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COLUMBIA BANKING SYSTEM, INC. REPORTS SECOND QUARTER 2024 RESULTS

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Columbia Banking System (COLB) reported Q2 2024 results with net income of $120 million and operating net income of $140 million. Earnings per diluted share were $0.57, while operating EPS reached $0.67. The company saw improvements in financial performance, with net interest income expanding by $4 million quarter-over-quarter and net interest margin increasing to 3.56%. Non-interest expense decreased by $8 million due to lower compensation and other factors. Credit quality remained stable with net charge-offs at 0.32% of average loans. The company maintained strong capital ratios with an estimated total risk-based capital ratio of 12.1% and declared a quarterly cash dividend of $0.36 per share.

Columbia Banking System (COLB) ha riportato i risultati del secondo trimestre 2024 con un utile netto di 120 milioni di dollari e un utile netto operativo di 140 milioni di dollari. Gli utili per azione diluiti sono stati di $0.57, mentre l'EPS operativo ha raggiunto $0.67. L'azienda ha registrato miglioramenti nelle performance finanziarie, con un reddito da interessi netto in aumento di 4 milioni di dollari rispetto al trimestre precedente e un margine d'interesse netto che è aumentato al 3.56%. Le spese non da interessi sono diminuite di 8 milioni di dollari a causa di una riduzione della retribuzione e di altri fattori. La qualità del credito è rimasta stabile con un tasso di ammortamento netto dello 0.32% sui prestiti medi. L'azienda ha mantenuto solidi rapporti patrimoniali con un rapporto patrimoniale totale basato sul rischio stimato del 12.1% e ha dichiarato un dividendo in contante trimestrale di 0.36 dollari per azione.

Columbia Banking System (COLB) reportó resultados del segundo trimestre de 2024 con un ingreso neto de 120 millones de dólares y un ingreso neto operativo de 140 millones de dólares. Las ganancias por acción diluidas fueron de $0.57, mientras que el EPS operativo alcanzó $0.67. La compañía vio mejoras en el desempeño financiero, con un ingreso por intereses netos que se expandió en 4 millones de dólares de un trimestre a otro y un margen de interés neto que aumentó al 3.56%. Los gastos no relacionados con intereses disminuyeron en 8 millones de dólares debido a una menor compensación y otros factores. La calidad crediticia se mantuvo estable con un ratio de bajas netas del 0.32% sobre los préstamos promedio. La empresa mantuvo sólidos ratios de capital con un ratio estimado de capital total basado en riesgos del 12.1% y declaró un dividendo en efectivo trimestral de 0.36 dólares por acción.

콜롬비아 뱅킹 시스템(COLB)은 2024년 2분기 실적을 보고하며 순이익 1억 2천만 달러와 운영 순이익 1억 4천만 달러를 기록했습니다. 희석 주당 순이익은 0.57달러, 운영 EPS는 0.67달러에 달했습니다. 회사는 재무 성과가 개선되었으며, 순이자 수익이 분기 대비 400만 달러 증가하고 순이자 마진이 3.56%로 증가했습니다. 비이자 비용은 보상 감소 및 기타 요인으로 인해 800만 달러 감소했습니다. 신용 품질은 평균 대출의 순 대손비율이 0.32%로 안정적인 상태를 유지했습니다. 회사는 추정 총 위험 기준 자본 비율이 12.1%인 강력한 자본 비율을 유지하였고, 주당 0.36달러의 분기 현금 배당금을 선언했습니다.

Le Columbia Banking System (COLB) a annoncé des résultats pour le deuxième trimestre 2024 avec un revenu net de 120 millions de dollars et un revenu net d'exploitation de 140 millions de dollars. Le bénéfice par action dilué était de 0,57 $, tandis que le BPA opérationnel a atteint 0,67 $. L'entreprise a observé des améliorations dans sa performance financière, avec un revenu d'intérêts nets en hausse de 4 millions de dollars d'un trimestre à l'autre et un marge d'intérêt net augmentant à 3,56%. Les charges non liées aux intérêts ont diminué de 8 millions de dollars en raison de la baisse des rémunérations et d'autres facteurs. La qualité du crédit est restée stable avec des dépréciations nettes à 0,32% des prêts moyens. L'entreprise a maintenu un solide ratio de capital avec un ratio estimé de capital total basé sur le risque de 12,1% et a déclaré un dividende en espèces trimestriel de 0,36 $ par action.

Das Columbia Banking System (COLB) berichtete über die Ergebnisse des 2. Quartals 2024 mit einem Nettoergebnis von 120 Millionen US-Dollar und einem operativen Nettoergebnis von 140 Millionen US-Dollar. Der verwässerte Gewinn pro Aktie betrug 0,57 USD, während das operative EPS 0,67 USD erreichte. Das Unternehmen verzeichnete Verbesserungen in der finanziellen Leistung, mit einem Nettozinsergebnis, das im Quartalsvergleich um 4 Millionen USD anstieg und einem Nettozinsspanne, die auf 3,56% anstieg. Die nicht-zinsbezogenen Aufwendungen verringerten sich um 8 Millionen US-Dollar aufgrund niedrigerer Entschädigungen und anderer Faktoren. Die Kreditqualität blieb stabil, mit Nettoausfällen in Höhe von 0,32% der durchschnittlichen Kredite. Das Unternehmen hielt starke Kapitalquoten mit einem geschätzten Gesamtkapitalverhältnis von 12,1% und erklärte eine vierteljährliche Bardividende von 0,36 USD pro Aktie.

Positive
  • Net interest income expanded by $4 million quarter-over-quarter
  • Net interest margin increased to 3.56%, up 4 basis points from the prior quarter
  • Non-interest expense decreased by $8 million
  • 91% of identified cost savings from enterprise-wide evaluation have been realized
  • Maintained strong capital ratios with estimated total risk-based capital ratio of 12.1%
  • Declared quarterly cash dividend of $0.36 per common share
Negative
  • Non-interest income decreased by $6 million due to fair value accounting fluctuations
  • Provision for credit losses increased to $32 million from $17 million in the prior quarter
  • Total deposits decreased by $183 million compared to the previous quarter
  • Non-performing assets to total assets increased slightly to 0.30% from 0.28% in the prior quarter

Insights

Columbia Banking System's Q2 2024 results show a mixed performance with some positive trends and ongoing challenges. Net income of $120 million and operating net income of $140 million reflect the company's efforts to improve financial performance, but also indicate room for growth.

The increase in net interest income by $4 million quarter-over-quarter is a positive sign, driven by higher yields on loans and securities. The net interest margin expansion to 3.56% demonstrates the company's ability to manage its interest-earning assets effectively in a challenging rate environment.

However, the decrease in non-interest income by $6 million due to fair value adjustments and hedging activities is a concern. This volatility in non-interest income could impact overall profitability if not managed carefully.

The reduction in non-interest expense by $8 million is commendable, reflecting the success of cost-saving initiatives. The completion of 91% of identified cost savings by Q2 end is a positive indicator of operational efficiency improvements.

Credit quality metrics show some mixed signals. While the net charge-off rate improved to 0.32% from 0.47% in the previous quarter, the increase in provision for credit losses to $32 million from $17 million suggests some caution regarding the loan portfolio's health.

The stability in the allowance for credit losses at 1.16% of loans and leases indicates a consistent approach to risk management. However, the slight increase in non-performing assets to 0.30% of total assets warrants monitoring.

Overall, while Columbia Banking System is making progress on its strategic initiatives, the company still faces challenges in fully regaining its position as a top-performing bank. Investors should closely watch for continued execution of cost-saving measures and improvements in credit quality in the coming quarters.

Columbia Banking System's Q2 2024 results provide insights into the company's market position and growth strategies. The opening of the first retail location in Phoenix, Arizona and the first Financial Hub in Southern California demonstrates a strategic expansion into new markets. This move could potentially drive future growth and diversify the bank's geographic footprint.

The success of the small business account campaign, generating nearly 6,000 new accounts and $345 million in new deposits, highlights the bank's ability to attract customers without relying on promotional pricing. This approach could lead to more stable and potentially higher-value customer relationships.

However, the slight decrease in total deposits to $41.5 billion from the previous quarter suggests some challenges in deposit retention or growth. The bank attributes this partly to anticipated customer tax payments, but it's an area to monitor for potential competitive pressures or shifts in customer behavior.

The loan portfolio's modest growth of 2% annualized (excluding loan sales) indicates a cautious approach to lending in the current economic environment. The focus on commercial line utilization and construction project activity suggests the bank is targeting specific growth areas.

The bank's liquidity position remains strong, with total available liquidity of $19.1 billion, representing 37% of total assets and 140% of uninsured deposits. This robust liquidity buffer provides flexibility and resilience in uncertain economic conditions.

Columbia's market strategy appears to balance growth initiatives with risk management, as evidenced by its targeted expansion, deposit campaigns and maintained capital ratios. However, the bank will need to navigate ongoing economic uncertainties and potential credit quality challenges to maintain its market position and drive sustainable growth.

TACOMA, Wash., July 25, 2024 /PRNewswire/ -- 


$120 million


$140 million


$0.57


$0.67

Net income


Operating net income 1


Earnings per diluted common
share


Operating earnings per diluted
common share 1

 

CEO Commentary

"Our second quarter results reflect continued progress on our targeted actions to improve our financial performance and drive shareholder value," said Clint Stein, President and CEO. "The successful execution of identified changes following enterprise-wide evaluations resulted in a lower recurring expense run rate and increased stabilization in the cost of customer deposits during the second quarter. While we are encouraged by the early success of our near-term initiatives, we have not diminished our laser focus on regaining Columbia's placement as a top-performing bank across financial metrics. Longer-term initiatives will further enhance our growth and profitability as we strive toward long-term, consistent, repeatable performance."

–Clint Stein, President and CEO of Columbia Banking System, Inc.

 

2Q24 HIGHLIGHTS (COMPARED TO 1Q24)





Net Interest
Income and
NIM

•   Net interest income expanded by $4 million on a linked-quarter basis due to higher income earned on loans and investment securities, including increased accretion income, partially offset by higher deposit costs.


•   Net interest margin was 3.56%, up 4 basis points from the prior quarter as the increase in earning asset yields outpaced the increase in the cost of interest-bearing liabilities given targeted actions taken to stabilize the cost of customer deposits.





Non-Interest
Income and
Expense

•   Non-interest income decreased by $6 million due to the quarterly fluctuation in cumulative fair value accounting and hedges. Excluding these items, non-interest income was stable.


•   Non-interest expense decreased by $8 million due to lower compensation and CDI amortization, modest decreases in other categories, and the first quarter's larger FDIC special assessment. The effect was partially offset by restructuring expense.





Credit
Quality

•   Net charge-offs were 0.32% of average loans and leases (annualized), compared to 0.47% in the prior quarter.


•   Provision expense of $32 million compares to $17 million in the prior quarter, which benefited from the recalibration of the commercial CECL model.


•   Non-performing assets to total assets was 0.30%, compared to 0.28% as of March 31, 2024.





Capital

•   Estimated total risk-based capital ratio of 12.1% and estimated common equity tier 1 risk-based capital ratio of 9.9%.


•   Declared a quarterly cash dividend of $0.36 per common share on May 13, 2024, which was paid June 10, 2024.





Notable
Items

•   Substantially completed our announced near-term initiatives related to operational effectiveness.


•   Opened our first retail location in Phoenix, Arizona and our first Financial Hub in Southern California, replacing an existing branch.


 

2Q24 KEY FINANCIAL DATA







PERFORMANCE METRICS

2Q24


1Q24


2Q23

Return on average assets

0.93 %


0.96 %


1.00 %

Return on average common equity

9.85 %


10.01 %


10.84 %

Return on average tangible common equity 1

14.55 %


14.82 %


16.63 %

Operating return on average assets 1

1.08 %


1.04 %


1.27 %

Operating return on average common equity 1

11.47 %


10.89 %


13.77 %

Operating return on average tangible common equity 1

16.96 %


16.12 %


21.13 %

Net interest margin

3.56 %


3.52 %


3.93 %

Efficiency ratio

59.02 %


60.57 %


62.60 %

Operating efficiency ratio, as adjusted 1

53.56 %


56.97 %


54.04 %







INCOME STATEMENT

($ in 000s, excl. per share data)

2Q24


1Q24


2Q23

Net interest income

$427,449


$423,362


$483,975

Provision for credit losses

$31,820


$17,136


$16,014

Non-interest income

$44,703


$50,357


$39,678

Non-interest expense

$279,244


$287,516


$328,559

Pre-provision net revenue 1

$192,908


$186,203


$195,094

Operating pre-provision net revenue 1

$219,390


$200,683


$243,114

Earnings per common share - diluted

$0.57


$0.59


$0.64

Operating earnings per common share - diluted 1

$0.67


$0.65


$0.81

Dividends paid per share

$0.36


$0.36


$0.36







BALANCE SHEET

2Q24


1Q24


2Q23

Total assets

       $52.0B


       $52.2B


       $53.6B

Loans and leases

       $37.7B


       $37.6B


       $37.0B

Deposits

       $41.5B


       $41.7B


       $40.8B

Book value per common share

$23.76


$23.68


$23.16

Tangible book value per share 1

$16.26


$16.03


$15.02

Organizational Update
Columbia Banking System, Inc. ("Columbia," the "Company," "we," or "our") completed an enterprise-wide evaluation of our operations during the first quarter of 2024. The full-scale review resulted in consolidated positions, simplified reporting and organizational structures, and an improved profitability outlook. Through June 30, 2024, 91% of the identified cost savings have been realized, and we expect to carry out the remaining actions during the third quarter of 2024. Please refer to the Q2 2024 Earnings Presentation for additional details.

Columbia's primary subsidiary, Umpqua Bank ("Umpqua"), opened its first retail location in Phoenix, Arizona and its first Financial Hub in Southern California, replacing an existing branch. Umpqua has closed four branches on a net basis during 2024 as strategic consolidations offset new locations in targeted growth markets.

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 six months ended June 30, 2023 reflect UHC financial results only until the closing of the merger after the close of business on February 28, 2023. As a result of these two factors, Columbia's financial results for the six months ended June 30, 2024 may not be directly comparable to prior reported periods. 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 $427 million for the second quarter of 2024, up $4 million from the prior quarter. The increase reflects higher income earned on loans and investment securities, including accretion income, and lower borrowing costs. The favorable change was only partially offset by higher deposit costs as targeted pricing actions limited the increase in Columbia's cost of interest-bearing deposits.

Columbia's net interest margin was 3.56% for the second quarter of 2024, up 4 basis points from 3.52% for the first quarter of 2024. The expansion was driven by higher yields on loans and investment securities, including the benefit of accretion income, which offset a modest increase in the cost of interest-bearing deposits following a comprehensive review undertaken during the first quarter of 2024 related to how Columbia evaluates and approves deposit pricing. The cost of interest-bearing deposits increased 9 basis points on a linked-quarter basis, and was 2.97% for both the three months ended June 30, 2024 and as of June 30, 2024, which compares to 3.00% for the month of June. "Actions taken during the first quarter resulted in enhanced pricing visibility, which contributed to stability in interest-bearing core deposit rates during the second quarter," commented Chris Merrywell, President of Umpqua Bank. "Our teams have done an exceptional job leading with service, not price, as they meet with current and prospective customers."

Columbia's cost of interest-bearing liabilities increased 6 basis points on a linked-quarter basis, and was 3.31% for both the three months ended June 30, 2024 and as of June 30, 2024, which compares to 3.34% for the month of June. Please refer to the Q2 2024 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 $45 million for the second quarter of 2024, down $6 million from the prior quarter. The decline was driven by quarterly fluctuations in fair value adjustments and mortgage servicing rights ("MSR") hedging activity, which collectively resulted in a net fair value loss of $10 million in the second quarter compared to a net fair value loss of $4 million in the first quarter, as detailed in our non-GAAP disclosures. Excluding these items, non-interest income was stable between periods, with favorable trends in card activity, financial services and trust revenue, and mortgage banking.

Non-interest Expense
Non-interest expense was $279 million for the second quarter of 2024, down $8 million from the prior quarter level. Excluding merger and restructuring expense, exit and disposal costs, and accruals for the FDIC special assessment, non-interest expense was $263 million2, down $14 million from the prior quarter due to ongoing strategic actions taken to reduce our non-interest expense run rate, lower CDI amortization following the one-year anniversary of the merger, and a $7.7 million reversal of prior compensation-related accruals. Please refer to the Q2 2024 Earnings Presentation for additional expense details.

Balance Sheet
Total consolidated assets were $52.0 billion as of June 30, 2024, down slightly from $52.2 billion as of March 31, 2024. Cash and cash equivalents were $2.1 billion as of June 30, 2024, also down slightly from $2.2 billion as of March 31, 2024. Including secured off-balance sheet lines of credit, total available liquidity was $19.1 billion as of June 30, 2024, representing 37% of total assets, 46% of total deposits, and 140% of uninsured deposits. Available-for-sale securities, which are held on balance sheet at fair value, were $8.5 billion as of June 30, 2024, a decrease of $114 million relative to March 31, 2024, due to paydowns and a decline in the fair value of the portfolio. Please refer to the Q2 2024 Earnings Presentation for additional details related to our securities portfolio and liquidity position.

Gross loans and leases were $37.7 billion as of June 30, 2024, an increase of $68 million relative to March 31, 2024. Columbia sold loans with a book balance of $95 million during the second quarter of 2024, including $80 million in residential mortgage loans held on the balance sheet at fair value. Excluding these actions, the loan portfolio increased by 2% on an annualized basis during the quarter due primarily to commercial line utilization and construction project activity. Please refer to the Q2 2024 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 $41.5 billion as of June 30, 2024, a decrease of $183 million relative to March 31, 2024. Customer deposits drove the quarter's decrease due in part to anticipated customer tax payments, partially offset by targeted campaigns run by our branch network. "Our teams wrapped up a successful small business account campaign in April, generating nearly 6,000 accounts and $345 million in new deposits to the bank, 27% of which were non-interest-bearing balances," stated Mr. Merrywell. "We use a collaborative approach to find needs-based solutions for our customers—and these campaigns do not include promotional pricing." Please refer to the Q2 2024 Earnings Presentation for additional details related to deposit characteristics and flows.

Credit Quality
The allowance for credit losses was $439 million, or 1.16% of loans and leases, essentially unchanged from March 31, 2024. The provision for credit losses was $32 million for the second quarter of 2024, and it reflects credit migration trends and changes in the economic forecasts used in credit models.

Net charge-offs were 0.32% of average loans and leases (annualized) for the second quarter of 2024, compared to 0.47% for the first quarter of 2024. Net charge-offs in the FinPac portfolio were $25 million in the second quarter, largely unchanged from the first quarter. Net charge-offs excluding the FinPac portfolio were only $6 million in the second quarter. As of June 30, 2024, non-accrual loans were $93 million compared to $99 million as of March 31, 2024, due to lower balances in commercial portfolios. Non-performing assets were $156 million, or 0.30% of total assets, as of June 30, 2024, compared to $144 million, or 0.28%  of total assets, as of March 31, 2024. The quarter's increase in loans and leases past due 90+ days and accruing, which accounted for the increase in nonperforming assets, was driven in part by the expiration of COVID-related designations within the residential mortgage portfolio. After accounting for government guarantees, non-performing assets declined by $9 million during the second quarter due primarily to lower balances in the FinPac portfolio. Please refer to the Q2 2024 Earnings Presentation for additional details related to the allowance for credit losses and other credit trends.

Capital
Columbia's book value per common share was $23.76 as of June 30, 2024, compared to $23.68 as of March 31, 2024. The linked-quarter change reflects organic net capital generation, partially offset by a change in accumulated other comprehensive (loss) income ("AOCI") to $(456) million at June 30, 2024, compared to $(426) million at the prior quarter-end. The change in AOCI is due primarily to an increase in the tax-effected net unrealized loss on available-for-sale securities to $442 million as of June 30, 2024, compared to $413 million as of March 31, 2024. Tangible book value per common share3 was $16.26 as of June 30, 2024, compared to $16.03 as of March 31, 2024.

Columbia's estimated total risk-based capital ratio was 12.1% and its estimated common equity tier 1 risk-based capital ratio was 9.9% as of June 30, 2024, compared to 12.0% and 9.8%, respectively, as of March 31, 2024. Columbia remains above current "well-capitalized" regulatory minimums. The regulatory capital ratios as of June 30, 2024 are estimates, pending completion and filing of Columbia's regulatory reports.  

Earnings Presentation and Conference Call Information
Columbia's Q2 2024 Earnings Presentation provides additional disclosure. A copy will be available on our investor relations page: www.columbiabankingsystem.com.

Columbia will host its second quarter 2024 earnings conference call on July 25, 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 second quarter 2024 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/BIdb1fd24ce3994192abaccb701c2ce451
Join the audiocast: https://edge.media-server.com/mmc/p/tog4rq49/
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. Umpqua Bank is the largest bank headquartered in the Northwest and one of the largest banks headquartered in the West with locations in Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah, and Washington. With over $50 billion of assets, Umpqua Bank combines the resources, sophistication and expertise of a national bank with a commitment to deliver superior, personalized service. The bank 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 Advisors and Columbia Trust Company, a division of Umpqua Bank. 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. 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 and uncertainties 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 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 additional information.
2 "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for additional information.
3 "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for additional information.

TABLE INDEX


Page

Consolidated Statements of Income

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 Income

(Unaudited)


Quarter Ended


% Change

($ in thousands, except per share data)

Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 30, 2023


Jun 30, 2023


Seq.

Quarter


Year
over
Year

Interest income:














Loans and leases

$      583,874


$      575,044


$      577,741


$      569,670


$      552,679


2 %


6 %

Interest and dividends on investments:














Taxable

78,828


75,017


78,010


80,066


79,036


5 %


— %

Exempt from federal income tax

6,904


6,904


6,966


6,929


6,817


— %


1 %

Dividends

2,895


3,707


4,862


4,941


2,581


(22) %


12 %

Temporary investments and interest bearing deposits

23,035


23,553


24,055


34,407


34,616


(2) %


(33) %

Total interest income

695,536


684,225


691,634


696,013


675,729


2 %


3 %

Interest expense:














Deposits

207,307


198,435


170,659


126,974


100,408


4 %


106 %

Securities sold under agreement to repurchase and
federal funds purchased

1,515


1,266


1,226


1,220


1,071


20 %


41 %

Borrowings

49,418


51,275


56,066


77,080


81,004


(4) %


(39) %

Junior and other subordinated debentures

9,847


9,887


10,060


9,864


9,271


— %


6 %

Total interest expense

268,087


260,863


238,011


215,138


191,754


3 %


40 %

Net interest income

427,449


423,362


453,623


480,875


483,975


1 %


(12) %

Provision for credit losses

31,820


17,136


54,909


36,737


16,014


86 %


99 %

Non-interest income:














Service charges on deposits

18,503


16,064


17,349


17,410


16,454


15 %


12 %

Card-based fees

14,681


13,183


14,593


15,674


13,435


11 %


9 %

Financial services and trust revenue

5,396


4,464


3,011


4,651


4,512


21 %


20 %

Residential mortgage banking revenue (loss), net

5,848


4,634


4,212


7,103


(2,342)


26 %


nm

(Loss) gain on sale of debt securities, net

(1)


12


9


4


—


(108) %


nm

Gain (loss) on equity securities, net

325


(1,565)


2,636


(2,055)


(697)


nm


nm

(Loss) gain on loan and lease sales, net

(1,516)


221


1,161


1,871


442


nm


(443) %

BOLI income

4,705


4,639


4,331


4,440


4,063


1 %


16 %

Other (loss) income

(3,238)


8,705


18,231


(5,117)


3,811


(137) %


(185) %

Total non-interest income

44,703


50,357


65,533


43,981


39,678


(11) %


13 %

Non-interest expense:














Salaries and employee benefits

145,066


154,538


157,572


159,041


163,398


(6) %


(11) %

Occupancy and equipment, net

45,147


45,291


48,160


43,070


50,550


— %


(11) %

Intangible amortization

29,230


32,091


33,204


29,879


35,553


(9) %


(18) %

FDIC assessments

9,664


14,460


42,510


11,200


11,579


(33) %


(17) %

Merger and restructuring expense

14,641


4,478


7,174


18,938


29,649


227 %


(51) %

Other expenses

35,496


36,658


48,556


42,019


37,830


(3) %


(6) %

Total non-interest expense

279,244


287,516


337,176


304,147


328,559


(3) %


(15) %

Income before provision for income taxes

161,088


169,067


127,071


183,972


179,080


(5) %


(10) %

Provision for income taxes

40,944


44,987


33,540


48,127


45,703


(9) %


(10) %

Net income

$      120,144


$      124,080


$        93,531


$      135,845


$      133,377


(3) %


(10) %















Weighted average basic shares outstanding

208,498


208,260


208,083


208,070


207,977


— %


— %

Weighted average diluted shares outstanding

209,011


208,956


208,739


208,645


208,545


— %


— %

Earnings per common share – basic

$           0.58


$           0.60


$           0.45


$           0.65


$           0.64


(3) %


(9) %

Earnings per common share – diluted

$           0.57


$           0.59


$           0.45


$           0.65


$           0.64


(3) %


(11) %















nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

 

Columbia Banking System, Inc.

Consolidated Statements of Income

(Unaudited)



Six Months Ended


% Change

($ in thousands, except per share data)


Jun 30, 2024


Jun 30, 2023


Year over
Year

Interest income:







Loans and leases


$          1,158,918


$             966,204


20 %

Interest and dividends on investments:







Taxable


153,845


118,765


30 %

Exempt from federal income tax


13,808


10,214


35 %

Dividends


6,602


3,300


100 %

Temporary investments and interest bearing deposits


46,588


53,197


(12) %

Total interest income


1,379,761


1,151,680


20 %

Interest expense:







Deposits


405,742


164,021


147 %

Securities sold under agreement to repurchase and federal funds purchased


2,781


1,477


88 %

Borrowings


100,693


109,768


(8) %

Junior and other subordinated debentures


19,734


17,741


11 %

Total interest expense


528,950


293,007


81 %

Net interest income


850,811


858,673


(1) %

Provision for credit losses


48,956


121,553


(60) %

Non-interest income:







Service charges on deposits


34,567


30,766


12 %

Card-based fees


27,864


24,996


11 %

Financial services and trust revenue


9,860


5,809


70 %

Residential mortgage banking revenue, net


10,482


5,474


91 %

Gain on sale of debt securities, net


11


—


nm

(Loss) gain on equity securities, net


(1,240)


1,719


(172) %

(Loss) gain on loan and lease sales, net


(1,295)


1,382


(194) %

BOLI income


9,344


6,853


36 %

Other income


5,467


17,414


(69) %

Total non-interest income


95,060


94,413


1 %

Non-interest expense:







Salaries and employee benefits


299,604


299,490


— %

Occupancy and equipment, net


90,438


92,250


(2) %

Intangible amortization


61,321


48,213


27 %

FDIC assessments


24,124


17,692


36 %

Merger and restructuring expense


19,119


145,547


(87) %

Other expenses


72,154


68,185


6 %

Total non-interest expense


566,760


671,377


(16) %

Income before provision for income taxes


330,155


160,156


106 %

Provision for income taxes


85,931


40,817


111 %

Net income


$             244,224


$             119,339


105 %








Weighted average basic shares outstanding


208,379


182,325


14 %

Weighted average diluted shares outstanding


208,999


182,860


14 %

Earnings per common share – basic


$                  1.17


$                  0.65


80 %

Earnings per common share – diluted


$                  1.17


$                  0.65


80 %








nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

 

Columbia Banking System, Inc.

Consolidated Balance Sheets

(Unaudited)












% Change

($ in thousands, except per share data)

Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 30, 2023


Jun 30, 2023


Seq.

Quarter


Year
over
Year

Assets:














Cash and due from banks

$         515,263


$         440,215


$         498,496


$         492,474


$         538,653


17 %


(4) %

Interest-bearing cash and temporary
investments

1,553,568


1,760,902


1,664,038


1,911,221


2,868,563


(12) %


(46) %

Investment securities:














Equity and other, at fair value

77,221


77,203


76,995


73,638


76,361


— %


1 %

Available for sale, at fair value

8,503,000


8,616,545


8,829,870


8,503,986


8,998,428


(1) %


(6) %

Held to maturity, at amortized cost

2,203


2,247


2,300


2,344


2,388


(2) %


(8) %

Loans held for sale

56,310


47,201


30,715


60,313


183,633


19 %


(69) %

Loans and leases

37,709,987


37,642,413


37,441,951


37,170,598


37,049,299


— %


2 %

Allowance for credit losses on loans and leases

(418,671)


(414,344)


(440,871)


(416,560)


(404,603)


1 %


3 %

Net loans and leases

37,291,316


37,228,069


37,001,080


36,754,038


36,644,696


— %


2 %

Restricted equity securities

116,274


116,274


179,274


168,524


258,524


— %


(55) %

Premises and equipment, net

337,842


336,869


338,970


337,855


368,698


— %


(8) %

Operating lease right-of-use assets

108,278


113,833


115,811


114,220


119,255


(5) %


(9) %

Goodwill

1,029,234


1,029,234


1,029,234


1,029,234


1,029,234


— %


— %

Other intangible assets, net

542,358


571,588


603,679


636,883


666,762


(5) %


(19) %

Residential mortgage servicing rights, at fair
value

110,039


110,444


109,243


117,640


172,929


— %


(36) %

Bank-owned life insurance

686,485


682,293


680,948


648,232


643,727


1 %


7 %

Deferred tax asset, net

361,773


356,031


347,203


469,841


362,880


2 %


— %

Other assets

756,319


735,058


665,740


673,372


657,365


3 %


15 %

Total assets

$     52,047,483


$     52,224,006


$     52,173,596


$     51,993,815


$     53,592,096


— %


(3) %

Liabilities:














 Deposits














Non-interest-bearing

$     13,481,616


$     13,808,554


$     14,256,452


$     15,532,948


$     16,019,408


(2) %


(16) %

Interest-bearing

28,041,656


27,897,606


27,350,568


26,091,420


24,815,509


1 %


13 %

  Total deposits

41,523,272


41,706,160


41,607,020


41,624,368


40,834,917


— %


2 %

Securities sold under agreements to repurchase

197,860


213,573


252,119


258,383


294,914


(7) %


(33) %

Borrowings

3,900,000


3,900,000


3,950,000


3,985,000


6,250,000


— %


(38) %

Junior subordinated debentures, at fair value

310,187


309,544


316,440


331,545


312,872


— %


(1) %

Junior and other subordinated debentures, at
amortized cost

107,781


107,838


107,895


107,952


108,009


— %


— %

Operating lease liabilities

123,082


129,240


130,576


129,845


132,099


(5) %


(7) %

Other liabilities

908,629


900,406


814,512


924,560


831,097


1 %


9 %

Total liabilities

47,070,811


47,266,761


47,178,562


47,361,653


48,763,908


— %


(3) %

Shareholders' equity:














Common stock

5,807,041


5,802,322


5,802,747


5,798,167


5,792,792


— %


— %

Accumulated deficit

(374,687)


(418,946)


(467,571)


(485,576)


(545,842)


(11) %


(31) %

Accumulated other comprehensive loss

(455,682)


(426,131)


(340,142)


(680,429)


(418,762)


7 %


9 %

Total shareholders' equity

4,976,672


4,957,245


4,995,034


4,632,162


4,828,188


— %


3 %

Total liabilities and shareholders' equity

$     52,047,483


$     52,224,006


$     52,173,596


$     51,993,815


$     53,592,096


— %


(3) %















Common shares outstanding at period end

209,459


209,370


208,585


208,575


208,514


— %


— %

 

Columbia Banking System, Inc.

Financial Highlights

(Unaudited)



Quarter Ended


% Change



Jun 30,
2024


Mar 31,
2024


Dec 31,
2023


Sep 30,
2023


Jun 30,
2023


Seq.
Quarter


Year over
Year

Per Common Share Data: 















Dividends


$         0.36


$         0.36


$         0.36


$         0.36


$         0.36


— %


— %

Book value


$       23.76


$       23.68


$       23.95


$       22.21


$       23.16


— %


3 %

Tangible book value (1)


$       16.26


$       16.03


$       16.12


$       14.22


$       15.02


1 %


8 %
















Performance Ratios:















Efficiency ratio (2)


59.02 %


60.57 %


64.81 %


57.82 %


62.60 %


(1.55)


(3.58)

Non-interest expense to average assets (1)


2.16 %


2.22 %


2.58 %


2.28 %


2.46 %


(0.06)


(0.30)

Return on average assets ("ROAA")


0.93 %


0.96 %


0.72 %


1.02 %


1.00 %


(0.03)


(0.07)

Pre-provision net revenue ("PPNR") ROAA (1)


1.49 %


1.44 %


1.39 %


1.65 %


1.46 %


0.05


0.03

Return on average common equity


9.85 %


10.01 %


7.90 %


11.07 %


10.84 %


(0.16)


(0.99)

Return on average tangible common equity (1)


14.55 %


14.82 %


12.19 %


16.93 %


16.63 %


(0.27)


(2.08)
















Performance Ratios - Operating: (1)















Operating efficiency ratio, as adjusted (1),(2), (5), (6)


53.56 %


56.97 %


57.31 %


51.26 %


54.04 %


(3.41)


(0.48)

Operating non-interest expense to average assets (1)


2.03 %


2.14 %


2.25 %


2.10 %


2.22 %


(0.11)


(0.19)

Operating ROAA (1), (6)


1.08 %


1.04 %


0.89 %


1.23 %


1.27 %


0.04


(0.19)

Operating PPNR ROAA (1), (6)


1.70 %


1.55 %


1.62 %


1.94 %


1.82 %


0.15


(0.12)

Operating return on average common equity (1), (6)


11.47 %


10.89 %


9.81 %


13.40 %


13.77 %


0.58


(2.30)

Operating return on average tangible common equity (1), (6)


16.96 %


16.12 %


15.14 %


20.48 %


21.13 %


0.84


(4.17)
















Average Balance Sheet Yields, Rates, & Ratios:















Yield on loans and leases


6.20 %


6.13 %


6.13 %


6.08 %


5.95 %


0.07


0.25

Yield on earning assets (2)


5.80 %


5.69 %


5.75 %


5.65 %


5.48 %


0.11


0.32

Cost of interest bearing deposits


2.97 %


2.88 %


2.54 %


2.01 %


1.64 %


0.09


1.33

Cost of interest bearing liabilities


3.31 %


3.25 %


3.02 %


2.72 %


2.45 %


0.06


0.86

Cost of total deposits


2.01 %


1.92 %


1.63 %


1.23 %


0.99 %


0.09


1.02

Cost of total funding (3)


2.34 %


2.27 %


2.05 %


1.81 %


1.61 %


0.07


0.73

Net interest margin (2)


3.56 %


3.52 %


3.78 %


3.91 %


3.93 %


0.04


(0.37)

Average interest bearing cash / Average interest earning assets


3.51 %


3.56 %


3.64 %


5.17 %


5.47 %


(0.05)


(1.96)

Average loans and leases / Average interest earning assets


78.27 %


77.87 %


78.04 %


75.64 %


75.18 %


0.40


3.09

Average loans and leases / Average total deposits


90.61 %


90.41 %


89.91 %


90.63 %


90.98 %


0.20


(0.37)

Average non-interest bearing deposits / Average total deposits


32.54 %


33.29 %


35.88 %


38.55 %


40.05 %


(0.75)


(7.51)

Average total deposits / Average total funding (3)


90.15 %


90.09 %


90.02 %


86.66 %


85.59 %


0.06


4.56
















Select Credit & Capital Ratios:















Non-performing loans and leases to total loans and leases


0.41 %


0.38 %


0.30 %


0.28 %


0.22 %


0.03


0.19

Non-performing assets to total assets


0.30 %


0.28 %


0.22 %


0.20 %


0.15 %


0.02


0.15

Allowance for credit losses to loans and leases


1.16 %


1.16 %


1.24 %


1.18 %


1.15 %


—


0.01

Total risk-based capital ratio (4)


12.1 %


12.0 %


11.9 %


11.6 %


11.3 %


0.10


0.80

Common equity tier 1 risk-based capital ratio (4)


9.9 %


9.8 %


9.6 %


9.5 %


9.2 %


0.10


0.70



(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)

The operating efficiency ratio was adjusted in the first quarter of 2024 to remove B&O taxes and for a tax-equivalent adjustment to BOLI income. The Company views the adjusted operating efficiency ratio as a better representation of its efficiency ratio when compared to other banks as it normalizes for the tax treatment of the adjusted items. The adjustment re-aligns Columbia's calculation of its operating efficiency ratio with its pre-merger calculation.

(6)

Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes adding the FDIC special assessment to the non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company.

 

Columbia Banking System, Inc.

Financial Highlights

(Unaudited)



Six Months Ended


% Change



Jun 30, 2024


Jun 30, 2023


Year over Year

Per Common Share Data:







Dividends


$                      0.72


$                      0.71


1.41 %








Performance Ratios:







Efficiency ratio (2)


59.80 %


70.30 %


(10.50)

Non-interest expense to average assets (1)


2.19 %


2.91 %


(0.72)

Return on average assets


0.94 %


0.52 %


0.42

PPNR ROAA (1)


1.47 %


1.22 %


0.25

Return on average common equity


9.93 %


5.80 %


4.13

Return on average tangible common equity (1)


14.69 %


8.09 %


6.60








Performance Ratios - Operating: (1)







Operating efficiency ratio, as adjusted (1),(2), (4), (5)


55.26 %


53.51 %


1.75

Operating non-interest expense to average assets (1)


2.08 %


2.26 %


(0.18)

Operating ROAA (1), (5)


1.06 %


1.04 %


0.02

Operating PPNR ROAA (1), (5)


1.62 %


1.90 %


(0.28)

Operating return on average common equity (1), (5)


11.18 %


11.72 %


(0.54)

Operating return on average tangible common equity (1), (5)


16.54 %


16.34 %


0.20








Average Balance Sheet Yields, Rates, & Ratios:







Yield on loans and leases


6.17 %


5.77 %


0.40

Yield on earning assets (2)


5.75 %


5.35 %


0.40

Cost of interest bearing deposits


2.93 %


1.50 %


1.43

Cost of interest bearing liabilities


3.28 %


2.19 %


1.09

Cost of total deposits


1.96 %


0.90 %


1.06

Cost of total funding (3)


2.31 %


1.42 %


0.89

Net interest margin (2)


3.54 %


3.99 %


(0.45)

Average interest bearing cash / Average interest earning assets


3.54 %


4.99 %


(1.45)

Average loans and leases / Average interest earning assets


78.07 %


77.64 %


0.43

Average loans and leases / Average total deposits


90.51 %


91.87 %


(1.36)

Average non-interest bearing deposits / Average total deposits


32.91 %


39.69 %


(6.78)

Average total deposits / Average total funding (3)


90.12 %


88.03 %


2.09










(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)

The operating efficiency ratio was adjusted in the first quarter of 2024 to remove B&O taxes and for a tax-equivalent adjustment to BOLI income. The Company views the adjusted operating efficiency ratio as a better representation of its efficiency ratio when compared to other banks as it normalizes for the tax treatment of the adjusted items. The adjustment re-aligns Columbia's calculation of its operating efficiency ratio with its pre-merger calculation.

(5)

Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes adding the FDIC special assessment to the non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company.

 

Columbia Banking System, Inc.

Loan & Lease Portfolio Balances and Mix

(Unaudited)


Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 30, 2023


Jun 30, 2023


% Change

($ in thousands)

Amount


Amount


Amount


Amount


Amount


Seq.
Quarter


Year
over
Year

Loans and leases:














Commercial real estate:














Non-owner occupied term, net

$    6,407,351


$    6,557,768


$    6,482,940


$    6,490,638


$    6,434,673


(2) %


— %

Owner occupied term, net

5,230,511


5,231,676


5,195,605


5,235,227


5,254,401


— %


— %

Multifamily, net

5,868,848


5,828,960


5,704,734


5,684,495


5,622,875


1 %


4 %

Construction & development, net

1,946,693


1,728,652


1,747,302


1,669,918


1,528,924


13 %


27 %

Residential development, net

269,106


284,117


323,899


354,922


388,641


(5) %


(31) %

Commercial:














Term, net

5,559,548


5,544,450


5,536,765


5,437,915


5,449,787


— %


2 %

Lines of credit & other, net

2,558,633


2,491,557


2,430,127


2,353,548


2,268,790


3 %


13 %

Leases & equipment finance, net

1,701,943


1,706,759


1,729,512


1,728,991


1,740,037


— %


(2) %

Residential:














Mortgage, net

5,992,163


6,128,884


6,157,166


6,121,838


6,272,898


(2) %


(4) %

Home equity loans & lines, net

1,982,786


1,950,421


1,938,166


1,899,948


1,898,958


2 %


4 %

   Consumer & other, net

192,405


189,169


195,735


193,158


189,315


2 %


2 %

Total loans and leases, net of deferred fees and
costs

$  37,709,987


$  37,642,413


$  37,441,951


$  37,170,598


$  37,049,299


— %


2 %















Loans and leases mix:














Commercial real estate:














   Non-owner occupied term, net

17 %


17 %


17 %


17 %


17 %





   Owner occupied term, net

14 %


14 %


14 %


14 %


14 %





   Multifamily, net

15 %


15 %


15 %


15 %


15 %





Construction & development, net

5 %


5 %


5 %


4 %


4 %





Residential development, net

1 %


1 %


1 %


1 %


1 %





Commercial:














Term, net

15 %


15 %


15 %


15 %


15 %





Lines of credit & other, net

6 %


6 %


6 %


6 %


6 %





Leases & equipment finance, net

5 %


5 %


5 %


5 %


5 %





Residential:














Mortgage, net

16 %


16 %


16 %


17 %


17 %





Home equity loans & lines, net

5 %


5 %


5 %


5 %


5 %





   Consumer & other, net

1 %


1 %


1 %


1 %


1 %





Total

100 %


100 %


100 %


100 %


100 %





 

Columbia Banking System, Inc.

Deposit Portfolio Balances and Mix

(Unaudited)


Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 30, 2023


Jun 30, 2023


% Change

($ in thousands)

Amount


Amount


Amount


Amount


Amount


Seq.
Quarter


Year over
Year

Deposits:














Demand, non-interest bearing

$  13,481,616


$  13,808,554


$  14,256,452


$  15,532,948


$  16,019,408


(2) %


(16) %

Demand, interest bearing

8,195,284


8,095,211


8,044,432


6,898,831


6,300,082


1 %


30 %

Money market

10,927,813


10,822,498


10,324,454


10,349,217


10,115,908


1 %


8 %

Savings

2,508,598


2,640,060


2,754,113


3,018,706


3,171,714


(5) %


(21) %

Time

6,409,961


6,339,837


6,227,569


5,824,666


5,227,805


1 %


23 %

Total

$  41,523,272


$  41,706,160


$  41,607,020


$  41,624,368


$  40,834,917


— %


2 %















Total core deposits (1)

$  37,159,069


$  37,436,569


$  37,423,402


$  37,597,830


$  37,639,368


(1) %


(1) %















Deposit mix:














Demand, non-interest bearing

33 %


34 %


34 %


37 %


39 %





Demand, interest bearing

20 %


19 %


19 %


17 %


15 %





Money market

26 %


26 %


25 %


25 %


25 %





Savings

6 %


6 %


7 %


7 %


8 %





Time

15 %


15 %


15 %


14 %


13 %





Total

100 %


100 %


100 %


100 %


100 %







(1)

Core deposits are defined as total deposits less time deposits greater than $250,000 and all brokered deposits.

 

Columbia Banking System, Inc.

Credit Quality – Non-performing Assets

 (Unaudited)


Quarter Ended


% Change

($ in thousands)

Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 30, 2023


Jun 30, 2023


Seq.
Quarter


Year over
Year

Non-performing assets: (1)














Loans and leases on non-accrual status:















Commercial real estate, net

$     37,584


$     39,736


$     28,689


$     26,053


$     10,994


(5) %


242 %


Commercial, net

54,986


58,960


45,682


44,341


39,316


(7) %


40 %


Total loans and leases on non-accrual status

92,570


98,696


74,371


70,394


50,310


(6) %


84 %

Loans and leases past due 90+ days and accruing: (2)















Commercial real estate, net

—


253


870


71


184


(100) %


(100) %


Commercial, net

5,778


10,733


8,232


8,606


7,720


(46) %


(25) %


Residential, net (2)

54,525


31,916


29,102


25,180


21,370


71 %


155 %


Consumer & other, net

220


437


326


240


399


(50) %


(45) %


Total loans and leases past due 90+ days and
accruing (2)

60,523


43,339


38,530


34,097


29,673


40 %


104 %

Total non-performing loans and leases (1), (2)

153,093


142,035


112,901


104,491


79,983


8 %


91 %

Other real estate owned

2,839


1,762


1,036


1,170


278


61 %


nm

Total non-performing assets (1), (2)

$    155,932


$    143,797


$    113,937


$    105,661


$     80,261


8 %


94 %
















Loans and leases past due 31-89 days

$     85,998


$    109,673


$     85,235


$     82,918


$     73,376


(22) %


17 %

Loans and leases past due 31-89 days to total loans and
leases

0.23 %


0.29 %


0.23 %


0.22 %


0.20 %


(0.06)


0.03

Non-performing loans and leases to total loans and
leases (1), (2)

0.41 %


0.38 %


0.30 %


0.28 %


0.22 %


0.03


0.19

Non-performing assets to total assets (1), (2)

0.30 %


0.28 %


0.22 %


0.20 %


0.15 %


0.02


0.15
















nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."




(1)

Non-accrual and 90+ days past due loans include government guarantees of $64.6 million, $43.0 million, $31.6 million, $26.9 million, and $26.6 million at June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023, respectively.

(2)

Excludes certain mortgage loans guaranteed by GNMA, which Columbia has the unilateral right to repurchase but has not done so, totaling $1.0 million, $1.6 million, $1.0 million, $700,000, and $1.6 million at June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023, respectively.

 

Columbia Banking System, Inc.

Credit Quality – Allowance for Credit Losses

(Unaudited)



Quarter Ended


% Change

($ in thousands)

Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 30, 2023


Jun 30, 2023


Seq.
Quarter


Year over
Year

Allowance for credit losses on loans and leases (ACLLL)














Balance, beginning of period

$    414,344


$    440,871


$    416,560


$    404,603


$    417,464


(6) %


(1) %

Provision for credit losses on loans and leases

34,760


17,476


53,183


35,082


15,216


99 %


128 %

Charge-offs















Commercial real estate, net

(585)


(161)


(629)


—


(174)


263 %


236 %


Commercial, net

(33,561)


(47,232)


(31,949)


(26,629)


(32,036)


(29) %


5 %


Residential, net

(504)


(490)


(89)


(206)


(4)


3 %


nm


Consumer & other, net

(1,551)


(1,870)


(1,841)


(1,884)


(1,264)


(17) %


23 %


Total charge-offs

(36,201)


(49,753)


(34,508)


(28,719)


(33,478)


(27) %


8 %

Recoveries















Commercial real estate, net

551


358


35


31


209


54 %


164 %


Commercial, net

4,198


4,732


4,414


4,901


4,511


(11) %


(7) %


Residential, net

411


170


781


156


63


142 %


nm


Consumer & other, net

608


490


406


506


618


24 %


(2) %


Total recoveries

5,768


5,750


5,636


5,594


5,401


0 %


7 %

Net (charge-offs) recoveries















Commercial real estate, net

(34)


197


(594)


31


35


(117) %


(197) %


Commercial, net

(29,363)


(42,500)


(27,535)


(21,728)


(27,525)


(31) %


7 %


Residential, net

(93)


(320)


692


(50)


59


(71) %


(258) %


Consumer & other, net

(943)


(1,380)


(1,435)


(1,378)


(646)


(32) %


46 %


Total net charge-offs

(30,433)


(44,003)


(28,872)


(23,125)


(28,077)


(31) %


8 %

Balance, end of period

$    418,671


$    414,344


$    440,871


$    416,560


$    404,603


1 %


3 %

Reserve for unfunded commitments














Balance, beginning of period

$     22,868


$     23,208


$     21,482


$     19,827


$     19,029


(1) %


20 %

(Recapture) provision  for credit losses on unfunded
commitments

(2,940)


(340)


1,726


1,655


798


nm


(468) %

Balance, end of period

19,928


22,868


23,208


21,482


19,827


(13) %


1 %

Total Allowance for credit losses (ACL)

$    438,599


$    437,212


$    464,079


$    438,042


$    424,430


0 %


3 %















Net charge-offs to average loans and leases (annualized)

0.32 %


0.47 %


0.31 %


0.25 %


0.30 %


(0.15)


0.02

Recoveries to gross charge-offs

15.93 %


11.56 %


16.33 %


19.48 %


16.13 %


4.37


(0.20)

ACLLL to loans and leases

1.11 %


1.10 %


1.18 %


1.12 %


1.09 %


0.01


0.02

ACL to loans and leases

1.16 %


1.16 %


1.24 %


1.18 %


1.15 %


—


0.01
















nm = 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)



Six Months Ended


% Change

($ in thousands)


Jun 30, 2024


Jun 30, 2023


Year over Year

Allowance for credit losses on loans and leases (ACLLL)







Balance, beginning of period


$          440,871


$          301,135


46 %

Initial ACL recorded for PCD loans acquired during the period


—


26,492


(100) %

Provision for credit losses on loans and leases  (1)


52,236


121,714


(57) %

Charge-offs








Commercial real estate, net


(746)


(174)


329 %


Commercial, net


(80,793)


(51,284)


58 %


Residential, net


(994)


(252)


294 %


Consumer & other, net


(3,421)


(2,037)


68 %


Total charge-offs


(85,954)


(53,747)


60 %

Recoveries








Commercial real estate, net


909


267


240 %


Commercial, net


8,930


7,569


18 %


Residential, net


581


186


212 %


Consumer & other, net


1,098


987


11 %


Total recoveries


11,518


9,009


28 %

Net (charge-offs) recoveries








Commercial real estate, net


163


93


75 %


Commercial, net


(71,863)


(43,715)


64 %


Residential, net


(413)


(66)


nm


Consumer & other, net


(2,323)


(1,050)


121 %


Total net charge-offs


(74,436)


(44,738)


66 %

Balance, end of period


$          418,671


$          404,603


3 %

Reserve for unfunded commitments







Balance, beginning of period


$            23,208


$            14,221


63 %

Initial ACL recorded for unfunded commitments acquired during the period


—


5,767


(100) %

Recapture for credit losses on unfunded commitments


(3,280)


(161)


nm

Balance, end of period


19,928


19,827


1 %

Total Allowance for credit losses (ACL)


$          438,599


$          424,430


3 %








Net charge-offs to average loans and leases (annualized)


0.40 %


0.27 %


0.13

Recoveries to gross charge-offs


13.40 %


16.76 %


(3.36)









nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."



(1)

For the six months ended June 30, 2023, the provision for credit losses on loans and leases includes $88.4 million initial provision related to non-PCD loans acquired during the period.

 

Columbia Banking System, Inc.

Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates

(Unaudited)


Quarter Ended


June 30, 2024


March 31, 2024


June 30, 2023

($ 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

$      101,516


$     1,628


6.42 %


$        30,550


$       525


6.88 %


$        46,794


$       682


5.83 %

Loans and leases (1)

37,663,396


582,246


6.20 %


37,597,101


574,519


6.13 %


37,169,315


551,997


5.95 %

Taxable securities

7,839,202


81,723


4.17 %


8,081,003


78,724


3.90 %


8,656,147


81,617


3.77 %

Non-taxable securities (2)

825,030


7,889


3.82 %


851,342


7,886


3.71 %


865,278


8,010


3.70 %

Temporary investments and
interest-bearing cash

1,688,602


23,035


5.49 %


1,720,791


23,553


5.51 %


2,704,984


34,616


5.13 %

Total interest-earning assets (1), (2)

48,117,746


$ 696,521


5.80 %


48,280,787


$ 685,207


5.69 %


49,442,518


$ 676,922


5.48 %

Goodwill and other intangible
assets

1,588,239






1,619,134






1,718,705





Other assets

2,275,570






2,184,052






2,379,351





Total assets

$  51,981,555






$  52,083,973






$  53,540,574





INTEREST-BEARING LIABILITIES:


















Interest-bearing demand deposits

$   8,147,516


$   53,890


2.66 %


$   8,035,339


$   51,378


2.57 %


$   6,131,117


$   17,277


1.15 %

Money market deposits

10,849,259


76,466


2.83 %


10,612,073


72,497


2.75 %


10,362,495


41,703


1.60 %

Savings deposits

2,555,458


929


0.15 %


2,688,360


715


0.11 %


3,297,138


877


0.11 %

Time deposits

6,488,923


76,022


4.71 %


6,406,807


73,845


4.64 %


4,703,967


40,551


3.46 %

Total interest-bearing deposits

28,041,156


207,307


2.97 %


27,742,579


198,435


2.88 %


24,494,717


100,408


1.64 %

Repurchase agreements and federal
funds purchased

224,973


1,515


2.71 %


231,667


1,266


2.20 %


284,347


1,071


1.51 %

Borrowings

3,900,000


49,418


5.10 %


3,920,879


51,275


5.26 %


6,187,363


81,004


5.25 %

Junior and other subordinated
debentures

417,329


9,847


9.49 %


423,528


9,887


9.39 %


405,989


9,271


9.16 %

Total interest-bearing liabilities

32,583,458


$ 268,087


3.31 %


32,318,653


$ 260,863


3.25 %


31,372,416


$ 191,754


2.45 %

Non-interest-bearing deposits

13,526,483






13,841,582






16,361,541





Other liabilities

963,375






937,863






871,378





Total liabilities

47,073,316






47,098,098






48,605,335





Common equity

4,908,239






4,985,875






4,935,239





Total liabilities and shareholders'
equity

$  51,981,555






$  52,083,973






$  53,540,574





NET INTEREST INCOME (2)



$ 428,434






$ 424,344






$ 485,168



NET INTEREST SPREAD (2)





2.49 %






2.44 %






3.03 %

NET INTEREST INCOME TO EARNING
ASSETS OR NET INTEREST MARGIN (1), 
(2)





3.56 %






3.52 %






3.93 %



(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 $985,000 for the three months ended June 30, 2024, as compared to $982,000 for the three months ended March 31, 2024 and $1.2 million for the three months ended June 30, 2023. 

 

Columbia Banking System, Inc.

Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates

(Unaudited)


Six Months Ended


June 30, 2024


June 30, 2023

($ 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

$           66,033


$         2,153


6.52 %


$        50,381


$         1,481


5.88 %

Loans and leases (1)

37,630,248


1,156,765


6.17 %


33,603,781


964,723


5.77 %

Taxable securities

7,960,102


160,447


4.03 %


6,818,764


122,065


3.58 %

Non-taxable securities (2)

838,186


15,775


3.76 %


652,332


12,078


3.70 %

Temporary investments and interest-bearing cash

1,704,697


46,588


5.50 %


2,158,071


53,197


4.97 %

Total interest-earning assets (1), (2)

48,199,266


$   1,381,728


5.75 %


43,283,329


$   1,153,544


5.35 %

Goodwill and other intangible assets

1,603,686






1,173,900





Other assets

2,229,811






2,065,036





Total assets

$     52,032,763






$  46,522,265





INTEREST-BEARING LIABILITIES:












Interest-bearing demand deposits

$      8,091,427


$     105,268


2.62 %


$   5,448,974


$       27,092


1.00 %

Money market deposits

10,730,666


148,963


2.79 %


9,657,738


73,941


1.54 %

Savings deposits

2,621,909


1,644


0.13 %


2,993,450


1,433


0.10 %

Time deposits

6,447,865


149,867


4.67 %


3,958,688


61,555


3.14 %

Total interest-bearing deposits

27,891,867


405,742


2.93 %


22,058,850


164,021


1.50 %

Repurchase agreements and federal funds purchased

228,320


2,781


2.45 %


282,699


1,477


1.05 %

Borrowings

3,910,440


100,693


5.18 %


4,280,632


109,768


5.17 %

Junior and other subordinated debentures

420,428


19,734


9.44 %


411,944


17,741


8.68 %

Total interest-bearing liabilities

32,451,055


$     528,950


3.28 %


27,034,125


$     293,007


2.19 %

Non-interest-bearing deposits

13,684,032






14,518,864





Other liabilities

950,619






822,396





Total liabilities

47,085,706






42,375,385





Common equity

4,947,057






4,146,880





Total liabilities and shareholders' equity

$     52,032,763






$  46,522,265





NET INTEREST INCOME (2)



$     852,778






$     860,537



NET INTEREST SPREAD (2)





2.47 %






3.16 %

NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST
MARGIN (1), (2)





3.54 %






3.99 %















(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 $2.0 million for the six months ended June 30, 2024, as compared to $1.9 million for the same period in 2023. 

 

Columbia Banking System, Inc.

Residential Mortgage Banking Activity

(Unaudited)


Quarter Ended


% Change

($ in thousands)

Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 30, 2023


Jun 30, 2023


Seq.
Quarter


Year over
Year

Residential mortgage banking revenue:














Origination and sale

$       3,452


$       2,920


$       2,686


$        2,442


$        3,166


18 %


9 %

Servicing

5,952


6,021


5,966


8,887


9,167


(1) %


(35) %

Change in fair value of MSR asset:














Changes due to collection/realization of expected
cash flows over time

(3,183)


(3,153)


(3,215)


(4,801)


(4,797)


1 %


(34) %

Changes due to valuation inputs or assumptions

1,238


3,117


(6,251)


5,308


(2,242)


(60) %


nm

MSR hedge (loss) gain

(1,611)


(4,271)


5,026


(4,733)


(7,636)


(62) %


(79) %

Total

$       5,848


$       4,634


$       4,212


$        7,103


$      (2,342)


26 %


nm















Closed loan volume for-sale

$    140,875


$     86,903


$     87,033


$    103,333


$    119,476


62 %


18 %

Gain on sale margin

2.45 %


3.36 %


3.09 %


2.36 %


2.65 %


-0.91


-0.20















Residential mortgage servicing rights:














Balance, beginning of period

$    110,444


$    109,243


$    117,640


$    172,929


$    178,800


1 %


(38) %

Additions for new MSR capitalized

1,540


1,237


920


1,658


1,168


24 %


32 %

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

(3,183)


(3,153)


(3,215)


(4,801)


(4,797)


1 %


(34) %

Changes due to valuation inputs or assumptions

1,238


3,117


(6,251)


5,308


(2,242)


(60) %


nm

Balance, end of period

$    110,039


$    110,444


$    109,243


$    117,640


$    172,929


— %


(36) %















Residential mortgage loans serviced for others

$ 8,120,046


$ 8,081,039


$ 8,175,664


$  8,240,950


$  12,726,615


— %


(36) %

MSR as % of serviced portfolio

1.36 %


1.37 %


1.34 %


1.43 %


1.36 %


(0.01)


0.00















nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

 

 

Columbia Banking System, Inc.

Residential Mortgage Banking Activity

(Unaudited)


Six Months Ended


% Change

($ in thousands)

Jun 30, 2024


Jun 30, 2023


Year over Year

Residential mortgage banking revenue:






Origination and sale

$            6,372


$            6,753


(6) %

Servicing

11,973


18,564


(36) %

Change in fair value of MSR asset:






Changes due to collection/realization of expected cash flows over time

(6,336)


(9,678)


(35) %

Changes due to valuation inputs or assumptions

4,355


(5,179)


nm

MSR hedge loss

(5,882)


(4,986)


18 %

Total

$          10,482


$            5,474


91 %







Closed loan volume for-sale

$        227,778


$        251,202


(9) %

Gain on sale margin

2.80 %


2.69 %


0.11







Residential mortgage servicing rights:






Balance, beginning of period

$        109,243


$        185,017


(41) %

Additions for new MSR capitalized

2,777


2,769


0 %

Change in fair value of MSR asset:






Changes due to collection/realization of expected cash flows over time

(6,336)


(9,678)


(35) %

Changes due to valuation inputs or assumptions

4,355


(5,179)


nm

Balance, end of period

$        110,039


$        172,929


(36) %







nm = 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, and operating pre-provision net revenue and operating return on tangible common equity are also used as part of our incentive compensation program for our executive officers. We, as well as securities analysts, investors, and other interested parties, also use these measures to compare peer company operating performance. We believe that our presentation and discussion, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting our business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitution for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation

(Unaudited)




Quarter Ended


% Change

($ in thousands, except per share data)



Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 30, 2023


Jun 30, 2023


Seq.
Quarter


Year
over
Year

Total shareholders' equity

a


$     4,976,672


$     4,957,245


$     4,995,034


$     4,632,162


$     4,828,188


— %


3 %

Less: Goodwill



1,029,234


1,029,234


1,029,234


1,029,234


1,029,234


— %


— %

Less: Other intangible assets, net



542,358


571,588


603,679


636,883


666,762


(5) %


(19) %

Tangible common shareholders' equity

b


$     3,405,080


$     3,356,423


$     3,362,121


$     2,966,045


$     3,132,192


1 %


9 %

















Total assets

c


$  52,047,483


$  52,224,006


$  52,173,596


$  51,993,815


$  53,592,096


— %


(3) %

Less: Goodwill



1,029,234


1,029,234


1,029,234


1,029,234


1,029,234


— %


— %

Less: Other intangible assets, net



542,358


571,588


603,679


636,883


666,762


(5) %


(19) %

Tangible assets

d


$  50,475,891


$  50,623,184


$  50,540,683


$  50,327,698


$  51,896,100


— %


(3) %

Common shares outstanding at period end

e


209,459


209,370


208,585


208,575


208,514


— %


— %

















Total shareholders' equity to total assets ratio

a / c


9.56 %


9.49 %


9.57 %


8.91 %


9.01 %


0.07


0.55

Tangible common equity ratio

b / d


6.75 %


6.63 %


6.65 %


5.89 %


6.04 %


0.12


0.71

Book value per common share

a / e


$              23.76


$              23.68


$              23.95


$              22.21


$              23.16


— %


3 %

Tangible book value per common share

b / e


$              16.26


$              16.03


$              16.12


$              14.22


$              15.02


1 %


8 %

















 

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation - Continued

(Unaudited)




Quarter Ended


% Change

($ in thousands)



Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 30, 2023


Jun 30, 2023


Seq.
Quarter


Year
over
Year

Non-Interest Income Adjustments
















(Loss) gain on sale of debt securities, net



$                        (1)


$                       12


$                          9


$                          4


$                        —


(108) %


nm

Gain (loss) on equity securities, net



325


(1,565)


2,636


(2,055)


(697)


nm


nm

Gain (loss) on swap derivatives



424


1,197


(8,042)


5,700


1,288


(65) %


(67) %

Change in fair value of certain loans held for
investment



(10,114)


(2,372)


19,354


(19,247)


(6,965)


326 %


45 %

Change in fair value of MSR due to valuation inputs
or assumptions



1,238


3,117


(6,251)


5,308


(2,242)


(60) %


nm

MSR hedge (loss) gain



(1,611)


(4,271)


5,026


(4,733)


(7,636)


(62) %


(79) %

Total non-interest income adjustments

a


$               (9,739)


$               (3,882)


$               12,732


$            (15,023)


$            (16,252)


151 %


(40) %

















Non-Interest Expense Adjustments
















Merger and restructuring expense



$               14,641


$                 4,478


$                 7,174


$               18,938


$               29,649


227 %


(51) %

Exit and disposal costs



1,218


1,272


2,791


4,017


2,119


(4) %


(43) %

    FDIC special assessment (2)



884


4,848


32,923


—


—


(82) %


nm

Total non-interest expense adjustments

b


$               16,743


$               10,598


$               42,888


$               22,955


$               31,768


58 %


(47) %

















Net interest income

c


$            427,449


$            423,362


$            453,623


$            480,875


$            483,975


1 %


(12) %

















Non-interest income (GAAP)

d


$               44,703


$               50,357


$               65,533


$               43,981


$               39,678


(11) %


13 %

Less: Non-interest income adjustments

a


9,739


3,882


(12,732)


15,023


16,252


151 %


(40) %

Operating non-interest income (non-GAAP)

e


$               54,442


$               54,239


$               52,801


$               59,004


$               55,930


— %


(3) %

















Revenue (GAAP)

f=c+d


$            472,152


$            473,719


$            519,156


$            524,856


$            523,653


— %


(10) %

Operating revenue (non-GAAP)

g=c+e


$            481,891


$            477,601


$            506,424


$            539,879


$            539,905


1 %


(11) %

















Non-interest expense (GAAP)

h


$            279,244


$            287,516


$            337,176


$            304,147


$            328,559


(3) %


(15) %

Less: Non-interest expense adjustments

b


(16,743)


(10,598)


(42,888)


(22,955)


(31,768)


58 %


(47) %

Operating non-interest expense (non-GAAP)

i


$            262,501


$            276,918


$            294,288


$            281,192


$            296,791


(5) %


(12) %

















Net income (GAAP)

j


$            120,144


$            124,080


$               93,531


$            135,845


$            133,377


(3) %


(10) %

Provision for income taxes



40,944


44,987


33,540


48,127


45,703


(9) %


(10) %

Income before provision for income taxes



161,088


169,067


127,071


183,972


179,080


(5) %


(10) %

Provision for credit losses



31,820


17,136


54,909


36,737


16,014


86 %


99 %

Pre-provision net revenue (PPNR) (non-GAAP)

k


192,908


186,203


181,980


220,709


195,094


4 %


(1) %

Less: Non-interest income adjustments

a


9,739


3,882


(12,732)


15,023


16,252


151 %


(40) %

Add: Non-interest expense adjustments

b


16,743


10,598


42,888


22,955


31,768


58 %


(47) %

Operating PPNR (non-GAAP)

l


$            219,390


$            200,683


$            212,136


$            258,687


$            243,114


9 %


(10) %

















Net income (GAAP)

j


$            120,144


$            124,080


$               93,531


$            135,845


$            133,377


(3) %


(10) %

Less: Non-interest income adjustments

a


9,739


3,882


(12,732)


15,023


16,252


151 %


(40) %

Add: Non-interest expense adjustments

b


16,743


10,598


42,888


22,955


31,768


58 %


(47) %

Tax effect of adjustments



(6,621)


(3,620)


(7,539)


(9,482)


(11,981)


83 %


(45) %

Operating net income (non-GAAP)

m


$            140,005


$            134,940


$            116,148


$            164,341


$            169,416


4 %


(17) %

















nm = 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, except per share data)



Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 30, 2023


Jun 30, 2023


Seq.
Quarter


Year
over
Year

Average assets

n


$  51,981,555


$  52,083,973


$  51,832,356


$ 53,011,361


$  53,540,574


— %


(3) %

Less: Average goodwill and other intangible assets,
net



1,588,239


1,619,134


1,652,282


1,684,093


1,718,705


(2) %


(8) %

Average tangible assets

o


$  50,393,316


$  50,464,839


$  50,180,074


$ 51,327,268


$  51,821,869


— %


(3) %

















Average common shareholders' equity

p


$     4,908,239


$     4,985,875


$     4,695,736


$    4,866,975


$     4,935,239


(2) %


(1) %

Less: Average goodwill and other intangible assets,
net



1,588,239


1,619,134


1,652,282


1,684,093


1,718,705


(2) %


(8) %

Average tangible common equity

q


$     3,320,000


$     3,366,741


$     3,043,454


$    3,182,882


$     3,216,534


(1) %


3 %

















Weighted average basic shares outstanding

r


208,498


208,260


208,083


208,070


207,977


— %


— %

Weighted average diluted shares outstanding

s


209,011


208,956


208,739


208,645


208,545


— %


— %

















Select Per-Share & Performance Metrics
















Earnings-per-share - basic

j / r


$                0.58


$                0.60


$                0.45


$               0.65


$                0.64


(3) %


(9) %

Earnings-per-share - diluted

j / s


$                0.57


$                0.59


$                0.45


$               0.65


$                0.64


(3) %


(11) %

Efficiency ratio (1)

h / f


59.02 %


60.57 %


64.81 %


57.82 %


62.60 %


(1.55)


(3.58)

Non-interest expense to average assets

h / n


2.16 %


2.22 %


2.58 %


2.28 %


2.46 %


(0.06)


(0.30)

Return on average assets

j / n


0.93 %


0.96 %


0.72 %


1.02 %


1.00 %


(0.03)


(0.07)

Return on average tangible assets

j / o


0.96 %


0.99 %


0.74 %


1.05 %


1.03 %


(0.03)


(0.07)

PPNR return on average assets

k / n


1.49 %


1.44 %


1.39 %


1.65 %


1.46 %


0.05


0.03

Return on average common equity

j / p


9.85 %


10.01 %


7.90 %


11.07 %


10.84 %


(0.16)


(0.99)

Return on average tangible common equity

j / q


14.55 %


14.82 %


12.19 %


16.93 %


16.63 %


(0.27)


(2.08)

















Operating Per-Share & Performance Metrics
















Operating earnings-per-share - basic  (2)

m / r


$                0.67


$                0.65


$                0.56


$               0.79


$                0.81


3 %


(17) %

Operating earnings-per-share - diluted (2)

m / s


$                0.67


$                0.65


$                0.56


$               0.79


$                0.81


3 %


(17) %

Operating efficiency ratio, as adjusted (1), (2), (3)

u / y


53.56 %


56.97 %


57.31 %


51.26 %


54.04 %


(3.41)


(0.48)

Operating non-interest expense to average assets

i / n


2.03 %


2.14 %


2.25 %


2.10 %


2.22 %


(0.11)


(0.19)

Operating return on average assets (2)

m / n


1.08 %


1.04 %


0.89 %


1.23 %


1.27 %


0.04


(0.19)

Operating return on average tangible assets (2)

m / o


1.12 %


1.08 %


0.92 %


1.27 %


1.31 %


0.04


(0.19)

Operating PPNR return on average assets (2)

l / n


1.70 %


1.55 %


1.62 %


1.94 %


1.82 %


0.15


(0.12)

Operating return on average common equity (2)

m / p


11.47 %


10.89 %


9.81 %


13.40 %


13.77 %


0.58


(2.30)

Operating return on average tangible common equity (2)

m / q


16.96 %


16.12 %


15.14 %


20.48 %


21.13 %


0.84


(4.17)



(1)

Tax-exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.

(2)

Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes the FDIC special assessment in non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company.

(3)

The operating efficiency ratio was adjusted in the first quarter of 2024 to remove B&O taxes and for a tax-equivalent adjustment to BOLI income. The Company views the adjusted operating efficiency ratio as a better representation of its efficiency ratio when compared to other banks as it normalizes for the tax treatment of the adjusted items. The adjustment re-aligns Columbia's calculation of its operating efficiency ratio with its pre-merger calculation.

 

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation - Continued

Operating Efficiency Ratio, as adjusted

(Unaudited)




Quarter Ended


% Change

($ in thousands)



Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 30, 2023


Jun 30, 2023


Seq. Quarter


Year over Year

Non-interest expense (GAAP)

h


$        279,244


$        287,516


$        337,176


$        304,147


$        328,559


(3) %


(15) %

Less: Non-interest expense adjustments

b


(16,743)


(10,598)


(42,888)


(22,955)


(31,768)


58 %


(47) %

Operating non-interest expense (non-GAAP)

i


262,501


276,918


294,288


281,192


296,791


(5) %


(12) %

Less: B&O taxes

t


(3,183)


(3,223)


(2,727)


(3,275)


(3,647)


(1) %


(13) %

Operating non-interest expense, excluding B&O
taxes (non-GAAP)

u


$        259,318


$        273,695


$        291,561


$        277,917


$        293,144


(5) %


(12) %

















Net interest income (tax equivalent) (1)

v


$        428,434


$        424,344


$        454,730


$        482,031


$        485,168


1 %


(12) %

Non-interest income (GAAP)

d


44,703


50,357


65,533


43,981


39,678


(11) %


13 %

Add: BOLI tax equivalent adjustment (1)

w


1,291


1,809


1,182


1,178


1,360


(29) %


(5) %

Total Revenue, excluding BOLI tax equivalent
adjustments (tax equivalent)

x


474,428


476,510


521,445


527,190


526,206


— %


(10) %

Less: Non-interest income adjustments

a


9,739


3,882


(12,732)


15,023


16,252


151 %


(40) %

Total Adjusted Operating Revenue, excluding BOLI
tax equivalent adjustments (tax equivalent) (non-
GAAP)

y


$        484,167


$        480,392


$        508,713


$        542,213


$        542,458


1 %


(11) %

















Efficiency ratio (1)

h / f


59.02 %


60.57 %


64.81 %


57.82 %


62.60 %


(1.55)


(3.58)

Operating efficiency ratio, as adjusted (non-GAAP)
(1), (2), (3)

u / y


53.56 %


56.97 %


57.31 %


51.26 %


54.04 %


(3.41)


(0.48)



(1)

Tax-exempt income has been adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.

(2)

Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes the FDIC special assessment in non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company.

(3)

The operating efficiency ratio was adjusted in the first quarter of 2024 to remove B&O taxes and for a tax-equivalent adjustment to BOLI income. The Company views the adjusted operating efficiency ratio as a better representation of its efficiency ratio when compared to other banks as it normalizes for the tax treatment of the adjusted items. The adjustment re-aligns Columbia's calculation of its operating efficiency ratio with its pre-merger calculation.

 

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation - Continued

(Unaudited)




Six Months Ended


% Change

($ in thousands)



Jun 30, 2024


Jun 30, 2023


Year over Year

Non-Interest Income Adjustments








Gain on sale of debt securities, net



$                                   11


$                                    —


nm

(Loss) gain on equity securities, net



(1,240)


1,719


(172) %

Gain (loss) on swap derivatives



1,621


(2,255)


nm

Change in fair value of certain loans held for investment



(12,486)


2,523


nm

Change in fair value of MSR due to valuation inputs or assumptions



4,355


(5,179)


nm

   MSR hedge loss



(5,882)


(4,986)


18 %

Total non-interest income adjustments

a


$                        (13,621)


$                           (8,178)


67 %









Non-Interest Expense Adjustments








Merger and restructuring expense



$                           19,119


$                        145,547


(87) %

Exit and disposal costs



2,490


3,410


(27) %

    FDIC special assessment (2)



$                             5,732


$                                    —


nm

Total non-interest expense adjustments

b


$                           27,341


$                        148,957


(82) %









Net interest income

c


$                        850,811


$                        858,673


(1) %









Non-interest income (GAAP)

d


$                           95,060


$                           94,413


1 %

Less: Non-interest income adjustments

a


13,621


8,178


67 %

Operating non-interest income (non-GAAP)

e


$                        108,681


$                        102,591


6 %









Revenue (GAAP)

f=c+d


$                        945,871


$                        953,086


(1) %

Operating revenue (non-GAAP)

g=c+e


$                        959,492


$                        961,264


— %









Non-interest expense (GAAP)

h


$                        566,760


$                        671,377


(16) %

Less: Non-interest expense adjustments

b


(27,341)


(148,957)


(82) %

Operating non-interest expense (non-GAAP)

i


$                        539,419


$                        522,420


3 %









Net income (GAAP)

j


$                        244,224


$                        119,339


105 %

Provision for income taxes



85,931


40,817


111 %

Income before provision for income taxes



330,155


160,156


106 %

Provision for credit losses



48,956


121,553


(60) %

Pre-provision net revenue (PPNR) (non-GAAP)

k


379,111


281,709


35 %

Less: Non-interest income adjustments

a


13,621


8,178


67 %

Add: Non-interest expense adjustments

b


27,341


148,957


(82) %

Operating PPNR (non-GAAP)

l


$                        420,073


$                        438,844


(4) %









Net income (GAAP)

j


$                        244,224


$                        119,339


105 %

Less: Non-interest income adjustments

a


13,621


8,178


67 %

Add: Non-interest expense adjustments

b


27,341


148,957


(82) %

Tax effect of adjustments



(10,241)


(35,546)


(71) %

Operating net income (non-GAAP)

m


$                        274,945


$                        240,928


14 %








nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

Average assets

n


$                  52,032,763


$                  46,522,265


12 %

Less: Average goodwill and other intangible assets, net



1,603,686


1,173,900


37 %

Average tangible assets

o


$                  50,429,077


$                  45,348,365


11 %









Average common shareholders' equity

p


$                    4,947,057


$                    4,146,880


19 %

Less: Average goodwill and other intangible assets, net



1,603,686


1,173,900


37 %

Average tangible common equity

q


$                    3,343,371


$                    2,972,980


12 %









Weighted average basic shares outstanding

r


208,379


182,325


14 %

Weighted average diluted shares outstanding

s


208,999


182,860


14 %









Select Per-Share & Performance Metrics








Earnings-per-share - basic

j / r


$                                1.17


$                                0.65


80 %

Earnings-per-share - diluted

j / s


$                                1.17


$                                0.65


80 %

Efficiency ratio (1)

h / f


59.80 %


70.30 %


(10.50)

Non-interest expense to average assets

h/n


2.19 %


2.91 %


(0.72)

Return on average assets

j / n


0.94 %


0.52 %


0.42

Return on average tangible assets

j / o


0.97 %


0.53 %


0.44

PPNR return on average assets

k/n


1.47 %


1.22 %


0.25

Return on average common equity

j / p


9.93 %


5.80 %


4.13

Return on average tangible common equity

j / q


14.69 %


8.09 %


6.60









Operating Per-Share & Performance Metrics








Operating earnings-per-share - basic (2)

m / r


$                                1.32


$                                1.32


— %

Operating earnings-per-share - diluted (2)

m / s


$                                1.32


$                                1.32


— %

Operating efficiency ratio, as adjusted (1), (2), (3)

u / y


55.26 %


53.51 %


1.75

Operating non-interest expense to average assets

i/n


2.08 %


2.26 %


(0.18)

Operating return on average assets (2)

m / n


1.06 %


1.04 %


0.02

Operating return on average tangible assets (2)

m / o


1.10 %


1.07 %


0.03

Operating PPNR return on average assets (2)

l / n


1.62 %


1.90 %


(0.28)

Operating return on average common equity (2)

m / p


11.18 %


11.72 %


(0.54)

Operating return on average tangible common equity (2)

m / q


16.54 %


16.34 %


0.20



(1)

Tax-exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.

(2)

Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes the FDIC special assessment in non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company.

(3)

The operating efficiency ratio was adjusted in the first quarter of 2024 to remove B&O taxes and for a tax-equivalent adjustment to BOLI income. The Company views the adjusted operating efficiency ratio as a better representation of its efficiency ratio when compared to other banks as it normalizes for the tax treatment of the adjusted items. The adjustment re-aligns Columbia's calculation of its operating efficiency ratio with its pre-merger calculation.

 

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation - Continued

Operating Efficiency Ratio, as adjusted

(Unaudited)




Six Months Ended


% change

($ in thousands)



Jun 30, 2024


Jun 30, 2023


Year over Year

Non-interest expense (GAAP)

h


$                        566,760


$                        671,377


(16) %

Less: Non-interest expense adjustments

b


(27,341)


(148,957)


(82) %

Operating non-interest expense (non-GAAP)

i


539,419


522,420


3 %

Less: B&O taxes

t


(6,406)


(5,776)


11 %

Operating non-interest expense, excluding B&O taxes (non-GAAP)

u


$                        533,013


$                        516,644


3 %









Net interest income (tax equivalent) (1)

v


$                        852,778


$                        860,537


(1) %

Non-interest income (GAAP)

d


95,060


94,413


1 %

Add: BOLI tax equivalent adjustment (1)

w


3,100


2,317


34 %

Total Revenue, excluding BOLI tax equivalent adjustments (tax equivalent)

x


950,938


957,267


(1) %

Less: Non-interest income adjustments

a


13,621


8,178


67 %

Total Adjusted Operating Revenue, excluding BOLI tax equivalent adjustments (tax
equivalent) (non-GAAP)

y


$                        964,559


$                        965,445


— %









Efficiency ratio (1)

h /f


59.80 %


70.30 %


(10.50)

Operating efficiency ratio, as adjusted (non-GAAP) (1), (2), (3)

u / y


55.26 %


53.51 %


1.75



(1)

Tax-exempt income has been adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.

(2)

Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes the FDIC special assessment in non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company.

(3)

The operating efficiency ratio was adjusted in the first quarter of 2024 to remove B&O taxes and for a tax-equivalent adjustment to BOLI income. The Company views the adjusted operating efficiency ratio as a better representation of its efficiency ratio when compared to other banks as it normalizes for the tax treatment of the adjusted items. The adjustment re-aligns Columbia's calculation of its operating efficiency ratio with its pre-merger calculation.

 

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation - Continued

(Unaudited)




Quarter Ended


% Change

($ in thousands)



Jun 30,
2024


Mar 31,
2024


Dec 31,
2023


Sep 30,
2023


Jun 30, 2023


Seq.
Quarter


Year over
Year

Loans and leases interest income

a


$     582,246


$     574,519


$     577,092


$     567,929


$        551,997


1 %


5 %

Less: Acquired loan accretion - rate related (2), (3)

b


24,942


23,482


26,914


28,963


30,548


6 %


(18) %

Less: Acquired loan accretion - credit related (3)

c


4,835


5,119


5,430


6,370


7,100


(6) %


(32) %

Adjusted loans and leases interest income

d=a-b-c


$     552,469


$     545,918


$     544,748


$     532,596


$        514,349


1 %


7 %

















Taxable securities interest income

e


$        81,723


$        78,724


$        82,872


$        85,007


$          81,617


4 %


— %

Less: Acquired taxable securities accretion - rate related

f


40,120


31,527


34,290


39,219


34,801


27 %


15 %

Adjusted Taxable securities interest income

g=e-f


$        41,603


$        47,197


$        48,582


$        45,788


$          46,816


(12) %


(11) %

















Non-taxable securities interest income (1)

h


$          7,889


$          7,886


$          8,073


$          8,085


$             8,010


— %


(2) %

Less: Acquired non-taxable securities accretion - rate related

i


2,256


2,270


2,309


2,288


2,274


(1) %


(1) %

Adjusted Taxable securities interest income (1)

j=h-i


$          5,633


$          5,616


$          5,764


$          5,797


$             5,736


— %


(2) %

















Interest income (1)

k


$     696,521


$     685,207


$     692,741


$     697,169


$        676,922


2 %


3 %

Less: Acquired loan and securities accretion - rate related (3)

l=b+f+i


67,318


57,279


63,513


70,470


67,623


18 %


— %

Less: Acquired loan accretion - credit related (3)

c


4,835


5,119


5,430


6,370


7,100


(6) %


(32) %

Adjusted interest income (1)

m=k-l-c


$     624,368


$     622,809


$     623,798


$     620,329


$        602,199


— %


4 %

















Interest-bearing deposits interest expense

n


$     207,307


$     198,435


$     170,659


$     126,974


$        100,408


4 %


106 %

Less: Acquired deposit accretion

o


—


—


(187)


(373)


(280)


nm


nm

Adjusted interest-bearing deposits interest expense

p=n-o


$     207,307


$     198,435


$     170,846


$     127,347


$        100,688


4 %


106 %

















Interest expense

q


$     268,087


$     260,863


$     238,011


$     215,138


$        191,754


3 %


40 %

Less: Acquired interest-bearing liabilities accretion (2)

r


(57)


(57)


(244)


(430)


(337)


— %


(83) %

Adjusted interest expense

s=q-r


$     268,144


$     260,920


$     238,255


$     215,568


$        192,091


3 %


40 %

















Net Interest Income (1)

t


$     428,434


$     424,344


$     454,730


$     482,031


$        485,168


1 %


(12) %

Less: Acquired loan, securities, and interest-bearing liabilities  accretion - rate related (3)

u=l-r


67,375


57,336


63,757


70,900


67,960


18 %


(1) %

Less: Acquired loan accretion - credit related (3)

c


4,835


5,119


5,430


6,370


7,100


(6) %


(32) %

Adjusted net interest income (1)

v=t-u-c


$     356,224


$     361,889


$     385,543


$     404,761


$        410,108


(2) %


(13) %

















Average loans and leases

aa


37,663,396


37,597,101


37,333,310


37,050,518


37,169,315


— %


1 %

Average taxable securities

ab


7,839,202


8,081,003


7,903,053


8,356,165


8,656,147


(3) %


(9) %

Average non-taxable securities

ac


825,030


851,342


809,551


844,417


865,278


(3) %


(5) %

Average interest-earning assets

ad


48,117,746


48,280,787


47,838,229


48,981,105


49,442,518


— %


(3) %

Average interest-bearing deposits

ae


28,041,156


27,742,579


26,622,343


25,121,745


24,494,717


1 %


14 %

Average interest-bearing liabilities

af


32,583,458


32,318,653


31,226,600


31,413,978


31,372,416


1 %


4 %

















nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."



(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)




Quarter Ended


% Change

($ in thousands)



Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 30, 2023


Jun 30, 2023


Seq.
Quarter


Year over
Year

Average yield on loans and leases

a / aa


6.20 %


6.13 %


6.13 %


6.08 %


5.95 %


0.07


0.25

Less: Acquired loan accretion - rate related (2),(3)

b / aa


0.27 %


0.25 %


0.29 %


0.31 %


0.33 %


0.02


(0.06)

Less: Acquired loan accretion - credit related (3)

c / aa


0.05 %


0.05 %


0.06 %


0.07 %


0.08 %


—


(0.03)

Adjusted average yield on loans and leases

d / aa


5.88 %


5.83 %


5.78 %


5.70 %


5.54 %


0.05


0.34

















Average yield on taxable securities

e / ab


4.17 %


3.90 %


4.19 %


4.07 %


3.77 %


0.27


0.40

Less: Acquired taxable securities accretion - rate related

f / ab


2.06 %


1.57 %


1.72 %


1.86 %


1.61 %


0.49


0.45

Adjusted average yield on taxable securities

g / ab


2.11 %


2.33 %


2.47 %


2.21 %


2.16 %


(0.22)


(0.05)

















Average yield on non-taxable securities (1)

h / ac


3.82 %


3.71 %


3.99 %


3.83 %


3.70 %


0.11


0.12

Less: Acquired non-taxable securities accretion - rate related

i / ac


1.10 %


1.07 %


1.13 %


1.07 %


1.05 %


0.03


0.05

Adjusted yield on non-taxable securities (1)

j / ac


2.72 %


2.64 %


2.86 %


2.76 %


2.65 %


0.08


0.07

















Average yield on interest-earning assets (1)

k / ad


5.80 %


5.69 %


5.75 %


5.65 %


5.48 %


0.11


0.32

Less: Acquired loan and securities accretion - rate related (3)

l / ad


0.56 %


0.48 %


0.53 %


0.57 %


0.55 %


0.08


0.01

Less: Acquired loan accretion - credit related (3)

c / ad


0.04 %


0.04 %


0.05 %


0.05 %


0.06 %


—


(0.02)

Adjusted average yield on interest-earning assets (1)

m / ad


5.20 %


5.17 %


5.17 %


5.03 %


4.87 %


0.03


0.33

















Average rate on interest-bearing deposits

n / ae


2.97 %


2.88 %


2.54 %


2.01 %


1.64 %


0.09


1.33

Less: Acquired deposit accretion

o / ae


— %


— %


— %


(0.01) %


— %


—


—

Adjusted average rate on interest-bearing deposits

p / ae


2.97 %


2.88 %


2.54 %


2.02 %


1.64 %


0.09


1.33

















Average rate on interest-bearing liabilities

q / af


3.31 %


3.25 %


3.02 %


2.72 %


2.45 %


0.06


0.86

Less: Acquired interest-bearing liabilities accretion (2)

r / af


— %


— %


— %


(0.01) %


— %


—


—

Adjusted average rate on interest-bearing liabilities

s / af


3.31 %


3.25 %


3.02 %


2.73 %


2.45 %


0.06


0.86

















Net interest margin (1)

t / ad


3.56 %


3.52 %


3.78 %


3.91 %


3.93 %


0.04


(0.37)

Less: Acquired loan, securities, and interest-bearing liabilities
accretion - rate related (3)

u / ad


0.56 %


0.48 %


0.53 %


0.58 %


0.55 %


0.08


0.01

Less: Acquired loan accretion - credit related (3)

c / ad


0.04 %


0.04 %


0.05 %


0.05 %


0.06 %


—


(0.02)

Adjusted net interest margin (1)

v / ad


2.96 %


3.00 %


3.20 %


3.28 %


3.32 %


(0.04)


(0.36)



















(1)

Tax-exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate.

(2)

Includes discount accretion related to UHC's 2014 acquisition of Sterling Financial Corporation.

(3)

The cumulative fair value discount on historical Columbia loans was established as of February 28, 2023, and the allocation between the credit-related discount and the rate-related discount was established at that time. Our disclosure of credit-related and rate-related discount accretion is an estimate based on the relative allocation of these two items to the discount at closing. 

 

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation - Continued

(Unaudited)




Six Months Ended



($ in thousands)



Jun 30, 2024


Jun 30, 2023


Year over
Year

Loans and leases interest income

a


$              1,156,765


$                  964,723


20 %

Less: Acquired loan accretion - rate related (2), (3)

b


48,424


42,380


14 %

Less: Acquired loan accretion - credit related (3)

c


9,954


10,906


(9) %

Adjusted loans and leases interest income

d=a-b-c


$              1,098,387


$                  911,437


21 %









Taxable securities interest income

e


$                  160,447


$                  122,065


31 %

Less: Acquired taxable securities accretion - rate related

f


71,647


50,157


43 %

Adjusted Taxable securities interest income

g=e-f


$                    88,800


$                    71,908


23 %









Non-taxable securities interest income (1)

h


$                    15,775


$                    12,078


31 %

Less: Acquired non-taxable securities accretion - rate related

i


4,526


3,175


43 %

Adjusted Taxable securities interest income (1)

j=h-i


$                    11,249


$                       8,903


26 %









Interest income (1)

k


$              1,381,728


$              1,153,544


20 %

Less: Acquired loan and securities accretion - rate related (3)

l=b+f+i


124,597


95,712


30 %

Less: Acquired loan accretion - credit related (3)

c


9,954


10,906


(9) %

Adjusted interest income (1)

m=k-l-c


$              1,247,177


$              1,046,926


19 %









Interest-bearing deposits interest expense

n


$                  405,742


$                  164,021


147 %

Less: Acquired deposit accretion

o


—


(373)


nm

Adjusted interest-bearing deposits interest expense

p=n-o


$                  405,742


$                  164,394


147 %









Interest expense

q


$                  528,950


$                  293,007


81 %

Less: Acquired interest-bearing liabilities accretion (2)

r


(114)


(487)


(77) %

Adjusted interest expense

s=q-r


$                  529,064


$                  293,494


80 %









Net Interest Income (1)

t


$                  852,778


$                  860,537


(1) %

Less: Acquired loan, securities, and interest-bearing liabilities  accretion - rate related (3)

u=l-r


124,711


96,199


30 %

Less: Acquired loan accretion - credit related (3)

c


9,954


10,906


(9) %

Adjusted net interest income (1)

v=t-u-c


$                  718,113


$                  753,432


(5) %









Average loans and leases

aa


37,630,248


33,603,781


12 %

Average taxable securities

ab


7,960,102


6,818,764


17 %

Average non-taxable securities

ac


838,186


652,332


28 %

Average interest-earning assets

ad


48,199,266


43,283,329


11 %

Average interest-bearing deposits

ae


27,891,867


22,058,850


26 %

Average interest-bearing liabilities

af


32,451,055


27,034,125


20 %









nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."



(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)




Six Months Ended



($ in thousands)



Jun 30, 2024


Jun 30, 2023


Year over Year

Average yield on loans and leases

a / aa


6.17 %


5.77 %


0.40

Less: Acquired loan accretion - rate related (2),(3)

b / aa


0.26 %


0.25 %


0.01

Less: Acquired loan accretion - credit related (3)

c / aa


0.05 %


0.07 %


(0.02)

Adjusted average yield on loans and leases

d / aa


5.86 %


5.45 %


0.41









Average yield on taxable securities

e / ab


4.03 %


3.58 %


0.45

Less: Acquired taxable securities accretion - rate related

f / ab


1.81 %


1.48 %


0.33

Adjusted average yield on taxable securities

g / ab


2.22 %


2.10 %


0.12









Average yield on non-taxable securities (1)

h / ac


3.76 %


3.70 %


0.06

Less: Acquired non-taxable securities accretion - rate related

i / ac


1.09 %


0.98 %


0.11

Adjusted yield on non-taxable securities (1)

j / ac


2.67 %


2.72 %


(0.05)









Average yield on interest-earning assets (1)

k / ad


5.75 %


5.35 %


0.40

Less: Acquired loan and securities accretion - rate related (3)

l / ad


0.52 %


0.45 %


0.07

Less: Acquired loan accretion - credit related (3)

c / ad


0.04 %


0.05 %


(0.01)

Adjusted average yield on interest-earning assets (1)

m / ad


5.19 %


4.85 %


0.34









Average rate on interest-bearing deposits

n / ae


2.93 %


1.50 %


1.43

Less: Acquired deposit accretion

o / ae


— %


— %


—

Adjusted average rate on interest-bearing deposits

p / ae


2.93 %


1.50 %


1.43









Average rate on interest-bearing liabilities

q / af


3.28 %


2.19 %


1.09

Less: Acquired interest-bearing liabilities accretion (2)

r / af


— %


— %


—

Adjusted average rate on interest-bearing liabilities

s / af


3.28 %


2.19 %


1.09









Net interest margin (1)

t / ad


3.54 %


3.99 %


(0.45)

Less: Acquired loan, securities, and interest-bearing liabilities  accretion - rate related (3)

u / ad


0.52 %


0.45 %


0.07

Less: Acquired loan accretion - credit related (3)

c / ad


0.04 %


0.05 %


(0.01)

Adjusted net interest margin (1)

v / ad


2.98 %


3.49 %


(0.51)



(1)

Tax-exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate.

(2)

Includes discount accretion related to UHC's 2014 acquisition of Sterling Financial Corporation.

(3)

The cumulative fair value discount on historical Columbia loans was established as of February 28, 2023, and the allocation between the credit-related discount and the rate-related discount was established at that time. Our disclosure of credit-related and rate-related discount accretion is an estimate based on the relative allocation of these two items to the discount at closing.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/columbia-banking-system-inc-reports-second-quarter-2024-results-302206725.html

SOURCE Columbia Banking System, Inc.

FAQ

What was Columbia Banking System's (COLB) net income for Q2 2024?

Columbia Banking System (COLB) reported a net income of $120 million for Q2 2024.

How did Columbia Banking System's (COLB) net interest margin change in Q2 2024?

Columbia Banking System's (COLB) net interest margin increased to 3.56% in Q2 2024, up 4 basis points from 3.52% in Q1 2024.

What was the quarterly dividend declared by Columbia Banking System (COLB) for Q2 2024?

Columbia Banking System (COLB) declared a quarterly cash dividend of $0.36 per common share for Q2 2024.

How did Columbia Banking System's (COLB) loan portfolio change in Q2 2024?

Columbia Banking System's (COLB) gross loans and leases increased by $68 million to $37.7 billion as of June 30, 2024, compared to the previous quarter.

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Columbia Banking Systems Inc

NASDAQ:COLB

COLB Rankings

#1119 Ranked by Market Cap
#618 Ranked by Dividends

COLB Latest News

Nov 15, 2024
Columbia Banking System Announces $0.36 Per Common Share Dividend
Oct 24, 2024
COLUMBIA BANKING SYSTEM, INC. REPORTS THIRD QUARTER 2024 RESULTS
Sep 30, 2024
Columbia Banking System Announces Date of Third Quarter 2024 Earnings Release and Conference Call
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Umpqua Bank Bolsters North Coast Wine Specialty Group With Addition of Six Experienced Bankers

COLB Stock Data

6.43B
209.53M
0.68%
95%
1.97%
Banks - Regional
State Commercial Banks
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United States of America
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