Fourth Quarter 2023 Results
- Net income of $94 million, or
$0.45 per diluted common share
- Operating net income of $91
million, or $0.44 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 9.6% and 11.8% at
quarter end
TACOMA,
Wash., Jan. 24, 2024 /PRNewswire/ --
COLUMBIA BANKING
SYSTEM, INC. REPORTS FOURTH QUARTER 2023 RESULTS
|
$0.45
|
|
$0.44
|
|
$23.95
|
|
$16.12
|
Earnings per
diluted common share
|
|
Operating earnings
per diluted common share 1
|
|
Book value
per common share
|
|
Tangible book value
per common share 1
|
CEO
Commentary
|
"It was a historic year
for Columbia Banking System and Umpqua Bank," said Clint Stein,
President and CEO. "We closed and integrated the transformational
combination of the Northwest's premier banking organizations,
expanding our footprint to encompass eight Western states as we
achieved our cost-savings targets ahead of schedule and above our
original projections. With the integration behind us, we are now
turning our focus to optimizing performance and driving shareholder
value. The fourth quarter was noisy with the FDIC special
assessment and some one-time expense items. Our cost of funds is
not immune to the higher-rate environment, as we had some 2022
vintage CDs reprice and saw a material increase in public deposits
impact our margin. However, we believe neither of these items
dilutes the quality of our core deposit base. Our scale, products,
and services empower our talented base of associates to win
business, which we believe long-term will drive consistent,
repeatable performance."
|
–Clint Stein,
President and CEO of Columbia Banking System, Inc.
|
4Q23 HIGHLIGHTS
(COMPARED TO 3Q23)
|
|
|
|
|
Net Interest
Income and
NIM
|
•
Net interest income decreased to $454
million from $481 million in 3Q23 due primarily to higher deposit
costs that more than offset a decline in the cost of wholesale
borrowings.
|
|
•
Net interest margin was 3.78%, down 13
basis points from the prior quarter. Higher earning asset yields
and a more profitable mix of earning assets were offset by higher
deposit costs. Higher balances in public deposits and CD repricing
contributed to the quarter's net interest margin
contraction.
|
|
|
|
|
Non-Interest
Income and
Expense
|
•
Non-interest income increased by $22
million due primarily to a $28 million favorable change in
cumulative non-merger fair value accounting and hedges. Lower
mortgage banking revenue reflects an anticipated decline in
servicing revenue following the MSR asset sale that closed on
September 30, 2023.
|
|
•
Non-interest expense increased by $33
million due to a $33 million FDIC special assessment recorded
during the quarter and other elevated expense items, which offset
lower merger-related expense.
|
|
|
|
|
Credit
Quality
|
•
Net charge-offs were 0.31% of average
loans and leases (annualized) compared to 0.25% in the prior
quarter. Charge-off activity remains primarily centered in the
FinPac portfolio.
|
|
•
Provision expense of $55 million reflects
changes in the economic forecasts used in credit models and
portfolio migration trends.
|
|
•
Non-performing assets to total assets was
0.22% compared to 0.20% at September 30, 2023.
|
|
|
|
|
Capital
|
•
Estimated total risk-based capital ratio
of 11.8% and estimated common equity tier 1 risk-based capital
ratio of 9.6%.
|
|
•
Declared a quarterly cash dividend of
$0.36 per common share on November 13, 2023, which was paid
December 11, 2023.
|
|
|
|
|
Notable
items
|
•
Consolidated five branches in January
2024.
|
|
•
Incurred $7 million in merger-related
expense.
|
|
4Q23 KEY FINANCIAL
DATA
|
|
|
|
|
|
|
PERFORMANCE
METRICS
|
4Q23
|
|
3Q23
|
|
4Q22
|
Return on average
assets
|
0.72 %
|
|
1.02 %
|
|
1.04 %
|
Return on average
common equity
|
7.90 %
|
|
11.07 %
|
|
13.50 %
|
Return on average
tangible common equity 1
|
12.19 %
|
|
16.93 %
|
|
13.53 %
|
Operating return on
average assets 1
|
0.70 %
|
|
1.23 %
|
|
1.24 %
|
Operating return on
average common equity 1
|
7.73 %
|
|
13.40 %
|
|
16.14 %
|
Operating return on
average tangible common equity 1
|
11.92 %
|
|
20.48 %
|
|
16.18 %
|
Net interest
margin
|
3.78 %
|
|
3.91 %
|
|
4.01 %
|
Efficiency
ratio
|
64.81 %
|
|
57.82 %
|
|
57.24 %
|
|
|
|
|
|
|
INCOME
STATEMENT
($ in 000s, excl. per
share data)
|
4Q23
|
|
3Q23
|
|
4Q22
|
Net interest
income
|
$453,623
|
|
$480,875
|
|
$305,479
|
Provision for credit
losses
|
$54,909
|
|
$36,737
|
|
$32,948
|
Non-interest
income
|
$65,533
|
|
$43,981
|
|
$34,879
|
Non-interest
expense
|
$337,176
|
|
$304,147
|
|
$194,982
|
Pre-provision net
revenue 1
|
$181,980
|
|
$220,709
|
|
$145,376
|
Operating pre-provision
net revenue1
|
$179,213
|
|
$258,687
|
|
$167,094
|
Earnings per common
share - diluted 2
|
$0.45
|
|
$0.65
|
|
$0.64
|
Operating earnings per
common share - diluted 1,2
|
$0.44
|
|
$0.79
|
|
$0.76
|
Dividends paid per
share 2
|
$0.36
|
|
$0.36
|
|
$0.35
|
|
|
|
|
|
|
BALANCE
SHEET
|
4Q23
|
|
3Q23
|
|
4Q22
|
Total assets
|
$52.2B
|
|
$52.0B
|
|
$31.8B
|
Loans and
leases
|
$37.4B
|
|
$37.2B
|
|
$26.2B
|
Total
deposits
|
$41.6B
|
|
$41.6B
|
|
$27.1B
|
Book value per common
share 2
|
$23.95
|
|
$22.21
|
|
$19.18
|
Tangible book value per
share1,2
|
$16.12
|
|
$14.22
|
|
$19.14
|
|
|
|
|
|
|
|
|
1 "Non-GAAP"
financial measure. See GAAP to Non-GAAP Reconciliation for
the comparable GAAP measurement.
|
2
Periods prior to February 28, 2023, have been restated as a result
of the adjustment to common shares outstanding based on the
exchange ratio from the merger of 0.5958.
|
Organizational Update
Columbia Banking System, Inc.
("Columbia", "we", or "our")
realized $143 million in annualized
net merger-related cost-savings as of December 31, 2023, outpacing the $135 million target communicated when the
combination was announced. As the integration process is now
largely complete, we do not intend to provide future updates on
cost savings realizations. However, Columbia has a history of prudent expense
management, and the company will continue to evaluate opportunities
for improved efficiency as part of the normal course of business to
offset franchise development investments. As previously disclosed,
Umpqua Bank, the primary subsidiary of Columbia, consolidated five branches during
January 2024.
On February 28, 2023, Columbia completed its merger with Umpqua
Holdings Corporation ("UHC"), combining the two premier banks in
the Northwest to create one of the largest banks headquartered in
the West (the "merger"). Columbia's financial results for any periods
ended prior to February 28, 2023
reflect UHC results only on a standalone basis. In addition,
Columbia's reported financial
results for the first quarter of 2023 reflect UHC financial results
only until the closing of the merger after the close of business on
February 28, 2023. As a result of
these two factors, Columbia's
financial results for each of the quarters of 2023 and the year
ended December 31, 2023 may not be
directly comparable to prior reported periods. The number of shares
issued and outstanding, earnings per share, additional paid-in
capital, and all references to share quantities or metrics of
Columbia have been retrospectively
restated to reflect the equivalent number of shares issued in the
merger as the merger was treated as a reverse merger. Under the
reverse acquisition method of accounting, the assets and
liabilities of Columbia as of
February 28, 2023 ("historical
Columbia") were recorded at their
respective fair values.
Net Interest Income
Net interest income was
$454 million for the fourth quarter
of 2023, down $27 million from the
prior quarter. The decline reflects higher deposit costs that more
than offset a decline in the cost of wholesale borrowings.
Columbia's net interest margin
was 3.78% for the fourth quarter of 2023, down 13 basis points from
3.91% for the third quarter of 2023. The cost of interest-bearing
deposits increased 53 basis points on a linked-quarter basis to
2.54% for the fourth quarter of 2023, which compares to 2.71%
for the month of December and 2.75% at December 31, 2023.
Deposit costs were impacted by the full quarter's run rate of
brokered deposits added during the third quarter to replace
maturing FHLB advances. Further, higher public deposit balances,
which reflect seasonal tax-related trends and a focused effort to
attract relationship-based public funds in local communities as we
work to reduce wholesale funding, also had an impact. Public
balances tend to carry a higher interest rate than most other
non-maturity deposit balances. Time deposits also contributed to
the quarter's increased cost of deposits as many maturing balances
repriced over 200 basis points higher at the expiration of their
12- and 13-month terms. Columbia's
cost of interest-bearing liabilities increased 30 basis points on a
linked-quarter basis to 3.02% for the fourth quarter of 2023, which
compares to 3.15% for the month of December and 3.19% at
December 31, 2023. A reduction in the
balance of average wholesale borrowings resulted in a smaller
increase in the cost of interest-bearing liabilities compared to
interest-bearing deposits. Please refer to the Q4 2023 Earnings
Presentation for additional net interest margin change details and
interest rate sensitivity information as well as to our non-GAAP
disclosures in this press release for the impact of purchase
accounting accretion and amortization on individual line items.
Non-interest Income
Non-interest income was $66
million for the fourth quarter of 2023, up $22 million from the prior quarter. A
$28 million favorable change in fair
value adjustments and mortgage servicing rights ("MSR") hedging
activity reflects a net fair value gain of $13 million in the fourth quarter, compared to a
net fair value loss of $15 million in
the third quarter, as detailed in our non-GAAP disclosures. This
benefit was partially offset by lower mortgage servicing income
following the September 30, 2023 sale
of approximately one-third of Columbia's MSR assets, which reduced the
serviced loan portfolio by an equivalent amount.
Non-interest Expense
Non-interest expense was
$337 million for the fourth quarter
of 2023, up $33 million from the
prior quarter. The increase was driven by a recorded $33 million expense for the special assessment
from the FDIC to replenish the Deposit Insurance Fund following
bank closures earlier in 2023. The fourth quarter was also impacted
by other elevated expense items that offset a $12 million
decline in merger-related expense, which was $7 million in the fourth quarter. Please refer to
the Q4 2023 Earnings Presentation for additional expense details,
including an update on realized merger-related cost-savings through
December 31, 2023.
Balance Sheet
Total consolidated assets were
$52.2 billion as of December 31,
2023, essentially unchanged from September 30, 2023. Cash and
cash equivalents was $2.2 billion as
of December 31, 2023, a decrease of $241 million relative
to September 30, 2023. Including secured off-balance sheet
lines of credit, total available liquidity was $18.7 billion as of December 31, 2023,
representing 36% of total assets, 45% of total deposits, and 138%
of uninsured deposits. Available for sale ("AFS") securities, which
are held on balance sheet at fair value, were $8.8 billion as of December 31, 2023, an
increase of $326 million relative to
September 30, 2023, as an increase in the fair value of the
portfolio and accretion of the discount on historical Columbia securities more than offset paydowns.
Columbia did not purchase any
securities during the fourth quarter. Please refer to the Q4 2023
Earnings Presentation for additional details related to our
securities portfolio and liquidity position.
Gross loans and leases were $37.4 billion as of
December 31, 2023, an increase of $271
million relative to September 30, 2023. "Higher
outstanding commercial term and line balances and other
relationship-driven expansion contributed to 3% annualized loan
growth in the fourth quarter," stated Chris
Merrywell, President of Umpqua Bank. "Our bankers remain
laser-focused on generating business founded through relationships
that drive balanced growth." Please refer to the Q4 2023 Earnings
Presentation for additional details related to our loan portfolio,
which include underwriting characteristics, the composition of our
commercial portfolios, and disclosure related to our office
portfolio.
Total deposits were $41.6 billion
as of December 31, 2023, essentially unchanged from
September 30, 2023. "While total deposit balances were stable
between September and December, the mix reflects a shift into
interest-bearing demand accounts," commented Mr. Merrywell.
"Non-interest bearing balance changes continue to reflect
customers' use of cash, which includes tax payments and lower
escrow balances during the fourth quarter. Our targeted efforts to
expand our network of public deposits throughout our communities
helped offset seasonal customer declines without the use of
wholesale funding." Please refer to the Q4 2023 Earnings
Presentation for additional details related to deposit
characteristics and flows.
Credit Quality
The allowance for credit losses was
$464 million, or 1.24% of loans and
leases, as of December 31, 2023,
compared to $438 million, or 1.18% of
loans and leases, as of September 30,
2023. The provision for credit losses was $55 million for the fourth quarter of 2023, and
it reflects changes in the economic forecasts used in credit models
and portfolio migration trends. Please refer to the Q4 2023
Earnings Presentation for additional details related to the
allowance for credit losses and other credit trends.
Net charge-offs were 0.31% of average loans and leases
(annualized) for the fourth quarter of 2023, compared to 0.25% for
the third quarter of 2023. Net charge-off activity continued to be
centered in the FinPac portfolio as bank charge-off activity was
low at 0.06% of average bank loans. As of December 31, 2023, non-performing assets were
$114 million, or 0.22% of total
assets, compared to $106 million, or
0.20% of total assets, as of September 30,
2023.
Capital
As of December 31, 2023, Columbia's book value per common share
increased to $23.95, compared to
$22.21 at September 30, 2023.
The linked-quarter change in book value primarily reflects a change
in accumulated other comprehensive (loss) income ("AOCI") to
$(340) million at December 31,
2023, compared to $(680) million at
the prior quarter-end. The change in AOCI is due primarily to a
decrease in the tax-effected net unrealized loss on AFS securities
to $322 million as of
December 31, 2023, compared to $650
million as of September 30, 2023. As of December 31, 2023, 54% of the AFS securities
portfolio was in an unrealized gain position. Tangible book value
per common share[3] correspondingly increased to $16.12, compared to $14.22 at September 30,
2023.
Columbia's estimated total
risk-based capital ratio was 11.8% and its estimated common equity
tier 1 risk-based capital ratio was 9.6% as of December 31, 2023, compared to 11.6% and 9.5%,
respectively, as of September 30,
2023. Columbia remains
above current "well-capitalized" regulatory minimums. "Our
regulatory capital ratios continued to expand in the fourth
quarter," stated Ron Farnsworth,
Chief Financial Officer of Columbia. "We expect our capital position to
continue to build over time, supporting our franchise expansion and
increasing flexibility for capital return." The regulatory capital
ratios as of December 31, 2023 are
estimates, pending completion and filing of Columbia's regulatory reports.
Earnings Presentation and Conference Call
Information
Columbia's Q4
2023 Earnings Presentation provides additional disclosure. A copy
will be available on our investor relations page:
www.columbiabankingsystem.com.
Columbia will host its fourth
quarter 2023 earnings conference call on January 24, 2024, at 2:00
p.m. PT (5:00 p.m. ET). During
the call, Columbia's management
will provide an update on recent activities and discuss its fourth
quarter 2023 financial results. Participants may register for the
call using the below link to receive dial-in details and their own
unique PINs or join the audiocast. It is recommended you join 10
minutes prior to the start time.
Register for the
call: https://register.vevent.com/register/BI2ed0e3ce03e94a7a968c1bbb26fa939c
Join the audiocast:
https://edge.media-server.com/mmc/p/eo4z866c/
Access the replay through Columbia's investor relations
page: www.columbiabankingsystem.com
About Columbia Banking System, Inc.
Columbia (Nasdaq: COLB) is headquartered in
Tacoma, Washington and is the
parent company of Umpqua Bank, an award-winning western U.S.
regional bank based in Lake Oswego,
Oregon. In March of 2023, Columbia and Umpqua combined two of the Pacific Northwest's
premier financial institutions under the Umpqua Bank brand to
create one of the largest banks headquartered in the West and a
top-30 U.S. bank. With over $50
billion of assets, Umpqua Bank combines the resources,
sophistication and expertise of a national bank with a commitment
to deliver personalized service at scale. The bank operates in
Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah,
and Washington and supports
consumers and businesses through a full suite of services,
including retail and commercial banking; Small Business
Administration lending; institutional and corporate banking; and
equipment leasing. Umpqua Bank customers also have access to
comprehensive investment and wealth management expertise as well as
healthcare and private banking through Columbia Wealth Management
and Columbia Trust Company, a subsidiary of Columbia. Learn more at
www.columbiabankingsystem.com.
Forward-Looking 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 merger when
expected or at all; potential adverse reactions or changes to
business or employee relationships, including those resulting from
the completion of the merger and integration of the companies; the
effect of geopolitical instability, including wars, conflicts and
terrorist attacks; and natural disasters and other similar
unexpected events outside of our control. We also caution that the
amount and timing of any future common stock dividends or
repurchases will depend on the earnings, cash requirements and
financial condition of Columbia,
market conditions, capital requirements, applicable law and
regulations (including federal securities laws and federal banking
regulations), and other factors deemed relevant by Columbia's Board of Directors, and may be
subject to regulatory approval or conditions.
1 "Non-GAAP"
financial measure. See GAAP to Non-GAAP Reconciliation for the
comparable GAAP measurement.
|
TABLE INDEX
|
|
Page
|
Consolidated Statements
of Operations
|
7
|
Consolidated Balance
Sheets
|
8
|
Financial
Highlights
|
10
|
Loan & Lease
Portfolio Balances and Mix
|
11
|
Deposit Portfolio
Balances and Mix
|
13
|
Credit Quality -
Non-performing Assets
|
14
|
Credit Quality -
Allowance for Credit Losses
|
15
|
Consolidated Average
Balance Sheets, Net Interest Income, and Yields/Rates
|
17
|
Residential Mortgage
Banking Activity
|
19
|
GAAP to Non-GAAP
Reconciliation
|
21
|
Columbia Banking
System, Inc.
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
Quarter
Ended
|
|
% Change
(2)
|
($ in thousands,
except per share data)
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Seq.
Quarter
|
|
Year
over
Year
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and
leases
|
$ 577,741
|
|
$ 569,670
|
|
$ 552,679
|
|
$ 413,525
|
|
$ 322,350
|
|
1 %
|
|
79 %
|
Interest and dividends
on investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
78,010
|
|
80,066
|
|
79,036
|
|
39,729
|
|
18,108
|
|
(3) %
|
|
331 %
|
Exempt from federal
income tax
|
6,966
|
|
6,929
|
|
6,817
|
|
3,397
|
|
1,288
|
|
1 %
|
|
441 %
|
Dividends
|
4,862
|
|
4,941
|
|
2,581
|
|
719
|
|
182
|
|
(2) %
|
|
nm
|
Temporary investments
and interest bearing deposits
|
24,055
|
|
34,407
|
|
34,616
|
|
18,581
|
|
10,319
|
|
(30) %
|
|
133 %
|
Total interest
income
|
691,634
|
|
696,013
|
|
675,729
|
|
475,951
|
|
352,247
|
|
(1) %
|
|
96 %
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
170,659
|
|
126,974
|
|
100,408
|
|
63,613
|
|
31,174
|
|
34 %
|
|
447 %
|
Securities sold under
agreement to repurchase and federal funds purchased
|
1,226
|
|
1,220
|
|
1,071
|
|
406
|
|
323
|
|
0 %
|
|
280 %
|
Borrowings
|
56,066
|
|
77,080
|
|
81,004
|
|
28,764
|
|
8,023
|
|
(27) %
|
|
nm
|
Junior and other
subordinated debentures
|
10,060
|
|
9,864
|
|
9,271
|
|
8,470
|
|
7,248
|
|
2 %
|
|
39 %
|
Total interest
expense
|
238,011
|
|
215,138
|
|
191,754
|
|
101,253
|
|
46,768
|
|
11 %
|
|
409 %
|
Net interest
income
|
453,623
|
|
480,875
|
|
483,975
|
|
374,698
|
|
305,479
|
|
(6) %
|
|
48 %
|
Provision for credit
losses
|
54,909
|
|
36,737
|
|
16,014
|
|
105,539
|
|
32,948
|
|
49 %
|
|
67 %
|
Non-interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposits
|
17,349
|
|
17,410
|
|
16,454
|
|
14,312
|
|
12,139
|
|
0 %
|
|
43 %
|
Card-based
fees
|
14,593
|
|
15,674
|
|
13,435
|
|
11,561
|
|
9,017
|
|
(7) %
|
|
62 %
|
Financial services and
trust revenue
|
3,011
|
|
4,651
|
|
4,512
|
|
1,297
|
|
25
|
|
(35) %
|
|
nm
|
Residential mortgage
banking revenue (loss), net
|
4,212
|
|
7,103
|
|
(2,342)
|
|
7,816
|
|
(1,812)
|
|
(41) %
|
|
nm
|
Gain on sale of debt
securities, net
|
9
|
|
4
|
|
—
|
|
—
|
|
—
|
|
125 %
|
|
nm
|
Gain (loss) on equity
securities, net
|
2,636
|
|
(2,055)
|
|
(697)
|
|
2,416
|
|
284
|
|
nm
|
|
nm
|
Gain on loan and lease
sales, net
|
1,161
|
|
1,871
|
|
442
|
|
940
|
|
1,531
|
|
(38) %
|
|
(24) %
|
BOLI income
|
4,331
|
|
4,440
|
|
4,063
|
|
2,790
|
|
2,033
|
|
(2) %
|
|
113 %
|
Other income
(loss)
|
18,231
|
|
(5,117)
|
|
3,811
|
|
13,603
|
|
11,662
|
|
nm
|
|
56 %
|
Total non-interest
income
|
65,533
|
|
43,981
|
|
39,678
|
|
54,735
|
|
34,879
|
|
49 %
|
|
88 %
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
157,572
|
|
159,041
|
|
163,398
|
|
136,092
|
|
107,982
|
|
(1) %
|
|
46 %
|
Occupancy and
equipment, net
|
48,160
|
|
43,070
|
|
50,550
|
|
41,700
|
|
34,021
|
|
12 %
|
|
42 %
|
Intangible
amortization
|
33,204
|
|
29,879
|
|
35,553
|
|
12,660
|
|
1,019
|
|
11 %
|
|
nm
|
FDIC
assessments
|
42,510
|
|
11,200
|
|
11,579
|
|
6,113
|
|
3,487
|
|
280 %
|
|
nm
|
Merger-related
expense
|
7,174
|
|
18,938
|
|
29,649
|
|
115,898
|
|
11,637
|
|
(62) %
|
|
(38) %
|
Other
expenses
|
48,556
|
|
42,019
|
|
37,830
|
|
30,355
|
|
36,836
|
|
16 %
|
|
32 %
|
Total non-interest
expense
|
337,176
|
|
304,147
|
|
328,559
|
|
342,818
|
|
194,982
|
|
11 %
|
|
73 %
|
Income (loss) before
provision (benefit) for income taxes
|
127,071
|
|
183,972
|
|
179,080
|
|
(18,924)
|
|
112,428
|
|
(31) %
|
|
13 %
|
Provision (benefit) for
income taxes
|
33,540
|
|
48,127
|
|
45,703
|
|
(4,886)
|
|
29,464
|
|
(30) %
|
|
14 %
|
Net income
(loss)
|
$
93,531
|
|
$ 135,845
|
|
$ 133,377
|
|
$ (14,038)
|
|
$
82,964
|
|
(31) %
|
|
13 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic
shares outstanding (1)
|
208,083
|
|
208,070
|
|
207,977
|
|
156,383
|
|
129,321
|
|
0 %
|
|
61 %
|
Weighted average
diluted shares outstanding (1)
|
208,739
|
|
208,645
|
|
208,545
|
|
156,383
|
|
129,801
|
|
0 %
|
|
61 %
|
Earnings (loss) per
common share – basic (1)
|
$
0.45
|
|
$
0.65
|
|
$
0.64
|
|
$
(0.09)
|
|
$
0.64
|
|
(31) %
|
|
(30) %
|
Earnings (loss) per
common share – diluted (1)
|
$
0.45
|
|
$
0.65
|
|
$
0.64
|
|
$
(0.09)
|
|
$
0.64
|
|
(31) %
|
|
(30) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Periods prior to
February 28, 2023, have been restated as a result of the adjustment
to common shares outstanding based on the exchange ratio from the
merger of 0.5958.
|
(2)
|
Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
Columbia Banking
System, Inc.
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
|
Twelve months
ended
|
|
% Change
(2)
|
($ in thousands,
except per share data)
|
|
Dec 31,
2023
|
|
Dec 31,
2022
|
|
Year over
Year
|
Interest
income:
|
|
|
|
|
|
|
Loans and
leases
|
|
$
2,113,615
|
|
$
1,050,258
|
|
101 %
|
Interest and dividends
on investments:
|
|
|
|
|
|
|
Taxable
|
|
276,841
|
|
72,264
|
|
283 %
|
Exempt from federal
income tax
|
|
24,109
|
|
5,351
|
|
351 %
|
Dividends
|
|
13,103
|
|
438
|
|
nm
|
Temporary investments
and interest bearing deposits
|
|
111,659
|
|
19,706
|
|
467 %
|
Total interest
income
|
|
2,539,327
|
|
1,148,017
|
|
121 %
|
Interest
expense:
|
|
|
|
|
|
|
Deposits
|
|
461,654
|
|
48,195
|
|
nm
|
Securities sold under
agreement to repurchase and federal funds purchased
|
|
3,923
|
|
997
|
|
293 %
|
Borrowings
|
|
242,914
|
|
8,920
|
|
nm
|
Junior and other
subordinated debentures
|
|
37,665
|
|
19,889
|
|
89 %
|
Total interest
expense
|
|
746,156
|
|
78,001
|
|
nm
|
Net interest
income
|
|
1,793,171
|
|
1,070,016
|
|
68 %
|
Provision for credit
losses
|
|
213,199
|
|
84,016
|
|
154 %
|
Non-interest
income:
|
|
|
|
|
|
|
Service charges on
deposits
|
|
65,525
|
|
48,365
|
|
35 %
|
Card-based
fees
|
|
55,263
|
|
37,370
|
|
48 %
|
Brokerage
revenue
|
|
13,471
|
|
90
|
|
nm
|
Residential mortgage
banking revenue, net
|
|
16,789
|
|
106,859
|
|
(84) %
|
Gain on sale of debt
securities, net
|
|
13
|
|
2
|
|
nm
|
Gain (loss) on equity
securities, net
|
|
2,300
|
|
(7,099)
|
|
nm
|
Gain on loan and lease
sales, net
|
|
4,414
|
|
6,696
|
|
(34) %
|
BOLI income
|
|
15,624
|
|
8,253
|
|
89 %
|
Other income
(loss)
|
|
30,528
|
|
(1,008)
|
|
nm
|
Total non-interest
income
|
|
203,927
|
|
199,528
|
|
2 %
|
Non-interest
expense:
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
616,103
|
|
441,226
|
|
40 %
|
Occupancy and
equipment, net
|
|
183,480
|
|
138,451
|
|
33 %
|
Intangible
amortization
|
|
111,296
|
|
4,095
|
|
nm
|
FDIC
assessments
|
|
71,402
|
|
13,964
|
|
411 %
|
Merger-related
expense
|
|
171,659
|
|
17,356
|
|
nm
|
Other
expenses
|
|
158,760
|
|
119,858
|
|
32 %
|
Total non-interest
expense
|
|
1,312,700
|
|
734,950
|
|
79 %
|
Income before provision
for income taxes
|
|
471,199
|
|
450,578
|
|
5 %
|
Provision for income
taxes
|
|
122,484
|
|
113,826
|
|
8 %
|
Net income
|
|
$
348,715
|
|
$
336,752
|
|
4 %
|
|
|
|
|
|
|
|
Weighted average basic
shares outstanding (1)
|
|
195,304
|
|
129,277
|
|
51 %
|
Weighted average
diluted shares outstanding (1)
|
|
195,871
|
|
129,732
|
|
51 %
|
Earnings per common
share – basic (1)
|
|
$
1.79
|
|
$
2.60
|
|
(31) %
|
Earnings per common
share – diluted (1)
|
|
$
1.78
|
|
$
2.60
|
|
(32) %
|
|
|
|
|
|
|
|
(1)
|
Periods prior to
February 28, 2023, have been restated as a result of the adjustment
to common shares outstanding based on the exchange ratio from the
merger of 0.5958.
|
(2)
|
Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
Columbia Banking
System, Inc.
Consolidated Balance
Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
% Change
(2)
|
($ in thousands,
except per share data)
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Seq.
Quarter
|
|
Year
over
Year
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
$
498,496
|
|
$
492,474
|
|
$
538,653
|
|
$
555,919
|
|
$
327,313
|
|
1 %
|
|
52 %
|
Interest bearing cash
and temporary investments
|
1,664,038
|
|
1,911,221
|
|
2,868,563
|
|
3,079,266
|
|
967,330
|
|
(13) %
|
|
72 %
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity and other, at
fair value
|
76,995
|
|
73,638
|
|
76,361
|
|
76,532
|
|
72,959
|
|
5 %
|
|
6 %
|
Available for sale, at
fair value
|
8,829,870
|
|
8,503,986
|
|
8,998,428
|
|
9,249,600
|
|
3,196,166
|
|
4 %
|
|
176 %
|
Held to maturity, at
amortized cost
|
2,300
|
|
2,344
|
|
2,388
|
|
2,432
|
|
2,476
|
|
(2) %
|
|
(7) %
|
Loans held for
sale
|
30,715
|
|
60,313
|
|
183,633
|
|
49,338
|
|
71,647
|
|
(49) %
|
|
(57) %
|
Loans and
leases
|
37,441,951
|
|
37,170,598
|
|
37,049,299
|
|
37,091,280
|
|
26,155,981
|
|
1 %
|
|
43 %
|
Allowance for credit
losses on loans and leases
|
(440,871)
|
|
(416,560)
|
|
(404,603)
|
|
(417,464)
|
|
(301,135)
|
|
6 %
|
|
46 %
|
Net loans and
leases
|
37,001,080
|
|
36,754,038
|
|
36,644,696
|
|
36,673,816
|
|
25,854,846
|
|
1 %
|
|
43 %
|
Restricted equity
securities
|
179,274
|
|
168,524
|
|
258,524
|
|
246,525
|
|
47,144
|
|
6 %
|
|
280 %
|
Premises and
equipment, net
|
338,970
|
|
337,855
|
|
368,698
|
|
375,190
|
|
176,016
|
|
0 %
|
|
93 %
|
Operating lease
right-of-use assets
|
115,811
|
|
114,220
|
|
119,255
|
|
127,296
|
|
78,598
|
|
1 %
|
|
47 %
|
Goodwill
|
1,029,234
|
|
1,029,234
|
|
1,029,234
|
|
1,030,142
|
|
—
|
|
0 %
|
|
nm
|
Other intangible
assets, net
|
603,679
|
|
636,883
|
|
666,762
|
|
702,315
|
|
4,745
|
|
(5) %
|
|
nm
|
Residential mortgage
servicing rights, at fair value
|
109,243
|
|
117,640
|
|
172,929
|
|
178,800
|
|
185,017
|
|
(7) %
|
|
(41) %
|
Bank owned life
insurance
|
680,948
|
|
648,232
|
|
643,727
|
|
641,922
|
|
331,759
|
|
5 %
|
|
105 %
|
Deferred tax asset,
net
|
347,203
|
|
469,841
|
|
362,880
|
|
351,229
|
|
132,823
|
|
(26) %
|
|
161 %
|
Other
assets
|
665,740
|
|
673,372
|
|
657,365
|
|
653,904
|
|
399,800
|
|
(1) %
|
|
67 %
|
Total assets
|
$ 52,173,596
|
|
$ 51,993,815
|
|
$ 53,592,096
|
|
$ 53,994,226
|
|
$ 31,848,639
|
|
0 %
|
|
64 %
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
bearing
|
$ 14,256,452
|
|
$ 15,532,948
|
|
$ 16,019,408
|
|
$ 17,215,781
|
|
$ 10,288,849
|
|
(8) %
|
|
39 %
|
Interest
bearing
|
27,350,568
|
|
26,091,420
|
|
24,815,509
|
|
24,370,566
|
|
16,776,763
|
|
5 %
|
|
63 %
|
Total
deposits
|
41,607,020
|
|
41,624,368
|
|
40,834,917
|
|
41,586,347
|
|
27,065,612
|
|
0 %
|
|
54 %
|
Securities sold under
agreements to repurchase
|
252,119
|
|
258,383
|
|
294,914
|
|
271,047
|
|
308,769
|
|
(2) %
|
|
(18) %
|
Borrowings
|
3,950,000
|
|
3,985,000
|
|
6,250,000
|
|
5,950,000
|
|
906,175
|
|
(1) %
|
|
336 %
|
Junior subordinated
debentures, at fair value
|
316,440
|
|
331,545
|
|
312,872
|
|
297,721
|
|
323,639
|
|
(5) %
|
|
(2) %
|
Junior and other
subordinated debentures, at amortized cost
|
107,895
|
|
107,952
|
|
108,009
|
|
108,066
|
|
87,813
|
|
0 %
|
|
23 %
|
Operating lease
liabilities
|
130,576
|
|
129,845
|
|
132,099
|
|
140,648
|
|
91,694
|
|
1 %
|
|
42 %
|
Other
liabilities
|
814,512
|
|
924,560
|
|
831,097
|
|
755,674
|
|
585,111
|
|
(12) %
|
|
39 %
|
Total
liabilities
|
47,178,562
|
|
47,361,653
|
|
48,763,908
|
|
49,109,503
|
|
29,368,813
|
|
0 %
|
|
61 %
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
5,802,747
|
|
5,798,167
|
|
5,792,792
|
|
5,788,553
|
|
3,450,493
|
|
0 %
|
|
68 %
|
Accumulated
deficit
|
(467,571)
|
|
(485,576)
|
|
(545,842)
|
|
(603,696)
|
|
(543,803)
|
|
(4) %
|
|
(14) %
|
Accumulated other
comprehensive loss
|
(340,142)
|
|
(680,429)
|
|
(418,762)
|
|
(300,134)
|
|
(426,864)
|
|
(50) %
|
|
(20) %
|
Total shareholders'
equity
|
4,995,034
|
|
4,632,162
|
|
4,828,188
|
|
4,884,723
|
|
2,479,826
|
|
8 %
|
|
101 %
|
Total liabilities and
shareholders' equity
|
$ 52,173,596
|
|
$ 51,993,815
|
|
$ 53,592,096
|
|
$ 53,994,226
|
|
$ 31,848,639
|
|
0 %
|
|
64 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding at period end (1)
|
208,585
|
|
208,575
|
|
208,514
|
|
208,429
|
|
129,321
|
|
0 %
|
|
61 %
|
(1)
|
Periods prior to
February 28, 2023, have been restated as a result of the adjustment
to common shares outstanding based on the exchange ratio from the
merger of 0.5958.
|
(2)
|
Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
Columbia Banking
System, Inc.
|
Financial
Highlights
|
(Unaudited)
|
|
|
Quarter
Ended
|
|
%
Change
|
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Seq.
Quarter
|
|
Year
over
Year
|
Per Common Share
Data: (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
(5)
|
|
$
0.36
|
|
$
0.36
|
|
$
0.36
|
|
$
0.35
|
|
$
0.35
|
|
0 %
|
|
3 %
|
Book value
(5)
|
|
$
23.95
|
|
$
22.21
|
|
$
23.16
|
|
$
23.44
|
|
$
19.18
|
|
8 %
|
|
25 %
|
Tangible book value
(1),(5)
|
|
$
16.12
|
|
$
14.22
|
|
$
15.02
|
|
$
15.12
|
|
$
19.14
|
|
13 %
|
|
(16) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(2)
|
|
64.81 %
|
|
57.82 %
|
|
62.60 %
|
|
79.71 %
|
|
57.24 %
|
|
6.99
|
|
7.57
|
Return on average
assets ("ROAA")
|
|
0.72 %
|
|
1.02 %
|
|
1.00 %
|
|
(0.14) %
|
|
1.04 %
|
|
(0.30)
|
|
(0.32)
|
Pre-provision net
revenue ("PPNR") ROAA (1)
|
|
1.39 %
|
|
1.65 %
|
|
1.46 %
|
|
0.89 %
|
|
1.82 %
|
|
(0.26)
|
|
(0.43)
|
Return on average
common equity
|
|
7.90 %
|
|
11.07 %
|
|
10.84 %
|
|
(1.70) %
|
|
13.50 %
|
|
(3.17)
|
|
(5.60)
|
Return on average
tangible common equity (1)
|
|
12.19 %
|
|
16.93 %
|
|
16.63 %
|
|
(2.09) %
|
|
13.53 %
|
|
(4.74)
|
|
(1.34)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios -
Operating: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating efficiency
ratio (1), (2)
|
|
64.47 %
|
|
51.97 %
|
|
54.85 %
|
|
53.46 %
|
|
52.01 %
|
|
12.50
|
|
12.46
|
Operating ROAA
(1)
|
|
0.70 %
|
|
1.23 %
|
|
1.27 %
|
|
0.74 %
|
|
1.24 %
|
|
(0.53)
|
|
(0.54)
|
Operating PPNR ROAA
(1)
|
|
1.37 %
|
|
1.94 %
|
|
1.82 %
|
|
2.01 %
|
|
2.10 %
|
|
(0.57)
|
|
(0.73)
|
Operating return on
average common equity (1)
|
|
7.73 %
|
|
13.40 %
|
|
13.77 %
|
|
8.66 %
|
|
16.14 %
|
|
(5.67)
|
|
(8.41)
|
Operating return on
average tangible common equity (1)
|
|
11.92 %
|
|
20.48 %
|
|
21.13 %
|
|
10.64 %
|
|
16.18 %
|
|
(8.56)
|
|
(4.26)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance
Sheet Yields, Rates, & Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on loans and
leases
|
|
6.13 %
|
|
6.08 %
|
|
5.95 %
|
|
5.55 %
|
|
4.92 %
|
|
0.05
|
|
1.21
|
Yield on earning
assets (2)
|
|
5.75 %
|
|
5.65 %
|
|
5.48 %
|
|
5.19 %
|
|
4.62 %
|
|
0.10
|
|
1.13
|
Cost of interest
bearing deposits
|
|
2.54 %
|
|
2.01 %
|
|
1.64 %
|
|
1.32 %
|
|
0.77 %
|
|
0.53
|
|
1.77
|
Cost of interest
bearing liabilities
|
|
3.02 %
|
|
2.72 %
|
|
2.45 %
|
|
1.82 %
|
|
1.05 %
|
|
0.30
|
|
1.97
|
Cost of total
deposits
|
|
1.63 %
|
|
1.23 %
|
|
0.99 %
|
|
0.80 %
|
|
0.46 %
|
|
0.40
|
|
1.17
|
Cost of total funding
(3)
|
|
2.05 %
|
|
1.81 %
|
|
1.61 %
|
|
1.16 %
|
|
0.65 %
|
|
0.24
|
|
1.40
|
Net interest margin
(2)
|
|
3.78 %
|
|
3.91 %
|
|
3.93 %
|
|
4.08 %
|
|
4.01 %
|
|
(0.13)
|
|
(0.23)
|
Average interest
bearing cash / Average interest earning assets
|
|
3.64 %
|
|
5.17 %
|
|
5.47 %
|
|
4.33 %
|
|
3.62 %
|
|
(1.53)
|
|
0.02
|
Average loans and
leases / Average interest earning assets
|
|
78.04 %
|
|
75.64 %
|
|
75.18 %
|
|
80.96 %
|
|
85.32 %
|
|
2.40
|
|
(7.28)
|
Average loans and
leases / Average total deposits
|
|
89.91 %
|
|
90.63 %
|
|
90.98 %
|
|
93.01 %
|
|
95.85 %
|
|
(0.72)
|
|
(5.94)
|
Average non-interest
bearing deposits / Average total deposits
|
|
35.88 %
|
|
38.55 %
|
|
40.05 %
|
|
39.55 %
|
|
40.30 %
|
|
(2.67)
|
|
(4.42)
|
Average total deposits
/ Average total funding (3)
|
|
90.02 %
|
|
86.66 %
|
|
85.59 %
|
|
91.36 %
|
|
94.52 %
|
|
3.36
|
|
(4.50)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select Credit &
Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans
and leases to total loans and leases
|
|
0.30 %
|
|
0.28 %
|
|
0.22 %
|
|
0.20 %
|
|
0.22 %
|
|
0.02
|
|
0.08
|
Non-performing assets
to total assets
|
|
0.22 %
|
|
0.20 %
|
|
0.15 %
|
|
0.14 %
|
|
0.18 %
|
|
0.02
|
|
0.04
|
Allowance for credit
losses to loans and leases
|
|
1.24 %
|
|
1.18 %
|
|
1.15 %
|
|
1.18 %
|
|
1.21 %
|
|
0.06
|
|
0.03
|
Total risk-based
capital ratio (4)
|
|
11.8 %
|
|
11.6 %
|
|
11.3 %
|
|
10.9 %
|
|
13.7 %
|
|
0.20
|
|
(1.90)
|
Common equity tier 1
risk-based capital ratio (4)
|
|
9.6 %
|
|
9.5 %
|
|
9.2 %
|
|
8.9 %
|
|
11.0 %
|
|
0.10
|
|
(1.40)
|
(1)
|
See GAAP to Non-GAAP
Reconciliation.
|
(2)
|
Tax exempt interest has
been adjusted to a taxable equivalent basis using a 21% tax
rate.
|
(3)
|
Total funding = Total
deposits + Total borrowings.
|
(4)
|
Estimated holding
company ratios.
|
(5)
|
Periods prior to
February 28, 2023, have been restated as a result of the adjustment
to common shares outstanding based on the exchange ratio from
the merger of 0.5958.
|
Columbia Banking
System, Inc.
|
Financial
Highlights
|
(Unaudited)
|
|
|
Twelve months
ended
|
|
%
Change
|
|
|
Dec 31,
2023
|
|
Dec 31,
2022
|
|
Year over Year
|
Per Common Share
Data: (4)
|
|
|
|
|
|
|
Dividends
(4)
|
|
$
1.43
|
|
$
1.40
|
|
2.14 %
|
|
|
|
|
|
|
|
Performance
Ratios:
|
|
|
|
|
|
|
Efficiency ratio
(2)
|
|
65.59 %
|
|
57.83 %
|
|
7.76
|
ROAA
|
|
0.70 %
|
|
1.09 %
|
|
(0.39)
|
PPNR ROAA
(1)
|
|
1.38 %
|
|
1.73 %
|
|
(0.35)
|
Return on average
common equity
|
|
7.81 %
|
|
13.07 %
|
|
(5.26)
|
Return on average
tangible common equity (1)
|
|
11.46 %
|
|
13.11 %
|
|
(1.65)
|
|
|
|
|
|
|
|
Performance Ratios -
Operating: (1)
|
|
|
|
|
|
|
Operating efficiency
ratio (1), (2)
|
|
56.21 %
|
|
55.66 %
|
|
0.55
|
Operating ROAA
(1)
|
|
1.00 %
|
|
1.17 %
|
|
(0.17)
|
Operating PPNR ROAA
(1)
|
|
1.77 %
|
|
1.83 %
|
|
(0.06)
|
Operating return on
average common equity (1)
|
|
11.12 %
|
|
13.97 %
|
|
(2.85)
|
Operating return on
average tangible common equity (1)
|
|
16.32 %
|
|
14.00 %
|
|
2.32
|
|
|
|
|
|
|
|
Average Balance
Sheet Yields, Rates, & Ratios:
|
|
|
|
|
|
|
Yield on loans and
leases
|
|
5.95 %
|
|
4.29 %
|
|
1.66
|
Yield on earning
assets (2)
|
|
5.54 %
|
|
3.88 %
|
|
1.66
|
Cost of interest
bearing deposits
|
|
1.93 %
|
|
0.31 %
|
|
1.62
|
Cost of interest
bearing liabilities
|
|
2.56 %
|
|
0.47 %
|
|
2.09
|
Cost of total
deposits
|
|
1.19 %
|
|
0.18 %
|
|
1.01
|
Cost of total funding
(3)
|
|
1.69 %
|
|
0.28 %
|
|
1.41
|
Net interest margin
(2)
|
|
3.91 %
|
|
3.62 %
|
|
0.29
|
Average interest
bearing cash / Average interest earning assets
|
|
4.68 %
|
|
5.28 %
|
|
(0.60)
|
Average loans and
leases / Average interest earning assets
|
|
77.21 %
|
|
81.96 %
|
|
(4.75)
|
Average loans and
leases / Average total deposits
|
|
91.01 %
|
|
90.91 %
|
|
0.10
|
Average non-interest
bearing deposits / Average total deposits
|
|
38.37 %
|
|
41.48 %
|
|
(3.11)
|
Average total deposits
/ Average total funding (3)
|
|
88.18 %
|
|
96.06 %
|
|
(7.88)
|
(1)
|
See GAAP to Non-GAAP
Reconciliation.
|
(2)
|
Tax exempt interest has
been adjusted to a taxable equivalent basis using a 21% tax
rate.
|
(3)
|
Total funding = Total
deposits + Total borrowings.
|
(4)
|
Periods prior to
February 28, 2023, have been restated as a result of the adjustment
to common shares outstanding based on the exchange ratio from the
merger of 0.5958.
|
Columbia Banking
System, Inc.
|
Loan & Lease
Portfolio Balances and Mix
|
(Unaudited)
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
%
Change
|
($ in
thousands)
|
Amount
|
|
Amount
|
|
Amount
|
|
Amount
|
|
Amount
|
|
Seq.
Quarter
|
|
Year
over
Year
|
Loans and
leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner occupied term, net
|
$
6,482,940
|
|
$
6,490,638
|
|
$
6,434,673
|
|
$
6,353,550
|
|
$
3,894,840
|
|
0 %
|
|
66 %
|
Owner occupied term,
net
|
5,195,605
|
|
5,235,227
|
|
5,254,401
|
|
5,156,848
|
|
2,567,761
|
|
(1) %
|
|
102 %
|
Multifamily,
net
|
5,704,734
|
|
5,684,495
|
|
5,622,875
|
|
5,590,587
|
|
5,285,791
|
|
0 %
|
|
8 %
|
Construction &
development, net
|
1,747,302
|
|
1,669,918
|
|
1,528,924
|
|
1,467,561
|
|
1,077,346
|
|
5 %
|
|
62 %
|
Residential
development, net
|
323,899
|
|
354,922
|
|
388,641
|
|
440,667
|
|
200,838
|
|
(9) %
|
|
61 %
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term, net
|
5,536,765
|
|
5,437,915
|
|
5,449,787
|
|
5,906,774
|
|
3,029,547
|
|
2 %
|
|
83 %
|
Lines of credit &
other, net
|
2,430,127
|
|
2,353,548
|
|
2,268,790
|
|
2,184,762
|
|
960,054
|
|
3 %
|
|
153 %
|
Leases & equipment
finance, net
|
1,729,512
|
|
1,728,991
|
|
1,740,037
|
|
1,746,267
|
|
1,706,172
|
|
0 %
|
|
1 %
|
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage,
net
|
6,157,166
|
|
6,121,838
|
|
6,272,898
|
|
6,187,964
|
|
5,647,035
|
|
1 %
|
|
9 %
|
Home equity loans
& lines, net
|
1,938,166
|
|
1,899,948
|
|
1,898,958
|
|
1,870,002
|
|
1,631,965
|
|
2 %
|
|
19 %
|
Consumer
& other, net
|
195,735
|
|
193,158
|
|
189,315
|
|
186,298
|
|
154,632
|
|
1 %
|
|
27 %
|
Total loans and
leases, net of deferred fees and costs
|
$
37,441,951
|
|
$
37,170,598
|
|
$
37,049,299
|
|
$
37,091,280
|
|
$
26,155,981
|
|
1 %
|
|
43 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases
mix:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-owner
occupied term, net
|
17 %
|
|
17 %
|
|
17 %
|
|
16 %
|
|
15 %
|
|
|
|
|
Owner
occupied term, net
|
14 %
|
|
14 %
|
|
14 %
|
|
14 %
|
|
10 %
|
|
|
|
|
Multifamily, net
|
15 %
|
|
15 %
|
|
15 %
|
|
15 %
|
|
20 %
|
|
|
|
|
Construction &
development, net
|
5 %
|
|
4 %
|
|
4 %
|
|
4 %
|
|
4 %
|
|
|
|
|
Residential
development, net
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
|
|
|
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term, net
|
15 %
|
|
15 %
|
|
15 %
|
|
16 %
|
|
12 %
|
|
|
|
|
Lines of credit &
other, net
|
6 %
|
|
6 %
|
|
6 %
|
|
6 %
|
|
4 %
|
|
|
|
|
Leases & equipment
finance, net
|
5 %
|
|
5 %
|
|
5 %
|
|
5 %
|
|
6 %
|
|
|
|
|
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage,
net
|
16 %
|
|
17 %
|
|
17 %
|
|
17 %
|
|
21 %
|
|
|
|
|
Home equity loans
& lines, net
|
5 %
|
|
5 %
|
|
5 %
|
|
5 %
|
|
6 %
|
|
|
|
|
Consumer
& other, net
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
|
|
|
Total
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
|
|
Columbia Banking
System, Inc.
|
Deposit Portfolio
Balances and Mix
|
(Unaudited)
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
%
Change
|
($ in
thousands)
|
Amount
|
|
Amount
|
|
Amount
|
|
Amount
|
|
Amount
|
|
Seq.
Quarter
|
|
Year
over
Year
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand, non-interest
bearing
|
$
14,256,452
|
|
$
15,532,948
|
|
$
16,019,408
|
|
$
17,215,781
|
|
$
10,288,849
|
|
(8) %
|
|
39 %
|
Demand, interest
bearing
|
8,044,432
|
|
6,898,831
|
|
6,300,082
|
|
5,900,462
|
|
4,080,469
|
|
17 %
|
|
97 %
|
Money
market
|
10,324,454
|
|
10,349,217
|
|
10,115,908
|
|
10,681,422
|
|
7,721,011
|
|
0 %
|
|
34 %
|
Savings
|
2,754,113
|
|
3,018,706
|
|
3,171,714
|
|
3,469,112
|
|
2,265,052
|
|
(9) %
|
|
22 %
|
Time
|
6,227,569
|
|
5,824,666
|
|
5,227,805
|
|
4,319,570
|
|
2,710,231
|
|
7 %
|
|
130 %
|
Total
|
$
41,607,020
|
|
$
41,624,368
|
|
$
40,834,917
|
|
$
41,586,347
|
|
$
27,065,612
|
|
0 %
|
|
54 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total core deposits
(1)
|
$
37,423,402
|
|
$
37,597,830
|
|
$
37,639,368
|
|
$
39,155,298
|
|
$
25,616,010
|
|
0 %
|
|
46 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
mix:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand, non-interest
bearing
|
34 %
|
|
37 %
|
|
39 %
|
|
41 %
|
|
38 %
|
|
|
|
|
Demand, interest
bearing
|
19 %
|
|
17 %
|
|
15 %
|
|
14 %
|
|
15 %
|
|
|
|
|
Money
market
|
25 %
|
|
25 %
|
|
25 %
|
|
26 %
|
|
29 %
|
|
|
|
|
Savings
|
7 %
|
|
7 %
|
|
8 %
|
|
9 %
|
|
8 %
|
|
|
|
|
Time
|
15 %
|
|
14 %
|
|
13 %
|
|
10 %
|
|
10 %
|
|
|
|
|
Total
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
|
|
(1)
|
Core deposits are
defined as total deposits less time deposits greater than $250,000
and all brokered deposits.
|
|
Columbia Banking
System, Inc.
|
|
Credit Quality –
Non-performing Assets
|
|
(Unaudited)
|
|
|
Quarter
Ended
|
|
% Change
(2)
|
($ in
thousands)
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Seq.
Quarter
|
|
Year
over
Year
|
Non-performing
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases on
non-accrual status:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
$ 28,689
|
|
$ 26,053
|
|
$ 10,994
|
|
$ 15,612
|
|
$
5,011
|
|
10 %
|
|
473 %
|
|
Commercial,
net
|
45,682
|
|
44,341
|
|
39,316
|
|
42,301
|
|
25,691
|
|
3 %
|
|
78 %
|
|
Total loans and leases
on non-accrual status
|
74,371
|
|
70,394
|
|
50,310
|
|
57,913
|
|
30,702
|
|
6 %
|
|
142 %
|
Loans and leases past
due 90+ days and accruing (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
870
|
|
71
|
|
184
|
|
1
|
|
1
|
|
nm
|
|
nm
|
|
Commercial,
net
|
8,232
|
|
8,606
|
|
7,720
|
|
151
|
|
7,909
|
|
(4) %
|
|
4 %
|
|
Residential, net
(1)
|
29,102
|
|
25,180
|
|
21,370
|
|
17,423
|
|
19,894
|
|
16 %
|
|
46 %
|
|
Consumer & other,
net
|
326
|
|
240
|
|
399
|
|
140
|
|
134
|
|
36 %
|
|
143 %
|
|
Total loans and leases
past due 90+ days and accruing (1)
|
38,530
|
|
34,097
|
|
29,673
|
|
17,715
|
|
27,938
|
|
13 %
|
|
38 %
|
Total non-performing
loans and leases
|
112,901
|
|
104,491
|
|
79,983
|
|
75,628
|
|
58,640
|
|
8 %
|
|
93 %
|
Other real estate
owned
|
1,036
|
|
1,170
|
|
278
|
|
409
|
|
203
|
|
(11) %
|
|
410 %
|
Total non-performing
assets
|
$
113,937
|
|
$
105,661
|
|
$ 80,261
|
|
$ 76,037
|
|
$ 58,843
|
|
8 %
|
|
94 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases past
due 31-89 days
|
$ 85,235
|
|
$ 82,918
|
|
$ 73,376
|
|
$ 78,641
|
|
$ 64,893
|
|
3 %
|
|
31 %
|
Loans and leases past
due 31-89 days to total loans and leases
|
0.23 %
|
|
0.22 %
|
|
0.20 %
|
|
0.21 %
|
|
0.25 %
|
|
0.01
|
|
(0.02)
|
Non-performing loans
and leases to total loans and leases (1)
|
0.30 %
|
|
0.28 %
|
|
0.22 %
|
|
0.20 %
|
|
0.22 %
|
|
0.02
|
|
0.08
|
Non-performing assets
to total assets (1)
|
0.22 %
|
|
0.20 %
|
|
0.15 %
|
|
0.14 %
|
|
0.18 %
|
|
0.02
|
|
0.04
|
(1)
|
Excludes certain
mortgage loans guaranteed by Ginnie Mae, which Columbia has
the unilateral right to repurchase but has not done so, totaling
$1.0 million, $700,000, $1.6 million, $5.4 million, and $6.6
million at December 31, 2023, September 30, 2023,
June 30, 2023, March 31, 2023, and December 31,
2022, respectively.
|
(2)
|
Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
|
Columbia Banking
System, Inc.
|
|
Credit Quality –
Allowance for Credit Losses
|
|
(Unaudited)
|
|
|
Quarter
Ended
|
|
% Change
(2)
|
($ in
thousands)
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Seq.
Quarter
|
|
Year
over
Year
|
Allowance for credit
losses on loans and leases (ACLLL)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of
period
|
$
416,560
|
|
$
404,603
|
|
$
417,464
|
|
$
301,135
|
|
$
283,065
|
|
3 %
|
|
47 %
|
Initial ACL recorded
for PCD loans acquired during the period
|
—
|
|
—
|
|
—
|
|
26,492
|
|
—
|
|
nm
|
|
nm
|
Provision for credit
losses on loans and leases (1)
|
53,183
|
|
35,082
|
|
15,216
|
|
106,498
|
|
30,580
|
|
52 %
|
|
74 %
|
Charge-offs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
(629)
|
|
—
|
|
(174)
|
|
—
|
|
(128)
|
|
nm
|
|
391 %
|
|
Commercial,
net
|
(31,949)
|
|
(26,629)
|
|
(32,036)
|
|
(19,248)
|
|
(14,721)
|
|
20 %
|
|
117 %
|
|
Residential,
net
|
(89)
|
|
(206)
|
|
(4)
|
|
(248)
|
|
(53)
|
|
(57) %
|
|
68 %
|
|
Consumer & other,
net
|
(1,841)
|
|
(1,884)
|
|
(1,264)
|
|
(773)
|
|
(906)
|
|
(2) %
|
|
103 %
|
|
Total
charge-offs
|
(34,508)
|
|
(28,719)
|
|
(33,478)
|
|
(20,269)
|
|
(15,808)
|
|
20 %
|
|
118 %
|
Recoveries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
35
|
|
31
|
|
209
|
|
58
|
|
163
|
|
13 %
|
|
(79) %
|
|
Commercial,
net
|
4,414
|
|
4,901
|
|
4,511
|
|
3,058
|
|
2,708
|
|
(10) %
|
|
63 %
|
|
Residential,
net
|
781
|
|
156
|
|
63
|
|
123
|
|
24
|
|
401 %
|
|
nm
|
|
Consumer & other,
net
|
406
|
|
506
|
|
618
|
|
369
|
|
403
|
|
(20) %
|
|
1 %
|
|
Total
recoveries
|
5,636
|
|
5,594
|
|
5,401
|
|
3,608
|
|
3,298
|
|
1 %
|
|
71 %
|
Net (charge-offs)
recoveries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
(594)
|
|
31
|
|
35
|
|
58
|
|
35
|
|
nm
|
|
nm
|
|
Commercial,
net
|
(27,535)
|
|
(21,728)
|
|
(27,525)
|
|
(16,190)
|
|
(12,013)
|
|
27 %
|
|
129 %
|
|
Residential,
net
|
692
|
|
(50)
|
|
59
|
|
(125)
|
|
(29)
|
|
nm
|
|
nm
|
|
Consumer & other,
net
|
(1,435)
|
|
(1,378)
|
|
(646)
|
|
(404)
|
|
(503)
|
|
4 %
|
|
185 %
|
|
Total net
charge-offs
|
(28,872)
|
|
(23,125)
|
|
(28,077)
|
|
(16,661)
|
|
(12,510)
|
|
25 %
|
|
131 %
|
Balance, end of
period
|
$
440,871
|
|
$
416,560
|
|
$
404,603
|
|
$
417,464
|
|
$
301,135
|
|
6 %
|
|
46 %
|
Reserve for unfunded
commitments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of
period
|
$ 21,482
|
|
$ 19,827
|
|
$ 19,029
|
|
$ 14,221
|
|
$ 11,853
|
|
8 %
|
|
81 %
|
Initial ACL recorded
for unfunded commitments acquired during the period
|
—
|
|
—
|
|
—
|
|
5,767
|
|
—
|
|
nm
|
|
nm
|
Provision (recapture)
for credit losses on unfunded commitments
|
1,726
|
|
1,655
|
|
798
|
|
(959)
|
|
2,368
|
|
4 %
|
|
(27) %
|
Balance, end of
period
|
23,208
|
|
21,482
|
|
19,827
|
|
19,029
|
|
14,221
|
|
8 %
|
|
63 %
|
Total Allowance for
credit losses (ACL)
|
$
464,079
|
|
$
438,042
|
|
$
424,430
|
|
$
436,493
|
|
$
315,356
|
|
6 %
|
|
47 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs to
average loans and leases (annualized)
|
0.31 %
|
|
0.25 %
|
|
0.30 %
|
|
0.23 %
|
|
0.19 %
|
|
0.06
|
|
0.12
|
Recoveries to gross
charge-offs
|
16.33 %
|
|
19.48 %
|
|
16.13 %
|
|
17.80 %
|
|
20.86 %
|
|
(3.15)
|
|
(4.53)
|
ACLLL to loans and
leases
|
1.18 %
|
|
1.12 %
|
|
1.09 %
|
|
1.13 %
|
|
1.15 %
|
|
0.06
|
|
0.03
|
ACL to loans and
leases
|
1.24 %
|
|
1.18 %
|
|
1.15 %
|
|
1.18 %
|
|
1.21 %
|
|
0.06
|
|
0.03
|
(1)
|
For the quarter ended
March 31, 2023, the provision for credit losses on loans and leases
includes $88.4 million initial provision related to non-PCD
loans acquired during the period.
|
(2)
|
Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
Columbia Banking
System, Inc.
|
Credit Quality –
Allowance for Credit Losses
|
(Unaudited)
|
|
|
Twelve Months
Ended
|
|
% Change
(2)
|
($ in
thousands)
|
|
Dec 31,
2023
|
|
Dec 31,
2022
|
|
Year over
Year
|
Allowance for credit
losses on loans and leases (ACLLL)
|
|
|
|
|
|
|
Balance, beginning of
period
|
|
$
301,135
|
|
$
248,412
|
|
21 %
|
Initial ACL recorded
for PCD loans acquired during the period
|
|
26,492
|
|
—
|
|
nm
|
Provision for credit
losses on loans and leases (1)
|
|
209,979
|
|
83,605
|
|
151 %
|
Charge-offs
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
|
(803)
|
|
(136)
|
|
490 %
|
|
Commercial,
net
|
|
(109,862)
|
|
(41,073)
|
|
167 %
|
|
Residential,
net
|
|
(547)
|
|
(224)
|
|
144 %
|
|
Consumer & other,
net
|
|
(5,762)
|
|
(3,556)
|
|
62 %
|
|
Total
charge-offs
|
|
(116,974)
|
|
(44,989)
|
|
160 %
|
Recoveries
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
|
333
|
|
384
|
|
(13) %
|
|
Commercial,
net
|
|
16,884
|
|
11,029
|
|
53 %
|
|
Residential,
net
|
|
1,123
|
|
662
|
|
70 %
|
|
Consumer & other,
net
|
|
1,899
|
|
2,032
|
|
(7) %
|
|
Total
recoveries
|
|
20,239
|
|
14,107
|
|
43 %
|
Net (charge-offs)
recoveries
|
|
|
|
|
|
|
|
Commercial real
estate, net
|
|
(470)
|
|
248
|
|
(290) %
|
|
Commercial,
net
|
|
(92,978)
|
|
(30,044)
|
|
209 %
|
|
Residential,
net
|
|
576
|
|
438
|
|
32 %
|
|
Consumer & other,
net
|
|
(3,863)
|
|
(1,524)
|
|
153 %
|
|
Total net
charge-offs
|
|
(96,735)
|
|
(30,882)
|
|
213 %
|
Balance, end of
period
|
|
$
440,871
|
|
$
301,135
|
|
46 %
|
Reserve for unfunded
commitments
|
|
|
|
|
|
|
Balance, beginning of
period
|
|
$
14,221
|
|
$
12,767
|
|
11 %
|
Initial ACL recorded
for unfunded commitments acquired during the period
|
|
5,767
|
|
—
|
|
nm
|
Provision for credit
losses on unfunded commitments
|
|
3,220
|
|
1,454
|
|
121 %
|
Balance, end of
period
|
|
23,208
|
|
14,221
|
|
63 %
|
Total Allowance for
credit losses (ACL)
|
|
$
464,079
|
|
$
315,356
|
|
47 %
|
|
|
|
|
|
|
|
Net charge-offs to
average loans and leases (annualized)
|
|
0.27 %
|
|
0.13 %
|
|
0.14
|
Recoveries to gross
charge-offs
|
|
17.30 %
|
|
31.36 %
|
|
(14.06)
|
(1)
|
For the twelve months
ended December 31, 2023, the provision for credit losses on loans
and leases includes $88.4 million initial provision related to
non-PCD loans acquired during the period.
|
(2)
|
Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
Columbia Banking
System, Inc.
|
Consolidated Average
Balance Sheets, Net Interest Income, and
Yields/Rates
|
(Unaudited)
|
|
Quarter
Ended
|
|
December 31,
2023
|
|
September 30,
2023
|
|
December 31,
2022
|
($ in
thousands)
|
Average
Balance
|
|
Interest
Income 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
|
$
48,868
|
|
$ 649
|
|
5.31 %
|
|
$ 199,855
|
|
$ 1,741
|
|
3.49 %
|
|
$ 110,850
|
|
$ 1,603
|
|
5.79 %
|
Loans and leases
(1)
|
37,333,310
|
|
577,092
|
|
6.13 %
|
|
37,050,518
|
|
567,929
|
|
6.08 %
|
|
25,855,556
|
|
320,747
|
|
4.92 %
|
Taxable
securities
|
7,903,053
|
|
82,872
|
|
4.19 %
|
|
8,356,165
|
|
85,007
|
|
4.07 %
|
|
3,042,044
|
|
18,290
|
|
2.40 %
|
Non-taxable securities
(2)
|
809,551
|
|
8,073
|
|
3.99 %
|
|
844,417
|
|
8,085
|
|
3.83 %
|
|
200,825
|
|
1,571
|
|
3.13 %
|
Temporary investments
and interest-bearing cash
|
1,743,447
|
|
24,055
|
|
5.47 %
|
|
2,530,150
|
|
34,407
|
|
5.40 %
|
|
1,095,854
|
|
10,319
|
|
3.74 %
|
Total interest-earning
assets
|
47,838,229
|
|
$ 692,741
|
|
5.75 %
|
|
48,981,105
|
|
$ 697,169
|
|
5.65 %
|
|
30,305,129
|
|
$ 352,530
|
|
4.62 %
|
Goodwill and other
intangible assets
|
1,652,282
|
|
|
|
|
|
1,684,093
|
|
|
|
|
|
5,298
|
|
|
|
|
Other assets
|
2,341,845
|
|
|
|
|
|
2,346,163
|
|
|
|
|
|
1,327,063
|
|
|
|
|
Total assets
|
$
51,832,356
|
|
|
|
|
|
$
53,011,361
|
|
|
|
|
|
$
31,637,490
|
|
|
|
|
INTEREST-BEARING
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
$
7,617,427
|
|
$
44,861
|
|
2.34 %
|
|
$
6,578,849
|
|
$
25,209
|
|
1.52 %
|
|
$
4,005,643
|
|
$ 5,372
|
|
0.53 %
|
Money market
deposits
|
10,276,894
|
|
61,055
|
|
2.36 %
|
|
10,249,028
|
|
50,039
|
|
1.94 %
|
|
7,651,974
|
|
17,473
|
|
0.91 %
|
Savings
deposits
|
2,880,622
|
|
698
|
|
0.10 %
|
|
3,109,779
|
|
1,253
|
|
0.16 %
|
|
2,345,564
|
|
226
|
|
0.04 %
|
Time
deposits
|
5,847,400
|
|
64,045
|
|
4.35 %
|
|
5,184,089
|
|
50,473
|
|
3.86 %
|
|
2,100,803
|
|
8,103
|
|
1.53 %
|
Total interest-bearing
deposits
|
26,622,343
|
|
170,659
|
|
2.54 %
|
|
25,121,745
|
|
126,974
|
|
2.01 %
|
|
16,103,984
|
|
31,174
|
|
0.77 %
|
Repurchase agreements
and federal funds purchased
|
245,989
|
|
1,226
|
|
1.98 %
|
|
268,444
|
|
1,220
|
|
1.80 %
|
|
354,624
|
|
323
|
|
0.36 %
|
Borrowings
|
3,918,261
|
|
56,066
|
|
5.68 %
|
|
5,603,207
|
|
77,080
|
|
5.46 %
|
|
796,414
|
|
8,023
|
|
4.00 %
|
Junior and other
subordinated debentures
|
440,007
|
|
10,060
|
|
9.07 %
|
|
420,582
|
|
9,864
|
|
9.30 %
|
|
413,708
|
|
7,248
|
|
6.95 %
|
Total interest-bearing
liabilities
|
31,226,600
|
|
$ 238,011
|
|
3.02 %
|
|
31,413,978
|
|
$ 215,138
|
|
2.72 %
|
|
17,668,730
|
|
$
46,768
|
|
1.05 %
|
Non-interest-bearing
deposits
|
14,899,001
|
|
|
|
|
|
15,759,720
|
|
|
|
|
|
10,870,842
|
|
|
|
|
Other
liabilities
|
1,011,019
|
|
|
|
|
|
970,688
|
|
|
|
|
|
659,279
|
|
|
|
|
Total
liabilities
|
47,136,620
|
|
|
|
|
|
48,144,386
|
|
|
|
|
|
29,198,851
|
|
|
|
|
Common
equity
|
4,695,736
|
|
|
|
|
|
4,866,975
|
|
|
|
|
|
2,438,639
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
51,832,356
|
|
|
|
|
|
$
53,011,361
|
|
|
|
|
|
$
31,637,490
|
|
|
|
|
NET INTEREST INCOME
(2)
|
|
|
$ 454,730
|
|
|
|
|
|
$ 482,031
|
|
|
|
|
|
$ 305,762
|
|
|
NET INTEREST
SPREAD
|
|
|
|
|
2.73 %
|
|
|
|
|
|
2.93 %
|
|
|
|
|
|
3.57 %
|
NET INTEREST INCOME
TO EARNING ASSETS
OR NET INTEREST MARGIN (1), (2)
|
|
|
|
|
3.78 %
|
|
|
|
|
|
3.91 %
|
|
|
|
|
|
4.01 %
|
(1)
|
Non-accrual loans and
leases are included in the average balance.
|
(2)
|
Tax-exempt income has
been adjusted to a tax equivalent basis at a 21% tax rate. The
amount of such adjustment was an addition to recorded income of
approximately $1.1 million for the three months ended December 31,
2023, as compared to $1.2 million for the three months ended
September 30, 2023 and $283,000 for the three months ended December
31, 2022.
|
Columbia Banking
System, Inc.
|
Consolidated Average
Balance Sheets, Net Interest Income, and
Yields/Rates
|
(Unaudited)
|
|
Twelve months
ended
|
|
December 31,
2023
|
|
December 31,
2022
|
($ in
thousands)
|
Average
Balance
|
|
Interest
Income or
Expense
|
|
Average
Yields or
Rates
|
|
Average
Balance
|
|
Interest
Income or
Expense
|
|
Average
Yields or
Rates
|
INTEREST-EARNING
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for
sale
|
$
87,675
|
|
$
3,871
|
|
4.42 %
|
|
$
208,141
|
|
$
8,812
|
|
4.23 %
|
Loans and leases
(1)
|
35,412,594
|
|
2,109,744
|
|
5.95 %
|
|
24,225,518
|
|
1,041,446
|
|
4.29 %
|
Taxable
securities
|
7,479,573
|
|
289,944
|
|
3.88 %
|
|
3,343,721
|
|
72,702
|
|
2.17 %
|
Non-taxable securities
(2)
|
740,376
|
|
28,236
|
|
3.81 %
|
|
216,943
|
|
6,669
|
|
3.07 %
|
Temporary investments
and interest-bearing cash
|
2,147,348
|
|
111,659
|
|
5.20 %
|
|
1,561,808
|
|
19,706
|
|
1.26 %
|
Total interest-earning
assets
|
45,867,566
|
|
$
2,543,454
|
|
5.54 %
|
|
29,556,131
|
|
$
1,149,335
|
|
3.88 %
|
Goodwill and other
intangible assets
|
1,423,075
|
|
|
|
|
|
6,847
|
|
|
|
|
Other assets
|
2,205,678
|
|
|
|
|
|
1,254,418
|
|
|
|
|
Total
assets
|
$ 49,496,319
|
|
|
|
|
|
$ 30,817,396
|
|
|
|
|
INTEREST-BEARING
LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits
|
$ 6,280,333
|
|
$
97,162
|
|
1.55 %
|
|
$ 3,886,390
|
|
$
8,185
|
|
0.21 %
|
Money market
deposits
|
9,962,837
|
|
185,035
|
|
1.86 %
|
|
7,552,666
|
|
26,415
|
|
0.35 %
|
Savings
deposits
|
2,994,333
|
|
3,384
|
|
0.11 %
|
|
2,411,448
|
|
880
|
|
0.04 %
|
Time
deposits
|
4,743,615
|
|
176,073
|
|
3.71 %
|
|
1,743,988
|
|
12,715
|
|
0.73 %
|
Total interest-bearing
deposits
|
23,981,118
|
|
461,654
|
|
1.93 %
|
|
15,594,492
|
|
48,195
|
|
0.31 %
|
Repurchase agreements
and federal funds purchased
|
269,853
|
|
3,923
|
|
1.45 %
|
|
465,600
|
|
997
|
|
0.21 %
|
Borrowings
|
4,522,656
|
|
242,914
|
|
5.37 %
|
|
226,665
|
|
8,920
|
|
3.94 %
|
Junior and other
subordinated debentures
|
421,195
|
|
37,665
|
|
8.94 %
|
|
399,568
|
|
19,889
|
|
4.98 %
|
Total interest-bearing
liabilities
|
29,194,822
|
|
$ 746,156
|
|
2.56 %
|
|
16,686,325
|
|
$
78,001
|
|
0.47 %
|
Non-interest-bearing
deposits
|
14,927,443
|
|
|
|
|
|
11,053,921
|
|
|
|
|
Other
liabilities
|
907,329
|
|
|
|
|
|
501,573
|
|
|
|
|
Total
liabilities
|
45,029,594
|
|
|
|
|
|
28,241,819
|
|
|
|
|
Common
equity
|
4,466,725
|
|
|
|
|
|
2,575,577
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$ 49,496,319
|
|
|
|
|
|
$ 30,817,396
|
|
|
|
|
NET INTEREST INCOME
(2)
|
|
|
$
1,797,298
|
|
|
|
|
|
$
1,071,334
|
|
|
NET INTEREST
SPREAD
|
|
|
|
|
2.98 %
|
|
|
|
|
|
3.41 %
|
NET INTEREST INCOME
TO EARNING ASSETS OR NET INTEREST MARGIN (1),
(2)
|
|
|
|
|
3.91 %
|
|
|
|
|
|
3.62 %
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Non-accrual loans and
leases are included in the average balance.
|
(2)
|
Tax-exempt income has
been adjusted to a tax equivalent basis at a 21% tax rate. The
amount of such adjustment was an addition to recorded income of
approximately $4.1 million for the twelve months ended December 31,
2023, as compared to $1.3 million for the same period in
2022.
|
Columbia Banking
System, Inc.
|
Residential Mortgage
Banking Activity
|
(Unaudited)
|
|
Quarter
Ended
|
|
% Change
(1)
|
($ in
thousands)
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Seq.
Quarter
|
|
Year
over
Year
|
Residential mortgage
banking revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Origination and
sale
|
$
2,686
|
|
$
2,442
|
|
$
3,166
|
|
$
3,587
|
|
$
4,252
|
|
10 %
|
|
(37) %
|
Servicing
|
5,966
|
|
8,887
|
|
9,167
|
|
9,397
|
|
9,184
|
|
(33) %
|
|
(35) %
|
Change in fair value of
MSR asset:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes due to
collection/realization of expected cash flows over time
|
(3,215)
|
|
(4,801)
|
|
(4,797)
|
|
(4,881)
|
|
(4,986)
|
|
(33) %
|
|
(36) %
|
Changes due to
valuation inputs or assumptions
|
(6,251)
|
|
5,308
|
|
(2,242)
|
|
(2,937)
|
|
(9,914)
|
|
(218) %
|
|
(37) %
|
MSR hedge gain
(loss)
|
5,026
|
|
(4,733)
|
|
(7,636)
|
|
2,650
|
|
(348)
|
|
nm
|
|
nm
|
Total
|
$
4,212
|
|
$
7,103
|
|
$ (2,342)
|
|
$
7,816
|
|
$ (1,812)
|
|
(41) %
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closed loan volume
for-sale
|
$ 87,033
|
|
$
103,333
|
|
$
119,476
|
|
$
131,726
|
|
$
216,833
|
|
(16) %
|
|
(60) %
|
Gain on sale
margin
|
3.09 %
|
|
2.36 %
|
|
2.65 %
|
|
2.72 %
|
|
1.96 %
|
|
0.73
|
|
1.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
servicing rights:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of
period
|
$
117,640
|
|
$
172,929
|
|
$
178,800
|
|
$
185,017
|
|
$
196,177
|
|
(32) %
|
|
(40) %
|
Additions for new MSR
capitalized
|
920
|
|
1,658
|
|
1,168
|
|
1,601
|
|
3,740
|
|
(45) %
|
|
(75) %
|
Sale of MSR
assets
|
149
|
|
(57,454)
|
|
—
|
|
—
|
|
—
|
|
nm
|
|
nm
|
Change in fair value of
MSR asset:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes due to
collection/realization of expected cash flows over time
|
(3,215)
|
|
(4,801)
|
|
(4,797)
|
|
(4,881)
|
|
(4,986)
|
|
(33) %
|
|
(36) %
|
Changes due to
valuation inputs or assumptions
|
(6,251)
|
|
5,308
|
|
(2,242)
|
|
(2,937)
|
|
(9,914)
|
|
(218) %
|
|
(37) %
|
Balance, end of
period
|
$
109,243
|
|
$
117,640
|
|
$
172,929
|
|
$
178,800
|
|
$
185,017
|
|
(7) %
|
|
(41) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans serviced for others
|
$
8,175,664
|
|
$ 8,240,950
|
|
$
12,726,615
|
|
$
12,914,046
|
|
$
13,020,189
|
|
(1) %
|
|
(37) %
|
MSR as % of serviced
portfolio
|
1.34 %
|
|
1.43 %
|
|
1.36 %
|
|
1.38 %
|
|
1.42 %
|
|
(0.09)
|
|
(0.08)
|
(1)
Percentage changes greater than +/-500% are considered not
meaningful and are presented as "nm."
|
Columbia Banking
System, Inc.
|
Residential Mortgage
Banking Activity
|
(Unaudited)
|
|
Twelve Months
Ended
|
|
% Change
(1)
|
($ in
thousands)
|
Dec 31,
2023
|
|
Dec 31,
2022
|
|
Year over
Year
|
Residential mortgage
banking revenue:
|
|
|
|
|
|
Origination and
sale
|
$
11,881
|
|
$
46,712
|
|
(75) %
|
Servicing
|
33,417
|
|
37,358
|
|
(11) %
|
Change in fair value of
MSR asset:
|
|
|
|
|
|
Changes due to
collection/realization of expected cash flows over time
|
(17,694)
|
|
(20,272)
|
|
(13) %
|
Changes due to
valuation inputs or assumptions
|
(6,122)
|
|
57,537
|
|
(111) %
|
MSR hedge
loss
|
(4,693)
|
|
(14,476)
|
|
(68) %
|
Total
|
$
16,789
|
|
$
106,859
|
|
(84) %
|
|
|
|
|
|
|
Closed loan volume
for-sale
|
$
441,568
|
|
$ 1,839,466
|
|
(76) %
|
Gain on sale
margin
|
2.69 %
|
|
2.54 %
|
|
0.15
|
|
|
|
|
|
|
Residential mortgage
servicing rights:
|
|
|
|
|
|
Balance, beginning of
period
|
$
185,017
|
|
$
123,615
|
|
50 %
|
Additions for new MSR
capitalized
|
5,347
|
|
24,137
|
|
(78) %
|
Sale of MSR
assets
|
(57,305)
|
|
—
|
|
nm
|
Change in fair value of
MSR asset:
|
|
|
|
|
|
Changes due to
collection/realization of expected cash flows over time
|
(17,694)
|
|
(20,272)
|
|
(13) %
|
Changes due to
valuation inputs or assumptions
|
(6,122)
|
|
57,537
|
|
(111) %
|
Balance, end of
period
|
$
109,243
|
|
$
185,017
|
|
(41) %
|
|
|
|
|
|
|
(1)
|
Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
Non-GAAP Financial 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
(2)
|
($ in thousands,
except per share data)
|
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Seq.
Quarter
|
|
Year
over
Year
|
Total shareholders'
equity
|
a
|
|
$
4,995,034
|
|
$
4,632,162
|
|
$
4,828,188
|
|
$
4,884,723
|
|
$
2,479,826
|
|
8 %
|
|
101 %
|
Less:
Goodwill
|
|
|
1,029,234
|
|
1,029,234
|
|
1,029,234
|
|
1,030,142
|
|
—
|
|
0 %
|
|
nm
|
Less: Other intangible
assets, net
|
|
|
603,679
|
|
636,883
|
|
666,762
|
|
702,315
|
|
4,745
|
|
(5) %
|
|
nm
|
Tangible common
shareholders' equity
|
b
|
|
$
3,362,121
|
|
$
2,966,045
|
|
$
3,132,192
|
|
$
3,152,266
|
|
$
2,475,081
|
|
13 %
|
|
36 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
c
|
|
$
52,173,596
|
|
$
51,993,815
|
|
$
53,592,096
|
|
$
53,994,226
|
|
$
31,848,639
|
|
0 %
|
|
64 %
|
Less:
Goodwill
|
|
|
1,029,234
|
|
1,029,234
|
|
1,029,234
|
|
1,030,142
|
|
—
|
|
0 %
|
|
nm
|
Less: Other intangible
assets, net
|
|
|
603,679
|
|
636,883
|
|
666,762
|
|
702,315
|
|
4,745
|
|
(5) %
|
|
nm
|
Tangible
assets
|
d
|
|
$
50,540,683
|
|
$
50,327,698
|
|
$
51,896,100
|
|
$
52,261,769
|
|
$
31,843,894
|
|
0 %
|
|
59 %
|
Common shares
outstanding at period end (1)
|
e
|
|
208,585
|
|
208,575
|
|
208,514
|
|
208,429
|
|
129,321
|
|
0 %
|
|
61 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity to total assets ratio
|
a / c
|
|
9.57 %
|
|
8.91 %
|
|
9.01 %
|
|
9.05 %
|
|
7.79 %
|
|
0.66
|
|
1.78
|
Tangible common equity
ratio
|
b / d
|
|
6.65 %
|
|
5.89 %
|
|
6.04 %
|
|
6.03 %
|
|
7.77 %
|
|
0.76
|
|
(1.12)
|
Book value per common
share (1)
|
a / e
|
|
$
23.95
|
|
$
22.21
|
|
$
23.16
|
|
$
23.44
|
|
$
19.18
|
|
8 %
|
|
25 %
|
Tangible book value per
common share (1)
|
b / e
|
|
$
16.12
|
|
$
14.22
|
|
$
15.02
|
|
$
15.12
|
|
$
19.14
|
|
13 %
|
|
(16) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Periods prior to
February 28, 2023, have been restated as a result of the adjustment
to common shares outstanding based on the exchange ratio from the
merger of 0.5958.
|
(2)
|
Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
Columbia Banking
System, Inc.
|
GAAP to Non-GAAP
Reconciliation - Continued
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
% Change
(1)
|
($ in
thousands)
|
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Seq.
Quarter
|
|
Year
over
Year
|
Non-Interest Income
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of debt
securities, net
|
|
|
$
9
|
|
$
4
|
|
$
—
|
|
$
—
|
|
$
—
|
|
125 %
|
|
nm
|
(Loss) gain on equity
securities, net
|
|
|
2,636
|
|
(2,055)
|
|
(697)
|
|
2,416
|
|
284
|
|
nm
|
|
nm
|
Gain (loss) on swap
derivatives
|
|
|
(8,042)
|
|
5,700
|
|
1,288
|
|
(3,543)
|
|
(2,329)
|
|
(241) %
|
|
245 %
|
Change in fair value
of certain loans held for investment
|
|
|
19,354
|
|
(19,247)
|
|
(6,965)
|
|
9,488
|
|
4,192
|
|
nm
|
|
362 %
|
Change in fair value
of MSR due to valuation inputs or assumptions
|
|
|
(6,251)
|
|
5,308
|
|
(2,242)
|
|
(2,937)
|
|
(9,914)
|
|
(218) %
|
|
(37) %
|
MSR hedge (loss)
gain
|
|
|
5,026
|
|
(4,733)
|
|
(7,636)
|
|
2,650
|
|
(348)
|
|
nm
|
|
nm
|
Total non-interest
income adjustments
|
a
|
|
$
12,732
|
|
$
(15,023)
|
|
$
(16,252)
|
|
$
8,074
|
|
$
(8,115)
|
|
nm
|
|
nm
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related
expense
|
|
|
$
7,174
|
|
$
18,938
|
|
$
29,649
|
|
$
115,898
|
|
$
11,637
|
|
(62) %
|
|
(38) %
|
Exit and disposal
costs
|
|
|
2,791
|
|
4,017
|
|
2,119
|
|
1,291
|
|
1,966
|
|
(31) %
|
|
42 %
|
Total non-interest
expense adjustments
|
b
|
|
$
9,965
|
|
$
22,955
|
|
$
31,768
|
|
$
117,189
|
|
$
13,603
|
|
(57) %
|
|
(27) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
c
|
|
$
453,623
|
|
$
480,875
|
|
$
483,975
|
|
$
374,698
|
|
$
305,479
|
|
(6) %
|
|
48 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income
(GAAP)
|
d
|
|
$
65,533
|
|
$
43,981
|
|
$
39,678
|
|
$
54,735
|
|
$
34,879
|
|
49 %
|
|
88 %
|
Less: Non-interest
income adjustments
|
a
|
|
(12,732)
|
|
15,023
|
|
16,252
|
|
(8,074)
|
|
8,115
|
|
(185) %
|
|
(257) %
|
Operating
non-interest income (non-GAAP)
|
e
|
|
$
52,801
|
|
$
59,004
|
|
$
55,930
|
|
$
46,661
|
|
$
42,994
|
|
(11) %
|
|
23 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
(GAAP)
|
f=c+d
|
|
$
519,156
|
|
$
524,856
|
|
$
523,653
|
|
$
429,433
|
|
$
340,358
|
|
(1) %
|
|
53 %
|
Operating revenue
(non-GAAP)
|
g=c+e
|
|
$
506,424
|
|
$
539,879
|
|
$
539,905
|
|
$
421,359
|
|
$
348,473
|
|
(6) %
|
|
45 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense
(GAAP)
|
h
|
|
$
337,176
|
|
$
304,147
|
|
$
328,559
|
|
$
342,818
|
|
$
194,982
|
|
11 %
|
|
73 %
|
Less: Non-interest
expense adjustments
|
b
|
|
(9,965)
|
|
(22,955)
|
|
(31,768)
|
|
(117,189)
|
|
(13,603)
|
|
(57) %
|
|
(27) %
|
Operating
non-interest expense (non-GAAP)
|
i
|
|
$
327,211
|
|
$
281,192
|
|
$
296,791
|
|
$
225,629
|
|
$
181,379
|
|
16 %
|
|
80 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
(GAAP)
|
j
|
|
$
93,531
|
|
$
135,845
|
|
$
133,377
|
|
$
(14,038)
|
|
$
82,964
|
|
(31) %
|
|
13 %
|
Provision (benefit) for
income taxes
|
|
|
33,540
|
|
48,127
|
|
45,703
|
|
(4,886)
|
|
29,464
|
|
(30) %
|
|
14 %
|
Income (loss) before
provision for income taxes
|
|
|
127,071
|
|
183,972
|
|
179,080
|
|
(18,924)
|
|
112,428
|
|
(31) %
|
|
13 %
|
Provision for credit
losses
|
|
|
54,909
|
|
36,737
|
|
16,014
|
|
105,539
|
|
32,948
|
|
49 %
|
|
67 %
|
Pre-provision net
revenue (PPNR) (non-GAAP)
|
k
|
|
181,980
|
|
220,709
|
|
195,094
|
|
86,615
|
|
145,376
|
|
(18) %
|
|
25 %
|
Less: Non-interest
income adjustments
|
a
|
|
(12,732)
|
|
15,023
|
|
16,252
|
|
(8,074)
|
|
8,115
|
|
(185) %
|
|
(257) %
|
Add: Non-interest
expense adjustments
|
b
|
|
9,965
|
|
22,955
|
|
31,768
|
|
117,189
|
|
13,603
|
|
(57) %
|
|
(27) %
|
Operating PPNR
(non-GAAP)
|
l
|
|
$
179,213
|
|
$
258,687
|
|
$
243,114
|
|
$
195,730
|
|
$
167,094
|
|
(31) %
|
|
7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
(GAAP)
|
j
|
|
$
93,531
|
|
$
135,845
|
|
$
133,377
|
|
$
(14,038)
|
|
$
82,964
|
|
(31) %
|
|
13 %
|
Less: Non-interest
income adjustments
|
a
|
|
(12,732)
|
|
15,023
|
|
16,252
|
|
(8,074)
|
|
8,115
|
|
(185) %
|
|
(257) %
|
Add: Non-interest
expense adjustments
|
b
|
|
9,965
|
|
22,955
|
|
31,768
|
|
117,189
|
|
13,603
|
|
(57) %
|
|
(27) %
|
Tax effect of
adjustments
|
|
|
691
|
|
(9,482)
|
|
(11,981)
|
|
(23,565)
|
|
(5,459)
|
|
nm
|
|
nm
|
Operating net income
(non-GAAP)
|
m
|
|
$
91,455
|
|
$
164,341
|
|
$
169,416
|
|
$
71,512
|
|
$
99,223
|
|
(44) %
|
|
(8) %
|
(1)
|
Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
Columbia Banking
System, Inc.
|
GAAP to Non-GAAP
Reconciliation - Continued
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
% Change
(3)
|
($ in thousands,
except per share data)
|
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Seq.
Quarter
|
|
Year
over
Year
|
Average
assets
|
n
|
|
$
51,832,356
|
|
$
53,011,361
|
|
$
53,540,574
|
|
$
39,425,975
|
|
$
31,637,490
|
|
(2) %
|
|
64 %
|
Less: Average goodwill
and other intangible assets, net
|
|
|
1,652,282
|
|
1,684,093
|
|
1,718,705
|
|
623,042
|
|
5,298
|
|
(2) %
|
|
nm
|
Average tangible
assets
|
o
|
|
$
50,180,074
|
|
$
51,327,268
|
|
$
51,821,869
|
|
$
38,802,933
|
|
$
31,632,192
|
|
(2) %
|
|
59 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common
shareholders' equity
|
p
|
|
$
4,695,736
|
|
$
4,866,975
|
|
$
4,935,239
|
|
$
3,349,761
|
|
$
2,438,639
|
|
(4) %
|
|
93 %
|
Less: Average goodwill
and other intangible assets, net
|
|
|
1,652,282
|
|
1,684,093
|
|
1,718,705
|
|
623,042
|
|
5,298
|
|
(2) %
|
|
nm
|
Average tangible
common equity
|
q
|
|
$
3,043,454
|
|
$
3,182,882
|
|
$
3,216,534
|
|
$
2,726,719
|
|
$
2,433,341
|
|
(4) %
|
|
25 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding (1)
|
r
|
|
208,083
|
|
208,070
|
|
207,977
|
|
156,383
|
|
129,321
|
|
0 %
|
|
61 %
|
Weighted average
diluted shares outstanding (1)
|
s
|
|
208,739
|
|
208,645
|
|
208,545
|
|
156,383
|
|
129,801
|
|
0 %
|
|
61 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select Per-Share
& Performance Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings-per-share -
basic (1)
|
j / r
|
|
$
0.45
|
|
$
0.65
|
|
$
0.64
|
|
$
(0.09)
|
|
$
0.64
|
|
(31) %
|
|
(30) %
|
Earnings-per-share -
diluted (1)
|
j / s
|
|
$
0.45
|
|
$
0.65
|
|
$
0.64
|
|
$
(0.09)
|
|
$
0.64
|
|
(31) %
|
|
(30) %
|
Efficiency ratio
(2)
|
h / f
|
|
64.81 %
|
|
57.82 %
|
|
62.60 %
|
|
79.71 %
|
|
57.24 %
|
|
6.99
|
|
7.57
|
ROAA
|
j / n
|
|
0.72 %
|
|
1.02 %
|
|
1.00 %
|
|
(0.14) %
|
|
1.04 %
|
|
(0.30)
|
|
(0.32)
|
Return on average
tangible assets
|
j / o
|
|
0.74 %
|
|
1.05 %
|
|
1.03 %
|
|
(0.15) %
|
|
1.04 %
|
|
(0.31)
|
|
(0.30)
|
PPNR ROAA
|
k / n
|
|
1.39 %
|
|
1.65 %
|
|
1.46 %
|
|
0.89 %
|
|
1.82 %
|
|
(0.26)
|
|
(0.43)
|
Return on average
common equity
|
j / p
|
|
7.90 %
|
|
11.07 %
|
|
10.84 %
|
|
(1.70) %
|
|
13.50 %
|
|
(3.17)
|
|
(5.60)
|
Return on average
tangible common equity
|
j / q
|
|
12.19 %
|
|
16.93 %
|
|
16.63 %
|
|
(2.09) %
|
|
13.53 %
|
|
(4.74)
|
|
(1.34)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Per-Share
& Performance Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings-per-share - basic (1)
|
m / r
|
|
$
0.44
|
|
$
0.79
|
|
$
0.81
|
|
$
0.46
|
|
$
0.77
|
|
(44) %
|
|
(43) %
|
Operating
earnings-per-share - diluted (1)
|
m / s
|
|
$
0.44
|
|
$
0.79
|
|
$
0.81
|
|
$
0.46
|
|
$
0.76
|
|
(44) %
|
|
(42) %
|
Operating efficiency
ratio (2)
|
i / g
|
|
64.47 %
|
|
51.97 %
|
|
54.85 %
|
|
53.46 %
|
|
52.01 %
|
|
12.50
|
|
12.46
|
Operating
ROAA
|
m / n
|
|
0.70 %
|
|
1.23 %
|
|
1.27 %
|
|
0.74 %
|
|
1.24 %
|
|
(0.53)
|
|
(0.54)
|
Operating return on
average tangible assets
|
m / o
|
|
0.72 %
|
|
1.27 %
|
|
1.31 %
|
|
0.75 %
|
|
1.24 %
|
|
(0.55)
|
|
(0.52)
|
Operating PPNR
ROAA
|
l / n
|
|
1.37 %
|
|
1.94 %
|
|
1.82 %
|
|
2.01 %
|
|
2.10 %
|
|
(0.57)
|
|
(0.73)
|
Operating return on
average common equity
|
m / p
|
|
7.73 %
|
|
13.40 %
|
|
13.77 %
|
|
8.66 %
|
|
16.14 %
|
|
(5.67)
|
|
(8.41)
|
Operating return on
average tangible common equity
|
m / q
|
|
11.92 %
|
|
20.48 %
|
|
21.13 %
|
|
10.64 %
|
|
16.18 %
|
|
(8.56)
|
|
(4.26)
|
(1)
|
Periods prior to
February 28, 2023, have been restated as a result of the adjustment
to common shares outstanding based on the exchange ratio from the
merger of 0.5958.
|
(2)
|
Tax exempt interest has
been adjusted to a taxable equivalent basis using a 21% tax rate
and added to stated revenue for this calculation.
|
(3)
|
Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
Columbia Banking
System, Inc.
|
GAAP to Non-GAAP
Reconciliation - Continued
|
(Unaudited)
|
|
|
|
Twelve Months
Ended
|
|
% Change
(1)
|
($ in
thousands)
|
|
|
Dec 31,
2023
|
|
Dec 31,
2022
|
|
Year over
Year
|
Non-Interest Income
Adjustments
|
|
|
|
|
|
|
|
Gain on sale of debt
securities, net
|
|
|
$
13
|
|
$
2
|
|
nm
|
Gain (loss) on equity
securities, net
|
|
|
2,300
|
|
(7,099)
|
|
(132) %
|
(Loss) gain on swap
derivatives
|
|
|
(4,597)
|
|
16,249
|
|
(128) %
|
Change in fair value
of certain loans held for investment
|
|
|
2,630
|
|
(58,464)
|
|
(104) %
|
Change in fair value
of MSR due to valuation inputs or assumptions
|
|
|
(6,122)
|
|
57,537
|
|
(111) %
|
MSR hedge
loss
|
|
|
(4,693)
|
|
(14,476)
|
|
(68) %
|
Total non-interest
income adjustments
|
a
|
|
$
(10,469)
|
|
$
(6,251)
|
|
67 %
|
|
|
|
|
|
|
|
|
Non-Interest Expense
Adjustments
|
|
|
|
|
|
|
|
Merger-related
expense
|
|
|
$
171,659
|
|
$
17,356
|
|
nm
|
Exit and disposal
costs
|
|
|
10,218
|
|
6,805
|
|
50 %
|
Total non-interest
expense adjustments
|
b
|
|
$
181,877
|
|
$
24,161
|
|
nm
|
|
|
|
|
|
|
|
|
Net interest
income
|
c
|
|
$
1,793,171
|
|
$
1,070,016
|
|
68 %
|
|
|
|
|
|
|
|
|
Non-interest income
(GAAP)
|
d
|
|
$
203,927
|
|
$
199,528
|
|
2 %
|
Less: Non-interest
income adjustments
|
a
|
|
10,469
|
|
6,251
|
|
67 %
|
Operating
non-interest income (non-GAAP)
|
e
|
|
$
214,396
|
|
$
205,779
|
|
4 %
|
|
|
|
|
|
|
|
|
Revenue
(GAAP)
|
f=c+d
|
|
$
1,997,098
|
|
$
1,269,544
|
|
57 %
|
Operating revenue
(non-GAAP)
|
g=c+e
|
|
$
2,007,567
|
|
$
1,275,795
|
|
57 %
|
|
|
|
|
|
|
|
|
Non-interest expense
(GAAP)
|
h
|
|
$
1,312,700
|
|
$
734,950
|
|
79 %
|
Less: Non-interest
expense adjustments
|
b
|
|
(181,877)
|
|
(24,161)
|
|
nm
|
Operating
non-interest expense (non-GAAP)
|
i
|
|
$
1,130,823
|
|
$
710,789
|
|
59 %
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
j
|
|
$
348,715
|
|
$
336,752
|
|
4 %
|
Provision for income
taxes
|
|
|
122,484
|
|
113,826
|
|
8 %
|
Income before provision
for income taxes
|
|
|
471,199
|
|
450,578
|
|
5 %
|
Provision for credit
losses
|
|
|
213,199
|
|
84,016
|
|
154 %
|
Pre-provision net
revenue (PPNR) (non-GAAP)
|
k
|
|
684,398
|
|
534,594
|
|
28 %
|
Less: Non-interest
income adjustments
|
a
|
|
10,469
|
|
6,251
|
|
67 %
|
Add: Non-interest
expense adjustments
|
b
|
|
181,877
|
|
24,161
|
|
nm
|
Operating PPNR
(non-GAAP)
|
l
|
|
$
876,744
|
|
$
565,006
|
|
55 %
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
j
|
|
$
348,715
|
|
$
336,752
|
|
4 %
|
Less: Non-interest
income adjustments
|
a
|
|
10,469
|
|
6,251
|
|
67 %
|
Add: Non-interest
expense adjustments
|
b
|
|
181,877
|
|
24,161
|
|
nm
|
Tax effect of
adjustments
|
|
|
(44,337)
|
|
(7,479)
|
|
493 %
|
Operating net income
(non-GAAP)
|
m
|
|
$
496,724
|
|
$
359,685
|
|
38 %
|
(1)
Percentage changes greater than +/-500% are considered not
meaningful and are presented as "nm."
|
Average
assets
|
n
|
|
$
49,496,319
|
|
$
30,817,396
|
|
61 %
|
Less: Average goodwill
and other intangible assets, net
|
|
|
1,423,075
|
|
6,847
|
|
nm
|
Average tangible
assets
|
o
|
|
$
48,073,244
|
|
$
30,810,549
|
|
56 %
|
|
|
|
|
|
|
|
|
Average common
shareholders' equity
|
p
|
|
$
4,466,725
|
|
$
2,575,577
|
|
73 %
|
Less: Average goodwill
and other intangible assets, net
|
|
|
1,423,075
|
|
6,847
|
|
nm
|
Average tangible
common equity
|
q
|
|
$
3,043,650
|
|
$
2,568,730
|
|
18 %
|
|
|
|
|
|
|
|
|
Weighted average
basic shares outstanding (1)
|
r
|
|
195,304
|
|
129,277
|
|
51 %
|
Weighted average
diluted shares outstanding (1)
|
s
|
|
195,871
|
|
129,732
|
|
51 %
|
|
|
|
|
|
|
|
|
Select Per-Share
& Performance Metrics
|
|
|
|
|
|
|
|
Earnings-per-share -
basic (1)
|
j / r
|
|
$
1.79
|
|
$
2.60
|
|
(31) %
|
Earnings-per-share -
diluted (1)
|
j / s
|
|
$
1.78
|
|
$
2.60
|
|
(32) %
|
Efficiency ratio
(2)
|
h / f
|
|
65.59 %
|
|
57.83 %
|
|
7.76
|
ROAA
|
j / n
|
|
0.70 %
|
|
1.09 %
|
|
(0.39)
|
Return on average
tangible assets
|
j / o
|
|
0.73 %
|
|
1.09 %
|
|
(0.36)
|
PPNR ROAA
|
k/n
|
|
1.38 %
|
|
1.73 %
|
|
(0.35)
|
Return on average
common equity
|
j / p
|
|
7.81 %
|
|
13.07 %
|
|
(5.26)
|
Return on average
tangible common equity
|
j / q
|
|
11.46 %
|
|
13.11 %
|
|
(1.65)
|
|
|
|
|
|
|
|
|
Operating Per-Share
& Performance Metrics
|
|
|
|
|
|
|
|
Operating
earnings-per-share - basic (1)
|
m / r
|
|
$
2.54
|
|
$
2.78
|
|
(9) %
|
Operating
earnings-per-share - diluted (1)
|
m / s
|
|
$
2.54
|
|
$
2.77
|
|
(8) %
|
Operating efficiency
ratio (2)
|
i / g
|
|
56.21 %
|
|
55.66 %
|
|
0.55
|
Operating
ROAA
|
m / n
|
|
1.00 %
|
|
1.17 %
|
|
(0.17)
|
Operating return on
average tangible assets
|
m / o
|
|
1.03 %
|
|
1.17 %
|
|
(0.14)
|
Operating PPNR
ROAA
|
l / n
|
|
1.77 %
|
|
1.83 %
|
|
(0.06)
|
Operating return on
average common equity
|
m / p
|
|
11.12 %
|
|
13.97 %
|
|
(2.85)
|
Operating return on
average tangible common equity
|
m / q
|
|
16.32 %
|
|
14.00 %
|
|
2.32
|
(1)
|
Periods prior to
February 28, 2023, have been restated as a result of the adjustment
to common shares outstanding based on the exchange ratio from the
merger of 0.5958.
|
(2)
|
Tax exempt interest has
been adjusted to a taxable equivalent basis using a 21% tax rate
and added to stated revenue for this calculation.
|
(3)
|
Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
Columbia Banking
System, Inc.
|
GAAP to Non-GAAP
Reconciliation - Continued
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
% Change
(4)
|
($ in
thousands)
|
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Seq.
Quarter
|
|
Year over
Year
|
Loans and leases
interest income
|
a
|
|
$ 577,092
|
|
$ 567,929
|
|
$ 551,997
|
|
$ 412,726
|
|
$
320,747
|
|
2 %
|
|
80 %
|
Less: Acquired loan
accretion - rate related (2), (3)
|
b
|
|
26,914
|
|
28,963
|
|
30,548
|
|
11,832
|
|
387
|
|
(7) %
|
|
nm
|
Less: Acquired loan
accretion - credit related (3)
|
c
|
|
5,430
|
|
6,370
|
|
7,100
|
|
3,806
|
|
—
|
|
(15) %
|
|
nm
|
Adjusted loans and
leases interest income
|
d=a-b-c
|
|
$ 544,748
|
|
$ 532,596
|
|
$ 514,349
|
|
$ 397,088
|
|
$
320,360
|
|
2 %
|
|
70 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities
interest income
|
e
|
|
$
82,872
|
|
$
85,007
|
|
$
81,617
|
|
$
40,448
|
|
$
18,290
|
|
(3) %
|
|
353 %
|
Less: Acquired taxable
securities accretion - rate related
|
f
|
|
34,290
|
|
39,219
|
|
34,801
|
|
15,356
|
|
—
|
|
(13) %
|
|
nm
|
Adjusted Taxable
securities interest income
|
g=e-f
|
|
$
48,582
|
|
$
45,788
|
|
$
46,816
|
|
$
25,092
|
|
$
18,290
|
|
6 %
|
|
166 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-taxable
securities interest income (1)
|
h
|
|
$
8,073
|
|
$
8,085
|
|
$
8,010
|
|
$
4,068
|
|
$
1,571
|
|
0 %
|
|
414 %
|
Less: Acquired
non-taxable securities accretion - rate related
|
i
|
|
2,309
|
|
2,288
|
|
2,274
|
|
901
|
|
—
|
|
1 %
|
|
nm
|
Adjusted Taxable
securities interest income (1)
|
j=h-i
|
|
$
5,764
|
|
$
5,797
|
|
$
5,736
|
|
$
3,167
|
|
$
1,571
|
|
(1) %
|
|
267 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
(1)
|
k
|
|
$ 692,741
|
|
$ 697,169
|
|
$ 676,922
|
|
$ 476,622
|
|
$
352,530
|
|
(1) %
|
|
97 %
|
Less: Acquired loan
and securities accretion - rate related
|
l=b+f+i
|
|
63,513
|
|
70,470
|
|
67,623
|
|
28,089
|
|
387
|
|
(10) %
|
|
nm
|
Less: Acquired loan
accretion - credit related
|
c
|
|
5,430
|
|
6,370
|
|
7,100
|
|
3,806
|
|
—
|
|
(15) %
|
|
nm
|
Adjusted interest
income (1)
|
m=k-l-c
|
|
$ 623,798
|
|
$ 620,329
|
|
$ 602,199
|
|
$ 444,727
|
|
$
352,143
|
|
1 %
|
|
77 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits interest expense
|
n
|
|
$ 170,659
|
|
$ 126,974
|
|
$ 100,408
|
|
$
63,613
|
|
$
31,174
|
|
34 %
|
|
447 %
|
Less: Acquired deposit
accretion
|
o
|
|
(187)
|
|
(373)
|
|
(280)
|
|
(93)
|
|
—
|
|
(50) %
|
|
nm
|
Adjusted
interest-bearing deposits interest expense
|
p=n-o
|
|
$ 170,846
|
|
$ 127,347
|
|
$ 100,688
|
|
$
63,706
|
|
$
31,174
|
|
34 %
|
|
448 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
q
|
|
$ 238,011
|
|
$ 215,138
|
|
$ 191,754
|
|
$ 101,253
|
|
$
46,768
|
|
11 %
|
|
409 %
|
Less: Acquired
interest-bearing liabilities accretion (2)
|
r
|
|
(244)
|
|
(430)
|
|
(337)
|
|
(150)
|
|
(57)
|
|
(43) %
|
|
328 %
|
Adjusted interest
expense
|
s=q-r
|
|
$ 238,255
|
|
$ 215,568
|
|
$ 192,091
|
|
$ 101,403
|
|
$
46,825
|
|
11 %
|
|
409 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income
(1)
|
t
|
|
$ 454,730
|
|
$ 482,031
|
|
$ 485,168
|
|
$ 375,369
|
|
$
305,762
|
|
(6) %
|
|
49 %
|
Less: Acquired loan,
securities, and interest-bearing liabilities accretion - rate
related (3)
|
u=l-r
|
|
63,757
|
|
70,900
|
|
67,960
|
|
28,239
|
|
444
|
|
(10) %
|
|
nm
|
Less: Acquired loan
accretion - credit related (3)
|
c
|
|
5,430
|
|
6,370
|
|
7,100
|
|
3,806
|
|
—
|
|
(15) %
|
|
nm
|
Adjusted net
interest income (1)
|
v=t-u-c
|
|
$ 385,543
|
|
$ 404,761
|
|
$ 410,108
|
|
$ 343,324
|
|
$
305,318
|
|
(5) %
|
|
26 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans and
leases
|
aa
|
|
37,333,310
|
|
37,050,518
|
|
37,169,315
|
|
29,998,630
|
|
25,855,556
|
|
1 %
|
|
44 %
|
Average taxable
securities
|
ab
|
|
7,903,053
|
|
8,356,165
|
|
8,656,147
|
|
4,960,966
|
|
3,042,044
|
|
(5) %
|
|
160 %
|
Average non-taxable
securities
|
ac
|
|
809,551
|
|
844,417
|
|
865,278
|
|
437,020
|
|
200,825
|
|
(4) %
|
|
303 %
|
Average
interest-earning assets
|
ad
|
|
47,838,229
|
|
48,981,105
|
|
49,442,518
|
|
37,055,705
|
|
30,305,129
|
|
(2) %
|
|
58 %
|
Average
interest-bearing deposits
|
ae
|
|
26,622,343
|
|
25,121,745
|
|
24,494,717
|
|
19,496,551
|
|
16,103,984
|
|
6 %
|
|
65 %
|
Average
interest-bearing liabilities
|
af
|
|
31,226,600
|
|
31,413,978
|
|
31,372,416
|
|
22,548,264
|
|
17,668,730
|
|
(1) %
|
|
77 %
|
(1)
|
Tax exempt interest has
been adjusted to a taxable equivalent basis using a 21% tax
rate.
|
(2)
|
Includes discount
accretion related to UHC's 2014 acquisition of Sterling Financial
Corporation.
|
(3)
|
The cumulative fair
value discount on historical Columbia loans was established as of
February 28, 2023, and the allocation between the credit-related
discount and the rate-related discount was established at that
time. Our disclosure of credit-related and rate-related discount
accretion is an estimate based on the relative allocation of these
two items to the discount at the closing of the
merger.
|
(4)
|
Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
Columbia Banking
System, Inc.
|
GAAP to Non-GAAP
Reconciliation - Continued
|
(Unaudited)
|
|
|
|
Quarter
Ended
|
|
%
Change
|
($ in
thousands)
|
|
|
Dec 31,
2023
|
|
Sep 30,
2023
|
|
Jun 30,
2023
|
|
Mar 31,
2023
|
|
Dec 31,
2022
|
|
Seq.
Quarter
|
|
Year over
Year
|
Average yield on
loans and leases
|
a /
aa
|
|
6.13 %
|
|
6.08 %
|
|
5.95 %
|
|
5.55 %
|
|
4.92 %
|
|
0.05
|
|
1.21
|
Less: Acquired loan
accretion - rate related (2),(3)
|
b /
aa
|
|
0.29 %
|
|
0.31 %
|
|
0.33 %
|
|
0.16 %
|
|
0.01 %
|
|
(0.02)
|
|
0.28
|
Less: Acquired loan
accretion - credit related (3)
|
c /
aa
|
|
0.06 %
|
|
0.07 %
|
|
0.08 %
|
|
0.05 %
|
|
— %
|
|
(0.01)
|
|
0.06
|
Adjusted average
yield on loans and leases
|
d /
aa
|
|
5.78 %
|
|
5.70 %
|
|
5.54 %
|
|
5.34 %
|
|
4.91 %
|
|
0.08
|
|
0.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average yield on
taxable securities
|
e /
ab
|
|
4.19 %
|
|
4.07 %
|
|
3.77 %
|
|
3.26 %
|
|
2.40 %
|
|
0.12
|
|
1.79
|
Less: Acquired taxable
securities accretion - rate related
|
f /
ab
|
|
1.72 %
|
|
1.86 %
|
|
1.61 %
|
|
1.26 %
|
|
— %
|
|
(0.14)
|
|
1.72
|
Adjusted average
yield on taxable securities
|
g /
ab
|
|
2.47 %
|
|
2.21 %
|
|
2.16 %
|
|
2.00 %
|
|
2.40 %
|
|
0.26
|
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average yield on
non-taxable securities (1)
|
h /
ac
|
|
3.99 %
|
|
3.83 %
|
|
3.70 %
|
|
3.72 %
|
|
3.13 %
|
|
0.16
|
|
0.86
|
Less: Acquired
non-taxable securities accretion - rate related
|
i /
ac
|
|
1.13 %
|
|
1.07 %
|
|
1.05 %
|
|
0.84 %
|
|
— %
|
|
0.06
|
|
1.13
|
Adjusted yield on
non-taxable securities (1)
|
j /
ac
|
|
2.86 %
|
|
2.76 %
|
|
2.65 %
|
|
2.88 %
|
|
3.13 %
|
|
0.10
|
|
(0.27)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average yield on
interest-earning assets (1)
|
k /
ad
|
|
5.75 %
|
|
5.65 %
|
|
5.48 %
|
|
5.19 %
|
|
4.62 %
|
|
0.10
|
|
1.13
|
Less: Acquired loan
and securities accretion - rate related
|
l /
ad
|
|
0.53 %
|
|
0.57 %
|
|
0.55 %
|
|
0.31 %
|
|
0.01 %
|
|
(0.04)
|
|
0.52
|
Less: Acquired loan
accretion - credit related
|
c /
ad
|
|
0.05 %
|
|
0.05 %
|
|
0.06 %
|
|
0.04 %
|
|
— %
|
|
—
|
|
0.05
|
Adjusted average
yield on interest-earning assets (1)
|
m /
ad
|
|
5.17 %
|
|
5.03 %
|
|
4.87 %
|
|
4.84 %
|
|
4.61 %
|
|
0.14
|
|
0.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate on
interest-bearing deposits
|
n /
ae
|
|
2.54 %
|
|
2.01 %
|
|
1.64 %
|
|
1.32 %
|
|
0.77 %
|
|
0.53
|
|
1.77
|
Less: Acquired deposit
accretion
|
o /
ae
|
|
— %
|
|
(0.01) %
|
|
— %
|
|
— %
|
|
— %
|
|
0.01
|
|
—
|
Adjusted average
rate on interest-bearing deposits
|
p /
ae
|
|
2.54 %
|
|
2.02 %
|
|
1.64 %
|
|
1.32 %
|
|
0.77 %
|
|
0.52
|
|
1.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average rate on
interest-bearing liabilities
|
q /
af
|
|
3.02 %
|
|
2.72 %
|
|
2.45 %
|
|
1.82 %
|
|
1.05 %
|
|
0.30
|
|
1.97
|
Less: Acquired
interest-bearing liabilities accretion (2)
|
r /
af
|
|
— %
|
|
(0.01) %
|
|
— %
|
|
— %
|
|
— %
|
|
0.01
|
|
—
|
Adjusted average
rate on interest-bearing liabilities
|
s /
af
|
|
3.02 %
|
|
2.73 %
|
|
2.45 %
|
|
1.82 %
|
|
1.05 %
|
|
0.29
|
|
1.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(1)
|
t /
ad
|
|
3.78 %
|
|
3.91 %
|
|
3.93 %
|
|
4.08 %
|
|
4.01 %
|
|
(0.13)
|
|
(0.23)
|
Less: Acquired loan,
securities, and interest-bearing liabilities accretion - rate
related (3)
|
u /
ad
|
|
0.53 %
|
|
0.58 %
|
|
0.55 %
|
|
0.31 %
|
|
— %
|
|
(0.05)
|
|
0.53
|
Less: Acquired loan
accretion - credit related (3)
|
c /
ad
|
|
0.05 %
|
|
0.05 %
|
|
0.06 %
|
|
0.04 %
|
|
— %
|
|
—
|
|
0.05
|
Adjusted net
interest margin (1)
|
v /
ad
|
|
3.20 %
|
|
3.28 %
|
|
3.32 %
|
|
3.73 %
|
|
4.01 %
|
|
(0.08)
|
|
(0.81)
|
(1)
|
Tax exempt interest has
been adjusted to a taxable equivalent basis using a 21% tax
rate.
|
(2)
|
Includes discount
accretion related to UHC's 2014 acquisition of Sterling Financial
Corporation.
|
(3)
|
The cumulative fair
value discount on historical Columbia loans was established as of
February 28, 2023, and the allocation between the credit-related
discount and the rate-related discount was established at that
time. Our disclosure of credit-related and rate-related discount
accretion is an estimate based on the relative allocation of these
two items to the discount at the closing of the merger.
|
Columbia Banking
System, Inc.
|
GAAP to Non-GAAP
Reconciliation - Continued
|
(Unaudited)
|
|
|
|
Twelve Months
Ended
|
|
|
($ in
thousands)
|
|
|
Dec 31,
2023
|
|
Dec 31,
2022
|
|
Year over
Year (4)
|
Loans and leases
interest income
|
a
|
|
$
2,109,744
|
|
$
1,041,446
|
|
103 %
|
Less: Acquired loan
accretion - rate related (2), (3)
|
b
|
|
98,257
|
|
3,677
|
|
nm
|
Less: Acquired loan
accretion - credit related (3)
|
c
|
|
22,706
|
|
—
|
|
nm
|
Adjusted loans and
leases interest income
|
d=a-b-c
|
|
$
1,988,781
|
|
$
1,037,769
|
|
92 %
|
|
|
|
|
|
|
|
|
Taxable securities
interest income
|
e
|
|
$
289,944
|
|
$
72,702
|
|
299 %
|
Less: Acquired taxable
securities accretion - rate related
|
f
|
|
123,666
|
|
—
|
|
nm
|
Adjusted Taxable
securities interest income
|
g=e-f
|
|
$
166,278
|
|
$
72,702
|
|
129 %
|
|
|
|
|
|
|
|
|
Non-taxable
securities interest income (1)
|
h
|
|
$
28,236
|
|
$
6,669
|
|
323 %
|
Less: Acquired
non-taxable securities accretion - rate related
|
i
|
|
7,772
|
|
—
|
|
nm
|
Adjusted Taxable
securities interest income (1)
|
j=h-i
|
|
$
20,464
|
|
$
6,669
|
|
207 %
|
|
|
|
|
|
|
|
|
Interest income
(1)
|
k
|
|
$
2,543,454
|
|
$
1,149,335
|
|
121 %
|
Less: Acquired loan
and securities accretion - rate related
|
l=b+f+i
|
|
229,695
|
|
3,677
|
|
nm
|
Less: Acquired loan
accretion - credit related
|
c
|
|
22,706
|
|
—
|
|
nm
|
Adjusted interest
income (1)
|
m=k-l-c
|
|
$
2,291,053
|
|
$
1,145,658
|
|
100 %
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits interest expense
|
n
|
|
$
461,654
|
|
$
48,195
|
|
nm
|
Less: Acquired deposit
accretion
|
o
|
|
(933)
|
|
—
|
|
nm
|
Adjusted
interest-bearing deposits interest expense
|
p=n-o
|
|
$
462,587
|
|
$
48,195
|
|
nm
|
|
|
|
|
|
|
|
|
Interest
expense
|
q
|
|
$
746,156
|
|
$
78,001
|
|
nm
|
Less: Acquired
interest-bearing liabilities accretion (2)
|
r
|
|
(1,161)
|
|
(228)
|
|
409 %
|
Adjusted interest
expense
|
s=q-r
|
|
$
747,317
|
|
$
78,229
|
|
nm
|
|
|
|
|
|
|
|
|
Net Interest Income
(1)
|
t
|
|
$
1,797,298
|
|
$
1,071,334
|
|
68 %
|
Less: Acquired loan,
securities, and interest-bearing liabilities accretion - rate
related (3)
|
u=l-r
|
|
230,856
|
|
3,905
|
|
nm
|
Less: Acquired loan
accretion - credit related (3)
|
c
|
|
22,706
|
|
—
|
|
nm
|
Adjusted net
interest income (1)
|
v=t-u-c
|
|
$
1,543,736
|
|
$
1,067,429
|
|
45 %
|
|
|
|
|
|
|
|
|
Average loans and
leases
|
aa
|
|
35,412,594
|
|
24,225,518
|
|
46 %
|
Average taxable
securities
|
ab
|
|
7,479,573
|
|
3,343,721
|
|
124 %
|
Average non-taxable
securities
|
ac
|
|
740,376
|
|
216,943
|
|
241 %
|
Average
interest-earning assets
|
ad
|
|
45,867,566
|
|
29,556,131
|
|
55 %
|
Average
interest-bearing deposits
|
ae
|
|
23,981,118
|
|
15,594,492
|
|
54 %
|
Average
interest-bearing liabilities
|
af
|
|
29,194,822
|
|
16,686,325
|
|
75 %
|
(1)
|
Tax exempt interest has
been adjusted to a taxable equivalent basis using a 21% tax
rate.
|
(2)
|
Includes discount
accretion related to UHC's 2014 acquisition of Sterling Financial
Corporation.
|
(3)
|
The cumulative fair
value discount on historical Columbia loans was established as of
February 28, 2023, and the allocation between the credit-related
discount and the rate-related discount was established at that
time. Our disclosure of credit-related and rate-related discount
accretion is an estimate based on the relative allocation of these
two items to the discount at the closing of the
merger.
|
(4)
|
Percentage changes
greater than +/-500% are considered not meaningful and are
presented as "nm."
|
Columbia Banking
System, Inc.
|
GAAP to Non-GAAP
Reconciliation - Continued
|
(Unaudited)
|
|
|
|
Twelve Months
Ended
|
|
|
($ in
thousands)
|
|
|
Dec 31,
2023
|
|
Dec 31,
2022
|
|
Year over
Year
|
Average yield on
loans and leases
|
a /
aa
|
|
5.95 %
|
|
4.29 %
|
|
1.66
|
Less: Acquired loan
accretion - rate related (2),(3)
|
b /
aa
|
|
0.28 %
|
|
0.02 %
|
|
0.26
|
Less: Acquired loan
accretion - credit related (3)
|
c /
aa
|
|
0.06 %
|
|
— %
|
|
0.06
|
Adjusted average
yield on loans and leases
|
d /
aa
|
|
5.61 %
|
|
4.27 %
|
|
1.34
|
|
|
|
|
|
|
|
|
Average yield on
taxable securities
|
e /
ab
|
|
3.88 %
|
|
2.17 %
|
|
1.71
|
Less: Acquired taxable
securities accretion - rate related
|
f /
ab
|
|
1.65 %
|
|
— %
|
|
1.65
|
Adjusted average
yield on taxable securities
|
g /
ab
|
|
2.23 %
|
|
2.17 %
|
|
0.06
|
|
|
|
|
|
|
|
|
Average yield on
non-taxable securities (1)
|
h /
ac
|
|
3.81 %
|
|
3.07 %
|
|
0.74
|
Less: Acquired
non-taxable securities accretion - rate related
|
i /
ac
|
|
1.05 %
|
|
— %
|
|
1.05
|
Adjusted yield on
non-taxable securities (1)
|
j /
ac
|
|
2.76 %
|
|
3.07 %
|
|
(0.31)
|
|
|
|
|
|
|
|
|
Average yield on
interest-earning assets (1)
|
k /
ad
|
|
5.54 %
|
|
3.88 %
|
|
1.66
|
Less: Acquired loan
and securities accretion - rate related
|
l /
ad
|
|
0.50 %
|
|
0.01 %
|
|
0.49
|
Less: Acquired loan
accretion - credit related
|
c /
ad
|
|
0.05 %
|
|
— %
|
|
0.05
|
Adjusted average
yield on interest-earning assets (1)
|
m /
ad
|
|
4.99 %
|
|
3.87 %
|
|
1.12
|
|
|
|
|
|
|
|
|
Average rate on
interest-bearing deposits
|
n /
ae
|
|
1.93 %
|
|
0.31 %
|
|
1.62
|
Less: Acquired deposit
accretion
|
o /
ae
|
|
— %
|
|
— %
|
|
—
|
Adjusted average
rate on interest-bearing deposits
|
p /
ae
|
|
1.93 %
|
|
0.31 %
|
|
1.62
|
|
|
|
|
|
|
|
|
Average rate on
interest-bearing liabilities
|
q /
af
|
|
2.56 %
|
|
0.47 %
|
|
2.09
|
Less: Acquired
interest-bearing liabilities accretion (2)
|
r /
af
|
|
— %
|
|
— %
|
|
—
|
Adjusted average
rate on interest-bearing liabilities
|
s /
af
|
|
2.56 %
|
|
0.47 %
|
|
2.09
|
|
|
|
|
|
|
|
|
Net interest margin
(1)
|
t /
ad
|
|
3.91 %
|
|
3.62 %
|
|
0.29
|
Less: Acquired loan,
securities, and interest-bearing liabilities accretion - rate
related (3)
|
u /
ad
|
|
0.50 %
|
|
0.01 %
|
|
0.49
|
Less: Acquired loan
accretion - credit related (3)
|
c /
ad
|
|
0.05 %
|
|
— %
|
|
0.05
|
Adjusted net
interest margin (1)
|
v /
ad
|
|
3.36 %
|
|
3.61 %
|
|
(0.25)
|
(1)
|
Tax exempt interest has
been adjusted to a taxable equivalent basis using a 21% tax
rate.
|
(2)
|
Includes discount
accretion related to UHC's 2014 acquisition of Sterling Financial
Corporation.
|
(3)
|
The cumulative fair
value discount on historical Columbia loans was established as of
February 28, 2023, and the allocation between the credit-related
discount and the rate-related discount was established at that
time. Our disclosure of credit-related and rate-related discount
accretion is an estimate based on the relative allocation of these
two items to the discount at the closing of the
merger.
|
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SOURCE Columbia Banking System, Inc.