TACOMA, Wash., Oct. 24, 2013 /PRNewswire/ -- Melanie Dressel, President and Chief Executive Officer of Columbia Banking System and Columbia Bank (NASDAQ: COLB ("Columbia") said today upon the release of Columbia's third quarter 2013 earnings, "We continued to make significant progress in our integration of West Coast and are seeing the anticipated benefits of the acquisition materialize. We had a solid quarter resulting in an expanded net interest margin and increased loan originations."
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Net income for the current quarter was $13.3 million, a 12% increase compared to net income of $11.9 million for the third quarter of 2012. Ms. Dressel continued, "Diluted earnings per share of $0.25 for the third quarter were down from $0.28 in the second quarter this year. Acquisition-related expenses of $7.6 million, combined with the impact from FDIC acquired loan accounting, lowered our earnings per share by $0.14. Our earnings were also reduced by $0.05 per share as a result of a $4.3 million pre-tax provision for the allowance for loan losses related to the acquired West Coast loan portfolio. It is important to note that the provision is not the result of deterioration in the overall quality of this portfolio, but rather a function of transitioning from the initial measurement of the acquired loans to our standard allowance methodology."
Significant Influences on the Quarter Ended September 30, 2013
Net Interest Margin ("NIM")
Columbia's net interest margin increased to 5.37% for the third quarter of 2013, up from 5.19% for the second quarter of 2013. The increase in the net interest margin for the current quarter compared to the second quarter of 2013 was due to a 21 basis point increase in the yield on the securities portfolio as well as the prepayment charge of $1.5 million on Federal Home Loan Bank advances incurred during the second quarter, whereas a similar charge was not incurred in the current quarter.
Columbia's operating net interest margin(1), increased to 4.41% for the third quarter of 2013, up from 4.34% for the second quarter of 2013. The operating net interest margin for the current quarter improved due to increased yield on the securities portfolio. The operating net interest margin was relatively flat compared to 4.40% for the same period last year.
The following table shows the impact to interest income resulting from accretion of income on acquired loan portfolios as well as the net interest margin and operating net interest margin for the periods presented:
Three Months Ended |
Nine Months Ended |
|||||||||||||||
September 30, 2013 |
September 30, 2012 |
September 30, 2013 |
September 30, 2012 |
|||||||||||||
(dollars in thousands) |
||||||||||||||||
Incremental accretion income due to: |
||||||||||||||||
FDIC acquired impaired loans |
$ |
7,063 |
$ |
11,260 |
$ |
23,275 |
$ |
44,455 |
||||||||
Other FDIC acquired loans |
266 |
613 |
1,974 |
4,851 |
||||||||||||
Other acquired loans |
10,025 |
— |
19,660 |
— |
||||||||||||
Incremental accretion income |
$ |
17,354 |
$ |
11,873 |
$ |
44,909 |
$ |
49,306 |
||||||||
Reported net interest margin |
5.37% |
5.52% |
5.21% |
5.99% |
||||||||||||
Operating net interest margin (1) |
4.41% |
4.40% |
4.33% |
4.43% |
||||||||||||
(1) Operating net interest margin is a non-GAAP financial measure. See section titled "Non-GAAP Financial Measures" on the last page of this earnings release for the reconciliation of operating net interest margin to net interest margin. |
Balance Sheet
Ms. Dressel commented, "We continued to see good loan production during the quarter as our bankers remained focused on developing new relationships while deepening our existing ones. Our organic loan growth was muted by cyclical pay downs in sectors affected by slowing residential mortgage originations. While it didn't translate into substantial bottom line growth, I'm pleased with the loan production this quarter because our originations were up slightly over the prior quarter, during which we showed substantial portfolio growth."
At September 30, 2013, Columbia's total assets were $7.15 billion, an increase of $79.8 million from June 30, 2013 and an increase of $2.24 billion from December 31, 2012, primarily due to the acquisition of West Coast. Noncovered loans were $4.19 billion at September 30, 2013, up $12.7 million from June 30, 2013 and up 66%, or $1.67 billion, from $2.53 billion at prior year end due in large part to the acquisition of West Coast. Securities, including FHLB stock, were $1.60 billion at September 30, 2013, an increase of $61.4 million, or 4% from $1.54 billion at June 30, 2013. The increase in the securities portfolio was a result of strong core deposit growth experienced throughout the quarter while overnight funds increased due to deposit growth that occurred near the end of the quarter.
Total deposits at September 30, 2013 were $5.95 billion, an increase of $201.1 million, or 3% from $5.75 billion at June 30, 2013. Core deposits comprised 95% of total deposits, and were $5.66 billion at September 30, 2013.
Asset Quality
Andy McDonald, Columbia's Chief Credit Officer, commented, "During the third quarter we experienced a general improvement in the quality of our loan portfolios. Nonperforming assets continued their downward trend and net noncovered loan charge-offs hit their lowest quarterly level since before the start of the great recession." Mr. McDonald remarked, "I'm pleased with the positive trends our credit metrics have displayed but, as the numbers indicate, we still have room for improvement to get to our pre-2008 levels."
At September 30, 2013, nonperforming assets to noncovered assets were 0.87% or $59.6 million, down from 1.01%, or $68.0 million, at June 30, 2013. Nonaccrual loans decreased $7.6 million during the third quarter. The decrease in nonaccrual loans for the quarter was driven by payments of $6.4 million, charge-offs of $928 thousand, the return of $6.0 million of nonaccrual loans to accrual status, and $4.5 million of loans transferred to other real estate owned ("OREO"), partially offset by $10.2 million of new nonaccrual loans. OREO and other personal property owned ("OPPO") decreased by $782 thousand during the third quarter, as a result of $4.1 million in sales and $1.1 million in write-downs, partially offset by loan foreclosures of $4.4 million.
The following table sets forth, at the dates indicated, information regarding noncovered nonaccrual loans and total noncovered nonperforming assets:
September 30, 2013 |
June 30, 2013 |
December 31, 2012 |
||||||||||
(dollars in thousands) |
||||||||||||
Nonaccrual noncovered loans: |
||||||||||||
Commercial business |
$ |
11,995 |
$ |
14,649 |
$ |
9,299 |
||||||
Real estate: |
||||||||||||
One-to-four family residential |
2,220 |
3,805 |
2,349 |
|||||||||
Commercial and multifamily residential |
14,025 |
17,045 |
19,204 |
|||||||||
Total real estate |
16,245 |
20,850 |
21,553 |
|||||||||
Real estate construction: |
||||||||||||
One-to-four family residential |
3,685 |
4,753 |
4,900 |
|||||||||
Total real estate construction |
3,685 |
4,753 |
4,900 |
|||||||||
Consumer |
4,036 |
3,358 |
1,643 |
|||||||||
Total nonaccrual loans |
35,961 |
43,610 |
37,395 |
|||||||||
Noncovered other real estate owned and other personal property owned |
23,641 |
24,423 |
11,108 |
|||||||||
Total nonperforming noncovered assets |
$ |
59,602 |
$ |
68,033 |
$ |
48,503 |
The following table provides an analysis of the Company's allowance for loan and lease losses at the dates and the periods indicated:
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||||||||||||||||
2013 |
2012 |
2013 |
2012 |
||||||||||||||||||||||||||
(in thousands) |
|||||||||||||||||||||||||||||
Beginning balance |
$ |
51,698 |
$ |
52,196 |
$ |
52,244 |
$ |
53,041 |
|||||||||||||||||||||
Charge-offs: |
|||||||||||||||||||||||||||||
Commercial business |
(755) |
(3,775) |
(3,030) |
(8,178) |
|||||||||||||||||||||||||
One-to-four family residential real estate |
(47) |
(49) |
(191) |
(499) |
|||||||||||||||||||||||||
Commercial and multifamily residential real estate |
(657) |
(592) |
(2,054) |
(5,108) |
|||||||||||||||||||||||||
One-to-four family residential real estate construction |
— |
(325) |
(133) |
(1,426) |
|||||||||||||||||||||||||
Commercial and multifamily residential real estate construction |
— |
— |
— |
(93) |
|||||||||||||||||||||||||
Consumer |
(453) |
(500) |
(1,262) |
(1,968) |
|||||||||||||||||||||||||
Total charge-offs |
(1,912) |
(5,241) |
(6,670) |
(17,272) |
|||||||||||||||||||||||||
Recoveries: |
|||||||||||||||||||||||||||||
Commercial business |
854 |
277 |
1,319 |
1,314 |
|||||||||||||||||||||||||
One-to-four family residential real estate |
39 |
157 |
180 |
202 |
|||||||||||||||||||||||||
Commercial and multifamily residential real estate |
332 |
446 |
509 |
1,338 |
|||||||||||||||||||||||||
One-to-four family residential real estate construction |
461 |
404 |
2,649 |
906 |
|||||||||||||||||||||||||
Commercial and multifamily residential real estate construction |
— |
63 |
— |
64 |
|||||||||||||||||||||||||
Consumer |
112 |
350 |
353 |
809 |
|||||||||||||||||||||||||
Total recoveries |
1,798 |
1,697 |
5,010 |
4,633 |
|||||||||||||||||||||||||
Net charge-offs |
(114) |
(3,544) |
(1,660) |
(12,639) |
|||||||||||||||||||||||||
Provision for loan and lease losses |
4,260 |
2,875 |
5,260 |
11,125 |
|||||||||||||||||||||||||
Ending balance |
$ |
55,844 |
$ |
51,527 |
$ |
55,844 |
$ |
51,527 |
|||||||||||||||||||||
Columbia's allowance for loan losses to nonperforming, noncovered loans ratio was 155% for the quarter, up from 119% for the second quarter 2013 and up from 124% for the same period last year. The allowance for noncovered loan losses to period end loans was 1.33% at September 30, 2013 compared to 1.24% at June 30, 2013 and 2.07% at December 31, 2012. The decrease in the allowance percentage compared to December 31, 2012 resulted from including acquired loans in the ratio, for which only a small allowance was estimated at quarter-end given management's judgment that current net acquisition accounting adjustments still significantly address the estimated credit losses in acquired loans. Excluding acquired loans, the allowance at September 30, 2013 represented 1.73% of noncovered loans, compared to 1.87% of noncovered loans at June 30, 2013. This decrease reflects improvements in core asset quality during the current quarter.
For the third quarter of 2013, Columbia had a provision of $4.3 million for noncovered loan losses. For the comparable quarter last year the company had a provision of $2.9 million. The provision for noncovered loan losses during the current quarter was the result of moving from the initial fair value accounting for the acquired loans to our standard allowance methodology.
Impact of FDIC Acquired Loan Accounting
The following table illustrates the impact to earnings associated with Columbia's FDIC acquired loan portfolios:
FDIC Acquired Loan Activity |
||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||
September 30, 2013 |
September 30, 2012 |
September 30, 2013 |
September 30, 2012 |
|||||||||||||
(in thousands) |
||||||||||||||||
Incremental accretion income on FDIC acquired impaired loans |
$ |
7,063 |
$ |
11,260 |
$ |
23,275 |
$ |
44,455 |
||||||||
Incremental accretion income on other FDIC acquired loans |
266 |
613 |
1,974 |
4,851 |
||||||||||||
Recapture (provision) for losses on covered loans |
947 |
3,992 |
1,679 |
(23,381) |
||||||||||||
Change in FDIC loss-sharing asset |
(11,826) |
(12,951) |
(35,446) |
(14,787) |
||||||||||||
Claw back liability benefit (expense) |
188 |
(334) |
(242) |
(100) |
||||||||||||
Pre-tax earnings impact |
$ |
(3,362) |
$ |
2,580 |
$ |
(8,760) |
$ |
11,038 |
The incremental accretion income in the table above represents the amount of income recorded on acquired loans above the contractual rate stated in the individual loan notes and stems from the discount established at the time these loan portfolios were acquired. At September 30, 2013, the accretable yield on acquired impaired loans was $119.5 million and the net discount on other FDIC acquired loans was $381 thousand. The accretable yield and net discount represent income to be recorded by Columbia over the remaining life of the acquired loans. Accretable yield is subject to change based upon expected future loan cash flows, which are re-measured by Columbia on a quarterly basis.
The $947 thousand net provision recapture for losses on covered loans in the current period is substantially offset by an 80%, or $758 thousand, charge to the change in the FDIC loss-sharing asset, resulting in a positive net pre-tax earnings impact of $189 thousand. The provision recapture for losses on covered loans was primarily due to increased expected future cash flows as remeasured during the current quarter when compared to the prior quarter's remeasurement.
The $11.8 million change in the FDIC loss-sharing asset in the current quarter negatively affected noninterest income and consists of $9.9 million of amortization expense, approximately $1.2 million of expense related to covered other real estate owned, and the $758 thousand adjustment described above. Columbia recorded $4.2 million in additional FDIC loss-sharing asset amortization expense during the quarter due to the implementation of new accounting guidance related to indemnification asset accounting, which generally accelerates the amortization of the indemnification asset.
Third Quarter 2013 Operating Results
Quarter ended September 30, 2013
Net Interest Income
Net interest income for the third quarter of 2013 was $80.4 million, an increase of $23.2 million from $57.3 million for the same quarter in 2012, primarily due to the interest income and accretion income recorded during the third quarter of 2013 related to the West Coast acquisition, which closed on April 1, 2013.
Compared to the second quarter of 2013, net interest income increased $426 thousand from $80.0 million primarily due to lower interest expense. In the second quarter, Columbia recognized a $1.5 million prepayment charge on FHLB advances, which was partially offset by lower accretion income on the acquired loan portfolios during the current quarter.
Noninterest Income (Loss)
Total noninterest income was $7.6 million for the third quarter of 2013, compared to a $911 thousand loss for the third quarter of 2012. The increase from the prior-year period was primarily due to a $5.7 million increase in service charges and other fees due to the increased customer base from the West Coast acquisition.
The change in the FDIC loss-sharing asset is a significant component of noninterest income (loss). The following table reflects the income statement components of the change in the FDIC loss-sharing asset for the three and nine month periods indicated:
Three Months Ended |
Nine Months Ended |
|||||||||||||||
September 30, |
September 30, |
|||||||||||||||
2013 |
2012 |
2013 |
2012 |
|||||||||||||
(in thousands) |
||||||||||||||||
Adjustments reflected in income |
||||||||||||||||
Amortization, net |
(9,890) |
(9,694) |
(29,470) |
(33,418) |
||||||||||||
Loan impairment (recapture) |
(758) |
(3,193) |
(1,343) |
18,705 |
||||||||||||
Sale of other real estate |
(1,479) |
(1,315) |
(5,076) |
(4,881) |
||||||||||||
Write-downs of other real estate |
220 |
1,141 |
373 |
4,503 |
||||||||||||
Other |
81 |
110 |
70 |
304 |
||||||||||||
Change in FDIC loss-sharing asset |
$ |
(11,826) |
$ |
(12,951) |
$ |
(35,446) |
$ |
(14,787) |
||||||||
Noninterest Expense
Total noninterest expense for the third quarter of 2013 was $64.7 million, an increase of $23.8 million, or 58% from $40.9 million for the same quarter in 2012. The increase from the prior-year period was primarily due to the acquisition-related expenses of $7.6 million for the current quarter as well as additional ongoing noninterest expense resulting from the West Coast acquisition.
Compared to the second quarter of 2013, noninterest expense was relatively flat, with a modest increase of $210 thousand. The increase in noninterest expense was attributable to a decrease in net benefit from the operation of other real estate owned, partially offset by lower current quarter acquisition-related expenses of $7.6 million, compared to $9.2 million in the second quarter of 2013.
Ms. Dressel commented, "We continue to make progress with improving our operating leverage. If you remove the noise created by non-core line items such as acquisition-related expenses and the gains from OREO dispositions, our level of quarterly noninterest expenses has actually declined from the previous quarter. As of the end of the current quarter, we have incurred a little over $19 million in acquisition-related expenses, or approximately two/thirds of our initial estimate. "
Ms. Dressel continued, "We are well down the path toward full integration, with the planned branch consolidations, core operating and other critical system conversions completed."
Conference Call
Columbia's management will discuss the third quarter 2013 results on a conference call scheduled for Thursday, October 24, 2013 at 1:00 p.m. PDT (4:00 pm EDT). Interested parties may listen to this discussion by calling 1-866-378-3802; Conference ID code #85631067.
A conference call replay will be available from approximately 4:00 p.m. PDT on October 24, 2013 through midnight PDT on October 31, 2013. The conference call replay can be accessed by dialing 1-855-859-2056 and entering Conference ID code #85631067.
About Columbia
Headquartered in Tacoma, Washington, Columbia Banking System, Inc. is the holding Company of Columbia State Bank, a Washington state-chartered full-service commercial bank. For the seventh consecutive year, the bank was named in 2013 as one of Puget Sound Business Journal's "Washington's Best Workplaces."
With the recent acquisition of West Coast Bancorp, Columbia Banking System has 145 banking offices, including 80 branches in Washington State and 65 branches in Oregon. More information about Columbia can be found on its website at www.columbiabank.com.
Note Regarding Forward-Looking Statements
This news release includes forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These forward looking statements describe Columbia's management's expectations regarding future events and developments such as future operating results, growth in loans and deposits, continued success of Columbia's style of banking and the strength of the local economy. The words "will," "believe," "expect," "intend," "should," and "anticipate" and words of similar construction are intended in part to help identify forward looking statements. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely. In addition to discussions about risks and uncertainties set forth from time to time in Columbia's filings with the Securities and Exchange Commission, available at the SEC's website at www.sec.gov and the Company's website at www.columbiabank.com, including the "Risk Factors," "Business" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of our annual reports on Form 10-K and quarterly reports on Form 10-Q, factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following: (1) local, national and international economic conditions may be less favorable than expected or have a more direct and pronounced effect on Columbia than expected and adversely affect Columbia's ability to continue its internal growth at historical rates and maintain the quality of its earning assets; (2) changes in interest rates may reduce interest margins more than expected and negatively affect funding sources; (3) projected business increases following strategic expansion or opening or acquiring new branches may be lower than expected; (4) costs or difficulties related to the integration of acquisitions may be greater than expected; (5) competitive pressure among financial institutions may increase significantly; and (6) legislation or regulatory requirements or changes may adversely affect the businesses in which Columbia is engaged. We believe the expectations reflected in our forward-looking statements are reasonable, based on information available to us on the date hereof. However, given the described uncertainties and risks, we cannot guarantee our future performance or results of operations and you should not place undue reliance on these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The factors noted above and the risks and uncertainties described in our SEC filings should be considered when reading any forward-looking statements in this release.
Contacts: |
Melanie J. Dressel, President and |
Chief Executive Officer |
|
(253) 305-1911 |
|
Clint E. Stein, Executive Vice President |
|
and Chief Financial Officer |
|
(253) 593-8304 |
FINANCIAL STATISTICS |
||||||||||||||||
Columbia Banking System, Inc. |
Three Months Ended |
Nine Months Ended |
||||||||||||||
Unaudited |
September 30, |
September 30, |
||||||||||||||
2013 |
2012 |
2013 |
2012 |
|||||||||||||
Earnings |
(dollars in thousands except per share amounts) |
|||||||||||||||
Net interest income |
$ |
80,415 |
$ |
57,265 |
$ |
213,886 |
$ |
184,029 |
||||||||
Provision for loan and lease losses |
$ |
4,260 |
$ |
2,875 |
$ |
5,260 |
$ |
11,125 |
||||||||
Provision (recapture) for losses on covered loans, net (1) |
$ |
(947) |
$ |
(3,992) |
$ |
(1,679) |
$ |
23,381 |
||||||||
Noninterest income (loss) |
$ |
7,622 |
$ |
(911) |
$ |
16,088 |
$ |
20,491 |
||||||||
Noninterest expense |
$ |
64,714 |
$ |
40,936 |
$ |
167,267 |
$ |
125,113 |
||||||||
Acquisition-related expense (included in noninterest expense) |
$ |
7,621 |
$ |
1,131 |
$ |
17,578 |
$ |
1,131 |
||||||||
Net income |
$ |
13,276 |
$ |
11,880 |
$ |
40,043 |
$ |
32,681 |
||||||||
Per Common Share |
||||||||||||||||
Earnings (basic) |
$ |
0.26 |
$ |
0.30 |
$ |
0.84 |
$ |
0.82 |
||||||||
Earnings (diluted) |
$ |
0.25 |
$ |
0.30 |
$ |
0.83 |
$ |
0.82 |
||||||||
Book value |
$ |
20.35 |
$ |
19.20 |
$ |
20.35 |
$ |
19.20 |
||||||||
Averages |
||||||||||||||||
Total assets |
$ |
7,048,864 |
$ |
4,828,102 |
$ |
6,345,006 |
$ |
4,797,543 |
||||||||
Interest-earning assets |
$ |
6,101,960 |
$ |
4,263,414 |
$ |
5,580,871 |
$ |
4,199,125 |
||||||||
Loans, including covered loans |
$ |
4,504,040 |
$ |
2,919,520 |
$ |
4,018,240 |
$ |
2,891,688 |
||||||||
Securities |
$ |
1,512,292 |
$ |
983,815 |
$ |
1,411,397 |
$ |
1,012,716 |
||||||||
Deposits |
$ |
5,837,018 |
$ |
3,859,284 |
$ |
5,224,081 |
$ |
3,829,640 |
||||||||
Core deposits |
$ |
5,558,246 |
$ |
3,599,246 |
$ |
4,948,513 |
$ |
3,555,936 |
||||||||
Interest-bearing deposits |
$ |
3,805,260 |
$ |
2,665,094 |
$ |
3,514,549 |
$ |
2,673,335 |
||||||||
Interest-bearing liabilities |
$ |
3,898,997 |
$ |
2,803,201 |
$ |
3,614,742 |
$ |
2,813,269 |
||||||||
Noninterest-bearing deposits |
$ |
2,031,758 |
$ |
1,194,190 |
$ |
1,709,532 |
$ |
1,156,304 |
||||||||
Shareholders' equity |
$ |
1,036,134 |
$ |
761,281 |
$ |
952,949 |
$ |
760,217 |
||||||||
Financial Ratios |
||||||||||||||||
Return on average assets |
0.75% |
0.98% |
0.84% |
0.91% |
||||||||||||
Return on average common equity |
5.13% |
6.21% |
5.61% |
5.74% |
||||||||||||
Average equity to average assets |
14.70% |
15.77% |
15.02% |
15.85% |
||||||||||||
Net interest margin |
5.37% |
5.52% |
5.21 |
5.99% |
||||||||||||
Efficiency ratio (tax equivalent)(2) |
66.59% |
68.46% |
66.65% |
69.47% |
||||||||||||
September 30, |
December 31, |
|||||||||||||||
Period end |
2013 |
2012 |
2012 |
|||||||||||||
Total assets |
$ |
7,150,297 |
$ |
4,903,049 |
$ |
4,906,335 |
||||||||||
Covered assets, net |
$ |
314,898 |
$ |
445,797 |
$ |
407,648 |
||||||||||
Loans, excluding covered loans, net |
$ |
4,193,732 |
$ |
2,476,844 |
$ |
2,525,710 |
||||||||||
Allowance for noncovered loan and lease losses |
$ |
55,844 |
$ |
51,527 |
$ |
52,244 |
||||||||||
Securities |
$ |
1,602,484 |
$ |
965,641 |
$ |
1,023,484 |
||||||||||
Deposits |
$ |
5,948,967 |
$ |
3,938,855 |
$ |
4,042,085 |
||||||||||
Core deposits |
$ |
5,662,958 |
$ |
3,685,844 |
$ |
3,802,366 |
||||||||||
Shareholders' equity |
$ |
1,045,797 |
$ |
761,977 |
$ |
764,008 |
||||||||||
Nonperforming, noncovered assets |
||||||||||||||||
Nonaccrual loans |
$ |
35,961 |
$ |
41,589 |
$ |
37,395 |
||||||||||
Other real estate owned ("OREO") and other personal property owned ("OPPO") |
23,641 |
11,749 |
11,108 |
|||||||||||||
Total nonperforming, noncovered assets |
$ |
59,602 |
$ |
53,338 |
$ |
48,503 |
||||||||||
Nonperforming assets to period-end noncovered loans + OREO and OPPO |
1.41% |
2.14% |
1.91% |
|||||||||||||
Nonperforming loans to period-end noncovered loans |
0.86% |
1.68% |
1.48% |
|||||||||||||
Nonperforming assets to period-end noncovered assets |
0.87% |
1.20% |
1.08% |
|||||||||||||
Allowance for loan and lease losses to period-end noncovered loans |
1.33% |
2.08% |
2.07% |
|||||||||||||
Allowance for loan and lease losses to nonperforming noncovered loans |
155.29% |
123.90% |
139.71% |
|||||||||||||
Net noncovered loan charge-offs |
$ |
1,660 |
(3) |
$ |
12,639 |
(4) |
$ |
14,272 |
(5) |
|||||||
(1) Provision(recapture) for losses on covered loans was partially offset by $758 thousand and $3.2 million in expense recorded to Change in FDIC loss-sharing asset in the Consolidated Statements of Income for the three months ended September 30, 2013 and 2012, respectively. For the nine months ended September 30, 2013 and 2012, provision(recapture) for losses on covered loans was partially offset by $1.3 million in expense and $18.7 million in income, respectively. |
||||||||||||||||
(2) Noninterest expense, excluding net cost of operation of other real estate and other personal property, FDIC clawback liability and acquisition-related expenses, divided by the sum of (1)net interest income on a tax equivalent basis, excluding incremental accretion income on the acquired loan portfolio, premium amortization on acquired securities, interest reversals on nonaccrual loans, and prepayment expenses on FHLB advances, and (2)noninterest income on a tax equivalent basis, excluding gain/loss on investment securities and the change in FDIC loss-sharing asset. |
||||||||||||||||
(3) For the nine months ended September 30, 2013. |
||||||||||||||||
(4) For the nine months ended September 30, 2012. |
||||||||||||||||
(5) For the twelve months ended December 31, 2012. |
FINANCIAL STATISTICS |
||||||||||||||
Columbia Banking System, Inc. |
||||||||||||||
Unaudited |
September 30, |
December 31, |
||||||||||||
2013 |
2012 |
|||||||||||||
Loan Portfolio Composition |
(dollars in thousands) |
|||||||||||||
Noncovered loans: |
||||||||||||||
Commercial business |
$ |
1,569,343 |
37.4% |
$ |
1,155,158 |
45.7% |
||||||||
Real estate: |
||||||||||||||
One-to-four family residential |
106,686 |
2.5% |
43,922 |
1.7% |
||||||||||
Commercial and multifamily residential |
2,048,910 |
48.8% |
1,061,201 |
42.0% |
||||||||||
Total real estate |
2,155,596 |
51.3% |
1,105,123 |
43.7% |
||||||||||
Real estate construction: |
||||||||||||||
One-to-four family residential |
53,158 |
1.3% |
50,602 |
2.0% |
||||||||||
Commercial and multifamily residential |
128,120 |
3.1% |
65,101 |
2.7% |
||||||||||
Total real estate construction |
181,278 |
4.4% |
115,703 |
4.7% |
||||||||||
Consumer |
362,808 |
8.7% |
157,493 |
6.2% |
||||||||||
Subtotal loans |
4,269,025 |
101.8% |
2,533,477 |
100.3% |
||||||||||
Less: Net unearned income |
(75,293) |
(1.8)% |
(7,767) |
(0.3)% |
||||||||||
Total noncovered loans, net of unearned income |
4,193,732 |
100.0% |
2,525,710 |
100.0% |
||||||||||
Less: Allowance for loan and lease losses |
(55,844) |
(52,244) |
||||||||||||
Noncovered loans, net |
4,137,888 |
2,473,466 |
||||||||||||
Covered loans, net of allowance for loan losses of ($22,737) and ($30,056), respectively |
302,160 |
391,337 |
||||||||||||
Total loans, net |
$ |
4,440,048 |
$ |
2,864,803 |
||||||||||
Loans held for sale |
$ |
840 |
$ |
2,563 |
||||||||||
September 30, |
December 31, |
|||||||||||||
2013 |
2012 |
|||||||||||||
Deposit Composition |
(dollars in thousands) |
|||||||||||||
Core deposits: |
||||||||||||||
Demand and other non-interest bearing |
$ |
2,110,887 |
35.5% |
$ |
1,321,171 |
32.7% |
||||||||
Interest bearing demand |
1,156,045 |
19.4% |
870,821 |
21.5% |
||||||||||
Money market |
1,604,256 |
27.0% |
1,043,459 |
25.8% |
||||||||||
Savings |
488,985 |
8.2% |
314,371 |
7.8% |
||||||||||
Certificates of deposit less than $100,000 |
302,785 |
5.1% |
252,544 |
6.2% |
||||||||||
Total core deposits |
5,662,958 |
95.2% |
3,802,366 |
94.0% |
||||||||||
Certificates of deposit greater than $100,000 |
209,059 |
3.5% |
212,924 |
5.3% |
||||||||||
Certificates of deposit insured by CDARS® |
23,566 |
0.4% |
26,720 |
0.7% |
||||||||||
Brokered money market accounts |
52,937 |
0.9% |
— |
—% |
||||||||||
Subtotal |
5,948,520 |
100.0% |
4,042,010 |
100.0% |
||||||||||
Premium resulting from acquisition date fair value adjustment |
447 |
75 |
||||||||||||
Total deposits |
$ |
5,948,967 |
$ |
4,042,085 |
FINANCIAL STATISTICS |
||||||||||||||||
Columbia Banking System, Inc. |
||||||||||||||||
Unaudited |
||||||||||||||||
September 30, |
December 31, |
|||||||||||||||
2013 |
2012 |
|||||||||||||||
OREO |
OPPO |
OREO |
OPPO |
|||||||||||||
OREO and OPPO Composition |
(in thousands) |
|||||||||||||||
Covered |
$ |
12,730 |
$ |
8 |
$ |
16,311 |
$ |
45 |
||||||||
Noncovered |
23,543 |
98 |
10,676 |
432 |
||||||||||||
Total |
$ |
36,273 |
$ |
106 |
$ |
26,987 |
$ |
477 |
||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||
September 30, |
September 30, |
|||||||||||||||
2013 |
2012 |
2013 |
2012 |
|||||||||||||
OREO and OPPO Earnings Impact |
(in thousands) |
|||||||||||||||
Net cost (benefit) of operation of noncovered OREO |
$ |
851 |
$ |
(63) |
$ |
1,190 |
$ |
4,102 |
||||||||
Net benefit of operation of covered OREO |
(1,628) |
(1,006) |
(7,296) |
(4,638) |
||||||||||||
Net benefit of operation of OREO |
$ |
(777) |
$ |
(1,069) |
$ |
(6,106) |
$ |
(536) |
||||||||
Noncovered OPPO cost (benefit), net |
$ |
(29) |
$ |
(100) |
$ |
(125) |
$ |
2,242 |
||||||||
Covered OPPO benefit, net |
— |
(8) |
— |
(16) |
||||||||||||
OPPO cost (benefit), net (1) |
$ |
(29) |
$ |
(108) |
$ |
(125) |
$ |
2,226 |
||||||||
(1) OPPO cost (benefit), net is included in Other noninterest expense in the Consolidated Statements of Income. |
The following table shows a summary of FDIC acquired loan accounting for the previous five quarters:
Three Months Ended |
||||||||||||||||||||
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
||||||||||||||||
2013 |
2013 |
2013 |
2012 |
2012 |
||||||||||||||||
(in thousands) |
||||||||||||||||||||
Pre-tax earnings impact - income (expense) |
$ |
(3,362) |
$ |
(3,149) |
$ |
(2,249) |
$ |
(166) |
$ |
2,580 |
||||||||||
Balance sheet components: |
||||||||||||||||||||
Covered loans, net of allowance |
$ |
302,160 |
$ |
338,661 |
$ |
363,213 |
$ |
391,337 |
$ |
429,286 |
||||||||||
Covered OREO |
12,730 |
12,854 |
13,811 |
16,311 |
16,511 |
|||||||||||||||
FDIC loss-sharing asset |
53,559 |
67,374 |
83,115 |
96,354 |
111,677 |
|||||||||||||||
QUARTERLY FINANCIAL STATISTICS |
||||||||||||||||||||
Columbia Banking System, Inc. |
Three Months Ended |
|||||||||||||||||||
Unaudited |
September 30, |
June 30, |
March 31, |
December 31, |
September 30, |
|||||||||||||||
2013 |
2013 |
2013 |
2012 |
2012 |
||||||||||||||||
(dollars in thousands except per share) |
||||||||||||||||||||
Earnings |
||||||||||||||||||||
Net interest income |
$ |
80,415 |
$ |
79,989 |
$ |
53,482 |
$ |
54,898 |
$ |
57,265 |
||||||||||
Provision (recapture) for loan and lease losses |
$ |
4,260 |
$ |
2,000 |
$ |
(1,000) |
$ |
2,350 |
$ |
2,875 |
||||||||||
Provision (recapture) for losses on covered loans |
$ |
(947) |
$ |
(1,712) |
$ |
980 |
$ |
2,511 |
$ |
(3,992) |
||||||||||
Noninterest income (loss) |
$ |
7,622 |
$ |
6,808 |
$ |
1,658 |
$ |
6,567 |
$ |
(911) |
||||||||||
Noninterest expense |
$ |
64,714 |
$ |
64,504 |
$ |
38,049 |
$ |
37,800 |
$ |
40,936 |
||||||||||
Acquisition-related expense (included in noninterest expense) |
$ |
7,621 |
$ |
9,234 |
$ |
723 |
$ |
649 |
$ |
1,131 |
||||||||||
Net income |
$ |
13,276 |
$ |
14,591 |
$ |
12,176 |
$ |
13,462 |
$ |
11,880 |
||||||||||
Per Common Share |
||||||||||||||||||||
Earnings (basic) |
$ |
0.26 |
$ |
0.28 |
$ |
0.31 |
$ |
0.34 |
$ |
0.30 |
||||||||||
Earnings (diluted) |
$ |
0.25 |
$ |
0.28 |
$ |
0.31 |
$ |
0.34 |
$ |
0.30 |
||||||||||
Book value |
$ |
20.35 |
$ |
20.07 |
$ |
19.32 |
$ |
19.25 |
$ |
19.20 |
||||||||||
Averages |
||||||||||||||||||||
Total assets |
$ |
7,048,864 |
$ |
7,110,957 |
$ |
4,851,044 |
$ |
4,925,736 |
$ |
4,828,102 |
||||||||||
Interest-earning assets |
$ |
6,101,960 |
$ |
6,284,281 |
$ |
4,336,978 |
$ |
4,388,487 |
$ |
4,263,414 |
||||||||||
Loans, including covered loans |
$ |
4,504,040 |
$ |
4,571,181 |
$ |
2,962,559 |
$ |
2,926,825 |
$ |
2,919,520 |
||||||||||
Securities |
$ |
1,512,292 |
$ |
1,665,180 |
$ |
1,051,657 |
$ |
1,007,059 |
$ |
983,815 |
||||||||||
Deposits |
$ |
5,837,018 |
$ |
5,824,802 |
$ |
3,990,127 |
$ |
4,012,764 |
$ |
3,859,284 |
||||||||||
Core deposits |
$ |
5,558,246 |
$ |
5,526,238 |
$ |
3,741,086 |
$ |
3,769,409 |
$ |
3,599,246 |
||||||||||
Interest-bearing deposits |
$ |
3,805,260 |
$ |
3,986,581 |
$ |
2,740,100 |
$ |
2,714,292 |
$ |
2,665,094 |
||||||||||
Interest-bearing liabilities |
$ |
3,898,997 |
$ |
4,161,095 |
$ |
2,771,743 |
$ |
2,796,155 |
$ |
2,803,201 |
||||||||||
Noninterest-bearing deposits |
$ |
2,031,758 |
$ |
1,838,221 |
$ |
1,250,027 |
$ |
1,298,472 |
$ |
1,194,190 |
||||||||||
Shareholders' equity |
$ |
1,036,134 |
$ |
1,051,380 |
$ |
768,390 |
$ |
767,781 |
$ |
761,281 |
||||||||||
Financial Ratios |
||||||||||||||||||||
Return on average assets |
0.75% |
0.82% |
1.02% |
1.09% |
0.98% |
|||||||||||||||
Return on average common equity |
5.13% |
5.56% |
6.43% |
6.98% |
6.21% |
|||||||||||||||
Average equity to average assets |
14.70% |
14.79% |
15.84% |
15.59% |
15.77% |
|||||||||||||||
Net interest margin |
5.37% |
5.19% |
5.06% |
5.15% |
5.52% |
|||||||||||||||
Efficiency ratio (tax equivalent) |
66.59% |
65.54% |
68.68% |
68.26% |
68.46% |
|||||||||||||||
Period end |
||||||||||||||||||||
Total assets |
$ |
7,150,297 |
$ |
7,070,465 |
$ |
4,905,011 |
$ |
4,906,335 |
$ |
4,903,049 |
||||||||||
Covered assets, net |
$ |
314,898 |
$ |
351,545 |
$ |
377,024 |
$ |
407,648 |
$ |
445,797 |
||||||||||
Loans, excluding covered loans, net |
$ |
4,193,732 |
$ |
4,181,018 |
$ |
2,621,212 |
$ |
2,525,710 |
$ |
2,476,844 |
||||||||||
Allowance for noncovered loan and lease losses |
$ |
55,844 |
$ |
51,698 |
$ |
51,119 |
$ |
52,244 |
$ |
51,527 |
||||||||||
Securities |
$ |
1,602,484 |
$ |
1,541,039 |
$ |
1,033,783 |
$ |
1,023,484 |
$ |
965,641 |
||||||||||
Deposits |
$ |
5,948,967 |
$ |
5,747,861 |
$ |
4,046,539 |
$ |
4,042,085 |
$ |
3,938,855 |
||||||||||
Core deposits |
$ |
5,662,958 |
$ |
5,467,899 |
$ |
3,796,574 |
$ |
3,802,366 |
$ |
3,685,844 |
||||||||||
Shareholders' equity |
$ |
1,045,797 |
$ |
1,030,674 |
$ |
769,660 |
$ |
764,008 |
$ |
761,977 |
||||||||||
Nonperforming, noncovered assets |
||||||||||||||||||||
Nonaccrual loans |
$ |
35,961 |
$ |
43,610 |
$ |
32,886 |
$ |
37,395 |
$ |
41,589 |
||||||||||
OREO and OPPO |
23,641 |
24,423 |
12,000 |
11,108 |
11,749 |
|||||||||||||||
Total nonperforming, noncovered assets |
$ |
59,602 |
$ |
68,033 |
$ |
44,886 |
$ |
48,503 |
$ |
53,338 |
||||||||||
Nonperforming assets to period-end noncovered loans + OREO and OPPO |
1.41% |
1.62% |
1.70% |
1.91% |
2.14% |
|||||||||||||||
Nonperforming loans to period-end noncovered loans |
0.86% |
1.04% |
1.25% |
1.48% |
1.68% |
|||||||||||||||
Nonperforming assets to period-end noncovered assets |
0.87% |
1.01% |
0.99% |
1.08% |
1.20% |
|||||||||||||||
Allowance for loan and lease losses to period-end noncovered loans |
1.33% |
1.24% |
1.95% |
2.07% |
2.08% |
|||||||||||||||
Allowance for loan and lease losses to nonperforming noncovered loans |
155.29% |
118.55% |
155.44% |
139.71% |
123.90% |
|||||||||||||||
Net noncovered loan charge-offs |
$ |
114 |
$ |
1,421 |
$ |
125 |
$ |
1,633 |
$ |
3,544 |
||||||||||
CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||||||
Columbia Banking System, Inc. |
Three Months Ended |
Nine Months Ended |
||||||||||||||
Unaudited |
September 30, |
September 30, |
||||||||||||||
2013 |
2012 |
2013 |
2012 |
|||||||||||||
(in thousands except per share) |
||||||||||||||||
Interest Income |
||||||||||||||||
Loans |
$ |
74,125 |
$ |
52,600 |
$ |
196,990 |
$ |
168,875 |
||||||||
Taxable securities |
4,935 |
4,218 |
14,059 |
14,414 |
||||||||||||
Tax-exempt securities |
2,483 |
2,422 |
7,289 |
7,442 |
||||||||||||
Federal funds sold and deposits in banks |
56 |
229 |
290 |
564 |
||||||||||||
Total interest income |
81,599 |
59,469 |
218,628 |
191,295 |
||||||||||||
Interest Expense |
||||||||||||||||
Deposits |
929 |
1,339 |
3,072 |
4,679 |
||||||||||||
Federal Home Loan Bank advances |
135 |
745 |
(493) |
2,229 |
||||||||||||
Prepayment charge on Federal Home Loan Bank advances |
— |
— |
1,548 |
— |
||||||||||||
Other borrowings |
120 |
120 |
615 |
358 |
||||||||||||
Total interest expense |
1,184 |
2,204 |
4,742 |
7,266 |
||||||||||||
Net Interest Income |
80,415 |
57,265 |
213,886 |
184,029 |
||||||||||||
Provision for loan and lease losses |
4,260 |
2,875 |
5,260 |
11,125 |
||||||||||||
Provision (recapture) for losses on covered loans, net |
(947) |
(3,992) |
(1,679) |
23,381 |
||||||||||||
Net interest income after provision (recapture) for loan and lease losses |
77,102 |
58,382 |
210,305 |
149,523 |
||||||||||||
Noninterest Income (Loss) |
||||||||||||||||
Service charges and other fees |
13,357 |
7,609 |
34,511 |
22,222 |
||||||||||||
Merchant services fees |
2,070 |
2,054 |
5,934 |
6,167 |
||||||||||||
Investment securities gains, net |
— |
— |
462 |
62 |
||||||||||||
Bank owned life insurance |
904 |
747 |
2,610 |
2,177 |
||||||||||||
Change in FDIC loss-sharing asset |
(11,826) |
(12,951) |
(35,446) |
(14,787) |
||||||||||||
Other |
3,117 |
1,630 |
8,017 |
4,650 |
||||||||||||
Total noninterest income (loss) |
7,622 |
(911) |
16,088 |
20,491 |
||||||||||||
Noninterest Expense |
||||||||||||||||
Compensation and employee benefits |
33,287 |
21,523 |
90,597 |
64,484 |
||||||||||||
Occupancy |
9,264 |
4,886 |
21,560 |
15,310 |
||||||||||||
Merchant processing |
951 |
921 |
2,660 |
2,724 |
||||||||||||
Advertising and promotion |
1,165 |
1,341 |
3,195 |
3,342 |
||||||||||||
Data processing and communications |
4,285 |
2,499 |
10,503 |
7,263 |
||||||||||||
Legal and professional fees |
2,421 |
2,783 |
9,975 |
6,221 |
||||||||||||
Taxes, licenses and fees |
1,446 |
1,124 |
4,037 |
3,594 |
||||||||||||
Regulatory premiums |
1,372 |
775 |
3,406 |
2,560 |
||||||||||||
Net benefit of operation of other real estate |
(777) |
(1,069) |
(6,106) |
(536) |
||||||||||||
Amortization of intangibles |
1,666 |
1,093 |
4,388 |
3,362 |
||||||||||||
FDIC clawback liability expense (recovery) |
(188) |
334 |
242 |
100 |
||||||||||||
Other |
9,822 |
4,726 |
22,810 |
16,689 |
||||||||||||
Total noninterest expense |
64,714 |
40,936 |
167,267 |
125,113 |
||||||||||||
Income before income taxes |
20,010 |
16,535 |
59,126 |
44,901 |
||||||||||||
Provision for income taxes |
6,734 |
4,655 |
19,083 |
12,220 |
||||||||||||
Net Income |
$ |
13,276 |
$ |
11,880 |
$ |
40,043 |
$ |
32,681 |
||||||||
Earnings per common share |
||||||||||||||||
Basic |
$ |
0.26 |
$ |
0.30 |
$ |
0.84 |
$ |
0.82 |
||||||||
Diluted |
$ |
0.25 |
$ |
0.30 |
$ |
0.83 |
$ |
0.82 |
||||||||
Dividends paid per common share |
$ |
0.10 |
$ |
0.30 |
$ |
0.30 |
$ |
0.89 |
||||||||
Weighted average number of common shares outstanding |
50,834 |
39,289 |
47,032 |
39,248 |
||||||||||||
Weighted average number of diluted common shares outstanding |
52,297 |
39,291 |
47,947 |
39,251 |
||||||||||||
CONSOLIDATED BALANCE SHEETS |
|||||||||||||
Columbia Banking System, Inc. |
|||||||||||||
Unaudited |
September 30, |
December 31, |
|||||||||||
2013 |
2012 |
||||||||||||
(in thousands) |
|||||||||||||
ASSETS |
|||||||||||||
Cash and due from banks |
$ |
200,282 |
$ |
124,573 |
|||||||||
Interest-earning deposits with banks |
54,470 |
389,353 |
|||||||||||
Total cash and cash equivalents |
254,752 |
513,926 |
|||||||||||
Securities available for sale at fair value (amortized cost of $1,572,523 and $969,359, respectively) |
1,569,651 |
1,001,665 |
|||||||||||
Federal Home Loan Bank stock at cost |
32,833 |
21,819 |
|||||||||||
Loans held for sale |
840 |
2,563 |
|||||||||||
Loans, excluding covered loans, net of unearned income of ($75,293) and ($7,767), respectively |
4,193,732 |
2,525,710 |
|||||||||||
Less: allowance for loan and lease losses |
55,844 |
52,244 |
|||||||||||
Loans, excluding covered loans, net |
4,137,888 |
2,473,466 |
|||||||||||
Covered loans, net of allowance for loan losses of ($22,737) and ($30,056), respectively |
302,160 |
391,337 |
|||||||||||
Total loans, net |
4,440,048 |
2,864,803 |
|||||||||||
FDIC loss-sharing asset |
53,559 |
96,354 |
|||||||||||
Interest receivable |
24,114 |
14,268 |
|||||||||||
Premises and equipment, net |
158,375 |
118,708 |
|||||||||||
Other real estate owned ($12,730 and $16,311 covered by FDIC loss-share, respectively) |
36,273 |
26,987 |
|||||||||||
Goodwill |
345,231 |
115,554 |
|||||||||||
Other intangible assets, net |
27,509 |
15,721 |
|||||||||||
Other assets |
207,112 |
113,967 |
|||||||||||
Total assets |
$ |
7,150,297 |
$ |
4,906,335 |
|||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||
Deposits: |
|||||||||||||
Noninterest-bearing |
$ |
2,110,887 |
$ |
1,321,171 |
|||||||||
Interest-bearing |
3,838,080 |
2,720,914 |
|||||||||||
Total deposits |
5,948,967 |
4,042,085 |
|||||||||||
Federal Home Loan Bank advances |
34,632 |
6,644 |
|||||||||||
Securities sold under agreements to repurchase |
25,000 |
25,000 |
|||||||||||
Other liabilities |
95,901 |
68,598 |
|||||||||||
Total liabilities |
6,104,500 |
4,142,327 |
|||||||||||
Commitments and contingent liabilities |
|||||||||||||
September 30, |
December 31, |
||||||||||||
2013 |
2012 |
||||||||||||
Preferred stock (no par value) |
|||||||||||||
Authorized shares |
2,000 |
— |
|||||||||||
Issued and outstanding |
9 |
— |
2,217 |
— |
|||||||||
Common stock (no par value) |
|||||||||||||
Authorized shares |
63,033 |
63,033 |
|||||||||||
Issued and outstanding |
51,271 |
39,686 |
858,596 |
581,471 |
|||||||||
Retained earnings |
188,192 |
162,388 |
|||||||||||
Accumulated other comprehensive income (loss) |
(3,208) |
20,149 |
|||||||||||
Total shareholders' equity |
1,045,797 |
764,008 |
|||||||||||
Total liabilities and shareholders' equity |
$ |
7,150,297 |
$ |
4,906,335 |
Non-GAAP Financial Measures
The Company considers operating net interest margin to be an important measurement as it more closely reflects the ongoing operating performance of the Company. Despite the importance of the operating net interest margin to the Company, there is no standardized definition for it and, as a result, the Company's calculations may not be comparable with other organizations. Also, there may be limits in the usefulness of this measure to investors. As a result, the Company encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure.
The following table reconciles the Company's calculation of the operating net interest margin to the net interest margin:
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||
2013 |
2012 |
2013 |
2012 |
|||||||||
Net interest margin |
5.37% |
5.52% |
5.21% |
5.99% |
||||||||
Adjustments to net interest margin to arrive at operating net interest margin: |
||||||||||||
Incremental accretion income on FDIC acquired impaired loans |
(0.46)% |
(1.06)% |
(0.55)% |
(1.41)% |
||||||||
Incremental accretion income on other FDIC acquired loans |
(0.02)% |
(0.06)% |
(0.05)% |
(0.15)% |
||||||||
Incremental accretion income on other acquired loans |
(0.66)% |
—% |
(0.47)% |
—% |
||||||||
Premium amortization on acquired securities |
0.16% |
—% |
0.13% |
—% |
||||||||
Interest reversals on nonaccrual loans |
0.02% |
—% |
0.02% |
—% |
||||||||
Prepayment charges on FHLB advances |
—% |
—% |
0.04% |
—% |
||||||||
Operating net interest margin |
4.41% |
4.40% |
4.33% |
4.43% |
SOURCE Columbia Banking System, Inc.
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