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Columbia Banking System Announces Second Quarter 2019 Results, and Quarterly Cash Dividend

TACOMA, Wash., July 25, 2019 /PRNewswire/ --

Columbia Banking System Logo. (PRNewsFoto/Columbia Banking System, Inc.)

Highlights

  • Record quarterly net income of $51.7 million and diluted earnings per share of $0.71, inclusive of $4.9 million of loan interest recoveries related to nonaccrual loans and $3.0 million in bank-owned life insurance benefits
  • Net interest margin of 4.40%, an increase of 8 basis points from the linked quarter
  • Net loans increased $126.2 million, or 5.92% on an annualized basis from record second quarter loan production of $400.7 million
  • Nonperforming assets to period end assets ratio improved for the sixth consecutive quarter to 0.31%
  • Repurchased 624 thousand shares of common stock during the quarter
  • Regular cash dividend declared of $0.28 per share

Hadley Robbins, President and Chief Executive Officer of Columbia Banking System and Columbia Bank (COLB) ("Columbia"), said today upon the release of Columbia's second quarter 2019 earnings, "We are quite pleased with the strong but disciplined loan growth in the quarter. That disciplined approach to our lending also comes through in the excellent credit quality of the portfolio at the midway point of 2019. We are confident that our focus on driving sustainable revenue growth combined with a disciplined approach to expense management will continue to drive long term shareholder value."

Balance Sheet

Total assets at June 30, 2019 were $13.09 billion, an increase of $26.4 million from the linked quarter. Loans were $8.65 billion, up $126.2 million, or 5.9% annualized, from March 31, 2019 as a result of loan originations of $400.7 million and increased seasonal line utilization partially offset by payments. Securities available for sale were $2.86 billion at June 30, 2019, a decrease of $162.9 million from $3.03 billion at March 31, 2019 as earning assets rotated into loans. Total deposits at June 30, 2019 were $10.21 billion, a decrease of $157.4 million from March 31, 2019. Core deposits comprised 96% of total deposits and were $9.77 billion at June 30, 2019, a decrease of $131.2 million from March 31, 2019. Deposit mix remained fairly consistent from March 31, 2019 with 50% noninterest-bearing and 50% interest-bearing. The average cost of total deposits for the quarter was 20 basis points, an increase of 2 basis points from the first quarter of 2019, on an actual/actual basis. For additional information regarding this calculation, see the "Net Interest Margin" section.

Clint Stein, Columbia's Executive Vice President and Chief Operating Officer, stated, "Our bankers continue to excel in a very competitive business environment by delivering record first half loan production." Mr. Stein continued, "Their performance is both a testament to their capabilities and impressive given their continued adherence to our credit disciplines."

Income Statement

Net Interest Income

Net interest income for the second quarter of 2019 was $125.1 million, an increase of $4.1 million and $8.4 million from the linked quarter and the prior year period, respectively. The increase in net interest income for the linked quarter was primarily due to $4.9 million of interest recoveries on nonaccrual loans received in the second quarter of 2019 related to two lending relationships. Partially offsetting these loan interest recoveries, interest expense on Federal Home Loan Bank ("FHLB") advances increased due to both higher average borrowings and higher average rates compared to the linked quarter. The increase in net interest income over the prior year period was primarily due to the previously mentioned loan interest recoveries. In addition, interest income on loans and taxable securities increased due to both higher average balances and higher rates. For additional information regarding net interest income, see the "Net Interest Margin" section and the "Average Balances and Rates" tables.

Noninterest Income

Noninterest income was $25.6 million for the second quarter of 2019, an increase of $4.0 million from the first quarter of 2019. The linked quarter increase was principally due to $3.0 million in bank-owned life insurance ("BOLI") benefits and a $667 thousand gain on disposal of loans realized during the second quarter. Compared to the second quarter of 2018, noninterest income increased $2.0 million. The increase from the prior year period was due to the previously noted BOLI benefits and the gain on disposal of loans during the quarter, partially offset by lower card revenue during the current quarter because, as of July 1, 2018, we became subject to the interchange fee cap imposed under the Dodd-Frank Act.

Noninterest Expense

Total noninterest expense for the second quarter of 2019 was $86.7 million, an increase of $2.0 million from the first quarter of 2019. The increase in noninterest expense was a result of higher legal and professional fees and other expenses which were partially offset by a decrease in Other Real Estate Owned ("OREO") expense. The increase in professional expense was primarily due to expenses related to the on-going digital corporate initiative, while other expenses increased $1.8 million as a result of increases in off-balance sheet reserves and sponsorships during the quarter. These increases in noninterest expense were partially offset by a $705 thousand net benefit of OREO in the second quarter, due to a gain on the sale of OREO, compared to a cost of OREO of $113 thousand for the linked quarter.

Compared to the second quarter of 2018, noninterest expense increased by $2.1 million. After removing acquisition-related expenses of $2.8 million from the second quarter of 2018, year over year noninterest expense increased $4.9 million, or 6%. This increase was primarily driven by higher compensation and employee benefits and legal and professional expenses partially offset by a decrease in OREO expenses. Salary expense increased as a result of the rise in the number of employees compared to June 30, 2018. Legal and professional fees were $2.6 million higher in the second quarter of 2019 primarily due to expenses related to the digital corporate initiative. These increases in expenses were partially offset by a net benefit on OREO in the second quarter of 2019, as previously noted, compared to a net cost of $758 thousand during the second quarter of 2018.

Net Interest Margin

Beginning January 2019, our net interest margin was calculated using the actual number of days on an actual/actual basis. This change was done to provide more meaningful trend information for our net interest margin regardless of the number of days in the period. Prior periods, which were previously reported on a 30/360 basis, have been restated to conform to the current basis.

Columbia's net interest margin (tax equivalent) for the second quarter of 2019 was 4.40%, an increase of 8 basis points and 10 basis points from the linked quarter and prior year period, respectively. The increase in the net interest margin (tax equivalent) compared to the linked quarter was driven by the previously noted $4.9 million of loan interest recoveries, or 17 basis points, partially offset by lower rates on taxable securities and higher average rates on FHLB advances. Compared to the prior year period, the increased net interest margin (tax equivalent) was driven by the previously noted interest recoveries and higher rates on the loan portfolio, partially offset by higher rates on our deposits and borrowings.

Columbia's operating net interest margin (tax equivalent)(2) was 4.38% for the second quarter of 2019, which increased 5 and 10 basis points compared to the linked quarter and the prior year period, respectively. The increases in the operating net interest margin for the current quarter compared to the linked quarter and the prior year quarter were due to the items previously noted in the preceding paragraph.

The following table shows the impact to interest income resulting from income accretion on acquired loan portfolios as well as the net interest margin and operating net interest margin:



Three Months Ended


Six Months Ended



June 30,


March 31,


December 31,


September 30,


June 30,


June 30,


June 30,



2019


2019


2018


2018


2018


2019


2018



(dollars in thousands)

Incremental accretion income due to:















FDIC purchased credit impaired loans


$

579



$

288



$

395



$

585



$

326



$

867



$

655


Other acquired loans


2,084



1,747



2,218



2,643



2,690



3,831



6,060


Incremental accretion income


$

2,663



$

2,035



$

2,613



$

3,228



$

3,016



$

4,698



$

6,715

















Net interest margin (tax equivalent) (1)


4.40

%


4.32

%


4.36

%


4.37

%


4.30

%


4.36

%


4.29

%

Operating net interest margin (tax equivalent) (1)(2)


4.38

%


4.33

%


4.34

%


4.34

%


4.28

%


4.36

%


4.26

%


__________

(1)

Beginning January 2019, net interest margin (tax equivalent) and operating net interest margin (tax equivalent) were calculated using the actual number of days on an actual/actual basis. This change was done to provide more meaningful trend information for our net interest margin regardless of the number of days in the period. Prior periods, which were previously reported on a 30/360 basis, have been restated to conform to the current basis.

(2)

Operating net interest margin (tax equivalent) is a non-GAAP financial measure. See the section titled "Non-GAAP Financial Measures" in this earnings release for the reconciliation of operating net interest margin (tax equivalent) to net interest margin.

Asset Quality

At June 30, 2019, nonperforming assets to total assets were 0.31% compared to 0.45% at March 31, 2019. Total nonperforming assets decreased $18.5 million from the linked quarter due to a decrease in both nonaccrual loans and OREO.

Andy McDonald, Columbia's Executive Vice President and Chief Credit Officer, commented, "I'm really proud of our bankers and their consistent disciplined approach to managing credit risk, especially our Special Credits team. The reduction in nonperforming assets combined with interest recoveries of $4.9 million made it an exemplary quarter."

The following table sets forth information regarding nonaccrual loans and total nonperforming assets:



June 30, 2019


March 31, 2019


December 31, 2018



(in thousands)

Nonaccrual loans:







Commercial business


$

23,997



$

35,577



$

35,513


Real estate:







One-to-four family residential


860



923



1,158


Commercial and multifamily residential


11,843



13,301



14,904


Total real estate


12,703



14,224



16,062


Real estate construction:







One-to-four family residential






318


Consumer


2,338



2,814



2,949


Total nonaccrual loans


39,038



52,615



54,842


OREO and other personal property owned


1,118



6,075



6,049


Total nonperforming assets


$

40,156



$

58,690



$

60,891


The following table provides an analysis of the Company's allowance for loan and lease losses:



Three Months Ended


Six Months Ended



June 30,
2019


March 31,
2019


June 30,
2018


June 30,
2019


June 30,
2018



(in thousands)

Beginning balance, loans excluding PCI loans


$

80,029



$

79,758



$

74,162



$

79,758



$

68,739


Beginning balance, PCI loans


3,245



3,611



5,665



3,611



6,907


Beginning balance


83,274



83,369



79,827



83,369



75,646


Charge-offs:











Commercial business


(4,118)



(1,249)



(5,775)



(5,367)



(8,252)


One-to-four family residential real estate




(2)





(2)




Commercial and multifamily residential real estate










(223)


One-to-four family residential real estate construction




(170)





(170)




Consumer


(354)



(478)



(232)



(832)



(496)


Purchased credit impaired


(815)



(1,089)



(1,235)



(1,904)



(2,578)


Total charge-offs


(5,287)



(2,988)



(7,242)



(8,275)



(11,549)


Recoveries:











Commercial business


547



480



1,543



1,027



2,345


One-to-four family residential real estate


20



17



196



37



368


Commercial and multifamily residential real estate


33



31



640



64



799


One-to-four family residential real estate construction


661



60



14



721



33


Commercial and multifamily residential real estate construction


1







1




Consumer


178



238



270



416



530


Purchased credit impaired


872



705



927



1,577



2,151


Total recoveries


2,312



1,531



3,590



3,843



6,226


Net charge-offs


(2,975)



(1,457)



(3,652)



(4,432)



(5,323)


Provision for loan and lease losses, excluding PCI loans


251



1,344



4,550



1,595



11,525


Provision (recapture) for loan and lease losses, PCI loans


(33)



18



(575)



(15)



(1,698)


Provision for loan and lease losses


218



1,362



3,975



1,580



9,827


Ending balance, loans excluding PCI loans


77,248



80,029



75,368



77,248



75,368


Ending balance, PCI loans


3,269



3,245



4,782



3,269



4,782


Ending balance


$

80,517



$

83,274



$

80,150



$

80,517



$

80,150


The allowance for loan and lease losses to period end loans was 0.93% at June 30, 2019 compared to 0.98% at March 31, 2019. For the second quarter of 2019, Columbia recorded a net provision for loan and lease losses of $218 thousand compared to a net provision of $1.4 million for the linked quarter and a net provision of $4.0 million for the comparable quarter last year. The net provision for loan and lease losses recorded during the current quarter consisted of $251 thousand of provision expense for loans, excluding PCI loans, and a provision recapture of $33 thousand for PCI loans.

Organizational Update

During the first six months of 2019, the Bank received the following accolades:

  • For the 13th consecutive year, named as one of Washington's Best Workplaces by Puget Sound Business Journal;
  • Winner of the 2018 Corporate Citizenship Award for midsize companies in Washington state from the Puget Sound Business Journal;
  • Selected as Best Bank and Best Large Business in The Best of South Sound reader's choice poll for 2019 by South Sound Magazine;
  • Received the Corporate Award of the Year for work with Small Business Association Loans to minority owned businesses from the Oregon Association of Minority Entrepreneurs;
  • Selected as one of the Best Banks in the Best of The Mid-Valley, in the annual reader's poll by the Salem Statesman Journal;
  • Columbia Bank's Board of Directors was awarded the Governance Award for their service to the Bank and the community by Seattle Business Magazine;
  • Recognized as one of the Best Places to Work in Idaho by Populus Marketing Research;
  • Awarded the 2018 National Association of Secretaries of State Medallion for outstanding work to improve lives in Washington communities from The State of Washington Secretary of State's Office, and
  • Selected as one of America's Best Banks of 2019 among the nation's 100 largest publicly traded banks and thrifts by Forbes.

Cash Dividend Announcement

Columbia will pay a regular cash dividend of $0.28 per common share on August 21, 2019 to shareholders of record as of the close of business on August 7, 2019.

Conference Call Information

Columbia's management will discuss the second quarter 2019 financial results on a conference call scheduled for Thursday, July 25, 2019 at 10:00 a.m. Pacific Daylight Time (1:00 p.m. EDT). Interested parties may join the live-streamed event by using the site:

https://engage.vevent.com/rt/columbiabankingsysteminc~072519

The conference call can also be accessed on Thursday, July 25, 2019 at 10:00 a.m. Pacific Daylight Time (1:00 p.m. EDT) by calling 888-286-8956; Conference ID: 5179848.

A replay of the call can be accessed beginning Friday, July 26, 2019 using the site:
https://engage.vevent.com/rt/columbiabankingsysteminc~072519

About Columbia

Headquartered in Tacoma, Washington, Columbia Banking System, Inc. is the holding company of Columbia Bank, a Washington state-chartered full-service commercial bank with locations throughout Washington, Oregon and Idaho. For the 13th consecutive year, the bank was named in 2019 as one of Puget Sound Business Journal's "Washington's Best Workplaces." For the 8th consecutive year, Columbia was included in the 2019 Forbes America's Best Banks list.

More information about Columbia can be found on its website at www.columbiabank.com.

Note Regarding Forward-Looking Statements

This news release includes forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements include, but are not limited to, descriptions of Columbia's management's expectations regarding future events and developments such as future operating results, growth in loans and deposits, continued success of Columbia's style of banking and the strength of the local economy. The words "will," "believe," "expect," "intend," "should," and "anticipate" or the negative of these words or words of similar construction are intended in part to help identify forward looking statements. Future events are difficult to predict, and the expectations described above are necessarily subject to risks and uncertainties, many of which are outside our control, that may cause actual results to differ materially and adversely. In addition to discussions about risks and uncertainties set forth from time to time in Columbia's filings with the Securities and Exchange Commission, available at the SEC's website at www.sec.gov and the Company's website at www.columbiabank.com, include the "Risk Factors," "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of our annual reports on Form 10-K and quarterly reports on Form 10-Q, (as applicable), factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following:  (1) local, national and international economic conditions may be less favorable than expected or have a more direct and pronounced effect on Columbia than expected and adversely affect Columbia's ability to continue its internal growth at historical rates and maintain the quality of its earning assets; (2) changes in interest rates could significantly reduce net interest income and negatively affect funding sources; (3) projected business increases following strategic expansion or opening or acquiring new branches may be lower than expected; (4) costs or difficulties related to the integration of acquisitions may be greater than expected; (5) competitive pressure among financial institutions may increase significantly; (6) failure to maintain effective internal controls over financial reporting or disclosure controls and procedures may adversely affect our business; (7) reliance on and cost of technology may increase; and (8) legislation or regulatory requirements or changes may adversely affect the businesses in which Columbia is engaged. We believe the expectations reflected in our forward-looking statements are reasonable, based on information available to us on the date hereof. However, given the described uncertainties and risks, we cannot guarantee our future performance or results of operations and you should not place undue reliance on these forward-looking statements which speak only as of the date hereof. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the federal securities laws. The factors noted above and the risks and uncertainties described in our SEC filings should be considered when reading any forward-looking statements in this release.

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







June 30,


March 31,


December 31,








2019


2019


2018








(in thousands)

ASSETS



Cash and due from banks







$

224,327



$

178,591



$

260,180


Interest-earning deposits with banks







34,332



33,482



17,407


Total cash and cash equivalents







258,659



212,073



277,587


Debt securities available for sale at fair value








2,864,418



3,027,270



3,167,448


Federal Home Loan Bank ("FHLB") stock at cost








29,800



25,600



25,960


Loans held for sale







12,189



4,017



3,849


Loans, net of unearned income







8,646,990



8,520,798



8,391,511


Less: allowance for loan and lease losses








80,517



83,274



83,369


Loans, net







8,566,473



8,437,524



8,308,142


Interest receivable







46,878



46,835



45,323


Premises and equipment, net







167,295



168,139



168,788


Other real estate owned







1,118



6,075



6,019


Goodwill







765,842



765,842



765,842


Other intangible assets, net







40,540



43,189



45,937


Other assets







337,596



327,872



280,250


Total assets







$

13,090,808



$

13,064,436



$

13,095,145


LIABILITIES AND SHAREHOLDERS' EQUITY







Deposits:












Noninterest-bearing







$

5,082,219



$

5,106,568



$

5,227,216


Interest-bearing







5,129,380



5,262,441



5,230,910


Total deposits







10,211,599



10,369,009



10,458,126


FHLB advances







495,496



390,510



399,523


Securities sold under agreements to repurchase








50,226



23,018



61,094


Subordinated debentures







35,370



35,416



35,462


Other liabilities







164,479



157,863



107,291


Total liabilities







10,957,170



10,975,816



11,061,496


Commitments and contingent liabilities













June 30,


March 31,


December 31,








2019


2019


2018








(in thousands)







Preferred stock (no par value)












Authorized shares

2,000



2,000



2,000








Common stock (no par value)












Authorized shares

115,000



115,000



115,000








Issued

73,548



73,565



73,249








Outstanding

72,924



73,565



73,249



1,644,922



1,642,977



1,642,246


Retained earnings







463,429



442,597



426,708


Accumulated other comprehensive income (loss)







47,150



3,046



(35,305)


Treasury stock at cost

624







(21,863)






Total shareholders' equity







2,133,638



2,088,620



2,033,649


Total liabilities and shareholders' equity








$

13,090,808



$

13,064,436



$

13,095,145


 


CONSOLIDATED STATEMENTS OF INCOME

Columbia Banking System, Inc.


Three Months Ended


Six Months Ended

Unaudited


June 30,


March 31,


June 30,


June 30,


June 30,



2019


2019


2018


2019


2018

Interest Income


(in thousands except per share amounts)

Loans


$

116,585



$

108,416



$

105,412



$

225,001



$

208,439


Taxable securities


15,918



17,415



11,923



33,333



24,631


Tax-exempt securities


2,712



2,969



3,063



5,681



6,127


Deposits in banks


207



88



151



295



496


Total interest income


135,422



128,888



120,549



264,310



239,693


Interest Expense











Deposits


4,976



4,498



2,572



9,474



5,081


FHLB advances


4,708



2,685



815



7,393



1,385


Subordinated debentures


468



468



468



936



936


Other borrowings


154



215



20



369



136


Total interest expense


10,306



7,866



3,875



18,172



7,538


Net Interest Income


125,116



121,022



116,674



246,138



232,155


Provision for loan and lease losses


218



1,362



3,975



1,580



9,827


Net interest income after provision for loan and lease losses


124,898



119,660



112,699



244,558



222,328


Noninterest Income











Deposit account and treasury management fees


9,035



8,980



8,683



18,015



17,423


Card revenue


3,763



3,662



6,616



7,425



12,429


Financial services and trust revenue


3,425



2,957



3,219



6,382



5,949


Loan revenue


3,596



2,389



3,054



5,985



6,240


Bank owned life insurance


1,597



1,519



1,712



3,116



3,138


Investment securities gains (losses), net


285



1,847



(33)



2,132



(11)


Other


3,947



342



441



4,289



1,667


Total noninterest income


25,648



21,696



23,692



47,344



46,835


Noninterest Expense











Compensation and employee benefits


52,015



52,085



48,949



104,100



99,519


Occupancy


8,712



8,809



9,276



17,521



19,397


Data processing


4,601



4,669



5,221



9,270



10,491


Legal and professional fees


6,554



4,573



4,171



11,127



7,408


Amortization of intangibles


2,649



2,748



3,088



5,397



6,276


Business and Occupation ("B&O") taxes (1)


1,411



1,876



1,459



3,287



2,776


Advertising and promotion


870



974



1,622



1,844



3,051


Regulatory premiums


956



984



937



1,940



1,874


Net cost (benefit) of operation of other real estate owned


(705)



113



758



(592)



759


Other (1)


9,665



7,869



9,162



17,534



19,079


Total noninterest expense


86,728



84,700



84,643



171,428



170,630


Income before income taxes


63,818



56,656



51,748



120,474



98,533


Provision for income taxes


12,094



10,785



9,999



22,879



16,814


Net Income


$

51,724



$

45,871



$

41,749



$

97,595



$

81,719


Earnings per common share











Basic


$

0.71



$

0.63



$

0.57



$

1.33



$

1.12


Diluted


$

0.71



$

0.63



$

0.57



$

1.33



$

1.12


Dividends declared per common share - regular


$

0.28



$

0.28



$

0.26



$

0.56



$

0.48


Dividends declared per common share - special


0.14



0.14





0.28




   Dividends declared per common share - total


$

0.42



$

0.42



$

0.26



$

0.84



$

0.48


Weighted average number of common shares outstanding


72,451



72,521



72,385



72,486



72,343


Weighted average number of diluted common shares outstanding


72,451



72,524



72,390



72,487



72,347



__________

(1)

Beginning the first quarter of 2019, B&O taxes were reported separately from other taxes, licenses and fees, which are now reported under "other noninterest expense." Prior periods have been reclassified to conform to current period presentation.

 

FINANCIAL STATISTICS



Columbia Banking System, Inc.


Three Months Ended


Six Months Ended

Unaudited


June 30,


March 31,


June 30,


June 30,


June 30,



2019


2019


2018


2019


2018

Earnings


(dollars in thousands except per share amounts)

Net interest income


$

125,116



$

121,022



$

116,674



$

246,138



$

232,155


Provision for loan and lease losses


$

218



$

1,362



$

3,975



$

1,580



$

9,827


Noninterest income


$

25,648



$

21,696



$

23,692



$

47,344



$

46,835


Noninterest expense


$

86,728



$

84,700



$

84,643



$

171,428



$

170,630


Acquisition-related expense (included in noninterest expense)


$



$



$

2,822



$



$

7,087


Net income


$

51,724



$

45,871



$

41,749



$

97,595



$

81,719


Per Common Share











Earnings (basic)


$

0.71



$

0.63



$

0.57



$

1.33



$

1.12


Earnings (diluted)


$

0.71



$

0.63



$

0.57



$

1.33



$

1.12


Book value


$

29.26



$

28.39



$

26.83



$

29.26



$

26.83


Tangible book value per common share (1)


$

18.20



$

17.39



$

15.66



$

18.20



$

15.66


Averages











Total assets


$

13,096,413



$

13,048,041



$

12,529,540



$

13,072,360



$

12,566,138


Interest-earning assets


$

11,606,727



$

11,561,627



$

11,052,807



$

11,584,301



$

11,087,587


Loans


$

8,601,819



$

8,406,664



$

8,389,230



$

8,504,781



$

8,369,097


Securities, including equity securities and FHLB stock


$

2,969,749



$

3,140,201



$

2,628,292



$

3,054,504



$

2,655,122


Deposits


$

10,186,371



$

10,271,016



$

10,264,822



$

10,228,459



$

10,299,459


Interest-bearing deposits


$

5,174,875



$

5,226,396



$

5,390,869



$

5,200,493



$

5,398,259


Interest-bearing liabilities


$

5,841,425



$

5,802,965



$

5,611,055



$

5,822,301



$

5,619,408


Noninterest-bearing deposits


$

5,011,496



$

5,044,620



$

4,873,953



$

5,027,966



$

4,901,200


Shareholders' equity


$

2,096,157



$

2,044,832



$

1,954,552



$

2,070,636



$

1,951,928


Financial Ratios











Return on average assets


1.58

%


1.41

%


1.33

%


1.49

%


1.30

%

Return on average common equity


9.87

%


8.97

%


8.54

%


9.43

%


8.37

%

Return on average tangible common equity (1)


16.71

%


15.57

%


15.57

%


16.15

%


15.33

%

Average equity to average assets


16.01

%


15.67

%


15.60

%


15.84

%


15.53

%

Shareholders equity to total assets


16.30

%


15.99

%


15.56

%


16.30

%


15.56

%

Tangible common shareholders' equity to tangible assets (1)


10.80

%


10.44

%


9.71

%


10.80

%


9.71

%

Net interest margin (tax equivalent) (2)


4.40

%


4.32

%


4.30

%


4.36

%


4.29

%

Efficiency ratio (tax equivalent) (3)


56.57

%


58.33

%


59.29

%


57.43

%


60.16

%

Operating efficiency ratio (tax equivalent) (1)


56.34

%


57.54

%


56.02

%


56.93

%


56.80

%

Noninterest expense ratio


2.65

%


2.60

%


2.70

%


2.62

%


2.72

%

Core noninterest expense ratio (1)


2.65

%


2.60

%


2.61

%


2.62

%


2.60

%



















June 30,


March 31,


December 31,





Period end


2019


2019


2018





Total assets


$

13,090,808



$

13,064,436



$

13,095,145






Loans, net of unearned income


$

8,646,990



$

8,520,798



$

8,391,511






Allowance for loan and lease losses


$

80,517



$

83,274



$

83,369






Securities, including equity securities and FHLB stock


$

2,894,218



$

3,052,870



$

3,193,408






Deposits


$

10,211,599



$

10,369,009



$

10,458,126






Core deposits


$

9,767,776



$

9,898,982



$

9,973,840






Shareholders' equity


$

2,133,638



$

2,088,620



$

2,033,649






Nonperforming assets











Nonaccrual loans


$

39,038



$

52,615



$

54,842






Other real estate owned ("OREO") and other personal property owned ("OPPO")


1,118



6,075



6,049






Total nonperforming assets


$

40,156



$

58,690



$

60,891






Nonperforming loans to period-end loans


0.45

%


0.62

%


0.65

%





Nonperforming assets to period-end assets


0.31

%


0.45

%


0.46

%





Allowance for loan and lease losses to period-end loans


0.93

%


0.98

%


0.99

%





Net loan charge-offs (for the three months ended)


$

2,975



$

1,457



$

2,207








__________

(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)

Beginning January 2019, net interest margin was calculated using the actual number of days and on an actual/actual basis. This change was done to provide more meaningful trend information for our net interest margin regardless of the number of days in the period. Prior periods, which were previously reported on a 30/360 basis, have been restated to conform to the current basis.

(3)

Noninterest expense divided by the sum of net interest income on a tax equivalent basis and noninterest income on a tax equivalent basis.

 


QUARTERLY FINANCIAL STATISTICS



Columbia Banking System, Inc.


Three Months Ended

Unaudited


June 30,


March 31,


December 31,


September 30,


June 30,



2019


2019


2018


2018


2018

Earnings


(dollars in thousands except per share amounts)

Net interest income


$

125,116



$

121,022



$

123,888



$

122,796



$

116,674


Provision for loan and lease losses


$

218



$

1,362



$

1,789



$

3,153



$

3,975


Noninterest income


$

25,648



$

21,696



$

20,402



$

21,019



$

23,692


Noninterest expense


$

86,728



$

84,700



$

87,019



$

82,841



$

84,643


Acquisition-related expense (included in noninterest expense)


$



$



$

493



$

1,081



$

2,822


Net income


$

51,724



$

45,871



$

44,748



$

46,415



$

41,749


Per Common Share











Earnings (basic)


$

0.71



$

0.63



$

0.61



$

0.63



$

0.57


Earnings (diluted)


$

0.71



$

0.63



$

0.61



$

0.63



$

0.57


Book value


$

29.26



$

28.39



$

27.76



$

27.05



$

26.83


Averages











Total assets


$

13,096,413



$

13,048,041



$

12,957,754



$

12,805,131



$

12,529,540


Interest-earning assets


$

11,606,727



$

11,561,627



$

11,458,470



$

11,326,629



$

11,052,807


Loans


$

8,601,819



$

8,406,664



$

8,441,354



$

8,456,632



$

8,389,230


Securities, including equity securities and FHLB stock


$

2,969,749



$

3,140,201



$

2,998,638



$

2,849,495



$

2,628,292


Deposits


$

10,186,371



$

10,271,016



$

10,560,280



$

10,478,800



$

10,264,822


Interest-bearing deposits


$

5,174,875



$

5,226,396



$

5,298,590



$

5,376,300



$

5,390,869


Interest-bearing liabilities


$

5,841,425



$

5,802,965



$

5,599,646



$

5,620,997



$

5,611,055


Noninterest-bearing deposits


$

5,011,496



$

5,044,620



$

5,261,690



$

5,102,500



$

4,873,953


Shareholders' equity


$

2,096,157



$

2,044,832



$

1,988,981



$

1,983,317



$

1,954,552


Financial Ratios











Return on average assets


1.58

%


1.41

%


1.38

%


1.45

%


1.33

%

Return on average common equity


9.87

%


8.97

%


9.00

%


9.36

%


8.54

%

Average equity to average assets


16.01

%


15.67

%


15.35

%


15.49

%


15.60

%

Shareholders' equity to total assets


16.30

%


15.99

%


15.53

%


15.29

%


15.56

%

Net interest margin (tax equivalent) (1)


4.40

%


4.32

%


4.36

%


4.37

%


4.30

%

Period end











Total assets


$

13,090,808



$

13,064,436



$

13,095,145



$

12,956,596



$

12,628,586


Loans, net of unearned income


$

8,646,990



$

8,520,798



$

8,391,511



$

8,514,317



$

8,454,107


Allowance for loan and lease losses


$

80,517



$

83,274



$

83,369



$

83,787



$

80,150


Securities, including equity securities and FHLB stock


$

2,894,218



$

3,052,870



$

3,193,408



$

2,942,655



$

2,665,131


Deposits


$

10,211,599



$

10,369,009



$

10,458,126


...