TACOMA,
Wash., July 25, 2024 /PRNewswire/ --
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$120 million
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$140 million
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$0.57
|
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$0.67
|
|
Net income
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Operating net income
1
|
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Earnings per diluted
common
share
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Operating earnings per
diluted
common share 1
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CEO
Commentary
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"Our second quarter
results reflect continued progress on our targeted actions to
improve our financial performance and drive shareholder value,"
said Clint Stein, President and CEO. "The successful execution of
identified changes following enterprise-wide evaluations resulted
in a lower recurring expense run rate and increased stabilization
in the cost of customer deposits during the second quarter. While
we are encouraged by the early success of our near-term
initiatives, we have not diminished our laser focus on regaining
Columbia's placement as a top-performing bank across financial
metrics. Longer-term initiatives will further enhance our growth
and profitability as we strive toward long-term, consistent,
repeatable performance."
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–Clint Stein,
President and CEO of Columbia Banking System, Inc.
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2Q24 HIGHLIGHTS
(COMPARED TO 1Q24)
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Net Interest
Income and
NIM
|
• Net
interest income expanded by $4 million on a linked-quarter basis
due to higher income earned on loans and investment securities,
including increased accretion income, partially offset by higher
deposit costs.
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|
|
• Net
interest margin was 3.56%, up 4 basis points from the prior quarter
as the increase in earning asset yields outpaced the increase in
the cost of interest-bearing liabilities given targeted actions
taken to stabilize the cost of customer deposits.
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Non-Interest
Income and
Expense
|
•
Non-interest income decreased by $6 million due to the quarterly
fluctuation in cumulative fair value accounting and hedges.
Excluding these items, non-interest income was stable.
|
|
|
•
Non-interest expense decreased by $8 million due to lower
compensation and CDI amortization, modest decreases in other
categories, and the first quarter's larger FDIC special assessment.
The effect was partially offset by restructuring
expense.
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Credit
Quality
|
• Net
charge-offs were 0.32% of average loans and leases (annualized),
compared to 0.47% in the prior quarter.
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|
|
• Provision
expense of $32 million compares to $17 million in the prior
quarter, which benefited from the recalibration of the commercial
CECL model.
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•
Non-performing assets to total assets was 0.30%, compared to 0.28%
as of March 31, 2024.
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Capital
|
• Estimated
total risk-based capital ratio of 12.1% and estimated common equity
tier 1 risk-based capital ratio of 9.9%.
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• Declared
a quarterly cash dividend of $0.36 per common share on May 13,
2024, which was paid June 10, 2024.
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Notable
Items
|
•
Substantially completed our announced near-term initiatives related
to operational effectiveness.
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• Opened
our first retail location in Phoenix, Arizona and our first
Financial Hub in Southern California, replacing an existing
branch.
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2Q24 KEY FINANCIAL
DATA
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PERFORMANCE
METRICS
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2Q24
|
|
1Q24
|
|
2Q23
|
|
Return on average
assets
|
0.93 %
|
|
0.96 %
|
|
1.00 %
|
|
Return on average
common equity
|
9.85 %
|
|
10.01 %
|
|
10.84 %
|
|
Return on average
tangible common equity 1
|
14.55 %
|
|
14.82 %
|
|
16.63 %
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|
Operating return on
average assets 1
|
1.08 %
|
|
1.04 %
|
|
1.27 %
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|
Operating return on
average common equity 1
|
11.47 %
|
|
10.89 %
|
|
13.77 %
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|
Operating return on
average tangible common equity 1
|
16.96 %
|
|
16.12 %
|
|
21.13 %
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|
Net interest
margin
|
3.56 %
|
|
3.52 %
|
|
3.93 %
|
|
Efficiency
ratio
|
59.02 %
|
|
60.57 %
|
|
62.60 %
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|
Operating efficiency
ratio, as adjusted 1
|
53.56 %
|
|
56.97 %
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54.04 %
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INCOME
STATEMENT
($ in 000s, excl. per
share data)
|
2Q24
|
|
1Q24
|
|
2Q23
|
|
Net interest
income
|
$427,449
|
|
$423,362
|
|
$483,975
|
|
Provision for credit
losses
|
$31,820
|
|
$17,136
|
|
$16,014
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Non-interest
income
|
$44,703
|
|
$50,357
|
|
$39,678
|
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Non-interest
expense
|
$279,244
|
|
$287,516
|
|
$328,559
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|
Pre-provision net
revenue 1
|
$192,908
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|
$186,203
|
|
$195,094
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Operating pre-provision
net revenue 1
|
$219,390
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$200,683
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$243,114
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Earnings per common
share - diluted
|
$0.57
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|
$0.59
|
|
$0.64
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Operating earnings per
common share - diluted 1
|
$0.67
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|
$0.65
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|
$0.81
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Dividends paid per
share
|
$0.36
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|
$0.36
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|
$0.36
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|
|
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BALANCE
SHEET
|
2Q24
|
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1Q24
|
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2Q23
|
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Total assets
|
$52.0B
|
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$52.2B
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$53.6B
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Loans and
leases
|
$37.7B
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|
$37.6B
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|
$37.0B
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Deposits
|
$41.5B
|
|
$41.7B
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$40.8B
|
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Book value per common
share
|
$23.76
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|
$23.68
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$23.16
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Tangible book value per
share 1
|
$16.26
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|
$16.03
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$15.02
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Organizational Update
Columbia Banking System, Inc.
("Columbia," the "Company," "we,"
or "our") completed an enterprise-wide evaluation of our operations
during the first quarter of 2024. The full-scale review resulted in
consolidated positions, simplified reporting and organizational
structures, and an improved profitability outlook. Through
June 30, 2024, 91% of the
identified cost savings have been realized, and we expect to carry
out the remaining actions during the third quarter of 2024. Please
refer to the Q2 2024 Earnings Presentation for additional
details.
Columbia's primary subsidiary,
Umpqua Bank ("Umpqua"), opened its
first retail location in Phoenix,
Arizona and its first Financial Hub in Southern California, replacing an existing
branch. Umpqua has closed four
branches on a net basis during 2024 as strategic consolidations
offset new locations in targeted growth markets.
On February 28, 2023, Columbia completed its merger with Umpqua
Holdings Corporation ("UHC"), combining the two premier banks in
the Northwest to create one of the largest banks headquartered in
the West (the "merger"). Columbia's financial results for any periods
ended prior to February 28, 2023
reflect UHC results only on a standalone basis. In addition,
Columbia's reported financial
results for the six months ended June 30,
2023 reflect UHC financial results only until the closing of
the merger after the close of business on February 28, 2023. As a result of these two
factors, Columbia's financial
results for the six months ended June 30,
2024 may not be directly comparable to prior reported
periods. Under the reverse acquisition method of accounting, the
assets and liabilities of Columbia
as of February 28, 2023 ("historical
Columbia") were recorded at their
respective fair values.
Net Interest Income
Net interest income was
$427 million for the second quarter
of 2024, up $4 million from the prior
quarter. The increase reflects higher income earned on loans and
investment securities, including accretion income, and lower
borrowing costs. The favorable change was only partially offset by
higher deposit costs as targeted pricing actions limited the
increase in Columbia's cost of
interest-bearing deposits.
Columbia's net interest margin
was 3.56% for the second quarter of 2024, up 4 basis points from
3.52% for the first quarter of 2024. The expansion was driven by
higher yields on loans and investment securities, including the
benefit of accretion income, which offset a modest increase in the
cost of interest-bearing deposits following a comprehensive review
undertaken during the first quarter of 2024 related to how
Columbia evaluates and approves
deposit pricing. The cost of interest-bearing deposits increased 9
basis points on a linked-quarter basis, and was 2.97% for both the
three months ended June 30, 2024 and
as of June 30, 2024, which compares
to 3.00% for the month of June. "Actions taken during the
first quarter resulted in enhanced pricing visibility, which
contributed to stability in interest-bearing core deposit rates
during the second quarter," commented Chris
Merrywell, President of Umpqua Bank. "Our teams have done an
exceptional job leading with service, not price, as they meet with
current and prospective customers."
Columbia's cost of
interest-bearing liabilities increased 6 basis points on a
linked-quarter basis, and was 3.31% for both the three months ended
June 30, 2024 and as of June 30, 2024, which compares to 3.34% for the
month of June. Please refer to the Q2 2024 Earnings Presentation
for additional net interest margin change details and interest rate
sensitivity information as well as to our non-GAAP disclosures in
this press release for the impact of purchase accounting accretion
and amortization on individual line items.
Non-interest Income
Non-interest income was
$45 million for the second quarter of
2024, down $6 million from the prior
quarter. The decline was driven by quarterly fluctuations in fair
value adjustments and mortgage servicing rights ("MSR") hedging
activity, which collectively resulted in a net fair value loss of
$10 million in the second quarter
compared to a net fair value loss of $4
million in the first quarter, as detailed in our non-GAAP
disclosures. Excluding these items, non-interest income was stable
between periods, with favorable trends in card activity, financial
services and trust revenue, and mortgage banking.
Non-interest Expense
Non-interest expense was
$279 million for the second quarter
of 2024, down $8 million from the
prior quarter level. Excluding merger and restructuring expense,
exit and disposal costs, and accruals for the FDIC special
assessment, non-interest expense was $263
million2, down $14
million from the prior quarter due to ongoing strategic
actions taken to reduce our non-interest expense run rate, lower
CDI amortization following the one-year anniversary of the merger,
and a $7.7 million reversal of prior
compensation-related accruals. Please refer to the Q2 2024 Earnings
Presentation for additional expense details.
Balance Sheet
Total consolidated assets were
$52.0 billion as of June 30,
2024, down slightly from $52.2
billion as of March 31, 2024. Cash and cash equivalents
were $2.1 billion as of June 30,
2024, also down slightly from $2.2 billion as of
March 31, 2024. Including secured off-balance sheet lines of
credit, total available liquidity was $19.1
billion as of June 30, 2024, representing 37% of total
assets, 46% of total deposits, and 140% of uninsured deposits.
Available-for-sale securities, which are held on balance sheet at
fair value, were $8.5 billion as of
June 30, 2024, a decrease of $114
million relative to March 31, 2024, due to paydowns and
a decline in the fair value of the portfolio. Please refer to the
Q2 2024 Earnings Presentation for additional details related to our
securities portfolio and liquidity position.
Gross loans and leases were $37.7
billion as of June 30, 2024, an increase of
$68 million relative to
March 31, 2024. Columbia sold
loans with a book balance of $95
million during the second quarter of 2024, including
$80 million in residential mortgage
loans held on the balance sheet at fair value. Excluding these
actions, the loan portfolio increased by 2% on an annualized basis
during the quarter due primarily to commercial line utilization and
construction project activity. Please refer to the Q2 2024 Earnings
Presentation for additional details related to our loan portfolio,
which include underwriting characteristics, the composition of our
commercial portfolios, and disclosure related to our office
portfolio.
Total deposits were $41.5 billion
as of June 30, 2024, a decrease of $183
million relative to March 31, 2024. Customer deposits
drove the quarter's decrease due in part to anticipated customer
tax payments, partially offset by targeted campaigns run by our
branch network. "Our teams wrapped up a successful small business
account campaign in April, generating nearly 6,000 accounts
and $345 million in new deposits to
the bank, 27% of which were non-interest-bearing balances," stated
Mr. Merrywell. "We use a collaborative approach to find needs-based
solutions for our customers—and these campaigns do not include
promotional pricing." Please refer to the Q2 2024 Earnings
Presentation for additional details related to deposit
characteristics and flows.
Credit Quality
The allowance for credit losses was
$439 million, or 1.16% of loans and
leases, essentially unchanged from March 31, 2024. The
provision for credit losses was $32
million for the second quarter of 2024, and it reflects
credit migration trends and changes in the economic forecasts used
in credit models.
Net charge-offs were 0.32% of average loans and leases
(annualized) for the second quarter of 2024, compared to 0.47% for
the first quarter of 2024. Net charge-offs in the FinPac portfolio
were $25 million in the second
quarter, largely unchanged from the first quarter. Net charge-offs
excluding the FinPac portfolio were only $6
million in the second quarter. As of June 30, 2024,
non-accrual loans were $93 million
compared to $99 million as of
March 31, 2024, due to lower balances
in commercial portfolios. Non-performing assets were $156 million, or 0.30% of total assets, as of
June 30, 2024, compared to
$144 million, or 0.28% of total
assets, as of March 31, 2024. The quarter's increase in loans
and leases past due 90+ days and accruing, which accounted for the
increase in nonperforming assets, was driven in part by the
expiration of COVID-related designations within the residential
mortgage portfolio. After accounting for government guarantees,
non-performing assets declined by $9
million during the second quarter due primarily to lower
balances in the FinPac portfolio. Please refer to the Q2 2024
Earnings Presentation for additional details related to the
allowance for credit losses and other credit trends.
Capital
Columbia's
book value per common share was $23.76 as of June 30,
2024, compared to $23.68 as of
March 31, 2024. The linked-quarter
change reflects organic net capital generation, partially offset by
a change in accumulated other comprehensive (loss) income ("AOCI")
to $(456) million at June 30, 2024, compared to $(426) million at the prior quarter-end. The
change in AOCI is due primarily to an increase in the tax-effected
net unrealized loss on available-for-sale securities to
$442 million as of June 30, 2024, compared to $413 million as of March
31, 2024. Tangible book value per common share3
was $16.26 as of June 30, 2024, compared to $16.03 as of March 31,
2024.
Columbia's estimated total
risk-based capital ratio was 12.1% and its estimated common equity
tier 1 risk-based capital ratio was 9.9% as of June 30, 2024,
compared to 12.0% and 9.8%, respectively, as of March 31,
2024. Columbia remains above
current "well-capitalized" regulatory minimums. The regulatory
capital ratios as of June 30, 2024 are estimates, pending
completion and filing of Columbia's regulatory reports.
Earnings Presentation and Conference Call
Information
Columbia's Q2
2024 Earnings Presentation provides additional disclosure. A copy
will be available on our investor relations page:
www.columbiabankingsystem.com.
Columbia will host its second
quarter 2024 earnings conference call on July 25, 2024, at 2:00
p.m. PT (5:00 p.m. ET). During
the call, Columbia's management
will provide an update on recent activities and discuss its second
quarter 2024 financial results. Participants may register for the
call using the below link to receive dial-in details and their own
unique PINs or join the audiocast. It is recommended you join 10
minutes prior to the start time.
Register for the
call: https://register.vevent.com/register/BIdb1fd24ce3994192abaccb701c2ce451
Join the
audiocast: https://edge.media-server.com/mmc/p/tog4rq49/
Access the replay through Columbia's investor relations
page: www.columbiabankingsystem.com
About Columbia Banking System, Inc.
Columbia (Nasdaq: COLB) is headquartered in
Tacoma, Washington and is the
parent company of Umpqua Bank, an award-winning western U.S.
regional bank based in Lake Oswego,
Oregon. Umpqua Bank is the largest bank headquartered in the
Northwest and one of the largest banks headquartered in the West
with locations in Arizona,
California, Colorado, Idaho, Nevada, Oregon, Utah,
and Washington. With over
$50 billion of assets, Umpqua Bank
combines the resources, sophistication and expertise of a national
bank with a commitment to deliver superior, personalized service.
The bank supports consumers and businesses through a full suite of
services, including retail and commercial banking; Small Business
Administration lending; institutional and corporate banking; and
equipment leasing. Umpqua Bank customers also have access to
comprehensive investment and wealth management expertise as well as
healthcare and private banking through Columbia Wealth Advisors and
Columbia Trust Company, a division of Umpqua Bank. Learn more at
www.columbiabankingsystem.com.
Forward-Looking Statements
This press release includes
forward-looking statements within the meaning of the "Safe-Harbor"
provisions of the Private Securities Litigation Reform Act of 1995,
which management believes are a benefit to shareholders. These
statements are necessarily subject to risk and uncertainty and
actual results could differ materially due to various risk factors,
including those set forth from time to time in our filings with the
Securities and Exchange Commission. You should not place undue
reliance on forward-looking statements and we undertake no
obligation to update any such statements. Forward-looking
statements can be identified by words such as "anticipates,"
"intends," "plans," "seeks," "believes," "estimates," "expects,"
"target," "projects," "outlook," "forecast," "will," "may,"
"could," "should," "can" and similar references to future periods.
In this press release we make forward-looking statements about
strategic and growth initiatives and the result of such activity.
Risks and uncertainties that could cause results to differ from
forward-looking statements we make include, without limitation:
current and future economic and market conditions, including the
effects of declines in housing and commercial real estate prices,
high unemployment rates, continued inflation and any recession or
slowdown in economic growth particularly in the western
United States; economic forecast
variables that are either materially worse or better than end of
quarter projections and deterioration in the economy that could
result in increased loan and lease losses, especially those risks
associated with concentrations in real estate related loans; our
ability to effectively manage problem credits; the impact of bank
failures or adverse developments at other banks on general investor
sentiment regarding the liquidity and stability of banks; changes
in interest rates that could significantly reduce net interest
income and negatively affect asset yields and valuations and
funding sources; changes in the scope and cost of FDIC insurance
and other coverage; our ability to successfully implement
efficiency and operational excellence initiatives; our ability to
successfully develop and market new products and technology;
changes in laws or regulations; any failure to realize the
anticipated benefits of the merger when expected or at all;
potential adverse reactions or changes to business or employee
relationships, including those resulting from the completion of the
merger and integration of the companies; the effect of geopolitical
instability, including wars, conflicts and terrorist attacks; and
natural disasters and other similar unexpected events outside of
our control. We also caution that the amount and timing of any
future common stock dividends or repurchases will depend on the
earnings, cash requirements and financial condition of Columbia, market conditions, capital
requirements, applicable law and regulations (including federal
securities laws and federal banking regulations), and other factors
deemed relevant by Columbia's
Board of Directors, and may be subject to regulatory approval or
conditions.
1 "Non-GAAP" financial measure. See GAAP to Non-GAAP
Reconciliation for additional information.
2 "Non-GAAP" financial measure. See GAAP to Non-GAAP
Reconciliation for additional information.
3 "Non-GAAP" financial measure. See GAAP to Non-GAAP
Reconciliation for additional information.
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TABLE INDEX
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Page
|
|
Consolidated Statements
of Income
|
7
|
|
Consolidated Balance
Sheets
|
8
|
|
Financial
Highlights
|
10
|
|
Loan & Lease
Portfolio Balances and Mix
|
11
|
|
Deposit Portfolio
Balances and Mix
|
13
|
|
Credit Quality -
Non-performing Assets
|
14
|
|
Credit Quality -
Allowance for Credit Losses
|
15
|
|
Consolidated Average
Balance Sheets, Net Interest Income, and Yields/Rates
|
17
|
|
Residential Mortgage
Banking Activity
|
19
|
|
GAAP to Non-GAAP
Reconciliation
|
21
|
|
Columbia Banking
System, Inc.
|
|
Consolidated
Statements of Income
|
|
(Unaudited)
|
|
Quarter
Ended
|
|
%
Change
|
|
($ in thousands,
except per share data)
|
Jun 30,
2024
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Seq.
Quarter
|
|
Year
over
Year
|
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and
leases
|
$ 583,874
|
|
$ 575,044
|
|
$ 577,741
|
|
$ 569,670
|
|
$ 552,679
|
|
2 %
|
|
6 %
|
|
Interest and dividends
on investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
78,828
|
|
75,017
|
|
78,010
|
|
80,066
|
|
79,036
|
|
5 %
|
|
— %
|
|
Exempt from federal
income tax
|
6,904
|
|
6,904
|
|
6,966
|
|
6,929
|
|
6,817
|
|
— %
|
|
1 %
|
|
Dividends
|
2,895
|
|
3,707
|
|
4,862
|
|
4,941
|
|
2,581
|
|
(22) %
|
|
12 %
|
|
Temporary investments
and interest bearing deposits
|
23,035
|
|
23,553
|
|
24,055
|
|
34,407
|
|
34,616
|
|
(2) %
|
|
(33) %
|
|
Total interest
income
|
695,536
|
|
684,225
|
|
691,634
|
|
696,013
|
|
675,729
|
|
2 %
|
|
3 %
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
207,307
|
|
198,435
|
|
170,659
|
|
126,974
|
|
100,408
|
|
4 %
|
|
106 %
|
|
Securities sold under
agreement to repurchase and
federal funds purchased
|
1,515
|
|
1,266
|
|
1,226
|
|
1,220
|
|
1,071
|
|
20 %
|
|
41 %
|
|
Borrowings
|
49,418
|
|
51,275
|
|
56,066
|
|
77,080
|
|
81,004
|
|
(4) %
|
|
(39) %
|
|
Junior and other
subordinated debentures
|
9,847
|
|
9,887
|
|
10,060
|
|
9,864
|
|
9,271
|
|
— %
|
|
6 %
|
|
Total interest
expense
|
268,087
|
|
260,863
|
|
238,011
|
|
215,138
|
|
191,754
|
|
3 %
|
|
40 %
|
|
Net interest
income
|
427,449
|
|
423,362
|
|
453,623
|
|
480,875
|
|
483,975
|
|
1 %
|
|
(12) %
|
|
Provision for credit
losses
|
31,820
|
|
17,136
|
|
54,909
|
|
36,737
|
|
16,014
|
|
86 %
|
|
99 %
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposits
|
18,503
|
|
16,064
|
|
17,349
|
|
17,410
|
|
16,454
|
|
15 %
|
|
12 %
|
|
Card-based
fees
|
14,681
|
|
13,183
|
|
14,593
|
|
15,674
|
|
13,435
|
|
11 %
|
|
9 %
|
|
Financial services and
trust revenue
|
5,396
|
|
4,464
|
|
3,011
|
|
4,651
|
|
4,512
|
|
21 %
|
|
20 %
|
|
Residential mortgage
banking revenue (loss), net
|
5,848
|
|
4,634
|
|
4,212
|
|
7,103
|
|
(2,342)
|
|
26 %
|
|
nm
|
|
(Loss) gain on sale of
debt securities, net
|
(1)
|
|
12
|
|
9
|
|
4
|
|
—
|
|
(108) %
|
|
nm
|
|
Gain (loss) on equity
securities, net
|
325
|
|
(1,565)
|
|
2,636
|
|
(2,055)
|
|
(697)
|
|
nm
|
|
nm
|
|
(Loss) gain on loan
and lease sales, net
|
(1,516)
|
|
221
|
|
1,161
|
|
1,871
|
|
442
|
|
nm
|
|
(443) %
|
|
BOLI income
|
4,705
|
|
4,639
|
|
4,331
|
|
4,440
|
|
4,063
|
|
1 %
|
|
16 %
|
|
Other (loss)
income
|
(3,238)
|
|
8,705
|
|
18,231
|
|
(5,117)
|
|
3,811
|
|
(137) %
|
|
(185) %
|
|
Total non-interest
income
|
44,703
|
|
50,357
|
|
65,533
|
|
43,981
|
|
39,678
|
|
(11) %
|
|
13 %
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
145,066
|
|
154,538
|
|
157,572
|
|
159,041
|
|
163,398
|
|
(6) %
|
|
(11) %
|
|
Occupancy and
equipment, net
|
45,147
|
|
45,291
|
|
48,160
|
|
43,070
|
|
50,550
|
|
— %
|
|
(11) %
|
|
Intangible
amortization
|
29,230
|
|
32,091
|
|
33,204
|
|
29,879
|
|
35,553
|
|
(9) %
|
|
(18) %
|
|
FDIC
assessments
|
9,664
|
|
14,460
|
|
42,510
|
|
11,200
|
|
11,579
|
|
(33) %
|
|
(17) %
|
|
Merger and
restructuring expense
|
14,641
|
|
4,478
|
|
7,174
|
|
18,938
|
|
29,649
|
|
227 %
|
|
(51) %
|
|
Other
expenses
|
35,496
|
|
36,658
|
|
48,556
|
|
42,019
|
|
37,830
|
|
(3) %
|
|
(6) %
|
|
Total non-interest
expense
|
279,244
|
|
287,516
|
|
337,176
|
|
304,147
|
|
328,559
|
|
(3) %
|
|
(15) %
|
|
Income before provision
for income taxes
|
161,088
|
|
169,067
|
|
127,071
|
|
183,972
|
|
179,080
|
|
(5) %
|
|
(10) %
|
|
Provision for income
taxes
|
40,944
|
|
44,987
|
|
33,540
|
|
48,127
|
|
45,703
|
|
(9) %
|
|
(10) %
|
|
Net income
|
$ 120,144
|
|
$ 124,080
|
|
$
93,531
|
|
$ 135,845
|
|
$ 133,377
|
|
(3) %
|
|
(10) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic
shares outstanding
|
208,498
|
|
208,260
|
|
208,083
|
|
208,070
|
|
207,977
|
|
— %
|
|
— %
|
|
Weighted average
diluted shares outstanding
|
209,011
|
|
208,956
|
|
208,739
|
|
208,645
|
|
208,545
|
|
— %
|
|
— %
|
|
Earnings per common
share – basic
|
$
0.58
|
|
$
0.60
|
|
$
0.45
|
|
$
0.65
|
|
$
0.64
|
|
(3) %
|
|
(9) %
|
|
Earnings per common
share – diluted
|
$
0.57
|
|
$
0.59
|
|
$
0.45
|
|
$
0.65
|
|
$
0.64
|
|
(3) %
|
|
(11) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nm = Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
|
Columbia Banking
System, Inc.
|
|
Consolidated
Statements of Income
|
|
(Unaudited)
|
|
|
Six Months
Ended
|
|
%
Change
|
|
($ in thousands,
except per share data)
|
|
Jun 30,
2024
|
|
Jun 30,
2023
|
|
Year over
Year
|
|
Interest
income:
|
|
|
|
|
|
|
|
Loans and
leases
|
|
$
1,158,918
|
|
$
966,204
|
|
20 %
|
|
Interest and dividends
on investments:
|
|
|
|
|
|
|
|
Taxable
|
|
153,845
|
|
118,765
|
|
30 %
|
|
Exempt from federal
income tax
|
|
13,808
|
|
10,214
|
|
35 %
|
|
Dividends
|
|
6,602
|
|
3,300
|
|
100 %
|
|
Temporary investments
and interest bearing deposits
|
|
46,588
|
|
53,197
|
|
(12) %
|
|
Total interest
income
|
|
1,379,761
|
|
1,151,680
|
|
20 %
|
|
Interest
expense:
|
|
|
|
|
|
|
|
Deposits
|
|
405,742
|
|
164,021
|
|
147 %
|
|
Securities sold under
agreement to repurchase and federal funds purchased
|
|
2,781
|
|
1,477
|
|
88 %
|
|
Borrowings
|
|
100,693
|
|
109,768
|
|
(8) %
|
|
Junior and other
subordinated debentures
|
|
19,734
|
|
17,741
|
|
11 %
|
|
Total interest
expense
|
|
528,950
|
|
293,007
|
|
81 %
|
|
Net interest
income
|
|
850,811
|
|
858,673
|
|
(1) %
|
|
Provision for credit
losses
|
|
48,956
|
|
121,553
|
|
(60) %
|
|
Non-interest
income:
|
|
|
|
|
|
|
|
Service charges on
deposits
|
|
34,567
|
|
30,766
|
|
12 %
|
|
Card-based
fees
|
|
27,864
|
|
24,996
|
|
11 %
|
|
Financial services and
trust revenue
|
|
9,860
|
|
5,809
|
|
70 %
|
|
Residential mortgage
banking revenue, net
|
|
10,482
|
|
5,474
|
|
91 %
|
|
Gain on sale of debt
securities, net
|
|
11
|
|
—
|
|
nm
|
|
(Loss) gain on equity
securities, net
|
|
(1,240)
|
|
1,719
|
|
(172) %
|
|
(Loss) gain on loan
and lease sales, net
|
|
(1,295)
|
|
1,382
|
|
(194) %
|
|
BOLI income
|
|
9,344
|
|
6,853
|
|
36 %
|
|
Other
income
|
|
5,467
|
|
17,414
|
|
(69) %
|
|
Total non-interest
income
|
|
95,060
|
|
94,413
|
|
1 %
|
|
Non-interest
expense:
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
299,604
|
|
299,490
|
|
— %
|
|
Occupancy and
equipment, net
|
|
90,438
|
|
92,250
|
|
(2) %
|
|
Intangible
amortization
|
|
61,321
|
|
48,213
|
|
27 %
|
|
FDIC
assessments
|
|
24,124
|
|
17,692
|
|
36 %
|
|
Merger and
restructuring expense
|
|
19,119
|
|
145,547
|
|
(87) %
|
|
Other
expenses
|
|
72,154
|
|
68,185
|
|
6 %
|
|
Total non-interest
expense
|
|
566,760
|
|
671,377
|
|
(16) %
|
|
Income before provision
for income taxes
|
|
330,155
|
|
160,156
|
|
106 %
|
|
Provision for income
taxes
|
|
85,931
|
|
40,817
|
|
111 %
|
|
Net income
|
|
$
244,224
|
|
$
119,339
|
|
105 %
|
|
|
|
|
|
|
|
|
Weighted average basic
shares outstanding
|
|
208,379
|
|
182,325
|
|
14 %
|
|
Weighted average
diluted shares outstanding
|
|
208,999
|
|
182,860
|
|
14 %
|
|
Earnings per common
share – basic
|
|
$
1.17
|
|
$
0.65
|
|
80 %
|
|
Earnings per common
share – diluted
|
|
$
1.17
|
|
$
0.65
|
|
80 %
|
|
|
|
|
|
|
|
|
nm = Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
|
Columbia Banking
System, Inc.
|
|
Consolidated Balance
Sheets
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
%
Change
|
|
($ in thousands,
except per share data)
|
Jun 30,
2024
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Seq.
Quarter
|
|
Year
over
Year
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
$
515,263
|
|
$
440,215
|
|
$
498,496
|
|
$
492,474
|
|
$
538,653
|
|
17 %
|
|
(4) %
|
|
Interest-bearing cash
and temporary
investments
|
1,553,568
|
|
1,760,902
|
|
1,664,038
|
|
1,911,221
|
|
2,868,563
|
|
(12) %
|
|
(46) %
|
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity and other, at
fair value
|
77,221
|
|
77,203
|
|
76,995
|
|
73,638
|
|
76,361
|
|
— %
|
|
1 %
|
|
Available for sale, at
fair value
|
8,503,000
|
|
8,616,545
|
|
8,829,870
|
|
8,503,986
|
|
8,998,428
|
|
(1) %
|
|
(6) %
|
|
Held to maturity, at
amortized cost
|
2,203
|
|
2,247
|
|
2,300
|
|
2,344
|
|
2,388
|
|
(2) %
|
|
(8) %
|
|
Loans held for
sale
|
56,310
|
|
47,201
|
|
30,715
|
|
60,313
|
|
183,633
|
|
19 %
|
|
(69) %
|
|
Loans and
leases
|
37,709,987
|
|
37,642,413
|
|
37,441,951
|
|
37,170,598
|
|
37,049,299
|
|
— %
|
|
2 %
|
|
Allowance for credit
losses on loans and leases
|
(418,671)
|
|
(414,344)
|
|
(440,871)
|
|
(416,560)
|
|
(404,603)
|
|
1 %
|
|
3 %
|
|
Net loans and
leases
|
37,291,316
|
|
37,228,069
|
|
37,001,080
|
|
36,754,038
|
|
36,644,696
|
|
— %
|
|
2 %
|
|
Restricted equity
securities
|
116,274
|
|
116,274
|
|
179,274
|
|
168,524
|
|
258,524
|
|
— %
|
|
(55) %
|
|
Premises and
equipment, net
|
337,842
|
|
336,869
|
|
338,970
|
|
337,855
|
|
368,698
|
|
— %
|
|
(8) %
|
|
Operating lease
right-of-use assets
|
108,278
|
|
113,833
|
|
115,811
|
|
114,220
|
|
119,255
|
|
(5) %
|
|
(9) %
|
|
Goodwill
|
1,029,234
|
|
1,029,234
|
|
1,029,234
|
|
1,029,234
|
|
1,029,234
|
|
— %
|
|
— %
|
|
Other intangible
assets, net
|
542,358
|
|
571,588
|
|
603,679
|
|
636,883
|
|
666,762
|
|
(5) %
|
|
(19) %
|
|
Residential mortgage
servicing rights, at fair
value
|
110,039
|
|
110,444
|
|
109,243
|
|
117,640
|
|
172,929
|
|
— %
|
|
(36) %
|
|
Bank-owned life
insurance
|
686,485
|
|
682,293
|
|
680,948
|
|
648,232
|
|
643,727
|
|
1 %
|
|
7 %
|
|
Deferred tax asset,
net
|
361,773
|
|
356,031
|
|
347,203
|
|
469,841
|
|
362,880
|
|
2 %
|
|
— %
|
|
Other
assets
|
756,319
|
|
735,058
|
|
665,740
|
|
673,372
|
|
657,365
|
|
3 %
|
|
15 %
|
|
Total assets
|
$ 52,047,483
|
|
$ 52,224,006
|
|
$ 52,173,596
|
|
$ 51,993,815
|
|
$ 53,592,096
|
|
— %
|
|
(3) %
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing
|
$ 13,481,616
|
|
$ 13,808,554
|
|
$ 14,256,452
|
|
$ 15,532,948
|
|
$ 16,019,408
|
|
(2) %
|
|
(16) %
|
|
Interest-bearing
|
28,041,656
|
|
27,897,606
|
|
27,350,568
|
|
26,091,420
|
|
24,815,509
|
|
1 %
|
|
13 %
|
|
Total
deposits
|
41,523,272
|
|
41,706,160
|
|
41,607,020
|
|
41,624,368
|
|
40,834,917
|
|
— %
|
|
2 %
|
|
Securities sold under
agreements to repurchase
|
197,860
|
|
213,573
|
|
252,119
|
|
258,383
|
|
294,914
|
|
(7) %
|
|
(33) %
|
|
Borrowings
|
3,900,000
|
|
3,900,000
|
|
3,950,000
|
|
3,985,000
|
|
6,250,000
|
|
— %
|
|
(38) %
|
|
Junior subordinated
debentures, at fair value
|
310,187
|
|
309,544
|
|
316,440
|
|
331,545
|
|
312,872
|
|
— %
|
|
(1) %
|
|
Junior and other
subordinated debentures, at
amortized cost
|
107,781
|
|
107,838
|
|
107,895
|
|
107,952
|
|
108,009
|
|
— %
|
|
— %
|
|
Operating lease
liabilities
|
123,082
|
|
129,240
|
|
130,576
|
|
129,845
|
|
132,099
|
|
(5) %
|
|
(7) %
|
|
Other
liabilities
|
908,629
|
|
900,406
|
|
814,512
|
|
924,560
|
|
831,097
|
|
1 %
|
|
9 %
|
|
Total
liabilities
|
47,070,811
|
|
47,266,761
|
|
47,178,562
|
|
47,361,653
|
|
48,763,908
|
|
— %
|
|
(3) %
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
5,807,041
|
|
5,802,322
|
|
5,802,747
|
|
5,798,167
|
|
5,792,792
|
|
— %
|
|
— %
|
|
Accumulated
deficit
|
(374,687)
|
|
(418,946)
|
|
(467,571)
|
|
(485,576)
|
|
(545,842)
|
|
(11) %
|
|
(31) %
|
|
Accumulated other
comprehensive loss
|
(455,682)
|
|
(426,131)
|
|
(340,142)
|
|
(680,429)
|
|
(418,762)
|
|
7 %
|
|
9 %
|
|
Total shareholders'
equity
|
4,976,672
|
|
4,957,245
|
|
4,995,034
|
|
4,632,162
|
|
4,828,188
|
|
— %
|
|
3 %
|
|
Total liabilities and
shareholders' equity
|
$ 52,047,483
|
|
$ 52,224,006
|
|
$ 52,173,596
|
|
$ 51,993,815
|
|
$ 53,592,096
|
|
— %
|
|
(3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding at period end
|
209,459
|
|
209,370
|
|
208,585
|
|
208,575
|
|
208,514
|
|
— %
|
|
— %
|
|
Columbia Banking
System, Inc.
|
|
Financial
Highlights
|
|
(Unaudited)
|
|
|
Quarter
Ended
|
|
%
Change
|
|
|
Jun 30,
2024
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Seq.
Quarter
|
|
Year over
Year
|
|
Per Common Share
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
|
|
$
0.36
|
|
$
0.36
|
|
$
0.36
|
|
$
0.36
|
|
$
0.36
|
|
— %
|
|
— %
|
|
Book value
|
|
$
23.76
|
|
$
23.68
|
|
$
23.95
|
|
$
22.21
|
|
$
23.16
|
|
— %
|
|
3 %
|
|
Tangible book value
(1)
|
|
$
16.26
|
|
$
16.03
|
|
$
16.12
|
|
$
14.22
|
|
$
15.02
|
|
1 %
|
|
8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(2)
|
|
59.02 %
|
|
60.57 %
|
|
64.81 %
|
|
57.82 %
|
|
62.60 %
|
|
(1.55)
|
|
(3.58)
|
|
Non-interest expense
to average assets (1)
|
|
2.16 %
|
|
2.22 %
|
|
2.58 %
|
|
2.28 %
|
|
2.46 %
|
|
(0.06)
|
|
(0.30)
|
|
Return on average
assets ("ROAA")
|
|
0.93 %
|
|
0.96 %
|
|
0.72 %
|
|
1.02 %
|
|
1.00 %
|
|
(0.03)
|
|
(0.07)
|
|
Pre-provision net
revenue ("PPNR") ROAA (1)
|
|
1.49 %
|
|
1.44 %
|
|
1.39 %
|
|
1.65 %
|
|
1.46 %
|
|
0.05
|
|
0.03
|
|
Return on average
common equity
|
|
9.85 %
|
|
10.01 %
|
|
7.90 %
|
|
11.07 %
|
|
10.84 %
|
|
(0.16)
|
|
(0.99)
|
|
Return on average
tangible common equity (1)
|
|
14.55 %
|
|
14.82 %
|
|
12.19 %
|
|
16.93 %
|
|
16.63 %
|
|
(0.27)
|
|
(2.08)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios -
Operating: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating efficiency
ratio, as adjusted (1),(2), (5),
(6)
|
|
53.56 %
|
|
56.97 %
|
|
57.31 %
|
|
51.26 %
|
|
54.04 %
|
|
(3.41)
|
|
(0.48)
|
|
Operating non-interest
expense to average assets (1)
|
|
2.03 %
|
|
2.14 %
|
|
2.25 %
|
|
2.10 %
|
|
2.22 %
|
|
(0.11)
|
|
(0.19)
|
|
Operating ROAA
(1), (6)
|
|
1.08 %
|
|
1.04 %
|
|
0.89 %
|
|
1.23 %
|
|
1.27 %
|
|
0.04
|
|
(0.19)
|
|
Operating PPNR ROAA
(1), (6)
|
|
1.70 %
|
|
1.55 %
|
|
1.62 %
|
|
1.94 %
|
|
1.82 %
|
|
0.15
|
|
(0.12)
|
|
Operating return on
average common equity (1), (6)
|
|
11.47 %
|
|
10.89 %
|
|
9.81 %
|
|
13.40 %
|
|
13.77 %
|
|
0.58
|
|
(2.30)
|
|
Operating return on
average tangible common equity (1), (6)
|
|
16.96 %
|
|
16.12 %
|
|
15.14 %
|
|
20.48 %
|
|
21.13 %
|
|
0.84
|
|
(4.17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance
Sheet Yields, Rates, & Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on loans and
leases
|
|
6.20 %
|
|
6.13 %
|
|
6.13 %
|
|
6.08 %
|
|
5.95 %
|
|
0.07
|
|
0.25
|
|
Yield on earning
assets (2)
|
|
5.80 %
|
|
5.69 %
|
|
5.75 %
|
|
5.65 %
|
|
5.48 %
|
|
0.11
|
|
0.32
|
|
Cost of interest
bearing deposits
|
|
2.97 %
|
|
2.88 %
|
|
2.54 %
|
|
2.01 %
|
|
1.64 %
|
|
0.09
|
|
1.33
|
|
Cost of interest
bearing liabilities
|
|
3.31 %
|
|
3.25 %
|
|
3.02 %
|
|
2.72 %
|
|
2.45 %
|
|
0.06
|
|
0.86
|
|
Cost of total
deposits
|
|
2.01 %
|
|
1.92 %
|
|
1.63 %
|
|
1.23 %
|
|
0.99 %
|
|
0.09
|
|
1.02
|
|
Cost of total funding
(3)
|
|
2.34 %
|
|
2.27 %
|
|
2.05 %
|
|
1.81 %
|
|
1.61 %
|
|
0.07
|
|
0.73
|
|
Net interest margin
(2)
|
|
3.56 %
|
|
3.52 %
|
|
3.78 %
|
|
3.91 %
|
|
3.93 %
|
|
0.04
|
|
(0.37)
|
|
Average interest
bearing cash / Average interest earning assets
|
|
3.51 %
|
|
3.56 %
|
|
3.64 %
|
|
5.17 %
|
|
5.47 %
|
|
(0.05)
|
|
(1.96)
|
|
Average loans and
leases / Average interest earning assets
|
|
78.27 %
|
|
77.87 %
|
|
78.04 %
|
|
75.64 %
|
|
75.18 %
|
|
0.40
|
|
3.09
|
|
Average loans and
leases / Average total deposits
|
|
90.61 %
|
|
90.41 %
|
|
89.91 %
|
|
90.63 %
|
|
90.98 %
|
|
0.20
|
|
(0.37)
|
|
Average non-interest
bearing deposits / Average total deposits
|
|
32.54 %
|
|
33.29 %
|
|
35.88 %
|
|
38.55 %
|
|
40.05 %
|
|
(0.75)
|
|
(7.51)
|
|
Average total deposits
/ Average total funding (3)
|
|
90.15 %
|
|
90.09 %
|
|
90.02 %
|
|
86.66 %
|
|
85.59 %
|
|
0.06
|
|
4.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select Credit &
Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans
and leases to total loans and leases
|
|
0.41 %
|
|
0.38 %
|
|
0.30 %
|
|
0.28 %
|
|
0.22 %
|
|
0.03
|
|
0.19
|
|
Non-performing assets
to total assets
|
|
0.30 %
|
|
0.28 %
|
|
0.22 %
|
|
0.20 %
|
|
0.15 %
|
|
0.02
|
|
0.15
|
|
Allowance for credit
losses to loans and leases
|
|
1.16 %
|
|
1.16 %
|
|
1.24 %
|
|
1.18 %
|
|
1.15 %
|
|
—
|
|
0.01
|
|
Total risk-based
capital ratio (4)
|
|
12.1 %
|
|
12.0 %
|
|
11.9 %
|
|
11.6 %
|
|
11.3 %
|
|
0.10
|
|
0.80
|
|
Common equity tier 1
risk-based capital ratio (4)
|
|
9.9 %
|
|
9.8 %
|
|
9.6 %
|
|
9.5 %
|
|
9.2 %
|
|
0.10
|
|
0.70
|
|
|
|
(1)
|
See GAAP to Non-GAAP
Reconciliation.
|
|
(2)
|
Tax-exempt interest has
been adjusted to a taxable equivalent basis using a 21% tax
rate.
|
|
(3)
|
Total funding = Total
deposits + Total borrowings.
|
|
(4)
|
Estimated holding
company ratios.
|
|
(5)
|
The operating
efficiency ratio was adjusted in the first quarter of 2024 to
remove B&O taxes and for a tax-equivalent adjustment to BOLI
income. The Company views the adjusted operating efficiency ratio
as a better representation of its efficiency ratio when compared to
other banks as it normalizes for the tax treatment of the adjusted
items. The adjustment re-aligns Columbia's calculation of its
operating efficiency ratio with its pre-merger
calculation.
|
|
(6)
|
Non-interest expense
adjustments were revised subsequent to the Company's reporting of
its earnings results for the period ended December 31, 2023. The
revision includes adding the FDIC special assessment to the
non-interest expense adjustments, which removes the special
assessment from the Company's calculation of operating non-interest
expense. The Company views the special assessment as an infrequent
expense that is outside the control of the Company.
|
|
Columbia Banking
System, Inc.
|
|
Financial
Highlights
|
|
(Unaudited)
|
|
|
Six Months
Ended
|
|
%
Change
|
|
|
Jun 30,
2024
|
|
Jun 30,
2023
|
|
Year over
Year
|
|
Per Common Share
Data:
|
|
|
|
|
|
|
|
Dividends
|
|
$
0.72
|
|
$
0.71
|
|
1.41 %
|
|
|
|
|
|
|
|
|
Performance
Ratios:
|
|
|
|
|
|
|
|
Efficiency ratio
(2)
|
|
59.80 %
|
|
70.30 %
|
|
(10.50)
|
|
Non-interest expense
to average assets (1)
|
|
2.19 %
|
|
2.91 %
|
|
(0.72)
|
|
Return on average
assets
|
|
0.94 %
|
|
0.52 %
|
|
0.42
|
|
PPNR ROAA
(1)
|
|
1.47 %
|
|
1.22 %
|
|
0.25
|
|
Return on average
common equity
|
|
9.93 %
|
|
5.80 %
|
|
4.13
|
|
Return on average
tangible common equity (1)
|
|
14.69 %
|
|
8.09 %
|
|
6.60
|
|
|
|
|
|
|
|
|
Performance Ratios -
Operating: (1)
|
|
|
|
|
|
|
|
Operating efficiency
ratio, as adjusted (1),(2), (4),
(5)
|
|
55.26 %
|
|
53.51 %
|
|
1.75
|
|
Operating non-interest
expense to average assets (1)
|
|
2.08 %
|
|
2.26 %
|
|
(0.18)
|
|
Operating ROAA
(1), (5)
|
|
1.06 %
|
|
1.04 %
|
|
0.02
|
|
Operating PPNR ROAA
(1), (5)
|
|
1.62 %
|
|
1.90 %
|
|
(0.28)
|
|
Operating return on
average common equity (1), (5)
|
|
11.18 %
|
|
11.72 %
|
|
(0.54)
|
|
Operating return on
average tangible common equity (1), (5)
|
|
16.54 %
|
|
16.34 %
|
|
0.20
|
|
|
|
|
|
|
|
|
Average Balance
Sheet Yields, Rates, & Ratios:
|
|
|
|
|
|
|
|
Yield on loans and
leases
|
|
6.17 %
|
|
5.77 %
|
|
0.40
|
|
Yield on earning
assets (2)
|
|
5.75 %
|
|
5.35 %
|
|
0.40
|
|
Cost of interest
bearing deposits
|
|
2.93 %
|
|
1.50 %
|
|
1.43
|
|
Cost of interest
bearing liabilities
|
|
3.28 %
|
|
2.19 %
|
|
1.09
|
|
Cost of total
deposits
|
|
1.96 %
|
|
0.90 %
|
|
1.06
|
|
Cost of total funding
(3)
|
|
2.31 %
|
|
1.42 %
|
|
0.89
|
|
Net interest margin
(2)
|
|
3.54 %
|
|
3.99 %
|
|
(0.45)
|
|
Average interest
bearing cash / Average interest earning assets
|
|
3.54 %
|
|
4.99 %
|
|
(1.45)
|
|
Average loans and
leases / Average interest earning assets
|
|
78.07 %
|
|
77.64 %
|
|
0.43
|
|
Average loans and
leases / Average total deposits
|
|
90.51 %
|
|
91.87 %
|
|
(1.36)
|
|
Average non-interest
bearing deposits / Average total deposits
|
|
32.91 %
|
|
39.69 %
|
|
(6.78)
|
|
Average total deposits
/ Average total funding (3)
|
|
90.12 %
|
|
88.03 %
|
|
2.09
|
|
|
|
|
|
|
|
|
|
|
(1)
|
See GAAP to Non-GAAP
Reconciliation.
|
|
(2)
|
Tax-exempt interest has
been adjusted to a taxable equivalent basis using a 21% tax
rate.
|
|
(3)
|
Total funding = Total
deposits + Total borrowings.
|
|
(4)
|
The operating
efficiency ratio was adjusted in the first quarter of 2024 to
remove B&O taxes and for a tax-equivalent adjustment to BOLI
income. The Company views the adjusted operating efficiency ratio
as a better representation of its efficiency ratio when compared to
other banks as it normalizes for the tax treatment of the adjusted
items. The adjustment re-aligns Columbia's calculation of its
operating efficiency ratio with its pre-merger
calculation.
|
|
(5)
|
Non-interest expense
adjustments were revised subsequent to the Company's reporting of
its earnings results for the period ended December 31, 2023. The
revision includes adding the FDIC special assessment to the
non-interest expense adjustments, which removes the special
assessment from the Company's calculation of operating non-interest
expense. The Company views the special assessment as an infrequent
expense that is outside the control of the Company.
|
|
Columbia Banking
System, Inc.
|
|
Loan & Lease
Portfolio Balances and Mix
|
|
(Unaudited)
|
|
Jun 30,
2024
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
%
Change
|
|
($ in
thousands)
|
Amount
|
|
Amount
|
|
Amount
|
|
Amount
|
|
Amount
|
|
Seq.
Quarter
|
|
Year
over
Year
|
|
Loans and
leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied
term, net
|
$
6,407,351
|
|
$
6,557,768
|
|
$
6,482,940
|
|
$
6,490,638
|
|
$
6,434,673
|
|
(2) %
|
|
— %
|
|
Owner occupied term,
net
|
5,230,511
|
|
5,231,676
|
|
5,195,605
|
|
5,235,227
|
|
5,254,401
|
|
— %
|
|
— %
|
|
Multifamily,
net
|
5,868,848
|
|
5,828,960
|
|
5,704,734
|
|
5,684,495
|
|
5,622,875
|
|
1 %
|
|
4 %
|
|
Construction &
development, net
|
1,946,693
|
|
1,728,652
|
|
1,747,302
|
|
1,669,918
|
|
1,528,924
|
|
13 %
|
|
27 %
|
|
Residential
development, net
|
269,106
|
|
284,117
|
|
323,899
|
|
354,922
|
|
388,641
|
|
(5) %
|
|
(31) %
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term, net
|
5,559,548
|
|
5,544,450
|
|
5,536,765
|
|
5,437,915
|
|
5,449,787
|
|
— %
|
|
2 %
|
|
Lines of credit &
other, net
|
2,558,633
|
|
2,491,557
|
|
2,430,127
|
|
2,353,548
|
|
2,268,790
|
|
3 %
|
|
13 %
|
|
Leases & equipment
finance, net
|
1,701,943
|
|
1,706,759
|
|
1,729,512
|
|
1,728,991
|
|
1,740,037
|
|
— %
|
|
(2) %
|
|
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage,
net
|
5,992,163
|
|
6,128,884
|
|
6,157,166
|
|
6,121,838
|
|
6,272,898
|
|
(2) %
|
|
(4) %
|
|
Home equity loans
& lines, net
|
1,982,786
|
|
1,950,421
|
|
1,938,166
|
|
1,899,948
|
|
1,898,958
|
|
2 %
|
|
4 %
|
|
Consumer
& other, net
|
192,405
|
|
189,169
|
|
195,735
|
|
193,158
|
|
189,315
|
|
2 %
|
|
2 %
|
|
Total loans and
leases, net of deferred fees and
costs
|
$
37,709,987
|
|
$
37,642,413
|
|
$
37,441,951
|
|
$
37,170,598
|
|
$
37,049,299
|
|
— %
|
|
2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases
mix:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner
occupied term, net
|
17 %
|
|
17 %
|
|
17 %
|
|
17 %
|
|
17 %
|
|
|
|
|
|
Owner
occupied term, net
|
14 %
|
|
14 %
|
|
14 %
|
|
14 %
|
|
14 %
|
|
|
|
|
|
Multifamily, net
|
15 %
|
|
15 %
|
|
15 %
|
|
15 %
|
|
15 %
|
|
|
|
|
|
Construction &
development, net
|
5 %
|
|
5 %
|
|
5 %
|
|
4 %
|
|
4 %
|
|
|
|
|
|
Residential
development, net
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term, net
|
15 %
|
|
15 %
|
|
15 %
|
|
15 %
|
|
15 %
|
|
|
|
|
|
Lines of credit &
other, net
|
6 %
|
|
6 %
|
|
6 %
|
|
6 %
|
|
6 %
|
|
|
|
|
|
Leases & equipment
finance, net
|
5 %
|
|
5 %
|
|
5 %
|
|
5 %
|
|
5 %
|
|
|
|
|
|
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage,
net
|
16 %
|
|
16 %
|
|
16 %
|
|
17 %
|
|
17 %
|
|
|
|
|
|
Home equity loans
& lines, net
|
5 %
|
|
5 %
|
|
5 %
|
|
5 %
|
|
5 %
|
|
|
|
|
|
Consumer
& other, net
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
|
|
|
|
Total
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
|
|
|
Columbia Banking
System, Inc.
|
|
Deposit Portfolio
Balances and Mix
|
|
(Unaudited)
|
|
Jun 30,
2024
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
%
Change
|
|
($ in
thousands)
|
Amount
|
|
Amount
|
|
Amount
|
|
Amount
|
|
Amount
|
|
Seq.
Quarter
|
|
Year over
Year
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand, non-interest
bearing
|
$
13,481,616
|
|
$
13,808,554
|
|
$
14,256,452
|
|
$
15,532,948
|
|
$
16,019,408
|
|
(2) %
|
|
(16) %
|
|
Demand, interest
bearing
|
8,195,284
|
|
8,095,211
|
|
8,044,432
|
|
6,898,831
|
|
6,300,082
|
|
1 %
|
|
30 %
|
|
Money
market
|
10,927,813
|
|
10,822,498
|
|
10,324,454
|
|
10,349,217
|
|
10,115,908
|
|
1 %
|
|
8 %
|
|
Savings
|
2,508,598
|
|
2,640,060
|
|
2,754,113
|
|
3,018,706
|
|
3,171,714
|
|
(5) %
|
|
(21) %
|
|
Time
|
6,409,961
|
|
6,339,837
|
|
6,227,569
|
|
5,824,666
|
|
5,227,805
|
|
1 %
|
|
23 %
|
|
Total
|
$
41,523,272
|
|
$
41,706,160
|
|
$
41,607,020
|
|
$
41,624,368
|
|
$
40,834,917
|
|
— %
|
|
2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total core deposits
(1)
|
$
37,159,069
|
|
$
37,436,569
|
|
$
37,423,402
|
|
$
37,597,830
|
|
$
37,639,368
|
|
(1) %
|
|
(1) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
mix:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand, non-interest
bearing
|
33 %
|
|
34 %
|
|
34 %
|
|
37 %
|
|
39 %
|
|
|
|
|
|
Demand, interest
bearing
|
20 %
|
|
19 %
|
|
19 %
|
|
17 %
|
|
15 %
|
|
|
|
|
|
Money
market
|
26 %
|
|
26 %
|
|
25 %
|
|
25 %
|
|
25 %
|
|
|
|
|
|
Savings
|
6 %
|
|
6 %
|
|
7 %
|
|
7 %
|
|
8 %
|
|
|
|
|
|
Time
|
15 %
|
|
15 %
|
|
15 %
|
|
14 %
|
|
13 %
|
|
|
|
|
|
Total
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
|
|
|
|
|
(1)
|
Core deposits are
defined as total deposits less time deposits greater than $250,000
and all brokered deposits.
|
|
Columbia Banking
System, Inc.
|
|
Credit Quality –
Non-performing Assets
|
|
(Unaudited)
|
|
Quarter
Ended
|
|
%
Change
|
|
($ in
thousands)
|
Jun 30,
2024
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Seq.
Quarter
|
|
Year over
Year
|
|
Non-performing
assets: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases on
non-accrual status:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
$ 37,584
|
|
$ 39,736
|
|
$ 28,689
|
|
$ 26,053
|
|
$ 10,994
|
|
(5) %
|
|
242 %
|
|
Commercial,
net
|
54,986
|
|
58,960
|
|
45,682
|
|
44,341
|
|
39,316
|
|
(7) %
|
|
40 %
|
|
Total loans and leases
on non-accrual status
|
92,570
|
|
98,696
|
|
74,371
|
|
70,394
|
|
50,310
|
|
(6) %
|
|
84 %
|
|
Loans and leases past
due 90+ days and accruing: (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
—
|
|
253
|
|
870
|
|
71
|
|
184
|
|
(100) %
|
|
(100) %
|
|
Commercial,
net
|
5,778
|
|
10,733
|
|
8,232
|
|
8,606
|
|
7,720
|
|
(46) %
|
|
(25) %
|
|
Residential, net
(2)
|
54,525
|
|
31,916
|
|
29,102
|
|
25,180
|
|
21,370
|
|
71 %
|
|
155 %
|
|
Consumer & other,
net
|
220
|
|
437
|
|
326
|
|
240
|
|
399
|
|
(50) %
|
|
(45) %
|
|
Total loans and leases
past due 90+ days and
accruing (2)
|
60,523
|
|
43,339
|
|
38,530
|
|
34,097
|
|
29,673
|
|
40 %
|
|
104 %
|
|
Total non-performing
loans and leases (1), (2)
|
153,093
|
|
142,035
|
|
112,901
|
|
104,491
|
|
79,983
|
|
8 %
|
|
91 %
|
|
Other real estate
owned
|
2,839
|
|
1,762
|
|
1,036
|
|
1,170
|
|
278
|
|
61 %
|
|
nm
|
|
Total non-performing
assets (1), (2)
|
$
155,932
|
|
$
143,797
|
|
$
113,937
|
|
$
105,661
|
|
$ 80,261
|
|
8 %
|
|
94 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases past
due 31-89 days
|
$ 85,998
|
|
$
109,673
|
|
$ 85,235
|
|
$ 82,918
|
|
$ 73,376
|
|
(22) %
|
|
17 %
|
|
Loans and leases past
due 31-89 days to total loans and
leases
|
0.23 %
|
|
0.29 %
|
|
0.23 %
|
|
0.22 %
|
|
0.20 %
|
|
(0.06)
|
|
0.03
|
|
Non-performing loans
and leases to total loans and
leases (1), (2)
|
0.41 %
|
|
0.38 %
|
|
0.30 %
|
|
0.28 %
|
|
0.22 %
|
|
0.03
|
|
0.19
|
|
Non-performing assets
to total assets (1), (2)
|
0.30 %
|
|
0.28 %
|
|
0.22 %
|
|
0.20 %
|
|
0.15 %
|
|
0.02
|
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nm = Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
|
|
|
|
(1)
|
Non-accrual and 90+
days past due loans include government guarantees of $64.6 million,
$43.0 million, $31.6 million, $26.9 million, and $26.6 million at
June 30, 2024, March 31, 2024, December 31, 2023, September 30,
2023, and June 30, 2023, respectively.
|
|
(2)
|
Excludes certain
mortgage loans guaranteed by GNMA, which Columbia has the
unilateral right to repurchase but has not done so, totaling $1.0
million, $1.6 million, $1.0 million, $700,000, and $1.6 million at
June 30, 2024, March 31, 2024, December 31, 2023,
September 30, 2023, and June 30, 2023,
respectively.
|
|
Columbia Banking
System, Inc.
|
|
Credit Quality –
Allowance for Credit Losses
|
|
(Unaudited)
|
|
|
Quarter
Ended
|
|
%
Change
|
|
($ in
thousands)
|
Jun 30,
2024
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Seq.
Quarter
|
|
Year over
Year
|
|
Allowance for credit
losses on loans and leases (ACLLL)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of
period
|
$
414,344
|
|
$
440,871
|
|
$
416,560
|
|
$
404,603
|
|
$
417,464
|
|
(6) %
|
|
(1) %
|
|
Provision for credit
losses on loans and leases
|
34,760
|
|
17,476
|
|
53,183
|
|
35,082
|
|
15,216
|
|
99 %
|
|
128 %
|
|
Charge-offs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
(585)
|
|
(161)
|
|
(629)
|
|
—
|
|
(174)
|
|
263 %
|
|
236 %
|
|
Commercial,
net
|
(33,561)
|
|
(47,232)
|
|
(31,949)
|
|
(26,629)
|
|
(32,036)
|
|
(29) %
|
|
5 %
|
|
Residential,
net
|
(504)
|
|
(490)
|
|
(89)
|
|
(206)
|
|
(4)
|
|
3 %
|
|
nm
|
|
Consumer & other,
net
|
(1,551)
|
|
(1,870)
|
|
(1,841)
|
|
(1,884)
|
|
(1,264)
|
|
(17) %
|
|
23 %
|
|
Total
charge-offs
|
(36,201)
|
|
(49,753)
|
|
(34,508)
|
|
(28,719)
|
|
(33,478)
|
|
(27) %
|
|
8 %
|
|
Recoveries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
551
|
|
358
|
|
35
|
|
31
|
|
209
|
|
54 %
|
|
164 %
|
|
Commercial,
net
|
4,198
|
|
4,732
|
|
4,414
|
|
4,901
|
|
4,511
|
|
(11) %
|
|
(7) %
|
|
Residential,
net
|
411
|
|
170
|
|
781
|
|
156
|
|
63
|
|
142 %
|
|
nm
|
|
Consumer & other,
net
|
608
|
|
490
|
|
406
|
|
506
|
|
618
|
|
24 %
|
|
(2) %
|
|
Total
recoveries
|
5,768
|
|
5,750
|
|
5,636
|
|
5,594
|
|
5,401
|
|
0 %
|
|
7 %
|
|
Net (charge-offs)
recoveries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
(34)
|
|
197
|
|
(594)
|
|
31
|
|
35
|
|
(117) %
|
|
(197) %
|
|
Commercial,
net
|
(29,363)
|
|
(42,500)
|
|
(27,535)
|
|
(21,728)
|
|
(27,525)
|
|
(31) %
|
|
7 %
|
|
Residential,
net
|
(93)
|
|
(320)
|
|
692
|
|
(50)
|
|
59
|
|
(71) %
|
|
(258) %
|
|
Consumer & other,
net
|
(943)
|
|
(1,380)
|
|
(1,435)
|
|
(1,378)
|
|
(646)
|
|
(32) %
|
|
46 %
|
|
Total net
charge-offs
|
(30,433)
|
|
(44,003)
|
|
(28,872)
|
|
(23,125)
|
|
(28,077)
|
|
(31) %
|
|
8 %
|
|
Balance, end of
period
|
$
418,671
|
|
$
414,344
|
|
$
440,871
|
|
$
416,560
|
|
$
404,603
|
|
1 %
|
|
3 %
|
|
Reserve for unfunded
commitments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of
period
|
$ 22,868
|
|
$ 23,208
|
|
$ 21,482
|
|
$ 19,827
|
|
$ 19,029
|
|
(1) %
|
|
20 %
|
|
(Recapture)
provision for credit losses on unfunded
commitments
|
(2,940)
|
|
(340)
|
|
1,726
|
|
1,655
|
|
798
|
|
nm
|
|
(468) %
|
|
Balance, end of
period
|
19,928
|
|
22,868
|
|
23,208
|
|
21,482
|
|
19,827
|
|
(13) %
|
|
1 %
|
|
Total Allowance for
credit losses (ACL)
|
$
438,599
|
|
$
437,212
|
|
$
464,079
|
|
$
438,042
|
|
$
424,430
|
|
0 %
|
|
3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs to
average loans and leases (annualized)
|
0.32 %
|
|
0.47 %
|
|
0.31 %
|
|
0.25 %
|
|
0.30 %
|
|
(0.15)
|
|
0.02
|
|
Recoveries to gross
charge-offs
|
15.93 %
|
|
11.56 %
|
|
16.33 %
|
|
19.48 %
|
|
16.13 %
|
|
4.37
|
|
(0.20)
|
|
ACLLL to loans and
leases
|
1.11 %
|
|
1.10 %
|
|
1.18 %
|
|
1.12 %
|
|
1.09 %
|
|
0.01
|
|
0.02
|
|
ACL to loans and
leases
|
1.16 %
|
|
1.16 %
|
|
1.24 %
|
|
1.18 %
|
|
1.15 %
|
|
—
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nm = Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
|
|
Columbia Banking
System, Inc.
|
|
Credit Quality –
Allowance for Credit Losses
|
|
(Unaudited)
|
|
|
Six Months
Ended
|
|
%
Change
|
|
($ in
thousands)
|
|
Jun 30,
2024
|
|
Jun 30,
2023
|
|
Year over
Year
|
|
Allowance for credit
losses on loans and leases (ACLLL)
|
|
|
|
|
|
|
|
Balance, beginning of
period
|
|
$
440,871
|
|
$
301,135
|
|
46 %
|
|
Initial ACL recorded
for PCD loans acquired during the period
|
|
—
|
|
26,492
|
|
(100) %
|
|
Provision for credit
losses on loans and leases (1)
|
|
52,236
|
|
121,714
|
|
(57) %
|
|
Charge-offs
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
|
(746)
|
|
(174)
|
|
329 %
|
|
Commercial,
net
|
|
(80,793)
|
|
(51,284)
|
|
58 %
|
|
Residential,
net
|
|
(994)
|
|
(252)
|
|
294 %
|
|
Consumer & other,
net
|
|
(3,421)
|
|
(2,037)
|
|
68 %
|
|
Total
charge-offs
|
|
(85,954)
|
|
(53,747)
|
|
60 %
|
|
Recoveries
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
|
909
|
|
267
|
|
240 %
|
|
Commercial,
net
|
|
8,930
|
|
7,569
|
|
18 %
|
|
Residential,
net
|
|
581
|
|
186
|
|
212 %
|
|
Consumer & other,
net
|
|
1,098
|
|
987
|
|
11 %
|
|
Total
recoveries
|
|
11,518
|
|
9,009
|
|
28 %
|
|
Net (charge-offs)
recoveries
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
|
163
|
|
93
|
|
75 %
|
|
Commercial,
net
|
|
(71,863)
|
|
(43,715)
|
|
64 %
|
|
Residential,
net
|
|
(413)
|
|
(66)
|
|
nm
|
|
Consumer & other,
net
|
|
(2,323)
|
|
(1,050)
|
|
121 %
|
|
Total net
charge-offs
|
|
(74,436)
|
|
(44,738)
|
|
66 %
|
|
Balance, end of
period
|
|
$
418,671
|
|
$
404,603
|
|
3 %
|
|
Reserve for unfunded
commitments
|
|
|
|
|
|
|
|
Balance, beginning of
period
|
|
$
23,208
|
|
$
14,221
|
|
63 %
|
|
Initial ACL recorded
for unfunded commitments acquired during the period
|
|
—
|
|
5,767
|
|
(100) %
|
|
Recapture for credit
losses on unfunded commitments
|
|
(3,280)
|
|
(161)
|
|
nm
|
|
Balance, end of
period
|
|
19,928
|
|
19,827
|
|
1 %
|
|
Total Allowance for
credit losses (ACL)
|
|
$
438,599
|
|
$
424,430
|
|
3 %
|
|
|
|
|
|
|
|
|
Net charge-offs to
average loans and leases (annualized)
|
|
0.40 %
|
|
0.27 %
|
|
0.13
|
|
Recoveries to gross
charge-offs
|
|
13.40 %
|
|
16.76 %
|
|
(3.36)
|
|
|
|
|
|
|
|
|
|
nm = Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
|
|
|
(1)
|
For the six months
ended June 30, 2023, the provision for credit losses on loans and
leases includes $88.4 million initial provision related to non-PCD
loans acquired during the period.
|
|
Columbia Banking
System, Inc.
|
|
Consolidated Average
Balance Sheets, Net Interest Income, and
Yields/Rates
|
|
(Unaudited)
|
|
Quarter
Ended
|
|
June 30,
2024
|
|
March 31,
2024
|
|
June 30,
2023
|
|
($ in
thousands)
|
Average
Balance
|
|
Interest
Income or
Expense
|
|
Average
Yields or
Rates
|
|
Average
Balance
|
|
Interest
Income or
Expense
|
|
Average
Yields or
Rates
|
|
Average
Balance
|
|
Interest
Income or
Expense
|
|
Average
Yields or
Rates
|
|
INTEREST-EARNING
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
$ 101,516
|
|
$ 1,628
|
|
6.42 %
|
|
$
30,550
|
|
$ 525
|
|
6.88 %
|
|
$
46,794
|
|
$ 682
|
|
5.83 %
|
|
Loans and leases
(1)
|
37,663,396
|
|
582,246
|
|
6.20 %
|
|
37,597,101
|
|
574,519
|
|
6.13 %
|
|
37,169,315
|
|
551,997
|
|
5.95 %
|
|
Taxable
securities
|
7,839,202
|
|
81,723
|
|
4.17 %
|
|
8,081,003
|
|
78,724
|
|
3.90 %
|
|
8,656,147
|
|
81,617
|
|
3.77 %
|
|
Non-taxable securities
(2)
|
825,030
|
|
7,889
|
|
3.82 %
|
|
851,342
|
|
7,886
|
|
3.71 %
|
|
865,278
|
|
8,010
|
|
3.70 %
|
|
Temporary investments
and
interest-bearing cash
|
1,688,602
|
|
23,035
|
|
5.49 %
|
|
1,720,791
|
|
23,553
|
|
5.51 %
|
|
2,704,984
|
|
34,616
|
|
5.13 %
|
|
Total interest-earning
assets (1), (2)
|
48,117,746
|
|
$ 696,521
|
|
5.80 %
|
|
48,280,787
|
|
$ 685,207
|
|
5.69 %
|
|
49,442,518
|
|
$ 676,922
|
|
5.48 %
|
|
Goodwill and other
intangible
assets
|
1,588,239
|
|
|
|
|
|
1,619,134
|
|
|
|
|
|
1,718,705
|
|
|
|
|
|
Other assets
|
2,275,570
|
|
|
|
|
|
2,184,052
|
|
|
|
|
|
2,379,351
|
|
|
|
|
|
Total assets
|
$
51,981,555
|
|
|
|
|
|
$
52,083,973
|
|
|
|
|
|
$
53,540,574
|
|
|
|
|
|
INTEREST-BEARING
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
$
8,147,516
|
|
$
53,890
|
|
2.66 %
|
|
$
8,035,339
|
|
$
51,378
|
|
2.57 %
|
|
$
6,131,117
|
|
$
17,277
|
|
1.15 %
|
|
Money market
deposits
|
10,849,259
|
|
76,466
|
|
2.83 %
|
|
10,612,073
|
|
72,497
|
|
2.75 %
|
|
10,362,495
|
|
41,703
|
|
1.60 %
|
|
Savings
deposits
|
2,555,458
|
|
929
|
|
0.15 %
|
|
2,688,360
|
|
715
|
|
0.11 %
|
|
3,297,138
|
|
877
|
|
0.11 %
|
|
Time
deposits
|
6,488,923
|
|
76,022
|
|
4.71 %
|
|
6,406,807
|
|
73,845
|
|
4.64 %
|
|
4,703,967
|
|
40,551
|
|
3.46 %
|
|
Total interest-bearing
deposits
|
28,041,156
|
|
207,307
|
|
2.97 %
|
|
27,742,579
|
|
198,435
|
|
2.88 %
|
|
24,494,717
|
|
100,408
|
|
1.64 %
|
|
Repurchase agreements
and federal
funds purchased
|
224,973
|
|
1,515
|
|
2.71 %
|
|
231,667
|
|
1,266
|
|
2.20 %
|
|
284,347
|
|
1,071
|
|
1.51 %
|
|
Borrowings
|
3,900,000
|
|
49,418
|
|
5.10 %
|
|
3,920,879
|
|
51,275
|
|
5.26 %
|
|
6,187,363
|
|
81,004
|
|
5.25 %
|
|
Junior and other
subordinated
debentures
|
417,329
|
|
9,847
|
|
9.49 %
|
|
423,528
|
|
9,887
|
|
9.39 %
|
|
405,989
|
|
9,271
|
|
9.16 %
|
|
Total interest-bearing
liabilities
|
32,583,458
|
|
$ 268,087
|
|
3.31 %
|
|
32,318,653
|
|
$ 260,863
|
|
3.25 %
|
|
31,372,416
|
|
$ 191,754
|
|
2.45 %
|
|
Non-interest-bearing
deposits
|
13,526,483
|
|
|
|
|
|
13,841,582
|
|
|
|
|
|
16,361,541
|
|
|
|
|
|
Other
liabilities
|
963,375
|
|
|
|
|
|
937,863
|
|
|
|
|
|
871,378
|
|
|
|
|
|
Total
liabilities
|
47,073,316
|
|
|
|
|
|
47,098,098
|
|
|
|
|
|
48,605,335
|
|
|
|
|
|
Common
equity
|
4,908,239
|
|
|
|
|
|
4,985,875
|
|
|
|
|
|
4,935,239
|
|
|
|
|
|
Total liabilities and
shareholders'
equity
|
$
51,981,555
|
|
|
|
|
|
$
52,083,973
|
|
|
|
|
|
$
53,540,574
|
|
|
|
|
|
NET INTEREST INCOME
(2)
|
|
|
$ 428,434
|
|
|
|
|
|
$ 424,344
|
|
|
|
|
|
$ 485,168
|
|
|
|
NET INTEREST SPREAD
(2)
|
|
|
|
|
2.49 %
|
|
|
|
|
|
2.44 %
|
|
|
|
|
|
3.03 %
|
|
NET INTEREST INCOME
TO EARNING
ASSETS OR NET INTEREST MARGIN (1),
(2)
|
|
|
|
|
3.56 %
|
|
|
|
|
|
3.52 %
|
|
|
|
|
|
3.93 %
|
|
|
|
(1)
|
Non-accrual loans and
leases are included in the average balance.
|
|
(2)
|
Tax-exempt income has
been adjusted to a tax equivalent basis at a 21% tax rate. The
amount of such adjustment was an addition to recorded income of
approximately $985,000 for the three months ended June 30,
2024, as compared to $982,000 for the three months ended
March 31, 2024 and $1.2 million for the three months ended
June 30, 2023.
|
|
Columbia Banking
System, Inc.
|
|
Consolidated Average
Balance Sheets, Net Interest Income, and
Yields/Rates
|
|
(Unaudited)
|
|
Six Months
Ended
|
|
June 30,
2024
|
|
June 30,
2023
|
|
($ in
thousands)
|
Average
Balance
|
|
Interest
Income or
Expense
|
|
Average
Yields or
Rates
|
|
Average
Balance
|
|
Interest
Income or
Expense
|
|
Average
Yields or
Rates
|
|
INTEREST-EARNING
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
$
66,033
|
|
$
2,153
|
|
6.52 %
|
|
$
50,381
|
|
$
1,481
|
|
5.88 %
|
|
Loans and leases
(1)
|
37,630,248
|
|
1,156,765
|
|
6.17 %
|
|
33,603,781
|
|
964,723
|
|
5.77 %
|
|
Taxable
securities
|
7,960,102
|
|
160,447
|
|
4.03 %
|
|
6,818,764
|
|
122,065
|
|
3.58 %
|
|
Non-taxable securities
(2)
|
838,186
|
|
15,775
|
|
3.76 %
|
|
652,332
|
|
12,078
|
|
3.70 %
|
|
Temporary investments
and interest-bearing cash
|
1,704,697
|
|
46,588
|
|
5.50 %
|
|
2,158,071
|
|
53,197
|
|
4.97 %
|
|
Total interest-earning
assets (1), (2)
|
48,199,266
|
|
$
1,381,728
|
|
5.75 %
|
|
43,283,329
|
|
$
1,153,544
|
|
5.35 %
|
|
Goodwill and other
intangible assets
|
1,603,686
|
|
|
|
|
|
1,173,900
|
|
|
|
|
|
Other assets
|
2,229,811
|
|
|
|
|
|
2,065,036
|
|
|
|
|
|
Total
assets
|
$ 52,032,763
|
|
|
|
|
|
$
46,522,265
|
|
|
|
|
|
INTEREST-BEARING
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
$ 8,091,427
|
|
$ 105,268
|
|
2.62 %
|
|
$
5,448,974
|
|
$
27,092
|
|
1.00 %
|
|
Money market
deposits
|
10,730,666
|
|
148,963
|
|
2.79 %
|
|
9,657,738
|
|
73,941
|
|
1.54 %
|
|
Savings
deposits
|
2,621,909
|
|
1,644
|
|
0.13 %
|
|
2,993,450
|
|
1,433
|
|
0.10 %
|
|
Time
deposits
|
6,447,865
|
|
149,867
|
|
4.67 %
|
|
3,958,688
|
|
61,555
|
|
3.14 %
|
|
Total interest-bearing
deposits
|
27,891,867
|
|
405,742
|
|
2.93 %
|
|
22,058,850
|
|
164,021
|
|
1.50 %
|
|
Repurchase agreements
and federal funds purchased
|
228,320
|
|
2,781
|
|
2.45 %
|
|
282,699
|
|
1,477
|
|
1.05 %
|
|
Borrowings
|
3,910,440
|
|
100,693
|
|
5.18 %
|
|
4,280,632
|
|
109,768
|
|
5.17 %
|
|
Junior and other
subordinated debentures
|
420,428
|
|
19,734
|
|
9.44 %
|
|
411,944
|
|
17,741
|
|
8.68 %
|
|
Total interest-bearing
liabilities
|
32,451,055
|
|
$ 528,950
|
|
3.28 %
|
|
27,034,125
|
|
$ 293,007
|
|
2.19 %
|
|
Non-interest-bearing
deposits
|
13,684,032
|
|
|
|
|
|
14,518,864
|
|
|
|
|
|
Other
liabilities
|
950,619
|
|
|
|
|
|
822,396
|
|
|
|
|
|
Total
liabilities
|
47,085,706
|
|
|
|
|
|
42,375,385
|
|
|
|
|
|
Common
equity
|
4,947,057
|
|
|
|
|
|
4,146,880
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$ 52,032,763
|
|
|
|
|
|
$
46,522,265
|
|
|
|
|
|
NET INTEREST INCOME
(2)
|
|
|
$ 852,778
|
|
|
|
|
|
$ 860,537
|
|
|
|
NET INTEREST SPREAD
(2)
|
|
|
|
|
2.47 %
|
|
|
|
|
|
3.16 %
|
|
NET INTEREST INCOME
TO EARNING ASSETS OR NET INTEREST
MARGIN (1),
(2)
|
|
|
|
|
3.54 %
|
|
|
|
|
|
3.99 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Non-accrual loans and
leases are included in the average balance.
|
|
(2)
|
Tax-exempt income has
been adjusted to a tax equivalent basis at a 21% tax rate. The
amount of such adjustment was an addition to recorded income of
approximately $2.0 million for the six months ended June 30,
2024, as compared to $1.9 million for the same period in
2023.
|
|
Columbia Banking
System, Inc.
|
|
Residential Mortgage
Banking Activity
|
|
(Unaudited)
|
|
Quarter
Ended
|
|
%
Change
|
|
($ in
thousands)
|
Jun 30,
2024
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Seq.
Quarter
|
|
Year over
Year
|
|
Residential mortgage
banking revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination and
sale
|
$
3,452
|
|
$
2,920
|
|
$
2,686
|
|
$
2,442
|
|
$
3,166
|
|
18 %
|
|
9 %
|
|
Servicing
|
5,952
|
|
6,021
|
|
5,966
|
|
8,887
|
|
9,167
|
|
(1) %
|
|
(35) %
|
|
Change in fair value of
MSR asset:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes due to
collection/realization of expected
cash flows over time
|
(3,183)
|
|
(3,153)
|
|
(3,215)
|
|
(4,801)
|
|
(4,797)
|
|
1 %
|
|
(34) %
|
|
Changes due to
valuation inputs or assumptions
|
1,238
|
|
3,117
|
|
(6,251)
|
|
5,308
|
|
(2,242)
|
|
(60) %
|
|
nm
|
|
MSR hedge (loss)
gain
|
(1,611)
|
|
(4,271)
|
|
5,026
|
|
(4,733)
|
|
(7,636)
|
|
(62) %
|
|
(79) %
|
|
Total
|
$
5,848
|
|
$
4,634
|
|
$
4,212
|
|
$
7,103
|
|
$ (2,342)
|
|
26 %
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closed loan volume
for-sale
|
$
140,875
|
|
$ 86,903
|
|
$ 87,033
|
|
$
103,333
|
|
$
119,476
|
|
62 %
|
|
18 %
|
|
Gain on sale
margin
|
2.45 %
|
|
3.36 %
|
|
3.09 %
|
|
2.36 %
|
|
2.65 %
|
|
-0.91
|
|
-0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
servicing rights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of
period
|
$
110,444
|
|
$
109,243
|
|
$
117,640
|
|
$
172,929
|
|
$
178,800
|
|
1 %
|
|
(38) %
|
|
Additions for new MSR
capitalized
|
1,540
|
|
1,237
|
|
920
|
|
1,658
|
|
1,168
|
|
24 %
|
|
32 %
|
|
Sale of MSR
assets
|
—
|
|
—
|
|
149
|
|
(57,454)
|
|
—
|
|
nm
|
|
nm
|
|
Change in fair value of
MSR asset:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes due to
collection/realization of expected
cash flows over time
|
(3,183)
|
|
(3,153)
|
|
(3,215)
|
|
(4,801)
|
|
(4,797)
|
|
1 %
|
|
(34) %
|
|
Changes due to
valuation inputs or assumptions
|
1,238
|
|
3,117
|
|
(6,251)
|
|
5,308
|
|
(2,242)
|
|
(60) %
|
|
nm
|
|
Balance, end of
period
|
$
110,039
|
|
$
110,444
|
|
$
109,243
|
|
$
117,640
|
|
$
172,929
|
|
— %
|
|
(36) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans serviced for others
|
$ 8,120,046
|
|
$ 8,081,039
|
|
$ 8,175,664
|
|
$
8,240,950
|
|
$
12,726,615
|
|
— %
|
|
(36) %
|
|
MSR as % of serviced
portfolio
|
1.36 %
|
|
1.37 %
|
|
1.34 %
|
|
1.43 %
|
|
1.36 %
|
|
(0.01)
|
|
0.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nm = Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
|
Columbia Banking
System, Inc.
|
|
Residential Mortgage
Banking Activity
|
|
(Unaudited)
|
|
Six Months
Ended
|
|
%
Change
|
|
($ in
thousands)
|
Jun 30,
2024
|
|
Jun 30,
2023
|
|
Year over
Year
|
|
Residential mortgage
banking revenue:
|
|
|
|
|
|
|
Origination and
sale
|
$
6,372
|
|
$
6,753
|
|
(6) %
|
|
Servicing
|
11,973
|
|
18,564
|
|
(36) %
|
|
Change in fair value of
MSR asset:
|
|
|
|
|
|
|
Changes due to
collection/realization of expected cash flows over time
|
(6,336)
|
|
(9,678)
|
|
(35) %
|
|
Changes due to
valuation inputs or assumptions
|
4,355
|
|
(5,179)
|
|
nm
|
|
MSR hedge
loss
|
(5,882)
|
|
(4,986)
|
|
18 %
|
|
Total
|
$
10,482
|
|
$
5,474
|
|
91 %
|
|
|
|
|
|
|
|
Closed loan volume
for-sale
|
$
227,778
|
|
$
251,202
|
|
(9) %
|
|
Gain on sale
margin
|
2.80 %
|
|
2.69 %
|
|
0.11
|
|
|
|
|
|
|
|
Residential mortgage
servicing rights:
|
|
|
|
|
|
|
Balance, beginning of
period
|
$
109,243
|
|
$
185,017
|
|
(41) %
|
|
Additions for new MSR
capitalized
|
2,777
|
|
2,769
|
|
0 %
|
|
Change in fair value of
MSR asset:
|
|
|
|
|
|
|
Changes due to
collection/realization of expected cash flows over time
|
(6,336)
|
|
(9,678)
|
|
(35) %
|
|
Changes due to
valuation inputs or assumptions
|
4,355
|
|
(5,179)
|
|
nm
|
|
Balance, end of
period
|
$
110,039
|
|
$
172,929
|
|
(36) %
|
|
|
|
|
|
|
|
nm = Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
Non-GAAP Financial Measures
In addition to results
presented in accordance with generally accepted accounting
principles in the United States of
America ("GAAP"), this press release contains certain
non-GAAP financial measures. The Company believes presenting
certain non-GAAP financial measures provides investors with
information useful in understanding our financial performance, our
performance trends, and our financial position. We utilize these
measures for internal planning and forecasting purposes, and
operating pre-provision net revenue and operating return on
tangible common equity are also used as part of our incentive
compensation program for our executive officers. We, as well as
securities analysts, investors, and other interested parties, also
use these measures to compare peer company operating performance.
We believe that our presentation and discussion, together with the
accompanying reconciliations, provides a complete understanding of
factors and trends affecting our business and allows investors to
view performance in a manner similar to management. These non-GAAP
measures should not be considered a substitution for GAAP basis
measures and results, and we strongly encourage investors to review
our consolidated financial statements in their entirety and not to
rely on any single financial measure. Because non-GAAP financial
measures are not standardized, it may not be possible to compare
these financial measures with other companies' non-GAAP financial
measures having the same or similar names.
|
Columbia Banking
System, Inc.
|
|
GAAP to Non-GAAP
Reconciliation
|
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
%
Change
|
|
($ in thousands,
except per share data)
|
|
|
Jun 30,
2024
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Seq.
Quarter
|
|
Year
over
Year
|
|
Total shareholders'
equity
|
a
|
|
$ 4,976,672
|
|
$ 4,957,245
|
|
$ 4,995,034
|
|
$ 4,632,162
|
|
$ 4,828,188
|
|
— %
|
|
3 %
|
|
Less:
Goodwill
|
|
|
1,029,234
|
|
1,029,234
|
|
1,029,234
|
|
1,029,234
|
|
1,029,234
|
|
— %
|
|
— %
|
|
Less: Other intangible
assets, net
|
|
|
542,358
|
|
571,588
|
|
603,679
|
|
636,883
|
|
666,762
|
|
(5) %
|
|
(19) %
|
|
Tangible common
shareholders' equity
|
b
|
|
$ 3,405,080
|
|
$ 3,356,423
|
|
$ 3,362,121
|
|
$ 2,966,045
|
|
$ 3,132,192
|
|
1 %
|
|
9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
c
|
|
$
52,047,483
|
|
$
52,224,006
|
|
$
52,173,596
|
|
$
51,993,815
|
|
$
53,592,096
|
|
— %
|
|
(3) %
|
|
Less:
Goodwill
|
|
|
1,029,234
|
|
1,029,234
|
|
1,029,234
|
|
1,029,234
|
|
1,029,234
|
|
— %
|
|
— %
|
|
Less: Other intangible
assets, net
|
|
|
542,358
|
|
571,588
|
|
603,679
|
|
636,883
|
|
666,762
|
|
(5) %
|
|
(19) %
|
|
Tangible
assets
|
d
|
|
$
50,475,891
|
|
$
50,623,184
|
|
$
50,540,683
|
|
$
50,327,698
|
|
$
51,896,100
|
|
— %
|
|
(3) %
|
|
Common shares
outstanding at period end
|
e
|
|
209,459
|
|
209,370
|
|
208,585
|
|
208,575
|
|
208,514
|
|
— %
|
|
— %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity to total assets ratio
|
a / c
|
|
9.56 %
|
|
9.49 %
|
|
9.57 %
|
|
8.91 %
|
|
9.01 %
|
|
0.07
|
|
0.55
|
|
Tangible common equity
ratio
|
b / d
|
|
6.75 %
|
|
6.63 %
|
|
6.65 %
|
|
5.89 %
|
|
6.04 %
|
|
0.12
|
|
0.71
|
|
Book value per common
share
|
a / e
|
|
$
23.76
|
|
$
23.68
|
|
$
23.95
|
|
$
22.21
|
|
$
23.16
|
|
— %
|
|
3 %
|
|
Tangible book value per
common share
|
b / e
|
|
$
16.26
|
|
$
16.03
|
|
$
16.12
|
|
$
14.22
|
|
$
15.02
|
|
1 %
|
|
8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Columbia Banking
System, Inc.
|
|
GAAP to Non-GAAP
Reconciliation - Continued
|
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
%
Change
|
|
($ in
thousands)
|
|
|
Jun 30,
2024
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Seq.
Quarter
|
|
Year
over
Year
|
|
Non-Interest Income
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) gain on sale of
debt securities, net
|
|
|
$
(1)
|
|
$
12
|
|
$
9
|
|
$
4
|
|
$
—
|
|
(108) %
|
|
nm
|
|
Gain (loss) on equity
securities, net
|
|
|
325
|
|
(1,565)
|
|
2,636
|
|
(2,055)
|
|
(697)
|
|
nm
|
|
nm
|
|
Gain (loss) on swap
derivatives
|
|
|
424
|
|
1,197
|
|
(8,042)
|
|
5,700
|
|
1,288
|
|
(65) %
|
|
(67) %
|
|
Change in fair value
of certain loans held for
investment
|
|
|
(10,114)
|
|
(2,372)
|
|
19,354
|
|
(19,247)
|
|
(6,965)
|
|
326 %
|
|
45 %
|
|
Change in fair value
of MSR due to valuation inputs
or assumptions
|
|
|
1,238
|
|
3,117
|
|
(6,251)
|
|
5,308
|
|
(2,242)
|
|
(60) %
|
|
nm
|
|
MSR hedge (loss)
gain
|
|
|
(1,611)
|
|
(4,271)
|
|
5,026
|
|
(4,733)
|
|
(7,636)
|
|
(62) %
|
|
(79) %
|
|
Total non-interest
income adjustments
|
a
|
|
$
(9,739)
|
|
$
(3,882)
|
|
$
12,732
|
|
$
(15,023)
|
|
$
(16,252)
|
|
151 %
|
|
(40) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and
restructuring expense
|
|
|
$
14,641
|
|
$
4,478
|
|
$
7,174
|
|
$
18,938
|
|
$
29,649
|
|
227 %
|
|
(51) %
|
|
Exit and disposal
costs
|
|
|
1,218
|
|
1,272
|
|
2,791
|
|
4,017
|
|
2,119
|
|
(4) %
|
|
(43) %
|
|
FDIC
special assessment (2)
|
|
|
884
|
|
4,848
|
|
32,923
|
|
—
|
|
—
|
|
(82) %
|
|
nm
|
|
Total non-interest
expense adjustments
|
b
|
|
$
16,743
|
|
$
10,598
|
|
$
42,888
|
|
$
22,955
|
|
$
31,768
|
|
58 %
|
|
(47) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
c
|
|
$
427,449
|
|
$
423,362
|
|
$
453,623
|
|
$
480,875
|
|
$
483,975
|
|
1 %
|
|
(12) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income
(GAAP)
|
d
|
|
$
44,703
|
|
$
50,357
|
|
$
65,533
|
|
$
43,981
|
|
$
39,678
|
|
(11) %
|
|
13 %
|
|
Less: Non-interest
income adjustments
|
a
|
|
9,739
|
|
3,882
|
|
(12,732)
|
|
15,023
|
|
16,252
|
|
151 %
|
|
(40) %
|
|
Operating
non-interest income (non-GAAP)
|
e
|
|
$
54,442
|
|
$
54,239
|
|
$
52,801
|
|
$
59,004
|
|
$
55,930
|
|
— %
|
|
(3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
(GAAP)
|
f=c+d
|
|
$
472,152
|
|
$
473,719
|
|
$
519,156
|
|
$
524,856
|
|
$
523,653
|
|
— %
|
|
(10) %
|
|
Operating revenue
(non-GAAP)
|
g=c+e
|
|
$
481,891
|
|
$
477,601
|
|
$
506,424
|
|
$
539,879
|
|
$
539,905
|
|
1 %
|
|
(11) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense
(GAAP)
|
h
|
|
$
279,244
|
|
$
287,516
|
|
$
337,176
|
|
$
304,147
|
|
$
328,559
|
|
(3) %
|
|
(15) %
|
|
Less: Non-interest
expense adjustments
|
b
|
|
(16,743)
|
|
(10,598)
|
|
(42,888)
|
|
(22,955)
|
|
(31,768)
|
|
58 %
|
|
(47) %
|
|
Operating
non-interest expense (non-GAAP)
|
i
|
|
$
262,501
|
|
$
276,918
|
|
$
294,288
|
|
$
281,192
|
|
$
296,791
|
|
(5) %
|
|
(12) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
j
|
|
$
120,144
|
|
$
124,080
|
|
$
93,531
|
|
$
135,845
|
|
$
133,377
|
|
(3) %
|
|
(10) %
|
|
Provision for income
taxes
|
|
|
40,944
|
|
44,987
|
|
33,540
|
|
48,127
|
|
45,703
|
|
(9) %
|
|
(10) %
|
|
Income before provision
for income taxes
|
|
|
161,088
|
|
169,067
|
|
127,071
|
|
183,972
|
|
179,080
|
|
(5) %
|
|
(10) %
|
|
Provision for credit
losses
|
|
|
31,820
|
|
17,136
|
|
54,909
|
|
36,737
|
|
16,014
|
|
86 %
|
|
99 %
|
|
Pre-provision net
revenue (PPNR) (non-GAAP)
|
k
|
|
192,908
|
|
186,203
|
|
181,980
|
|
220,709
|
|
195,094
|
|
4 %
|
|
(1) %
|
|
Less: Non-interest
income adjustments
|
a
|
|
9,739
|
|
3,882
|
|
(12,732)
|
|
15,023
|
|
16,252
|
|
151 %
|
|
(40) %
|
|
Add: Non-interest
expense adjustments
|
b
|
|
16,743
|
|
10,598
|
|
42,888
|
|
22,955
|
|
31,768
|
|
58 %
|
|
(47) %
|
|
Operating PPNR
(non-GAAP)
|
l
|
|
$
219,390
|
|
$
200,683
|
|
$
212,136
|
|
$
258,687
|
|
$
243,114
|
|
9 %
|
|
(10) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
j
|
|
$
120,144
|
|
$
124,080
|
|
$
93,531
|
|
$
135,845
|
|
$
133,377
|
|
(3) %
|
|
(10) %
|
|
Less: Non-interest
income adjustments
|
a
|
|
9,739
|
|
3,882
|
|
(12,732)
|
|
15,023
|
|
16,252
|
|
151 %
|
|
(40) %
|
|
Add: Non-interest
expense adjustments
|
b
|
|
16,743
|
|
10,598
|
|
42,888
|
|
22,955
|
|
31,768
|
|
58 %
|
|
(47) %
|
|
Tax effect of
adjustments
|
|
|
(6,621)
|
|
(3,620)
|
|
(7,539)
|
|
(9,482)
|
|
(11,981)
|
|
83 %
|
|
(45) %
|
|
Operating net income
(non-GAAP)
|
m
|
|
$
140,005
|
|
$
134,940
|
|
$
116,148
|
|
$
164,341
|
|
$
169,416
|
|
4 %
|
|
(17) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nm = Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Columbia Banking
System, Inc.
|
|
GAAP to Non-GAAP
Reconciliation - Continued
|
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
%
Change
|
|
($ in thousands,
except per share data)
|
|
|
Jun 30,
2024
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Seq.
Quarter
|
|
Year
over
Year
|
|
Average
assets
|
n
|
|
$
51,981,555
|
|
$
52,083,973
|
|
$
51,832,356
|
|
$
53,011,361
|
|
$
53,540,574
|
|
— %
|
|
(3) %
|
|
Less: Average goodwill
and other intangible assets,
net
|
|
|
1,588,239
|
|
1,619,134
|
|
1,652,282
|
|
1,684,093
|
|
1,718,705
|
|
(2) %
|
|
(8) %
|
|
Average tangible
assets
|
o
|
|
$
50,393,316
|
|
$
50,464,839
|
|
$
50,180,074
|
|
$
51,327,268
|
|
$
51,821,869
|
|
— %
|
|
(3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common
shareholders' equity
|
p
|
|
$ 4,908,239
|
|
$ 4,985,875
|
|
$ 4,695,736
|
|
$
4,866,975
|
|
$ 4,935,239
|
|
(2) %
|
|
(1) %
|
|
Less: Average goodwill
and other intangible assets,
net
|
|
|
1,588,239
|
|
1,619,134
|
|
1,652,282
|
|
1,684,093
|
|
1,718,705
|
|
(2) %
|
|
(8) %
|
|
Average tangible
common equity
|
q
|
|
$ 3,320,000
|
|
$ 3,366,741
|
|
$ 3,043,454
|
|
$
3,182,882
|
|
$ 3,216,534
|
|
(1) %
|
|
3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
r
|
|
208,498
|
|
208,260
|
|
208,083
|
|
208,070
|
|
207,977
|
|
— %
|
|
— %
|
|
Weighted average
diluted shares outstanding
|
s
|
|
209,011
|
|
208,956
|
|
208,739
|
|
208,645
|
|
208,545
|
|
— %
|
|
— %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select Per-Share
& Performance Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings-per-share -
basic
|
j / r
|
|
$
0.58
|
|
$
0.60
|
|
$
0.45
|
|
$
0.65
|
|
$
0.64
|
|
(3) %
|
|
(9) %
|
|
Earnings-per-share -
diluted
|
j / s
|
|
$
0.57
|
|
$
0.59
|
|
$
0.45
|
|
$
0.65
|
|
$
0.64
|
|
(3) %
|
|
(11) %
|
|
Efficiency ratio
(1)
|
h / f
|
|
59.02 %
|
|
60.57 %
|
|
64.81 %
|
|
57.82 %
|
|
62.60 %
|
|
(1.55)
|
|
(3.58)
|
|
Non-interest expense to
average assets
|
h / n
|
|
2.16 %
|
|
2.22 %
|
|
2.58 %
|
|
2.28 %
|
|
2.46 %
|
|
(0.06)
|
|
(0.30)
|
|
Return on average
assets
|
j / n
|
|
0.93 %
|
|
0.96 %
|
|
0.72 %
|
|
1.02 %
|
|
1.00 %
|
|
(0.03)
|
|
(0.07)
|
|
Return on average
tangible assets
|
j / o
|
|
0.96 %
|
|
0.99 %
|
|
0.74 %
|
|
1.05 %
|
|
1.03 %
|
|
(0.03)
|
|
(0.07)
|
|
PPNR return on average
assets
|
k / n
|
|
1.49 %
|
|
1.44 %
|
|
1.39 %
|
|
1.65 %
|
|
1.46 %
|
|
0.05
|
|
0.03
|
|
Return on average
common equity
|
j / p
|
|
9.85 %
|
|
10.01 %
|
|
7.90 %
|
|
11.07 %
|
|
10.84 %
|
|
(0.16)
|
|
(0.99)
|
|
Return on average
tangible common equity
|
j / q
|
|
14.55 %
|
|
14.82 %
|
|
12.19 %
|
|
16.93 %
|
|
16.63 %
|
|
(0.27)
|
|
(2.08)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Per-Share
& Performance Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings-per-share - basic (2)
|
m / r
|
|
$
0.67
|
|
$
0.65
|
|
$
0.56
|
|
$
0.79
|
|
$
0.81
|
|
3 %
|
|
(17) %
|
|
Operating
earnings-per-share - diluted (2)
|
m / s
|
|
$
0.67
|
|
$
0.65
|
|
$
0.56
|
|
$
0.79
|
|
$
0.81
|
|
3 %
|
|
(17) %
|
|
Operating efficiency
ratio, as adjusted (1), (2), (3)
|
u / y
|
|
53.56 %
|
|
56.97 %
|
|
57.31 %
|
|
51.26 %
|
|
54.04 %
|
|
(3.41)
|
|
(0.48)
|
|
Operating non-interest
expense to average assets
|
i / n
|
|
2.03 %
|
|
2.14 %
|
|
2.25 %
|
|
2.10 %
|
|
2.22 %
|
|
(0.11)
|
|
(0.19)
|
|
Operating return on
average assets (2)
|
m / n
|
|
1.08 %
|
|
1.04 %
|
|
0.89 %
|
|
1.23 %
|
|
1.27 %
|
|
0.04
|
|
(0.19)
|
|
Operating return on
average tangible assets (2)
|
m / o
|
|
1.12 %
|
|
1.08 %
|
|
0.92 %
|
|
1.27 %
|
|
1.31 %
|
|
0.04
|
|
(0.19)
|
|
Operating PPNR return
on average assets (2)
|
l / n
|
|
1.70 %
|
|
1.55 %
|
|
1.62 %
|
|
1.94 %
|
|
1.82 %
|
|
0.15
|
|
(0.12)
|
|
Operating return on
average common equity (2)
|
m / p
|
|
11.47 %
|
|
10.89 %
|
|
9.81 %
|
|
13.40 %
|
|
13.77 %
|
|
0.58
|
|
(2.30)
|
|
Operating return on
average tangible common equity (2)
|
m / q
|
|
16.96 %
|
|
16.12 %
|
|
15.14 %
|
|
20.48 %
|
|
21.13 %
|
|
0.84
|
|
(4.17)
|
|
|
|
(1)
|
Tax-exempt interest has
been adjusted to a taxable equivalent basis using a 21% tax rate
and added to stated revenue for this calculation.
|
|
(2)
|
Non-interest expense
adjustments were revised subsequent to the Company's reporting of
its earnings results for the period ended December 31, 2023. The
revision includes the FDIC special assessment in non-interest
expense adjustments, which removes the special assessment from the
Company's calculation of operating non-interest expense. The
Company views the special assessment as an infrequent expense that
is outside the control of the Company.
|
|
(3)
|
The operating
efficiency ratio was adjusted in the first quarter of 2024 to
remove B&O taxes and for a tax-equivalent adjustment to BOLI
income. The Company views the adjusted operating efficiency ratio
as a better representation of its efficiency ratio when compared to
other banks as it normalizes for the tax treatment of the adjusted
items. The adjustment re-aligns Columbia's calculation of its
operating efficiency ratio with its pre-merger
calculation.
|
|
Columbia Banking
System, Inc.
|
|
GAAP to Non-GAAP
Reconciliation - Continued
|
|
Operating Efficiency
Ratio, as adjusted
|
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
%
Change
|
|
($ in
thousands)
|
|
|
Jun 30,
2024
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Seq.
Quarter
|
|
Year over
Year
|
|
Non-interest expense
(GAAP)
|
h
|
|
$
279,244
|
|
$
287,516
|
|
$
337,176
|
|
$
304,147
|
|
$
328,559
|
|
(3) %
|
|
(15) %
|
|
Less: Non-interest
expense adjustments
|
b
|
|
(16,743)
|
|
(10,598)
|
|
(42,888)
|
|
(22,955)
|
|
(31,768)
|
|
58 %
|
|
(47) %
|
|
Operating
non-interest expense (non-GAAP)
|
i
|
|
262,501
|
|
276,918
|
|
294,288
|
|
281,192
|
|
296,791
|
|
(5) %
|
|
(12) %
|
|
Less: B&O
taxes
|
t
|
|
(3,183)
|
|
(3,223)
|
|
(2,727)
|
|
(3,275)
|
|
(3,647)
|
|
(1) %
|
|
(13) %
|
|
Operating
non-interest expense, excluding B&O
taxes (non-GAAP)
|
u
|
|
$
259,318
|
|
$
273,695
|
|
$
291,561
|
|
$
277,917
|
|
$
293,144
|
|
(5) %
|
|
(12) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(tax equivalent) (1)
|
v
|
|
$
428,434
|
|
$
424,344
|
|
$
454,730
|
|
$
482,031
|
|
$
485,168
|
|
1 %
|
|
(12) %
|
|
Non-interest income
(GAAP)
|
d
|
|
44,703
|
|
50,357
|
|
65,533
|
|
43,981
|
|
39,678
|
|
(11) %
|
|
13 %
|
|
Add: BOLI tax
equivalent adjustment (1)
|
w
|
|
1,291
|
|
1,809
|
|
1,182
|
|
1,178
|
|
1,360
|
|
(29) %
|
|
(5) %
|
|
Total Revenue,
excluding BOLI tax equivalent
adjustments (tax equivalent)
|
x
|
|
474,428
|
|
476,510
|
|
521,445
|
|
527,190
|
|
526,206
|
|
— %
|
|
(10) %
|
|
Less: Non-interest
income adjustments
|
a
|
|
9,739
|
|
3,882
|
|
(12,732)
|
|
15,023
|
|
16,252
|
|
151 %
|
|
(40) %
|
|
Total Adjusted
Operating Revenue, excluding BOLI
tax equivalent adjustments (tax equivalent) (non-
GAAP)
|
y
|
|
$
484,167
|
|
$
480,392
|
|
$
508,713
|
|
$
542,213
|
|
$
542,458
|
|
1 %
|
|
(11) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(1)
|
h / f
|
|
59.02 %
|
|
60.57 %
|
|
64.81 %
|
|
57.82 %
|
|
62.60 %
|
|
(1.55)
|
|
(3.58)
|
|
Operating efficiency
ratio, as adjusted (non-GAAP)
(1), (2), (3)
|
u / y
|
|
53.56 %
|
|
56.97 %
|
|
57.31 %
|
|
51.26 %
|
|
54.04 %
|
|
(3.41)
|
|
(0.48)
|
|
|
|
(1)
|
Tax-exempt income has
been adjusted to a taxable equivalent basis using a 21% tax rate
and added to stated revenue for this calculation.
|
|
(2)
|
Non-interest expense
adjustments were revised subsequent to the Company's reporting of
its earnings results for the period ended December 31, 2023. The
revision includes the FDIC special assessment in non-interest
expense adjustments, which removes the special assessment from the
Company's calculation of operating non-interest expense. The
Company views the special assessment as an infrequent expense that
is outside the control of the Company.
|
|
(3)
|
The operating
efficiency ratio was adjusted in the first quarter of 2024 to
remove B&O taxes and for a tax-equivalent adjustment to BOLI
income. The Company views the adjusted operating efficiency ratio
as a better representation of its efficiency ratio when compared to
other banks as it normalizes for the tax treatment of the adjusted
items. The adjustment re-aligns Columbia's calculation of its
operating efficiency ratio with its pre-merger
calculation.
|
|
Columbia Banking
System, Inc.
|
|
GAAP to Non-GAAP
Reconciliation - Continued
|
|
(Unaudited)
|
|
|
|
Six Months
Ended
|
|
%
Change
|
|
($ in
thousands)
|
|
|
Jun 30,
2024
|
|
Jun 30,
2023
|
|
Year over
Year
|
|
Non-Interest Income
Adjustments
|
|
|
|
|
|
|
|
|
Gain on sale of debt
securities, net
|
|
|
$
11
|
|
$
—
|
|
nm
|
|
(Loss) gain on equity
securities, net
|
|
|
(1,240)
|
|
1,719
|
|
(172) %
|
|
Gain (loss) on swap
derivatives
|
|
|
1,621
|
|
(2,255)
|
|
nm
|
|
Change in fair value
of certain loans held for investment
|
|
|
(12,486)
|
|
2,523
|
|
nm
|
|
Change in fair value
of MSR due to valuation inputs or assumptions
|
|
|
4,355
|
|
(5,179)
|
|
nm
|
|
MSR hedge
loss
|
|
|
(5,882)
|
|
(4,986)
|
|
18 %
|
|
Total non-interest
income adjustments
|
a
|
|
$
(13,621)
|
|
$
(8,178)
|
|
67 %
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense
Adjustments
|
|
|
|
|
|
|
|
|
Merger and
restructuring expense
|
|
|
$
19,119
|
|
$
145,547
|
|
(87) %
|
|
Exit and disposal
costs
|
|
|
2,490
|
|
3,410
|
|
(27) %
|
|
FDIC
special assessment (2)
|
|
|
$
5,732
|
|
$
—
|
|
nm
|
|
Total non-interest
expense adjustments
|
b
|
|
$
27,341
|
|
$
148,957
|
|
(82) %
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
c
|
|
$
850,811
|
|
$
858,673
|
|
(1) %
|
|
|
|
|
|
|
|
|
|
Non-interest income
(GAAP)
|
d
|
|
$
95,060
|
|
$
94,413
|
|
1 %
|
|
Less: Non-interest
income adjustments
|
a
|
|
13,621
|
|
8,178
|
|
67 %
|
|
Operating
non-interest income (non-GAAP)
|
e
|
|
$
108,681
|
|
$
102,591
|
|
6 %
|
|
|
|
|
|
|
|
|
|
Revenue
(GAAP)
|
f=c+d
|
|
$
945,871
|
|
$
953,086
|
|
(1) %
|
|
Operating revenue
(non-GAAP)
|
g=c+e
|
|
$
959,492
|
|
$
961,264
|
|
— %
|
|
|
|
|
|
|
|
|
|
Non-interest expense
(GAAP)
|
h
|
|
$
566,760
|
|
$
671,377
|
|
(16) %
|
|
Less: Non-interest
expense adjustments
|
b
|
|
(27,341)
|
|
(148,957)
|
|
(82) %
|
|
Operating
non-interest expense (non-GAAP)
|
i
|
|
$
539,419
|
|
$
522,420
|
|
3 %
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
j
|
|
$
244,224
|
|
$
119,339
|
|
105 %
|
|
Provision for income
taxes
|
|
|
85,931
|
|
40,817
|
|
111 %
|
|
Income before provision
for income taxes
|
|
|
330,155
|
|
160,156
|
|
106 %
|
|
Provision for credit
losses
|
|
|
48,956
|
|
121,553
|
|
(60) %
|
|
Pre-provision net
revenue (PPNR) (non-GAAP)
|
k
|
|
379,111
|
|
281,709
|
|
35 %
|
|
Less: Non-interest
income adjustments
|
a
|
|
13,621
|
|
8,178
|
|
67 %
|
|
Add: Non-interest
expense adjustments
|
b
|
|
27,341
|
|
148,957
|
|
(82) %
|
|
Operating PPNR
(non-GAAP)
|
l
|
|
$
420,073
|
|
$
438,844
|
|
(4) %
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
j
|
|
$
244,224
|
|
$
119,339
|
|
105 %
|
|
Less: Non-interest
income adjustments
|
a
|
|
13,621
|
|
8,178
|
|
67 %
|
|
Add: Non-interest
expense adjustments
|
b
|
|
27,341
|
|
148,957
|
|
(82) %
|
|
Tax effect of
adjustments
|
|
|
(10,241)
|
|
(35,546)
|
|
(71) %
|
|
Operating net income
(non-GAAP)
|
m
|
|
$
274,945
|
|
$
240,928
|
|
14 %
|
|
|
|
|
|
|
|
|
nm = Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
|
Average
assets
|
n
|
|
$
52,032,763
|
|
$
46,522,265
|
|
12 %
|
|
Less: Average goodwill
and other intangible assets, net
|
|
|
1,603,686
|
|
1,173,900
|
|
37 %
|
|
Average tangible
assets
|
o
|
|
$
50,429,077
|
|
$
45,348,365
|
|
11 %
|
|
|
|
|
|
|
|
|
|
Average common
shareholders' equity
|
p
|
|
$
4,947,057
|
|
$
4,146,880
|
|
19 %
|
|
Less: Average goodwill
and other intangible assets, net
|
|
|
1,603,686
|
|
1,173,900
|
|
37 %
|
|
Average tangible
common equity
|
q
|
|
$
3,343,371
|
|
$
2,972,980
|
|
12 %
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding
|
r
|
|
208,379
|
|
182,325
|
|
14 %
|
|
Weighted average
diluted shares outstanding
|
s
|
|
208,999
|
|
182,860
|
|
14 %
|
|
|
|
|
|
|
|
|
|
Select Per-Share
& Performance Metrics
|
|
|
|
|
|
|
|
|
Earnings-per-share -
basic
|
j / r
|
|
$
1.17
|
|
$
0.65
|
|
80 %
|
|
Earnings-per-share -
diluted
|
j / s
|
|
$
1.17
|
|
$
0.65
|
|
80 %
|
|
Efficiency ratio
(1)
|
h / f
|
|
59.80 %
|
|
70.30 %
|
|
(10.50)
|
|
Non-interest expense to
average assets
|
h/n
|
|
2.19 %
|
|
2.91 %
|
|
(0.72)
|
|
Return on average
assets
|
j / n
|
|
0.94 %
|
|
0.52 %
|
|
0.42
|
|
Return on average
tangible assets
|
j / o
|
|
0.97 %
|
|
0.53 %
|
|
0.44
|
|
PPNR return on average
assets
|
k/n
|
|
1.47 %
|
|
1.22 %
|
|
0.25
|
|
Return on average
common equity
|
j / p
|
|
9.93 %
|
|
5.80 %
|
|
4.13
|
|
Return on average
tangible common equity
|
j / q
|
|
14.69 %
|
|
8.09 %
|
|
6.60
|
|
|
|
|
|
|
|
|
|
Operating Per-Share
& Performance Metrics
|
|
|
|
|
|
|
|
|
Operating
earnings-per-share - basic (2)
|
m / r
|
|
$
1.32
|
|
$
1.32
|
|
— %
|
|
Operating
earnings-per-share - diluted (2)
|
m / s
|
|
$
1.32
|
|
$
1.32
|
|
— %
|
|
Operating efficiency
ratio, as adjusted (1), (2), (3)
|
u / y
|
|
55.26 %
|
|
53.51 %
|
|
1.75
|
|
Operating non-interest
expense to average assets
|
i/n
|
|
2.08 %
|
|
2.26 %
|
|
(0.18)
|
|
Operating return on
average assets (2)
|
m / n
|
|
1.06 %
|
|
1.04 %
|
|
0.02
|
|
Operating return on
average tangible assets (2)
|
m / o
|
|
1.10 %
|
|
1.07 %
|
|
0.03
|
|
Operating PPNR return
on average assets (2)
|
l / n
|
|
1.62 %
|
|
1.90 %
|
|
(0.28)
|
|
Operating return on
average common equity (2)
|
m / p
|
|
11.18 %
|
|
11.72 %
|
|
(0.54)
|
|
Operating return on
average tangible common equity (2)
|
m / q
|
|
16.54 %
|
|
16.34 %
|
|
0.20
|
|
|
|
(1)
|
Tax-exempt interest has
been adjusted to a taxable equivalent basis using a 21% tax rate
and added to stated revenue for this calculation.
|
|
(2)
|
Non-interest expense
adjustments were revised subsequent to the Company's reporting of
its earnings results for the period ended December 31, 2023. The
revision includes the FDIC special assessment in non-interest
expense adjustments, which removes the special assessment from the
Company's calculation of operating non-interest expense. The
Company views the special assessment as an infrequent expense that
is outside the control of the Company.
|
|
(3)
|
The operating
efficiency ratio was adjusted in the first quarter of 2024 to
remove B&O taxes and for a tax-equivalent adjustment to BOLI
income. The Company views the adjusted operating efficiency ratio
as a better representation of its efficiency ratio when compared to
other banks as it normalizes for the tax treatment of the adjusted
items. The adjustment re-aligns Columbia's calculation of its
operating efficiency ratio with its pre-merger
calculation.
|
|
Columbia Banking
System, Inc.
|
|
GAAP to Non-GAAP
Reconciliation - Continued
|
|
Operating Efficiency
Ratio, as adjusted
|
|
(Unaudited)
|
|
|
|
Six Months
Ended
|
|
%
change
|
|
($ in
thousands)
|
|
|
Jun 30,
2024
|
|
Jun 30,
2023
|
|
Year over
Year
|
|
Non-interest expense
(GAAP)
|
h
|
|
$
566,760
|
|
$
671,377
|
|
(16) %
|
|
Less: Non-interest
expense adjustments
|
b
|
|
(27,341)
|
|
(148,957)
|
|
(82) %
|
|
Operating
non-interest expense (non-GAAP)
|
i
|
|
539,419
|
|
522,420
|
|
3 %
|
|
Less: B&O
taxes
|
t
|
|
(6,406)
|
|
(5,776)
|
|
11 %
|
|
Operating
non-interest expense, excluding B&O taxes
(non-GAAP)
|
u
|
|
$
533,013
|
|
$
516,644
|
|
3 %
|
|
|
|
|
|
|
|
|
|
Net interest income
(tax equivalent) (1)
|
v
|
|
$
852,778
|
|
$
860,537
|
|
(1) %
|
|
Non-interest income
(GAAP)
|
d
|
|
95,060
|
|
94,413
|
|
1 %
|
|
Add: BOLI tax
equivalent adjustment (1)
|
w
|
|
3,100
|
|
2,317
|
|
34 %
|
|
Total Revenue,
excluding BOLI tax equivalent adjustments (tax
equivalent)
|
x
|
|
950,938
|
|
957,267
|
|
(1) %
|
|
Less: Non-interest
income adjustments
|
a
|
|
13,621
|
|
8,178
|
|
67 %
|
|
Total Adjusted
Operating Revenue, excluding BOLI tax equivalent adjustments
(tax
equivalent) (non-GAAP)
|
y
|
|
$
964,559
|
|
$
965,445
|
|
— %
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(1)
|
h /f
|
|
59.80 %
|
|
70.30 %
|
|
(10.50)
|
|
Operating efficiency
ratio, as adjusted (non-GAAP) (1), (2), (3)
|
u / y
|
|
55.26 %
|
|
53.51 %
|
|
1.75
|
|
|
|
(1)
|
Tax-exempt income has
been adjusted to a taxable equivalent basis using a 21% tax rate
and added to stated revenue for this calculation.
|
|
(2)
|
Non-interest expense
adjustments were revised subsequent to the Company's reporting of
its earnings results for the period ended December 31, 2023. The
revision includes the FDIC special assessment in non-interest
expense adjustments, which removes the special assessment from the
Company's calculation of operating non-interest expense. The
Company views the special assessment as an infrequent expense that
is outside the control of the Company.
|
|
(3)
|
The operating
efficiency ratio was adjusted in the first quarter of 2024 to
remove B&O taxes and for a tax-equivalent adjustment to BOLI
income. The Company views the adjusted operating efficiency ratio
as a better representation of its efficiency ratio when compared to
other banks as it normalizes for the tax treatment of the adjusted
items. The adjustment re-aligns Columbia's calculation of its
operating efficiency ratio with its pre-merger
calculation.
|
|
Columbia Banking
System, Inc.
|
|
GAAP to Non-GAAP
Reconciliation - Continued
|
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
%
Change
|
|
($ in
thousands)
|
|
|
Jun 30,
2024
|
|
Mar 31,
2024
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Seq.
Quarter
|
|
Year over
Year
|
|
Loans and leases
interest income
|
a
|
|
$ 582,246
|
|
$ 574,519
|
|
$ 577,092
|
|
$ 567,929
|
|
$
551,997
|
|
1 %
|
|
5 %
|
|
Less: Acquired loan
accretion - rate related (2), (3)
|
b
|
|
24,942
|
|
23,482
|
|
26,914
|
|
28,963
|
|
30,548
|
|
6 %
|
|
(18) %
|
|
Less: Acquired loan
accretion - credit related (3)
|
c
|
|
4,835
|
|
5,119
|
|
5,430
|
|
6,370
|
|
7,100
|
|
(6) %
|
|
(32) %
|
|
Adjusted loans and
leases interest income
|
d=a-b-c
|
|
$ 552,469
|
|
$ 545,918
|
|
$ 544,748
|
|
$ 532,596
|
|
$
514,349
|
|
1 %
|
|
7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities
interest income
|
e
|
|
$
81,723
|
|
$
78,724
|
|
$
82,872
|
|
$
85,007
|
|
$
81,617
|
|
4 %
|
|
— %
|
|
Less: Acquired taxable
securities accretion - rate related
|
f
|
|
40,120
|
|
31,527
|
|
34,290
|
|
39,219
|
|
34,801
|
|
27 %
|
|
15 %
|
|
Adjusted Taxable
securities interest income
|
g=e-f
|
|
$
41,603
|
|
$
47,197
|
|
$
48,582
|
|
$
45,788
|
|
$
46,816
|
|
(12) %
|
|
(11) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-taxable
securities interest income (1)
|
h
|
|
$
7,889
|
|
$
7,886
|
|
$
8,073
|
|
$
8,085
|
|
$
8,010
|
|
— %
|
|
(2) %
|
|
Less: Acquired
non-taxable securities accretion - rate related
|
i
|
|
2,256
|
|
2,270
|
|
2,309
|
|
2,288
|
|
2,274
|
|
(1) %
|
|
(1) %
|
|
Adjusted Taxable
securities interest income (1)
|
j=h-i
|
|
$
5,633
|
|
$
5,616
|
|
$
5,764
|
|
$
5,797
|
|
$
5,736
|
|
— %
|
|
(2) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
(1)
|
k
|
|
$ 696,521
|
|
$ 685,207
|
|
$ 692,741
|
|
$ 697,169
|
|
$
676,922
|
|
2 %
|
|
3 %
|
|
Less: Acquired loan
and securities accretion - rate related (3)
|
l=b+f+i
|
|
67,318
|
|
57,279
|
|
63,513
|
|
70,470
|
|
67,623
|
|
18 %
|
|
— %
|
|
Less: Acquired loan
accretion - credit related (3)
|
c
|
|
4,835
|
|
5,119
|
|
5,430
|
|
6,370
|
|
7,100
|
|
(6) %
|
|
(32) %
|
|
Adjusted interest
income (1)
|
m=k-l-c
|
|
$ 624,368
|
|
$ 622,809
|
|
$ 623,798
|
|
$ 620,329
|
|
$
602,199
|
|
— %
|
|
4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits interest expense
|
n
|
|
$ 207,307
|
|
$ 198,435
|
|
$ 170,659
|
|
$ 126,974
|
|
$
100,408
|
|
4 %
|
|
106 %
|
|
Less: Acquired deposit
accretion
|
o
|
|
—
|
|
—
|
|
(187)
|
|
(373)
|
|
(280)
|
|
nm
|
|
nm
|
|
Adjusted
interest-bearing deposits interest expense
|
p=n-o
|
|
$ 207,307
|
|
$ 198,435
|
|
$ 170,846
|
|
$ 127,347
|
|
$
100,688
|
|
4 %
|
|
106 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
q
|
|
$ 268,087
|
|
$ 260,863
|
|
$ 238,011
|
|
$ 215,138
|
|
$
191,754
|
|
3 %
|
|
40 %
|
|
Less: Acquired
interest-bearing liabilities accretion (2)
|
r
|
|
(57)
|
|
(57)
|
|
(244)
|
|
(430)
|
|
(337)
|
|
— %
|
|
(83) %
|
|
Adjusted interest
expense
|
s=q-r
|
|
$ 268,144
|
|
$ 260,920
|
|
$ 238,255
|
|
$ 215,568
|
|
$
192,091
|
|
3 %
|
|
40 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income
(1)
|
t
|
|
$ 428,434
|
|
$ 424,344
|
|
$ 454,730
|
|
$ 482,031
|
|
$
485,168
|
|
1 %
|
|
(12) %
|
|
Less: Acquired loan,
securities, and interest-bearing liabilities accretion - rate
related (3)
|
u=l-r
|
|
67,375
|
|
57,336
|
|
63,757
|
|
70,900
|
|
67,960
|
|
18 %
|
|
(1) %
|
|
Less: Acquired loan
accretion - credit related (3)
|
c
|
|
4,835
|
|
5,119
|
|
5,430
|
|
6,370
|
|
7,100
|
|
(6) %
|
|
(32) %
|
|
Adjusted net
interest income (1)
|
v=t-u-c
|
|
$ 356,224
|
|
$ 361,889
|
|
$ 385,543
|
|
$ 404,761
|
|
$
410,108
|
|
(2) %
|
|
(13) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans and
leases
|
aa
|
|
37,663,396
|
|
37,597,101
|
|
37,333,310
|
|
37,050,518
|
|
37,169,315
|
|
— %
|
|
1 %
|
|
Average taxable
securities
|
ab
|
|
7,839,202
|
|
8,081,003
|
|
7,903,053
|
|
8,356,165
|
|
8,656,147
|
|
(3) %
|
|
(9) %
|
|
Average non-taxable
securities
|
ac
|
|
825,030
|
|
851,342
|
|
809,551
|
|
844,417
|
|
865,278
|
|
(3) %
|
|
(5) %
|
|
Average
interest-earning assets
|
ad
|
|
48,117,746
|
|
48,280,787
|
|
47,838,229
|
|
48,981,105
|
|
49,442,518
|
|
— %
|
|
(3) %
|
|
Average
interest-bearing deposits
|
ae
|
|
28,041,156
|
|
27,742,579
|
|
26,622,343
|
|
25,121,745
|
|
24,494,717
|
|
1 %
|
|
14 %
|
|
Average
interest-bearing liabilities
|
af
|
|
|