The company beat on the bottom line, but whiffed on revenue in its latest-reported quarter.Despite a mixed first quarter, investors gave the benefit of the doubt to Columbia Banking System (COLB 0.58%) on Friday. The Washington state-based company, arguably best known as the operator of the region's Umpqua Bank, managed to lift several of its more important metrics during the period. Its share price inched up by 0.6%, a rate slightly outpaced by the S&P 500 index's 1% rise.A miss on revenue, but a solid bea ...

Columbia Banking System, Inc. (NASDAQ:COLB) Q1 2024 Earnings Conference Call April 25, 2024 5:00 PM ET Company Participants Clint Stein - President and Chief Executive Officer Ron Farnsworth - Chief Financial Officer Frank Namdar - Chief Credit Officer Tory Nixon - President, Umpqua Bank Chris Merrywell - President, Umpqua Bank Conference Call Participants David Feaster - Raymond James Jared Shaw - Barclays Jeff Rulis - D.A. Davidson Ben Gerlinger - Citi Timur Braziler - Wells Fargo Brandon King - Truist An ...

Columbia Banking (COLB) reported $473.72 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 10.3%. EPS of $0.65 for the same period compares to $0.46 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $478.44 million, representing a surprise of -0.99%. The company delivered an EPS surprise of +22.64%, with the consensus EPS estimate being $0.53.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings ...

[Executive Summary](index=1&type=section&id=Executive%20Summary) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Clint Stein highlighted early progress in improving financial performance and shareholder value through enhanced expense control and stabilizing deposit costs - CEO Clint Stein highlights early progress in improving financial performance and shareholder value through tighter expense control and stabilizing deposit costs in the latter part of the quarter[2](index=2&type=chunk) - Columbia remains focused on regaining its placement as a **top-quartile bank** across financial metrics to drive long-term, consistent, repeatable performance[2](index=2&type=chunk) [1Q24 Highlights (Key Financial Data & Performance Metrics)](index=1&type=section&id=1Q24%20HIGHLIGHTS%20(COMPARED%20TO%204Q23)) Columbia Banking System improved Q1 2024 profitability with diluted EPS rising to $0.59, driven by reduced non-interest expense despite lower net interest income Key Financial Data (1Q24 vs. 4Q23 vs. 1Q23) | Metric | 1Q24 ($) | 4Q23 ($) | 1Q23 ($) | | :---------------------------------------- | :---------- | :---------- | :---------- | | Earnings per diluted common share | $0.59 | $0.45 | ($0.09) | | Operating earnings per diluted common share | $0.65 | $0.56 | $0.46 | | Book value per common share | $23.68 | $23.95 | $23.44 | | Tangible book value per common share | $16.03 | $16.12 | $15.12 | | Return on average assets | 0.96% | 0.72% | (0.14)% | | Return on average common equity | 10.01% | 7.90% | (1.70)% | | Net interest income (in thousands) | $423,362 | $453,623 | $374,698 | | Non-interest income (in thousands) | $50,357 | $65,533 | $54,735 | | Non-interest expense (in thousands) | $287,516 | $337,176 | $342,818 | | Total assets (in billions) | $52.2 | $52.2 | $54.0 | | Total deposits (in billions) | $41.7 | $41.6 | $41.6 | - Net interest income decreased by **$30 million** on a linked-quarter basis[5](index=5&type=chunk) - Non-interest expense decreased by **$50 million** due to lower discretionary spend and the fourth quarter's larger FDIC special assessment[5](index=5&type=chunk) - Net interest margin was **3.52%**, down **26 basis points** from the prior quarter[5](index=5&type=chunk) [Company Updates](index=3&type=section&id=Company%20Updates) [Organizational Update](index=3&type=section&id=Organizational%20Update) Columbia completed its merger with Umpqua Holdings Corporation in February 2023 and conducted a Q1 2024 evaluation, leading to simplified structures and an improved profitability outlook - Merger with Umpqua Holdings Corporation completed on **February 28, 2023**, creating one of the largest banks headquartered in the West[6](index=6&type=chunk) - An enterprise-wide evaluation in **Q1 2024** resulted in consolidated positions, simplified structures, and an improved profitability outlook, with changes expected during **Q2 and Q3 2024**[22](index=22&type=chunk) [Detailed Financial Review](index=3&type=section&id=Detailed%20Financial%20Review) [Net Interest Income and Net Interest Margin (NIM)](index=3&type=section&id=Net%20Interest%20Income%20and%20NIM) Net interest income declined by **$30 million** to **$423 million** due to higher deposit costs, with net interest margin contracting by **26 basis points** to **3.52%** Net Interest Income & Margin (QoQ) | Metric | 1Q24 ($ in millions) | 4Q23 ($ in millions) | Change (QoQ) ($ in millions/bps) | | :------------------ | :------------------- | :------------------- | :------------------------------- | | Net Interest Income | $423 | $453 | -$30 | | Net Interest Margin | 3.52% | 3.78% | -26 bps | - The decline in net interest income reflects higher deposit costs and lower income earned on investment securities due to slower prepayment activity[5](index=5&type=chunk)[7](index=7&type=chunk) - The cost of interest-bearing liabilities increased **23 basis points** on a linked-quarter basis to **3.25%** for Q1 2024, benefiting from a **$1.4 billion** movement in FHLB Advances to the Federal Reserve's Bank Term Funding Program, lowering costs by approximately **75 basis points**[8](index=8&type=chunk) - The cost of interest-bearing deposits increased **34 basis points** linked-quarter to **2.88%** but stabilized in the latter part of Q1 due to enhanced deposit pricing visibility[23](index=23&type=chunk) [Non-Interest Income](index=3&type=section&id=Non-interest%20Income) Non-interest income decreased by **$15 million** to **$50 million**, primarily due to fair value adjustments and MSR hedging, though it increased by **$1 million** excluding these items Non-Interest Income (QoQ) | Metric | 1Q24 ($ in millions) | 4Q23 ($ in millions) | Change (QoQ) ($ in millions) | | :------------------ | :------------------- | :------------------- | :--------------------------- | | Non-interest income | $50 | $65 | -$15 | - The decline was driven by quarterly fluctuations in fair value adjustments and MSR hedging activity, resulting in a net fair value loss of **$4 million** in Q1 2024 compared to a net fair value gain of **$13 million** in Q4 2023[9](index=9&type=chunk) - Excluding these items, non-interest income increased by **$1 million** from the prior quarter[5](index=5&type=chunk)[9](index=9&type=chunk) [Non-Interest Expense](index=3&type=section&id=Non-interest%20Expense) Non-interest expense decreased by **$50 million** to **$288 million**, with operating non-interest expense (excluding specific items) down **$17 million** to **$277 million** Non-Interest Expense (QoQ) | Metric | 1Q24 ($ in millions) | 4Q23 ($ in millions) | Change (QoQ) ($ in millions) | | :----------------- | :------------------- | :------------------- | :--------------------------- | | Non-interest expense | $288 | $337 | -$50 | - The decrease was due to lower discretionary spending and the fourth quarter's larger FDIC special assessment[5](index=5&type=chunk)[10](index=10&type=chunk) - Excluding merger-related expense, exit and disposal costs, and accruals for the FDIC special assessment, non-interest expense was **$277 million**, down **$17 million** from the prior quarter[10](index=10&type=chunk) - Incurred **$4 million** in merger-related expense and **$5 million** in expense related to an FDIC special assessment in Q1 2024[5](index=5&type=chunk) [Balance Sheet Overview](index=3&type=section&id=Balance%20Sheet) Total assets remained stable at **$52.2 billion**, with deposits increasing to **$41.7 billion** and gross loans growing **2% annualized** to **$37.6 billion** Key Balance Sheet Items (as of Mar 31, 2024 vs. Dec 31, 2023) | Metric | Mar 31, 2024 ($) | Dec 31, 2023 ($) | Change (QoQ) ($) | | :---------------------------- | :--------------- | :--------------- | :--------------- | | Total assets | $52.2 billion | $52.2 billion | Unchanged | | Cash & cash equivalents | $2.2 billion | $2.2 billion | Unchanged | | Available-for-sale securities | $8.6 billion | $8.8 billion | -$213 million | | Total deposits | $41.7 billion | $41.6 billion | +$99 million | | Gross loans and leases | $37.6 billion | $37.4 billion | +$200 million | [Loans and Leases](index=5&type=section&id=Loans%20and%20leases) Gross loans and leases increased by **$200 million** to **$37.6 billion**, a **2% annualized growth**, driven by commercial line utilization and construction activity - Gross loans and leases were **$37.6 billion** as of March 31, 2024, an increase of **$200 million** relative to December 31, 2023, representing **2% annualized loan growth**[26](index=26&type=chunk) - Commercial line utilization and construction project activity were the primary contributors to the loan growth[26](index=26&type=chunk) - Higher commercial real estate (CRE) term balances reflect projects that transitioned from construction to permanent financing[26](index=26&type=chunk) [Deposits](index=5&type=section&id=Deposits) Total deposits increased by **$99 million** to **$41.7 billion**, driven by customer deposits, allowing for a reduction in brokered deposits and borrowings Total Deposits (QoQ) | Metric | Mar 31, 2024 ($) | Dec 31, 2023 ($) | Change (QoQ) ($) | | :------------- | :--------------- | :--------------- | :--------------- | | Total deposits | $41.7 billion | $41.6 billion | +$99 million | - Customer deposits drove the quarter's increase, enabling a slight reduction in brokered deposits and borrowings[11](index=11&type=chunk) - Management teams are focused on customer deposit generation to reduce wholesale funding sources that create a drag on earnings power[11](index=11&type=chunk) [Credit Quality](index=5&type=section&id=Credit%20Quality) Net charge-offs increased to **0.47%** of average loans, and non-performing assets rose to **0.28%** of total assets, driven by commercial and SBA portfolio migrations Credit Quality Metrics (1Q24 vs. 4Q23) | Metric | 1Q24 | 4Q23 | Change (QoQ) (pp) | | :-------------------------------------- | :---- | :---- | :---------------- | | Net charge-offs (% of average loans) | 0.47% | 0.31% | +0.16 | | Non-performing assets to total assets | 0.28% | 0.22% | +0.06 | - Net charge-offs in the commercial portfolio were up **$14 million** from the prior quarter, with the increase centered in a single credit[27](index=27&type=chunk) - The quarter's increase in non-performing assets was driven primarily by migration in the SBA portfolio and an owner-occupied CRE property[27](index=27&type=chunk) [Allowance for Credit Losses](index=5&type=section&id=Allowance%20for%20credit%20losses) Allowance for credit losses decreased to **$437 million** (1.16% of loans), with provision for credit losses at **$17 million**, reflecting credit migration and CECL model recalibration Allowance for Credit Losses (as of Mar 31, 2024 vs. Dec 31, 2023) | Metric | Mar 31, 2024 ($ in millions) | Dec 31, 2023 ($ in millions) | Change (QoQ) ($ in millions/pp) | | :-------------------------------------- | :--------------------------- | :--------------------------- | :------------------------------ | | Allowance for credit losses | $437 | $464 | -$27 | | Allowance for credit losses (% of loans)| 1.16% | 1.24% | -0.08 pp | | Provision for credit losses | $17 | $55 | -$38 | - The provision for credit losses was **$17 million** for Q1 2024, reflecting credit migration trends, changes in economic forecasts, charge-off activity, and a change within the CECL methodology[12](index=12&type=chunk) - The commercial CECL model was recalibrated to be more reflective of the post-merger loan portfolio after a full year operating as a combined organization[5](index=5&type=chunk)[12](index=12&type=chunk) [Non-performing Assets](index=5&type=section&id=Non-performing%20assets) Non-performing assets increased to **$144 million** (0.28% of total assets), driven by migrations in the SBA portfolio and an owner-occupied CRE property Non-performing Assets (as of Mar 31, 2024 vs. Dec 31, 2023) | Metric | Mar 31, 2024 ($ in millions) | Dec 31, 2023 ($ in millions) | Change (QoQ) ($ in millions/pp) | | :------------------------------------ | :--------------------------- | :--------------------------- | :------------------------------ | | Non-performing assets | $144 | $114 | +$30 | | Non-performing assets (% of total assets) | 0.28% | 0.22% | +0.06 pp | - The quarter's increase in non-performing assets was driven primarily by migration in the SBA portfolio and an owner-occupied CRE property[27](index=27&type=chunk) - Nonperforming assets as of March 31, 2024, included **$43 million** of government guarantees[27](index=27&type=chunk) [Capital](index=5&type=section&id=Capital) Columbia's total risk-based capital ratio improved to **12.0%** and CET1 to **9.8%**, both exceeding regulatory minimums and reaching the long-term target for total risk-based capital Capital Ratios (as of Mar 31, 2024 vs. Dec 31, 2023) | Metric | Mar 31, 2024 | Dec 31, 2023 | Change (QoQ) (pp) | | :-------------------------------------- | :----------- | :----------- | :---------------- | | Estimated total risk-based capital ratio | 12.0% | 11.9% | +0.1 | | Estimated common equity tier 1 risk-based capital ratio | 9.8% | 9.6% | +0.2 | - Columbia remains above current "well-capitalized" regulatory minimums[13](index=13&type=chunk) - The total risk-based capital ratio at the parent company is now at its long-term target of **12%**[13](index=13&type=chunk) - Management expects continued organic earnings generation to drive all capital ratios above target levels over time, increasing flexibility for capital return in the future[13](index=13&type=chunk) [Additional Information](index=6&type=section&id=Additional%20Information) [Earnings Presentation and Conference Call Information](index=6&type=section&id=Earnings%20Presentation%20and%20Conference%20Call%20Information) Columbia will host its Q1 2024 earnings conference call on **April 25, 2024**, at **2:00 p.m. PT** to discuss financial results and recent activities - Columbia will host its first quarter 2024 earnings conference call on **April 25, 2024**, at **2:00 p.m. PT (5:00 p.m. ET)**[14](index=14&type=chunk) - Participants may register for the call or join the audiocast, with a replay accessible through Columbia's investor relations page[14](index=14&type=chunk)[31](index=31&type=chunk) - The Q1 2024 Earnings Presentation, providing additional disclosure, will be available on the investor relations page[30](index=30&type=chunk) [About Columbia Banking System, Inc.](index=6&type=section&id=About%20Columbia%20Banking%20System%2C%20Inc.) Columbia Banking System, Inc. (Nasdaq: COLB), headquartered in Tacoma, Washington, is the parent company of Umpqua Bank, a leading regional bank with over **$50 billion** in assets - Columbia (Nasdaq: COLB) is headquartered in Tacoma, Washington, and is the parent company of Umpqua Bank, an award-winning western U.S. regional bank based in Lake Oswego, Oregon[31](index=31&type=chunk) - Umpqua Bank is the largest bank headquartered in the Northwest and one of the largest banks headquartered in the West with over **$50 billion** of assets and locations in Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah, and Washington[31](index=31&type=chunk) - The bank supports consumers and businesses through a full suite of services, including retail and commercial banking, Small Business Administration lending, institutional and corporate banking, equipment leasing, and comprehensive investment and wealth management expertise[31](index=31&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements subject to various risks and uncertainties, including economic conditions, interest rates, and regulatory impacts, with actual results potentially differing materially - This press release includes forward-looking statements, which are necessarily subject to risk and uncertainty, and actual results could differ materially due to various risk factors[32](index=32&type=chunk) - Key risk factors include current and future economic and market conditions (e.g., declines in real estate prices, inflation, recession), changes in interest rates, changes in FDIC insurance scope and cost, and the ability to successfully implement efficiency initiatives and realize merger benefits[32](index=32&type=chunk) - Readers should not place undue reliance on forward-looking statements, and the company undertakes no obligation to update any such statements[32](index=32&type=chunk) [Financial Statements & Supplementary Data](index=8&type=section&id=Financial%20Statements%20%26%20Supplementary%20Data) [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated statements of operations show Q1 2024 net income of **$124.08 million**, a **33% increase** sequentially, driven by reduced provision for credit losses and non-interest expense Consolidated Statements of Operations (Q1 2024 vs. Q4 2023 vs. Q1 2023) | Metric ($ in thousands) | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | % Change Seq. Quarter | Year over Year | | :---------------------------------- | :----------- | :----------- | :----------- | :-------------------- | :------------- | | Total interest income | $684,225 | $691,634 | $475,951 | (1)% | 44% | | Total interest expense | $260,863 | $238,011 | $101,253 | 10% | 158% | | Net interest income | $423,362 | $453,623 | $374,698 | (7)% | 13% | | Provision for credit losses | $17,136 | $54,909 | $105,539 | (69)% | (84)% | | Total non-interest income | $50,357 | $65,533 | $54,735 | (23)% | (8)% | | Total non-interest expense | $287,516 | $337,176 | $342,818 | (15)% | (16)% | | Income (loss) before provision for income taxes | $169,067 | $127,071 | ($18,924) | 33% | nm | | Provision (benefit) for income taxes | $44,987 | $33,540 | ($4,886) | 34% | nm | | Net income (loss) | $124,080 | $93,531 | ($14,038) | 33% | nm | | Earnings (loss) per common share – diluted | $0.59 | $0.45 | ($0.09) | 31% | nm | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheet shows total assets stable at **$52.2 billion**, deposits at **$41.7 billion**, loans and leases at **$37.6 billion**, and shareholders' equity at **$4.96 billion** Consolidated Balance Sheets (as of Mar 31, 2024 vs. Dec 31, 2023 vs. Mar 31, 2023) | Metric ($ in thousands) | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | % Change Seq. Quarter | Year over Year | | :---------------------------------- | :----------- | :----------- | :----------- | :-------------------- | :------------- | | Total assets | $52,224,006 | $52,173,596 | $53,994,226 | —% | (3)% | | Loans and leases | $37,642,413 | $37,441,951 | $37,091,280 | 1% | 1% | | Total deposits | $41,706,160 | $41,607,020 | $41,586,347 | —% | —% | | Total liabilities | $47,266,761 | $47,178,562 | $49,109,503 | —% | (4)% | | Total shareholders' equity | $4,957,245 | $4,995,034 | $4,884,723 | (1)% | 1% | [Financial Highlights (Detailed)](index=10&type=section&id=Financial%20Highlights) This section details performance ratios, including efficiency, returns on assets and equity, and key balance sheet yields, highlighting profitability improvements and NIM contraction Performance Ratios (Q1 2024 vs. Q4 2023 vs. Q1 2023) | Metric | 1Q24 | 4Q23 | 1Q23 | % Change Seq. Quarter (pp) | Year over Year (pp) | | :---------------------------------------- | :------ | :------ | :------ | :------------------------- | :------------------ | | Efficiency ratio | 60.57% | 64.81% | 79.71% | (4.24) | (19.14) | | Return on average assets ("ROAA") | 0.96% | 0.72% | (0.14)% | 0.24 | 1.10 | | Return on average common equity | 10.01% | 7.90% | (1.70)% | 2.11 | 11.71 | | Net interest margin | 3.52% | 3.78% | 4.08% | (0.26) | (0.56) | | Cost of interest bearing deposits | 2.88% | 2.54% | 1.32% | 0.34 | 1.56 | | Non-performing assets to total assets | 0.28% | 0.22% | 0.14% | 0.06 | 0.14 | | Total risk-based capital ratio | 12.0% | 11.9% | 10.9% | 0.10 | 1.10 | | Common equity tier 1 risk-based capital ratio | 9.8% | 9.6% | 8.9% | 0.20 | 0.90 | [Loan & Lease Portfolio Balances and Mix](index=11&type=section&id=Loan%20%26%20Lease%20Portfolio%20Balances%20and%20Mix) The loan and lease portfolio increased **1%** to **$37.6 billion**, with commercial real estate and commercial term loans as largest segments, and construction & development showing significant growth Total Loans and Leases (as of Mar 31, 2024 vs. Dec 31, 2023 vs. Mar 31, 2023) | Loan Type ($ in thousands) | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | % Change Seq. Quarter | Year over Year | | :-------------------------------------- | :----------- | :----------- | :----------- | :-------------------- | :------------- | | Commercial real estate: Non-owner occupied term, net | $6,557,768 | $6,482,940 | $6,353,550 | 1% | 3% | | Commercial real estate: Owner occupied term, net | $5,231,676 | $5,195,605 | $5,156,848 | 1% | 1% | | Commercial real estate: Multifamily, net | $5,828,960 | $5,704,734 | $5,590,587 | 2% | 4% | | Commercial real estate: Construction & development, net | $1,728,652 | $1,747,302 | $1,467,561 | (1)% | 18% | | Commercial: Term, net | $5,544,450 | $5,536,765 | $5,906,774 | —% | (6)% | | Total loans and leases, net | $37,642,413 | $37,441,951 | $37,091,280 | 1% | 1% | Loan and Lease Mix (as of Mar 31, 2024) | Loan Type | Mar 31, 2024 Mix | | :-------------------------------------- | :--------------- | | Commercial real estate: Non-owner occupied term, net | 17% | | Commercial real estate: Owner occupied term, net | 14% | | Commercial real estate: Multifamily, net | 15% | | Commercial real estate: Construction & development, net | 5% | | Commercial: Term, net | 15% | | Residential: Mortgage, net | 16% | [Deposit Portfolio Balances and Mix](index=12&type=section&id=Deposit%20Portfolio%20Balances%20and%20Mix) Total deposits remained stable at **$41.7 billion**, with a shift in mix as non-interest-bearing demand deposits decreased while interest-bearing accounts increased Total Deposits (as of Mar 31, 2024 vs. Dec 31, 2023 vs. Mar 31, 2023) | Deposit Type ($ in thousands) | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | % Change Seq. Quarter | Year over Year | | :---------------------------------- | :----------- | :----------- | :----------- | :-------------------- | :------------- | | Demand, non-interest bearing | $13,808,554 | $14,256,452 | $17,215,781 | (3)% | (20)% | | Demand, interest bearing | $8,095,211 | $8,044,432 | $5,900,462 | 1% | 37% | | Money market | $10,822,498 | $10,324,454 | $10,681,422 | 5% | 1% | | Savings | $2,640,060 | $2,754,113 | $3,469,112 | (4)% | (24)% | | Time | $6,339,837 | $6,227,569 | $4,319,570 | 2% | 47% | | Total | $41,706,160 | $41,607,020 | $41,586,347 | —% | —% | Deposit Mix (as of Mar 31, 2024 vs. Dec 31, 2023 vs. Mar 31, 2023) | Deposit Type | Mar 31, 2024 Mix | Dec 31, 2023 Mix | Mar 31, 2023 Mix | | :---------------------------------- | :--------------- | :--------------- | :--------------- | | Demand, non-interest bearing | 33% | 34% | 41% | | Demand, interest bearing | 20% | 19% | 14% | | Money market | 26% | 25% | 26% | | Savings | 6% | 7% | 9% | | Time | 15% | 15% | 10% | [Credit Quality – Non-performing Assets (Detailed)](index=13&type=section&id=Credit%20Quality%20%E2%80%93%20Non-performing%20Assets) Non-performing assets increased **26%** sequentially to **$143.8 million**, driven by commercial real estate and commercial loans entering non-accrual status Non-performing Assets (as of Mar 31, 2024 vs. Dec 31, 2023 vs. Mar 31, 2023) | Metric ($ in thousands) | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | % Change Seq. Quarter | Year over Year | | :------------------------------------------ | :----------- | :----------- | :----------- | :-------------------- | :------------- | | Total non-performing loans and leases | $142,035 | $112,901 | $75,628 | 26% | 88% | | Other real estate owned | $1,762 | $1,036 | $409 | 70% | 331% | | Total non-performing assets | $143,797 | $113,937 | $76,037 | 26% | 89% | | Non-performing loans and leases to total loans and leases | 0.38% | 0.30% | 0.20% | 0.08 | 0.18 | | Non-performing assets to total assets | 0.28% | 0.22% | 0.14% | 0.06 | 0.14 | - Non-accrual and 90+ days past due loans include government guarantees of **$43.0 million** at March 31, 2024[39](index=39&type=chunk) [Credit Quality – Allowance for Credit Losses (Detailed)](index=14&type=section&id=Credit%20Quality%20%E2%80%93%20Allowance%20for%20Credit%20Losses) Total Allowance for Credit Losses (ACL) decreased **6%** to **$437.2 million**, with provision for credit losses down **67%** to **$17.5 million**, while net charge-offs increased **52%** to **$44.0 million** Allowance for Credit Losses (as of Mar 31, 2024 vs. Dec 31, 2023 vs. Mar 31, 2023) | Metric ($ in thousands) | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | % Change Seq. Quarter | Year over Year | | :------------------------------------------ | :----------- | :----------- | :----------- | :-------------------- | :------------- | | Allowance for credit losses on loans and leases (ACLLL) - Balance, end of period | $414,344 | $440,871 | $417,464 | (6)% | (1)% | | Provision for credit losses on loans and leases | $17,476 | $53,183 | $106,498 | (67)% | (84)% | | Total net charge-offs | ($44,003) | ($28,872) | ($16,661) | 52% | 164% | | Total Allowance for credit losses (ACL) | $437,212 | $464,079 | $436,493 | (6)% | —% | | Net charge-offs to average loans and leases (annualized) | 0.47% | 0.31% | 0.23% | 0.16 | 0.24 | | ACL to loans and leases | 1.16% | 1.24% | 1.18% | (0.08) | (0.02) | - For the quarter ended March 31, 2023, the provision for credit losses on loans and leases includes **$88.4 million** initial provision related to non-PCD loans acquired during the period[40](index=40&type=chunk) [Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates](index=15&type=section&id=Consolidated%20Average%20Balance%20Sheets%2C%20Net%20Interest%20Income%2C%20and%20Yields%2FRates) This section details average balance sheet components, interest income, expense, and yields, showing a sequential decrease in net interest income and margin, and increased cost of interest-bearing liabilities Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates (Q1 2024 vs. Q4 2023 vs. Q1 2023) | Metric ($ in thousands) | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | Average Yields or Rates (Mar 31, 2024) | | :------------------------------------------ | :----------- | :----------- | :----------- | :------------------------------------- | | Total interest-earning assets | $48,280,787 | $47,838,229 | $37,055,705 | 5.69% | | Total interest-bearing liabilities | $32,318,653 | $31,226,600 | $22,548,264 | 3.25% | | Net Interest Income | $424,344 | $454,730 | $375,369 | N/A | | Net Interest Spread | N/A | N/A | N/A | 2.44% | | Net Interest Margin | N/A | N/A | N/A | 3.52% | | Yield on loans and leases | N/A | N/A | N/A | 6.13% | | Cost of interest-bearing deposits | N/A | N/A | N/A | 2.88% | - Net interest income decreased by **$30.4 million** sequentially, while net interest margin contracted by **29 basis points** (calculated from table data)[42](index=42&type=chunk) - The cost of interest-bearing liabilities increased by **23 basis points** sequentially (calculated from table data)[42](index=42&type=chunk) [Residential Mortgage Banking Activity](index=16&type=section&id=Residential%20Mortgage%20Banking%20Activity) Residential mortgage banking revenue increased **10%** to **$4.6 million**, driven by a positive change in MSR asset fair value, despite a large MSR hedge loss Residential Mortgage Banking Revenue (Q1 2024 vs. Q4 2023 vs. Q1 2023) | Metric ($ in thousands) | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | % Change Seq. Quarter | Year over Year | | :------------------------------------------ | :----------- | :----------- | :----------- | :-------------------- | :------------- | | Origination and sale | $2,920 | $2,686 | $3,587 | 9% | (19)% | | Servicing | $6,021 | $5,966 | $9,397 | 1% | (36)% | | Change in fair value of MSR asset: Changes due to valuation inputs or assumptions | $3,117 | ($6,251) | ($2,937) | nm | nm | | MSR hedge (loss) gain | ($4,271) | $5,026 | $2,650 | (185)% | (261)% | | Total Residential mortgage banking revenue | $4,634 | $4,212 | $7,816 | 10% | (41)% | | Closed loan volume for-sale | $86,903 | $87,033 | $131,726 | —% | (34)% | - The change in fair value of MSR asset due to valuation inputs or assumptions swung from a loss of **$6.25 million** in Q4 2023 to a gain of **$3.12 million** in Q1 2024[64](index=64&type=chunk) - MSR hedge activity resulted in a loss of **$4.27 million** in Q1 2024, compared to a gain of **$5.03 million** in Q4 2023[64](index=64&type=chunk) [GAAP to Non-GAAP Reconciliation](index=17&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) This section reconciles GAAP to non-GAAP financial measures, such as operating earnings and non-interest expense, to provide a clearer view of underlying performance by excluding non-recurring items - Non-GAAP financial measures are presented to provide investors with information useful in understanding financial performance, trends, and position, and are utilized for internal planning, forecasting, and peer company operating performance comparison[44](index=44&type=chunk) - Non-interest expense adjustments for Q1 2024 totaled **$10.6 million**, primarily including merger-related expense (**$4.5 million**), exit and disposal costs (**$1.3 million**), and FDIC special assessment (**$4.8 million**)[72](index=72&type=chunk) Operating Non-Interest Expense (Non-GAAP) | Metric ($ in thousands) | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | % Change Seq. Quarter | Year over Year | | :------------------------------------------ | :----------- | :----------- | :----------- | :-------------------- | :------------- | | Non-interest expense (GAAP) | $287,516 | $337,176 | $342,818 | (15)% | (16)% | | Less: Non-interest expense adjustments | ($10,598) | ($42,888) | ($117,189) | (75)% | (91)% | | Operating non-interest expense (non-GAAP) | $276,918 | $294,288 | $225,629 | (6)% | 23% | Operating Net Income (Non-GAAP) | Metric ($ in thousands) | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | % Change Seq. Quarter | Year over Year | | :------------------------------------------ | :----------- | :----------- | :----------- | :-------------------- | :------------- | | Net income (loss) (GAAP) | $124,080 | $93,531 | ($14,038) | 33% | nm | | Less: Non-interest income adjustments | $3,883 | ($12,732) | ($8,074) | nm | nm | | Add: Non-interest expense adjustments | $10,598 | $42,888 | $117,189 | (75)% | (91)% | | Tax effect of adjustments | ($3,620) | ($7,539) | ($23,565) | (52)% | (85)% | | Operating net income (non-GAAP) | $134,941 | $116,148 | $71,512 | 16% | 89% | Operating Efficiency Ratio, as adjusted (Non-GAAP) | Metric | Mar 31, 2024 | Dec 31, 2023 | Mar 31, 2023 | % Change Seq. Quarter | Year over Year | | :------------------------------------------ | :----------- | :----------- | :----------- | :-------------------- | :------------- | | Efficiency ratio | 60.57% | 64.81% | 79.71% | (4.24) | (19.14) | | Operating efficiency ratio, as adjusted (non-GAAP) | 56.97% | 57.31% | 52.84% | (0.34) | 4.13 |

LAKE OSWEGO, Ore., April 8, 2024 /PRNewswire/ -- Umpqua Bank, a subsidiary of Columbia Banking System Inc., (Nasdaq: COLB) has been named to Newsweek's list of Most Trustworthy Companies in America for the second year in a row, ranking ninth in the bank category for 2024. The award, presented and announced on March 27th by Newsweek and industry ranking provider Statista Inc., is based on a comprehensive evaluation of customer, investor and employee trust. "We strive every day to build a culture that support ...

TACOMA, Wash., April 1, 2024 /PRNewswire/ -- Columbia Banking System, Inc. ("Columbia"Nasdaq: COLB), parent company of Umpqua Bank, today announced it will release first quarter 2024 financial results on Thursday, April 25, 2024, after market close. The Company will host a conference call for investors and analysts at 2:00 p.m. PT (5:00 p.m. ET) that same day. During the call, management will discuss Columbia's first quarter 2024 financial results and provide an update on recent activities. There will be a ...

TACOMA, Wash., Feb. 27, 2024 /PRNewswire/ -- Columbia Banking System, Inc. ("Columbia"Nasdaq: COLB) President and CEO Clint Stein is scheduled to present at the Raymond James & Associates 45th Annual Institutional Investors Conference on Tuesday, March 5, 2024, at 9:15 a.m. ET. Mr. Stein is also scheduled to present at the RBC Capital Markets Global Financial Institutions Conference on Wednesday, March 6, 2024, at 4:40 p.m. ET. An audiocast and replay of each event, which may contain forward-looking stateme ...

Retirement follows successful integration and systems conversion of Northwest's two premier banks LAKE OSWEGO, Ore., Feb. 26, 2024 /PRNewswire/ -- Umpqua Bank, a subsidiary of Columbia Banking System Inc. (Nasdaq: COLB), today announced the retirement of Eric Eid, Chief Integration Officer, effective April 1, 2024. Eid's retirement follows the recent closing of the bank's Integration Management Office, a division he co-led in support of the merger between Columbia Bank and Umpqua Bank. Eid Joined Columbia B ...

The Volcker Rule The Dodd-Frank Act prohibits banks and their affiliates from engaging in proprietary trading and investing in and sponsoring hedge funds and private equity funds. The statutory provision is commonly called the "Volcker Rule." The Volcker Rule does not significantly impact the operations of the Company and the Bank, as we do not have any significant engagement in the businesses prohibited by the Volcker Rule. 21 Table of Contents Interchange Fees The Company is subject to rules governing int ...

TACOMA, Wash., Feb. 9, 2024 /PRNewswire/ -- Columbia Banking System, Inc. ("Columbia"  Nasdaq: COLB), parent company of Umpqua Bank, today announced its Board of Directors has approved a quarterly cash dividend in the amount of $0.36 per common share, payable March 11, 2024, to shareholders of record as of February 23, 2024. "The fundamental strength of our franchise has enabled us to pay a steady dividend to our shareholders while continuing to increase our capital ratios," commented Clint Stein, President ...