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

TACOMA, Wash., Oct. 24, 2019 /PRNewswire/ --

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

Highlights

  • Quarterly net income of $50.7 million and diluted earnings per share of $0.70, inclusive of a $4.7 million gain, net of tax, from the sale-leaseback of owned real estate
  • Net loans increased $109.4 million, or 5.1% on an annualized basis from loan production of $383.0 million
  • Nonperforming assets to period end assets ratio improved for the seventh consecutive quarter to 0.27%
  • Repurchased 676 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 third quarter 2019 earnings, "Third quarter results reflected our focus on executing on our fundamentals. We responsibly built loan totals, increased deposits, and improved our credit quality metrics. Operating expenses were well controlled and meaningful progress was made in moving a number of digital initiatives to completion. Net income for the quarter was one of our strongest at $50.7 million and is a tribute to the dedication and hard work of the Columbia Bank team."

Balance Sheet

Total assets at September 30, 2019 were $13.76 billion, an increase of $667.0 million from the linked quarter. Loans were $8.76 billion, up $109.4 million, or 5.1% annualized, from June 30, 2019 as a result of loan originations of $383.0 million and increased seasonal line utilization partially offset by payments. Securities available for sale were $3.37 billion at September 30, 2019, an increase of $503.2 million from $2.86 billion at June 30, 2019. Total deposits at September 30, 2019 were $10.86 billion, an increase of $644.1 million from June 30, 2019. Deposit mix remained fairly consistent from June 30, 2019 with 49% noninterest-bearing and 51% interest-bearing. The average cost of total deposits for the quarter was 26 basis points, an increase of 6 basis points from the second quarter of 2019, which was impacted by the increase in public funds. For additional information regarding this calculation, see the "Net Interest Margin" section.

Greg Sigrist, Columbia's Executive Vice President and Chief Financial Officer, stated, "We selectively increased public funds by approximately $300 million in the third quarter as an alternative funding source, with a corresponding increase in our investment securities, as we expanded our interest rate risk strategy to partially mitigate the impact of further interest rate cuts. Although this did increase our cost of deposits by 6 basis points, our relationship deposit franchise is well intact and continues to benefit from having nearly half of our deposits in noninterest-bearing accounts."

Income Statement

Net Interest Income

Net interest income for the third quarter of 2019 was $122.5 million, a decrease of $2.7 million and $346 thousand from the linked quarter and the prior year period, respectively. After taking into consideration the $4.9 million of interest recoveries on nonaccrual loans received in the second quarter of 2019, net interest income was $2.2 million higher than the second quarter of 2019. This increase was due to lower Federal Home Loan Bank ("FHLB") interest expense and higher interest income on interest earning assets due to higher average volumes, partially offset by higher deposit interest expense due to higher average balances and rates on interest-bearing public funds, excluding certificates of deposit. Net interest income compared to the prior year period was relatively unchanged. The increase in interest income from higher average balances of interest-earning assets in the third quarter of 2019 was offset by higher interest expense from higher average balances of FHLB advances and interest-bearing public funds, excluding certificates of deposit. 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 $28.0 million for the third quarter of 2019, an increase of $2.4 million and $7.0 million from the second quarter of 2019 and the prior year period, respectively. The linked quarter increase was principally due to a $5.9 million gain from the sale-leaseback of owned real estate during the third quarter of 2019. This gain was partially offset by $3.0 million in bank-owned life insurance ("BOLI") benefits and a $667 thousand gain on disposal of loans realized during the second quarter of 2019. The increase from the prior year period was primarily due to the previously noted sale-leaseback gain in the third quarter of 2019.

Noninterest Expense

Total noninterest expense for the third quarter of 2019 was $87.1 million, an increase of $348 thousand and $4.2 million from the linked quarter and the prior year period, respectively. The increase in noninterest expense was a result of higher salaries, other compensation and incentive plan expenses, which were partially offset by lower provision for off-balance sheet reserves during the quarter. After removing acquisition-related expenses of $1.1 million from the third quarter of 2018, year over year noninterest expense increased $5.3 million, or 7%. This increase was primarily driven by higher compensation and employee benefits expense, which was partially offset by a decrease in regulatory premium expenses. The Bank's Federal Deposit Insurance Corporation ("FDIC") deposit insurance expense was reduced due to the utilization of a portion of our FDIC Small Bank Assessment Credit.

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 third quarter of 2019 was 4.14%, a decrease of 26 basis points and 23 basis points from the linked quarter and prior year period, respectively. The decrease in the net interest margin (tax equivalent) compared to the linked quarter was driven by the previously noted $4.9 million, or 17 basis points, of loan interest recoveries received in the second quarter of 2019. The remainder of the decline was largely driven by the net impact of the approximately $300 million increase in securities and public funds as part of the expanded interest rate risk strategy. Additionally, a benefit from deposit inflows was largely offset by lower yields on loans and investments. Further, the decline related to the interest rate environment was offset by changes in the mix and volume of interest-earning assets as well as lower levels of FHLB advances. Compared to the prior year period, the decreased net interest margin (tax equivalent) was driven by higher rates on our deposits and borrowings as well as lower accretion income on acquired loans as reflected in the table below.

Columbia's operating net interest margin (tax equivalent)(2) was 4.12% for the third quarter of 2019, which decreased 26 and 22 basis points compared to the linked quarter and the prior year period, respectively. The decreases in the operating net interest margin for the third quarter of 2019 compared to the linked quarter and the prior year quarter were due to the items previously noted in the preceding paragraph, except for the lower accretion income, which is not included in the operating net interest margin.

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,



2019


2019


2019


2018


2018


2019


2018



(dollars in thousands)

Incremental accretion income due to:















Purchased credit impaired loans


$

113



$

579



$

288



$

395



$

585



$

980



$

1,240


Other acquired loans


1,959



2,084



1,747



2,218



2,643



5,790



8,703


Incremental accretion income


$

2,072



$

2,663



$

2,035



$

2,613



$

3,228



$

6,770



$

9,943

















Net interest margin (tax equivalent) (1)


4.14

%


4.40

%


4.32

%


4.36

%


4.37

%


4.28

%


4.32

%

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


4.12

%


4.38

%


4.33

%


4.34

%


4.34

%


4.28

%


4.29

%

__________

(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 September 30, 2019, nonperforming assets to total assets were 0.27% compared to 0.31% at June 30, 2019. Total nonperforming assets decreased $2.5 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, "Our credit metrics continue to perform better than our peer group average. This is reflective of the commitment our bankers have to our risk disciplines as well as the diligent efforts of our special assets team. The quarter benefited from $1.8 million in net recoveries which allowed us to keep our credit cost to a minimum."

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



September 30, 2019


June 30, 2019


December 31, 2018



(in thousands)

Nonaccrual loans:







Commercial business


$

24,408



$

23,997



$

35,513


Real estate:







One-to-four family residential


574



860



1,158


Commercial and multifamily residential


10,083



11,843



14,904


Total real estate


10,657



12,703



16,062


Real estate construction:







One-to-four family residential






318


Consumer


1,956



2,338



2,949


Total nonaccrual loans


37,021



39,038



54,842


OREO and other personal property owned


625



1,118



6,049


Total nonperforming assets


$

37,646



$

40,156



$

60,891


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



Three Months Ended


Nine Months Ended



September 30,
2019


June 30,
2019


September 30,
2018


September 30,
2019


September 30,
2018



(in thousands)

Beginning balance, loans excluding PCI loans


$

77,248



$

80,029



$

75,368



$

79,758



$

68,739


Beginning balance, PCI loans


3,269



3,245



4,782



3,611



6,907


Beginning balance


80,517



83,274



80,150



83,369



75,646


Charge-offs:











Commercial business


(2,365)



(4,118)



(606)



(7,732)



(8,858)


One-to-four family residential real estate








(2)




Commercial and multifamily residential real estate










(223)


One-to-four family residential real estate construction








(170)




Consumer


(285)



(354)



(277)



(1,117)



(773)


Purchased credit impaired


(722)



(815)



(1,208)



(2,626)



(3,786)


Total charge-offs


(3,372)



(5,287)



(2,091)



(11,647)



(13,640)


Recoveries:











Commercial business


358



547



547



1,385



2,892


One-to-four family residential real estate


65



20



21



102



389


Commercial and multifamily residential real estate


184



33



213



248



1,012


One-to-four family residential real estate construction


2,471



661



583



3,192



616


Commercial and multifamily residential real estate construction




1





1




Consumer


326



178



266



742



796


Purchased credit impaired


1,812



872



945



3,389



3,096


Total recoveries


5,216



2,312



2,575



9,059



8,801


Net (charge-offs) recoveries


1,844



(2,975)



484



(2,588)



(4,839)


Provision for loan and lease losses, excluding PCI loans


1,600



251



3,655



3,195



15,180


Recapture of loan and lease losses, PCI loans


(1,301)



(33)



(502)



(1,316)



(2,200)


Provision for loan and lease losses


299



218



3,153



1,879



12,980


Ending balance, loans excluding PCI loans


79,602



77,248



79,770



79,602



79,770


Ending balance, PCI loans


3,058



3,269



4,017



3,058



4,017


Ending balance


$

82,660



$

80,517



$

83,787



$

82,660



$

83,787


The allowance for loan and lease losses to period end loans was 0.94% at September 30, 2019 compared to 0.93% at June 30, 2019. For the third quarter of 2019, Columbia recorded a net provision for loan and lease losses of $299 thousand compared to a net provision of $218 thousand for the linked quarter and a net provision of $3.2 million for the comparable quarter last year. The net provision for loan and lease losses recorded during the third quarter of 2019 consisted of $1.6 million of provision expense for loans, excluding PCI loans, and a provision recapture of $1.3 million for PCI loans.

Organizational Update

During the quarter, the Company announced the upcoming retirement of Mr. Robbins and its related succession planning activities. Mr. Robbins stated, "I am proud to pass the torch to Clint who has a 14 year proven track record of success in helping grow Columbia Bank to where we are today. The various roles that Clint has held while at Columbia Bank have prepared him well for this next phase of his career. He is very well respected among our investors, community leaders and employees."

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

  • Hadley Robbins was named to the inaugural Power 100 list of the most influential leaders in the region by the Puget Sound Business Journal;
  • Selected as one of the Top Corporate Philanthropists for 2019 by the Portland Business Journal;
  • Received an Extraordinary Banking Award for 2019 by the Institute of Extraordinary Banking;
  • Named to the list of Top Workplaces in 2018 by Portland's Oregonian;
  • Honored as one of Oregon's Most Admired Companies in 2018 by the Portland Business Journal;
  • 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 November 20, 2019 to shareholders of record as of the close of business on November 6, 2019.

Conference Call Information

Columbia's management will discuss the third quarter 2019 financial results on a conference call scheduled for Thursday, October 24, 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~102419

The conference call can also be accessed on Thursday, October 24, 2019 at 10:00 a.m. Pacific Daylight Time (1:00 p.m. EDT) by calling 888-286-8956; Conference ID: 7935679.

A replay of the call can be accessed beginning Friday, October 25, 2019 using the site: https://engage.vevent.com/rt/columbiabankingsysteminc~102419

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







September 30,


June 30,


December 31,








2019


2019


2018








(in thousands)

ASSETS



Cash and due from banks







$

278,461



$

224,327



$

260,180


Interest-earning deposits with banks







20,144



34,332



17,407


Total cash and cash equivalents







298,605



258,659



277,587


Debt securities available for sale at fair value






3,367,572



2,864,418



3,167,448


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






29,680



29,800



25,960


Loans held for sale







15,036



12,189



3,849


Loans, net of unearned income







8,756,355



8,646,990



8,391,511


Less: allowance for loan and lease losses






82,660



80,517



83,369


Loans, net







8,673,695



8,566,473



8,308,142


Interest receivable







48,503



46,878



45,323


Premises and equipment, net







165,431



167,295



168,788


Other real estate owned







625



1,118



6,019


Goodwill







765,842



765,842



765,842


Other intangible assets, net







37,908



40,540



45,937


Other assets







354,863



337,596



280,250


Total assets







$

13,757,760



$

13,090,808



$

13,095,145


LIABILITIES AND SHAREHOLDERS' EQUITY







Deposits:












Noninterest-bearing







$

5,320,435



$

5,082,219



$

5,227,216


Interest-bearing







5,535,281



5,129,380



5,230,910


Total deposits







10,855,716



10,211,599



10,458,126


FHLB advances







492,482



495,496



399,523


Securities sold under agreements to repurchase






24,489



50,226



61,094


Subordinated debentures







35,323



35,370



35,462


Other liabilities







188,173



164,479



107,291


Total liabilities







11,596,183



10,957,170



11,061,496


Commitments and contingent liabilities













September 30,


June 30,


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

73,588



73,548



73,249



1,648,335



1,648,335



1,642,246


Outstanding

72,288



72,924



73,249








Retained earnings







493,738



463,429



426,708


Accumulated other comprehensive income (loss)






64,884



47,150



(35,305)


Treasury stock at cost

1,300



624





(45,380)



(21,863)




Total shareholders' equity







2,161,577



2,133,638



2,033,649


Total liabilities and shareholders' equity






$

13,757,760



$

13,090,808



$

13,095,145


 

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,



2019


2019


2018


2019


2018

Interest Income


(in thousands except per share amounts)

Loans


$

112,656



$

116,585



$

109,748



$

337,657



$

318,187


Taxable securities


16,457



15,918



14,654



49,790



39,285


Tax-exempt securities


2,556



2,712



3,069



8,237



9,196


Deposits in banks


864



207



104



1,159



600


Total interest income


132,533



135,422



127,575



396,843



367,268


Interest Expense











Deposits


6,863



4,976



3,193



16,337



8,274


FHLB advances


2,569



4,708



966



9,962



2,351


Subordinated debentures


468



468



468



1,404



1,404


Other borrowings


183



154



152



552



288


Total interest expense


10,083



10,306



4,779



28,255



12,317


Net Interest Income


122,450



125,116



122,796



368,588



354,951


Provision for loan and lease losses


299



218



3,153



1,879



12,980


Net interest income after provision for loan and lease losses


122,151



124,898



119,643



366,709



341,971


Noninterest Income











Deposit account and treasury management fees


9,015



9,035



9,266



27,030



26,689


Card revenue


4,006



3,763



3,714



11,431



16,143


Financial services and trust revenue


3,226



3,425



2,975



9,608



8,924


Loan revenue


3,855



3,596



3,282



9,840



9,522


Bank owned life insurance


1,528



1,597



1,402



4,644



4,540


Investment securities gains (losses), net




285



(62)



2,132



(73)


Other


6,400



3,947



442



10,689



2,109


Total noninterest income


28,030



25,648



21,019



75,374



67,854


Noninterest Expense











Compensation and employee benefits


54,459



52,015



49,419



158,559



148,938


Occupancy


8,645



8,712



8,321



26,166



27,718


Data processing


5,102



4,601



4,466



14,372



14,957


Legal and professional fees


5,683



6,554



4,695



16,810



12,103


Amortization of intangibles


2,632



2,649



3,070



8,029



9,346


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


1,325



1,411



1,478



4,612



4,254


Advertising and promotion


1,752



870



1,472



3,596



4,523


Regulatory premiums


(38)



956



904



1,902



2,778


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


(90)



(705)



485



(682)



1,244


Other (1)


7,606



9,665



8,531



25,140



27,610


Total noninterest expense


87,076



86,728



82,841



258,504



253,471


Income before income taxes


63,105



63,818



57,821



183,579



156,354


Provision for income taxes


12,378



12,094



11,406



35,257



28,220


Net Income


$

50,727



$

51,724



$

46,415



$

148,322



$

128,134


Earnings per common share











Basic


$

0.70



$

0.71



$

0.63



$

2.04



$

1.75


Diluted


$

0.70



$

0.71



$

0.63



$

2.04



$

1.75


Dividends declared per common share - regular


$

0.28



$

0.28



$

0.26



$

0.84



$

0.74


Dividends declared per common share - special




0.14





0.28




   Dividends declared per common share - total


$

0.28



$

0.42



$

0.26



$

1.12



$

0.74


Weighted average number of common shares outstanding


71,803



72,451



72,427



72,256



72,370


Weighted average number of diluted common shares outstanding


71,803



72,451



72,432



72,257



72,374


__________

(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


Nine Months Ended

Unaudited


September 30,


June 30,


September 30,


September 30,


September 30,



2019


2019


2018


2019


2018

Earnings


(dollars in thousands except per share amounts)

Net interest income


$

122,450



$

125,116



$

122,796



$

368,588



$

354,951


Provision for loan and lease losses


$

299



$

218



$

3,153



$

1,879



$

12,980


Noninterest income


$

28,030



$

25,648



$

21,019



$

75,374



$

67,854


Noninterest expense


$

87,076



$

86,728



$

82,841



$

258,504



$

253,471


Acquisition-related expense (included in noninterest expense)


$



$



$

1,081



$



$

8,168


Net income


$

50,727



$

51,724



$

46,415



$

148,322



$

128,134


Per Common Share











Earnings (basic)


$

0.70



$

0.71



$

0.63



$

2.04



$

1.75


Earnings (diluted)


$

0.70



$

0.71



$

0.63



$

2.04



$

1.75


Book value


$

29.90



$

29.26



$

27.05



$

29.90



$

27.05


Tangible book value per common share (1)


$

18.78



$

18.20



$

15.93



$

18.78



$

15.93


Averages











Total assets


$

13,459,774



$

13,096,413



$

12,805,131



$

13,202,917



$

12,646,678


Interest-earning assets


$

11,941,578



$

11,606,727



$

11,326,629



$

11,704,702



$

11,168,143


Loans


$

8,694,592



$

8,601,819



$

8,456,632



$

8,568,746



$

8,398,596


Securities, including equity securities and FHLB stock


$

3,102,213



$

2,969,749



$

2,849,495



$

3,070,582



$

2,720,625


Deposits


$

10,668,767



$

10,186,370



$

10,478,800



$

10,376,841



$

10,359,896


Interest-bearing deposits


$

5,517,171



$

5,174,875



$

5,376,300



$

5,307,212



$

5,390,859


Interest-bearing liabilities


$

5,989,042



$

5,841,425



$

5,620,997



$

5,878,492



$

5,619,943


Noninterest-bearing deposits


$

5,151,596



$

5,011,496



$

5,102,500



$

5,069,629



$

4,969,037


Shareholders' equity


$

2,152,916



$

2,096,157



$

1,983,317



$

2,098,364



$

1,962,506


Financial Ratios











Return on average assets


1.51

%


1.58

%


1.45

%


1.50

%


1.35

%

Return on average common equity


9.42

%


9.87

%


9.36

%


9.42

%


8.71

%

Return on average tangible common equity (1)


15.67

%


16.71

%


16.74

%


15.98

%


15.80

%

Average equity to average assets


16.00

%


16.01

%


15.49

%


15.89

%


15.52

%

Shareholders equity to total assets


15.71

%


16.30

%


15.29

%


15.71

%


15.29

%

Tangible common shareholders' equity to tangible assets (1)


10.48

%


10.80

%


9.61

%


10.48

%


9.61

%

Net interest margin (tax equivalent) (2)


4.14

%


4.40

%


4.37

%


4.28

%


4.32

%

Efficiency ratio (tax equivalent) (3)


56.91

%


56.57

%


56.67

%


57.25

%


58.97

%

Operating efficiency ratio (tax equivalent) (1)


58.65

%


56.34

%


54.83

%


57.50

%


56.13

%

Noninterest expense ratio


2.59

%


2.65

%


2.59

%


2.61

%


2.67

%

Core noninterest expense ratio (1)


2.59

%


2.65

%


2.55

%


2.61

%


2.59

%














September 30,


June 30,


December 31,





Period end


2019


2019


2018





Total assets


$

13,757,760



$

13,090,808



$

13,095,145






Loans, net of unearned income


$

8,756,355



$

8,646,990



$

8,391,511






Allowance for loan and lease losses


$

82,660



$

80,517



$

83,369






Securities, including equity securities and FHLB stock


$

3,397,252



$

2,894,218



$

3,193,408






Deposits


$

10,855,716



$

10,211,599



$

10,458,126






Shareholders' equity


$

2,161,577



$

2,133,638



$

2,033,649






Nonperforming assets











Nonaccrual loans


$

37,021



$

39,038



$

54,842






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


625



1,118



6,049






Total nonperforming assets


$

37,646



$

40,156



$

60,891






Nonperforming loans to period-end loans


0.42

%


0.45

%


0.65

%





Nonperforming assets to period-end assets


0.27

%


0.31

%


0.46

%





Allowance for loan and lease losses to period-end loans


0.94

%


0.93

%


0.99

%





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


$

(1,844)



$

2,975



$

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


September 30,


June 30,


March 31,


December 31,


September 30,



2019


2019


2019


2018


2018

Earnings


(dollars in thousands except per share amounts)

Net interest income


$

122,450



$

125,116



$

121,022



$

123,888



$

122,796


Provision for loan and lease losses


$

299



$

218



$

1,362



$

1,789



$

3,153


Noninterest income


$

28,030



$

25,648



$

21,696



$

20,402



$

21,019


Noninterest expense


$

87,076



$

86,728



$

84,700



$

87,019



$

82,841


Acquisition-related expense (included in noninterest expense)


$



$



$



$

493



$

1,081


Net income


$

50,727



$

51,724



$

45,871



$

44,748



$

46,415


Per Common Share











Earnings (basic)


$

0.70



$

0.71



$

0.63



$

0.61



$

0.63


Earnings (diluted)


$

0.70



$

0.71



$

0.63



$

0.61



$

0.63


Book value


$

29.90



$

29.26



$

28.39



$

27.76



$

27.05


Averages











Total assets


$

13,459,774



$

13,096,413



$

13,048,041



$

12,957,754



$

12,805,131


Interest-earning assets


$

11,941,578



$

11,606,727



$

11,561,627



$

11,458,470



$

11,326,629


Loans


$

8,694,592



$

8,601,819



$

8,406,664



$

8,441,354



$

8,456,632


Securities, including equity securities and FHLB stock


$

3,102,213



$

2,969,749



$

3,140,201



$

2,998,638



$

2,849,495


Deposits


$

10,668,767



$

10,186,371



$

10,271,016



$

10,560,280



$

10,478,800


Interest-bearing deposits


$

5,517,171



$

5,174,875



$

5,226,396



$

5,298,590



$

5,376,300


Interest-bearing liabilities


$

5,989,042



$

5,841,425



$

5,802,965



$

5,599,646



$

5,620,997


Noninterest-bearing deposits


$

5,151,596



$

5,011,496



$

5,044,620



$

5,261,690



$

5,102,500


Shareholders' equity


$

2,152,916



$

2,096,157



$

2,044,832



$

1,988,981



$

1,983,317


Financial Ratios











Return on average assets


1.51

%


1.58

%


1.41

%


1.38

%


1.45

%

Return on average common equity


9.42

%


9.87

%


8.97

%


9.00

%


9.36

%

Average equity to average assets


16.00

%


16.01

%


15.67

%


15.35

%


15.49

%

Shareholders' equity to total assets


15.71

%


16.30

%


15.99

%


15.53

%


15.29

%

Net interest margin (tax equivalent) (1)


4.14

%


4.40

%


4.32

%


4.36

%


4.37

%

Period end











Total assets


$

13,757,760



$

13,090,808



$

13,064,436



$

13,095,145



$

12,956,596


Loans, net of unearned income


$

8,756,355



$

8,646,990



$

8,520,798



$

8,391,511



$

8,514,317


Allowance for loan and lease losses


$

82,660



$

80,517



$

83,274



$

83,369



$

83,787


Securities, including equity securities and FHLB stock


$

3,397,252



$

2,894,218



$

3,052,870



$

3,193,408



$

2,942,655


Deposits


$

10,855,716



$

10,211,599



$

10,369,009



$

10,458,126



$

10,603,957


Shareholders' equity


$

2,161,577



$

2,133,638



$

2,088,620



$

2,033,649



$

1,981,395


Goodwill


$

765,842



$

765,842



$

765,842



$

765,842



$

765,842


Other intangible assets, net


$

37,908



$

40,540



$

43,189



$

45,937



$

48,827


Nonperforming assets











Nonaccrual loans


$

37,021



$

39,038



$

52,615



$

54,842



$

60,332


OREO and OPPO


625



1,118



6,075