Second Quarter 2023 Results
- Net income of $133 million, or
$0.64 per common share
- Operating net income of $169
million, or $0.81 per common
share1
- Consolidated asset balances of $54
billion at quarter end
- Loan balances of $37 billion and
deposit balances of $41 billion at
quarter end
- Estimated CET1 and total capital ratios of 9.1% and 11.1% at
quarter end
PORTLAND, Ore., July 19,
2023 /PRNewswire/ --
COLUMBIA BANKING
SYSTEM, INC. REPORTS SECOND QUARTER 2023 RESULTS
|
$0.64
|
|
$0.81
|
|
$23.16
|
|
$15.02
|
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
|
"Our teams continued to
drive success during the second quarter, which was characterized by
further integration progress and relationship-focused business
activity," said Clint Stein, President and CEO. "We successfully
completed planned branch consolidations during the quarter, and
though merger-related expenses continued to impact our reported
results, we remain on track to achieve our guided cost-savings
expectations by the end of the third quarter, with additional
opportunities already identified. We are not immune to quantitative
actions affecting industry deposit balances and contributing to the
modest remix of our deposit base. However, our talented associates,
service-driven operating model, and expansion in newer markets
provide us with the opportunities and resources to retain our
favorable placement within the industry."
|
–Clint Stein,
President and CEO of Columbia Banking System, Inc.
|
2Q23 HIGHLIGHTS
(COMPARED TO 1Q23)
|
|
|
|
|
Net Interest
Income and
NIM
|
•
Net interest income increased by $109
million or 29% on a linked-quarter basis due to the full quarter
run rate as a combined organization, which offset the impact of
higher funding costs related to deposit and liability mix shift and
rising interest rates.
|
|
•
Net interest margin was 3.93%, down 15
basis points from the prior quarter. Excluding purchase accounting
accretion and amortization, net interest margin was 3.32%, down 41
basis points from the prior quarter due primarily to higher funding
costs.
|
|
|
|
|
Non-Interest
Income and
Expense
|
•
Non-interest income decreased by $15
million due primarily to a $24 million linked-quarter unfavorable
change related to cumulative non-merger fair value accounting and
hedges.
|
|
•
Non-interest expense decreased by $14
million as lower merger-related expenses and the realization of
cost savings offset the full quarter run rate of the combined
organization.
|
|
|
|
|
Credit
Quality
|
•
Net charge-offs were 0.30% of average
loans and leases (annualized) and centered in the FinPac
portfolio.
|
|
•
Provision expense of $16 million
reflects stabilizing credit trends in the FinPac portfolio, changes
in the economic forecasts used in credit models, and portfolio mix
changes.
|
|
•
Non-performing assets to total assets was
0.15%.
|
|
|
|
|
Capital
|
•
Estimated total risk-based capital ratio
of 11.1% and estimated common equity tier 1 risk-based capital
ratio of 9.1%.
|
|
•
Declared a quarterly cash dividend of
$0.36 per common share on May 15, 2023, which was paid June 15,
2023.
|
|
|
|
|
Notable
items
|
•
Sold $373 million in non-relationship
loans and reclassified an additional $118 million to loans held for
sale.
|
|
•
Entered into an agreement to sell
approximately one-third of the MSR portfolio, which relates to the
non-relationship component of the serviced loan
portfolio.
|
|
•
$30 million in merger-related
expenses.
|
|
2Q23 KEY FINANCIAL
DATA
|
|
|
|
|
|
|
PERFORMANCE
METRICS
|
2Q23
|
|
1Q23
|
|
2Q22
|
Return on average
assets
|
1.00 %
|
|
(0.14) %
|
|
1.04 %
|
Return on average
tangible common equity1
|
16.63 %
|
|
(2.09) %
|
|
12.23 %
|
Operating return on
average assets1
|
1.27 %
|
|
0.74 %
|
|
1.06 %
|
Operating return on
average tangible common equity1
|
21.13 %
|
|
10.64 %
|
|
12.49 %
|
Net interest
margin
|
3.93 %
|
|
4.08 %
|
|
3.41 %
|
Adjusted net interest
margin1
|
3.32 %
|
|
3.73 %
|
|
3.40 %
|
Efficiency
ratio
|
62.60 %
|
|
79.71 %
|
|
59.12 %
|
|
|
|
|
|
|
INCOME
STATEMENT
($ in 000s, excl. per
share data)
|
2Q23
|
|
1Q23
|
|
2Q22
|
Net interest
income
|
$483,975
|
|
$374,698
|
|
$248,170
|
Provision for credit
losses
|
$16,014
|
|
$105,539
|
|
$18,692
|
Non-interest
income
|
$39,678
|
|
$54,735
|
|
$55,235
|
Non-interest
expense
|
$328,559
|
|
$342,818
|
|
$179,574
|
Pre-provision net
revenue 1
|
$195,094
|
|
$86,615
|
|
$123,831
|
Operating pre-provision
net revenue1
|
$243,114
|
|
$195,730
|
|
$125,994
|
Earnings per common
share - diluted 2
|
$0.64
|
|
($0.09)
|
|
$0.61
|
Operating earnings per
common share - diluted 1,2
|
$0.81
|
|
$0.46
|
|
$0.62
|
Dividends paid per
share 2
|
$0.36
|
|
$0.35
|
|
$0.35
|
|
|
|
|
|
|
BALANCE
SHEET
|
2Q23
|
|
1Q23
|
|
2Q22
|
Total assets
|
$53.6B
|
|
$54.0B
|
|
$30.1B
|
Loans and
leases
|
$37.0B
|
|
$37.1B
|
|
$24.4B
|
Total
deposits
|
$40.8B
|
|
$41.6B
|
|
$26.1B
|
Book value per common
share 2
|
$23.16
|
|
$23.44
|
|
$19.47
|
Tangible book value per
share[1][2]
|
$15.02
|
|
$15.12
|
|
$19.42
|
Tangible book value per
share, ex AOCI 1,2
|
$17.03
|
|
$16.56
|
|
$21.80
|
Organizational Update
Columbia Banking System, Inc.
("Columbia", "we", or "our")
completed the planned consolidation of 47 branches during the
latter half of the second quarter. We remain on track to realize
the previously communicated $135
million in annualized cost-savings expectations by the end
of the third quarter.
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 the first and second quarters of 2023 and the
six months ended June 30, 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 Income
Net interest income was
$484 million for the second quarter
of 2023, up $109 million from the
prior quarter. The increase, which includes $74 million of purchase accounting accretion and
amortization compared to $32 million
in the first quarter, reflects the benefit of a full quarter run
rate as a combined organization, partially offset by higher funding
costs related to deposit and liability mix shift and rising
interest rates.
Columbia's net interest margin
was 3.93% for the second quarter of 2023, down 15 basis points from
4.08% for the first quarter of 2023. Excluding purchase accounting
accretion and amortization, the net interest margin was 3.32% for
the second quarter of 2023 compared to 3.73% for the first quarter
of 2023. The cost of interest-bearing deposits increased 32 basis
points on a linked-quarter basis to 1.64% for the second quarter of
2023, which compares to 1.83% for both the month of June and at
June 30, 2023. Please refer to the Q2
2023 Earnings Presentation for additional net interest margin
change details and interest rate sensitivity information as well as
our non-GAAP disclosures in this press release for the impact of
purchase accounting accretion and amortization on individual line
items.
Non-interest Income
Non-interest income was
$40 million for the second quarter of
2023, down $15 million from the prior
quarter. A $24 million unfavorable
change in cumulative fair value adjustments and mortgage servicing
rights ("MSR") hedging activity offset the benefit of the full
quarter run rate as a combined organization. A net fair value loss
of $16 million in the second quarter
compares to a net fair value gain of $8
million in the first quarter, as detailed in our non-GAAP
disclosures. The planned sale of approximately one-third of our MSR
and the associated accounting treatment was the primary driver of
the ineffectiveness of our MSR hedging activity during the second
quarter. The transaction, which we expect to close at the end of
the third quarter or beginning of the fourth quarter, relates to a
non-relationship component of our serviced loan portfolio, and the
transaction is expected to be accretive to capital given the impact
to risk-weighted assets from the reduction in our MSR balance.
Non-interest Expense
Non-interest expense was
$329 million for the second quarter
of 2023, down $14 million from the
prior quarter level. The decrease reflects an $86 million decline in merger-related expenses,
which were $30 million in the second
quarter, and the realization of cost savings, with the impact
partially offset by the full quarter run rate of the combined
organization. Please refer to the Q2 2023 Earnings Presentation for
additional expense details, including an update on realized
merger-related cost-savings through June 30,
2023.
Balance Sheet
Total consolidated assets were
$53.6 billion as of June 30, 2023, compared to $54.0 billion as of March
31, 2023. Cash and cash equivalents was $3.4 billion as of June
30, 2023, a decrease of $228
million relative to March 31,
2023. We continued to maintain a higher on-balance sheet
level of liquidity during the second quarter. Including secured
off-balance sheet lines of credit, total available liquidity was
$18.1 billion as of June 30, 2023, representing 34% of total assets,
44% of total deposits, and 134% of uninsured deposits. Please refer
to the Q2 2023 Earnings Presentation for additional details related
to our liquidity position.
Available for sale securities, which are held on balance sheet
at fair value, were $9.0 billion as
of June 30, 2023, a decrease of $251
million relative to March 31, 2023, as paydowns and a
decline in the fair value of the portfolio were only partially
offset by accretion of the discount on historical Columbia securities. Please refer to the Q2
2023 Earnings Presentation for additional details related to our
securities portfolio.
Gross loans and leases were $37.0
billion as of June 30, 2023, essentially unchanged from
March 31, 2023, as net organic growth during the quarter was
offset by the sale of $373 million in
loans and the corresponding reclassification of $118 million in balances to loans held for
sale. "We elected to sell approximately $500
million in loans that were transactional in nature during
the quarter," commented Chris
Merrywell, President of Umpqua Bank. "Our teams remain
focused on generating balanced growth through existing and new
customer relationships, which contributed to 5% annualized growth
in the second quarter when loan sales and transfers are excluded."
Please refer to the Q2 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 $40.8 billion
as of June 30, 2023, a decrease of $751
million relative to March 31, 2023. "Our deposit
balances continued to be affected by market liquidity tightening,
the impact of inflation on customer spending, and commercial
customers' deployment of cash, which includes tax payments," stated
Mr. Merrywell. "Declining balances do not reflect customer
attrition, and to date we have not experienced any adverse impact
from the planned branch consolidations completed during the quarter
given our teams' dedication to limiting any potential disruption to
customers from the activity." Please refer to the Q2 2023 Earnings
Presentation for additional details related to deposit
characteristics and flows.
Credit Quality
The allowance for credit losses was
$424 million, or 1.15% of loans and
leases, as of June 30, 2023, compared to $436 million, or 1.18% of loans and leases, as of
March 31, 2023. The provision for credit losses was
$16 million for the second quarter of
2023 and is reflective of stabilizing credit trends in the FinPac
portfolio; changes between the February
2023 and May 2023 economic
forecasts; and portfolio mix changes, which include the reserve
release associated with loan sales completed during the quarter.
Please refer to the Q2 2023 Earnings Presentation for additional
details related to the allowance for credit losses and other credit
trends.
Net charge-offs were 0.30% of average loans and leases
(annualized) for the second quarter of 2023, compared to 0.23% for
the first quarter of 2023. Net charge-off activity continued to be
centered in the FinPac portfolio, which experienced an anticipated
increase in charge-offs. Bank charge-off activity remained low at
0.03% of average bank loans. As of June 30,
2023, non-performing assets were $80
million, or 0.15% of total assets, compared to $76 million, or 0.14% as of March 31, 2023.
Capital
As of June 30,
2023, Columbia's book value
per common share decreased to $23.16,
compared to $23.44 at March 31, 2023. The linked-quarter change in book
value primarily reflects a change in accumulated other
comprehensive (loss) income ("AOCI") to $(419) million at June 30,
2023, compared to $(300)
million at the prior quarter-end. The change in AOCI is due
primarily to a reduction in the tax-effected net unrealized loss on
available for sale securities to $403
million at June 30, 2023,
compared to $295 million at
March 31, 2023. Tangible book
value per common share3 decreased to $15.02, compared to $15.12 at March 31,
2023.
Columbia's estimated total
risk-based capital ratio was 11.1% and its estimated common equity
tier 1 risk-based capital ratio was 9.1% as of June 30, 2023, compared to 10.9% and 8.9%,
respectively, at March 31, 2023.
Columbia remains above current
"well-capitalized" regulatory minimums. "Our regulatory capital
ratios expanded as anticipated during the second quarter, due in
part to the realization of loan and investment securities discount
accretion," stated Ron Farnsworth,
Chief Financial Officer of Columbia. "We expect meaningful capital build
over time to enhance future deployment opportunities." The
regulatory capital ratios as of June 30,
2023 are estimates, pending completion and filing of
Columbia's regulatory
reports.
Earnings Presentation and Conference Call
Information
Columbia's Q2
2023 Earnings Presentation provides additional disclosure. A copy
will be available on our investor relations page:
www.columbiabankingsystem.com.
Columbia will host its second
quarter 2023 earnings conference call on July 19, 2023, at 2:30
p.m. PT (5:30 p.m. ET). During
the call, Columbia's management
will provide an update on recent activities and discuss its second
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/BIdd0fac4229134dff9718a687c2bb37fc
Join the audiocast:
https://edge.media-server.com/mmc/p/9uf3dn2p
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 Statements
This press release includes
forward-looking statements within the meaning of the "Safe-Harbor"
provisions of the Private Securities Litigation Reform Act of 1995,
which management believes are a benefit to shareholders. These
statements are necessarily subject to risk and uncertainty and
actual results could differ materially due to various risk factors,
including those set forth from time to time in our filings with the
Securities and Exchange Commission (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 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 UHC merger when expected or at all;
the possibility that the integration following the UHC merger may
be more expensive than anticipated, including as a result of
unexpected factors or events, diversion of management's attention
from ongoing business operations and opportunities; potential
adverse reactions or changes to business or employee relationships,
including those resulting from the completion of the UHC 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.
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
UHC merger of 0.5958.
3 "Non-GAAP" financial measure. See GAAP to Non-GAAP
Reconciliation for the comparable GAAP measurement.
TABLE INDEX
|
|
Page
|
Consolidated Statements
of Operations
|
8
|
Consolidated Balance
Sheets
|
9
|
Financial
Highlights
|
11
|
Loan & Lease
Portfolio Balances and Mix
|
12
|
Deposit Portfolio
Balances and Mix
|
14
|
Credit Quality -
Non-performing Assets
|
15
|
Credit Quality -
Allowance for Credit Losses
|
16
|
Consolidated Average
Balance Sheets, Net Interest Income, and Yields/Rates
|
18
|
Residential Mortgage
Banking Activity
|
20
|
GAAP to Non-GAAP
Reconciliation
|
22
|
Columbia Banking
System, Inc.
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
Quarter
Ended
|
|
%
Change
|
($ in thousands,
except per share data)
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Jun 30,
2022
|
|
Seq.
Quarter
|
|
Year
over
Year
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and
leases
|
$ 552,679
|
|
$ 413,525
|
|
$ 322,350
|
|
$ 278,830
|
|
$ 234,674
|
|
34 %
|
|
136 %
|
Interest and dividends
on investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
79,036
|
|
39,729
|
|
18,108
|
|
18,175
|
|
17,256
|
|
99 %
|
|
358 %
|
Exempt from federal
income tax
|
6,817
|
|
3,397
|
|
1,288
|
|
1,322
|
|
1,369
|
|
101 %
|
|
398 %
|
Dividends
|
2,581
|
|
719
|
|
182
|
|
86
|
|
84
|
|
259 %
|
|
nm
|
Temporary investments
and interest bearing deposits
|
34,616
|
|
18,581
|
|
10,319
|
|
5,115
|
|
2,919
|
|
86 %
|
|
nm
|
Total interest
income
|
675,729
|
|
475,951
|
|
352,247
|
|
303,528
|
|
256,302
|
|
42 %
|
|
164 %
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
100,408
|
|
63,613
|
|
31,174
|
|
9,090
|
|
4,015
|
|
58 %
|
|
nm
|
Securities sold under
agreement to repurchase and federal funds purchased
|
1,071
|
|
406
|
|
323
|
|
545
|
|
66
|
|
164 %
|
|
nm
|
Borrowings
|
81,004
|
|
28,764
|
|
8,023
|
|
798
|
|
50
|
|
182 %
|
|
nm
|
Junior and other
subordinated debentures
|
9,271
|
|
8,470
|
|
7,248
|
|
5,491
|
|
4,001
|
|
9 %
|
|
132 %
|
Total interest
expense
|
191,754
|
|
101,253
|
|
46,768
|
|
15,924
|
|
8,132
|
|
89 %
|
|
nm
|
Net interest
income
|
483,975
|
|
374,698
|
|
305,479
|
|
287,604
|
|
248,170
|
|
29 %
|
|
95 %
|
Provision for credit
losses
|
16,014
|
|
105,539
|
|
32,948
|
|
27,572
|
|
18,692
|
|
(85) %
|
|
(14) %
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposits
|
16,454
|
|
14,312
|
|
12,139
|
|
12,632
|
|
12,011
|
|
15 %
|
|
37 %
|
Card-based
fees
|
13,435
|
|
11,561
|
|
9,017
|
|
9,115
|
|
10,530
|
|
16 %
|
|
28 %
|
Financial services and
trust revenue
|
4,512
|
|
1,297
|
|
25
|
|
27
|
|
27
|
|
248 %
|
|
nm
|
Residential mortgage
banking (loss) revenue, net
|
(2,342)
|
|
7,816
|
|
(1,812)
|
|
17,341
|
|
30,544
|
|
(130) %
|
|
(108) %
|
(Loss) gain on equity
securities, net
|
(697)
|
|
2,416
|
|
284
|
|
(2,647)
|
|
(2,075)
|
|
(129) %
|
|
(66) %
|
Gain on loan and lease
sales, net
|
442
|
|
940
|
|
1,531
|
|
1,525
|
|
1,303
|
|
(53) %
|
|
(66) %
|
BOLI income
|
4,063
|
|
2,790
|
|
2,033
|
|
2,023
|
|
2,110
|
|
46 %
|
|
93 %
|
Other income
(loss)
|
3,811
|
|
13,603
|
|
11,662
|
|
(10,571)
|
|
785
|
|
(72) %
|
|
385 %
|
Total non-interest
income
|
39,678
|
|
54,735
|
|
34,879
|
|
29,445
|
|
55,235
|
|
(28) %
|
|
(28) %
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
163,398
|
|
136,092
|
|
107,982
|
|
109,164
|
|
110,942
|
|
20 %
|
|
47 %
|
Occupancy and
equipment, net
|
50,550
|
|
41,700
|
|
34,021
|
|
35,042
|
|
34,559
|
|
21 %
|
|
46 %
|
Intangible
amortization
|
35,553
|
|
12,660
|
|
1,019
|
|
1,025
|
|
1,026
|
|
181 %
|
|
nm
|
FDIC
assessments
|
11,579
|
|
6,113
|
|
3,487
|
|
3,007
|
|
2,954
|
|
89 %
|
|
292 %
|
Merger related
expenses
|
29,649
|
|
115,898
|
|
11,637
|
|
769
|
|
2,672
|
|
(74) %
|
|
nm
|
Other
expenses
|
37,830
|
|
30,355
|
|
36,836
|
|
28,957
|
|
27,421
|
|
25 %
|
|
38 %
|
Total non-interest
expense
|
328,559
|
|
342,818
|
|
194,982
|
|
177,964
|
|
179,574
|
|
(4) %
|
|
83 %
|
Income (loss) before
provision (benefit) for income taxes
|
179,080
|
|
(18,924)
|
|
112,428
|
|
111,513
|
|
105,139
|
|
nm
|
|
70 %
|
Provision (benefit) for
income taxes
|
45,703
|
|
(4,886)
|
|
29,464
|
|
27,473
|
|
26,548
|
|
nm
|
|
72 %
|
Net income
(loss)
|
$ 133,377
|
|
$ (14,038)
|
|
$
82,964
|
|
$
84,040
|
|
$
78,591
|
|
nm
|
|
70 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic
shares outstanding (1)
|
207,977
|
|
156,383
|
|
129,321
|
|
129,319
|
|
129,306
|
|
33 %
|
|
61 %
|
Weighted average
diluted shares outstanding (1)
|
208,545
|
|
156,383
|
|
129,801
|
|
129,733
|
|
129,673
|
|
33 %
|
|
61 %
|
Earnings (loss) per
common share – basic (1)
|
$
0.64
|
|
$
(0.09)
|
|
$
0.64
|
|
$
0.65
|
|
$
0.61
|
|
nm
|
|
5 %
|
Earnings (loss) per
common share – diluted (1)
|
$
0.64
|
|
$
(0.09)
|
|
$
0.64
|
|
$
0.65
|
|
$
0.61
|
|
nm
|
|
5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nm = not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
UHC merger of 0.5958.
|
Columbia Banking
System, Inc.
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
|
Six Months
Ended
|
|
%
Change
|
($ in thousands,
except per share data)
|
|
Jun 30,
2023
|
|
Jun 30,
2022
|
|
Year over
Year
|
Interest
income:
|
|
|
|
|
|
|
Loans and
leases
|
|
$
966,204
|
|
$
449,078
|
|
115 %
|
Interest and dividends
on investments:
|
|
|
|
|
|
|
Taxable
|
|
118,765
|
|
35,981
|
|
230 %
|
Exempt from federal
income tax
|
|
10,214
|
|
2,741
|
|
273 %
|
Dividends
|
|
3,300
|
|
170
|
|
nm
|
Temporary investments
and interest bearing deposits
|
|
53,197
|
|
4,272
|
|
nm
|
Total interest
income
|
|
1,151,680
|
|
492,242
|
|
134 %
|
Interest
expense:
|
|
|
|
|
|
|
Deposits
|
|
164,021
|
|
7,931
|
|
nm
|
Securities sold under
agreement to repurchase and federal funds purchased
|
|
1,477
|
|
129
|
|
nm
|
Borrowings
|
|
109,768
|
|
99
|
|
nm
|
Junior and other
subordinated debentures
|
|
17,741
|
|
7,150
|
|
148 %
|
Total interest
expense
|
|
293,007
|
|
15,309
|
|
nm
|
Net interest
income
|
|
858,673
|
|
476,933
|
|
80 %
|
Provision for credit
losses
|
|
121,553
|
|
23,496
|
|
417 %
|
Non-interest
income:
|
|
|
|
|
|
|
Service charges on
deposits
|
|
30,766
|
|
23,594
|
|
30 %
|
Card-based
fees
|
|
24,996
|
|
19,238
|
|
30 %
|
Brokerage
revenue
|
|
5,809
|
|
38
|
|
nm
|
Residential mortgage
banking revenue, net
|
|
5,474
|
|
91,330
|
|
(94) %
|
Gain on sale of debt
securities, net
|
|
—
|
|
2
|
|
(100) %
|
Gain (loss) on equity
securities, net
|
|
1,719
|
|
(4,736)
|
|
nm
|
Gain on loan and lease
sales, net
|
|
1,382
|
|
3,640
|
|
(62) %
|
BOLI income
|
|
6,853
|
|
4,197
|
|
63 %
|
Other income
(loss)
|
|
17,414
|
|
(2,099)
|
|
nm
|
Total non-interest
income
|
|
94,413
|
|
135,204
|
|
(30) %
|
Non-interest
expense:
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
299,490
|
|
224,080
|
|
34 %
|
Occupancy and
equipment, net
|
|
92,250
|
|
69,388
|
|
33 %
|
Intangible
amortization
|
|
48,213
|
|
2,051
|
|
nm
|
FDIC
assessments
|
|
17,692
|
|
7,470
|
|
137 %
|
Merger related
expenses
|
|
145,547
|
|
4,950
|
|
nm
|
Other
expenses
|
|
68,185
|
|
54,065
|
|
26 %
|
Total non-interest
expense
|
|
671,377
|
|
362,004
|
|
85 %
|
Income before provision
for income taxes
|
|
160,156
|
|
226,637
|
|
(29) %
|
Provision for income
taxes
|
|
40,817
|
|
56,889
|
|
(28) %
|
Net income
|
|
$
119,339
|
|
$
169,748
|
|
(30) %
|
|
|
|
|
|
|
|
Weighted average basic
shares outstanding (1)
|
|
182,325
|
|
129,233
|
|
41 %
|
Weighted average
diluted shares outstanding (1)
|
|
182,860
|
|
129,685
|
|
41 %
|
Earnings per common
share – basic (1)
|
|
$
0.65
|
|
$
1.31
|
|
(50) %
|
Earnings per common
share – diluted (1)
|
|
$
0.65
|
|
$
1.31
|
|
(50) %
|
|
|
|
|
|
|
|
nm = not
meaningful
|
|
|
|
|
|
|
|
|
(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
UHC merger of 0.5958.
|
Columbia Banking
System, Inc.
Consolidated Balance
Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
%
Change
|
($ in thousands,
except per share data)
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Jun 30,
2022
|
|
Seq.
Quarter
|
|
Year
over
Year
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
$
538,653
|
|
$
555,919
|
|
$
327,313
|
|
$
321,447
|
|
$
315,348
|
|
(3) %
|
|
71 %
|
Interest bearing cash
and temporary investments
|
2,868,563
|
|
3,079,266
|
|
967,330
|
|
1,232,412
|
|
687,233
|
|
(7) %
|
|
317 %
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity and other, at
fair value
|
76,361
|
|
76,532
|
|
72,959
|
|
72,277
|
|
75,347
|
|
0 %
|
|
1 %
|
Available for sale, at
fair value
|
8,998,428
|
|
9,249,600
|
|
3,196,166
|
|
3,136,391
|
|
3,416,707
|
|
(3) %
|
|
163 %
|
Held to maturity, at
amortized cost
|
2,388
|
|
2,432
|
|
2,476
|
|
2,547
|
|
2,637
|
|
(2) %
|
|
(9) %
|
Loans held for
sale
|
183,633
|
|
49,338
|
|
71,647
|
|
148,275
|
|
228,889
|
|
272 %
|
|
(20) %
|
Loans and
leases
|
37,049,299
|
|
37,091,280
|
|
26,155,981
|
|
25,507,951
|
|
24,432,678
|
|
0 %
|
|
52 %
|
Allowance for credit
losses on loans and leases
|
(404,603)
|
|
(417,464)
|
|
(301,135)
|
|
(283,065)
|
|
(261,111)
|
|
(3) %
|
|
55 %
|
Net loans and
leases
|
36,644,696
|
|
36,673,816
|
|
25,854,846
|
|
25,224,886
|
|
24,171,567
|
|
0 %
|
|
52 %
|
Restricted equity
securities
|
258,524
|
|
246,525
|
|
47,144
|
|
40,993
|
|
10,867
|
|
5 %
|
|
nm
|
Premises and
equipment, net
|
368,698
|
|
375,190
|
|
176,016
|
|
165,305
|
|
165,196
|
|
(2) %
|
|
123 %
|
Operating lease
right-of-use assets
|
119,255
|
|
127,296
|
|
78,598
|
|
81,729
|
|
87,249
|
|
(6) %
|
|
37 %
|
Goodwill
|
1,029,234
|
|
1,030,142
|
|
—
|
|
—
|
|
—
|
|
0 %
|
|
nm
|
Other intangible
assets, net
|
666,762
|
|
702,315
|
|
4,745
|
|
5,764
|
|
6,789
|
|
(5) %
|
|
nm
|
Residential mortgage
servicing rights, at fair value
|
172,929
|
|
178,800
|
|
185,017
|
|
196,177
|
|
179,558
|
|
(3) %
|
|
(4) %
|
Bank owned life
insurance
|
643,727
|
|
641,922
|
|
331,759
|
|
329,699
|
|
328,764
|
|
0 %
|
|
96 %
|
Deferred tax asset,
net
|
362,880
|
|
351,229
|
|
132,823
|
|
128,120
|
|
70,134
|
|
3 %
|
|
417 %
|
Other
assets
|
657,365
|
|
653,904
|
|
399,800
|
|
385,938
|
|
389,409
|
|
1 %
|
|
69 %
|
Total assets
|
$
53,592,096
|
|
$
53,994,226
|
|
$
31,848,639
|
|
$
31,471,960
|
|
$
30,135,694
|
|
(1) %
|
|
78 %
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
bearing
|
$
16,019,408
|
|
$
17,215,781
|
|
$
10,288,849
|
|
$
11,246,358
|
|
$
11,129,209
|
|
(7) %
|
|
44 %
|
Interest
bearing
|
24,815,509
|
|
24,370,566
|
|
16,776,763
|
|
15,570,749
|
|
15,003,214
|
|
2 %
|
|
65 %
|
Total
deposits
|
40,834,917
|
|
41,586,347
|
|
27,065,612
|
|
26,817,107
|
|
26,132,423
|
|
(2) %
|
|
56 %
|
Securities sold under
agreements to repurchase
|
294,914
|
|
271,047
|
|
308,769
|
|
383,569
|
|
527,961
|
|
9 %
|
|
(44) %
|
Borrowings
|
6,250,000
|
|
5,950,000
|
|
906,175
|
|
756,214
|
|
6,252
|
|
5 %
|
|
nm
|
Junior subordinated
debentures, at fair value
|
312,872
|
|
297,721
|
|
323,639
|
|
325,744
|
|
321,268
|
|
5 %
|
|
(3) %
|
Junior and other
subordinated debentures, at amortized cost
|
108,009
|
|
108,066
|
|
87,813
|
|
87,870
|
|
87,927
|
|
0 %
|
|
23 %
|
Operating lease
liabilities
|
132,099
|
|
140,648
|
|
91,694
|
|
95,512
|
|
101,352
|
|
(6) %
|
|
30 %
|
Other
liabilities
|
831,097
|
|
755,674
|
|
585,111
|
|
588,430
|
|
440,235
|
|
10 %
|
|
89 %
|
Total
liabilities
|
48,763,908
|
|
49,109,503
|
|
29,368,813
|
|
29,054,446
|
|
27,617,418
|
|
(1) %
|
|
77 %
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
5,792,792
|
|
5,788,553
|
|
3,450,493
|
|
3,448,007
|
|
3,445,531
|
|
0 %
|
|
68 %
|
Accumulated
deficit
|
(545,842)
|
|
(603,696)
|
|
(543,803)
|
|
(580,933)
|
|
(619,108)
|
|
(10) %
|
|
(12) %
|
Accumulated other
comprehensive loss
|
(418,762)
|
|
(300,134)
|
|
(426,864)
|
|
(449,560)
|
|
(308,147)
|
|
40 %
|
|
36 %
|
Total shareholders'
equity
|
4,828,188
|
|
4,884,723
|
|
2,479,826
|
|
2,417,514
|
|
2,518,276
|
|
(1) %
|
|
92 %
|
Total liabilities and
shareholders' equity
|
$
53,592,096
|
|
$
53,994,226
|
|
$
31,848,639
|
|
$
31,471,960
|
|
$
30,135,694
|
|
(1) %
|
|
78 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding at period end (2)
|
208,514
|
|
208,429
|
|
129,321
|
|
129,320
|
|
129,318
|
|
0 %
|
|
61 %
|
Book value per common
share (2)
|
$
23.16
|
|
$
23.44
|
|
$
19.18
|
|
$
18.69
|
|
$
19.47
|
|
(1) %
|
|
19 %
|
Tangible book value per
common share (1),(2)
|
$
15.02
|
|
$
15.12
|
|
$
19.14
|
|
$
18.65
|
|
$
19.42
|
|
(1) %
|
|
(23) %
|
Tangible equity -
common (1),(2)
|
$
3,132,192
|
|
$
3,152,266
|
|
$
2,475,081
|
|
$
2,411,750
|
|
$
2,511,487
|
|
(1) %
|
|
25 %
|
Tangible common equity
to tangible assets (1)
|
6.04 %
|
|
6.03 %
|
|
7.77 %
|
|
7.66 %
|
|
8.34 %
|
|
0.01
|
|
(2.30)
|
nm = not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
See GAAP to Non-GAAP
Reconciliation.
|
(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
UHC merger of 0.5958.
|
Columbia Banking
System, Inc.
|
Financial
Highlights
|
(Unaudited)
|
|
|
Quarter
Ended
|
|
%
Change
|
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Jun 30,
2022
|
|
Seq.
Quarter
|
|
Year
over
Year
|
Per Common Share
Data: (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
(5)
|
|
$
0.36
|
|
$
0.35
|
|
$
0.35
|
|
$
0.35
|
|
$
0.35
|
|
3 %
|
|
3 %
|
Book value
(5)
|
|
$
23.16
|
|
$
23.44
|
|
$
19.18
|
|
$
18.69
|
|
$
19.47
|
|
(1) %
|
|
19 %
|
Tangible book value
(1),(5)
|
|
$
15.02
|
|
$
15.12
|
|
$
19.14
|
|
$
18.65
|
|
$
19.42
|
|
(1) %
|
|
(23) %
|
Tangible book value,
ex accumulated other comprehensive income
(1),(5)
|
|
$
17.03
|
|
$
16.56
|
|
$
22.44
|
|
$
22.13
|
|
$
21.80
|
|
3 %
|
|
(22) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio
|
|
62.60 %
|
|
79.71 %
|
|
57.24 %
|
|
56.07 %
|
|
59.12 %
|
|
(17.11)
|
|
3.48
|
Return on average
assets ("ROAA")
|
|
1.00 %
|
|
(0.14) %
|
|
1.04 %
|
|
1.09 %
|
|
1.04 %
|
|
1.14
|
|
(0.04)
|
Pre-provision net
revenue ("PPNR") ROAA (1)
|
|
1.46 %
|
|
0.89 %
|
|
1.82 %
|
|
1.80 %
|
|
1.64 %
|
|
0.57
|
|
(0.18)
|
Return on average
common equity
|
|
10.84 %
|
|
(1.70) %
|
|
13.50 %
|
|
12.99 %
|
|
12.20 %
|
|
12.54
|
|
(1.36)
|
Return on average
tangible common equity (1)
|
|
16.63 %
|
|
(2.09) %
|
|
13.53 %
|
|
13.02 %
|
|
12.23 %
|
|
18.72
|
|
4.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios -
Operating: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating efficiency
ratio (1)
|
|
54.85 %
|
|
53.46 %
|
|
52.01 %
|
|
51.72 %
|
|
58.27 %
|
|
1.39
|
|
(3.42)
|
Operating return on
average assets (1)
|
|
1.27 %
|
|
0.74 %
|
|
1.24 %
|
|
1.33 %
|
|
1.06 %
|
|
0.53
|
|
0.21
|
Operating PPNR return
on average assets (1)
|
|
1.82 %
|
|
2.01 %
|
|
2.10 %
|
|
2.12 %
|
|
1.66 %
|
|
(0.19)
|
|
0.16
|
Operating return on
average common equity (1)
|
|
13.77 %
|
|
8.66 %
|
|
16.14 %
|
|
15.86 %
|
|
12.46 %
|
|
5.11
|
|
1.31
|
Operating return on
average tangible common equity (1)
|
|
21.13 %
|
|
10.64 %
|
|
16.18 %
|
|
15.90 %
|
|
12.49 %
|
|
10.49
|
|
8.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance
Sheet Yields, Rates, & Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on loans and
leases
|
|
5.95 %
|
|
5.55 %
|
|
4.92 %
|
|
4.41 %
|
|
3.94 %
|
|
0.40
|
|
2.01
|
Yield on earning
assets (2)
|
|
5.48 %
|
|
5.19 %
|
|
4.62 %
|
|
4.10 %
|
|
3.53 %
|
|
0.29
|
|
1.95
|
Cost of interest
bearing deposits
|
|
1.64 %
|
|
1.32 %
|
|
0.77 %
|
|
0.23 %
|
|
0.11 %
|
|
0.32
|
|
1.53
|
Cost of interest
bearing liabilities
|
|
2.45 %
|
|
1.82 %
|
|
1.05 %
|
|
0.39 %
|
|
0.20 %
|
|
0.63
|
|
2.25
|
Cost of total
deposits
|
|
0.99 %
|
|
0.80 %
|
|
0.46 %
|
|
0.14 %
|
|
0.06 %
|
|
0.19
|
|
0.93
|
Cost of total funding
(3)
|
|
1.61 %
|
|
1.16 %
|
|
0.65 %
|
|
0.23 %
|
|
0.12 %
|
|
0.45
|
|
1.49
|
Net interest margin
(2)
|
|
3.93 %
|
|
4.08 %
|
|
4.01 %
|
|
3.88 %
|
|
3.41 %
|
|
(0.15)
|
|
0.52
|
Average interest
bearing cash / Average interest earning assets
|
|
5.47 %
|
|
4.33 %
|
|
3.62 %
|
|
3.04 %
|
|
5.71 %
|
|
1.14
|
|
(0.24)
|
Average loans and
leases / Average interest earning assets
|
|
75.18 %
|
|
80.96 %
|
|
85.32 %
|
|
84.54 %
|
|
80.91 %
|
|
(5.78)
|
|
(5.73)
|
Average loans and
leases / Average total deposits
|
|
90.98 %
|
|
93.01 %
|
|
95.85 %
|
|
93.55 %
|
|
89.23 %
|
|
(2.03)
|
|
1.75
|
Average non-interest
bearing deposits / Average total deposits
|
|
40.05 %
|
|
39.55 %
|
|
40.30 %
|
|
42.29 %
|
|
42.00 %
|
|
0.50
|
|
(1.95)
|
Average total deposits
/ Average total funding (3)
|
|
85.59 %
|
|
91.36 %
|
|
94.52 %
|
|
96.34 %
|
|
96.66 %
|
|
(5.77)
|
|
(11.07)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select Credit &
Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans
and leases to total loans and leases
|
|
0.22 %
|
|
0.20 %
|
|
0.22 %
|
|
0.20 %
|
|
0.18 %
|
|
0.02
|
|
0.04
|
Non-performing assets
to total assets
|
|
0.15 %
|
|
0.14 %
|
|
0.18 %
|
|
0.16 %
|
|
0.15 %
|
|
0.01
|
|
—
|
Allowance for credit
losses to loans and leases
|
|
1.15 %
|
|
1.18 %
|
|
1.21 %
|
|
1.16 %
|
|
1.12 %
|
|
(0.03)
|
|
0.03
|
Total risk-based
capital ratio (4)
|
|
11.1 %
|
|
10.9 %
|
|
13.7 %
|
|
13.2 %
|
|
13.5 %
|
|
0.20
|
|
(2.40)
|
Common equity tier 1
risk-based capital ratio (4)
|
|
9.1 %
|
|
8.9 %
|
|
11.0 %
|
|
10.7 %
|
|
11.0 %
|
|
0.20
|
|
(1.90)
|
|
|
(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
UHC merger of 0.5958.
|
Columbia Banking
System, Inc.
|
Financial
Highlights
|
(Unaudited)
|
|
|
Six Months
Ended
|
|
%
Change
|
|
|
Jun 30,
2023
|
|
Jun 30,
2022
|
|
Year
over
Year
|
Per Common Share
Data: (4)
|
|
|
|
|
|
|
Dividends
(4)
|
|
$
0.71
|
|
$
0.70
|
|
1.43 %
|
|
|
|
|
|
|
|
Performance
Ratios:
|
|
|
|
|
|
|
Efficiency
ratio
|
|
70.30 %
|
|
59.07 %
|
|
11.23
|
Return on average
assets (ROAA)
|
|
0.52 %
|
|
1.12 %
|
|
(0.60)
|
Pre-provision net
revenue (PPNR) ROAA (1)
|
|
1.22 %
|
|
1.66 %
|
|
(0.44)
|
Return on average
common equity
|
|
5.80 %
|
|
12.92 %
|
|
(7.12)
|
Return on average
tangible common equity (1)
|
|
8.09 %
|
|
12.96 %
|
|
(4.87)
|
|
|
|
|
|
|
|
Performance Ratios -
Operating: (1)
|
|
|
|
|
|
|
Operating efficiency
ratio (1)
|
|
54.24 %
|
|
60.09 %
|
|
(5.85)
|
Operating return on
average assets (1)
|
|
1.04 %
|
|
1.04 %
|
|
—
|
Operating PPNR return
on average assets (1)
|
|
1.90 %
|
|
1.55 %
|
|
0.35
|
Operating return on
average common equity (1)
|
|
11.72 %
|
|
12.01 %
|
|
(0.29)
|
Operating return on
average tangible common equity (1)
|
|
16.34 %
|
|
12.05 %
|
|
4.29
|
|
|
|
|
|
|
|
Average Balance
Sheet Yields, Rates, & Ratios:
|
|
|
|
|
|
|
Yield on loans and
leases
|
|
5.77 %
|
|
3.86 %
|
|
1.91
|
Yield on earning
assets (2)
|
|
5.35 %
|
|
3.38 %
|
|
1.97
|
Cost of interest
bearing deposits
|
|
1.50 %
|
|
0.10 %
|
|
1.40
|
Cost of interest
bearing liabilities
|
|
2.19 %
|
|
0.19 %
|
|
2.00
|
Cost of total
deposits
|
|
0.90 %
|
|
0.06 %
|
|
0.84
|
Cost of total funding
(3)
|
|
1.42 %
|
|
0.11 %
|
|
1.31
|
Net interest margin
(2)
|
|
3.99 %
|
|
3.28 %
|
|
0.71
|
Average interest
bearing cash / Average interest earning assets
|
|
4.99 %
|
|
7.31 %
|
|
(2.32)
|
Average loans and
leases / Average interest earning assets
|
|
77.64 %
|
|
78.88 %
|
|
(1.24)
|
Average loans and
leases / Average total deposits
|
|
91.87 %
|
|
87.00 %
|
|
4.87
|
Average non-interest
bearing deposits / Average total deposits
|
|
39.69 %
|
|
41.68 %
|
|
(1.99)
|
Average total deposits
/ Average total funding (3)
|
|
88.03 %
|
|
96.74 %
|
|
(8.71)
|
|
|
(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
UHC merger of 0.5958.
|
Columbia Banking
System, Inc.
|
Loan & Lease
Portfolio Balances and Mix
|
(Unaudited)
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Jun 30,
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
|
$
6,434,673
|
|
$
6,353,550
|
|
$
3,894,840
|
|
$
3,846,426
|
|
$
3,798,242
|
|
1 %
|
|
69 %
|
Owner occupied term,
net
|
5,254,401
|
|
5,156,848
|
|
2,567,761
|
|
2,549,761
|
|
2,497,553
|
|
2 %
|
|
110 %
|
Multifamily,
net
|
5,622,875
|
|
5,590,587
|
|
5,285,791
|
|
5,090,661
|
|
4,768,273
|
|
1 %
|
|
18 %
|
Construction &
development, net
|
1,528,924
|
|
1,467,561
|
|
1,077,346
|
|
1,036,931
|
|
1,017,297
|
|
4 %
|
|
50 %
|
Residential
development, net
|
388,641
|
|
440,667
|
|
200,838
|
|
205,935
|
|
194,909
|
|
(12) %
|
|
99 %
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term, net
|
5,449,787
|
|
5,906,774
|
|
3,029,547
|
|
3,003,424
|
|
2,904,861
|
|
(8) %
|
|
88 %
|
Lines of credit &
other, net
|
2,268,790
|
|
2,184,762
|
|
960,054
|
|
914,507
|
|
920,604
|
|
4 %
|
|
146 %
|
Leases & equipment
finance, net
|
1,740,037
|
|
1,746,267
|
|
1,706,172
|
|
1,669,817
|
|
1,576,144
|
|
0 %
|
|
10 %
|
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage,
net
|
6,272,898
|
|
6,187,964
|
|
5,647,035
|
|
5,470,624
|
|
5,168,457
|
|
1 %
|
|
21 %
|
Home equity loans
& lines, net
|
1,898,958
|
|
1,870,002
|
|
1,631,965
|
|
1,565,094
|
|
1,415,722
|
|
2 %
|
|
34 %
|
Consumer
& other, net
|
189,315
|
|
186,298
|
|
154,632
|
|
154,771
|
|
170,616
|
|
2 %
|
|
11 %
|
Total loans and
leases, net of deferred fees and costs
|
$
37,049,299
|
|
$
37,091,280
|
|
$
26,155,981
|
|
$
25,507,951
|
|
$
24,432,678
|
|
0 %
|
|
52 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases
mix:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner
occupied term, net
|
17 %
|
|
16 %
|
|
15 %
|
|
15 %
|
|
15 %
|
|
|
|
|
Owner
occupied term, net
|
14 %
|
|
14 %
|
|
10 %
|
|
10 %
|
|
10 %
|
|
|
|
|
Multifamily, net
|
15 %
|
|
15 %
|
|
20 %
|
|
20 %
|
|
20 %
|
|
|
|
|
Construction &
development, net
|
4 %
|
|
4 %
|
|
4 %
|
|
4 %
|
|
4 %
|
|
|
|
|
Residential
development, net
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term, net
|
15 %
|
|
16 %
|
|
12 %
|
|
12 %
|
|
12 %
|
|
|
|
|
Lines of credit &
other, net
|
6 %
|
|
6 %
|
|
4 %
|
|
4 %
|
|
4 %
|
|
|
|
|
Leases & equipment
finance, net
|
5 %
|
|
5 %
|
|
6 %
|
|
6 %
|
|
6 %
|
|
|
|
|
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage,
net
|
17 %
|
|
17 %
|
|
21 %
|
|
21 %
|
|
21 %
|
|
|
|
|
Home equity loans
& lines, net
|
5 %
|
|
5 %
|
|
6 %
|
|
6 %
|
|
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)
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Jun 30,
2022
|
|
%
Change
|
($ in
thousands)
|
Amount
|
|
Amount
|
|
Amount
|
|
Amount
|
|
Amount
|
|
Seq.
Quarter
|
|
Year
over Year
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand, non-interest
bearing
|
$
16,019,408
|
|
$
17,215,781
|
|
$
10,288,849
|
|
$
11,246,358
|
|
$
11,129,209
|
|
(7) %
|
|
44 %
|
Demand, interest
bearing
|
6,300,082
|
|
5,900,462
|
|
4,080,469
|
|
3,903,746
|
|
3,723,650
|
|
7 %
|
|
69 %
|
Money
market
|
10,115,908
|
|
10,681,422
|
|
7,721,011
|
|
7,601,506
|
|
7,284,641
|
|
(5) %
|
|
39 %
|
Savings
|
3,171,714
|
|
3,469,112
|
|
2,265,052
|
|
2,455,917
|
|
2,446,876
|
|
(9) %
|
|
30 %
|
Time
|
5,227,805
|
|
4,319,570
|
|
2,710,231
|
|
1,609,580
|
|
1,548,047
|
|
21 %
|
|
238 %
|
Total
|
$
40,834,917
|
|
$
41,586,347
|
|
$
27,065,612
|
|
$
26,817,107
|
|
$
26,132,423
|
|
(2) %
|
|
56 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total core deposits
(1)
|
$
37,639,368
|
|
$
39,155,298
|
|
$
25,616,010
|
|
$
26,292,548
|
|
$
25,619,500
|
|
(4) %
|
|
47 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
mix:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand, non-interest
bearing
|
39 %
|
|
41 %
|
|
38 %
|
|
42 %
|
|
43 %
|
|
|
|
|
Demand, interest
bearing
|
15 %
|
|
14 %
|
|
15 %
|
|
15 %
|
|
14 %
|
|
|
|
|
Money
market
|
25 %
|
|
26 %
|
|
29 %
|
|
28 %
|
|
28 %
|
|
|
|
|
Savings
|
8 %
|
|
9 %
|
|
8 %
|
|
9 %
|
|
9 %
|
|
|
|
|
Time
|
13 %
|
|
10 %
|
|
10 %
|
|
6 %
|
|
6 %
|
|
|
|
|
Total
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Core deposits are
defined as total deposits less time deposits greater than $250,000
and all brokered deposits.
|
|
Columbia Banking
System, Inc.
|
|
Credit Quality –
Non-performing Assets
|
|
(Unaudited)
|
|
|
Quarter
Ended
|
|
%
Change
|
($ in
thousands)
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Jun 30,
2022
|
|
Seq.
Quarter
|
|
Year
over Year
|
Non-performing
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases on
non-accrual status:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
$ 10,994
|
|
$ 15,612
|
|
$
5,011
|
|
$
5,403
|
|
$
5,514
|
|
(30) %
|
|
99 %
|
|
Commercial,
net
|
39,316
|
|
42,301
|
|
25,691
|
|
18,652
|
|
12,645
|
|
(7) %
|
|
211 %
|
|
Residential,
net
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
nm
|
|
nm
|
|
Consumer & other,
net
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
nm
|
|
nm
|
|
Total loans and leases
on non-accrual status
|
50,310
|
|
57,913
|
|
30,702
|
|
24,055
|
|
18,159
|
|
(13) %
|
|
177 %
|
Loans and leases past
due 90+ days and accruing (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
184
|
|
1
|
|
1
|
|
1
|
|
23
|
|
nm
|
|
nm
|
|
Commercial,
net
|
7,720
|
|
151
|
|
7,909
|
|
5,143
|
|
3,311
|
|
nm
|
|
133 %
|
|
Residential, net
(1)
|
21,370
|
|
17,423
|
|
19,894
|
|
21,411
|
|
22,340
|
|
23 %
|
|
(4) %
|
|
Consumer & other,
net
|
399
|
|
140
|
|
134
|
|
152
|
|
196
|
|
185 %
|
|
104 %
|
|
Total loans and leases
past due 90+ days and accruing (1)
|
29,673
|
|
17,715
|
|
27,938
|
|
26,707
|
|
25,870
|
|
68 %
|
|
15 %
|
Total non-performing
loans and leases
|
79,983
|
|
75,628
|
|
58,640
|
|
50,762
|
|
44,029
|
|
6 %
|
|
82 %
|
Other real estate
owned
|
278
|
|
409
|
|
203
|
|
—
|
|
1,868
|
|
(32) %
|
|
(85) %
|
Total non-performing
assets
|
$ 80,261
|
|
$ 76,037
|
|
$ 58,843
|
|
$ 50,762
|
|
$ 45,897
|
|
6 %
|
|
75 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases past
due 31-89 days
|
$ 73,376
|
|
$ 78,641
|
|
$ 64,893
|
|
$ 53,538
|
|
$ 34,659
|
|
(7) %
|
|
112 %
|
Loans and leases past
due 31-89 days to total loans and leases
|
0.20 %
|
|
0.21 %
|
|
0.25 %
|
|
0.21 %
|
|
0.14 %
|
|
(0.01)
|
|
0.06
|
Non-performing loans
and leases to total loans and leases (1)
|
0.22 %
|
|
0.20 %
|
|
0.22 %
|
|
0.20 %
|
|
0.18 %
|
|
0.02
|
|
0.04
|
Non-performing assets
to total assets (1)
|
0.15 %
|
|
0.14 %
|
|
0.18 %
|
|
0.16 %
|
|
0.15 %
|
|
0.01
|
|
—
|
nm = not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes certain
mortgage loans guaranteed by Ginnie Mae, which Columbia has the
unilateral right to repurchase but has not done so, totaling $1.6
million, $5.4 million, $6.6 million, $1.0 million, and $356,000 at
June 30, 2023, March 31, 2023, December 31, 2022, September 30,
2022, and June 30, 2022, respectively.
|
|
Columbia Banking
System, Inc.
|
|
Credit Quality –
Allowance for Credit Losses
|
|
(Unaudited)
|
|
|
Quarter
Ended
|
|
%
Change
|
($ in
thousands)
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Jun 30,
2022
|
|
Seq.
Quarter
|
|
Year
over Year
|
Allowance for credit
losses on loans and leases (ACLLL)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of
period
|
$
417,464
|
|
$
301,135
|
|
$
283,065
|
|
$
261,111
|
|
$
248,564
|
|
39 %
|
|
68 %
|
Initial ACL recorded
for PCD loans acquired during the period
|
—
|
|
26,492
|
|
—
|
|
—
|
|
—
|
|
(100) %
|
|
nm
|
Provision for credit
losses on loans and leases (1)
|
15,216
|
|
106,498
|
|
30,580
|
|
28,542
|
|
18,787
|
|
(86) %
|
|
(19) %
|
Charge-offs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
(174)
|
|
—
|
|
(128)
|
|
—
|
|
(8)
|
|
nm
|
|
nm
|
|
Commercial,
net
|
(32,036)
|
|
(19,248)
|
|
(14,721)
|
|
(9,459)
|
|
(9,035)
|
|
66 %
|
|
255 %
|
|
Residential,
net
|
(4)
|
|
(248)
|
|
(53)
|
|
(4)
|
|
—
|
|
(98) %
|
|
nm
|
|
Consumer & other,
net
|
(1,264)
|
|
(773)
|
|
(906)
|
|
(929)
|
|
(836)
|
|
64 %
|
|
51 %
|
|
Total
charge-offs
|
(33,478)
|
|
(20,269)
|
|
(15,808)
|
|
(10,392)
|
|
(9,879)
|
|
65 %
|
|
239 %
|
Recoveries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
209
|
|
58
|
|
163
|
|
123
|
|
73
|
|
260 %
|
|
186 %
|
|
Commercial,
net
|
4,511
|
|
3,058
|
|
2,708
|
|
2,842
|
|
2,934
|
|
48 %
|
|
54 %
|
|
Residential,
net
|
63
|
|
123
|
|
24
|
|
249
|
|
216
|
|
(49) %
|
|
(71) %
|
|
Consumer & other,
net
|
618
|
|
369
|
|
403
|
|
590
|
|
416
|
|
67 %
|
|
49 %
|
|
Total
recoveries
|
5,401
|
|
3,608
|
|
3,298
|
|
3,804
|
|
3,639
|
|
50 %
|
|
48 %
|
Net (charge-offs)
recoveries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
35
|
|
58
|
|
35
|
|
123
|
|
65
|
|
(40) %
|
|
(46) %
|
|
Commercial,
net
|
(27,525)
|
|
(16,190)
|
|
(12,013)
|
|
(6,617)
|
|
(6,101)
|
|
70 %
|
|
351 %
|
|
Residential,
net
|
59
|
|
(125)
|
|
(29)
|
|
245
|
|
216
|
|
nm
|
|
(73) %
|
|
Consumer & other,
net
|
(646)
|
|
(404)
|
|
(503)
|
|
(339)
|
|
(420)
|
|
60 %
|
|
54 %
|
|
Total net
charge-offs
|
(28,077)
|
|
(16,661)
|
|
(12,510)
|
|
(6,588)
|
|
(6,240)
|
|
69 %
|
|
350 %
|
Balance, end of
period
|
$
404,603
|
|
$
417,464
|
|
$
301,135
|
|
$
283,065
|
|
$
261,111
|
|
(3) %
|
|
55 %
|
Reserve for unfunded
commitments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of
period
|
$ 19,029
|
|
$ 14,221
|
|
$ 11,853
|
|
$ 12,823
|
|
$ 12,918
|
|
34 %
|
|
47 %
|
Initial ACL recorded
for unfunded commitments acquired during the period
|
—
|
|
5,767
|
|
—
|
|
—
|
|
—
|
|
(100) %
|
|
nm
|
Provision (recapture)
for credit losses on unfunded commitments
|
798
|
|
(959)
|
|
2,368
|
|
(970)
|
|
(95)
|
|
nm
|
|
nm
|
Balance, end of
period
|
19,827
|
|
19,029
|
|
14,221
|
|
11,853
|
|
12,823
|
|
4 %
|
|
55 %
|
Total Allowance for
credit losses (ACL)
|
$
424,430
|
|
$
436,493
|
|
$
315,356
|
|
$
294,918
|
|
$
273,934
|
|
(3) %
|
|
55 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs to
average loans and leases (annualized)
|
0.30 %
|
|
0.23 %
|
|
0.19 %
|
|
0.11 %
|
|
0.11 %
|
|
0.07
|
|
0.19
|
Recoveries to gross
charge-offs
|
16.13 %
|
|
17.80 %
|
|
20.86 %
|
|
36.61 %
|
|
36.84 %
|
|
(1.67)
|
|
(20.71)
|
ACLLL to loans and
leases
|
1.09 %
|
|
1.13 %
|
|
1.15 %
|
|
1.11 %
|
|
1.07 %
|
|
(0.04)
|
|
0.02
|
ACL to loans and
leases
|
1.15 %
|
|
1.18 %
|
|
1.21 %
|
|
1.16 %
|
|
1.12 %
|
|
(0.03)
|
|
0.03
|
nm = not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
For the quarter ended
March 31, 2023, the provision for credit losses on loans and leases
includes $88.4 million initial provision related to non-PCD loans
acquired during the period.
|
Columbia Banking
System, Inc.
|
Credit Quality –
Allowance for Credit Losses
|
(Unaudited)
|
|
|
Six Months
Ended
|
|
%
Change
|
($ in
thousands)
|
|
Jun 30,
2023
|
|
Jun 30,
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)
|
|
121,714
|
|
24,483
|
|
397 %
|
Charge-offs
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
|
(174)
|
|
(8)
|
|
nm
|
|
Commercial,
net
|
|
(51,284)
|
|
(16,893)
|
|
204 %
|
|
Residential,
net
|
|
(252)
|
|
(167)
|
|
51 %
|
|
Consumer & other,
net
|
|
(2,037)
|
|
(1,721)
|
|
18 %
|
|
Total
charge-offs
|
|
(53,747)
|
|
(18,789)
|
|
186 %
|
Recoveries
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
|
267
|
|
98
|
|
172 %
|
|
Commercial,
net
|
|
7,569
|
|
5,479
|
|
38 %
|
|
Residential,
net
|
|
186
|
|
389
|
|
(52) %
|
|
Consumer & other,
net
|
|
987
|
|
1,039
|
|
(5) %
|
|
Total
recoveries
|
|
9,009
|
|
7,005
|
|
29 %
|
Net (charge-offs)
recoveries
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
|
93
|
|
90
|
|
3 %
|
|
Commercial,
net
|
|
(43,715)
|
|
(11,414)
|
|
283 %
|
|
Residential,
net
|
|
(66)
|
|
222
|
|
(130) %
|
|
Consumer & other,
net
|
|
(1,050)
|
|
(682)
|
|
54 %
|
|
Total net
charge-offs
|
|
(44,738)
|
|
(11,784)
|
|
280 %
|
Balance, end of
period
|
|
$
404,603
|
|
$
261,111
|
|
55 %
|
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
|
(Recapture) provision
for credit losses on unfunded commitments
|
|
(161)
|
|
56
|
|
(388) %
|
Balance, end of
period
|
|
19,827
|
|
12,823
|
|
55 %
|
Total Allowance for
credit losses (ACL)
|
|
$
424,430
|
|
$
273,934
|
|
55 %
|
|
|
|
|
|
|
|
Net charge-offs to
average loans and leases (annualized)
|
|
0.27 %
|
|
0.10 %
|
|
0.17
|
Recoveries to gross
charge-offs
|
|
16.76 %
|
|
37.28 %
|
|
(20.52)
|
nm = not
meaningful
|
|
|
|
|
|
|
|
|
(1)
|
For the six months
ended June 30, 2023, the provision for credit losses on loans and
leases includes $88.4 million initial provision related to non-PCD
loans acquired during the period.
|
Columbia Banking
System, Inc.
|
Consolidated Average
Balance Sheets, Net Interest Income, and
Yields/Rates
|
(Unaudited)
|
|
Quarter
Ended
|
|
June 30,
2023
|
|
March 31,
2023
|
|
June 30,
2022
|
($ in
thousands)
|
Average
Balance
|
|
Interest
Income or Expense
|
|
Average Yields or
Rates
|
|
Average
Balance
|
|
Interest
Income or Expense
|
|
Average Yields or
Rates
|
|
Average
Balance
|
|
Interest
Income or Expense
|
|
Average Yields or
Rates
|
INTEREST-EARNING
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
$
46,794
|
|
$ 682
|
|
5.83 %
|
|
$
54,008
|
|
$ 799
|
|
5.92 %
|
|
$ 264,320
|
|
$ 2,742
|
|
4.15 %
|
Loans and leases
(1)
|
37,169,315
|
|
551,997
|
|
5.95 %
|
|
29,998,630
|
|
412,726
|
|
5.55 %
|
|
23,550,796
|
|
231,932
|
|
3.94 %
|
Taxable
securities
|
8,656,147
|
|
81,617
|
|
3.77 %
|
|
4,960,966
|
|
40,448
|
|
3.26 %
|
|
3,410,091
|
|
17,340
|
|
2.03 %
|
Non-taxable securities
(2)
|
865,278
|
|
8,010
|
|
3.70 %
|
|
437,020
|
|
4,068
|
|
3.72 %
|
|
220,327
|
|
1,721
|
|
3.13 %
|
Temporary investments
and interest-bearing cash
|
2,704,984
|
|
34,616
|
|
5.13 %
|
|
1,605,081
|
|
18,581
|
|
4.69 %
|
|
1,663,454
|
|
2,919
|
|
0.70 %
|
Total interest-earning
assets
|
49,442,518
|
|
$ 676,922
|
|
5.48 %
|
|
37,055,705
|
|
$ 476,622
|
|
5.19 %
|
|
29,108,988
|
|
$ 256,654
|
|
3.53 %
|
Goodwill and other
intangible assets
|
1,718,705
|
|
|
|
|
|
623,042
|
|
|
|
|
|
7,379
|
|
|
|
|
Other assets
|
2,379,351
|
|
|
|
|
|
1,747,228
|
|
|
|
|
|
1,240,536
|
|
|
|
|
Total assets
|
$
53,540,574
|
|
|
|
|
|
$
39,425,975
|
|
|
|
|
|
$
30,356,903
|
|
|
|
|
INTEREST-BEARING
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
$
6,131,117
|
|
$
17,277
|
|
1.15 %
|
|
$
4,759,251
|
|
$ 9,815
|
|
0.84 %
|
|
$
3,896,553
|
|
$ 610
|
|
0.06 %
|
Money market
deposits
|
10,362,495
|
|
41,703
|
|
1.60 %
|
|
8,845,784
|
|
32,238
|
|
1.48 %
|
|
7,366,987
|
|
1,717
|
|
0.09 %
|
Savings
deposits
|
3,297,138
|
|
877
|
|
0.11 %
|
|
2,686,388
|
|
556
|
|
0.08 %
|
|
2,426,124
|
|
199
|
|
0.03 %
|
Time
deposits
|
4,703,967
|
|
40,551
|
|
3.46 %
|
|
3,205,128
|
|
21,004
|
|
2.66 %
|
|
1,618,394
|
|
1,489
|
|
0.37 %
|
Total interest-bearing
deposits
|
24,494,717
|
|
100,408
|
|
1.64 %
|
|
19,496,551
|
|
63,613
|
|
1.32 %
|
|
15,308,058
|
|
4,015
|
|
0.11 %
|
Repurchase agreements
and federal funds purchased
|
284,347
|
|
1,071
|
|
1.51 %
|
|
281,032
|
|
406
|
|
0.59 %
|
|
512,641
|
|
66
|
|
0.05 %
|
Borrowings
|
6,187,363
|
|
81,004
|
|
5.25 %
|
|
2,352,715
|
|
28,764
|
|
4.96 %
|
|
6,273
|
|
50
|
|
3.21 %
|
Junior and other
subordinated debentures
|
405,989
|
|
9,271
|
|
9.16 %
|
|
417,966
|
|
8,470
|
|
8.22 %
|
|
393,964
|
|
4,001
|
|
4.07 %
|
Total interest-bearing
liabilities
|
31,372,416
|
|
$ 191,754
|
|
2.45 %
|
|
22,548,264
|
|
$ 101,253
|
|
1.82 %
|
|
16,220,936
|
|
$ 8,132
|
|
0.20 %
|
Non-interest-bearing
deposits
|
16,361,541
|
|
|
|
|
|
12,755,080
|
|
|
|
|
|
11,086,376
|
|
|
|
|
Other
liabilities
|
871,378
|
|
|
|
|
|
772,870
|
|
|
|
|
|
464,755
|
|
|
|
|
Total
liabilities
|
48,605,335
|
|
|
|
|
|
36,076,214
|
|
|
|
|
|
27,772,067
|
|
|
|
|
Common
equity
|
4,935,239
|
|
|
|
|
|
3,349,761
|
|
|
|
|
|
2,584,836
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
53,540,574
|
|
|
|
|
|
$
39,425,975
|
|
|
|
|
|
$
30,356,903
|
|
|
|
|
NET INTEREST
INCOME
|
|
|
$ 485,168
|
|
|
|
|
|
$ 375,369
|
|
|
|
|
|
$ 248,522
|
|
|
NET INTEREST
SPREAD
|
|
|
|
|
3.03 %
|
|
|
|
|
|
3.37 %
|
|
|
|
|
|
3.33 %
|
NET INTEREST INCOME
TO
EARNING ASSETS OR NET
INTEREST MARGIN (1), (2)
|
|
|
|
|
3.93 %
|
|
|
|
|
|
4.08 %
|
|
|
|
|
|
3.41 %
|
|
|
(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 $1.2 million for the three months ended June 30,
2023, as compared to $671,000 for the three months ended
March 31, 2023 and $352,000 for the three months ended
June 30, 2022.
|
Columbia Banking
System, Inc.
|
Average Rates and
Balances
|
(Unaudited)
|
|
Six Months
Ended
|
|
June 30,
2023
|
|
June 30,
2022
|
($ 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
|
$
50,381
|
|
$
1,481
|
|
5.88 %
|
|
$
275,253
|
|
$
5,004
|
|
3.64 %
|
Loans and leases
(1)
|
33,603,781
|
|
964,723
|
|
5.77 %
|
|
23,061,173
|
|
444,074
|
|
3.86 %
|
Taxable
securities
|
6,818,764
|
|
122,065
|
|
3.58 %
|
|
3,533,930
|
|
36,151
|
|
2.05 %
|
Non-taxable securities
(2)
|
652,332
|
|
12,078
|
|
3.70 %
|
|
227,218
|
|
3,447
|
|
3.03 %
|
Temporary investments
and interest-bearing cash
|
2,158,071
|
|
53,197
|
|
4.97 %
|
|
2,138,352
|
|
4,272
|
|
0.40 %
|
Total interest-earning
assets
|
43,283,329
|
|
$
1,153,544
|
|
5.35 %
|
|
29,235,926
|
|
$ 492,948
|
|
3.38 %
|
Goodwill and other
intangible assets
|
1,173,900
|
|
|
|
|
|
7,890
|
|
|
|
|
Other assets
|
2,065,036
|
|
|
|
|
|
1,232,496
|
|
|
|
|
Total
assets
|
$ 46,522,265
|
|
|
|
|
|
$ 30,476,312
|
|
|
|
|
INTEREST-BEARING
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
$ 5,448,974
|
|
$
27,092
|
|
1.00 %
|
|
$ 3,854,596
|
|
$
1,108
|
|
0.06 %
|
Money market
deposits
|
9,657,738
|
|
73,941
|
|
1.54 %
|
|
7,503,142
|
|
3,125
|
|
0.08 %
|
Savings
deposits
|
2,993,450
|
|
1,433
|
|
0.10 %
|
|
2,416,096
|
|
404
|
|
0.03 %
|
Time
deposits
|
3,958,688
|
|
61,555
|
|
3.14 %
|
|
1,685,763
|
|
3,294
|
|
0.39 %
|
Total interest-bearing
deposits
|
22,058,850
|
|
164,021
|
|
1.50 %
|
|
15,459,597
|
|
7,931
|
|
0.10 %
|
Repurchase agreements
and federal funds purchased
|
282,699
|
|
1,477
|
|
1.05 %
|
|
499,664
|
|
129
|
|
0.05 %
|
Borrowings
|
4,280,632
|
|
109,768
|
|
5.17 %
|
|
6,293
|
|
99
|
|
3.18 %
|
Junior and other
subordinated debentures
|
411,944
|
|
17,741
|
|
8.68 %
|
|
387,510
|
|
7,150
|
|
3.72 %
|
Total interest-bearing
liabilities
|
27,034,125
|
|
$ 293,007
|
|
2.19 %
|
|
16,353,064
|
|
$
15,309
|
|
0.19 %
|
Non-interest-bearing
deposits
|
14,518,864
|
|
|
|
|
|
11,046,925
|
|
|
|
|
Other
liabilities
|
822,396
|
|
|
|
|
|
426,917
|
|
|
|
|
Total
liabilities
|
42,375,385
|
|
|
|
|
|
27,826,906
|
|
|
|
|
Common
equity
|
4,146,880
|
|
|
|
|
|
2,649,406
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$ 46,522,265
|
|
|
|
|
|
$ 30,476,312
|
|
|
|
|
NET INTEREST
INCOME
|
|
|
$ 860,537
|
|
|
|
|
|
$ 477,639
|
|
|
NET INTEREST
SPREAD
|
|
|
|
|
3.16 %
|
|
|
|
|
|
3.19 %
|
NET INTEREST INCOME
TO
EARNING ASSETS OR NET
INTEREST MARGIN (1), (2)
|
|
|
|
|
3.99 %
|
|
|
|
|
|
3.28 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $1.9 million for the six months ended June 30,
2023, as compared to $706,000 for the same period in
2022.
|
Columbia Banking
System, Inc.
|
Residential Mortgage
Banking Activity
|
(Unaudited)
|
|
Quarter
Ended
|
|
%
Change
|
($ in
thousands)
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Jun 30,
2022
|
|
Seq.
Quarter
|
|
Year
over Year
|
Residential mortgage
banking revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination and
sale
|
$
3,166
|
|
$
3,587
|
|
$
4,252
|
|
$ 10,515
|
|
$ 15,101
|
|
(12) %
|
|
(79) %
|
Servicing
|
9,167
|
|
9,397
|
|
9,184
|
|
9,529
|
|
9,505
|
|
(2) %
|
|
(4) %
|
Change in fair value of
MSR asset:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes due to
collection/realization of expected cash flows over time
|
(4,797)
|
|
(4,881)
|
|
(4,986)
|
|
(4,978)
|
|
(4,961)
|
|
(2) %
|
|
(3) %
|
Changes due to
valuation inputs or assumptions
|
(2,242)
|
|
(2,937)
|
|
(9,914)
|
|
16,403
|
|
10,899
|
|
(24) %
|
|
(121) %
|
MSR hedge (loss)
gain
|
(7,636)
|
|
2,650
|
|
(348)
|
|
(14,128)
|
|
—
|
|
(388) %
|
|
nm
|
Total
|
$ (2,342)
|
|
$
7,816
|
|
$ (1,812)
|
|
$ 17,341
|
|
$ 30,544
|
|
(130) %
|
|
(108) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closed loan volume
for-sale
|
$
119,476
|
|
$
131,726
|
|
$
216,833
|
|
$
396,979
|
|
$
576,532
|
|
(9) %
|
|
(79) %
|
Gain on sale
margin
|
2.65 %
|
|
2.72 %
|
|
1.96 %
|
|
2.65 %
|
|
2.62 %
|
|
(0.07)
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
servicing rights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of
period
|
$
178,800
|
|
$
185,017
|
|
$
196,177
|
|
$
179,558
|
|
$
165,807
|
|
(3) %
|
|
8 %
|
Additions for new MSR
capitalized
|
1,168
|
|
1,601
|
|
3,740
|
|
5,194
|
|
7,813
|
|
(27) %
|
|
(85) %
|
Change in fair value of
MSR asset:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes due to
collection/realization of expected cash flows over time
|
(4,797)
|
|
(4,881)
|
|
(4,986)
|
|
(4,978)
|
|
(4,961)
|
|
(2) %
|
|
(3) %
|
Changes due to
valuation inputs or assumptions
|
(2,242)
|
|
(2,937)
|
|
(9,914)
|
|
16,403
|
|
10,899
|
|
(24) %
|
|
(121) %
|
Balance, end of
period
|
$
172,929
|
|
$
178,800
|
|
$
185,017
|
|
$
196,177
|
|
$
179,558
|
|
(3) %
|
|
(4) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans serviced for others
|
$
12,723,932
|
|
$
12,914,046
|
|
$
13,020,189
|
|
$
12,997,911
|
|
$
12,932,747
|
|
(1) %
|
|
(2) %
|
MSR as % of serviced
portfolio
|
1.36 %
|
|
1.38 %
|
|
1.42 %
|
|
1.51 %
|
|
1.39 %
|
|
(0.02)
|
|
(0.03)
|
nm = not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Columbia Banking
System, Inc.
|
Residential Mortgage
Banking Activity
|
(Unaudited)
|
|
Six Months
Ended
|
|
%
Change
|
($ in
thousands)
|
Jun 30,
2023
|
|
Jun 30,
2022
|
|
Year
over Year
|
Residential mortgage
banking revenue:
|
|
|
|
|
|
Origination and
sale
|
$
6,753
|
|
$
31,945
|
|
(79) %
|
Servicing
|
18,564
|
|
18,645
|
|
0 %
|
Change in fair value of
MSR asset:
|
|
|
|
|
|
Changes due to
collection/realization of expected cash flows over time
|
(9,678)
|
|
(10,308)
|
|
(6) %
|
Changes due to
valuation inputs or assumptions
|
(5,179)
|
|
51,048
|
|
(110) %
|
MSR hedge
loss
|
(4,986)
|
|
—
|
|
nm
|
Total
|
$
5,474
|
|
$
91,330
|
|
(94) %
|
|
|
|
|
|
|
Closed loan volume
for-sale
|
$
251,202
|
|
$ 1,225,654
|
|
(80) %
|
Gain on sale
margin
|
2.69 %
|
|
2.61 %
|
|
0.08
|
|
|
|
|
|
|
Residential mortgage
servicing rights:
|
|
|
|
|
|
Balance, beginning of
period
|
$
185,017
|
|
$
123,615
|
|
50 %
|
Additions for new MSR
capitalized
|
2,769
|
|
15,203
|
|
(82) %
|
Change in fair value of
MSR asset:
|
|
|
|
|
|
Changes due to
collection/realization of expected cash flows over time
|
(9,678)
|
|
(10,308)
|
|
(6) %
|
Changes due to
valuation inputs or assumptions
|
(5,179)
|
|
51,048
|
|
(110) %
|
Balance, end of
period
|
$
172,929
|
|
$
179,558
|
|
(4) %
|
nm = not
meaningful
|
|
|
|
|
|
Non-GAAP Financial Measures
In addition to results presented in accordance with generally
accepted accounting principles in the
United States of America (GAAP), this press release contains
certain non-GAAP financial measures. The company believes
presenting certain non-GAAP financial measures provides investors
with information useful in understanding our financial performance,
our performance trends, and our financial position. We utilize
these measures for internal planning and forecasting purposes. We,
as well as securities analysts, investors, and other interested
parties, also use these measures to compare peer company operating
performance. We believe that our presentation and discussion,
together with the accompanying reconciliations, provides a complete
understanding of factors and trends affecting our business and
allows investors to view performance in a manner similar to
management. These non-GAAP measures should not be considered a
substitution for GAAP basis measures and results, and we strongly
encourage investors to review our consolidated financial statements
in their entirety and not to rely on any single financial measure.
Because non-GAAP financial measures are not standardized, it may
not be possible to compare these financial measures with other
companies' non-GAAP financial measures having the same or similar
names.
Columbia Banking
System, Inc.
|
GAAP to Non-GAAP
Reconciliation
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
%
Change
|
($ in thousands,
except per share data)
|
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Jun 30,
2022
|
|
Seq.
Quarter
|
|
Year
over
Year
|
Total shareholders'
equity
|
a
|
|
$
4,828,188
|
|
$
4,884,723
|
|
$
2,479,826
|
|
$
2,417,514
|
|
$
2,518,276
|
|
(1) %
|
|
92 %
|
Less:
Goodwill
|
|
|
1,029,234
|
|
1,030,142
|
|
—
|
|
—
|
|
—
|
|
— %
|
|
nm
|
Less: Other intangible
assets, net
|
|
|
666,762
|
|
702,315
|
|
4,745
|
|
5,764
|
|
6,789
|
|
(5) %
|
|
nm
|
Tangible common
shareholders' equity
|
b
|
|
$
3,132,192
|
|
$
3,152,266
|
|
$
2,475,081
|
|
$
2,411,750
|
|
$
2,511,487
|
|
(1) %
|
|
25 %
|
Less: Accumulated
other comprehensive (loss) income (AOCI)
|
|
|
$
(418,762)
|
|
(300,134)
|
|
(426,864)
|
|
(449,560)
|
|
(308,147)
|
|
40 %
|
|
36 %
|
Tangible common
shareholders' equity, ex AOCI
|
c
|
|
$
3,550,954
|
|
$
3,452,400
|
|
$
2,901,945
|
|
$
2,861,310
|
|
$
2,819,634
|
|
3 %
|
|
26 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
d
|
|
$
53,592,096
|
|
$
53,994,226
|
|
$
31,848,639
|
|
$
31,471,960
|
|
$
30,135,694
|
|
(1) %
|
|
78 %
|
Less:
Goodwill
|
|
|
1,029,234
|
|
1,030,142
|
|
—
|
|
—
|
|
—
|
|
0 %
|
|
nm
|
Less: Other intangible
assets, net
|
|
|
666,762
|
|
702,315
|
|
4,745
|
|
5,764
|
|
6,789
|
|
(5) %
|
|
nm
|
Tangible
assets
|
e
|
|
$
51,896,100
|
|
$
52,261,769
|
|
$
31,843,894
|
|
$
31,466,196
|
|
$
30,128,905
|
|
(1) %
|
|
72 %
|
Common shares
outstanding at period end (1)
|
f
|
|
208,514
|
|
208,429
|
|
129,321
|
|
129,320
|
|
129,318
|
|
0 %
|
|
61 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity to total assets ratio
|
a / d
|
|
9.01 %
|
|
9.05 %
|
|
7.79 %
|
|
7.68 %
|
|
8.36 %
|
|
(0.04)
|
|
0.65
|
Tangible common equity
ratio
|
b / e
|
|
6.04 %
|
|
6.03 %
|
|
7.77 %
|
|
7.66 %
|
|
8.34 %
|
|
0.01
|
|
(2.30)
|
Tangible common equity
ratio, ex AOCI
|
c / e
|
|
6.84 %
|
|
6.61 %
|
|
9.11 %
|
|
9.09 %
|
|
9.36 %
|
|
0.23
|
|
(2.52)
|
Book value per common
share (1)
|
a / f
|
|
$
23.16
|
|
$
23.44
|
|
$
19.18
|
|
$
18.69
|
|
$
19.47
|
|
(1) %
|
|
19 %
|
Tangible book value per
common share (1)
|
b / f
|
|
$
15.02
|
|
$
15.12
|
|
$
19.14
|
|
$
18.65
|
|
$
19.42
|
|
(1) %
|
|
(23) %
|
Tangible book value per
common share, ex AOCI (1)
|
c / f
|
|
$
17.03
|
|
$
16.56
|
|
$
22.44
|
|
$
22.13
|
|
$
21.80
|
|
3 %
|
|
(22) %
|
nm = not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
UHC merger of 0.5958.
|
Columbia Banking
System, Inc.
|
GAAP to Non-GAAP
Reconciliation - Continued
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
%
Change
|
($ in
thousands)
|
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Jun 30,
2022
|
|
Seq.
Quarter
|
|
Year
over
Year
|
Non-Interest Income
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) gain on equity
securities, net
|
|
|
$
(697)
|
|
$
2,416
|
|
$
284
|
|
$
(2,647)
|
|
$
(2,075)
|
|
(129) %
|
|
(66) %
|
Gain (loss) on swap
derivatives
|
|
|
1,288
|
|
(3,543)
|
|
(2,329)
|
|
4,194
|
|
7,337
|
|
nm
|
|
(82) %
|
Change in fair value
of certain loans held for investment
|
|
|
(6,965)
|
|
9,488
|
|
4,192
|
|
(26,397)
|
|
(15,210)
|
|
(173) %
|
|
(54) %
|
Change in fair value
of MSR due to valuation inputs or assumptions
|
|
|
(2,242)
|
|
(2,937)
|
|
(9,914)
|
|
16,403
|
|
10,899
|
|
(24) %
|
|
(121) %
|
MSR hedge (loss)
gain
|
|
|
(7,636)
|
|
2,650
|
|
(348)
|
|
(14,128)
|
|
—
|
|
(388) %
|
|
nm
|
Total non-interest
income adjustments
|
a
|
|
$
(16,252)
|
|
$
8,074
|
|
$
(8,115)
|
|
$
(22,575)
|
|
$
951
|
|
(301) %
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger related
expenses
|
|
|
$
29,649
|
|
$
115,898
|
|
$
11,637
|
|
$
769
|
|
$
2,672
|
|
(74) %
|
|
nm
|
Exit and disposal
costs
|
|
|
2,119
|
|
1,291
|
|
1,966
|
|
1,364
|
|
442
|
|
64 %
|
|
379 %
|
Total non-interest
expense adjustments
|
b
|
|
$
31,768
|
|
$
117,189
|
|
$
13,603
|
|
$
2,133
|
|
$
3,114
|
|
(73) %
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(1)
|
c
|
|
$
485,168
|
|
$
375,369
|
|
$
305,762
|
|
$
287,933
|
|
$
248,522
|
|
29 %
|
|
95 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income
(GAAP)
|
d
|
|
$
39,678
|
|
$
54,735
|
|
$
34,879
|
|
$
29,445
|
|
$
55,235
|
|
(28) %
|
|
(28) %
|
Less: Non-interest
income adjustments
|
a
|
|
16,252
|
|
(8,074)
|
|
8,115
|
|
22,575
|
|
(951)
|
|
nm
|
|
nm
|
Operating
non-interest income (non-GAAP)
|
e
|
|
$
55,930
|
|
$
46,661
|
|
$
42,994
|
|
$
52,020
|
|
$
54,284
|
|
20 %
|
|
3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (GAAP)
(1)
|
f=c+d
|
|
$
524,846
|
|
$
430,104
|
|
$
340,641
|
|
$
317,378
|
|
$
303,757
|
|
22 %
|
|
73 %
|
Operating revenue
(non-GAAP) (1)
|
g=c+e
|
|
$
541,098
|
|
$
422,030
|
|
$
348,756
|
|
$
339,953
|
|
$
302,806
|
|
28 %
|
|
79 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense
(GAAP)
|
h
|
|
$
328,559
|
|
$
342,818
|
|
$
194,982
|
|
$
177,964
|
|
$
179,574
|
|
(4) %
|
|
83 %
|
Less: Non-interest
expense adjustments
|
b
|
|
(31,768)
|
|
(117,189)
|
|
(13,603)
|
|
(2,133)
|
|
(3,114)
|
|
(73) %
|
|
nm
|
Operating
non-interest expense (non-GAAP)
|
i
|
|
$
296,791
|
|
$
225,629
|
|
$
181,379
|
|
$
175,831
|
|
$
176,460
|
|
32 %
|
|
68 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
(GAAP)
|
j
|
|
$
133,377
|
|
$
(14,038)
|
|
$
82,964
|
|
$
84,040
|
|
$
78,591
|
|
nm
|
|
70 %
|
Provision (benefit) for
income taxes
|
|
|
45,703
|
|
(4,886)
|
|
29,464
|
|
27,473
|
|
26,548
|
|
nm
|
|
72 %
|
Income (loss) before
provision for income taxes
|
|
|
179,080
|
|
(18,924)
|
|
112,428
|
|
111,513
|
|
105,139
|
|
nm
|
|
70 %
|
Provision for credit
losses
|
|
|
16,014
|
|
105,539
|
|
32,948
|
|
27,572
|
|
18,692
|
|
(85) %
|
|
(14) %
|
Pre-provision net
revenue (PPNR) (non-GAAP)
|
k
|
|
195,094
|
|
86,615
|
|
145,376
|
|
139,085
|
|
123,831
|
|
125 %
|
|
58 %
|
Less: Non-interest
income adjustments
|
a
|
|
16,252
|
|
(8,074)
|
|
8,115
|
|
22,575
|
|
(951)
|
|
nm
|
|
nm
|
Add: Non-interest
expense adjustments
|
b
|
|
31,768
|
|
117,189
|
|
13,603
|
|
2,133
|
|
3,114
|
|
(73) %
|
|
nm
|
Operating PPNR
(non-GAAP)
|
l
|
|
$
243,114
|
|
$
195,730
|
|
$
167,094
|
|
$
163,793
|
|
$
125,994
|
|
24 %
|
|
93 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
(GAAP)
|
j
|
|
$
133,377
|
|
$
(14,038)
|
|
$
82,964
|
|
$
84,040
|
|
$
78,591
|
|
nm
|
|
70 %
|
Less: Non-interest
income adjustments
|
a
|
|
16,252
|
|
(8,074)
|
|
8,115
|
|
22,575
|
|
(951)
|
|
nm
|
|
nm
|
Add: Non-interest
expense adjustments
|
b
|
|
31,768
|
|
117,189
|
|
13,603
|
|
2,133
|
|
3,114
|
|
(73) %
|
|
nm
|
Tax effect of
adjustments
|
|
|
(11,981)
|
|
(23,565)
|
|
(5,459)
|
|
(6,116)
|
|
(480)
|
|
(49) %
|
|
nm
|
Operating net income
(non-GAAP)
|
m
|
|
$
169,416
|
|
$
71,512
|
|
$
99,223
|
|
$
102,632
|
|
$
80,274
|
|
137 %
|
|
111 %
|
nm = not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Tax exempt interest has
been adjusted to a taxable equivalent basis using a 21% tax
rate.
|
Columbia Banking
System, Inc.
|
GAAP to Non-GAAP
Reconciliation - Continued
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
%
Change
|
($ in thousands,
except per share data)
|
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Jun 30,
2022
|
|
Seq.
Quarter
|
|
Year
over Year
|
Average
assets
|
n
|
|
$
53,540,574
|
|
$
39,425,975
|
|
$
31,637,490
|
|
$
30,668,177
|
|
$
30,356,903
|
|
36 %
|
|
76 %
|
Less: Average goodwill
and other intangible assets, net
|
|
|
1,718,705
|
|
623,042
|
|
5,298
|
|
6,343
|
|
7,379
|
|
176 %
|
|
nm
|
Average tangible
assets
|
o
|
|
$
51,821,869
|
|
$
38,802,933
|
|
$
31,632,192
|
|
$
30,661,834
|
|
$
30,349,524
|
|
34 %
|
|
71 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common
shareholders' equity
|
p
|
|
$
4,935,239
|
|
$
3,349,761
|
|
$
2,438,639
|
|
$
2,567,266
|
|
$
2,584,836
|
|
47 %
|
|
91 %
|
Less: Average goodwill
and other intangible assets, net
|
|
|
1,718,705
|
|
623,042
|
|
5,298
|
|
6,343
|
|
7,379
|
|
176 %
|
|
nm
|
Average tangible
common equity
|
q
|
|
$
3,216,534
|
|
$
2,726,719
|
|
$
2,433,341
|
|
$
2,560,923
|
|
$
2,577,457
|
|
18 %
|
|
25 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding (1)
|
r
|
|
207,977
|
|
156,383
|
|
129,321
|
|
129,319
|
|
129,306
|
|
33 %
|
|
61 %
|
Weighted average
diluted shares outstanding (1)
|
s
|
|
208,545
|
|
156,383
|
|
129,801
|
|
129,733
|
|
129,673
|
|
33 %
|
|
61 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select Per-Share
& Performance Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings-per-share -
basic (1)
|
j / r
|
|
$
0.64
|
|
$
(0.09)
|
|
$
0.64
|
|
$
0.65
|
|
$
0.61
|
|
(811) %
|
|
5 %
|
Earnings-per-share -
diluted (1)
|
j / s
|
|
$
0.64
|
|
$
(0.09)
|
|
$
0.64
|
|
$
0.65
|
|
$
0.61
|
|
(811) %
|
|
5 %
|
Efficiency
ratio
|
h / f
|
|
62.60 %
|
|
79.71 %
|
|
57.24 %
|
|
56.07 %
|
|
59.12 %
|
|
(17.11)
|
|
3.48
|
Return on average
assets
|
j / n
|
|
1.00 %
|
|
(0.14) %
|
|
1.04 %
|
|
1.09 %
|
|
1.04 %
|
|
1.14
|
|
(0.04)
|
Return on average
tangible assets
|
j / o
|
|
1.03 %
|
|
(0.15) %
|
|
1.04 %
|
|
1.09 %
|
|
1.04 %
|
|
1.18
|
|
(0.01)
|
PPNR return on average
assets
|
k / n
|
|
1.46 %
|
|
0.89 %
|
|
1.82 %
|
|
1.80 %
|
|
1.64 %
|
|
0.57
|
|
(0.18)
|
Return on average
common equity
|
j / p
|
|
10.84 %
|
|
(1.70) %
|
|
13.50 %
|
|
12.99 %
|
|
12.20 %
|
|
12.54
|
|
(1.36)
|
Return on average
tangible common equity
|
j / q
|
|
16.63 %
|
|
(2.09) %
|
|
13.53 %
|
|
13.02 %
|
|
12.23 %
|
|
18.72
|
|
4.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Per-Share
& Performance Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings-per-share - basic (1)
|
m / r
|
|
$
0.81
|
|
$
0.46
|
|
$
0.77
|
|
$
0.79
|
|
$
0.62
|
|
76 %
|
|
31 %
|
Operating
earnings-per-share - diluted (1)
|
m / s
|
|
$
0.81
|
|
$
0.46
|
|
$
0.76
|
|
$
0.79
|
|
$
0.62
|
|
76 %
|
|
31 %
|
Operating efficiency
ratio
|
i / g
|
|
54.85 %
|
|
53.46 %
|
|
52.01 %
|
|
51.72 %
|
|
58.27 %
|
|
1.39
|
|
(3.42)
|
Operating return on
average assets
|
m / n
|
|
1.27 %
|
|
0.74 %
|
|
1.24 %
|
|
1.33 %
|
|
1.06 %
|
|
0.53
|
|
0.21
|
Operating return on
average tangible assets
|
m / o
|
|
1.31 %
|
|
0.75 %
|
|
1.24 %
|
|
1.33 %
|
|
1.06 %
|
|
0.56
|
|
0.25
|
Operating PPNR return
on average assets
|
l / n
|
|
1.82 %
|
|
2.01 %
|
|
2.10 %
|
|
2.12 %
|
|
1.66 %
|
|
(0.19)
|
|
0.16
|
Operating return on
average common equity
|
m / p
|
|
13.77 %
|
|
8.66 %
|
|
16.14 %
|
|
15.86 %
|
|
12.46 %
|
|
5.11
|
|
1.31
|
Operating return on
average tangible common equity
|
m / q
|
|
21.13 %
|
|
10.64 %
|
|
16.18 %
|
|
15.90 %
|
|
12.49 %
|
|
10.49
|
|
8.64
|
|
|
(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
UHC merger of 0.5958.
|
Columbia Banking
System, Inc.
|
GAAP to Non-GAAP
Reconciliation - Continued
|
(Unaudited)
|
|
|
|
Six Months
Ended
|
|
%
Change
|
($ in
thousands)
|
|
|
Jun 30,
2023
|
|
Jun 30,
2022
|
|
Year
over
Year
|
Non-Interest Income
Adjustments
|
|
|
|
|
|
|
|
Gain on sale of debt
securities, net
|
|
|
$
—
|
|
$
2
|
|
(100) %
|
Gain (loss) on equity
securities, net
|
|
|
1,719
|
|
(4,736)
|
|
nm
|
(Loss) gain on swap
derivatives
|
|
|
(2,255)
|
|
14,384
|
|
(116) %
|
Change in fair value
of certain loans held for investment
|
|
|
2,523
|
|
(36,259)
|
|
nm
|
Change in fair value
of MSR due to valuation inputs or assumptions
|
|
|
(5,179)
|
|
51,048
|
|
nm
|
MSR hedge
loss
|
|
|
(4,986)
|
|
—
|
|
nm
|
Total non-interest
income adjustments
|
a
|
|
$
(8,178)
|
|
$
24,439
|
|
(133) %
|
|
|
|
|
|
|
|
|
Non-Interest Expense
Adjustments
|
|
|
|
|
|
|
|
Merger related
expenses
|
|
|
$
145,547
|
|
$
4,950
|
|
nm
|
Exit and disposal
costs
|
|
|
3,410
|
|
3,475
|
|
(2) %
|
Total non-interest
expense adjustments
|
b
|
|
$
148,957
|
|
$
8,425
|
|
nm
|
|
|
|
|
|
|
|
|
Net interest income
(1)
|
c
|
|
$
860,537
|
|
$
477,639
|
|
80 %
|
|
|
|
|
|
|
|
|
Non-interest income
(GAAP)
|
d
|
|
$
94,413
|
|
$
135,204
|
|
(30) %
|
Less: Non-interest
income adjustments
|
a
|
|
8,178
|
|
(24,439)
|
|
(133) %
|
Operating
non-interest income (non-GAAP)
|
e
|
|
$
102,591
|
|
$
110,765
|
|
(7) %
|
|
|
|
|
|
|
|
|
Revenue (GAAP)
(1)
|
f=c+d
|
|
$
954,950
|
|
$
612,843
|
|
56 %
|
Operating revenue
(non-GAAP) (1)
|
g=c+e
|
|
$
963,128
|
|
$
588,404
|
|
64 %
|
|
|
|
|
|
|
|
|
Non-interest expense
(GAAP)
|
h
|
|
$
671,377
|
|
$
362,004
|
|
85 %
|
Less: Non-interest
expense adjustments
|
b
|
|
(148,957)
|
|
(8,425)
|
|
nm
|
Operating
non-interest expense (non-GAAP)
|
i
|
|
$
522,420
|
|
$
353,579
|
|
48 %
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
j
|
|
$
119,339
|
|
$
169,748
|
|
(30) %
|
Provision for income
taxes
|
|
|
40,817
|
|
56,889
|
|
(28) %
|
Income before provision
for income taxes
|
|
|
160,156
|
|
226,637
|
|
(29) %
|
Provision for credit
losses
|
|
|
121,553
|
|
23,496
|
|
417 %
|
Pre-provision net
revenue (PPNR) (non-GAAP)
|
k
|
|
281,709
|
|
250,133
|
|
13 %
|
Less: Non-interest
income adjustments
|
a
|
|
8,178
|
|
(24,439)
|
|
(133) %
|
Add: Non-interest
expense adjustments
|
b
|
|
148,957
|
|
8,425
|
|
nm
|
Operating PPNR
(non-GAAP)
|
l
|
|
$
438,844
|
|
$
234,119
|
|
87 %
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
j
|
|
$
119,339
|
|
$
169,748
|
|
(30) %
|
Less: Non-interest
income adjustments
|
a
|
|
8,178
|
|
(24,439)
|
|
(133) %
|
Add: Non-interest
expense adjustments
|
b
|
|
148,957
|
|
8,425
|
|
nm
|
Tax effect of
adjustments
|
|
|
(35,546)
|
|
4,096
|
|
nm
|
Operating net income
(non-GAAP)
|
m
|
|
$
240,928
|
|
$
157,830
|
|
53 %
|
nm = not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Tax
exempt interest has been adjusted to a taxable equivalent basis
using a 21% tax rate.
|
|
Average
assets
|
n
|
|
$
46,522,265
|
|
$
30,476,312
|
|
53 %
|
Less: Average goodwill
and other intangible assets, net
|
|
|
$
1,173,900
|
|
$
7,890
|
|
nm
|
Average tangible
assets
|
o
|
|
$
45,348,365
|
|
$
30,468,422
|
|
49 %
|
|
|
|
|
|
|
|
|
Average common
shareholders' equity
|
p
|
|
$
4,146,880
|
|
$
2,649,406
|
|
57 %
|
Less: Average goodwill
and other intangible assets, net
|
|
|
$
1,173,900
|
|
$
7,890
|
|
nm
|
Average tangible
common equity
|
q
|
|
$
2,972,980
|
|
$
2,641,516
|
|
13 %
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding (1)
|
r
|
|
182,325
|
|
129,233
|
|
41 %
|
Weighted average
diluted shares outstanding (1)
|
s
|
|
182,860
|
|
129,685
|
|
41 %
|
|
|
|
|
|
|
|
|
Select Per-Share
& Performance Metrics
|
|
|
|
|
|
|
|
Earnings-per-share -
basic (1)
|
j / r
|
|
$
0.65
|
|
$
1.31
|
|
(50) %
|
Earnings-per-share -
diluted (1)
|
j / s
|
|
$
0.65
|
|
$
1.31
|
|
(50) %
|
Efficiency
ratio
|
h / f
|
|
70.30 %
|
|
59.07 %
|
|
11.23
|
Return on average
assets
|
j / n
|
|
0.52 %
|
|
1.12 %
|
|
(0.60)
|
Return on average
tangible assets
|
j / o
|
|
0.53 %
|
|
1.12 %
|
|
(0.59)
|
PPNR return on average
assets
|
k/n
|
|
1.22 %
|
|
1.66 %
|
|
(0.44)
|
Return on average
common equity
|
j / p
|
|
5.80 %
|
|
12.92 %
|
|
(7.12)
|
Return on average
tangible common equity
|
j / q
|
|
8.09 %
|
|
12.96 %
|
|
(4.87)
|
|
|
|
|
|
|
|
|
Operating Per-Share
& Performance Metrics
|
|
|
|
|
|
|
|
Operating
earnings-per-share - basic (1)
|
m / r
|
|
$
1.32
|
|
$
1.22
|
|
8 %
|
Operating
earnings-per-share - diluted (1)
|
m / s
|
|
$
1.32
|
|
$
1.22
|
|
8 %
|
Operating efficiency
ratio
|
i / g
|
|
54.24 %
|
|
60.09 %
|
|
(5.85)
|
Operating return on
average assets
|
m / n
|
|
1.04 %
|
|
1.04 %
|
|
—
|
Operating return on
average tangible assets
|
m / o
|
|
1.07 %
|
|
1.04 %
|
|
0.03
|
Operating PPNR return
on average assets
|
l / n
|
|
1.90 %
|
|
1.55 %
|
|
0.35
|
Operating return on
average common equity
|
m / p
|
|
11.72 %
|
|
12.01 %
|
|
(0.29)
|
Operating return on
average tangible common equity
|
m / q
|
|
16.34 %
|
|
12.05 %
|
|
4.29
|
|
|
(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
UHC merger of 0.5958.
|
Columbia Banking
System, Inc.
|
GAAP to Non-GAAP
Reconciliation - Continued
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
%
Change
|
($ in
thousands)
|
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Jun 30,
2022
|
|
Seq.
Quarter
|
|
Year
over Year
|
Loans and leases
interest income
|
a
|
|
$ 551,997
|
|
$ 412,726
|
|
$ 320,747
|
|
$ 276,625
|
|
$
231,932
|
|
34 %
|
|
138 %
|
Less: Acquired loan
accretion - rate related (2), (3)
|
b
|
|
30,548
|
|
11,832
|
|
387
|
|
789
|
|
1,069
|
|
158 %
|
|
nm
|
Less: Acquired loan
accretion - credit related (3)
|
c
|
|
7,100
|
|
3,806
|
|
—
|
|
—
|
|
—
|
|
87 %
|
|
nm
|
Adjusted loans and
leases interest income
|
d=a-b-c
|
|
$ 514,349
|
|
$ 397,088
|
|
$ 320,360
|
|
$ 275,836
|
|
$
230,863
|
|
30 %
|
|
123 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities
interest income
|
e
|
|
$
81,617
|
|
$
40,448
|
|
$
18,290
|
|
$
18,261
|
|
$
17,340
|
|
102 %
|
|
371 %
|
Less: Acquired taxable
securities accretion - rate related
|
f
|
|
34,801
|
|
15,356
|
|
—
|
|
—
|
|
—
|
|
127 %
|
|
nm
|
Adjusted Taxable
securities interest income
|
g=e-f
|
|
$
46,816
|
|
$
25,092
|
|
$
18,290
|
|
$
18,261
|
|
$
17,340
|
|
87 %
|
|
170 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-taxable
securities interest income (1)
|
h
|
|
$
8,010
|
|
$
4,068
|
|
$
1,571
|
|
$
1,651
|
|
$
1,721
|
|
97 %
|
|
365 %
|
Less: Acquired
non-taxable securities accretion - rate related
|
i
|
|
2,274
|
|
901
|
|
—
|
|
—
|
|
—
|
|
152 %
|
|
nm
|
Adjusted Taxable
securities interest income (1)
|
j=h-i
|
|
$
5,736
|
|
$
3,167
|
|
$
1,571
|
|
$
1,651
|
|
$
1,721
|
|
81 %
|
|
233 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
(1)
|
k
|
|
$ 676,922
|
|
$ 476,622
|
|
$ 352,530
|
|
$ 303,857
|
|
$
256,654
|
|
42 %
|
|
164 %
|
Less: Acquired loan
and securities accretion - rate related
|
l=b+f+i
|
|
67,623
|
|
28,089
|
|
387
|
|
789
|
|
1,069
|
|
141 %
|
|
nm
|
Less: Acquired loan
accretion - credit related
|
c
|
|
7,100
|
|
3,806
|
|
—
|
|
—
|
|
—
|
|
87 %
|
|
nm
|
Adjusted interest
income (1)
|
m=k-l-c
|
|
$ 602,199
|
|
$ 444,727
|
|
$ 352,143
|
|
$ 303,068
|
|
$
255,585
|
|
35 %
|
|
136 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits interest expense
|
n
|
|
$ 100,408
|
|
$
63,613
|
|
$
31,174
|
|
$
9,090
|
|
$
4,015
|
|
58 %
|
|
nm
|
Less: Acquired deposit
accretion
|
o
|
|
(280)
|
|
(93)
|
|
—
|
|
—
|
|
—
|
|
201 %
|
|
nm
|
Adjusted
interest-bearing deposits interest expense
|
p=n-o
|
|
$ 100,688
|
|
$
63,706
|
|
$
31,174
|
|
$
9,090
|
|
$
4,015
|
|
58 %
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
q
|
|
$ 191,754
|
|
$ 101,253
|
|
$
46,768
|
|
$
15,924
|
|
$
8,132
|
|
89 %
|
|
nm
|
Less: Acquired
interest-bearing liabilities accretion (2)
|
r
|
|
(337)
|
|
(150)
|
|
(57)
|
|
(57)
|
|
(57)
|
|
125 %
|
|
491 %
|
Adjusted interest
expense
|
s=q-r
|
|
$ 192,091
|
|
$ 101,403
|
|
$
46,825
|
|
$
15,981
|
|
$
8,189
|
|
89 %
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income
(1)
|
t
|
|
$ 485,168
|
|
$ 375,369
|
|
$ 305,762
|
|
$ 287,933
|
|
$
248,522
|
|
29 %
|
|
95 %
|
Less: Acquired loan,
securities, and interest-bearing liabilities accretion - rate
related
|
u=l-r
|
|
67,286
|
|
27,939
|
|
330
|
|
732
|
|
1,012
|
|
141 %
|
|
nm
|
Less: Acquired loan
accretion - credit related
|
c
|
|
7,100
|
|
3,806
|
|
—
|
|
—
|
|
—
|
|
87 %
|
|
nm
|
Adjusted net
interest income (1)
|
v=t-u-c
|
|
$ 410,782
|
|
$ 343,624
|
|
$ 305,432
|
|
$ 287,201
|
|
$
247,510
|
|
20 %
|
|
66 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans and
leases
|
aa
|
|
37,169,315
|
|
29,998,630
|
|
25,855,556
|
|
24,886,203
|
|
23,550,796
|
|
24 %
|
|
58 %
|
Average taxable
securities
|
ab
|
|
8,656,147
|
|
4,960,966
|
|
3,042,044
|
|
3,271,185
|
|
3,410,091
|
|
74 %
|
|
154 %
|
Average non-taxable
securities
|
ac
|
|
865,278
|
|
437,020
|
|
200,825
|
|
212,847
|
|
220,327
|
|
98 %
|
|
293 %
|
Average
interest-earning assets
|
ad
|
|
49,442,518
|
|
37,055,705
|
|
30,305,129
|
|
29,437,103
|
|
29,108,988
|
|
33 %
|
|
70 %
|
Average
interest-bearing deposits
|
ae
|
|
24,494,717
|
|
19,496,551
|
|
16,103,984
|
|
15,350,390
|
|
15,308,058
|
|
26 %
|
|
60 %
|
Average
interest-bearing liabilities
|
af
|
|
31,372,416
|
|
22,548,264
|
|
17,668,730
|
|
16,359,575
|
|
16,220,936
|
|
39 %
|
|
93 %
|
|
|
(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 closing.
|
Columbia Banking
System, Inc.
|
GAAP to Non-GAAP
Reconciliation - Continued
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
%
Change
|
($ in
thousands)
|
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Jun 30,
2022
|
|
Seq.
Quarter
|
|
Year
over
Year
|
Average yield on
loans and leases
|
a /
aa
|
|
5.95 %
|
|
5.55 %
|
|
4.92 %
|
|
4.41 %
|
|
3.94 %
|
|
0.40
|
|
2.01
|
Less: Acquired loan
accretion - rate related (2),(3)
|
b /
aa
|
|
0.33 %
|
|
0.16 %
|
|
0.01 %
|
|
0.01 %
|
|
0.02 %
|
|
0.17
|
|
0.31
|
Less: Acquired loan
accretion - credit related (3)
|
c /
aa
|
|
0.08 %
|
|
0.05 %
|
|
— %
|
|
— %
|
|
— %
|
|
0.03
|
|
0.08
|
Adjusted average
yield on loans and leases
|
d /
aa
|
|
5.54 %
|
|
5.34 %
|
|
4.91 %
|
|
4.40 %
|
|
3.92 %
|
|
0.20
|
|
1.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average yield on
taxable securities
|
e /
ab
|
|
3.77 %
|
|
3.26 %
|
|
2.40 %
|
|
2.23 %
|
|
2.03 %
|
|
0.51
|
|
1.74
|
Less: Acquired taxable
securities accretion - rate related
|
f /
ab
|
|
1.61 %
|
|
1.26 %
|
|
— %
|
|
— %
|
|
— %
|
|
0.35
|
|
1.61
|
Adjusted average
yield on taxable securities
|
g /
ab
|
|
2.16 %
|
|
2.00 %
|
|
2.40 %
|
|
2.23 %
|
|
2.03 %
|
|
0.16
|
|
0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average yield on
non-taxable securities (1)
|
h /
ac
|
|
3.70 %
|
|
3.72 %
|
|
3.13 %
|
|
3.10 %
|
|
3.13 %
|
|
(0.02)
|
|
0.57
|
Less: Acquired
non-taxable securities accretion - rate related
|
i /
ac
|
|
1.05 %
|
|
0.84 %
|
|
— %
|
|
— %
|
|
— %
|
|
0.21
|
|
1.05
|
Adjusted yield on
non-taxable securities (1)
|
j /
ac
|
|
2.65 %
|
|
2.88 %
|
|
3.13 %
|
|
3.10 %
|
|
3.13 %
|
|
(0.23)
|
|
(0.48)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average yield on
interest-earning assets (1)
|
k /
ad
|
|
5.48 %
|
|
5.19 %
|
|
4.62 %
|
|
4.10 %
|
|
3.53 %
|
|
0.29
|
|
1.95
|
Less: Acquired loan
and securities accretion - rate related
|
l /
ad
|
|
0.55 %
|
|
0.31 %
|
|
0.01 %
|
|
0.01 %
|
|
0.01 %
|
|
0.24
|
|
0.54
|
Less: Acquired loan
accretion - credit related
|
c /
ad
|
|
0.06 %
|
|
0.04 %
|
|
— %
|
|
— %
|
|
— %
|
|
0.02
|
|
0.06
|
Adjusted average
yield on interest-earning assets (1)
|
m /
ad
|
|
4.87 %
|
|
4.84 %
|
|
4.61 %
|
|
4.09 %
|
|
3.52 %
|
|
0.03
|
|
1.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate on
interest-bearing deposits
|
n /
ae
|
|
1.64 %
|
|
1.32 %
|
|
0.77 %
|
|
0.23 %
|
|
0.11 %
|
|
0.32
|
|
1.53
|
Less: Acquired deposit
accretion
|
o /
ae
|
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
—
|
|
—
|
Adjusted average
rate on interest-bearing deposits
|
p /
ae
|
|
1.64 %
|
|
1.32 %
|
|
0.77 %
|
|
0.23 %
|
|
0.11 %
|
|
0.32
|
|
1.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate on
interest-bearing liabilities
|
q /
af
|
|
2.45 %
|
|
1.82 %
|
|
1.05 %
|
|
0.39 %
|
|
0.20 %
|
|
0.63
|
|
2.25
|
Less: Acquired
interest-bearing liabilities accretion (2)
|
r /
af
|
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
—
|
|
—
|
Adjusted average
rate on interest-bearing liabilities
|
s /
af
|
|
2.45 %
|
|
1.82 %
|
|
1.05 %
|
|
0.39 %
|
|
0.20 %
|
|
0.63
|
|
2.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(1)
|
t /
ad
|
|
3.93 %
|
|
4.08 %
|
|
4.01 %
|
|
3.88 %
|
|
3.41 %
|
|
(0.15)
|
|
0.52
|
Less: Acquired loan,
securities, and interest-bearing liabilities accretion - rate
related
|
u /
ad
|
|
0.55 %
|
|
0.31 %
|
|
— %
|
|
0.01 %
|
|
0.01 %
|
|
0.24
|
|
0.54
|
Less: Acquired loan
accretion - credit related
|
c /
ad
|
|
0.06 %
|
|
0.04 %
|
|
— %
|
|
— %
|
|
— %
|
|
0.02
|
|
0.06
|
Adjusted net
interest margin (1)
|
v /
ad
|
|
3.32 %
|
|
3.73 %
|
|
4.01 %
|
|
3.87 %
|
|
3.40 %
|
|
(0.41)
|
|
(0.08)
|
|
|
(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 closing.
|
Columbia Banking
System, Inc.
|
GAAP to Non-GAAP
Reconciliation - Continued
|
(Unaudited)
|
|
|
|
Six Months
Ended
|
|
|
($ in
thousands)
|
|
|
Jun 30,
2023
|
|
Jun 30,
2022
|
|
Year
over Year
|
Loans and leases
interest income
|
a
|
|
$
964,723
|
|
$
444,074
|
|
117 %
|
Less: Acquired loan
accretion - rate related (2), (3)
|
b
|
|
42,380
|
|
2,501
|
|
nm
|
Less: Acquired loan
accretion - credit related (3)
|
c
|
|
10,906
|
|
—
|
|
nm
|
Adjusted loans and
leases interest income
|
d=a-b-c
|
|
$
911,437
|
|
$
441,573
|
|
106 %
|
|
|
|
|
|
|
|
|
Taxable securities
interest income
|
e
|
|
$
122,065
|
|
$
36,151
|
|
238 %
|
Less: Acquired taxable
securities accretion - rate related
|
f
|
|
50,157
|
|
—
|
|
nm
|
Adjusted Taxable
securities interest income
|
g=e-f
|
|
$
71,908
|
|
$
36,151
|
|
99 %
|
|
|
|
|
|
|
|
|
Non-taxable
securities interest income (1)
|
h
|
|
$
12,078
|
|
$
3,447
|
|
250 %
|
Less: Acquired
non-taxable securities accretion - rate related
|
i
|
|
3,175
|
|
—
|
|
nm
|
Adjusted Taxable
securities interest income (1)
|
j=h-i
|
|
$
8,903
|
|
$
3,447
|
|
158 %
|
|
|
|
|
|
|
|
|
Interest income
(1)
|
k
|
|
$
1,153,544
|
|
$
492,948
|
|
134 %
|
Less: Acquired loan
and securities accretion - rate related
|
l=b+f+i
|
|
95,712
|
|
2,501
|
|
nm
|
Less: Acquired loan
accretion - credit related
|
c
|
|
10,906
|
|
—
|
|
nm
|
Adjusted interest
income (1)
|
m=k-l-c
|
|
$
1,046,926
|
|
$
490,447
|
|
113 %
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits interest expense
|
n
|
|
$
164,021
|
|
$
7,931
|
|
nm
|
Less: Acquired deposit
accretion
|
o
|
|
(373)
|
|
—
|
|
nm
|
Adjusted
interest-bearing deposits interest expense
|
p=n-o
|
|
$
164,394
|
|
$
7,931
|
|
nm
|
|
|
|
|
|
|
|
|
Interest
expense
|
q
|
|
$
293,007
|
|
$
15,309
|
|
nm
|
Less: Acquired
interest-bearing liabilities accretion (2)
|
r
|
|
(487)
|
|
(114)
|
|
327 %
|
Adjusted interest
expense
|
s=q-r
|
|
$
293,494
|
|
$
15,423
|
|
nm
|
|
|
|
|
|
|
|
|
Net Interest Income
(1)
|
t
|
|
$
860,537
|
|
$
477,639
|
|
80 %
|
Less: Acquired loan,
securities, and interest-bearing liabilities accretion - rate
related
|
u=l-r
|
|
95,225
|
|
2,387
|
|
nm
|
Less: Acquired loan
accretion - credit related
|
c
|
|
10,906
|
|
—
|
|
nm
|
Adjusted net
interest income (1)
|
v=t-u-c
|
|
$
754,406
|
|
$
475,252
|
|
59 %
|
|
|
|
|
|
|
|
|
Average loans and
leases
|
aa
|
|
33,603,781
|
|
23,061,173
|
|
46 %
|
Average taxable
securities
|
ab
|
|
6,818,764
|
|
3,533,930
|
|
93 %
|
Average non-taxable
securities
|
ac
|
|
652,332
|
|
227,218
|
|
187 %
|
Average
interest-earning assets
|
ad
|
|
43,283,329
|
|
29,235,926
|
|
48 %
|
Average
interest-bearing deposits
|
ae
|
|
22,058,850
|
|
15,459,597
|
|
43 %
|
Average
interest-bearing liabilities
|
af
|
|
27,034,125
|
|
16,353,064
|
|
65 %
|
|
|
(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 closing.
|
Columbia Banking
System, Inc.
|
GAAP to Non-GAAP
Reconciliation - Continued
|
(Unaudited)
|
|
|
|
Six Months
Ended
|
|
|
($ in
thousands)
|
|
|
Jun 30,
2023
|
|
Jun 30,
2022
|
|
Year
over Year
|
Average yield on
loans and leases
|
a /
aa
|
|
5.77 %
|
|
3.86 %
|
|
1.91
|
Less: Acquired loan
accretion - rate related (2),(3)
|
b /
aa
|
|
0.25 %
|
|
0.02 %
|
|
0.23
|
Less: Acquired loan
accretion - credit related (3)
|
c /
aa
|
|
0.07 %
|
|
— %
|
|
0.07
|
Adjusted average
yield on loans and leases
|
d /
aa
|
|
5.45 %
|
|
3.84 %
|
|
1.61
|
|
|
|
|
|
|
|
|
Average yield on
taxable securities
|
e /
ab
|
|
3.58 %
|
|
2.05 %
|
|
1.53
|
Less: Acquired taxable
securities accretion - rate related
|
f /
ab
|
|
1.48 %
|
|
— %
|
|
1.48
|
Adjusted average
yield on taxable securities
|
g /
ab
|
|
2.10 %
|
|
2.05 %
|
|
0.05
|
|
|
|
|
|
|
|
|
Average yield on
non-taxable securities (1)
|
h /
ac
|
|
3.70 %
|
|
3.03 %
|
|
0.67
|
Less: Acquired
non-taxable securities accretion - rate related
|
i /
ac
|
|
0.98 %
|
|
— %
|
|
0.98
|
Adjusted yield on
non-taxable securities (1)
|
j /
ac
|
|
2.72 %
|
|
3.03 %
|
|
(0.31)
|
|
|
|
|
|
|
|
|
Average yield on
interest-earning assets (1)
|
k /
ad
|
|
5.35 %
|
|
3.38 %
|
|
1.97
|
Less: Acquired loan
and securities accretion - rate related
|
l /
ad
|
|
0.45 %
|
|
0.02 %
|
|
0.43
|
Less: Acquired loan
accretion - credit related
|
c /
ad
|
|
0.05 %
|
|
— %
|
|
0.05
|
Adjusted average
yield on interest-earning assets (1)
|
m /
ad
|
|
4.85 %
|
|
3.36 %
|
|
1.49
|
|
|
|
|
|
|
|
|
Average rate on
interest-bearing deposits
|
n /
ae
|
|
1.50 %
|
|
0.10 %
|
|
1.40
|
Less: Acquired deposit
accretion
|
o /
ae
|
|
— %
|
|
— %
|
|
—
|
Adjusted average
rate on interest-bearing deposits
|
p /
ae
|
|
1.50 %
|
|
0.10 %
|
|
1.40
|
|
|
|
|
|
|
|
|
Average rate on
interest-bearing liabilities
|
q /
af
|
|
2.19 %
|
|
0.19 %
|
|
2.00
|
Less: Acquired
interest-bearing liabilities accretion (2)
|
r /
af
|
|
— %
|
|
— %
|
|
—
|
Adjusted average
rate on interest-bearing liabilities
|
s /
af
|
|
2.19 %
|
|
0.19 %
|
|
2.00
|
|
|
|
|
|
|
|
|
Net interest margin
(1)
|
t /
ad
|
|
3.99 %
|
|
3.28 %
|
|
0.71
|
Less: Acquired loan,
securities, and interest-bearing liabilities accretion - rate
related
|
u /
ad
|
|
0.44 %
|
|
0.02 %
|
|
0.42
|
Less: Acquired loan
accretion - credit related
|
c /
ad
|
|
0.05 %
|
|
— %
|
|
0.05
|
Adjusted net
interest margin (1)
|
v /
ad
|
|
3.50 %
|
|
3.26 %
|
|
0.24
|
|
|
(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 closing.
|
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SOURCE Columbia Banking System, Inc.