COLUMBIA BANKING SYSTEM, INC. REPORTS THIRD QUARTER 2024 RESULTS
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Net income |
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Operating net income 1 |
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Earnings per diluted common |
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Operating earnings per diluted |
CEO Commentary |
"Our third quarter results reflect our continued work and success as we strive toward top-quartile performance," said |
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_____________________________ |
1 "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for additional information. |
3Q24 HIGHLIGHTS (COMPARED TO 2Q24) |
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Net Interest |
• Net interest income increased by |
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• 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. |
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Non-Interest |
• Non-interest income increased by |
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• Non-interest expense decreased by |
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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. |
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• Provision expense of $29 million compares to |
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• Non-performing assets to total assets was 0.32%, compared to 0.30% as of |
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Capital |
• Estimated total risk-based capital ratio of 12.5% and estimated common equity tier 1 risk-based capital ratio of 10.3%. |
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• Declared a quarterly cash dividend of |
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Notable Items |
• Realized |
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• Opened our second retail branch in |
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3Q24 KEY FINANCIAL DATA |
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PERFORMANCE METRICS |
3Q24 |
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2Q24 |
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3Q23 |
Return on average assets |
1.12 % |
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0.93 % |
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1.02 % |
Return on average common |
11.36 % |
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9.85 % |
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11.07 % |
Return on average tangible |
16.34 % |
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14.55 % |
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16.93 % |
Operating return on average |
1.10 % |
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1.08 % |
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1.23 % |
Operating return on average |
11.15 % |
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11.47 % |
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13.40 % |
Operating return on average |
16.04 % |
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16.96 % |
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20.48 % |
Net interest margin |
3.56 % |
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3.56 % |
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3.91 % |
Efficiency ratio |
54.56 % |
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59.02 % |
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57.82 % |
Operating efficiency ratio, as |
53.89 % |
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53.56 % |
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51.26 % |
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INCOME STATEMENT ($ in 000s, excl. per share data) |
3Q24 |
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2Q24 |
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3Q23 |
Net interest income |
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Provision for credit losses |
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Non-interest income |
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Non-interest expense |
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Pre-provision net revenue 1 |
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Operating pre-provision net |
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Earnings per common share - |
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Operating earnings per common |
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Dividends paid per share |
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BALANCE SHEET |
3Q24 |
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2Q24 |
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3Q23 |
Total assets |
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Loans and leases |
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Deposits |
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Book value per common share |
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Tangible book value per share 1 |
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Organizational Update
On
Net Interest Income
Net interest income was
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
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
Non-interest Income
Non-interest income was
Non-interest Expense
Non-interest expense was
Balance Sheet
Total consolidated assets were
Gross loans and leases were
Customer deposit growth of
Credit Quality
The allowance for credit losses was
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
_____________________________ |
2 "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for additional information. |
Capital
Columbia's book value per common share was
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
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
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 (Nasdaq: COLB) is headquartered in
_____________________________ |
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
TABLE INDEX |
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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 |
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Consolidated Statements of Income |
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(Unaudited) |
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Quarter Ended |
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% Change |
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($ in thousands, except per share data) |
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Seq. Quarter |
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Year |
Interest income: |
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Loans and leases |
$ 588,603 |
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$ 583,874 |
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$ 575,044 |
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$ 577,741 |
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$ 569,670 |
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1 % |
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3 % |
Interest and dividends on investments: |
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Taxable |
76,074 |
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78,828 |
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75,017 |
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78,010 |
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80,066 |
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(3) % |
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(5) % |
Exempt from federal income tax |
6,855 |
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6,904 |
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6,904 |
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6,966 |
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6,929 |
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(1) % |
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(1) % |
Dividends |
2,681 |
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2,895 |
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3,707 |
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4,862 |
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4,941 |
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(7) % |
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(46) % |
Temporary investments and interest bearing deposits |
24,683 |
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23,035 |
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23,553 |
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24,055 |
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34,407 |
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7 % |
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(28) % |
Total interest income |
698,896 |
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695,536 |
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684,225 |
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691,634 |
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696,013 |
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— % |
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— % |
Interest expense: |
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Deposits |
208,027 |
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207,307 |
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198,435 |
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170,659 |
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126,974 |
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— % |
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64 % |
Securities sold under agreement to repurchase and |
1,121 |
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1,515 |
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1,266 |
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1,226 |
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1,220 |
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(26) % |
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(8) % |
Borrowings |
49,636 |
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49,418 |
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51,275 |
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56,066 |
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77,080 |
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— % |
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(36) % |
Junior and other subordinated debentures |
9,894 |
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9,847 |
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9,887 |
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10,060 |
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9,864 |
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— % |
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— % |
Total interest expense |
268,678 |
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268,087 |
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260,863 |
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238,011 |
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215,138 |
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— % |
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25 % |
Net interest income |
430,218 |
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427,449 |
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423,362 |
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453,623 |
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480,875 |
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1 % |
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(11) % |
Provision for credit losses |
28,769 |
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31,820 |
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17,136 |
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54,909 |
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36,737 |
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(10) % |
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(22) % |
Non-interest income: |
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Service charges on deposits |
18,549 |
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18,503 |
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16,064 |
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17,349 |
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17,410 |
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— % |
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7 % |
Card-based fees |
14,591 |
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14,681 |
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13,183 |
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14,593 |
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15,674 |
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(1) % |
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(7) % |
Financial services and trust revenue |
5,083 |
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5,396 |
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4,464 |
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3,011 |
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4,651 |
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(6) % |
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9 % |
Residential mortgage banking revenue, net |
6,668 |
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5,848 |
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4,634 |
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4,212 |
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7,103 |
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14 % |
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(6) % |
Gain (loss) on sale of debt securities, net |
3 |
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(1) |
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12 |
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9 |
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4 |
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nm |
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(25) % |
Gain (loss) on equity securities, net |
2,272 |
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325 |
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(1,565) |
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2,636 |
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(2,055) |
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nm |
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nm |
Gain (loss) on loan and lease sales, net |
161 |
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(1,516) |
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221 |
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1,161 |
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1,871 |
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nm |
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(91) % |
BOLI income |
4,674 |
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4,705 |
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4,639 |
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4,331 |
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4,440 |
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(1) % |
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5 % |
Other income (loss) |
14,158 |
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(3,238) |
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8,705 |
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18,231 |
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(5,117) |
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nm |
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nm |
Total non-interest income |
66,159 |
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44,703 |
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50,357 |
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65,533 |
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43,981 |
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48 % |
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50 % |
Non-interest expense: |
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Salaries and employee benefits |
147,268 |
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145,066 |
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154,538 |
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157,572 |
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159,041 |
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2 % |
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(7) % |
Occupancy and equipment, net |
45,056 |
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45,147 |
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45,291 |
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48,160 |
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43,070 |
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— % |
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5 % |
Intangible amortization |
29,055 |
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29,230 |
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32,091 |
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33,204 |
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29,879 |
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(1) % |
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(3) % |
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9,332 |
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9,664 |
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14,460 |
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42,510 |
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11,200 |
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(3) % |
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(17) % |
Merger and restructuring expense |
2,364 |
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14,641 |
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4,478 |
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7,174 |
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18,938 |
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(84) % |
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(88) % |
Other expenses |
38,283 |
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35,496 |
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36,658 |
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48,556 |
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42,019 |
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8 % |
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(9) % |
Total non-interest expense |
271,358 |
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279,244 |
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287,516 |
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337,176 |
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304,147 |
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(3) % |
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(11) % |
Income before provision for income taxes |
196,250 |
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161,088 |
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169,067 |
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127,071 |
|
183,972 |
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22 % |
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7 % |
Provision for income taxes |
50,068 |
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40,944 |
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44,987 |
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33,540 |
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48,127 |
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22 % |
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4 % |
Net income |
$ 146,182 |
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$ 120,144 |
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$ 124,080 |
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$ 93,531 |
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$ 135,845 |
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22 % |
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8 % |
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Weighted average basic shares outstanding |
208,545 |
|
208,498 |
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208,260 |
|
208,083 |
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208,070 |
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— % |
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— % |
Weighted average diluted shares outstanding |
209,454 |
|
209,011 |
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208,956 |
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208,739 |
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208,645 |
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— % |
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— % |
Earnings per common share – basic |
$ 0.70 |
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$ 0.58 |
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$ 0.60 |
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$ 0.45 |
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$ 0.65 |
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21 % |
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8 % |
Earnings per common share – diluted |
$ 0.70 |
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$ 0.57 |
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$ 0.59 |
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$ 0.45 |
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$ 0.65 |
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23 % |
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8 % |
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nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm." |
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Consolidated Statements of Income |
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(Unaudited) |
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Nine Months Ended |
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% Change |
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($ in thousands, except per share data) |
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Year over |
Interest income: |
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Loans and leases |
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$ 1,747,521 |
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$ 1,535,874 |
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14 % |
Interest and dividends on investments: |
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Taxable |
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229,919 |
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198,831 |
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16 % |
Exempt from federal income tax |
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20,663 |
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17,143 |
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21 % |
Dividends |
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9,283 |
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8,241 |
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13 % |
Temporary investments and interest bearing deposits |
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71,271 |
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87,604 |
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(19) % |
Total interest income |
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2,078,657 |
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1,847,693 |
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13 % |
Interest expense: |
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Deposits |
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613,769 |
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290,995 |
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111 % |
Securities sold under agreement to repurchase and federal funds purchased |
|
3,902 |
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2,697 |
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45 % |
Borrowings |
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150,329 |
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186,848 |
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(20) % |
Junior and other subordinated debentures |
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29,628 |
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27,605 |
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7 % |
Total interest expense |
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797,628 |
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508,145 |
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57 % |
Net interest income |
|
1,281,029 |
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1,339,548 |
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(4) % |
Provision for credit losses |
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77,725 |
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158,290 |
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(51) % |
Non-interest income: |
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Service charges on deposits |
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53,116 |
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48,176 |
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10 % |
Card-based fees |
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42,455 |
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40,670 |
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4 % |
Financial services and trust revenue |
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14,943 |
|
10,460 |
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43 % |
Residential mortgage banking revenue, net |
|
17,150 |
|
12,577 |
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36 % |
Gain on sale of debt securities, net |
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14 |
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4 |
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250 % |
Gain (loss) on equity securities, net |
|
1,032 |
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(336) |
|
nm |
(Loss) gain on loan and lease sales, net |
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(1,134) |
|
3,253 |
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(135) % |
BOLI income |
|
14,018 |
|
11,293 |
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24 % |
Other income |
|
19,625 |
|
12,297 |
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60 % |
Total non-interest income |
|
161,219 |
|
138,394 |
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16 % |
Non-interest expense: |
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|
|
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Salaries and employee benefits |
|
446,872 |
|
458,531 |
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(3) % |
Occupancy and equipment, net |
|
135,494 |
|
135,320 |
|
0 % |
Intangible amortization |
|
90,376 |
|
78,092 |
|
16 % |
|
|
33,456 |
|
28,892 |
|
16 % |
Merger and restructuring expense |
|
21,483 |
|
164,485 |
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(87) % |
Other expenses |
|
110,437 |
|
110,204 |
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0 % |
Total non-interest expense |
|
838,118 |
|
975,524 |
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(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 |
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53 % |
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|
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|
|
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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 % |
|
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nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm." |
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Consolidated Balance Sheets |
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(Unaudited) |
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% Change |
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($ in thousands, except per share data) |
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Seq. Quarter |
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Year |
Assets: |
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Cash and due from banks |
$ 591,364 |
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$ 515,263 |
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$ 440,215 |
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$ 498,496 |
|
$ 492,474 |
|
15 % |
|
20 % |
Interest-bearing cash and temporary |
1,519,658 |
|
1,553,568 |
|
1,760,902 |
|
1,664,038 |
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1,911,221 |
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(2) % |
|
(20) % |
Investment securities: |
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|
|
|
|
|
|
|
|
|
|
|
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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) % |
|
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 |
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 |
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 |
|
— % |
|
— % |
|
||||||||||||||
Financial Highlights |
||||||||||||||
(Unaudited) |
||||||||||||||
|
|
Quarter Ended |
|
% Change |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Seq. |
|
Year over |
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 |
|
||||||
Financial Highlights |
||||||
(Unaudited) |
||||||
|
|
Nine Months Ended |
|
% Change |
||
|
|
|
|
|
|
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 |
|
|||||||||||||
Loan & Lease Portfolio Balances and Mix |
|||||||||||||
(Unaudited) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
% Change |
||
($ in thousands) |
Amount |
|
Amount |
|
Amount |
|
Amount |
|
Amount |
|
Seq. |
|
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 |
$ 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 % |
|
|
|
|
|
|||||||||||||
Deposit Portfolio Balances and Mix |
|||||||||||||
(Unaudited) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
% Change |
||
($ in thousands) |
Amount |
|
Amount |
|
Amount |
|
Amount |
|
Amount |
|
Seq. |
|
Year over |
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 |
|
||||||||||||||
Credit Quality – Non-performing Assets |
||||||||||||||
(Unaudited) |
||||||||||||||
|
Quarter Ended |
|
% Change |
|||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
Seq. |
|
Year over |
|
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 |
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 |
0.18 % |
|
0.23 % |
|
0.29 % |
|
0.23 % |
|
0.22 % |
|
(0.05) |
|
(0.04) |
|
Non-performing loans and leases to total loans and |
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 |
|
|
(2) |
Excludes certain mortgage loans guaranteed by GNMA, which Columbia has the unilateral right to repurchase but has not done so, totaling |
|
||||||||||||||
Credit Quality – Allowance for Credit Losses |
||||||||||||||
(Unaudited) |
||||||||||||||
|
|
Quarter Ended |
|
% Change |
||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
Seq. |
|
Year over |
|
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 |
(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." |
|
|
|||||||
Credit Quality – Allowance for Credit Losses |
|||||||
(Unaudited) |
|||||||
|
|
Nine Months Ended |
|
% Change |
|||
($ in thousands) |
|
|
|
|
|
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 |
|
|||||||||||||||||
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
|
Quarter Ended |
||||||||||||||||
|
|
|
|
|
|
||||||||||||
($ in thousands) |
Average |
|
Interest |
|
Average |
|
Average |
|
Interest |
|
Average |
|
Average |
|
Interest |
|
Average |
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 |
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 |
|
|
|
5.78 % |
|
48,117,746 |
|
|
|
5.80 % |
|
48,981,105 |
|
|
|
5.65 % |
|
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 |
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 |
|
|
|
3.29 % |
|
32,583,458 |
|
|
|
3.31 % |
|
31,413,978 |
|
|
|
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' |
$ 52,009,017 |
|
|
|
|
|
$ 51,981,555 |
|
|
|
|
|
$ 53,011,361 |
|
|
|
|
NET INTEREST INCOME (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST SPREAD (2) |
|
|
|
|
2.49 % |
|
|
|
|
|
2.49 % |
|
|
|
|
|
2.93 % |
NET INTEREST INCOME TO EARNING |
|
|
|
|
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 |
|
|||||||||||
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates |
|||||||||||
(Unaudited) |
|||||||||||
|
Nine Months Ended |
||||||||||
|
|
|
|
||||||||
($ in thousands) |
Average |
|
Interest |
|
Average |
|
Average |
|
Interest |
|
Average |
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 % |
|
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 |
|
|
|
|
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 |
|
|||||||||||||
Residential Mortgage Banking Activity |
|||||||||||||
(Unaudited) |
|||||||||||||
|
Quarter Ended |
|
% Change |
||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
Seq. |
|
Year over |
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 |
(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 |
(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 |
|
|
|
|
|
|
$ 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." |
|
|||||
Residential Mortgage Banking Activity |
|||||
(Unaudited) |
|||||
|
Nine Months Ended |
|
% Change |
||
($ in thousands) |
|
|
|
|
Year over |
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
|
|||||||||||||||
GAAP to Non-GAAP Reconciliation |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
Quarter Ended |
|
% Change |
||||||||||
($ in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
Seq. |
|
Year |
Total shareholders' equity |
a |
|
$ 5,273,828 |
|
$ 4,976,672 |
|
$ 4,957,245 |
|
$ 4,995,034 |
|
$ 4,632,162 |
|
6 % |
|
14 % |
Less: |
|
|
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: |
|
|
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 % |
|
|||||||||||||||
GAAP to Non-GAAP Reconciliation - Continued |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
Quarter Ended |
|
% Change |
||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Seq. |
|
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 |
|
|
9,365 |
|
(10,114) |
|
(2,372) |
|
19,354 |
|
(19,247) |
|
nm |
|
nm |
Change in fair value of MSR due to valuation inputs |
|
|
(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) % |
|
|
|
— |
|
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." |
|
|||||||||||||||
GAAP to Non-GAAP Reconciliation - Continued |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
Quarter Ended |
|
% Change |
||||||||||
($ in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
Seq. |
|
Year |
Average assets |
n |
|
$ 52,009,017 |
|
$ 51,981,555 |
|
$ 52,083,973 |
|
|
|
$ 53,011,361 |
|
— % |
|
(2) % |
Less: Average goodwill and other intangible assets, |
|
|
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 |
|
|
|
$ 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, |
|
|
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 |
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 |
(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. |
|
|||||||||||||||
GAAP to Non-GAAP Reconciliation - Continued |
|||||||||||||||
Operating Efficiency Ratio, as adjusted |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
Quarter Ended |
|
% Change |
||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Seq. |
|
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 |
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 |
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 |
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 |
(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. |
|
|||||||
GAAP to Non-GAAP Reconciliation - Continued |
|||||||
(Unaudited) |
|||||||
|
|
|
Nine Months Ended |
|
% Change |
||
($ in thousands) |
|
|
|
|
|
|
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) % |
|
|
|
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 |
(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. |
|
|||||||
GAAP to Non-GAAP Reconciliation - Continued |
|||||||
Operating Efficiency Ratio, as adjusted |
|||||||
(Unaudited) |
|||||||
|
|
|
Nine Months Ended |
|
% change |
||
($ in thousands) |
|
|
|
|
|
|
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 |
(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. |
|
|||||||||||||||
GAAP to Non-GAAP Reconciliation - Continued |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
Quarter Ended |
|
% Change |
||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Seq. |
|
Year over |
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 |
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 |
(3) |
The cumulative fair value discount on historical Columbia loans was established as of |
|
|||||||||||||||
GAAP to Non-GAAP Reconciliation - Continued |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
Quarter Ended |
|
% Change |
||||||||||
($ in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Seq. |
|
Year over |
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 |
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. |
|
|||||||
GAAP to Non-GAAP Reconciliation - Continued |
|||||||
(Unaudited) |
|||||||
|
|
|
Nine Months Ended |
|
|
||
($ in thousands) |
|
|
Sep 30, 2024 |
|
Sep 30, 2023 |
|
Year over |
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. |
|
|||||||
GAAP to Non-GAAP Reconciliation - Continued |
|||||||
(Unaudited) |
|||||||
|
|
|
Nine Months Ended |
|
|
||
($ in thousands) |
|
|
Sep 30, 2024 |
|
Sep 30, 2023 |
|
Year over |
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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