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COLUMBIA BANKING SYSTEM, INC. REPORTS THIRD QUARTER 2024 RESULTS

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Columbia Banking System reported Q3 2024 results with net income of $146 million and earnings per diluted share of $0.70. Net interest income increased by $3 million from the previous quarter, while net interest margin remained stable at 3.56%. The company achieved a 25% reduction in costs over 18 months of combined operations. Non-interest income rose by $21 million, primarily due to fair value accounting and hedges. The bank maintained strong capital positions with an estimated total risk-based capital ratio of 12.5% and common equity tier 1 ratio of 10.3%. Total assets stood at $51.9 billion, with loans at $37.5 billion and deposits at $41.5 billion.

Columbia Banking System ha riportato i risultati del terzo trimestre 2024 con un utile netto di 146 milioni di dollari e utili per azione diluiti di 0,70 dollari. Il reddito netto da interessi è aumentato di 3 milioni di dollari rispetto al trimestre precedente, mentre il margine di interesse netto è rimasto stabile al 3,56%. L'azienda ha ottenuto una riduzione dei costi del 25% in 18 mesi di operazioni combinate. Il reddito non da interessi è aumentato di 21 milioni di dollari, principalmente a causa della contabilità del fair value e degli hedge. La banca ha mantenuto solide posizioni patrimoniali con un rapporto stimato di capitale totale basato sul rischio del 12,5% e un rapporto di capitale primario di common equity dell'10,3%. Gli attivi totali ammontavano a 51,9 miliardi di dollari, con prestiti per 37,5 miliardi di dollari e depositi per 41,5 miliardi di dollari.

Columbia Banking System informó los resultados del tercer trimestre de 2024 con un ingreso neto de 146 millones de dólares y ganancias por acción diluida de 0,70 dólares. Los ingresos netos por intereses aumentaron en 3 millones de dólares con respecto al trimestre anterior, mientras que el margen de interés neto se mantuvo estable en el 3,56%. La empresa logró una reducción del 25% en los costos en 18 meses de operaciones combinadas. Los ingresos no relacionados con intereses aumentaron en 21 millones de dólares, principalmente debido a la contabilidad de valor razonable y coberturas. El banco mantuvo posiciones de capital sólidas con un ratio de capital total basado en riesgo estimado del 12,5% y un ratio de capital básico tier 1 del 10,3%. Los activos totales ascendieron a 51,9 mil millones de dólares, con préstamos de 37,5 mil millones de dólares y depósitos de 41,5 mil millones de dólares.

컬럼비아 뱅킹 시스템은 2024년 3분기 결과를 보고하며 순이익 1억 4,600만 달러와 희석 주당 이익 0.70 달러를 기록했습니다. 순이자 수익은 이전 분기보다 300만 달러 증가했으며, 순이자 마진은 3.56%로 안정세를 유지했습니다. 회사는 18개월 간의 통합 운영을 통해 비용 25% 절감을 달성했습니다. 비이자 수익은 공정 가치 회계 및 헤지로 인해 2,100만 달러 증가했습니다. 은행은 총 위험 기반 자본 비율 12.5%와 기본 자본 1단계 비율 10.3%로 강력한 자본 구조를 유지했습니다. 총 자산은 5,190억 달러였으며, 대출금은 3,750억 달러, 예금은 4,150억 달러에 달했습니다.

Le système bancaire Columbia a rapporté les résultats du troisième trimestre 2024 avec un revenu net de 146 millions de dollars et des bénéfices dilués par action de 0,70 dollar. Les revenus d'intérêts nets ont augmenté de 3 millions de dollars par rapport au trimestre précédent, tandis que la marge d'intérêt net est restée stable à 3,56%. L'entreprise a réalisé une réduction des coûts de 25% sur 18 mois d'opérations combinées. Les revenus non liés aux intérêts ont augmenté de 21 millions de dollars, principalement en raison de la comptabilité de la juste valeur et des couvertures. La banque a maintenu des positions de capital solides avec un ratio total de capital basé sur le risque estimé à 12,5% et un ratio de capital de base de 10,3%. Les actifs totaux s'élevaient à 51,9 milliards de dollars, avec des prêts de 37,5 milliards de dollars et des dépôts de 41,5 milliards de dollars.

Das Columbia Banking System berichtete über die Ergebnisse des 3. Quartals 2024 mit einem Nettoergebnis von 146 Millionen Dollar und Gewinnen je verwässerter Aktie von 0,70 Dollar. Die Nettozinsüberschüsse stiegen im Vergleich zum vorherigen Quartal um 3 Millionen Dollar, während die Nettozinsmarge stabil bei 3,56% blieb. Das Unternehmen erzielte eine Kostensenkung von 25% über 18 Monate kombinierter Betriebsaktivitäten. Die Zinserträge stiegen um 21 Millionen Dollar, hauptsächlich aufgrund von Fair-Value-Bewertungen und Absicherungen. Die Bank hielt eine starke Kapitalposition mit einem geschätzten gesamten risikobasierten Kapitalquote von 12,5% und einem Kernkapitalquote von 10,3%. Die Gesamtsumme der Vermögenswerte betrug 51,9 Milliarden Dollar, mit Darlehen von 37,5 Milliarden Dollar und Einlagen von 41,5 Milliarden Dollar.

Positive
  • Net income increased to $146 million
  • Net interest income grew by $3 million quarter-over-quarter
  • 25% reduction in operational costs over 18 months
  • Non-interest income increased by $21 million
  • Strong capital ratios with total risk-based capital at 12.5%
Negative
  • Loan balances contracted during the quarter
  • Net charge-offs at 0.31% of average loans
  • Non-performing assets increased to 0.32% of total assets from 0.30%
  • Net interest margin declined year-over-year from 3.91% to 3.56%

Insights

Columbia Banking System delivered a solid Q3 2024 with $146 million in net income and EPS of $0.70. Key positives include a stable NIM at 3.56%, successful cost reduction initiatives achieving $82 million in annualized savings and improved capital ratios with CET1 at 10.3%.

The bank's asset quality remains manageable with NPAs at 0.32% and net charge-offs at 0.31%. The strategic reduction in transactional loans and brokered deposits demonstrates prudent balance sheet management. Book value per share increased to $25.17, up significantly from $23.76 in Q2, benefiting from reduced AOCI losses.

The efficiency ratio improved to 54.56% from 59.02%, reflecting successful cost management initiatives. While loan balances contracted slightly, core deposit growth and reduced funding costs position the bank well for future quarters.

The operational transformation is yielding tangible results with a 25% reduction in costs over 18 months post-merger. The strategic shift from transactional to relationship-driven commercial loans indicates a focus on sustainable, quality growth. The expansion in Arizona through new branches demonstrates commitment to targeted market growth.

Liquidity position remains robust at 37% of total assets and 138% of uninsured deposits. The successful reduction of brokered CDs by 20% while maintaining stable deposits shows effective liability management. The reinvestment of $12 million in cost savings into technology and talent should support future revenue growth opportunities.

TACOMA, Wash., Oct. 24, 2024 /PRNewswire/ --


$146 million


$143 million


$0.70


$0.69


Net income


Operating net income 1


Earnings per diluted common
share


Operating earnings per diluted
common share 1

 

CEO Commentary

"Our third quarter results reflect our continued work and success as we strive toward top-quartile performance," said Clint Stein, President and CEO. "Our recurring expense run rate reflects a 25% reduction in costs over the 18 months we have operated as a combined organization, as we eliminated redundancies and streamlined operations. Our teams' dedication to driving value for our customers contributed to solid core deposit growth, even as deposit costs were reduced. Although loan balances contracted during the quarter, they reflect healthy customer activity and our focus on reducing transactional assets and their funding sources, as we regain Columbia's placement as a top-performing bank that delivers long-term, consistent, repeatable results for our shareholders."

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

 

_____________________________

1 "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for additional information.

 

3Q24 HIGHLIGHTS (COMPARED TO 2Q24)





Net Interest
Income and
NIM

•   Net interest income increased by $3 million from the prior quarter due to higher income earned on loans, which occurred despite a reduction in accretion income, and relatively stable funding costs prior to the late-quarter reduction in the federal funds rate.


•   Net interest margin was 3.56%, unchanged from the prior quarter, as a favorable balance sheet funding mix shift into lower-cost deposits and a slight increase in loan yields offset a lower yield on securities.





Non-Interest
Income and Expense

•   Non-interest income increased by $21 million due to the quarterly fluctuation in cumulative fair value accounting and hedges, which drove $16 million of the change. Higher core banking activity contributed to the remaining increase.


•   Non-interest expense decreased by $8 million due to lower restructuring expense and a $6 million decline in salary and wages expense related to operational initiatives. The effect was partially offset by the prior quarter's reversal of compensation-related accruals, which did not repeat in the third quarter.





Credit Quality

•   Net charge-offs were 0.31% of average loans and leases (annualized), compared to 0.32% in the prior quarter. Lower activity in the FinPac portfolio drove the decline.


•   Provision expense of $29 million compares to $32 million in the prior quarter.


•   Non-performing assets to total assets was 0.32%, compared to 0.30% as of June 30, 2024.





Capital

•   Estimated total risk-based capital ratio of 12.5% and estimated common equity tier 1 risk-based capital ratio of 10.3%.


•   Declared a quarterly cash dividend of $0.36 per common share on August 12, 2024, which was paid September 9, 2024.





Notable Items

•   Realized $82 million in annualized cost savings associated with recent operational initiatives as of September 30, 2024. Reinvestment of $12 million in savings is ongoing and expected to extend into 2025.


•   Opened our second retail branch in Arizona, which will be complemented by a planned third location in the state, slated to open in early 2025.


 

3Q24 KEY FINANCIAL DATA







PERFORMANCE METRICS

3Q24


2Q24


3Q23

Return on average assets

1.12 %


0.93 %


1.02 %

Return on average common
equity

11.36 %


9.85 %


11.07 %

Return on average tangible
common equity 1

16.34 %


14.55 %


16.93 %

Operating return on average
assets 1

1.10 %


1.08 %


1.23 %

Operating return on average
common equity 1

11.15 %


11.47 %


13.40 %

Operating return on average
tangible common equity 1

16.04 %


16.96 %


20.48 %

Net interest margin

3.56 %


3.56 %


3.91 %

Efficiency ratio

54.56 %


59.02 %


57.82 %

Operating efficiency ratio, as
adjusted 1

53.89 %


53.56 %


51.26 %







INCOME STATEMENT

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

3Q24


2Q24


3Q23

Net interest income

$430,218


$427,449


$480,875

Provision for credit losses

$28,769


$31,820


$36,737

Non-interest income

$66,159


$44,703


$43,981

Non-interest expense

$271,358


$279,244


$304,147

Pre-provision net revenue 1

$225,019


$192,908


$220,709

Operating pre-provision net
revenue 1

$221,412


$219,390


$258,687

Earnings per common share -
diluted

$0.70


$0.57


$0.65

Operating earnings per common
share - diluted 1

$0.69


$0.67


$0.79

Dividends paid per share

$0.36


$0.36


$0.36







BALANCE SHEET

3Q24


2Q24


3Q23

Total assets

       $51.9B


       $52.0B


       $52.0B

Loans and leases

       $37.5B


       $37.7B


       $37.2B

Deposits

       $41.5B


       $41.5B


       $41.6B

Book value per common share

$25.17


$23.76


$22.21

Tangible book value per share 1

$17.81


$16.26


$14.22

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. Cost savings identified through the comprehensive review were fully realized as of September 30, 2024, with a portion reserved to fund franchise reinvestment into 2025. Planned reinvestments, some of which have already occurred, include new talent additions, opening de novo locations in targeted growth markets within our existing footprint, and investments in products and technology that create operational efficiencies and revenue growth opportunities. During the third quarter, Columbia's primary subsidiary, Umpqua Bank ("Umpqua"), added new team members with specialty focuses in three of our markets. We also announced the opening of a retail branch in Scottsdale, Arizona, which will be complemented by a planned location in Mesa, Arizona, slated to open in early 2025 as our third branch in the Phoenix metropolitan area. Please refer to the Q3 2024 Earnings Presentation for additional details on our cost savings initiatives and planned reinvestments.

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 nine months ended September 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 nine months ended September 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 $430 million for the third quarter of 2024, up $3 million from the prior quarter. The increase reflects higher income earned on loans, which occurred despite a reduction in accretion income, and relatively stable funding costs prior to the reduction in the federal funds rate in the latter part of September.

Columbia's net interest margin was 3.56% for the third quarter of 2024, unchanged from the second quarter of 2024. A favorable balance sheet funding mix shift into lower-cost deposits and a slight increase in loan yields offset a lower yield on securities, contributing to net interest margin stability between periods. The cost of interest-bearing deposits decreased 2 basis points from the prior quarter to 2.95% for the third quarter of 2024, which compares to 2.90% for the month of September and 2.74% as of September 30, 2024. "Anticipated seasonal deposit inflows and successful small business campaigns contributed to customer balance growth during the third quarter," commented Tory Nixon, President of Umpqua Bank. "We continue to use bundled solutions to generate lower-cost customer deposit balances, not promotional pricing. Overall deposit pricing was reduced ahead of and following the federal funds rate reduction in September."

Columbia's cost of interest-bearing liabilities decreased 2 basis points from the prior quarter to 3.29% for the third quarter of 2024, which compares to 3.26% for the month of September and 3.13% as of September 30, 2024. Please refer to the Q3 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 $66 million for the third quarter of 2024, up $21 million from the prior quarter. The increase was driven by quarterly fluctuations in fair value adjustments and mortgage servicing rights ("MSR") hedging activity, which collectively resulted in a net fair value gain of $7 million in the third quarter compared to a net fair value loss of $10 million in the second quarter, as detailed in our non-GAAP disclosures. Excluding these items, non-interest income was up $5 million2 between periods due primarily to higher swap and mortgage banking income and last quarter's $2 million loss on loan sales, which did not repeat in the third quarter. Treasury management fees, a component of service charges on deposits, increased by 2% from the prior quarter and by 12% for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023.

Non-interest Expense
Non-interest expense was $271 million for the third quarter of 2024, down $8 million from the prior quarter. Excluding merger and restructuring expense, exit and disposal costs, and accruals for the FDIC special assessment, non-interest expense was $268 million[2], up $6 million from the prior quarter, which included an $8 million reversal of prior compensation-related accruals that did not repeat in the third quarter. Salary and wages expense was down $6 million from the prior quarter, due largely to staff reductions that took place throughout the second quarter of 2024, with some of the benefit offset by higher group insurance costs.  Please refer to the Q3 2024 Earnings Presentation for additional expense details.

Balance Sheet
Total consolidated assets were $51.9 billion as of September 30, 2024, down slightly from $52.0 billion as of June 30, 2024. Cash and cash equivalents were $2.1 billion as of September 30, 2024, essentially unchanged from June 30, 2024. Including secured off-balance sheet lines of credit, total available liquidity was $19.4 billion as of September 30, 2024, representing 37% of total assets, 47% of total deposits, and 138% of uninsured deposits. Available-for-sale securities, which are held on balance sheet at fair value, were $8.7 billion as of September 30, 2024, an increase of $174 million relative to June 30, 2024, as the increase in the fair value of the portfolio more than offset paydowns. Please refer to the Q3 2024 Earnings Presentation for additional details related to our securities portfolio and liquidity position.

Gross loans and leases were $37.5 billion as of September 30, 2024, a decrease of $207 million relative to June 30, 2024. "Healthy business activity, like loan payoffs related to business and property sales and project completions, contributed to the quarter's loan contraction," commented Mr. Nixon. "Balances also declined as a result of our strategic decision to allow transactional loans to trend lower as we organically remix the portfolio into relationship-driven commercial loans." Please refer to the Q3 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.

Customer deposit growth of $602 million enabled a 20% reduction in brokered CDs during the third quarter of 2024. Total deposits were $41.5 billion as of September 30, 2024, essentially unchanged from June 30, 2024, as a result of the intentional reduction in wholesale funding balances. Please refer to the Q3 2024 Earnings Presentation for additional details related to deposit characteristics and flows.

Credit Quality
The allowance for credit losses was $438 million, or 1.17% of loans and leases, compared to $439 million, or 1.16% of loans and leases, as of June 30, 2024. The provision for credit losses was $29 million for the third quarter of 2024, and it reflects credit migration trends, charge-off activity, and changes in the economic forecasts used in credit models.

Net charge-offs were 0.31% of average loans and leases (annualized) for the third quarter of 2024, compared to 0.32% for the second quarter of 2024. Net charge-offs in the FinPac portfolio were $20 million in the third quarter, down $5 million from the second quarter as lower delinquencies in the transportation sector of the portfolio resulted in lower charge-off activity. Net charge-offs excluding the FinPac portfolio were $9 million in the third quarter. Non-performing assets were $168 million, or 0.32% of total assets, as of September 30, 2024, compared to $156 million, or 0.30%  of total assets, as of June 30, 2024. Please refer to the Q3 2024 Earnings Presentation for additional details related to the allowance for credit losses and other credit trends.

_____________________________

2 "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for additional information.

Capital
Columbia's book value per common share was $25.17 as of September 30, 2024, compared to $23.76 as of June 30, 2024. The change reflects organic net capital generation and a favorable change in accumulated other comprehensive (loss) income ("AOCI") to $(234) million at September 30, 2024, compared to $(456) million at the prior quarter-end. The change in AOCI is due primarily to a decrease in the tax-effected net unrealized loss on available-for-sale securities to $219 million as of September 30, 2024, compared to $442 million as of June 30, 2024. Tangible book value per common share3 was $17.81 as of September 30, 2024, compared to $16.26 as of June 30, 2024.

Columbia's estimated total risk-based capital ratio was 12.5% and its estimated common equity tier 1 risk-based capital ratio was 10.3% as of September 30, 2024, compared to 12.2% and 10.0%, respectively, as of June 30, 2024. Columbia remains above current "well-capitalized" regulatory minimums. The regulatory capital ratios as of September 30, 2024 are estimates, pending completion and filing of Columbia's regulatory reports. 

Earnings Presentation and Conference Call Information
Columbia's Q3 2024 Earnings Presentation provides additional disclosure. A copy will be available on our investor relations page: www.columbiabankingsystem.com. 

Columbia will host its third quarter 2024 earnings conference call on October 24, 2024, at 8:30 a.m. PT (11:30 a.m. ET). During the call, Columbia's management will provide an update on recent activities and discuss its third quarter 2024 financial results. Participants may register for the call using the link below 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/BIabbcdb79db7641c096e78119393cf06f
Join the audiocast: https://edge.media-server.com/mmc/p/rzbdb27z/
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.

_____________________________

3 "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for additional information.

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; 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.

 

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)

Sep 30, 2024


Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 30, 2023


Seq.

Quarter


Year
over
Year

Interest income:














Loans and leases

$      588,603


$      583,874


$      575,044


$      577,741


$      569,670


1 %


3 %

Interest and dividends on investments:














Taxable

76,074


78,828


75,017


78,010


80,066


(3) %


(5) %

Exempt from federal income tax

6,855


6,904


6,904


6,966


6,929


(1) %


(1) %

Dividends

2,681


2,895


3,707


4,862


4,941


(7) %


(46) %

Temporary investments and interest bearing deposits

24,683


23,035


23,553


24,055


34,407


7 %


(28) %

Total interest income

698,896


695,536


684,225


691,634


696,013


— %


— %

Interest expense:














Deposits

208,027


207,307


198,435


170,659


126,974


— %


64 %

Securities sold under agreement to repurchase and
federal funds purchased

1,121


1,515


1,266


1,226


1,220


(26) %


(8) %

Borrowings

49,636


49,418


51,275


56,066


77,080


— %


(36) %

Junior and other subordinated debentures

9,894


9,847


9,887


10,060


9,864


— %


— %

Total interest expense

268,678


268,087


260,863


238,011


215,138


— %


25 %

Net interest income

430,218


427,449


423,362


453,623


480,875


1 %


(11) %

Provision for credit losses

28,769


31,820


17,136


54,909


36,737


(10) %


(22) %

Non-interest income:














Service charges on deposits

18,549


18,503


16,064


17,349


17,410


— %


7 %

Card-based fees

14,591


14,681


13,183


14,593


15,674


(1) %


(7) %

Financial services and trust revenue

5,083


5,396


4,464


3,011


4,651


(6) %


9 %

Residential mortgage banking revenue, net

6,668


5,848


4,634


4,212


7,103


14 %


(6) %

Gain (loss) on sale of debt securities, net

3


(1)


12


9


4


nm


(25) %

Gain (loss) on equity securities, net

2,272


325


(1,565)


2,636


(2,055)


nm


nm

Gain (loss) on loan and lease sales, net

161


(1,516)


221


1,161


1,871


nm


(91) %

BOLI income

4,674


4,705


4,639


4,331


4,440


(1) %


5 %

Other income (loss)

14,158


(3,238)


8,705


18,231


(5,117)


nm


nm

Total non-interest income

66,159


44,703


50,357


65,533


43,981


48 %


50 %

Non-interest expense:














Salaries and employee benefits

147,268


145,066


154,538


157,572


159,041


2 %


(7) %

Occupancy and equipment, net

45,056


45,147


45,291


48,160


43,070


— %


5 %

Intangible amortization

29,055


29,230


32,091


33,204


29,879


(1) %


(3) %

FDIC assessments

9,332


9,664


14,460


42,510


11,200


(3) %


(17) %

Merger and restructuring expense

2,364


14,641


4,478


7,174


18,938


(84) %


(88) %

Other expenses

38,283


35,496


36,658


48,556


42,019


8 %


(9) %

Total non-interest expense

271,358


279,244


287,516


337,176


304,147


(3) %


(11) %

Income before provision for income taxes

196,250


161,088


169,067


127,071


183,972


22 %


7 %

Provision for income taxes

50,068


40,944


44,987


33,540


48,127


22 %


4 %

Net income

$      146,182


$      120,144


$      124,080


$        93,531


$      135,845


22 %


8 %















Weighted average basic shares outstanding

208,545


208,498


208,260


208,083


208,070


— %


— %

Weighted average diluted shares outstanding

209,454


209,011


208,956


208,739


208,645


— %


— %

Earnings per common share – basic

$           0.70


$           0.58


$           0.60


$           0.45


$           0.65


21 %


8 %

Earnings per common share – diluted

$           0.70


$           0.57


$           0.59


$           0.45


$           0.65


23 %


8 %















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

 

Columbia Banking System, Inc.

Consolidated Statements of Income

(Unaudited)



Nine Months Ended


% Change

($ in thousands, except per share data)


Sep 30, 2024


Sep 30, 2023


Year over
Year

Interest income:







Loans and leases


$          1,747,521


$          1,535,874


14 %

Interest and dividends on investments:







Taxable


229,919


198,831


16 %

Exempt from federal income tax


20,663


17,143


21 %

Dividends


9,283


8,241


13 %

Temporary investments and interest bearing deposits


71,271


87,604


(19) %

Total interest income


2,078,657


1,847,693


13 %

Interest expense:







Deposits


613,769


290,995


111 %

Securities sold under agreement to repurchase and federal funds purchased


3,902


2,697


45 %

Borrowings


150,329


186,848


(20) %

Junior and other subordinated debentures


29,628


27,605


7 %

Total interest expense


797,628


508,145


57 %

Net interest income


1,281,029


1,339,548


(4) %

Provision for credit losses


77,725


158,290


(51) %

Non-interest income:







Service charges on deposits


53,116


48,176


10 %

Card-based fees


42,455


40,670


4 %

Financial services and trust revenue


14,943


10,460


43 %

Residential mortgage banking revenue, net


17,150


12,577


36 %

Gain on sale of debt securities, net


14


4


250 %

Gain (loss) on equity securities, net


1,032


(336)


nm

(Loss) gain on loan and lease sales, net


(1,134)


3,253


(135) %

BOLI income


14,018


11,293


24 %

Other income


19,625


12,297


60 %

Total non-interest income


161,219


138,394


16 %

Non-interest expense:







Salaries and employee benefits


446,872


458,531


(3) %

Occupancy and equipment, net


135,494


135,320


0 %

Intangible amortization


90,376


78,092


16 %

FDIC assessments


33,456


28,892


16 %

Merger and restructuring expense


21,483


164,485


(87) %

Other expenses


110,437


110,204


0 %

Total non-interest expense


838,118


975,524


(14) %

Income before provision for income taxes


526,405


344,128


53 %

Provision for income taxes


135,999


88,944


53 %

Net income


$             390,406


$             255,184


53 %








Weighted average basic shares outstanding


208,435


190,997


9 %

Weighted average diluted shares outstanding


209,137


191,546


9 %

Earnings per common share – basic


$                  1.87


$                  1.34


40 %

Earnings per common share – diluted


$                  1.87


$                  1.33


41 %








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)

Sep 30, 2024


Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 30, 2023


Seq.

Quarter


Year
over
Year

Assets:














Cash and due from banks

$         591,364


$         515,263


$         440,215


$         498,496


$         492,474


15 %


20 %

Interest-bearing cash and temporary
investments

1,519,658


1,553,568


1,760,902


1,664,038


1,911,221


(2) %


(20) %

Investment securities:














Equity and other, at fair value

79,996


77,221


77,203


76,995


73,638


4 %


9 %

Available for sale, at fair value

8,676,807


8,503,000


8,616,545


8,829,870


8,503,986


2 %


2 %

Held to maturity, at amortized cost

2,159


2,203


2,247


2,300


2,344


(2) %


(8) %

Loans held for sale

66,639


56,310


47,201


30,715


60,313


18 %


10 %

Loans and leases

37,503,002


37,709,987


37,642,413


37,441,951


37,170,598


(1) %


1 %

Allowance for credit losses on loans and leases

(420,054)


(418,671)


(414,344)


(440,871)


(416,560)


— %


1 %

Net loans and leases

37,082,948


37,291,316


37,228,069


37,001,080


36,754,038


(1) %


1 %

Restricted equity securities

116,274


116,274


116,274


179,274


168,524


— %


(31) %

Premises and equipment, net

338,107


337,842


336,869


338,970


337,855


— %


— %

Operating lease right-of-use assets

106,224


108,278


113,833


115,811


114,220


(2) %


(7) %

Goodwill

1,029,234


1,029,234


1,029,234


1,029,234


1,029,234


— %


— %

Other intangible assets, net

513,303


542,358


571,588


603,679


636,883


(5) %


(19) %

Residential mortgage servicing rights, at fair
value

101,919


110,039


110,444


109,243


117,640


(7) %


(13) %

Bank-owned life insurance

691,160


686,485


682,293


680,948


648,232


1 %


7 %

Deferred tax asset, net

286,432


361,773


356,031


347,203


469,841


(21) %


(39) %

Other assets

706,375


756,319


735,058


665,740


673,372


(7) %


5 %

Total assets

$     51,908,599


$     52,047,483


$     52,224,006


$     52,173,596


$     51,993,815


— %


— %

Liabilities:














 Deposits














Non-interest-bearing

$     13,534,065


$     13,481,616


$     13,808,554


$     14,256,452


$     15,532,948


— %


(13) %

Interest-bearing

27,980,623


28,041,656


27,897,606


27,350,568


26,091,420


— %


7 %

  Total deposits

41,514,688


41,523,272


41,706,160


41,607,020


41,624,368


— %


— %

Securities sold under agreements to repurchase

183,833


197,860


213,573


252,119


258,383


(7) %


(29) %

Borrowings

3,650,000


3,900,000


3,900,000


3,950,000


3,985,000


(6) %


(8) %

Junior subordinated debentures, at fair value

311,896


310,187


309,544


316,440


331,545


1 %


(6) %

Junior and other subordinated debentures, at
amortized cost

107,725


107,781


107,838


107,895


107,952


— %


— %

Operating lease liabilities

121,298


123,082


129,240


130,576


129,845


(1) %


(7) %

Other liabilities

745,331


908,629


900,406


814,512


924,560


(18) %


(19) %

Total liabilities

46,634,771


47,070,811


47,266,761


47,178,562


47,361,653


(1) %


(2) %

Shareholders' equity:














Common stock

5,812,237


5,807,041


5,802,322


5,802,747


5,798,167


— %


— %

Accumulated deficit

(304,525)


(374,687)


(418,946)


(467,571)


(485,576)


(19) %


(37) %

Accumulated other comprehensive loss

(233,884)


(455,682)


(426,131)


(340,142)


(680,429)


(49) %


(66) %

Total shareholders' equity

5,273,828


4,976,672


4,957,245


4,995,034


4,632,162


6 %


14 %

Total liabilities and shareholders' equity

$     51,908,599


$     52,047,483


$     52,224,006


$     52,173,596


$     51,993,815


— %


— %















Common shares outstanding at period end

209,532


209,459


209,370


208,585


208,575


— %


— %

 

Columbia Banking System, Inc.

Financial Highlights

(Unaudited)



Quarter Ended


% Change



Sep 30,
2024


Jun 30,
2024


Mar 31,
2024


Dec 31,
2023


Sep 30,
2023


Seq.
Quarter


Year over
Year

Per Common Share Data: 















Dividends


$         0.36


$         0.36


$         0.36


$         0.36


$         0.36


— %


— %

Book value


$       25.17


$       23.76


$       23.68


$       23.95


$       22.21


6 %


13 %

Tangible book value (1)


$       17.81


$       16.26


$       16.03


$       16.12


$       14.22


10 %


25 %
















Performance Ratios:















Efficiency ratio (2)


54.56 %


59.02 %


60.57 %


64.81 %


57.82 %


(4.46)


(3.26)

Non-interest expense to average assets (1)


2.08 %


2.16 %


2.22 %


2.58 %


2.28 %


(0.08)


(0.20)

Return on average assets ("ROAA")


1.12 %


0.93 %


0.96 %


0.72 %


1.02 %


0.19


0.10

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


1.72 %


1.49 %


1.44 %


1.39 %


1.65 %


0.23


0.07

Return on average common equity


11.36 %


9.85 %


10.01 %


7.90 %


11.07 %


1.51


0.29

Return on average tangible common equity (1)


16.34 %


14.55 %


14.82 %


12.19 %


16.93 %


1.79


(0.59)
















Performance Ratios - Operating: (1)















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


53.89 %


53.56 %


56.97 %


57.31 %


51.26 %


0.33


2.63

Operating non-interest expense to average assets (1)


2.05 %


2.03 %


2.14 %


2.25 %


2.10 %


0.02


(0.05)

Operating ROAA (1), (6)


1.10 %


1.08 %


1.04 %


0.89 %


1.23 %


0.02


(0.13)

Operating PPNR ROAA (1), (6)


1.69 %


1.70 %


1.55 %


1.62 %


1.94 %


(0.01)


(0.25)

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


11.15 %


11.47 %


10.89 %


9.81 %


13.40 %


(0.32)


(2.25)

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


16.04 %


16.96 %


16.12 %


15.14 %


20.48 %


(0.92)


(4.44)
















Average Balance Sheet Yields, Rates, & Ratios:















Yield on loans and leases


6.22 %


6.20 %


6.13 %


6.13 %


6.08 %


0.02


0.14

Yield on earning assets (2)


5.78 %


5.80 %


5.69 %


5.75 %


5.65 %


(0.02)


0.13

Cost of interest bearing deposits


2.95 %


2.97 %


2.88 %


2.54 %


2.01 %


(0.02)


0.94

Cost of interest bearing liabilities


3.29 %


3.31 %


3.25 %


3.02 %


2.72 %


(0.02)


0.57

Cost of total deposits


1.99 %


2.01 %


1.92 %


1.63 %


1.23 %


(0.02)


0.76

Cost of total funding (3)


2.32 %


2.34 %


2.27 %


2.05 %


1.81 %


(0.02)


0.51

Net interest margin (2)


3.56 %


3.56 %


3.52 %


3.78 %


3.91 %


—


(0.35)

Average interest bearing cash / Average interest earning assets


3.74 %


3.51 %


3.56 %


3.64 %


5.17 %


0.23


(1.43)

Average loans and leases / Average interest earning assets


77.91 %


78.27 %


77.87 %


78.04 %


75.64 %


(0.36)


2.27

Average loans and leases / Average total deposits


90.42 %


90.61 %


90.41 %


89.91 %


90.63 %


(0.19)


(0.21)

Average non-interest bearing deposits / Average total deposits


32.52 %


32.54 %


33.29 %


35.88 %


38.55 %


(0.02)


(6.03)

Average total deposits / Average total funding (3)


90.25 %


90.15 %


90.09 %


90.02 %


86.66 %


0.10


3.59
















Select Credit & Capital Ratios:















Non-performing loans and leases to total loans and leases


0.44 %


0.41 %


0.38 %


0.30 %


0.28 %


0.03


0.16

Non-performing assets to total assets


0.32 %


0.30 %


0.28 %


0.22 %


0.20 %


0.02


0.12

Allowance for credit losses to loans and leases


1.17 %


1.16 %


1.16 %


1.24 %


1.18 %


0.01


(0.01)

Total risk-based capital ratio (4)


12.5 %


12.2 %


12.0 %


11.9 %


11.6 %


0.30


0.90

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


10.3 %


10.0 %


9.8 %


9.6 %


9.5 %


0.30


0.80



(1)

See GAAP to Non-GAAP Reconciliation.

(2)

Tax-exempt interest was 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)



Nine Months Ended


% Change



Sep 30, 2024


Sep 30, 2023


Year over Year

Per Common Share Data:







Dividends


$                      1.08


$                      1.07


0.93 %








Performance Ratios:







Efficiency ratio (2)


57.99 %


65.87 %


(7.88)

Non-interest expense to average assets (1)


2.15 %


2.68 %


(0.53)

Return on average assets


1.00 %


0.70 %


0.30

PPNR ROAA (1)


1.55 %


1.38 %


0.17

Return on average common equity


10.42 %


7.77 %


2.65

Return on average tangible common equity (1)


15.27 %


11.21 %


4.06








Performance Ratios - Operating: (1)







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


54.80 %


52.70 %


2.10

Operating non-interest expense to average assets (1)


2.07 %


2.21 %


(0.14)

Operating ROAA (1), (5)


1.07 %


1.11 %


(0.04)

Operating PPNR ROAA (1), (5)


1.65 %


1.91 %


(0.26)

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


11.17 %


12.34 %


(1.17)

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


16.36 %


17.80 %


(1.44)








Average Balance Sheet Yields, Rates, & Ratios:







Yield on loans and leases


6.18 %


5.88 %


0.30

Yield on earning assets (2)


5.76 %


5.46 %


0.30

Cost of interest bearing deposits


2.93 %


1.68 %


1.25

Cost of interest bearing liabilities


3.28 %


2.38 %


0.90

Cost of total deposits


1.97 %


1.02 %


0.95

Cost of total funding (3)


2.31 %


1.56 %


0.75

Net interest margin (2)


3.55 %


3.96 %


(0.41)

Average interest bearing cash / Average interest earning assets


3.61 %


5.05 %


(1.44)

Average loans and leases / Average interest earning assets


78.02 %


76.91 %


1.11

Average loans and leases / Average total deposits


90.48 %


91.42 %


(0.94)

Average non-interest bearing deposits / Average total deposits


32.78 %


39.28 %


(6.50)

Average total deposits / Average total funding (3)


90.16 %


87.53 %


2.63








(1)

See GAAP to Non-GAAP Reconciliation.

(2)

Tax-exempt interest was 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)


Sep 30, 2024


Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 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

$    6,391,806


$    6,407,351


$    6,557,768


$    6,482,940


$    6,490,638


— %


(2) %

 Owner occupied term, net

5,210,485


5,230,511


5,231,676


5,195,605


5,235,227


— %


— %

 Multifamily, net

5,779,737


5,868,848


5,828,960


5,704,734


5,684,495


(2) %


2 %

 Construction & development, net

1,988,923


1,946,693


1,728,652


1,747,302


1,669,918


2 %


19 %

 Residential development, net

244,579


269,106


284,117


323,899


354,922


(9) %


(31) %

Commercial:














 Term, net

5,429,209


5,559,548


5,544,450


5,536,765


5,437,915


(2) %


— %

 Lines of credit & other, net

2,640,669


2,558,633


2,491,557


2,430,127


2,353,548


3 %


12 %

 Leases & equipment finance, net

1,670,427


1,701,943


1,706,759


1,729,512


1,728,991


(2) %


(3) %

Residential:














 Mortgage, net

5,944,734


5,992,163


6,128,884


6,157,166


6,121,838


(1) %


(3) %

 Home equity loans & lines, net

2,017,336


1,982,786


1,950,421


1,938,166


1,899,948


2 %


6 %

   Consumer & other, net

185,097


192,405


189,169


195,735


193,158


(4) %


(4) %

 Total loans and leases, net of deferred fees and
costs

$  37,503,002


$  37,709,987


$  37,642,413


$  37,441,951


$  37,170,598


(1) %


1 %















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 %


5 %


4 %





 Residential development, net

1 %


1 %


1 %


1 %


1 %





Commercial:














 Term, net

15 %


15 %


15 %


15 %


15 %





 Lines of credit & other, net

7 %


6 %


6 %


6 %


6 %





 Leases & equipment finance, net

4 %


5 %


5 %


5 %


5 %





Residential:














 Mortgage, net

16 %


16 %


16 %


16 %


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)


Sep 30, 2024


Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 30, 2023


% Change

($ in thousands)

Amount


Amount


Amount


Amount


Amount


Seq.
Quarter


Year over
Year

Deposits:














Demand, non-interest bearing

$  13,534,065


$  13,481,616


$  13,808,554


$  14,256,452


$  15,532,948


0 %


(13) %

Demand, interest bearing

8,444,424


8,195,284


8,095,211


8,044,432


6,898,831


3 %


22 %

Money market

11,351,066


10,927,813


10,822,498


10,324,454


10,349,217


4 %


10 %

Savings

2,450,924


2,508,598


2,640,060


2,754,113


3,018,706


(2) %


(19) %

Time

5,734,209


6,409,961


6,339,837


6,227,569


5,824,666


(11) %


(2) %

Total

$  41,514,688


$  41,523,272


$  41,706,160


$  41,607,020


$  41,624,368


— %


— %















Total core deposits (1)

$  37,774,870


$  37,159,069


$  37,436,569


$  37,423,402


$  37,597,830


2 %


0 %















Deposit mix:














Demand, non-interest bearing

33 %


33 %


34 %


34 %


37 %





Demand, interest bearing

20 %


20 %


19 %


19 %


17 %





Money market

27 %


26 %


26 %


25 %


25 %





Savings

6 %


6 %


6 %


7 %


7 %





Time

14 %


15 %


15 %


15 %


14 %





Total

100 %


100 %


100 %


100 %


100 %






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

 

Columbia Banking System, Inc.

Credit Quality – Non-performing Assets

 (Unaudited)


Quarter Ended


% Change

($ in thousands)

Sep 30, 2024


Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 30, 2023


Seq.
Quarter


Year over
Year

Non-performing assets: (1)














Loans and leases on non-accrual status:















Commercial real estate, net

$     37,332


$     37,584


$     39,736


$     28,689


$     26,053


(1) %


43 %


Commercial, net

61,464


54,986


58,960


45,682


44,341


12 %


39 %


Total loans and leases on non-accrual status

98,796


92,570


98,696


74,371


70,394


7 %


40 %

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















Commercial real estate, net

136


—


253


870


71


nm


92 %


Commercial, net

6,012


5,778


10,733


8,232


8,606


4 %


(30) %


Residential, net (2)

59,961


54,525


31,916


29,102


25,180


10 %


138 %


Consumer & other, net

317


220


437


326


240


44 %


32 %


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

66,426


60,523


43,339


38,530


34,097


10 %


95 %

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

165,222


153,093


142,035


112,901


104,491


8 %


58 %

Other real estate owned

2,395


2,839


1,762


1,036


1,170


(16) %


105 %

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

$    167,617


$    155,932


$    143,797


$    113,937


$    105,661


7 %


59 %
















Loans and leases past due 31-89 days

$     67,310


$     85,998


$    109,673


$     85,235


$     82,918


(22) %


(19) %

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

0.18 %


0.23 %


0.29 %


0.23 %


0.22 %


(0.05)


(0.04)

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

0.44 %


0.41 %


0.38 %


0.30 %


0.28 %


0.03


0.16

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

0.32 %


0.30 %


0.28 %


0.22 %


0.20 %


0.02


0.12
















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 $65.8 million, $64.6 million, $43.0 million, $31.6 million, and $26.9 million at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 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 $3.7 million, $1.0 million, $1.6 million, $1.0 million, and $700,000 at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.

 

Columbia Banking System, Inc.

Credit Quality – Allowance for Credit Losses

(Unaudited)



Quarter Ended


% Change

($ in thousands)

Sep 30, 2024


Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 30, 2023


Seq.
Quarter


Year over
Year

Allowance for credit losses on loans and leases (ACLLL)














Balance, beginning of period

$    418,671


$    414,344


$    440,871


$    416,560


$    404,603


1 %


3 %

Provision for credit losses on loans and leases

30,498


34,760


17,476


53,183


35,082


(12) %


(13) %

Charge-offs















Commercial real estate, net

—


(585)


(161)


(629)


—


nm


nm


Commercial, net

(32,645)


(33,561)


(47,232)


(31,949)


(26,629)


(3) %


23 %


Residential, net

(936)


(504)


(490)


(89)


(206)


86 %


354 %


Consumer & other, net

(1,395)


(1,551)


(1,870)


(1,841)


(1,884)


(10) %


(26) %


Total charge-offs

(34,976)


(36,201)


(49,753)


(34,508)


(28,719)


(3) %


22 %

Recoveries















Commercial real estate, net

44


551


358


35


31


(92) %


42 %


Commercial, net

5,258


4,198


4,732


4,414


4,901


25 %


7 %


Residential, net

143


411


170


781


156


(65) %


(8) %


Consumer & other, net

416


608


490


406


506


(32) %


(18) %


Total recoveries

5,861


5,768


5,750


5,636


5,594


2 %


5 %

Net (charge-offs) recoveries















Commercial real estate, net

44


(34)


197


(594)


31


nm


42 %


Commercial, net

(27,387)


(29,363)


(42,500)


(27,535)


(21,728)


(7) %


26 %


Residential, net

(793)


(93)


(320)


692


(50)


nm


nm


Consumer & other, net

(979)


(943)


(1,380)


(1,435)


(1,378)


4 %


(29) %


Total net charge-offs

(29,115)


(30,433)


(44,003)


(28,872)


(23,125)


(4) %


26 %

Balance, end of period

$    420,054


$    418,671


$    414,344


$    440,871


$    416,560


0 %


1 %

Reserve for unfunded commitments














Balance, beginning of period

$     19,928


$     22,868


$     23,208


$     21,482


$     19,827


(13) %


1 %

(Recapture) provision  for credit losses on unfunded
commitments

(1,729)


(2,940)


(340)


1,726


1,655


(41) %


(204) %

Balance, end of period

18,199


19,928


22,868


23,208


21,482


(9) %


(15) %

Total Allowance for credit losses (ACL)

$    438,253


$    438,599


$    437,212


$    464,079


$    438,042


0 %


— %















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

0.31 %


0.32 %


0.47 %


0.31 %


0.25 %


(0.01)


0.06

Recoveries to gross charge-offs

16.76 %


15.93 %


11.56 %


16.33 %


19.48 %


0.83


(2.72)

ACLLL to loans and leases

1.12 %


1.11 %


1.10 %


1.18 %


1.12 %


0.01


—

ACL to loans and leases

1.17 %


1.16 %


1.16 %


1.24 %


1.18 %


0.01


(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)



Nine Months Ended


% Change

($ in thousands)


Sep 30, 2024


Sep 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)


82,734


156,796


(47) %

Charge-offs








Commercial real estate, net


(746)


(174)


329 %


Commercial, net


(113,438)


(77,913)


46 %


Residential, net


(1,930)


(458)


321 %


Consumer & other, net


(4,816)


(3,921)


23 %


Total charge-offs


(120,930)


(82,466)


47 %

Recoveries








Commercial real estate, net


953


298


220 %


Commercial, net


14,188


12,470


14 %


Residential, net


724


342


112 %


Consumer & other, net


1,514


1,493


1 %


Total recoveries


17,379


14,603


19 %

Net (charge-offs) recoveries








Commercial real estate, net


207


124


67 %


Commercial, net


(99,250)


(65,443)


52 %


Residential, net


(1,206)


(116)


nm


Consumer & other, net


(3,302)


(2,428)


36 %


Total net charge-offs


(103,551)


(67,863)


53 %

Balance, end of period


$          420,054


$          416,560


1 %

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


(5,009)


1,494


(435) %

Balance, end of period


18,199


21,482


(15) %

Total Allowance for credit losses (ACL)


$          438,253


$          438,042


0 %








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


0.37 %


0.26 %


0.11

Recoveries to gross charge-offs


14.37 %


17.71 %


(3.34)









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


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

 

Columbia Banking System, Inc.

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

(Unaudited)


Quarter Ended


September 30, 2024


June 30, 2024


September 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

$        67,764


$     1,122


6.62 %


$      101,516


$     1,628


6.42 %


$      199,855


$     1,741


3.49 %

Loans and leases (1)

37,543,561


587,481


6.22 %


37,663,396


582,246


6.20 %


37,050,518


567,929


6.08 %

Taxable securities

7,943,391


78,755


3.97 %


7,839,202


81,723


4.17 %


8,356,165


85,007


4.07 %

Non-taxable securities (2)

828,362


7,821


3.78 %


825,030


7,889


3.82 %


844,417


8,085


3.83 %

Temporary investments and
interest-bearing cash

1,802,396


24,683


5.45 %


1,688,602


23,035


5.49 %


2,530,150


34,407


5.40 %

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

48,185,474


$ 699,862


5.78 %


48,117,746


$ 696,521


5.80 %


48,981,105


$ 697,169


5.65 %

Goodwill and other intangible assets

1,559,696






1,588,239






1,684,093





Other assets

2,263,847






2,275,570






2,346,163





Total assets

$  52,009,017






$  51,981,555






$  53,011,361





INTEREST-BEARING LIABILITIES:


















Interest-bearing demand deposits

$   8,312,685


$   57,237


2.74 %


$   8,147,516


$   53,890


2.66 %


$   6,578,849


$   25,209


1.52 %

Money market deposits

11,085,499


77,948


2.80 %


10,849,259


76,466


2.83 %


10,249,028


50,039


1.94 %

Savings deposits

2,480,170


1,085


0.17 %


2,555,458


929


0.15 %


3,109,779


1,253


0.16 %

Time deposits

6,140,692


71,757


4.65 %


6,488,923


76,022


4.71 %


5,184,089


50,473


3.86 %

Total interest-bearing deposits

28,019,046


208,027


2.95 %


28,041,156


207,307


2.97 %


25,121,745


126,974


2.01 %

Repurchase agreements and federal
funds purchased

194,805


1,121


2.29 %


224,973


1,515


2.71 %


268,444


1,220


1.80 %

Borrowings

3,873,913


49,636


5.10 %


3,900,000


49,418


5.10 %


5,603,207


77,080


5.46 %

Junior and other subordinated debentures

417,393


9,894


9.43 %


417,329


9,847


9.49 %


420,582


9,864


9.30 %

Total interest-bearing liabilities

32,505,157


$ 268,678


3.29 %


32,583,458


$ 268,087


3.31 %


31,413,978


$ 215,138


2.72 %

Non-interest-bearing deposits

13,500,235






13,526,483






15,759,720





Other liabilities

885,033






963,375






970,688





Total liabilities

46,890,425






47,073,316






48,144,386





Common equity

5,118,592






4,908,239






4,866,975





Total liabilities and shareholders'
equity

$  52,009,017






$  51,981,555






$  53,011,361





NET INTEREST INCOME (2)



$ 431,184






$ 428,434






$ 482,031



NET INTEREST SPREAD (2)





2.49 %






2.49 %






2.93 %

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





3.56 %






3.56 %






3.91 %



(1)

Non-accrual loans and leases are included in the average balance.   

(2)

Tax-exempt income was adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $966,000 for the three months ended September 30, 2024, as compared to $985,000 for the three months ended June 30, 2024 and $1.2 million for the three months ended September 30, 2023. 

 

Columbia Banking System, Inc.

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

(Unaudited)


Nine Months Ended


September 30, 2024


September 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

$           66,614


$         3,275


6.56 %


$      100,753


$         3,222


4.26 %

Loans and leases (1)

37,601,142


1,744,246


6.18 %


34,765,319


1,532,652


5.88 %

Taxable securities

7,954,491


239,202


4.01 %


7,336,862


207,072


3.76 %

Non-taxable securities (2)

834,887


23,596


3.77 %


717,064


20,163


3.75 %

Temporary investments and interest-bearing cash

1,737,501


71,271


5.48 %


2,283,461


87,604


5.13 %

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

48,194,635


$   2,081,590


5.76 %


45,203,459


$   1,850,713


5.46 %

Goodwill and other intangible assets

1,588,916






1,345,833





Other assets

2,241,239






2,159,775





Total assets

$     52,024,790






$  48,709,067





INTEREST-BEARING LIABILITIES:












Interest-bearing demand deposits

$      8,165,718


$     162,505


2.66 %


$   5,829,737


$       52,301


1.20 %

Money market deposits

10,849,807


226,911


2.79 %


9,857,001


123,980


1.68 %

Savings deposits

2,574,318


2,729


0.14 %


3,032,653


2,686


0.12 %

Time deposits

6,344,727


221,624


4.67 %


4,371,643


112,028


3.43 %

Total interest-bearing deposits

27,934,570


613,769


2.93 %


23,091,034


290,995


1.68 %

Repurchase agreements and federal funds purchased

217,067


3,902


2.40 %


277,896


2,697


1.30 %

Borrowings

3,898,175


150,329


5.15 %


4,726,335


186,848


5.29 %

Junior and other subordinated debentures

419,409


29,628


9.44 %


414,855


27,605


8.90 %

Total interest-bearing liabilities

32,469,221


$     797,628


3.28 %


28,510,120


$     508,145


2.38 %

Non-interest-bearing deposits

13,622,319






14,937,028





Other liabilities

928,597






872,370





Total liabilities

47,020,137






44,319,518





Common equity

5,004,653






4,389,549





Total liabilities and shareholders' equity

$     52,024,790






$  48,709,067





NET INTEREST INCOME (2)



$   1,283,962






$   1,342,568



NET INTEREST SPREAD (2)





2.48 %






3.08 %

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





3.55 %






3.96 %













(1)

Non-accrual loans and leases are included in the average balance.   

(2)

Tax-exempt income was adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $2.9 million for the nine months ended September 30, 2024, as compared to $3.0 million for the same period in 2023. 

 

Columbia Banking System, Inc.

Residential Mortgage Banking Activity

(Unaudited)


Quarter Ended


% Change

($ in thousands)

Sep 30, 2024


Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 30, 2023


Seq.
Quarter


Year over
Year

Residential mortgage banking revenue:














Origination and sale

$       5,225


$       3,452


$       2,920


$        2,686


$        2,442


51 %


114 %

Servicing

6,012


5,952


6,021


5,966


8,887


1 %


(32) %

Change in fair value of MSR asset:














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

(3,127)


(3,183)


(3,153)


(3,215)


(4,801)


(2) %


(35) %

Changes due to valuation inputs or assumptions

(6,540)


1,238


3,117


(6,251)


5,308


nm


(223) %

MSR hedge gain (loss)

5,098


(1,611)


(4,271)


5,026


(4,733)


nm


nm

Total

$       6,668


$       5,848


$       4,634


$        4,212


$        7,103


14 %


(6) %















Closed loan volume for-sale

$    161,094


$    140,875


$     86,903


$      87,033


$    103,333


14 %


56 %

Gain on sale margin

3.24 %


2.45 %


3.36 %


3.09 %


2.36 %


0.79


0.88















Residential mortgage servicing rights:














Balance, beginning of period

$    110,039


$    110,444


$    109,243


$    117,640


$    172,929


— %


(36) %

Additions for new MSR capitalized

1,547


1,540


1,237


920


1,658


— %


(7) %

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

(3,127)


(3,183)


(3,153)


(3,215)


(4,801)


(2) %


(35) %

Changes due to valuation inputs or assumptions

(6,540)


1,238


3,117


(6,251)


5,308


nm


(223) %

Balance, end of period

$    101,919


$    110,039


$    110,444


$    109,243


$    117,640


(7) %


(13) %















Residential mortgage loans serviced for others

$ 7,965,538


$ 8,120,046


$ 8,081,039


$  8,175,664


$  8,240,950


(2) %


(3) %

MSR as % of serviced portfolio

1.28 %


1.36 %


1.37 %


1.34 %


1.43 %


(0.08)


(0.15)















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

 

Columbia Banking System, Inc.

Residential Mortgage Banking Activity

(Unaudited)


Nine Months Ended


% Change

($ in thousands)

Sep 30, 2024


Sep 30, 2023


Year over
Year

Residential mortgage banking revenue:






Origination and sale

$          11,597


$            9,195


26 %

Servicing

17,985


27,451


(34) %

Change in fair value of MSR asset:






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

(9,463)


(14,479)


(35) %

Changes due to valuation inputs or assumptions

(2,185)


129


nm

MSR hedge loss

(784)


(9,719)


(92) %

Total

$          17,150


$          12,577


36 %







Closed loan volume for-sale

$        388,872


$        354,535


10 %

Gain on sale margin

2.98 %


2.59 %


0.39







Residential mortgage servicing rights:






Balance, beginning of period

$        109,243


$        185,017


(41) %

Additions for new MSR capitalized

4,324


4,427


(2) %

Sale of MSR assets

—


(57,454)


nm

Change in fair value of MSR asset:






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

(9,463)


(14,479)


(35) %

Changes due to valuation inputs or assumptions

(2,185)


129


nm

Balance, end of period

$        101,919


$        117,640


(13) %







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)



Sep 30, 2024


Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 30, 2023


Seq.
Quarter


Year
over
Year

Total shareholders' equity

a


$     5,273,828


$     4,976,672


$     4,957,245


$     4,995,034


$     4,632,162


6 %


14 %

Less: Goodwill



1,029,234


1,029,234


1,029,234


1,029,234


1,029,234


— %


— %

Less: Other intangible assets, net



513,303


542,358


571,588


603,679


636,883


(5) %


(19) %

Tangible common shareholders' equity

b


$     3,731,291


$     3,405,080


$     3,356,423


$     3,362,121


$     2,966,045


10 %


26 %

















Total assets

c


$  51,908,599


$  52,047,483


$  52,224,006


$  52,173,596


$  51,993,815


— %


— %

Less: Goodwill



1,029,234


1,029,234


1,029,234


1,029,234


1,029,234


— %


— %

Less: Other intangible assets, net



513,303


542,358


571,588


603,679


636,883


(5) %


(19) %

Tangible assets

d


$  50,366,062


$  50,475,891


$  50,623,184


$  50,540,683


$  50,327,698


— %


— %

Common shares outstanding at period end

e


209,532


209,459


209,370


208,585


208,575


— %


— %

















Total shareholders' equity to total assets ratio

a / c


10.16 %


9.56 %


9.49 %


9.57 %


8.91 %


0.60


1.25

Tangible common equity to tangible assets ratio

b / d


7.41 %


6.75 %


6.63 %


6.65 %


5.89 %


0.66


1.52

Book value per common share

a / e


$              25.17


$              23.76


$              23.68


$              23.95


$              22.21


6 %


13 %

Tangible book value per common share

b / e


$              17.81


$              16.26


$              16.03


$              16.12


$              14.22


10 %


25 %

 

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation - Continued

(Unaudited)




Quarter Ended


% Change

($ in thousands)



Sep 30, 2024


Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 30, 2023


Seq.
Quarter


Year
over
Year

Non-Interest Income Adjustments
















Gain (loss) on sale of debt securities, net



$                          3


$                        (1)


$                       12


$                          9


$                          4


nm


(25) %

Gain (loss) on equity securities, net



2,272


325


(1,565)


2,636


(2,055)


nm


nm

(Loss) gain on swap derivatives



(3,596)


424


1,197


(8,042)


5,700


nm


(163) %

Change in fair value of certain loans held for
investment



9,365


(10,114)


(2,372)


19,354


(19,247)


nm


nm

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



(6,540)


1,238


3,117


(6,251)


5,308


nm


(223) %

MSR hedge gain (loss)



5,098


(1,611)


(4,271)


5,026


(4,733)


nm


nm

Total non-interest income adjustments

a


$                 6,602


$               (9,739)


$               (3,882)


$               12,732


$            (15,023)


nm


nm

















Non-Interest Expense Adjustments
















Merger and restructuring expense



$                 2,364


$               14,641


$                 4,478


$                 7,174


$               18,938


(84) %


(88) %

Exit and disposal costs



631


1,218


1,272


2,791


4,017


(48) %


(84) %

    FDIC special assessment (2)



—


884


4,848


32,923


—


(100) %


nm

Total non-interest expense adjustments

b


$                 2,995


$               16,743


$               10,598


$               42,888


$               22,955


(82) %


(87) %

















Net interest income

c


$            430,218


$            427,449


$            423,362


$            453,623


$            480,875


1 %


(11) %

















Non-interest income (GAAP)

d


$               66,159


$               44,703


$               50,357


$               65,533


$               43,981


48 %


50 %

Less: Non-interest income adjustments

a


(6,602)


9,739


3,882


(12,732)


15,023


(168) %


(144) %

Operating non-interest income (non-GAAP)

e


$               59,557


$               54,442


$               54,239


$               52,801


$               59,004


9 %


1 %

















Revenue (GAAP)

f=c+d


$            496,377


$            472,152


$            473,719


$            519,156


$            524,856


5 %


(5) %

Operating revenue (non-GAAP)

g=c+e


$            489,775


$            481,891


$            477,601


$            506,424


$            539,879


2 %


(9) %

















Non-interest expense (GAAP)

h


$            271,358


$            279,244


$            287,516


$            337,176


$            304,147


(3) %


(11) %

Less: Non-interest expense adjustments

b


(2,995)


(16,743)


(10,598)


(42,888)


(22,955)


(82) %


(87) %

Operating non-interest expense (non-GAAP)

i


$            268,363


$            262,501


$            276,918


$            294,288


$            281,192


2 %


(5) %

















Net income (GAAP)

j


$            146,182


$            120,144


$            124,080


$               93,531


$            135,845


22 %


8 %

Provision for income taxes



50,068


40,944


44,987


33,540


48,127


22 %


4 %

Income before provision for income taxes



196,250


161,088


169,067


127,071


183,972


22 %


7 %

Provision for credit losses



28,769


31,820


17,136


54,909


36,737


(10) %


(22) %

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

k


225,019


192,908


186,203


181,980


220,709


17 %


2 %

Less: Non-interest income adjustments

a


(6,602)


9,739


3,882


(12,732)


15,023


(168) %


(144) %

Add: Non-interest expense adjustments

b


2,995


16,743


10,598


42,888


22,955


(82) %


(87) %

Operating PPNR (non-GAAP)

l


$            221,412


$            219,390


$            200,683


$            212,136


$            258,687


1 %


(14) %

















Net income (GAAP)

j


$            146,182


$            120,144


$            124,080


$               93,531


$            135,845


22 %


8 %

Less: Non-interest income adjustments

a


(6,602)


9,739


3,882


(12,732)


15,023


(168) %


(144) %

Add: Non-interest expense adjustments

b


2,995


16,743


10,598


42,888


22,955


(82) %


(87) %

Tax effect of adjustments



902


(6,621)


(3,620)


(7,539)


(9,482)


nm


nm

Operating net income (non-GAAP)

m


$            143,477


$            140,005


$            134,940


$            116,148


$            164,341


2 %


(13) %

















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)



Sep 30, 2024


Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 30, 2023


Seq.
Quarter


Year
over
Year

Average assets

n


$  52,009,017


$  51,981,555


$  52,083,973


$ 51,832,356


$  53,011,361


— %


(2) %

Less: Average goodwill and other intangible assets,
net



1,559,696


1,588,239


1,619,134


1,652,282


1,684,093


(2) %


(7) %

Average tangible assets

o


$  50,449,321


$  50,393,316


$  50,464,839


$ 50,180,074


$  51,327,268


— %


(2) %

















Average common shareholders' equity

p


$     5,118,592


$     4,908,239


$     4,985,875


$    4,695,736


$     4,866,975


4 %


5 %

Less: Average goodwill and other intangible assets,
net



1,559,696


1,588,239


1,619,134


1,652,282


1,684,093


(2) %


(7) %

Average tangible common equity

q


$     3,558,896


$     3,320,000


$     3,366,741


$    3,043,454


$     3,182,882


7 %


12 %

















Weighted average basic shares outstanding

r


208,545


208,498


208,260


208,083


208,070


— %


— %

Weighted average diluted shares outstanding

s


209,454


209,011


208,956


208,739


208,645


— %


— %

















Select Per-Share & Performance Metrics
















Earnings-per-share - basic

j / r


$                0.70


$                0.58


$                0.60


$               0.45


$                0.65


21 %


8 %

Earnings-per-share - diluted

j / s


$                0.70


$                0.57


$                0.59


$               0.45


$                0.65


23 %


8 %

Efficiency ratio (1)

h / f


54.56 %


59.02 %


60.57 %


64.81 %


57.82 %


(4.46)


(3.26)

Non-interest expense to average assets

h / n


2.08 %


2.16 %


2.22 %


2.58 %


2.28 %


(0.08)


(0.20)

Return on average assets

j / n


1.12 %


0.93 %


0.96 %


0.72 %


1.02 %


0.19


0.10

Return on average tangible assets

j / o


1.15 %


0.96 %


0.99 %


0.74 %


1.05 %


0.19


0.10

PPNR return on average assets

k / n


1.72 %


1.49 %


1.44 %


1.39 %


1.65 %


0.23


0.07

Return on average common equity

j / p


11.36 %


9.85 %


10.01 %


7.90 %


11.07 %


1.51


0.29

Return on average tangible common equity

j / q


16.34 %


14.55 %


14.82 %


12.19 %


16.93 %


1.79


(0.59)

















Operating Per-Share & Performance Metrics
















Operating earnings-per-share - basic  (2)

m / r


$                0.69


$                0.67


$                0.65


$               0.56


$                0.79


3 %


(13) %

Operating earnings-per-share - diluted (2)

m / s


$                0.69


$                0.67


$                0.65


$               0.56


$                0.79


3 %


(13) %

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

u / y


53.89 %


53.56 %


56.97 %


57.31 %


51.26 %


0.33


2.63

Operating non-interest expense to average assets

i / n


2.05 %


2.03 %


2.14 %


2.25 %


2.10 %


0.02


(0.05)

Operating return on average assets (2)

m / n


1.10 %


1.08 %


1.04 %


0.89 %


1.23 %


0.02


(0.13)

Operating return on average tangible assets (2)

m / o


1.13 %


1.12 %


1.08 %


0.92 %


1.27 %


0.01


(0.14)

Operating PPNR return on average assets (2)

l / n


1.69 %


1.70 %


1.55 %


1.62 %


1.94 %


(0.01)


(0.25)

Operating return on average common equity (2)

m / p


11.15 %


11.47 %


10.89 %


9.81 %


13.40 %


(0.32)


(2.25)

Operating return on average tangible common
equity (2)

m / q


16.04 %


16.96 %


16.12 %


15.14 %


20.48 %


(0.92)


(4.44)



(1)

Tax-exempt interest was 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)



Sep 30, 2024


Jun 30, 2024


Mar 31, 2024


Dec 31, 2023


Sep 30, 2023


Seq.
Quarter


Year
over
Year

Non-interest expense (GAAP)

h


$        271,358


$        279,244


$        287,516


$        337,176


$        304,147


(3) %


(11) %

Less: Non-interest expense adjustments

b


(2,995)


(16,743)


(10,598)


(42,888)


(22,955)


(82) %


(87) %

Operating non-interest expense (non-GAAP)

i


268,363


262,501


276,918


294,288


281,192


2 %


(5) %

Less: B&O taxes

t


(3,248)


(3,183)


(3,223)


(2,727)


(3,275)


2 %


(1) %

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

u


$        265,115


$        259,318


$        273,695


$        291,561


$        277,917


2 %


(5) %

















Net interest income (tax equivalent) (1)

v


$        431,184


$        428,434


$        424,344


$        454,730


$        482,031


1 %


(11) %

Non-interest income (GAAP)

d


66,159


44,703


50,357


65,533


43,981


48 %


50 %

Add: BOLI tax equivalent adjustment (1)

w


1,248


1,291


1,809


1,182


1,178


(3) %


6 %

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

x


498,591


474,428


476,510


521,445


527,190


5 %


(5) %

Less: Non-interest income adjustments

a


(6,602)


9,739


3,882


(12,732)


15,023


(168) %


(144) %

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

y


$        491,989


$        484,167


$        480,392


$        508,713


$        542,213


2 %


(9) %

















Efficiency ratio (1)

h / f


54.56 %


59.02 %


60.57 %


64.81 %


57.82 %


(4.46)


(3.26)

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

u / y


53.89 %


53.56 %


56.97 %


57.31 %


51.26 %


0.33


2.63



(1)

Tax-exempt income was 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)




Nine Months Ended


% Change

($ in thousands)



Sep 30, 2024


Sep 30, 2023


Year over Year

Non-Interest Income Adjustments








Gain on sale of debt securities, net



$                                   14


$                                      4


250 %

Gain (loss) on equity securities, net



1,032


(336)


nm

(Loss) gain on swap derivatives



(1,975)


3,445


(157) %

Change in fair value of certain loans held for investment



(3,121)


(16,724)


(81) %

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



(2,185)


129


nm

   MSR hedge loss



(784)


(9,719)


(92) %

Total non-interest income adjustments

a


$                           (7,019)


$                        (23,201)


(70) %









Non-Interest Expense Adjustments








Merger and restructuring expense



$                           21,483


$                        164,485


(87) %

Exit and disposal costs



3,121


7,427


(58) %

    FDIC special assessment (2)



5,732


—


nm

Total non-interest expense adjustments

b


$                           30,336


$                        171,912


(82) %









Net interest income

c


$                    1,281,029


$                    1,339,548


(4) %









Non-interest income (GAAP)

d


$                        161,219


$                        138,394


16 %

Less: Non-interest income adjustments

a


7,019


23,201


(70) %

Operating non-interest income (non-GAAP)

e


$                        168,238


$                        161,595


4 %









Revenue (GAAP)

f=c+d


$                    1,442,248


$                    1,477,942


(2) %

Operating revenue (non-GAAP)

g=c+e


$                    1,449,267


$                    1,501,143


(3) %









Non-interest expense (GAAP)

h


$                        838,118


$                        975,524


(14) %

Less: Non-interest expense adjustments

b


(30,336)


(171,912)


(82) %

Operating non-interest expense (non-GAAP)

i


$                        807,782


$                        803,612


1 %









Net income (GAAP)

j


$                        390,406


$                        255,184


53 %

Provision for income taxes



135,999


88,944


53 %

Income before provision for income taxes



526,405


344,128


53 %

Provision for credit losses



77,725


158,290


(51) %

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

k


604,130


502,418


20 %

Less: Non-interest income adjustments

a


7,019


23,201


(70) %

Add: Non-interest expense adjustments

b


30,336


171,912


(82) %

Operating PPNR (non-GAAP)

l


$                        641,485


$                        697,531


(8) %









Net income (GAAP)

j


$                        390,406


$                        255,184


53 %

Less: Non-interest income adjustments

a


7,019


23,201


(70) %

Add: Non-interest expense adjustments

b


30,336


171,912


(82) %

Tax effect of adjustments



(9,339)


(45,028)


(79) %

Operating net income (non-GAAP)

m


$                        418,422


$                        405,269


3 %








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

Average assets

n


$                  52,024,790


$                  48,709,067


7 %

Less: Average goodwill and other intangible assets, net



1,588,916


1,345,833


18 %

Average tangible assets

o


$                  50,435,874


$                  47,363,234


6 %









Average common shareholders' equity

p


$                    5,004,653


$                    4,389,549


14 %

Less: Average goodwill and other intangible assets, net



1,588,916


1,345,833


18 %

Average tangible common equity

q


$                    3,415,737


$                    3,043,716


12 %









Weighted average basic shares outstanding

r


208,435


190,997


9 %

Weighted average diluted shares outstanding

s


209,137


191,546


9 %









Select Per-Share & Performance Metrics








Earnings-per-share - basic

j / r


$                                1.87


$                                1.34


40 %

Earnings-per-share - diluted

j / s


$                                1.87


$                                1.33


41 %

Efficiency ratio (1)

h / f


57.99 %


65.87 %


(7.88)

Non-interest expense to average assets

h/n


2.15 %


2.68 %


(0.53)

Return on average assets

j / n


1.00 %


0.70 %


0.30

Return on average tangible assets

j / o


1.03 %


0.72 %


0.31

PPNR return on average assets

k/n


1.55 %


1.38 %


0.17

Return on average common equity

j / p


10.42 %


7.77 %


2.65

Return on average tangible common equity

j / q


15.27 %


11.21 %


4.06









Operating Per-Share & Performance Metrics








Operating earnings-per-share - basic (2)

m / r


$                                2.01


$                                2.12


(5) %

Operating earnings-per-share - diluted (2)

m / s


$                                2.00


$                                2.12


(6) %

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

u / y


54.80 %


52.70 %


2.10

Operating non-interest expense to average assets

i/n


2.07 %


2.21 %


(0.14)

Operating return on average assets (2)

m / n


1.07 %


1.11 %


(0.04)

Operating return on average tangible assets (2)

m / o


1.11 %


1.14 %


(0.03)

Operating PPNR return on average assets (2)

l / n


1.65 %


1.91 %


(0.26)

Operating return on average common equity (2)

m / p


11.17 %


12.34 %


(1.17)

Operating return on average tangible common equity (2)

m / q


16.36 %


17.80 %


(1.44)



(1)

Tax-exempt interest was 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)




Nine Months Ended


% change

($ in thousands)



Sep 30, 2024


Sep 30, 2023


Year over Year

Non-interest expense (GAAP)

h


$                        838,118


$                        975,524


(14) %

Less: Non-interest expense adjustments

b


(30,336)


(171,912)


(82) %

Operating non-interest expense (non-GAAP)

i


807,782


803,612


1 %

Less: B&O taxes

t


(9,654)


(9,051)


7 %

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

u


$                        798,128


$                        794,561


— %









Net interest income (tax equivalent) (1)

v


$                    1,283,962


$                    1,342,568


(4) %

Non-interest income (GAAP)

d


161,219


138,394


16 %

Add: BOLI tax equivalent adjustment (1)

w


4,348


3,495


24 %

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

x


1,449,529


1,484,457


(2) %

Less: Non-interest income adjustments

a


7,019


23,201


(70) %

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

y


$                    1,456,548


$                    1,507,658


(3) %









Efficiency ratio (1)

h /f


57.99 %


65.87 %


(7.88)

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

u / y


54.80 %


52.70 %


2.10



(1)

Tax-exempt income was 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)



Sep 30,
2024


Jun 30,
2024


Mar 31,
2024


Dec 31,
2023


Sep 30, 2023


Seq.
Quarter


Year over
Year

Loans and leases interest income

a


$     587,481


$     582,246


$     574,519


$     577,092


$        567,929


1 %


3 %

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

b


21,963


24,942


23,482


26,914


28,963


(12) %


(24) %

Less: Acquired loan accretion - credit related (3)

c


4,127


4,835


5,119


5,430


6,370


(15) %


(35) %

Adjusted loans and leases interest income

d=a-b-c


$     561,391


$     552,469


$     545,918


$     544,748


$        532,596


2 %


5 %

















Taxable securities interest income

e


$        78,755


$        81,723


$        78,724


$        82,872


$          85,007


(4) %


(7) %

Less: Acquired taxable securities accretion - rate related

f


35,359


40,120


31,527


34,290


39,219


(12) %


(10) %

Adjusted Taxable securities interest income

g=e-f


$        43,396


$        41,603


$        47,197


$        48,582


$          45,788


4 %


(5) %

















Non-taxable securities interest income (1)

h


$          7,821


$          7,889


$          7,886


$          8,073


$             8,085


(1) %


(3) %

Less: Acquired non-taxable securities accretion - rate related

i


2,241


2,256


2,270


2,309


2,288


(1) %


(2) %

Adjusted Taxable securities interest income (1)

j=h-i


$          5,580


$          5,633


$          5,616


$          5,764


$             5,797


(1) %


(4) %

















Interest income (1)

k


$     699,862


$     696,521


$     685,207


$     692,741


$        697,169


— %


— %

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

l=b+f+i


59,563


67,318


57,279


63,513


70,470


(12) %


(15) %

Less: Acquired loan accretion - credit related (3)

c


4,127


4,835


5,119


5,430


6,370


(15) %


(35) %

Adjusted interest income (1)

m=k-l-c


$     636,172


$     624,368


$     622,809


$     623,798


$        620,329


2 %


3 %

















Interest-bearing deposits interest expense

n


$     208,027


$     207,307


$     198,435


$     170,659


$        126,974


— %


64 %

Less: Acquired deposit accretion

o


—


—


—


(187)


(373)


nm


nm

Adjusted interest-bearing deposits interest expense

p=n-o


$     208,027


$     207,307


$     198,435


$     170,846


$        127,347


— %


63 %

















Interest expense

q


$     268,678


$     268,087


$     260,863


$     238,011


$        215,138


— %


25 %

Less: Acquired interest-bearing liabilities accretion (2)

r


(57)


(57)


(57)


(244)


(430)


— %


(87) %

Adjusted interest expense

s=q-r


$     268,735


$     268,144


$     260,920


$     238,255


$        215,568


— %


25 %

















Net Interest Income (1)

t


$     431,184


$     428,434


$     424,344


$     454,730


$        482,031


1 %


(11) %

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

u=l-r


59,620


67,375


57,336


63,757


70,900


(12) %


(16) %

Less: Acquired loan accretion - credit related (3)

c


4,127


4,835


5,119


5,430


6,370


(15) %


(35) %

Adjusted net interest income (1)

v=t-u-c


$     367,437


$     356,224


$     361,889


$     385,543


$        404,761


3 %


(9) %

















Average loans and leases

aa


37,543,561


37,663,396


37,597,101


37,333,310


37,050,518


— %


1 %

Average taxable securities

ab


7,943,391


7,839,202


8,081,003


7,903,053


8,356,165


1 %


(5) %

Average non-taxable securities

ac


828,362


825,030


851,342


809,551


844,417


— %


(2) %

Average interest-earning assets

ad


48,185,474


48,117,746


48,280,787


47,838,229


48,981,105


— %


(2) %

Average interest-bearing deposits

ae


28,019,046


28,041,156


27,742,579


26,622,343


25,121,745


0 %


12 %

Average interest-bearing liabilities

af


32,505,157


32,583,458


32,318,653


31,226,600


31,413,978


0 %


3 %

















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



(1)

Tax-exempt interest was 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)



Sep 30,
2024


Jun 30,
2024


Mar 31,
2024


Dec 31,
2023


Sep 30,
2023


Seq.
Quarter


Year over
Year

Average yield on loans and leases

a / aa


6.22 %


6.20 %


6.13 %


6.13 %


6.08 %


0.02


0.14

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

b / aa


0.23 %


0.27 %


0.25 %


0.29 %


0.31 %


(0.04)


(0.08)

Less: Acquired loan accretion - credit related (3)

c / aa


0.04 %


0.05 %


0.05 %


0.06 %


0.07 %


(0.01)


(0.03)

Adjusted average yield on loans and leases

d / aa


5.95 %


5.88 %


5.83 %


5.78 %


5.70 %


0.07


0.25

















Average yield on taxable securities

e / ab


3.97 %


4.17 %


3.90 %


4.19 %


4.07 %


(0.20)


(0.10)

Less: Acquired taxable securities accretion - rate related

f / ab


1.77 %


2.06 %


1.57 %


1.72 %


1.86 %


(0.29)


(0.09)

Adjusted average yield on taxable securities

g / ab


2.20 %


2.11 %


2.33 %


2.47 %


2.21 %


0.09


(0.01)

















Average yield on non-taxable securities (1)

h / ac


3.78 %


3.82 %


3.71 %


3.99 %


3.83 %


(0.04)


(0.05)

Less: Acquired non-taxable securities accretion - rate related

i / ac


1.08 %


1.10 %


1.07 %


1.13 %


1.07 %


(0.02)


0.01

Adjusted yield on non-taxable securities (1)

j / ac


2.70 %


2.72 %


2.64 %


2.86 %


2.76 %


(0.02)


(0.06)

















Average yield on interest-earning assets (1)

k / ad


5.78 %


5.80 %


5.69 %


5.75 %


5.65 %


(0.02)


0.13

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

l / ad


0.49 %


0.56 %


0.48 %


0.53 %


0.57 %


(0.07)


(0.08)

Less: Acquired loan accretion - credit related (3)

c / ad


0.04 %


0.04 %


0.04 %


0.05 %


0.05 %


—


(0.01)

Adjusted average yield on interest-earning assets (1)

m / ad


5.25 %


5.20 %


5.17 %


5.17 %


5.03 %


0.05


0.22

















Average rate on interest-bearing deposits

n / ae


2.95 %


2.97 %


2.88 %


2.54 %


2.01 %


(0.02)


0.94

Less: Acquired deposit accretion

o / ae


— %


— %


— %


— %


(0.01) %


—


0.01

Adjusted average rate on interest-bearing deposits

p / ae


2.95 %


2.97 %


2.88 %


2.54 %


2.02 %


(0.02)


0.93

















Average rate on interest-bearing liabilities

q / af


3.29 %


3.31 %


3.25 %


3.02 %


2.72 %


(0.02)


0.57

Less: Acquired interest-bearing liabilities accretion (2)

r / af


— %


— %


— %


— %


(0.01) %


—


0.01

Adjusted average rate on interest-bearing liabilities

s / af


3.29 %


3.31 %


3.25 %


3.02 %


2.73 %


(0.02)


0.56

















Net interest margin (1)

t / ad


3.56 %


3.56 %


3.52 %


3.78 %


3.91 %


—


(0.35)

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

u / ad


0.49 %


0.56 %


0.48 %


0.53 %


0.58 %


(0.07)


(0.09)

Less: Acquired loan accretion - credit related (3)

c / ad


0.04 %


0.04 %


0.04 %


0.05 %


0.05 %


—


(0.01)

Adjusted net interest margin (1)

v / ad


3.03 %


2.96 %


3.00 %


3.20 %


3.28 %


0.07


(0.25)

















(1)

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

(2)

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

(3)

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

 

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation - Continued

(Unaudited)




Nine Months Ended



($ in thousands)



Sep 30, 2024


Sep 30, 2023


Year over
Year

Loans and leases interest income

a


$              1,744,246


$              1,532,652


14 %

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

b


70,387


71,343


(1) %

Less: Acquired loan accretion - credit related (3)

c


14,081


17,276


(18) %

Adjusted loans and leases interest income

d=a-b-c


$              1,659,778


$              1,444,033


15 %









Taxable securities interest income

e


$                  239,202


$                  207,072


16 %

Less: Acquired taxable securities accretion - rate related

f


107,006


89,376


20 %

Adjusted Taxable securities interest income

g=e-f


$                  132,196


$                  117,696


12 %









Non-taxable securities interest income (1)

h


$                    23,596


$                    20,163


17 %

Less: Acquired non-taxable securities accretion - rate related

i


6,767


5,463


24 %

Adjusted Taxable securities interest income (1)

j=h-i


$                    16,829


$                    14,700


14 %









Interest income (1)

k


$              2,081,590


$              1,850,713


12 %

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

l=b+f+i


184,160


166,182


11 %

Less: Acquired loan accretion - credit related (3)

c


14,081


17,276


(18) %

Adjusted interest income (1)

m=k-l-c


$              1,883,349


$              1,667,255


13 %









Interest-bearing deposits interest expense

n


$                  613,769


$                  290,995


111 %

Less: Acquired deposit accretion

o


—


(746)


nm

Adjusted interest-bearing deposits interest expense

p=n-o


$                  613,769


$                  291,741


110 %









Interest expense

q


$                  797,628


$                  508,145


57 %

Less: Acquired interest-bearing liabilities accretion (2)

r


(171)


(917)


(81) %

Adjusted interest expense

s=q-r


$                  797,799


$                  509,062


57 %









Net Interest Income (1)

t


$              1,283,962


$              1,342,568


(4) %

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

u=l-r


184,331


167,099


10 %

Less: Acquired loan accretion - credit related (3)

c


14,081


17,276


(18) %

Adjusted net interest income (1)

v=t-u-c


$              1,085,550


$              1,158,193


(6) %









Average loans and leases

aa


37,601,142


34,765,319


8 %

Average taxable securities

ab


7,954,491


7,336,862


8 %

Average non-taxable securities

ac


834,887


717,064


16 %

Average interest-earning assets

ad


48,194,635


45,203,459


7 %

Average interest-bearing deposits

ae


27,934,570


23,091,034


21 %

Average interest-bearing liabilities

af


32,469,221


28,510,120


14 %









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



(1)

Tax-exempt interest was 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)




Nine Months Ended



($ in thousands)



Sep 30, 2024


Sep 30, 2023


Year over
Year

Average yield on loans and leases

a / aa


6.18 %


5.88 %


0.30

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

b / aa


0.25 %


0.27 %


(0.02)

Less: Acquired loan accretion - credit related (3)

c / aa


0.05 %


0.07 %


(0.02)

Adjusted average yield on loans and leases

d / aa


5.88 %


5.54 %


0.34









Average yield on taxable securities

e / ab


4.01 %


3.76 %


0.25

Less: Acquired taxable securities accretion - rate related

f / ab


1.80 %


1.63 %


0.17

Adjusted average yield on taxable securities

g / ab


2.21 %


2.13 %


0.08









Average yield on non-taxable securities (1)

h / ac


3.77 %


3.75 %


0.02

Less: Acquired non-taxable securities accretion - rate related

i / ac


1.08 %


1.02 %


0.06

Adjusted yield on non-taxable securities (1)

j / ac


2.69 %


2.73 %


(0.04)









Average yield on interest-earning assets (1)

k / ad


5.76 %


5.46 %


0.30

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

l / ad


0.51 %


0.49 %


0.02

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


5.21 %


4.92 %


0.29









Average rate on interest-bearing deposits

n / ae


2.93 %


1.68 %


1.25

Less: Acquired deposit accretion

o / ae


— %


— %


—

Adjusted average rate on interest-bearing deposits

p / ae


2.93 %


1.68 %


1.25









Average rate on interest-bearing liabilities

q / af


3.28 %


2.38 %


0.90

Less: Acquired interest-bearing liabilities accretion (2)

r / af


— %


— %


—

Adjusted average rate on interest-bearing liabilities

s / af


3.28 %


2.38 %


0.90









Net interest margin (1)

t / ad


3.55 %


3.96 %


(0.41)

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

u / ad


0.51 %


0.49 %


0.02

Less: Acquired loan accretion - credit related (3)

c / ad


0.04 %


0.05 %


(0.01)

Adjusted net interest margin (1)

v / ad


3.00 %


3.42 %


(0.42)



(1)

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

(2)

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

(3)

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

 

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SOURCE Columbia Banking System, Inc.

FAQ

What was Columbia Banking System's (COLB) earnings per share in Q3 2024?

Columbia Banking System reported earnings per diluted share of $0.70 in Q3 2024.

What was COLB's net interest margin in Q3 2024?

Columbia Banking System's net interest margin was 3.56% in Q3 2024, unchanged from the previous quarter.

How much did Columbia Banking System (COLB) reduce its costs over 18 months?

Columbia Banking System achieved a 25% reduction in costs over the 18 months of operating as a combined organization.

What was COLB's total asset value as of September 30, 2024?

Columbia Banking System's total assets were $51.9 billion as of September 30, 2024.

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Columbia Banking Systems Inc

NASDAQ:COLB

COLB Rankings

#1163 Ranked by Market Cap
#564 Ranked by Dividends

COLB Latest News

Sep 30, 2024
Columbia Banking System Announces Date of Third Quarter 2024 Earnings Release and Conference Call
Sep 18, 2024
Umpqua Bank Targets Arizona for Expansion with the Opening of Three New Branches
Sep 5, 2024
Umpqua Bank Bolsters North Coast Wine Specialty Group With Addition of Six Experienced Bankers
Aug 23, 2024
Columbia Banking System to Present at the Barclays Global Financial Services Conference on September 10, 2024
Aug 12, 2024
Columbia Banking System Announces $0.36 Per Common Share Dividend

COLB Stock Data

5.94B
209.48M
0.68%
93.64%
1.97%
Banks - Regional
State Commercial Banks
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United States of America
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