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27.04.2017 15:05
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Columbia Banking System Announces First Quarter 2017 Results and Quarterly Cash Dividend
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PR Newswire
TACOMA, Wash., April 27, 2017
TACOMA, Wash., April 27, 2017 /PRNewswire/ -- Hadley Robbins, Interim Chief Executive Officer of Columbia Banking System and Columbia Bank (NASDAQ: COLB) ("Columbia"), said today upon the release of Columbia's first quarter 2017 earnings, "From a performance standpoint, we had a very good quarter. Our record first quarter performance was driven, in part, by increased net interest income, modest provision for loan losses, and increased noninterest income." Mr. Robbins continued, "I am very proud of our team. The sudden passing of Melanie Dressel was a tragic loss for all of us; however, the strength of the culture Melanie built and epitomized so well shined in each of our team members when it mattered most. Our focus on caring for our customers, each other, and the communities we serve never wavered."
Balance Sheet
Total assets at March 31, 2017 were $9.53 billion, an increase of $17.7 million from December 31, 2016. Loans grew $14.7 million during the quarter as strong loan originations of $251.7 million were offset by payments. Loan production was diversified across the portfolio sectors, with growth primarily centered in commercial business and commercial real estate loans. Securities available for sale were $2.33 billion at March 31, 2017, an increase of $52.8 million, or 2% from $2.28 billion at December 31, 2016. Total deposits at March 31, 2017 were $8.09 billion, an increase of $29.4 million from December 31, 2016. Core deposits comprised 96% of total deposits and were $7.79 billion at March 31, 2017, an increase of $45.0 million from December 31, 2016. The average cost of total deposits for the quarter was 0.04%, unchanged from the fourth quarter of 2016.
Income Statement
Net Interest Income
Net interest income for the first quarter of 2017 was $86.7 million, an increase of $938 thousand and $6.5 million from the linked and prior year periods, respectively. The linked quarter increase was principally from taxable securities income, whose yields benefited from a market-driven reduction in premium amortization. The increase from the prior year period was due to higher loan and securities volumes as well as the previously noted reduction in securities premium amortization. Incremental accretion income from purchased loans in the current period was $665 thousand lower than the prior year period. For additional information regarding net interest income, see the "Average Balances and Rates" table.
Noninterest Income
Noninterest income was $24.9 million for the first quarter of 2017, an increase of $2.5 million compared to $22.3 million for the fourth quarter of 2017. The linked quarter increase was principally due to a $1.5 million bank owned life insurance ("BOLI") benefit as well as a $573 thousand benefit from re-measuring to zero our estimated mortgage repurchase liability, which were both recorded to other noninterest income. The repurchase liability was initially established with a prior acquisition. Compared to the first quarter of 2016, noninterest income increased by $4.2 million due to the previously noted BOLI and mortgage repurchase benefits, as well as a $1.3 million increase in loan revenue due to higher fee income.
Noninterest Expense
Total noninterest expense for the first quarter of 2017 was $69.0 million, an increase of $4.0 million from $65.0 million for the fourth quarter of 2016. After removing the effect of acquisition-related expenses, noninterest expense for the current quarter increased $2.9 million from the linked-quarter on the same basis. This increase was due to higher compensation and benefits as well as higher other noninterest expense. The increase in compensation and benefits was due to additional stock compensation expense related to the immediate vesting of certain restricted share awards and additional payroll taxes. The increase in other noninterest expense was due to the recording of an additional $850 thousand in expense related to the allowance for unfunded commitments and letters of credit during the current quarter, compared to a reversal of $200 thousand in the fourth quarter of 2016.
Compared to the first quarter of 2016, noninterest expense increased $3.9 million, or 6%, from $65.1 million. After removing the effect of $1.4 million in acquisition-related expenses from the current quarter and $2.4 million from the prior year period, noninterest expense increased $5.0 million from the prior year period. The increase was due to higher compensation and benefits, which were driven by higher salaries as well as the previously mentioned stock compensation expenses. In addition, incentive expenses in the current quarter were higher based upon the Company's improved financial performance relative to the prior year period.
Net Interest Margin
Columbia's net interest margin (tax equivalent) for the first quarter of 2017 was 4.20%, an increase of 9 basis points from the linked quarter and an increase of 7 basis points from the prior year period. The increases from the linked and prior year quarters were due to higher interest income from taxable securities, which was driven by reduced amortization of premiums. Incremental accretion income was $4.1 million in the current period compared to $4.7 million in the prior year quarter.
Columbia's operating net interest margin (tax equivalent)(1) was 4.09% for the first quarter of 2017, an increase of 10 and 6 basis points from the linked and prior year periods, respectively. As the previously mentioned lower premium amortization related to our purchased securities and not our acquired securities, this decrease in market-driven premium amortization also positively influenced our operating net interest margin (tax equivalent)(1).
Clint Stein, Columbia's Executive Vice President and Chief Financial Officer, commented, "The rebound in our net interest margin during the quarter was primarily due to the reduction of overnight funds coupled with increased securities income resulting from lower amortization of premiums." Mr. Stein continued, "The margin pressure associated with rates on new loan originations continues and any significant increase in competition for deposit relationships would further restrain margin expansion."
The following table shows the impact to interest income resulting from income accretion on acquired loan portfolios as well as the net interest margin and operating net interest margin:
| | | Three Months Ended | ||||||||||||||||||
| | | March 31, | | December 31, | | September 30, | | June 30, | | March 31, | ||||||||||
| | | 2017 | | 2016 | | 2016 | | 2016 | | 2016 | ||||||||||
| | | (dollars in thousands) | ||||||||||||||||||
| Incremental accretion income due to: | | | | | | | | | | | ||||||||||
| FDIC purchased credit impaired loans | | $ | 2,117 | | | $ | 1,199 | | | $ | 1,816 | | | $ | 1,300 | | | $ | 1,657 | |
| Other acquired loans | | 1,948 | | | 3,087 | | | 2,749 | | | 3,074 | | | 3,073 | | |||||
| Incremental accretion income | | $ | 4,065 | | | $ | 4,286 | | | $ | 4,565 | | | $ | 4,374 | | | $ | 4,730 | |
| | | | | | | | | | | | ||||||||||
| Net interest margin (tax equivalent) | | 4.20 | % | | 4.11 | % | | 4.13 | % | | 4.10 | % | | 4.13 | % | |||||
| Operating net interest margin (tax equivalent) (1) | | 4.09 | % | | 3.99 | % | | 4.03 | % | | 4.00 | % | | 4.03 | % | |||||
| __________ | |
| (1) Operating net interest margin (tax equivalent) is a non-GAAP financial measure. See the section titled "Non-GAAP Financial Measures" on the last pages of this earnings release for the reconciliation of operating net interest margin (tax equivalent) to net interest margin. |
Asset Quality
At March 31, 2017, nonperforming assets to total assets were 0.32% compared to 0.35% at December 31, 2016. Total nonperforming assets decreased $3.7 million from the linked quarter due to a $2.2 million decrease in nonaccrual loans as well as a $1.5 million decrease in other real estate owned.
The following table sets forth information regarding nonaccrual loans and total nonperforming assets:
| | | March 31, 2017 | | December 31, 2016 | ||||
| | | (in thousands) | ||||||
| Nonaccrual loans: | | | | | ||||
| Commercial business | | $ | 10,848 | | | $ | 11,555 | |
| Real estate: | | | | | ||||
| One-to-four family residential | | 450 | | | 568 Werbung Mehr Nachrichten zur Columbia Banking System Inc Aktie kostenlos abonnieren
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