(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
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)) |
Title of each class | Trading symbol | Name of each exchange on which registered | ||||||||||||
COLUMBIA BANKING SYSTEM, INC. | |||||||||||||||||
Date: | April 30, 2020 | /s/ CLINT E. STEIN | |||||||||||||||
Clint E. Stein | |||||||||||||||||
President and Chief Executive Officer |
March 31, 2020 | December 31, 2019 | |||||||||||||
(in thousands) | ||||||||||||||
Nonaccrual loans: | ||||||||||||||
Commercial loans: | ||||||||||||||
Commercial real estate | $ | 5,518 | $ | 3,799 | ||||||||||
Commercial business | 24,395 | 20,937 | ||||||||||||
Agriculture | 15,083 | 5,023 | ||||||||||||
Consumer loans: | ||||||||||||||
One-to-four family residential real estate | 2,643 | 3,292 | ||||||||||||
Other consumer | 8 | 9 | ||||||||||||
Total nonaccrual loans | 47,647 | 33,060 | ||||||||||||
OREO and other personal property owned | 510 | 552 | ||||||||||||
Total nonperforming assets | $ | 48,157 | $ | 33,612 |
Three Months Ended | ||||||||||||||||||||
March 31, 2020 | December 31, 2019 | March 31, 2019 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Prior year ending balance | $ | 83,968 | $ | 82,660 | $ | 83,369 | ||||||||||||||
CECL day 1 adjustment | 1,632 | — | — | |||||||||||||||||
Beginning balance | 85,600 | 82,660 | 83,369 | |||||||||||||||||
Charge-offs: | ||||||||||||||||||||
Commercial loans: | ||||||||||||||||||||
Commercial real estate | (101) | (452) | (678) | |||||||||||||||||
Commercial business | (1,684) | (2,845) | (1,506) | |||||||||||||||||
Agriculture | (4,726) | (51) | (78) | |||||||||||||||||
Construction | — | (10) | (195) | |||||||||||||||||
Consumer loans: | ||||||||||||||||||||
One-to-four family residential real estate | (10) | (192) | (481) | |||||||||||||||||
Other consumer | (268) | (18) | (50) | |||||||||||||||||
Total charge-offs | (6,789) | (3,568) | (2,988) | |||||||||||||||||
Recoveries: | ||||||||||||||||||||
Commercial loans: | ||||||||||||||||||||
Commercial real estate | 14 | 576 | 514 | |||||||||||||||||
Commercial business | 860 | 1,698 | 527 | |||||||||||||||||
Agriculture | 41 | 110 | 58 | |||||||||||||||||
Construction | 442 | 312 | 83 | |||||||||||||||||
Consumer loans: | ||||||||||||||||||||
One-to-four family residential real estate | 282 | 549 | 334 | |||||||||||||||||
Other consumer | 124 | 17 | 15 | |||||||||||||||||
Total recoveries | 1,763 | 3,262 | 1,531 | |||||||||||||||||
Net charge-offs | (5,026) | (306) | (1,457) | |||||||||||||||||
Provision for credit losses | 41,500 | 1,614 | 1,362 | |||||||||||||||||
Ending balance | $ | 122,074 | $ | 83,968 | $ | 83,274 | ||||||||||||||
Contacts: | Clint Stein, | ||||
President and | |||||
Chief Executive Officer | |||||
Investor Relations | |||||
InvestorRelations@columbiabank.com | |||||
253-305-1921 |
CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||||||
Columbia Banking System, Inc. | |||||||||||||||||||||||
Unaudited | March 31, | December 31, | |||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Cash and due from banks | $ | 190,399 | $ | 223,541 | |||||||||||||||||||
Interest-earning deposits with banks | 25,357 | 24,132 | |||||||||||||||||||||
Total cash and cash equivalents | 215,756 | 247,673 | |||||||||||||||||||||
Debt securities available for sale at fair value (amortized cost of $3,406,492 and $3,703,096, respectively) | 3,553,128 | 3,746,142 | |||||||||||||||||||||
Federal Home Loan Bank (“FHLB”) stock at cost | 38,280 | 48,120 | |||||||||||||||||||||
Loans held for sale | 9,701 | 17,718 | |||||||||||||||||||||
Loans, net of unearned income | 8,933,321 | 8,743,465 | |||||||||||||||||||||
Less: Allowance for credit losses | 122,074 | 83,968 | |||||||||||||||||||||
Loans, net | 8,811,247 | 8,659,497 | |||||||||||||||||||||
Interest receivable | 44,577 | 46,839 | |||||||||||||||||||||
Premises and equipment, net | 164,626 | 165,408 | |||||||||||||||||||||
Other real estate owned | 510 | 552 | |||||||||||||||||||||
Goodwill | 765,842 | 765,842 | |||||||||||||||||||||
Other intangible assets, net | 33,148 | 35,458 | |||||||||||||||||||||
Other assets | 401,688 | 346,275 | |||||||||||||||||||||
Total assets | $ | 14,038,503 | $ | 14,079,524 | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||
Noninterest-bearing | $ | 5,323,908 | $ | 5,328,146 | |||||||||||||||||||
Interest-bearing | 5,488,848 | 5,356,562 | |||||||||||||||||||||
Total deposits | 10,812,756 | 10,684,708 | |||||||||||||||||||||
FHLB advances and Federal Reserve Bank ("FRB") borrowings | 712,455 | 953,469 | |||||||||||||||||||||
Securities sold under agreements to repurchase | 29,252 | 64,437 | |||||||||||||||||||||
Subordinated debentures | 35,231 | 35,277 | |||||||||||||||||||||
Revolving line of credit | 5,000 | — | |||||||||||||||||||||
Other liabilities | 230,207 | 181,671 | |||||||||||||||||||||
Total liabilities | 11,824,901 | 11,919,562 | |||||||||||||||||||||
Commitments and contingent liabilities | |||||||||||||||||||||||
Shareholders’ equity: | |||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Preferred stock (no par value) | |||||||||||||||||||||||
Authorized shares | 2,000 | 2,000 | |||||||||||||||||||||
Common stock (no par value) | |||||||||||||||||||||||
Authorized shares | 115,000 | 115,000 | |||||||||||||||||||||
Issued | 73,759 | 73,577 | 1,651,399 | 1,650,753 | |||||||||||||||||||
Outstanding | 71,575 | 72,124 | |||||||||||||||||||||
Retained earnings | 495,830 | 519,676 | |||||||||||||||||||||
Accumulated other comprehensive income | 137,207 | 40,367 | |||||||||||||||||||||
Treasury stock at cost | 2,184 | 1,453 | (70,834) | (50,834) | |||||||||||||||||||
Total shareholders’ equity | 2,213,602 | 2,159,962 | |||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 14,038,503 | $ | 14,079,524 |
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | |||||||||||||||||||
Unaudited | March 31, | December 31, | March 31, | |||||||||||||||||
2020 | 2019 | 2019 | ||||||||||||||||||
Interest Income | (in thousands except per share amounts) | |||||||||||||||||||
Loans | $ | 107,366 | $ | 110,384 | $ | 108,416 | ||||||||||||||
Taxable securities | 21,088 | 20,074 | 17,415 | |||||||||||||||||
Tax-exempt securities | 2,302 | 2,498 | 2,969 | |||||||||||||||||
Deposits in banks | 141 | 153 | 88 | |||||||||||||||||
Total interest income | 130,897 | 133,109 | 128,888 | |||||||||||||||||
Interest Expense | ||||||||||||||||||||
Deposits | 3,642 | 5,809 | 4,498 | |||||||||||||||||
FHLB advances and FRB borrowings | 4,229 | 1,899 | 2,685 | |||||||||||||||||
Subordinated debentures | 468 | 467 | 468 | |||||||||||||||||
Other borrowings | 136 | 117 | 215 | |||||||||||||||||
Total interest expense | 8,475 | 8,292 | 7,866 | |||||||||||||||||
Net Interest Income | 122,422 | 124,817 | 121,022 | |||||||||||||||||
Provision for credit losses | 41,500 | 1,614 | 1,362 | |||||||||||||||||
Net interest income after provision for credit losses | 80,922 | 123,203 | 119,660 | |||||||||||||||||
Noninterest Income | ||||||||||||||||||||
Deposit account and treasury management fees | 7,788 | 8,665 | 8,980 | |||||||||||||||||
Card revenue | 3,518 | 3,767 | 3,662 | |||||||||||||||||
Financial services and trust revenue | 3,065 | 3,191 | 2,957 | |||||||||||||||||
Loan revenue | 4,590 | 3,625 | 2,389 | |||||||||||||||||
Bank owned life insurance | 1,596 | 1,650 | 1,519 | |||||||||||||||||
Investment securities gains, net | 249 | — | 1,847 | |||||||||||||||||
Other | 401 | 909 | 342 | |||||||||||||||||
Total noninterest income | 21,207 | 21,807 | 21,696 | |||||||||||||||||
Noninterest Expense | ||||||||||||||||||||
Compensation and employee benefits | 54,842 | 54,308 | 52,085 | |||||||||||||||||
Occupancy | 9,197 | 9,010 | 8,809 | |||||||||||||||||
Data processing | 4,840 | 4,792 | 4,669 | |||||||||||||||||
Legal and professional fees | 2,102 | 4,835 | 4,573 | |||||||||||||||||
Amortization of intangibles | 2,310 | 2,450 | 2,748 | |||||||||||||||||
Business and Occupation ("B&O") taxes | 624 | 1,234 | 1,876 | |||||||||||||||||
Advertising and promotion | 1,305 | 1,329 | 974 | |||||||||||||||||
Regulatory premiums | 34 | 18 | 984 | |||||||||||||||||
Net cost (benefit) of operation of other real estate owned | 12 | (10) | 113 | |||||||||||||||||
Other | 9,005 | 9,012 | 7,869 | |||||||||||||||||
Total noninterest expense | 84,271 | 86,978 | 84,700 | |||||||||||||||||
Income before income taxes | 17,858 | 58,032 | 56,656 | |||||||||||||||||
Provision for income taxes | 3,230 | 11,903 | 10,785 | |||||||||||||||||
Net Income | $ | 14,628 | $ | 46,129 | $ | 45,871 | ||||||||||||||
Earnings per common share | ||||||||||||||||||||
Basic | $ | 0.20 | $ | 0.64 | $ | 0.63 | ||||||||||||||
Diluted | $ | 0.20 | $ | 0.64 | $ | 0.63 | ||||||||||||||
Dividends declared per common share - regular | $ | 0.28 | $ | 0.28 | $ | 0.28 | ||||||||||||||
Dividends declared per common share - special | $ | 0.22 | $ | — | $ | 0.14 | ||||||||||||||
Dividends declared per common share - total | $ | 0.50 | $ | 0.28 | $ | 0.42 | ||||||||||||||
Weighted average number of common shares outstanding | 71,206 | 71,238 | 72,521 | |||||||||||||||||
Weighted average number of diluted common shares outstanding | 71,264 | 71,310 | 72,524 |
FINANCIAL STATISTICS | ||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | |||||||||||||||||||
Unaudited | March 31, | December 31, | March 31, | |||||||||||||||||
2020 | 2019 | 2019 | ||||||||||||||||||
Earnings | (dollars in thousands except per share amounts) | |||||||||||||||||||
Net interest income | $ | 122,422 | $ | 124,817 | $ | 121,022 | ||||||||||||||
Provision for credit losses | $ | 41,500 | $ | 1,614 | $ | 1,362 | ||||||||||||||
Noninterest income | $ | 21,207 | $ | 21,807 | $ | 21,696 | ||||||||||||||
Noninterest expense | $ | 84,271 | $ | 86,978 | $ | 84,700 | ||||||||||||||
Net income | $ | 14,628 | $ | 46,129 | $ | 45,871 | ||||||||||||||
Per Common Share | ||||||||||||||||||||
Earnings (basic) | $ | 0.20 | $ | 0.64 | $ | 0.63 | ||||||||||||||
Earnings (diluted) | $ | 0.20 | $ | 0.64 | $ | 0.63 | ||||||||||||||
Book value | $ | 30.93 | $ | 29.95 | $ | 28.39 | ||||||||||||||
Tangible book value per common share (1) | $ | 19.76 | $ | 18.84 | $ | 17.39 | ||||||||||||||
Averages | ||||||||||||||||||||
Total assets | $ | 13,995,632 | $ | 13,750,840 | $ | 13,048,041 | ||||||||||||||
Interest-earning assets | $ | 12,487,550 | $ | 12,231,779 | $ | 11,561,627 | ||||||||||||||
Loans | $ | 8,815,755 | $ | 8,742,246 | $ | 8,406,664 | ||||||||||||||
Securities and FHLB stock | $ | 3,618,567 | $ | 3,453,554 | $ | 3,140,201 | ||||||||||||||
Deposits | $ | 10,622,379 | $ | 10,959,434 | $ | 10,271,016 | ||||||||||||||
Interest-bearing deposits | $ | 5,383,203 | $ | 5,610,850 | $ | 5,226,396 | ||||||||||||||
Interest-bearing liabilities | $ | 6,375,931 | $ | 6,058,319 | $ | 5,802,965 | ||||||||||||||
Noninterest-bearing deposits | $ | 5,239,176 | $ | 5,348,584 | $ | 5,044,620 | ||||||||||||||
Shareholders’ equity | $ | 2,193,051 | $ | 2,170,879 | $ | 2,044,832 | ||||||||||||||
Financial Ratios | ||||||||||||||||||||
Return on average assets | 0.42 | % | 1.34 | % | 1.41 | % | ||||||||||||||
Return on average common equity | 2.67 | % | 8.50 | % | 8.97 | % | ||||||||||||||
Return on average tangible common equity (1) | 4.72 | % | 14.05 | % | 15.57 | % | ||||||||||||||
Average equity to average assets | 15.67 | % | 15.79 | % | 15.67 | % | ||||||||||||||
Shareholders' equity to total assets | 15.77 | % | 15.34 | % | 15.99 | % | ||||||||||||||
Tangible common shareholders’ equity to tangible assets (1) | 10.68 | % | 10.23 | % | 10.44 | % | ||||||||||||||
Net interest margin (tax equivalent) | 4.00 | % | 4.11 | % | 4.32 | % | ||||||||||||||
Efficiency ratio (tax equivalent) (2) | 57.73 | % | 58.34 | % | 58.33 | % | ||||||||||||||
Operating efficiency ratio (tax equivalent) (1) | 57.24 | % | 58.07 | % | 57.54 | % | ||||||||||||||
Noninterest expense ratio | 2.41 | % | 2.53 | % | 2.60 | % | ||||||||||||||
March 31, | December 31, | |||||||||||||||||||
Period end | 2020 | 2019 | ||||||||||||||||||
Total assets | $ | 14,038,503 | $ | 14,079,524 | ||||||||||||||||
Loans, net of unearned income | $ | 8,933,321 | $ | 8,743,465 | ||||||||||||||||
Allowance for credit losses | $ | 122,074 | $ | 83,968 | ||||||||||||||||
Securities and FHLB stock | $ | 3,591,408 | $ | 3,794,262 | ||||||||||||||||
Deposits | $ | 10,812,756 | $ | 10,684,708 | ||||||||||||||||
Shareholders’ equity | $ | 2,213,602 | $ | 2,159,962 | ||||||||||||||||
Nonperforming assets | ||||||||||||||||||||
Nonaccrual loans | $ | 47,647 | $ | 33,060 | ||||||||||||||||
Other real estate owned (“OREO”) and other personal property owned (“OPPO”) | 510 | 552 | ||||||||||||||||||
Total nonperforming assets | $ | 48,157 | $ | 33,612 | ||||||||||||||||
Nonperforming loans to period-end loans | 0.53 | % | 0.38 | % | ||||||||||||||||
Nonperforming assets to period-end assets | 0.34 | % | 0.24 | % | ||||||||||||||||
Allowance for credit losses to period-end loans | 1.37 | % | 0.96 | % | ||||||||||||||||
Net loan charge-offs (recoveries) (for the three months ended) | $ | 5,026 | $ | 306 |
QUARTERLY FINANCIAL STATISTICS | ||||||||||||||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | |||||||||||||||||||||||||||||||
Unaudited | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||||
2020 | 2019 | 2019 | 2019 | 2019 | ||||||||||||||||||||||||||||
Earnings | (dollars in thousands except per share amounts) | |||||||||||||||||||||||||||||||
Net interest income | $ | 122,422 | $ | 124,817 | $ | 122,450 | $ | 125,116 | $ | 121,022 | ||||||||||||||||||||||
Provision for credit losses | $ | 41,500 | $ | 1,614 | $ | 299 | $ | 218 | $ | 1,362 | ||||||||||||||||||||||
Noninterest income | $ | 21,207 | $ | 21,807 | $ | 28,030 | $ | 25,648 | $ | 21,696 | ||||||||||||||||||||||
Noninterest expense | $ | 84,271 | $ | 86,978 | $ | 87,076 | $ | 86,728 | $ | 84,700 | ||||||||||||||||||||||
Net income | $ | 14,628 | $ | 46,129 | $ | 50,727 | $ | 51,724 | $ | 45,871 | ||||||||||||||||||||||
Per Common Share | ||||||||||||||||||||||||||||||||
Earnings (basic) | $ | 0.20 | $ | 0.64 | $ | 0.70 | $ | 0.71 | $ | 0.63 | ||||||||||||||||||||||
Earnings (diluted) | $ | 0.20 | $ | 0.64 | $ | 0.70 | $ | 0.71 | $ | 0.63 | ||||||||||||||||||||||
Book value | $ | 30.93 | $ | 29.95 | $ | 29.90 | $ | 29.26 | $ | 28.39 | ||||||||||||||||||||||
Averages | ||||||||||||||||||||||||||||||||
Total assets | $ | 13,995,632 | $ | 13,750,840 | $ | 13,459,774 | $ | 13,096,413 | $ | 13,048,041 | ||||||||||||||||||||||
Interest-earning assets | $ | 12,487,550 | $ | 12,231,779 | $ | 11,941,578 | $ | 11,606,727 | $ | 11,561,627 | ||||||||||||||||||||||
Loans | $ | 8,815,755 | $ | 8,742,246 | $ | 8,694,592 | $ | 8,601,819 | $ | 8,406,664 | ||||||||||||||||||||||
Securities and FHLB stock | $ | 3,618,567 | $ | 3,453,554 | $ | 3,102,213 | $ | 2,969,749 | $ | 3,140,201 | ||||||||||||||||||||||
Deposits | $ | 10,622,379 | $ | 10,959,434 | $ | 10,668,767 | $ | 10,186,371 | $ | 10,271,016 | ||||||||||||||||||||||
Interest-bearing deposits | $ | 5,383,203 | $ | 5,610,850 | $ | 5,517,171 | $ | 5,174,875 | $ | 5,226,396 | ||||||||||||||||||||||
Interest-bearing liabilities | $ | 6,375,931 | $ | 6,058,319 | $ | 5,989,042 | $ | 5,841,425 | $ | 5,802,965 | ||||||||||||||||||||||
Noninterest-bearing deposits | $ | 5,239,176 | $ | 5,348,584 | $ | 5,151,596 | $ | 5,011,496 | $ | 5,044,620 | ||||||||||||||||||||||
Shareholders’ equity | $ | 2,193,051 | $ | 2,170,879 | $ | 2,152,916 | $ | 2,096,157 | $ | 2,044,832 | ||||||||||||||||||||||
Financial Ratios | ||||||||||||||||||||||||||||||||
Return on average assets | 0.42 | % | 1.34 | % | 1.51 | % | 1.58 | % | 1.41 | % | ||||||||||||||||||||||
Return on average common equity | 2.67 | % | 8.50 | % | 9.42 | % | 9.87 | % | 8.97 | % | ||||||||||||||||||||||
Average equity to average assets | 15.67 | % | 15.79 | % | 16.00 | % | 16.01 | % | 15.67 | % | ||||||||||||||||||||||
Shareholders’ equity to total assets | 15.77 | % | 15.34 | % | 15.71 | % | 16.30 | % | 15.99 | % | ||||||||||||||||||||||
Net interest margin (tax equivalent) | 4.00 | % | 4.11 | % | 4.14 | % | 4.40 | % | 4.32 | % | ||||||||||||||||||||||
Period-end | ||||||||||||||||||||||||||||||||
Total assets | $ | 14,038,503 | $ | 14,079,524 | $ | 13,757,760 | $ | 13,090,808 | $ | 13,064,436 | ||||||||||||||||||||||
Loans, net of unearned income | $ | 8,933,321 | $ | 8,743,465 | $ | 8,756,355 | $ | 8,646,990 | $ | 8,520,798 | ||||||||||||||||||||||
Allowance for credit losses | $ | 122,074 | $ | 83,968 | $ | 82,660 | $ | 80,517 | $ | 83,274 | ||||||||||||||||||||||
Securities and FHLB stock | $ | 3,591,408 | $ | 3,794,262 | $ | 3,397,252 | $ | 2,894,218 | $ | 3,052,870 | ||||||||||||||||||||||
Deposits | $ | 10,812,756 | $ | 10,684,708 | $ | 10,855,716 | $ | 10,211,599 | $ | 10,369,009 | ||||||||||||||||||||||
Shareholders’ equity | $ | 2,213,602 | $ | 2,159,962 | $ | 2,161,577 | $ | 2,133,638 | $ | 2,088,620 | ||||||||||||||||||||||
Goodwill | $ | 765,842 | $ | 765,842 | $ | 765,842 | $ | 765,842 | $ | 765,842 | ||||||||||||||||||||||
Other intangible assets, net | $ | 33,148 | $ | 35,458 | $ | 37,908 | $ | 40,540 | $ | 43,189 | ||||||||||||||||||||||
Nonperforming assets | ||||||||||||||||||||||||||||||||
Nonaccrual loans | $ | 47,647 | $ | 33,060 | $ | 37,021 | $ | 39,038 | $ | 52,615 | ||||||||||||||||||||||
OREO and OPPO | 510 | 552 | 625 | 1,118 | 6,075 | |||||||||||||||||||||||||||
Total nonperforming assets | $ | 48,157 | $ | 33,612 | $ | 37,646 | $ | 40,156 | $ | 58,690 | ||||||||||||||||||||||
Nonperforming loans to period-end loans | 0.53 | % | 0.38 | % | 0.42 | % | 0.45 | % | 0.62 | % | ||||||||||||||||||||||
Nonperforming assets to period-end assets | 0.34 | % | 0.24 | % | 0.27 | % | 0.31 | % | 0.45 | % | ||||||||||||||||||||||
Allowance for credit losses to period-end loans | 1.37 | % | 0.96 | % | 0.94 | % | 0.93 | % | 0.98 | % | ||||||||||||||||||||||
Net loan charge-offs (recoveries) | $ | 5,026 | $ | 306 | $ | (1,844) | $ | 2,975 | $ | 1,457 |
LOAN PORTFOLIO COMPOSITION | ||||||||||||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||||||||||||
Unaudited | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||||||||||
2020 | 2019 | 2019 | 2019 | 2019 | ||||||||||||||||||||||||||||
Loan Portfolio Composition - Dollars | (dollars in thousands) | |||||||||||||||||||||||||||||||
Commercial loans: | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | 3,969,974 | $ | 3,945,853 | $ | 3,746,365 | $ | 3,689,282 | $ | 3,676,921 | ||||||||||||||||||||||
Commercial business | 3,169,668 | 2,989,613 | 3,057,669 | 3,059,066 | 2,996,412 | |||||||||||||||||||||||||||
Agriculture | 754,491 | 765,371 | 777,619 | 744,481 | 663,394 | |||||||||||||||||||||||||||
Construction | 308,186 | 361,533 | 479,171 | 446,101 | 458,946 | |||||||||||||||||||||||||||
Consumer loans: | ||||||||||||||||||||||||||||||||
One-to-four family residential real estate | 690,506 | 637,325 | 654,077 | 667,037 | 683,227 | |||||||||||||||||||||||||||
Other consumer | 40,496 | 43,770 | 41,454 | 41,023 | 41,898 | |||||||||||||||||||||||||||
Total loans | 8,933,321 | 8,743,465 | 8,756,355 | 8,646,990 | 8,520,798 | |||||||||||||||||||||||||||
Less: Allowance for credit losses | (122,074) | (83,968) | (82,660) | (80,517) | (83,274) | |||||||||||||||||||||||||||
Total loans, net | $ | 8,811,247 | $ | 8,659,497 | $ | 8,673,695 | $ | 8,566,473 | $ | 8,437,524 | ||||||||||||||||||||||
Loans held for sale | $ | 9,701 | $ | 17,718 | $ | 15,036 | $ | 12,189 | $ | 4,017 |
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
Loan Portfolio Composition - Percentages | 2020 | 2019 | 2019 | 2019 | 2019 | |||||||||||||||||||||||||||
Commercial loans: | ||||||||||||||||||||||||||||||||
Commercial real estate | 44.5 | % | 45.1 | % | 42.7 | % | 42.6 | % | 43.1 | % | ||||||||||||||||||||||
Commercial business | 35.5 | % | 34.2 | % | 34.9 | % | 35.4 | % | 35.2 | % | ||||||||||||||||||||||
Agriculture | 8.4 | % | 8.8 | % | 8.9 | % | 8.6 | % | 7.8 | % | ||||||||||||||||||||||
Construction | 3.4 | % | 4.1 | % | 5.5 | % | 5.2 | % | 5.4 | % | ||||||||||||||||||||||
Consumer loans: | ||||||||||||||||||||||||||||||||
One-to-four family residential real estate | 7.7 | % | 7.3 | % | 7.5 | % | 7.7 | % | 8.0 | % | ||||||||||||||||||||||
Other consumer | 0.5 | % | 0.5 | % | 0.5 | % | 0.5 | % | 0.5 | % | ||||||||||||||||||||||
Total loans | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
DEPOSIT COMPOSITION | ||||||||||||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
2020 | 2019 | 2019 | 2019 | 2019 | ||||||||||||||||||||||||||||
Deposit Composition - Dollars | (dollars in thousands) | |||||||||||||||||||||||||||||||
Demand and other noninterest-bearing | $ | 5,323,908 | $ | 5,328,146 | $ | 5,320,435 | $ | 5,082,219 | $ | 5,106,568 | ||||||||||||||||||||||
Money market | 2,313,717 | 2,322,644 | 2,295,229 | 2,240,522 | 2,311,937 | |||||||||||||||||||||||||||
Interest-bearing demand | 1,131,874 | 1,150,437 | 1,059,502 | 1,058,545 | 1,078,849 | |||||||||||||||||||||||||||
Savings | 905,931 | 882,050 | 892,438 | 887,172 | 896,458 | |||||||||||||||||||||||||||
Interest-bearing public funds, other than certificates of deposit | 405,810 | 301,203 | 629,797 | 270,398 | 269,156 | |||||||||||||||||||||||||||
Certificates of deposit, less than $250,000 | 214,449 | 218,764 | 223,249 | 228,920 | 236,014 | |||||||||||||||||||||||||||
Certificates of deposit, $250,000 or more | 109,659 | 151,995 | 107,506 | 105,782 | 101,965 | |||||||||||||||||||||||||||
Certificates of deposit insured by CDARS® | 17,171 | 17,065 | 17,252 | 16,559 | 22,890 | |||||||||||||||||||||||||||
Brokered certificates of deposit | 12,259 | 12,259 | 18,852 | 40,502 | 51,375 | |||||||||||||||||||||||||||
Reciprocal money market accounts | 377,980 | 300,158 | 291,542 | 281,247 | 294,096 | |||||||||||||||||||||||||||
Subtotal | 10,812,758 | 10,684,721 | 10,855,802 | 10,211,866 | 10,369,308 | |||||||||||||||||||||||||||
Valuation adjustment resulting from acquisition accounting | (2) | (13) | (86) | (267) | (299) | |||||||||||||||||||||||||||
Total deposits | $ | 10,812,756 | $ | 10,684,708 | $ | 10,855,716 | $ | 10,211,599 | $ | 10,369,009 |
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||||||
Deposit Composition - Percentages | 2020 | 2019 | 2019 | 2019 | 2019 | |||||||||||||||||||||||||||
Demand and other noninterest-bearing | 49.2 | % | 49.9 | % | 49.0 | % | 49.8 | % | 49.2 | % | ||||||||||||||||||||||
Money market | 21.4 | % | 21.7 | % | 21.1 | % | 21.9 | % | 22.3 | % | ||||||||||||||||||||||
Interest-bearing demand | 10.5 | % | 10.8 | % | 9.8 | % | 10.4 | % | 10.4 | % | ||||||||||||||||||||||
Savings | 8.4 | % | 8.3 | % | 8.2 | % | 8.7 | % | 8.6 | % | ||||||||||||||||||||||
Interest-bearing public funds, other than certificates of deposit | 3.8 | % | 2.8 | % | 5.8 | % | 2.7 | % | 2.6 | % | ||||||||||||||||||||||
Certificates of deposit, less than $250,000 | 2.0 | % | 2.0 | % | 2.1 | % | 2.2 | % | 2.3 | % | ||||||||||||||||||||||
Certificates of deposit, $250,000 or more | 1.0 | % | 1.4 | % | 1.0 | % | 1.0 | % | 1.0 | % | ||||||||||||||||||||||
Certificates of deposit insured by CDARS® | 0.2 | % | 0.2 | % | 0.2 | % | 0.2 | % | 0.2 | % | ||||||||||||||||||||||
Brokered certificates of deposit | 0.1 | % | 0.1 | % | 0.2 | % | 0.4 | % | 0.5 | % | ||||||||||||||||||||||
Reciprocal money market accounts | 3.4 | % | 2.8 | % | 2.6 | % | 2.7 | % | 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 | |||||||||||||||||||||||||||||||||||||
March 31, 2020 | March 31, 2019 | |||||||||||||||||||||||||||||||||||||
Average Balances | Interest Earned / Paid | Average Rate | Average Balances | Interest Earned / Paid | Average Rate | |||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||
Loans, net (1)(2) | $ | 8,815,755 | $ | 108,665 | 4.96 | % | $ | 8,406,664 | $ | 109,715 | 5.29 | % | ||||||||||||||||||||||||||
Taxable securities | 3,209,110 | 21,088 | 2.64 | % | 2,637,436 | 17,415 | 2.68 | % | ||||||||||||||||||||||||||||||
Tax exempt securities (2) | 409,457 | 2,914 | 2.86 | % | 502,765 | 3,758 | 3.03 | % | ||||||||||||||||||||||||||||||
Interest-earning deposits with banks | 53,228 | 141 | 1.07 | % | 14,762 | 88 | 2.42 | % | ||||||||||||||||||||||||||||||
Total interest-earning assets | 12,487,550 | 132,808 | 4.28 | % | 11,561,627 | 130,976 | 4.59 | % | ||||||||||||||||||||||||||||||
Other earning assets | 232,361 | 232,077 | ||||||||||||||||||||||||||||||||||||
Noninterest-earning assets | 1,275,721 | 1,254,337 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 13,995,632 | $ | 13,048,041 | ||||||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||||
Money market accounts (3) | $ | 2,633,931 | $ | 1,728 | 0.26 | % | $ | 2,585,983 | $ | 2,585 | 0.41 | % | ||||||||||||||||||||||||||
Interest-bearing demand (3) | 1,125,691 | 484 | 0.17 | % | 1,074,595 | 364 | 0.14 | % | ||||||||||||||||||||||||||||||
Savings accounts (3) | 897,276 | 43 | 0.02 | % | 896,514 | 43 | 0.02 | % | ||||||||||||||||||||||||||||||
Interest-bearing public funds, other than certificates of deposit (3) | 355,401 | 903 | 1.02 | % | 262,765 | 930 | 1.44 | % | ||||||||||||||||||||||||||||||
Certificates of deposit | 370,904 | 484 | 0.52 | % | 406,539 | 576 | 0.57 | % | ||||||||||||||||||||||||||||||
Total interest-bearing deposits | 5,383,203 | 3,642 | 0.27 | % | 5,226,396 | 4,498 | 0.35 | % | ||||||||||||||||||||||||||||||
FHLB advances and FRB borrowings | 909,110 | 4,229 | 1.87 | % | 499,428 | 2,685 | 2.18 | % | ||||||||||||||||||||||||||||||
Subordinated debentures | 35,253 | 468 | 5.34 | % | 35,438 | 468 | 5.36 | % | ||||||||||||||||||||||||||||||
Other borrowings and interest-bearing liabilities | 48,365 | 136 | 1.13 | % | 41,703 | 215 | 2.09 | % | ||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 6,375,931 | 8,475 | 0.53 | % | 5,802,965 | 7,866 | 0.55 | % | ||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 5,239,176 | 5,044,620 | ||||||||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 187,474 | 155,624 | ||||||||||||||||||||||||||||||||||||
Shareholders’ equity | 2,193,051 | 2,044,832 | ||||||||||||||||||||||||||||||||||||
Total liabilities & shareholders’ equity | $ | 13,995,632 | $ | 13,048,041 | ||||||||||||||||||||||||||||||||||
Net interest income (tax equivalent) | $ | 124,333 | $ | 123,110 | ||||||||||||||||||||||||||||||||||
Net interest margin (tax equivalent) | 4.00 | % | 4.32 | % |
AVERAGE BALANCES AND RATES | ||||||||||||||||||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||
March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Average Balances | Interest Earned / Paid | Average Rate | Average Balances | Interest Earned / Paid | Average Rate | |||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||
Loans, net (1)(2) | $ | 8,815,755 | $ | 108,665 | 4.96 | % | $ | 8,742,246 | $ | 111,754 | 5.07 | % | ||||||||||||||||||||||||||
Taxable securities | 3,209,110 | 21,088 | 2.64 | % | 3,011,521 | 20,074 | 2.64 | % | ||||||||||||||||||||||||||||||
Tax exempt securities (2) | 409,457 | 2,914 | 2.86 | % | 442,033 | 3,163 | 2.84 | % | ||||||||||||||||||||||||||||||
Interest-earning deposits with banks | 53,228 | 141 | 1.07 | % | 35,979 | 153 | 1.69 | % | ||||||||||||||||||||||||||||||
Total interest-earning assets | 12,487,550 | 132,808 | 4.28 | % | 12,231,779 | 135,144 | 4.38 | % | ||||||||||||||||||||||||||||||
Other earning assets | 232,361 | 231,456 | ||||||||||||||||||||||||||||||||||||
Noninterest-earning assets | 1,275,721 | 1,287,605 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 13,995,632 | $ | 13,750,840 | ||||||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||||
Money market accounts | $ | 2,633,931 | $ | 1,728 | 0.26 | % | $ | 2,649,404 | $ | 2,277 | 0.34 | % | ||||||||||||||||||||||||||
Interest-bearing demand | 1,125,691 | 484 | 0.17 | % | 1,065,531 | 446 | 0.17 | % | ||||||||||||||||||||||||||||||
Savings accounts | 897,276 | 43 | 0.02 | % | 888,895 | 47 | 0.02 | % | ||||||||||||||||||||||||||||||
Interest-bearing public funds, other than certificates of deposit | 355,401 | 903 | 1.02 | % | 616,938 | 2,413 | 1.55 | % | ||||||||||||||||||||||||||||||
Certificates of deposit | 370,904 | 484 | 0.52 | % | 390,082 | 626 | 0.64 | % | ||||||||||||||||||||||||||||||
Total interest-bearing deposits | 5,383,203 | 3,642 | 0.27 | % | 5,610,850 | 5,809 | 0.41 | % | ||||||||||||||||||||||||||||||
FHLB advances and FRB borrowings | 909,110 | 4,229 | 1.87 | % | 379,975 | 1,899 | 1.98 | % | ||||||||||||||||||||||||||||||
Subordinated debentures | 35,253 | 468 | 5.34 | % | 35,299 | 467 | 5.25 | % | ||||||||||||||||||||||||||||||
Other borrowings and interest-bearing liabilities | 48,365 | 136 | 1.13 | % | 32,195 | 117 | 1.44 | % | ||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 6,375,931 | 8,475 | 0.53 | % | 6,058,319 | 8,292 | 0.54 | % | ||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 5,239,176 | 5,348,584 | ||||||||||||||||||||||||||||||||||||
Other noninterest-bearing liabilities | 187,474 | 173,058 | ||||||||||||||||||||||||||||||||||||
Shareholders’ equity | 2,193,051 | 2,170,879 | ||||||||||||||||||||||||||||||||||||
Total liabilities & shareholders’ equity | $ | 13,995,632 | $ | 13,750,840 | ||||||||||||||||||||||||||||||||||
Net interest income (tax equivalent) | $ | 124,333 | $ | 126,852 | ||||||||||||||||||||||||||||||||||
Net interest margin (tax equivalent) | 4.00 | % | 4.11 | % |
Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
2020 | 2019 | 2019 | ||||||||||||||||||
Operating net interest margin non-GAAP reconciliation: | (dollars in thousands) | |||||||||||||||||||
Net interest income (tax equivalent) (1) | $ | 124,333 | $ | 126,852 | $ | 123,110 | ||||||||||||||
Adjustments to arrive at operating net interest income (tax equivalent): | ||||||||||||||||||||
Incremental accretion income on acquired loans (2) | (1,491) | (2,316) | (2,035) | |||||||||||||||||
Premium amortization on acquired securities | 1,127 | 1,204 | 1,779 | |||||||||||||||||
Interest reversals on nonaccrual loans | 788 | 209 | 626 | |||||||||||||||||
Operating net interest income (tax equivalent) (1) | $ | 124,757 | $ | 125,949 | $ | 123,480 | ||||||||||||||
Average interest earning assets | $ | 12,487,550 | $ | 12,231,779 | $ | 11,561,627 | ||||||||||||||
Net interest margin (tax equivalent) (1) | 4.00 | % | 4.11 | % | 4.32 | % | ||||||||||||||
Operating net interest margin (tax equivalent) (1) | 4.02 | % | 4.09 | % | 4.33 | % |
Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
2020 | 2019 | 2019 | ||||||||||||||||||
Operating efficiency ratio non-GAAP reconciliation: | (dollars in thousands) | |||||||||||||||||||
Noninterest expense (numerator A) | $ | 84,271 | $ | 86,978 | $ | 84,700 | ||||||||||||||
Adjustments to arrive at operating noninterest expense: | ||||||||||||||||||||
Net benefit (cost) of operation of OREO and OPPO | (4) | 10 | (114) | |||||||||||||||||
Loss on asset disposals | (4) | — | — | |||||||||||||||||
Business and Occupation (“B&O”) taxes | (624) | (1,234) | (1,876) | |||||||||||||||||
Operating noninterest expense (numerator B) | $ | 83,639 | $ | 85,754 | $ | 82,710 | ||||||||||||||
Net interest income (tax equivalent) (1) | $ | 124,333 | $ | 126,852 | $ | 123,110 | ||||||||||||||
Noninterest income | 21,207 | 21,807 | 21,696 | |||||||||||||||||
Bank owned life insurance tax equivalent adjustment | 424 | 439 | 404 | |||||||||||||||||
Total revenue (tax equivalent) (denominator A) | $ | 145,964 | $ | 149,098 | $ | 145,210 | ||||||||||||||
Operating net interest income (tax equivalent) (1) | $ | 124,757 | $ | 125,949 | $ | 123,480 | ||||||||||||||
Adjustments to arrive at operating noninterest income (tax equivalent): | ||||||||||||||||||||
Investment securities loss (gain), net | (249) | — | (1,847) | |||||||||||||||||
Gain on asset disposals | (21) | (530) | — | |||||||||||||||||
Operating noninterest income (tax equivalent) | 21,361 | 21,716 | 20,253 | |||||||||||||||||
Total operating revenue (tax equivalent) (denominator B) | $ | 146,118 | $ | 147,665 | $ | 143,733 | ||||||||||||||
Efficiency ratio (tax equivalent) (numerator A/denominator A) | 57.73 | % | 58.34 | % | 58.33 | % | ||||||||||||||
Operating efficiency ratio (tax equivalent) (numerator B/denominator B) | 57.24 | % | 58.07 | % | 57.54 | % |
Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
2020 | 2019 | 2019 | ||||||||||||||||||
Pre-tax, pre-provision income: | (in thousands) | |||||||||||||||||||
Income before income taxes | $ | 17,858 | $ | 58,032 | $ | 56,656 | ||||||||||||||
Provision for credit losses | 41,500 | 1,614 | 1,362 | |||||||||||||||||
Pre-tax, pre-provision income | $ | 59,358 | $ | 59,646 | $ | 58,018 |
March 31, | December 31, | March 31, | ||||||||||||||||||
2020 | 2019 | 2019 | ||||||||||||||||||
Tangible common equity ratio and tangible book value per common share non-GAAP reconciliation: | (dollars in thousands except per share amounts) | |||||||||||||||||||
Shareholders’ equity (numerator A) | $ | 2,213,602 | $ | 2,159,962 | $ | 2,088,620 | ||||||||||||||
Adjustments to arrive at tangible common equity: | ||||||||||||||||||||
Goodwill | (765,842) | (765,842) | (765,842) | |||||||||||||||||
Other intangible assets, net | (33,148) | (35,458) | (43,189) | |||||||||||||||||
Tangible common equity (numerator B) | $ | 1,414,612 | $ | 1,358,662 | $ | 1,279,589 | ||||||||||||||
Total assets (denominator A) | $ | 14,038,503 | $ | 14,079,524 | $ | 13,064,436 | ||||||||||||||
Adjustments to arrive at tangible assets: | ||||||||||||||||||||
Goodwill | (765,842) | (765,842) | (765,842) | |||||||||||||||||
Other intangible assets, net | (33,148) | (35,458) | (43,189) | |||||||||||||||||
Tangible assets (denominator B) | $ | 13,239,513 | $ | 13,278,224 | $ | 12,255,405 | ||||||||||||||
Shareholders’ equity to total assets (numerator A/denominator A) | 15.77 | % | 15.34 | % | 15.99 | % | ||||||||||||||
Tangible common shareholders’ equity to tangible assets (numerator B/denominator B) | 10.68 | % | 10.23 | % | 10.44 | % | ||||||||||||||
Common shares outstanding (denominator C) | 71,575 | 72,124 | 73,565 | |||||||||||||||||
Book value per common share (numerator A/denominator C) | $ | 30.93 | $ | 29.95 | $ | 28.39 | ||||||||||||||
Tangible book value per common share (numerator B/denominator C) | $ | 19.76 | $ | 18.84 | $ | 17.39 |
Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||||||||
2020 | 2019 | 2019 | ||||||||||||||||||
Return on average tangible common equity non-GAAP reconciliation: | (dollars in thousands) | |||||||||||||||||||
Net income (numerator A) | $ | 14,628 | $ | 46,129 | $ | 45,871 | ||||||||||||||
Adjustments to arrive at tangible income applicable to common shareholders: | ||||||||||||||||||||
Amortization of intangibles | 2,310 | 2,450 | 2,748 | |||||||||||||||||
Tax effect on intangible amortization | (485) | (515) | (577) | |||||||||||||||||
Tangible income applicable to common shareholders (numerator B) | $ | 16,453 | $ | 48,064 | $ | 48,042 | ||||||||||||||
Average shareholders’ equity (denominator A) | $ | 2,193,051 | $ | 2,170,879 | $ | 2,044,832 | ||||||||||||||
Adjustments to arrive at average tangible common equity: | ||||||||||||||||||||
Average intangibles | (800,079) | (802,446) | (810,376) | |||||||||||||||||
Average tangible common equity (denominator B) | $ | 1,392,972 | $ | 1,368,433 | $ | 1,234,456 | ||||||||||||||
Return on average common equity (numerator A/denominator A) (1) | 2.67 | % | 8.50 | % | 8.97 | % | ||||||||||||||
Return on average tangible common equity (numerator B/denominator B) (2) | 4.72 | % | 14.05 | % | 15.57 | % |
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