TACOMA,
Wash., April 25, 2024 /PRNewswire/ --
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$0.59
|
|
$0.65
|
|
$23.68
|
|
$16.03
|
|
Earnings per
diluted
common share
|
|
Operating earnings
per
diluted common share 1
|
|
Book value per
common share
|
|
Tangible book value
per common share 1
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|
CEO
Commentary
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"Our first quarter
results reflect early progress on our targeted actions to improve
our financial performance and drive shareholder value," said Clint
Stein, President and CEO. "Enterprise-wide evaluations and targeted
changes resulted in tighter expense control and stabilizing deposit
costs in the latter part of the quarter. We will continue to
exercise prudent expense management, and we expect to see the
positive financial impact of near-term initiatives fully reflected
in the fourth quarter's expense run rate. Longer-term initiatives
will optimize our performance from a revenue, expense, and
profitability standpoint. As an organization, Columbia remains
laser-focused on regaining our placement as a top-quartile bank
across financial metrics as we strive to drive long-term,
consistent, repeatable performance."
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–Clint Stein,
President and CEO of Columbia Banking System, Inc.
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1Q24 HIGHLIGHTS
(COMPARED TO 4Q23)
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|
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Net Interest
Income and
NIM
|
•
Net interest income decreased by $30
million on a linked-quarter basis due to higher deposit costs
relative to the fourth quarter and lower income earned on
investment securities given slower prepayment activity.
|
|
|
•
Net interest margin was 3.52%, down 26
basis points from the prior quarter given the full-quarter effect
of deposit repricing and balance mix shift during the fourth
quarter.
|
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|
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Non-Interest
Income and
Expense
|
•
Non-interest income decreased by $15
million due to the quarterly fluctuation in cumulative non-merger
fair value accounting and hedges. Excluding these items,
non-interest income increased by $1 million.
|
|
|
•
Non-interest expense decreased by $50
million due to lower discretionary spend and the fourth quarter's
larger FDIC special assessment.
|
|
|
|
|
|
Credit
Quality
|
•
Net charge-offs were 0.47% of average
loans and leases (annualized), compared to 0.31% in the prior
quarter.
|
|
|
•
Provision expense of $17 million
compares to $55 million in the prior quarter.
|
|
|
•
Non-performing assets to total assets was
0.28%, compared to 0.22% as of December 31, 2023.
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Capital
|
•
Estimated total risk-based capital ratio
of 12.0% and estimated common equity tier 1 risk-based capital
ratio of 9.8%.
|
|
|
•
Declared a quarterly cash dividend of
$0.36 per common share on February 9, 2024, which was paid March
11, 2024.
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|
|
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Notable
Items
|
•
Recalibrated the commercial CECL model to
be more reflective of the post-merger loan portfolio after a full
year operating as a combined organization.
|
|
|
•
Incurred $4 million in merger-related
expense and $5 million in expense related to an FDIC special
assessment.
|
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1Q24 KEY FINANCIAL
DATA
|
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PERFORMANCE
METRICS
|
1Q24
|
|
4Q23
|
|
1Q23
|
|
Return on average
assets
|
0.96 %
|
|
0.72 %
|
|
(0.14) %
|
|
Return on average
common equity
|
10.01 %
|
|
7.90 %
|
|
(1.70) %
|
|
Return on average
tangible common equity 1
|
14.82 %
|
|
12.19 %
|
|
(2.09) %
|
|
Operating return on
average assets 1
|
1.04 %
|
|
0.89 %
|
|
0.74 %
|
|
Operating return on
average common equity 1
|
10.89 %
|
|
9.81 %
|
|
8.66 %
|
|
Operating return on
average tangible common equity 1
|
16.12 %
|
|
15.14 %
|
|
10.64 %
|
|
Net interest
margin
|
3.52 %
|
|
3.78 %
|
|
4.08 %
|
|
Efficiency
ratio
|
60.57 %
|
|
64.81 %
|
|
79.71 %
|
|
Operating efficiency
ratio, as adjusted 1
|
56.97 %
|
|
57.31 %
|
|
52.84 %
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|
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INCOME
STATEMENT
($ in 000s, excl. per
share data)
|
1Q24
|
|
4Q23
|
|
1Q23
|
|
Net interest
income
|
$423,362
|
|
$453,623
|
|
$374,698
|
|
Provision for credit
losses
|
$17,136
|
|
$54,909
|
|
$105,539
|
|
Non-interest
income
|
$50,357
|
|
$65,533
|
|
$54,735
|
|
Non-interest
expense
|
$287,516
|
|
$337,176
|
|
$342,818
|
|
Pre-provision net
revenue 1
|
$186,203
|
|
$181,980
|
|
$86,615
|
|
Operating pre-provision
net revenue 1
|
$200,684
|
|
$212,136
|
|
$195,730
|
|
Earnings per common
share - diluted
|
$0.59
|
|
$0.45
|
|
($0.09)
|
|
Operating earnings per
common share - diluted 1
|
$0.65
|
|
$0.56
|
|
$0.46
|
|
Dividends paid per
share
|
$0.36
|
|
$0.36
|
|
$0.35
|
|
|
|
|
|
|
|
BALANCE
SHEET
|
1Q24
|
|
4Q23
|
|
1Q23
|
|
Total assets
|
$52.2B
|
|
$52.2B
|
|
$54.0B
|
|
Loans and
leases
|
$37.6B
|
|
$37.4B
|
|
$37.1B
|
|
Total
deposits
|
$41.7B
|
|
$41.6B
|
|
$41.6B
|
|
Book value per common
share
|
$23.68
|
|
$23.95
|
|
$23.44
|
|
Tangible book value per
share 1
|
$16.03
|
|
$16.12
|
|
$15.12
|
Organizational Update
Columbia Banking System, Inc. ("Columbia," "we," or "our") conducted an
enterprise-wide evaluation of our operations during the first
quarter of 2024. The full-scale review resulted in consolidated
positions, simplified reporting and organizational structures, and
an improved profitability outlook. These changes are expected to be
carried out during the second and third quarters of 2024. Please
refer to the Q1 2024 Earnings Presentation for additional
details.
On February 28, 2023, Columbia completed its merger with Umpqua
Holdings Corporation ("UHC"), combining the two premier banks in
the Northwest to create one of the largest banks headquartered in
the West (the "merger"). Columbia's financial results for any periods
ended prior to February 28, 2023
reflect UHC results only on a standalone basis. In addition,
Columbia's reported financial
results for the first quarter of 2023 reflect UHC financial results
only until the closing of the merger after the close of business on
February 28, 2023. As a result of
these two factors, Columbia's
financial results for each of the quarters of 2023 and the year
ended December 31, 2023 may not be
directly comparable to prior reported periods. Under the reverse
acquisition method of accounting, the assets and liabilities of
Columbia as of February 28, 2023 ("historical Columbia") were recorded at their respective
fair values.
Net Interest Income
Net interest income was $423
million for the first quarter of 2024, down $30 million from the prior quarter. The decline
reflects higher deposit costs relative to the fourth quarter and
lower income earned on investment securities given slower
prepayment activity.
Columbia's net interest margin
was 3.52% for the first quarter of 2024, down 26 basis points from
3.78% for the fourth quarter of 2023. The contraction was driven by
higher average deposit costs, which increased at an accelerated
pace through the fourth quarter and into January before stabilizing
in the latter part of the first quarter. The cost of
interest-bearing deposits increased 34 basis points on a
linked-quarter basis to 2.88% for the first quarter of 2024, which
compares to 2.90% for the month of March and 2.89% at March 31, 2024. "During the first quarter, we
executed a comprehensive review related to how we evaluate and
approve deposit pricing," commented Tory
Nixon, President of Umpqua Bank. "This resulted in enhanced
pricing visibility, which contributed to stability in
interest-bearing core deposit rates."
The cost of interest-bearing liabilities benefited from the
movement of $1.4 billion in FHLB
Advances to the Federal Reserve's Bank Term Funding Program in
January, lowering the cost of these funds by approximately 75 basis
points. Columbia's cost of
interest-bearing liabilities increased 23 basis points on a
linked-quarter basis to 3.25% for the first quarter of 2024, which
compares to 3.24% for both the month of March and at March 31, 2024. Please refer to the Q1 2024
Earnings Presentation for additional net interest margin change
details and interest rate sensitivity information as well as to our
non-GAAP disclosures in this press release for the impact of
purchase accounting accretion and amortization on individual line
items.
Non-interest Income
Non-interest income was $50
million for the first quarter of 2024, down $15 million from the prior quarter. The decline
was driven by quarterly fluctuations in fair value adjustments and
mortgage servicing rights ("MSR") hedging activity, which
collectively resulted in a net fair value loss of $4 million in the first quarter compared to a net
fair value gain of $13 million in the
fourth quarter, as detailed in our non-GAAP disclosures. Excluding
these items, non-interest income increased by $1 million from the prior quarter.
Non-interest Expense
Non-interest expense was $288
million for the first quarter of 2024, down $50 million from the prior quarter level.
Excluding merger-related expense, exit and disposal costs, and
accruals for the FDIC special assessment, non-interest expense was
$277 million2, down
$17 million from the prior quarter
due to lower discretionary spending and other expense items
compared to elevated expense items in the fourth quarter. Please
refer to the Q1 2024 Earnings Presentation for additional expense
details.
Balance Sheet
Total consolidated assets were $52.2
billion as of March 31, 2024, unchanged from
December 31, 2023. Cash and cash equivalents was $2.2 billion as of March 31, 2024, also
unchanged from December 31, 2023. Including secured
off-balance sheet lines of credit, total available liquidity was
$18.6 billion as of March 31,
2024, representing 36% of total assets, 45% of total deposits, and
138% of uninsured deposits. Available-for-sale securities, which
are held on balance sheet at fair value, were $8.6 billion as of March 31, 2024, a
decrease of $213 million relative to
December 31, 2023 due to paydowns and a decline in the fair
value of the portfolio. Please refer to the Q1 2024 Earnings
Presentation for additional details related to our securities
portfolio and liquidity position.
Gross loans and leases were $37.6
billion as of March 31, 2024, an increase of
$200 million relative to
December 31, 2023. Commercial line utilization and
construction project activity were the primary contributors to the
2% annualized loan growth in the quarter. Higher commercial real
estate ("CRE") term balances reflect projects that transitioned
from construction to permanent financing. Excluding this shift,
origination volume during the first quarter was centered in our
commercial and owner-occupied CRE portfolios. Please refer to the
Q1 2024 Earnings Presentation for additional details related to our
loan portfolio, which include underwriting characteristics, the
composition of our commercial portfolios, and disclosure related to
our office portfolio.
Total deposits were $41.7 billion
as of March 31, 2024, an increase of
$99 million relative to December 31, 2023. Customer deposits drove the
quarter's increase, enabling a slight reduction in brokered
deposits and borrowings. "Our teams are focused on customer deposit
generation to reduce wholesale funding sources that create a drag
on our earnings power," stated Mr. Nixon. "While inflationary
pressures and seasonal patterns affected deposit flows, the teams
generated successful momentum through targeted campaigns focused on
extraordinary products and service, not price." Please refer to the
Q1 2024 Earnings Presentation for additional details related to
deposit characteristics and flows.
Credit Quality
The allowance for credit losses was $437
million, or 1.16% of loans and leases, as of March 31,
2024, compared to $464 million, or
1.24% of loans and leases, as of December 31, 2023. The
provision for credit losses was $17
million for the first quarter of 2024, and it reflects
credit migration trends, changes in the economic forecasts used in
credit models, charge-off activity, and a change within our Current
Expected Credit Losses ("CECL") methodology. During the first
quarter, we recalibrated the commercial CECL model to be more
reflective of the post-merger loan portfolio after a full year
operating as a combined organization. We believe the recalibrated
CECL model is more reflective of the quality of our underwriting
and borrower profiles.
Net charge-offs were 0.47% of average loans and leases
(annualized) for the first quarter of 2024, compared to 0.31% for
the fourth quarter of 2023. Net charge-offs in the FinPac portfolio
were $24 million in the first
quarter, largely unchanged from the fourth quarter, and were
up $14 million in the commercial portfolio from the prior
quarter, with the increase centered in a single credit. Charge-off
activity in other portfolios, inclusive of a small net recovery in
the CRE portfolio, was at an insignificant level. As of
March 31, 2024, non-performing assets were $144 million, or 0.28% of total assets, compared
to $114 million, or 0.22% of total assets, as of
December 31, 2023. The quarter's increase was driven primarily
by migration in our SBA portfolio and an owner-occupied CRE
property. Nonperforming assets as of March
31, 2024 included $43 million
of government guarantees. Please refer to the Q1 2024 Earnings
Presentation for additional details related to the allowance for
credit losses and other credit trends.
Capital
Columbia's book value per
common share was $23.68 as of
March 31, 2024, compared to $23.95 as of December 31, 2023. The
linked-quarter change primarily reflects a change in accumulated
other comprehensive (loss) income ("AOCI") to $(426) million at March 31, 2024, compared
to $(340) million at the prior
quarter-end. The change in AOCI is due primarily to an increase in
the tax-effected net unrealized loss on available-for-sale
securities to $413 million as of
March 31, 2024, compared to
$322 million as of December 31, 2023. Tangible book value per common
share3 was $16.03 as of
March 31, 2024, compared to
$16.12 as of December 31, 2023.
Columbia's estimated total
risk-based capital ratio was 12.0% and its estimated common equity
tier 1 risk-based capital ratio was 9.8% as of March 31, 2024, compared to 11.9% and 9.6%,
respectively, as of December 31,
2023. Columbia remains
above current "well-capitalized" regulatory minimums. "Our total
risk-based capital ratio at the parent company is now at our
long-term target of 12%," stated Ron
Farnsworth, Chief Financial Officer of Columbia. "We expect continued organic
earnings generation to drive all capital ratios above target levels
over time, increasing our flexibility for capital return in the
future." The regulatory capital ratios as of March 31, 2024 are estimates, pending completion
and filing of Columbia's
regulatory reports.
Earnings Presentation and Conference Call Information
Columbia's Q1 2024 Earnings
Presentation provides additional disclosure. A copy will be
available on our investor relations page:
www.columbiabankingsystem.com.
Columbia will host its first
quarter 2024 earnings conference call on April 25, 2024, at 2:00
p.m. PT (5:00 p.m. ET). During
the call, Columbia's management
will provide an update on recent activities and discuss its first
quarter 2024 financial results. Participants may register for the
call using the below link to receive dial-in details and their own
unique PINs or join the audiocast. It is recommended you join 10
minutes prior to the start time.
Register for the
call: https://register.vevent.com/register/BI5839ee065d874d2fa744be1fe2d2558d
Join the audiocast:
https://edge.media-server.com/mmc/p/jc6j526v/
Access the replay through Columbia's investor relations page:
www.columbiabankingsystem.com
About Columbia Banking System, Inc.
Columbia (Nasdaq: COLB) is
headquartered in Tacoma,
Washington and is the parent company of Umpqua Bank, an
award-winning western U.S. regional bank based in Lake Oswego, Oregon. Umpqua Bank is the
largest bank headquartered in the Northwest and one of the largest
banks headquartered in the West with locations in Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah,
and Washington. With over
$50 billion of assets, Umpqua Bank
combines the resources, sophistication and expertise of a national
bank with a commitment to deliver superior, personalized service.
The bank supports consumers and businesses through a full suite of
services, including retail and commercial banking; Small Business
Administration lending; institutional and corporate banking; and
equipment leasing. Umpqua Bank customers also have access to
comprehensive investment and wealth management expertise as well as
healthcare and private banking through Columbia Wealth Advisors and
Columbia Trust Company, a division of Umpqua Bank. Learn more at
www.columbiabankingsystem.com.
Forward-Looking Statements
This press release includes forward-looking statements within
the meaning of the "Safe-Harbor" provisions of the Private
Securities Litigation Reform Act of 1995, which management believes
are a benefit to shareholders. These statements are necessarily
subject to risk and uncertainty and actual results could differ
materially due to various risk factors, including those set forth
from time to time in our filings with the Securities and Exchange
Commission. You should not place undue reliance on forward-looking
statements and we undertake no obligation to update any such
statements. Forward-looking statements can be identified by words
such as "anticipates," "intends," "plans," "seeks," "believes,"
"estimates," "expects," "target," "projects," "outlook,"
"forecast," "will," "may," "could," "should," "can" and similar
references to future periods. In this press release we make
forward-looking statements about strategic and growth initiatives
and the result of such activity. Risks and uncertainties that could
cause results to differ from forward-looking statements we make
include, without limitation: current and future economic and market
conditions, including the effects of declines in housing and
commercial real estate prices, high unemployment rates, continued
inflation and any recession or slowdown in economic growth
particularly in the western United
States; economic forecast variables that are either
materially worse or better than end of quarter projections and
deterioration in the economy that could result in increased loan
and lease losses, especially those risks associated with
concentrations in real estate related loans; our ability to
effectively manage problem credits; the impact of bank failures or
adverse developments at other banks on general investor sentiment
regarding the liquidity and stability of banks; changes in interest
rates that could significantly reduce net interest income and
negatively affect asset yields and valuations and funding sources;
changes in the scope and cost of FDIC insurance and other coverage;
our ability to successfully implement efficiency and operational
excellence initiatives; our ability to successfully develop and
market new products and technology; changes in laws or regulations;
any failure to realize the anticipated benefits of the merger when
expected or at all; potential adverse reactions or changes to
business or employee relationships, including those resulting from
the completion of the merger and integration of the companies; the
effect of geopolitical instability, including wars, conflicts and
terrorist attacks; and natural disasters and other similar
unexpected events outside of our control. We also caution that the
amount and timing of any future common stock dividends or
repurchases will depend on the earnings, cash requirements and
financial condition of Columbia,
market conditions, capital requirements, applicable law and
regulations (including federal securities laws and federal banking
regulations), and other factors deemed relevant by Columbia's Board of Directors, and may be
subject to regulatory approval or conditions.
1 "Non-GAAP" financial measure. See GAAP to Non-GAAP
Reconciliation for additional information.
2 "Non-GAAP" financial measure. See GAAP to Non-GAAP
Reconciliation for additional information.
3 "Non-GAAP" financial measure. See GAAP to Non-GAAP
Reconciliation for additional information.
|
TABLE INDEX
|
|
Page
|
|
Consolidated Statements
of Operations
|
7
|
|
Consolidated Balance
Sheets
|
7
|
|
Financial
Highlights
|
9
|
|
Loan & Lease
Portfolio Balances and Mix
|
10
|
|
Deposit Portfolio
Balances and Mix
|
11
|
|
Credit Quality -
Non-performing Assets
|
12
|
|
Credit Quality -
Allowance for Credit Losses
|
13
|
|
Consolidated Average
Balance Sheets, Net Interest Income, and Yields/Rates
|
14
|
|
Residential Mortgage
Banking Activity
|
15
|
|
GAAP to Non-GAAP
Reconciliation
|
16
|
|
Columbia Banking
System, Inc.
|
|
Consolidated
Statements of Operations
|
|
(Unaudited)
|
|
Quarter
Ended
|
|
%
Change
|
|
($ in thousands,
except per share data)
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Seq.
Quarter
|
|
Year
over
Year
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and
leases
|
$ 575,044
|
|
$ 577,741
|
|
$ 569,670
|
|
$ 552,679
|
|
$ 413,525
|
|
— %
|
|
39 %
|
|
Interest and dividends
on investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
75,017
|
|
78,010
|
|
80,066
|
|
79,036
|
|
39,729
|
|
(4) %
|
|
89 %
|
|
Exempt from federal
income tax
|
6,904
|
|
6,966
|
|
6,929
|
|
6,817
|
|
3,397
|
|
(1) %
|
|
103 %
|
|
Dividends
|
3,707
|
|
4,862
|
|
4,941
|
|
2,581
|
|
719
|
|
(24) %
|
|
416 %
|
|
Temporary investments
and interest bearing deposits
|
23,553
|
|
24,055
|
|
34,407
|
|
34,616
|
|
18,581
|
|
(2) %
|
|
27 %
|
|
Total interest
income
|
684,225
|
|
691,634
|
|
696,013
|
|
675,729
|
|
475,951
|
|
(1) %
|
|
44 %
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
198,435
|
|
170,659
|
|
126,974
|
|
100,408
|
|
63,613
|
|
16 %
|
|
212 %
|
|
Securities sold under
agreement to repurchase and federal funds purchased
|
1,266
|
|
1,226
|
|
1,220
|
|
1,071
|
|
406
|
|
3 %
|
|
212 %
|
|
Borrowings
|
51,275
|
|
56,066
|
|
77,080
|
|
81,004
|
|
28,764
|
|
(9) %
|
|
78 %
|
|
Junior and other
subordinated debentures
|
9,887
|
|
10,060
|
|
9,864
|
|
9,271
|
|
8,470
|
|
(2) %
|
|
17 %
|
|
Total interest
expense
|
260,863
|
|
238,011
|
|
215,138
|
|
191,754
|
|
101,253
|
|
10 %
|
|
158 %
|
|
Net interest
income
|
423,362
|
|
453,623
|
|
480,875
|
|
483,975
|
|
374,698
|
|
(7) %
|
|
13 %
|
|
Provision for credit
losses
|
17,136
|
|
54,909
|
|
36,737
|
|
16,014
|
|
105,539
|
|
(69) %
|
|
(84) %
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposits
|
16,064
|
|
17,349
|
|
17,410
|
|
16,454
|
|
14,312
|
|
(7) %
|
|
12 %
|
|
Card-based
fees
|
13,183
|
|
14,593
|
|
15,674
|
|
13,435
|
|
11,561
|
|
(10) %
|
|
14 %
|
|
Financial services and
trust revenue
|
4,464
|
|
3,011
|
|
4,651
|
|
4,512
|
|
1,297
|
|
48 %
|
|
244 %
|
|
Residential mortgage
banking revenue (loss), net
|
4,634
|
|
4,212
|
|
7,103
|
|
(2,342)
|
|
7,816
|
|
10 %
|
|
(41) %
|
|
Gain on sale of debt
securities, net
|
12
|
|
9
|
|
4
|
|
—
|
|
—
|
|
33 %
|
|
nm
|
|
(Loss) gain on equity
securities, net
|
(1,565)
|
|
2,636
|
|
(2,055)
|
|
(697)
|
|
2,416
|
|
(159) %
|
|
(165) %
|
|
Gain on loan and lease
sales, net
|
221
|
|
1,161
|
|
1,871
|
|
442
|
|
940
|
|
(81) %
|
|
(76) %
|
|
BOLI income
|
4,639
|
|
4,331
|
|
4,440
|
|
4,063
|
|
2,790
|
|
7 %
|
|
66 %
|
|
Other income
(loss)
|
8,705
|
|
18,231
|
|
(5,117)
|
|
3,811
|
|
13,603
|
|
(52) %
|
|
(36) %
|
|
Total non-interest
income
|
50,357
|
|
65,533
|
|
43,981
|
|
39,678
|
|
54,735
|
|
(23) %
|
|
(8) %
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
154,538
|
|
157,572
|
|
159,041
|
|
163,398
|
|
136,092
|
|
(2) %
|
|
14 %
|
|
Occupancy and
equipment, net
|
45,291
|
|
48,160
|
|
43,070
|
|
50,550
|
|
41,700
|
|
(6) %
|
|
9 %
|
|
Intangible
amortization
|
32,091
|
|
33,204
|
|
29,879
|
|
35,553
|
|
12,660
|
|
(3) %
|
|
153 %
|
|
FDIC
assessments
|
14,460
|
|
42,510
|
|
11,200
|
|
11,579
|
|
6,113
|
|
(66) %
|
|
137 %
|
|
Merger-related
expense
|
4,478
|
|
7,174
|
|
18,938
|
|
29,649
|
|
115,898
|
|
(38) %
|
|
(96) %
|
|
Other
expenses
|
36,658
|
|
48,556
|
|
42,019
|
|
37,830
|
|
30,355
|
|
(25) %
|
|
21 %
|
|
Total non-interest
expense
|
287,516
|
|
337,176
|
|
304,147
|
|
328,559
|
|
342,818
|
|
(15) %
|
|
(16) %
|
|
Income (loss) before
provision (benefit) for income taxes
|
169,067
|
|
127,071
|
|
183,972
|
|
179,080
|
|
(18,924)
|
|
33 %
|
|
nm
|
|
Provision (benefit) for
income taxes
|
44,987
|
|
33,540
|
|
48,127
|
|
45,703
|
|
(4,886)
|
|
34 %
|
|
nm
|
|
Net income
(loss)
|
$ 124,080
|
|
$
93,531
|
|
$ 135,845
|
|
$ 133,377
|
|
$ (14,038)
|
|
33 %
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic
shares outstanding
|
208,260
|
|
208,083
|
|
208,070
|
|
207,977
|
|
156,383
|
|
— %
|
|
33 %
|
|
Weighted average
diluted shares outstanding
|
208,956
|
|
208,739
|
|
208,645
|
|
208,545
|
|
156,383
|
|
— %
|
|
34 %
|
|
Earnings (loss) per
common share – basic
|
$
0.60
|
|
$
0.45
|
|
$
0.65
|
|
$
0.64
|
|
$
(0.09)
|
|
33 %
|
|
nm
|
|
Earnings (loss) per
common share – diluted
|
$
0.59
|
|
$
0.45
|
|
$
0.65
|
|
$
0.64
|
|
$
(0.09)
|
|
31 %
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nm = Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
|
Columbia Banking
System, Inc.
Consolidated Balance
Sheets
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
%
Change
|
|
($ in thousands,
except per share data)
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Seq.
Quarter
|
|
Year
over
Year
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
$
440,215
|
|
$
498,496
|
|
$
492,474
|
|
$
538,653
|
|
$
555,919
|
|
(12) %
|
|
(21) %
|
|
Interest-bearing cash
and temporary investments
|
1,760,902
|
|
1,664,038
|
|
1,911,221
|
|
2,868,563
|
|
3,079,266
|
|
6 %
|
|
(43) %
|
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity and other, at
fair value
|
77,203
|
|
76,995
|
|
73,638
|
|
76,361
|
|
76,532
|
|
— %
|
|
1 %
|
|
Available for sale, at
fair value
|
8,616,545
|
|
8,829,870
|
|
8,503,986
|
|
8,998,428
|
|
9,249,600
|
|
(2) %
|
|
(7) %
|
|
Held to maturity, at
amortized cost
|
2,247
|
|
2,300
|
|
2,344
|
|
2,388
|
|
2,432
|
|
(2) %
|
|
(8) %
|
|
Loans held for
sale
|
47,201
|
|
30,715
|
|
60,313
|
|
183,633
|
|
49,338
|
|
54 %
|
|
(4) %
|
|
Loans and
leases
|
37,642,413
|
|
37,441,951
|
|
37,170,598
|
|
37,049,299
|
|
37,091,280
|
|
1 %
|
|
1 %
|
|
Allowance for credit
losses on loans and leases
|
(414,344)
|
|
(440,871)
|
|
(416,560)
|
|
(404,603)
|
|
(417,464)
|
|
(6) %
|
|
(1) %
|
|
Net loans and
leases
|
37,228,069
|
|
37,001,080
|
|
36,754,038
|
|
36,644,696
|
|
36,673,816
|
|
1 %
|
|
2 %
|
|
Restricted equity
securities
|
116,274
|
|
179,274
|
|
168,524
|
|
258,524
|
|
246,525
|
|
(35) %
|
|
(53) %
|
|
Premises and
equipment, net
|
336,869
|
|
338,970
|
|
337,855
|
|
368,698
|
|
375,190
|
|
(1) %
|
|
(10) %
|
|
Operating lease
right-of-use assets
|
113,833
|
|
115,811
|
|
114,220
|
|
119,255
|
|
127,296
|
|
(2) %
|
|
(11) %
|
|
Goodwill
|
1,029,234
|
|
1,029,234
|
|
1,029,234
|
|
1,029,234
|
|
1,030,142
|
|
— %
|
|
— %
|
|
Other intangible
assets, net
|
571,588
|
|
603,679
|
|
636,883
|
|
666,762
|
|
702,315
|
|
(5) %
|
|
(19) %
|
|
Residential mortgage
servicing rights, at fair value
|
110,444
|
|
109,243
|
|
117,640
|
|
172,929
|
|
178,800
|
|
1 %
|
|
(38) %
|
|
Bank-owned life
insurance
|
682,293
|
|
680,948
|
|
648,232
|
|
643,727
|
|
641,922
|
|
— %
|
|
6 %
|
|
Deferred tax asset,
net
|
356,031
|
|
347,203
|
|
469,841
|
|
362,880
|
|
351,229
|
|
3 %
|
|
1 %
|
|
Other
assets
|
735,058
|
|
665,740
|
|
673,372
|
|
657,365
|
|
653,904
|
|
10 %
|
|
12 %
|
|
Total assets
|
$ 52,224,006
|
|
$ 52,173,596
|
|
$ 51,993,815
|
|
$ 53,592,096
|
|
$ 53,994,226
|
|
— %
|
|
(3) %
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$ 13,808,554
|
|
$ 14,256,452
|
|
$ 15,532,948
|
|
$ 16,019,408
|
|
$ 17,215,781
|
|
(3) %
|
|
(20) %
|
|
Interest-bearing
|
27,897,606
|
|
27,350,568
|
|
26,091,420
|
|
24,815,509
|
|
24,370,566
|
|
2 %
|
|
14 %
|
|
Total
deposits
|
41,706,160
|
|
41,607,020
|
|
41,624,368
|
|
40,834,917
|
|
41,586,347
|
|
— %
|
|
— %
|
|
Securities sold under
agreements to repurchase
|
213,573
|
|
252,119
|
|
258,383
|
|
294,914
|
|
271,047
|
|
(15) %
|
|
(21) %
|
|
Borrowings
|
3,900,000
|
|
3,950,000
|
|
3,985,000
|
|
6,250,000
|
|
5,950,000
|
|
(1) %
|
|
(34) %
|
|
Junior subordinated
debentures, at fair value
|
309,544
|
|
316,440
|
|
331,545
|
|
312,872
|
|
297,721
|
|
(2) %
|
|
4 %
|
|
Junior and other
subordinated debentures, at amortized cost
|
107,838
|
|
107,895
|
|
107,952
|
|
108,009
|
|
108,066
|
|
— %
|
|
— %
|
|
Operating lease
liabilities
|
129,240
|
|
130,576
|
|
129,845
|
|
132,099
|
|
140,648
|
|
(1) %
|
|
(8) %
|
|
Other
liabilities
|
900,406
|
|
814,512
|
|
924,560
|
|
831,097
|
|
755,674
|
|
11 %
|
|
19 %
|
|
Total
liabilities
|
47,266,761
|
|
47,178,562
|
|
47,361,653
|
|
48,763,908
|
|
49,109,503
|
|
— %
|
|
(4) %
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
5,802,322
|
|
5,802,747
|
|
5,798,167
|
|
5,792,792
|
|
5,788,553
|
|
— %
|
|
— %
|
|
Accumulated
deficit
|
(418,946)
|
|
(467,571)
|
|
(485,576)
|
|
(545,842)
|
|
(603,696)
|
|
(10) %
|
|
(31) %
|
|
Accumulated other
comprehensive loss
|
(426,131)
|
|
(340,142)
|
|
(680,429)
|
|
(418,762)
|
|
(300,134)
|
|
25 %
|
|
42 %
|
|
Total shareholders'
equity
|
4,957,245
|
|
4,995,034
|
|
4,632,162
|
|
4,828,188
|
|
4,884,723
|
|
(1) %
|
|
1 %
|
|
Total liabilities and
shareholders' equity
|
$ 52,224,006
|
|
$ 52,173,596
|
|
$ 51,993,815
|
|
$ 53,592,096
|
|
$ 53,994,226
|
|
— %
|
|
(3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding at period end
|
209,370
|
|
208,585
|
|
208,575
|
|
208,514
|
|
208,429
|
|
— %
|
|
— %
|
|
Columbia Banking
System, Inc.
|
|
Financial
Highlights
|
|
(Unaudited)
|
|
|
Quarter
Ended
|
|
%
Change
|
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Seq.
Quarter
|
|
Year
over
Year
|
|
Per Common Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
|
|
$
0.36
|
|
$
0.36
|
|
$
0.36
|
|
$
0.36
|
|
$
0.35
|
|
— %
|
|
3 %
|
|
Book value
|
|
$
23.68
|
|
$
23.95
|
|
$
22.21
|
|
$
23.16
|
|
$
23.44
|
|
(1) %
|
|
1 %
|
|
Tangible book value
(1)
|
|
$
16.03
|
|
$
16.12
|
|
$
14.22
|
|
$
15.02
|
|
$
15.12
|
|
(1) %
|
|
6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(2)
|
|
60.57 %
|
|
64.81 %
|
|
57.82 %
|
|
62.60 %
|
|
79.71 %
|
|
(4.24)
|
|
(19.14)
|
|
Non-interest expense
to average assets (1)
|
|
2.22 %
|
|
2.58 %
|
|
2.28 %
|
|
2.46 %
|
|
3.53 %
|
|
(0.36)
|
|
(1.31)
|
|
Return on average
assets ("ROAA")
|
|
0.96 %
|
|
0.72 %
|
|
1.02 %
|
|
1.00 %
|
|
(0.14) %
|
|
0.24
|
|
1.10
|
|
Pre-provision net
revenue ("PPNR") ROAA (1)
|
|
1.44 %
|
|
1.39 %
|
|
1.65 %
|
|
1.46 %
|
|
0.89 %
|
|
0.05
|
|
0.55
|
|
Return on average
common equity
|
|
10.01 %
|
|
7.90 %
|
|
11.07 %
|
|
10.84 %
|
|
(1.70) %
|
|
2.11
|
|
11.71
|
|
Return on average
tangible common equity (1)
|
|
14.82 %
|
|
12.19 %
|
|
16.93 %
|
|
16.63 %
|
|
(2.09) %
|
|
2.63
|
|
16.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios -
Operating: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating efficiency
ratio, as adjusted (1), (2), (5),
(6)
|
|
56.97 %
|
|
57.31 %
|
|
51.26 %
|
|
54.04 %
|
|
52.84 %
|
|
(0.34)
|
|
4.13
|
|
Operating non-interest
expense to average assets (1)
|
|
2.14 %
|
|
2.25 %
|
|
2.10 %
|
|
2.22 %
|
|
2.32 %
|
|
(0.11)
|
|
(0.18)
|
|
Operating ROAA
(1), (5)
|
|
1.04 %
|
|
0.89 %
|
|
1.23 %
|
|
1.27 %
|
|
0.74 %
|
|
0.15
|
|
0.30
|
|
Operating PPNR ROAA
(1), (5)
|
|
1.55 %
|
|
1.62 %
|
|
1.94 %
|
|
1.82 %
|
|
2.01 %
|
|
(0.07)
|
|
(0.46)
|
|
Operating return on
average common equity (1), (5)
|
|
10.89 %
|
|
9.81 %
|
|
13.40 %
|
|
13.77 %
|
|
8.66 %
|
|
1.08
|
|
2.23
|
|
Operating return on
average tangible common equity (1), (5)
|
|
16.12 %
|
|
15.14 %
|
|
20.48 %
|
|
21.13 %
|
|
10.64 %
|
|
0.98
|
|
5.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance
Sheet Yields, Rates, & Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on loans and
leases
|
|
6.13 %
|
|
6.13 %
|
|
6.08 %
|
|
5.95 %
|
|
5.55 %
|
|
—
|
|
0.58
|
|
Yield on earning
assets (2)
|
|
5.69 %
|
|
5.75 %
|
|
5.65 %
|
|
5.48 %
|
|
5.19 %
|
|
(0.06)
|
|
0.50
|
|
Cost of interest
bearing deposits
|
|
2.88 %
|
|
2.54 %
|
|
2.01 %
|
|
1.64 %
|
|
1.32 %
|
|
0.34
|
|
1.56
|
|
Cost of interest
bearing liabilities
|
|
3.25 %
|
|
3.02 %
|
|
2.72 %
|
|
2.45 %
|
|
1.82 %
|
|
0.23
|
|
1.43
|
|
Cost of total
deposits
|
|
1.92 %
|
|
1.63 %
|
|
1.23 %
|
|
0.99 %
|
|
0.80 %
|
|
0.29
|
|
1.12
|
|
Cost of total funding
(3)
|
|
2.27 %
|
|
2.05 %
|
|
1.81 %
|
|
1.61 %
|
|
1.16 %
|
|
0.22
|
|
1.11
|
|
Net interest margin
(2)
|
|
3.52 %
|
|
3.78 %
|
|
3.91 %
|
|
3.93 %
|
|
4.08 %
|
|
(0.26)
|
|
(0.56)
|
|
Average interest
bearing cash / Average interest earning assets
|
|
3.56 %
|
|
3.64 %
|
|
5.17 %
|
|
5.47 %
|
|
4.33 %
|
|
(0.08)
|
|
(0.77)
|
|
Average loans and
leases / Average interest earning assets
|
|
77.87 %
|
|
78.04 %
|
|
75.64 %
|
|
75.18 %
|
|
80.96 %
|
|
(0.17)
|
|
(3.09)
|
|
Average loans and
leases / Average total deposits
|
|
90.41 %
|
|
89.91 %
|
|
90.63 %
|
|
90.98 %
|
|
93.01 %
|
|
0.50
|
|
(2.60)
|
|
Average non-interest
bearing deposits / Average total deposits
|
|
33.29 %
|
|
35.88 %
|
|
38.55 %
|
|
40.05 %
|
|
39.55 %
|
|
(2.59)
|
|
(6.26)
|
|
Average total deposits
/ Average total funding (3)
|
|
90.09 %
|
|
90.02 %
|
|
86.66 %
|
|
85.59 %
|
|
91.36 %
|
|
0.07
|
|
(1.27)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select Credit &
Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans
and leases to total loans and leases
|
|
0.38 %
|
|
0.30 %
|
|
0.28 %
|
|
0.22 %
|
|
0.20 %
|
|
0.08
|
|
0.18
|
|
Non-performing assets
to total assets
|
|
0.28 %
|
|
0.22 %
|
|
0.20 %
|
|
0.15 %
|
|
0.14 %
|
|
0.06
|
|
0.14
|
|
Allowance for credit
losses to loans and leases
|
|
1.16 %
|
|
1.24 %
|
|
1.18 %
|
|
1.15 %
|
|
1.18 %
|
|
(0.08)
|
|
(0.02)
|
|
Total risk-based
capital ratio (4)
|
|
12.0 %
|
|
11.9 %
|
|
11.6 %
|
|
11.3 %
|
|
10.9 %
|
|
0.10
|
|
1.10
|
|
Common equity tier 1
risk-based capital ratio (4)
|
|
9.8 %
|
|
9.6 %
|
|
9.5 %
|
|
9.2 %
|
|
8.9 %
|
|
0.20
|
|
0.90
|
|
nm = Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
|
|
(1)
|
See GAAP to Non-GAAP
Reconciliation.
|
|
(2)
|
Tax-exempt interest has
been adjusted to a taxable equivalent basis using a 21% tax
rate.
|
|
(3)
|
Total funding = Total
deposits + Total borrowings.
|
|
(4)
|
Estimated holding
company ratios.
|
|
(5)
|
Non-interest expense
adjustments were revised subsequent to the Company's reporting of
its earnings results for the three months ended December 31, 2023.
The revision includes adding the FDIC special assessment to
the non-interest expense adjustments, which removes the special
assessment from the Company's calculation of operating non-interest
expense. The Company views the special assessment as an infrequent
expense that is outside the control of the Company.
|
|
(6)
|
The operating
efficiency ratio has been adjusted to remove B&O taxes and for
a tax-equivalent adjustment to BOLI income. The Company views
the adjusted operating efficiency ratio as a better representation
of its efficiency ratio when compared to other banks as it
normalizes for the tax treatment of the adjusted items. The
adjustment re-aligns Columbia's calculation of its operating
efficiency ratio with its pre-merger calculation.
|
|
Columbia Banking
System, Inc.
|
|
Loan & Lease
Portfolio Balances and Mix
|
|
(Unaudited)
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
%
Change
|
|
($ in
thousands)
|
Amount
|
|
Amount
|
|
Amount
|
|
Amount
|
|
Amount
|
|
Seq.
Quarter
|
|
Year
over
Year
|
|
Loans and
leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied
term, net
|
$
6,557,768
|
|
$
6,482,940
|
|
$
6,490,638
|
|
$
6,434,673
|
|
$
6,353,550
|
|
1 %
|
|
3 %
|
|
Owner occupied term,
net
|
5,231,676
|
|
5,195,605
|
|
5,235,227
|
|
5,254,401
|
|
5,156,848
|
|
1 %
|
|
1 %
|
|
Multifamily,
net
|
5,828,960
|
|
5,704,734
|
|
5,684,495
|
|
5,622,875
|
|
5,590,587
|
|
2 %
|
|
4 %
|
|
Construction &
development, net
|
1,728,652
|
|
1,747,302
|
|
1,669,918
|
|
1,528,924
|
|
1,467,561
|
|
(1) %
|
|
18 %
|
|
Residential
development, net
|
284,117
|
|
323,899
|
|
354,922
|
|
388,641
|
|
440,667
|
|
(12) %
|
|
(36) %
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term, net
|
5,544,450
|
|
5,536,765
|
|
5,437,915
|
|
5,449,787
|
|
5,906,774
|
|
— %
|
|
(6) %
|
|
Lines of credit &
other, net
|
2,491,557
|
|
2,430,127
|
|
2,353,548
|
|
2,268,790
|
|
2,184,762
|
|
3 %
|
|
14 %
|
|
Leases & equipment
finance, net
|
1,706,759
|
|
1,729,512
|
|
1,728,991
|
|
1,740,037
|
|
1,746,267
|
|
(1) %
|
|
(2) %
|
|
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage,
net
|
6,128,884
|
|
6,157,166
|
|
6,121,838
|
|
6,272,898
|
|
6,187,964
|
|
— %
|
|
(1) %
|
|
Home equity loans
& lines, net
|
1,950,421
|
|
1,938,166
|
|
1,899,948
|
|
1,898,958
|
|
1,870,002
|
|
1 %
|
|
4 %
|
|
Consumer
& other, net
|
189,169
|
|
195,735
|
|
193,158
|
|
189,315
|
|
186,298
|
|
(3) %
|
|
2 %
|
|
Total loans and
leases, net of deferred fees and costs
|
$
37,642,413
|
|
$
37,441,951
|
|
$
37,170,598
|
|
$
37,049,299
|
|
$
37,091,280
|
|
1 %
|
|
1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases
mix:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner
occupied term, net
|
17 %
|
|
17 %
|
|
17 %
|
|
17 %
|
|
16 %
|
|
|
|
|
|
Owner
occupied term, net
|
14 %
|
|
14 %
|
|
14 %
|
|
14 %
|
|
14 %
|
|
|
|
|
|
Multifamily, net
|
15 %
|
|
15 %
|
|
15 %
|
|
15 %
|
|
15 %
|
|
|
|
|
|
Construction &
development, net
|
5 %
|
|
5 %
|
|
4 %
|
|
4 %
|
|
4 %
|
|
|
|
|
|
Residential
development, net
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term, net
|
15 %
|
|
15 %
|
|
15 %
|
|
15 %
|
|
16 %
|
|
|
|
|
|
Lines of credit &
other, net
|
6 %
|
|
6 %
|
|
6 %
|
|
6 %
|
|
6 %
|
|
|
|
|
|
Leases & equipment
finance, net
|
5 %
|
|
5 %
|
|
5 %
|
|
5 %
|
|
5 %
|
|
|
|
|
|
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage,
net
|
16 %
|
|
16 %
|
|
17 %
|
|
17 %
|
|
17 %
|
|
|
|
|
|
Home equity loans
& lines, net
|
5 %
|
|
5 %
|
|
5 %
|
|
5 %
|
|
5 %
|
|
|
|
|
|
Consumer
& other, net
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
|
|
|
|
Total
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
|
|
|
Columbia Banking
System, Inc.
|
|
Deposit Portfolio
Balances and Mix
|
|
(Unaudited)
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
%
Change
|
|
($ in
thousands)
|
Amount
|
|
Amount
|
|
Amount
|
|
Amount
|
|
Amount
|
|
Seq.
Quarter
|
|
Year
over
Year
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand, non-interest
bearing
|
$
13,808,554
|
|
$
14,256,452
|
|
$
15,532,948
|
|
$
16,019,408
|
|
$
17,215,781
|
|
(3) %
|
|
(20) %
|
|
Demand, interest
bearing
|
8,095,211
|
|
8,044,432
|
|
6,898,831
|
|
6,300,082
|
|
5,900,462
|
|
1 %
|
|
37 %
|
|
Money
market
|
10,822,498
|
|
10,324,454
|
|
10,349,217
|
|
10,115,908
|
|
10,681,422
|
|
5 %
|
|
1 %
|
|
Savings
|
2,640,060
|
|
2,754,113
|
|
3,018,706
|
|
3,171,714
|
|
3,469,112
|
|
(4) %
|
|
(24) %
|
|
Time
|
6,339,837
|
|
6,227,569
|
|
5,824,666
|
|
5,227,805
|
|
4,319,570
|
|
2 %
|
|
47 %
|
|
Total
|
$
41,706,160
|
|
$
41,607,020
|
|
$
41,624,368
|
|
$
40,834,917
|
|
$
41,586,347
|
|
— %
|
|
— %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total core deposits
(1)
|
$
37,436,569
|
|
$
37,423,402
|
|
$
37,597,830
|
|
$
37,639,368
|
|
$
39,155,298
|
|
— %
|
|
(4) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
mix:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand, non-interest
bearing
|
33 %
|
|
34 %
|
|
37 %
|
|
39 %
|
|
41 %
|
|
|
|
|
|
Demand, interest
bearing
|
20 %
|
|
19 %
|
|
17 %
|
|
15 %
|
|
14 %
|
|
|
|
|
|
Money
market
|
26 %
|
|
25 %
|
|
25 %
|
|
25 %
|
|
26 %
|
|
|
|
|
|
Savings
|
6 %
|
|
7 %
|
|
7 %
|
|
8 %
|
|
9 %
|
|
|
|
|
|
Time
|
15 %
|
|
15 %
|
|
14 %
|
|
13 %
|
|
10 %
|
|
|
|
|
|
Total
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
|
|
|
(1)
|
Core deposits are
defined as total deposits less time deposits greater than $250,000
and all brokered deposits.
|
|
Columbia Banking
System, Inc.
|
|
Credit Quality –
Non-performing Assets
|
|
(Unaudited)
|
|
|
Quarter
Ended
|
|
%
Change
|
|
($ in
thousands)
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Seq.
Quarter
|
|
Year
over
Year
|
|
Non-performing
assets: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases on
non-accrual status:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
$ 39,736
|
|
$ 28,689
|
|
$ 26,053
|
|
$ 10,994
|
|
$ 15,612
|
|
39 %
|
|
155 %
|
|
Commercial,
net
|
58,960
|
|
45,682
|
|
44,341
|
|
39,316
|
|
42,301
|
|
29 %
|
|
39 %
|
|
Total loans and leases
on non-accrual status
|
98,696
|
|
74,371
|
|
70,394
|
|
50,310
|
|
57,913
|
|
33 %
|
|
70 %
|
|
Loans and leases past
due 90+ days and accruing: (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
253
|
|
870
|
|
71
|
|
184
|
|
1
|
|
(71) %
|
|
nm
|
|
Commercial,
net
|
10,733
|
|
8,232
|
|
8,606
|
|
7,720
|
|
151
|
|
30 %
|
|
nm
|
|
Residential, net
(2)
|
31,916
|
|
29,102
|
|
25,180
|
|
21,370
|
|
17,423
|
|
10 %
|
|
83 %
|
|
Consumer & other,
net
|
437
|
|
326
|
|
240
|
|
399
|
|
140
|
|
34 %
|
|
212 %
|
|
Total loans and leases
past due 90+ days and accruing
|
43,339
|
|
38,530
|
|
34,097
|
|
29,673
|
|
17,715
|
|
12 %
|
|
145 %
|
|
Total non-performing
loans and leases (1), (2)
|
142,035
|
|
112,901
|
|
104,491
|
|
79,983
|
|
75,628
|
|
26 %
|
|
88 %
|
|
Other real estate
owned
|
1,762
|
|
1,036
|
|
1,170
|
|
278
|
|
409
|
|
70 %
|
|
331 %
|
|
Total non-performing
assets (1), (2)
|
$
143,797
|
|
$
113,937
|
|
$
105,661
|
|
$ 80,261
|
|
$ 76,037
|
|
26 %
|
|
89 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases past
due 31-89 days
|
$
109,673
|
|
$ 85,235
|
|
$ 82,918
|
|
$ 73,376
|
|
$ 78,641
|
|
29 %
|
|
39 %
|
|
Loans and leases past
due 31-89 days to total loans and leases
|
0.29 %
|
|
0.23 %
|
|
0.22 %
|
|
0.20 %
|
|
0.21 %
|
|
0.06
|
|
0.08
|
|
Non-performing loans
and leases to total loans and leases (1), (2)
|
0.38 %
|
|
0.30 %
|
|
0.28 %
|
|
0.22 %
|
|
0.20 %
|
|
0.08
|
|
0.18
|
|
Non-performing assets
to total assets (1), (2)
|
0.28 %
|
|
0.22 %
|
|
0.20 %
|
|
0.15 %
|
|
0.14 %
|
|
0.06
|
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nm = Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
|
|
(1)
|
Non-accrual and 90+
days past due loans include government guarantees of $43.0 million,
$31.6 million, $26.9 million, $26.6 million, and $24.4 million at
March 31, 2024, December 31, 2023, September 30, 2023, June 30,
2023, and March 31, 2023, respectively.
|
|
(2)
|
Excludes certain
mortgage loans guaranteed by Ginnie Mae, which Columbia has the
unilateral right to repurchase but has not done so, totaling $1.6
million, $1.0 million, $700,000, $1.6 million, and $5.4 million at
March 31, 2024, December 31, 2023, September 30,
2023, June 30, 2023, and March 31, 2023,
respectively.
|
|
Columbia Banking
System, Inc.
|
|
Credit Quality –
Allowance for Credit Losses
|
|
(Unaudited)
|
|
|
Quarter
Ended
|
|
%
Change
|
|
($ in
thousands)
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Seq.
Quarter
|
|
Year
over
Year
|
|
Allowance for credit
losses on loans and leases (ACLLL)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of
period
|
$
440,871
|
|
$
416,560
|
|
$
404,603
|
|
$
417,464
|
|
$
301,135
|
|
6 %
|
|
46 %
|
|
Initial ACL recorded
for PCD loans acquired during the period
|
—
|
|
—
|
|
—
|
|
—
|
|
26,492
|
|
nm
|
|
(100) %
|
|
Provision for credit
losses on loans and leases (1)
|
17,476
|
|
53,183
|
|
35,082
|
|
15,216
|
|
106,498
|
|
(67) %
|
|
(84) %
|
|
Charge-offs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
(161)
|
|
(629)
|
|
—
|
|
(174)
|
|
—
|
|
(74) %
|
|
nm
|
|
Commercial,
net
|
(47,232)
|
|
(31,949)
|
|
(26,629)
|
|
(32,036)
|
|
(19,248)
|
|
48 %
|
|
145 %
|
|
Residential,
net
|
(490)
|
|
(89)
|
|
(206)
|
|
(4)
|
|
(248)
|
|
451 %
|
|
98 %
|
|
Consumer & other,
net
|
(1,870)
|
|
(1,841)
|
|
(1,884)
|
|
(1,264)
|
|
(773)
|
|
2 %
|
|
142 %
|
|
Total
charge-offs
|
(49,753)
|
|
(34,508)
|
|
(28,719)
|
|
(33,478)
|
|
(20,269)
|
|
44 %
|
|
145 %
|
|
Recoveries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
358
|
|
35
|
|
31
|
|
209
|
|
58
|
|
nm
|
|
nm
|
|
Commercial,
net
|
4,732
|
|
4,414
|
|
4,901
|
|
4,511
|
|
3,058
|
|
7 %
|
|
55 %
|
|
Residential,
net
|
170
|
|
781
|
|
156
|
|
63
|
|
123
|
|
(78) %
|
|
38 %
|
|
Consumer & other,
net
|
490
|
|
406
|
|
506
|
|
618
|
|
369
|
|
21 %
|
|
33 %
|
|
Total
recoveries
|
5,750
|
|
5,636
|
|
5,594
|
|
5,401
|
|
3,608
|
|
2 %
|
|
59 %
|
|
Net (charge-offs)
recoveries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
197
|
|
(594)
|
|
31
|
|
35
|
|
58
|
|
nm
|
|
240 %
|
|
Commercial,
net
|
(42,500)
|
|
(27,535)
|
|
(21,728)
|
|
(27,525)
|
|
(16,190)
|
|
54 %
|
|
163 %
|
|
Residential,
net
|
(320)
|
|
692
|
|
(50)
|
|
59
|
|
(125)
|
|
(146) %
|
|
156 %
|
|
Consumer & other,
net
|
(1,380)
|
|
(1,435)
|
|
(1,378)
|
|
(646)
|
|
(404)
|
|
(4) %
|
|
242 %
|
|
Total net
charge-offs
|
(44,003)
|
|
(28,872)
|
|
(23,125)
|
|
(28,077)
|
|
(16,661)
|
|
52 %
|
|
164 %
|
|
Balance, end of
period
|
$
414,344
|
|
$
440,871
|
|
$
416,560
|
|
$
404,603
|
|
$
417,464
|
|
(6) %
|
|
(1) %
|
|
Reserve for unfunded
commitments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of
period
|
$ 23,208
|
|
$ 21,482
|
|
$ 19,827
|
|
$ 19,029
|
|
$ 14,221
|
|
8 %
|
|
63 %
|
|
Initial ACL recorded
for unfunded commitments acquired during the period
|
—
|
|
—
|
|
—
|
|
—
|
|
5,767
|
|
nm
|
|
(100) %
|
|
(Recapture)
provision for credit losses on unfunded
commitments
|
(340)
|
|
1,726
|
|
1,655
|
|
798
|
|
(959)
|
|
(120) %
|
|
(65) %
|
|
Balance, end of
period
|
22,868
|
|
23,208
|
|
21,482
|
|
19,827
|
|
19,029
|
|
(1) %
|
|
20 %
|
|
Total Allowance for
credit losses (ACL)
|
$
437,212
|
|
$
464,079
|
|
$
438,042
|
|
$
424,430
|
|
$
436,493
|
|
(6) %
|
|
— %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs to
average loans and leases (annualized)
|
0.47 %
|
|
0.31 %
|
|
0.25 %
|
|
0.30 %
|
|
0.23 %
|
|
0.16
|
|
0.24
|
|
Recoveries to gross
charge-offs
|
11.56 %
|
|
16.33 %
|
|
19.48 %
|
|
16.13 %
|
|
17.80 %
|
|
(4.77)
|
|
(6.24)
|
|
ACLLL to loans and
leases
|
1.10 %
|
|
1.18 %
|
|
1.12 %
|
|
1.09 %
|
|
1.13 %
|
|
(0.08)
|
|
(0.03)
|
|
ACL to loans and
leases
|
1.16 %
|
|
1.24 %
|
|
1.18 %
|
|
1.15 %
|
|
1.18 %
|
|
(0.08)
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nm = Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
|
|
(1)
|
For the quarter ended
March 31, 2023, the provision for credit losses on loans and leases
includes $88.4 million initial provision related to non-PCD
loans acquired during the period.
|
|
Columbia Banking
System, Inc.
|
|
Consolidated Average
Balance Sheets, Net Interest Income, and
Yields/Rates
|
|
(Unaudited)
|
|
Quarter
Ended
|
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
|
($ in
thousands)
|
Average
Balance
|
|
Interest
Income or
Expense
|
|
Average
Yields or
Rates
|
|
Average
Balance
|
|
Interest
Income or
Expense
|
|
Average
Yields or
Rates
|
|
Average
Balance
|
|
Interest
Income or
Expense
|
|
Average
Yields or
Rates
|
|
INTEREST-EARNING
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
$
30,550
|
|
$ 525
|
|
6.88 %
|
|
$
48,868
|
|
$ 649
|
|
5.31 %
|
|
$
54,008
|
|
$ 799
|
|
5.92 %
|
|
Loans and leases
(1)
|
37,597,101
|
|
574,519
|
|
6.13 %
|
|
37,333,310
|
|
577,092
|
|
6.13 %
|
|
29,998,630
|
|
412,726
|
|
5.55 %
|
|
Taxable
securities
|
8,081,003
|
|
78,724
|
|
3.90 %
|
|
7,903,053
|
|
82,872
|
|
4.19 %
|
|
4,960,966
|
|
40,448
|
|
3.26 %
|
|
Non-taxable securities
(2)
|
851,342
|
|
7,886
|
|
3.71 %
|
|
809,551
|
|
8,073
|
|
3.99 %
|
|
437,020
|
|
4,068
|
|
3.72 %
|
|
Temporary investments
and interest-bearing cash
|
1,720,791
|
|
23,553
|
|
5.51 %
|
|
1,743,447
|
|
24,055
|
|
5.47 %
|
|
1,605,081
|
|
18,581
|
|
4.69 %
|
|
Total interest-earning
assets
|
48,280,787
|
|
$ 685,207
|
|
5.69 %
|
|
47,838,229
|
|
$ 692,741
|
|
5.75 %
|
|
37,055,705
|
|
$ 476,622
|
|
5.19 %
|
|
Goodwill and other
intangible assets
|
1,619,134
|
|
|
|
|
|
1,652,282
|
|
|
|
|
|
623,042
|
|
|
|
|
|
Other assets
|
2,184,052
|
|
|
|
|
|
2,341,845
|
|
|
|
|
|
1,747,228
|
|
|
|
|
|
Total assets
|
$
52,083,973
|
|
|
|
|
|
$
51,832,356
|
|
|
|
|
|
$
39,425,975
|
|
|
|
|
|
INTEREST-BEARING
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
$
8,035,339
|
|
$
51,378
|
|
2.57 %
|
|
$
7,617,427
|
|
$
44,861
|
|
2.34 %
|
|
$
4,759,251
|
|
$ 9,815
|
|
0.84 %
|
|
Money market
deposits
|
10,612,073
|
|
72,497
|
|
2.75 %
|
|
10,276,894
|
|
61,055
|
|
2.36 %
|
|
8,845,784
|
|
32,238
|
|
1.48 %
|
|
Savings
deposits
|
2,688,360
|
|
715
|
|
0.11 %
|
|
2,880,622
|
|
698
|
|
0.10 %
|
|
2,686,388
|
|
556
|
|
0.08 %
|
|
Time
deposits
|
6,406,807
|
|
73,845
|
|
4.64 %
|
|
5,847,400
|
|
64,045
|
|
4.35 %
|
|
3,205,128
|
|
21,004
|
|
2.66 %
|
|
Total interest-bearing
deposits
|
27,742,579
|
|
198,435
|
|
2.88 %
|
|
26,622,343
|
|
170,659
|
|
2.54 %
|
|
19,496,551
|
|
63,613
|
|
1.32 %
|
|
Repurchase agreements
and federal funds purchased
|
231,667
|
|
1,266
|
|
2.20 %
|
|
245,989
|
|
1,226
|
|
1.98 %
|
|
281,032
|
|
406
|
|
0.59 %
|
|
Borrowings
|
3,920,879
|
|
51,275
|
|
5.26 %
|
|
3,918,261
|
|
56,066
|
|
5.68 %
|
|
2,352,715
|
|
28,764
|
|
4.96 %
|
|
Junior and other
subordinated debentures
|
423,528
|
|
9,887
|
|
9.39 %
|
|
440,007
|
|
10,060
|
|
9.07 %
|
|
417,966
|
|
8,470
|
|
8.22 %
|
|
Total interest-bearing
liabilities
|
32,318,653
|
|
$ 260,863
|
|
3.25 %
|
|
31,226,600
|
|
$ 238,011
|
|
3.02 %
|
|
22,548,264
|
|
$ 101,253
|
|
1.82 %
|
|
Non-interest-bearing
deposits
|
13,841,582
|
|
|
|
|
|
14,899,001
|
|
|
|
|
|
12,755,080
|
|
|
|
|
|
Other
liabilities
|
937,863
|
|
|
|
|
|
1,011,019
|
|
|
|
|
|
772,870
|
|
|
|
|
|
Total
liabilities
|
47,098,098
|
|
|
|
|
|
47,136,620
|
|
|
|
|
|
36,076,214
|
|
|
|
|
|
Common
equity
|
4,985,875
|
|
|
|
|
|
4,695,736
|
|
|
|
|
|
3,349,761
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
52,083,973
|
|
|
|
|
|
$
51,832,356
|
|
|
|
|
|
$
39,425,975
|
|
|
|
|
|
NET INTEREST INCOME
(2)
|
|
|
$ 424,344
|
|
|
|
|
|
$ 454,730
|
|
|
|
|
|
$ 375,369
|
|
|
|
NET INTEREST
SPREAD
|
|
|
|
|
2.44 %
|
|
|
|
|
|
2.73 %
|
|
|
|
|
|
3.37 %
|
|
NET INTEREST INCOME
TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)
|
|
|
|
|
3.52 %
|
|
|
|
|
|
3.78 %
|
|
|
|
|
|
4.08 %
|
|
(1)
|
Non-accrual loans and
leases are included in the average balance.
|
|
(2)
|
Tax-exempt income has
been adjusted to a tax equivalent basis at a 21% tax rate. The
amount of such adjustment was an addition to recorded income of
approximately $982,000 for the three months ended March 31, 2024,
as compared to $1.1 million for the three months ended December 31,
2023 and $671,000 for the three months ended March 31,
2023.
|
|
Columbia Banking
System, Inc.
|
|
Residential Mortgage
Banking Activity
|
|
(Unaudited)
|
|
Quarter
Ended
|
|
%
Change
|
|
($ in
thousands)
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Seq.
Quarter
|
|
Year
over
Year
|
|
Residential mortgage
banking revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination and
sale
|
$
2,920
|
|
$
2,686
|
|
$
2,442
|
|
$
3,166
|
|
$
3,587
|
|
9 %
|
|
(19) %
|
|
Servicing
|
6,021
|
|
5,966
|
|
8,887
|
|
9,167
|
|
9,397
|
|
1 %
|
|
(36) %
|
|
Change in fair value of
MSR asset:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes due to
collection/realization of expected cash flows over time
|
(3,153)
|
|
(3,215)
|
|
(4,801)
|
|
(4,797)
|
|
(4,881)
|
|
(2) %
|
|
(35) %
|
|
Changes due to
valuation inputs or assumptions
|
3,117
|
|
(6,251)
|
|
5,308
|
|
(2,242)
|
|
(2,937)
|
|
nm
|
|
nm
|
|
MSR hedge (loss)
gain
|
(4,271)
|
|
5,026
|
|
(4,733)
|
|
(7,636)
|
|
2,650
|
|
(185) %
|
|
(261) %
|
|
Total
|
$
4,634
|
|
$
4,212
|
|
$
7,103
|
|
$ (2,342)
|
|
$
7,816
|
|
10 %
|
|
(41) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closed loan volume
for-sale
|
$ 86,903
|
|
$ 87,033
|
|
$
103,333
|
|
$
119,476
|
|
$
131,726
|
|
— %
|
|
(34) %
|
|
Gain on sale
margin
|
3.36 %
|
|
3.09 %
|
|
2.36 %
|
|
2.65 %
|
|
2.72 %
|
|
0.27
|
|
0.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
servicing rights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of
period
|
$
109,243
|
|
$
117,640
|
|
$
172,929
|
|
$
178,800
|
|
$
185,017
|
|
(7) %
|
|
(41) %
|
|
Additions for new MSR
capitalized
|
1,237
|
|
920
|
|
1,658
|
|
1,168
|
|
1,601
|
|
34 %
|
|
(23) %
|
|
Sale of MSR
assets
|
—
|
|
149
|
|
(57,454)
|
|
—
|
|
—
|
|
(100) %
|
|
nm
|
|
Change in fair value of
MSR asset:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes due to
collection/realization of expected cash flows over time
|
(3,153)
|
|
(3,215)
|
|
(4,801)
|
|
(4,797)
|
|
(4,881)
|
|
(2) %
|
|
(35) %
|
|
Changes due to
valuation inputs or assumptions
|
3,117
|
|
(6,251)
|
|
5,308
|
|
(2,242)
|
|
(2,937)
|
|
nm
|
|
nm
|
|
Balance, end of
period
|
$
110,444
|
|
$
109,243
|
|
$
117,640
|
|
$
172,929
|
|
$
178,800
|
|
1 %
|
|
(38) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans serviced for others
|
$ 8,081,039
|
|
$ 8,175,664
|
|
$ 8,240,950
|
|
$
12,726,615
|
|
$
12,914,046
|
|
(1) %
|
|
(37) %
|
|
MSR as % of serviced
portfolio
|
1.37 %
|
|
1.34 %
|
|
1.43 %
|
|
1.36 %
|
|
1.38 %
|
|
0.03
|
|
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nm = Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
Non-GAAP Financial Measures
In addition to results presented in accordance with generally
accepted accounting principles in the
United States of America ("GAAP"), this press release
contains certain non-GAAP financial measures. The company believes
presenting certain non-GAAP financial measures provides investors
with information useful in understanding our financial performance,
our performance trends, and our financial position. We utilize
these measures for internal planning and forecasting purposes. We,
as well as securities analysts, investors, and other interested
parties, also use these measures to compare peer company operating
performance. We believe that our presentation and discussion,
together with the accompanying reconciliations, provides a complete
understanding of factors and trends affecting our business and
allows investors to view performance in a manner similar to
management. These non-GAAP measures should not be considered a
substitution for GAAP basis measures and results, and we strongly
encourage investors to review our consolidated financial statements
in their entirety and not to rely on any single financial measure.
Because non-GAAP financial measures are not standardized, it may
not be possible to compare these financial measures with other
companies' non-GAAP financial measures having the same or similar
names.
|
Columbia Banking
System, Inc.
|
|
GAAP to Non-GAAP
Reconciliation
|
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
%
Change
|
|
($ in thousands,
except per share data)
|
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Seq.
Quarter
|
|
Year
over
Year
|
|
Total shareholders'
equity
|
a
|
|
$ 4,957,245
|
|
$ 4,995,034
|
|
$ 4,632,162
|
|
$ 4,828,188
|
|
$ 4,884,723
|
|
(1) %
|
|
1 %
|
|
Less:
Goodwill
|
|
|
1,029,234
|
|
1,029,234
|
|
1,029,234
|
|
1,029,234
|
|
1,030,142
|
|
— %
|
|
— %
|
|
Less: Other intangible
assets, net
|
|
|
571,588
|
|
603,679
|
|
636,883
|
|
666,762
|
|
702,315
|
|
(5) %
|
|
(19) %
|
|
Tangible common
shareholders' equity
|
b
|
|
$ 3,356,423
|
|
$ 3,362,121
|
|
$ 2,966,045
|
|
$ 3,132,192
|
|
$ 3,152,266
|
|
— %
|
|
6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
c
|
|
$
52,224,006
|
|
$
52,173,596
|
|
$
51,993,815
|
|
$
53,592,096
|
|
$
53,994,226
|
|
— %
|
|
(3) %
|
|
Less:
Goodwill
|
|
|
1,029,234
|
|
1,029,234
|
|
1,029,234
|
|
1,029,234
|
|
1,030,142
|
|
— %
|
|
— %
|
|
Less: Other intangible
assets, net
|
|
|
571,588
|
|
603,679
|
|
636,883
|
|
666,762
|
|
702,315
|
|
(5) %
|
|
(19) %
|
|
Tangible
assets
|
d
|
|
$
50,623,184
|
|
$
50,540,683
|
|
$
50,327,698
|
|
$
51,896,100
|
|
$
52,261,769
|
|
— %
|
|
(3) %
|
|
Common shares
outstanding at period end
|
e
|
|
209,370
|
|
208,585
|
|
208,575
|
|
208,514
|
|
208,429
|
|
— %
|
|
— %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity to total assets ratio
|
a / c
|
|
9.49 %
|
|
9.57 %
|
|
8.91 %
|
|
9.01 %
|
|
9.05 %
|
|
(0.08)
|
|
0.44
|
|
Tangible common equity
ratio
|
b / d
|
|
6.63 %
|
|
6.65 %
|
|
5.89 %
|
|
6.04 %
|
|
6.03 %
|
|
(0.02)
|
|
0.60
|
|
Book value per common
share
|
a / e
|
|
$
23.68
|
|
$
23.95
|
|
$
22.21
|
|
$
23.16
|
|
$
23.44
|
|
(1) %
|
|
1 %
|
|
Tangible book value per
common share
|
b / e
|
|
$
16.03
|
|
$
16.12
|
|
$
14.22
|
|
$
15.02
|
|
$
15.12
|
|
(1) %
|
|
6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Columbia Banking
System, Inc.
|
|
GAAP to Non-GAAP
Reconciliation - Continued
|
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
%
Change
|
|
($ in
thousands)
|
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Seq.
Quarter
|
|
Year
over
Year
|
|
Non-Interest Income
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of debt
securities, net
|
|
|
$
12
|
|
$
9
|
|
$
4
|
|
$
—
|
|
$
—
|
|
33 %
|
|
nm
|
|
(Loss) gain on equity
securities, net
|
|
|
(1,565)
|
|
2,636
|
|
(2,055)
|
|
(697)
|
|
2,416
|
|
(159) %
|
|
(165) %
|
|
Gain (loss) on swap
derivatives
|
|
|
1,197
|
|
(8,042)
|
|
5,700
|
|
1,288
|
|
(3,543)
|
|
nm
|
|
nm
|
|
Change in fair value
of certain loans held for investment
|
|
|
(2,372)
|
|
19,354
|
|
(19,247)
|
|
(6,965)
|
|
9,488
|
|
(112) %
|
|
(125) %
|
|
Change in fair value
of MSR due to valuation inputs or assumptions
|
|
|
3,116
|
|
(6,251)
|
|
5,308
|
|
(2,242)
|
|
(2,937)
|
|
nm
|
|
nm
|
|
MSR hedge (loss)
gain
|
|
|
(4,271)
|
|
5,026
|
|
(4,733)
|
|
(7,636)
|
|
2,650
|
|
(185) %
|
|
(261) %
|
|
Total non-interest
income adjustments
|
a
|
|
$
(3,883)
|
|
$
12,732
|
|
$
(15,023)
|
|
$
(16,252)
|
|
$
8,074
|
|
(130) %
|
|
(148) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expense
|
|
|
$
4,478
|
|
$
7,174
|
|
$
18,938
|
|
$
29,649
|
|
$
115,898
|
|
(38) %
|
|
(96) %
|
|
Exit and disposal
costs
|
|
|
1,272
|
|
2,791
|
|
4,017
|
|
2,119
|
|
1,291
|
|
(54) %
|
|
(1) %
|
|
FDIC
special assessment (2)
|
|
|
4,848
|
|
32,923
|
|
—
|
|
—
|
|
—
|
|
(85) %
|
|
nm
|
|
Total non-interest
expense adjustments
|
b
|
|
$
10,598
|
|
$
42,888
|
|
$
22,955
|
|
$
31,768
|
|
$
117,189
|
|
(75) %
|
|
(91) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
c
|
|
$
423,362
|
|
$
453,623
|
|
$
480,875
|
|
$
483,975
|
|
$
374,698
|
|
(7) %
|
|
13 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income
(GAAP)
|
d
|
|
$
50,357
|
|
$
65,533
|
|
$
43,981
|
|
$
39,678
|
|
$
54,735
|
|
(23) %
|
|
(8) %
|
|
Less: Non-interest
income adjustments
|
a
|
|
3,883
|
|
(12,732)
|
|
15,023
|
|
16,252
|
|
(8,074)
|
|
nm
|
|
nm
|
|
Operating
non-interest income (non-GAAP)
|
e
|
|
$
54,240
|
|
$
52,801
|
|
$
59,004
|
|
$
55,930
|
|
$
46,661
|
|
3 %
|
|
16 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
(GAAP)
|
f=c+d
|
|
$
473,719
|
|
$
519,156
|
|
$
524,856
|
|
$
523,653
|
|
$
429,433
|
|
(9) %
|
|
10 %
|
|
Operating revenue
(non-GAAP)
|
g=c+e
|
|
$
477,602
|
|
$
506,424
|
|
$
539,879
|
|
$
539,905
|
|
$
421,359
|
|
(6) %
|
|
13 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense
(GAAP)
|
h
|
|
$
287,516
|
|
$
337,176
|
|
$
304,147
|
|
$
328,559
|
|
$
342,818
|
|
(15) %
|
|
(16) %
|
|
Less: Non-interest
expense adjustments
|
b
|
|
(10,598)
|
|
(42,888)
|
|
(22,955)
|
|
(31,768)
|
|
(117,189)
|
|
(75) %
|
|
(91) %
|
|
Operating
non-interest expense (non-GAAP)
|
i
|
|
$
276,918
|
|
$
294,288
|
|
$
281,192
|
|
$
296,791
|
|
$
225,629
|
|
(6) %
|
|
23 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
(GAAP)
|
j
|
|
$
124,080
|
|
$
93,531
|
|
$
135,845
|
|
$
133,377
|
|
$
(14,038)
|
|
33 %
|
|
nm
|
|
Provision (benefit) for
income taxes
|
|
|
44,987
|
|
33,540
|
|
48,127
|
|
45,703
|
|
(4,886)
|
|
34 %
|
|
nm
|
|
Income (loss) before
provision for income taxes
|
|
|
169,067
|
|
127,071
|
|
183,972
|
|
179,080
|
|
(18,924)
|
|
33 %
|
|
nm
|
|
Provision for credit
losses
|
|
|
17,136
|
|
54,909
|
|
36,737
|
|
16,014
|
|
105,539
|
|
(69) %
|
|
(84) %
|
|
Pre-provision net
revenue (PPNR) (non-GAAP)
|
k
|
|
186,203
|
|
181,980
|
|
220,709
|
|
195,094
|
|
86,615
|
|
2 %
|
|
115 %
|
|
Less: Non-interest
income adjustments
|
a
|
|
3,883
|
|
(12,732)
|
|
15,023
|
|
16,252
|
|
(8,074)
|
|
nm
|
|
nm
|
|
Add: Non-interest
expense adjustments
|
b
|
|
10,598
|
|
42,888
|
|
22,955
|
|
31,768
|
|
117,189
|
|
(75) %
|
|
(91) %
|
|
Operating PPNR
(non-GAAP)
|
l
|
|
$
200,684
|
|
$
212,136
|
|
$
258,687
|
|
$
243,114
|
|
$
195,730
|
|
(5) %
|
|
3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
(GAAP)
|
j
|
|
$
124,080
|
|
$
93,531
|
|
$
135,845
|
|
$
133,377
|
|
$
(14,038)
|
|
33 %
|
|
nm
|
|
Less: Non-interest
income adjustments
|
a
|
|
3,883
|
|
(12,732)
|
|
15,023
|
|
16,252
|
|
(8,074)
|
|
nm
|
|
nm
|
|
Add: Non-interest
expense adjustments
|
b
|
|
10,598
|
|
42,888
|
|
22,955
|
|
31,768
|
|
117,189
|
|
(75) %
|
|
(91) %
|
|
Tax effect of
adjustments
|
|
|
(3,620)
|
|
(7,539)
|
|
(9,482)
|
|
(11,981)
|
|
(23,565)
|
|
(52) %
|
|
(85) %
|
|
Operating net income
(non-GAAP)
|
m
|
|
$
134,941
|
|
$
116,148
|
|
$
164,341
|
|
$
169,416
|
|
$
71,512
|
|
16 %
|
|
89 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nm = Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Columbia Banking
System, Inc.
|
|
GAAP to Non-GAAP
Reconciliation - Continued
|
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
%
Change
|
|
($ in thousands,
except per share data)
|
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Seq.
Quarter
|
|
Year
over Year
|
|
Average
assets
|
n
|
|
$
52,083,973
|
|
$
51,832,356
|
|
$
53,011,361
|
|
$
53,540,574
|
|
$
39,425,975
|
|
— %
|
|
32 %
|
|
Less: Average goodwill
and other intangible assets, net
|
|
|
1,619,134
|
|
1,652,282
|
|
1,684,093
|
|
1,718,705
|
|
623,042
|
|
(2) %
|
|
160 %
|
|
Average tangible
assets
|
o
|
|
$
50,464,839
|
|
$
50,180,074
|
|
$
51,327,268
|
|
$
51,821,869
|
|
$
38,802,933
|
|
1 %
|
|
30 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common
shareholders' equity
|
p
|
|
$ 4,985,875
|
|
$ 4,695,736
|
|
$ 4,866,975
|
|
$
4,935,239
|
|
$ 3,349,761
|
|
6 %
|
|
49 %
|
|
Less: Average goodwill
and other intangible assets, net
|
|
|
1,619,134
|
|
1,652,282
|
|
1,684,093
|
|
1,718,705
|
|
623,042
|
|
(2) %
|
|
160 %
|
|
Average tangible
common equity
|
q
|
|
$ 3,366,741
|
|
$ 3,043,454
|
|
$ 3,182,882
|
|
$
3,216,534
|
|
$ 2,726,719
|
|
11 %
|
|
23 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
r
|
|
208,260
|
|
208,083
|
|
208,070
|
|
207,977
|
|
156,383
|
|
— %
|
|
33 %
|
|
Weighted average
diluted shares outstanding
|
s
|
|
208,956
|
|
208,739
|
|
208,645
|
|
208,545
|
|
156,383
|
|
— %
|
|
34 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select Per-Share
& Performance Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings-per-share -
basic
|
j / r
|
|
$
0.60
|
|
$
0.45
|
|
$
0.65
|
|
$
0.64
|
|
$
(0.09)
|
|
33 %
|
|
nm
|
|
Earnings-per-share -
diluted
|
j / s
|
|
$
0.59
|
|
$
0.45
|
|
$
0.65
|
|
$
0.64
|
|
$
(0.09)
|
|
31 %
|
|
nm
|
|
Efficiency ratio
(1)
|
h / f
|
|
60.57 %
|
|
64.81 %
|
|
57.82 %
|
|
62.60 %
|
|
79.71 %
|
|
(4.24)
|
|
(19.14)
|
|
Non-interest expense to
average assets
|
h / n
|
|
2.22 %
|
|
2.58 %
|
|
2.28 %
|
|
2.46 %
|
|
3.53 %
|
|
(0.36)
|
|
(1.31)
|
|
Return on average
assets
|
j / n
|
|
0.96 %
|
|
0.72 %
|
|
1.02 %
|
|
1.00 %
|
|
(0.14) %
|
|
0.24
|
|
1.10
|
|
Return on average
tangible assets
|
j / o
|
|
0.99 %
|
|
0.74 %
|
|
1.05 %
|
|
1.03 %
|
|
(0.15) %
|
|
0.25
|
|
1.14
|
|
PPNR return on average
assets
|
k / n
|
|
1.44 %
|
|
1.39 %
|
|
1.65 %
|
|
1.46 %
|
|
0.89 %
|
|
0.05
|
|
0.55
|
|
Return on average
common equity
|
j / p
|
|
10.01 %
|
|
7.90 %
|
|
11.07 %
|
|
10.84 %
|
|
(1.70) %
|
|
2.11
|
|
11.71
|
|
Return on average
tangible common equity
|
j / q
|
|
14.82 %
|
|
12.19 %
|
|
16.93 %
|
|
16.63 %
|
|
(2.09) %
|
|
2.63
|
|
16.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Per-Share
& Performance Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings-per-share - basic (2)
|
m / r
|
|
$
0.65
|
|
$
0.56
|
|
$
0.79
|
|
$
0.81
|
|
$
0.46
|
|
16 %
|
|
41 %
|
|
Operating
earnings-per-share - diluted (2)
|
m / s
|
|
$
0.65
|
|
$
0.56
|
|
$
0.79
|
|
$
0.81
|
|
$
0.46
|
|
16 %
|
|
41 %
|
|
Operating efficiency
ratio, as adjusted (1), (2), (3)
|
u / y
|
|
56.97 %
|
|
57.31 %
|
|
51.26 %
|
|
54.04 %
|
|
52.84 %
|
|
(0.34)
|
|
4.13
|
|
Operating non-interest
expense to average assets
|
i / n
|
|
2.14 %
|
|
2.25 %
|
|
2.10 %
|
|
2.22 %
|
|
2.32 %
|
|
(0.11)
|
|
(0.18)
|
|
Operating return on
average assets (2)
|
m / n
|
|
1.04 %
|
|
0.89 %
|
|
1.23 %
|
|
1.27 %
|
|
0.74 %
|
|
0.15
|
|
0.30
|
|
Operating return on
average tangible assets (2)
|
m / o
|
|
1.08 %
|
|
0.92 %
|
|
1.27 %
|
|
1.31 %
|
|
0.75 %
|
|
0.16
|
|
0.33
|
|
Operating PPNR return
on average assets (2)
|
l / n
|
|
1.55 %
|
|
1.62 %
|
|
1.94 %
|
|
1.82 %
|
|
2.01 %
|
|
(0.07)
|
|
(0.46)
|
|
Operating return on
average common equity (2)
|
m / p
|
|
10.89 %
|
|
9.81 %
|
|
13.40 %
|
|
13.77 %
|
|
8.66 %
|
|
1.08
|
|
2.23
|
|
Operating return on
average tangible common equity (2)
|
m / q
|
|
16.12 %
|
|
15.14 %
|
|
20.48 %
|
|
21.13 %
|
|
10.64 %
|
|
0.98
|
|
5.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nm = Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "n/m."
|
|
(1)
|
Tax-exempt interest has
been adjusted to a taxable equivalent basis using a 21% tax rate
and added to stated revenue for this calculation.
|
|
(2)
|
Non-interest expense
adjustments were revised subsequent to the Company's reporting of
its earnings results for the three months ended December 31, 2023.
The revision includes the FDIC special assessment in
non-interest expense adjustments, which removes the special
assessment from the Company's calculation of operating non-interest
expense. The Company views the special assessment as an infrequent
expense that is outside the control of the Company.
|
|
(3)
|
The operating
efficiency ratio has been adjusted to remove B&O taxes and for
a tax-equivalent adjustment to BOLI income. The Company views
the adjusted operating efficiency ratio as a better representation
of its efficiency ratio when compared to other banks as it
normalizes for the tax treatment of the adjusted items. The
adjustment re-aligns Columbia's calculation of its operating
efficiency ratio with its pre-merger calculation.
|
|
Columbia Banking
System, Inc.
|
|
GAAP to Non-GAAP
Reconciliation - Continued
|
|
Operating Efficiency
Ratio, as adjusted
|
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
%
Change
|
|
($ in
thousands)
|
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Seq.
Quarter
|
|
Year
over
Year
|
|
Non-interest expense
(GAAP)
|
h
|
|
$
287,516
|
|
$
337,176
|
|
$
304,147
|
|
$
328,559
|
|
$
342,818
|
|
(15) %
|
|
(16) %
|
|
Less: Non-interest
expense adjustments
|
b
|
|
(10,598)
|
|
(42,888)
|
|
(22,955)
|
|
(31,768)
|
|
(117,189)
|
|
(75) %
|
|
(91) %
|
|
Operating
non-interest expense (non-GAAP)
|
i
|
|
276,918
|
|
294,288
|
|
281,192
|
|
296,791
|
|
225,629
|
|
(6) %
|
|
23 %
|
|
Less: B&O
taxes
|
t
|
|
(3,223)
|
|
(2,727)
|
|
(3,275)
|
|
(3,647)
|
|
(2,129)
|
|
18 %
|
|
51 %
|
|
Operating
non-interest expense, excluding B&O taxes
(non-GAAP)
|
u
|
|
$
273,695
|
|
$
291,561
|
|
$
277,917
|
|
$
293,144
|
|
$
223,500
|
|
(6) %
|
|
22 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(tax equivalent) (1)
|
v
|
|
$
424,344
|
|
$
454,730
|
|
$
482,031
|
|
$
485,168
|
|
$
375,369
|
|
(7) %
|
|
13 %
|
|
Non-interest income
(GAAP)
|
d
|
|
50,357
|
|
65,533
|
|
43,981
|
|
39,678
|
|
54,735
|
|
(23) %
|
|
(8) %
|
|
Add: BOLI tax
equivalent adjustment (1)
|
w
|
|
1,809
|
|
1,182
|
|
1,178
|
|
1,360
|
|
957
|
|
53 %
|
|
89 %
|
|
Total Revenue,
excluding BOLI tax equivalent adjustments (tax
equivalent)
|
x
|
|
476,510
|
|
521,445
|
|
527,190
|
|
526,206
|
|
431,061
|
|
(9) %
|
|
11 %
|
|
Less: Non-interest
income adjustments
|
a
|
|
3,883
|
|
(12,732)
|
|
15,023
|
|
16,252
|
|
(8,074)
|
|
nm
|
|
nm
|
|
Total Adjusted
Operating Revenue, excluding BOLI tax equivalent adjustments (tax
equivalent) (non-GAAP)
|
y
|
|
$
480,393
|
|
$
508,713
|
|
$
542,213
|
|
$
542,458
|
|
$
422,987
|
|
(6) %
|
|
14 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(1)
|
h / f
|
|
60.57 %
|
|
64.81 %
|
|
57.82 %
|
|
62.60 %
|
|
79.71 %
|
|
(4.24)
|
|
(19.14)
|
|
Operating efficiency
ratio, as adjusted (non-GAAP) (1), (2), (3)
|
u / y
|
|
56.97 %
|
|
57.31 %
|
|
51.26 %
|
|
54.04 %
|
|
52.84 %
|
|
(0.34)
|
|
4.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nm = Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
|
(1)
|
Tax-exempt income has
been adjusted to a taxable equivalent basis using a 21% tax rate
and added to stated revenue for this calculation.
|
|
(2)
|
Non-interest expense
adjustments were revised subsequent to the Company's reporting of
its earnings results for the three months ended December 31, 2023.
The revision includes the FDIC special assessment in
non-interest expense adjustments, which removes the special
assessment from the Company's calculation of operating non-interest
expense. The Company views the special assessment as an infrequent
expense that is outside the control of the Company.
|
|
(3)
|
The operating
efficiency ratio has been adjusted to remove B&O taxes and for
a tax-equivalent adjustment to BOLI income. The Company views
the adjusted operating efficiency ratio as a better representation
of its efficiency ratio when compared to other banks as it
normalizes for the tax treatment of the adjusted items. The
adjustment re-aligns Columbia's calculation of its operating
efficiency ratio with its pre-merger calculation.
|
|
Columbia Banking
System, Inc.
|
|
GAAP to Non-GAAP
Reconciliation - Continued
|
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
%
Change
|
|
($ in
thousands)
|
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Seq.
Quarter
|
|
Year
over
Year
|
|
Loans and leases
interest income
|
a
|
|
$ 574,519
|
|
$ 577,092
|
|
$ 567,929
|
|
$ 551,997
|
|
$
412,726
|
|
— %
|
|
39 %
|
|
Less: Acquired loan
accretion - rate related (2), (3)
|
b
|
|
23,482
|
|
26,914
|
|
28,963
|
|
30,548
|
|
11,832
|
|
(13) %
|
|
98 %
|
|
Less: Acquired loan
accretion - credit related (3)
|
c
|
|
5,119
|
|
5,430
|
|
6,370
|
|
7,100
|
|
3,806
|
|
(6) %
|
|
34 %
|
|
Adjusted loans and
leases interest income
|
d=a-b-c
|
|
$ 545,918
|
|
$ 544,748
|
|
$ 532,596
|
|
$ 514,349
|
|
$
397,088
|
|
— %
|
|
37 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities
interest income
|
e
|
|
$
78,724
|
|
$
82,872
|
|
$
85,007
|
|
$
81,617
|
|
$
40,448
|
|
(5) %
|
|
95 %
|
|
Less: Acquired taxable
securities accretion - rate related
|
f
|
|
31,527
|
|
34,290
|
|
39,219
|
|
34,801
|
|
15,356
|
|
(8) %
|
|
105 %
|
|
Adjusted Taxable
securities interest income
|
g=e-f
|
|
$
47,197
|
|
$
48,582
|
|
$
45,788
|
|
$
46,816
|
|
$
25,092
|
|
(3) %
|
|
88 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-taxable
securities interest income (1)
|
h
|
|
$
7,886
|
|
$
8,073
|
|
$
8,085
|
|
$
8,010
|
|
$
4,068
|
|
(2) %
|
|
94 %
|
|
Less: Acquired
non-taxable securities accretion - rate related
|
i
|
|
2,270
|
|
2,309
|
|
2,288
|
|
2,274
|
|
901
|
|
(2) %
|
|
152 %
|
|
Adjusted Taxable
securities interest income (1)
|
j=h-i
|
|
$
5,616
|
|
$
5,764
|
|
$
5,797
|
|
$
5,736
|
|
$
3,167
|
|
(3) %
|
|
77 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
(1)
|
k
|
|
$ 685,207
|
|
$ 692,741
|
|
$ 697,169
|
|
$ 676,922
|
|
$
476,622
|
|
(1) %
|
|
44 %
|
|
Less: Acquired loan
and securities accretion - rate related
|
l=b+f+i
|
|
57,279
|
|
63,513
|
|
70,470
|
|
67,623
|
|
28,089
|
|
(10) %
|
|
104 %
|
|
Less: Acquired loan
accretion - credit related
|
c
|
|
5,119
|
|
5,430
|
|
6,370
|
|
7,100
|
|
3,806
|
|
(6) %
|
|
34 %
|
|
Adjusted interest
income (1)
|
m=k-l-c
|
|
$ 622,809
|
|
$ 623,798
|
|
$ 620,329
|
|
$ 602,199
|
|
$
444,727
|
|
— %
|
|
40 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits interest expense
|
n
|
|
$ 198,435
|
|
$ 170,659
|
|
$ 126,974
|
|
$ 100,408
|
|
$
63,613
|
|
16 %
|
|
212 %
|
|
Less: Acquired deposit
accretion
|
o
|
|
—
|
|
(187)
|
|
(373)
|
|
(280)
|
|
(93)
|
|
nm
|
|
nm
|
|
Adjusted
interest-bearing deposits interest expense
|
p=n-o
|
|
$ 198,435
|
|
$ 170,846
|
|
$ 127,347
|
|
$ 100,688
|
|
$
63,706
|
|
16 %
|
|
211 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
q
|
|
$ 260,863
|
|
$ 238,011
|
|
$ 215,138
|
|
$ 191,754
|
|
$
101,253
|
|
10 %
|
|
158 %
|
|
Less: Acquired
interest-bearing liabilities accretion (2)
|
r
|
|
(57)
|
|
(244)
|
|
(430)
|
|
(337)
|
|
(150)
|
|
(77) %
|
|
(62) %
|
|
Adjusted interest
expense
|
s=q-r
|
|
$ 260,920
|
|
$ 238,255
|
|
$ 215,568
|
|
$ 192,091
|
|
$
101,403
|
|
10 %
|
|
157 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income
(1)
|
t
|
|
$ 424,344
|
|
$ 454,730
|
|
$ 482,031
|
|
$ 485,168
|
|
$
375,369
|
|
(7) %
|
|
13 %
|
|
Less: Acquired loan,
securities, and interest-bearing liabilities accretion - rate
related (3)
|
u=l-r
|
|
57,336
|
|
63,757
|
|
70,900
|
|
67,960
|
|
28,239
|
|
(10) %
|
|
103 %
|
|
Less: Acquired loan
accretion - credit related (3)
|
c
|
|
5,119
|
|
5,430
|
|
6,370
|
|
7,100
|
|
3,806
|
|
(6) %
|
|
34 %
|
|
Adjusted net
interest income (1)
|
v=t-u-c
|
|
$ 361,889
|
|
$ 385,543
|
|
$ 404,761
|
|
$ 410,108
|
|
$
343,324
|
|
(6) %
|
|
5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans and
leases
|
aa
|
|
37,597,101
|
|
37,333,310
|
|
37,050,518
|
|
37,169,315
|
|
29,998,630
|
|
1 %
|
|
25 %
|
|
Average taxable
securities
|
ab
|
|
8,081,003
|
|
7,903,053
|
|
8,356,165
|
|
8,656,147
|
|
4,960,966
|
|
2 %
|
|
63 %
|
|
Average non-taxable
securities
|
ac
|
|
851,342
|
|
809,551
|
|
844,417
|
|
865,278
|
|
437,020
|
|
5 %
|
|
95 %
|
|
Average
interest-earning assets
|
ad
|
|
48,280,787
|
|
47,838,229
|
|
48,981,105
|
|
49,442,518
|
|
37,055,705
|
|
1 %
|
|
30 %
|
|
Average
interest-bearing deposits
|
ae
|
|
27,742,579
|
|
26,622,343
|
|
25,121,745
|
|
24,494,717
|
|
19,496,551
|
|
4 %
|
|
42 %
|
|
Average
interest-bearing liabilities
|
af
|
|
32,318,653
|
|
31,226,600
|
|
31,413,978
|
|
31,372,416
|
|
22,548,264
|
|
3 %
|
|
43 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nm = Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
|
(1)
|
Tax-exempt interest has
been adjusted to a taxable equivalent basis using a 21% tax
rate.
|
|
(2)
|
Includes discount
accretion related to UHC's 2014 acquisition of Sterling Financial
Corporation.
|
|
(3)
|
The cumulative fair
value discount on historical Columbia loans was established as of
February 28, 2023, and the allocation between the credit-related
discount and the rate-related discount was established at that
time. Our disclosure of credit-related and rate-related discount
accretion is an estimate based on the relative allocation of these
two items to the discount at the closing of the
merger.
|
|
Columbia Banking
System, Inc.
|
|
GAAP to Non-GAAP
Reconciliation - Continued
|
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
%
Change
|
|
($ in
thousands)
|
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Seq.
Quarter
|
|
Year
over
Year
|
|
Average yield on
loans and leases
|
a /
aa
|
|
6.13 %
|
|
6.13 %
|
|
6.08 %
|
|
5.95 %
|
|
5.55 %
|
|
—
|
|
0.58
|
|
Less: Acquired loan
accretion - rate related (2),(3)
|
b /
aa
|
|
0.25 %
|
|
0.29 %
|
|
0.31 %
|
|
0.33 %
|
|
0.16 %
|
|
(0.04)
|
|
0.09
|
|
Less: Acquired loan
accretion - credit related (3)
|
c /
aa
|
|
0.05 %
|
|
0.06 %
|
|
0.07 %
|
|
0.08 %
|
|
0.05 %
|
|
(0.01)
|
|
—
|
|
Adjusted average
yield on loans and leases
|
d /
aa
|
|
5.83 %
|
|
5.78 %
|
|
5.70 %
|
|
5.54 %
|
|
5.34 %
|
|
0.05
|
|
0.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average yield on
taxable securities
|
e /
ab
|
|
3.90 %
|
|
4.19 %
|
|
4.07 %
|
|
3.77 %
|
|
3.26 %
|
|
(0.29)
|
|
0.64
|
|
Less: Acquired taxable
securities accretion - rate related
|
f /
ab
|
|
1.57 %
|
|
1.72 %
|
|
1.86 %
|
|
1.61 %
|
|
1.26 %
|
|
(0.15)
|
|
0.31
|
|
Adjusted average
yield on taxable securities
|
g /
ab
|
|
2.33 %
|
|
2.47 %
|
|
2.21 %
|
|
2.16 %
|
|
2.00 %
|
|
(0.14)
|
|
0.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average yield on
non-taxable securities (1)
|
h /
ac
|
|
3.71 %
|
|
3.99 %
|
|
3.83 %
|
|
3.70 %
|
|
3.72 %
|
|
(0.28)
|
|
(0.01)
|
|
Less: Acquired
non-taxable securities accretion - rate related
|
i /
ac
|
|
1.07 %
|
|
1.13 %
|
|
1.07 %
|
|
1.05 %
|
|
0.84 %
|
|
(0.06)
|
|
0.23
|
|
Adjusted yield on
non-taxable securities (1)
|
j /
ac
|
|
2.64 %
|
|
2.86 %
|
|
2.76 %
|
|
2.65 %
|
|
2.88 %
|
|
(0.22)
|
|
(0.24)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average yield on
interest-earning assets (1)
|
k /
ad
|
|
5.69 %
|
|
5.75 %
|
|
5.65 %
|
|
5.48 %
|
|
5.19 %
|
|
(0.06)
|
|
0.50
|
|
Less: Acquired loan
and securities accretion - rate related
|
l /
ad
|
|
0.48 %
|
|
0.53 %
|
|
0.57 %
|
|
0.55 %
|
|
0.31 %
|
|
(0.05)
|
|
0.17
|
|
Less: Acquired loan
accretion - credit related
|
c /
ad
|
|
0.04 %
|
|
0.05 %
|
|
0.05 %
|
|
0.06 %
|
|
0.04 %
|
|
(0.01)
|
|
—
|
|
Adjusted average
yield on interest-earning assets (1)
|
m /
ad
|
|
5.17 %
|
|
5.17 %
|
|
5.03 %
|
|
4.87 %
|
|
4.84 %
|
|
—
|
|
0.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate on
interest-bearing deposits
|
n /
ae
|
|
2.88 %
|
|
2.54 %
|
|
2.01 %
|
|
1.64 %
|
|
1.32 %
|
|
0.34
|
|
1.56
|
|
Less: Acquired deposit
accretion
|
o /
ae
|
|
— %
|
|
— %
|
|
(0.01) %
|
|
— %
|
|
— %
|
|
—
|
|
—
|
|
Adjusted average
rate on interest-bearing deposits
|
p /
ae
|
|
2.88 %
|
|
2.54 %
|
|
2.02 %
|
|
1.64 %
|
|
1.32 %
|
|
0.34
|
|
1.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate on
interest-bearing liabilities
|
q /
af
|
|
3.25 %
|
|
3.02 %
|
|
2.72 %
|
|
2.45 %
|
|
1.82 %
|
|
0.23
|
|
1.43
|
|
Less: Acquired
interest-bearing liabilities accretion (2)
|
r /
af
|
|
— %
|
|
— %
|
|
(0.01) %
|
|
— %
|
|
— %
|
|
—
|
|
—
|
|
Adjusted average
rate on interest-bearing liabilities
|
s /
af
|
|
3.25 %
|
|
3.02 %
|
|
2.73 %
|
|
2.45 %
|
|
1.82 %
|
|
0.23
|
|
1.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(1)
|
t /
ad
|
|
3.52 %
|
|
3.78 %
|
|
3.91 %
|
|
3.93 %
|
|
4.08 %
|
|
(0.26)
|
|
(0.56)
|
|
Less: Acquired loan,
securities, and interest-bearing liabilities accretion - rate
related (3)
|
u /
ad
|
|
0.48 %
|
|
0.53 %
|
|
0.58 %
|
|
0.55 %
|
|
0.31 %
|
|
(0.05)
|
|
0.17
|
|
Less: Acquired loan
accretion - credit related (3)
|
c /
ad
|
|
0.04 %
|
|
0.05 %
|
|
0.05 %
|
|
0.06 %
|
|
0.04 %
|
|
(0.01)
|
|
—
|
|
Adjusted net
interest margin (1)
|
v /
ad
|
|
3.00 %
|
|
3.20 %
|
|
3.28 %
|
|
3.32 %
|
|
3.73 %
|
|
(0.20)
|
|
(0.73)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Tax-exempt interest has
been adjusted to a taxable equivalent basis using a 21% tax
rate.
|
|
(2)
|
Includes discount
accretion related to UHC's 2014 acquisition of Sterling Financial
Corporation.
|
|
(3)
|
The cumulative fair
value discount on historical Columbia loans was established as of
February 28, 2023, and the allocation between the credit-related
discount and the rate-related discount was established at that
time. Our disclosure of credit-related and rate-related discount
accretion is an estimate based on the relative allocation of these
two items to the discount at closing.
|
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SOURCE Columbia Banking System, Inc.
