Columbia Banking System Announces Third Quarter 2018 Results, Quarterly Cash Dividend and Special Cash Dividend
TACOMA, Wash., Oct. 25, 2018 /PRNewswire/ --
Highlights
- Record quarterly net income of $46.4 million; diluted earnings per share of $0.63, which included $0.02 per share negative impact from acquisition-related expenses
- Net interest margin of 4.41%, up 12 basis points from linked quarter
- Third quarter loan production of $408.9 million
- Nonperforming assets to period end assets ratio decreased to 0.52%
- Special cash dividend of $0.14 in addition to regular quarterly dividend
Hadley Robbins, President and Chief Executive Officer of Columbia Banking System and Columbia Bank (NASDAQ: COLB) ("Columbia"), said today upon the release of Columbia's third quarter 2018 earnings, "We had a very successful quarter in generating a record level of loan production while continuing to work down nonperforming assets, as evidenced by the 9 basis point reduction compared to the prior quarter." Mr. Robbins continued, "I am also pleased with the 12 basis point increase in our net interest margin, which was favorably impacted by higher loan and securities rates and a more favorable deposit mix driven by an increase in noninterest-bearing deposits."
Balance Sheet
Total assets at September 30, 2018 were $12.96 billion, an increase of $328.0 million from June 30, 2018. Loans were $8.51 billion, up $60.2 million from June 30, 2018 as loan originations of $408.9 million were partially offset by payments and lower line utilization. Debt securities available for sale were $2.92 billion at September 30, 2018, an increase of $274.9 million, or 10% from $2.65 billion at June 30, 2018. Total deposits at September 30, 2018 were $10.60 billion, an increase of $220.0 million from June 30, 2018. Core deposits comprised 95% of total deposits and were $10.08 billion at September 30, 2018, an increase of $196.0 million from June 30, 2018. The average cost of total deposits for the quarter was 0.12%, an increase of 2 basis points from the second quarter of 2018.
Income Statement
Net Interest Income
Net interest income for the third quarter of 2018 was $122.8 million, an increase of $6.1 million from the linked quarter and an increase of $33.9 million from the prior year period. The increase from the linked quarter was due to a combination of higher rates on earning assets and higher volumes of loans and taxable securities. The increase from the prior year period was primarily due to income from earning assets acquired in the Pacific Continental acquisition, which closed on November 1, 2017, as well as higher rates on earning assets. For additional information regarding net interest income, see the "Net Interest Margin" section and the "Average Balances and Rates" table.
Noninterest Income
Noninterest income was $21.0 million for the third quarter of 2018, a decrease of $2.7 million from the second quarter of 2018. The linked quarter decrease was principally due to lower card revenue as we became subject to the interchange fee cap imposed under the Dodd-Frank Wall Street Reform and Consumer Protection Act as of July 1, 2018. Compared to the third quarter of 2017, noninterest income decreased by $16.0 million. The decrease was due to the $14.0 million one-time gain on the sale of our merchant card services portfolio in the prior year period as well as a decrease in card revenue during the current quarter as previously described. Also contributing to the decrease in noninterest income compared to the prior year period was our change to net presentation of interchange revenue pursuant to the adoption of new revenue recognition accounting guidance on January 1, 2018. Specifically, $1.3 million of payment card network expenses that would have historically been presented in other noninterest expense are now presented in card revenue.
Noninterest Expense
Total noninterest expense for the third quarter of 2018 was $82.8 million, a decrease of $1.8 million from the second quarter of 2018. After removing the effect of acquisition-related expenses of $1.1 million, noninterest expense for the current quarter was essentially flat from the linked quarter on the same basis as higher legal and professional fees and compensation and employee benefits were offset by lower occupancy and OREO expense. Compared to the third quarter of 2017, noninterest expense increased by $15.3 million. This increase was primarily driven by higher compensation and employee benefits and higher amortization of intangible assets, both resulting from our November 1, 2017 acquisition of Pacific Continental.
Provision for Income Taxes
Our effective tax rate for the current quarter was 19.7%, compared to 19.3% and 31.0% for the linked and prior year periods, respectively. The decrease from the prior year period was principally attributable to the enactment of the Tax Cuts and Jobs Act on December 22, 2017, which lowered the corporate tax rate to 21% from 35%. The prior year period's effective tax rate reflected the then-enacted 35% corporate tax rate reduced by favorable tax attributes of certain earning assets and discrete tax benefits from share-based compensation.
Our effective tax rate remains below the statutory tax rate due to tax-exempt income from municipal securities, bank owned life insurance and certain loan receivables.
Net Interest Margin
Columbia's net interest margin (tax equivalent) for the third quarter of 2018 was 4.41%, an increase of 12 basis points from the linked quarter and 21 basis points from the prior year period. Columbia's operating net interest margin (tax equivalent)(1) was 4.38% for the third quarter of 2018, an increase of 11 basis points from the linked quarter and an increase of 23 basis points from the prior year period. All increases were due to higher rates on interest-earning assets, which more than offset the modest increase in rates on interest-bearing liabilities from the comparative periods.
The following table shows the impact to interest income resulting from income accretion on acquired loan portfolios as well as the net interest margin and operating net interest margin:
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | 2018 | 2017 | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||
Incremental accretion income due to: | ||||||||||||||||||||||||||||
FDIC purchased credit impaired loans | $ | 585 | $ | 326 | $ | 329 | $ | 265 | $ | 972 | $ | 1,240 | $ | 3,842 | ||||||||||||||
Other acquired loans | 2,643 | 2,690 | 3,370 | 2,482 | 1,903 | 8,703 | 6,207 | |||||||||||||||||||||
Incremental accretion income | $ | 3,228 | $ | 3,016 | $ | 3,699 | $ | 2,747 | $ | 2,875 | $ | 9,943 | $ | 10,049 | ||||||||||||||
Net interest margin (tax equivalent) | 4.41 | % | 4.29 | % | 4.22 | % | 4.20 | % | 4.20 | % | 4.31 | % | 4.17 | % | ||||||||||||||
Operating net interest margin (tax equivalent) (1) | 4.38 | % | 4.27 | % | 4.18 | % | 4.25 | % | 4.15 | % | 4.27 | % | 4.11 | % | ||||||||||||||
__________ |
(1) Operating net interest margin (tax equivalent) is a non-GAAP financial measure. See the section titled "Non-GAAP Financial Measures" in this earnings release for the reconciliation of operating net interest margin (tax equivalent) to net interest margin. |
Asset Quality
At September 30, 2018, nonperforming assets to total assets were 0.52% compared to 0.61% at June 30, 2018. Total nonperforming assets decreased $8.8 million from the linked quarter due to a $9.2 million decrease in nonaccrual loans, partially offset by an increase in other real estate owned.
Andy McDonald, Columbia's Executive Vice President and Chief Credit Officer, commented, "This past quarter was very strong from a credit perspective as we enjoyed net recoveries, declines in nonperforming assets and recorded a modest provision as well. While we are pleased with these results, we do not believe they are indicative of the long run credit profile of our loan portfolio. As such, we would expect to see them move towards the norm in future quarters."
The following table sets forth information regarding nonaccrual loans and total nonperforming assets:
September 30, 2018 | June 30, 2018 | December 31, 2017 | ||||||||||
(in thousands) | ||||||||||||
Nonaccrual loans: | ||||||||||||
Commercial business | $ | 45,753 | $ | 52,036 | $ | 45,460 | ||||||
Real estate: | ||||||||||||
One-to-four family residential | 501 | 976 | 785 | |||||||||
Commercial and multifamily residential | 11,012 | 11,118 | 13,941 | |||||||||
Total real estate | 11,513 | 12,094 | 14,726 | |||||||||
Real estate construction: | ||||||||||||
One-to-four family residential | 318 | 389 | 1,854 | |||||||||
Total real estate construction | 318 | 389 | 1,854 | |||||||||
Consumer | 2,748 | 4,985 | 4,149 | |||||||||
Total nonaccrual loans | 60,332 | 69,504 | 66,189 | |||||||||
Other real estate owned and other personal property owned | 7,415 | 7,080 | 13,298 | |||||||||
Total nonperforming assets | $ | 67,747 | $ | 76,584 | $ | 79,487 | ||||||
The following table provides an analysis of the Company's allowance for loan and lease losses:
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30,2018 | June 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Beginning balance, loans excluding PCI loans | $ | 75,368 | $ | 74,162 | $ | 64,923 | $ | 68,739 | $ | 59,528 | ||||||||||
Beginning balance, PCI loans | 4,782 | 5,665 | 8,061 | 6,907 | 10,515 | |||||||||||||||
Beginning balance | 80,150 | 79,827 | 72,984 | 75,646 | 70,043 | |||||||||||||||
Charge-offs: | ||||||||||||||||||||
Commercial business | (606) | (5,775) | (1,362) | (8,858) | (6,089) | |||||||||||||||
One-to-four family residential real estate | — | — | — | — | (460) | |||||||||||||||
Commercial and multifamily residential real estate | — | — | — | (223) | — | |||||||||||||||
One-to-four family residential real estate construction | — | — | — | — | (14) | |||||||||||||||
Consumer | (277) | (232) | (263) | (773) | (1,156) | |||||||||||||||
Purchased credit impaired | (1,208) | (1,235) | (1,633) | (3,786) | (5,372) | |||||||||||||||
Total charge-offs | (2,091) | (7,242) | (3,258) | (13,640) | (13,091) | |||||||||||||||
Recoveries: | ||||||||||||||||||||
Commercial business | 547 | 1,543 | 688 | 2,892 | 3,997 | |||||||||||||||
One-to-four family residential real estate | 21 | 196 | 40 | 389 | 380 | |||||||||||||||
Commercial and multifamily residential real estate | 213 | 640 | 58 | 1,012 | 263 | |||||||||||||||
One-to-four family residential real estate construction | 583 | 14 | 20 | 616 | 107 | |||||||||||||||
Consumer | 266 | 270 | 343 | 796 | 876 | |||||||||||||||
Purchased credit impaired | 945 | 927 | 1,389 | 3,096 | 3,737 | |||||||||||||||
Total recoveries | 2,575 | 3,590 | 2,538 | 8,801 | 9,360 | |||||||||||||||
Net recoveries (charge-offs) | 484 | (3,652) | (720) | (4,839) | (3,731) | |||||||||||||||
Provision (recapture) for loan and lease losses, loans excluding PCI loans | 3,655 | 4,550 | (175) | 15,180 | 6,840 | |||||||||||||||
Recapture for loan and lease losses, PCI loans | (502) | (575) | (473) | (2,200) | (1,536) | |||||||||||||||
Provision (recapture) for loan and lease losses | 3,153 | 3,975 | (648) | 12,980 | 5,304 | |||||||||||||||
Ending balance, loans excluding PCI loans | 79,770 | 75,368 | 64,272 | 79,770 | 64,272 | |||||||||||||||
Ending balance, PCI loans | 4,017 | 4,782 | 7,344 | 4,017 | 7,344 | |||||||||||||||
Ending balance | $ | 83,787 | $ | 80,150 | $ | 71,616 | $ | 83,787 | $ | 71,616 | ||||||||||
The allowance for loan losses to period end loans was 0.98% at September 30, 2018 compared to 0.95% at June 30, 2018. For the third quarter of 2018, Columbia recorded a net provision for loan and lease losses of $3.2 million compared to a net provision of $4.0 million for the linked quarter and a net recapture of $648 thousand for the comparable quarter last year. The net provision for loan and lease losses recorded during the current quarter consisted of $3.7 million of provision expense for loans, excluding PCI loans and a recapture of $502 thousand for PCI loans.
Cash Dividend Announcement
Columbia will pay a regular cash dividend of $0.26 per common share and a special cash dividend of $0.14 per common share on November 21, 2018 to shareholders of record as of the close of business on November 7, 2018.
Conference Call Information
Columbia's management will discuss the third quarter 2018 financial results on a conference call scheduled for Thursday, October 25, 2018 at 1:00 p.m. Pacific Time (4:00 p.m. ET). Interested parties may join the live-streamed event by using the site:
https://engage.vevent.com/rt/columbiabankingsysteminc~102518
The conference call can also be accessed on Thursday, October 25, 2018 at 1:00 p.m. Pacific Time (4:00 p.m. ET) by calling 866-904-0737; Conference ID: 1467307.
A replay of the call can be accessed beginning Friday, October 26, 2018 using the site:
https://engage.vevent.com/rt/columbiabankingsysteminc~102518
About Columbia
Headquartered in Tacoma, Washington, Columbia Banking System, Inc. is the holding company of Columbia Bank, a Washington state-chartered full-service commercial bank with locations throughout Washington, Oregon and Idaho. For the 12th consecutive year, the bank was named in 2018 as one of Puget Sound Business Journal's "Washington's Best Workplaces." Columbia ranked 11th on the 2018 Forbes list of best banks.
More information about Columbia can be found on its website at www.columbiabank.com.
Note Regarding Forward-Looking Statements
This news release includes forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements include, but are not limited to, descriptions of Columbia's management's expectations regarding future events and developments such as future operating results, growth in loans and deposits, continued success of Columbia's style of banking and the strength of the local economy. The words "will," "believe," "expect," "intend," "should," and "anticipate" or the negative of these words or words of similar construction are intended in part to help identify forward looking statements. Future events are difficult to predict, and the expectations described above are necessarily subject to risks and uncertainties, many of which are outside our control, that may cause actual results to differ materially and adversely. In addition to discussions about risks and uncertainties set forth from time to time in Columbia's filings with the Securities and Exchange Commission, available at the SEC's website at www.sec.gov and the Company's website at www.columbiabank.com, including the "Risk Factors," "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of our annual reports on Form 10-K and quarterly reports on Form 10-Q, (as applicable), factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following: (1) local, national and international economic conditions may be less favorable than expected or have a more direct and pronounced effect on Columbia than expected and adversely affect Columbia's ability to continue its internal growth at historical rates and maintain the quality of its earning assets; (2) changes in interest rates could significantly reduce net interest income and negatively affect funding sources; (3) projected business increases following strategic expansion or opening or acquiring new branches may be lower than expected; (4) costs or difficulties related to the integration of acquisitions may be greater than expected; (5) competitive pressure among financial institutions may increase significantly; and (6) legislation or regulatory requirements or changes may adversely affect the businesses in which Columbia is engaged. We believe the expectations reflected in our forward-looking statements are reasonable, based on information available to us on the date hereof. However, given the described uncertainties and risks, we cannot guarantee our future performance or results of operations and you should not place undue reliance on these forward-looking statements which speak only as of the date hereof. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by the federal securities laws. The factors noted above and the risks and uncertainties described in our SEC filings should be considered when reading any forward-looking statements in this release.
Contacts: | Hadley S. Robbins, |
President and | |
Chief Executive Officer | |
Gregory A. Sigrist, | |
Executive Vice President and | |
Chief Financial Officer | |
Investor Relations | |
253-305-1921 |
CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||
Unaudited | September 30, | June 30, | December 31, | |||||||||||||||||
2018 | 2018 | 2017 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 220,706 | $ | 224,370 | $ | 244,615 | ||||||||||||||
Interest-earning deposits with banks | 21,456 | 39,169 | 97,918 | |||||||||||||||||
Total cash and cash equivalents | 242,162 | 263,539 | 342,533 | |||||||||||||||||
Debt securities available for sale at fair value | 2,921,114 | 2,646,208 | 2,737,751 | |||||||||||||||||
Equity securities at fair value | 4,901 | 4,963 | 5,080 | |||||||||||||||||
Federal Home Loan Bank ("FHLB") stock at cost | 16,640 | 13,960 | 10,440 | |||||||||||||||||
Loans held for sale | 5,275 | 6,773 | 5,766 | |||||||||||||||||
Loans, net of unearned income | 8,514,317 | 8,454,107 | 8,358,657 | |||||||||||||||||
Less: allowance for loan and lease losses | 83,787 | 80,150 | 75,646 | |||||||||||||||||
Loans, net | 8,430,530 | 8,373,957 | 8,283,011 | |||||||||||||||||
Interest receivable | 48,476 | 43,105 | 40,881 | |||||||||||||||||
Premises and equipment, net | 169,681 | 168,315 | 169,490 | |||||||||||||||||
Other real estate owned | 7,331 | 7,080 | 13,298 | |||||||||||||||||
Goodwill | 765,842 | 765,842 | 765,842 | |||||||||||||||||
Other intangible assets, net | 48,827 | 51,897 | 58,173 | |||||||||||||||||
Other assets | 295,817 | 282,947 | 284,621 | |||||||||||||||||
Total assets | $ | 12,956,596 | $ | 12,628,586 | $ | 12,716,886 | ||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing | $ | 5,250,222 | $ | 4,953,993 | $ | 5,081,901 | ||||||||||||||
Interest-bearing | 5,353,735 | 5,430,011 | 5,450,184 | |||||||||||||||||
Total deposits | 10,603,957 | 10,384,004 | 10,532,085 | |||||||||||||||||
FHLB advances | 166,536 | 99,549 | 11,579 | |||||||||||||||||
Securities sold under agreements to repurchase | 62,197 | 46,229 | 79,059 | |||||||||||||||||
Subordinated debentures | 35,508 | 35,555 | 35,647 | |||||||||||||||||
Junior subordinated debentures | — | — | 8,248 | |||||||||||||||||
Other liabilities | 107,003 | 98,368 | 100,346 | |||||||||||||||||
Total liabilities | 10,975,201 | 10,663,705 | 10,766,964 | |||||||||||||||||
Commitments and contingent liabilities | ||||||||||||||||||||
September 30, | June 30, | December 31, | ||||||||||||||||||
2018 | 2018 | 2017 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Common stock (no par value) | ||||||||||||||||||||
Authorized shares | 115,000 | 115,000 | 115,000 | |||||||||||||||||
Issued and outstanding | 73,260 | 73,245 | 73,020 | 1,640,140 | 1,636,903 | 1,634,705 | ||||||||||||||
Retained earnings | 411,264 | 383,899 | 337,442 | |||||||||||||||||
Accumulated other comprehensive loss | (70,009) | (55,921) | (22,225) | |||||||||||||||||
Total shareholders' equity | 1,981,395 | 1,964,881 | 1,949,922 | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 12,956,596 | $ | 12,628,586 | $ | 12,716,886 | ||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | Nine Months Ended | ||||||||||||||||||
Unaudited | September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||
2018 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Interest Income | (in thousands except per share) | |||||||||||||||||||
Loans | $ | 109,748 | $ | 105,412 | $ | 78,641 | $ | 318,187 | $ | 228,340 | ||||||||||
Taxable securities | 14,654 | 11,923 | 8,718 | 39,285 | 29,172 | |||||||||||||||
Tax-exempt securities | 3,069 | 3,063 | 2,718 | 9,196 | 8,125 | |||||||||||||||
Deposits in banks | 104 | 151 | 226 | 600 | 268 | |||||||||||||||
Total interest income | 127,575 | 120,549 | 90,303 | 367,268 | 265,905 | |||||||||||||||
Interest Expense | ||||||||||||||||||||
Deposits | 3,193 | 2,572 | 1,083 | 8,274 | 2,778 | |||||||||||||||
FHLB advances | 966 | 815 | 163 | 2,351 | 979 | |||||||||||||||
Subordinated debentures | 468 | 468 | — | 1,404 | — | |||||||||||||||
Other borrowings | 152 | 20 | 128 | 288 | 383 | |||||||||||||||
Total interest expense | 4,779 | 3,875 | 1,374 | 12,317 | 4,140 | |||||||||||||||
Net Interest Income | 122,796 | 116,674 | 88,929 | 354,951 | 261,765 | |||||||||||||||
Provision (recapture) for loan and lease losses | 3,153 | 3,975 | (648) | 12,980 | 5,304 | |||||||||||||||
Net interest income after provision (recapture) for loan and lease losses | 119,643 | 112,699 | 89,577 | 341,971 | 256,461 | |||||||||||||||
Noninterest Income | ||||||||||||||||||||
Deposit account and treasury management fees | 9,266 | 8,683 | 7,685 | 26,689 | 22,368 | |||||||||||||||
Card revenue | 3,714 | 6,616 | 6,735 | 16,143 | 18,660 | |||||||||||||||
Financial services and trust revenue | 2,975 | 3,219 | 2,645 | 8,924 | 8,520 | |||||||||||||||
Loan revenue | 3,282 | 3,054 | 3,154 | 9,522 | 9,736 | |||||||||||||||
Merchant processing revenue | — | — | — | — | 4,283 | |||||||||||||||
Bank owned life insurance | 1,402 | 1,712 | 1,290 | 4,540 | 4,003 | |||||||||||||||
Investment securities losses, net | (62) | (33) | — | (73) | — | |||||||||||||||
Change in FDIC loss-sharing asset | — | — | — | — | (447) | |||||||||||||||
Gain on sale of merchant card services portfolio | — | — | 14,000 | — | 14,000 | |||||||||||||||
Other | 442 | 441 | 1,558 | 2,109 | 4,938 | |||||||||||||||
Total noninterest income | 21,019 | 23,692 | 37,067 | 67,854 | 86,061 | |||||||||||||||
Noninterest Expense | ||||||||||||||||||||
Compensation and employee benefits | 49,419 | 48,949 | 39,983 | 148,938 | 119,201 | |||||||||||||||
Occupancy | 8,321 | 9,276 | 8,085 | 27,718 | 22,853 | |||||||||||||||
Merchant processing expense | — | — | — | — | 2,196 | |||||||||||||||
Advertising and promotion | 1,472 | 1,622 | 969 | 4,523 | 2,923 | |||||||||||||||
Data processing | 4,466 | 5,221 | 4,122 | 14,957 | 13,071 | |||||||||||||||
Legal and professional fees | 4,695 | 4,171 | 2,880 | 12,103 | 9,196 | |||||||||||||||
Taxes, licenses and fees | 1,562 | 1,560 | 1,505 | 4,547 | 3,494 | |||||||||||||||
Regulatory premiums | 904 | 937 | 782 | 2,778 | 2,299 | |||||||||||||||
Net cost of operation of other real estate owned | 485 | 758 | 271 | 1,244 | 422 | |||||||||||||||
Amortization of intangibles | 3,070 | 3,088 | 1,188 | 9,346 | 3,786 | |||||||||||||||
Other | 8,447 | 9,061 | 7,752 | 27,317 | 25,949 | |||||||||||||||
Total noninterest expense | 82,841 | 84,643 | 67,537 | 253,471 | 205,390 | |||||||||||||||
Income before income taxes | 57,821 | 51,748 | 59,107 | 156,354 | 137,132 | |||||||||||||||
Provision for income taxes | 11,406 | 9,999 | 18,338 | 28,220 | 40,032 | |||||||||||||||
Net Income | $ | 46,415 | $ | 41,749 | $ | 40,769 | $ | 128,134 | $ | 97,100 | ||||||||||
Earnings per common share | ||||||||||||||||||||
Basic | $ | 0.63 | $ | 0.57 | $ | 0.70 | $ | 1.75 | $ | 1.67 | ||||||||||
Diluted | $ | 0.63 | $ | 0.57 | $ | 0.70 | $ | 1.75 | $ | 1.67 | ||||||||||
Dividends declared per common share | $ | 0.26 | $ | 0.26 | $ | 0.22 | $ | 0.74 | $ | 0.66 | ||||||||||
Weighted average number of common shares outstanding | 72,427 | 72,385 | 57,566 | 72,370 | 57,459 | |||||||||||||||
Weighted average number of diluted common shares outstanding | 72,432 | 72,390 | 57,571 | 72,374 | 57,465 | |||||||||||||||
FINANCIAL STATISTICS | ||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | Nine Months Ended | ||||||||||||||||||
Unaudited | September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||
2018 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Earnings | (dollars in thousands except per share amounts) | |||||||||||||||||||
Net interest income | $ | 122,796 | $ | 116,674 | $ | 88,929 | $ | 354,951 | $ | 261,765 | ||||||||||
Provision (recapture) for loan and lease losses | $ | 3,153 | $ | 3,975 | $ | (648) | $ | 12,980 | $ | 5,304 | ||||||||||
Noninterest income | $ | 21,019 | $ | 23,692 | $ | 37,067 | $ | 67,854 | $ | 86,061 | ||||||||||
Noninterest expense | $ | 82,841 | $ | 84,643 | $ | 67,537 | $ | 253,471 | $ | 205,390 | ||||||||||
Acquisition-related expense (included in noninterest expense) | $ | 1,081 | $ | 2,822 | $ | 1,171 | $ | 8,168 | $ | 3,558 | ||||||||||
Net income | $ | 46,415 | $ | 41,749 | $ | 40,769 | $ | 128,134 | $ | 97,100 | ||||||||||
Per Common Share | ||||||||||||||||||||
Earnings (basic) | $ | 0.63 | $ | 0.57 | $ | 0.70 | $ | 1.75 | $ | 1.67 | ||||||||||
Earnings (diluted) | $ | 0.63 | $ | 0.57 | $ | 0.70 | $ | 1.75 | $ | 1.67 | ||||||||||
Book value | $ | 27.05 | $ | 26.83 | $ | 22.76 | $ | 27.05 | $ | 22.76 | ||||||||||
Tangible book value per common share (1) | $ | 15.93 | $ | 15.66 | $ | 15.96 | $ | 15.93 | $ | 15.96 | ||||||||||
Averages | ||||||||||||||||||||
Total assets | $ | 12,805,131 | $ | 12,529,540 | $ | 9,695,005 | $ | 12,646,678 | $ | 9,589,469 | ||||||||||
Interest-earning assets | $ | 11,326,629 | $ | 11,052,807 | $ | 8,750,561 | $ | 11,168,143 | $ | 8,641,706 | ||||||||||
Loans | $ | 8,456,632 | $ | 8,389,230 | $ | 6,441,537 | $ | 8,398,596 | $ | 6,322,629 | ||||||||||
Securities, including equity securities and FHLB stock | $ | 2,849,495 | $ | 2,628,292 | $ | 2,236,235 | $ | 2,720,625 | $ | 2,287,329 | ||||||||||
Deposits | $ | 10,478,800 | $ | 10,264,822 | $ | 8,187,337 | $ | 10,359,896 | $ | 8,036,805 | ||||||||||
Interest-bearing deposits | $ | 5,376,300 | $ | 5,390,869 | $ | 4,200,580 | $ | 5,390,859 | $ | 4,147,740 | ||||||||||
Interest-bearing liabilities | $ | 5,620,997 | $ | 5,611,055 | $ | 4,285,936 | $ | 5,619,943 | $ | 4,305,686 | ||||||||||
Noninterest-bearing deposits | $ | 5,102,500 | $ | 4,873,953 | $ | 3,986,757 | $ | 4,969,037 | $ | 3,889,065 | ||||||||||
Shareholders' equity | $ | 1,983,317 | $ | 1,954,552 | $ | 1,323,794 | $ | 1,962,506 | $ | 1,293,898 | ||||||||||
Financial Ratios | ||||||||||||||||||||
Return on average assets | 1.45 | % | 1.33 | % | 1.68 | % | 1.35 | % | 1.35 | % | ||||||||||
Return on average common equity | 9.36 | % | 8.54 | % | 12.32 | % | 8.71 | % | 10.01 | % | ||||||||||
Return on average tangible common equity (1) | 16.74 | % | 15.57 | % | 17.93 | % | 15.80 | % | 14.83 | % | ||||||||||
Average equity to average assets | 15.49 | % | 15.60 | % | 13.65 | % | 15.52 | % | 13.49 | % | ||||||||||
Shareholders equity to total assets | 15.29 | % | 15.56 | % | 13.54 | % | 15.29 | % | 13.54 | % | ||||||||||
Tangible common shareholders' equity to tangible assets (1) | 9.61 | % | 9.71 | % | 9.89 | % | 9.61 | % | 9.89 | % | ||||||||||
Net interest margin (tax equivalent) | 4.41 | % | 4.29 | % | 4.20 | % | 4.31 | % | 4.17 | % | ||||||||||
Efficiency ratio (tax equivalent) (2) | 56.67 | % | 59.29 | % | 52.09 | % | 58.97 | % | 57.26 | % | ||||||||||
Operating efficiency ratio (tax equivalent) (1) | 54.83 | % | 56.02 | % | 56.47 | % | 56.13 | % | 57.58 | % | ||||||||||
Noninterest expense ratio | 2.59 | % | 2.70 | % | 2.79 | % | 2.67 | % | 2.86 | % | ||||||||||
Core noninterest expense ratio (1) | 2.55 | % | 2.61 | % | 2.73 | % | 2.59 | % | 2.77 | % | ||||||||||
September 30, | June 30, | December 31, | ||||||||||||||||||
Period end | 2018 | 2018 | 2017 | |||||||||||||||||
Total assets | $ | 12,956,596 | $ | 12,628,586 | $ | 12,716,886 | ||||||||||||||
Loans, net of unearned income | $ | 8,514,317 | $ | 8,454,107 | $ | 8,358,657 | ||||||||||||||
Allowance for loan and lease losses | $ | 83,787 | $ | 80,150 | $ | 75,646 | ||||||||||||||
Securities, including equity securities and FHLB stock | $ | 2,942,655 | $ | 2,665,131 | $ | 2,753,271 | ||||||||||||||
Deposits | $ | 10,603,957 | $ | 10,384,004 | $ | 10,532,085 | ||||||||||||||
Core deposits | $ | 10,084,687 | $ | 9,888,696 | $ | 10,039,557 | ||||||||||||||
Shareholders' equity | $ | 1,981,395 | $ | 1,964,881 | $ | 1,949,922 | ||||||||||||||
Nonperforming assets | ||||||||||||||||||||
Nonaccrual loans | $ | 60,332 | $ | 69,504 | $ | 66,189 | ||||||||||||||
Other real estate owned ("OREO") and other personal property owned ("OPPO") | 7,415 | 7,080 | 13,298 | |||||||||||||||||
Total nonperforming assets | $ | 67,747 | $ | 76,584 | $ | 79,487 | ||||||||||||||
Nonperforming loans to period-end loans | 0.71 | % | 0.82 | % | 0.79 | % | ||||||||||||||
Nonperforming assets to period-end assets | 0.52 | % | 0.61 | % | 0.63 | % | ||||||||||||||
Allowance for loan and lease losses to period-end loans | 0.98 | % | 0.95 | % | 0.91 | % | ||||||||||||||
Net loan charge-offs (recoveries) (3) | $ | (484) | $ | 3,652 | $ | (703) | ||||||||||||||
(1) This is a non-GAAP measure. See section titled "Non-GAAP Financial Measures" on the last three pages of this earnings release for a reconciliation to the most comparable GAAP measure. | ||||||||||||||||||||
(2) Noninterest expense divided by the sum of net interest income on a tax equivalent basis and noninterest income on a tax equivalent basis. | ||||||||||||||||||||
(3) For the three months ended. |
QUARTERLY FINANCIAL STATISTICS | ||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | |||||||||||||||||||
Unaudited | September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | ||||||||||||||||
Earnings | (dollars in thousands except per share) | |||||||||||||||||||
Net interest income | $ | 122,796 | $ | 116,674 | $ | 115,481 | $ | 106,224 | $ | 88,929 | ||||||||||
Provision (recapture) for loan and lease losses | $ | 3,153 | $ | 3,975 | $ | 5,852 | $ | 3,327 | $ | (648) | ||||||||||
Noninterest income | $ | 21,019 | $ | 23,692 | $ | 23,143 | $ | 23,581 | $ | 37,067 | ||||||||||
Noninterest expense | $ | 82,841 | $ | 84,643 | $ | 85,987 | $ | 85,627 | $ | 67,537 | ||||||||||
Acquisition-related expense (included in noninterest expense) | $ | 1,081 | $ | 2,822 | $ | 4,265 | $ | 13,638 | $ | 1,171 | ||||||||||
Net income | $ | 46,415 | $ | 41,749 | $ | 39,970 | $ | 15,728 | $ | 40,769 | ||||||||||
Per Common Share | ||||||||||||||||||||
Earnings (basic) | $ | 0.63 | $ | 0.57 | $ | 0.55 | $ | 0.23 | $ | 0.70 | ||||||||||
Earnings (diluted) | $ | 0.63 | $ | 0.57 | $ | 0.55 | $ | 0.23 | $ | 0.70 | ||||||||||
Book value | $ | 27.05 | $ | 26.83 | $ | 26.60 | $ | 26.70 | $ | 22.76 | ||||||||||
Averages | ||||||||||||||||||||
Total assets | $ | 12,805,131 | $ | 12,529,540 | $ | 12,603,144 | $ | 11,751,049 | $ | 9,695,005 | ||||||||||
Interest-earning assets | $ | 11,326,629 | $ | 11,052,807 | $ | 11,122,753 | $ | 10,453,097 | $ | 8,750,561 | ||||||||||
Loans | $ | 8,456,632 | $ | 8,389,230 | $ | 8,348,740 | $ | 7,749,420 | $ | 6,441,537 | ||||||||||
Securities, including equity securities and FHLB stock | $ | 2,849,495 | $ | 2,628,292 | $ | 2,682,250 | $ | 2,539,321 | $ | 2,236,235 | ||||||||||
Deposits | $ | 10,478,800 | $ | 10,264,822 | $ | 10,334,480 | $ | 9,804,456 | $ | 8,187,337 | ||||||||||
Interest-bearing deposits | $ | 5,376,300 | $ | 5,390,869 | $ | 5,405,730 | $ | 5,033,980 | $ | 4,200,580 | ||||||||||
Interest-bearing liabilities | $ | 5,620,997 | $ | 5,611,055 | $ | 5,627,853 | $ | 5,127,100 | $ | 4,285,936 | ||||||||||
Noninterest-bearing deposits | $ | 5,102,500 | $ | 4,873,953 | $ | 4,928,750 | $ | 4,770,476 | $ | 3,986,757 | ||||||||||
Shareholders' equity | $ | 1,983,317 | $ | 1,954,552 | $ | 1,949,275 | $ | 1,754,745 | $ | 1,323,794 | ||||||||||
Financial Ratios | ||||||||||||||||||||
Return on average assets | 1.45 | % | 1.33 | % | 1.27 | % | 0.54 | % | 1.68 | % | ||||||||||
Return on average common equity | 9.36 | % | 8.54 | % | 8.20 | % | 3.59 | % | 12.32 | % | ||||||||||
Average equity to average assets | 15.49 | % | 15.60 | % | 15.47 | % | 14.93 | % | 13.65 | % | ||||||||||
Shareholders' equity to total assets | 15.29 | % | 15.56 | % | 15.55 | % | 15.33 | % | 13.54 | % | ||||||||||
Net interest margin (tax equivalent) | 4.41 | % | 4.29 | % | 4.22 | % | 4.20 | % | 4.20 | % | ||||||||||
Period end | ||||||||||||||||||||
Total assets | $ | 12,956,596 | $ | 12,628,586 | $ | 12,530,636 | $ | 12,716,886 | $ | 9,814,578 | ||||||||||
Loans, net of unearned income | $ | 8,514,317 | $ | 8,454,107 | $ | 8,339,631 | $ | 8,358,657 | $ | 6,512,006 | ||||||||||
Allowance for loan and lease losses | $ | 83,787 | $ | 80,150 | $ | 79,827 | $ | 75,646 | $ | 71,616 | ||||||||||
Securities, including equity securities and FHLB stock | $ | 2,942,655 | $ | 2,665,131 | $ | 2,640,685 | $ | 2,753,271 | $ | 2,218,113 | ||||||||||
Deposits | $ | 10,603,957 | $ | 10,384,004 | $ | 10,395,523 | $ | 10,532,085 | $ | 8,341,717 | ||||||||||
Core deposits | $ | 10,084,687 | $ | 9,888,696 | $ | 9,897,185 | $ | 10,039,557 | $ | 7,999,499 | ||||||||||
Shareholders' equity | $ | 1,981,395 | $ | 1,964,881 | $ | 1,947,923 | $ | 1,949,922 | $ | 1,328,428 | ||||||||||
Goodwill | $ | 765,842 | $ | 765,842 | $ | 765,842 | $ | 765,842 | $ | 382,762 | ||||||||||
Other intangible assets, net | $ | 48,827 | $ | 51,897 | $ | 54,985 | $ | 58,173 | $ | 13,845 | ||||||||||
Nonperforming assets | ||||||||||||||||||||
Nonaccrual loans | $ | 60,332 | $ | 69,504 | $ | 78,464 | $ | 66,189 | $ | 40,317 | ||||||||||
OREO and OPPO | 7,415 | 7,080 | 11,507 | 13,298 | 3,682 | |||||||||||||||
Total nonperforming assets | $ | 67,747 | $ | 76,584 | $ | 89,971 | $ | 79,487 | $ | 43,999 | ||||||||||
Nonperforming loans to period-end loans | 0.71 | % | 0.82 | % | 0.94 | % | 0.79 | % | 0.62 | % | ||||||||||
Nonperforming assets to period-end assets | 0.52 | % | 0.61 | % | 0.72 | % | 0.63 | % | 0.45 | % | ||||||||||
Allowance for loan and lease losses to period-end loans | 0.98 | % | 0.95 | % | 0.96 | % | 0.91 | % | 1.10 | % | ||||||||||
Net loan charge-offs (recoveries) | $ | (484) | $ | 3,652 | $ | 1,671 | $ | (703) | $ | 720 | ||||||||||
LOAN PORTFOLIO COMPOSITION | ||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||
Unaudited | September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | ||||||||||||||||
Loan Portfolio Composition - Dollars | (dollars in thousands) | |||||||||||||||||||
Commercial business | $ | 3,554,147 | $ | 3,538,492 | $ | 3,402,162 | $ | 3,377,324 | $ | 2,735,206 | ||||||||||
Real estate: | ||||||||||||||||||||
One-to-four family residential | 232,924 | 180,522 | 182,302 | 188,396 | 176,487 | |||||||||||||||
Commercial and multifamily residential | 3,786,615 | 3,758,207 | 3,776,709 | 3,825,739 | 2,825,794 | |||||||||||||||
Total real estate | 4,019,539 | 3,938,729 | 3,959,011 | 4,014,135 | 3,002,281 | |||||||||||||||
Real estate construction: | ||||||||||||||||||||
One-to-four family residential | 211,629 | 206,181 | 208,441 | 200,518 | 145,419 | |||||||||||||||
Commercial and multifamily residential | 349,328 | 387,951 | 385,339 | 371,931 | 213,939 | |||||||||||||||
Total real estate construction | 560,957 | 594,132 | 593,780 | 572,449 | 359,358 | |||||||||||||||
Consumer | 327,863 | 326,402 | 323,631 | 334,190 | 323,913 | |||||||||||||||
Purchased credit impaired | 95,936 | 101,782 | 109,299 | 112,670 | 120,477 | |||||||||||||||
Subtotal loans | 8,558,442 | 8,499,537 | 8,387,883 | 8,410,768 | 6,541,235 | |||||||||||||||
Less: Net unearned income | (44,125) | (45,430) | (48,252) | (52,111) | (29,229) | |||||||||||||||
Loans, net of unearned income | 8,514,317 | 8,454,107 | 8,339,631 | 8,358,657 | 6,512,006 | |||||||||||||||
Less: Allowance for loan and lease losses | (83,787) | (80,150) | (79,827) | (75,646) | (71,616) | |||||||||||||||
Total loans, net | 8,430,530 | 8,373,957 | 8,259,804 | 8,283,011 | 6,440,390 | |||||||||||||||
Loans held for sale | $ | 5,275 | $ | 6,773 | $ | 4,312 | $ | 5,766 | $ | 7,802 | ||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
Loan Portfolio Composition - Percentages | 2018 | 2018 | 2018 | 2017 | 2017 | ||||||||||
Commercial business | 41.7 | % | 41.9 | % | 40.8 | % | 40.4 | % | 42.0 | % | |||||
Real estate: | |||||||||||||||
One-to-four family residential | 2.7 | % | 2.1 | % | 2.2 | % | 2.3 | % | 2.7 | % | |||||
Commercial and multifamily residential | 44.5 | % | 44.4 | % | 45.3 | % | 45.8 | % | 43.3 | % | |||||
Total real estate | 47.2 | % | 46.5 | % | 47.5 | % | 48.1 | % | 46.0 | % | |||||
Real estate construction: | |||||||||||||||
One-to-four family residential | 2.5 | % | 2.4 | % | 2.5 | % | 2.4 | % | 2.2 | % | |||||
Commercial and multifamily residential | 4.1 | % | 4.6 | % | 4.6 | % | 4.4 | % | 3.3 | % | |||||
Total real estate construction | 6.6 | % | 7.0 | % | 7.1 | % | 6.8 | % | 5.5 | % | |||||
Consumer | 3.9 | % | 3.9 | % | 3.9 | % | 4.0 | % | 5.0 | % | |||||
Purchased credit impaired | 1.1 | % | 1.2 | % | 1.3 | % | 1.3 | % | 1.9 | % | |||||
Subtotal loans | 100.5 | % | 100.5 | % | 100.6 | % | 100.6 | % | 100.4 | % | |||||
Less: Net unearned income | (0.5) | % | (0.5) | % | (0.6) | % | (0.6) | % | (0.4) | % | |||||
Loans, net of unearned income | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||
DEPOSIT COMPOSITION | ||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2018 | 2018 | 2018 | 2017 | 2017 | ||||||||||||||||
Deposit Composition - Dollars | (dollars in thousands) | |||||||||||||||||||
Core deposits: | ||||||||||||||||||||
Demand and other non-interest bearing | $ | 5,250,222 | $ | 4,953,993 | $ | 4,927,226 | $ | 5,081,901 | $ | 4,119,950 | ||||||||||
Interest bearing demand | 1,260,543 | 1,278,686 | 1,328,756 | 1,265,212 | 1,009,378 | |||||||||||||||
Money market | 2,413,185 | 2,513,648 | 2,477,487 | 2,543,712 | 1,821,262 | |||||||||||||||
Savings | 908,945 | 875,707 | 886,171 | 861,941 | 772,858 | |||||||||||||||
Certificates of deposit, less than $250,000 | 251,792 | 266,662 | 277,545 | 286,791 | 276,051 | |||||||||||||||
Total core deposits | 10,084,687 | 9,888,696 | 9,897,185 | 10,039,557 | 7,999,499 | |||||||||||||||
Certificates of deposit, $250,000 or more | 90,387 | 91,578 | 96,333 | 100,399 | 84,105 | |||||||||||||||
Certificates of deposit insured by CDARS® (1) | 23,841 | 23,492 | 23,191 | 25,374 | 20,690 | |||||||||||||||
Brokered certificates of deposit | 65,476 | 68,870 | 76,931 | 78,481 | — | |||||||||||||||
Reciprocal money market accounts (1) | 340,044 | 311,935 | 302,544 | 289,031 | 237,421 | |||||||||||||||
Subtotal | 10,604,435 | 10,384,571 | 10,396,184 | 10,532,842 | 8,341,715 | |||||||||||||||
Premium (discount) resulting from acquisition date fair value adjustment | (478) | (567) | (661) | (757) | 2 | |||||||||||||||
Total deposits | $ | 10,603,957 | $ | 10,384,004 | $ | 10,395,523 | $ | 10,532,085 | $ | 8,341,717 | ||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
Deposit Composition - Percentages | 2018 | 2018 | 2018 | 2017 | 2017 | ||||||||||
Core deposits: | |||||||||||||||
Demand and other non-interest bearing | 49.5 | % | 47.7 | % | 47.4 | % | 48.2 | % | 49.4 | % | |||||
Interest bearing demand | 11.9 | % | 12.3 | % | 12.8 | % | 12.0 | % | 12.1 | % | |||||
Money market | 22.8 | % | 24.2 | % | 23.8 | % | 24.2 | % | 21.8 | % | |||||
Savings | 8.6 | % | 8.4 | % | 8.5 | % | 8.2 | % | 9.3 | % | |||||
Certificates of deposit, less than $250,000 | 2.4 | % | 2.6 | % | 2.7 | % | 2.7 | % | 3.3 | % | |||||
Total core deposits | 95.2 | % | 95.2 | % | 95.2 | % | 95.3 | % | 95.9 | % | |||||
Certificates of deposit, $250,000 or more | 0.9 | % | 0.9 | % | 0.9 | % | 1.0 | % | 1.0 | % | |||||
Certificates of deposit insured by CDARS® (1) | 0.2 | % | 0.2 | % | 0.2 | % | 0.2 | % | 0.2 | % | |||||
Brokered certificates of deposit | 0.6 | % | 0.7 | % | 0.7 | % | 0.7 | % | — | % | |||||
Reciprocal money market accounts (1) | 3.1 | % | 3.0 | % | 3.0 | % | 2.8 | % | 2.9 | % | |||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||
__________ |
(1) For periods prior to June 30, 2018, CDARS® and reciprocal money market accounts were considered to be brokered deposits by regulatory authorities and were reported as such on quarterly Call Reports. With the passage of The Economic Growth, Regulatory Relief and Consumer Protection Act in May 2018, these items are no longer considered brokered deposits. |
AVERAGE BALANCES AND RATES | ||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
September 30, 2018 | September 30, 2017 | |||||||||||||||||||||
AverageBalances | InterestEarned / Paid | AverageRate | AverageBalances | InterestEarned / Paid | AverageRate | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Loans, net (1)(2) | $ | 8,456,632 | $ | 110,925 | 5.25 | % | $ | 6,441,537 | $ | 80,136 | 4.98 | % | ||||||||||
Taxable securities | 2,336,405 | 14,654 | 2.51 | % | 1,784,407 | 8,718 | 1.95 | % | ||||||||||||||
Tax exempt securities (2) | 513,090 | 3,885 | 3.03 | % | 451,828 | 4,181 | 3.70 | % | ||||||||||||||
Interest-earning deposits with banks | 20,502 | 104 | 2.03 | % | 72,789 | 226 | 1.24 | % | ||||||||||||||
Total interest-earning assets | 11,326,629 | $ | 129,568 | 4.58 | % | 8,750,561 | $ | 93,261 | 4.26 | % | ||||||||||||
Other earning assets | 228,332 | 173,611 | ||||||||||||||||||||
Noninterest-earning assets | 1,250,170 | 770,833 | ||||||||||||||||||||
Total assets | $ | 12,805,131 | $ | 9,695,005 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||
Certificates of deposit | $ | 440,196 | $ | 544 | 0.49 | % | $ | 382,299 | $ | 92 | 0.10 | % | ||||||||||
Savings accounts | 889,793 | 31 | 0.01 | % | 766,540 | 19 | 0.01 | % | ||||||||||||||
Interest-bearing demand | 1,246,592 | 689 | 0.22 | % | 1,000,079 | 223 | 0.09 | % | ||||||||||||||
Money market accounts | 2,799,719 | 1,929 | 0.28 | % | 2,051,662 | 749 | 0.15 | % | ||||||||||||||
Total interest-bearing deposits | 5,376,300 | 3,193 | 0.24 | % | 4,200,580 | 1,083 | 0.10 | % | ||||||||||||||
FHLB advances | 167,531 | 966 | 2.31 | % | 33,687 | 163 | 1.94 | % | ||||||||||||||
Subordinated debentures | 35,530 | 468 | 5.27 | % | — | — | — | % | ||||||||||||||
Other borrowings | 41,636 | 152 | 1.46 | % | 51,669 | 128 | 0.99 | % | ||||||||||||||
Total interest-bearing liabilities | 5,620,997 | $ | 4,779 | 0.34 | % | 4,285,936 | $ | 1,374 | 0.13 | % | ||||||||||||
Noninterest-bearing deposits | 5,102,500 | 3,986,757 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 98,317 | 98,518 | ||||||||||||||||||||
Shareholders' equity | 1,983,317 | 1,323,794 | ||||||||||||||||||||
Total liabilities & shareholders' equity | $ | 12,805,131 | $ | 9,695,005 | ||||||||||||||||||
Net interest income (tax equivalent) | $ | 124,789 | $ | 91,887 | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.41 | % | 4.20 | % | ||||||||||||||||||
(1) | Nonaccrual loans have been included in the tables as loans carrying a zero yield. Amortized net deferred loan fees and net unearned discounts on acquired loans were included in the interest income calculations. The amortization of net deferred loan fees was $2.5 million and $1.8 million for the three month periods ended September 30, 2018 and September 30, 2017, respectively. The incremental accretion on acquired loans was $3.2 million and $2.9 million for the three months ended September 30, 2018 and 2017, respectively. |
(2) | Tax-exempt income is calculated on a tax equivalent basis at a rate of 21% for 2018 and 35% for 2017. The tax equivalent yield adjustment to interest earned on loans was $1.2 million and $1.5 million for the three months ended September 30, 2018 and 2017, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $816 thousand and $1.5 million for the three month periods ended September 30, 2018 and 2017, respectively. |
AVERAGE BALANCES AND RATES | ||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
September 30, 2018 | June 30, 2018 | |||||||||||||||||||||
AverageBalances | InterestEarned / Paid | AverageRate | AverageBalances | InterestEarned / Paid | AverageRate | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Loans, net (1)(2) | $ | 8,456,632 | $ | 110,925 | 5.25 | % | $ | 8,389,230 | $ | 106,526 | 5.08 | % | ||||||||||
Taxable securities | 2,336,405 | 14,654 | 2.51 | % | 2,111,086 | 11,923 | 2.26 | % | ||||||||||||||
Tax exempt securities (2) | 513,090 | 3,885 | 3.03 | % | 517,206 | 3,877 | 3.00 | % | ||||||||||||||
Interest-earning deposits with banks | 20,502 | 104 | 2.03 | % | 35,285 | 151 | 1.71 | % | ||||||||||||||
Total interest-earning assets | 11,326,629 | $ | 129,568 | 4.58 | % | 11,052,807 | $ | 122,477 | 4.43 | % | ||||||||||||
Other earning assets | 228,332 | 221,141 | ||||||||||||||||||||
Noninterest-earning assets | 1,250,170 | 1,255,592 | ||||||||||||||||||||
Total assets | $ | 12,805,131 | $ | 12,529,540 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||
Certificates of deposit | $ | 440,196 | $ | 544 | 0.49 | % | $ | 464,217 | $ | 549 | 0.47 | % | ||||||||||
Savings accounts | 889,793 | 31 | 0.01 | % | 875,529 | 30 | 0.01 | % | ||||||||||||||
Interest-bearing demand | 1,246,592 | 689 | 0.22 | % | 1,295,409 | 608 | 0.19 | % | ||||||||||||||
Money market accounts | 2,799,719 | 1,929 | 0.28 | % | 2,755,714 | 1,385 | 0.20 | % | ||||||||||||||
Total interest-bearing deposits | 5,376,300 | 3,193 | 0.24 | % | 5,390,869 | 2,572 | 0.19 | % | ||||||||||||||
FHLB advances | 167,531 | 966 | 2.31 | % | 156,512 | 815 | 2.08 | % | ||||||||||||||
Subordinated debentures | 35,530 | 468 | 5.27 | % | 35,577 | 468 | 5.26 | % | ||||||||||||||
Other borrowings | 41,636 | 152 | 1.46 | % | 28,097 | 20 | 0.28 | % | ||||||||||||||
Total interest-bearing liabilities | 5,620,997 | $ | 4,779 | 0.34 | % | 5,611,055 | $ | 3,875 | 0.28 | % | ||||||||||||
Noninterest-bearing deposits | 5,102,500 | 4,873,953 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 98,317 | 89,980 | ||||||||||||||||||||
Shareholders' equity | 1,983,317 | 1,954,552 | ||||||||||||||||||||
Total liabilities & shareholders' equity | $ | 12,805,131 | $ | 12,529,540 | ||||||||||||||||||
Net interest income (tax equivalent) | $ | 124,789 | $ | 118,602 | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.41 | % | 4.29 | % | ||||||||||||||||||
(1) | Nonaccrual loans have been included in the tables as loans carrying a zero yield. Amortized net deferred loan fees and net unearned discounts on acquired loans were included in the interest income calculations. The amortization of net deferred loan fees was $2.5 million and $2.1 million for the three month periods ended September 30, 2018 and June 30, 2018, respectively. The incremental accretion on acquired loans was $3.2 million and $3.0 million for the three months ended September 30, 2018 and June 30, 2018, respectively. |
(2) | Tax-exempt income is calculated on a tax equivalent basis at a rate of 21% for 2018. The tax equivalent yield adjustment to interest earned on loans was $1.2 million and $1.1 million for the three months ended September 30, 2018 and June 30, 2018, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $816 thousand and $814 thousand for the three month periods ended September 30, 2018 and June 30, 2018, respectively. |
AVERAGE BALANCES AND RATES | ||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, 2018 | September 30, 2017 | |||||||||||||||||||||
AverageBalances | InterestEarned / Paid | AverageRate | AverageBalances | InterestEarned / Paid | AverageRate | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Loans, net (1)(2) | $ | 8,398,596 | $ | 321,542 | 5.10 | % | $ | 6,322,629 | $ | 232,680 | 4.91 | % | ||||||||||
Taxable securities | 2,202,497 | 39,285 | 2.38 | % | 1,835,693 | 29,172 | 2.12 | % | ||||||||||||||
Tax exempt securities (2) | 518,128 | 11,640 | 3.00 | % | 451,636 | 12,500 | 3.69 | % | ||||||||||||||
Interest-earning deposits with banks | 48,922 | 600 | 1.64 | % | 31,748 | 268 | 1.13 | % | ||||||||||||||
Total interest-earning assets | 11,168,143 | $ | 373,067 | 4.45 | % | 8,641,706 | $ | 274,620 | 4.24 | % | ||||||||||||
Other earning assets | 222,570 | 174,898 | ||||||||||||||||||||
Noninterest-earning assets | 1,255,965 | 772,865 | ||||||||||||||||||||
Total assets | $ | 12,646,678 | $ | 9,589,469 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||
Certificates of deposit | $ | 461,236 | $ | 1,619 | 0.47 | % | $ | 389,260 | $ | 282 | 0.10 | % | ||||||||||
Savings accounts | 881,207 | 102 | 0.02 | % | 753,577 | 57 | 0.01 | % | ||||||||||||||
Interest-bearing demand | 1,264,918 | 1,832 | 0.19 | % | 985,625 | 574 | 0.08 | % | ||||||||||||||
Money market accounts | 2,783,498 | 4,721 | 0.23 | % | 2,019,278 | 1,865 | 0.12 | % | ||||||||||||||
Total interest-bearing deposits | 5,390,859 | 8,274 | 0.20 | % | 4,147,740 | 2,778 | 0.09 | % | ||||||||||||||
FHLB advances | 150,054 | 2,351 | 2.09 | % | 103,369 | 979 | 1.26 | % | ||||||||||||||
Subordinated debentures | 35,577 | 1,404 | 5.26 | % | — | — | — | % | ||||||||||||||
Other borrowings | 43,453 | 288 | 0.88 | % | 54,577 | 383 | 0.94 | % | ||||||||||||||
Total interest-bearing liabilities | 5,619,943 | $ | 12,317 | 0.29 | % | 4,305,686 | $ | 4,140 | 0.13 | % | ||||||||||||
Noninterest-bearing deposits | 4,969,037 | 3,889,065 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 95,192 | 100,820 | ||||||||||||||||||||
Shareholders' equity | 1,962,506 | 1,293,898 | ||||||||||||||||||||
Total liabilities & shareholders' equity | $ | 12,646,678 | $ | 9,589,469 | ||||||||||||||||||
Net interest income (tax equivalent) | $ | 360,750 | $ | 270,480 | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.31 | % | 4.17 | % | ||||||||||||||||||
(1) | Nonaccrual loans have been included in the table as loans carrying a zero yield. Amortized net deferred loan fees and net unearned discounts on acquired loans were included in the interest income calculations. The amortization of net deferred loan fees was $6.8 million and $5.2 million for the nine months ended September 30, 2018 and 2017, respectively. The incremental accretion on acquired loans was $9.9 million and $10.0 million for the nine months ended September 30, 2018 and 2017, respectively. |
(2) | Tax-exempt income is calculated on a tax equivalent basis at a rate of 21% for 2018 and 35% for 2017. The tax equivalent yield adjustment to interest earned on loans was $3.4 million and $4.3 million for the nine months ended September 30, 2018 and 2017, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $2.4 million and $4.4 million for the nine months ended September 30, 2018 and 2017, respectively. |
Non-GAAP Financial Measures
The Company considers its operating net interest margin and operating efficiency ratios to be useful measurements as they more closely reflect the ongoing operating performance of the Company. Despite the usefulness of the operating net interest margin and operating efficiency ratio to the Company, there are no standardized definitions for them and, as a result, the Company's calculations may not be comparable with other organizations. The Company encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure.
The following tables reconcile the Company's calculation of the operating net interest margin and operating efficiency ratio:
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2018 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Operating net interest margin non-GAAP reconciliation: | (dollars in thousands) | |||||||||||||||||||
Net interest income (tax equivalent) (1) | $ | 124,789 | $ | 118,602 | $ | 91,887 | $ | 360,750 | $ | 270,480 | ||||||||||
Adjustments to arrive at operating net interest income (tax equivalent): | ||||||||||||||||||||
Incremental accretion income on FDIC purchased credit impaired loans | (585) | (326) | (972) | (1,240) | (3,842) | |||||||||||||||
Incremental accretion income on other acquired loans | (2,643) | (2,690) | (1,903) | (8,703) | (6,207) | |||||||||||||||
Premium amortization on acquired securities | 1,859 | 2,131 | 1,527 | 6,065 | 4,658 | |||||||||||||||
Interest reversals on nonaccrual loans | 477 | 253 | 311 | 1,147 | 1,323 | |||||||||||||||
Operating net interest income (tax equivalent) (1) | $ | 123,897 | $ | 117,970 | $ | 90,850 | $ | 358,019 | $ | 266,412 | ||||||||||
Average interest earning assets | $ | 11,326,629 | $ | 11,052,807 | $ | 8,750,561 | $ | 11,168,143 | $ | 8,641,706 | ||||||||||
Net interest margin (tax equivalent) (1) | 4.41 | % | 4.29 | % | 4.20 | % | 4.31 | % | 4.17 | % | ||||||||||
Operating net interest margin (tax equivalent) (1) | 4.38 | % | 4.27 | % | 4.15 | % | 4.27 | % | 4.11 | % | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2018 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Operating efficiency ratio non-GAAP reconciliation: | (dollars in thousands) | |||||||||||||||||||
Noninterest expense (numerator A) | $ | 82,841 | $ | 84,643 | $ | 67,537 | $ | 253,471 | $ | 205,390 | ||||||||||
Adjustments to arrive at operating noninterest expense: | ||||||||||||||||||||
Acquisition-related expenses | (1,081) | (2,822) | (1,171) | (8,168) | (3,558) | |||||||||||||||
Net benefit (cost) of operation of OREO and OPPO | (485) | (758) | (271) | (1,239) | (420) | |||||||||||||||
FDIC clawback liability recovery | — | — | — | — | 54 | |||||||||||||||
Loss on asset disposals | (110) | (1) | — | (111) | (14) | |||||||||||||||
Termination of FDIC loss share agreements charge | — | — | — | — | (2,409) | |||||||||||||||
State of Washington Business and Occupation ("B&O") taxes | (1,478) | (1,459) | (1,394) | (4,254) | (3,159) | |||||||||||||||
Operating noninterest expense (numerator B) | $ | 79,687 | $ | 79,603 | $ | 64,701 | $ | 239,699 | $ | 195,884 | ||||||||||
Net interest income (tax equivalent) (1) | $ | 124,789 | $ | 118,602 | $ | 91,887 | $ | 360,750 | $ | 270,480 | ||||||||||
Noninterest income | 21,019 | 23,692 | 37,067 | 67,854 | 86,061 | |||||||||||||||
Bank owned life insurance tax equivalent adjustment | 373 | 455 | 695 | 1,207 | 2,156 | |||||||||||||||
Total revenue (tax equivalent) (denominator A) | $ | 146,181 | $ | 142,749 | $ | 129,649 | $ | 429,811 | $ | 358,697 | ||||||||||
Operating net interest income (tax equivalent) (1) | $ | 123,897 | $ | 117,970 | $ | 90,850 | $ | 358,019 | $ | 266,412 | ||||||||||
Adjustments to arrive at operating noninterest income (tax equivalent): | ||||||||||||||||||||
Investment securities losses, net | 62 | 33 | — | 73 | — | |||||||||||||||
Gain on asset disposals | (29) | (47) | (38) | (111) | (323) | |||||||||||||||
Mortgage loan repurchase liability adjustment | — | — | — | — | (573) | |||||||||||||||
Change in FDIC loss-sharing asset | — | — | — | — | 447 | |||||||||||||||
Gain on sale of merchant card services portfolio | — | — | (14,000) | — | (14,000) | |||||||||||||||
Operating noninterest income (tax equivalent) | 21,425 | 24,133 | 23,724 | 69,023 | 73,768 | |||||||||||||||
Total operating revenue (tax equivalent) (denominator B) | $ | 145,322 | $ | 142,103 | $ | 114,574 | $ | 427,042 | $ | 340,180 | ||||||||||
Efficiency ratio (tax equivalent) (numerator A/denominator A) | 56.67 | % | 59.29 | % | 52.09 | % | 58.97 | % | 57.26 | % | ||||||||||
Operating efficiency ratio (tax equivalent) (numerator B/denominator B) | 54.83 | % | 56.02 | % | 56.47 | % | 56.13 | % | 57.58 | % | ||||||||||
__________ |
(1) Tax-exempt interest income has been adjusted to a tax equivalent basis. The amount of such adjustment was an addition to net interest income of $2.0 million, $1.9 million, and $3.0 million for the three month periods ended September 30, 2018, June 30, 2018, and September 30, 2017; and $5.8 million and $8.7 million for the nine month periods ended September 30, 2018 and September 30, 2017, respectively. |
Non-GAAP Financial Measures - Continued
The Company also considers its core noninterest expense ratio to be a useful measurement as it more closely reflects the ongoing operating performance of the Company. Despite the usefulness of the core noninterest expense ratio to the Company, there is not a standardized definition for it, as a result, the Company's calculations may not be comparable with other organizations. The Company encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure.
The following table reconciles the Company's calculation of the core noninterest expense ratio:
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2018 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Core noninterest expense ratio non-GAAP reconciliation: | (dollars in thousands) | |||||||||||||||||||
Noninterest expense (numerator A) | $ | 82,841 | $ | 84,643 | $ | 67,537 | $ | 253,471 | $ | 205,390 | ||||||||||
Adjustments to arrive at core noninterest expense: | ||||||||||||||||||||
FDIC clawback liability recovery | — | — | — | — | 54 | |||||||||||||||
Acquisition-related expenses | (1,081) | (2,822) | (1,171) | (8,168) | (3,558) | |||||||||||||||
Net benefit (cost) of operation of OREO and OPPO (1) | — | — | (271) | — | (420) | |||||||||||||||
Termination of FDIC loss share agreements charge | — | — | — | — | (2,409) | |||||||||||||||
Core noninterest expense (numerator B) | $ | 81,760 | $ | 81,821 | $ | 66,095 | $ | 245,303 | $ | 199,057 | ||||||||||
Average assets (denominator) | $ | 12,805,131 | $ | 12,529,540 | $ | 9,695,005 | $ | 12,646,678 | $ | 9,589,469 | ||||||||||
Noninterest expense ratio (numerator A/denominator) (2) | 2.59 | % | 2.70 | % | 2.79 | % | 2.67 | % | 2.86 | % | ||||||||||
Core noninterest expense ratio (numerator B/denominator) (3) | 2.55 | % | 2.61 | % | 2.73 | % | 2.59 | % | 2.77 | % | ||||||||||
__________ | |
(1) | Effective January 1, 2018, core noninterest expense no longer excludes net benefit (cost) of operation of OREO and OPPO. |
(2) | For the purpose of this ratio, interim noninterest expense has been annualized. |
(3) | For the purpose of this ratio, interim core noninterest expense has been annualized. |
The Company considers its tangible common equity ratio and tangible book value per share ratio to be useful measurements in evaluating the capital adequacy of the Company as they provide a method to assess management's success in utilizing our tangible capital. Despite the usefulness of these ratios to the Company, there is not a standardized definition for them, as a result, the Company's calculation may not always be comparable with other organizations. The Company encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure.
The following tables reconcile the Company's calculation of the tangible common equity ratio:
September 30, | June 30, | September 30, | ||||||||||
2018 | 2018 | 2017 | ||||||||||
Tangible common equity ratio and tangible book value per common share non-GAAP reconciliation: | (dollars in thousands) | |||||||||||
Shareholders' equity (numerator A) | $ | 1,981,395 | $ | 1,964,881 | $ | 1,328,428 | ||||||
Adjustments to arrive at tangible common equity: | ||||||||||||
Goodwill | (765,842) | (765,842) | (382,762) | |||||||||
Other intangible assets, net | (48,827) | (51,897) | (13,845) | |||||||||
Tangible common equity (numerator B) | $ | 1,166,726 | $ | 1,147,142 | $ | 931,821 | ||||||
Total assets (denominator A) | $ | 12,956,596 | $ | 12,628,586 | $ | 9,814,578 | ||||||
Adjustments to arrive at tangible assets: | ||||||||||||
Goodwill | (765,842) | (765,842) | (382,762) | |||||||||
Other intangible assets, net | (48,827) | (51,897) | (13,845) | |||||||||
Tangible assets (denominator B) | $ | 12,141,927 | $ | 11,810,847 | $ | 9,417,971 | ||||||
Shareholders' equity to total assets (numerator A/denominator A) | 15.29 | % | 15.56 | % | 13.54 | % | ||||||
Tangible common shareholders' equity to tangible assets (numerator B/denominator B) | 9.61 | % | 9.71 | % | 9.89 | % | ||||||
Common shares outstanding (denominator C) | 73,260 | 73,245 | 58,376 | |||||||||
Book value per common share (numerator A/denominator C) | $ | 27.05 | $ | 26.83 | $ | 22.76 | ||||||
Tangible book value per common share (numerator B/denominator C) | $ | 15.93 | $ | 15.66 | $ | 15.96 | ||||||
Non-GAAP Financial Measures - Continued
The Company also considers its return on average tangible common equity ratio to be a useful measurement as it evaluates the Company's ongoing ability to generate returns for its common shareholders. By removing the impact of intangible assets and their related amortization and tax effects, the performance of the business can be evaluated, whether acquired or developed internally. Despite the usefulness of this ratio to the Company, there is not a standardized definition for it, and, as a result, the Company's calculation may not always be comparable with other organizations. The Company encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure.
The following tables reconcile the Company's calculation of the return on average tangible common shareholders' equity ratio:
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2018 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
Return on average tangible common equity non-GAAP reconciliation: | (dollars in thousands) | |||||||||||||||||||
Net income (numerator A) | $ | 46,415 | $ | 41,749 | $ | 40,769 | $ | 128,134 | $ | 97,100 | ||||||||||
Adjustments to arrive at tangible income applicable to common shareholders: | ||||||||||||||||||||
Amortization of intangibles | 3,070 | 3,088 | 1,188 | 9,346 | 3,786 | |||||||||||||||
Tax effect on intangible amortization | (645) | (649) | (416) | (1,963) | (1,325) | |||||||||||||||
Tangible income applicable to common shareholders (numerator B) | $ | 48,840 | $ | 44,188 | $ | 41,541 | 135,517 | $ | 99,561 | |||||||||||
Average shareholders' equity (denominator A) | $ | 1,983,317 | $ | 1,954,552 | $ | 1,323,794 | 1,962,506 | $ | 1,293,898 | |||||||||||
Adjustments to arrive at average tangible common equity: | ||||||||||||||||||||
Average preferred equity | — | — | — | — | (89) | |||||||||||||||
Average intangibles | (816,128) | (819,211) | (397,160) | (819,215) | (398,397) | |||||||||||||||
Average tangible common equity (denominator B) | $ | 1,167,189 | $ | 1,135,341 | $ | 926,634 | $ | 1,143,291 | $ | 895,412 | ||||||||||
Return on average common equity (numerator A/denominator A) (1) | 9.36 | % | 8.54 | % | 12.32 | % | 8.71 | % | 10.01 | % | ||||||||||
Return on average tangible common equity (numerator B/denominator B) (2) | 16.74 | % | 15.57 | % | 17.93 | % | 15.80 | % | 14.83 | % | ||||||||||
__________ | |
(1) | For the purpose of this ratio, interim net income has been annualized. |
(2) | For the purpose of this ratio, interim tangible income applicable to common shareholders has been annualized. |
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SOURCE Columbia Banking System, Inc.