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Fourth Quarter 2023 Results
TACOMA, Wash., Jan. 24, 2024 /PRNewswire/ --
COLUMBIA BANKING SYSTEM, INC. REPORTS FOURTH QUARTER 2023 RESULTS | ||||||
$0.45 | $0.44 | $23.95 | $16.12 | |||
Earnings per diluted common share | Operating earnings per diluted common share 1 | Book value per common share | Tangible book value per common share 1 | |||
CEO Commentary |
"It was a historic year for Columbia Banking System and Umpqua Bank," said Clint Stein, President and CEO. "We closed and integrated the transformational combination of the Northwest's premier banking organizations, expanding our footprint to encompass eight Western states as we achieved our cost-savings targets ahead of schedule and above our original projections. With the integration behind us, we are now turning our focus to optimizing performance and driving shareholder value. The fourth quarter was noisy with the FDIC special assessment and some one-time expense items. Our cost of funds is not immune to the higher-rate environment, as we had some 2022 vintage CDs reprice and saw a material increase in public deposits impact our margin. However, we believe neither of these items dilutes the quality of our core deposit base. Our scale, products, and services empower our talented base of associates to win business, which we believe long-term will drive consistent, repeatable performance." |
–Clint Stein, President and CEO of Columbia Banking System, Inc. |
4Q23 HIGHLIGHTS (COMPARED TO 3Q23) | ||
Net Interest Income and NIM | • Net interest income decreased to $454 million from $481 million in 3Q23 due primarily to higher deposit costs that more than offset a decline in the cost of wholesale borrowings. | |
• Net interest margin was 3.78%, down 13 basis points from the prior quarter. Higher earning asset yields and a more profitable mix of earning assets were offset by higher deposit costs. Higher balances in public deposits and CD repricing contributed to the quarter's net interest margin contraction. | ||
Non-Interest Income andExpense | • Non-interest income increased by $22 million due primarily to a $28 million favorable change in cumulative non-merger fair value accounting and hedges. Lower mortgage banking revenue reflects an anticipated decline in servicing revenue following the MSR asset sale that closed on September 30, 2023. | |
• Non-interest expense increased by $33 million due to a $33 millionFDIC special assessment recorded during the quarter and other elevated expense items, which offset lower merger-related expense. | ||
Credit Quality | • Net charge-offs were 0.31% of average loans and leases (annualized) compared to 0.25% in the prior quarter. Charge-off activity remains primarily centered in the FinPac portfolio. | |
• Provision expense of $55 million reflects changes in the economic forecasts used in credit models and portfolio migration trends. | ||
• Non-performing assets to total assets was 0.22% compared to 0.20% at September 30, 2023. | ||
Capital | • Estimated total risk-based capital ratio of 11.8% and estimated common equity tier 1 risk-based capital ratio of 9.6%. | |
• Declared a quarterly cash dividend of $0.36 per common share on November 13, 2023, which was paid December 11, 2023. | ||
Notable items | • Consolidated five branches in January 2024. | |
• Incurred $7 million in merger-related expense. | ||
4Q23 KEY FINANCIAL DATA | |||||
PERFORMANCE METRICS | 4Q23 | 3Q23 | 4Q22 | ||
Return on average assets | 0.72 % | 1.02 % | 1.04 % | ||
Return on average common equity | 7.90 % | 11.07 % | 13.50 % | ||
Return on average tangible common equity 1 | 12.19 % | 16.93 % | 13.53 % | ||
Operating return on average assets 1 | 0.70 % | 1.23 % | 1.24 % | ||
Operating return on average common equity 1 | 7.73 % | 13.40 % | 16.14 % | ||
Operating return on average tangible common equity 1 | 11.92 % | 20.48 % | 16.18 % | ||
Net interest margin | 3.78 % | 3.91 % | 4.01 % | ||
Efficiency ratio | 64.81 % | 57.82 % | 57.24 % | ||
INCOME STATEMENT ($ in 000s, excl. per share data) | 4Q23 | 3Q23 | 4Q22 | ||
Net interest income | $453,623 | $480,875 | $305,479 | ||
Provision for credit losses | $54,909 | $36,737 | $32,948 | ||
Non-interest income | $65,533 | $43,981 | $34,879 | ||
Non-interest expense | $337,176 | $304,147 | $194,982 | ||
Pre-provision net revenue 1 | $181,980 | $220,709 | $145,376 | ||
Operating pre-provision net revenue1 | $179,213 | $258,687 | $167,094 | ||
Earnings per common share - diluted 2 | $0.45 | $0.65 | $0.64 | ||
Operating earnings per common share - diluted 1,2 | $0.44 | $0.79 | $0.76 | ||
Dividends paid per share 2 | $0.36 | $0.36 | $0.35 | ||
BALANCE SHEET | 4Q23 | 3Q23 | 4Q22 | ||
Total assets | $52.2B | $52.0B | $31.8B | ||
Loans and leases | $37.4B | $37.2B | $26.2B | ||
Total deposits | $41.6B | $41.6B | $27.1B | ||
Book value per common share 2 | $23.95 | $22.21 | $19.18 | ||
Tangible book value per share1,2 | $16.12 | $14.22 | $19.14 | ||
1 "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for the comparable GAAP measurement. | |||||||
2 Periods prior to February 28, 2023, have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the merger of 0.5958. | |||||||
Organizational UpdateColumbia Banking System, Inc. ("Columbia", "we", or "our") realized $143 million in annualized net merger-related cost-savings as of December 31, 2023, outpacing the $135 million target communicated when the combination was announced. As the integration process is now largely complete, we do not intend to provide future updates on cost savings realizations. However, Columbia has a history of prudent expense management, and the company will continue to evaluate opportunities for improved efficiency as part of the normal course of business to offset franchise development investments. As previously disclosed, Umpqua Bank, the primary subsidiary of Columbia, consolidated five branches during January 2024.
On February 28, 2023, Columbia completed its merger with Umpqua Holdings Corporation ("UHC"), combining the two premier banks in the Northwest to create one of the largest banks headquartered in the West (the "merger"). Columbia's financial results for any periods ended prior to February 28, 2023 reflect UHC results only on a standalone basis. In addition, Columbia's reported financial results for the first quarter of 2023 reflect UHC financial results only until the closing of the merger after the close of business on February 28, 2023. As a result of these two factors, Columbia's financial results for each of the quarters of 2023 and the year ended December 31, 2023 may not be directly comparable to prior reported periods. The number of shares issued and outstanding, earnings per share, additional paid-in capital, and all references to share quantities or metrics of Columbia have been retrospectively restated to reflect the equivalent number of shares issued in the merger as the merger was treated as a reverse merger. 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 IncomeNet interest income was $454 million for the fourth quarter of 2023, down $27 million from the prior quarter. The decline reflects higher deposit costs that more than offset a decline in the cost of wholesale borrowings.
Columbia's net interest margin was 3.78% for the fourth quarter of 2023, down 13 basis points from 3.91% for the third quarter of 2023. The cost of interest-bearing deposits increased 53 basis points on a linked-quarter basis to 2.54% for the fourth quarter of 2023, which compares to 2.71% for the month of December and 2.75% at December 31, 2023. Deposit costs were impacted by the full quarter's run rate of brokered deposits added during the third quarter to replace maturing FHLB advances. Further, higher public deposit balances, which reflect seasonal tax-related trends and a focused effort to attract relationship-based public funds in local communities as we work to reduce wholesale funding, also had an impact. Public balances tend to carry a higher interest rate than most other non-maturity deposit balances. Time deposits also contributed to the quarter's increased cost of deposits as many maturing balances repriced over 200 basis points higher at the expiration of their 12- and 13-month terms. Columbia's cost of interest-bearing liabilities increased 30 basis points on a linked-quarter basis to 3.02% for the fourth quarter of 2023, which compares to 3.15% for the month of December and 3.19% at December 31, 2023. A reduction in the balance of average wholesale borrowings resulted in a smaller increase in the cost of interest-bearing liabilities compared to interest-bearing deposits. Please refer to the Q4 2023 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 IncomeNon-interest income was $66 million for the fourth quarter of 2023, up $22 million from the prior quarter. A $28 million favorable change in fair value adjustments and mortgage servicing rights ("MSR") hedging activity reflects a net fair value gain of $13 million in the fourth quarter, compared to a net fair value loss of $15 million in the third quarter, as detailed in our non-GAAP disclosures. This benefit was partially offset by lower mortgage servicing income following the September 30, 2023 sale of approximately one-third of Columbia's MSR assets, which reduced the serviced loan portfolio by an equivalent amount.
Non-interest ExpenseNon-interest expense was $337 million for the fourth quarter of 2023, up $33 million from the prior quarter. The increase was driven by a recorded $33 million expense for the special assessment from the FDIC to replenish the Deposit Insurance Fund following bank closures earlier in 2023. The fourth quarter was also impacted by other elevated expense items that offset a $12 million decline in merger-related expense, which was $7 million in the fourth quarter. Please refer to the Q4 2023 Earnings Presentation for additional expense details, including an update on realized merger-related cost-savings through December 31, 2023.
Balance SheetTotal consolidated assets were $52.2 billion as of December 31, 2023, essentially unchanged from September 30, 2023. Cash and cash equivalents was $2.2 billion as of December 31, 2023, a decrease of $241 million relative to September 30, 2023. Including secured off-balance sheet lines of credit, total available liquidity was $18.7 billion as of December 31, 2023, representing 36% of total assets, 45% of total deposits, and 138% of uninsured deposits. Available for sale ("AFS") securities, which are held on balance sheet at fair value, were $8.8 billion as of December 31, 2023, an increase of $326 million relative to September 30, 2023, as an increase in the fair value of the portfolio and accretion of the discount on historical Columbia securities more than offset paydowns. Columbia did not purchase any securities during the fourth quarter. Please refer to the Q4 2023 Earnings Presentation for additional details related to our securities portfolio and liquidity position.
Gross loans and leases were $37.4 billion as of December 31, 2023, an increase of $271 million relative to September 30, 2023. "Higher outstanding commercial term and line balances and other relationship-driven expansion contributed to 3% annualized loan growth in the fourth quarter," stated Chris Merrywell, President of Umpqua Bank. "Our bankers remain laser-focused on generating business founded through relationships that drive balanced growth." Please refer to the Q4 2023 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 $41.6 billion as of December 31, 2023, essentially unchanged from September 30, 2023. "While total deposit balances were stable between September and December, the mix reflects a shift into interest-bearing demand accounts," commented Mr. Merrywell. "Non-interest bearing balance changes continue to reflect customers' use of cash, which includes tax payments and lower escrow balances during the fourth quarter. Our targeted efforts to expand our network of public deposits throughout our communities helped offset seasonal customer declines without the use of wholesale funding." Please refer to the Q4 2023 Earnings Presentation for additional details related to deposit characteristics and flows.
Credit QualityThe allowance for credit losses was $464 million, or 1.24% of loans and leases, as of December 31, 2023, compared to $438 million, or 1.18% of loans and leases, as of September 30, 2023. The provision for credit losses was $55 million for the fourth quarter of 2023, and it reflects changes in the economic forecasts used in credit models and portfolio migration trends. Please refer to the Q4 2023 Earnings Presentation for additional details related to the allowance for credit losses and other credit trends.
Net charge-offs were 0.31% of average loans and leases (annualized) for the fourth quarter of 2023, compared to 0.25% for the third quarter of 2023. Net charge-off activity continued to be centered in the FinPac portfolio as bank charge-off activity was low at 0.06% of average bank loans. As of December 31, 2023, non-performing assets were $114 million, or 0.22% of total assets, compared to $106 million, or 0.20% of total assets, as of September 30, 2023.
CapitalAs of December 31, 2023, Columbia's book value per common share increased to $23.95, compared to $22.21 at September 30, 2023. The linked-quarter change in book value primarily reflects a change in accumulated other comprehensive (loss) income ("AOCI") to $(340) million at December 31, 2023, compared to $(680) million at the prior quarter-end. The change in AOCI is due primarily to a decrease in the tax-effected net unrealized loss on AFS securities to $322 million as of December 31, 2023, compared to $650 million as of September 30, 2023. As of December 31, 2023, 54% of the AFS securities portfolio was in an unrealized gain position. Tangible book value per common share[3] correspondingly increased to $16.12, compared to $14.22 at September 30, 2023.
Columbia's estimated total risk-based capital ratio was 11.8% and its estimated common equity tier 1 risk-based capital ratio was 9.6% as of December 31, 2023, compared to 11.6% and 9.5%, respectively, as of September 30, 2023. Columbia remains above current "well-capitalized" regulatory minimums. "Our regulatory capital ratios continued to expand in the fourth quarter," stated Ron Farnsworth, Chief Financial Officer of Columbia. "We expect our capital position to continue to build over time, supporting our franchise expansion and increasing flexibility for capital return." The regulatory capital ratios as of December 31, 2023 are estimates, pending completion and filing of Columbia's regulatory reports.
Earnings Presentation and Conference Call InformationColumbia's Q4 2023 Earnings Presentation provides additional disclosure. A copy will be available on our investor relations page: www.columbiabankingsystem.com.
Columbia will host its fourth quarter 2023 earnings conference call on January 24, 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 fourth quarter 2023 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/BI2ed0e3ce03e94a7a968c1bbb26fa939cJoin the audiocast: https://edge.media-server.com/mmc/p/eo4z866c/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. In March of 2023, Columbia and Umpqua combined two of the Pacific Northwest's premier financial institutions under the Umpqua Bank brand to create one of the largest banks headquartered in the West and a top-30 U.S. bank. With over $50 billion of assets, Umpqua Bank combines the resources, sophistication and expertise of a national bank with a commitment to deliver personalized service at scale. The bank operates in Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah, and Washington and 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 Management and Columbia Trust Company, a subsidiary of Columbia. Learn more at www.columbiabankingsystem.com.
Forward-Looking StatementsThis 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 (the "SEC"). 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 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 or news developments concerning 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 the comparable GAAP measurement. |
TABLE INDEX | |
Page | |
Consolidated Statements of Operations | 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 Operations | |||||||||||||
(Unaudited) | |||||||||||||
Quarter Ended | % Change (2) | ||||||||||||
($ in thousands, except per share data) | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Seq. Quarter | Year over Year | ||||||
Interest income: | |||||||||||||
Loans and leases | $ 577,741 | $ 569,670 | $ 552,679 | $ 413,525 | $ 322,350 | 1 % | 79 % | ||||||
Interest and dividends on investments: | |||||||||||||
Taxable | 78,010 | 80,066 | 79,036 | 39,729 | 18,108 | (3) % | 331 % | ||||||
Exempt from federal income tax | 6,966 | 6,929 | 6,817 | 3,397 | 1,288 | 1 % | 441 % | ||||||
Dividends | 4,862 | 4,941 | 2,581 | 719 | 182 | (2) % | nm | ||||||
Temporary investments and interest bearing deposits | 24,055 | 34,407 | 34,616 | 18,581 | 10,319 | (30) % | 133 % | ||||||
Total interest income | 691,634 | 696,013 | 675,729 | 475,951 | 352,247 | (1) % | 96 % | ||||||
Interest expense: | |||||||||||||
Deposits | 170,659 | 126,974 | 100,408 | 63,613 | 31,174 | 34 % | 447 % | ||||||
Securities sold under agreement to repurchase and federal funds purchased | 1,226 | 1,220 | 1,071 | 406 | 323 | 0 % | 280 % | ||||||
Borrowings | 56,066 | 77,080 | 81,004 | 28,764 | 8,023 | (27) % | nm | ||||||
Junior and other subordinated debentures | 10,060 | 9,864 | 9,271 | 8,470 | 7,248 | 2 % | 39 % | ||||||
Total interest expense | 238,011 | 215,138 | 191,754 | 101,253 | 46,768 | 11 % | 409 % | ||||||
Net interest income | 453,623 | 480,875 | 483,975 | 374,698 | 305,479 | (6) % | 48 % | ||||||
Provision for credit losses | 54,909 | 36,737 | 16,014 | 105,539 | 32,948 | 49 % | 67 % | ||||||
Non-interest income: | |||||||||||||
Service charges on deposits | 17,349 | 17,410 | 16,454 | 14,312 | 12,139 | 0 % | 43 % | ||||||
Card-based fees | 14,593 | 15,674 | 13,435 | 11,561 | 9,017 | (7) % | 62 % | ||||||
Financial services and trust revenue | 3,011 | 4,651 | 4,512 | 1,297 | 25 | (35) % | nm | ||||||
Residential mortgage banking revenue (loss), net | 4,212 | 7,103 | (2,342) | 7,816 | (1,812) | (41) % | nm | ||||||
Gain on sale of debt securities, net | 9 | 4 | — | — | — | 125 % | nm | ||||||
Gain (loss) on equity securities, net | 2,636 | (2,055) | (697) | 2,416 | 284 | nm | nm | ||||||
Gain on loan and lease sales, net | 1,161 | 1,871 | 442 | 940 | 1,531 | (38) % | (24) % | ||||||
BOLI income | 4,331 | 4,440 | 4,063 | 2,790 | 2,033 | (2) % | 113 % | ||||||
Other income (loss) | 18,231 | (5,117) | 3,811 | 13,603 | 11,662 | nm | 56 % | ||||||
Total non-interest income | 65,533 | 43,981 | 39,678 | 54,735 | 34,879 | 49 % | 88 % | ||||||
Non-interest expense: | |||||||||||||
Salaries and employee benefits | 157,572 | 159,041 | 163,398 | 136,092 | 107,982 | (1) % | 46 % | ||||||
Occupancy and equipment, net | 48,160 | 43,070 | 50,550 | 41,700 | 34,021 | 12 % | 42 % | ||||||
Intangible amortization | 33,204 | 29,879 | 35,553 | 12,660 | 1,019 | 11 % | nm | ||||||
FDIC assessments | 42,510 | 11,200 | 11,579 | 6,113 | 3,487 | 280 % | nm | ||||||
Merger-related expense | 7,174 | 18,938 | 29,649 | 115,898 | 11,637 | (62) % | (38) % | ||||||
Other expenses | 48,556 | 42,019 | 37,830 | 30,355 | 36,836 | 16 % | 32 % | ||||||
Total non-interest expense | 337,176 | 304,147 | 328,559 | 342,818 | 194,982 | 11 % | 73 % | ||||||
Income (loss) before provision (benefit) for income taxes | 127,071 | 183,972 | 179,080 | (18,924) | 112,428 | (31) % | 13 % | ||||||
Provision (benefit) for income taxes | 33,540 | 48,127 | 45,703 | (4,886) | 29,464 | (30) % | 14 % | ||||||
Net income (loss) | $ 93,531 | $ 135,845 | $ 133,377 | $ (14,038) | $ 82,964 | (31) % | 13 % | ||||||
Weighted average basic shares outstanding (1) | 208,083 | 208,070 | 207,977 | 156,383 | 129,321 | 0 % | 61 % | ||||||
Weighted average diluted shares outstanding (1) | 208,739 | 208,645 | 208,545 | 156,383 | 129,801 | 0 % | 61 % | ||||||
Earnings (loss) per common share – basic (1) | $ 0.45 | $ 0.65 | $ 0.64 | $ (0.09) | $ 0.64 | (31) % | (30) % | ||||||
Earnings (loss) per common share – diluted (1) | $ 0.45 | $ 0.65 | $ 0.64 | $ (0.09) | $ 0.64 | (31) % | (30) % | ||||||
(1) | Periods prior to February 28, 2023, have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the merger of 0.5958. |
(2) | Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm." |
Columbia Banking System, Inc. | ||||||
Consolidated Statements of Operations | ||||||
(Unaudited) | ||||||
Twelve months ended | % Change (2) | |||||
($ in thousands, except per share data) | Dec 31, 2023 | Dec 31, 2022 | Year over Year | |||
Interest income: | ||||||
Loans and leases | $ 2,113,615 | $ 1,050,258 | 101 % | |||
Interest and dividends on investments: | ||||||
Taxable | 276,841 | 72,264 | 283 % | |||
Exempt from federal income tax | 24,109 | 5,351 | 351 % | |||
Dividends | 13,103 | 438 | nm | |||
Temporary investments and interest bearing deposits | 111,659 | 19,706 | 467 % | |||
Total interest income | 2,539,327 | 1,148,017 | 121 % | |||
Interest expense: | ||||||
Deposits | 461,654 | 48,195 | nm | |||
Securities sold under agreement to repurchase and federal funds purchased | 3,923 | 997 | 293 % | |||
Borrowings | 242,914 | 8,920 | nm | |||
Junior and other subordinated debentures | 37,665 | 19,889 | 89 % | |||
Total interest expense | 746,156 | 78,001 | nm | |||
Net interest income | 1,793,171 | 1,070,016 | 68 % | |||
Provision for credit losses | 213,199 | 84,016 | 154 % | |||
Non-interest income: | ||||||
Service charges on deposits | 65,525 | 48,365 | 35 % | |||
Card-based fees | 55,263 | 37,370 | 48 % | |||
Brokerage revenue | 13,471 | 90 | nm | |||
Residential mortgage banking revenue, net | 16,789 | 106,859 | (84) % | |||
Gain on sale of debt securities, net | 13 | 2 | nm | |||
Gain (loss) on equity securities, net | 2,300 | (7,099) | nm | |||
Gain on loan and lease sales, net | 4,414 | 6,696 | (34) % | |||
BOLI income | 15,624 | 8,253 | 89 % | |||
Other income (loss) | 30,528 | (1,008) | nm | |||
Total non-interest income | 203,927 | 199,528 | 2 % | |||
Non-interest expense: | ||||||
Salaries and employee benefits | 616,103 | 441,226 | 40 % | |||
Occupancy and equipment, net | 183,480 | 138,451 | 33 % | |||
Intangible amortization | 111,296 | 4,095 | nm | |||
FDIC assessments | 71,402 | 13,964 | 411 % | |||
Merger-related expense | 171,659 | 17,356 | nm | |||
Other expenses | 158,760 | 119,858 | 32 % | |||
Total non-interest expense | 1,312,700 | 734,950 | 79 % | |||
Income before provision for income taxes | 471,199 | 450,578 | 5 % | |||
Provision for income taxes | 122,484 | 113,826 | 8 % | |||
Net income | $ 348,715 | $ 336,752 | 4 % | |||
Weighted average basic shares outstanding (1) | 195,304 | 129,277 | 51 % | |||
Weighted average diluted shares outstanding (1) | 195,871 | 129,732 | 51 % | |||
Earnings per common share – basic (1) | $ 1.79 | $ 2.60 | (31) % | |||
Earnings per common share – diluted (1) | $ 1.78 | $ 2.60 | (32) % | |||
(1) | Periods prior to February 28, 2023, have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the merger of 0.5958. |
(2) | Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm." |
Columbia Banking System, Inc. Consolidated Balance Sheets | |||||||||||||
(Unaudited) | |||||||||||||
% Change (2) | |||||||||||||
($ in thousands, except per share data) | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Seq. Quarter | Year over Year | ||||||
Assets: | |||||||||||||
Cash and due from banks | $ 498,496 | $ 492,474 | $ 538,653 | $ 555,919 | $ 327,313 | 1 % | 52 % | ||||||
Interest bearing cash and temporary investments | 1,664,038 | 1,911,221 | 2,868,563 | 3,079,266 | 967,330 | (13) % | 72 % | ||||||
Investment securities: | |||||||||||||
Equity and other, at fair value | 76,995 | 73,638 | 76,361 | 76,532 | 72,959 | 5 % | 6 % | ||||||
Available for sale, at fair value | 8,829,870 | 8,503,986 | 8,998,428 | 9,249,600 | 3,196,166 | 4 % | 176 % | ||||||
Held to maturity, at amortized cost | 2,300 | 2,344 | 2,388 | 2,432 | 2,476 | (2) % | (7) % | ||||||
Loans held for sale | 30,715 | 60,313 | 183,633 | 49,338 | 71,647 | (49) % | (57) % | ||||||
Loans and leases | 37,441,951 | 37,170,598 | 37,049,299 | 37,091,280 | 26,155,981 | 1 % | 43 % | ||||||
Allowance for credit losses on loans and leases | (440,871) | (416,560) | (404,603) | (417,464) | (301,135) | 6 % | 46 % | ||||||
Net loans and leases | 37,001,080 | 36,754,038 | 36,644,696 | 36,673,816 | 25,854,846 | 1 % | 43 % | ||||||
Restricted equity securities | 179,274 | 168,524 | 258,524 | 246,525 | 47,144 | 6 % | 280 % | ||||||
Premises and equipment, net | 338,970 | 337,855 | 368,698 | 375,190 | 176,016 | 0 % | 93 % | ||||||
Operating lease right-of-use assets | 115,811 | 114,220 | 119,255 | 127,296 | 78,598 | 1 % | 47 % | ||||||
Goodwill | 1,029,234 | 1,029,234 | 1,029,234 | 1,030,142 | — | 0 % | nm | ||||||
Other intangible assets, net | 603,679 | 636,883 | 666,762 | 702,315 | 4,745 | (5) % | nm | ||||||
Residential mortgage servicing rights, at fair value | 109,243 | 117,640 | 172,929 | 178,800 | 185,017 | (7) % | (41) % | ||||||
Bank owned life insurance | 680,948 | 648,232 | 643,727 | 641,922 | 331,759 | 5 % | 105 % | ||||||
Deferred tax asset, net | 347,203 | 469,841 | 362,880 | 351,229 | 132,823 | (26) % | 161 % | ||||||
Other assets | 665,740 | 673,372 | 657,365 | 653,904 | 399,800 | (1) % | 67 % | ||||||
Total assets | $ 52,173,596 | $ 51,993,815 | $ 53,592,096 | $ 53,994,226 | $ 31,848,639 | 0 % | 64 % | ||||||
Liabilities: | |||||||||||||
Deposits | |||||||||||||
Non-interest bearing | $ 14,256,452 | $ 15,532,948 | $ 16,019,408 | $ 17,215,781 | $ 10,288,849 | (8) % | 39 % | ||||||
Interest bearing | 27,350,568 | 26,091,420 | 24,815,509 | 24,370,566 | 16,776,763 | 5 % | 63 % | ||||||
Total deposits | 41,607,020 | 41,624,368 | 40,834,917 | 41,586,347 | 27,065,612 | 0 % | 54 % | ||||||
Securities sold under agreements to repurchase | 252,119 | 258,383 | 294,914 | 271,047 | 308,769 | (2) % | (18) % | ||||||
Borrowings | 3,950,000 | 3,985,000 | 6,250,000 | 5,950,000 | 906,175 | (1) % | 336 % | ||||||
Junior subordinated debentures, at fair value | 316,440 | 331,545 | 312,872 | 297,721 | 323,639 | (5) % | (2) % | ||||||
Junior and other subordinated debentures, at amortized cost | 107,895 | 107,952 | 108,009 | 108,066 | 87,813 | 0 % | 23 % | ||||||
Operating lease liabilities | 130,576 | 129,845 | 132,099 | 140,648 | 91,694 | 1 % | 42 % | ||||||
Other liabilities | 814,512 | 924,560 | 831,097 | 755,674 | 585,111 | (12) % | 39 % | ||||||
Total liabilities | 47,178,562 | 47,361,653 | 48,763,908 | 49,109,503 | 29,368,813 | 0 % | 61 % | ||||||
Shareholders' equity: | |||||||||||||
Common stock | 5,802,747 | 5,798,167 | 5,792,792 | 5,788,553 | 3,450,493 | 0 % | 68 % | ||||||
Accumulated deficit | (467,571) | (485,576) | (545,842) | (603,696) | (543,803) | (4) % | (14) % | ||||||
Accumulated other comprehensive loss | (340,142) | (680,429) | (418,762) | (300,134) | (426,864) | (50) % | (20) % | ||||||
Total shareholders' equity | 4,995,034 | 4,632,162 | 4,828,188 | 4,884,723 | 2,479,826 | 8 % | 101 % | ||||||
Total liabilities and shareholders' equity | $ 52,173,596 | $ 51,993,815 | $ 53,592,096 | $ 53,994,226 | $ 31,848,639 | 0 % | 64 % | ||||||
Common shares outstanding at period end (1) | 208,585 | 208,575 | 208,514 | 208,429 | 129,321 | 0 % | 61 % | ||||||
(1) | Periods prior to February 28, 2023, have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the merger of 0.5958. |
(2) | Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm." |
Columbia Banking System, Inc. | ||||||||||||||
Financial Highlights | ||||||||||||||
(Unaudited) | ||||||||||||||
Quarter Ended | % Change | |||||||||||||
Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Seq. Quarter | Year over Year | ||||||||
Per Common Share Data: (5) | ||||||||||||||
Dividends (5) | $ 0.36 | $ 0.36 | $ 0.36 | $ 0.35 | $ 0.35 | 0 % | 3 % | |||||||
Book value (5) | $ 23.95 | $ 22.21 | $ 23.16 | $ 23.44 | $ 19.18 | 8 % | 25 % | |||||||
Tangible book value (1),(5) | $ 16.12 | $ 14.22 | $ 15.02 | $ 15.12 | $ 19.14 | 13 % | (16) % | |||||||
Performance Ratios: | ||||||||||||||
Efficiency ratio (2) | 64.81 % | 57.82 % | 62.60 % | 79.71 % | 57.24 % | 6.99 | 7.57 | |||||||
Return on average assets ("ROAA") | 0.72 % | 1.02 % | 1.00 % | (0.14) % | 1.04 % | (0.30) | (0.32) | |||||||
Pre-provision net revenue ("PPNR") ROAA (1) | 1.39 % | 1.65 % | 1.46 % | 0.89 % | 1.82 % | (0.26) | (0.43) | |||||||
Return on average common equity | 7.90 % | 11.07 % | 10.84 % | (1.70) % | 13.50 % | (3.17) | (5.60) | |||||||
Return on average tangible common equity (1) | 12.19 % | 16.93 % | 16.63 % | (2.09) % | 13.53 % | (4.74) | (1.34) | |||||||
Performance Ratios - Operating: (1) | ||||||||||||||
Operating efficiency ratio (1), (2) | 64.47 % | 51.97 % | 54.85 % | 53.46 % | 52.01 % | 12.50 | 12.46 | |||||||
Operating ROAA (1) | 0.70 % | 1.23 % | 1.27 % | 0.74 % | 1.24 % | (0.53) | (0.54) | |||||||
Operating PPNR ROAA (1) | 1.37 % | 1.94 % | 1.82 % | 2.01 % | 2.10 % | (0.57) | (0.73) | |||||||
Operating return on average common equity (1) | 7.73 % | 13.40 % | 13.77 % | 8.66 % | 16.14 % | (5.67) | (8.41) | |||||||
Operating return on average tangible common equity (1) | 11.92 % | 20.48 % | 21.13 % | 10.64 % | 16.18 % | (8.56) | (4.26) | |||||||
Average Balance Sheet Yields, Rates, & Ratios: | ||||||||||||||
Yield on loans and leases | 6.13 % | 6.08 % | 5.95 % | 5.55 % | 4.92 % | 0.05 | 1.21 | |||||||
Yield on earning assets (2) | 5.75 % | 5.65 % | 5.48 % | 5.19 % | 4.62 % | 0.10 | 1.13 | |||||||
Cost of interest bearing deposits | 2.54 % | 2.01 % | 1.64 % | 1.32 % | 0.77 % | 0.53 | 1.77 | |||||||
Cost of interest bearing liabilities | 3.02 % | 2.72 % | 2.45 % | 1.82 % | 1.05 % | 0.30 | 1.97 | |||||||
Cost of total deposits | 1.63 % | 1.23 % | 0.99 % | 0.80 % | 0.46 % | 0.40 | 1.17 | |||||||
Cost of total funding (3) | 2.05 % | 1.81 % | 1.61 % | 1.16 % | 0.65 % | 0.24 | 1.40 | |||||||
Net interest margin (2) | 3.78 % | 3.91 % | 3.93 % | 4.08 % | 4.01 % | (0.13) | (0.23) | |||||||
Average interest bearing cash / Average interest earning assets | 3.64 % | 5.17 % | 5.47 % | 4.33 % | 3.62 % | (1.53) | 0.02 | |||||||
Average loans and leases / Average interest earning assets | 78.04 % | 75.64 % | 75.18 % | 80.96 % | 85.32 % | 2.40 | (7.28) | |||||||
Average loans and leases / Average total deposits | 89.91 % | 90.63 % | 90.98 % | 93.01 % | 95.85 % | (0.72) | (5.94) | |||||||
Average non-interest bearing deposits / Average total deposits | 35.88 % | 38.55 % | 40.05 % | 39.55 % | 40.30 % | (2.67) | (4.42) | |||||||
Average total deposits / Average total funding (3) | 90.02 % | 86.66 % | 85.59 % | 91.36 % | 94.52 % | 3.36 | (4.50) | |||||||
Select Credit & Capital Ratios: | ||||||||||||||
Non-performing loans and leases to total loans and leases | 0.30 % | 0.28 % | 0.22 % | 0.20 % | 0.22 % | 0.02 | 0.08 | |||||||
Non-performing assets to total assets | 0.22 % | 0.20 % | 0.15 % | 0.14 % | 0.18 % | 0.02 | 0.04 | |||||||
Allowance for credit losses to loans and leases | 1.24 % | 1.18 % | 1.15 % | 1.18 % | 1.21 % | 0.06 | 0.03 | |||||||
Total risk-based capital ratio (4) | 11.8 % | 11.6 % | 11.3 % | 10.9 % | 13.7 % | 0.20 | (1.90) | |||||||
Common equity tier 1 risk-based capital ratio (4) | 9.6 % | 9.5 % | 9.2 % | 8.9 % | 11.0 % | 0.10 | (1.40) | |||||||
(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) | Periods prior to February 28, 2023, have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the merger of 0.5958. |
Columbia Banking System, Inc. | ||||||
Financial Highlights | ||||||
(Unaudited) | ||||||
Twelve months ended | % Change | |||||
Dec 31, 2023 | Dec 31, 2022 | Year over Year | ||||
Per Common Share Data: (4) | ||||||
Dividends (4) | $ 1.43 | $ 1.40 | 2.14 % | |||
Performance Ratios: | ||||||
Efficiency ratio (2) | 65.59 % | 57.83 % | 7.76 | |||
ROAA | 0.70 % | 1.09 % | (0.39) | |||
PPNR ROAA (1) | 1.38 % | 1.73 % | (0.35) | |||
Return on average common equity | 7.81 % | 13.07 % | (5.26) | |||
Return on average tangible common equity (1) | 11.46 % | 13.11 % | (1.65) | |||
Performance Ratios - Operating: (1) | ||||||
Operating efficiency ratio (1), (2) | 56.21 % | 55.66 % | 0.55 | |||
Operating ROAA (1) | 1.00 % | 1.17 % | (0.17) | |||
Operating PPNR ROAA (1) | 1.77 % | 1.83 % | (0.06) | |||
Operating return on average common equity (1) | 11.12 % | 13.97 % | (2.85) | |||
Operating return on average tangible common equity (1) | 16.32 % | 14.00 % | 2.32 | |||
Average Balance Sheet Yields, Rates, & Ratios: | ||||||
Yield on loans and leases | 5.95 % | 4.29 % | 1.66 | |||
Yield on earning assets (2) | 5.54 % | 3.88 % | 1.66 | |||
Cost of interest bearing deposits | 1.93 % | 0.31 % | 1.62 | |||
Cost of interest bearing liabilities | 2.56 % | 0.47 % | 2.09 | |||
Cost of total deposits | 1.19 % | 0.18 % | 1.01 | |||
Cost of total funding (3) | 1.69 % | 0.28 % | 1.41 | |||
Net interest margin (2) | 3.91 % | 3.62 % | 0.29 | |||
Average interest bearing cash / Average interest earning assets | 4.68 % | 5.28 % | (0.60) | |||
Average loans and leases / Average interest earning assets | 77.21 % | 81.96 % | (4.75) | |||
Average loans and leases / Average total deposits | 91.01 % | 90.91 % | 0.10 | |||
Average non-interest bearing deposits / Average total deposits | 38.37 % | 41.48 % | (3.11) | |||
Average total deposits / Average total funding (3) | 88.18 % | 96.06 % | (7.88) | |||
(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) | Periods prior to February 28, 2023, have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the merger of 0.5958. |
Columbia Banking System, Inc. | |||||||||||||
Loan & Lease Portfolio Balances and Mix | |||||||||||||
(Unaudited) | |||||||||||||
Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | % Change | ||||||||
($ in thousands) | Amount | Amount | Amount | Amount | Amount | Seq. Quarter | Year over Year | ||||||
Loans and leases: | |||||||||||||
Commercial real estate: | |||||||||||||
Non-owner occupied term, net | $ 6,482,940 | $ 6,490,638 | $ 6,434,673 | $ 6,353,550 | $ 3,894,840 | 0 % | 66 % | ||||||
Owner occupied term, net | 5,195,605 | 5,235,227 | 5,254,401 | 5,156,848 | 2,567,761 | (1) % | 102 % | ||||||
Multifamily, net | 5,704,734 | 5,684,495 | 5,622,875 | 5,590,587 | 5,285,791 | 0 % | 8 % | ||||||
Construction & development, net | 1,747,302 | 1,669,918 | 1,528,924 | 1,467,561 | 1,077,346 | 5 % | 62 % | ||||||
Residential development, net | 323,899 | 354,922 | 388,641 | 440,667 | 200,838 | (9) % | 61 % | ||||||
Commercial: | |||||||||||||
Term, net | 5,536,765 | 5,437,915 | 5,449,787 | 5,906,774 | 3,029,547 | 2 % | 83 % | ||||||
Lines of credit & other, net | 2,430,127 | 2,353,548 | 2,268,790 | 2,184,762 | 960,054 | 3 % | 153 % | ||||||
Leases & equipment finance, net | 1,729,512 | 1,728,991 | 1,740,037 | 1,746,267 | 1,706,172 | 0 % | 1 % | ||||||
Residential: | |||||||||||||
Mortgage, net | 6,157,166 | 6,121,838 | 6,272,898 | 6,187,964 | 5,647,035 | 1 % | 9 % | ||||||
Home equity loans & lines, net | 1,938,166 | 1,899,948 | 1,898,958 | 1,870,002 | 1,631,965 | 2 % | 19 % | ||||||
Consumer & other, net | 195,735 | 193,158 | 189,315 | 186,298 | 154,632 | 1 % | 27 % | ||||||
Total loans and leases, net of deferred fees and costs | $ 37,441,951 | $ 37,170,598 | $ 37,049,299 | $ 37,091,280 | $ 26,155,981 | 1 % | 43 % | ||||||
Loans and leases mix: | |||||||||||||
Commercial real estate: | |||||||||||||
Non-owner occupied term, net | 17 % | 17 % | 17 % | 16 % | 15 % | ||||||||
Owner occupied term, net | 14 % | 14 % | 14 % | 14 % | 10 % | ||||||||
Multifamily, net | 15 % | 15 % | 15 % | 15 % | 20 % | ||||||||
Construction & development, net | 5 % | 4 % | 4 % | 4 % | 4 % | ||||||||
Residential development, net | 1 % | 1 % | 1 % | 1 % | 1 % | ||||||||
Commercial: | |||||||||||||
Term, net | 15 % | 15 % | 15 % | 16 % | 12 % | ||||||||
Lines of credit & other, net | 6 % | 6 % | 6 % | 6 % | 4 % | ||||||||
Leases & equipment finance, net | 5 % | 5 % | 5 % | 5 % | 6 % | ||||||||
Residential: | |||||||||||||
Mortgage, net | 16 % | 17 % | 17 % | 17 % | 21 % | ||||||||
Home equity loans & lines, net | 5 % | 5 % | 5 % | 5 % | 6 % | ||||||||
Consumer & other, net | 1 % | 1 % | 1 % | 1 % | 1 % | ||||||||
Total | 100 % | 100 % | 100 % | 100 % | 100 % | ||||||||
Columbia Banking System, Inc. | |||||||||||||
Deposit Portfolio Balances and Mix | |||||||||||||
(Unaudited) | |||||||||||||
Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | % Change | ||||||||
($ in thousands) | Amount | Amount | Amount | Amount | Amount | Seq. Quarter | Year over Year | ||||||
Deposits: | |||||||||||||
Demand, non-interest bearing | $ 14,256,452 | $ 15,532,948 | $ 16,019,408 | $ 17,215,781 | $ 10,288,849 | (8) % | 39 % | ||||||
Demand, interest bearing | 8,044,432 | 6,898,831 | 6,300,082 | 5,900,462 | 4,080,469 | 17 % | 97 % | ||||||
Money market | 10,324,454 | 10,349,217 | 10,115,908 | 10,681,422 | 7,721,011 | 0 % | 34 % | ||||||
Savings | 2,754,113 | 3,018,706 | 3,171,714 | 3,469,112 | 2,265,052 | (9) % | 22 % | ||||||
Time | 6,227,569 | 5,824,666 | 5,227,805 | 4,319,570 | 2,710,231 | 7 % | 130 % | ||||||
Total | $ 41,607,020 | $ 41,624,368 | $ 40,834,917 | $ 41,586,347 | $ 27,065,612 | 0 % | 54 % | ||||||
Total core deposits (1) | $ 37,423,402 | $ 37,597,830 | $ 37,639,368 | $ 39,155,298 | $ 25,616,010 | 0 % | 46 % | ||||||
Deposit mix: | |||||||||||||
Demand, non-interest bearing | 34 % | 37 % | 39 % | 41 % | 38 % | ||||||||
Demand, interest bearing | 19 % | 17 % | 15 % | 14 % | 15 % | ||||||||
Money market | 25 % | 25 % | 25 % | 26 % | 29 % | ||||||||
Savings | 7 % | 7 % | 8 % | 9 % | 8 % | ||||||||
Time | 15 % | 14 % | 13 % | 10 % | 10 % | ||||||||
Total | 100 % | 100 % | 100 % | 100 % | 100 % | ||||||||
(1) | Core deposits are defined as total deposits less time deposits greater than $250,000 and all brokered deposits. |
Columbia Banking System, Inc. | ||||||||||||||
Credit Quality – Non-performing Assets | ||||||||||||||
(Unaudited) | ||||||||||||||
Quarter Ended | % Change (2) | |||||||||||||
($ in thousands) | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Seq. Quarter | Year over Year | |||||||
Non-performing assets: | ||||||||||||||
Loans and leases on non-accrual status: | ||||||||||||||
Commercial real estate, net | $ 28,689 | $ 26,053 | $ 10,994 | $ 15,612 | $ 5,011 | 10 % | 473 % | |||||||
Commercial, net | 45,682 | 44,341 | 39,316 | 42,301 | 25,691 | 3 % | 78 % | |||||||
Total loans and leases on non-accrual status | 74,371 | 70,394 | 50,310 | 57,913 | 30,702 | 6 % | 142 % | |||||||
Loans and leases past due 90+ days and accruing (1): | ||||||||||||||
Commercial real estate, net | 870 | 71 | 184 | 1 | 1 | nm | nm | |||||||
Commercial, net | 8,232 | 8,606 | 7,720 | 151 | 7,909 | (4) % | 4 % | |||||||
Residential, net (1) | 29,102 | 25,180 | 21,370 | 17,423 | 19,894 | 16 % | 46 % | |||||||
Consumer & other, net | 326 | 240 | 399 | 140 | 134 | 36 % | 143 % | |||||||
Total loans and leases past due 90+ days and accruing (1) | 38,530 | 34,097 | 29,673 | 17,715 | 27,938 | 13 % | 38 % | |||||||
Total non-performing loans and leases | 112,901 | 104,491 | 79,983 | 75,628 | 58,640 | 8 % | 93 % | |||||||
Other real estate owned | 1,036 | 1,170 | 278 | 409 | 203 | (11) % | 410 % | |||||||
Total non-performing assets | $ 113,937 | $ 105,661 | $ 80,261 | $ 76,037 | $ 58,843 | 8 % | 94 % | |||||||
Loans and leases past due 31-89 days | $ 85,235 | $ 82,918 | $ 73,376 | $ 78,641 | $ 64,893 | 3 % | 31 % | |||||||
Loans and leases past due 31-89 days to total loans and leases | 0.23 % | 0.22 % | 0.20 % | 0.21 % | 0.25 % | 0.01 | (0.02) | |||||||
Non-performing loans and leases to total loans and leases (1) | 0.30 % | 0.28 % | 0.22 % | 0.20 % | 0.22 % | 0.02 | 0.08 | |||||||
Non-performing assets to total assets (1) | 0.22 % | 0.20 % | 0.15 % | 0.14 % | 0.18 % | 0.02 | 0.04 | |||||||
(1) | Excludes certain mortgage loans guaranteed by Ginnie Mae, which Columbia has the unilateral right to repurchase but has not done so, totaling $1.0 million, $700,000, $1.6 million, $5.4 million, and $6.6 million at December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022, respectively. |
(2) | Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm." |
Columbia Banking System, Inc. | ||||||||||||||
Credit Quality – Allowance for Credit Losses | ||||||||||||||
(Unaudited) | ||||||||||||||
Quarter Ended | % Change (2) | |||||||||||||
($ in thousands) | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Seq. Quarter | Year over Year | |||||||
Allowance for credit losses on loans and leases (ACLLL) | ||||||||||||||
Balance, beginning of period | $ 416,560 | $ 404,603 | $ 417,464 | $ 301,135 | $ 283,065 | 3 % | 47 % | |||||||
Initial ACL recorded for PCD loans acquired during the period | — | — | — | 26,492 | — | nm | nm | |||||||
Provision for credit losses on loans and leases (1) | 53,183 | 35,082 | 15,216 | 106,498 | 30,580 | 52 % | 74 % | |||||||
Charge-offs | ||||||||||||||
Commercial real estate, net | (629) | — | (174) | — | (128) | nm | 391 % | |||||||
Commercial, net | (31,949) | (26,629) | (32,036) | (19,248) | (14,721) | 20 % | 117 % | |||||||
Residential, net | (89) | (206) | (4) | (248) | (53) | (57) % | 68 % | |||||||
Consumer & other, net | (1,841) | (1,884) | (1,264) | (773) | (906) | (2) % | 103 % | |||||||
Total charge-offs | (34,508) | (28,719) | (33,478) | (20,269) | (15,808) | 20 % | 118 % | |||||||
Recoveries | ||||||||||||||
Commercial real estate, net | 35 | 31 | 209 | 58 | 163 | 13 % | (79) % | |||||||
Commercial, net | 4,414 | 4,901 | 4,511 | 3,058 | 2,708 | (10) % | 63 % | |||||||
Residential, net | 781 | 156 | 63 | 123 | 24 | 401 % | nm | |||||||
Consumer & other, net | 406 | 506 | 618 | 369 | 403 | (20) % | 1 % | |||||||
Total recoveries | 5,636 | 5,594 | 5,401 | 3,608 | 3,298 | 1 % | 71 % | |||||||
Net (charge-offs) recoveries | ||||||||||||||
Commercial real estate, net | (594) | 31 | 35 | 58 | 35 | nm | nm | |||||||
Commercial, net | (27,535) | (21,728) | (27,525) | (16,190) | (12,013) | 27 % | 129 % | |||||||
Residential, net | 692 | (50) | 59 | (125) | (29) | nm | nm | |||||||
Consumer & other, net | (1,435) | (1,378) | (646) | (404) | (503) | 4 % | 185 % | |||||||
Total net charge-offs | (28,872) | (23,125) | (28,077) | (16,661) | (12,510) | 25 % | 131 % | |||||||
Balance, end of period | $ 440,871 | $ 416,560 | $ 404,603 | $ 417,464 | $ 301,135 | 6 % | 46 % | |||||||
Reserve for unfunded commitments | ||||||||||||||
Balance, beginning of period | $ 21,482 | $ 19,827 | $ 19,029 | $ 14,221 | $ 11,853 | 8 % | 81 % | |||||||
Initial ACL recorded for unfunded commitments acquired during the period | — | — | — | 5,767 | — | nm | nm | |||||||
Provision (recapture) for credit losses on unfunded commitments | 1,726 | 1,655 | 798 | (959) | 2,368 | 4 % | (27) % | |||||||
Balance, end of period | 23,208 | 21,482 | 19,827 | 19,029 | 14,221 | 8 % | 63 % | |||||||
Total Allowance for credit losses (ACL) | $ 464,079 | $ 438,042 | $ 424,430 | $ 436,493 | $ 315,356 | 6 % | 47 % | |||||||
Net charge-offs to average loans and leases (annualized) | 0.31 % | 0.25 % | 0.30 % | 0.23 % | 0.19 % | 0.06 | 0.12 | |||||||
Recoveries to gross charge-offs | 16.33 % | 19.48 % | 16.13 % | 17.80 % | 20.86 % | (3.15) | (4.53) | |||||||
ACLLL to loans and leases | 1.18 % | 1.12 % | 1.09 % | 1.13 % | 1.15 % | 0.06 | 0.03 | |||||||
ACL to loans and leases | 1.24 % | 1.18 % | 1.15 % | 1.18 % | 1.21 % | 0.06 | 0.03 | |||||||
(1) | For the quarter ended March 31, 2023, the provision for credit losses on loans and leases includes $88.4 million initial provision related to non-PCD loans acquired during the period. |
(2) | Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm." |
Columbia Banking System, Inc. | |||||||
Credit Quality – Allowance for Credit Losses | |||||||
(Unaudited) | |||||||
Twelve Months Ended | % Change (2) | ||||||
($ in thousands) | Dec 31, 2023 | Dec 31, 2022 | Year over Year | ||||
Allowance for credit losses on loans and leases (ACLLL) | |||||||
Balance, beginning of period | $ 301,135 | $ 248,412 | 21 % | ||||
Initial ACL recorded for PCD loans acquired during the period | 26,492 | — | nm | ||||
Provision for credit losses on loans and leases (1) | 209,979 | 83,605 | 151 % | ||||
Charge-offs | |||||||
Commercial real estate, net | (803) | (136) | 490 % | ||||
Commercial, net | (109,862) | (41,073) | 167 % | ||||
Residential, net | (547) | (224) | 144 % | ||||
Consumer & other, net | (5,762) | (3,556) | 62 % | ||||
Total charge-offs | (116,974) | (44,989) | 160 % | ||||
Recoveries | |||||||
Commercial real estate, net | 333 | 384 | (13) % | ||||
Commercial, net | 16,884 | 11,029 | 53 % | ||||
Residential, net | 1,123 | 662 | 70 % | ||||
Consumer & other, net | 1,899 | 2,032 | (7) % | ||||
Total recoveries | 20,239 | 14,107 | 43 % | ||||
Net (charge-offs) recoveries | |||||||
Commercial real estate, net | (470) | 248 | (290) % | ||||
Commercial, net | (92,978) | (30,044) | 209 % | ||||
Residential, net | 576 | 438 | 32 % | ||||
Consumer & other, net | (3,863) | (1,524) | 153 % | ||||
Total net charge-offs | (96,735) | (30,882) | 213 % | ||||
Balance, end of period | $ 440,871 | $ 301,135 | 46 % | ||||
Reserve for unfunded commitments | |||||||
Balance, beginning of period | $ 14,221 | $ 12,767 | 11 % | ||||
Initial ACL recorded for unfunded commitments acquired during the period | 5,767 | — | nm | ||||
Provision for credit losses on unfunded commitments | 3,220 | 1,454 | 121 % | ||||
Balance, end of period | 23,208 | 14,221 | 63 % | ||||
Total Allowance for credit losses (ACL) | $ 464,079 | $ 315,356 | 47 % | ||||
Net charge-offs to average loans and leases (annualized) | 0.27 % | 0.13 % | 0.14 | ||||
Recoveries to gross charge-offs | 17.30 % | 31.36 % | (14.06) | ||||
(1) | For the twelve months ended December 31, 2023, the provision for credit losses on loans and leases includes $88.4 million initial provision related to non-PCD loans acquired during the period. |
(2) | Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm." |
Columbia Banking System, Inc. | |||||||||||||||||
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Quarter Ended | |||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||
($ in thousands) | Average Balance | Interest Income orExpense | Average Yields orRates | 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 | $ 48,868 | $ 649 | 5.31 % | $ 199,855 | $ 1,741 | 3.49 % | $ 110,850 | $ 1,603 | 5.79 % | ||||||||
Loans and leases (1) | 37,333,310 | 577,092 | 6.13 % | 37,050,518 | 567,929 | 6.08 % | 25,855,556 | 320,747 | 4.92 % | ||||||||
Taxable securities | 7,903,053 | 82,872 | 4.19 % | 8,356,165 | 85,007 | 4.07 % | 3,042,044 | 18,290 | 2.40 % | ||||||||
Non-taxable securities (2) | 809,551 | 8,073 | 3.99 % | 844,417 | 8,085 | 3.83 % | 200,825 | 1,571 | 3.13 % | ||||||||
Temporary investments and interest-bearing cash | 1,743,447 | 24,055 | 5.47 % | 2,530,150 | 34,407 | 5.40 % | 1,095,854 | 10,319 | 3.74 % | ||||||||
Total interest-earning assets | 47,838,229 | $ 692,741 | 5.75 % | 48,981,105 | $ 697,169 | 5.65 % | 30,305,129 | $ 352,530 | 4.62 % | ||||||||
Goodwill and other intangible assets | 1,652,282 | 1,684,093 | 5,298 | ||||||||||||||
Other assets | 2,341,845 | 2,346,163 | 1,327,063 | ||||||||||||||
Total assets | $ 51,832,356 | $ 53,011,361 | $ 31,637,490 | ||||||||||||||
INTEREST-BEARING LIABILITIES: | |||||||||||||||||
Interest-bearing demand deposits | $ 7,617,427 | $ 44,861 | 2.34 % | $ 6,578,849 | $ 25,209 | 1.52 % | $ 4,005,643 | $ 5,372 | 0.53 % | ||||||||
Money market deposits | 10,276,894 | 61,055 | 2.36 % | 10,249,028 | 50,039 | 1.94 % | 7,651,974 | 17,473 | 0.91 % | ||||||||
Savings deposits | 2,880,622 | 698 | 0.10 % | 3,109,779 | 1,253 | 0.16 % | 2,345,564 | 226 | 0.04 % | ||||||||
Time deposits | 5,847,400 | 64,045 | 4.35 % | 5,184,089 | 50,473 | 3.86 % | 2,100,803 | 8,103 | 1.53 % | ||||||||
Total interest-bearing deposits | 26,622,343 | 170,659 | 2.54 % | 25,121,745 | 126,974 | 2.01 % | 16,103,984 | 31,174 | 0.77 % | ||||||||
Repurchase agreements and federal funds purchased | 245,989 | 1,226 | 1.98 % | 268,444 | 1,220 | 1.80 % | 354,624 | 323 | 0.36 % | ||||||||
Borrowings | 3,918,261 | 56,066 | 5.68 % | 5,603,207 | 77,080 | 5.46 % | 796,414 | 8,023 | 4.00 % | ||||||||
Junior and other subordinated debentures | 440,007 | 10,060 | 9.07 % | 420,582 | 9,864 | 9.30 % | 413,708 | 7,248 | 6.95 % | ||||||||
Total interest-bearing liabilities | 31,226,600 | $ 238,011 | 3.02 % | 31,413,978 | $ 215,138 | 2.72 % | 17,668,730 | $ 46,768 | 1.05 % | ||||||||
Non-interest-bearing deposits | 14,899,001 | 15,759,720 | 10,870,842 | ||||||||||||||
Other liabilities | 1,011,019 | 970,688 | 659,279 | ||||||||||||||
Total liabilities | 47,136,620 | 48,144,386 | 29,198,851 | ||||||||||||||
Common equity | 4,695,736 | 4,866,975 | 2,438,639 | ||||||||||||||
Total liabilities and shareholders' equity | $ 51,832,356 | $ 53,011,361 | $ 31,637,490 | ||||||||||||||
NET INTEREST INCOME (2) | $ 454,730 | $ 482,031 | $ 305,762 | ||||||||||||||
NET INTEREST SPREAD | 2.73 % | 2.93 % | 3.57 % | ||||||||||||||
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2) | 3.78 % | 3.91 % | 4.01 % | ||||||||||||||
(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 $1.1 million for the three months ended December 31, 2023, as compared to $1.2 million for the three months ended September 30, 2023 and $283,000 for the three months ended December 31, 2022. |
Columbia Banking System, Inc. | |||||||||||
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates | |||||||||||
(Unaudited) | |||||||||||
Twelve months ended | |||||||||||
December 31, 2023 | December 31, 2022 | ||||||||||
($ 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 | $ 87,675 | $ 3,871 | 4.42 % | $ 208,141 | $ 8,812 | 4.23 % | |||||
Loans and leases (1) | 35,412,594 | 2,109,744 | 5.95 % | 24,225,518 | 1,041,446 | 4.29 % | |||||
Taxable securities | 7,479,573 | 289,944 | 3.88 % | 3,343,721 | 72,702 | 2.17 % | |||||
Non-taxable securities (2) | 740,376 | 28,236 | 3.81 % | 216,943 | 6,669 | 3.07 % | |||||
Temporary investments and interest-bearing cash | 2,147,348 | 111,659 | 5.20 % | 1,561,808 | 19,706 | 1.26 % | |||||
Total interest-earning assets | 45,867,566 | $ 2,543,454 | 5.54 % | 29,556,131 | $ 1,149,335 | 3.88 % | |||||
Goodwill and other intangible assets | 1,423,075 | 6,847 | |||||||||
Other assets | 2,205,678 | 1,254,418 | |||||||||
Total assets | $ 49,496,319 | $ 30,817,396 | |||||||||
INTEREST-BEARING LIABILITIES: | |||||||||||
Interest-bearing demand deposits | $ 6,280,333 | $ 97,162 | 1.55 % | $ 3,886,390 | $ 8,185 | 0.21 % | |||||
Money market deposits | 9,962,837 | 185,035 | 1.86 % | 7,552,666 | 26,415 | 0.35 % | |||||
Savings deposits | 2,994,333 | 3,384 | 0.11 % | 2,411,448 | 880 | 0.04 % | |||||
Time deposits | 4,743,615 | 176,073 | 3.71 % | 1,743,988 | 12,715 | 0.73 % | |||||
Total interest-bearing deposits | 23,981,118 | 461,654 | 1.93 % | 15,594,492 | 48,195 | 0.31 % | |||||
Repurchase agreements and federal funds purchased | 269,853 | 3,923 | 1.45 % | 465,600 | 997 | 0.21 % | |||||
Borrowings | 4,522,656 | 242,914 | 5.37 % | 226,665 | 8,920 | 3.94 % | |||||
Junior and other subordinated debentures | 421,195 | 37,665 | 8.94 % | 399,568 | 19,889 | 4.98 % | |||||
Total interest-bearing liabilities | 29,194,822 | $ 746,156 | 2.56 % | 16,686,325 | $ 78,001 | 0.47 % | |||||
Non-interest-bearing deposits | 14,927,443 | 11,053,921 | |||||||||
Other liabilities | 907,329 | 501,573 | |||||||||
Total liabilities | 45,029,594 | 28,241,819 | |||||||||
Common equity | 4,466,725 | 2,575,577 | |||||||||
Total liabilities and shareholders' equity | $ 49,496,319 | $ 30,817,396 | |||||||||
NET INTEREST INCOME (2) | $ 1,797,298 | $ 1,071,334 | |||||||||
NET INTEREST SPREAD | 2.98 % | 3.41 % | |||||||||
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2) | 3.91 % | 3.62 % | |||||||||
(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 $4.1 million for the twelve months ended December 31, 2023, as compared to $1.3 million for the same period in 2022. |
Columbia Banking System, Inc. | |||||||||||||
Residential Mortgage Banking Activity | |||||||||||||
(Unaudited) | |||||||||||||
Quarter Ended | % Change (1) | ||||||||||||
($ in thousands) | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Seq. Quarter | Year over Year | ||||||
Residential mortgage banking revenue: | |||||||||||||
Origination and sale | $ 2,686 | $ 2,442 | $ 3,166 | $ 3,587 | $ 4,252 | 10 % | (37) % | ||||||
Servicing | 5,966 | 8,887 | 9,167 | 9,397 | 9,184 | (33) % | (35) % | ||||||
Change in fair value of MSR asset: | |||||||||||||
Changes due to collection/realization of expected cash flows over time | (3,215) | (4,801) | (4,797) | (4,881) | (4,986) | (33) % | (36) % | ||||||
Changes due to valuation inputs or assumptions | (6,251) | 5,308 | (2,242) | (2,937) | (9,914) | (218) % | (37) % | ||||||
MSR hedge gain (loss) | 5,026 | (4,733) | (7,636) | 2,650 | (348) | nm | nm | ||||||
Total | $ 4,212 | $ 7,103 | $ (2,342) | $ 7,816 | $ (1,812) | (41) % | nm | ||||||
Closed loan volume for-sale | $ 87,033 | $ 103,333 | $ 119,476 | $ 131,726 | $ 216,833 | (16) % | (60) % | ||||||
Gain on sale margin | 3.09 % | 2.36 % | 2.65 % | 2.72 % | 1.96 % | 0.73 | 1.13 | ||||||
Residential mortgage servicing rights: | |||||||||||||
Balance, beginning of period | $ 117,640 | $ 172,929 | $ 178,800 | $ 185,017 | $ 196,177 | (32) % | (40) % | ||||||
Additions for new MSR capitalized | 920 | 1,658 | 1,168 | 1,601 | 3,740 | (45) % | (75) % | ||||||
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 | (3,215) | (4,801) | (4,797) | (4,881) | (4,986) | (33) % | (36) % | ||||||
Changes due to valuation inputs or assumptions | (6,251) | 5,308 | (2,242) | (2,937) | (9,914) | (218) % | (37) % | ||||||
Balance, end of period | $ 109,243 | $ 117,640 | $ 172,929 | $ 178,800 | $ 185,017 | (7) % | (41) % | ||||||
Residential mortgage loans serviced for others | $ 8,175,664 | $ 8,240,950 | $ 12,726,615 | $ 12,914,046 | $ 13,020,189 | (1) % | (37) % | ||||||
MSR as % of serviced portfolio | 1.34 % | 1.43 % | 1.36 % | 1.38 % | 1.42 % | (0.09) | (0.08) | ||||||
(1) Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm." |
Columbia Banking System, Inc. | |||||
Residential Mortgage Banking Activity | |||||
(Unaudited) | |||||
Twelve Months Ended | % Change (1) | ||||
($ in thousands) | Dec 31, 2023 | Dec 31, 2022 | Year over Year | ||
Residential mortgage banking revenue: | |||||
Origination and sale | $ 11,881 | $ 46,712 | (75) % | ||
Servicing | 33,417 | 37,358 | (11) % | ||
Change in fair value of MSR asset: | |||||
Changes due to collection/realization of expected cash flows over time | (17,694) | (20,272) | (13) % | ||
Changes due to valuation inputs or assumptions | (6,122) | 57,537 | (111) % | ||
MSR hedge loss | (4,693) | (14,476) | (68) % | ||
Total | $ 16,789 | $ 106,859 | (84) % | ||
Closed loan volume for-sale | $ 441,568 | $ 1,839,466 | (76) % | ||
Gain on sale margin | 2.69 % | 2.54 % | 0.15 | ||
Residential mortgage servicing rights: | |||||
Balance, beginning of period | $ 185,017 | $ 123,615 | 50 % | ||
Additions for new MSR capitalized | 5,347 | 24,137 | (78) % | ||
Sale of MSR assets | (57,305) | — | nm | ||
Change in fair value of MSR asset: | |||||
Changes due to collection/realization of expected cash flows over time | (17,694) | (20,272) | (13) % | ||
Changes due to valuation inputs or assumptions | (6,122) | 57,537 | (111) % | ||
Balance, end of period | $ 109,243 | $ 185,017 | (41) % | ||
(1) | Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm." |
Non-GAAP Financial MeasuresIn addition to results presented in accordance with generally accepted accounting principles in the United States of America ("GAAP"), this press release contains certain non-GAAP financial measures. The company believes presenting certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends, and our financial position. We utilize these measures for internal planning and forecasting purposes. We, as well as securities analysts, investors, and other interested parties, also use these measures to compare peer company operating performance. We believe that our presentation and discussion, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting our business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitution for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Columbia Banking System, Inc. | |||||||||||||||
GAAP to Non-GAAP Reconciliation | |||||||||||||||
(Unaudited) | |||||||||||||||
Quarter Ended | % Change (2) | ||||||||||||||
($ in thousands, except per share data) | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Seq. Quarter | Year over Year | ||||||||
Total shareholders' equity | a | $ 4,995,034 | $ 4,632,162 | $ 4,828,188 | $ 4,884,723 | $ 2,479,826 | 8 % | 101 % | |||||||
Less: Goodwill | 1,029,234 | 1,029,234 | 1,029,234 | 1,030,142 | — | 0 % | nm | ||||||||
Less: Other intangible assets, net | 603,679 | 636,883 | 666,762 | 702,315 | 4,745 | (5) % | nm | ||||||||
Tangible common shareholders' equity | b | $ 3,362,121 | $ 2,966,045 | $ 3,132,192 | $ 3,152,266 | $ 2,475,081 | 13 % | 36 % | |||||||
Total assets | c | $ 52,173,596 | $ 51,993,815 | $ 53,592,096 | $ 53,994,226 | $ 31,848,639 | 0 % | 64 % | |||||||
Less: Goodwill | 1,029,234 | 1,029,234 | 1,029,234 | 1,030,142 | — | 0 % | nm | ||||||||
Less: Other intangible assets, net | 603,679 | 636,883 | 666,762 | 702,315 | 4,745 | (5) % | nm | ||||||||
Tangible assets | d | $ 50,540,683 | $ 50,327,698 | $ 51,896,100 | $ 52,261,769 | $ 31,843,894 | 0 % | 59 % | |||||||
Common shares outstanding at period end (1) | e | 208,585 | 208,575 | 208,514 | 208,429 | 129,321 | 0 % | 61 % | |||||||
Total shareholders' equity to total assets ratio | a / c | 9.57 % | 8.91 % | 9.01 % | 9.05 % | 7.79 % | 0.66 | 1.78 | |||||||
Tangible common equity ratio | b / d | 6.65 % | 5.89 % | 6.04 % | 6.03 % | 7.77 % | 0.76 | (1.12) | |||||||
Book value per common share (1) | a / e | $ 23.95 | $ 22.21 | $ 23.16 | $ 23.44 | $ 19.18 | 8 % | 25 % | |||||||
Tangible book value per common share (1) | b / e | $ 16.12 | $ 14.22 | $ 15.02 | $ 15.12 | $ 19.14 | 13 % | (16) % | |||||||
(1) | Periods prior to February 28, 2023, have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the merger of 0.5958. |
(2) | 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 (1) | ||||||||||||||
($ in thousands) | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Seq. Quarter | Year over Year | ||||||||
Non-Interest Income Adjustments | |||||||||||||||
Gain on sale of debt securities, net | $ 9 | $ 4 | $ — | $ — | $ — | 125 % | nm | ||||||||
(Loss) gain on equity securities, net | 2,636 | (2,055) | (697) | 2,416 | 284 | nm | nm | ||||||||
Gain (loss) on swap derivatives | (8,042) | 5,700 | 1,288 | (3,543) | (2,329) | (241) % | 245 % | ||||||||
Change in fair value of certain loans held for investment | 19,354 | (19,247) | (6,965) | 9,488 | 4,192 | nm | 362 % | ||||||||
Change in fair value of MSR due to valuation inputs or assumptions | (6,251) | 5,308 | (2,242) | (2,937) | (9,914) | (218) % | (37) % | ||||||||
MSR hedge (loss) gain | 5,026 | (4,733) | (7,636) | 2,650 | (348) | nm | nm | ||||||||
Total non-interest income adjustments | a | $ 12,732 | $ (15,023) | $ (16,252) | $ 8,074 | $ (8,115) | nm | nm | |||||||
Non-Interest Expense Adjustments | |||||||||||||||
Merger-related expense | $ 7,174 | $ 18,938 | $ 29,649 | $ 115,898 | $ 11,637 | (62) % | (38) % | ||||||||
Exit and disposal costs | 2,791 | 4,017 | 2,119 | 1,291 | 1,966 | (31) % | 42 % | ||||||||
Total non-interest expense adjustments | b | $ 9,965 | $ 22,955 | $ 31,768 | $ 117,189 | $ 13,603 | (57) % | (27) % | |||||||
Net interest income | c | $ 453,623 | $ 480,875 | $ 483,975 | $ 374,698 | $ 305,479 | (6) % | 48 % | |||||||
Non-interest income (GAAP) | d | $ 65,533 | $ 43,981 | $ 39,678 | $ 54,735 | $ 34,879 | 49 % | 88 % | |||||||
Less: Non-interest income adjustments | a | (12,732) | 15,023 | 16,252 | (8,074) | 8,115 | (185) % | (257) % | |||||||
Operating non-interest income (non-GAAP) | e | $ 52,801 | $ 59,004 | $ 55,930 | $ 46,661 | $ 42,994 | (11) % | 23 % | |||||||
Revenue (GAAP) | f=c+d | $ 519,156 | $ 524,856 | $ 523,653 | $ 429,433 | $ 340,358 | (1) % | 53 % | |||||||
Operating revenue (non-GAAP) | g=c+e | $ 506,424 | $ 539,879 | $ 539,905 | $ 421,359 | $ 348,473 | (6) % | 45 % | |||||||
Non-interest expense (GAAP) | h | $ 337,176 | $ 304,147 | $ 328,559 | $ 342,818 | $ 194,982 | 11 % | 73 % | |||||||
Less: Non-interest expense adjustments | b | (9,965) | (22,955) | (31,768) | (117,189) | (13,603) | (57) % | (27) % | |||||||
Operating non-interest expense (non-GAAP) | i | $ 327,211 | $ 281,192 | $ 296,791 | $ 225,629 | $ 181,379 | 16 % | 80 % | |||||||
Net income (loss) (GAAP) | j | $ 93,531 | $ 135,845 | $ 133,377 | $ (14,038) | $ 82,964 | (31) % | 13 % | |||||||
Provision (benefit) for income taxes | 33,540 | 48,127 | 45,703 | (4,886) | 29,464 | (30) % | 14 % | ||||||||
Income (loss) before provision for income taxes | 127,071 | 183,972 | 179,080 | (18,924) | 112,428 | (31) % | 13 % | ||||||||
Provision for credit losses | 54,909 | 36,737 | 16,014 | 105,539 | 32,948 | 49 % | 67 % | ||||||||
Pre-provision net revenue (PPNR) (non-GAAP) | k | 181,980 | 220,709 | 195,094 | 86,615 | 145,376 | (18) % | 25 % | |||||||
Less: Non-interest income adjustments | a | (12,732) | 15,023 | 16,252 | (8,074) | 8,115 | (185) % | (257) % | |||||||
Add: Non-interest expense adjustments | b | 9,965 | 22,955 | 31,768 | 117,189 | 13,603 | (57) % | (27) % | |||||||
Operating PPNR (non-GAAP) | l | $ 179,213 | $ 258,687 | $ 243,114 | $ 195,730 | $ 167,094 | (31) % | 7 % | |||||||
Net income (loss) (GAAP) | j | $ 93,531 | $ 135,845 | $ 133,377 | $ (14,038) | $ 82,964 | (31) % | 13 % | |||||||
Less: Non-interest income adjustments | a | (12,732) | 15,023 | 16,252 | (8,074) | 8,115 | (185) % | (257) % | |||||||
Add: Non-interest expense adjustments | b | 9,965 | 22,955 | 31,768 | 117,189 | 13,603 | (57) % | (27) % | |||||||
Tax effect of adjustments | 691 | (9,482) | (11,981) | (23,565) | (5,459) | nm | nm | ||||||||
Operating net income (non-GAAP) | m | $ 91,455 | $ 164,341 | $ 169,416 | $ 71,512 | $ 99,223 | (44) % | (8) % | |||||||
(1) | 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 (3) | ||||||||||||||
($ in thousands, except per share data) | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Seq. Quarter | Year over Year | ||||||||
Average assets | n | $ 51,832,356 | $ 53,011,361 | $ 53,540,574 | $ 39,425,975 | $ 31,637,490 | (2) % | 64 % | |||||||
Less: Average goodwill and other intangible assets, net | 1,652,282 | 1,684,093 | 1,718,705 | 623,042 | 5,298 | (2) % | nm | ||||||||
Average tangible assets | o | $ 50,180,074 | $ 51,327,268 | $ 51,821,869 | $ 38,802,933 | $ 31,632,192 | (2) % | 59 % | |||||||
Average common shareholders' equity | p | $ 4,695,736 | $ 4,866,975 | $ 4,935,239 | $ 3,349,761 | $ 2,438,639 | (4) % | 93 % | |||||||
Less: Average goodwill and other intangible assets, net | 1,652,282 | 1,684,093 | 1,718,705 | 623,042 | 5,298 | (2) % | nm | ||||||||
Average tangible common equity | q | $ 3,043,454 | $ 3,182,882 | $ 3,216,534 | $ 2,726,719 | $ 2,433,341 | (4) % | 25 % | |||||||
Weighted average basic shares outstanding (1) | r | 208,083 | 208,070 | 207,977 | 156,383 | 129,321 | 0 % | 61 % | |||||||
Weighted average diluted shares outstanding (1) | s | 208,739 | 208,645 | 208,545 | 156,383 | 129,801 | 0 % | 61 % | |||||||
Select Per-Share & Performance Metrics | |||||||||||||||
Earnings-per-share - basic (1) | j / r | $ 0.45 | $ 0.65 | $ 0.64 | $ (0.09) | $ 0.64 | (31) % | (30) % | |||||||
Earnings-per-share - diluted (1) | j / s | $ 0.45 | $ 0.65 | $ 0.64 | $ (0.09) | $ 0.64 | (31) % | (30) % | |||||||
Efficiency ratio (2) | h / f | 64.81 % | 57.82 % | 62.60 % | 79.71 % | 57.24 % | 6.99 | 7.57 | |||||||
ROAA | j / n | 0.72 % | 1.02 % | 1.00 % | (0.14) % | 1.04 % | (0.30) | (0.32) | |||||||
Return on average tangible assets | j / o | 0.74 % | 1.05 % | 1.03 % | (0.15) % | 1.04 % | (0.31) | (0.30) | |||||||
PPNR ROAA | k / n | 1.39 % | 1.65 % | 1.46 % | 0.89 % | 1.82 % | (0.26) | (0.43) | |||||||
Return on average common equity | j / p | 7.90 % | 11.07 % | 10.84 % | (1.70) % | 13.50 % | (3.17) | (5.60) | |||||||
Return on average tangible common equity | j / q | 12.19 % | 16.93 % | 16.63 % | (2.09) % | 13.53 % | (4.74) | (1.34) | |||||||
Operating Per-Share & Performance Metrics | |||||||||||||||
Operating earnings-per-share - basic (1) | m / r | $ 0.44 | $ 0.79 | $ 0.81 | $ 0.46 | $ 0.77 | (44) % | (43) % | |||||||
Operating earnings-per-share - diluted (1) | m / s | $ 0.44 | $ 0.79 | $ 0.81 | $ 0.46 | $ 0.76 | (44) % | (42) % | |||||||
Operating efficiency ratio (2) | i / g | 64.47 % | 51.97 % | 54.85 % | 53.46 % | 52.01 % | 12.50 | 12.46 | |||||||
Operating ROAA | m / n | 0.70 % | 1.23 % | 1.27 % | 0.74 % | 1.24 % | (0.53) | (0.54) | |||||||
Operating return on average tangible assets | m / o | 0.72 % | 1.27 % | 1.31 % | 0.75 % | 1.24 % | (0.55) | (0.52) | |||||||
Operating PPNR ROAA | l / n | 1.37 % | 1.94 % | 1.82 % | 2.01 % | 2.10 % | (0.57) | (0.73) | |||||||
Operating return on average common equity | m / p | 7.73 % | 13.40 % | 13.77 % | 8.66 % | 16.14 % | (5.67) | (8.41) | |||||||
Operating return on average tangible common equity | m / q | 11.92 % | 20.48 % | 21.13 % | 10.64 % | 16.18 % | (8.56) | (4.26) | |||||||
(1) | Periods prior to February 28, 2023, have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the merger of 0.5958. |
(2) | Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation. |
(3) | 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) | |||||||
Twelve Months Ended | % Change (1) | ||||||
($ in thousands) | Dec 31, 2023 | Dec 31, 2022 | Year over Year | ||||
Non-Interest Income Adjustments | |||||||
Gain on sale of debt securities, net | $ 13 | $ 2 | nm | ||||
Gain (loss) on equity securities, net | 2,300 | (7,099) | (132) % | ||||
(Loss) gain on swap derivatives | (4,597) | 16,249 | (128) % | ||||
Change in fair value of certain loans held for investment | 2,630 | (58,464) | (104) % | ||||
Change in fair value of MSR due to valuation inputs or assumptions | (6,122) | 57,537 | (111) % | ||||
MSR hedge loss | (4,693) | (14,476) | (68) % | ||||
Total non-interest income adjustments | a | $ (10,469) | $ (6,251) | 67 % | |||
Non-Interest Expense Adjustments | |||||||
Merger-related expense | $ 171,659 | $ 17,356 | nm | ||||
Exit and disposal costs | 10,218 | 6,805 | 50 % | ||||
Total non-interest expense adjustments | b | $ 181,877 | $ 24,161 | nm | |||
Net interest income | c | $ 1,793,171 | $ 1,070,016 | 68 % | |||
Non-interest income (GAAP) | d | $ 203,927 | $ 199,528 | 2 % | |||
Less: Non-interest income adjustments | a | 10,469 | 6,251 | 67 % | |||
Operating non-interest income (non-GAAP) | e | $ 214,396 | $ 205,779 | 4 % | |||
Revenue (GAAP) | f=c+d | $ 1,997,098 | $ 1,269,544 | 57 % | |||
Operating revenue (non-GAAP) | g=c+e | $ 2,007,567 | $ 1,275,795 | 57 % | |||
Non-interest expense (GAAP) | h | $ 1,312,700 | $ 734,950 | 79 % | |||
Less: Non-interest expense adjustments | b | (181,877) | (24,161) | nm | |||
Operating non-interest expense (non-GAAP) | i | $ 1,130,823 | $ 710,789 | 59 % | |||
Net income (GAAP) | j | $ 348,715 | $ 336,752 | 4 % | |||
Provision for income taxes | 122,484 | 113,826 | 8 % | ||||
Income before provision for income taxes | 471,199 | 450,578 | 5 % | ||||
Provision for credit losses | 213,199 | 84,016 | 154 % | ||||
Pre-provision net revenue (PPNR) (non-GAAP) | k | 684,398 | 534,594 | 28 % | |||
Less: Non-interest income adjustments | a | 10,469 | 6,251 | 67 % | |||
Add: Non-interest expense adjustments | b | 181,877 | 24,161 | nm | |||
Operating PPNR (non-GAAP) | l | $ 876,744 | $ 565,006 | 55 % | |||
Net income (GAAP) | j | $ 348,715 | $ 336,752 | 4 % | |||
Less: Non-interest income adjustments | a | 10,469 | 6,251 | 67 % | |||
Add: Non-interest expense adjustments | b | 181,877 | 24,161 | nm | |||
Tax effect of adjustments | (44,337) | (7,479) | 493 % | ||||
Operating net income (non-GAAP) | m | $ 496,724 | $ 359,685 | 38 % | |||
(1) Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm." | |||||||
Average assets | n | $ 49,496,319 | $ 30,817,396 | 61 % | |||
Less: Average goodwill and other intangible assets, net | 1,423,075 | 6,847 | nm | ||||
Average tangible assets | o | $ 48,073,244 | $ 30,810,549 | 56 % | |||
Average common shareholders' equity | p | $ 4,466,725 | $ 2,575,577 | 73 % | |||
Less: Average goodwill and other intangible assets, net | 1,423,075 | 6,847 | nm | ||||
Average tangible common equity | q | $ 3,043,650 | $ 2,568,730 | 18 % | |||
Weighted average basic shares outstanding (1) | r | 195,304 | 129,277 | 51 % | |||
Weighted average diluted shares outstanding (1) | s | 195,871 | 129,732 | 51 % | |||
Select Per-Share & Performance Metrics | |||||||
Earnings-per-share - basic (1) | j / r | $ 1.79 | $ 2.60 | (31) % | |||
Earnings-per-share - diluted (1) | j / s | $ 1.78 | $ 2.60 | (32) % | |||
Efficiency ratio (2) | h / f | 65.59 % | 57.83 % | 7.76 | |||
ROAA | j / n | 0.70 % | 1.09 % | (0.39) | |||
Return on average tangible assets | j / o | 0.73 % | 1.09 % | (0.36) | |||
PPNR ROAA | k/n | 1.38 % | 1.73 % | (0.35) | |||
Return on average common equity | j / p | 7.81 % | 13.07 % | (5.26) | |||
Return on average tangible common equity | j / q | 11.46 % | 13.11 % | (1.65) | |||
Operating Per-Share & Performance Metrics | |||||||
Operating earnings-per-share - basic (1) | m / r | $ 2.54 | $ 2.78 | (9) % | |||
Operating earnings-per-share - diluted (1) | m / s | $ 2.54 | $ 2.77 | (8) % | |||
Operating efficiency ratio (2) | i / g | 56.21 % | 55.66 % | 0.55 | |||
Operating ROAA | m / n | 1.00 % | 1.17 % | (0.17) | |||
Operating return on average tangible assets | m / o | 1.03 % | 1.17 % | (0.14) | |||
Operating PPNR ROAA | l / n | 1.77 % | 1.83 % | (0.06) | |||
Operating return on average common equity | m / p | 11.12 % | 13.97 % | (2.85) | |||
Operating return on average tangible common equity | m / q | 16.32 % | 14.00 % | 2.32 | |||
(1) | Periods prior to February 28, 2023, have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the merger of 0.5958. |
(2) | Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation. |
(3) | 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 (4) | ||||||||||||||
($ in thousands) | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Seq. Quarter | Year over Year | ||||||||
Loans and leases interest income | a | $ 577,092 | $ 567,929 | $ 551,997 | $ 412,726 | $ 320,747 | 2 % | 80 % | |||||||
Less: Acquired loan accretion - rate related (2), (3) | b | 26,914 | 28,963 | 30,548 | 11,832 | 387 | (7) % | nm | |||||||
Less: Acquired loan accretion - credit related (3) | c | 5,430 | 6,370 | 7,100 | 3,806 | — | (15) % | nm | |||||||
Adjusted loans and leases interest income | d=a-b-c | $ 544,748 | $ 532,596 | $ 514,349 | $ 397,088 | $ 320,360 | 2 % | 70 % | |||||||
Taxable securities interest income | e | $ 82,872 | $ 85,007 | $ 81,617 | $ 40,448 | $ 18,290 | (3) % | 353 % | |||||||
Less: Acquired taxable securities accretion - rate related | f | 34,290 | 39,219 | 34,801 | 15,356 | — | (13) % | nm | |||||||
Adjusted Taxable securities interest income | g=e-f | $ 48,582 | $ 45,788 | $ 46,816 | $ 25,092 | $ 18,290 | 6 % | 166 % | |||||||
Non-taxable securities interest income (1) | h | $ 8,073 | $ 8,085 | $ 8,010 | $ 4,068 | $ 1,571 | 0 % | 414 % | |||||||
Less: Acquired non-taxable securities accretion - rate related | i | 2,309 | 2,288 | 2,274 | 901 | — | 1 % | nm | |||||||
Adjusted Taxable securities interest income (1) | j=h-i | $ 5,764 | $ 5,797 | $ 5,736 | $ 3,167 | $ 1,571 | (1) % | 267 % | |||||||
Interest income (1) | k | $ 692,741 | $ 697,169 | $ 676,922 | $ 476,622 | $ 352,530 | (1) % | 97 % | |||||||
Less: Acquired loan and securities accretion - rate related | l=b+f+i | 63,513 | 70,470 | 67,623 | 28,089 | 387 | (10) % | nm | |||||||
Less: Acquired loan accretion - credit related | c | 5,430 | 6,370 | 7,100 | 3,806 | — | (15) % | nm | |||||||
Adjusted interest income (1) | m=k-l-c | $ 623,798 | $ 620,329 | $ 602,199 | $ 444,727 | $ 352,143 | 1 % | 77 % | |||||||
Interest-bearing deposits interest expense | n | $ 170,659 | $ 126,974 | $ 100,408 | $ 63,613 | $ 31,174 | 34 % | 447 % | |||||||
Less: Acquired deposit accretion | o | (187) | (373) | (280) | (93) | — | (50) % | nm | |||||||
Adjusted interest-bearing deposits interest expense | p=n-o | $ 170,846 | $ 127,347 | $ 100,688 | $ 63,706 | $ 31,174 | 34 % | 448 % | |||||||
Interest expense | q | $ 238,011 | $ 215,138 | $ 191,754 | $ 101,253 | $ 46,768 | 11 % | 409 % | |||||||
Less: Acquired interest-bearing liabilities accretion (2) | r | (244) | (430) | (337) | (150) | (57) | (43) % | 328 % | |||||||
Adjusted interest expense | s=q-r | $ 238,255 | $ 215,568 | $ 192,091 | $ 101,403 | $ 46,825 | 11 % | 409 % | |||||||
Net Interest Income (1) | t | $ 454,730 | $ 482,031 | $ 485,168 | $ 375,369 | $ 305,762 | (6) % | 49 % | |||||||
Less: Acquired loan, securities, and interest-bearing liabilities accretion - rate related (3) | u=l-r | 63,757 | 70,900 | 67,960 | 28,239 | 444 | (10) % | nm | |||||||
Less: Acquired loan accretion - credit related (3) | c | 5,430 | 6,370 | 7,100 | 3,806 | — | (15) % | nm | |||||||
Adjusted net interest income (1) | v=t-u-c | $ 385,543 | $ 404,761 | $ 410,108 | $ 343,324 | $ 305,318 | (5) % | 26 % | |||||||
Average loans and leases | aa | 37,333,310 | 37,050,518 | 37,169,315 | 29,998,630 | 25,855,556 | 1 % | 44 % | |||||||
Average taxable securities | ab | 7,903,053 | 8,356,165 | 8,656,147 | 4,960,966 | 3,042,044 | (5) % | 160 % | |||||||
Average non-taxable securities | ac | 809,551 | 844,417 | 865,278 | 437,020 | 200,825 | (4) % | 303 % | |||||||
Average interest-earning assets | ad | 47,838,229 | 48,981,105 | 49,442,518 | 37,055,705 | 30,305,129 | (2) % | 58 % | |||||||
Average interest-bearing deposits | ae | 26,622,343 | 25,121,745 | 24,494,717 | 19,496,551 | 16,103,984 | 6 % | 65 % | |||||||
Average interest-bearing liabilities | af | 31,226,600 | 31,413,978 | 31,372,416 | 22,548,264 | 17,668,730 | (1) % | 77 % | |||||||
(1) | Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate. |
(2) | Includes discount accretion related to UHC's 2014 acquisition of Sterling Financial Corporation. |
(3) | The cumulative fair value discount on historical Columbia loans was established as of February 28, 2023, and the allocation between the credit-related discount and the rate-related discount was established at that time. Our disclosure of credit-related and rate-related discount accretion is an estimate based on the relative allocation of these two items to the discount at the closing of the merger. |
(4) | 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) | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Seq. Quarter | Year over Year | ||||||||
Average yield on loans and leases | a / aa | 6.13 % | 6.08 % | 5.95 % | 5.55 % | 4.92 % | 0.05 | 1.21 | |||||||
Less: Acquired loan accretion - rate related (2),(3) | b / aa | 0.29 % | 0.31 % | 0.33 % | 0.16 % | 0.01 % | (0.02) | 0.28 | |||||||
Less: Acquired loan accretion - credit related (3) | c / aa | 0.06 % | 0.07 % | 0.08 % | 0.05 % | — % | (0.01) | 0.06 | |||||||
Adjusted average yield on loans and leases | d / aa | 5.78 % | 5.70 % | 5.54 % | 5.34 % | 4.91 % | 0.08 | 0.87 | |||||||
Average yield on taxable securities | e / ab | 4.19 % | 4.07 % | 3.77 % | 3.26 % | 2.40 % | 0.12 | 1.79 | |||||||
Less: Acquired taxable securities accretion - rate related | f / ab | 1.72 % | 1.86 % | 1.61 % | 1.26 % | — % | (0.14) | 1.72 | |||||||
Adjusted average yield on taxable securities | g / ab | 2.47 % | 2.21 % | 2.16 % | 2.00 % | 2.40 % | 0.26 | 0.07 | |||||||
Average yield on non-taxable securities (1) | h / ac | 3.99 % | 3.83 % | 3.70 % | 3.72 % | 3.13 % | 0.16 | 0.86 | |||||||
Less: Acquired non-taxable securities accretion - rate related | i / ac | 1.13 % | 1.07 % | 1.05 % | 0.84 % | — % | 0.06 | 1.13 | |||||||
Adjusted yield on non-taxable securities (1) | j / ac | 2.86 % | 2.76 % | 2.65 % | 2.88 % | 3.13 % | 0.10 | (0.27) | |||||||
Average yield on interest-earning assets (1) | k / ad | 5.75 % | 5.65 % | 5.48 % | 5.19 % | 4.62 % | 0.10 | 1.13 | |||||||
Less: Acquired loan and securities accretion - rate related | l / ad | 0.53 % | 0.57 % | 0.55 % | 0.31 % | 0.01 % | (0.04) | 0.52 | |||||||
Less: Acquired loan accretion - credit related | c / ad | 0.05 % | 0.05 % | 0.06 % | 0.04 % | — % | — | 0.05 | |||||||
Adjusted average yield on interest-earning assets (1) | m / ad | 5.17 % | 5.03 % | 4.87 % | 4.84 % | 4.61 % | 0.14 | 0.56 | |||||||
Average rate on interest-bearing deposits | n / ae | 2.54 % | 2.01 % | 1.64 % | 1.32 % | 0.77 % | 0.53 | 1.77 | |||||||
Less: Acquired deposit accretion | o / ae | — % | (0.01) % | — % | — % | — % | 0.01 | — | |||||||
Adjusted average rate on interest-bearing deposits | p / ae | 2.54 % | 2.02 % | 1.64 % | 1.32 % | 0.77 % | 0.52 | 1.77 | |||||||
Average rate on interest-bearing liabilities | q / af | 3.02 % | 2.72 % | 2.45 % | 1.82 % | 1.05 % | 0.30 | 1.97 | |||||||
Less: Acquired interest-bearing liabilities accretion (2) | r / af | — % | (0.01) % | — % | — % | — % | 0.01 | — | |||||||
Adjusted average rate on interest-bearing liabilities | s / af | 3.02 % | 2.73 % | 2.45 % | 1.82 % | 1.05 % | 0.29 | 1.97 | |||||||
Net interest margin (1) | t / ad | 3.78 % | 3.91 % | 3.93 % | 4.08 % | 4.01 % | (0.13) | (0.23) | |||||||
Less: Acquired loan, securities, and interest-bearing liabilities accretion - rate related (3) | u / ad | 0.53 % | 0.58 % | 0.55 % | 0.31 % | — % | (0.05) | 0.53 | |||||||
Less: Acquired loan accretion - credit related (3) | c / ad | 0.05 % | 0.05 % | 0.06 % | 0.04 % | — % | — | 0.05 | |||||||
Adjusted net interest margin (1) | v / ad | 3.20 % | 3.28 % | 3.32 % | 3.73 % | 4.01 % | (0.08) | (0.81) | |||||||
(1) | Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate. |
(2) | Includes discount accretion related to UHC's 2014 acquisition of Sterling Financial Corporation. |
(3) | The cumulative fair value discount on historical Columbia loans was established as of February 28, 2023, and the allocation between the credit-related discount and the rate-related discount was established at that time. Our disclosure of credit-related and rate-related discount accretion is an estimate based on the relative allocation of these two items to the discount at the closing of the merger. |
Columbia Banking System, Inc. | |||||||
GAAP to Non-GAAP Reconciliation - Continued | |||||||
(Unaudited) | |||||||
Twelve Months Ended | |||||||
($ in thousands) | Dec 31, 2023 | Dec 31, 2022 | Year over Year (4) | ||||
Loans and leases interest income | a | $ 2,109,744 | $ 1,041,446 | 103 % | |||
Less: Acquired loan accretion - rate related (2), (3) | b | 98,257 | 3,677 | nm | |||
Less: Acquired loan accretion - credit related (3) | c | 22,706 | — | nm | |||
Adjusted loans and leases interest income | d=a-b-c | $ 1,988,781 | $ 1,037,769 | 92 % | |||
Taxable securities interest income | e | $ 289,944 | $ 72,702 | 299 % | |||
Less: Acquired taxable securities accretion - rate related | f | 123,666 | — | nm | |||
Adjusted Taxable securities interest income | g=e-f | $ 166,278 | $ 72,702 | 129 % | |||
Non-taxable securities interest income (1) | h | $ 28,236 | $ 6,669 | 323 % | |||
Less: Acquired non-taxable securities accretion - rate related | i | 7,772 | — | nm | |||
Adjusted Taxable securities interest income (1) | j=h-i | $ 20,464 | $ 6,669 | 207 % | |||
Interest income (1) | k | $ 2,543,454 | $ 1,149,335 | 121 % | |||
Less: Acquired loan and securities accretion - rate related | l=b+f+i | 229,695 | 3,677 | nm | |||
Less: Acquired loan accretion - credit related | c | 22,706 | — | nm | |||
Adjusted interest income (1) | m=k-l-c | $ 2,291,053 | $ 1,145,658 | 100 % | |||
Interest-bearing deposits interest expense | n | $ 461,654 | $ 48,195 | nm | |||
Less: Acquired deposit accretion | o | (933) | — | nm | |||
Adjusted interest-bearing deposits interest expense | p=n-o | $ 462,587 | $ 48,195 | nm | |||
Interest expense | q | $ 746,156 | $ 78,001 | nm | |||
Less: Acquired interest-bearing liabilities accretion (2) | r | (1,161) | (228) | 409 % | |||
Adjusted interest expense | s=q-r | $ 747,317 | $ 78,229 | nm | |||
Net Interest Income (1) | t | $ 1,797,298 | $ 1,071,334 | 68 % | |||
Less: Acquired loan, securities, and interest-bearing liabilities accretion - rate related (3) | u=l-r | 230,856 | 3,905 | nm | |||
Less: Acquired loan accretion - credit related (3) | c | 22,706 | — | nm | |||
Adjusted net interest income (1) | v=t-u-c | $ 1,543,736 | $ 1,067,429 | 45 % | |||
Average loans and leases | aa | 35,412,594 | 24,225,518 | 46 % | |||
Average taxable securities | ab | 7,479,573 | 3,343,721 | 124 % | |||
Average non-taxable securities | ac | 740,376 | 216,943 | 241 % | |||
Average interest-earning assets | ad | 45,867,566 | 29,556,131 | 55 % | |||
Average interest-bearing deposits | ae | 23,981,118 | 15,594,492 | 54 % | |||
Average interest-bearing liabilities | af | 29,194,822 | 16,686,325 | 75 % | |||
(1) | Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate. |
(2) | Includes discount accretion related to UHC's 2014 acquisition of Sterling Financial Corporation. |
(3) | The cumulative fair value discount on historical Columbia loans was established as of February 28, 2023, and the allocation between the credit-related discount and the rate-related discount was established at that time. Our disclosure of credit-related and rate-related discount accretion is an estimate based on the relative allocation of these two items to the discount at the closing of the merger. |
(4) | 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) | |||||||
Twelve Months Ended | |||||||
($ in thousands) | Dec 31, 2023 | Dec 31, 2022 | Year over Year | ||||
Average yield on loans and leases | a / aa | 5.95 % | 4.29 % | 1.66 | |||
Less: Acquired loan accretion - rate related (2),(3) | b / aa | 0.28 % | 0.02 % | 0.26 | |||
Less: Acquired loan accretion - credit related (3) | c / aa | 0.06 % | — % | 0.06 | |||
Adjusted average yield on loans and leases | d / aa | 5.61 % | 4.27 % | 1.34 | |||
Average yield on taxable securities | e / ab | 3.88 % | 2.17 % | 1.71 | |||
Less: Acquired taxable securities accretion - rate related | f / ab | 1.65 % | — % | 1.65 | |||
Adjusted average yield on taxable securities | g / ab | 2.23 % | 2.17 % | 0.06 | |||
Average yield on non-taxable securities (1) | h / ac | 3.81 % | 3.07 % | 0.74 | |||
Less: Acquired non-taxable securities accretion - rate related | i / ac | 1.05 % | — % | 1.05 | |||
Adjusted yield on non-taxable securities (1) | j / ac | 2.76 % | 3.07 % | (0.31) | |||
Average yield on interest-earning assets (1) | k / ad | 5.54 % | 3.88 % | 1.66 | |||
Less: Acquired loan and securities accretion - rate related | l / ad | 0.50 % | 0.01 % | 0.49 | |||
Less: Acquired loan accretion - credit related | c / ad | 0.05 % | — % | 0.05 | |||
Adjusted average yield on interest-earning assets (1) | m / ad | 4.99 % | 3.87 % | 1.12 | |||
Average rate on interest-bearing deposits | n / ae | 1.93 % | 0.31 % | 1.62 | |||
Less: Acquired deposit accretion | o / ae | — % | — % | — | |||
Adjusted average rate on interest-bearing deposits | p / ae | 1.93 % | 0.31 % | 1.62 | |||
Average rate on interest-bearing liabilities | q / af | 2.56 % | 0.47 % | 2.09 | |||
Less: Acquired interest-bearing liabilities accretion (2) | r / af | — % | — % | — | |||
Adjusted average rate on interest-bearing liabilities | s / af | 2.56 % | 0.47 % | 2.09 | |||
Net interest margin (1) | t / ad | 3.91 % | 3.62 % | 0.29 | |||
Less: Acquired loan, securities, and interest-bearing liabilities accretion - rate related (3) | u / ad | 0.50 % | 0.01 % | 0.49 | |||
Less: Acquired loan accretion - credit related (3) | c / ad | 0.05 % | — % | 0.05 | |||
Adjusted net interest margin (1) | v / ad | 3.36 % | 3.61 % | (0.25) | |||
(1) | Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate. |
(2) | Includes discount accretion related to UHC's 2014 acquisition of Sterling Financial Corporation. |
(3) | The cumulative fair value discount on historical Columbia loans was established as of February 28, 2023, and the allocation between the credit-related discount and the rate-related discount was established at that time. Our disclosure of credit-related and rate-related discount accretion is an estimate based on the relative allocation of these two items to the discount at the closing of the merger. |
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SOURCE Columbia Banking System, Inc.
