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Columbia Banking System Announces Third Quarter 2018 Results, Quarterly Cash Dividend and Special Cash Dividend

TACOMA, Wash., Oct. 25, 2018 /PRNewswire/ --

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

Highlights

  • 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

Hadley Robbins, President and Chief Executive Officer of Columbia Banking System and Columbia Bank (COLB) ("Columbia"), said today upon the release of Columbia's third quarter 2018 earnings, "We had a very successful quarter in generating a record level of loan production while continuing to work down nonperforming assets, as evidenced by the 9 basis point reduction compared to the prior quarter." Mr. Robbins continued, "I am also pleased with the 12 basis point increase in our net interest margin, which was favorably impacted by higher loan and securities rates and a more favorable deposit mix driven by an increase in noninterest-bearing deposits."

Balance Sheet

Total assets at September 30, 2018 were $12.96 billion, an increase of $328.0 million from June 30, 2018. Loans were $8.51 billion, up $60.2 million from June 30, 2018 as loan originations of $408.9 million were partially offset by payments and lower line utilization. Debt securities available for sale were $2.92 billion at September 30, 2018, an increase of $274.9 million, or 10% from $2.65 billion at June 30, 2018. Total deposits at September 30, 2018 were $10.60 billion, an increase of $220.0 million from June 30, 2018. Core deposits comprised 95% of total deposits and were $10.08 billion at September 30, 2018, an increase of $196.0 million from June 30, 2018. The average cost of total deposits for the quarter was 0.12%, an increase of 2 basis points from the second quarter of 2018.

Income Statement

Net Interest Income

Net interest income for the third quarter of 2018 was $122.8 million, an increase of $6.1 million from the linked quarter and an increase of $33.9 million from the prior year period. The increase from the linked quarter was due to a combination of higher rates on earning assets and higher volumes of loans and taxable securities. The increase from the prior year period was primarily due to income from earning assets acquired in the Pacific Continental acquisition, which closed on November 1, 2017, as well as higher rates on earning assets. For additional information regarding net interest income, see the "Net Interest Margin" section and the "Average Balances and Rates" table.

Noninterest Income

Noninterest income was $21.0 million for the third quarter of 2018, a decrease of $2.7 million from the second quarter of 2018. The linked quarter decrease was principally due to lower card revenue as we became subject to the interchange fee cap imposed under the Dodd-Frank Wall Street Reform and Consumer Protection Act as of July 1, 2018. Compared to the third quarter of 2017, noninterest income decreased by $16.0 million. The decrease was due to the $14.0 million one-time gain on the sale of our merchant card services portfolio in the prior year period as well as a decrease in card revenue during the current quarter as previously described. Also contributing to the decrease in noninterest income compared to the prior year period was our change to net presentation of interchange revenue pursuant to the adoption of new revenue recognition accounting guidance on January 1, 2018. Specifically, $1.3 million of payment card network expenses that would have historically been presented in other noninterest expense are now presented in card revenue.

Noninterest Expense

Total noninterest expense for the third quarter of 2018 was $82.8 million, a decrease of $1.8 million from the second quarter of 2018. After removing the effect of acquisition-related expenses of $1.1 million, noninterest expense for the current quarter was essentially flat from the linked quarter on the same basis as higher legal and professional fees and compensation and employee benefits were offset by lower occupancy and OREO expense. Compared to the third quarter of 2017, noninterest expense increased by $15.3 million. This increase was primarily driven by higher compensation and employee benefits and higher amortization of intangible assets, both resulting from our November 1, 2017 acquisition of Pacific Continental.

Provision for Income Taxes

Our effective tax rate for the current quarter was 19.7%, compared to 19.3% and 31.0% for the linked and prior year periods, respectively. The decrease from the prior year period was principally attributable to the enactment of the Tax Cuts and Jobs Act on December 22, 2017, which lowered the corporate tax rate to 21% from 35%. The prior year period's effective tax rate reflected the then-enacted 35% corporate tax rate reduced by favorable tax attributes of certain earning assets and discrete tax benefits from share-based compensation.

Our effective tax rate remains below the statutory tax rate due to tax-exempt income from municipal securities, bank owned life insurance and certain loan receivables.

Net Interest Margin

Columbia's net interest margin (tax equivalent) for the third quarter of 2018 was 4.41%, an increase of 12 basis points from the linked quarter and 21 basis points from the prior year period. Columbia's operating net interest margin (tax equivalent)(1) was 4.38% for the third quarter of 2018, an increase of 11 basis points from the linked quarter and an increase of 23 basis points from the prior year period. All increases were due to higher rates on interest-earning assets, which more than offset the modest increase in rates on interest-bearing liabilities from the comparative periods.

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


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

%

__________

(1) 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 September 30, 2018, nonperforming assets to total assets were 0.52% compared to 0.61% at June 30, 2018. Total nonperforming assets decreased $8.8 million from the linked quarter due to a $9.2 million decrease in nonaccrual loans, partially offset by an increase in other real estate owned.

Andy McDonald, Columbia's Executive Vice President and Chief Credit Officer, commented, "This past quarter was very strong from a credit perspective as we enjoyed net recoveries, declines in nonperforming assets and recorded a modest provision as well. While we are pleased with these results, we do not believe they are indicative of the long run credit profile of our loan portfolio. As such, we would expect to see them move towards the norm in future quarters."

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



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


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



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


The allowance for loan losses to period end loans was 0.98% at September 30, 2018 compared to 0.95% at June 30, 2018. For the third quarter of 2018, Columbia recorded a net provision for loan and lease losses of $3.2 million compared to a net provision of $4.0 million for the linked quarter and a net recapture of $648 thousand for the comparable quarter last year. The net provision for loan and lease losses recorded during the current quarter consisted of $3.7 million of provision expense for loans, excluding PCI loans and a recapture of $502 thousand for PCI loans.

Cash Dividend Announcement

Columbia will pay a regular cash dividend of $0.26 per common share and a special cash dividend of $0.14 per common share on November 21, 2018 to shareholders of record as of the close of business on November 7, 2018.

Conference Call Information

Columbia's management will discuss the third quarter 2018 financial results on a conference call scheduled for Thursday, October 25, 2018 at 1:00 p.m. Pacific Time (4:00 p.m. ET). Interested parties may join the live-streamed event by using the site:

https://engage.vevent.com/rt/columbiabankingsysteminc~102518

The conference call can also be accessed on Thursday, October 25, 2018 at 1:00 p.m. Pacific Time (4:00 p.m. ET) by calling 866-904-0737; Conference ID: 1467307.

A replay of the call can be accessed beginning Friday, October 26, 2018 using the site:

https://engage.vevent.com/rt/columbiabankingsysteminc~102518

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 12th consecutive year, the bank was named in 2018 as one of Puget Sound Business Journal's "Washington's Best Workplaces." Columbia ranked 11th on the 2018 Forbes list of best banks.

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, including 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; and (6) 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







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

%

...