TACOMA, Wash., Jan. 28, 2016 /PRNewswire/ -- Melanie
Dressel, President and Chief Executive Officer of Columbia Banking
System and Columbia Bank (NASDAQ: COLB) ("Columbia"), said today upon the release of
Columbia's fourth quarter 2015
earnings, "Our record earnings for the fourth quarter and full year
were the result of several positive trends that continued to build
throughout 2015. We are proud of our record loan production of
$1.1 billion for the year." Ms.
Dressel continued, "Our operating leverage continues to improve as
we experienced growth in non-interest income and a lower expense to
asset ratio. Asset quality improved further with our nonperforming
assets to total assets declining to 0.39%. However, the future is
not without challenges as we continue to experience intense pricing
competition and the increasing probability of a lower interest rate
environment for a longer period of time."
Balance Sheet
Loans were $5.82 billion at
December 31, 2015, up $68.5
million from September 30, 2015 due to substantial loan
originations during the current quarter. Compared to the prior year
end, loans increased $369.6 million,
or 7%, during 2015. Securities were $2.17
billion at December 31, 2015, an increase of
$132.8 million, or 7% from
$2.04 billion at September 30,
2015 due primarily to purchases of securities resulting from
deposits growing in excess of loans. Total deposits at
December 31, 2015 were $7.44
billion, an increase of $124.0
million from $7.31 billion at
September 30, 2015. Core deposits comprised 96% of total
deposits and were $7.13 billion at
December 31, 2015, an increase of $141.7 million from September 30, 2015. The
average rate on interest-bearing deposits was 0.07%, down from
0.08% for the third quarter of 2015 and the average cost on all
deposits was 0.04%, unchanged from the third quarter of 2015.
Income Statement
Net Interest Income
Net interest income for the fourth quarter of 2015 was
$81.8 million, an increase of
$125 thousand compared to the third
quarter of 2015. This increase was primarily due to higher average
loan and securities balances in the current quarter, which were
largely offset by lower yields on loans, lower incremental
accretion income and an increase in interest reversals on
nonaccrual loans. Compared to the fourth quarter of 2014, net
interest income increased by $3.1
million from $78.8 million.
The increase from the prior year period was the result of organic
loan growth, partially offset by a decline in incremental accretion
income. For additional information regarding net interest income,
see the "Average Balances and Rates" table.
Noninterest Income
Noninterest income was $24.7
million for the fourth quarter of 2015, an increase of
$2.2 million compared to $22.5 million for the third quarter of 2015. The
linked quarter increase was primarily due to the $3.1 million adjustment to the mortgage
repurchase liability related to our acquisition of West Coast Bank
recorded during the current quarter through other noninterest
income. This increase was partially offset by lower service charge
and merchant fee income, which were down $648 thousand and $249
thousand from the prior quarter, respectively. In addition,
there were lower loan sale gains recorded in the current quarter,
which were down $593 thousand from
the prior quarter.
Compared to the fourth quarter of 2014, noninterest income
increased by $9.6 million due to both
the change in FDIC loss-sharing asset, which accounted for
$4.3 million of the increase, and a
$4.0 million increase in other
noninterest income primarily due to the previously noted
$3.1 million adjustment to the
mortgage repurchase liability. Additional details of the components
of the change in the FDIC loss-sharing asset are provided in
tabular format below.
The change in the FDIC loss-sharing asset has been a significant
component of noninterest income, but over time the significance has
diminished. The following table reflects the income statement
components of the change in the FDIC loss-sharing asset:
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(in
thousands)
|
Adjustments reflected
in income
|
|
|
|
|
|
|
|
|
Amortization,
net
|
|
(1,098)
|
|
|
(5,071)
|
|
|
(6,184)
|
|
|
(21,279)
|
|
Loan impairment
(recapture)
|
|
855
|
|
|
(434)
|
|
|
2,268
|
|
|
2,301
|
|
Sale of other real
estate
|
|
(484)
|
|
|
(75)
|
|
|
(1,237)
|
|
|
(2,179)
|
|
Write-downs of other
real estate
|
|
10
|
|
|
206
|
|
|
1,158
|
|
|
1,065
|
|
Other
|
|
(314)
|
|
|
70
|
|
|
(15)
|
|
|
103
|
|
Change in FDIC
loss-sharing asset
|
|
$
|
(1,031)
|
|
|
$
|
(5,304)
|
|
|
$
|
(4,010)
|
|
|
$
|
(19,989)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expense
Total noninterest expense for the fourth quarter of 2015 was
$66.9 million, an increase of
$2.8 million compared to $64.1 million for the third quarter of 2015. This
increase was driven by higher acquisition-related expenses in the
current quarter of $1.9 million
compared to $428 thousand in the
linked quarter. After removing the effect of the
acquisition-related expenses, noninterest expense for the current
quarter was $1.4 million higher than
the third quarter of 2015 on the same basis. This increase was due
to $852 thousand in higher occupancy
costs related to the write-down of land pending sale as well as
higher expense related to the FDIC clawback liability of
$813 thousand during the current
quarter compared to $174 thousand in
the prior quarter. These increases were partially offset by lower
fraud losses of $209 thousand in the
current quarter compared to $834
thousand during the third quarter of 2015.
Compared to the fourth quarter of 2014, noninterest expense
increased $2.7 million, or 4%, from
$64.2 million. The primary drivers of
the increase were higher expenses resulting from the Intermountain
Community Bancorp acquisition, which occurred during the fourth
quarter of 2014 as well as higher clawback liability expense and
occupancy expense as noted above. Also contributing to the increase
was our fourth quarter 2014 adoption of Accounting Standards Update
2014-01, which reclassified approximately $800 thousand in affordable housing projects
expense from noninterest expense to tax expense. These increases
were partially offset by a decrease of $2.7
million in acquisition-related expenses.
Net Interest Margin ("NIM")
Columbia's net interest margin
(tax equivalent) of 4.25% for the fourth quarter of 2015 decreased
12 basis points from 4.37% for the third quarter of 2015 due to
lower yields on loans, lower incremental accretion on acquired
loans and an increase in securities as a percentage of earning
assets. Compared to the fourth quarter of 2014, Columbia's net interest margin decreased 25
basis points from 4.50%, because of both lower yields on loans and
lower incremental accretion on acquired loans, which was
$8.8 million for the prior year
quarter, compared to $6.0 million for
the current quarter. Columbia's
operating net interest margin (tax equivalent)(1) was
4.09% for the fourth quarter of 2015, a decrease of 9 basis points
from 4.18% for the third quarter of 2015 and down 8 basis points
compared to 4.17% for the fourth quarter of 2014 as a result of the
continuing low interest rate environment.
The following table shows the impact to interest income
resulting from accretion of income on acquired loan portfolios as
well as the net interest margin and operating net interest
margin:
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December 31,
2015
|
|
December 31,
2014
|
|
December 31,
2015
|
|
December 31,
2014
|
|
|
(dollars in
thousands)
|
Incremental accretion
income due to:
|
|
|
|
|
|
|
|
|
FDIC purchased credit
impaired loans
|
|
$
|
2,200
|
|
|
$
|
3,796
|
|
|
$
|
9,096
|
|
|
$
|
20,224
|
|
Other FDIC acquired
loans
|
|
68
|
|
|
10
|
|
|
234
|
|
|
484
|
|
Other acquired
loans
|
|
3,746
|
|
|
4,957
|
|
|
17,862
|
|
|
21,093
|
|
Incremental accretion
income
|
|
$
|
6,014
|
|
|
$
|
8,763
|
|
|
$
|
27,192
|
|
|
$
|
41,801
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(tax equivalent)
|
|
4.25
|
%
|
|
4.50
|
%
|
|
4.35
|
%
|
|
4.76
|
%
|
Operating net
interest margin (tax equivalent) (1)
|
|
4.09
|
%
|
|
4.17
|
%
|
|
4.15
|
%
|
|
4.21
|
%
|
|
__________
|
(1)
|
Operating net
interest margin (tax equivalent) is a non-GAAP financial measure.
See the section titled "Non-GAAP Financial Measures" on the last
pages of this earnings release for the reconciliation of operating
net interest margin (tax equivalent) to net interest
margin.
|
Asset Quality
At December 31, 2015, nonperforming assets to total assets
were 0.39% compared to 0.44% at September 30, 2015. Total
nonperforming assets decreased $3.4
million due to a $5.7 million
reduction in other real estate owned resulting from sales activity
during the current quarter, partially offset by an increase in
nonaccrual loans.
The following table sets forth information regarding nonaccrual
loans and total nonperforming assets:
|
|
December 31,
2015
|
|
September 30,
2015
|
|
December 31,
2014
|
|
|
(in
thousands)
|
Nonaccrual
loans:
|
|
|
|
|
|
|
Commercial
business
|
|
$
|
9,437
|
|
|
$
|
10,150
|
|
|
$
|
16,799
|
|
Real
estate:
|
|
|
|
|
|
|
One-to-four family
residential
|
|
820
|
|
|
2,012
|
|
|
2,822
|
|
Commercial and
multifamily residential
|
|
9,513
|
|
|
4,317
|
|
|
7,847
|
|
Total real
estate
|
|
10,333
|
|
|
6,329
|
|
|
10,669
|
|
Real estate
construction:
|
|
|
|
|
|
|
One-to-four family
residential
|
|
928
|
|
|
1,472
|
|
|
465
|
|
Commercial and
multifamily residential
|
|
—
|
|
|
470
|
|
|
480
|
|
Total real estate
construction
|
|
928
|
|
|
1,942
|
|
|
945
|
|
Consumer
|
|
766
|
|
|
659
|
|
|
2,939
|
|
Total nonaccrual
loans
|
|
21,464
|
|
|
19,080
|
|
|
31,352
|
|
Other real estate
owned and other personal property owned
|
|
13,738
|
|
|
19,475
|
|
|
22,225
|
|
Total nonperforming
assets
|
|
$
|
35,202
|
|
|
$
|
38,555
|
|
|
$
|
53,577
|
|
The following table provides an analysis of the Company's
allowance for loan and lease losses:
|
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(in
thousands)
|
Beginning
balance
|
|
$
|
69,049
|
|
|
$
|
67,871
|
|
|
$
|
69,569
|
|
|
$
|
72,454
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
Commercial
business
|
|
(2,184)
|
|
|
(991)
|
|
|
(8,266)
|
|
|
(4,289)
|
|
One-to-four family
residential real estate
|
|
(79)
|
|
|
(23)
|
|
|
(376)
|
|
|
(230)
|
|
Commercial and
multifamily residential real estate
|
|
(264)
|
|
|
—
|
|
|
(505)
|
|
|
(2,993)
|
|
Consumer
|
|
(545)
|
|
|
(518)
|
|
|
(2,066)
|
|
|
(2,774)
|
|
Purchased credit
impaired
|
|
(3,680)
|
|
|
(3,086)
|
|
|
(13,854)
|
|
|
(14,436)
|
|
Total
charge-offs
|
|
(6,752)
|
|
|
(4,618)
|
|
|
(25,067)
|
|
|
(24,722)
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
Commercial
business
|
|
886
|
|
|
449
|
|
|
2,336
|
|
|
3,007
|
|
One-to-four family
residential real estate
|
|
19
|
|
|
56
|
|
|
307
|
|
|
159
|
|
Commercial and
multifamily residential real estate
|
|
277
|
|
|
224
|
|
|
3,975
|
|
|
940
|
|
One-to-four family
residential real estate construction
|
|
52
|
|
|
1,426
|
|
|
193
|
|
|
1,930
|
|
Commercial and
multifamily residential real estate construction
|
|
1
|
|
|
—
|
|
|
8
|
|
|
—
|
|
Consumer
|
|
224
|
|
|
422
|
|
|
931
|
|
|
1,353
|
|
Purchased credit
impaired
|
|
2,067
|
|
|
2,031
|
|
|
7,329
|
|
|
7,721
|
|
Total
recoveries
|
|
3,526
|
|
|
4,608
|
|
|
15,079
|
|
|
15,110
|
|
Net
charge-offs
|
|
(3,226)
|
|
|
(10)
|
|
|
(9,988)
|
|
|
(9,612)
|
|
Provision for loan
and lease losses
|
|
2,349
|
|
|
1,708
|
|
|
8,591
|
|
|
6,727
|
|
Ending
balance
|
|
$
|
68,172
|
|
|
$
|
69,569
|
|
|
$
|
68,172
|
|
|
$
|
69,569
|
|
The allowance for loan losses to period end loans was 1.17% at
December 31, 2015 compared to 1.20% at September 30,
2015. For the fourth quarter of 2015, Columbia recorded a net provision for loan and
lease losses of $2.3 million compared
to a net provision of $1.7 million
for the comparable quarter last year.
Impact of FDIC Acquired Loan Accounting
While the significance of the FDIC Acquired Loan Accounting has
diminished over time, the following table illustrates the impact to
earnings associated with Columbia's FDIC acquired loan portfolios:
FDIC Acquired Loan
Accounting
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December 31,
2015
|
|
December 31,
2014
|
|
December 31,
2015
|
|
December 31,
2014
|
|
|
(in
thousands)
|
Incremental accretion
income on FDIC purchased credit impaired loans
|
|
$
|
2,200
|
|
|
$
|
3,796
|
|
|
$
|
9,096
|
|
|
$
|
20,224
|
|
Incremental accretion
income on other FDIC acquired loans
|
|
68
|
|
|
10
|
|
|
234
|
|
|
484
|
|
Recapture (provision)
for losses on FDIC purchased credit impaired loans
|
|
(1,349)
|
|
|
542
|
|
|
(3,915)
|
|
|
(2,877)
|
|
Change in FDIC
loss-sharing asset
|
|
(1,031)
|
|
|
(5,304)
|
|
|
(4,010)
|
|
|
(19,989)
|
|
FDIC clawback
liability recovery (expense)
|
|
(812)
|
|
|
8
|
|
|
(979)
|
|
|
(294)
|
|
Pre-tax earnings
impact
|
|
$
|
(924)
|
|
|
$
|
(948)
|
|
|
$
|
426
|
|
|
$
|
(2,452)
|
|
The incremental accretion income on FDIC purchased credit
impaired loans represents the amount of income recorded above the
contractual rate stated in the individual loan notes. At
December 31, 2015, the accretable yield on purchased credit
impaired loans was $59.0 million.
Accretable yield is subject to change based upon expected future
loan cash flows, which are remeasured by Columbia on a quarterly basis.
The $1.0 million change in the
FDIC loss-sharing asset in the current quarter reduced noninterest
income and consisted primarily of $1.1
million in amortization expense. Additional details of the
components of the change in the FDIC loss-sharing asset are
provided in tabular format in the section titled "Noninterest
Income" in the following pages.
Organizational Update
Ms. Dressel commented, "We were very pleased to be recognized
again by Forbes on its 2016 list of "America's Best
Banks", ranking 19th in the country. The rankings are
based on asset quality, capital adequacy, net interest margin and
profitability of the nation's 100 largest publicly traded banks and
thrifts."
Ms. Dressel continued, "I am proud and delighted that Columbia
Bank's "Warm Hearts Winter Drive" has so far raised over
$150,000 in cash and almost 12,000
pieces of new cold weather items in response to the urgent need of
people struggling with homelessness throughout our
footprint. With the generous support of our employees and
customers, we more than surpassed our goal, making a real
difference in the lives of people in need across all the
communities we serve."
Conference Call Information
Columbia's management will
discuss the fourth quarter 2015 results on a conference call
scheduled for Thursday, January 28,
2016 at 1:00 p.m. Pacific Standard
Time (4:00 p.m. Eastern Standard
Time). Interested parties may listen to this discussion by
calling 1-866-378-3802; Conference ID code #22782080.
A conference call replay will be available from approximately
4:00 p.m. PST on January 28, 2016 through 9:00 p.m. PST on February
4, 2016. The conference call replay can be accessed by
dialing 1-855-859-2056 and entering Conference ID code
#22782080.
Annual Meeting of Shareholders
Columbia Banking System's Annual Meeting of Shareholders will be
held at 1:00 PDT on Wednesday, April 27, 2016 at the Greater Tacoma
Convention and Trade Center, 1500 Broadway, Tacoma, Washington 98402. Directions and
parking are available at http://gtctc.org/parking-directions.
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
ninth consecutive year, the bank was named in 2015 as one
of Puget Sound Business Journal's "Washington's Best Workplaces."
Columbia ranked in the top 20 on
the 2016 Forbes list of best banks in the country
for the fifth year in a row.
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:
|
Melanie J.
Dressel,
|
|
President
and
|
|
Chief Executive
Officer
|
|
(253)
305-1911
|
|
|
|
Clint E.
Stein,
|
|
Executive Vice
President
|
|
and Chief Financial
Officer
|
|
(253)
593-8304
|
FINANCIAL
STATISTICS
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
Three Months
Ended
|
|
Twelve Months
Ended
|
Unaudited
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Earnings
|
|
(dollars in
thousands except per share amounts)
|
Net interest
income
|
|
$
|
81,819
|
|
|
$
|
78,764
|
|
|
$
|
324,887
|
|
|
$
|
304,048
|
|
Provision for loan
and lease losses
|
|
$
|
2,349
|
|
|
$
|
1,708
|
|
|
$
|
8,591
|
|
|
$
|
6,727
|
|
Noninterest
income
|
|
$
|
24,745
|
|
|
$
|
15,185
|
|
|
$
|
91,473
|
|
|
$
|
59,750
|
|
Noninterest
expense
|
|
$
|
66,877
|
|
|
$
|
64,154
|
|
|
$
|
266,149
|
|
|
$
|
239,286
|
|
Acquisition-related
expense (included in noninterest expense)
|
|
$
|
1,872
|
|
|
$
|
4,556
|
|
|
$
|
10,917
|
|
|
$
|
9,432
|
|
Net income
|
|
$
|
26,740
|
|
|
$
|
18,920
|
|
|
$
|
98,827
|
|
|
$
|
81,574
|
|
Per Common
Share
|
|
|
|
|
|
|
|
|
Earnings
(basic)
|
|
$
|
0.46
|
|
|
$
|
0.34
|
|
|
$
|
1.71
|
|
|
$
|
1.53
|
|
Earnings
(diluted)
|
|
$
|
0.46
|
|
|
$
|
0.34
|
|
|
$
|
1.71
|
|
|
$
|
1.52
|
|
Book value
|
|
$
|
21.48
|
|
|
$
|
21.34
|
|
|
$
|
21.48
|
|
|
$
|
21.34
|
|
Averages
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
8,905,743
|
|
|
$
|
8,152,463
|
|
|
$
|
8,655,243
|
|
|
$
|
7,468,091
|
|
Interest-earning
assets
|
|
$
|
7,937,308
|
|
|
$
|
7,199,443
|
|
|
$
|
7,685,734
|
|
|
$
|
6,561,047
|
|
Loans
|
|
$
|
5,762,048
|
|
|
$
|
5,168,761
|
|
|
$
|
5,609,261
|
|
|
$
|
4,782,369
|
|
Securities, including
Federal Home Loan Bank stock
|
|
$
|
2,136,703
|
|
|
$
|
1,918,690
|
|
|
$
|
2,031,859
|
|
|
$
|
1,708,575
|
|
Deposits
|
|
$
|
7,440,628
|
|
|
$
|
6,759,259
|
|
|
$
|
7,146,828
|
|
|
$
|
6,187,342
|
|
Interest-bearing
deposits
|
|
$
|
3,933,001
|
|
|
$
|
4,174,459
|
|
|
$
|
3,937,881
|
|
|
$
|
3,901,524
|
|
Interest-bearing
liabilities
|
|
$
|
4,031,214
|
|
|
$
|
4,282,273
|
|
|
$
|
4,097,483
|
|
|
$
|
3,986,017
|
|
Noninterest-bearing
deposits
|
|
$
|
3,507,627
|
|
|
$
|
2,584,800
|
|
|
$
|
3,208,947
|
|
|
$
|
2,285,818
|
|
Shareholders'
equity
|
|
$
|
1,259,117
|
|
|
$
|
1,185,346
|
|
|
$
|
1,246,952
|
|
|
$
|
1,109,581
|
|
Financial
Ratios
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.20
|
%
|
|
0.93
|
%
|
|
1.14
|
%
|
|
1.09
|
%
|
Return on average
common equity
|
|
8.50
|
%
|
|
6.39
|
%
|
|
7.93
|
%
|
|
7.36
|
%
|
Average equity to
average assets
|
|
14.14
|
%
|
|
14.54
|
%
|
|
14.41
|
%
|
|
14.86
|
%
|
Net interest margin
(tax equivalent)
|
|
4.25
|
%
|
|
4.50
|
%
|
|
4.35
|
%
|
|
4.76
|
%
|
Efficiency ratio (tax
equivalent) (1)
|
|
60.99
|
%
|
|
66.30
|
%
|
|
62.12
|
%
|
|
63.97
|
%
|
Operating efficiency
ratio (tax equivalent) (2)
|
|
60.53
|
%
|
|
60.82
|
%
|
|
60.78
|
%
|
|
63.33
|
%
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
Period
end
|
|
2015
|
|
2014
|
|
|
|
|
Total
assets
|
|
$
|
8,954,382
|
|
|
$
|
8,578,846
|
|
|
|
|
|
Loans, net of
unearned income
|
|
$
|
5,815,027
|
|
|
$
|
5,445,378
|
|
|
|
|
|
Allowance for loan
and lease losses
|
|
$
|
68,172
|
|
|
$
|
69,569
|
|
|
|
|
|
Securities, including
Federal Home Loan Bank stock
|
|
$
|
2,170,416
|
|
|
$
|
2,131,622
|
|
|
|
|
|
Deposits
|
|
$
|
7,438,829
|
|
|
$
|
6,924,722
|
|
|
|
|
|
Core
deposits
|
|
$
|
7,127,866
|
|
|
$
|
6,619,944
|
|
|
|
|
|
Shareholders'
equity
|
|
$
|
1,242,128
|
|
|
$
|
1,228,175
|
|
|
|
|
|
Nonperforming
assets
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
21,464
|
|
|
$
|
31,352
|
|
|
|
|
|
Other real estate
owned ("OREO") and other personal property owned
("OPPO")
|
|
13,738
|
|
|
22,225
|
|
|
|
|
|
Total nonperforming
assets
|
|
$
|
35,202
|
|
|
$
|
53,577
|
|
|
|
|
|
Nonperforming loans
to period-end loans
|
|
0.37
|
%
|
|
0.58
|
%
|
|
|
|
|
Nonperforming assets
to period-end assets
|
|
0.39
|
%
|
|
0.62
|
%
|
|
|
|
|
Allowance for loan
and lease losses to period-end loans
|
|
1.17
|
%
|
|
1.28
|
%
|
|
|
|
|
Net loan
charge-offs
|
|
$
|
9,988
|
|
(3)
|
$
|
9,612
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 twelve
months ended December 31, 2015.
|
|
|
|
|
|
|
|
|
(4) For the twelve
months ended December 31, 2014.
|
|
|
|
|
|
|
|
|
FINANCIAL
STATISTICS
|
|
|
|
Columbia
Banking System, Inc.
|
|
|
|
Unaudited
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2014
|
Loan Portfolio
Composition
|
|
(dollars in
thousands)
|
Commercial
business
|
|
$
|
2,362,575
|
|
|
40.6
|
%
|
|
$
|
2,119,565
|
|
|
38.9
|
%
|
Real
estate:
|
|
|
|
|
|
|
|
|
One-to-four family
residential
|
|
176,295
|
|
|
3.0
|
%
|
|
175,571
|
|
|
3.2
|
%
|
Commercial and
multifamily residential
|
|
2,491,736
|
|
|
42.9
|
%
|
|
2,363,541
|
|
|
43.5
|
%
|
Total real
estate
|
|
2,668,031
|
|
|
45.9
|
%
|
|
2,539,112
|
|
|
46.7
|
%
|
Real estate
construction:
|
|
|
|
|
|
|
|
|
One-to-four family
residential
|
|
135,874
|
|
|
2.3
|
%
|
|
116,866
|
|
|
2.1
|
%
|
Commercial and
multifamily residential
|
|
167,413
|
|
|
2.9
|
%
|
|
134,443
|
|
|
2.5
|
%
|
Total real estate
construction
|
|
303,287
|
|
|
5.2
|
%
|
|
251,309
|
|
|
4.6
|
%
|
Consumer
|
|
342,601
|
|
|
5.9
|
%
|
|
364,182
|
|
|
6.7
|
%
|
Purchased credit
impaired
|
|
180,906
|
|
|
3.1
|
%
|
|
230,584
|
|
|
4.2
|
%
|
Subtotal
loans
|
|
5,857,400
|
|
|
100.7
|
%
|
|
5,504,752
|
|
|
101.1
|
%
|
Less: Net
unearned income
|
|
(42,373)
|
|
|
(0.7)
|
%
|
|
(59,374)
|
|
|
(1.1)
|
%
|
Loans, net of
unearned income
|
|
5,815,027
|
|
|
100.0
|
%
|
|
5,445,378
|
|
|
100.0
|
%
|
Less: Allowance
for loan and lease losses
|
|
(68,172)
|
|
|
|
|
(69,569)
|
|
|
|
Total loans,
net
|
|
5,746,855
|
|
|
|
|
5,375,809
|
|
|
|
Loans held for
sale
|
|
$
|
4,509
|
|
|
|
|
$
|
1,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2014
|
Deposit
Composition
|
|
(dollars in
thousands)
|
Core
deposits:
|
|
|
|
|
|
|
|
|
Demand and other
non-interest bearing
|
|
$
|
3,507,358
|
|
|
47.2
|
%
|
|
$
|
2,651,373
|
|
|
38.3
|
%
|
Interest bearing
demand
|
|
925,909
|
|
|
12.4
|
%
|
|
1,304,258
|
|
|
18.8
|
%
|
Money
market
|
|
1,788,552
|
|
|
24.0
|
%
|
|
1,760,331
|
|
|
25.4
|
%
|
Savings
|
|
657,016
|
|
|
8.8
|
%
|
|
615,721
|
|
|
8.9
|
%
|
Certificates of
deposit less than $100,000
|
|
249,031
|
|
|
3.3
|
%
|
|
288,261
|
|
|
4.2
|
%
|
Total core
deposits
|
|
7,127,866
|
|
|
95.7
|
%
|
|
6,619,944
|
|
|
95.6
|
%
|
|
|
|
|
|
|
|
|
|
Certificates of
deposit greater than $100,000
|
|
182,973
|
|
|
2.5
|
%
|
|
202,014
|
|
|
2.9
|
%
|
Certificates of
deposit insured by CDARS®
|
|
26,901
|
|
|
0.4
|
%
|
|
18,429
|
|
|
0.3
|
%
|
Brokered money market
accounts
|
|
100,854
|
|
|
1.4
|
%
|
|
83,402
|
|
|
1.2
|
%
|
Subtotal
|
|
7,438,594
|
|
|
100.0
|
%
|
|
6,923,789
|
|
|
100.0
|
%
|
Premium resulting from
acquisition date fair value adjustment
|
|
235
|
|
|
|
|
933
|
|
|
|
Total
deposits
|
|
$
|
7,438,829
|
|
|
|
|
$
|
6,924,722
|
|
|
|
QUARTERLY
FINANCIAL STATISTICS
|
|
|
|
|
Columbia
Banking System, Inc.
|
Three Months
Ended
|
Unaudited
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
|
2015
|
|
2015
|
|
2015
|
|
2015
|
|
2014
|
|
|
(dollars in
thousands except per share)
|
Earnings
|
|
|
Net interest
income
|
|
$
|
81,819
|
|
|
$
|
81,694
|
|
|
$
|
81,010
|
|
|
$
|
80,364
|
|
|
$
|
78,764
|
|
Provision for loan
and lease losses
|
|
$
|
2,349
|
|
|
$
|
2,831
|
|
|
$
|
2,202
|
|
|
$
|
1,209
|
|
|
$
|
1,708
|
|
Noninterest
income
|
|
$
|
24,745
|
|
|
$
|
22,499
|
|
|
$
|
21,462
|
|
|
$
|
22,767
|
|
|
$
|
15,185
|
|
Noninterest
expense
|
|
$
|
66,877
|
|
|
$
|
64,067
|
|
|
$
|
68,471
|
|
|
$
|
66,734
|
|
|
$
|
64,154
|
|
Acquisition-related
expense (included in noninterest expense)
|
|
$
|
1,872
|
|
|
$
|
428
|
|
|
$
|
5,643
|
|
|
$
|
2,974
|
|
|
$
|
4,556
|
|
Net income
|
|
$
|
26,740
|
|
|
$
|
25,780
|
|
|
$
|
21,946
|
|
|
$
|
24,361
|
|
|
$
|
18,920
|
|
Per Common
Share
|
|
|
|
|
|
|
|
|
|
|
Earnings
(basic)
|
|
$
|
0.46
|
|
|
$
|
0.45
|
|
|
$
|
0.38
|
|
|
$
|
0.42
|
|
|
$
|
0.34
|
|
Earnings
(diluted)
|
|
$
|
0.46
|
|
|
$
|
0.45
|
|
|
$
|
0.38
|
|
|
$
|
0.42
|
|
|
$
|
0.34
|
|
Book value
|
|
$
|
21.48
|
|
|
$
|
21.69
|
|
|
$
|
21.38
|
|
|
$
|
21.53
|
|
|
$
|
21.34
|
|
Averages
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
8,905,743
|
|
|
$
|
8,672,692
|
|
|
$
|
8,532,173
|
|
|
$
|
8,505,776
|
|
|
$
|
8,152,463
|
|
Interest-earning
assets
|
|
$
|
7,937,308
|
|
|
$
|
7,711,531
|
|
|
$
|
7,560,288
|
|
|
$
|
7,529,040
|
|
|
$
|
7,199,443
|
|
Loans
|
|
$
|
5,762,048
|
|
|
$
|
5,712,614
|
|
|
$
|
5,542,489
|
|
|
$
|
5,414,942
|
|
|
$
|
5,168,761
|
|
Securities, including
Federal Home Loan Bank stock
|
|
$
|
2,136,703
|
|
|
$
|
1,945,174
|
|
|
$
|
1,976,959
|
|
|
$
|
2,068,806
|
|
|
$
|
1,918,690
|
|
Deposits
|
|
$
|
7,440,628
|
|
|
$
|
7,233,863
|
|
|
$
|
6,978,472
|
|
|
$
|
6,927,756
|
|
|
$
|
6,759,259
|
|
Interest-bearing
deposits
|
|
$
|
3,933,001
|
|
|
$
|
3,910,695
|
|
|
$
|
3,753,101
|
|
|
$
|
4,157,491
|
|
|
$
|
4,174,459
|
|
Interest-bearing
liabilities
|
|
$
|
4,031,214
|
|
|
$
|
4,007,198
|
|
|
$
|
3,961,013
|
|
|
$
|
4,395,502
|
|
|
$
|
4,282,273
|
|
Noninterest-bearing
deposits
|
|
$
|
3,507,627
|
|
|
$
|
3,323,168
|
|
|
$
|
3,225,371
|
|
|
$
|
2,770,265
|
|
|
$
|
2,584,800
|
|
Shareholders'
equity
|
|
$
|
1,259,117
|
|
|
$
|
1,239,830
|
|
|
$
|
1,247,887
|
|
|
$
|
1,240,853
|
|
|
$
|
1,185,346
|
|
Financial
Ratios
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
1.20
|
%
|
|
1.19
|
%
|
|
1.03
|
%
|
|
1.15
|
%
|
|
0.93
|
%
|
Return on average
common equity
|
|
8.50
|
%
|
|
8.32
|
%
|
|
7.04
|
%
|
|
7.86
|
%
|
|
6.39
|
%
|
Average equity to
average assets
|
|
14.14
|
%
|
|
14.30
|
%
|
|
14.63
|
%
|
|
14.59
|
%
|
|
14.54
|
%
|
Net interest margin
(tax equivalent)
|
|
4.25
|
%
|
|
4.37
|
%
|
|
4.41
|
%
|
|
4.39
|
%
|
|
4.50
|
%
|
Period
end
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
8,954,382
|
|
|
$
|
8,755,984
|
|
|
$
|
8,518,019
|
|
|
$
|
8,552,902
|
|
|
$
|
8,578,846
|
|
Loans, net of
unearned income
|
|
$
|
5,815,027
|
|
|
$
|
5,746,511
|
|
|
$
|
5,611,897
|
|
|
$
|
5,450,895
|
|
|
$
|
5,445,378
|
|
Allowance for loan
and lease losses
|
|
$
|
68,172
|
|
|
$
|
69,049
|
|
|
$
|
69,257
|
|
|
$
|
70,234
|
|
|
$
|
69,569
|
|
Securities, including
Federal Home Loan Bank stock
|
|
$
|
2,170,416
|
|
|
$
|
2,037,666
|
|
|
$
|
1,926,248
|
|
|
$
|
2,040,163
|
|
|
$
|
2,131,622
|
|
Deposits
|
|
$
|
7,438,829
|
|
|
$
|
7,314,805
|
|
|
$
|
7,044,373
|
|
|
$
|
7,074,965
|
|
|
$
|
6,924,722
|
|
Core
deposits
|
|
$
|
7,127,866
|
|
|
$
|
6,986,206
|
|
|
$
|
6,737,969
|
|
|
$
|
6,771,755
|
|
|
$
|
6,619,944
|
|
Shareholders'
equity
|
|
$
|
1,242,128
|
|
|
$
|
1,254,136
|
|
|
$
|
1,236,214
|
|
|
$
|
1,244,443
|
|
|
$
|
1,228,175
|
|
Nonperforming,
assets
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
loans
|
|
$
|
21,464
|
|
|
$
|
19,080
|
|
|
$
|
25,746
|
|
|
$
|
31,828
|
|
|
$
|
31,352
|
|
OREO and
OPPO
|
|
13,738
|
|
|
19,475
|
|
|
20,665
|
|
|
23,347
|
|
|
22,225
|
|
Total nonperforming
assets
|
|
$
|
35,202
|
|
|
$
|
38,555
|
|
|
$
|
46,411
|
|
|
$
|
55,175
|
|
|
$
|
53,577
|
|
Nonperforming loans
to period-end loans
|
|
0.37
|
%
|
|
0.33
|
%
|
|
0.46
|
%
|
|
0.58
|
%
|
|
0.58
|
%
|
Nonperforming assets
to period-end assets
|
|
0.39
|
%
|
|
0.44
|
%
|
|
0.54
|
%
|
|
0.65
|
%
|
|
0.62
|
%
|
Allowance for loan
and lease losses to period-end loans
|
|
1.17
|
%
|
|
1.20
|
%
|
|
1.23
|
%
|
|
1.29
|
%
|
|
1.28
|
%
|
Net loan
charge-offs
|
|
$
|
3,226
|
|
|
$
|
3,039
|
|
|
$
|
3,179
|
|
|
$
|
544
|
|
|
$
|
10
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
Columbia
Banking System, Inc.
|
Three Months
Ended
|
|
Twelve Months
Ended
|
Unaudited
|
December
31,
|
|
December
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(in thousands
except per share)
|
Interest
Income
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
71,358
|
|
|
$
|
69,831
|
|
|
$
|
286,166
|
|
|
$
|
268,279
|
|
Taxable
securities
|
|
8,516
|
|
|
7,075
|
|
|
30,774
|
|
|
28,754
|
|
Tax-exempt
securities
|
|
2,870
|
|
|
2,917
|
|
|
11,842
|
|
|
10,830
|
|
Deposits in
banks
|
|
25
|
|
|
74
|
|
|
109
|
|
|
179
|
|
Total interest
income
|
|
82,769
|
|
|
79,897
|
|
|
328,891
|
|
|
308,042
|
|
Interest
Expense
|
|
|
|
|
|
|
|
|
Deposits
|
|
733
|
|
|
811
|
|
|
2,977
|
|
|
3,005
|
|
Federal Home Loan
Bank advances
|
|
83
|
|
|
87
|
|
|
474
|
|
|
396
|
|
Other
borrowings
|
|
134
|
|
|
235
|
|
|
553
|
|
|
593
|
|
Total interest
expense
|
|
950
|
|
|
1,133
|
|
|
4,004
|
|
|
3,994
|
|
Net Interest
Income
|
|
81,819
|
|
|
78,764
|
|
|
324,887
|
|
|
304,048
|
|
Provision for loan
and lease losses
|
|
2,349
|
|
|
1,708
|
|
|
8,591
|
|
|
6,727
|
|
Net interest income
after provision for loan and lease losses
|
|
79,470
|
|
|
77,056
|
|
|
316,296
|
|
|
297,321
|
|
Noninterest
Income
|
|
|
|
|
|
|
|
|
Service charges and
other fees
|
|
15,245
|
|
|
14,575
|
|
|
61,881
|
|
|
55,555
|
|
Merchant services
fees
|
|
2,173
|
|
|
1,961
|
|
|
8,975
|
|
|
7,975
|
|
Investment securities
gains, net
|
|
281
|
|
|
—
|
|
|
1,581
|
|
|
552
|
|
Bank owned life
insurance
|
|
1,071
|
|
|
926
|
|
|
4,441
|
|
|
3,823
|
|
Change in FDIC
loss-sharing asset
|
|
(1,031)
|
|
|
(5,304)
|
|
|
(4,010)
|
|
|
(19,989)
|
|
Other
|
|
7,006
|
|
|
3,027
|
|
|
18,605
|
|
|
11,834
|
|
Total noninterest
income
|
|
24,745
|
|
|
15,185
|
|
|
91,473
|
|
|
59,750
|
|
Noninterest
Expense
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
|
36,689
|
|
|
35,903
|
|
|
149,410
|
|
|
130,864
|
|
Occupancy
|
|
10,037
|
|
|
8,024
|
|
|
34,818
|
|
|
32,300
|
|
Merchant
processing
|
|
1,058
|
|
|
948
|
|
|
4,204
|
|
|
4,006
|
|
Advertising and
promotion
|
|
1,233
|
|
|
1,218
|
|
|
4,713
|
|
|
3,964
|
|
Data
processing
|
|
4,399
|
|
|
3,900
|
|
|
17,421
|
|
|
15,369
|
|
Legal and
professional fees
|
|
2,081
|
|
|
4,012
|
|
|
9,608
|
|
|
11,389
|
|
Taxes, licenses and
fees
|
|
1,392
|
|
|
1,165
|
|
|
5,395
|
|
|
4,552
|
|
Regulatory
premiums
|
|
1,180
|
|
|
1,105
|
|
|
4,806
|
|
|
4,549
|
|
Net cost (benefit) of
operation of other real estate owned
|
|
(60)
|
|
|
162
|
|
|
(1,629)
|
|
|
(1,045)
|
|
Amortization of
intangibles
|
|
1,652
|
|
|
1,777
|
|
|
6,882
|
|
|
6,293
|
|
Other
|
|
7,216
|
|
|
5,940
|
|
|
30,521
|
|
|
27,045
|
|
Total noninterest
expense
|
|
66,877
|
|
|
64,154
|
|
|
266,149
|
|
|
239,286
|
|
Income before income
taxes
|
|
37,338
|
|
|
28,087
|
|
|
141,620
|
|
|
117,785
|
|
Provision for income
taxes
|
|
10,598
|
|
|
9,167
|
|
|
42,793
|
|
|
36,211
|
|
Net
Income
|
|
$
|
26,740
|
|
|
$
|
18,920
|
|
|
$
|
98,827
|
|
|
$
|
81,574
|
|
Earnings per common
share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.46
|
|
|
$
|
0.34
|
|
|
$
|
1.71
|
|
|
$
|
1.53
|
|
Diluted
|
|
$
|
0.46
|
|
|
$
|
0.34
|
|
|
$
|
1.71
|
|
|
$
|
1.52
|
|
Dividends paid per
common share
|
|
$
|
0.36
|
|
|
$
|
0.30
|
|
|
$
|
1.34
|
|
|
$
|
0.94
|
|
Weighted average
number of common shares outstanding
|
|
57,057
|
|
|
55,137
|
|
|
57,019
|
|
|
52,618
|
|
Weighted average
number of diluted common shares outstanding
|
|
57,070
|
|
|
55,272
|
|
|
57,032
|
|
|
53,183
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
Columbia
Banking System, Inc.
|
|
|
|
Unaudited
|
December
31,
|
|
December
31,
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
(in
thousands)
|
ASSETS
|
|
|
Cash and due from
banks
|
|
$
|
166,929
|
|
|
$
|
171,221
|
|
Interest-earning
deposits with banks
|
|
8,373
|
|
|
16,949
|
|
Total cash and cash
equivalents
|
|
175,302
|
|
|
188,170
|
|
Securities available
for sale at fair value (amortized cost of $2,157,610 and
$2,087,069, respectively)
|
|
2,157,694
|
|
|
2,098,257
|
|
Federal Home Loan
Bank stock at cost
|
|
12,722
|
|
|
33,365
|
|
Loans held for
sale
|
|
4,509
|
|
|
1,116
|
|
Loans, net of
unearned income of ($42,373) and ($59,374), respectively
|
|
5,815,027
|
|
|
5,445,378
|
|
Less: allowance for
loan and lease losses
|
|
68,172
|
|
|
69,569
|
|
Loans, net
|
|
5,746,855
|
|
|
5,375,809
|
|
FDIC loss-sharing
asset
|
|
6,568
|
|
|
15,174
|
|
Interest
receivable
|
|
27,877
|
|
|
27,802
|
|
Premises and
equipment, net
|
|
164,239
|
|
|
172,090
|
|
Other real estate
owned
|
|
13,738
|
|
|
22,190
|
|
Goodwill
|
|
382,762
|
|
|
382,537
|
|
Other intangible
assets, net
|
|
23,577
|
|
|
30,459
|
|
Other
assets
|
|
238,539
|
|
|
231,877
|
|
Total assets
|
|
$
|
8,954,382
|
|
|
$
|
8,578,846
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Deposits:
|
|
|
|
|
Noninterest-bearing
|
|
$
|
3,507,358
|
|
|
$
|
2,651,373
|
|
Interest-bearing
|
|
3,931,471
|
|
|
4,273,349
|
|
Total
deposits
|
|
7,438,829
|
|
|
6,924,722
|
|
Federal Home Loan
Bank advances
|
|
68,531
|
|
|
216,568
|
|
Securities sold under
agreements to repurchase
|
|
99,699
|
|
|
105,080
|
|
Other
borrowings
|
|
|
|
|
—
|
|
|
8,248
|
|
Other
liabilities
|
|
105,195
|
|
|
96,053
|
|
Total
liabilities
|
|
7,712,254
|
|
|
7,350,671
|
|
Commitments and
contingent liabilities
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
Preferred stock (no
par value)
|
(in
thousands)
|
|
|
|
|
Authorized
shares
|
2,000
|
|
|
2,000
|
|
|
|
|
|
Issued and
outstanding
|
9
|
|
|
9
|
|
|
2,217
|
|
|
2,217
|
|
Common stock (no par
value)
|
|
|
|
|
|
|
|
Authorized
shares
|
115,000
|
|
|
63,033
|
|
|
|
|
|
Issued and
outstanding
|
57,724
|
|
|
57,437
|
|
|
990,281
|
|
|
985,839
|
|
Retained
earnings
|
|
255,925
|
|
|
234,498
|
|
Accumulated other
comprehensive income (loss)
|
|
(6,295)
|
|
|
5,621
|
|
Total shareholders'
equity
|
|
1,242,128
|
|
|
1,228,175
|
|
Total liabilities and
shareholders' equity
|
|
$
|
8,954,382
|
|
|
$
|
8,578,846
|
|
AVERAGE
BALANCES AND RATES
|
|
|
|
|
|
|
Columbia
Banking System, Inc.
|
|
|
|
|
|
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Three Months Ended
December 31,
|
|
|
2015
|
|
2014
|
|
|
Average
Balances
|
|
Interest
Earned / Paid
|
|
Average
Rate
|
|
Average
Balances
|
|
Interest
Earned / Paid
|
|
Average
Rate
|
|
|
(dollars in
thousands)
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans,
net (1)(2)
|
|
$
|
5,762,048
|
|
|
$
|
72,322
|
|
|
5.02
|
%
|
|
$
|
5,168,761
|
|
|
$
|
70,463
|
|
|
5.45
|
%
|
Taxable
securities
|
|
1,686,594
|
|
|
8,516
|
|
|
2.02
|
%
|
|
1,491,931
|
|
|
7,075
|
|
|
1.90
|
%
|
Tax exempt securities
(2)
|
|
450,109
|
|
|
4,417
|
|
|
3.93
|
%
|
|
426,759
|
|
|
4,577
|
|
|
4.29
|
%
|
Interest-earning
deposits with banks
|
|
38,557
|
|
|
25
|
|
|
0.26
|
%
|
|
111,992
|
|
|
74
|
|
|
0.26
|
%
|
Total
interest-earning assets
|
|
7,937,308
|
|
|
$
|
85,280
|
|
|
4.30
|
%
|
|
7,199,443
|
|
|
$
|
82,189
|
|
|
4.57
|
%
|
Other earning
assets
|
|
153,298
|
|
|
|
|
|
|
140,135
|
|
|
|
|
|
Noninterest-earning
assets
|
|
815,137
|
|
|
|
|
|
|
812,885
|
|
|
|
|
|
Total
assets
|
|
$
|
8,905,743
|
|
|
|
|
|
|
$
|
8,152,463
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
Certificates of
deposit
|
|
$
|
460,858
|
|
|
$
|
179
|
|
|
0.16
|
%
|
|
$
|
497,704
|
|
|
$
|
284
|
|
|
0.23
|
%
|
Savings
accounts
|
|
653,738
|
|
|
17
|
|
|
0.01
|
%
|
|
591,137
|
|
|
18
|
|
|
0.01
|
%
|
Interest-bearing
demand
|
|
920,021
|
|
|
161
|
|
|
0.07
|
%
|
|
1,260,231
|
|
|
138
|
|
|
0.04
|
%
|
Money market
accounts
|
|
1,898,384
|
|
|
376
|
|
|
0.08
|
%
|
|
1,825,387
|
|
|
371
|
|
|
0.08
|
%
|
Total
interest-bearing deposits
|
|
3,933,001
|
|
|
733
|
|
|
0.07
|
%
|
|
4,174,459
|
|
|
811
|
|
|
0.08
|
%
|
Federal Home Loan
Bank advances
|
|
18,915
|
|
|
83
|
|
|
1.76
|
%
|
|
24,823
|
|
|
87
|
|
|
1.40
|
%
|
Other
borrowings
|
|
79,298
|
|
|
134
|
|
|
0.68
|
%
|
|
82,991
|
|
|
235
|
|
|
1.13
|
%
|
Total
interest-bearing liabilities
|
|
4,031,214
|
|
|
$
|
950
|
|
|
0.09
|
%
|
|
4,282,273
|
|
|
$
|
1,133
|
|
|
0.11
|
%
|
Noninterest-bearing
deposits
|
|
3,507,627
|
|
|
|
|
|
|
2,584,800
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
107,785
|
|
|
|
|
|
|
100,044
|
|
|
|
|
|
Shareholders'
equity
|
|
1,259,117
|
|
|
|
|
|
|
1,185,346
|
|
|
|
|
|
Total
liabilities & shareholders' equity
|
|
$
|
8,905,743
|
|
|
|
|
|
|
$
|
8,152,463
|
|
|
|
|
|
Net interest income
(tax equivalent)
|
|
|
|
|
|
$
|
84,330
|
|
|
|
|
|
|
$
|
81,056
|
|
|
|
Net interest margin
(tax equivalent)
|
|
|
|
|
|
|
|
|
|
4.25
|
%
|
|
|
|
|
|
4.50
|
%
|
|
|
(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 $1.1 million for the
three months ended December 31, 2015 and $1.2 million for the
three months ended December 31, 2014. The incremental
accretion on acquired loans was $6.0 million and $8.8 million for
the three months ended December 31, 2015 and 2014,
respectively.
|
(2)
|
Tax-exempt income is
calculated on a tax equivalent basis. The tax equivalent yield
adjustment to interest earned on loans was $964 thousand and $632
thousand for the three months ended December 31, 2015 and
2014, respectively. The tax equivalent yield adjustment to interest
earned on tax exempt securities was $1.5 million and $1.7 million
for the three months ended December 31, 2015 and 2014,
respectively.
|
AVERAGE
BALANCES AND RATES
|
|
|
|
|
Columbia
Banking System, Inc.
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended December 31,
|
|
Twelve Months
Ended December 31,
|
|
|
2015
|
|
2014
|
|
|
Average
Balances
|
|
Interest
Earned / Paid
|
|
Average
Rate
|
|
Average
Balances
|
|
Interest
Earned / Paid
|
|
Average
Rate
|
|
|
(dollars in
thousands)
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net
(1)(3)
|
|
$
|
5,609,261
|
|
|
$
|
289,450
|
|
|
5.16
|
%
|
|
$
|
4,782,369
|
|
|
$
|
270,210
|
|
|
5.65
|
%
|
Taxable securities
(2)
|
|
1,577,711
|
|
|
30,774
|
|
|
1.95
|
%
|
|
1,332,144
|
|
|
28,754
|
|
|
2.16
|
%
|
Tax exempt securities
(3)
|
|
454,148
|
|
|
18,219
|
|
|
4.01
|
%
|
|
376,431
|
|
|
16,997
|
|
|
4.52
|
%
|
Interest-earning
deposits with banks
|
|
44,614
|
|
|
109
|
|
|
0.24
|
%
|
|
70,103
|
|
|
179
|
|
|
0.26
|
%
|
Total
interest-earning assets
|
|
7,685,734
|
|
|
$
|
338,552
|
|
|
4.40
|
%
|
|
6,561,047
|
|
|
$
|
316,140
|
|
|
4.82
|
%
|
Other earning
assets
|
|
149,476
|
|
|
|
|
|
|
132,419
|
|
|
|
|
|
Noninterest-earning
assets
|
|
820,033
|
|
|
|
|
|
|
774,625
|
|
|
|
|
|
Total
assets
|
|
$
|
8,655,243
|
|
|
|
|
|
|
$
|
7,468,091
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
Certificates of
deposit
|
|
$
|
483,193
|
|
|
$
|
868
|
|
|
0.18
|
%
|
|
$
|
485,487
|
|
|
$
|
1,259
|
|
|
0.26
|
%
|
Savings
accounts
|
|
637,464
|
|
|
70
|
|
|
0.01
|
%
|
|
543,303
|
|
|
60
|
|
|
0.01
|
%
|
Interest-bearing
demand
|
|
982,491
|
|
|
612
|
|
|
0.06
|
%
|
|
1,204,584
|
|
|
478
|
|
|
0.04
|
%
|
Money market
accounts
|
|
1,834,733
|
|
|
1,427
|
|
|
0.08
|
%
|
|
1,668,150
|
|
|
1,208
|
|
|
0.07
|
%
|
Total
interest-bearing deposits
|
|
3,937,881
|
|
|
2,977
|
|
|
0.08
|
%
|
|
3,901,524
|
|
|
3,005
|
|
|
0.08
|
%
|
Federal Home Loan
Bank advances
|
|
70,678
|
|
|
474
|
|
|
0.67
|
%
|
|
44,876
|
|
|
396
|
|
|
0.88
|
%
|
Other
borrowings
|
|
88,924
|
|
|
553
|
|
|
0.62
|
%
|
|
39,617
|
|
|
593
|
|
|
1.50
|
%
|
Total
interest-bearing liabilities
|
|
4,097,483
|
|
|
$
|
4,004
|
|
|
0.10
|
%
|
|
3,986,017
|
|
|
$
|
3,994
|
|
|
0.10
|
%
|
Noninterest-bearing
deposits
|
|
3,208,947
|
|
|
|
|
|
|
2,285,818
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
|
101,861
|
|
|
|
|
|
|
86,675
|
|
|
|
|
|
Shareholders'
equity
|
|
1,246,952
|
|
|
|
|
|
|
1,109,581
|
|
|
|
|
|
Total
liabilities & shareholders' equity
|
|
$
|
8,655,243
|
|
|
|
|
|
|
$
|
7,468,091
|
|
|
|
|
|
Net interest income
(tax equivalent)
|
|
|
|
|
|
$
|
334,548
|
|
|
|
|
|
|
$
|
312,146
|
|
|
|
Net interest margin
(tax equivalent)
|
|
|
|
|
|
|
|
|
|
4.35
|
%
|
|
|
|
|
|
4.76
|
%
|
|
|
(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 $4.9 million and
$4.5 million for the twelve months ended December 31, 2015 and
2014, respectively. The incremental accretion on acquired loans was
$27.2 million and $41.8 million for the twelve months ended
December 31, 2015 and 2014, respectively.
|
(2)
|
During the twelve
months ended December 31, 2014 the Company recorded a $2.6 million
reversal of premium amortization, which increased interest income
on taxable securities.
|
(3)
|
Tax-exempt income is
calculated on a tax equivalent basis. The tax equivalent yield
adjustment to interest earned on loans was $3.3 million and $1.9
million for the twelve months ended December 31, 2015 and
2014, respectively. The tax equivalent yield adjustment to interest
earned on tax exempt securities was $6.4 million and $6.2 million
for the twelve months ended December 31, 2015 and 2014,
respectively.
|
Non-GAAP Financial Measures
The Company considers its operating net interest margin and
operating efficiency ratios to be important measurements as they
more closely reflect the ongoing operating performance of the
Company. Despite the importance 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. Also,
there may be limits in the usefulness of these measures to
investors. As a result, 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
December 31,
|
|
Twelve Months
Ended December 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Operating net
interest margin non-GAAP reconciliation:
|
|
(dollars in
thousands)
|
Net interest income
(tax equivalent) (1)
|
|
$
|
84,330
|
|
|
$
|
81,056
|
|
|
$
|
334,548
|
|
|
$
|
312,146
|
|
Adjustments to arrive
at operating net interest income (tax equivalent):
|
|
|
|
|
|
|
|
|
Incremental accretion
income on FDIC purchased credit impaired loans
|
|
(2,200)
|
|
|
(3,796)
|
|
|
(9,096)
|
|
|
(20,224)
|
|
Incremental accretion
income on other FDIC acquired loans
|
|
(68)
|
|
|
(10)
|
|
|
(234)
|
|
|
(484)
|
|
Incremental accretion
income on other acquired loans
|
|
(3,746)
|
|
|
(4,957)
|
|
|
(17,862)
|
|
|
(21,093)
|
|
Premium amortization
on acquired securities
|
|
2,253
|
|
|
2,490
|
|
|
10,217
|
|
|
7,123
|
|
Correction of
immaterial error - securities premium amortization
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,622)
|
|
Interest reversals on
nonaccrual loans
|
|
582
|
|
|
189
|
|
|
1,713
|
|
|
1,291
|
|
Operating net
interest income (tax equivalent) (1)
|
|
$
|
81,151
|
|
|
$
|
74,972
|
|
|
$
|
319,286
|
|
|
$
|
276,137
|
|
Average interest
earning assets
|
|
$
|
7,937,308
|
|
|
$
|
7,199,443
|
|
|
$
|
7,685,734
|
|
|
$
|
6,561,047
|
|
Net interest margin
(tax equivalent) (1)
|
|
4.25
|
%
|
|
4.50
|
%
|
|
4.35
|
%
|
|
4.76
|
%
|
Operating net
interest margin (tax equivalent) (1)
|
|
4.09
|
%
|
|
4.17
|
%
|
|
4.15
|
%
|
|
4.21
|
%
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Operating
efficiency ratio non-GAAP reconciliation:
|
|
(dollars in
thousands)
|
Noninterest expense
(numerator A)
|
|
$
|
66,877
|
|
|
$
|
64,154
|
|
|
$
|
266,149
|
|
|
$
|
239,286
|
|
Adjustments to arrive
at operating noninterest expense:
|
|
|
|
|
|
|
|
|
Acquisition-related
expenses
|
|
(1,872)
|
|
|
(4,556)
|
|
|
(10,917)
|
|
|
(9,432)
|
|
Net benefit of
operation of OREO and OPPO
|
|
150
|
|
|
(160)
|
|
|
1,724
|
|
|
1,182
|
|
FDIC clawback
liability expense
|
|
(812)
|
|
|
8
|
|
|
(979)
|
|
|
(294)
|
|
Loss on asset
disposals
|
|
(52)
|
|
|
(6)
|
|
|
(433)
|
|
|
(563)
|
|
State of Washington
Business and Occupation ("B&O") taxes
|
|
(1,294)
|
|
|
(1,067)
|
|
|
(4,962)
|
|
|
(4,183)
|
|
Operating noninterest
expense (numerator B)
|
|
$
|
62,997
|
|
|
$
|
58,373
|
|
|
$
|
250,582
|
|
|
$
|
225,996
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(tax equivalent) (1)
|
|
$
|
84,330
|
|
|
$
|
81,056
|
|
|
$
|
334,548
|
|
|
$
|
312,146
|
|
Noninterest
income
|
|
24,745
|
|
|
15,185
|
|
|
91,473
|
|
|
59,750
|
|
Bank owned life
insurance tax equivalent adjustment
|
|
576
|
|
|
528
|
|
|
2,391
|
|
|
2,177
|
|
Total revenue (tax
equivalent) (denominator A)
|
|
$
|
109,651
|
|
|
$
|
96,769
|
|
|
$
|
428,412
|
|
|
$
|
374,073
|
|
|
|
|
|
|
|
|
|
|
Operating net
interest income (tax equivalent) (1)
|
|
$
|
81,151
|
|
|
$
|
74,972
|
|
|
$
|
319,286
|
|
|
$
|
276,137
|
|
Adjustments to arrive
at operating noninterest income (tax equivalent):
|
|
|
|
|
|
|
|
|
Investment securities
gains, net
|
|
(281)
|
|
|
—
|
|
|
(1,581)
|
|
|
(552)
|
|
Gain on asset
disposals
|
|
(4)
|
|
|
(8)
|
|
|
(129)
|
|
|
(86)
|
|
Gain related to
branch sale deposit premium
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(565)
|
|
Mortgage loan
repurchase liability adjustment
|
|
(3,147)
|
|
|
—
|
|
|
(3,147)
|
|
|
—
|
|
Change in FDIC
loss-sharing asset
|
|
1,031
|
|
|
5,304
|
|
|
4,010
|
|
|
19,989
|
|
Operating noninterest
income (tax equivalent)
|
|
22,920
|
|
|
21,009
|
|
|
93,017
|
|
|
80,713
|
|
Total operating
revenue (tax equivalent) (denominator B)
|
|
$
|
104,071
|
|
|
$
|
95,981
|
|
|
$
|
412,303
|
|
|
$
|
356,850
|
|
Efficiency ratio (tax
equivalent) (numerator A/denominator A)
|
|
60.99
|
%
|
|
66.30
|
%
|
|
62.12
|
%
|
|
63.97
|
%
|
Operating efficiency
ratio (tax equivalent) (numerator B/denominator B)
|
|
60.53
|
%
|
|
60.82
|
%
|
|
60.78
|
%
|
|
63.33
|
%
|
|
__________
|
(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
$2.5 million and $2.3 million for the three months
ended December 31, 2015 and 2014, respectively,
and an addition to net interest income of $9.7 million and $8.1
million for the twelve months ended December 31,
2015 and 2014, respectively.
|
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SOURCE Columbia Banking System, Inc.