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: | October 25, 2018 | /s/ HADLEY S. ROBBINS | |||
Hadley S. Robbins | |||||
President and Chief Executive Officer |
• | Record quarterly net income of $46.4 million; diluted earnings per share of $0.63, which included $0.02 per share negative impact from acquisition-related expenses |
• | Net interest margin of 4.41%, up 12 basis points from linked quarter |
• | Third quarter loan production of $408.9 million |
• | Nonperforming assets to period end assets ratio decreased to 0.52% |
• | Special cash dividend of $0.14 in addition to regular quarterly dividend |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | 2018 | 2017 | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||
Incremental accretion income due to: | ||||||||||||||||||||||||||||
FDIC purchased credit impaired loans | $ | 585 | $ | 326 | $ | 329 | $ | 265 | $ | 972 | $ | 1,240 | $ | 3,842 | ||||||||||||||
Other acquired loans | 2,643 | 2,690 | 3,370 | 2,482 | 1,903 | 8,703 | 6,207 | |||||||||||||||||||||
Incremental accretion income | $ | 3,228 | $ | 3,016 | $ | 3,699 | $ | 2,747 | $ | 2,875 | $ | 9,943 | $ | 10,049 | ||||||||||||||
Net interest margin (tax equivalent) | 4.41 | % | 4.29 | % | 4.22 | % | 4.20 | % | 4.20 | % | 4.31 | % | 4.17 | % | ||||||||||||||
Operating net interest margin (tax equivalent) (1) | 4.38 | % | 4.27 | % | 4.18 | % | 4.25 | % | 4.15 | % | 4.27 | % | 4.11 | % |
September 30, 2018 | June 30, 2018 | December 31, 2017 | ||||||||||
(in thousands) | ||||||||||||
Nonaccrual loans: | ||||||||||||
Commercial business | $ | 45,753 | $ | 52,036 | $ | 45,460 | ||||||
Real estate: | ||||||||||||
One-to-four family residential | 501 | 976 | 785 | |||||||||
Commercial and multifamily residential | 11,012 | 11,118 | 13,941 | |||||||||
Total real estate | 11,513 | 12,094 | 14,726 | |||||||||
Real estate construction: | ||||||||||||
One-to-four family residential | 318 | 389 | 1,854 | |||||||||
Total real estate construction | 318 | 389 | 1,854 | |||||||||
Consumer | 2,748 | 4,985 | 4,149 | |||||||||
Total nonaccrual loans | 60,332 | 69,504 | 66,189 | |||||||||
Other real estate owned and other personal property owned | 7,415 | 7,080 | 13,298 | |||||||||
Total nonperforming assets | $ | 67,747 | $ | 76,584 | $ | 79,487 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, 2018 | June 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Beginning balance, loans excluding PCI loans | $ | 75,368 | $ | 74,162 | $ | 64,923 | $ | 68,739 | $ | 59,528 | ||||||||||
Beginning balance, PCI loans | 4,782 | 5,665 | 8,061 | 6,907 | 10,515 | |||||||||||||||
Beginning balance | 80,150 | 79,827 | 72,984 | 75,646 | 70,043 | |||||||||||||||
Charge-offs: | ||||||||||||||||||||
Commercial business | (606 | ) | (5,775 | ) | (1,362 | ) | (8,858 | ) | (6,089 | ) | ||||||||||
One-to-four family residential real estate | — | — | — | — | (460 | ) | ||||||||||||||
Commercial and multifamily residential real estate | — | — | — | (223 | ) | — | ||||||||||||||
One-to-four family residential real estate construction | — | — | — | — | (14 | ) | ||||||||||||||
Consumer | (277 | ) | (232 | ) | (263 | ) | (773 | ) | (1,156 | ) | ||||||||||
Purchased credit impaired | (1,208 | ) | (1,235 | ) | (1,633 | ) | (3,786 | ) | (5,372 | ) | ||||||||||
Total charge-offs | (2,091 | ) | (7,242 | ) | (3,258 | ) | (13,640 | ) | (13,091 | ) | ||||||||||
Recoveries: | ||||||||||||||||||||
Commercial business | 547 | 1,543 | 688 | 2,892 | 3,997 | |||||||||||||||
One-to-four family residential real estate | 21 | 196 | 40 | 389 | 380 | |||||||||||||||
Commercial and multifamily residential real estate | 213 | 640 | 58 | 1,012 | 263 | |||||||||||||||
One-to-four family residential real estate construction | 583 | 14 | 20 | 616 | 107 | |||||||||||||||
Consumer | 266 | 270 | 343 | 796 | 876 | |||||||||||||||
Purchased credit impaired | 945 | 927 | 1,389 | 3,096 | 3,737 | |||||||||||||||
Total recoveries | 2,575 | 3,590 | 2,538 | 8,801 | 9,360 | |||||||||||||||
Net recoveries (charge-offs) | 484 | (3,652 | ) | (720 | ) | (4,839 | ) | (3,731 | ) | |||||||||||
Provision (recapture) for loan and lease losses, loans excluding PCI loans | 3,655 | 4,550 | (175 | ) | 15,180 | 6,840 | ||||||||||||||
Recapture for loan and lease losses, PCI loans | (502 | ) | (575 | ) | (473 | ) | (2,200 | ) | (1,536 | ) | ||||||||||
Provision (recapture) for loan and lease losses | 3,153 | 3,975 | (648 | ) | 12,980 | 5,304 | ||||||||||||||
Ending balance, loans excluding PCI loans | 79,770 | 75,368 | 64,272 | 79,770 | 64,272 | |||||||||||||||
Ending balance, PCI loans | 4,017 | 4,782 | 7,344 | 4,017 | 7,344 | |||||||||||||||
Ending balance | $ | 83,787 | $ | 80,150 | $ | 71,616 | $ | 83,787 | $ | 71,616 |
Contacts: | Hadley S. Robbins, |
President and | |
Chief Executive Officer | |
Gregory A. Sigrist, | |
Executive Vice President and | |
Chief Financial Officer | |
Investor Relations | |
InvestorRelations@columbiabank.com | |
253-305-1921 |
CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||
Unaudited | September 30, | June 30, | December 31, | |||||||||||||||||
2018 | 2018 | 2017 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 220,706 | $ | 224,370 | $ | 244,615 | ||||||||||||||
Interest-earning deposits with banks | 21,456 | 39,169 | 97,918 | |||||||||||||||||
Total cash and cash equivalents | 242,162 | 263,539 | 342,533 | |||||||||||||||||
Debt securities available for sale at fair value | 2,921,114 | 2,646,208 | 2,737,751 | |||||||||||||||||
Equity securities at fair value | 4,901 | 4,963 | 5,080 | |||||||||||||||||
Federal Home Loan Bank (“FHLB”) stock at cost | 16,640 | 13,960 | 10,440 | |||||||||||||||||
Loans held for sale | 5,275 | 6,773 | 5,766 | |||||||||||||||||
Loans, net of unearned income | 8,514,317 | 8,454,107 | 8,358,657 | |||||||||||||||||
Less: allowance for loan and lease losses | 83,787 | 80,150 | 75,646 | |||||||||||||||||
Loans, net | 8,430,530 | 8,373,957 | 8,283,011 | |||||||||||||||||
Interest receivable | 48,476 | 43,105 | 40,881 | |||||||||||||||||
Premises and equipment, net | 169,681 | 168,315 | 169,490 | |||||||||||||||||
Other real estate owned | 7,331 | 7,080 | 13,298 | |||||||||||||||||
Goodwill | 765,842 | 765,842 | 765,842 | |||||||||||||||||
Other intangible assets, net | 48,827 | 51,897 | 58,173 | |||||||||||||||||
Other assets | 295,817 | 282,947 | 284,621 | |||||||||||||||||
Total assets | $ | 12,956,596 | $ | 12,628,586 | $ | 12,716,886 | ||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing | $ | 5,250,222 | $ | 4,953,993 | $ | 5,081,901 | ||||||||||||||
Interest-bearing | 5,353,735 | 5,430,011 | 5,450,184 | |||||||||||||||||
Total deposits | 10,603,957 | 10,384,004 | 10,532,085 | |||||||||||||||||
FHLB advances | 166,536 | 99,549 | 11,579 | |||||||||||||||||
Securities sold under agreements to repurchase | 62,197 | 46,229 | 79,059 | |||||||||||||||||
Subordinated debentures | 35,508 | 35,555 | 35,647 | |||||||||||||||||
Junior subordinated debentures | — | — | 8,248 | |||||||||||||||||
Other liabilities | 107,003 | 98,368 | 100,346 | |||||||||||||||||
Total liabilities | 10,975,201 | 10,663,705 | 10,766,964 | |||||||||||||||||
Commitments and contingent liabilities | ||||||||||||||||||||
September 30, | June 30, | December 31, | ||||||||||||||||||
2018 | 2018 | 2017 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Common stock (no par value) | ||||||||||||||||||||
Authorized shares | 115,000 | 115,000 | 115,000 | |||||||||||||||||
Issued and outstanding | 73,260 | 73,245 | 73,020 | 1,640,140 | 1,636,903 | 1,634,705 | ||||||||||||||
Retained earnings | 411,264 | 383,899 | 337,442 | |||||||||||||||||
Accumulated other comprehensive loss | (70,009 | ) | (55,921 | ) | (22,225 | ) | ||||||||||||||
Total shareholders’ equity | 1,981,395 | 1,964,881 | 1,949,922 | |||||||||||||||||
Total liabilities and shareholders’ equity | $ | 12,956,596 | $ | 12,628,586 | $ | 12,716,886 |
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, | |||||||||||||||
2018 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Interest Income | (in thousands except per share) | |||||||||||||||||||
Loans | $ | 109,748 | $ | 105,412 | $ | 78,641 | $ | 318,187 | $ | 228,340 | ||||||||||
Taxable securities | 14,654 | 11,923 | 8,718 | 39,285 | 29,172 | |||||||||||||||
Tax-exempt securities | 3,069 | 3,063 | 2,718 | 9,196 | 8,125 | |||||||||||||||
Deposits in banks | 104 | 151 | 226 | 600 | 268 | |||||||||||||||
Total interest income | 127,575 | 120,549 | 90,303 | 367,268 | 265,905 | |||||||||||||||
Interest Expense | ||||||||||||||||||||
Deposits | 3,193 | 2,572 | 1,083 | 8,274 | 2,778 | |||||||||||||||
FHLB advances | 966 | 815 | 163 | 2,351 | 979 | |||||||||||||||
Subordinated debentures | 468 | 468 | — | 1,404 | — | |||||||||||||||
Other borrowings | 152 | 20 | 128 | 288 | 383 | |||||||||||||||
Total interest expense | 4,779 | 3,875 | 1,374 | 12,317 | 4,140 | |||||||||||||||
Net Interest Income | 122,796 | 116,674 | 88,929 | 354,951 | 261,765 | |||||||||||||||
Provision (recapture) for loan and lease losses | 3,153 | 3,975 | (648 | ) | 12,980 | 5,304 | ||||||||||||||
Net interest income after provision (recapture) for loan and lease losses | 119,643 | 112,699 | 89,577 | 341,971 | 256,461 | |||||||||||||||
Noninterest Income | ||||||||||||||||||||
Deposit account and treasury management fees | 9,266 | 8,683 | 7,685 | 26,689 | 22,368 | |||||||||||||||
Card revenue | 3,714 | 6,616 | 6,735 | 16,143 | 18,660 | |||||||||||||||
Financial services and trust revenue | 2,975 | 3,219 | 2,645 | 8,924 | 8,520 | |||||||||||||||
Loan revenue | 3,282 | 3,054 | 3,154 | 9,522 | 9,736 | |||||||||||||||
Merchant processing revenue | — | — | — | — | 4,283 | |||||||||||||||
Bank owned life insurance | 1,402 | 1,712 | 1,290 | 4,540 | 4,003 | |||||||||||||||
Investment securities losses, net | (62 | ) | (33 | ) | — | (73 | ) | — | ||||||||||||
Change in FDIC loss-sharing asset | — | — | — | — | (447 | ) | ||||||||||||||
Gain on sale of merchant card services portfolio | — | — | 14,000 | — | 14,000 | |||||||||||||||
Other | 442 | 441 | 1,558 | 2,109 | 4,938 | |||||||||||||||
Total noninterest income | 21,019 | 23,692 | 37,067 | 67,854 | 86,061 | |||||||||||||||
Noninterest Expense | ||||||||||||||||||||
Compensation and employee benefits | 49,419 | 48,949 | 39,983 | 148,938 | 119,201 | |||||||||||||||
Occupancy | 8,321 | 9,276 | 8,085 | 27,718 | 22,853 | |||||||||||||||
Merchant processing expense | — | — | — | — | 2,196 | |||||||||||||||
Advertising and promotion | 1,472 | 1,622 | 969 | 4,523 | 2,923 | |||||||||||||||
Data processing | 4,466 | 5,221 | 4,122 | 14,957 | 13,071 | |||||||||||||||
Legal and professional fees | 4,695 | 4,171 | 2,880 | 12,103 | 9,196 | |||||||||||||||
Taxes, licenses and fees | 1,562 | 1,560 | 1,505 | 4,547 | 3,494 | |||||||||||||||
Regulatory premiums | 904 | 937 | 782 | 2,778 | 2,299 | |||||||||||||||
Net cost of operation of other real estate owned | 485 | 758 | 271 | 1,244 | 422 | |||||||||||||||
Amortization of intangibles | 3,070 | 3,088 | 1,188 | 9,346 | 3,786 | |||||||||||||||
Other | 8,447 | 9,061 | 7,752 | 27,317 | 25,949 | |||||||||||||||
Total noninterest expense | 82,841 | 84,643 | 67,537 | 253,471 | 205,390 | |||||||||||||||
Income before income taxes | 57,821 | 51,748 | 59,107 | 156,354 | 137,132 | |||||||||||||||
Provision for income taxes | 11,406 | 9,999 | 18,338 | 28,220 | 40,032 | |||||||||||||||
Net Income | $ | 46,415 | $ | 41,749 | $ | 40,769 | $ | 128,134 | $ | 97,100 | ||||||||||
Earnings per common share | ||||||||||||||||||||
Basic | $ | 0.63 | $ | 0.57 | $ | 0.70 | $ | 1.75 | $ | 1.67 | ||||||||||
Diluted | $ | 0.63 | $ | 0.57 | $ | 0.70 | $ | 1.75 | $ | 1.67 | ||||||||||
Dividends declared per common share | $ | 0.26 | $ | 0.26 | $ | 0.22 | $ | 0.74 | $ | 0.66 | ||||||||||
Weighted average number of common shares outstanding | 72,427 | 72,385 | 57,566 | 72,370 | 57,459 | |||||||||||||||
Weighted average number of diluted common shares outstanding | 72,432 | 72,390 | 57,571 | 72,374 | 57,465 |
FINANCIAL STATISTICS | ||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | Nine Months Ended | ||||||||||||||||||
Unaudited | September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||
2018 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Earnings | (dollars in thousands except per share amounts) | |||||||||||||||||||
Net interest income | $ | 122,796 | $ | 116,674 | $ | 88,929 | $ | 354,951 | $ | 261,765 | ||||||||||
Provision (recapture) for loan and lease losses | $ | 3,153 | $ | 3,975 | $ | (648 | ) | $ | 12,980 | $ | 5,304 | |||||||||
Noninterest income | $ | 21,019 | $ | 23,692 | $ | 37,067 | $ | 67,854 | $ | 86,061 | ||||||||||
Noninterest expense | $ | 82,841 | $ | 84,643 | $ | 67,537 | $ | 253,471 | $ | 205,390 | ||||||||||
Acquisition-related expense (included in noninterest expense) | $ | 1,081 | $ | 2,822 | $ | 1,171 | $ | 8,168 | $ | 3,558 | ||||||||||
Net income | $ | 46,415 | $ | 41,749 | $ | 40,769 | $ | 128,134 | $ | 97,100 | ||||||||||
Per Common Share | ||||||||||||||||||||
Earnings (basic) | $ | 0.63 | $ | 0.57 | $ | 0.70 | $ | 1.75 | $ | 1.67 | ||||||||||
Earnings (diluted) | $ | 0.63 | $ | 0.57 | $ | 0.70 | $ | 1.75 | $ | 1.67 | ||||||||||
Book value | $ | 27.05 | $ | 26.83 | $ | 22.76 | $ | 27.05 | $ | 22.76 | ||||||||||
Tangible book value per common share (1) | $ | 15.93 | $ | 15.66 | $ | 15.96 | $ | 15.93 | $ | 15.96 | ||||||||||
Averages | ||||||||||||||||||||
Total assets | $ | 12,805,131 | $ | 12,529,540 | $ | 9,695,005 | $ | 12,646,678 | $ | 9,589,469 | ||||||||||
Interest-earning assets | $ | 11,326,629 | $ | 11,052,807 | $ | 8,750,561 | $ | 11,168,143 | $ | 8,641,706 | ||||||||||
Loans | $ | 8,456,632 | $ | 8,389,230 | $ | 6,441,537 | $ | 8,398,596 | $ | 6,322,629 | ||||||||||
Securities, including equity securities and FHLB stock | $ | 2,849,495 | $ | 2,628,292 | $ | 2,236,235 | $ | 2,720,625 | $ | 2,287,329 | ||||||||||
Deposits | $ | 10,478,800 | $ | 10,264,822 | $ | 8,187,337 | $ | 10,359,896 | $ | 8,036,805 | ||||||||||
Interest-bearing deposits | $ | 5,376,300 | $ | 5,390,869 | $ | 4,200,580 | $ | 5,390,859 | $ | 4,147,740 | ||||||||||
Interest-bearing liabilities | $ | 5,620,997 | $ | 5,611,055 | $ | 4,285,936 | $ | 5,619,943 | $ | 4,305,686 | ||||||||||
Noninterest-bearing deposits | $ | 5,102,500 | $ | 4,873,953 | $ | 3,986,757 | $ | 4,969,037 | $ | 3,889,065 | ||||||||||
Shareholders’ equity | $ | 1,983,317 | $ | 1,954,552 | $ | 1,323,794 | $ | 1,962,506 | $ | 1,293,898 | ||||||||||
Financial Ratios | ||||||||||||||||||||
Return on average assets | 1.45 | % | 1.33 | % | 1.68 | % | 1.35 | % | 1.35 | % | ||||||||||
Return on average common equity | 9.36 | % | 8.54 | % | 12.32 | % | 8.71 | % | 10.01 | % | ||||||||||
Return on average tangible common equity (1) | 16.74 | % | 15.57 | % | 17.93 | % | 15.80 | % | 14.83 | % | ||||||||||
Average equity to average assets | 15.49 | % | 15.60 | % | 13.65 | % | 15.52 | % | 13.49 | % | ||||||||||
Shareholders equity to total assets | 15.29 | % | 15.56 | % | 13.54 | % | 15.29 | % | 13.54 | % | ||||||||||
Tangible common shareholders’ equity to tangible assets (1) | 9.61 | % | 9.71 | % | 9.89 | % | 9.61 | % | 9.89 | % | ||||||||||
Net interest margin (tax equivalent) | 4.41 | % | 4.29 | % | 4.20 | % | 4.31 | % | 4.17 | % | ||||||||||
Efficiency ratio (tax equivalent) (2) | 56.67 | % | 59.29 | % | 52.09 | % | 58.97 | % | 57.26 | % | ||||||||||
Operating efficiency ratio (tax equivalent) (1) | 54.83 | % | 56.02 | % | 56.47 | % | 56.13 | % | 57.58 | % | ||||||||||
Noninterest expense ratio | 2.59 | % | 2.70 | % | 2.79 | % | 2.67 | % | 2.86 | % | ||||||||||
Core noninterest expense ratio (1) | 2.55 | % | 2.61 | % | 2.73 | % | 2.59 | % | 2.77 | % | ||||||||||
September 30, | June 30, | December 31, | ||||||||||||||||||
Period end | 2018 | 2018 | 2017 | |||||||||||||||||
Total assets | $ | 12,956,596 | $ | 12,628,586 | $ | 12,716,886 | ||||||||||||||
Loans, net of unearned income | $ | 8,514,317 | $ | 8,454,107 | $ | 8,358,657 | ||||||||||||||
Allowance for loan and lease losses | $ | 83,787 | $ | 80,150 | $ | 75,646 | ||||||||||||||
Securities, including equity securities and FHLB stock | $ | 2,942,655 | $ | 2,665,131 | $ | 2,753,271 | ||||||||||||||
Deposits | $ | 10,603,957 | $ | 10,384,004 | $ | 10,532,085 | ||||||||||||||
Core deposits | $ | 10,084,687 | $ | 9,888,696 | $ | 10,039,557 | ||||||||||||||
Shareholders’ equity | $ | 1,981,395 | $ | 1,964,881 | $ | 1,949,922 | ||||||||||||||
Nonperforming assets | ||||||||||||||||||||
Nonaccrual loans | $ | 60,332 | $ | 69,504 | $ | 66,189 | ||||||||||||||
Other real estate owned (“OREO”) and other personal property owned (“OPPO”) | 7,415 | 7,080 | 13,298 | |||||||||||||||||
Total nonperforming assets | $ | 67,747 | $ | 76,584 | $ | 79,487 | ||||||||||||||
Nonperforming loans to period-end loans | 0.71 | % | 0.82 | % | 0.79 | % | ||||||||||||||
Nonperforming assets to period-end assets | 0.52 | % | 0.61 | % | 0.63 | % | ||||||||||||||
Allowance for loan and lease losses to period-end loans | 0.98 | % | 0.95 | % | 0.91 | % | ||||||||||||||
Net loan charge-offs (recoveries) (3) | $ | (484 | ) | $ | 3,652 | $ | (703 | ) | ||||||||||||
(1) This is a non-GAAP measure. See section titled "Non-GAAP Financial Measures" on the last three pages of this earnings release for a reconciliation to the most comparable GAAP measure. | ||||||||||||||||||||
(2) Noninterest expense divided by the sum of net interest income on a tax equivalent basis and noninterest income on a tax equivalent basis. | ||||||||||||||||||||
(3) For the three months ended. |
QUARTERLY FINANCIAL STATISTICS | ||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | |||||||||||||||||||
Unaudited | September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | ||||||||||||||||
Earnings | (dollars in thousands except per share) | |||||||||||||||||||
Net interest income | $ | 122,796 | $ | 116,674 | $ | 115,481 | $ | 106,224 | $ | 88,929 | ||||||||||
Provision (recapture) for loan and lease losses | $ | 3,153 | $ | 3,975 | $ | 5,852 | $ | 3,327 | $ | (648 | ) | |||||||||
Noninterest income | $ | 21,019 | $ | 23,692 | $ | 23,143 | $ | 23,581 | $ | 37,067 | ||||||||||
Noninterest expense | $ | 82,841 | $ | 84,643 | $ | 85,987 | $ | 85,627 | $ | 67,537 | ||||||||||
Acquisition-related expense (included in noninterest expense) | $ | 1,081 | $ | 2,822 | $ | 4,265 | $ | 13,638 | $ | 1,171 | ||||||||||
Net income | $ | 46,415 | $ | 41,749 | $ | 39,970 | $ | 15,728 | $ | 40,769 | ||||||||||
Per Common Share | ||||||||||||||||||||
Earnings (basic) | $ | 0.63 | $ | 0.57 | $ | 0.55 | $ | 0.23 | $ | 0.70 | ||||||||||
Earnings (diluted) | $ | 0.63 | $ | 0.57 | $ | 0.55 | $ | 0.23 | $ | 0.70 | ||||||||||
Book value | $ | 27.05 | $ | 26.83 | $ | 26.60 | $ | 26.70 | $ | 22.76 | ||||||||||
Averages | ||||||||||||||||||||
Total assets | $ | 12,805,131 | $ | 12,529,540 | $ | 12,603,144 | $ | 11,751,049 | $ | 9,695,005 | ||||||||||
Interest-earning assets | $ | 11,326,629 | $ | 11,052,807 | $ | 11,122,753 | $ | 10,453,097 | $ | 8,750,561 | ||||||||||
Loans | $ | 8,456,632 | $ | 8,389,230 | $ | 8,348,740 | $ | 7,749,420 | $ | 6,441,537 | ||||||||||
Securities, including equity securities and FHLB stock | $ | 2,849,495 | $ | 2,628,292 | $ | 2,682,250 | $ | 2,539,321 | $ | 2,236,235 | ||||||||||
Deposits | $ | 10,478,800 | $ | 10,264,822 | $ | 10,334,480 | $ | 9,804,456 | $ | 8,187,337 | ||||||||||
Interest-bearing deposits | $ | 5,376,300 | $ | 5,390,869 | $ | 5,405,730 | $ | 5,033,980 | $ | 4,200,580 | ||||||||||
Interest-bearing liabilities | $ | 5,620,997 | $ | 5,611,055 | $ | 5,627,853 | $ | 5,127,100 | $ | 4,285,936 | ||||||||||
Noninterest-bearing deposits | $ | 5,102,500 | $ | 4,873,953 | $ | 4,928,750 | $ | 4,770,476 | $ | 3,986,757 | ||||||||||
Shareholders’ equity | $ | 1,983,317 | $ | 1,954,552 | $ | 1,949,275 | $ | 1,754,745 | $ | 1,323,794 | ||||||||||
Financial Ratios | ||||||||||||||||||||
Return on average assets | 1.45 | % | 1.33 | % | 1.27 | % | 0.54 | % | 1.68 | % | ||||||||||
Return on average common equity | 9.36 | % | 8.54 | % | 8.20 | % | 3.59 | % | 12.32 | % | ||||||||||
Average equity to average assets | 15.49 | % | 15.60 | % | 15.47 | % | 14.93 | % | 13.65 | % | ||||||||||
Shareholders’ equity to total assets | 15.29 | % | 15.56 | % | 15.55 | % | 15.33 | % | 13.54 | % | ||||||||||
Net interest margin (tax equivalent) | 4.41 | % | 4.29 | % | 4.22 | % | 4.20 | % | 4.20 | % | ||||||||||
Period end | ||||||||||||||||||||
Total assets | $ | 12,956,596 | $ | 12,628,586 | $ | 12,530,636 | $ | 12,716,886 | $ | 9,814,578 | ||||||||||
Loans, net of unearned income | $ | 8,514,317 | $ | 8,454,107 | $ | 8,339,631 | $ | 8,358,657 | $ | 6,512,006 | ||||||||||
Allowance for loan and lease losses | $ | 83,787 | $ | 80,150 | $ | 79,827 | $ | 75,646 | $ | 71,616 | ||||||||||
Securities, including equity securities and FHLB stock | $ | 2,942,655 | $ | 2,665,131 | $ | 2,640,685 | $ | 2,753,271 | $ | 2,218,113 | ||||||||||
Deposits | $ | 10,603,957 | $ | 10,384,004 | $ | 10,395,523 | $ | 10,532,085 | $ | 8,341,717 | ||||||||||
Core deposits | $ | 10,084,687 | $ | 9,888,696 | $ | 9,897,185 | $ | 10,039,557 | $ | 7,999,499 | ||||||||||
Shareholders’ equity | $ | 1,981,395 | $ | 1,964,881 | $ | 1,947,923 | $ | 1,949,922 | $ | 1,328,428 | ||||||||||
Goodwill | $ | 765,842 | $ | 765,842 | $ | 765,842 | $ | 765,842 | $ | 382,762 | ||||||||||
Other intangible assets, net | $ | 48,827 | $ | 51,897 | $ | 54,985 | $ | 58,173 | $ | 13,845 | ||||||||||
Nonperforming assets | ||||||||||||||||||||
Nonaccrual loans | $ | 60,332 | $ | 69,504 | $ | 78,464 | $ | 66,189 | $ | 40,317 | ||||||||||
OREO and OPPO | 7,415 | 7,080 | 11,507 | 13,298 | 3,682 | |||||||||||||||
Total nonperforming assets | $ | 67,747 | $ | 76,584 | $ | 89,971 | $ | 79,487 | $ | 43,999 | ||||||||||
Nonperforming loans to period-end loans | 0.71 | % | 0.82 | % | 0.94 | % | 0.79 | % | 0.62 | % | ||||||||||
Nonperforming assets to period-end assets | 0.52 | % | 0.61 | % | 0.72 | % | 0.63 | % | 0.45 | % | ||||||||||
Allowance for loan and lease losses to period-end loans | 0.98 | % | 0.95 | % | 0.96 | % | 0.91 | % | 1.10 | % | ||||||||||
Net loan charge-offs (recoveries) | $ | (484 | ) | $ | 3,652 | $ | 1,671 | $ | (703 | ) | $ | 720 |
LOAN PORTFOLIO COMPOSITION | ||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||
Unaudited | September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | ||||||||||||||||
Loan Portfolio Composition - Dollars | (dollars in thousands) | |||||||||||||||||||
Commercial business | $ | 3,554,147 | $ | 3,538,492 | $ | 3,402,162 | $ | 3,377,324 | $ | 2,735,206 | ||||||||||
Real estate: | ||||||||||||||||||||
One-to-four family residential | 232,924 | 180,522 | 182,302 | 188,396 | 176,487 | |||||||||||||||
Commercial and multifamily residential | 3,786,615 | 3,758,207 | 3,776,709 | 3,825,739 | 2,825,794 | |||||||||||||||
Total real estate | 4,019,539 | 3,938,729 | 3,959,011 | 4,014,135 | 3,002,281 | |||||||||||||||
Real estate construction: | ||||||||||||||||||||
One-to-four family residential | 211,629 | 206,181 | 208,441 | 200,518 | 145,419 | |||||||||||||||
Commercial and multifamily residential | 349,328 | 387,951 | 385,339 | 371,931 | 213,939 | |||||||||||||||
Total real estate construction | 560,957 | 594,132 | 593,780 | 572,449 | 359,358 | |||||||||||||||
Consumer | 327,863 | 326,402 | 323,631 | 334,190 | 323,913 | |||||||||||||||
Purchased credit impaired | 95,936 | 101,782 | 109,299 | 112,670 | 120,477 | |||||||||||||||
Subtotal loans | 8,558,442 | 8,499,537 | 8,387,883 | 8,410,768 | 6,541,235 | |||||||||||||||
Less: Net unearned income | (44,125 | ) | (45,430 | ) | (48,252 | ) | (52,111 | ) | (29,229 | ) | ||||||||||
Loans, net of unearned income | 8,514,317 | 8,454,107 | 8,339,631 | 8,358,657 | 6,512,006 | |||||||||||||||
Less: Allowance for loan and lease losses | (83,787 | ) | (80,150 | ) | (79,827 | ) | (75,646 | ) | (71,616 | ) | ||||||||||
Total loans, net | 8,430,530 | 8,373,957 | 8,259,804 | 8,283,011 | 6,440,390 | |||||||||||||||
Loans held for sale | $ | 5,275 | $ | 6,773 | $ | 4,312 | $ | 5,766 | $ | 7,802 |
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
Loan Portfolio Composition - Percentages | 2018 | 2018 | 2018 | 2017 | 2017 | ||||||||||
Commercial business | 41.7 | % | 41.9 | % | 40.8 | % | 40.4 | % | 42.0 | % | |||||
Real estate: | |||||||||||||||
One-to-four family residential | 2.7 | % | 2.1 | % | 2.2 | % | 2.3 | % | 2.7 | % | |||||
Commercial and multifamily residential | 44.5 | % | 44.4 | % | 45.3 | % | 45.8 | % | 43.3 | % | |||||
Total real estate | 47.2 | % | 46.5 | % | 47.5 | % | 48.1 | % | 46.0 | % | |||||
Real estate construction: | |||||||||||||||
One-to-four family residential | 2.5 | % | 2.4 | % | 2.5 | % | 2.4 | % | 2.2 | % | |||||
Commercial and multifamily residential | 4.1 | % | 4.6 | % | 4.6 | % | 4.4 | % | 3.3 | % | |||||
Total real estate construction | 6.6 | % | 7.0 | % | 7.1 | % | 6.8 | % | 5.5 | % | |||||
Consumer | 3.9 | % | 3.9 | % | 3.9 | % | 4.0 | % | 5.0 | % | |||||
Purchased credit impaired | 1.1 | % | 1.2 | % | 1.3 | % | 1.3 | % | 1.9 | % | |||||
Subtotal loans | 100.5 | % | 100.5 | % | 100.6 | % | 100.6 | % | 100.4 | % | |||||
Less: Net unearned income | (0.5 | )% | (0.5 | )% | (0.6 | )% | (0.6 | )% | (0.4 | )% | |||||
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, | ||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | ||||||||||||||||
Deposit Composition - Dollars | (dollars in thousands) | |||||||||||||||||||
Core deposits: | ||||||||||||||||||||
Demand and other non-interest bearing | $ | 5,250,222 | $ | 4,953,993 | $ | 4,927,226 | $ | 5,081,901 | $ | 4,119,950 | ||||||||||
Interest bearing demand | 1,260,543 | 1,278,686 | 1,328,756 | 1,265,212 | 1,009,378 | |||||||||||||||
Money market | 2,413,185 | 2,513,648 | 2,477,487 | 2,543,712 | 1,821,262 | |||||||||||||||
Savings | 908,945 | 875,707 | 886,171 | 861,941 | 772,858 | |||||||||||||||
Certificates of deposit, less than $250,000 | 251,792 | 266,662 | 277,545 | 286,791 | 276,051 | |||||||||||||||
Total core deposits | 10,084,687 | 9,888,696 | 9,897,185 | 10,039,557 | 7,999,499 | |||||||||||||||
Certificates of deposit, $250,000 or more | 90,387 | 91,578 | 96,333 | 100,399 | 84,105 | |||||||||||||||
Certificates of deposit insured by CDARS® (1) | 23,841 | 23,492 | 23,191 | 25,374 | 20,690 | |||||||||||||||
Brokered certificates of deposit | 65,476 | 68,870 | 76,931 | 78,481 | — | |||||||||||||||
Reciprocal money market accounts (1) | 340,044 | 311,935 | 302,544 | 289,031 | 237,421 | |||||||||||||||
Subtotal | 10,604,435 | 10,384,571 | 10,396,184 | 10,532,842 | 8,341,715 | |||||||||||||||
Premium (discount) resulting from acquisition date fair value adjustment | (478 | ) | (567 | ) | (661 | ) | (757 | ) | 2 | |||||||||||
Total deposits | $ | 10,603,957 | $ | 10,384,004 | $ | 10,395,523 | $ | 10,532,085 | $ | 8,341,717 |
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
Deposit Composition - Percentages | 2018 | 2018 | 2018 | 2017 | 2017 | ||||||||||
Core deposits: | |||||||||||||||
Demand and other non-interest bearing | 49.5 | % | 47.7 | % | 47.4 | % | 48.2 | % | 49.4 | % | |||||
Interest bearing demand | 11.9 | % | 12.3 | % | 12.8 | % | 12.0 | % | 12.1 | % | |||||
Money market | 22.8 | % | 24.2 | % | 23.8 | % | 24.2 | % | 21.8 | % | |||||
Savings | 8.6 | % | 8.4 | % | 8.5 | % | 8.2 | % | 9.3 | % | |||||
Certificates of deposit, less than $250,000 | 2.4 | % | 2.6 | % | 2.7 | % | 2.7 | % | 3.3 | % | |||||
Total core deposits | 95.2 | % | 95.2 | % | 95.2 | % | 95.3 | % | 95.9 | % | |||||
Certificates of deposit, $250,000 or more | 0.9 | % | 0.9 | % | 0.9 | % | 1.0 | % | 1.0 | % | |||||
Certificates of deposit insured by CDARS® (1) | 0.2 | % | 0.2 | % | 0.2 | % | 0.2 | % | 0.2 | % | |||||
Brokered certificates of deposit | 0.6 | % | 0.7 | % | 0.7 | % | 0.7 | % | — | % | |||||
Reciprocal money market accounts (1) | 3.1 | % | 3.0 | % | 3.0 | % | 2.8 | % | 2.9 | % | |||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
AVERAGE BALANCES AND RATES | ||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
September 30, 2018 | 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) | $ | 8,456,632 | $ | 110,925 | 5.25 | % | $ | 6,441,537 | $ | 80,136 | 4.98 | % | ||||||||||
Taxable securities | 2,336,405 | 14,654 | 2.51 | % | 1,784,407 | 8,718 | 1.95 | % | ||||||||||||||
Tax exempt securities (2) | 513,090 | 3,885 | 3.03 | % | 451,828 | 4,181 | 3.70 | % | ||||||||||||||
Interest-earning deposits with banks | 20,502 | 104 | 2.03 | % | 72,789 | 226 | 1.24 | % | ||||||||||||||
Total interest-earning assets | 11,326,629 | $ | 129,568 | 4.58 | % | 8,750,561 | $ | 93,261 | 4.26 | % | ||||||||||||
Other earning assets | 228,332 | 173,611 | ||||||||||||||||||||
Noninterest-earning assets | 1,250,170 | 770,833 | ||||||||||||||||||||
Total assets | $ | 12,805,131 | $ | 9,695,005 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||
Certificates of deposit | $ | 440,196 | $ | 544 | 0.49 | % | $ | 382,299 | $ | 92 | 0.10 | % | ||||||||||
Savings accounts | 889,793 | 31 | 0.01 | % | 766,540 | 19 | 0.01 | % | ||||||||||||||
Interest-bearing demand | 1,246,592 | 689 | 0.22 | % | 1,000,079 | 223 | 0.09 | % | ||||||||||||||
Money market accounts | 2,799,719 | 1,929 | 0.28 | % | 2,051,662 | 749 | 0.15 | % | ||||||||||||||
Total interest-bearing deposits | 5,376,300 | 3,193 | 0.24 | % | 4,200,580 | 1,083 | 0.10 | % | ||||||||||||||
FHLB advances | 167,531 | 966 | 2.31 | % | 33,687 | 163 | 1.94 | % | ||||||||||||||
Subordinated debentures | 35,530 | 468 | 5.27 | % | — | — | — | % | ||||||||||||||
Other borrowings | 41,636 | 152 | 1.46 | % | 51,669 | 128 | 0.99 | % | ||||||||||||||
Total interest-bearing liabilities | 5,620,997 | $ | 4,779 | 0.34 | % | 4,285,936 | $ | 1,374 | 0.13 | % | ||||||||||||
Noninterest-bearing deposits | 5,102,500 | 3,986,757 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 98,317 | 98,518 | ||||||||||||||||||||
Shareholders’ equity | 1,983,317 | 1,323,794 | ||||||||||||||||||||
Total liabilities & shareholders’ equity | $ | 12,805,131 | $ | 9,695,005 | ||||||||||||||||||
Net interest income (tax equivalent) | $ | 124,789 | $ | 91,887 | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.41 | % | 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 $2.5 million and $1.8 million for the three month periods ended September 30, 2018 and September 30, 2017, respectively. The incremental accretion on acquired loans was $3.2 million and $2.9 million for the three months ended September 30, 2018 and 2017, respectively. |
(2) | Tax-exempt income is calculated on a tax equivalent basis at a rate of 21% for 2018 and 35% for 2017. The tax equivalent yield adjustment to interest earned on loans was $1.2 million and $1.5 million for the three months ended September 30, 2018 and 2017, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $816 thousand and $1.5 million for the three month periods ended September 30, 2018 and 2017, respectively. |
AVERAGE BALANCES AND RATES | ||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
September 30, 2018 | June 30, 2018 | |||||||||||||||||||||
Average Balances | Interest Earned / Paid | Average Rate | Average Balances | Interest Earned / Paid | Average Rate | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Loans, net (1)(2) | $ | 8,456,632 | $ | 110,925 | 5.25 | % | $ | 8,389,230 | $ | 106,526 | 5.08 | % | ||||||||||
Taxable securities | 2,336,405 | 14,654 | 2.51 | % | 2,111,086 | 11,923 | 2.26 | % | ||||||||||||||
Tax exempt securities (2) | 513,090 | 3,885 | 3.03 | % | 517,206 | 3,877 | 3.00 | % | ||||||||||||||
Interest-earning deposits with banks | 20,502 | 104 | 2.03 | % | 35,285 | 151 | 1.71 | % | ||||||||||||||
Total interest-earning assets | 11,326,629 | $ | 129,568 | 4.58 | % | 11,052,807 | $ | 122,477 | 4.43 | % | ||||||||||||
Other earning assets | 228,332 | 221,141 | ||||||||||||||||||||
Noninterest-earning assets | 1,250,170 | 1,255,592 | ||||||||||||||||||||
Total assets | $ | 12,805,131 | $ | 12,529,540 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||
Certificates of deposit | $ | 440,196 | $ | 544 | 0.49 | % | $ | 464,217 | $ | 549 | 0.47 | % | ||||||||||
Savings accounts | 889,793 | 31 | 0.01 | % | 875,529 | 30 | 0.01 | % | ||||||||||||||
Interest-bearing demand | 1,246,592 | 689 | 0.22 | % | 1,295,409 | 608 | 0.19 | % | ||||||||||||||
Money market accounts | 2,799,719 | 1,929 | 0.28 | % | 2,755,714 | 1,385 | 0.20 | % | ||||||||||||||
Total interest-bearing deposits | 5,376,300 | 3,193 | 0.24 | % | 5,390,869 | 2,572 | 0.19 | % | ||||||||||||||
FHLB advances | 167,531 | 966 | 2.31 | % | 156,512 | 815 | 2.08 | % | ||||||||||||||
Subordinated debentures | 35,530 | 468 | 5.27 | % | 35,577 | 468 | 5.26 | % | ||||||||||||||
Other borrowings | 41,636 | 152 | 1.46 | % | 28,097 | 20 | 0.28 | % | ||||||||||||||
Total interest-bearing liabilities | 5,620,997 | $ | 4,779 | 0.34 | % | 5,611,055 | $ | 3,875 | 0.28 | % | ||||||||||||
Noninterest-bearing deposits | 5,102,500 | 4,873,953 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 98,317 | 89,980 | ||||||||||||||||||||
Shareholders’ equity | 1,983,317 | 1,954,552 | ||||||||||||||||||||
Total liabilities & shareholders’ equity | $ | 12,805,131 | $ | 12,529,540 | ||||||||||||||||||
Net interest income (tax equivalent) | $ | 124,789 | $ | 118,602 | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.41 | % | 4.29 | % |
(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 $2.5 million and $2.1 million for the three month periods ended September 30, 2018 and June 30, 2018, respectively. The incremental accretion on acquired loans was $3.2 million and $3.0 million for the three months ended September 30, 2018 and June 30, 2018, respectively. |
(2) | Tax-exempt income is calculated on a tax equivalent basis at a rate of 21% for 2018. The tax equivalent yield adjustment to interest earned on loans was $1.2 million and $1.1 million for the three months ended September 30, 2018 and June 30, 2018, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $816 thousand and $814 thousand for the three month periods ended September 30, 2018 and June 30, 2018, respectively. |
AVERAGE BALANCES AND RATES | ||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, 2018 | 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) | $ | 8,398,596 | $ | 321,542 | 5.10 | % | $ | 6,322,629 | $ | 232,680 | 4.91 | % | ||||||||||
Taxable securities | 2,202,497 | 39,285 | 2.38 | % | 1,835,693 | 29,172 | 2.12 | % | ||||||||||||||
Tax exempt securities (2) | 518,128 | 11,640 | 3.00 | % | 451,636 | 12,500 | 3.69 | % | ||||||||||||||
Interest-earning deposits with banks | 48,922 | 600 | 1.64 | % | 31,748 | 268 | 1.13 | % | ||||||||||||||
Total interest-earning assets | 11,168,143 | $ | 373,067 | 4.45 | % | 8,641,706 | $ | 274,620 | 4.24 | % | ||||||||||||
Other earning assets | 222,570 | 174,898 | ||||||||||||||||||||
Noninterest-earning assets | 1,255,965 | 772,865 | ||||||||||||||||||||
Total assets | $ | 12,646,678 | $ | 9,589,469 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||
Certificates of deposit | $ | 461,236 | $ | 1,619 | 0.47 | % | $ | 389,260 | $ | 282 | 0.10 | % | ||||||||||
Savings accounts | 881,207 | 102 | 0.02 | % | 753,577 | 57 | 0.01 | % | ||||||||||||||
Interest-bearing demand | 1,264,918 | 1,832 | 0.19 | % | 985,625 | 574 | 0.08 | % | ||||||||||||||
Money market accounts | 2,783,498 | 4,721 | 0.23 | % | 2,019,278 | 1,865 | 0.12 | % | ||||||||||||||
Total interest-bearing deposits | 5,390,859 | 8,274 | 0.20 | % | 4,147,740 | 2,778 | 0.09 | % | ||||||||||||||
FHLB advances | 150,054 | 2,351 | 2.09 | % | 103,369 | 979 | 1.26 | % | ||||||||||||||
Subordinated debentures | 35,577 | 1,404 | 5.26 | % | — | — | — | % | ||||||||||||||
Other borrowings | 43,453 | 288 | 0.88 | % | 54,577 | 383 | 0.94 | % | ||||||||||||||
Total interest-bearing liabilities | 5,619,943 | $ | 12,317 | 0.29 | % | 4,305,686 | $ | 4,140 | 0.13 | % | ||||||||||||
Noninterest-bearing deposits | 4,969,037 | 3,889,065 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 95,192 | 100,820 | ||||||||||||||||||||
Shareholders’ equity | 1,962,506 | 1,293,898 | ||||||||||||||||||||
Total liabilities & shareholders’ equity | $ | 12,646,678 | $ | 9,589,469 | ||||||||||||||||||
Net interest income (tax equivalent) | $ | 360,750 | $ | 270,480 | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.31 | % | 4.17 | % |
(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 $6.8 million and $5.2 million for the nine months ended September 30, 2018 and 2017, respectively. The incremental accretion on acquired loans was $9.9 million and $10.0 million for the nine months ended September 30, 2018 and 2017, respectively. |
(2) | Tax-exempt income is calculated on a tax equivalent basis at a rate of 21% for 2018 and 35% for 2017. The tax equivalent yield adjustment to interest earned on loans was $3.4 million and $4.3 million for the nine months ended September 30, 2018 and 2017, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $2.4 million and $4.4 million for the nine months ended September 30, 2018 and 2017, respectively. |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2018 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Operating net interest margin non-GAAP reconciliation: | (dollars in thousands) | |||||||||||||||||||
Net interest income (tax equivalent) (1) | $ | 124,789 | $ | 118,602 | $ | 91,887 | $ | 360,750 | $ | 270,480 | ||||||||||
Adjustments to arrive at operating net interest income (tax equivalent): | ||||||||||||||||||||
Incremental accretion income on FDIC purchased credit impaired loans | (585 | ) | (326 | ) | (972 | ) | (1,240 | ) | (3,842 | ) | ||||||||||
Incremental accretion income on other acquired loans | (2,643 | ) | (2,690 | ) | (1,903 | ) | (8,703 | ) | (6,207 | ) | ||||||||||
Premium amortization on acquired securities | 1,859 | 2,131 | 1,527 | 6,065 | 4,658 | |||||||||||||||
Interest reversals on nonaccrual loans | 477 | 253 | 311 | 1,147 | 1,323 | |||||||||||||||
Operating net interest income (tax equivalent) (1) | $ | 123,897 | $ | 117,970 | $ | 90,850 | $ | 358,019 | $ | 266,412 | ||||||||||
Average interest earning assets | $ | 11,326,629 | $ | 11,052,807 | $ | 8,750,561 | $ | 11,168,143 | $ | 8,641,706 | ||||||||||
Net interest margin (tax equivalent) (1) | 4.41 | % | 4.29 | % | 4.20 | % | 4.31 | % | 4.17 | % | ||||||||||
Operating net interest margin (tax equivalent) (1) | 4.38 | % | 4.27 | % | 4.15 | % | 4.27 | % | 4.11 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2018 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Operating efficiency ratio non-GAAP reconciliation: | (dollars in thousands) | |||||||||||||||||||
Noninterest expense (numerator A) | $ | 82,841 | $ | 84,643 | $ | 67,537 | $ | 253,471 | $ | 205,390 | ||||||||||
Adjustments to arrive at operating noninterest expense: | ||||||||||||||||||||
Acquisition-related expenses | (1,081 | ) | (2,822 | ) | (1,171 | ) | (8,168 | ) | (3,558 | ) | ||||||||||
Net benefit (cost) of operation of OREO and OPPO | (485 | ) | (758 | ) | (271 | ) | (1,239 | ) | (420 | ) | ||||||||||
FDIC clawback liability recovery | — | — | — | — | 54 | |||||||||||||||
Loss on asset disposals | (110 | ) | (1 | ) | — | (111 | ) | (14 | ) | |||||||||||
Termination of FDIC loss share agreements charge | — | — | — | — | (2,409 | ) | ||||||||||||||
State of Washington Business and Occupation (“B&O”) taxes | (1,478 | ) | (1,459 | ) | (1,394 | ) | (4,254 | ) | (3,159 | ) | ||||||||||
Operating noninterest expense (numerator B) | $ | 79,687 | $ | 79,603 | $ | 64,701 | $ | 239,699 | $ | 195,884 | ||||||||||
Net interest income (tax equivalent) (1) | $ | 124,789 | $ | 118,602 | $ | 91,887 | $ | 360,750 | $ | 270,480 | ||||||||||
Noninterest income | 21,019 | 23,692 | 37,067 | 67,854 | 86,061 | |||||||||||||||
Bank owned life insurance tax equivalent adjustment | 373 | 455 | 695 | 1,207 | 2,156 | |||||||||||||||
Total revenue (tax equivalent) (denominator A) | $ | 146,181 | $ | 142,749 | $ | 129,649 | $ | 429,811 | $ | 358,697 | ||||||||||
Operating net interest income (tax equivalent) (1) | $ | 123,897 | $ | 117,970 | $ | 90,850 | $ | 358,019 | $ | 266,412 | ||||||||||
Adjustments to arrive at operating noninterest income (tax equivalent): | ||||||||||||||||||||
Investment securities losses, net | 62 | 33 | — | 73 | — | |||||||||||||||
Gain on asset disposals | (29 | ) | (47 | ) | (38 | ) | (111 | ) | (323 | ) | ||||||||||
Mortgage loan repurchase liability adjustment | — | — | — | — | (573 | ) | ||||||||||||||
Change in FDIC loss-sharing asset | — | — | — | — | 447 | |||||||||||||||
Gain on sale of merchant card services portfolio | — | — | (14,000 | ) | — | (14,000 | ) | |||||||||||||
Operating noninterest income (tax equivalent) | 21,425 | 24,133 | 23,724 | 69,023 | 73,768 | |||||||||||||||
Total operating revenue (tax equivalent) (denominator B) | $ | 145,322 | $ | 142,103 | $ | 114,574 | $ | 427,042 | $ | 340,180 | ||||||||||
Efficiency ratio (tax equivalent) (numerator A/denominator A) | 56.67 | % | 59.29 | % | 52.09 | % | 58.97 | % | 57.26 | % | ||||||||||
Operating efficiency ratio (tax equivalent) (numerator B/denominator B) | 54.83 | % | 56.02 | % | 56.47 | % | 56.13 | % | 57.58 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2018 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Core noninterest expense ratio non-GAAP reconciliation: | (dollars in thousands) | |||||||||||||||||||
Noninterest expense (numerator A) | $ | 82,841 | $ | 84,643 | $ | 67,537 | $ | 253,471 | $ | 205,390 | ||||||||||
Adjustments to arrive at core noninterest expense: | ||||||||||||||||||||
FDIC clawback liability recovery | — | — | — | — | 54 | |||||||||||||||
Acquisition-related expenses | (1,081 | ) | (2,822 | ) | (1,171 | ) | (8,168 | ) | (3,558 | ) | ||||||||||
Net benefit (cost) of operation of OREO and OPPO (1) | — | — | (271 | ) | — | (420 | ) | |||||||||||||
Termination of FDIC loss share agreements charge | — | — | — | — | (2,409 | ) | ||||||||||||||
Core noninterest expense (numerator B) | $ | 81,760 | $ | 81,821 | $ | 66,095 | $ | 245,303 | $ | 199,057 | ||||||||||
Average assets (denominator) | $ | 12,805,131 | $ | 12,529,540 | $ | 9,695,005 | $ | 12,646,678 | $ | 9,589,469 | ||||||||||
Noninterest expense ratio (numerator A/denominator) (2) | 2.59 | % | 2.70 | % | 2.79 | % | 2.67 | % | 2.86 | % | ||||||||||
Core noninterest expense ratio (numerator B/denominator) (3) | 2.55 | % | 2.61 | % | 2.73 | % | 2.59 | % | 2.77 | % |
September 30, | June 30, | September 30, | ||||||||||
2018 | 2018 | 2017 | ||||||||||
Tangible common equity ratio and tangible book value per common share non-GAAP reconciliation: | (dollars in thousands) | |||||||||||
Shareholders’ equity (numerator A) | $ | 1,981,395 | $ | 1,964,881 | $ | 1,328,428 | ||||||
Adjustments to arrive at tangible common equity: | ||||||||||||
Goodwill | (765,842 | ) | (765,842 | ) | (382,762 | ) | ||||||
Other intangible assets, net | (48,827 | ) | (51,897 | ) | (13,845 | ) | ||||||
Tangible common equity (numerator B) | $ | 1,166,726 | $ | 1,147,142 | $ | 931,821 | ||||||
Total assets (denominator A) | $ | 12,956,596 | $ | 12,628,586 | $ | 9,814,578 | ||||||
Adjustments to arrive at tangible assets: | ||||||||||||
Goodwill | (765,842 | ) | (765,842 | ) | (382,762 | ) | ||||||
Other intangible assets, net | (48,827 | ) | (51,897 | ) | (13,845 | ) | ||||||
Tangible assets (denominator B) | $ | 12,141,927 | $ | 11,810,847 | $ | 9,417,971 | ||||||
Shareholders’ equity to total assets (numerator A/denominator A) | 15.29 | % | 15.56 | % | 13.54 | % | ||||||
Tangible common shareholders’ equity to tangible assets (numerator B/denominator B) | 9.61 | % | 9.71 | % | 9.89 | % | ||||||
Common shares outstanding (denominator C) | 73,260 | 73,245 | 58,376 | |||||||||
Book value per common share (numerator A/denominator C) | $ | 27.05 | $ | 26.83 | $ | 22.76 | ||||||
Tangible book value per common share (numerator B/denominator C) | $ | 15.93 | $ | 15.66 | $ | 15.96 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2018 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Return on average tangible common equity non-GAAP reconciliation: | (dollars in thousands) | |||||||||||||||||||
Net income (numerator A) | $ | 46,415 | $ | 41,749 | $ | 40,769 | $ | 128,134 | $ | 97,100 | ||||||||||
Adjustments to arrive at tangible income applicable to common shareholders: | ||||||||||||||||||||
Amortization of intangibles | 3,070 | 3,088 | 1,188 | 9,346 | 3,786 | |||||||||||||||
Tax effect on intangible amortization | (645 | ) | (649 | ) | (416 | ) | (1,963 | ) | (1,325 | ) | ||||||||||
Tangible income applicable to common shareholders (numerator B) | $ | 48,840 | $ | 44,188 | $ | 41,541 | 135,517 | $ | 99,561 | |||||||||||
Average shareholders’ equity (denominator A) | $ | 1,983,317 | $ | 1,954,552 | $ | 1,323,794 | 1,962,506 | $ | 1,293,898 | |||||||||||
Adjustments to arrive at average tangible common equity: | ||||||||||||||||||||
Average preferred equity | — | — | — | — | (89 | ) | ||||||||||||||
Average intangibles | (816,128 | ) | (819,211 | ) | (397,160 | ) | (819,215 | ) | (398,397 | ) | ||||||||||
Average tangible common equity (denominator B) | $ | 1,167,189 | $ | 1,135,341 | $ | 926,634 | $ | 1,143,291 | $ | 895,412 | ||||||||||
Return on average common equity (numerator A/denominator A) (1) | 9.36 | % | 8.54 | % | 12.32 | % | 8.71 | % | 10.01 | % | ||||||||||
Return on average tangible common equity (numerator B/denominator B) (2) | 16.74 | % | 15.57 | % | 17.93 | % | 15.80 | % | 14.83 | % |
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