Third Quarter 2023 Results
- Net income of $136 million, or
$0.65 per diluted common share
- Operating net income of $164
million, or $0.79 per diluted
common share1
- Consolidated asset balances of $52
billion at quarter end
- Loan balances of $37 billion and
deposit balances of $42 billion at
quarter end
- Estimated CET1 and total capital ratios of 9.4% and 11.5% at
quarter end
TACOMA,
Wash., Oct. 18, 2023 /PRNewswire/ --
$0.65
|
|
$0.79
|
|
$22.21
|
|
$14.22
|
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 remain
focused on their customers and communities as we continue to drive
balanced growth for the organization," said Clint Stein, President
and CEO. "We are back to business as usual, and our third quarter
results highlight stabilizing customer deposit trends,
relationship-driven growth in our loan portfolio and customer-based
fee income, and a smaller impact from merger-related expense that
affect our reported results. We achieved $140 million in annualized
net merger-related cost savings through quarter end, surpassing our
originally announced target of $135 million despite continued
investment in our growing franchise, which includes the opening of
our first branch in Utah during the third quarter. Our
talented associates, expanding footprint, and customer-focused
business model enable us to continue to win business and drive
shareholder value."
|
–Clint Stein,
President and CEO of Columbia Banking System, Inc.
|
3Q23 HIGHLIGHTS
(COMPARED TO 2Q23)
|
|
|
|
|
Net Interest
Income and
NIM
|
•
Net interest income decreased by $3
million or 1% on a linked-quarter basis as the increase in interest
income due to higher yields was more than offset by higher funding
costs.
|
|
•
Net interest margin was 3.91%, down 2
basis points from the prior quarter. The second full quarter as a
combined organization, higher customer balances, and consistent
purchase accounting trends contributed to net interest margin
stabilization between quarters.
|
|
|
|
|
Non-Interest
Income and
Expense
|
•
Non-interest income increased by $4
million due primarily to higher customer-related fee income and
loan gain-on-sale income as well as a lower loss due to cumulative
non-merger fair value accounting and hedges.
|
|
•
Non-interest expense decreased by $24
million due to the realization of cost savings and lower
merger-related expense.
|
|
|
|
|
Credit
Quality
|
•
Net charge-offs were 0.25% of average
loans and leases (annualized) compared to 0.30% in the prior
quarter. Charge-off activity remains centered in the FinPac
portfolio.
|
|
•
Provision expense of $37 million
relates to portfolio mix changes and credit migration
trends.
|
|
•
Non-performing assets to total assets was
0.20% compared to 0.15% at June 30, 2023.
|
|
|
|
|
Capital
|
•
Estimated total risk-based capital ratio
of 11.5% and estimated common equity tier 1 risk-based capital
ratio of 9.4%.
|
|
•
Declared a quarterly cash dividend of
$0.36 per common share on August 14, 2023, which was paid September
11, 2023.
|
|
|
|
|
Notable
items
|
•
Sold $159 million in non-relationship
jumbo residential mortgage loans that were marked to fair value at
merger close.
|
|
•
Completed the sale of approximately
one-third of the MSR portfolio.
|
|
•
Incurred $19 million in merger-related
expense.
|
|
3Q23 KEY FINANCIAL
DATA
|
|
|
|
|
|
|
PERFORMANCE
METRICS
|
3Q23
|
|
2Q23
|
|
3Q22
|
Return on average
assets
|
1.02 %
|
|
1.00 %
|
|
1.09 %
|
Return on average
common
equity
|
11.07 %
|
|
10.84 %
|
|
12.99 %
|
Return on average
tangible
common equity 1
|
16.93 %
|
|
16.63 %
|
|
13.02 %
|
Operating return on
average
assets 1
|
1.23 %
|
|
1.27 %
|
|
1.33 %
|
Operating return on
average
common equity 1
|
13.40 %
|
|
13.77 %
|
|
15.86 %
|
Operating return on
average
tangible common equity 1
|
20.48 %
|
|
21.13 %
|
|
15.90 %
|
Net interest
margin
|
3.91 %
|
|
3.93 %
|
|
3.88 %
|
Efficiency
ratio
|
57.82 %
|
|
62.60 %
|
|
56.07 %
|
|
|
|
|
|
|
INCOME
STATEMENT
($ in 000s, excl. per
share data)
|
3Q23
|
|
2Q23
|
|
3Q22
|
Net interest
income
|
$480,875
|
|
$483,975
|
|
$287,604
|
Provision for credit
losses
|
$36,737
|
|
$16,014
|
|
$27,572
|
Non-interest
income
|
$43,981
|
|
$39,678
|
|
$29,445
|
Non-interest
expense
|
$304,147
|
|
$328,559
|
|
$177,964
|
Pre-provision net
revenue 1
|
$220,709
|
|
$195,094
|
|
$139,085
|
Operating pre-provision
net
revenue1
|
$258,687
|
|
$243,114
|
|
$163,793
|
Earnings per common
share -
diluted 2
|
$0.65
|
|
$0.64
|
|
$0.65
|
Operating earnings per
common
share - diluted 1,2
|
$0.79
|
|
$0.81
|
|
$0.79
|
Dividends paid per
share 2
|
$0.36
|
|
$0.36
|
|
$0.35
|
|
|
|
|
|
|
BALANCE
SHEET
|
3Q23
|
|
2Q23
|
|
3Q22
|
Total assets
|
$52.0B
|
|
$53.6B
|
|
$31.5B
|
Loans and
leases
|
$37.2B
|
|
$37.0B
|
|
$25.5B
|
Total
deposits
|
$41.6B
|
|
$40.8B
|
|
$26.8B
|
Book value per common
share 2
|
$22.21
|
|
$23.16
|
|
$18.69
|
Tangible book value per
share1,2
|
$14.22
|
|
$15.02
|
|
$18.65
|
____________________
|
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.
|
Organizational Update
Columbia Banking System, Inc.
("Columbia", "we", or "our") has
completed substantially all integration priorities, driving the
realization of $140 million in
annualized net merger-related cost-savings as of September 30, 2023, outpacing the $135 million target communicated when the
combination was announced. Further, Umpqua Bank, the primary
subsidiary of Columbia, continued
to expand its presence in Utah
with the opening of its first branch in the state during 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, second, and third quarters of 2023
and the nine months ended September 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
$481 million for the third quarter of
2023, down $3 million from the prior
quarter. The slight decline reflects higher interest income given
expanded earning asset yields that were more than offset by higher
funding costs.
Columbia's net interest margin
was 3.91% for the third quarter of 2023, down 2 basis points from
3.93% for the second quarter of 2023. The second full quarter as a
combined organization, higher customer balances, and consistent
purchase accounting trends contributed to net interest margin
stabilization between quarters. The cost of interest-bearing
deposits increased 37 basis points on a linked-quarter basis to
2.01% for the third quarter of 2023, which compares to 2.18% for
the month of September and 2.27% at September 30, 2023. Deposit costs were impacted
by the decision to replace a portion of maturing FHLB advances with
brokered deposits during the third quarter, which increased our
cost of deposits but was fairly neutral to our cost of
interest-bearing liabilities. Columbia's cost of interest-bearing
liabilities increased 27 basis points on a linked-quarter basis to
2.72% for the third quarter of 2023, which compares to 2.77% for
the month of September and 2.78% at September 30, 2023. Please refer to the Q3 2023
Earnings Presentation for additional net interest margin change
details and interest rate sensitivity information as well as to our
non-GAAP disclosures in this press release for the impact of
purchase accounting accretion and amortization on individual line
items.
Non-interest Income
Non-interest income was
$44 million for the third quarter of
2023, up $4 million from the prior
quarter. Higher customer-related fee income, loan gain-on-sale
income from select portfolio sales, and a smaller loss related to
fair value adjustments and mortgage servicing rights ("MSR")
hedging activity drove the increase. A net fair value loss of
$15 million in the third quarter
compares to a net fair value loss of $16
million in the second quarter, as detailed in our non-GAAP
disclosures. As previously communicated, Columbia entered an agreement to sell
approximately one-third of its MSR portfolio that relates to a
non-relationship component of the serviced loan portfolio. The
transaction closed in late September without any income statement
impact.
Non-interest Expense
Non-interest expense was
$304 million for the third quarter of
2023, down $24 million from the prior
quarter level. The decrease reflects the realization of cost
savings as well as an $11 million
decline in merger-related expense, which were $19 million in the third quarter. Please refer to
the Q3 2023 Earnings Presentation for additional expense details,
including an update on realized merger-related cost-savings through
September 30, 2023.
Balance Sheet
Total consolidated assets were
$52.0 billion as of
September 30, 2023, compared to $53.6
billion as of June 30, 2023. Cash and cash equivalents
was $2.4 billion as of
September 30, 2023, a decrease of $1.0
billion relative to June 30, 2023. We reduced our cash
position during the third quarter given stabilizing industry trends
and ample sources of available liquidity. Excess cash was used to
pay off maturing FHLB advances, which declined to $4.0 billion as of September 30, 2023, compared to $6.3 billion as of June 30, 2023. Including
secured off-balance sheet lines of credit, total available
liquidity was $19.1 billion as of
September 30, 2023, representing 37% of total assets, 46% of
total deposits, and 142% of uninsured deposits. Please refer to the
Q3 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 $8.5 billion as
of September 30, 2023, a decrease of $494 million relative to June 30, 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 Q3 2023 Earnings Presentation for additional details related
to our securities portfolio.
Gross loans and leases were $37.2
billion as of September 30, 2023, an increase of
$121 million relative to
June 30, 2023, as organic growth during the quarter more than
offset the sale of $159 million in
non-relationship jumbo residential mortgage loans that were marked
to fair value at merger close. "We continued to selectively prune
the portfolio during the third quarter, bringing the transfer and
sale of loans that were transactional in nature to
approximately $650 million over the past two quarters,"
commented Tory Nixon, President of
Umpqua Bank. "Higher outstanding commercial line balances and other
relationship-driven expansion contributed to 3% annualized loan
growth in the third quarter when loan sales are excluded." Please
refer to the Q3 2023 Earnings Presentation for additional details
related to our loan portfolio, which include underwriting
characteristics, the composition of our commercial portfolios, and
disclosure related to our office portfolio.
Total deposits were $41.6 billion
as of September 30, 2023, an increase of $789 million relative to June 30, 2023.
"Customer deposit balances stabilized during the third quarter,
increasing slightly between September and June," stated Mr. Nixon.
"While market liquidity tightening, the impact of inflation on
customer spending, and businesses' use of cash continue to impact
our deposit flows, our teams' focus on balancing deposit generation
alongside other growth resulted in net deposit increases throughout
many business lines." Please refer to the Q3 2023 Earnings
Presentation for additional details related to deposit
characteristics and flows.
Credit Quality
The allowance for credit losses was
$438 million, or 1.18% of loans and
leases, as of September 30, 2023, compared to $424 million, or 1.15% of loans and leases, as of
June 30, 2023. The provision for credit losses was
$37 million for the third quarter of
2023 and reflects portfolio mix changes and credit migration
trends. Please refer to the Q3 2023 Earnings Presentation for
additional details related to the allowance for credit losses and
other credit trends.
Net charge-offs were 0.25% of average loans and leases
(annualized) for the third quarter of 2023, compared to 0.30% for
the second quarter of 2023. Net charge-off activity continued to be
centered in the FinPac portfolio, which experienced a decline in
charge-offs. Bank charge-off activity remained low at 0.01% of
average bank loans. As of September 30, 2023, non-performing
assets were $106 million, or 0.20% of
total assets, compared to $80 million, or 0.15% as of
June 30, 2023.
Capital
As of September 30, 2023, Columbia's book value per common share
decreased to $22.21, compared to
$23.16 at June 30, 2023. The
linked-quarter change in book value primarily reflects a change in
accumulated other comprehensive (loss) income ("AOCI") to
$(680) million at September 30,
2023, compared to $(419) million at
the prior quarter-end. The change in AOCI is due primarily to an
increase in the tax-effected net unrealized loss on available for
sale securities to $650 million as of September 30, 2023, compared to $403 million as of June
30, 2023. Tangible book value per common
share[3] decreased to $14.22,
compared to $15.02 at June 30,
2023.
Columbia's estimated total
risk-based capital ratio was 11.5% and its estimated common equity
tier 1 risk-based capital ratio was 9.4% as of September 30,
2023, compared to 11.3% and 9.2%, respectively, at June 30, 2023. Columbia remains above current
"well-capitalized" regulatory minimums. "We continued to build
capital during the quarter through organic earnings generation and
the realization of loan and investment securities discount
accretion," stated Ron Farnsworth,
Chief Financial Officer of Columbia. "We expect our capital position to
continue to build over time, supporting our growing franchise and
increasing flexibility for capital return." The regulatory capital
ratios as of September 30, 2023 are estimates, pending
completion and filing of Columbia's regulatory reports.
Earnings Presentation and Conference Call
Information
Columbia's Q3
2023 Earnings Presentation provides additional disclosure. A copy
will be available on our investor relations page:
www.columbiabankingsystem.com.
Columbia will host its third
quarter 2023 earnings conference call on October 18, 2023, at 2:00
p.m. PT (5:00 p.m. ET). During
the call, Columbia's management
will provide an update on recent activities and discuss its third
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/BIcd18f9ce2ec34fdf915aa619af3a3d01
Join the
audiocast: https://edge.media-server.com/mmc/p/ih23hqkg/
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 and stability
of banks; changes in interest rates that could significantly reduce
net interest income and negatively affect asset yields and
valuations and funding sources; changes in the scope and cost of
FDIC insurance and other coverage; our ability to successfully
implement efficiency and operational excellence initiatives; our
ability to successfully develop and market new products and
technology; changes in laws or regulations; any failure to realize
the anticipated benefits of the 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.
____________________
|
3
|
"Non-GAAP" financial
measure. See GAAP to Non-GAAP Reconciliation for the comparable
GAAP measurement.
|
TABLE INDEX
|
|
Page
|
Consolidated Statements
of Operations
|
7
|
Consolidated Balance
Sheets
|
8
|
Financial
Highlights
|
10
|
Loan & Lease
Portfolio Balances and Mix
|
11
|
Deposit Portfolio
Balances and Mix
|
13
|
Credit Quality -
Non-performing Assets
|
14
|
Credit Quality -
Allowance for Credit Losses
|
15
|
Consolidated Average
Balance Sheets, Net Interest Income, and Yields/Rates
|
17
|
Residential Mortgage
Banking Activity
|
19
|
GAAP to Non-GAAP
Reconciliation
|
21
|
Columbia Banking
System, Inc.
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
Quarter
Ended
|
|
%
Change
|
($ in thousands,
except per share data)
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Seq. Quarter
|
|
Year
over
Year
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and
leases
|
$ 569,670
|
|
$ 552,679
|
|
$ 413,525
|
|
$ 322,350
|
|
$ 278,830
|
|
3 %
|
|
104 %
|
Interest and dividends
on investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
80,066
|
|
79,036
|
|
39,729
|
|
18,108
|
|
18,175
|
|
1 %
|
|
341 %
|
Exempt from federal
income tax
|
6,929
|
|
6,817
|
|
3,397
|
|
1,288
|
|
1,322
|
|
2 %
|
|
424 %
|
Dividends
|
4,941
|
|
2,581
|
|
719
|
|
182
|
|
86
|
|
91 %
|
|
nm
|
Temporary investments
and interest bearing deposits
|
34,407
|
|
34,616
|
|
18,581
|
|
10,319
|
|
5,115
|
|
(1) %
|
|
nm
|
Total interest
income
|
696,013
|
|
675,729
|
|
475,951
|
|
352,247
|
|
303,528
|
|
3 %
|
|
129 %
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
126,974
|
|
100,408
|
|
63,613
|
|
31,174
|
|
9,090
|
|
26 %
|
|
nm
|
Securities sold under
agreement to repurchase and
federal funds purchased
|
1,220
|
|
1,071
|
|
406
|
|
323
|
|
545
|
|
14 %
|
|
124 %
|
Borrowings
|
77,080
|
|
81,004
|
|
28,764
|
|
8,023
|
|
798
|
|
(5) %
|
|
nm
|
Junior and other
subordinated debentures
|
9,864
|
|
9,271
|
|
8,470
|
|
7,248
|
|
5,491
|
|
6 %
|
|
80 %
|
Total interest
expense
|
215,138
|
|
191,754
|
|
101,253
|
|
46,768
|
|
15,924
|
|
12 %
|
|
nm
|
Net interest
income
|
480,875
|
|
483,975
|
|
374,698
|
|
305,479
|
|
287,604
|
|
(1) %
|
|
67 %
|
Provision for credit
losses
|
36,737
|
|
16,014
|
|
105,539
|
|
32,948
|
|
27,572
|
|
129 %
|
|
33 %
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposits
|
17,410
|
|
16,454
|
|
14,312
|
|
12,139
|
|
12,632
|
|
6 %
|
|
38 %
|
Card-based
fees
|
15,674
|
|
13,435
|
|
11,561
|
|
9,017
|
|
9,115
|
|
17 %
|
|
72 %
|
Financial services and
trust revenue
|
4,651
|
|
4,512
|
|
1,297
|
|
25
|
|
27
|
|
3 %
|
|
nm
|
Residential mortgage
banking revenue (loss), net
|
7,103
|
|
(2,342)
|
|
7,816
|
|
(1,812)
|
|
17,341
|
|
nm
|
|
(59) %
|
Gain on sale of debt
securities, net
|
4
|
|
—
|
|
—
|
|
—
|
|
—
|
|
nm
|
|
nm
|
(Loss) gain on equity
securities, net
|
(2,055)
|
|
(697)
|
|
2,416
|
|
284
|
|
(2,647)
|
|
195 %
|
|
(22) %
|
Gain on loan and lease
sales, net
|
1,871
|
|
442
|
|
940
|
|
1,531
|
|
1,525
|
|
323 %
|
|
23 %
|
BOLI income
|
4,440
|
|
4,063
|
|
2,790
|
|
2,033
|
|
2,023
|
|
9 %
|
|
119 %
|
Other (loss)
income
|
(5,117)
|
|
3,811
|
|
13,603
|
|
11,662
|
|
(10,571)
|
|
(234) %
|
|
(52) %
|
Total non-interest
income
|
43,981
|
|
39,678
|
|
54,735
|
|
34,879
|
|
29,445
|
|
11 %
|
|
49 %
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
159,041
|
|
163,398
|
|
136,092
|
|
107,982
|
|
109,164
|
|
(3) %
|
|
46 %
|
Occupancy and
equipment, net
|
43,070
|
|
50,550
|
|
41,700
|
|
34,021
|
|
35,042
|
|
(15) %
|
|
23 %
|
Intangible
amortization
|
29,879
|
|
35,553
|
|
12,660
|
|
1,019
|
|
1,025
|
|
(16) %
|
|
nm
|
FDIC
assessments
|
11,200
|
|
11,579
|
|
6,113
|
|
3,487
|
|
3,007
|
|
(3) %
|
|
272 %
|
Merger related
expense
|
18,938
|
|
29,649
|
|
115,898
|
|
11,637
|
|
769
|
|
(36) %
|
|
nm
|
Other
expenses
|
42,019
|
|
37,830
|
|
30,355
|
|
36,836
|
|
28,957
|
|
11 %
|
|
45 %
|
Total non-interest
expense
|
304,147
|
|
328,559
|
|
342,818
|
|
194,982
|
|
177,964
|
|
(7) %
|
|
71 %
|
Income (loss) before
provision (benefit) for income taxes
|
183,972
|
|
179,080
|
|
(18,924)
|
|
112,428
|
|
111,513
|
|
3 %
|
|
65 %
|
Provision (benefit) for
income taxes
|
48,127
|
|
45,703
|
|
(4,886)
|
|
29,464
|
|
27,473
|
|
5 %
|
|
75 %
|
Net income
(loss)
|
$ 135,845
|
|
$ 133,377
|
|
$ (14,038)
|
|
$
82,964
|
|
$
84,040
|
|
2 %
|
|
62 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic
shares outstanding (1)
|
208,070
|
|
207,977
|
|
156,383
|
|
129,321
|
|
129,319
|
|
0 %
|
|
61 %
|
Weighted average
diluted shares outstanding (1)
|
208,645
|
|
208,545
|
|
156,383
|
|
129,801
|
|
129,733
|
|
0 %
|
|
61 %
|
Earnings (loss) per
common share – basic (1)
|
$
0.65
|
|
$
0.64
|
|
$
(0.09)
|
|
$
0.64
|
|
$
0.65
|
|
2 %
|
|
0 %
|
Earnings (loss) per
common share – diluted (1)
|
$
0.65
|
|
$
0.64
|
|
$
(0.09)
|
|
$
0.64
|
|
$
0.65
|
|
2 %
|
|
0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
Nine Months
Ended
|
|
%
Change
|
($ in thousands,
except per share data)
|
|
Sep 30,
2023
|
|
Sep 30,
2022
|
|
Year over
Year
|
Interest
income:
|
|
|
|
|
|
|
Loans and
leases
|
|
$
1,535,874
|
|
$
727,908
|
|
111 %
|
Interest and dividends
on investments:
|
|
|
|
|
|
|
Taxable
|
|
198,831
|
|
54,156
|
|
267 %
|
Exempt from federal
income tax
|
|
17,143
|
|
4,063
|
|
322 %
|
Dividends
|
|
8,241
|
|
256
|
|
nm
|
Temporary investments
and interest bearing deposits
|
|
87,604
|
|
9,387
|
|
nm
|
Total interest
income
|
|
1,847,693
|
|
795,770
|
|
132 %
|
Interest
expense:
|
|
|
|
|
|
|
Deposits
|
|
290,995
|
|
17,021
|
|
nm
|
Securities sold under
agreement to repurchase and federal funds purchased
|
|
2,697
|
|
674
|
|
300 %
|
Borrowings
|
|
186,848
|
|
897
|
|
nm
|
Junior and other
subordinated debentures
|
|
27,605
|
|
12,641
|
|
118 %
|
Total interest
expense
|
|
508,145
|
|
31,233
|
|
nm
|
Net interest
income
|
|
1,339,548
|
|
764,537
|
|
75 %
|
Provision for credit
losses
|
|
158,290
|
|
51,068
|
|
210 %
|
Non-interest
income:
|
|
|
|
|
|
|
Service charges on
deposits
|
|
48,176
|
|
36,226
|
|
33 %
|
Card-based
fees
|
|
40,670
|
|
28,353
|
|
43 %
|
Brokerage
revenue
|
|
10,460
|
|
65
|
|
nm
|
Residential mortgage
banking revenue, net
|
|
12,577
|
|
108,671
|
|
(88) %
|
Gain on sale of debt
securities, net
|
|
4
|
|
2
|
|
100 %
|
Loss on equity
securities, net
|
|
(336)
|
|
(7,383)
|
|
(95) %
|
Gain on loan and lease
sales, net
|
|
3,253
|
|
5,165
|
|
(37) %
|
BOLI income
|
|
11,293
|
|
6,220
|
|
82 %
|
Other income
(loss)
|
|
12,297
|
|
(12,670)
|
|
nm
|
Total non-interest
income
|
|
138,394
|
|
164,649
|
|
(16) %
|
Non-interest
expense:
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
458,531
|
|
333,244
|
|
38 %
|
Occupancy and
equipment, net
|
|
135,320
|
|
104,430
|
|
30 %
|
Intangible
amortization
|
|
78,092
|
|
3,076
|
|
nm
|
FDIC
assessments
|
|
28,892
|
|
10,477
|
|
176 %
|
Merger related
expense
|
|
164,485
|
|
5,719
|
|
nm
|
Other
expenses
|
|
110,204
|
|
83,022
|
|
33 %
|
Total non-interest
expense
|
|
975,524
|
|
539,968
|
|
81 %
|
Income before provision
for income taxes
|
|
344,128
|
|
338,150
|
|
2 %
|
Provision for income
taxes
|
|
88,944
|
|
84,362
|
|
5 %
|
Net income
|
|
$
255,184
|
|
$
253,788
|
|
1 %
|
|
|
|
|
|
|
|
Weighted average basic
shares outstanding (1)
|
|
190,997
|
|
129,262
|
|
48 %
|
Weighted average
diluted shares outstanding (1)
|
|
191,546
|
|
129,702
|
|
48 %
|
Earnings per common
share – basic (1)
|
|
$
1.34
|
|
$
1.96
|
|
(32) %
|
Earnings per common
share – diluted (1)
|
|
$
1.33
|
|
$
1.96
|
|
(32) %
|
|
|
|
|
|
|
|
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)
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Seq. Quarter
|
|
Year
over
Year
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
$
492,474
|
|
$
538,653
|
|
$
555,919
|
|
$
327,313
|
|
$
321,447
|
|
(9) %
|
|
53 %
|
Interest bearing cash
and temporary
investments
|
1,911,221
|
|
2,868,563
|
|
3,079,266
|
|
967,330
|
|
1,232,412
|
|
(33) %
|
|
55 %
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity and other, at
fair value
|
73,638
|
|
76,361
|
|
76,532
|
|
72,959
|
|
72,277
|
|
(4) %
|
|
2 %
|
Available for sale, at
fair value
|
8,503,986
|
|
8,998,428
|
|
9,249,600
|
|
3,196,166
|
|
3,136,391
|
|
(5) %
|
|
171 %
|
Held to maturity, at
amortized cost
|
2,344
|
|
2,388
|
|
2,432
|
|
2,476
|
|
2,547
|
|
(2) %
|
|
(8) %
|
Loans held for
sale
|
60,313
|
|
183,633
|
|
49,338
|
|
71,647
|
|
148,275
|
|
(67) %
|
|
(59) %
|
Loans and
leases
|
37,170,598
|
|
37,049,299
|
|
37,091,280
|
|
26,155,981
|
|
25,507,951
|
|
0 %
|
|
46 %
|
Allowance for credit
losses on loans and
leases
|
(416,560)
|
|
(404,603)
|
|
(417,464)
|
|
(301,135)
|
|
(283,065)
|
|
3 %
|
|
47 %
|
Net loans and
leases
|
36,754,038
|
|
36,644,696
|
|
36,673,816
|
|
25,854,846
|
|
25,224,886
|
|
0 %
|
|
46 %
|
Restricted equity
securities
|
168,524
|
|
258,524
|
|
246,525
|
|
47,144
|
|
40,993
|
|
(35) %
|
|
311 %
|
Premises and
equipment, net
|
337,855
|
|
368,698
|
|
375,190
|
|
176,016
|
|
165,305
|
|
(8) %
|
|
104 %
|
Operating lease
right-of-use assets
|
114,220
|
|
119,255
|
|
127,296
|
|
78,598
|
|
81,729
|
|
(4) %
|
|
40 %
|
Goodwill
|
1,029,234
|
|
1,029,234
|
|
1,030,142
|
|
—
|
|
—
|
|
0 %
|
|
nm
|
Other intangible
assets, net
|
636,883
|
|
666,762
|
|
702,315
|
|
4,745
|
|
5,764
|
|
(4) %
|
|
nm
|
Residential mortgage
servicing rights, at
fair value
|
117,640
|
|
172,929
|
|
178,800
|
|
185,017
|
|
196,177
|
|
(32) %
|
|
(40) %
|
Bank owned life
insurance
|
648,232
|
|
643,727
|
|
641,922
|
|
331,759
|
|
329,699
|
|
1 %
|
|
97 %
|
Deferred tax asset,
net
|
469,841
|
|
362,880
|
|
351,229
|
|
132,823
|
|
128,120
|
|
29 %
|
|
267 %
|
Other
assets
|
669,150
|
|
657,365
|
|
653,904
|
|
399,800
|
|
385,938
|
|
2 %
|
|
73 %
|
Total assets
|
$
51,989,593
|
|
$
53,592,096
|
|
$
53,994,226
|
|
$
31,848,639
|
|
$
31,471,960
|
|
(3) %
|
|
65 %
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
bearing
|
$
15,532,948
|
|
$
16,019,408
|
|
$
17,215,781
|
|
$
10,288,849
|
|
$
11,246,358
|
|
(3) %
|
|
38 %
|
Interest
bearing
|
26,091,420
|
|
24,815,509
|
|
24,370,566
|
|
16,776,763
|
|
15,570,749
|
|
5 %
|
|
68 %
|
Total
deposits
|
41,624,368
|
|
40,834,917
|
|
41,586,347
|
|
27,065,612
|
|
26,817,107
|
|
2 %
|
|
55 %
|
Securities sold under
agreements to
repurchase
|
258,383
|
|
294,914
|
|
271,047
|
|
308,769
|
|
383,569
|
|
(12) %
|
|
(33) %
|
Borrowings
|
3,985,000
|
|
6,250,000
|
|
5,950,000
|
|
906,175
|
|
756,214
|
|
(36) %
|
|
427 %
|
Junior subordinated
debentures, at fair value
|
331,545
|
|
312,872
|
|
297,721
|
|
323,639
|
|
325,744
|
|
6 %
|
|
2 %
|
Junior and other
subordinated debentures, at
amortized cost
|
107,952
|
|
108,009
|
|
108,066
|
|
87,813
|
|
87,870
|
|
0 %
|
|
23 %
|
Operating lease
liabilities
|
129,845
|
|
132,099
|
|
140,648
|
|
91,694
|
|
95,512
|
|
(2) %
|
|
36 %
|
Other
liabilities
|
920,338
|
|
831,097
|
|
755,674
|
|
585,111
|
|
588,430
|
|
11 %
|
|
56 %
|
Total
liabilities
|
47,357,431
|
|
48,763,908
|
|
49,109,503
|
|
29,368,813
|
|
29,054,446
|
|
(3) %
|
|
63 %
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
5,798,167
|
|
5,792,792
|
|
5,788,553
|
|
3,450,493
|
|
3,448,007
|
|
0 %
|
|
68 %
|
Accumulated
deficit
|
(485,576)
|
|
(545,842)
|
|
(603,696)
|
|
(543,803)
|
|
(580,933)
|
|
(11) %
|
|
(16) %
|
Accumulated other
comprehensive loss
|
(680,429)
|
|
(418,762)
|
|
(300,134)
|
|
(426,864)
|
|
(449,560)
|
|
62 %
|
|
51 %
|
Total shareholders'
equity
|
4,632,162
|
|
4,828,188
|
|
4,884,723
|
|
2,479,826
|
|
2,417,514
|
|
(4) %
|
|
92 %
|
Total liabilities and
shareholders' equity
|
$
51,989,593
|
|
$
53,592,096
|
|
$
53,994,226
|
|
$
31,848,639
|
|
$
31,471,960
|
|
(3) %
|
|
65 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding at period end (1)
|
208,575
|
|
208,514
|
|
208,429
|
|
129,321
|
|
129,320
|
|
0 %
|
|
61 %
|
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.
|
Financial
Highlights
|
(Unaudited)
|
|
|
Quarter
Ended
|
|
%
Change
|
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Seq.
Quarter
|
|
Year over
Year
|
Per Common Share
Data: (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
(5)
|
|
$
0.36
|
|
$
0.36
|
|
$
0.35
|
|
$
0.35
|
|
$
0.35
|
|
0 %
|
|
3 %
|
Book value
(5)
|
|
$
22.21
|
|
$
23.16
|
|
$
23.44
|
|
$
19.18
|
|
$
18.69
|
|
(4) %
|
|
19 %
|
Tangible book value
(1),(5)
|
|
$
14.22
|
|
$
15.02
|
|
$
15.12
|
|
$
19.14
|
|
$
18.65
|
|
(5) %
|
|
(24) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(2)
|
|
57.82 %
|
|
62.60 %
|
|
79.71 %
|
|
57.24 %
|
|
56.07 %
|
|
(4.78)
|
|
1.75
|
Return on average
assets ("ROAA")
|
|
1.02 %
|
|
1.00 %
|
|
(0.14) %
|
|
1.04 %
|
|
1.09 %
|
|
0.02
|
|
(0.07)
|
Pre-provision net
revenue ("PPNR") ROAA (1)
|
|
1.65 %
|
|
1.46 %
|
|
0.89 %
|
|
1.82 %
|
|
1.80 %
|
|
0.19
|
|
(0.15)
|
Return on average
common equity
|
|
11.07 %
|
|
10.84 %
|
|
(1.70) %
|
|
13.50 %
|
|
12.99 %
|
|
0.23
|
|
(1.92)
|
Return on average
tangible common equity (1)
|
|
16.93 %
|
|
16.63 %
|
|
(2.09) %
|
|
13.53 %
|
|
13.02 %
|
|
0.30
|
|
3.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios -
Operating: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating efficiency
ratio (1),(2)
|
|
51.97 %
|
|
54.85 %
|
|
53.46 %
|
|
52.01 %
|
|
51.72 %
|
|
(2.88)
|
|
0.25
|
Operating return on
average assets (1)
|
|
1.23 %
|
|
1.27 %
|
|
0.74 %
|
|
1.24 %
|
|
1.33 %
|
|
(0.04)
|
|
(0.10)
|
Operating PPNR return
on average assets (1)
|
|
1.94 %
|
|
1.82 %
|
|
2.01 %
|
|
2.10 %
|
|
2.12 %
|
|
0.12
|
|
(0.18)
|
Operating return on
average common equity (1)
|
|
13.40 %
|
|
13.77 %
|
|
8.66 %
|
|
16.14 %
|
|
15.86 %
|
|
(0.37)
|
|
(2.46)
|
Operating return on
average tangible common equity (1)
|
|
20.48 %
|
|
21.13 %
|
|
10.64 %
|
|
16.18 %
|
|
15.90 %
|
|
(0.65)
|
|
4.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance
Sheet Yields, Rates, & Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on loans and
leases
|
|
6.08 %
|
|
5.95 %
|
|
5.55 %
|
|
4.92 %
|
|
4.41 %
|
|
0.13
|
|
1.67
|
Yield on earning
assets (2)
|
|
5.65 %
|
|
5.48 %
|
|
5.19 %
|
|
4.62 %
|
|
4.10 %
|
|
0.17
|
|
1.55
|
Cost of interest
bearing deposits
|
|
2.01 %
|
|
1.64 %
|
|
1.32 %
|
|
0.77 %
|
|
0.23 %
|
|
0.37
|
|
1.78
|
Cost of interest
bearing liabilities
|
|
2.72 %
|
|
2.45 %
|
|
1.82 %
|
|
1.05 %
|
|
0.39 %
|
|
0.27
|
|
2.33
|
Cost of total
deposits
|
|
1.23 %
|
|
0.99 %
|
|
0.80 %
|
|
0.46 %
|
|
0.14 %
|
|
0.24
|
|
1.09
|
Cost of total funding
(3)
|
|
1.81 %
|
|
1.61 %
|
|
1.16 %
|
|
0.65 %
|
|
0.23 %
|
|
0.20
|
|
1.58
|
Net interest margin
(2)
|
|
3.91 %
|
|
3.93 %
|
|
4.08 %
|
|
4.01 %
|
|
3.88 %
|
|
(0.02)
|
|
0.03
|
Average interest
bearing cash / Average interest earning assets
|
|
5.17 %
|
|
5.47 %
|
|
4.33 %
|
|
3.62 %
|
|
3.04 %
|
|
(0.30)
|
|
2.13
|
Average loans and
leases / Average interest earning assets
|
|
75.64 %
|
|
75.18 %
|
|
80.96 %
|
|
85.32 %
|
|
84.54 %
|
|
0.46
|
|
(8.90)
|
Average loans and
leases / Average total deposits
|
|
90.63 %
|
|
90.98 %
|
|
93.01 %
|
|
95.85 %
|
|
93.55 %
|
|
(0.35)
|
|
(2.92)
|
Average non-interest
bearing deposits / Average total deposits
|
|
38.55 %
|
|
40.05 %
|
|
39.55 %
|
|
40.30 %
|
|
42.29 %
|
|
(1.50)
|
|
(3.74)
|
Average total deposits
/ Average total funding (3)
|
|
86.66 %
|
|
85.59 %
|
|
91.36 %
|
|
94.52 %
|
|
96.34 %
|
|
1.07
|
|
(9.68)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select Credit &
Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans
and leases to total loans and leases
|
|
0.28 %
|
|
0.22 %
|
|
0.20 %
|
|
0.22 %
|
|
0.20 %
|
|
0.06
|
|
0.08
|
Non-performing assets
to total assets
|
|
0.20 %
|
|
0.15 %
|
|
0.14 %
|
|
0.18 %
|
|
0.16 %
|
|
0.05
|
|
0.04
|
Allowance for credit
losses to loans and leases
|
|
1.18 %
|
|
1.15 %
|
|
1.18 %
|
|
1.21 %
|
|
1.16 %
|
|
0.03
|
|
0.02
|
Total risk-based
capital ratio (4)
|
|
11.5 %
|
|
11.3 %
|
|
10.9 %
|
|
13.7 %
|
|
13.2 %
|
|
0.20
|
|
(1.70)
|
Common equity tier 1
risk-based capital ratio (4)
|
|
9.4 %
|
|
9.2 %
|
|
8.9 %
|
|
11.0 %
|
|
10.7 %
|
|
0.20
|
|
(1.30)
|
|
|
(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)
|
|
|
Nine Months
Ended
|
|
%
Change
|
|
|
Sep 30,
2023
|
|
Sep 30,
2022
|
|
Year over
Year
|
Per Common Share
Data: (4)
|
|
|
|
|
|
|
Dividends
(4)
|
|
$
1.07
|
|
$
1.05
|
|
1.90 %
|
|
|
|
|
|
|
|
Performance
Ratios:
|
|
|
|
|
|
|
Efficiency ratio
(2)
|
|
65.87 %
|
|
58.05 %
|
|
7.82
|
Return on average
assets
|
|
0.70 %
|
|
1.11 %
|
|
(0.41)
|
PPNR return on average
assets (1)
|
|
1.38 %
|
|
1.70 %
|
|
(0.32)
|
Return on average
common equity
|
|
7.77 %
|
|
12.94 %
|
|
(5.17)
|
Return on average
tangible common equity (1)
|
|
11.21 %
|
|
12.98 %
|
|
(1.77)
|
|
|
|
|
|
|
|
Performance Ratios -
Operating: (1)
|
|
|
|
|
|
|
Operating efficiency
ratio (1),(2)
|
|
53.43 %
|
|
57.03 %
|
|
(3.60)
|
Operating return on
average assets (1)
|
|
1.11 %
|
|
1.14 %
|
|
(0.03)
|
Operating PPNR return
on average assets (1)
|
|
1.91 %
|
|
1.74 %
|
|
0.17
|
Operating return on
average common equity (1)
|
|
12.34 %
|
|
13.28 %
|
|
(0.94)
|
Operating return on
average tangible common equity (1)
|
|
17.80 %
|
|
13.32 %
|
|
4.48
|
|
|
|
|
|
|
|
Average Balance
Sheet Yields, Rates, & Ratios:
|
|
|
|
|
|
|
Yield on loans and
leases
|
|
5.88 %
|
|
4.06 %
|
|
1.82
|
Yield on earning
assets (2)
|
|
5.46 %
|
|
3.62 %
|
|
1.84
|
Cost of interest
bearing deposits
|
|
1.68 %
|
|
0.15 %
|
|
1.53
|
Cost of interest
bearing liabilities
|
|
2.38 %
|
|
0.26 %
|
|
2.12
|
Cost of total
deposits
|
|
1.02 %
|
|
0.09 %
|
|
0.93
|
Cost of total funding
(3)
|
|
1.56 %
|
|
0.15 %
|
|
1.41
|
Net interest margin
(2)
|
|
3.96 %
|
|
3.48 %
|
|
0.48
|
Average interest
bearing cash / Average interest earning assets
|
|
5.05 %
|
|
5.87 %
|
|
(0.82)
|
Average loans and
leases / Average interest earning assets
|
|
76.91 %
|
|
80.80 %
|
|
(3.89)
|
Average loans and
leases / Average total deposits
|
|
91.42 %
|
|
89.21 %
|
|
2.21
|
Average non-interest
bearing deposits / Average total deposits
|
|
39.28 %
|
|
41.89 %
|
|
(2.61)
|
Average total deposits
/ Average total funding (3)
|
|
87.53 %
|
|
96.61 %
|
|
(9.08)
|
|
|
(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)
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 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
|
$
6,490,638
|
|
$
6,434,673
|
|
$
6,353,550
|
|
$
3,894,840
|
|
$
3,846,426
|
|
1 %
|
|
69 %
|
Owner occupied term,
net
|
5,235,227
|
|
5,254,401
|
|
5,156,848
|
|
2,567,761
|
|
2,549,761
|
|
0 %
|
|
105 %
|
Multifamily,
net
|
5,684,495
|
|
5,622,875
|
|
5,590,587
|
|
5,285,791
|
|
5,090,661
|
|
1 %
|
|
12 %
|
Construction &
development, net
|
1,669,918
|
|
1,528,924
|
|
1,467,561
|
|
1,077,346
|
|
1,036,931
|
|
9 %
|
|
61 %
|
Residential
development, net
|
354,922
|
|
388,641
|
|
440,667
|
|
200,838
|
|
205,935
|
|
(9) %
|
|
72 %
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term, net
|
5,437,915
|
|
5,449,787
|
|
5,906,774
|
|
3,029,547
|
|
3,003,424
|
|
0 %
|
|
81 %
|
Lines of credit &
other, net
|
2,353,548
|
|
2,268,790
|
|
2,184,762
|
|
960,054
|
|
914,507
|
|
4 %
|
|
157 %
|
Leases & equipment
finance, net
|
1,728,991
|
|
1,740,037
|
|
1,746,267
|
|
1,706,172
|
|
1,669,817
|
|
(1) %
|
|
4 %
|
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage,
net
|
6,121,838
|
|
6,272,898
|
|
6,187,964
|
|
5,647,035
|
|
5,470,624
|
|
(2) %
|
|
12 %
|
Home equity loans
& lines, net
|
1,899,948
|
|
1,898,958
|
|
1,870,002
|
|
1,631,965
|
|
1,565,094
|
|
0 %
|
|
21 %
|
Consumer
& other, net
|
193,158
|
|
189,315
|
|
186,298
|
|
154,632
|
|
154,771
|
|
2 %
|
|
25 %
|
Total loans and
leases, net of deferred fees
and costs
|
$
37,170,598
|
|
$
37,049,299
|
|
$
37,091,280
|
|
$
26,155,981
|
|
$
25,507,951
|
|
0 %
|
|
46 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases
mix:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner
occupied term, net
|
17 %
|
|
17 %
|
|
16 %
|
|
15 %
|
|
15 %
|
|
|
|
|
Owner
occupied term, net
|
14 %
|
|
14 %
|
|
14 %
|
|
10 %
|
|
10 %
|
|
|
|
|
Multifamily, net
|
15 %
|
|
15 %
|
|
15 %
|
|
20 %
|
|
20 %
|
|
|
|
|
Construction &
development, net
|
4 %
|
|
4 %
|
|
4 %
|
|
4 %
|
|
4 %
|
|
|
|
|
Residential
development, net
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term, net
|
15 %
|
|
15 %
|
|
16 %
|
|
12 %
|
|
12 %
|
|
|
|
|
Lines of credit &
other, net
|
6 %
|
|
6 %
|
|
6 %
|
|
4 %
|
|
4 %
|
|
|
|
|
Leases & equipment
finance, net
|
5 %
|
|
5 %
|
|
5 %
|
|
6 %
|
|
6 %
|
|
|
|
|
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage,
net
|
17 %
|
|
17 %
|
|
17 %
|
|
21 %
|
|
21 %
|
|
|
|
|
Home equity loans
& lines, net
|
5 %
|
|
5 %
|
|
5 %
|
|
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)
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
%
Change
|
($ in
thousands)
|
Amount
|
|
Amount
|
|
Amount
|
|
Amount
|
|
Amount
|
|
Seq.
Quarter
|
|
Year over
Year
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand, non-interest
bearing
|
$
15,532,948
|
|
$
16,019,408
|
|
$
17,215,781
|
|
$
10,288,849
|
|
$
11,246,358
|
|
(3) %
|
|
38 %
|
Demand, interest
bearing
|
6,898,831
|
|
6,300,082
|
|
5,900,462
|
|
4,080,469
|
|
3,903,746
|
|
10 %
|
|
77 %
|
Money
market
|
10,349,217
|
|
10,115,908
|
|
10,681,422
|
|
7,721,011
|
|
7,601,506
|
|
2 %
|
|
36 %
|
Savings
|
3,018,706
|
|
3,171,714
|
|
3,469,112
|
|
2,265,052
|
|
2,455,917
|
|
(5) %
|
|
23 %
|
Time
|
5,824,666
|
|
5,227,805
|
|
4,319,570
|
|
2,710,231
|
|
1,609,580
|
|
11 %
|
|
262 %
|
Total
|
$
41,624,368
|
|
$
40,834,917
|
|
$
41,586,347
|
|
$
27,065,612
|
|
$
26,817,107
|
|
2 %
|
|
55 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total core deposits
(1)
|
$
37,597,830
|
|
$
37,639,368
|
|
$
39,155,298
|
|
$
25,616,010
|
|
$
26,292,548
|
|
0 %
|
|
43 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
mix:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand, non-interest
bearing
|
37 %
|
|
39 %
|
|
41 %
|
|
38 %
|
|
42 %
|
|
|
|
|
Demand, interest
bearing
|
17 %
|
|
15 %
|
|
14 %
|
|
15 %
|
|
15 %
|
|
|
|
|
Money
market
|
25 %
|
|
25 %
|
|
26 %
|
|
29 %
|
|
28 %
|
|
|
|
|
Savings
|
7 %
|
|
8 %
|
|
9 %
|
|
8 %
|
|
9 %
|
|
|
|
|
Time
|
14 %
|
|
13 %
|
|
10 %
|
|
10 %
|
|
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)
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Seq.
Quarter
|
|
Year over
Year
|
Non-performing
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases on
non-accrual status:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
$ 26,053
|
|
$ 10,994
|
|
$ 15,612
|
|
$
5,011
|
|
$
5,403
|
|
137 %
|
|
382 %
|
|
Commercial,
net
|
44,341
|
|
39,316
|
|
42,301
|
|
25,691
|
|
18,652
|
|
13 %
|
|
138 %
|
|
Residential,
net
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
nm
|
|
nm
|
|
Consumer & other,
net
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
nm
|
|
nm
|
|
Total loans and leases
on non-accrual status
|
70,394
|
|
50,310
|
|
57,913
|
|
30,702
|
|
24,055
|
|
40 %
|
|
193 %
|
Loans and leases past
due 90+ days and accruing (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
71
|
|
184
|
|
1
|
|
1
|
|
1
|
|
(61) %
|
|
nm
|
|
Commercial,
net
|
8,606
|
|
7,720
|
|
151
|
|
7,909
|
|
5,143
|
|
11 %
|
|
67 %
|
|
Residential, net
(1)
|
25,180
|
|
21,370
|
|
17,423
|
|
19,894
|
|
21,411
|
|
18 %
|
|
18 %
|
|
Consumer & other,
net
|
240
|
|
399
|
|
140
|
|
134
|
|
152
|
|
(40) %
|
|
58 %
|
|
Total loans and leases
past due 90+ days and
accruing (1)
|
34,097
|
|
29,673
|
|
17,715
|
|
27,938
|
|
26,707
|
|
15 %
|
|
28 %
|
Total non-performing
loans and leases
|
104,491
|
|
79,983
|
|
75,628
|
|
58,640
|
|
50,762
|
|
31 %
|
|
106 %
|
Other real estate
owned
|
1,170
|
|
278
|
|
409
|
|
203
|
|
—
|
|
321 %
|
|
nm
|
Total non-performing
assets
|
$
105,661
|
|
$ 80,261
|
|
$ 76,037
|
|
$ 58,843
|
|
$ 50,762
|
|
32 %
|
|
108 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases past
due 31-89 days
|
$ 82,918
|
|
$ 73,376
|
|
$ 78,641
|
|
$ 64,893
|
|
$ 53,538
|
|
13 %
|
|
55 %
|
Loans and leases past
due 31-89 days to total loans
and leases
|
0.22 %
|
|
0.20 %
|
|
0.21 %
|
|
0.25 %
|
|
0.21 %
|
|
0.02
|
|
0.01
|
Non-performing loans
and leases to total loans and
leases (1)
|
0.28 %
|
|
0.22 %
|
|
0.20 %
|
|
0.22 %
|
|
0.20 %
|
|
0.06
|
|
0.08
|
Non-performing assets
to total assets (1)
|
0.20 %
|
|
0.15 %
|
|
0.14 %
|
|
0.18 %
|
|
0.16 %
|
|
0.05
|
|
0.04
|
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
$700,000, $1.6 million, $5.4 million, $6.6 million and $1.0 million
at September 30, 2023, June 30, 2023, March 31, 2023, December 31,
2022 and September 30, 2022, respectively.
|
|
Columbia Banking
System, Inc.
|
|
Credit Quality –
Allowance for Credit Losses
|
|
(Unaudited)
|
|
|
Quarter
Ended
|
|
%
Change
|
($ in
thousands)
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Seq.
Quarter
|
|
Year over
Year
|
Allowance for credit
losses on loans and leases (ACLLL)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of
period
|
$
404,603
|
|
$
417,464
|
|
$
301,135
|
|
$
283,065
|
|
$
261,111
|
|
(3) %
|
|
55 %
|
Initial ACL recorded
for PCD loans acquired during the
period
|
—
|
|
—
|
|
26,492
|
|
—
|
|
—
|
|
nm
|
|
nm
|
Provision for credit
losses on loans and leases (1)
|
35,082
|
|
15,216
|
|
106,498
|
|
30,580
|
|
28,542
|
|
131 %
|
|
23 %
|
Charge-offs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
—
|
|
(174)
|
|
—
|
|
(128)
|
|
—
|
|
nm
|
|
nm
|
|
Commercial,
net
|
(26,629)
|
|
(32,036)
|
|
(19,248)
|
|
(14,721)
|
|
(9,459)
|
|
(17) %
|
|
182 %
|
|
Residential,
net
|
(206)
|
|
(4)
|
|
(248)
|
|
(53)
|
|
(4)
|
|
nm
|
|
nm
|
|
Consumer & other,
net
|
(1,884)
|
|
(1,264)
|
|
(773)
|
|
(906)
|
|
(929)
|
|
49 %
|
|
103 %
|
|
Total
charge-offs
|
(28,719)
|
|
(33,478)
|
|
(20,269)
|
|
(15,808)
|
|
(10,392)
|
|
(14) %
|
|
176 %
|
Recoveries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
31
|
|
209
|
|
58
|
|
163
|
|
123
|
|
(85) %
|
|
(75) %
|
|
Commercial,
net
|
4,901
|
|
4,511
|
|
3,058
|
|
2,708
|
|
2,842
|
|
9 %
|
|
72 %
|
|
Residential,
net
|
156
|
|
63
|
|
123
|
|
24
|
|
249
|
|
148 %
|
|
(37) %
|
|
Consumer & other,
net
|
506
|
|
618
|
|
369
|
|
403
|
|
590
|
|
(18) %
|
|
(14) %
|
|
Total
recoveries
|
5,594
|
|
5,401
|
|
3,608
|
|
3,298
|
|
3,804
|
|
4 %
|
|
47 %
|
Net (charge-offs)
recoveries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
31
|
|
35
|
|
58
|
|
35
|
|
123
|
|
(11) %
|
|
(75) %
|
|
Commercial,
net
|
(21,728)
|
|
(27,525)
|
|
(16,190)
|
|
(12,013)
|
|
(6,617)
|
|
(21) %
|
|
228 %
|
|
Residential,
net
|
(50)
|
|
59
|
|
(125)
|
|
(29)
|
|
245
|
|
(185) %
|
|
(120) %
|
|
Consumer & other,
net
|
(1,378)
|
|
(646)
|
|
(404)
|
|
(503)
|
|
(339)
|
|
113 %
|
|
306 %
|
|
Total net
charge-offs
|
(23,125)
|
|
(28,077)
|
|
(16,661)
|
|
(12,510)
|
|
(6,588)
|
|
(18) %
|
|
251 %
|
Balance, end of
period
|
$
416,560
|
|
$
404,603
|
|
$
417,464
|
|
$
301,135
|
|
$
283,065
|
|
3 %
|
|
47 %
|
Reserve for unfunded
commitments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of
period
|
$ 19,827
|
|
$ 19,029
|
|
$ 14,221
|
|
$ 11,853
|
|
$ 12,823
|
|
4 %
|
|
55 %
|
Initial ACL recorded
for unfunded commitments
acquired during the period
|
—
|
|
—
|
|
5,767
|
|
—
|
|
—
|
|
nm
|
|
nm
|
Provision (recapture)
for credit losses on unfunded
commitments
|
1,655
|
|
798
|
|
(959)
|
|
2,368
|
|
(970)
|
|
107 %
|
|
nm
|
Balance, end of
period
|
21,482
|
|
19,827
|
|
19,029
|
|
14,221
|
|
11,853
|
|
8 %
|
|
81 %
|
Total Allowance for
credit losses (ACL)
|
$
438,042
|
|
$
424,430
|
|
$
436,493
|
|
$
315,356
|
|
$
294,918
|
|
3 %
|
|
49 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs to
average loans and leases (annualized)
|
0.25 %
|
|
0.30 %
|
|
0.23 %
|
|
0.19 %
|
|
0.11 %
|
|
(0.05)
|
|
0.14
|
Recoveries to gross
charge-offs
|
19.48 %
|
|
16.13 %
|
|
17.80 %
|
|
20.86 %
|
|
36.61 %
|
|
3.35
|
|
(17.13)
|
ACLLL to loans and
leases
|
1.12 %
|
|
1.09 %
|
|
1.13 %
|
|
1.15 %
|
|
1.11 %
|
|
0.03
|
|
0.01
|
ACL to loans and
leases
|
1.18 %
|
|
1.15 %
|
|
1.18 %
|
|
1.21 %
|
|
1.16 %
|
|
0.03
|
|
0.02
|
nm = not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
For the quarter ended
March 31, 2023, the provision for credit losses on loans and leases
includes $88.4 million initial provision related to non-PCD loans
acquired during the period.
|
Columbia Banking
System, Inc.
|
Credit Quality –
Allowance for Credit Losses
|
(Unaudited)
|
|
|
Nine Months
Ended
|
|
%
Change
|
($ in
thousands)
|
|
Sep 30,
2023
|
|
Sep 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)
|
|
156,796
|
|
53,025
|
|
196 %
|
Charge-offs
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
|
(174)
|
|
(8)
|
|
nm
|
|
Commercial,
net
|
|
(77,913)
|
|
(26,352)
|
|
196 %
|
|
Residential,
net
|
|
(458)
|
|
(171)
|
|
168 %
|
|
Consumer & other,
net
|
|
(3,921)
|
|
(2,650)
|
|
48 %
|
|
Total
charge-offs
|
|
(82,466)
|
|
(29,181)
|
|
183 %
|
Recoveries
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
|
298
|
|
221
|
|
35 %
|
|
Commercial,
net
|
|
12,470
|
|
8,321
|
|
50 %
|
|
Residential,
net
|
|
342
|
|
638
|
|
(46) %
|
|
Consumer & other,
net
|
|
1,493
|
|
1,629
|
|
(8) %
|
|
Total
recoveries
|
|
14,603
|
|
10,809
|
|
35 %
|
Net (charge-offs)
recoveries
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
|
124
|
|
213
|
|
(42) %
|
|
Commercial,
net
|
|
(65,443)
|
|
(18,031)
|
|
263 %
|
|
Residential,
net
|
|
(116)
|
|
467
|
|
(125) %
|
|
Consumer & other,
net
|
|
(2,428)
|
|
(1,021)
|
|
138 %
|
|
Total net
charge-offs
|
|
(67,863)
|
|
(18,372)
|
|
269 %
|
Balance, end of
period
|
|
$
416,560
|
|
$
283,065
|
|
47 %
|
Reserve for unfunded
commitments
|
|
|
|
|
|
|
Balance, beginning of
period
|
|
$
14,221
|
|
$
12,767
|
|
11 %
|
Initial ACL recorded
for unfunded commitments acquired during the period
|
|
5,767
|
|
—
|
|
nm
|
Provision
(recapture) for credit losses on unfunded
commitments
|
|
1,494
|
|
(914)
|
|
nm
|
Balance, end of
period
|
|
21,482
|
|
11,853
|
|
81 %
|
Total Allowance for
credit losses (ACL)
|
|
$
438,042
|
|
$
294,918
|
|
49 %
|
|
|
|
|
|
|
|
Net charge-offs to
average loans and leases (annualized)
|
|
0.26 %
|
|
0.10 %
|
|
0.16
|
Recoveries to gross
charge-offs
|
|
17.71 %
|
|
37.04 %
|
|
(19.33)
|
nm = not
meaningful
|
|
|
|
|
|
|
|
|
(1)
|
For the nine months
ended September 30, 2023, the provision for credit losses on loans
and leases includes $88.4 million initial provision related to
non-PCD loans acquired during the period.
|
Columbia Banking
System, Inc.
|
Consolidated Average
Balance Sheets, Net Interest Income, and
Yields/Rates
|
(Unaudited)
|
|
Quarter
Ended
|
|
September 30,
2023
|
|
June 30,
2023
|
|
September 30,
2022
|
($ 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
|
$ 199,855
|
|
$ 1,741
|
|
3.49 %
|
|
$
46,794
|
|
$ 682
|
|
5.83 %
|
|
$ 173,397
|
|
$ 2,205
|
|
5.09 %
|
Loans and leases
(1)
|
37,050,518
|
|
567,929
|
|
6.08 %
|
|
37,169,315
|
|
551,997
|
|
5.95 %
|
|
24,886,203
|
|
276,625
|
|
4.41 %
|
Taxable
securities
|
8,356,165
|
|
85,007
|
|
4.07 %
|
|
8,656,147
|
|
81,617
|
|
3.77 %
|
|
3,271,185
|
|
18,261
|
|
2.23 %
|
Non-taxable securities
(2)
|
844,417
|
|
8,085
|
|
3.83 %
|
|
865,278
|
|
8,010
|
|
3.70 %
|
|
212,847
|
|
1,651
|
|
3.10 %
|
Temporary investments
and
interest-bearing cash
|
2,530,150
|
|
34,407
|
|
5.40 %
|
|
2,704,984
|
|
34,616
|
|
5.13 %
|
|
893,471
|
|
5,115
|
|
2.27 %
|
Total interest-earning
assets
|
48,981,105
|
|
$ 697,169
|
|
5.65 %
|
|
49,442,518
|
|
$ 676,922
|
|
5.48 %
|
|
29,437,103
|
|
$ 303,857
|
|
4.10 %
|
Goodwill and other
intangible
assets
|
1,684,093
|
|
|
|
|
|
1,718,705
|
|
|
|
|
|
6,343
|
|
|
|
|
Other assets
|
2,346,163
|
|
|
|
|
|
2,379,351
|
|
|
|
|
|
1,224,731
|
|
|
|
|
Total assets
|
$
53,011,361
|
|
|
|
|
|
$
53,540,574
|
|
|
|
|
|
$
30,668,177
|
|
|
|
|
INTEREST-BEARING
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand
deposits
|
$
6,578,849
|
|
$
25,209
|
|
1.52 %
|
|
$
6,131,117
|
|
$
17,277
|
|
1.15 %
|
|
$
3,829,688
|
|
$ 1,705
|
|
0.18 %
|
Money market
deposits
|
10,249,028
|
|
50,039
|
|
1.94 %
|
|
10,362,495
|
|
41,703
|
|
1.60 %
|
|
7,550,791
|
|
5,817
|
|
0.31 %
|
Savings
deposits
|
3,109,779
|
|
1,253
|
|
0.16 %
|
|
3,297,138
|
|
877
|
|
0.11 %
|
|
2,468,187
|
|
250
|
|
0.04 %
|
Time
deposits
|
5,184,089
|
|
50,473
|
|
3.86 %
|
|
4,703,967
|
|
40,551
|
|
3.46 %
|
|
1,501,724
|
|
1,318
|
|
0.35 %
|
Total interest-bearing
deposits
|
25,121,745
|
|
126,974
|
|
2.01 %
|
|
24,494,717
|
|
100,408
|
|
1.64 %
|
|
15,350,390
|
|
9,090
|
|
0.23 %
|
Repurchase agreements
and
federal funds purchased
|
268,444
|
|
1,220
|
|
1.80 %
|
|
284,347
|
|
1,071
|
|
1.51 %
|
|
509,559
|
|
545
|
|
0.42 %
|
Borrowings
|
5,603,207
|
|
77,080
|
|
5.46 %
|
|
6,187,363
|
|
81,004
|
|
5.25 %
|
|
90,475
|
|
798
|
|
3.50 %
|
Junior and other
subordinated
debentures
|
420,582
|
|
9,864
|
|
9.30 %
|
|
405,989
|
|
9,271
|
|
9.16 %
|
|
409,151
|
|
5,491
|
|
5.33 %
|
Total interest-bearing
liabilities
|
31,413,978
|
|
$ 215,138
|
|
2.72 %
|
|
31,372,416
|
|
$ 191,754
|
|
2.45 %
|
|
16,359,575
|
|
$
15,924
|
|
0.39 %
|
Non-interest-bearing
deposits
|
15,759,720
|
|
|
|
|
|
16,361,541
|
|
|
|
|
|
11,250,764
|
|
|
|
|
Other
liabilities
|
970,688
|
|
|
|
|
|
871,378
|
|
|
|
|
|
490,572
|
|
|
|
|
Total
liabilities
|
48,144,386
|
|
|
|
|
|
48,605,335
|
|
|
|
|
|
28,100,911
|
|
|
|
|
Common
equity
|
4,866,975
|
|
|
|
|
|
4,935,239
|
|
|
|
|
|
2,567,266
|
|
|
|
|
Total liabilities and
shareholders'
equity
|
$
53,011,361
|
|
|
|
|
|
$
53,540,574
|
|
|
|
|
|
$
30,668,177
|
|
|
|
|
NET INTEREST INCOME
(2)
|
|
|
$ 482,031
|
|
|
|
|
|
$ 485,168
|
|
|
|
|
|
$ 287,933
|
|
|
NET INTEREST
SPREAD
|
|
|
|
|
2.93 %
|
|
|
|
|
|
3.03 %
|
|
|
|
|
|
3.71 %
|
NET INTEREST INCOME
TO
EARNING ASSETS OR NET
INTEREST MARGIN (1), (2)
|
|
|
|
|
3.91 %
|
|
|
|
|
|
3.93 %
|
|
|
|
|
|
3.88 %
|
|
|
(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
September 30, 2023, as compared to $1.2 million for the three
months ended June 30, 2023 and $329,000 for the three months
ended September 30, 2022.
|
Columbia Banking
System, Inc.
|
Consolidated Average
Balance Sheets, Net Interest Income, and
Yields/Rates
|
(Unaudited)
|
|
Nine Months
Ended
|
|
September 30,
2023
|
|
September 30,
2022
|
($ 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
|
$
100,753
|
|
$
3,222
|
|
4.26 %
|
|
$
240,928
|
|
$
7,209
|
|
3.99 %
|
Loans and leases
(1)
|
34,765,319
|
|
1,532,652
|
|
5.88 %
|
|
23,676,201
|
|
720,699
|
|
4.06 %
|
Taxable
securities
|
7,336,862
|
|
207,072
|
|
3.76 %
|
|
3,445,386
|
|
54,412
|
|
2.11 %
|
Non-taxable securities
(2)
|
717,064
|
|
20,163
|
|
3.75 %
|
|
222,375
|
|
5,098
|
|
3.06 %
|
Temporary investments
and interest-bearing cash
|
2,283,461
|
|
87,604
|
|
5.13 %
|
|
1,718,832
|
|
9,387
|
|
0.73 %
|
Total interest-earning
assets
|
45,203,459
|
|
$
1,850,713
|
|
5.46 %
|
|
29,303,722
|
|
$ 796,805
|
|
3.62 %
|
Goodwill and other
intangible assets
|
1,345,833
|
|
|
|
|
|
7,369
|
|
|
|
|
Other assets
|
2,159,775
|
|
|
|
|
|
1,229,936
|
|
|
|
|
Total
assets
|
$ 48,709,067
|
|
|
|
|
|
$ 30,541,027
|
|
|
|
|
INTEREST-BEARING
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
$ 5,829,737
|
|
$
52,301
|
|
1.20 %
|
|
$ 3,846,202
|
|
$
2,813
|
|
0.10 %
|
Money market
deposits
|
9,857,001
|
|
123,980
|
|
1.68 %
|
|
7,519,200
|
|
8,942
|
|
0.16 %
|
Savings
deposits
|
3,032,653
|
|
2,686
|
|
0.12 %
|
|
2,433,651
|
|
654
|
|
0.04 %
|
Time
deposits
|
4,371,643
|
|
112,028
|
|
3.43 %
|
|
1,623,742
|
|
4,612
|
|
0.38 %
|
Total interest-bearing
deposits
|
23,091,034
|
|
290,995
|
|
1.68 %
|
|
15,422,795
|
|
17,021
|
|
0.15 %
|
Repurchase agreements
and federal funds purchased
|
277,896
|
|
2,697
|
|
1.30 %
|
|
502,998
|
|
674
|
|
0.18 %
|
Borrowings
|
4,726,335
|
|
186,848
|
|
5.29 %
|
|
34,662
|
|
897
|
|
3.46 %
|
Junior and other
subordinated debentures
|
414,855
|
|
27,605
|
|
8.90 %
|
|
394,803
|
|
12,641
|
|
4.28 %
|
Total interest-bearing
liabilities
|
28,510,120
|
|
$ 508,145
|
|
2.38 %
|
|
16,355,258
|
|
$
31,233
|
|
0.26 %
|
Non-interest-bearing
deposits
|
14,937,028
|
|
|
|
|
|
11,115,618
|
|
|
|
|
Other
liabilities
|
872,370
|
|
|
|
|
|
448,426
|
|
|
|
|
Total
liabilities
|
44,319,518
|
|
|
|
|
|
27,919,302
|
|
|
|
|
Common
equity
|
4,389,549
|
|
|
|
|
|
2,621,725
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$ 48,709,067
|
|
|
|
|
|
$ 30,541,027
|
|
|
|
|
NET INTEREST INCOME
(2)
|
|
|
$
1,342,568
|
|
|
|
|
|
$ 765,572
|
|
|
NET INTEREST
SPREAD
|
|
|
|
|
3.08 %
|
|
|
|
|
|
3.36 %
|
NET INTEREST INCOME
TO EARNING ASSETS OR NET
INTEREST MARGIN (1), (2)
|
|
|
|
|
3.96 %
|
|
|
|
|
|
3.48 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $3.0 million for the nine months ended
September 30, 2023, as compared to $1.0 million for the same
period in 2022.
|
Columbia Banking
System, Inc.
|
Residential Mortgage
Banking Activity
|
(Unaudited)
|
|
Quarter
Ended
|
|
%
Change
|
($ in
thousands)
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Seq.
Quarter
|
|
Year over
Year
|
Residential mortgage
banking revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination and
sale
|
$
2,442
|
|
$
3,166
|
|
$
3,587
|
|
$
4,252
|
|
$ 10,515
|
|
(23) %
|
|
(77) %
|
Servicing
|
8,887
|
|
9,167
|
|
9,397
|
|
9,184
|
|
9,529
|
|
(3) %
|
|
(7) %
|
Change in fair value of
MSR asset:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes due to
collection/realization of expected
cash flows over time
|
(4,801)
|
|
(4,797)
|
|
(4,881)
|
|
(4,986)
|
|
(4,978)
|
|
0 %
|
|
(4) %
|
Changes due to
valuation inputs or assumptions
|
5,308
|
|
(2,242)
|
|
(2,937)
|
|
(9,914)
|
|
16,403
|
|
nm
|
|
(68) %
|
MSR hedge (loss)
gain
|
(4,733)
|
|
(7,636)
|
|
2,650
|
|
(348)
|
|
(14,128)
|
|
(38) %
|
|
(66) %
|
Total
|
$
7,103
|
|
$ (2,342)
|
|
$
7,816
|
|
$ (1,812)
|
|
$ 17,341
|
|
nm
|
|
(59) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closed loan volume
for-sale
|
$
103,333
|
|
$
119,476
|
|
$
131,726
|
|
$
216,833
|
|
$
396,979
|
|
(14) %
|
|
(74) %
|
Gain on sale
margin
|
2.36 %
|
|
2.65 %
|
|
2.72 %
|
|
1.96 %
|
|
2.65 %
|
|
(0.29)
|
|
(0.29)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
servicing rights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of
period
|
$
172,929
|
|
$
178,800
|
|
$
185,017
|
|
$
196,177
|
|
$
179,558
|
|
(3) %
|
|
(4) %
|
Additions for new MSR
capitalized
|
1,658
|
|
1,168
|
|
1,601
|
|
3,740
|
|
5,194
|
|
42 %
|
|
(68) %
|
Sale of MSR
assets
|
(57,454)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
nm
|
|
nm
|
Change in fair value of
MSR asset:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes due to
collection/realization of expected
cash flows over time
|
(4,801)
|
|
(4,797)
|
|
(4,881)
|
|
(4,986)
|
|
(4,978)
|
|
0 %
|
|
(4) %
|
Changes due to
valuation inputs or assumptions
|
5,308
|
|
(2,242)
|
|
(2,937)
|
|
(9,914)
|
|
16,403
|
|
nm
|
|
(68) %
|
Balance, end of
period
|
$
117,640
|
|
$
172,929
|
|
$
178,800
|
|
$
185,017
|
|
$
196,177
|
|
(32) %
|
|
(40) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans serviced for others
|
$ 8,240,950
|
|
$
12,726,615
|
|
$
12,914,046
|
|
$
13,020,189
|
|
$
12,997,911
|
|
(35) %
|
|
(37) %
|
MSR as % of serviced
portfolio
|
1.43 %
|
|
1.36 %
|
|
1.38 %
|
|
1.42 %
|
|
1.51 %
|
|
0.07
|
|
(0.08)
|
nm = not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Columbia Banking
System, Inc.
|
Residential Mortgage
Banking Activity
|
(Unaudited)
|
|
Nine Months
Ended
|
|
%
Change
|
($ in
thousands)
|
Sep 30,
2023
|
|
Sep 30,
2022
|
|
Year over
Year
|
Residential mortgage
banking revenue:
|
|
|
|
|
|
Origination and
sale
|
$
9,195
|
|
$
42,460
|
|
(78) %
|
Servicing
|
27,451
|
|
28,174
|
|
(3) %
|
Change in fair value of
MSR asset:
|
|
|
|
|
|
Changes due to
collection/realization of expected cash flows over time
|
(14,479)
|
|
(15,286)
|
|
(5) %
|
Changes due to
valuation inputs or assumptions
|
129
|
|
67,451
|
|
(100) %
|
MSR hedge
loss
|
(9,719)
|
|
(14,128)
|
|
(31) %
|
Total
|
$
12,577
|
|
$
108,671
|
|
(88) %
|
|
|
|
|
|
|
Closed loan volume
for-sale
|
$
354,535
|
|
$ 1,622,633
|
|
(78) %
|
Gain on sale
margin
|
2.59 %
|
|
2.62 %
|
|
(0.03)
|
|
|
|
|
|
|
Residential mortgage
servicing rights:
|
|
|
|
|
|
Balance, beginning of
period
|
$
185,017
|
|
$
123,615
|
|
50 %
|
Additions for new MSR
capitalized
|
4,427
|
|
20,397
|
|
(78) %
|
Sale of MSR
assets
|
(57,454)
|
|
—
|
|
nm
|
Change in fair value of
MSR asset:
|
|
|
|
|
|
Changes due to
collection/realization of expected cash flows over time
|
(14,479)
|
|
(15,286)
|
|
(5) %
|
Changes due to
valuation inputs or assumptions
|
129
|
|
67,451
|
|
(100) %
|
Balance, end of
period
|
$
117,640
|
|
$
196,177
|
|
(40) %
|
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)
|
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Seq.
Quarter
|
|
Year over
Year
|
Total shareholders'
equity
|
a
|
|
$
4,632,162
|
|
$
4,828,188
|
|
$
4,884,723
|
|
$
2,479,826
|
|
$
2,417,514
|
|
(4) %
|
|
92 %
|
Less:
Goodwill
|
|
|
1,029,234
|
|
1,029,234
|
|
1,030,142
|
|
—
|
|
—
|
|
— %
|
|
nm
|
Less: Other intangible
assets, net
|
|
|
636,883
|
|
666,762
|
|
702,315
|
|
4,745
|
|
5,764
|
|
(4) %
|
|
nm
|
Tangible common
shareholders' equity
|
b
|
|
$
2,966,045
|
|
$
3,132,192
|
|
$
3,152,266
|
|
$
2,475,081
|
|
$
2,411,750
|
|
(5) %
|
|
23 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
c
|
|
$
51,989,593
|
|
$
53,592,096
|
|
$
53,994,226
|
|
$
31,848,639
|
|
$
31,471,960
|
|
(3) %
|
|
65 %
|
Less:
Goodwill
|
|
|
1,029,234
|
|
1,029,234
|
|
1,030,142
|
|
—
|
|
—
|
|
0 %
|
|
nm
|
Less: Other intangible
assets, net
|
|
|
636,883
|
|
666,762
|
|
702,315
|
|
4,745
|
|
5,764
|
|
(4) %
|
|
nm
|
Tangible
assets
|
d
|
|
$
50,323,476
|
|
$
51,896,100
|
|
$
52,261,769
|
|
$
31,843,894
|
|
$
31,466,196
|
|
(3) %
|
|
60 %
|
Common shares
outstanding at period end (1)
|
e
|
|
208,575
|
|
208,514
|
|
208,429
|
|
129,321
|
|
129,320
|
|
0 %
|
|
61 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity to total assets ratio
|
a / c
|
|
8.91 %
|
|
9.01 %
|
|
9.05 %
|
|
7.79 %
|
|
7.68 %
|
|
(0.10)
|
|
1.23
|
Tangible common equity
ratio
|
b / d
|
|
5.89 %
|
|
6.04 %
|
|
6.03 %
|
|
7.77 %
|
|
7.66 %
|
|
(0.15)
|
|
(1.77)
|
Book value per common
share (1)
|
a / e
|
|
$
22.21
|
|
$
23.16
|
|
$
23.44
|
|
$
19.18
|
|
$
18.69
|
|
(4) %
|
|
19 %
|
Tangible book value per
common share (1)
|
b / e
|
|
$
14.22
|
|
$
15.02
|
|
$
15.12
|
|
$
19.14
|
|
$
18.65
|
|
(5) %
|
|
(24) %
|
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)
|
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Seq.
Quarter
|
|
Year over
Year
|
Non-Interest Income
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of debt
securities, net
|
|
|
$
4
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
|
nm
|
|
nm
|
(Loss) gain on equity
securities, net
|
|
|
(2,055)
|
|
(697)
|
|
2,416
|
|
284
|
|
(2,647)
|
|
195 %
|
|
(22) %
|
Gain (loss) on swap
derivatives
|
|
|
5,700
|
|
1,288
|
|
(3,543)
|
|
(2,329)
|
|
4,194
|
|
343 %
|
|
36 %
|
Change in fair value
of certain loans held for investment
|
|
|
(19,247)
|
|
(6,965)
|
|
9,488
|
|
4,192
|
|
(26,397)
|
|
176 %
|
|
(27) %
|
Change in fair value
of MSR due to valuation inputs or assumptions
|
|
|
5,308
|
|
(2,242)
|
|
(2,937)
|
|
(9,914)
|
|
16,403
|
|
nm
|
|
(68) %
|
MSR hedge (loss)
gain
|
|
|
(4,733)
|
|
(7,636)
|
|
2,650
|
|
(348)
|
|
(14,128)
|
|
(38) %
|
|
(66) %
|
Total non-interest
income adjustments
|
a
|
|
$
(15,023)
|
|
$
(16,252)
|
|
$
8,074
|
|
$
(8,115)
|
|
$
(22,575)
|
|
(8) %
|
|
(33) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger related
expense
|
|
|
$
18,938
|
|
$
29,649
|
|
$
115,898
|
|
$
11,637
|
|
$
769
|
|
(36) %
|
|
nm
|
Exit and disposal
costs
|
|
|
4,017
|
|
2,119
|
|
1,291
|
|
1,966
|
|
1,364
|
|
90 %
|
|
195 %
|
Total non-interest
expense adjustments
|
b
|
|
$
22,955
|
|
$
31,768
|
|
$
117,189
|
|
$
13,603
|
|
$
2,133
|
|
(28) %
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
c
|
|
$
480,875
|
|
$
483,975
|
|
$
374,698
|
|
$
305,479
|
|
$
287,604
|
|
(1) %
|
|
67 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income
(GAAP)
|
d
|
|
$
43,981
|
|
$
39,678
|
|
$
54,735
|
|
$
34,879
|
|
$
29,445
|
|
11 %
|
|
49 %
|
Less: Non-interest
income adjustments
|
a
|
|
15,023
|
|
16,252
|
|
(8,074)
|
|
8,115
|
|
22,575
|
|
(8) %
|
|
(33) %
|
Operating
non-interest income (non-GAAP)
|
e
|
|
$
59,004
|
|
$
55,930
|
|
$
46,661
|
|
$
42,994
|
|
$
52,020
|
|
5 %
|
|
13 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
(GAAP)
|
f=c+d
|
|
$
524,856
|
|
$
523,653
|
|
$
429,433
|
|
$
340,358
|
|
$
317,049
|
|
— %
|
|
66 %
|
Operating revenue
(non-GAAP)
|
g=c+e
|
|
$
539,879
|
|
$
539,905
|
|
$
421,359
|
|
$
348,473
|
|
$
339,624
|
|
— %
|
|
59 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense
(GAAP)
|
h
|
|
$
304,147
|
|
$
328,559
|
|
$
342,818
|
|
$
194,982
|
|
$
177,964
|
|
(7) %
|
|
71 %
|
Less: Non-interest
expense adjustments
|
b
|
|
(22,955)
|
|
(31,768)
|
|
(117,189)
|
|
(13,603)
|
|
(2,133)
|
|
(28) %
|
|
nm
|
Operating
non-interest expense (non-GAAP)
|
i
|
|
$
281,192
|
|
$
296,791
|
|
$
225,629
|
|
$
181,379
|
|
$
175,831
|
|
(5) %
|
|
60 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
(GAAP)
|
j
|
|
$
135,845
|
|
$
133,377
|
|
$
(14,038)
|
|
$
82,964
|
|
$
84,040
|
|
2 %
|
|
62 %
|
Provision (benefit) for
income taxes
|
|
|
48,127
|
|
45,703
|
|
(4,886)
|
|
29,464
|
|
27,473
|
|
5 %
|
|
75 %
|
Income (loss) before
provision for income taxes
|
|
|
183,972
|
|
179,080
|
|
(18,924)
|
|
112,428
|
|
111,513
|
|
3 %
|
|
65 %
|
Provision for credit
losses
|
|
|
36,737
|
|
16,014
|
|
105,539
|
|
32,948
|
|
27,572
|
|
129 %
|
|
33 %
|
Pre-provision net
revenue (PPNR) (non-GAAP)
|
k
|
|
220,709
|
|
195,094
|
|
86,615
|
|
145,376
|
|
139,085
|
|
13 %
|
|
59 %
|
Less: Non-interest
income adjustments
|
a
|
|
15,023
|
|
16,252
|
|
(8,074)
|
|
8,115
|
|
22,575
|
|
(8) %
|
|
(33) %
|
Add: Non-interest
expense adjustments
|
b
|
|
22,955
|
|
31,768
|
|
117,189
|
|
13,603
|
|
2,133
|
|
(28) %
|
|
nm
|
Operating PPNR
(non-GAAP)
|
l
|
|
$
258,687
|
|
$
243,114
|
|
$
195,730
|
|
$
167,094
|
|
$
163,793
|
|
6 %
|
|
58 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
(GAAP)
|
j
|
|
$
135,845
|
|
$
133,377
|
|
$
(14,038)
|
|
$
82,964
|
|
$
84,040
|
|
2 %
|
|
62 %
|
Less: Non-interest
income adjustments
|
a
|
|
15,023
|
|
16,252
|
|
(8,074)
|
|
8,115
|
|
22,575
|
|
(8) %
|
|
(33) %
|
Add: Non-interest
expense adjustments
|
b
|
|
22,955
|
|
31,768
|
|
117,189
|
|
13,603
|
|
2,133
|
|
(28) %
|
|
nm
|
Tax effect of
adjustments
|
|
|
(9,482)
|
|
(11,981)
|
|
(23,565)
|
|
(5,459)
|
|
(6,116)
|
|
(21) %
|
|
55 %
|
Operating net income
(non-GAAP)
|
m
|
|
$
164,341
|
|
$
169,416
|
|
$
71,512
|
|
$
99,223
|
|
$
102,632
|
|
(3) %
|
|
60 %
|
nm = not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Columbia Banking
System, Inc.
|
GAAP to Non-GAAP
Reconciliation - Continued
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
%
Change
|
($ in thousands,
except per share data)
|
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Seq.
Quarter
|
|
Year over
Year
|
Average
assets
|
n
|
|
$
53,011,361
|
|
$
53,540,574
|
|
$
39,425,975
|
|
$
31,637,490
|
|
$
30,668,177
|
|
(1) %
|
|
73 %
|
Less: Average goodwill
and other intangible assets, net
|
|
|
1,684,093
|
|
1,718,705
|
|
623,042
|
|
5,298
|
|
6,343
|
|
(2) %
|
|
nm
|
Average tangible
assets
|
o
|
|
$
51,327,268
|
|
$
51,821,869
|
|
$
38,802,933
|
|
$
31,632,192
|
|
$
30,661,834
|
|
(1) %
|
|
67 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common
shareholders' equity
|
p
|
|
$
4,866,975
|
|
$
4,935,239
|
|
$
3,349,761
|
|
$
2,438,639
|
|
$
2,567,266
|
|
(1) %
|
|
90 %
|
Less: Average goodwill
and other intangible assets, net
|
|
|
1,684,093
|
|
1,718,705
|
|
623,042
|
|
5,298
|
|
6,343
|
|
(2) %
|
|
nm
|
Average tangible
common equity
|
q
|
|
$
3,182,882
|
|
$
3,216,534
|
|
$
2,726,719
|
|
$
2,433,341
|
|
$
2,560,923
|
|
(1) %
|
|
24 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding (1)
|
r
|
|
208,070
|
|
207,977
|
|
156,383
|
|
129,321
|
|
129,319
|
|
0 %
|
|
61 %
|
Weighted average
diluted shares outstanding (1)
|
s
|
|
208,645
|
|
208,545
|
|
156,383
|
|
129,801
|
|
129,733
|
|
0 %
|
|
61 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select Per-Share
& Performance Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings-per-share -
basic (1)
|
j / r
|
|
$
0.65
|
|
$
0.64
|
|
$
(0.09)
|
|
$
0.64
|
|
$
0.65
|
|
2 %
|
|
— %
|
Earnings-per-share -
diluted (1)
|
j / s
|
|
$
0.65
|
|
$
0.64
|
|
$
(0.09)
|
|
$
0.64
|
|
$
0.65
|
|
2 %
|
|
— %
|
Efficiency ratio
(2)
|
h / f
|
|
57.82 %
|
|
62.60 %
|
|
79.71 %
|
|
57.24 %
|
|
56.07 %
|
|
(4.78)
|
|
1.75
|
Return on average
assets
|
j / n
|
|
1.02 %
|
|
1.00 %
|
|
(0.14) %
|
|
1.04 %
|
|
1.09 %
|
|
0.02
|
|
(0.07)
|
Return on average
tangible assets
|
j / o
|
|
1.05 %
|
|
1.03 %
|
|
(0.15) %
|
|
1.04 %
|
|
1.09 %
|
|
0.02
|
|
(0.04)
|
PPNR return on average
assets
|
k / n
|
|
1.65 %
|
|
1.46 %
|
|
0.89 %
|
|
1.82 %
|
|
1.80 %
|
|
0.19
|
|
(0.15)
|
Return on average
common equity
|
j / p
|
|
11.07 %
|
|
10.84 %
|
|
(1.70) %
|
|
13.50 %
|
|
12.99 %
|
|
0.23
|
|
(1.92)
|
Return on average
tangible common equity
|
j / q
|
|
16.93 %
|
|
16.63 %
|
|
(2.09) %
|
|
13.53 %
|
|
13.02 %
|
|
0.30
|
|
3.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Per-Share
& Performance Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings-per-share - basic (1)
|
m / r
|
|
$
0.79
|
|
$
0.81
|
|
$
0.46
|
|
$
0.77
|
|
$
0.79
|
|
(2) %
|
|
— %
|
Operating
earnings-per-share - diluted (1)
|
m / s
|
|
$
0.79
|
|
$
0.81
|
|
$
0.46
|
|
$
0.76
|
|
$
0.79
|
|
(2) %
|
|
— %
|
Operating efficiency
ratio (2)
|
i / g
|
|
51.97 %
|
|
54.85 %
|
|
53.46 %
|
|
52.01 %
|
|
51.72 %
|
|
(2.88)
|
|
0.25
|
Operating return on
average assets
|
m / n
|
|
1.23 %
|
|
1.27 %
|
|
0.74 %
|
|
1.24 %
|
|
1.33 %
|
|
(0.04)
|
|
(0.10)
|
Operating return on
average tangible assets
|
m / o
|
|
1.27 %
|
|
1.31 %
|
|
0.75 %
|
|
1.24 %
|
|
1.33 %
|
|
(0.04)
|
|
(0.06)
|
Operating PPNR return
on average assets
|
l / n
|
|
1.94 %
|
|
1.82 %
|
|
2.01 %
|
|
2.10 %
|
|
2.12 %
|
|
0.12
|
|
(0.18)
|
Operating return on
average common equity
|
m / p
|
|
13.40 %
|
|
13.77 %
|
|
8.66 %
|
|
16.14 %
|
|
15.86 %
|
|
(0.37)
|
|
(2.46)
|
Operating return on
average tangible common equity
|
m / q
|
|
20.48 %
|
|
21.13 %
|
|
10.64 %
|
|
16.18 %
|
|
15.90 %
|
|
(0.65)
|
|
4.58
|
|
|
(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.
|
(2)
|
Tax exempt interest has
been adjusted to a taxable equivalent basis using a 21% tax rate
and added to stated revenue for this calculation.
|
Columbia Banking
System, Inc.
|
GAAP to Non-GAAP
Reconciliation - Continued
|
(Unaudited)
|
|
|
|
Nine Months
Ended
|
|
%
Change
|
($ in
thousands)
|
|
|
Sep 30,
2023
|
|
Sep 30,
2022
|
|
Year over
Year
|
Non-Interest Income
Adjustments
|
|
|
|
|
|
|
|
Gain on sale of debt
securities, net
|
|
|
$
4
|
|
$
2
|
|
100 %
|
Loss on equity
securities, net
|
|
|
(336)
|
|
(7,383)
|
|
(95) %
|
Gain on swap
derivatives
|
|
|
3,445
|
|
18,578
|
|
(81) %
|
Change in fair value
of certain loans held for investment
|
|
|
(16,724)
|
|
(62,656)
|
|
(73) %
|
Change in fair value
of MSR due to valuation inputs or assumptions
|
|
|
129
|
|
67,451
|
|
(100) %
|
MSR hedge
loss
|
|
|
(9,719)
|
|
(14,128)
|
|
(31) %
|
Total non-interest
income adjustments
|
a
|
|
$
(23,201)
|
|
$
1,864
|
|
nm
|
|
|
|
|
|
|
|
|
Non-Interest Expense
Adjustments
|
|
|
|
|
|
|
|
Merger related
expense
|
|
|
$
164,485
|
|
$
5,719
|
|
nm
|
Exit and disposal
costs
|
|
|
7,427
|
|
4,839
|
|
53 %
|
Total non-interest
expense adjustments
|
b
|
|
$
171,912
|
|
$
10,558
|
|
nm
|
|
|
|
|
|
|
|
|
Net interest
income
|
c
|
|
$
1,339,548
|
|
$
764,537
|
|
75 %
|
|
|
|
|
|
|
|
|
Non-interest income
(GAAP)
|
d
|
|
$
138,394
|
|
$
164,649
|
|
(16) %
|
Less: Non-interest
income adjustments
|
a
|
|
23,201
|
|
(1,864)
|
|
nm
|
Operating
non-interest income (non-GAAP)
|
e
|
|
$
161,595
|
|
$
162,785
|
|
(1) %
|
|
|
|
|
|
|
|
|
Revenue
(GAAP)
|
f=c+d
|
|
$
1,477,942
|
|
$
929,186
|
|
59 %
|
Operating revenue
(non-GAAP)
|
g=c+e
|
|
$
1,501,143
|
|
$
927,322
|
|
62 %
|
|
|
|
|
|
|
|
|
Non-interest expense
(GAAP)
|
h
|
|
$
975,524
|
|
$
539,968
|
|
81 %
|
Less: Non-interest
expense adjustments
|
b
|
|
(171,912)
|
|
(10,558)
|
|
nm
|
Operating
non-interest expense (non-GAAP)
|
i
|
|
$
803,612
|
|
$
529,410
|
|
52 %
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
j
|
|
$
255,184
|
|
$
253,788
|
|
1 %
|
Provision for income
taxes
|
|
|
88,944
|
|
84,362
|
|
5 %
|
Income before provision
for income taxes
|
|
|
344,128
|
|
338,150
|
|
2 %
|
Provision for credit
losses
|
|
|
158,290
|
|
51,068
|
|
210 %
|
Pre-provision net
revenue (PPNR) (non-GAAP)
|
k
|
|
502,418
|
|
389,218
|
|
29 %
|
Less: Non-interest
income adjustments
|
a
|
|
23,201
|
|
(1,864)
|
|
nm
|
Add: Non-interest
expense adjustments
|
b
|
|
171,912
|
|
10,558
|
|
nm
|
Operating PPNR
(non-GAAP)
|
l
|
|
$
697,531
|
|
$
397,912
|
|
75 %
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
j
|
|
$
255,184
|
|
$
253,788
|
|
1 %
|
Less: Non-interest
income adjustments
|
a
|
|
23,201
|
|
(1,864)
|
|
nm
|
Add: Non-interest
expense adjustments
|
b
|
|
171,912
|
|
10,558
|
|
nm
|
Tax effect of
adjustments
|
|
|
(45,028)
|
|
(2,020)
|
|
nm
|
Operating net income
(non-GAAP)
|
m
|
|
$
405,269
|
|
$
260,462
|
|
56 %
|
nm = not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
assets
|
n
|
|
$
48,709,067
|
|
$
30,541,027
|
|
59 %
|
Less: Average goodwill
and other intangible assets, net
|
|
|
1,345,833
|
|
7,369
|
|
nm
|
Average tangible
assets
|
o
|
|
$
47,363,234
|
|
$
30,533,658
|
|
55 %
|
|
|
|
|
|
|
|
|
Average common
shareholders' equity
|
p
|
|
$
4,389,549
|
|
$
2,621,725
|
|
67 %
|
Less: Average goodwill
and other intangible assets, net
|
|
|
1,345,833
|
|
7,369
|
|
nm
|
Average tangible
common equity
|
q
|
|
$
3,043,716
|
|
$
2,614,356
|
|
16 %
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding (1)
|
r
|
|
190,997
|
|
129,262
|
|
48 %
|
Weighted average
diluted shares outstanding (1)
|
s
|
|
191,546
|
|
129,702
|
|
48 %
|
|
|
|
|
|
|
|
|
Select Per-Share
& Performance Metrics
|
|
|
|
|
|
|
|
Earnings-per-share -
basic (1)
|
j / r
|
|
$
1.34
|
|
$
1.96
|
|
(32) %
|
Earnings-per-share -
diluted (1)
|
j / s
|
|
$
1.33
|
|
$
1.96
|
|
(32) %
|
Efficiency ratio
(2)
|
h / f
|
|
65.87 %
|
|
58.05 %
|
|
7.82
|
Return on average
assets
|
j / n
|
|
0.70 %
|
|
1.11 %
|
|
(0.41)
|
Return on average
tangible assets
|
j / o
|
|
0.72 %
|
|
1.11 %
|
|
(0.39)
|
PPNR return on average
assets
|
k/n
|
|
1.38 %
|
|
1.70 %
|
|
(0.32)
|
Return on average
common equity
|
j / p
|
|
7.77 %
|
|
12.94 %
|
|
(5.17)
|
Return on average
tangible common equity
|
j / q
|
|
11.21 %
|
|
12.98 %
|
|
(1.77)
|
|
|
|
|
|
|
|
|
Operating Per-Share
& Performance Metrics
|
|
|
|
|
|
|
|
Operating
earnings-per-share - basic (1)
|
m / r
|
|
$
2.12
|
|
$
2.01
|
|
5 %
|
Operating
earnings-per-share - diluted (1)
|
m / s
|
|
$
2.12
|
|
$
2.01
|
|
5 %
|
Operating efficiency
ratio (2)
|
i / g
|
|
53.43 %
|
|
57.03 %
|
|
(3.60)
|
Operating return on
average assets
|
m / n
|
|
1.11 %
|
|
1.14 %
|
|
(0.03)
|
Operating return on
average tangible assets
|
m / o
|
|
1.14 %
|
|
1.14 %
|
|
—
|
Operating PPNR return
on average assets
|
l / n
|
|
1.91 %
|
|
1.74 %
|
|
0.17
|
Operating return on
average common equity
|
m / p
|
|
12.34 %
|
|
13.28 %
|
|
(0.94)
|
Operating return on
average tangible common equity
|
m / q
|
|
17.80 %
|
|
13.32 %
|
|
4.48
|
|
|
(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.
|
(2)
|
Tax exempt interest has
been adjusted to a taxable equivalent basis using a 21% tax rate
and added to stated revenue for this calculation.
|
Columbia Banking
System, Inc.
|
GAAP to Non-GAAP
Reconciliation - Continued
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
%
Change
|
($ in
thousands)
|
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Seq.
Quarter
|
|
Year over
Year
|
Loans and leases
interest income
|
a
|
|
$ 567,929
|
|
$ 551,997
|
|
$ 412,726
|
|
$ 320,747
|
|
$
276,625
|
|
3 %
|
|
105 %
|
Less: Acquired loan
accretion - rate related (2), (3)
|
b
|
|
28,963
|
|
30,548
|
|
11,832
|
|
387
|
|
789
|
|
(5) %
|
|
nm
|
Less: Acquired loan
accretion - credit related (3)
|
c
|
|
6,370
|
|
7,100
|
|
3,806
|
|
—
|
|
—
|
|
(10) %
|
|
nm
|
Adjusted loans and
leases interest income
|
d=a-b-c
|
|
$ 532,596
|
|
$ 514,349
|
|
$ 397,088
|
|
$ 320,360
|
|
$
275,836
|
|
4 %
|
|
93 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities
interest income
|
e
|
|
$
85,007
|
|
$
81,617
|
|
$
40,448
|
|
$
18,290
|
|
$
18,261
|
|
4 %
|
|
366 %
|
Less: Acquired taxable
securities accretion - rate related
|
f
|
|
39,219
|
|
34,801
|
|
15,356
|
|
—
|
|
—
|
|
13 %
|
|
nm
|
Adjusted Taxable
securities interest income
|
g=e-f
|
|
$
45,788
|
|
$
46,816
|
|
$
25,092
|
|
$
18,290
|
|
$
18,261
|
|
(2) %
|
|
151 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-taxable
securities interest income (1)
|
h
|
|
$
8,085
|
|
$
8,010
|
|
$
4,068
|
|
$
1,571
|
|
$
1,651
|
|
1 %
|
|
390 %
|
Less: Acquired
non-taxable securities accretion - rate related
|
i
|
|
2,288
|
|
2,274
|
|
901
|
|
—
|
|
—
|
|
1 %
|
|
nm
|
Adjusted Taxable
securities interest income (1)
|
j=h-i
|
|
$
5,797
|
|
$
5,736
|
|
$
3,167
|
|
$
1,571
|
|
$
1,651
|
|
1 %
|
|
251 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
(1)
|
k
|
|
$ 697,169
|
|
$ 676,922
|
|
$ 476,622
|
|
$ 352,530
|
|
$
303,857
|
|
3 %
|
|
129 %
|
Less: Acquired loan
and securities accretion - rate related
|
l=b+f+i
|
|
70,470
|
|
67,623
|
|
28,089
|
|
387
|
|
789
|
|
4 %
|
|
nm
|
Less: Acquired loan
accretion - credit related
|
c
|
|
6,370
|
|
7,100
|
|
3,806
|
|
—
|
|
—
|
|
(10) %
|
|
nm
|
Adjusted interest
income (1)
|
m=k-l-c
|
|
$ 620,329
|
|
$ 602,199
|
|
$ 444,727
|
|
$ 352,143
|
|
$
303,068
|
|
3 %
|
|
105 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits interest expense
|
n
|
|
$ 126,974
|
|
$ 100,408
|
|
$
63,613
|
|
$
31,174
|
|
$
9,090
|
|
26 %
|
|
nm
|
Less: Acquired deposit
accretion
|
o
|
|
(373)
|
|
(280)
|
|
(93)
|
|
—
|
|
—
|
|
33 %
|
|
nm
|
Adjusted
interest-bearing deposits interest expense
|
p=n-o
|
|
$ 127,347
|
|
$ 100,688
|
|
$
63,706
|
|
$
31,174
|
|
$
9,090
|
|
26 %
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
q
|
|
$ 215,138
|
|
$ 191,754
|
|
$ 101,253
|
|
$
46,768
|
|
$
15,924
|
|
12 %
|
|
nm
|
Less: Acquired
interest-bearing liabilities accretion (2)
|
r
|
|
(430)
|
|
(337)
|
|
(150)
|
|
(57)
|
|
(57)
|
|
28 %
|
|
nm
|
Adjusted interest
expense
|
s=q-r
|
|
$ 215,568
|
|
$ 192,091
|
|
$ 101,403
|
|
$
46,825
|
|
$
15,981
|
|
12 %
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income
(1)
|
t
|
|
$ 482,031
|
|
$ 485,168
|
|
$ 375,369
|
|
$ 305,762
|
|
$
287,933
|
|
(1) %
|
|
67 %
|
Less: Acquired loan,
securities, and interest-bearing liabilities
accretion - rate related (3)
|
u=l-r
|
|
70,900
|
|
67,960
|
|
28,239
|
|
444
|
|
846
|
|
4 %
|
|
nm
|
Less: Acquired loan
accretion - credit related (3)
|
c
|
|
6,370
|
|
7,100
|
|
3,806
|
|
—
|
|
—
|
|
(10) %
|
|
nm
|
Adjusted net
interest income (1)
|
v=t-u-c
|
|
$ 404,761
|
|
$ 410,108
|
|
$ 343,324
|
|
$ 305,318
|
|
$
287,087
|
|
(1) %
|
|
41 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans and
leases
|
aa
|
|
37,050,518
|
|
37,169,315
|
|
29,998,630
|
|
25,855,556
|
|
24,886,203
|
|
0 %
|
|
49 %
|
Average taxable
securities
|
ab
|
|
8,356,165
|
|
8,656,147
|
|
4,960,966
|
|
3,042,044
|
|
3,271,185
|
|
(3) %
|
|
155 %
|
Average non-taxable
securities
|
ac
|
|
844,417
|
|
865,278
|
|
437,020
|
|
200,825
|
|
212,847
|
|
(2) %
|
|
297 %
|
Average
interest-earning assets
|
ad
|
|
48,981,105
|
|
49,442,518
|
|
37,055,705
|
|
30,305,129
|
|
29,437,103
|
|
(1) %
|
|
66 %
|
Average
interest-bearing deposits
|
ae
|
|
25,121,745
|
|
24,494,717
|
|
19,496,551
|
|
16,103,984
|
|
15,350,390
|
|
3 %
|
|
64 %
|
Average
interest-bearing liabilities
|
af
|
|
31,413,978
|
|
31,372,416
|
|
22,548,264
|
|
17,668,730
|
|
16,359,575
|
|
0 %
|
|
92 %
|
|
|
(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)
|
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Sep 30,
2022
|
|
Seq.
Quarter
|
|
Year over
Year
|
Average yield on
loans and leases
|
a /
aa
|
|
6.08 %
|
|
5.95 %
|
|
5.55 %
|
|
4.92 %
|
|
4.41 %
|
|
0.13
|
|
1.67
|
Less: Acquired loan
accretion - rate related (2),(3)
|
b /
aa
|
|
0.31 %
|
|
0.33 %
|
|
0.16 %
|
|
0.01 %
|
|
0.01 %
|
|
(0.02)
|
|
0.30
|
Less: Acquired loan
accretion - credit related (3)
|
c /
aa
|
|
0.07 %
|
|
0.08 %
|
|
0.05 %
|
|
— %
|
|
— %
|
|
(0.01)
|
|
0.07
|
Adjusted average
yield on loans and leases
|
d /
aa
|
|
5.70 %
|
|
5.54 %
|
|
5.34 %
|
|
4.91 %
|
|
4.40 %
|
|
0.16
|
|
1.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average yield on
taxable securities
|
e /
ab
|
|
4.07 %
|
|
3.77 %
|
|
3.26 %
|
|
2.40 %
|
|
2.23 %
|
|
0.30
|
|
1.84
|
Less: Acquired taxable
securities accretion - rate related
|
f /
ab
|
|
1.86 %
|
|
1.61 %
|
|
1.26 %
|
|
— %
|
|
— %
|
|
0.25
|
|
1.86
|
Adjusted average
yield on taxable securities
|
g /
ab
|
|
2.21 %
|
|
2.16 %
|
|
2.00 %
|
|
2.40 %
|
|
2.23 %
|
|
0.05
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average yield on
non-taxable securities (1)
|
h /
ac
|
|
3.83 %
|
|
3.70 %
|
|
3.72 %
|
|
3.13 %
|
|
3.10 %
|
|
0.13
|
|
0.73
|
Less: Acquired
non-taxable securities accretion - rate related
|
i /
ac
|
|
1.07 %
|
|
1.05 %
|
|
0.84 %
|
|
— %
|
|
— %
|
|
0.02
|
|
1.07
|
Adjusted yield on
non-taxable securities (1)
|
j /
ac
|
|
2.76 %
|
|
2.65 %
|
|
2.88 %
|
|
3.13 %
|
|
3.10 %
|
|
0.11
|
|
(0.34)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average yield on
interest-earning assets (1)
|
k /
ad
|
|
5.65 %
|
|
5.48 %
|
|
5.19 %
|
|
4.62 %
|
|
4.10 %
|
|
0.17
|
|
1.55
|
Less: Acquired loan
and securities accretion - rate related
|
l /
ad
|
|
0.57 %
|
|
0.55 %
|
|
0.31 %
|
|
0.01 %
|
|
0.01 %
|
|
0.02
|
|
0.56
|
Less: Acquired loan
accretion - credit related
|
c /
ad
|
|
0.05 %
|
|
0.06 %
|
|
0.04 %
|
|
— %
|
|
— %
|
|
(0.01)
|
|
0.05
|
Adjusted average
yield on interest-earning assets (1)
|
m /
ad
|
|
5.03 %
|
|
4.87 %
|
|
4.84 %
|
|
4.61 %
|
|
4.09 %
|
|
0.16
|
|
0.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate on
interest-bearing deposits
|
n /
ae
|
|
2.01 %
|
|
1.64 %
|
|
1.32 %
|
|
0.77 %
|
|
0.23 %
|
|
0.37
|
|
1.78
|
Less: Acquired deposit
accretion
|
o /
ae
|
|
(0.01) %
|
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
(0.01)
|
|
(0.01)
|
Adjusted average
rate on interest-bearing deposits
|
p /
ae
|
|
2.02 %
|
|
1.64 %
|
|
1.32 %
|
|
0.77 %
|
|
0.23 %
|
|
0.38
|
|
1.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate on
interest-bearing liabilities
|
q /
af
|
|
2.72 %
|
|
2.45 %
|
|
1.82 %
|
|
1.05 %
|
|
0.39 %
|
|
0.27
|
|
2.33
|
Less: Acquired
interest-bearing liabilities accretion (2)
|
r /
af
|
|
(0.01) %
|
|
— %
|
|
— %
|
|
— %
|
|
— %
|
|
(0.01)
|
|
(0.01)
|
Adjusted average
rate on interest-bearing liabilities
|
s /
af
|
|
2.73 %
|
|
2.45 %
|
|
1.82 %
|
|
1.05 %
|
|
0.39 %
|
|
0.28
|
|
2.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(1)
|
t /
ad
|
|
3.91 %
|
|
3.93 %
|
|
4.08 %
|
|
4.01 %
|
|
3.88 %
|
|
(0.02)
|
|
0.03
|
Less: Acquired loan,
securities, and interest-bearing liabilities
accretion - rate related (3)
|
u /
ad
|
|
0.58 %
|
|
0.55 %
|
|
0.31 %
|
|
— %
|
|
0.01 %
|
|
0.03
|
|
0.57
|
Less: Acquired loan
accretion - credit related (3)
|
c /
ad
|
|
0.05 %
|
|
0.06 %
|
|
0.04 %
|
|
— %
|
|
— %
|
|
(0.01)
|
|
0.05
|
Adjusted net
interest margin (1)
|
v /
ad
|
|
3.28 %
|
|
3.32 %
|
|
3.73 %
|
|
4.01 %
|
|
3.87 %
|
|
(0.04)
|
|
(0.59)
|
|
|
(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)
|
|
|
|
Nine Months
Ended
|
|
|
($ in
thousands)
|
|
|
Sep 30,
2023
|
|
Sep 30,
2022
|
|
Year over
Year
|
Loans and leases
interest income
|
a
|
|
$
1,532,652
|
|
$
720,699
|
|
113 %
|
Less: Acquired loan
accretion - rate related (2), (3)
|
b
|
|
71,343
|
|
3,290
|
|
nm
|
Less: Acquired loan
accretion - credit related (3)
|
c
|
|
17,276
|
|
—
|
|
nm
|
Adjusted loans and
leases interest income
|
d=a-b-c
|
|
$
1,444,033
|
|
$
717,409
|
|
101 %
|
|
|
|
|
|
|
|
|
Taxable securities
interest income
|
e
|
|
$
207,072
|
|
$
54,412
|
|
281 %
|
Less: Acquired taxable
securities accretion - rate related
|
f
|
|
89,376
|
|
—
|
|
nm
|
Adjusted Taxable
securities interest income
|
g=e-f
|
|
$
117,696
|
|
$
54,412
|
|
116 %
|
|
|
|
|
|
|
|
|
Non-taxable
securities interest income (1)
|
h
|
|
$
20,163
|
|
$
5,098
|
|
296 %
|
Less: Acquired
non-taxable securities accretion - rate related
|
i
|
|
5,463
|
|
—
|
|
nm
|
Adjusted Taxable
securities interest income (1)
|
j=h-i
|
|
$
14,700
|
|
$
5,098
|
|
188 %
|
|
|
|
|
|
|
|
|
Interest income
(1)
|
k
|
|
$
1,850,713
|
|
$
796,805
|
|
132 %
|
Less: Acquired loan
and securities accretion - rate related
|
l=b+f+i
|
|
166,182
|
|
3,290
|
|
nm
|
Less: Acquired loan
accretion - credit related
|
c
|
|
17,276
|
|
—
|
|
nm
|
Adjusted interest
income (1)
|
m=k-l-c
|
|
$
1,667,255
|
|
$
793,515
|
|
110 %
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits interest expense
|
n
|
|
$
290,995
|
|
$
17,021
|
|
nm
|
Less: Acquired deposit
accretion
|
o
|
|
(746)
|
|
—
|
|
nm
|
Adjusted
interest-bearing deposits interest expense
|
p=n-o
|
|
$
291,741
|
|
$
17,021
|
|
nm
|
|
|
|
|
|
|
|
|
Interest
expense
|
q
|
|
$
508,145
|
|
$
31,233
|
|
nm
|
Less: Acquired
interest-bearing liabilities accretion (2)
|
r
|
|
(917)
|
|
(171)
|
|
436 %
|
Adjusted interest
expense
|
s=q-r
|
|
$
509,062
|
|
$
31,404
|
|
nm
|
|
|
|
|
|
|
|
|
Net Interest Income
(1)
|
t
|
|
$
1,342,568
|
|
$
765,572
|
|
75 %
|
Less: Acquired loan,
securities, and interest-bearing liabilities accretion - rate
related (3)
|
u=l-r
|
|
167,099
|
|
3,461
|
|
nm
|
Less: Acquired loan
accretion - credit related (3)
|
c
|
|
17,276
|
|
—
|
|
nm
|
Adjusted net
interest income (1)
|
v=t-u-c
|
|
$
1,158,193
|
|
$
762,111
|
|
52 %
|
|
|
|
|
|
|
|
|
Average loans and
leases
|
aa
|
|
34,765,319
|
|
23,676,201
|
|
47 %
|
Average taxable
securities
|
ab
|
|
7,336,862
|
|
3,445,386
|
|
113 %
|
Average non-taxable
securities
|
ac
|
|
717,064
|
|
222,375
|
|
222 %
|
Average
interest-earning assets
|
ad
|
|
45,203,459
|
|
29,303,722
|
|
54 %
|
Average
interest-bearing deposits
|
ae
|
|
23,091,034
|
|
15,422,795
|
|
50 %
|
Average
interest-bearing liabilities
|
af
|
|
28,510,120
|
|
16,355,258
|
|
74 %
|
|
|
(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)
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
|
|
Sep 30,
2023
|
|
Sep 30,
2022
|
|
Year over
Year
|
Average yield on
loans and leases
|
a /
aa
|
|
5.88 %
|
|
4.06 %
|
|
1.82
|
Less: Acquired loan
accretion - rate related (2),(3)
|
b /
aa
|
|
0.27 %
|
|
0.02 %
|
|
0.25
|
Less: Acquired loan
accretion - credit related (3)
|
c /
aa
|
|
0.07 %
|
|
— %
|
|
0.07
|
Adjusted average
yield on loans and leases
|
d /
aa
|
|
5.54 %
|
|
4.04 %
|
|
1.50
|
|
|
|
|
|
|
|
|
Average yield on
taxable securities
|
e /
ab
|
|
3.76 %
|
|
2.11 %
|
|
1.65
|
Less: Acquired taxable
securities accretion - rate related
|
f /
ab
|
|
1.63 %
|
|
— %
|
|
1.63
|
Adjusted average
yield on taxable securities
|
g /
ab
|
|
2.13 %
|
|
2.11 %
|
|
0.02
|
|
|
|
|
|
|
|
|
Average yield on
non-taxable securities (1)
|
h /
ac
|
|
3.75 %
|
|
3.06 %
|
|
0.69
|
Less: Acquired
non-taxable securities accretion - rate related
|
i /
ac
|
|
1.02 %
|
|
— %
|
|
1.02
|
Adjusted yield on
non-taxable securities (1)
|
j /
ac
|
|
2.73 %
|
|
3.06 %
|
|
(0.33)
|
|
|
|
|
|
|
|
|
Average yield on
interest-earning assets (1)
|
k /
ad
|
|
5.46 %
|
|
3.62 %
|
|
1.84
|
Less: Acquired loan
and securities accretion - rate related
|
l /
ad
|
|
0.49 %
|
|
0.02 %
|
|
0.47
|
Less: Acquired loan
accretion - credit related
|
c /
ad
|
|
0.05 %
|
|
— %
|
|
0.05
|
Adjusted average
yield on interest-earning assets (1)
|
m /
ad
|
|
4.92 %
|
|
3.60 %
|
|
1.32
|
|
|
|
|
|
|
|
|
Average rate on
interest-bearing deposits
|
n /
ae
|
|
1.68 %
|
|
0.15 %
|
|
1.53
|
Less: Acquired deposit
accretion
|
o /
ae
|
|
— %
|
|
— %
|
|
—
|
Adjusted average
rate on interest-bearing deposits
|
p /
ae
|
|
1.68 %
|
|
0.15 %
|
|
1.53
|
|
|
|
|
|
|
|
|
Average rate on
interest-bearing liabilities
|
q /
af
|
|
2.38 %
|
|
0.26 %
|
|
2.12
|
Less: Acquired
interest-bearing liabilities accretion (2)
|
r /
af
|
|
— %
|
|
— %
|
|
—
|
Adjusted average
rate on interest-bearing liabilities
|
s /
af
|
|
2.38 %
|
|
0.26 %
|
|
2.12
|
|
|
|
|
|
|
|
|
Net interest margin
(1)
|
t /
ad
|
|
3.96 %
|
|
3.48 %
|
|
0.48
|
Less: Acquired loan,
securities, and interest-bearing liabilities accretion - rate
related (3)
|
u /
ad
|
|
0.49 %
|
|
0.02 %
|
|
0.47
|
Less: Acquired loan
accretion - credit related (3)
|
c /
ad
|
|
0.05 %
|
|
— %
|
|
0.05
|
Adjusted net
interest margin (1)
|
v /
ad
|
|
3.42 %
|
|
3.46 %
|
|
(0.04)
|
|
|
(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.