049 | $ | 9,568,214 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||
Certificates of deposit | $ | 457,285 | $ | 374 | 0.33 | % | $ | 410,372 | $ | 114 | 0.11 | % | ||||||||||
Savings accounts | 835,952 | 39 | 0.02 | % | 720,453 | 18 | 0.01 | % | ||||||||||||||
Interest-bearing demand | 1,168,496 | 376 | 0.13 | % | 969,104 | 154 | 0.06 | % | ||||||||||||||
Money market accounts | 2,572,247 | 1,233 | 0.19 | % | 2,051,766 | 496 | 0.10 | % | ||||||||||||||
Total interest-bearing deposits | 5,033,980 | 2,022 | 0.16 | % | 4,151,695 | 782 | 0.08 | % | ||||||||||||||
Federal Home Loan Bank advances | 9,817 | 99 | 4.03 | % | 10,128 | 77 | 3.04 | % | ||||||||||||||
Subordinated debentures | 23,427 | 304 | 5.19 | % | — | — | — | % | ||||||||||||||
Other borrowings | 59,876 | 192 | 1.28 | % | 60,997 | 138 | 0.90 | % | ||||||||||||||
Total interest-bearing liabilities | 5,127,100 | $ | 2,617 | 0.20 | % | 4,222,820 | $ | 997 | 0.09 | % | ||||||||||||
Noninterest-bearing deposits | 4,770,476 | 3,953,827 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 98,728 | 117,179 | ||||||||||||||||||||
Shareholders’ equity | 1,754,745 | 1,274,388 | ||||||||||||||||||||
Total liabilities & shareholders’ equity | $ | 11,751,049 | $ | 9,568,214 | ||||||||||||||||||
Net interest income (tax equivalent) | $ | 109,627 | $ | 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 $1.9 million and $1.7 million for the three month periods ended December 31, 2017 and December 31, 2016, respectively. The incremental accretion on acquired loans was $2.7 million and $4.3 million for the three months ended December 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 $1.8 million and $1.3 million for the three months ended December 31, 2017 and 2016, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.6 million and $1.5 million for the three month periods ended December 31, 2017 and 2016, respectively. |
AVERAGE BALANCES AND RATES | ||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
December 31, 2017 | September 30, 2017 | |||||||||||||||||||||
Average Balances | Interest Earned / Paid | Average Rate | Average Balances | Interest Earned / Paid | Average Rate | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Loans, net (1)(2) | $ | 7,749,420 | $ | 97,720 | 5.04 | % | $ | 6,441,537 | $ | 80,136 | 4.98 | % | ||||||||||
Taxable securities | 2,035,788 | 9,487 | 1.86 | % | 1,784,407 | 8,718 | 1.95 | % | ||||||||||||||
Tax exempt securities (2) | 503,533 | 4,492 | 3.57 | % | 451,828 | 4,181 | 3.70 | % | ||||||||||||||
Interest-earning deposits with banks | 164,356 | 545 | 1.33 | % | 72,789 | 226 | 1.24 | % | ||||||||||||||
Total interest-earning assets | 10,453,097 | $ | 112,244 | 4.30 | % | 8,750,561 | $ | 93,261 | 4.26 | % | ||||||||||||
Other earning assets | 202,246 | 173,611 | ||||||||||||||||||||
Noninterest-earning assets | 1,095,706 | 770,833 | ||||||||||||||||||||
Total assets | $ | 11,751,049 | $ | 9,695,005 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||
Certificates of deposit | $ | 457,285 | $ | 374 | 0.33 | % | $ | 382,299 | $ | 92 | 0.10 | % | ||||||||||
Savings accounts | 835,952 | 39 | 0.02 | % | 766,540 | 19 | 0.01 | % | ||||||||||||||
Interest-bearing demand | 1,168,496 | 376 | 0.13 | % | 1,000,079 | 223 | 0.09 | % | ||||||||||||||
Money market accounts | 2,572,247 | 1,233 | 0.19 | % | 2,051,662 | 749 | 0.15 | % | ||||||||||||||
Total interest-bearing deposits | 5,033,980 | 2,022 | 0.16 | % | 4,200,580 | 1,083 | 0.10 | % | ||||||||||||||
Federal Home Loan Bank advances | 9,817 | 99 | 4.03 | % | 33,687 | 163 | 1.94 | % | ||||||||||||||
Subordinated debentures | 23,427 | 304 | 5.19 | % | — | — | — | % | ||||||||||||||
Other borrowings | 59,876 | 192 | 1.28 | % | 51,669 | 128 | 0.99 | % | ||||||||||||||
Total interest-bearing liabilities | 5,127,100 | $ | 2,617 | 0.20 | % | 4,285,936 | $ | 1,374 | 0.13 | % | ||||||||||||
Noninterest-bearing deposits | 4,770,476 | 3,986,757 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 98,728 | 98,518 | ||||||||||||||||||||
Shareholders’ equity | 1,754,745 | 1,323,794 | ||||||||||||||||||||
Total liabilities & shareholders’ equity | $ | 11,751,049 | $ | 9,695,005 | ||||||||||||||||||
Net interest income (tax equivalent) | $ | 109,627 | $ | 91,887 | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.20 | % | 4.20 | % |
(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 $1.9 million and $1.8 million for the three month periods ended December 31, 2017 and September 30, 2017, respectively. The incremental accretion on acquired loans was $2.7 million and $2.9 million for the three months ended December 31, 2017 and September 30, 2017, respectively. |
(2) | Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was $1.8 million and $1.5 million for the three months ended December 31, 2017 and September 30, 2017, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.6 million and $1.5 million for the three month periods ended December 31, 2017 and September 30, 2017, respectively. |
AVERAGE BALANCES AND RATES | ||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Twelve Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||
Average Balances | Interest Earned / Paid | Average Rate | Average Balances | Interest Earned / Paid | Average Rate | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Loans, net (1)(2) | $ | 6,682,259 | $ | 330,400 | 4.94 | % | $ | 6,052,389 | $ | 296,283 | 4.90 | % | ||||||||||
Taxable securities | 1,886,128 | 38,659 | 2.05 | % | 1,804,004 | 35,167 | 1.95 | % | ||||||||||||||
Tax exempt securities (2) | 464,716 | 16,992 | 3.66 | % | 465,117 | 17,109 | 3.68 | % | ||||||||||||||
Interest-earning deposits with banks | 65,173 | 813 | 1.25 | % | 41,799 | 216 | 0.52 | % | ||||||||||||||
Total interest-earning assets | 9,098,276 | $ | 386,864 | 4.25 | % | 8,363,309 | $ | 348,775 | 4.17 | % | ||||||||||||
Other earning assets | 181,792 | 156,871 | ||||||||||||||||||||
Noninterest-earning assets | 854,238 | 791,441 | ||||||||||||||||||||
Total assets | $ | 10,134,306 | $ | 9,311,621 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||
Certificates of deposit | $ | 406,406 | $ | 656 | 0.16 | % | $ | 426,296 | $ | 522 | 0.12 | % | ||||||||||
Savings accounts | 774,340 | 96 | 0.01 | % | 698,687 | 71 | 0.01 | % | ||||||||||||||
Interest-bearing demand | 1,031,719 | 950 | 0.09 | % | 952,135 | 695 | 0.07 | % | ||||||||||||||
Money market accounts | 2,158,656 | 3,098 | 0.14 | % | 1,993,283 | 1,846 | 0.09 | % | ||||||||||||||
Total interest-bearing deposits | 4,371,121 | 4,800 | 0.11 | % | 4,070,401 | 3,134 | 0.08 | % | ||||||||||||||
Federal Home Loan Bank advances | 79,788 | 1,078 | 1.35 | % | 79,673 | 671 | 0.84 | % | ||||||||||||||
Subordinated debentures | 5,905 | 304 | 5.15 | % | — | — | — | % | ||||||||||||||
Other borrowings | 55,913 | 575 | 1.03 | % | 77,022 | 545 | 0.71 | % | ||||||||||||||
Total interest-bearing liabilities | 4,512,727 | $ | 6,757 | 0.15 | % | 4,227,096 | $ | 4,350 | 0.10 | % | ||||||||||||
Noninterest-bearing deposits | 4,111,229 | 3,703,908 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 100,294 | 110,816 | ||||||||||||||||||||
Shareholders’ equity | 1,410,056 | 1,269,801 | ||||||||||||||||||||
Total liabilities & shareholders’ equity | $ | 10,134,306 | $ | 9,311,621 | ||||||||||||||||||
Net interest income (tax equivalent) | $ | 380,107 | $ | 344,425 | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.18 | % | 4.12 | % |
(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 $7.1 million and $5.3 million for the twelve months ended December 31, 2017 and 2016, respectively. The incremental accretion on acquired loans was $12.8 million and $18.0 million for the twelve months ended December 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 $6.2 million and $4.8 million for the twelve months ended December 31, 2017 and 2016, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $5.9 million and $6.0 million for the twelve months ended December 31, 2017 and 2016, respectively. |
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||
Operating net interest margin non-GAAP reconciliation: | (dollars in thousands) | |||||||||||||||||||
Net interest income (tax equivalent) (1) | $ | 109,627 | $ | 91,887 | $ | 88,500 | $ | 380,107 | $ | 344,425 | ||||||||||
Adjustments to arrive at operating net interest income (tax equivalent): | ||||||||||||||||||||
Incremental accretion income on FDIC purchased credit impaired loans | (265 | ) | (972 | ) | (1,199 | ) | (4,107 | ) | (5,972 | ) | ||||||||||
Incremental accretion income on other acquired loans | (2,482 | ) | (1,903 | ) | (3,087 | ) | (8,689 | ) | (11,983 | ) | ||||||||||
Premium amortization on acquired securities | 1,978 | 1,527 | 1,348 | 6,636 | 7,738 | |||||||||||||||
Correction of immaterial error - securities premium amortization | 1,771 | — | — | 1,771 | — | |||||||||||||||
Interest reversals on nonaccrual loans | 443 | 311 | 246 | 1,766 | 1,072 | |||||||||||||||
Operating net interest income (tax equivalent) (1) | $ | 111,072 | $ | 90,850 | $ | 85,808 | $ | 377,484 | $ | 335,280 | ||||||||||
Average interest earning assets | $ | 10,453,097 | $ | 8,750,561 | $ | 8,612,498 | $ | 9,098,276 | $ | 8,363,309 | ||||||||||
Net interest margin (tax equivalent) (1) | 4.20 | % | 4.20 | % | 4.11 | % | 4.18 | % | 4.12 | % | ||||||||||
Operating net interest margin (tax equivalent) (1) | 4.25 | % | 4.15 | % | 3.99 | % | 4.15 | % | 4.01 | % |
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||
Operating efficiency ratio non-GAAP reconciliation: | (dollars in thousands) | |||||||||||||||||||
Noninterest expense (numerator A) | $ | 85,627 | $ | 67,537 | $ | 65,014 | $ | 291,017 | $ | 261,142 | ||||||||||
Adjustments to arrive at operating noninterest expense: | ||||||||||||||||||||
Acquisition-related expenses | (13,638 | ) | (1,171 | ) | (291 | ) | (17,196 | ) | (2,727 | ) | ||||||||||
Net benefit (cost) of operation of OREO and OPPO | (46 | ) | (271 | ) | (612 | ) | (466 | ) | (544 | ) | ||||||||||
FDIC clawback liability recovery (expense) | — | — | 28 | 54 | (280 | ) | ||||||||||||||
Loss on asset disposals | (56 | ) | — | (7 | ) | (70 | ) | (205 | ) | |||||||||||
Termination of FDIC loss share agreements charge | — | — | — | (2,409 | ) | — | ||||||||||||||
State of Washington Business and Occupation ("B&O") taxes | (1,167 | ) | (1,394 | ) | (995 | ) | (4,326 | ) | (4,752 | ) | ||||||||||
Operating noninterest expense (numerator B) | $ | 70,720 | $ | 64,701 | $ | 63,137 | $ | 266,604 | $ | 252,634 | ||||||||||
Net interest income (tax equivalent) (1) | $ | 109,627 | $ | 91,887 | $ | 88,500 | $ | 380,107 | $ | 344,425 | ||||||||||
Noninterest income | 23,581 | 37,067 | 22,330 | 109,642 | 88,082 | |||||||||||||||
Bank owned life insurance tax equivalent adjustment | 741 | 695 | 586 | 2,897 | 2,448 | |||||||||||||||
Total revenue (tax equivalent) (denominator A) | $ | 133,949 | $ | 129,649 | $ | 111,416 | $ | 492,646 | $ | 434,955 | ||||||||||
Operating net interest income (tax equivalent) (1) | $ | 111,072 | $ | 90,850 | $ | 85,808 | $ | 377,484 | $ | 335,280 | ||||||||||
Adjustments to arrive at operating noninterest income (tax equivalent): | ||||||||||||||||||||
Investment securities gains, net | 11 | — | (7 | ) | 11 | (1,181 | ) | |||||||||||||
Gain on asset disposals | (34 | ) | (38 | ) | (52 | ) | (357 | ) | (124 | ) | ||||||||||
Mortgage loan repurchase liability adjustment | — | — | (391 | ) | (573 | ) | (391 | ) | ||||||||||||
Change in FDIC loss-sharing asset | — | — | 388 | 447 | 2,585 | |||||||||||||||
Gain on sale of merchant card services portfolio | — | (14,000 | ) | — | (14,000 | ) | — | |||||||||||||
Operating noninterest income (tax equivalent) | 24,299 | 23,724 | 22,854 | 98,067 | 91,419 | |||||||||||||||
Total operating revenue (tax equivalent) (denominator B) | $ | 135,371 | $ | 114,574 | $ | 108,662 | $ | 475,551 | $ | 426,699 | ||||||||||
Efficiency ratio (tax equivalent) (numerator A/denominator A) | 63.93 | % | 52.09 | % | 58.35 | % | 59.07 | % | 60.04 | % | ||||||||||
Operating efficiency ratio (tax equivalent) (numerator B/denominator B) | 52.24 | % | 56.47 | % | 58.10 | % | 56.06 | % | 59.21 | % |
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||
Core noninterest expense ratio non-GAAP reconciliation: | (dollars in thousands) | |||||||||||||||||||
Noninterest expense (numerator A) | $ | 85,627 | $ | 67,537 | $ | 65,014 | $ | 291,017 | $ | 261,142 | ||||||||||
Adjustments to arrive at core noninterest expense: | ||||||||||||||||||||
FDIC clawback liability recovery (expense) | — | — | 28 | 54 | (280 | ) | ||||||||||||||
Acquisition-related expenses | (13,638 | ) | (1,171 | ) | (291 | ) | (17,196 | ) | (2,727 | ) | ||||||||||
Net cost of operation of OREO and OPPO | (46 | ) | (271 | ) | (612 | ) | (466 | ) | (544 | ) | ||||||||||
Termination of FDIC loss share agreements charge | — | — | — | (2,409 | ) | — | ||||||||||||||
Core noninterest expense (numerator B) | $ | 71,943 | $ | 66,095 | $ | 64,139 | $ | 271,000 | $ | 257,591 | ||||||||||
Average assets (denominator) | $ | 11,751,049 | $ | 9,695,005 | $ | 9,568,214 | $ | 10,134,306 | $ | 9,311,621 | ||||||||||
Noninterest expense ratio (numerator A/denominator) | 2.91 | % | 2.79 | % | 2.72 | % | 2.87 | % | 2.80 | % | ||||||||||
Core noninterest expense ratio (numerator B/denominator) | 2.45 | % | 2.73 | % | 2.68 | % | 2.67 | % | 2.77 | % |
&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