Washington | 0-20288 | 91-1422237 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
1301 A Street Tacoma, WA | 98402 | |||
(Address of principal executive offices) | (Zip Code) |
¬ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¬ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¬ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¬ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1 | Press Release dated July 28, 2016 reporting the financial results of Columbia Banking System, Inc. for the quarter ended June 30, 2016. |
99.2 | Press Release dated July 28, 2016 announcing a regular quarterly dividend and a special cash dividend. |
COLUMBIA BANKING SYSTEM, INC. | |||||
Date: | July 28, 2016 | /s/ MELANIE J. DRESSEL | |||
Melanie J. Dressel | |||||
President and Chief Executive Officer |
99.1 | Press Release dated July 28, 2016 reporting the financial results of Columbia Banking System, Inc. for the quarter ended June 30, 2016. |
99.2 | Press Release dated July 28, 2016 announcing a regular quarterly dividend and a special cash dividend. |
• | Net income of $25.4 million with diluted earnings per common share of $0.44 |
• | New loan production for the quarter of $337.8 million, resulting in solid loan growth of $229.9 million, or 16% annualized |
• | Nonperforming assets to period end assets ratio improves to 0.36%, lowest in 8 years |
• | Efficiency ratio for the quarter improves to less than 60% |
• | Named one of “Washington’s Best Workplaces” 2016 by the Puget Sound Business Journal |
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Adjustments reflected in income | ||||||||||||||||||||
Amortization, net | $ | (883 | ) | $ | (1,332 | ) | $ | (1,376 | ) | (2,215 | ) | (3,670 | ) | |||||||
Loan impairment | (20 | ) | 147 | 1 | 127 | 1,532 | ||||||||||||||
Sale of other real estate | (24 | ) | 144 | (208 | ) | 120 | (627 | ) | ||||||||||||
Write-downs of other real estate | (40 | ) | 18 | 52 | (22 | ) | 1,124 | |||||||||||||
Other | (23 | ) | (80 | ) | 37 | (103 | ) | 297 | ||||||||||||
Change in FDIC loss-sharing asset | $ | (990 | ) | $ | (1,103 | ) | $ | (1,494 | ) | $ | (2,093 | ) | $ | (1,344 | ) |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | June 30, | June 30, | ||||||||||||||||||||||
2016 | 2016 | 2015 | 2015 | 2015 | 2016 | 2015 | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||
Incremental accretion income due to: | ||||||||||||||||||||||||||||
FDIC purchased credit impaired loans | $ | 1,300 | $ | 1,657 | $ | 2,200 | $ | 2,082 | $ | 2,367 | $ | 2,957 | $ | 4,814 | ||||||||||||||
Other FDIC acquired loans (2) | — | — | 68 | 34 | 15 | — | 132 | |||||||||||||||||||||
Other acquired loans | 3,074 | 3,073 | 3,746 | 4,293 | 4,889 | 6,147 | 9,823 | |||||||||||||||||||||
Incremental accretion income | $ | 4,374 | $ | 4,730 | $ | 6,014 | $ | 6,409 | $ | 7,271 | $ | 9,104 | $ | 14,769 | ||||||||||||||
Net interest margin (tax equivalent) | 4.10 | % | 4.13 | % | 4.25 | % | 4.37 | % | 4.41 | % | 4.12 | % | 4.40 | % | ||||||||||||||
Operating net interest margin (tax equivalent) (1) | 4.00 | % | 4.03 | % | 4.09 | % | 4.18 | % | 4.17 | % | 4.01 | % | 4.18 | % |
June 30, 2016 | March 31, 2016 | December 31, 2015 | ||||||||||
(in thousands) | ||||||||||||
Nonaccrual loans: | ||||||||||||
Commercial business | $ | 9,548 | $ | 22,559 | $ | 9,437 | ||||||
Real estate: | ||||||||||||
One-to-four family residential | 957 | 730 | 820 | |||||||||
Commercial and multifamily residential | 7,834 | 8,117 | 9,513 | |||||||||
Total real estate | 8,791 | 8,847 | 10,333 | |||||||||
Real estate construction: | ||||||||||||
One-to-four family residential | 562 | 768 | 928 | |||||||||
Total real estate construction | 562 | 768 | 928 | |||||||||
Consumer | 4,014 | 4,717 | 766 | |||||||||
Total nonaccrual loans | 22,915 | 36,891 | 21,464 | |||||||||
Other real estate owned and other personal property owned | 10,613 | 12,427 | 13,738 | |||||||||
Total nonperforming assets | $ | 33,528 | $ | 49,318 | $ | 35,202 |
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, 2016 | March 31, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Beginning balance | $ | 69,264 | $ | 68,172 | $ | 70,234 | $ | 68,172 | $ | 69,569 | ||||||||||
Charge-offs: | ||||||||||||||||||||
Commercial business | (2,941 | ) | (3,773 | ) | (2,086 | ) | (6,714 | ) | (3,512 | ) | ||||||||||
One-to-four family residential real estate | (35 | ) | — | (289 | ) | (35 | ) | (297 | ) | |||||||||||
Commercial and multifamily residential real estate | (26 | ) | — | (43 | ) | (26 | ) | (43 | ) | |||||||||||
Consumer | (334 | ) | (266 | ) | (319 | ) | (600 | ) | (1,210 | ) | ||||||||||
Purchased credit impaired | (2,898 | ) | (2,866 | ) | (2,876 | ) | (5,764 | ) | (6,976 | ) | ||||||||||
Total charge-offs | (6,234 | ) | (6,905 | ) | (5,613 | ) | (13,139 | ) | (12,038 | ) | ||||||||||
Recoveries: | ||||||||||||||||||||
Commercial business | 753 | 662 | 209 | 1,415 | 827 | |||||||||||||||
One-to-four family residential real estate | 20 | 41 | 15 | 61 | 27 | |||||||||||||||
Commercial and multifamily residential real estate | 130 | 69 | 20 | 199 | 3,281 | |||||||||||||||
One-to-four family residential real estate construction | 5 | 254 | 8 | 259 | 36 | |||||||||||||||
Commercial and multifamily residential real estate construction | 1 | 1 | 2 | 2 | 5 | |||||||||||||||
Consumer | 201 | 165 | 137 | 366 | 410 | |||||||||||||||
Purchased credit impaired | 1,524 | 1,551 | 2,043 | 3,075 | 3,729 | |||||||||||||||
Total recoveries | 2,634 | 2,743 | 2,434 | 5,377 | 8,315 | |||||||||||||||
Net charge-offs | (3,600 | ) | (4,162 | ) | (3,179 | ) | (7,762 | ) | (3,723 | ) | ||||||||||
Provision for loan and lease losses | 3,640 | 5,254 | 2,202 | 8,894 | 3,411 | |||||||||||||||
Ending balance | $ | 69,304 | $ | 69,264 | $ | 69,257 | $ | 69,304 | $ | 69,257 |
FDIC Acquired Loan Accounting | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, 2016 | March 31, 2016 | June 30, 2015 | June 30, 2016 | June 30, 2015 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Incremental accretion income on FDIC purchased credit impaired loans | $ | 1,300 | $ | 1,657 | $ | 2,367 | $ | 2,957 | $ | 4,814 | ||||||||||
Incremental accretion income on other FDIC acquired loans (1) | — | — | 15 | — | 132 | |||||||||||||||
Provision for losses on FDIC purchased credit impaired loans | (91 | ) | (653 | ) | (476 | ) | (744 | ) | (3,085 | ) | ||||||||||
Change in FDIC loss-sharing asset | (990 | ) | (1,103 | ) | (1,494 | ) | (2,093 | ) | (1,344 | ) | ||||||||||
FDIC clawback liability recovery (expense) | (70 | ) | (209 | ) | 30 | (279 | ) | 7 | ||||||||||||
Pre-tax earnings impact | $ | 149 | $ | (308 | ) | $ | 442 | $ | (159 | ) | $ | 524 |
FINANCIAL STATISTICS | ||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | Six Months Ended | ||||||||||||||||||
Unaudited | June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
Earnings | (dollars in thousands except per share amounts) | |||||||||||||||||||
Net interest income | $ | 82,140 | $ | 80,170 | $ | 81,010 | $ | 162,310 | $ | 161,374 | ||||||||||
Provision for loan and lease losses | $ | 3,640 | $ | 5,254 | $ | 2,202 | $ | 8,894 | $ | 3,411 | ||||||||||
Noninterest income | $ | 21,940 | $ | 20,646 | $ | 21,462 | $ | 42,586 | $ | 44,229 | ||||||||||
Noninterest expense | $ | 63,790 | $ | 65,074 | $ | 68,471 | $ | 128,864 | $ | 135,205 | ||||||||||
Acquisition-related expense (included in noninterest expense) | $ | — | $ | 2,436 | $ | 5,643 | $ | 2,436 | $ | 8,617 | ||||||||||
Net income | $ | 25,405 | $ | 21,259 | $ | 21,946 | $ | 46,664 | $ | 46,307 | ||||||||||
Per Common Share | ||||||||||||||||||||
Earnings (basic) | $ | 0.44 | $ | 0.37 | $ | 0.38 | $ | 0.80 | $ | 0.80 | ||||||||||
Earnings (diluted) | $ | 0.44 | $ | 0.37 | $ | 0.38 | $ | 0.80 | $ | 0.80 | ||||||||||
Book value | $ | 21.93 | $ | 21.70 | $ | 21.38 | $ | 21.93 | $ | 21.38 | ||||||||||
Averages | ||||||||||||||||||||
Total assets | $ | 9,230,791 | $ | 8,949,212 | $ | 8,532,173 | $ | 9,090,001 | $ | 8,519,047 | ||||||||||
Interest-earning assets | $ | 8,285,183 | $ | 8,005,945 | $ | 7,560,288 | $ | 8,145,564 | $ | 7,544,750 | ||||||||||
Loans | $ | 5,999,428 | $ | 5,827,440 | $ | 5,542,489 | $ | 5,913,434 | $ | 5,479,067 | ||||||||||
Securities, including Federal Home Loan Bank stock | $ | 2,262,012 | $ | 2,147,457 | $ | 1,976,959 | $ | 2,204,734 | $ | 2,022,629 | ||||||||||
Deposits | $ | 7,622,266 | $ | 7,445,693 | $ | 6,978,472 | $ | 7,533,980 | $ | 6,953,254 | ||||||||||
Interest-bearing deposits | $ | 4,026,384 | $ | 3,983,314 | $ | 3,753,101 | $ | 4,004,849 | $ | 3,954,179 | ||||||||||
Interest-bearing liabilities | $ | 4,264,792 | $ | 4,124,582 | $ | 3,961,013 | $ | 4,194,687 | $ | 4,177,057 | ||||||||||
Noninterest-bearing deposits | $ | 3,595,882 | $ | 3,462,379 | $ | 3,225,371 | $ | 3,529,131 | $ | 2,999,075 | ||||||||||
Shareholders' equity | $ | 1,267,670 | $ | 1,258,411 | $ | 1,247,887 | $ | 1,263,040 | $ | 1,244,389 | ||||||||||
Financial Ratios | ||||||||||||||||||||
Return on average assets | 1.10 | % | 0.95 | % | 1.03 | % | 1.03 | % | 1.09 | % | ||||||||||
Return on average common equity | 8.02 | % | 6.76 | % | 7.04 | % | 7.39 | % | 7.45 | % | ||||||||||
Average equity to average assets | 13.73 | % | 14.06 | % | 14.63 | % | 13.89 | % | 14.61 | % | ||||||||||
Net interest margin (tax equivalent) | 4.10 | % | 4.13 | % | 4.41 | % | 4.12 | % | 4.40 | % | ||||||||||
Efficiency ratio (tax equivalent) (1) | 59.30 | % | 62.63 | % | 64.96 | % | 60.93 | % | 63.95 | % | ||||||||||
Operating efficiency ratio (tax equivalent) (2) | 58.81 | % | 59.43 | % | 60.78 | % | 59.12 | % | 61.90 | % | ||||||||||
June 30, | March 31, | December 31, | ||||||||||||||||||
Period end | 2016 | 2016 | 2015 | |||||||||||||||||
Total assets | $ | 9,353,651 | $ | 9,035,932 | 8,951,697 | |||||||||||||||
Loans, net of unearned income | $ | 6,107,143 | $ | 5,877,283 | 5,815,027 | |||||||||||||||
Allowance for loan and lease losses | $ | 69,304 | $ | 69,264 | 68,172 | |||||||||||||||
Securities, including Federal Home Loan Bank stock | $ | 2,297,713 | $ | 2,196,407 | 2,170,416 | |||||||||||||||
Deposits | $ | 7,673,213 | $ | 7,596,949 | 7,438,829 | |||||||||||||||
Core deposits | $ | 7,447,963 | $ | 7,384,622 | 7,238,713 | |||||||||||||||
Shareholders' equity | $ | 1,274,479 | $ | 1,260,788 | 1,242,128 | |||||||||||||||
Nonperforming assets | ||||||||||||||||||||
Nonaccrual loans | $ | 22,915 | $ | 36,891 | 21,464 | |||||||||||||||
Other real estate owned ("OREO") and other personal property owned ("OPPO") | 10,613 | 12,427 | 13,738 | |||||||||||||||||
Total nonperforming assets | $ | 33,528 | $ | 49,318 | $ | 35,202 | ||||||||||||||
Nonperforming loans to period-end loans | 0.38 | % | 0.63 | % | 0.37 | % | ||||||||||||||
Nonperforming assets to period-end assets | 0.36 | % | 0.55 | % | 0.39 | % | ||||||||||||||
Allowance for loan and lease losses to period-end loans | 1.13 | % | 1.18 | % | 1.17 | % | ||||||||||||||
Net loan charge-offs | $ | 3,600 | (3) | $ | 4,162 | (4) | $ | 3,226 | (5) | |||||||||||
(1) Noninterest expense divided by the sum of net interest income on a tax equivalent basis and noninterest income on a tax equivalent basis. | ||||||||||||||||||||
(2) The operating efficiency ratio (tax equivalent) is a non-GAAP financial measure. See section titled "Non-GAAP Financial Measures" on the last pages of this earnings release for the reconciliation of the operating efficiency ratio (tax equivalent) to the efficiency ratio (tax equivalent). | ||||||||||||||||||||
(3) For the three months ended June 30, 2016. | ||||||||||||||||||||
(4) For the three months ended March 31, 2016. | ||||||||||||||||||||
(5) For the three months ended December 31, 2015. |
QUARTERLY FINANCIAL STATISTICS | ||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | |||||||||||||||||||
Unaudited | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
2016 | 2016 | 2015 | 2015 | 2015 | ||||||||||||||||
(dollars in thousands except per share) | ||||||||||||||||||||
Earnings | ||||||||||||||||||||
Net interest income | $ | 82,140 | $ | 80,170 | $ | 81,819 | $ | 81,694 | $ | 81,010 | ||||||||||
Provision for loan and lease losses | $ | 3,640 | $ | 5,254 | $ | 2,349 | $ | 2,831 | $ | 2,202 | ||||||||||
Noninterest income | $ | 21,940 | $ | 20,646 | $ | 24,745 | $ | 22,499 | $ | 21,462 | ||||||||||
Noninterest expense | $ | 63,790 | $ | 65,074 | $ | 66,877 | $ | 64,067 | $ | 68,471 | ||||||||||
Acquisition-related expense (included in noninterest expense) | $ | — | $ | 2,436 | $ | 1,872 | $ | 428 | $ | 5,643 | ||||||||||
Net income | $ | 25,405 | $ | 21,259 | $ | 26,740 | $ | 25,780 | $ | 21,946 | ||||||||||
Per Common Share | ||||||||||||||||||||
Earnings (basic) | $ | 0.44 | $ | 0.37 | $ | 0.46 | $ | 0.45 | $ | 0.38 | ||||||||||
Earnings (diluted) | $ | 0.44 | $ | 0.37 | $ | 0.46 | $ | 0.45 | $ | 0.38 | ||||||||||
Book value | $ | 21.93 | $ | 21.70 | $ | 21.48 | $ | 21.69 | $ | 21.38 | ||||||||||
Averages | ||||||||||||||||||||
Total assets | $ | 9,230,791 | $ | 8,949,212 | $ | 8,905,743 | $ | 8,672,692 | $ | 8,532,173 | ||||||||||
Interest-earning assets | $ | 8,285,183 | $ | 8,005,945 | $ | 7,937,308 | $ | 7,711,531 | $ | 7,560,288 | ||||||||||
Loans | $ | 5,999,428 | $ | 5,827,440 | $ | 5,762,048 | $ | 5,712,614 | $ | 5,542,489 | ||||||||||
Securities, including Federal Home Loan Bank stock | $ | 2,262,012 | $ | 2,147,457 | $ | 2,136,703 | $ | 1,945,174 | $ | 1,976,959 | ||||||||||
Deposits | $ | 7,622,266 | $ | 7,445,693 | $ | 7,440,628 | $ | 7,233,863 | $ | 6,978,472 | ||||||||||
Interest-bearing deposits | $ | 4,026,384 | $ | 3,983,314 | $ | 3,933,001 | $ | 3,910,695 | $ | 3,753,101 | ||||||||||
Interest-bearing liabilities | $ | 4,264,792 | $ | 4,124,582 | $ | 4,031,214 | $ | 4,007,198 | $ | 3,961,013 | ||||||||||
Noninterest-bearing deposits | $ | 3,595,882 | $ | 3,462,379 | $ | 3,507,627 | $ | 3,323,168 | $ | 3,225,371 | ||||||||||
Shareholders' equity | $ | 1,267,670 | $ | 1,258,411 | $ | 1,259,117 | $ | 1,239,830 | $ | 1,247,887 | ||||||||||
Financial Ratios | ||||||||||||||||||||
Return on average assets | 1.10 | % | 0.95 | % | 1.20 | % | 1.19 | % | 1.03 | % | ||||||||||
Return on average common equity | 8.02 | % | 6.76 | % | 8.50 | % | 8.32 | % | 7.04 | % | ||||||||||
Average equity to average assets | 13.73 | % | 14.06 | % | 14.14 | % | 14.30 | % | 14.63 | % | ||||||||||
Net interest margin (tax equivalent) | 4.10 | % | 4.13 | % | 4.25 | % | 4.37 | % | 4.41 | % | ||||||||||
Period end | ||||||||||||||||||||
Total assets | $ | 9,353,651 | $ | 9,035,932 | $ | 8,951,697 | $ | 8,755,984 | $ | 8,518,019 | ||||||||||
Loans, net of unearned income | $ | 6,107,143 | $ | 5,877,283 | $ | 5,815,027 | $ | 5,746,511 | $ | 5,611,897 | ||||||||||
Allowance for loan and lease losses | $ | 69,304 | $ | 69,264 | $ | 68,172 | $ | 69,049 | $ | 69,257 | ||||||||||
Securities, including Federal Home Loan Bank stock | $ | 2,297,713 | $ | 2,196,407 | $ | 2,170,416 | $ | 2,037,666 | $ | 1,926,248 | ||||||||||
Deposits | $ | 7,673,213 | $ | 7,596,949 | $ | 7,438,829 | $ | 7,314,805 | $ | 7,044,373 | ||||||||||
Core deposits | $ | 7,447,963 | $ | 7,384,622 | $ | 7,238,713 | $ | 7,104,554 | $ | 6,862,970 | ||||||||||
Shareholders' equity | $ | 1,274,479 | $ | 1,260,788 | $ | 1,242,128 | $ | 1,254,136 | $ | 1,236,214 | ||||||||||
Nonperforming, assets | ||||||||||||||||||||
Nonaccrual loans | $ | 22,915 | $ | 36,891 | $ | 21,464 | $ | 19,080 | $ | 25,746 | ||||||||||
OREO and OPPO | 10,613 | 12,427 | 13,738 | 19,475 | 20,665 | |||||||||||||||
Total nonperforming assets | $ | 33,528 | $ | 49,318 | $ | 35,202 | $ | 38,555 | $ | 46,411 | ||||||||||
Nonperforming loans to period-end loans | 0.38 | % | 0.63 | % | 0.37 | % | 0.33 | % | 0.46 | % | ||||||||||
Nonperforming assets to period-end assets | 0.36 | % | 0.55 | % | 0.39 | % | 0.44 | % | 0.54 | % | ||||||||||
Allowance for loan and lease losses to period-end loans | 1.13 | % | 1.18 | % | 1.17 | % | 1.20 | % | 1.23 | % | ||||||||||
Net loan charge-offs | $ | 3,600 | $ | 4,162 | $ | 3,226 | $ | 3,039 | $ | 3,179 |
LOAN PORTFOLIO COMPOSITION | ||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||
Unaudited | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
2016 | 2016 | 2015 | 2015 | 2015 | ||||||||||||||||
Loan Portfolio Composition - Dollars | (dollars in thousands) | |||||||||||||||||||
Commercial business | $ | 2,518,682 | $ | 2,401,193 | $ | 2,362,575 | $ | 2,354,731 | $ | 2,255,468 | ||||||||||
Real estate: | ||||||||||||||||||||
One-to-four family residential | 172,957 | 175,050 | 176,295 | 177,108 | 181,849 | |||||||||||||||
Commercial and multifamily residential | 2,651,476 | 2,520,352 | 2,491,736 | 2,449,847 | 2,406,594 | |||||||||||||||
Total real estate | 2,824,433 | 2,695,402 | 2,668,031 | 2,626,955 | 2,588,443 | |||||||||||||||
Real estate construction: | ||||||||||||||||||||
One-to-four family residential | 129,195 | 133,447 | 135,874 | 136,783 | 127,311 | |||||||||||||||
Commercial and multifamily residential | 185,315 | 183,548 | 167,413 | 134,097 | 129,302 | |||||||||||||||
Total real estate construction | 314,510 | 316,995 | 303,287 | 270,880 | 256,613 | |||||||||||||||
Consumer | 325,632 | 329,902 | 342,601 | 348,315 | 358,365 | |||||||||||||||
Purchased credit impaired | 161,107 | 173,201 | 180,906 | 191,066 | 202,367 | |||||||||||||||
Subtotal loans | 6,144,364 | 5,916,693 | 5,857,400 | 5,791,947 | 5,661,256 | |||||||||||||||
Less: Net unearned income | (37,221 | ) | (39,410 | ) | (42,373 | ) | (45,436 | ) | (49,359 | ) | ||||||||||
Loans, net of unearned income | 6,107,143 | 5,877,283 | 5,815,027 | 5,746,511 | 5,611,897 | |||||||||||||||
Less: Allowance for loan and lease losses | (69,304 | ) | (69,264 | ) | (68,172 | ) | (69,049 | ) | (69,257 | ) | ||||||||||
Total loans, net | 6,037,839 | 5,808,019 | 5,746,855 | 5,677,462 | 5,542,640 | |||||||||||||||
Loans held for sale | $ | 7,649 | $ | 3,681 | $ | 4,509 | $ | 6,637 | $ | 4,220 |
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
Loan Portfolio Composition - Percentages | 2016 | 2016 | 2015 | 2015 | 2015 | ||||||||||
Commercial business | 41.2 | % | 40.9 | % | 40.6 | % | 41.0 | % | 40.2 | % | |||||
Real estate: | |||||||||||||||
One-to-four family residential | 2.8 | % | 3.0 | % | 3.0 | % | 3.1 | % | 3.2 | % | |||||
Commercial and multifamily residential | 43.6 | % | 42.9 | % | 42.9 | % | 42.6 | % | 42.9 | % | |||||
Total real estate | 46.4 | % | 45.9 | % | 45.9 | % | 45.7 | % | 46.1 | % | |||||
Real estate construction: | |||||||||||||||
One-to-four family residential | 2.1 | % | 2.3 | % | 2.3 | % | 2.4 | % | 2.3 | % | |||||
Commercial and multifamily residential | 3.0 | % | 3.1 | % | 2.9 | % | 2.3 | % | 2.3 | % | |||||
Total real estate construction | 5.1 | % | 5.4 | % | 5.2 | % | 4.7 | % | 4.6 | % | |||||
Consumer | 5.3 | % | 5.6 | % | 5.9 | % | 6.1 | % | 6.4 | % | |||||
Purchased credit impaired | 2.6 | % | 2.9 | % | 3.1 | % | 3.3 | % | 3.6 | % | |||||
Subtotal loans | 100.6 | % | 100.7 | % | 100.7 | % | 100.8 | % | 100.9 | % | |||||
Less: Net unearned income | (0.6 | )% | (0.7 | )% | (0.7 | )% | (0.8 | )% | (0.9 | )% | |||||
Loans, net of unearned income | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
DEPOSIT COMPOSITION | ||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
2016 | 2016 (1) | 2015 (1) | 2015 (1) | 2015 (1) | ||||||||||||||||
Deposit Composition - Dollars | (dollars in thousands) | |||||||||||||||||||
Core deposits: | ||||||||||||||||||||
Demand and other non-interest bearing | $ | 3,652,951 | $ | 3,553,468 | $ | 3,507,358 | $ | 3,386,968 | $ | 3,207,538 | ||||||||||
Interest bearing demand | 957,548 | 958,469 | 925,909 | 911,686 | 912,637 | |||||||||||||||
Money market | 1,818,337 | 1,838,364 | 1,788,552 | 1,776,087 | 1,718,000 | |||||||||||||||
Savings | 692,694 | 695,588 | 657,016 | 651,695 | 630,897 | |||||||||||||||
Certificates of deposit, less than $250,000 (1) | 326,433 | 338,733 | 359,878 | 378,118 | 393,898 | |||||||||||||||
Total core deposits | 7,447,963 | 7,384,622 | 7,238,713 | 7,104,554 | 6,862,970 | |||||||||||||||
Certificates of deposit, $250,000 or more (1) | 72,812 | 70,571 | 72,126 | 65,699 | 69,448 | |||||||||||||||
Certificates of deposit insured by CDARS® | 22,755 | 24,752 | 26,901 | 26,975 | 18,357 | |||||||||||||||
Brokered money market accounts | 129,590 | 116,878 | 100,854 | 117,196 | 93,061 | |||||||||||||||
Subtotal | 7,673,120 | 7,596,823 | 7,438,594 | 7,314,424 | 7,043,836 | |||||||||||||||
Premium resulting from acquisition date fair value adjustment | 93 | 126 | 235 | 381 | 537 | |||||||||||||||
Total deposits | $ | 7,673,213 | $ | 7,596,949 | $ | 7,438,829 | $ | 7,314,805 | $ | 7,044,373 |
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
Deposit Composition - Percentages | 2016 | 2016 | 2015 | 2015 | 2015 | ||||||||||
Core deposits: | |||||||||||||||
Demand and other non-interest bearing | 47.6 | % | 46.8 | % | 47.2 | % | 46.3 | % | 45.5 | % | |||||
Interest bearing demand | 12.5 | % | 12.6 | % | 12.4 | % | 12.5 | % | 13.0 | % | |||||
Money market | 23.7 | % | 24.2 | % | 24.0 | % | 24.3 | % | 24.4 | % | |||||
Savings | 9.0 | % | 9.2 | % | 8.8 | % | 8.9 | % | 9.0 | % | |||||
Certificates of deposit, less than $250,000 (1) | 4.3 | % | 4.5 | % | 4.8 | % | 5.2 | % | 5.6 | % | |||||
Total core deposits | 97.1 | % | 97.3 | % | 97.2 | % | 97.2 | % | 97.5 | % | |||||
Certificates of deposit, $250,000 or more (1) | 0.9 | % | 0.9 | % | 1.0 | % | 0.8 | % | 0.9 | % | |||||
Certificates of deposit insured by CDARS® | 0.3 | % | 0.3 | % | 0.4 | % | 0.4 | % | 0.3 | % | |||||
Brokered money market accounts | 1.7 | % | 1.5 | % | 1.4 | % | 1.6 | % | 1.3 | % | |||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||
Columbia Banking System, Inc. | Three Months Ended | Six Months Ended | ||||||||||||||||||
Unaudited | June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
2016 | 2016 | 2015 (1) | 2016 | 2015 (1) | ||||||||||||||||
(in thousands except per share) | ||||||||||||||||||||
Interest Income | ||||||||||||||||||||
Loans | $ | 71,651 | $ | 70,316 | $ | 71,744 | $ | 141,967 | $ | 142,566 | ||||||||||
Taxable securities | 8,829 | 8,017 | 7,260 | 16,846 | 14,786 | |||||||||||||||
Tax-exempt securities | 2,795 | 2,803 | 3,010 | 5,598 | 6,052 | |||||||||||||||
Deposits in banks | 28 | 38 | 26 | 66 | 53 | |||||||||||||||
Total interest income | 83,303 | 81,174 | 82,040 | 164,477 | 163,457 | |||||||||||||||
Interest Expense | ||||||||||||||||||||
Deposits | 787 | 742 | 740 | 1,529 | 1,488 | |||||||||||||||
Federal Home Loan Bank advances | 241 | 124 | 154 | 365 | 313 | |||||||||||||||
Other borrowings | 135 | 138 | 136 | 273 | 282 | |||||||||||||||
Total interest expense | 1,163 | 1,004 | 1,030 | 2,167 | 2,083 | |||||||||||||||
Net Interest Income | 82,140 | 80,170 | 81,010 | 162,310 | 161,374 | |||||||||||||||
Provision for loan and lease losses | 3,640 | 5,254 | 2,202 | 8,894 | 3,411 | |||||||||||||||
Net interest income after provision for loan and lease losses | 78,500 | 74,916 | 78,808 | 153,416 | 157,963 | |||||||||||||||
Noninterest Income | ||||||||||||||||||||
Deposit account and treasury management fees (1) | 7,093 | 6,989 | 7,351 | 14,082 | 14,211 | |||||||||||||||
Card revenue (1) | 6,051 | 5,652 | 5,702 | 11,703 | 11,065 | |||||||||||||||
Financial services and trust revenue (1) | 2,780 | 2,821 | 3,217 | 5,601 | 6,341 | |||||||||||||||
Loan revenue (1) | 2,802 | 2,262 | 2,322 | 5,064 | 4,925 | |||||||||||||||
Merchant processing revenue | 2,272 | 2,102 | 2,340 | 4,374 | 4,380 | |||||||||||||||
Bank owned life insurance | 1,270 | 1,116 | 1,206 | 2,386 | 2,284 | |||||||||||||||
Investment securities gains, net | 229 | 373 | 343 | 602 | 1,064 | |||||||||||||||
Change in FDIC loss-sharing asset | (990 | ) | (1,103 | ) | (1,494 | ) | (2,093 | ) | (1,344 | ) | ||||||||||
Other (1) | 433 | 434 | 475 | 867 | 1,303 | |||||||||||||||
Total noninterest income | 21,940 | 20,646 | 21,462 | 42,586 | 44,229 | |||||||||||||||
Noninterest Expense | ||||||||||||||||||||
Compensation and employee benefits | 37,291 | 36,319 | 38,446 | 73,610 | 77,546 | |||||||||||||||
Occupancy | 7,652 | 10,173 | 8,687 | 17,825 | 16,680 | |||||||||||||||
Merchant processing expense | 1,118 | 1,033 | 1,079 | 2,151 | 2,056 | |||||||||||||||
Advertising and promotion | 1,043 | 842 | 1,195 | 1,885 | 2,126 | |||||||||||||||
Data processing | 3,929 | 4,146 | 4,242 | 8,075 | 9,226 | |||||||||||||||
Legal and professional fees | 1,777 | 1,325 | 2,847 | 3,102 | 5,354 | |||||||||||||||
Taxes, licenses and fees | 1,298 | 1,290 | 1,427 | 2,588 | 2,659 | |||||||||||||||
Regulatory premiums | 1,068 | 1,141 | 1,321 | 2,209 | 2,542 | |||||||||||||||
Net cost (benefit) of operation of other real estate owned | 84 | 104 | (563 | ) | 188 | (1,809 | ) | |||||||||||||
Amortization of intangibles | 1,483 | 1,583 | 1,718 | 3,066 | 3,535 | |||||||||||||||
Other | 7,047 | 7,118 | 8,072 | 14,165 | 15,290 | |||||||||||||||
Total noninterest expense | 63,790 | 65,074 | 68,471 | 128,864 | 135,205 | |||||||||||||||
Income before income taxes | 36,650 | 30,488 | 31,799 | 67,138 | 66,987 | |||||||||||||||
Provision for income taxes | 11,245 | 9,229 | 9,853 | 20,474 | 20,680 | |||||||||||||||
Net Income | $ | 25,405 | $ | 21,259 | $ | 21,946 | $ | 46,664 | $ | 46,307 | ||||||||||
Earnings per common share | ||||||||||||||||||||
Basic | $ | 0.44 | $ | 0.37 | $ | 0.38 | $ | 0.80 | $ | 0.80 | ||||||||||
Diluted | $ | 0.44 | $ | 0.37 | $ | 0.38 | $ | 0.80 | $ | 0.80 | ||||||||||
Dividends paid per common share | $ | 0.37 | $ | 0.38 | $ | 0.34 | $ | 0.75 | $ | 0.64 | ||||||||||
Weighted average number of common shares outstanding | 57,185 | 57,114 | 57,055 | 57,149 | 56,999 | |||||||||||||||
Weighted average number of diluted common shares outstanding | 57,195 | 57,125 | 57,069 | 57,160 | 57,012 |
CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||
Unaudited | June 30, | March 31, | December 31, | |||||||||||||||||
2016 | 2016 | 2015 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 167,172 | $ | 150,683 | $ | 166,929 | ||||||||||||||
Interest-earning deposits with banks | 11,216 | 38,248 | 8,373 | |||||||||||||||||
Total cash and cash equivalents | 178,388 | 188,931 | 175,302 | |||||||||||||||||
Securities available for sale at fair value (amortized cost of $2,237,264, $2,156,999 and $2,157,610, respectively) | 2,279,552 | 2,186,166 | 2,157,694 | |||||||||||||||||
Federal Home Loan Bank stock at cost | 18,161 | 10,241 | 12,722 | |||||||||||||||||
Loans held for sale | 7,649 | 3,681 | 4,509 | |||||||||||||||||
Loans, net of unearned income of ($37,221), ($39,410) and ($42,373), respectively | 6,107,143 | 5,877,283 | 5,815,027 | |||||||||||||||||
Less: allowance for loan and lease losses | 69,304 | 69,264 | 68,172 | |||||||||||||||||
Loans, net | 6,037,839 | 5,808,019 | 5,746,855 | |||||||||||||||||
FDIC loss-sharing asset | 4,266 | 5,954 | 6,568 | |||||||||||||||||
Interest receivable | 29,738 | 29,304 | 27,877 | |||||||||||||||||
Premises and equipment, net | 156,446 | 158,101 | 164,239 | |||||||||||||||||
Other real estate owned | 10,613 | 12,427 | 13,738 | |||||||||||||||||
Goodwill | 382,762 | 382,762 | 382,762 | |||||||||||||||||
Other intangible assets, net | 20,511 | 21,994 | 23,577 | |||||||||||||||||
Other assets | 227,726 | 228,352 | 235,854 | |||||||||||||||||
Total assets | $ | 9,353,651 | $ | 9,035,932 | $ | 8,951,697 | ||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing | $ | 3,652,951 | $ | 3,553,468 | $ | 3,507,358 | ||||||||||||||
Interest-bearing | 4,020,262 | 4,043,481 | 3,931,471 | |||||||||||||||||
Total deposits | 7,673,213 | 7,596,949 | 7,438,829 | |||||||||||||||||
Federal Home Loan Bank advances | 204,512 | 6,521 | 68,531 | |||||||||||||||||
Securities sold under agreements to repurchase | 89,218 | 73,839 | 99,699 | |||||||||||||||||
Other liabilities | 112,229 | 97,835 | 102,510 | |||||||||||||||||
Total liabilities | 8,079,172 | 7,775,144 | 7,709,569 | |||||||||||||||||
Commitments and contingent liabilities | ||||||||||||||||||||
June 30, | March 31, | December 31, | ||||||||||||||||||
2016 | 2016 | 2015 | ||||||||||||||||||
Preferred stock (no par value) | (in thousands) | |||||||||||||||||||
Authorized shares | 2,000 | 2,000 | 2,000 | |||||||||||||||||
Issued and outstanding | 9 | 9 | 9 | 2,217 | 2,217 | 2,217 | ||||||||||||||
Common stock (no par value) | ||||||||||||||||||||
Authorized shares | 115,000 | 115,000 | 115,000 | |||||||||||||||||
Issued and outstanding | 58,025 | 58,008 | 57,724 | 992,343 | 991,026 | 990,281 | ||||||||||||||
Retained earnings | 259,108 | 255,202 | 255,925 | |||||||||||||||||
Accumulated other comprehensive income (loss) | 20,811 | 12,343 | (6,295 | ) | ||||||||||||||||
Total shareholders' equity | 1,274,479 | 1,260,788 | 1,242,128 | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 9,353,651 | $ | 9,035,932 | $ | 8,951,697 |
AVERAGE BALANCES AND RATES | ||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
June 30, 2016 | June 30, 2015 | |||||||||||||||||||||
Average Balances | Interest Earned / Paid | Average Rate | Average Balances | Interest Earned / Paid | Average Rate | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Loans, net (1)(2) | $ | 5,999,428 | $ | 72,952 | 4.86 | % | $ | 5,542,489 | $ | 72,410 | 5.23 | % | ||||||||||
Taxable securities | 1,801,195 | 8,829 | 1.96 | % | 1,516,740 | 7,260 | 1.91 | % | ||||||||||||||
Tax exempt securities (2) | 460,817 | 4,300 | 3.73 | % | 460,219 | 4,632 | 4.03 | % | ||||||||||||||
Interest-earning deposits with banks | 23,743 | 28 | 0.47 | % | 40,840 | 26 | 0.25 | % | ||||||||||||||
Total interest-earning assets | 8,285,183 | $ | 86,109 | 4.16 | % | 7,560,288 | $ | 84,328 | 4.46 | % | ||||||||||||
Other earning assets | 154,843 | 148,573 | ||||||||||||||||||||
Noninterest-earning assets | 790,765 | 823,312 | ||||||||||||||||||||
Total assets | $ | 9,230,791 | $ | 8,532,173 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||
Certificates of deposit | $ | 428,279 | $ | 140 | 0.13 | % | $ | 489,984 | $ | 236 | 0.19 | % | ||||||||||
Savings accounts | 692,179 | 18 | 0.01 | % | 626,930 | 17 | 0.01 | % | ||||||||||||||
Interest-bearing demand | 949,669 | 183 | 0.08 | % | 883,366 | 155 | 0.07 | % | ||||||||||||||
Money market accounts | 1,956,257 | 446 | 0.09 | % | 1,752,821 | 332 | 0.08 | % | ||||||||||||||
Total interest-bearing deposits | 4,026,384 | 787 | 0.08 | % | 3,753,101 | 740 | 0.08 | % | ||||||||||||||
Federal Home Loan Bank advances | 161,637 | 241 | 0.60 | % | 121,828 | 154 | 0.51 | % | ||||||||||||||
Other borrowings | 76,771 | 135 | 0.70 | % | 86,084 | 136 | 0.63 | % | ||||||||||||||
Total interest-bearing liabilities | 4,264,792 | $ | 1,163 | 0.11 | % | 3,961,013 | $ | 1,030 | 0.10 | % | ||||||||||||
Noninterest-bearing deposits | 3,595,882 | 3,225,371 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 102,447 | 97,902 | ||||||||||||||||||||
Shareholders’ equity | 1,267,670 | 1,247,887 | ||||||||||||||||||||
Total liabilities & shareholders’ equity | $ | 9,230,791 | $ | 8,532,173 | ||||||||||||||||||
Net interest income (tax equivalent) | $ | 84,946 | $ | 83,298 | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.10 | % | 4.41 | % |
(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 $1.2 million and $1.5 million for the three month periods ended June 30, 2016 and June 30, 2015, respectively. The incremental accretion on acquired loans was $4.4 million and $7.3 million for the three months ended June 30, 2016 and 2015, respectively. |
(2) | Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was $1.3 million and $666 thousand for the three months ended June 30, 2016 and 2015, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.5 million and $1.6 million for the three months ended June 30, 2016 and 2015, respectively. |
AVERAGE BALANCES AND RATES | ||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||
June 30, 2016 | March 31, 2016 | |||||||||||||||||||||
Average Balances | Interest Earned / Paid | Average Rate | Average Balances | Interest Earned / Paid | Average Rate | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Loans, net (1)(2) | $ | 5,999,428 | $ | 72,952 | 4.86 | % | $ | 5,827,440 | $ | 71,298 | 4.89 | % | ||||||||||
Taxable securities | 1,801,195 | 8,829 | 1.96 | % | 1,689,289 | 8,017 | 1.90 | % | ||||||||||||||
Tax exempt securities (2) | 460,817 | 4,300 | 3.73 | % | 458,168 | 4,312 | 3.76 | % | ||||||||||||||
Interest-earning deposits with banks | 23,743 | 28 | 0.47 | % | 31,048 | 38 | 0.49 | % | ||||||||||||||
Total interest-earning assets | 8,285,183 | $ | 86,109 | 4.16 | % | 8,005,945 | $ | 83,665 | 4.18 | % | ||||||||||||
Other earning assets | 154,843 | 154,336 | ||||||||||||||||||||
Noninterest-earning assets | 790,765 | 788,931 | ||||||||||||||||||||
Total assets | $ | 9,230,791 | $ | 8,949,212 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||
Certificates of deposit | $ | 428,279 | $ | 140 | 0.13 | % | $ | 448,915 | $ | 144 | 0.13 | % | ||||||||||
Savings accounts | 692,179 | 18 | 0.01 | % | 675,876 | 17 | 0.01 | % | ||||||||||||||
Interest-bearing demand | 949,669 | 183 | 0.08 | % | 927,948 | 169 | 0.07 | % | ||||||||||||||
Money market accounts | 1,956,257 | 446 | 0.09 | % | 1,930,575 | 412 | 0.09 | % | ||||||||||||||
Total interest-bearing deposits | 4,026,384 | 787 | 0.08 | % | 3,983,314 | 742 | 0.07 | % | ||||||||||||||
Federal Home Loan Bank advances | 161,637 | 241 | 0.60 | % | 50,569 | 124 | 0.98 | % | ||||||||||||||
Other borrowings | 76,771 | 135 | 0.70 | % | 90,699 | 138 | 0.61 | % | ||||||||||||||
Total interest-bearing liabilities | 4,264,792 | $ | 1,163 | 0.11 | % | 4,124,582 | $ | 1,004 | 0.10 | % | ||||||||||||
Noninterest-bearing deposits | 3,595,882 | 3,462,379 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 102,447 | 103,840 | ||||||||||||||||||||
Shareholders’ equity | 1,267,670 | 1,258,411 | ||||||||||||||||||||
Total liabilities & shareholders’ equity | $ | 9,230,791 | $ | 8,949,212 | ||||||||||||||||||
Net interest income (tax equivalent) | $ | 84,946 | $ | 82,661 | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.10 | % | 4.13 | % |
(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 $1.2 million and $1.1 million for the three month periods ended June 30, 2016 and March 31, 2016. The incremental accretion on acquired loans was $4.4 million and $4.7 million for the three months ended June 30, 2016 and March 31, 2016, respectively. |
(2) | Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was $1.3 million and $982 thousand for the three months ended June 30, 2016 and March 31, 2016, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.5 million for both three month periods ended June 30, 2016 and March 31, 2016. |
AVERAGE BALANCES AND RATES | ||||||||||||||||||||||
Columbia Banking System, Inc. | ||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||
Six Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||
Average Balances | Interest Earned / Paid | Average Rate | Average Balances | Interest Earned / Paid | Average Rate | |||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||
Loans, net (1)(2) | $ | 5,913,434 | $ | 144,250 | 4.88 | % | $ | 5,479,067 | $ | 143,897 | 5.25 | % | ||||||||||
Taxable securities | 1,745,242 | 16,846 | 1.93 | % | 1,562,776 | 14,786 | 1.89 | % | ||||||||||||||
Tax exempt securities (2) | 459,492 | 8,612 | 3.75 | % | 459,853 | 9,311 | 4.05 | % | ||||||||||||||
Interest-earning deposits with banks | 27,396 | 66 | 0.48 | % | 43,054 | 53 | 0.25 | % | ||||||||||||||
Total interest-earning assets | 8,145,564 | $ | 169,774 | 4.17 | % | 7,544,750 | $ | 168,047 | 4.45 | % | ||||||||||||
Other earning assets | 154,589 | 147,321 | ||||||||||||||||||||
Noninterest-earning assets | 789,848 | 826,976 | ||||||||||||||||||||
Total assets | $ | 9,090,001 | $ | 8,519,047 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||
Certificates of deposit | $ | 438,597 | $ | 284 | 0.13 | % | $ | 496,101 | $ | 476 | 0.19 | % | ||||||||||
Savings accounts | 684,027 | 35 | 0.01 | % | 626,036 | 36 | 0.01 | % | ||||||||||||||
Interest-bearing demand | 938,809 | 352 | 0.07 | % | 1,047,844 | 293 | 0.06 | % | ||||||||||||||
Money market accounts | 1,943,416 | 858 | 0.09 | % | 1,784,198 | 683 | 0.08 | % | ||||||||||||||
Total interest-bearing deposits | 4,004,849 | 1,529 | 0.08 | % | 3,954,179 | 1,488 | 0.08 | % | ||||||||||||||
Federal Home Loan Bank advances | 106,103 | 365 | 0.69 | % | 125,812 | 313 | 0.50 | % | ||||||||||||||
Other borrowings | 83,735 | 273 | 0.65 | % | 97,066 | 282 | 0.58 | % | ||||||||||||||
Total interest-bearing liabilities | 4,194,687 | $ | 2,167 | 0.10 | % | 4,177,057 | $ | 2,083 | 0.10 | % | ||||||||||||
Noninterest-bearing deposits | 3,529,131 | 2,999,075 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 103,143 | 98,526 | ||||||||||||||||||||
Shareholders’ equity | 1,263,040 | 1,244,389 | ||||||||||||||||||||
Total liabilities & shareholders’ equity | $ | 9,090,001 | $ | 8,519,047 | ||||||||||||||||||
Net interest income (tax equivalent) | $ | 167,607 | $ | 165,964 | ||||||||||||||||||
Net interest margin (tax equivalent) | 4.12 | % | 4.40 | % |
(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 $2.3 million and $2.6 million for the six months ended June 30, 2016 and 2015, respectively. The incremental accretion on acquired loans was $9.1 million and $14.8 million for the six months ended June 30, 2016 and 2015, respectively. |
(2) | Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was $2.3 million and $1.3 million for the six months ended June 30, 2016 and 2015, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $3.0 million and $3.3 million for the six months ended June 30, 2016 and 2015, respectively. |
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
Operating net interest margin non-GAAP reconciliation: | (dollars in thousands) | |||||||||||||||||||
Net interest income (tax equivalent) (1) | $ | 84,946 | $ | 82,661 | $ | 83,298 | $ | 167,607 | $ | 165,964 | ||||||||||
Adjustments to arrive at operating net interest income (tax equivalent): | ||||||||||||||||||||
Incremental accretion income on FDIC purchased credit impaired loans | (1,300 | ) | (1,657 | ) | (2,367 | ) | (2,957 | ) | (4,814 | ) | ||||||||||
Incremental accretion income on other FDIC acquired loans (2) | — | — | (15 | ) | — | (132 | ) | |||||||||||||
Incremental accretion income on other acquired loans | (3,074 | ) | (3,073 | ) | (4,889 | ) | (6,147 | ) | (9,823 | ) | ||||||||||
Premium amortization on acquired securities | 2,075 | 2,324 | 2,706 | 4,399 | 5,567 | |||||||||||||||
Interest reversals on nonaccrual loans | 107 | 453 | 156 | 560 | 806 | |||||||||||||||
Operating net interest income (tax equivalent) (1) | $ | 82,754 | $ | 80,708 | $ | 78,889 | $ | 163,462 | $ | 157,568 | ||||||||||
Average interest earning assets | $ | 8,285,183 | $ | 8,005,945 | $ | 7,560,288 | $ | 8,145,564 | $ | 7,544,750 | ||||||||||
Net interest margin (tax equivalent) (1) | 4.10 | % | 4.13 | % | 4.41 | % | 4.12 | % | 4.40 | % | ||||||||||
Operating net interest margin (tax equivalent) (1) | 4.00 | % | 4.03 | % | 4.17 | % | 4.01 | % | 4.18 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
Operating efficiency ratio non-GAAP reconciliation: | (dollars in thousands) | |||||||||||||||||||
Noninterest expense (numerator A) | $ | 63,790 | $ | 65,074 | $ | 68,471 | $ | 128,864 | $ | 135,205 | ||||||||||
Adjustments to arrive at operating noninterest expense: | ||||||||||||||||||||
Acquisition-related expenses | — | (2,436 | ) | (5,643 | ) | (2,436 | ) | (8,617 | ) | |||||||||||
Net benefit (cost) of operation of OREO and OPPO | (84 | ) | (102 | ) | 561 | (186 | ) | 1,802 | ||||||||||||
FDIC clawback liability expense | (70 | ) | (209 | ) | 30 | (279 | ) | 7 | ||||||||||||
Loss on asset disposals | (7 | ) | (160 | ) | (10 | ) | (167 | ) | (106 | ) | ||||||||||
State of Washington Business and Occupation ("B&O") taxes | (1,204 | ) | (1,171 | ) | (1,327 | ) | (2,375 | ) | (2,456 | ) | ||||||||||
Operating noninterest expense (numerator B) | $ | 62,425 | $ | 60,996 | $ | 62,082 | $ | 123,421 | $ | 125,835 | ||||||||||
Net interest income (tax equivalent) (1) | $ | 84,946 | $ | 82,661 | $ | 83,298 | $ | 167,607 | $ | 165,964 | ||||||||||
Noninterest income | 21,940 | 20,646 | 21,462 | 42,586 | 44,229 | |||||||||||||||
Bank owned life insurance tax equivalent adjustment | 685 | 600 | 649 | 1,285 | 1,230 | |||||||||||||||
Total revenue (tax equivalent) (denominator A) | $ | 107,571 | $ | 103,907 | $ | 105,409 | $ | 211,478 | $ | 211,423 | ||||||||||
Operating net interest income (tax equivalent) (1) | $ | 82,754 | $ | 80,708 | $ | 78,889 | $ | 163,462 | $ | 157,568 | ||||||||||
Adjustments to arrive at operating noninterest income (tax equivalent): | ||||||||||||||||||||
Investment securities gains, net | (229 | ) | (373 | ) | (343 | ) | (602 | ) | (1,064 | ) | ||||||||||
Gain on asset disposals | (2 | ) | (54 | ) | (5 | ) | (56 | ) | (5 | ) | ||||||||||
Change in FDIC loss-sharing asset | 990 | 1,103 | 1,494 | 2,093 | 1,344 | |||||||||||||||
Operating noninterest income (tax equivalent) | 23,384 | 21,922 | 23,257 | 45,306 | 45,734 | |||||||||||||||
Total operating revenue (tax equivalent) (denominator B) | $ | 106,138 | $ | 102,630 | $ | 102,146 | $ | 208,768 | $ | 203,302 | ||||||||||
Efficiency ratio (tax equivalent) (numerator A/denominator A) | 59.30 | % | 62.63 | % | 64.96 | % | 60.93 | % | 63.95 | % | ||||||||||
Operating efficiency ratio (tax equivalent) (numerator B/denominator B) | 58.81 | % | 59.43 | % | 60.78 | % | 59.12 | % | 61.90 | % |