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☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
Washington
|
|
91-1422237
|
|
|
(State or other jurisdiction of
incorporation or organization)
|
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(I.R.S. Employer
Identification Number)
|
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Large accelerated filer
|
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☒
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Accelerated filer
|
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☐
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Non-accelerated filer
|
|
☐
|
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Smaller reporting company
|
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☐
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|
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Emerging growth company
|
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☐
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Page
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PART I — FINANCIAL INFORMATION
|
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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PART II — OTHER INFORMATION
|
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|
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Item 1.
|
||
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|
|
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Item 1A.
|
||
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Item 2.
|
||
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Item 3.
|
||
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Item 4.
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||
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Item 5.
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||
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Item 6.
|
||
|
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|
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||
|
ALLL
|
Allowance for loan and lease losses
|
|
FASB
|
Financial Accounting Standards Board
|
|
ASC
|
Accounting Standards Codification
|
|
FDIC
|
Federal Deposit Insurance Corporation
|
|
ASU
|
Accounting Standards Update
|
|
FHLB
|
Federal Home Loan Bank of Des Moines
|
|
ATM
|
Automated Teller Machine
|
|
FRB
|
Federal Reserve Bank
|
|
BOLI
|
Bank Owned Life Insurance
|
|
LIBOR
|
London Interbank Offering Rate
|
|
Basel III
|
A comprehensive capital framework and rules for U.S. banking organizations approved by the FRB and the FDIC in 2013
|
|
NIM
|
Net Interest Margin
|
|
B&O
|
Business and Occupation
|
|
OPPO
|
Other Personal Property Owned
|
|
CDI
|
Core Deposit Intangible
|
|
OREO
|
Other Real Estate Owned
|
|
CECL
|
Current Expected Credit Loss
|
|
Pacific Continental
|
Pacific Continental Corporation
|
|
CDARS®
|
Certificate of Deposit Account Registry Service
|
|
PCI
|
Purchased Credit Impaired
|
|
CET1
|
Common Equity Tier 1
|
|
REASD
|
Real Estate Appraisal Services Department
|
|
CEO
|
Chief Executive Officer
|
|
SBA
|
Small Business Administration
|
|
CFO
|
Chief Financial Officer
|
|
SEC
|
Securities and Exchange Commission
|
|
Dodd-Frank Act
|
Dodd-Frank Wall Street Reform and Consumer Protection Act
|
|
TDRs
|
Troubled Debt Restructurings
|
|
EPS
|
Earnings Per Share
|
|
GAAP
|
Generally Accepted Accounting Principles
|
|
|
|
|
|
|
June 30,
2019 |
|
December 31,
2018 |
||||||
|
ASSETS
|
|
(in thousands)
|
|||||||||||
|
Cash and due from banks
|
|
$
|
224,327
|
|
|
$
|
260,180
|
|
|||||
|
Interest-earning deposits with banks
|
|
34,332
|
|
|
17,407
|
|
|||||||
|
Total cash and cash equivalents
|
|
258,659
|
|
|
277,587
|
|
|||||||
|
Debt securities available for sale at fair value
|
|
2,864,418
|
|
|
3,167,448
|
|
|||||||
|
FHLB stock at cost
|
|
29,800
|
|
|
25,960
|
|
|||||||
|
Loans held for sale
|
|
12,189
|
|
|
3,849
|
|
|||||||
|
Loans, net of unearned income
|
|
8,646,990
|
|
|
8,391,511
|
|
|||||||
|
Less: ALLL
|
|
80,517
|
|
|
83,369
|
|
|||||||
|
Loans, net
|
|
8,566,473
|
|
|
8,308,142
|
|
|||||||
|
Interest receivable
|
|
46,878
|
|
|
45,323
|
|
|||||||
|
Premises and equipment, net
|
|
167,295
|
|
|
168,788
|
|
|||||||
|
OREO
|
|
1,118
|
|
|
6,019
|
|
|||||||
|
Goodwill
|
|
765,842
|
|
|
765,842
|
|
|||||||
|
Other intangible assets, net
|
|
40,540
|
|
|
45,937
|
|
|||||||
|
Other assets
|
|
337,596
|
|
|
280,250
|
|
|||||||
|
Total assets
|
|
$
|
13,090,808
|
|
|
$
|
13,095,145
|
|
|||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|||||||||
|
Deposits:
|
|
|
|
|
|
|
|
||||||
|
Noninterest-bearing
|
|
$
|
5,082,219
|
|
|
$
|
5,227,216
|
|
|||||
|
Interest-bearing
|
|
5,129,380
|
|
|
5,230,910
|
|
|||||||
|
Total deposits
|
|
10,211,599
|
|
|
10,458,126
|
|
|||||||
|
FHLB advances
|
|
495,496
|
|
|
399,523
|
|
|||||||
|
Securities sold under agreements to repurchase
|
|
50,226
|
|
|
61,094
|
|
|||||||
|
Subordinated debentures
|
|
35,370
|
|
|
35,462
|
|
|||||||
|
Other liabilities
|
|
164,479
|
|
|
107,291
|
|
|||||||
|
Total liabilities
|
|
10,957,170
|
|
|
11,061,496
|
|
|||||||
|
Commitments and contingent liabilities (Note 11)
|
|
|
|
|
|
|
|||||||
|
Shareholders’ equity:
|
|
|
|
|
|
|
|
||||||
|
|
June 30,
2019 |
|
December 31,
2018 |
|
|
|
|
||||||
|
|
(in thousands)
|
|
|
|
|
||||||||
|
Preferred stock (no par value)
|
|
|
|
|
|
|
|
||||||
|
Authorized shares
|
2,000
|
|
|
2,000
|
|
|
|
|
|
||||
|
Common stock (no par value)
|
|
|
|
|
|
|
|
||||||
|
Authorized shares
|
115,000
|
|
|
115,000
|
|
|
|
|
|
||||
|
Issued
|
73,548
|
|
|
73,249
|
|
|
1,644,922
|
|
|
1,642,246
|
|
||
|
Outstanding
|
72,924
|
|
|
73,249
|
|
|
|
|
|
||||
|
Retained earnings
|
|
463,429
|
|
|
426,708
|
|
|||||||
|
Accumulated other comprehensive income (loss)
|
|
47,150
|
|
|
(35,305
|
)
|
|||||||
|
Treasury stock at cost
|
624
|
|
|
—
|
|
|
(21,863
|
)
|
|
—
|
|
||
|
Total shareholders’ equity
|
|
2,133,638
|
|
|
2,033,649
|
|
|||||||
|
Total liabilities and shareholders’ equity
|
|
$
|
13,090,808
|
|
|
$
|
13,095,145
|
|
|||||
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
(in thousands except per share amounts)
|
||||||||||||||
|
Interest Income
|
|
|
|
|
|
|
|
|
||||||||
|
Loans
|
|
$
|
116,585
|
|
|
$
|
105,412
|
|
|
$
|
225,001
|
|
|
$
|
208,439
|
|
|
Taxable securities
|
|
15,918
|
|
|
11,923
|
|
|
33,333
|
|
|
24,631
|
|
||||
|
Tax-exempt securities
|
|
2,712
|
|
|
3,063
|
|
|
5,681
|
|
|
6,127
|
|
||||
|
Deposits in banks
|
|
207
|
|
|
151
|
|
|
295
|
|
|
496
|
|
||||
|
Total interest income
|
|
135,422
|
|
|
120,549
|
|
|
264,310
|
|
|
239,693
|
|
||||
|
Interest Expense
|
|
|
|
|
|
|
|
|
||||||||
|
Deposits
|
|
4,976
|
|
|
2,572
|
|
|
9,474
|
|
|
5,081
|
|
||||
|
FHLB advances
|
|
4,708
|
|
|
815
|
|
|
7,393
|
|
|
1,385
|
|
||||
|
Subordinated debentures
|
|
468
|
|
|
468
|
|
|
936
|
|
|
936
|
|
||||
|
Other borrowings
|
|
154
|
|
|
20
|
|
|
369
|
|
|
136
|
|
||||
|
Total interest expense
|
|
10,306
|
|
|
3,875
|
|
|
18,172
|
|
|
7,538
|
|
||||
|
Net Interest Income
|
|
125,116
|
|
|
116,674
|
|
|
246,138
|
|
|
232,155
|
|
||||
|
Provision for loan and lease losses
|
|
218
|
|
|
3,975
|
|
|
1,580
|
|
|
9,827
|
|
||||
|
Net interest income after provision for loan and lease losses
|
|
124,898
|
|
|
112,699
|
|
|
244,558
|
|
|
222,328
|
|
||||
|
Noninterest Income
|
|
|
|
|
|
|
|
|
||||||||
|
Deposit account and treasury management fees
|
|
9,035
|
|
|
8,683
|
|
|
18,015
|
|
|
17,423
|
|
||||
|
Card revenue
|
|
3,763
|
|
|
6,616
|
|
|
7,425
|
|
|
12,429
|
|
||||
|
Financial services and trust revenue
|
|
3,425
|
|
|
3,219
|
|
|
6,382
|
|
|
5,949
|
|
||||
|
Loan revenue
|
|
3,596
|
|
|
3,054
|
|
|
5,985
|
|
|
6,240
|
|
||||
|
Bank owned life insurance
|
|
1,597
|
|
|
1,712
|
|
|
3,116
|
|
|
3,138
|
|
||||
|
Investment securities gains (losses), net
|
|
285
|
|
|
(33
|
)
|
|
2,132
|
|
|
(11
|
)
|
||||
|
Other
|
|
3,947
|
|
|
441
|
|
|
4,289
|
|
|
1,667
|
|
||||
|
Total noninterest income
|
|
25,648
|
|
|
23,692
|
|
|
47,344
|
|
|
46,835
|
|
||||
|
Noninterest Expense
|
|
|
|
|
|
|
|
|
||||||||
|
Compensation and employee benefits
|
|
52,015
|
|
|
48,949
|
|
|
104,100
|
|
|
99,519
|
|
||||
|
Occupancy
|
|
8,712
|
|
|
9,276
|
|
|
17,521
|
|
|
19,397
|
|
||||
|
Data processing
|
|
4,601
|
|
|
5,221
|
|
|
9,270
|
|
|
10,491
|
|
||||
|
Legal and professional fees
|
|
6,554
|
|
|
4,171
|
|
|
11,127
|
|
|
7,408
|
|
||||
|
Amortization of intangibles
|
|
2,649
|
|
|
3,088
|
|
|
5,397
|
|
|
6,276
|
|
||||
|
B&O taxes (1)
|
|
1,411
|
|
|
1,459
|
|
|
3,287
|
|
|
2,776
|
|
||||
|
Advertising and promotion
|
|
870
|
|
|
1,622
|
|
|
1,844
|
|
|
3,051
|
|
||||
|
Regulatory premiums
|
|
956
|
|
|
937
|
|
|
1,940
|
|
|
1,874
|
|
||||
|
Net cost (benefit) of operation of OREO
|
|
(705
|
)
|
|
758
|
|
|
(592
|
)
|
|
759
|
|
||||
|
Other (1)
|
|
9,665
|
|
|
9,162
|
|
|
17,534
|
|
|
19,079
|
|
||||
|
Total noninterest expense
|
|
86,728
|
|
|
84,643
|
|
|
171,428
|
|
|
170,630
|
|
||||
|
Income before income taxes
|
|
63,818
|
|
|
51,748
|
|
|
120,474
|
|
|
98,533
|
|
||||
|
Income tax provision
|
|
12,094
|
|
|
9,999
|
|
|
22,879
|
|
|
16,814
|
|
||||
|
Net Income
|
|
$
|
51,724
|
|
|
$
|
41,749
|
|
|
$
|
97,595
|
|
|
$
|
81,719
|
|
|
Earnings per common share
|
|
|
|
|
|
|
|
|
||||||||
|
Basic
|
|
$
|
0.71
|
|
|
$
|
0.57
|
|
|
$
|
1.33
|
|
|
$
|
1.12
|
|
|
Diluted
|
|
$
|
0.71
|
|
|
$
|
0.57
|
|
|
$
|
1.33
|
|
|
$
|
1.12
|
|
|
Weighted average number of common shares outstanding
|
|
72,451
|
|
|
72,385
|
|
|
72,486
|
|
|
72,343
|
|
||||
|
Weighted average number of diluted common shares outstanding
|
|
72,451
|
|
|
72,390
|
|
|
72,487
|
|
|
72,347
|
|
||||
|
|
|
Three Months Ended
|
||||||
|
|
|
June 30,
|
||||||
|
|
|
2019
|
|
2018
|
||||
|
|
|
(in thousands)
|
||||||
|
Net income
|
|
$
|
51,724
|
|
|
$
|
41,749
|
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
||||
|
Unrealized gain (loss) from securities:
|
|
|
|
|
||||
|
Net unrealized holding gain (loss) from available for sale debt securities arising during the period, net of tax of ($11,217) and $2,376
|
|
37,029
|
|
|
(7,845
|
)
|
||
|
Reclassification adjustment of net gain from sale of available for sale debt securities included in income, net of tax of $66 and $1
|
|
(219
|
)
|
|
(4
|
)
|
||
|
Net unrealized gain (loss) from securities, net of reclassification adjustment
|
|
36,810
|
|
|
(7,849
|
)
|
||
|
Pension plan liability adjustment:
|
|
|
|
|
||||
|
Amortization of unrecognized net actuarial loss included in net periodic pension cost, net of tax of ($19) and ($19)
|
|
61
|
|
|
61
|
|
||
|
Pension plan liability adjustment, net
|
|
61
|
|
|
61
|
|
||
|
Unrealized gain from cash flow hedging instruments:
|
|
|
|
|
||||
|
Net unrealized gain in cash flow hedging instruments arising during the period, net of tax of ($2,191) and $0
|
|
7,233
|
|
|
—
|
|
||
|
Net unrealized gain from cash flow hedging instruments, net of reclassification adjustment
|
|
7,233
|
|
|
—
|
|
||
|
Other comprehensive income (loss)
|
|
44,104
|
|
|
(7,788
|
)
|
||
|
Total comprehensive income
|
|
$
|
95,828
|
|
|
$
|
33,961
|
|
|
|
|
Six Months Ended
|
||||||
|
|
|
June 30,
|
||||||
|
|
|
2019
|
|
2018
|
||||
|
|
|
(in thousands)
|
||||||
|
Net income
|
|
$
|
97,595
|
|
|
$
|
81,719
|
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
||||
|
Unrealized gain (loss) from securities:
|
|
|
|
|
||||
|
Net unrealized holding gain (loss) from available for sale debt securities arising during the period, net of tax of ($21,788) and $10,267
|
|
71,926
|
|
|
(33,893
|
)
|
||
|
Reclassification adjustment of net gain from sale of available for sale debt securities included in income, net of tax of $496 and $25
|
|
(1,636
|
)
|
|
(82
|
)
|
||
|
Net unrealized gain (loss) from securities, net of reclassification adjustment
|
|
70,290
|
|
|
(33,975
|
)
|
||
|
Pension plan liability adjustment:
|
|
|
|
|
||||
|
Amortization of unrecognized net actuarial loss included in net periodic pension cost, net of tax of ($37) and ($38)
|
|
122
|
|
|
122
|
|
||
|
Pension plan liability adjustment, net
|
|
122
|
|
|
122
|
|
||
|
Unrealized gain from cash flow hedging instruments:
|
|
|
|
|
||||
|
Net unrealized gain in cash flow hedging instruments arising during the period, net of tax of ($3,648) and $0
|
|
12,043
|
|
|
—
|
|
||
|
Net unrealized gain from cash flow hedging instruments, net of reclassification adjustment
|
|
12,043
|
|
|
—
|
|
||
|
Other comprehensive income (loss)
|
|
82,455
|
|
|
(33,853
|
)
|
||
|
Total comprehensive income
|
|
$
|
180,050
|
|
|
$
|
47,866
|
|
|
|
|
Common Stock
|
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Treasury Stock
|
|
Total
Shareholders’ Equity |
|||||||||||||
|
|
|
Shares Outstanding
|
|
Amount
|
|
||||||||||||||||||
|
For the Three Months Ended June 30, 2019
|
|
(in thousands except per share amounts)
|
|||||||||||||||||||||
|
Balance at April 1, 2019
|
|
73,565
|
|
|
$
|
1,642,977
|
|
|
$
|
442,597
|
|
|
$
|
3,046
|
|
|
$
|
—
|
|
|
$
|
2,088,620
|
|
|
Net income
|
|
—
|
|
|
—
|
|
|
51,724
|
|
|
—
|
|
|
—
|
|
|
51,724
|
|
|||||
|
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44,104
|
|
|
—
|
|
|
44,104
|
|
|||||
|
Issuance of common stock - stock option and other plans
|
|
2
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|||||
|
Activity in deferred compensation plan
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
|
Issuance of common stock - restricted stock awards, net of canceled awards
|
|
(10
|
)
|
|
2,243
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,243
|
|
|||||
|
Purchase and retirement of common stock
|
|
(9
|
)
|
|
(314
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(314
|
)
|
|||||
|
Cash dividends declared on common stock ($0.42 per share)
|
|
—
|
|
|
—
|
|
|
(30,892
|
)
|
|
—
|
|
|
—
|
|
|
(30,892
|
)
|
|||||
|
Purchase of treasury stock
|
|
(624
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21,863
|
)
|
|
(21,863
|
)
|
|||||
|
Balance at June 30, 2019
|
|
72,924
|
|
|
$
|
1,644,922
|
|
|
$
|
463,429
|
|
|
$
|
47,150
|
|
|
$
|
(21,863
|
)
|
|
$
|
2,133,638
|
|
|
For the Six Months Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Balance at January 1, 2019
|
|
73,249
|
|
|
$
|
1,642,246
|
|
|
$
|
426,708
|
|
|
$
|
(35,305
|
)
|
|
$
|
—
|
|
|
$
|
2,033,649
|
|
|
Adjustment to opening retained earnings pursuant to adoption of ASU 2016-02
|
|
—
|
|
|
—
|
|
|
782
|
|
|
—
|
|
|
—
|
|
|
782
|
|
|||||
|
Net income
|
|
—
|
|
|
—
|
|
|
97,595
|
|
|
—
|
|
|
—
|
|
|
97,595
|
|
|||||
|
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
82,455
|
|
|
—
|
|
|
82,455
|
|
|||||
|
Issuance of common stock - stock option and other plans
|
|
27
|
|
|
893
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
893
|
|
|||||
|
Activity in deferred compensation plan
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
|
Issuance of common stock - restricted stock awards, net of canceled awards
|
|
345
|
|
|
4,528
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,528
|
|
|||||
|
Purchase and retirement of common stock
|
|
(73
|
)
|
|
(2,746
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,746
|
)
|
|||||
|
Cash dividends declared on common stock ($0.84 per share)
|
|
—
|
|
|
—
|
|
|
(61,656
|
)
|
|
—
|
|
|
—
|
|
|
(61,656
|
)
|
|||||
|
Purchase of treasury stock
|
|
(624
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21,863
|
)
|
|
(21,863
|
)
|
|||||
|
Balance at June 30, 2019
|
|
72,924
|
|
|
$
|
1,644,922
|
|
|
$
|
463,429
|
|
|
$
|
47,150
|
|
|
$
|
(21,863
|
)
|
|
$
|
2,133,638
|
|
|
|
|
Common Stock
|
|
Retained
Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Treasury Stock
|
|
Total
Shareholders’ Equity |
|||||||||||||
|
|
|
Shares Outstanding
|
|
Amount
|
|
||||||||||||||||||
|
For the Three Months Ended June 30, 2018
|
|
(in thousands except per share amounts)
|
|||||||||||||||||||||
|
Balance at April 1, 2018
|
|
73,240
|
|
|
$
|
1,634,916
|
|
|
$
|
361,140
|
|
|
$
|
(48,133
|
)
|
|
$
|
—
|
|
|
$
|
1,947,923
|
|
|
Adjustment to opening retained earnings pursuant to adoption of ASU 2016-01
|
|
—
|
|
|
—
|
|
|
46
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|||||
|
Net income
|
|
—
|
|
|
—
|
|
|
41,749
|
|
|
—
|
|
|
—
|
|
|
41,749
|
|
|||||
|
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,788
|
)
|
|
—
|
|
|
(7,788
|
)
|
|||||
|
Issuance of common stock - stock option and other plans
|
|
2
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|||||
|
Activity in deferred compensation plan
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
|
Issuance of common stock - restricted stock awards, net of canceled awards
|
|
5
|
|
|
2,019
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,019
|
|
|||||
|
Purchase and retirement of common stock
|
|
(2
|
)
|
|
(52
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(52
|
)
|
|||||
|
Cash dividends declared on common stock ($0.26 per share)
|
|
—
|
|
|
—
|
|
|
(19,036
|
)
|
|
—
|
|
|
—
|
|
|
(19,036
|
)
|
|||||
|
Balance at June 30, 2018
|
|
73,245
|
|
|
$
|
1,636,903
|
|
|
$
|
383,899
|
|
|
$
|
(55,921
|
)
|
|
$
|
—
|
|
|
$
|
1,964,881
|
|
|
For the Six Months Ended June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Balance at January 1, 2018
|
|
73,020
|
|
|
$
|
1,634,705
|
|
|
$
|
337,442
|
|
|
$
|
(22,225
|
)
|
|
$
|
—
|
|
|
$
|
1,949,922
|
|
|
Adjustment to opening retained earnings pursuant to adoption of ASU 2016-01
|
|
—
|
|
|
—
|
|
|
(157
|
)
|
|
157
|
|
|
—
|
|
|
—
|
|
|||||
|
Net income
|
|
—
|
|
|
—
|
|
|
81,719
|
|
|
—
|
|
|
—
|
|
|
81,719
|
|
|||||
|
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33,853
|
)
|
|
—
|
|
|
(33,853
|
)
|
|||||
|
Issuance of common stock - stock option and other plans
|
|
19
|
|
|
736
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
736
|
|
|||||
|
Activity in deferred compensation plan
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
|
Issuance of common stock - restricted stock awards, net of canceled awards
|
|
268
|
|
|
4,083
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,083
|
|
|||||
|
Purchase and retirement of common stock
|
|
(62
|
)
|
|
(2,627
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,627
|
)
|
|||||
|
Cash dividends declared on common stock ($0.48 per share)
|
|
—
|
|
|
—
|
|
|
(35,105
|
)
|
|
—
|
|
|
—
|
|
|
(35,105
|
)
|
|||||
|
Balance at June 30, 2018
|
|
73,245
|
|
|
$
|
1,636,903
|
|
|
$
|
383,899
|
|
|
$
|
(55,921
|
)
|
|
$
|
—
|
|
|
$
|
1,964,881
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS, Continued
Columbia Banking System, Inc.
(Unaudited)
|
||||||||
|
|
|
Six Months Ended June 30,
|
||||||
|
|
|
2019
|
|
2018
|
||||
|
|
|
(in thousands)
|
||||||
|
Supplemental Information:
|
|
|
|
|
||||
|
Interest paid
|
|
$
|
16,564
|
|
|
$
|
7,573
|
|
|
Income taxes paid, net of refunds
|
|
$
|
20,940
|
|
|
$
|
3,621
|
|
|
Non-cash investing and financing activities
|
|
|
|
|
||||
|
Loans transferred to OREO
|
|
$
|
386
|
|
|
$
|
406
|
|
|
Premises and equipment expenditures incurred but not yet paid
|
|
$
|
56
|
|
|
$
|
40
|
|
|
Change in dividends payable on unvested shares included in other liabilities
|
|
$
|
145
|
|
|
$
|
—
|
|
|
1.
|
Basis of Presentation, Significant Accounting Policies and Reclassifications
|
|
2.
|
Accounting Pronouncements Recently Adopted or Issued
|
|
3.
|
Securities
|
|
|
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair Value
|
||||||||
|
June 30, 2019
|
|
(in thousands)
|
||||||||||||||
|
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations
|
|
$
|
2,099,819
|
|
|
$
|
50,980
|
|
|
$
|
(11,303
|
)
|
|
$
|
2,139,496
|
|
|
State and municipal securities
|
|
503,279
|
|
|
7,459
|
|
|
(1,059
|
)
|
|
509,679
|
|
||||
|
U.S. government agency and government-sponsored enterprise securities
|
|
212,655
|
|
|
2,527
|
|
|
(188
|
)
|
|
214,994
|
|
||||
|
U.S. government securities
|
|
250
|
|
|
—
|
|
|
(1
|
)
|
|
249
|
|
||||
|
Total
|
|
$
|
2,816,003
|
|
|
$
|
60,966
|
|
|
$
|
(12,551
|
)
|
|
$
|
2,864,418
|
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
|
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations
|
|
$
|
2,222,521
|
|
|
$
|
9,236
|
|
|
$
|
(43,467
|
)
|
|
$
|
2,188,290
|
|
|
State and municipal securities
|
|
579,755
|
|
|
2,328
|
|
|
(7,760
|
)
|
|
574,323
|
|
||||
|
U.S. government agency and government-sponsored enterprise securities
|
|
408,088
|
|
|
1,235
|
|
|
(4,736
|
)
|
|
404,587
|
|
||||
|
U.S. government securities
|
|
251
|
|
|
—
|
|
|
(3
|
)
|
|
248
|
|
||||
|
Total
|
|
$
|
3,210,615
|
|
|
$
|
12,799
|
|
|
$
|
(55,966
|
)
|
|
$
|
3,167,448
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
(in thousands)
|
||||||||||||||
|
Proceeds from sales of debt securities available for sale
|
|
$
|
175,586
|
|
|
$
|
12,569
|
|
|
$
|
259,554
|
|
|
$
|
32,330
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Gross realized gains from sales of debt securities available for sale
|
|
$
|
1,510
|
|
|
$
|
87
|
|
|
$
|
3,357
|
|
|
$
|
235
|
|
|
Gross realized losses from sales of debt securities available for sale
|
|
(1,225
|
)
|
|
(83
|
)
|
|
(1,225
|
)
|
|
(129
|
)
|
||||
|
Other securities losses, net (1)
|
|
—
|
|
|
(37
|
)
|
|
—
|
|
|
(117
|
)
|
||||
|
Investment securities gains, net
|
|
$
|
285
|
|
|
$
|
(33
|
)
|
|
$
|
2,132
|
|
|
$
|
(11
|
)
|
|
|
|
June 30, 2019
|
||||||
|
|
|
Amortized Cost
|
|
Fair Value
|
||||
|
|
|
(in thousands)
|
||||||
|
Due within one year
|
|
$
|
95,802
|
|
|
$
|
95,869
|
|
|
Due after one year through five years
|
|
438,632
|
|
|
441,541
|
|
||
|
Due after five years through ten years
|
|
1,315,811
|
|
|
1,361,873
|
|
||
|
Due after ten years
|
|
965,758
|
|
|
965,135
|
|
||
|
Total debt securities available for sale
|
|
$
|
2,816,003
|
|
|
$
|
2,864,418
|
|
|
|
|
June 30, 2019
|
||
|
|
|
(in thousands)
|
||
|
Washington and Oregon State to secure public deposits
|
|
$
|
280,968
|
|
|
FRB to secure borrowings
|
|
52,329
|
|
|
|
Other securities pledged
|
|
156,218
|
|
|
|
Total securities pledged as collateral
|
|
$
|
489,515
|
|
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
|
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
|
Fair
Value |
|
Unrealized
Losses |
||||||||||||
|
June 30, 2019
|
|
(in thousands)
|
||||||||||||||||||||||
|
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations
|
|
$
|
1,165
|
|
|
$
|
(6
|
)
|
|
$
|
785,380
|
|
|
$
|
(11,297
|
)
|
|
$
|
786,545
|
|
|
$
|
(11,303
|
)
|
|
State and municipal securities
|
|
8,895
|
|
|
(33
|
)
|
|
105,708
|
|
|
(1,026
|
)
|
|
114,603
|
|
|
(1,059
|
)
|
||||||
|
U.S. government agency and government-sponsored enterprise securities
|
|
502
|
|
|
—
|
|
|
64,376
|
|
|
(188
|
)
|
|
64,878
|
|
|
(188
|
)
|
||||||
|
U.S. government securities
|
|
—
|
|
|
—
|
|
|
249
|
|
|
(1
|
)
|
|
249
|
|
|
(1
|
)
|
||||||
|
Total
|
|
$
|
10,562
|
|
|
$
|
(39
|
)
|
|
$
|
955,713
|
|
|
$
|
(12,512
|
)
|
|
$
|
966,275
|
|
|
$
|
(12,551
|
)
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations
|
|
$
|
154,622
|
|
|
$
|
(972
|
)
|
|
$
|
1,301,387
|
|
|
$
|
(42,495
|
)
|
|
$
|
1,456,009
|
|
|
$
|
(43,467
|
)
|
|
State and municipal securities
|
|
106,292
|
|
|
(581
|
)
|
|
280,496
|
|
|
(7,179
|
)
|
|
386,788
|
|
|
(7,760
|
)
|
||||||
|
U.S. government agency and government-sponsored enterprise securities
|
|
15,392
|
|
|
(45
|
)
|
|
291,435
|
|
|
(4,691
|
)
|
|
306,827
|
|
|
(4,736
|
)
|
||||||
|
U.S. government securities
|
|
—
|
|
|
—
|
|
|
247
|
|
|
(3
|
)
|
|
247
|
|
|
(3
|
)
|
||||||
|
Total
|
|
$
|
276,306
|
|
|
$
|
(1,598
|
)
|
|
$
|
1,873,565
|
|
|
$
|
(54,368
|
)
|
|
$
|
2,149,871
|
|
|
$
|
(55,966
|
)
|
|
4.
|
Loans
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
|
|
Loans, excluding PCI loans
|
|
PCI Loans
|
|
Total
|
|
Loans, excluding PCI loans
|
|
PCI Loans
|
|
Total
|
||||||||||||
|
|
|
(in thousands)
|
||||||||||||||||||||||
|
Commercial business
|
|
$
|
3,644,051
|
|
|
$
|
9,330
|
|
|
$
|
3,653,381
|
|
|
$
|
3,438,422
|
|
|
$
|
9,240
|
|
|
$
|
3,447,662
|
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
One-to-four family residential
|
|
279,091
|
|
|
7,557
|
|
|
286,648
|
|
|
238,367
|
|
|
8,017
|
|
|
246,384
|
|
||||||
|
Commercial and multifamily residential
|
|
3,913,546
|
|
|
58,518
|
|
|
3,972,064
|
|
|
3,846,027
|
|
|
62,910
|
|
|
3,908,937
|
|
||||||
|
Total real estate
|
|
4,192,637
|
|
|
66,075
|
|
|
4,258,712
|
|
|
4,084,394
|
|
|
70,927
|
|
|
4,155,321
|
|
||||||
|
Real estate construction:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
One-to-four family residential
|
|
201,783
|
|
|
143
|
|
|
201,926
|
|
|
217,790
|
|
|
153
|
|
|
217,943
|
|
||||||
|
Commercial and multifamily residential
|
|
255,452
|
|
|
498
|
|
|
255,950
|
|
|
284,394
|
|
|
534
|
|
|
284,928
|
|
||||||
|
Total real estate construction
|
|
457,235
|
|
|
641
|
|
|
457,876
|
|
|
502,184
|
|
|
687
|
|
|
502,871
|
|
||||||
|
Consumer
|
|
305,752
|
|
|
8,684
|
|
|
314,436
|
|
|
318,945
|
|
|
8,906
|
|
|
327,851
|
|
||||||
|
Less: Net unearned income
|
|
(37,415
|
)
|
|
—
|
|
|
(37,415
|
)
|
|
(42,194
|
)
|
|
—
|
|
|
(42,194
|
)
|
||||||
|
Total loans, net of unearned income
|
|
8,562,260
|
|
|
84,730
|
|
|
8,646,990
|
|
|
8,301,751
|
|
|
89,760
|
|
|
8,391,511
|
|
||||||
|
Less: ALLL
|
|
(77,248
|
)
|
|
(3,269
|
)
|
|
(80,517
|
)
|
|
(79,758
|
)
|
|
(3,611
|
)
|
|
(83,369
|
)
|
||||||
|
Total loans, net
|
|
$
|
8,485,012
|
|
|
$
|
81,461
|
|
|
$
|
8,566,473
|
|
|
$
|
8,221,993
|
|
|
$
|
86,149
|
|
|
$
|
8,308,142
|
|
|
Loans held for sale
|
|
$
|
12,189
|
|
|
$
|
—
|
|
|
$
|
12,189
|
|
|
$
|
3,849
|
|
|
$
|
—
|
|
|
$
|
3,849
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
|
|
Recorded
Investment Nonaccrual Loans |
|
Unpaid Principal
Balance Nonaccrual Loans |
|
Recorded
Investment Nonaccrual Loans |
|
Unpaid Principal
Balance Nonaccrual Loans |
||||||||
|
|
|
(in thousands)
|
||||||||||||||
|
Commercial business:
|
|
|
|
|
|
|
|
|
||||||||
|
Secured
|
|
$
|
23,982
|
|
|
$
|
32,851
|
|
|
$
|
35,504
|
|
|
$
|
45,072
|
|
|
Unsecured
|
|
15
|
|
|
15
|
|
|
9
|
|
|
9
|
|
||||
|
Real estate:
|
|
|
|
|
|
|
|
|
||||||||
|
One-to-four family residential
|
|
860
|
|
|
888
|
|
|
1,158
|
|
|
1,178
|
|
||||
|
Commercial & multifamily residential:
|
|
|
|
|
|
|
|
|
||||||||
|
Commercial land
|
|
2,565
|
|
|
2,573
|
|
|
2,261
|
|
|
2,270
|
|
||||
|
Income property
|
|
1,814
|
|
|
1,851
|
|
|
2,721
|
|
|
3,062
|
|
||||
|
Owner occupied
|
|
7,464
|
|
|
7,601
|
|
|
9,922
|
|
|
10,300
|
|
||||
|
Real estate construction:
|
|
|
|
|
|
|
|
|
||||||||
|
One-to-four family residential:
|
|
|
|
|
|
|
|
|
||||||||
|
Land and acquisition
|
|
—
|
|
|
—
|
|
|
318
|
|
|
318
|
|
||||
|
Consumer
|
|
2,338
|
|
|
2,661
|
|
|
2,949
|
|
|
3,149
|
|
||||
|
Total
|
|
$
|
39,038
|
|
|
$
|
48,440
|
|
|
$
|
54,842
|
|
|
$
|
65,358
|
|
|
|
|
Current
Loans |
|
30 - 59
Days Past Due |
|
60 - 89
Days Past Due |
|
Greater
than 90 Days Past Due |
|
Total
Past Due |
|
Nonaccrual
Loans |
|
Total Loans
|
||||||||||||||
|
June 30, 2019
|
|
(in thousands)
|
||||||||||||||||||||||||||
|
Commercial business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Secured
|
|
$
|
3,471,016
|
|
|
$
|
4,103
|
|
|
$
|
3,294
|
|
|
$
|
—
|
|
|
$
|
7,397
|
|
|
$
|
23,982
|
|
|
$
|
3,502,395
|
|
|
Unsecured
|
|
128,865
|
|
|
438
|
|
|
—
|
|
|
—
|
|
|
438
|
|
|
15
|
|
|
129,318
|
|
|||||||
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
One-to-four family residential
|
|
274,537
|
|
|
2,969
|
|
|
352
|
|
|
—
|
|
|
3,321
|
|
|
860
|
|
|
278,718
|
|
|||||||
|
Commercial & multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Commercial land
|
|
289,574
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,565
|
|
|
292,139
|
|
|||||||
|
Income property
|
|
1,946,429
|
|
|
1,022
|
|
|
—
|
|
|
—
|
|
|
1,022
|
|
|
1,814
|
|
|
1,949,265
|
|
|||||||
|
Owner occupied
|
|
1,640,358
|
|
|
2,981
|
|
|
511
|
|
|
—
|
|
|
3,492
|
|
|
7,464
|
|
|
1,651,314
|
|
|||||||
|
Real estate construction:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
One-to-four family residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Land and acquisition
|
|
1,683
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,683
|
|
|||||||
|
Residential construction
|
|
199,154
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
199,154
|
|
|||||||
|
Commercial & multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Income property
|
|
163,074
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
163,074
|
|
|||||||
|
Owner occupied
|
|
87,561
|
|
|
—
|
|
|
2,204
|
|
|
—
|
|
|
2,204
|
|
|
—
|
|
|
89,765
|
|
|||||||
|
Consumer
|
|
302,323
|
|
|
604
|
|
|
170
|
|
|
—
|
|
|
774
|
|
|
2,338
|
|
|
305,435
|
|
|||||||
|
Total
|
|
$
|
8,504,574
|
|
|
$
|
12,117
|
|
|
$
|
6,531
|
|
|
$
|
—
|
|
|
$
|
18,648
|
|
|
$
|
39,038
|
|
|
$
|
8,562,260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
Current
Loans |
|
30 - 59
Days Past Due |
|
60 - 89
Days Past Due |
|
Greater
than 90 Days Past Due |
|
Total
Past Due |
|
Nonaccrual
Loans |
|
Total Loans
|
||||||||||||||
|
December 31, 2018
|
|
(in thousands)
|
||||||||||||||||||||||||||
|
Commercial business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Secured
|
|
$
|
3,267,709
|
|
|
$
|
5,864
|
|
|
$
|
3,624
|
|
|
$
|
—
|
|
|
$
|
9,488
|
|
|
$
|
35,504
|
|
|
$
|
3,312,701
|
|
|
Unsecured
|
|
111,868
|
|
|
240
|
|
|
—
|
|
|
—
|
|
|
240
|
|
|
9
|
|
|
112,117
|
|
|||||||
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
One-to-four family residential
|
|
233,941
|
|
|
694
|
|
|
233
|
|
|
—
|
|
|
927
|
|
|
1,158
|
|
|
236,026
|
|
|||||||
|
Commercial & multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Commercial land
|
|
283,416
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,261
|
|
|
285,677
|
|
|||||||
|
Income property
|
|
1,910,505
|
|
|
5,009
|
|
|
2,241
|
|
|
—
|
|
|
7,250
|
|
|
2,721
|
|
|
1,920,476
|
|
|||||||
|
Owner occupied
|
|
1,606,085
|
|
|
1,744
|
|
|
—
|
|
|
—
|
|
|
1,744
|
|
|
9,922
|
|
|
1,617,751
|
|
|||||||
|
Real estate construction:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
One-to-four family residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Land and acquisition
|
|
4,099
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
318
|
|
|
4,417
|
|
|||||||
|
Residential construction
|
|
212,303
|
|
|
93
|
|
|
—
|
|
|
—
|
|
|
93
|
|
|
—
|
|
|
212,396
|
|
|||||||
|
Commercial & multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Income property
|
|
194,912
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
194,912
|
|
|||||||
|
Owner occupied
|
|
79,805
|
|
|
7,258
|
|
|
—
|
|
|
—
|
|
|
7,258
|
|
|
—
|
|
|
87,063
|
|
|||||||
|
Consumer
|
|
314,008
|
|
|
1,057
|
|
|
201
|
|
|
—
|
|
|
1,258
|
|
|
2,949
|
|
|
318,215
|
|
|||||||
|
Total
|
|
$
|
8,218,651
|
|
|
$
|
21,959
|
|
|
$
|
6,299
|
|
|
$
|
—
|
|
|
$
|
28,258
|
|
|
$
|
54,842
|
|
|
$
|
8,301,751
|
|
|
|
|
Recorded Investment
of Loans Collectively Measured for Contingency Provision |
|
Recorded Investment
of Loans Individually Measured for Specific Impairment |
|
Impaired Loans With
Recorded Allowance |
|
Impaired Loans Without
Recorded Allowance |
||||||||||||||||||||
|
|
|
Recorded
Investment |
|
Unpaid
Principal Balance |
|
Related
Allowance |
|
Recorded
Investment |
|
Unpaid
Principal Balance |
||||||||||||||||||
|
June 30, 2019
|
|
(in thousands)
|
||||||||||||||||||||||||||
|
Commercial business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Secured
|
|
$
|
3,485,136
|
|
|
$
|
17,259
|
|
|
$
|
4,432
|
|
|
$
|
5,661
|
|
|
$
|
740
|
|
|
$
|
12,827
|
|
|
$
|
16,997
|
|
|
Unsecured
|
|
129,302
|
|
|
16
|
|
|
16
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
One-to-four family residential
|
|
277,873
|
|
|
845
|
|
|
315
|
|
|
596
|
|
|
6
|
|
|
530
|
|
|
755
|
|
|||||||
|
Commercial & multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Commercial land
|
|
289,277
|
|
|
2,862
|
|
|
2,233
|
|
|
2,241
|
|
|
666
|
|
|
629
|
|
|
667
|
|
|||||||
|
Income property
|
|
1,947,936
|
|
|
1,329
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,329
|
|
|
1,362
|
|
|||||||
|
Owner occupied
|
|
1,641,023
|
|
|
10,291
|
|
|
3,129
|
|
|
4,614
|
|
|
43
|
|
|
7,162
|
|
|
7,272
|
|
|||||||
|
Real estate construction:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
One-to-four family residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Land and acquisition
|
|
1,683
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Residential construction
|
|
199,154
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Commercial & multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Income property
|
|
163,074
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Owner occupied
|
|
89,765
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Consumer
|
|
301,978
|
|
|
3,457
|
|
|
1,141
|
|
|
1,275
|
|
|
20
|
|
|
2,316
|
|
|
2,460
|
|
|||||||
|
Total
|
|
$
|
8,526,201
|
|
|
$
|
36,059
|
|
|
$
|
11,266
|
|
|
$
|
14,403
|
|
|
$
|
1,475
|
|
|
$
|
24,793
|
|
|
$
|
29,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
Recorded Investment
of Loans Collectively Measured for Contingency Provision |
|
Recorded Investment
of Loans Individually Measured for Specific Impairment |
|
Impaired Loans With
Recorded Allowance |
|
Impaired Loans Without
Recorded Allowance |
||||||||||||||||||||
|
|
|
|
|
Recorded
Investment |
|
Unpaid
Principal Balance |
|
Related
Allowance |
|
Recorded
Investment |
|
Unpaid
Principal Balance |
||||||||||||||||
|
December 31, 2018
|
|
(in thousands)
|
||||||||||||||||||||||||||
|
Commercial business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Secured
|
|
$
|
3,286,416
|
|
|
$
|
26,285
|
|
|
$
|
6,350
|
|
|
$
|
8,460
|
|
|
$
|
2,023
|
|
|
$
|
19,935
|
|
|
$
|
24,404
|
|
|
Unsecured
|
|
112,097
|
|
|
20
|
|
|
20
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
One-to-four family residential
|
|
235,138
|
|
|
888
|
|
|
325
|
|
|
798
|
|
|
8
|
|
|
563
|
|
|
575
|
|
|||||||
|
Commercial & multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Commercial land
|
|
283,451
|
|
|
2,226
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,226
|
|
|
2,272
|
|
|||||||
|
Income property
|
|
1,917,522
|
|
|
2,954
|
|
|
99
|
|
|
165
|
|
|
1
|
|
|
2,855
|
|
|
3,011
|
|
|||||||
|
Owner occupied
|
|
1,605,042
|
|
|
12,709
|
|
|
3,231
|
|
|
4,666
|
|
|
69
|
|
|
9,478
|
|
|
9,750
|
|
|||||||
|
Real estate construction:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
One-to-four family residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Land and acquisition
|
|
4,417
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Residential construction
|
|
212,396
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Commercial & multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Income property
|
|
194,912
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Owner occupied
|
|
87,063
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Consumer
|
|
314,193
|
|
|
4,022
|
|
|
3,326
|
|
|
3,584
|
|
|
31
|
|
|
696
|
|
|
704
|
|
|||||||
|
Total
|
|
$
|
8,252,647
|
|
|
$
|
49,104
|
|
|
$
|
13,351
|
|
|
$
|
17,693
|
|
|
$
|
2,132
|
|
|
$
|
35,753
|
|
|
$
|
40,716
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||||||||||
|
|
|
Average Recorded
Investment Impaired Loans |
|
Interest Recognized
on Impaired Loans |
|
Average Recorded
Investment Impaired Loans |
|
Interest Recognized
on Impaired Loans |
|
Average Recorded
Investment Impaired Loans |
|
Interest Recognized
on Impaired Loans |
|
Average Recorded
Investment Impaired Loans |
|
Interest Recognized
on Impaired Loans |
||||||||||||||||
|
|
|
(in thousands)
|
||||||||||||||||||||||||||||||
|
Commercial business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Secured
|
|
$
|
23,733
|
|
|
$
|
18
|
|
|
$
|
45,716
|
|
|
$
|
85
|
|
|
$
|
24,584
|
|
|
$
|
29
|
|
|
$
|
43,815
|
|
|
$
|
97
|
|
|
Unsecured
|
|
18
|
|
|
—
|
|
|
444
|
|
|
1
|
|
|
18
|
|
|
1
|
|
|
304
|
|
|
1
|
|
||||||||
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
One-to-four family residential
|
|
855
|
|
|
12
|
|
|
780
|
|
|
12
|
|
|
866
|
|
|
18
|
|
|
818
|
|
|
18
|
|
||||||||
|
Commercial & multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Commercial land
|
|
2,864
|
|
|
8
|
|
|
2,557
|
|
|
—
|
|
|
2,651
|
|
|
15
|
|
|
2,467
|
|
|
—
|
|
||||||||
|
Income property
|
|
1,325
|
|
|
—
|
|
|
2,846
|
|
|
32
|
|
|
1,868
|
|
|
—
|
|
|
3,572
|
|
|
62
|
|
||||||||
|
Owner occupied
|
|
13,421
|
|
|
147
|
|
|
8,768
|
|
|
124
|
|
|
13,184
|
|
|
193
|
|
|
8,741
|
|
|
209
|
|
||||||||
|
Real estate construction:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
One-to-four family residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Residential construction
|
|
—
|
|
|
—
|
|
|
605
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
807
|
|
|
—
|
|
||||||||
|
Commercial & multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Owner occupied
|
|
—
|
|
|
—
|
|
|
4,050
|
|
|
51
|
|
|
—
|
|
|
—
|
|
|
4,050
|
|
|
102
|
|
||||||||
|
Consumer
|
|
3,456
|
|
|
21
|
|
|
6,391
|
|
|
34
|
|
|
3,644
|
|
|
37
|
|
|
6,599
|
|
|
77
|
|
||||||||
|
Total
|
|
$
|
45,672
|
|
|
$
|
206
|
|
|
$
|
72,157
|
|
|
$
|
339
|
|
|
$
|
46,815
|
|
|
$
|
293
|
|
|
$
|
71,173
|
|
|
$
|
566
|
|
|
|
|
Three Months Ended June 30, 2019
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||
|
|
|
Number of TDR Modifications
|
|
Pre-Modification
Outstanding Recorded Investment |
|
Post-Modification
Outstanding Recorded Investment |
|
Number of TDR Modifications
|
|
Pre-Modification
Outstanding Recorded Investment |
|
Post-Modification
Outstanding Recorded Investment |
||||||||||
|
|
|
(dollars in thousands)
|
||||||||||||||||||||
|
Commercial business:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Secured
|
|
3
|
|
|
$
|
918
|
|
|
$
|
918
|
|
|
7
|
|
|
$
|
2,644
|
|
|
$
|
2,644
|
|
|
Consumer
|
|
4
|
|
|
118
|
|
|
118
|
|
|
8
|
|
|
1,274
|
|
|
1,274
|
|
||||
|
Total
|
|
7
|
|
|
$
|
1,036
|
|
|
$
|
1,036
|
|
|
15
|
|
|
$
|
3,918
|
|
|
$
|
3,918
|
|
|
|
|
Six Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||
|
|
|
Number of TDR Modifications
|
|
Pre-Modification
Outstanding Recorded Investment |
|
Post-Modification
Outstanding Recorded Investment |
|
Number of TDR Modifications
|
|
Pre-Modification
Outstanding Recorded Investment |
|
Post-Modification
Outstanding Recorded Investment |
||||||||||
|
|
|
(dollars in thousands)
|
||||||||||||||||||||
|
Commercial business:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Secured
|
|
5
|
|
|
$
|
1,534
|
|
|
$
|
1,534
|
|
|
8
|
|
|
$
|
3,094
|
|
|
$
|
3,094
|
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Commercial and multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Income property
|
|
1
|
|
|
217
|
|
|
217
|
|
|
1
|
|
|
891
|
|
|
891
|
|
||||
|
Consumer
|
|
4
|
|
|
118
|
|
|
118
|
|
|
15
|
|
|
2,417
|
|
|
2,417
|
|
||||
|
Total
|
|
10
|
|
|
$
|
1,869
|
|
|
$
|
1,869
|
|
|
24
|
|
|
$
|
6,402
|
|
|
$
|
6,402
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
|
|
(in thousands)
|
||||||
|
Commercial business
|
|
$
|
9,578
|
|
|
$
|
9,672
|
|
|
Real estate:
|
|
|
|
|
||||
|
One-to-four family residential
|
|
9,019
|
|
|
9,848
|
|
||
|
Commercial and multifamily residential
|
|
61,372
|
|
|
66,340
|
|
||
|
Total real estate
|
|
70,391
|
|
|
76,188
|
|
||
|
Real estate construction:
|
|
|
|
|
||||
|
One-to-four family residential
|
|
143
|
|
|
153
|
|
||
|
Commercial and multifamily residential
|
|
474
|
|
|
507
|
|
||
|
Total real estate construction
|
|
617
|
|
|
660
|
|
||
|
Consumer
|
|
9,402
|
|
|
9,765
|
|
||
|
Subtotal of PCI loans
|
|
89,988
|
|
|
96,285
|
|
||
|
Less:
|
|
|
|
|
||||
|
Valuation discount resulting from acquisition accounting
|
|
5,258
|
|
|
6,525
|
|
||
|
ALLL
|
|
3,269
|
|
|
3,611
|
|
||
|
PCI loans, net of valuation discounts and allowance for loan losses
|
|
$
|
81,461
|
|
|
$
|
86,149
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
(in thousands)
|
||||||||||||||
|
Balance at beginning of period
|
|
$
|
21,849
|
|
|
$
|
29,355
|
|
|
$
|
21,949
|
|
|
$
|
31,176
|
|
|
Accretion
|
|
(1,999
|
)
|
|
(1,937
|
)
|
|
(3,576
|
)
|
|
(4,202
|
)
|
||||
|
Disposals
|
|
3
|
|
|
(7
|
)
|
|
106
|
|
|
(166
|
)
|
||||
|
Reclassifications to (from) nonaccretable difference
|
|
1,136
|
|
|
(2,061
|
)
|
|
2,510
|
|
|
(1,458
|
)
|
||||
|
Balance at end of period
|
|
$
|
20,989
|
|
|
$
|
25,350
|
|
|
$
|
20,989
|
|
|
$
|
25,350
|
|
|
5.
|
Allowance for Loan and Lease Losses and Allowance for Unfunded Commitments and Letters of Credit
|
|
|
|
Beginning
Balance |
|
Charge-offs
|
|
Recoveries
|
|
Provision (Recapture)
|
|
Ending
Balance |
|
Specific
Reserve |
|
General
Allocation |
||||||||||||||
|
Three Months Ended June 30, 2019
|
|
(in thousands)
|
||||||||||||||||||||||||||
|
Commercial business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Secured
|
|
$
|
43,617
|
|
|
$
|
(4,103
|
)
|
|
$
|
515
|
|
|
$
|
(2,167
|
)
|
|
$
|
37,862
|
|
|
$
|
740
|
|
|
$
|
37,122
|
|
|
Unsecured
|
|
2,495
|
|
|
(15
|
)
|
|
32
|
|
|
498
|
|
|
3,010
|
|
|
—
|
|
|
3,010
|
|
|||||||
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
One-to-four family residential
|
|
616
|
|
|
—
|
|
|
20
|
|
|
9
|
|
|
645
|
|
|
6
|
|
|
639
|
|
|||||||
|
Commercial & multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Commercial land
|
|
4,588
|
|
|
—
|
|
|
7
|
|
|
814
|
|
|
5,409
|
|
|
666
|
|
|
4,743
|
|
|||||||
|
Income property
|
|
5,018
|
|
|
—
|
|
|
25
|
|
|
282
|
|
|
5,325
|
|
|
—
|
|
|
5,325
|
|
|||||||
|
Owner occupied
|
|
4,966
|
|
|
—
|
|
|
1
|
|
|
263
|
|
|
5,230
|
|
|
43
|
|
|
5,187
|
|
|||||||
|
Real estate construction:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
One-to-four family residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Land and acquisition
|
|
407
|
|
|
—
|
|
|
72
|
|
|
(326
|
)
|
|
153
|
|
|
—
|
|
|
153
|
|
|||||||
|
Residential construction
|
|
5,466
|
|
|
—
|
|
|
589
|
|
|
48
|
|
|
6,103
|
|
|
—
|
|
|
6,103
|
|
|||||||
|
Commercial & multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Income property
|
|
4,517
|
|
|
—
|
|
|
1
|
|
|
(320
|
)
|
|
4,198
|
|
|
—
|
|
|
4,198
|
|
|||||||
|
Owner occupied
|
|
2,220
|
|
|
—
|
|
|
—
|
|
|
192
|
|
|
2,412
|
|
|
—
|
|
|
2,412
|
|
|||||||
|
Consumer
|
|
5,545
|
|
|
(354
|
)
|
|
178
|
|
|
(175
|
)
|
|
5,194
|
|
|
20
|
|
|
5,174
|
|
|||||||
|
PCI
|
|
3,245
|
|
|
(815
|
)
|
|
872
|
|
|
(33
|
)
|
|
3,269
|
|
|
—
|
|
|
3,269
|
|
|||||||
|
Unallocated
|
|
574
|
|
|
—
|
|
|
—
|
|
|
1,133
|
|
|
1,707
|
|
|
—
|
|
|
1,707
|
|
|||||||
|
Total
|
|
$
|
83,274
|
|
|
$
|
(5,287
|
)
|
|
$
|
2,312
|
|
|
$
|
218
|
|
|
$
|
80,517
|
|
|
$
|
1,475
|
|
|
$
|
79,042
|
|
|
|
|
Beginning
Balance |
|
Charge-offs
|
|
Recoveries
|
|
Provision (Recapture)
|
|
Ending
Balance |
|
Specific
Reserve |
|
General
Allocation |
||||||||||||||
|
Six Months Ended June 30, 2019
|
|
(in thousands)
|
||||||||||||||||||||||||||
|
Commercial business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Secured
|
|
$
|
43,188
|
|
|
$
|
(5,352
|
)
|
|
$
|
838
|
|
|
$
|
(812
|
)
|
|
$
|
37,862
|
|
|
$
|
740
|
|
|
$
|
37,122
|
|
|
Unsecured
|
|
2,626
|
|
|
(15
|
)
|
|
189
|
|
|
210
|
|
|
3,010
|
|
|
—
|
|
|
3,010
|
|
|||||||
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
One-to-four family residential
|
|
593
|
|
|
(2
|
)
|
|
37
|
|
|
17
|
|
|
645
|
|
|
6
|
|
|
639
|
|
|||||||
|
Commercial & multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Commercial land
|
|
3,947
|
|
|
—
|
|
|
14
|
|
|
1,448
|
|
|
5,409
|
|
|
666
|
|
|
4,743
|
|
|||||||
|
Income property
|
|
4,044
|
|
|
—
|
|
|
48
|
|
|
1,233
|
|
|
5,325
|
|
|
—
|
|
|
5,325
|
|
|||||||
|
Owner occupied
|
|
4,533
|
|
|
—
|
|
|
2
|
|
|
695
|
|
|
5,230
|
|
|
43
|
|
|
5,187
|
|
|||||||
|
Real estate construction:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
One-to-four family residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Land and acquisition
|
|
549
|
|
|
—
|
|
|
131
|
|
|
(527
|
)
|
|
153
|
|
|
—
|
|
|
153
|
|
|||||||
|
Residential construction
|
|
5,536
|
|
|
(170
|
)
|
|
590
|
|
|
147
|
|
|
6,103
|
|
|
—
|
|
|
6,103
|
|
|||||||
|
Commercial & multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Income property
|
|
5,784
|
|
|
—
|
|
|
1
|
|
|
(1,587
|
)
|
|
4,198
|
|
|
—
|
|
|
4,198
|
|
|||||||
|
Owner occupied
|
|
2,604
|
|
|
—
|
|
|
—
|
|
|
(192
|
)
|
|
2,412
|
|
|
—
|
|
|
2,412
|
|
|||||||
|
Consumer
|
|
5,301
|
|
|
(832
|
)
|
|
416
|
|
|
309
|
|
|
5,194
|
|
|
20
|
|
|
5,174
|
|
|||||||
|
PCI
|
|
3,611
|
|
|
(1,904
|
)
|
|
1,577
|
|
|
(15
|
)
|
|
3,269
|
|
|
—
|
|
|
3,269
|
|
|||||||
|
Unallocated
|
|
1,053
|
|
|
—
|
|
|
—
|
|
|
654
|
|
|
1,707
|
|
|
—
|
|
|
1,707
|
|
|||||||
|
Total
|
|
$
|
83,369
|
|
|
$
|
(8,275
|
)
|
|
$
|
3,843
|
|
|
$
|
1,580
|
|
|
$
|
80,517
|
|
|
$
|
1,475
|
|
|
$
|
79,042
|
|
|
|
|
Beginning
Balance |
|
Charge-offs
|
|
Recoveries
|
|
Provision (Recapture)
|
|
Ending
Balance |
|
Specific
Reserve |
|
General
Allocation |
||||||||||||||
|
Three Months Ended June 30, 2018
|
|
(in thousands)
|
||||||||||||||||||||||||||
|
Commercial business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Secured
|
|
$
|
37,331
|
|
|
$
|
(5,751
|
)
|
|
$
|
1,487
|
|
|
$
|
7,283
|
|
|
$
|
40,350
|
|
|
$
|
67
|
|
|
$
|
40,283
|
|
|
Unsecured
|
|
2,595
|
|
|
(24
|
)
|
|
56
|
|
|
(184
|
)
|
|
2,443
|
|
|
—
|
|
|
2,443
|
|
|||||||
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
One-to-four family residential
|
|
558
|
|
|
—
|
|
|
196
|
|
|
(293
|
)
|
|
461
|
|
|
8
|
|
|
453
|
|
|||||||
|
Commercial & multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Commercial land
|
|
3,745
|
|
|
—
|
|
|
78
|
|
|
(545
|
)
|
|
3,278
|
|
|
—
|
|
|
3,278
|
|
|||||||
|
Income property
|
|
4,702
|
|
|
—
|
|
|
558
|
|
|
(1,158
|
)
|
|
4,102
|
|
|
—
|
|
|
4,102
|
|
|||||||
|
Owner occupied
|
|
4,749
|
|
|
—
|
|
|
4
|
|
|
(397
|
)
|
|
4,356
|
|
|
86
|
|
|
4,270
|
|
|||||||
|
Real estate construction:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
One-to-four family residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Land and acquisition
|
|
912
|
|
|
—
|
|
|
12
|
|
|
(76
|
)
|
|
848
|
|
|
—
|
|
|
848
|
|
|||||||
|
Residential construction
|
|
4,636
|
|
|
—
|
|
|
2
|
|
|
(66
|
)
|
|
4,572
|
|
|
—
|
|
|
4,572
|
|
|||||||
|
Commercial & multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Income property
|
|
7,474
|
|
|
—
|
|
|
—
|
|
|
(107
|
)
|
|
7,367
|
|
|
—
|
|
|
7,367
|
|
|||||||
|
Owner occupied
|
|
1,923
|
|
|
—
|
|
|
—
|
|
|
376
|
|
|
2,299
|
|
|
—
|
|
|
2,299
|
|
|||||||
|
Consumer
|
|
5,216
|
|
|
(232
|
)
|
|
270
|
|
|
38
|
|
|
5,292
|
|
|
95
|
|
|
5,197
|
|
|||||||
|
PCI
|
|
5,665
|
|
|
(1,235
|
)
|
|
927
|
|
|
(575
|
)
|
|
4,782
|
|
|
—
|
|
|
4,782
|
|
|||||||
|
Unallocated
|
|
321
|
|
|
—
|
|
|
—
|
|
|
(321
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Total
|
|
$
|
79,827
|
|
|
$
|
(7,242
|
)
|
|
$
|
3,590
|
|
|
$
|
3,975
|
|
|
$
|
80,150
|
|
|
$
|
256
|
|
|
$
|
79,894
|
|
|
|
|
Beginning
Balance |
|
Charge-offs
|
|
Recoveries
|
|
Provision (Recapture)
|
|
Ending
Balance |
|
Specific
Reserve |
|
General
Allocation |
||||||||||||||
|
Six Months Ended June 30, 2018
|
|
(in thousands)
|
||||||||||||||||||||||||||
|
Commercial business:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Secured
|
|
$
|
29,341
|
|
|
$
|
(8,165
|
)
|
|
$
|
2,040
|
|
|
$
|
17,134
|
|
|
$
|
40,350
|
|
|
$
|
67
|
|
|
$
|
40,283
|
|
|
Unsecured
|
|
2,000
|
|
|
(87
|
)
|
|
305
|
|
|
225
|
|
|
2,443
|
|
|
—
|
|
|
2,443
|
|
|||||||
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
One-to-four family residential
|
|
701
|
|
|
—
|
|
|
368
|
|
|
(608
|
)
|
|
461
|
|
|
8
|
|
|
453
|
|
|||||||
|
Commercial & multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Commercial land
|
|
4,265
|
|
|
—
|
|
|
84
|
|
|
(1,071
|
)
|
|
3,278
|
|
|
—
|
|
|
3,278
|
|
|||||||
|
Income property
|
|
5,672
|
|
|
(223
|
)
|
|
699
|
|
|
(2,046
|
)
|
|
4,102
|
|
|
—
|
|
|
4,102
|
|
|||||||
|
Owner occupied
|
|
5,459
|
|
|
—
|
|
|
16
|
|
|
(1,119
|
)
|
|
4,356
|
|
|
86
|
|
|
4,270
|
|
|||||||
|
Real estate construction:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
One-to-four family residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Land and acquisition
|
|
963
|
|
|
—
|
|
|
28
|
|
|
(143
|
)
|
|
848
|
|
|
—
|
|
|
848
|
|
|||||||
|
Residential construction
|
|
3,709
|
|
|
—
|
|
|
5
|
|
|
858
|
|
|
4,572
|
|
|
—
|
|
|
4,572
|
|
|||||||
|
Commercial & multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Income property
|
|
7,053
|
|
|
—
|
|
|
—
|
|
|
314
|
|
|
7,367
|
|
|
—
|
|
|
7,367
|
|
|||||||
|
Owner occupied
|
|
4,413
|
|
|
—
|
|
|
—
|
|
|
(2,114
|
)
|
|
2,299
|
|
|
—
|
|
|
2,299
|
|
|||||||
|
Consumer
|
|
5,163
|
|
|
(496
|
)
|
|
530
|
|
|
95
|
|
|
5,292
|
|
|
95
|
|
|
5,197
|
|
|||||||
|
PCI
|
|
6,907
|
|
|
(2,578
|
)
|
|
2,151
|
|
|
(1,698
|
)
|
|
4,782
|
|
|
—
|
|
|
4,782
|
|
|||||||
|
Unallocated
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
Total
|
|
$
|
75,646
|
|
|
$
|
(11,549
|
)
|
|
$
|
6,226
|
|
|
$
|
9,827
|
|
|
$
|
80,150
|
|
|
$
|
256
|
|
|
$
|
79,894
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
(in thousands)
|
||||||||||||||
|
Balance at beginning of period
|
|
$
|
3,780
|
|
|
$
|
4,330
|
|
|
$
|
4,330
|
|
|
$
|
3,130
|
|
|
Net changes in the allowance for unfunded commitments and letters of credit
|
|
200
|
|
|
(650
|
)
|
|
(350
|
)
|
|
550
|
|
||||
|
Balance at end of period
|
|
$
|
3,980
|
|
|
$
|
3,680
|
|
|
$
|
3,980
|
|
|
$
|
3,680
|
|
|
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total
|
||||||||||||
|
June 30, 2019
|
|
(in thousands)
|
||||||||||||||||||||||
|
Loans, excluding PCI loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Commercial business:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Secured
|
|
$
|
3,371,298
|
|
|
$
|
35,506
|
|
|
$
|
95,591
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,502,395
|
|
|
Unsecured
|
|
129,098
|
|
|
—
|
|
|
220
|
|
|
—
|
|
|
—
|
|
|
129,318
|
|
||||||
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
One-to-four family residential
|
|
277,407
|
|
|
—
|
|
|
1,311
|
|
|
—
|
|
|
—
|
|
|
278,718
|
|
||||||
|
Commercial and multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Commercial land
|
|
277,564
|
|
|
2,426
|
|
|
12,149
|
|
|
—
|
|
|
—
|
|
|
292,139
|
|
||||||
|
Income property
|
|
1,904,020
|
|
|
547
|
|
|
44,698
|
|
|
—
|
|
|
—
|
|
|
1,949,265
|
|
||||||
|
Owner occupied
|
|
1,590,785
|
|
|
10,100
|
|
|
50,429
|
|
|
—
|
|
|
—
|
|
|
1,651,314
|
|
||||||
|
Real estate construction:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
One-to-four family residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Land and acquisition
|
|
1,683
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,683
|
|
||||||
|
Residential construction
|
|
199,154
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
199,154
|
|
||||||
|
Commercial and multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Income property
|
|
163,074
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
163,074
|
|
||||||
|
Owner occupied
|
|
88,917
|
|
|
—
|
|
|
848
|
|
|
—
|
|
|
—
|
|
|
89,765
|
|
||||||
|
Consumer
|
|
301,826
|
|
|
—
|
|
|
3,609
|
|
|
—
|
|
|
—
|
|
|
305,435
|
|
||||||
|
Total
|
|
$
|
8,304,826
|
|
|
$
|
48,579
|
|
|
$
|
208,855
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
8,562,260
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
ALLL
|
|
77,248
|
|
|||||||||||||||||||||
|
Loans, excluding PCI loans, net
|
|
$
|
8,485,012
|
|
||||||||||||||||||||
|
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total
|
||||||||||||
|
December 31, 2018
|
|
(in thousands)
|
||||||||||||||||||||||
|
Loans, excluding PCI loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Commercial business:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Secured
|
|
$
|
3,160,910
|
|
|
$
|
48,779
|
|
|
$
|
103,007
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
3,312,701
|
|
|
Unsecured
|
|
112,091
|
|
|
21
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
112,117
|
|
||||||
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
One-to-four family residential
|
|
234,416
|
|
|
—
|
|
|
1,610
|
|
|
—
|
|
|
—
|
|
|
236,026
|
|
||||||
|
Commercial and multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Commercial land
|
|
276,348
|
|
|
5,082
|
|
|
4,247
|
|
|
—
|
|
|
—
|
|
|
285,677
|
|
||||||
|
Income property
|
|
1,876,925
|
|
|
36,998
|
|
|
6,553
|
|
|
—
|
|
|
—
|
|
|
1,920,476
|
|
||||||
|
Owner occupied
|
|
1,556,852
|
|
|
14,964
|
|
|
45,935
|
|
|
—
|
|
|
—
|
|
|
1,617,751
|
|
||||||
|
Real estate construction:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
One-to-four family residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Land and acquisition
|
|
4,099
|
|
|
—
|
|
|
318
|
|
|
—
|
|
|
—
|
|
|
4,417
|
|
||||||
|
Residential construction
|
|
212,225
|
|
|
—
|
|
|
171
|
|
|
—
|
|
|
—
|
|
|
212,396
|
|
||||||
|
Commercial and multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Income property
|
|
194,912
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
194,912
|
|
||||||
|
Owner occupied
|
|
87,063
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
87,063
|
|
||||||
|
Consumer
|
|
313,817
|
|
|
—
|
|
|
4,398
|
|
|
—
|
|
|
—
|
|
|
318,215
|
|
||||||
|
Total
|
|
$
|
8,029,658
|
|
|
$
|
105,844
|
|
|
$
|
166,239
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
8,301,751
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
ALLL
|
|
79,758
|
|
|||||||||||||||||||||
|
Loans, excluding PCI loans, net
|
|
$
|
8,221,993
|
|
||||||||||||||||||||
|
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total
|
||||||||||||
|
June 30, 2019
|
|
(in thousands)
|
||||||||||||||||||||||
|
PCI loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Commercial business:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Secured
|
|
$
|
6,910
|
|
|
$
|
964
|
|
|
$
|
767
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,641
|
|
|
Unsecured
|
|
937
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
937
|
|
||||||
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
One-to-four family residential
|
|
8,340
|
|
|
—
|
|
|
679
|
|
|
—
|
|
|
—
|
|
|
9,019
|
|
||||||
|
Commercial and multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Commercial land
|
|
9,012
|
|
|
646
|
|
|
72
|
|
|
—
|
|
|
—
|
|
|
9,730
|
|
||||||
|
Income property
|
|
18,294
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,294
|
|
||||||
|
Owner occupied
|
|
26,985
|
|
|
—
|
|
|
6,363
|
|
|
—
|
|
|
—
|
|
|
33,348
|
|
||||||
|
Real estate construction:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
One-to-four family residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Land and acquisition
|
|
143
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
143
|
|
||||||
|
Residential construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Commercial and multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Income property
|
|
474
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
474
|
|
||||||
|
Owner occupied
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
Consumer
|
|
9,024
|
|
|
—
|
|
|
378
|
|
|
—
|
|
|
—
|
|
|
9,402
|
|
||||||
|
Total
|
|
$
|
80,119
|
|
|
$
|
1,610
|
|
|
$
|
8,259
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
89,988
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Valuation discount resulting from acquisition accounting
|
|
5,258
|
|
|||||||||||||||||||||
|
ALLL
|
|
3,269
|
|
|||||||||||||||||||||
|
PCI loans, net
|
|
$
|
81,461
|
|
||||||||||||||||||||
|
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Total
|
||||||||||||
|
December 31, 2018
|
|
(in thousands)
|
||||||||||||||||||||||
|
PCI loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Commercial business:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Secured
|
|
$
|
8,041
|
|
|
$
|
—
|
|
|
$
|
840
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,881
|
|
|
Unsecured
|
|
692
|
|
|
—
|
|
|
99
|
|
|
—
|
|
|
—
|
|
|
791
|
|
||||||
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
One-to-four family residential
|
|
9,633
|
|
|
—
|
|
|
215
|
|
|
—
|
|
|
—
|
|
|
9,848
|
|
||||||
|
Commercial and multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Commercial land
|
|
10,363
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,363
|
|
||||||
|
Income property
|
|
19,680
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,680
|
|
||||||
|
Owner occupied
|
|
35,944
|
|
|
—
|
|
|
353
|
|
|
—
|
|
|
—
|
|
|
36,297
|
|
||||||
|
Real estate construction:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
One-to-four family residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Land and acquisition
|
|
151
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
153
|
|
||||||
|
Commercial and multifamily residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Income property
|
|
507
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
507
|
|
||||||
|
Consumer
|
|
9,326
|
|
|
—
|
|
|
439
|
|
|
—
|
|
|
—
|
|
|
9,765
|
|
||||||
|
Total
|
|
$
|
94,337
|
|
|
$
|
—
|
|
|
$
|
1,948
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
96,285
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Valuation discount resulting from acquisition accounting
|
|
6,525
|
|
|||||||||||||||||||||
|
ALLL
|
|
3,611
|
|
|||||||||||||||||||||
|
PCI loans, net
|
|
$
|
86,149
|
|
||||||||||||||||||||
|
6.
|
Other Real Estate Owned
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
(in thousands)
|
||||||||||||||
|
Balance, beginning of period
|
|
$
|
6,075
|
|
|
$
|
11,507
|
|
|
$
|
6,019
|
|
|
$
|
13,298
|
|
|
Transfers in
|
|
—
|
|
|
—
|
|
|
386
|
|
|
406
|
|
||||
|
Valuation adjustments
|
|
—
|
|
|
(110
|
)
|
|
(195
|
)
|
|
(202
|
)
|
||||
|
Proceeds from sale of OREO property
|
|
(5,673
|
)
|
|
(3,759
|
)
|
|
(5,794
|
)
|
|
(5,821
|
)
|
||||
|
Gain (loss) on sale of OREO, net
|
|
716
|
|
|
(558
|
)
|
|
702
|
|
|
(601
|
)
|
||||
|
Balance, end of period
|
|
$
|
1,118
|
|
|
$
|
7,080
|
|
|
$
|
1,118
|
|
|
$
|
7,080
|
|
|
7.
|
Goodwill and Other Intangible Assets
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
(in thousands)
|
||||||||||||||
|
Goodwill
|
|
|
|
|
|
|
|
|
||||||||
|
Total goodwill
|
|
$
|
765,842
|
|
|
$
|
765,842
|
|
|
$
|
765,842
|
|
|
$
|
765,842
|
|
|
Other intangible assets, net
|
|
|
|
|
|
|
|
|
||||||||
|
CDI:
|
|
|
|
|
|
|
|
|
||||||||
|
Gross CDI balance at beginning of period
|
|
105,473
|
|
|
105,473
|
|
|
105,473
|
|
|
105,473
|
|
||||
|
Accumulated amortization at beginning of period
|
|
(63,203
|
)
|
|
(51,407
|
)
|
|
(60,455
|
)
|
|
(48,219
|
)
|
||||
|
CDI, net at beginning of period
|
|
42,270
|
|
|
54,066
|
|
|
45,018
|
|
|
57,254
|
|
||||
|
CDI current period amortization
|
|
(2,649
|
)
|
|
(3,088
|
)
|
|
(5,397
|
)
|
|
(6,276
|
)
|
||||
|
Total CDI, net at end of period
|
|
39,621
|
|
|
50,978
|
|
|
39,621
|
|
|
50,978
|
|
||||
|
Intangible assets not subject to amortization
|
|
919
|
|
|
919
|
|
|
919
|
|
|
919
|
|
||||
|
Other intangible assets, net at end of period
|
|
40,540
|
|
|
51,897
|
|
|
40,540
|
|
|
51,897
|
|
||||
|
Total goodwill and other intangible assets at end of period
|
|
$
|
806,382
|
|
|
$
|
817,739
|
|
|
$
|
806,382
|
|
|
$
|
817,739
|
|
|
|
|
Year ending December 31,
|
||
|
|
|
(in thousands)
|
||
|
2019
|
|
$
|
5,082
|
|
|
2020
|
|
8,724
|
|
|
|
2021
|
|
7,264
|
|
|
|
2022
|
|
5,880
|
|
|
|
2023
|
|
4,552
|
|
|
|
8.
|
Leases
|
|
Item
|
|
Balance Sheet Location
|
|
June 30, 2019
|
||
|
|
|
|
|
(in thousands)
|
||
|
Operating lease asset
|
|
Other assets
|
|
$
|
47,875
|
|
|
Operating lease liability
|
|
Other liabilities
|
|
$
|
53,875
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||
|
Item
|
|
Statement of Income Location
|
|
2019
|
|
2019
|
||||
|
|
|
|
|
(in thousands)
|
||||||
|
Operating lease cost (1)
|
|
Occupancy
|
|
$
|
2,765
|
|
|
$
|
5,585
|
|
|
Variable lease cost
|
|
Occupancy
|
|
517
|
|
|
1,023
|
|
||
|
Sublease income
|
|
Occupancy
|
|
(306
|
)
|
|
(621
|
)
|
||
|
Net lease cost
|
|
|
|
$
|
2,976
|
|
|
$
|
5,987
|
|
|
|
|
Year ending December 31,
|
||
|
|
|
(in thousands)
|
||
|
2019
|
|
$
|
5,494
|
|
|
2020
|
|
10,244
|
|
|
|
2021
|
|
9,223
|
|
|
|
2022
|
|
8,611
|
|
|
|
2023
|
|
7,332
|
|
|
|
Thereafter
|
|
20,448
|
|
|
|
Total future minimum lease payments
|
|
61,352
|
|
|
|
Amounts representing interest
|
|
(7,477
|
)
|
|
|
Present value of minimum lease payments
|
|
$
|
53,875
|
|
|
|
|
Year Ending December 31,
|
||
|
|
|
(in thousands)
|
||
|
2019
|
|
$
|
10,947
|
|
|
2020
|
|
9,766
|
|
|
|
2021
|
|
8,729
|
|
|
|
2022
|
|
8,102
|
|
|
|
2023
|
|
6,796
|
|
|
|
Thereafter
|
|
18,703
|
|
|
|
Total minimum payments
|
|
$
|
63,043
|
|
|
9.
|
Revolving Line of Credit
|
|
10.
|
Derivatives, Hedging Activities and Balance Sheet Offsetting
|
|
|
Amount of Gain or (Loss) Recognized in Accumulated Other Comprehensive Income on Derivative
|
|
Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
|
|
Amount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
|
||||||||||||
|
|
Three Months Ended June 30,
|
|
|
|
Three Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
|
|
2019
|
|
2018
|
||||||||
|
|
(in thousands)
|
||||||||||||||||
|
Interest rate collar
|
$
|
9,423
|
|
|
$
|
—
|
|
|
Interest income
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Six Months Ended June 30,
|
|
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Interest rate collar
|
$
|
15,691
|
|
|
$
|
—
|
|
|
Interest income
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
Gross Amounts of Recognized Assets/Liabilities
|
|
Gross Amounts Offset in the Consolidated Balance Sheets
|
|
Net Amounts of Assets/Liabilities Presented in the Consolidated Balance Sheets
|
|
Gross Amounts Not Offset in the Consolidated Balance Sheets
|
||||||||||||
|
|
|
|
|
Collateral Pledged/Received
|
|
Net Amount
|
|||||||||||||
|
June 30, 2019
|
(in thousands)
|
||||||||||||||||||
|
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest rate swap contracts
|
$
|
17,857
|
|
|
$
|
—
|
|
|
$
|
17,857
|
|
|
$
|
—
|
|
|
$
|
17,857
|
|
|
Interest rate collar
|
$
|
15,691
|
|
|
$
|
—
|
|
|
$
|
15,691
|
|
|
$
|
(15,691
|
)
|
|
—
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest rate swap contracts
|
$
|
17,858
|
|
|
$
|
—
|
|
|
$
|
17,858
|
|
|
$
|
(17,858
|
)
|
|
$
|
—
|
|
|
Repurchase agreements
|
$
|
50,226
|
|
|
$
|
—
|
|
|
$
|
50,226
|
|
|
$
|
(50,226
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest rate swap contracts
|
$
|
7,033
|
|
|
$
|
—
|
|
|
$
|
7,033
|
|
|
$
|
—
|
|
|
$
|
7,033
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Interest rate swap contracts
|
$
|
7,033
|
|
|
$
|
—
|
|
|
$
|
7,033
|
|
|
$
|
(3,235
|
)
|
|
$
|
3,798
|
|
|
Repurchase agreements
|
$
|
61,094
|
|
|
$
|
—
|
|
|
$
|
61,094
|
|
|
$
|
(61,094
|
)
|
|
$
|
—
|
|
|
|
|
Remaining contractual maturity of the agreements
|
||||||||||||||||||
|
|
|
Overnight and continuous
|
|
Up to 30 days
|
|
30 - 90 days
|
|
Greater than 90 days
|
|
Total
|
||||||||||
|
June 30, 2019
|
|
(in thousands)
|
||||||||||||||||||
|
Class of collateral pledged for repurchase agreements
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations
|
|
$
|
50,226
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
50,226
|
|
|
Gross amount of recognized liabilities for repurchase agreements
|
|
|
|
|
|
|
|
|
|
50,226
|
|
|||||||||
|
Amounts related to agreements not included in offsetting disclosure
|
|
|
|
|
|
|
|
|
|
$
|
—
|
|
||||||||
|
11.
|
Commitments and Contingent Liabilities
|
|
12.
|
Shareholders’ Equity
|
|
Declared
|
|
Regular Cash Dividends Per Common Share
|
|
Special Cash Dividends Per Common Share
|
|
Record Date
|
|
Paid Date
|
||||
|
January 24, 2019
|
|
$
|
0.28
|
|
|
$
|
0.14
|
|
|
February 6, 2019
|
|
February 20, 2019
|
|
April 25, 2019
|
|
$
|
0.28
|
|
|
$
|
0.14
|
|
|
May 8, 2019
|
|
May 22, 2019
|
|
13.
|
Accumulated Other Comprehensive Income
|
|
|
|
Unrealized Gains and Losses on Available-for-Sale Securities (1)
|
|
Unrealized Gains and Losses on Pension Plan Liability (1)
|
|
Unrealized Gains and Losses on Hedging Instruments (1)
|
|
Total (1)
|
||||||||
|
Three Months Ended June 30, 2019
|
|
(in thousands)
|
||||||||||||||
|
Beginning balance
|
|
$
|
352
|
|
|
$
|
(2,116
|
)
|
|
$
|
4,810
|
|
|
$
|
3,046
|
|
|
Other comprehensive income before reclassifications
|
|
37,029
|
|
|
—
|
|
|
7,233
|
|
|
44,262
|
|
||||
|
Amounts reclassified from accumulated other comprehensive income (2)
|
|
(219
|
)
|
|
61
|
|
|
—
|
|
|
(158
|
)
|
||||
|
Net current-period other comprehensive income
|
|
36,810
|
|
|
61
|
|
|
7,233
|
|
|
44,104
|
|
||||
|
Ending balance
|
|
$
|
37,162
|
|
|
$
|
(2,055
|
)
|
|
$
|
12,043
|
|
|
$
|
47,150
|
|
|
Three Months Ended June 30, 2018
|
|
|
|
|
|
|
|
|
||||||||
|
Beginning balance
|
|
$
|
(45,748
|
)
|
|
$
|
(2,385
|
)
|
|
$
|
—
|
|
|
$
|
(48,133
|
)
|
|
Other comprehensive loss before reclassifications
|
|
(7,845
|
)
|
|
—
|
|
|
—
|
|
|
(7,845
|
)
|
||||
|
Amounts reclassified from accumulated other comprehensive loss (2)
|
|
(4
|
)
|
|
61
|
|
|
—
|
|
|
57
|
|
||||
|
Net current-period other comprehensive income (loss)
|
|
(7,849
|
)
|
|
61
|
|
|
—
|
|
|
(7,788
|
)
|
||||
|
Ending balance
|
|
$
|
(53,597
|
)
|
|
$
|
(2,324
|
)
|
|
$
|
—
|
|
|
$
|
(55,921
|
)
|
|
Six Months Ended June 30, 2019
|
|
|
|
|
|
|
|
|
||||||||
|
Beginning balance
|
|
$
|
(33,128
|
)
|
|
$
|
(2,177
|
)
|
|
$
|
—
|
|
|
$
|
(35,305
|
)
|
|
Other comprehensive income before reclassifications
|
|
71,926
|
|
|
—
|
|
|
12,043
|
|
|
83,969
|
|
||||
|
Amounts reclassified from accumulated other comprehensive loss (2)
|
|
(1,636
|
)
|
|
122
|
|
|
—
|
|
|
(1,514
|
)
|
||||
|
Net current-period other comprehensive income
|
|
70,290
|
|
|
122
|
|
|
12,043
|
|
|
82,455
|
|
||||
|
Ending balance
|
|
$
|
37,162
|
|
|
$
|
(2,055
|
)
|
|
$
|
12,043
|
|
|
$
|
47,150
|
|
|
Six Months Ended June 30, 2018
|
|
|
|
|
|
|
|
|
||||||||
|
Beginning balance
|
|
$
|
(19,779
|
)
|
|
$
|
(2,446
|
)
|
|
$
|
—
|
|
|
$
|
(22,225
|
)
|
|
Adjustment pursuant to adoption of ASU 2016-01
|
|
157
|
|
|
—
|
|
|
—
|
|
|
157
|
|
||||
|
Other comprehensive loss before reclassifications
|
|
(33,893
|
)
|
|
—
|
|
|
—
|
|
|
(33,893
|
)
|
||||
|
Amounts reclassified from accumulated other comprehensive loss (2)
|
|
(82
|
)
|
|
122
|
|
|
—
|
|
|
40
|
|
||||
|
Net current-period other comprehensive income (loss)
|
|
(33,975
|
)
|
|
122
|
|
|
—
|
|
|
(33,853
|
)
|
||||
|
Ending balance
|
|
$
|
(53,597
|
)
|
|
$
|
(2,324
|
)
|
|
$
|
—
|
|
|
$
|
(55,921
|
)
|
|
|
|
Amount Reclassified from Accumulated Other Comprehensive Income (Loss)
|
|
|
||||||||||||||
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
Affected line Item in the Consolidated
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Statement of Income
|
||||||||
|
|
|
(in thousands)
|
|
|
||||||||||||||
|
Unrealized gains and losses on available for sale debt securities
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Investment securities gains, net
|
|
$
|
285
|
|
|
$
|
5
|
|
|
$
|
2,132
|
|
|
$
|
107
|
|
|
Investment securities gains (losses), net
|
|
|
|
285
|
|
|
5
|
|
|
2,132
|
|
|
107
|
|
|
Total before tax
|
||||
|
|
|
(66
|
)
|
|
(1
|
)
|
|
(496
|
)
|
|
(25
|
)
|
|
Income tax provision
|
||||
|
|
|
$
|
219
|
|
|
$
|
4
|
|
|
$
|
1,636
|
|
|
$
|
82
|
|
|
Net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Amortization of pension plan liability
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Actuarial losses
|
|
$
|
(80
|
)
|
|
$
|
(80
|
)
|
|
$
|
(159
|
)
|
|
$
|
(160
|
)
|
|
Compensation and employee benefits
|
|
|
|
(80
|
)
|
|
(80
|
)
|
|
(159
|
)
|
|
(160
|
)
|
|
Total before tax
|
||||
|
|
|
19
|
|
|
19
|
|
|
37
|
|
|
38
|
|
|
Income tax provision
|
||||
|
|
|
$
|
(61
|
)
|
|
$
|
(61
|
)
|
|
$
|
(122
|
)
|
|
$
|
(122
|
)
|
|
Net of tax
|
|
14.
|
Fair Value Accounting and Measurement
|
|
|
|
Fair Value
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
June 30, 2019
|
|
(in thousands)
|
||||||||||||||
|
Assets
|
|
|
|
|
|
|
|
|
||||||||
|
Debt securities available for sale:
|
|
|
|
|
|
|
|
|
||||||||
|
U.S. government agency and government-sponsored enterprise mortgage-back securities and collateralized mortgage obligations
|
|
$
|
2,139,496
|
|
|
$
|
—
|
|
|
$
|
2,139,496
|
|
|
$
|
—
|
|
|
State and municipal debt securities
|
|
509,679
|
|
|
—
|
|
|
509,679
|
|
|
—
|
|
||||
|
U.S. government agency and government-sponsored enterprise securities
|
|
214,994
|
|
|
—
|
|
|
214,994
|
|
|
—
|
|
||||
|
U.S. government securities
|
|
249
|
|
|
249
|
|
|
—
|
|
|
—
|
|
||||
|
Total debt securities available for sale
|
|
$
|
2,864,418
|
|
|
$
|
249
|
|
|
$
|
2,864,169
|
|
|
$
|
—
|
|
|
Other assets:
|
|
|
|
|
|
|
|
|
||||||||
|
Interest rate contracts
|
|
$
|
17,857
|
|
|
$
|
—
|
|
|
$
|
17,857
|
|
|
$
|
—
|
|
|
Interest rate collar
|
|
$
|
15,691
|
|
|
$
|
—
|
|
|
$
|
15,691
|
|
|
$
|
—
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
|
Other liabilities:
|
|
|
|
|
|
|
|
|
||||||||
|
Interest rate contracts
|
|
$
|
17,858
|
|
|
$
|
—
|
|
|
$
|
17,858
|
|
|
$
|
—
|
|
|
|
|
Fair Value
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
December 31, 2018
|
|
(in thousands)
|
||||||||||||||
|
Assets
|
|
|
|
|
|
|
|
|
||||||||
|
Debt securities available for sale:
|
|
|
|
|
|
|
|
|
||||||||
|
U.S. government agency and government-sponsored enterprise mortgage-back securities and collateralized mortgage obligations
|
|
$
|
2,188,290
|
|
|
$
|
—
|
|
|
$
|
2,188,290
|
|
|
$
|
—
|
|
|
State and municipal debt securities
|
|
574,323
|
|
|
—
|
|
|
574,323
|
|
|
—
|
|
||||
|
U.S. government agency and government-sponsored enterprise securities
|
|
404,587
|
|
|
—
|
|
|
404,587
|
|
|
—
|
|
||||
|
U.S. government securities
|
|
248
|
|
|
248
|
|
|
—
|
|
|
—
|
|
||||
|
Total debt securities available for sale
|
|
$
|
3,167,448
|
|
|
$
|
248
|
|
|
$
|
3,167,200
|
|
|
$
|
—
|
|
|
Other assets:
|
|
|
|
|
|
|
|
|
||||||||
|
Interest rate contracts
|
|
$
|
7,033
|
|
|
$
|
—
|
|
|
$
|
7,033
|
|
|
$
|
—
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
|
Other liabilities:
|
|
|
|
|
|
|
|
|
||||||||
|
Interest rate contracts
|
|
$
|
7,033
|
|
|
$
|
—
|
|
|
$
|
7,033
|
|
|
$
|
—
|
|
|
|
|
Fair value at June 30, 2019
|
|
Fair Value Measurements at Reporting Date Using
|
|
Losses During the Three Months Ended June 30, 2019
|
|
Losses During the Six Months Ended June 30, 2019
|
||||||||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||||||||||
|
|
|
(in thousands)
|
||||||||||||||||||||||
|
Impaired loans
|
|
$
|
4,837
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,837
|
|
|
$
|
2,124
|
|
|
$
|
2,525
|
|
|
|
|
$
|
4,837
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,837
|
|
|
$
|
2,124
|
|
|
$
|
2,525
|
|
|
|
|
Fair value at June 30, 2018
|
|
Fair Value Measurements at Reporting Date Using
|
|
Gains During the Three Months Ended June 30, 2018
|
|
Losses During the Six Months Ended June 30, 2018
|
||||||||||||||||
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|||||||||||||||||
|
|
|
(in thousands)
|
||||||||||||||||||||||
|
Impaired loans
|
|
$
|
10,792
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,792
|
|
|
$
|
(1,032
|
)
|
|
$
|
3,398
|
|
|
|
|
$
|
10,792
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,792
|
|
|
$
|
(1,032
|
)
|
|
$
|
3,398
|
|
|
|
|
Fair value at June 30, 2019
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range (Weighted Average) (1)
|
||
|
|
|
(dollars in thousands)
|
||||||||
|
Impaired loans - collateral-dependent (2)
|
|
$
|
4,837
|
|
|
Fair Market Value of Collateral
|
|
Adjustment to Stated Value
|
|
0.00% - 100.00% (35.67%)
|
|
|
|
Fair value at June 30, 2018
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range (Weighted Average) (1)
|
||
|
|
|
(dollars in thousands)
|
||||||||
|
Impaired loans - collateral-dependent (2)
|
|
$
|
6,933
|
|
|
Fair Market Value of Collateral
|
|
Adjustment to Stated Value
|
|
0.00% - 62.81% (15.72%)
|
|
Impaired loans - other
|
|
$
|
3,859
|
|
|
Discounted Cash Flow
|
|
Discount Rate
|
|
4.25% - 6.50% (6.12%)
|
|
|
|
June 30, 2019
|
||||||||||||||||||
|
|
|
Carrying
Amount |
|
Fair
Value |
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
|
|
(in thousands)
|
||||||||||||||||||
|
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cash and due from banks
|
|
$
|
224,327
|
|
|
$
|
224,327
|
|
|
$
|
224,327
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Interest-earning deposits with banks
|
|
34,332
|
|
|
34,332
|
|
|
34,332
|
|
|
—
|
|
|
—
|
|
|||||
|
Debt securities available for sale
|
|
2,864,418
|
|
|
2,864,418
|
|
|
249
|
|
|
2,864,169
|
|
|
—
|
|
|||||
|
FHLB stock
|
|
29,800
|
|
|
29,800
|
|
|
—
|
|
|
29,800
|
|
|
—
|
|
|||||
|
Loans held for sale
|
|
12,189
|
|
|
12,189
|
|
|
—
|
|
|
12,189
|
|
|
—
|
|
|||||
|
Loans
|
|
8,566,473
|
|
|
8,745,513
|
|
|
—
|
|
|
—
|
|
|
8,745,513
|
|
|||||
|
Interest rate contracts
|
|
17,857
|
|
|
17,857
|
|
|
—
|
|
|
17,857
|
|
|
—
|
|
|||||
|
Interest rate collar
|
|
15,691
|
|
|
15,691
|
|
|
—
|
|
|
15,691
|
|
|
—
|
|
|||||
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Time deposits
|
|
$
|
391,496
|
|
|
$
|
388,103
|
|
|
$
|
—
|
|
|
$
|
388,103
|
|
|
$
|
—
|
|
|
FHLB advances
|
|
495,496
|
|
|
396,344
|
|
|
—
|
|
|
396,344
|
|
|
—
|
|
|||||
|
Repurchase agreements
|
|
50,226
|
|
|
50,226
|
|
|
—
|
|
|
50,226
|
|
|
—
|
|
|||||
|
Subordinated debentures
|
|
35,370
|
|
|
35,397
|
|
|
—
|
|
|
35,397
|
|
|
—
|
|
|||||
|
Interest rate contracts
|
|
17,858
|
|
|
17,858
|
|
|
—
|
|
|
17,858
|
|
|
—
|
|
|||||
|
|
|
December 31, 2018
|
||||||||||||||||||
|
|
|
Carrying
Amount |
|
Fair
Value |
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
|
|
(in thousands)
|
||||||||||||||||||
|
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cash and due from banks
|
|
$
|
260,180
|
|
|
$
|
260,180
|
|
|
$
|
260,180
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Interest-earning deposits with banks
|
|
17,407
|
|
|
17,407
|
|
|
17,407
|
|
|
—
|
|
|
—
|
|
|||||
|
Debt securities available for sale
|
|
3,167,448
|
|
|
3,167,448
|
|
|
248
|
|
|
3,167,200
|
|
|
—
|
|
|||||
|
FHLB stock
|
|
25,960
|
|
|
25,960
|
|
|
—
|
|
|
25,960
|
|
|
—
|
|
|||||
|
Loans held for sale
|
|
3,849
|
|
|
3,849
|
|
|
—
|
|
|
3,849
|
|
|
—
|
|
|||||
|
Loans
|
|
8,308,142
|
|
|
8,316,946
|
|
|
—
|
|
|
—
|
|
|
8,316,946
|
|
|||||
|
Interest rate contracts
|
|
7,033
|
|
|
7,033
|
|
|
—
|
|
|
7,033
|
|
|
—
|
|
|||||
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Time deposits
|
|
$
|
414,443
|
|
|
$
|
407,659
|
|
|
$
|
—
|
|
|
$
|
407,659
|
|
|
$
|
—
|
|
|
FHLB advances
|
|
399,523
|
|
|
400,085
|
|
|
—
|
|
|
400,085
|
|
|
—
|
|
|||||
|
Repurchase agreements
|
|
61,094
|
|
|
61,094
|
|
|
—
|
|
|
61,094
|
|
|
—
|
|
|||||
|
Subordinated debentures
|
|
35,462
|
|
|
34,897
|
|
|
—
|
|
|
34,897
|
|
|
—
|
|
|||||
|
Interest rate contracts
|
|
7,033
|
|
|
7,033
|
|
|
—
|
|
|
7,033
|
|
|
—
|
|
|||||
|
15.
|
Earnings Per Common Share
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
(in thousands except per share amounts)
|
||||||||||||||
|
Basic EPS:
|
|
|
|
|
|
|
|
|
||||||||
|
Net income
|
|
$
|
51,724
|
|
|
$
|
41,749
|
|
|
$
|
97,595
|
|
|
$
|
81,719
|
|
|
Less: Earnings allocated to participating securities:
|
|
|
|
|
|
|
|
|
||||||||
|
Nonvested restricted shares
|
|
378
|
|
|
473
|
|
|
838
|
|
|
909
|
|
||||
|
Earnings allocated to common shareholders
|
|
$
|
51,346
|
|
|
$
|
41,276
|
|
|
$
|
96,757
|
|
|
$
|
80,810
|
|
|
Weighted average common shares outstanding
|
|
72,451
|
|
|
72,385
|
|
|
72,486
|
|
|
72,343
|
|
||||
|
Basic earnings per common share
|
|
$
|
0.71
|
|
|
$
|
0.57
|
|
|
$
|
1.33
|
|
|
$
|
1.12
|
|
|
Diluted EPS:
|
|
|
|
|
|
|
|
|
||||||||
|
Earnings allocated to common shareholders
|
|
$
|
51,346
|
|
|
$
|
41,276
|
|
|
$
|
96,757
|
|
|
$
|
80,810
|
|
|
Weighted average common shares outstanding
|
|
72,451
|
|
|
72,385
|
|
|
72,486
|
|
|
72,343
|
|
||||
|
Dilutive effect of equity awards
|
|
—
|
|
|
5
|
|
|
1
|
|
|
4
|
|
||||
|
Weighted average diluted common shares outstanding
|
|
72,451
|
|
|
72,390
|
|
|
72,487
|
|
|
72,347
|
|
||||
|
Diluted earnings per common share
|
|
$
|
0.71
|
|
|
$
|
0.57
|
|
|
$
|
1.33
|
|
|
$
|
1.12
|
|
|
Potentially dilutive share options that were not included in the computation of diluted EPS because to do so would be anti-dilutive
|
|
—
|
|
|
3
|
|
|
—
|
|
|
7
|
|
||||
|
16.
|
Revenue from Contracts with Customers
|
|
a.
|
Revenue earned at a point in time - Examples of revenue earned at a point in time are ATM transaction fees, wire transfer fees, overdraft fees, interchange fees and foreign exchange transaction fees. Revenue is primarily based on the number and type of transactions and is generally derived from transactional information accumulated by our systems and is recognized immediately as the transactions occur or upon providing the service to complete the customer’s transaction. The Company is the principal in each of these contracts, with the exception of interchange fees, in which case we are acting as the agent and record revenue net of expenses paid to the principal.
|
|
b.
|
Revenue earned over time - The Company earns revenue from contracts with customers in a variety of ways where the revenue is earned over a period of time - generally monthly. Examples of this type of revenue are deposit account maintenance fees, investment advisory fees, merchant revenue and safe deposit box fees. Revenue is generally derived from transactional information accumulated by our systems or those of third-parties and is recognized as the related transactions occur or services are rendered to the customer.
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
(in thousands)
|
||||||||||||||
|
Noninterest income:
|
|
|
|
|
|
|
|
|
||||||||
|
Revenue from contracts with customers:
|
|
|
|
|
|
|
|
|
||||||||
|
Deposit account and treasury management fees
|
|
$
|
9,035
|
|
|
$
|
8,683
|
|
|
$
|
18,015
|
|
|
$
|
17,423
|
|
|
Card revenue
|
|
3,763
|
|
|
6,616
|
|
|
7,425
|
|
|
12,429
|
|
||||
|
Financial services and trust revenue
|
|
3,425
|
|
|
3,219
|
|
|
6,382
|
|
|
5,949
|
|
||||
|
Total revenue from contracts with customers
|
|
16,223
|
|
|
18,518
|
|
|
31,822
|
|
|
35,801
|
|
||||
|
Other sources of noninterest income
|
|
9,425
|
|
|
5,174
|
|
|
15,522
|
|
|
11,034
|
|
||||
|
Total noninterest income
|
|
$
|
25,648
|
|
|
$
|
23,692
|
|
|
$
|
47,344
|
|
|
$
|
46,835
|
|
|
Item 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
•
|
national and global economic conditions could be less favorable than expected or could have a more direct and pronounced effect on us than expected and adversely affect our ability to continue internal growth and maintain the quality of our earning assets;
|
|
•
|
the markets where we operate and make loans could face challenges;
|
|
•
|
the risks presented by the economy, which could adversely affect credit quality, collateral values, including real estate collateral, investment values, liquidity and loan originations and loan portfolio delinquency rates;
|
|
•
|
the efficiencies and enhanced financial and operating performance we expect to realize from investments in personnel, acquisitions, and infrastructure may not be realized;
|
|
•
|
interest rate changes could significantly reduce net interest income and negatively affect funding sources;
|
|
•
|
possible cessation or market replacement of LIBOR and the related effect on our LIBOR-based financial products and contracts, including, but not limited to, hedging products, debt obligations, investments, and loans;
|
|
•
|
projected business increases following strategic expansion could be lower than expected;
|
|
•
|
changes in the scope and cost of FDIC insurance and other coverages;
|
|
•
|
the impact of acquired loans on our earnings;
|
|
•
|
changes in accounting principles, policies and guidelines applicable to bank holding companies and banking;
|
|
•
|
changes in laws and regulations affecting our businesses, including changes in the enforcement and interpretation of such laws and regulations by applicable governmental and regulatory agencies;
|
|
•
|
competition among financial institutions and nontraditional providers of financial services could increase significantly;
|
|
•
|
continued consolidation in the Northwest financial services industry resulting in the creation of larger financial institutions that may have greater resources could change the competitive landscape;
|
|
•
|
the goodwill we have recorded in connection with acquisitions could become impaired, which may have an adverse impact on our earnings and capital;
|
|
•
|
our ability to identify and address cyber-security risks, including security breaches, “denial of service attacks,” “hacking” and identity theft;
|
|
•
|
any material failure or interruption of our information and communications systems or inability to keep pace with technological changes;
|
|
•
|
our ability to effectively manage credit risk, interest rate risk, market risk, operational risk, legal risk, liquidity risk and regulatory and compliance risk;
|
|
•
|
failure to maintain effective internal controls over financial reporting or disclosure controls and procedures;
|
|
•
|
the effect of geopolitical instability, including wars, conflicts and terrorist attacks;
|
|
•
|
our profitability measures could be adversely affected if we are unable to effectively manage our capital;
|
|
•
|
natural disasters, including earthquakes, tsunamis, flooding, fires and other unexpected events; and
|
|
•
|
the effects of any damage to our reputation resulting from developments related to any of the items identified above.
|
|
|
|
Three Months Ended June 30,
|
|
Three Months Ended June 30,
|
||||||||||||||||||
|
|
|
2019
|
|
2018
|
||||||||||||||||||
|
|
|
Average
Balances |
|
Interest
Earned / Paid |
|
Average
Rate (3) |
|
Average
Balances |
|
Interest
Earned / Paid |
|
Average
Rate (3) |
||||||||||
|
|
|
(dollars in thousands)
|
||||||||||||||||||||
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Loans, net (1)(2)
|
|
$
|
8,601,819
|
|
|
$
|
117,984
|
|
|
5.50
|
%
|
|
$
|
8,389,230
|
|
|
$
|
106,526
|
|
|
5.09
|
%
|
|
Taxable securities
|
|
2,506,672
|
|
|
15,918
|
|
|
2.55
|
%
|
|
2,111,086
|
|
|
11,923
|
|
|
2.27
|
%
|
||||
|
Tax exempt securities (2)
|
|
463,077
|
|
|
3,433
|
|
|
2.97
|
%
|
|
517,206
|
|
|
3,877
|
|
|
3.01
|
%
|
||||
|
Interest-earning deposits with banks
|
|
35,159
|
|
|
207
|
|
|
2.36
|
%
|
|
35,285
|
|
|
151
|
|
|
1.72
|
%
|
||||
|
Total interest-earning assets
|
|
11,606,727
|
|
|
137,542
|
|
|
4.75
|
%
|
|
11,052,807
|
|
|
122,477
|
|
|
4.44
|
%
|
||||
|
Other earning assets
|
|
233,273
|
|
|
|
|
|
|
221,141
|
|
|
|
|
|
||||||||
|
Noninterest-earning assets
|
|
1,256,413
|
|
|
|
|
|
|
1,255,592
|
|
|
|
|
|
||||||||
|
Total assets
|
|
$
|
13,096,413
|
|
|
|
|
|
|
$
|
12,529,540
|
|
|
|
|
|
||||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||||||||||||||||
|
Certificates of deposit
|
|
$
|
403,514
|
|
|
$
|
586
|
|
|
0.58
|
%
|
|
$
|
464,217
|
|
|
$
|
549
|
|
|
0.47
|
%
|
|
Savings accounts
|
|
892,246
|
|
|
43
|
|
|
0.02
|
%
|
|
875,529
|
|
|
30
|
|
|
0.01
|
%
|
||||
|
Interest-bearing demand
|
|
1,261,833
|
|
|
1,098
|
|
|
0.35
|
%
|
|
1,295,409
|
|
|
608
|
|
|
0.19
|
%
|
||||
|
Money market accounts
|
|
2,617,282
|
|
|
3,249
|
|
|
0.50
|
%
|
|
2,755,714
|
|
|
1,385
|
|
|
0.20
|
%
|
||||
|
Total interest-bearing deposits
|
|
5,174,875
|
|
|
4,976
|
|
|
0.39
|
%
|
|
5,390,869
|
|
|
2,572
|
|
|
0.19
|
%
|
||||
|
FHLB advances
|
|
602,041
|
|
|
4,708
|
|
|
3.14
|
%
|
|
156,512
|
|
|
815
|
|
|
2.09
|
%
|
||||
|
Subordinated debentures
|
|
35,392
|
|
|
468
|
|
|
5.30
|
%
|
|
35,577
|
|
|
468
|
|
|
5.28
|
%
|
||||
|
Other borrowings and interest-bearing liabilities
|
|
29,117
|
|
|
154
|
|
|
2.12
|
%
|
|
28,097
|
|
|
20
|
|
|
0.29
|
%
|
||||
|
Total interest-bearing liabilities
|
|
5,841,425
|
|
|
10,306
|
|
|
0.71
|
%
|
|
5,611,055
|
|
|
3,875
|
|
|
0.28
|
%
|
||||
|
Noninterest-bearing deposits
|
|
5,011,496
|
|
|
|
|
|
|
4,873,953
|
|
|
|
|
|
||||||||
|
Other noninterest-bearing liabilities
|
|
147,335
|
|
|
|
|
|
|
89,980
|
|
|
|
|
|
||||||||
|
Shareholders’ equity
|
|
2,096,157
|
|
|
|
|
|
|
1,954,552
|
|
|
|
|
|
||||||||
|
Total liabilities & shareholders’ equity
|
|
$
|
13,096,413
|
|
|
|
|
|
|
$
|
12,529,540
|
|
|
|
|
|
||||||
|
Net interest income (tax equivalent)
|
|
$
|
127,236
|
|
|
|
|
|
|
$
|
118,602
|
|
|
|
||||||||
|
Net interest margin (tax equivalent)
|
|
4.40
|
%
|
|
|
|
|
|
4.30
|
%
|
||||||||||||
|
(1)
|
Nonaccrual loans have been included in the tables as loans carrying a zero yield. Amortized net deferred loan fees and net unearned discounts on acquired loans were included in the interest income calculations. The amortization of net deferred loan fees was $2.1 million for both the three months ended June 30, 2019 and 2018. The incremental accretion income on acquired loans was $2.7 million and $3.0 million for the three months ended June 30, 2019 and 2018, respectively.
|
|
(2)
|
Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was $1.4 million and $1.1 million for the three months ended June 30, 2019 and 2018, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $721 thousand and $814 thousand for the three months ended June 30, 2019 and 2018, respectively.
|
|
(3)
|
Beginning January 2019, average rates were calculated using the actual number of days on an actual/actual basis. This change was done to provide more meaningful trend information for our NIM regardless of the number of days in the period. Prior periods, which were previously reported on a 30/360 basis, have been restated to conform to the current basis.
|
|
|
|
Six Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||
|
|
|
2019
|
|
2018
|
||||||||||||||||||
|
|
|
Average
Balances |
|
Interest
Earned / Paid |
|
Average
Rate (3) |
|
Average
Balances |
|
Interest
Earned / Paid |
|
Average
Rate (3) |
||||||||||
|
|
|
(dollars in thousands)
|
||||||||||||||||||||
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Loans, net (1)(2)
|
|
$
|
8,504,781
|
|
|
$
|
227,699
|
|
|
5.40
|
%
|
|
$
|
8,369,097
|
|
|
$
|
210,617
|
|
|
5.07
|
%
|
|
Taxable securities
|
|
2,571,692
|
|
|
33,333
|
|
|
2.61
|
%
|
|
2,134,433
|
|
|
24,631
|
|
|
2.33
|
%
|
||||
|
Tax exempt securities (2)
|
|
482,812
|
|
|
7,191
|
|
|
3.00
|
%
|
|
520,689
|
|
|
7,755
|
|
|
3.00
|
%
|
||||
|
Interest-earning deposits with banks
|
|
25,016
|
|
|
295
|
|
|
2.38
|
%
|
|
63,368
|
|
|
496
|
|
|
1.58
|
%
|
||||
|
Total interest-earning assets
|
|
11,584,301
|
|
|
$
|
268,518
|
|
|
4.67
|
%
|
|
11,087,587
|
|
|
$
|
243,499
|
|
|
4.43
|
%
|
||
|
Other earning assets
|
|
232,678
|
|
|
|
|
|
|
219,642
|
|
|
|
|
|
||||||||
|
Noninterest-earning assets
|
|
1,255,381
|
|
|
|
|
|
|
1,258,909
|
|
|
|
|
|
||||||||
|
Total assets
|
|
$
|
13,072,360
|
|
|
|
|
|
|
$
|
12,566,138
|
|
|
|
|
|
||||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||||||||||||||||
|
Certificates of deposit
|
|
$
|
405,018
|
|
|
$
|
1,162
|
|
|
0.58
|
%
|
|
$
|
471,930
|
|
|
$
|
1,075
|
|
|
0.46
|
%
|
|
Savings accounts
|
|
894,777
|
|
|
87
|
|
|
0.02
|
%
|
|
876,842
|
|
|
71
|
|
|
0.02
|
%
|
||||
|
Interest-bearing demand
|
|
1,259,954
|
|
|
2,051
|
|
|
0.33
|
%
|
|
1,274,234
|
|
|
1,143
|
|
|
0.18
|
%
|
||||
|
Money market accounts
|
|
2,640,744
|
|
|
6,174
|
|
|
0.47
|
%
|
|
2,775,253
|
|
|
2,792
|
|
|
0.20
|
%
|
||||
|
Total interest-bearing deposits
|
|
5,200,493
|
|
|
9,474
|
|
|
0.37
|
%
|
|
5,398,259
|
|
|
5,081
|
|
|
0.19
|
%
|
||||
|
FHLB advances
|
|
551,018
|
|
|
7,393
|
|
|
2.71
|
%
|
|
141,171
|
|
|
1,385
|
|
|
1.98
|
%
|
||||
|
Subordinated debentures
|
|
35,415
|
|
|
936
|
|
|
5.33
|
%
|
|
35,600
|
|
|
936
|
|
|
5.30
|
%
|
||||
|
Other borrowings and interest-bearing liabilities
|
|
35,375
|
|
|
369
|
|
|
2.10
|
%
|
|
44,378
|
|
|
136
|
|
|
0.62
|
%
|
||||
|
Total interest-bearing liabilities
|
|
5,822,301
|
|
|
$
|
18,172
|
|
|
0.63
|
%
|
|
5,619,408
|
|
|
$
|
7,538
|
|
|
0.27
|
%
|
||
|
Noninterest-bearing deposits
|
|
5,027,966
|
|
|
|
|
|
|
4,901,200
|
|
|
|
|
|
||||||||
|
Other noninterest-bearing liabilities
|
|
151,457
|
|
|
|
|
|
|
93,602
|
|
|
|
|
|
||||||||
|
Shareholders’ equity
|
|
2,070,636
|
|
|
|
|
|
|
1,951,928
|
|
|
|
|
|
||||||||
|
Total liabilities & shareholders’ equity
|
|
$
|
13,072,360
|
|
|
|
|
|
|
$
|
12,566,138
|
|
|
|
|
|
||||||
|
Net interest income (tax equivalent)
|
|
$
|
250,346
|
|
|
|
|
|
|
$
|
235,961
|
|
|
|
||||||||
|
Net interest margin (tax equivalent)
|
|
4.36
|
%
|
|
|
|
|
|
4.29
|
%
|
||||||||||||
|
(1)
|
Nonaccrual loans have been included in the table as loans carrying a zero yield. Amortized net deferred loan fees and net unearned discounts on acquired loans were included in the interest income calculations. The amortization of net deferred loan fees was $4.3 million for both the six months ended June 30, 2019 and 2018. The incremental accretion income on acquired loans was $4.7 million and $6.7 million for the six months ended June 30, 2019 and 2018, respectively.
|
|
(2)
|
Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent yield adjustment to interest earned on loans was $2.7 million and $2.2 million for the six months ended June 30, 2019 and 2018, respectively. The tax equivalent yield adjustment to interest earned on tax exempt securities was $1.5 million and $1.6 million for the six months ended June 30, 2019 and 2018, respectively.
|
|
(3)
|
Beginning January 2019, average rates were calculated using the actual number of days to be on an actual/actual basis. This change was done to provide more meaningful trend information for our net interest margin regardless of the number of days in the period. Prior periods, which were previously reported on a 30/360 basis, have been restated to conform to the current basis.
|
|
|
|
Three Months Ended June 30, 2019 Compared to 2018 Increase (Decrease) Due to
|
||||||||||
|
|
|
Volume
|
|
Rate
|
|
Total
|
||||||
|
|
|
(in thousands)
|
||||||||||
|
Interest Income
|
|
|
|
|
|
|
||||||
|
Loans, net
|
|
$
|
2,751
|
|
|
$
|
8,707
|
|
|
$
|
11,458
|
|
|
Taxable securities
|
|
2,401
|
|
|
1,594
|
|
|
3,995
|
|
|||
|
Tax exempt securities
|
|
(402
|
)
|
|
(42
|
)
|
|
(444
|
)
|
|||
|
Interest earning deposits with banks
|
|
(1
|
)
|
|
57
|
|
|
56
|
|
|||
|
Interest income
|
|
$
|
4,749
|
|
|
$
|
10,316
|
|
|
$
|
15,065
|
|
|
Interest Expense
|
|
|
|
|
|
|
||||||
|
Deposits:
|
|
|
|
|
|
|
||||||
|
Certificates of deposit
|
|
$
|
(78
|
)
|
|
$
|
115
|
|
|
$
|
37
|
|
|
Savings accounts
|
|
1
|
|
|
12
|
|
|
13
|
|
|||
|
Interest-bearing demand
|
|
(16
|
)
|
|
506
|
|
|
490
|
|
|||
|
Money market accounts
|
|
(73
|
)
|
|
1,937
|
|
|
1,864
|
|
|||
|
Total interest on deposits
|
|
(166
|
)
|
|
2,570
|
|
|
2,404
|
|
|||
|
FHLB advances
|
|
3,309
|
|
|
584
|
|
|
3,893
|
|
|||
|
Other borrowings and interest-bearing liabilities
|
|
1
|
|
|
133
|
|
|
134
|
|
|||
|
Interest expense
|
|
$
|
3,144
|
|
|
$
|
3,287
|
|
|
$
|
6,431
|
|
|
|
|
Six Months Ended June 30, 2019 Compared to 2018 Increase (Decrease) Due to
|
||||||||||
|
|
|
Volume
|
|
Rate
|
|
Total
|
||||||
|
|
|
(in thousands)
|
||||||||||
|
Interest Income
|
|
|
|
|
|
|
||||||
|
Loans, net
|
|
$
|
3,459
|
|
|
$
|
13,623
|
|
|
$
|
17,082
|
|
|
Taxable securities
|
|
5,434
|
|
|
3,268
|
|
|
8,702
|
|
|||
|
Tax exempt securities
|
|
(564
|
)
|
|
—
|
|
|
(564
|
)
|
|||
|
Interest earning deposits with banks
|
|
(383
|
)
|
|
182
|
|
|
(201
|
)
|
|||
|
Interest income
|
|
$
|
7,946
|
|
|
$
|
17,073
|
|
|
$
|
25,019
|
|
|
Interest Expense
|
|
|
|
|
|
|
||||||
|
Deposits:
|
|
|
|
|
|
|
||||||
|
Certificates of deposit
|
|
$
|
(166
|
)
|
|
$
|
253
|
|
|
$
|
87
|
|
|
Savings accounts
|
|
1
|
|
|
15
|
|
|
16
|
|
|||
|
Interest-bearing demand
|
|
(13
|
)
|
|
921
|
|
|
908
|
|
|||
|
Money market accounts
|
|
(142
|
)
|
|
3,524
|
|
|
3,382
|
|
|||
|
Total interest on deposits
|
|
(320
|
)
|
|
4,713
|
|
|
4,393
|
|
|||
|
FHLB advances
|
|
5,333
|
|
|
675
|
|
|
6,008
|
|
|||
|
Other borrowings
|
|
(22
|
)
|
|
255
|
|
|
233
|
|
|||
|
Interest expense
|
|
$
|
4,991
|
|
|
$
|
5,643
|
|
|
$
|
10,634
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
(dollars in thousands)
|
||||||||||||||
|
Incremental accretion income due to:
|
|
|
|
|
|
|
|
|
||||||||
|
FDIC PCI loans
|
|
$
|
579
|
|
|
$
|
326
|
|
|
$
|
867
|
|
|
$
|
655
|
|
|
Other acquired loans
|
|
2,084
|
|
|
2,690
|
|
|
3,831
|
|
|
6,060
|
|
||||
|
Incremental accretion income
|
|
$
|
2,663
|
|
|
$
|
3,016
|
|
|
$
|
4,698
|
|
|
$
|
6,715
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net interest margin (tax equivalent) (1)
|
|
4.40
|
%
|
|
4.30
|
%
|
|
4.36
|
%
|
|
4.29
|
%
|
||||
|
Operating net interest margin (1)(2)
|
|
4.38
|
%
|
|
4.28
|
%
|
|
4.36
|
%
|
|
4.26
|
%
|
||||
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||||
|
|
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
||||||||||||||
|
|
|
(dollars in thousands)
|
||||||||||||||||||||||||||||
|
Deposit account and treasury management fees
|
|
$
|
9,035
|
|
|
$
|
8,683
|
|
|
$
|
352
|
|
|
4
|
%
|
|
$
|
18,015
|
|
|
$
|
17,423
|
|
|
$
|
592
|
|
|
3
|
%
|
|
Card revenue
|
|
3,763
|
|
|
6,616
|
|
|
(2,853
|
)
|
|
(43
|
)%
|
|
7,425
|
|
|
12,429
|
|
|
(5,004
|
)
|
|
(40
|
)%
|
||||||
|
Financial services and trust revenue
|
|
3,425
|
|
|
3,219
|
|
|
206
|
|
|
6
|
%
|
|
6,382
|
|
|
5,949
|
|
|
433
|
|
|
7
|
%
|
||||||
|
Loan revenue
|
|
3,596
|
|
|
3,054
|
|
|
542
|
|
|
18
|
%
|
|
5,985
|
|
|
6,240
|
|
|
(255
|
)
|
|
(4
|
)%
|
||||||
|
Bank owned life insurance
|
|
1,597
|
|
|
1,712
|
|
|
(115
|
)
|
|
(7
|
)%
|
|
3,116
|
|
|
3,138
|
|
|
(22
|
)
|
|
(1
|
)%
|
||||||
|
Investment securities gains (losses), net
|
|
285
|
|
|
(33
|
)
|
|
318
|
|
|
100
|
%
|
|
2,132
|
|
|
(11
|
)
|
|
2,143
|
|
|
100
|
%
|
||||||
|
Other
|
|
3,947
|
|
|
441
|
|
|
3,506
|
|
|
100
|
%
|
|
4,289
|
|
|
1,667
|
|
|
2,622
|
|
|
157
|
%
|
||||||
|
Total noninterest income
|
|
$
|
25,648
|
|
|
$
|
23,692
|
|
|
$
|
1,956
|
|
|
8
|
%
|
|
$
|
47,344
|
|
|
$
|
46,835
|
|
|
$
|
509
|
|
|
1
|
%
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||||
|
|
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
|
2019
|
|
2018
|
|
$ Change
|
|
% Change
|
||||||||||||||
|
|
|
(dollars in thousands)
|
||||||||||||||||||||||||||||
|
Compensation and employee benefits
|
|
$
|
52,015
|
|
|
$
|
48,949
|
|
|
$
|
3,066
|
|
|
6
|
%
|
|
$
|
104,100
|
|
|
$
|
99,519
|
|
|
$
|
4,581
|
|
|
5
|
%
|
|
Occupancy
|
|
8,712
|
|
|
9,276
|
|
|
(564
|
)
|
|
(6
|
)%
|
|
17,521
|
|
|
19,397
|
|
|
(1,876
|
)
|
|
(10
|
)%
|
||||||
|
Data processing
|
|
4,601
|
|
|
5,221
|
|
|
(620
|
)
|
|
(12
|
)%
|
|
9,270
|
|
|
10,491
|
|
|
(1,221
|
)
|
|
(12
|
)%
|
||||||
|
Legal and professional services
|
|
6,554
|
|
|
4,171
|
|
|
2,383
|
|
|
57
|
%
|
|
11,127
|
|
|
7,408
|
|
|
3,719
|
|
|
50
|
%
|
||||||
|
Amortization of intangibles
|
|
2,649
|
|
|
3,088
|
|
|
(439
|
)
|
|
(14
|
)%
|
|
5,397
|
|
|
6,276
|
|
|
(879
|
)
|
|
(14
|
)%
|
||||||
|
B&O taxes (1)
|
|
1,411
|
|
|
1,459
|
|
|
(48
|
)
|
|
(3
|
)%
|
|
3,287
|
|
|
2,776
|
|
|
511
|
|
|
18
|
%
|
||||||
|
Advertising and promotion
|
|
870
|
|
|
1,622
|
|
|
(752
|
)
|
|
(46
|
)%
|
|
1,844
|
|
|
3,051
|
|
|
(1,207
|
)
|
|
(40
|
)%
|
||||||
|
Regulatory premiums
|
|
956
|
|
|
937
|
|
|
19
|
|
|
2
|
%
|
|
1,940
|
|
|
1,874
|
|
|
66
|
|
|
4
|
%
|
||||||
|
Net cost (benefit) of operation of OREO
|
|
(705
|
)
|
|
758
|
|
|
(1,463
|
)
|
|
(193
|
)%
|
|
(592
|
)
|
|
759
|
|
|
(1,351
|
)
|
|
(178
|
)%
|
||||||
|
Other (1)
|
|
9,665
|
|
|
9,162
|
|
|
503
|
|
|
5
|
%
|
|
17,534
|
|
|
19,079
|
|
|
(1,545
|
)
|
|
(8
|
)%
|
||||||
|
Total noninterest expense
|
|
$
|
86,728
|
|
|
$
|
84,643
|
|
|
$
|
2,085
|
|
|
2
|
%
|
|
$
|
171,428
|
|
|
$
|
170,630
|
|
|
$
|
798
|
|
|
—
|
%
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
(in thousands)
|
||||||||||||||
|
Acquisition-related expenses:
|
|
|
|
|
|
|
|
|
||||||||
|
Compensation and employee benefits
|
|
$
|
—
|
|
|
$
|
931
|
|
|
$
|
—
|
|
|
$
|
2,487
|
|
|
Occupancy
|
|
—
|
|
|
586
|
|
|
—
|
|
|
1,590
|
|
||||
|
Data processing
|
|
—
|
|
|
634
|
|
|
—
|
|
|
921
|
|
||||
|
Legal and professional fees
|
|
—
|
|
|
217
|
|
|
—
|
|
|
791
|
|
||||
|
Advertising and promotion
|
|
—
|
|
|
22
|
|
|
—
|
|
|
534
|
|
||||
|
Other
|
|
—
|
|
|
432
|
|
|
—
|
|
|
764
|
|
||||
|
Total impact of acquisition-related expense to noninterest expense (1)
|
|
$
|
—
|
|
|
$
|
2,822
|
|
|
$
|
—
|
|
|
$
|
7,087
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
|
|
(in thousands)
|
||||||
|
Debt securities available for sale:
|
|
|
|
|
||||
|
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations
|
|
$
|
2,139,496
|
|
|
$
|
2,188,290
|
|
|
State and municipal securities
|
|
509,679
|
|
|
574,323
|
|
||
|
U.S. government agency and government-sponsored enterprise securities
|
|
214,994
|
|
|
404,587
|
|
||
|
U.S. government securities
|
|
249
|
|
|
248
|
|
||
|
Total debt securities available for sale
|
|
$
|
2,864,418
|
|
|
$
|
3,167,448
|
|
|
|
|
June 30, 2019
|
|
% of Total
|
|
December 31, 2018
|
|
% of Total
|
||||||
|
|
|
(dollars in thousands)
|
||||||||||||
|
Commercial business
|
|
$
|
3,644,051
|
|
|
42.1
|
%
|
|
$
|
3,438,422
|
|
|
41.0
|
%
|
|
Real estate:
|
|
|
|
|
|
|
|
|
||||||
|
One-to-four family residential
|
|
279,091
|
|
|
3.2
|
%
|
|
238,367
|
|
|
2.8
|
%
|
||
|
Commercial and multifamily residential
|
|
3,913,546
|
|
|
45.3
|
%
|
|
3,846,027
|
|
|
45.8
|
%
|
||
|
Total real estate
|
|
4,192,637
|
|
|
48.5
|
%
|
|
4,084,394
|
|
|
48.6
|
%
|
||
|
Real estate construction:
|
|
|
|
|
|
|
|
|
||||||
|
One-to-four family residential
|
|
201,783
|
|
|
2.3
|
%
|
|
217,790
|
|
|
2.6
|
%
|
||
|
Commercial and multifamily residential
|
|
255,452
|
|
|
3.0
|
%
|
|
284,394
|
|
|
3.4
|
%
|
||
|
Total real estate construction
|
|
457,235
|
|
|
5.3
|
%
|
|
502,184
|
|
|
6.0
|
%
|
||
|
Consumer
|
|
305,752
|
|
|
3.5
|
%
|
|
318,945
|
|
|
3.8
|
%
|
||
|
PCI
|
|
84,730
|
|
|
1.0
|
%
|
|
89,760
|
|
|
1.1
|
%
|
||
|
Subtotal
|
|
8,684,405
|
|
|
100.4
|
%
|
|
8,433,705
|
|
|
100.5
|
%
|
||
|
Less: Net unearned income
|
|
(37,415
|
)
|
|
(0.4
|
)%
|
|
(42,194
|
)
|
|
(0.5
|
)%
|
||
|
Loans, net of unearned income (before ALLL)
|
|
$
|
8,646,990
|
|
|
100.0
|
%
|
|
$
|
8,391,511
|
|
|
100.0
|
%
|
|
Loans held for sale
|
|
$
|
12,189
|
|
|
|
|
$
|
3,849
|
|
|
|
||
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
Acquisition:
|
|
(in thousands)
|
||||||
|
Pacific Continental
|
|
$
|
16,103
|
|
|
$
|
18,526
|
|
|
Intermountain
|
|
2,021
|
|
|
2,303
|
|
||
|
West Coast
|
|
3,451
|
|
|
4,578
|
|
||
|
Other
|
|
(847
|
)
|
|
725
|
|
||
|
Total net discount at period end
|
|
$
|
20,728
|
|
|
$
|
26,132
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
|
|
(dollars in thousands)
|
||||||
|
Nonperforming assets
|
|
|
|
|
||||
|
Nonaccrual loans:
|
|
|
|
|
||||
|
Commercial business
|
|
$
|
23,997
|
|
|
$
|
35,513
|
|
|
Real estate:
|
|
|
|
|
||||
|
One-to-four family residential
|
|
860
|
|
|
1,158
|
|
||
|
Commercial and multifamily residential
|
|
11,843
|
|
|
14,904
|
|
||
|
Total real estate
|
|
12,703
|
|
|
16,062
|
|
||
|
Real estate construction:
|
|
|
|
|
||||
|
One-to-four family residential
|
|
—
|
|
|
318
|
|
||
|
Consumer
|
|
2,338
|
|
|
2,949
|
|
||
|
Total nonaccrual loans
|
|
39,038
|
|
|
54,842
|
|
||
|
OREO and OPPO
|
|
1,118
|
|
|
6,049
|
|
||
|
Total nonperforming assets
|
|
$
|
40,156
|
|
|
$
|
60,891
|
|
|
|
|
|
|
|
||||
|
Loans, net of unearned income
|
|
$
|
8,646,990
|
|
|
$
|
8,391,511
|
|
|
Total assets
|
|
$
|
13,090,808
|
|
|
$
|
13,095,145
|
|
|
|
|
|
|
|
||||
|
Nonperforming loans to period end loans
|
|
0.45
|
%
|
|
0.65
|
%
|
||
|
Nonperforming assets to period end assets
|
|
0.31
|
%
|
|
0.46
|
%
|
||
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
(dollars in thousands)
|
||||||||||||||
|
Beginning balance, loans excluding PCI loans
|
|
$
|
80,029
|
|
|
$
|
74,162
|
|
|
$
|
79,758
|
|
|
$
|
68,739
|
|
|
Beginning balance, PCI loans
|
|
3,245
|
|
|
5,665
|
|
|
3,611
|
|
|
6,907
|
|
||||
|
Beginning balance
|
|
83,274
|
|
|
79,827
|
|
|
83,369
|
|
|
75,646
|
|
||||
|
Charge-offs:
|
|
|
|
|
|
|
|
|
||||||||
|
Commercial business
|
|
(4,118
|
)
|
|
(5,775
|
)
|
|
(5,367
|
)
|
|
(8,252
|
)
|
||||
|
One-to-four family residential
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||
|
Commercial and multifamily residential
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(223
|
)
|
||||
|
One-to-four family residential construction
|
|
—
|
|
|
—
|
|
|
(170
|
)
|
|
—
|
|
||||
|
Consumer
|
|
(354
|
)
|
|
(232
|
)
|
|
(832
|
)
|
|
(496
|
)
|
||||
|
PCI loans
|
|
(815
|
)
|
|
(1,235
|
)
|
|
(1,904
|
)
|
|
(2,578
|
)
|
||||
|
Total charge-offs
|
|
(5,287
|
)
|
|
(7,242
|
)
|
|
(8,275
|
)
|
|
(11,549
|
)
|
||||
|
Recoveries:
|
|
|
|
|
|
|
|
|
||||||||
|
Commercial business
|
|
547
|
|
|
1,543
|
|
|
1,027
|
|
|
2,345
|
|
||||
|
One-to-four family residential
|
|
20
|
|
|
196
|
|
|
37
|
|
|
368
|
|
||||
|
Commercial and multifamily residential
|
|
33
|
|
|
640
|
|
|
64
|
|
|
799
|
|
||||
|
One-to-four family residential construction
|
|
661
|
|
|
14
|
|
|
721
|
|
|
33
|
|
||||
|
Commercial and multifamily residential construction
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
|
Consumer
|
|
178
|
|
|
270
|
|
|
416
|
|
|
530
|
|
||||
|
PCI loans
|
|
872
|
|
|
927
|
|
|
1,577
|
|
|
2,151
|
|
||||
|
Total recoveries
|
|
2,312
|
|
|
3,590
|
|
|
3,843
|
|
|
6,226
|
|
||||
|
Net charge-offs
|
|
(2,975
|
)
|
|
(3,652
|
)
|
|
(4,432
|
)
|
|
(5,323
|
)
|
||||
|
Provision for loan and lease losses, loans excluding PCI loans
|
|
251
|
|
|
4,550
|
|
|
1,595
|
|
|
11,525
|
|
||||
|
Provision (recapture) for loan and lease losses, PCI loans
|
|
(33
|
)
|
|
(575
|
)
|
|
(15
|
)
|
|
(1,698
|
)
|
||||
|
Provision for loan and lease losses
|
|
218
|
|
|
3,975
|
|
|
1,580
|
|
|
9,827
|
|
||||
|
Ending balance, loans excluding PCI loans
|
|
77,248
|
|
|
75,368
|
|
|
77,248
|
|
|
75,368
|
|
||||
|
Ending balance, PCI loans
|
|
3,269
|
|
|
4,782
|
|
|
3,269
|
|
|
4,782
|
|
||||
|
Ending balance
|
|
$
|
80,517
|
|
|
$
|
80,150
|
|
|
$
|
80,517
|
|
|
$
|
80,150
|
|
|
Total loans, net at end of period, excluding loans held of sale
|
|
$
|
8,646,990
|
|
|
$
|
8,454,107
|
|
|
$
|
8,646,990
|
|
|
$
|
8,454,107
|
|
|
ALLL to period-end loans
|
|
0.93
|
%
|
|
0.95
|
%
|
|
0.93
|
%
|
|
0.95
|
%
|
||||
|
ALLL for unfunded commitments and letters of credit
|
|
|
|
|
|
|
||||||||||
|
Beginning balance
|
|
$
|
3,780
|
|
|
$
|
4,330
|
|
|
$
|
4,330
|
|
|
$
|
3,130
|
|
|
Net changes in the ALLL for unfunded commitments and letters of credit
|
|
200
|
|
|
(650
|
)
|
|
(350
|
)
|
|
550
|
|
||||
|
Ending balance
|
|
$
|
3,980
|
|
|
$
|
3,680
|
|
|
$
|
3,980
|
|
|
$
|
3,680
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||
|
|
|
Balance
|
|
% of
Total |
|
Balance
|
|
% of
Total |
||||||
|
|
|
(dollars in thousands)
|
||||||||||||
|
Core deposits:
|
|
|
|
|
|
|
|
|
||||||
|
Demand and other noninterest-bearing
|
|
$
|
5,082,219
|
|
|
49.8
|
%
|
|
$
|
5,227,216
|
|
|
50.0
|
%
|
|
Interest-bearing demand
|
|
1,251,211
|
|
|
12.3
|
%
|
|
1,244,254
|
|
|
11.9
|
%
|
||
|
Money market
|
|
2,317,294
|
|
|
22.7
|
%
|
|
2,367,964
|
|
|
22.6
|
%
|
||
|
Savings
|
|
888,132
|
|
|
8.7
|
%
|
|
890,557
|
|
|
8.5
|
%
|
||
|
Certificates of deposit, less than $250,000
|
|
228,920
|
|
|
2.2
|
%
|
|
243,849
|
|
|
2.3
|
%
|
||
|
Total core deposits
|
|
9,767,776
|
|
|
95.7
|
%
|
|
9,973,840
|
|
|
95.3
|
%
|
||
|
Certificates of deposit, $250,000 or more
|
|
105,782
|
|
|
1.0
|
%
|
|
89,473
|
|
|
0.9
|
%
|
||
|
Certificates of deposit insured by CDARS®
|
|
16,559
|
|
|
0.2
|
%
|
|
23,580
|
|
|
0.2
|
%
|
||
|
Brokered certificates of deposit
|
|
40,502
|
|
|
0.4
|
%
|
|
57,930
|
|
|
0.6
|
%
|
||
|
Reciprocal money market accounts
|
|
281,247
|
|
|
2.7
|
%
|
|
313,692
|
|
|
3.0
|
%
|
||
|
Subtotal
|
|
10,211,866
|
|
|
100.0
|
%
|
|
10,458,515
|
|
|
100.0
|
%
|
||
|
Valuation adjustment resulting from acquisition accounting
|
|
(267
|
)
|
|
|
|
(389
|
)
|
|
|
||||
|
Total deposits
|
|
$
|
10,211,599
|
|
|
|
|
$
|
10,458,126
|
|
|
|
||
|
|
|
Company
|
|
Columbia Bank
|
||||||||
|
|
|
June 30, 2019
|
|
December 31, 2018
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
CET1 risk-based capital ratio
|
|
12.57
|
%
|
|
12.74
|
%
|
|
12.81
|
%
|
|
12.96
|
%
|
|
Tier 1 risk-based capital ratio
|
|
12.57
|
%
|
|
12.74
|
%
|
|
12.81
|
%
|
|
12.96
|
%
|
|
Total risk-based capital ratio
|
|
13.75
|
%
|
|
13.99
|
%
|
|
13.65
|
%
|
|
13.85
|
%
|
|
Leverage ratio
|
|
10.39
|
%
|
|
10.24
|
%
|
|
10.58
|
%
|
|
10.42
|
%
|
|
Capital conservation buffer
|
|
5.75
|
%
|
|
5.99
|
%
|
|
5.65
|
%
|
|
5.85
|
%
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
Operating net interest margin non-GAAP reconciliation:
|
|
(dollars in thousands)
|
||||||||||||||
|
Net interest income (tax equivalent) (1)
|
|
$
|
127,236
|
|
|
$
|
118,602
|
|
|
$
|
250,346
|
|
|
$
|
235,961
|
|
|
Adjustments to arrive at operating net interest income (tax equivalent):
|
|
|
|
|
|
|
|
|
||||||||
|
Incremental accretion income on FDIC PCI loans
|
|
(579
|
)
|
|
(326
|
)
|
|
(867
|
)
|
|
(655
|
)
|
||||
|
Incremental accretion income on other acquired loans
|
|
(2,084
|
)
|
|
(2,690
|
)
|
|
(3,831
|
)
|
|
(6,060
|
)
|
||||
|
Premium amortization on acquired securities
|
|
1,651
|
|
|
2,131
|
|
|
3,430
|
|
|
4,206
|
|
||||
|
Interest reversals on nonaccrual loans
|
|
662
|
|
|
253
|
|
|
1,288
|
|
|
670
|
|
||||
|
Operating net interest income (tax equivalent) (1)
|
|
$
|
126,886
|
|
|
$
|
117,970
|
|
|
$
|
250,366
|
|
|
$
|
234,122
|
|
|
Average interest earning assets
|
|
$
|
11,606,727
|
|
|
$
|
11,052,807
|
|
|
$
|
11,584,301
|
|
|
$
|
11,087,587
|
|
|
Net interest margin (tax equivalent) (1)(2)
|
|
4.40
|
%
|
|
4.30
|
%
|
|
4.36
|
%
|
|
4.29
|
%
|
||||
|
Operating net interest margin (tax equivalent) (1)(2)
|
|
4.38
|
%
|
|
4.28
|
%
|
|
4.36
|
%
|
|
4.26
|
%
|
||||
|
Item 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
Item 4.
|
CONTROLS AND PROCEDURES
|
|
Item 1.
|
LEGAL PROCEEDINGS
|
|
Item 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
|
(a)
|
Not applicable
|
|
(b)
|
Not applicable
|
|
(c)
|
The following table provides information about repurchases of common stock by the Company during the quarter ended June 30, 2019:
|
|
Period
|
|
Total Number of Common Shares Purchased (1)
|
|
Average Price Paid per Common Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plan (2)
|
|
Maximum Number of Remaining Shares That May Yet Be Purchased Under the Plan (2)
|
|||||
|
4/1/2019 - 4/30/2019
|
|
8,008
|
|
|
$
|
36.88
|
|
|
—
|
|
|
2,900,000
|
|
|
5/1/2019 - 5/31/2019
|
|
248,497
|
|
|
35.53
|
|
|
248,152
|
|
|
2,651,848
|
|
|
|
6/1/2019 - 6/30/2019
|
|
376,200
|
|
|
34.70
|
|
|
376,006
|
|
|
2,275,842
|
|
|
|
|
|
632,705
|
|
|
$
|
35.05
|
|
|
624,158
|
|
|
|
|
|
Item 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
|
Item 4.
|
MINE SAFETY DISCLOSURES
|
|
Item 5.
|
OTHER INFORMATION
|
|
Item 6.
|
EXHIBITS
|
|
10.1**+
|
|
|
|
|
|
|
|
10.2**+
|
|
|
|
|
|
|
|
10.3**+
|
|
|
|
|
|
|
|
10.4**+
|
|
|
|
|
|
|
|
31.1+
|
|
|
|
|
|
|
|
31.2+
|
|
|
|
|
|
|
|
32+
|
|
|
|
|
|
|
|
101+
|
|
Cover Page Interactive Data File
|
|
|
|
|
|
101.INS+
|
|
XBRL Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
|
|
|
101.SCH+
|
|
XBRL Taxonomy Extension Schema
|
|
|
|
|
|
101.CAL+
|
|
XBRL Taxonomy Extension Calculation Linkbase
|
|
|
|
|
|
101.LAB+
|
|
XBRL Taxonomy Extension Label Linkbase
|
|
|
|
|
|
101.PRE+
|
|
XBRL Taxonomy Extension Presentation Linkbase
|
|
|
|
|
|
101.DEF+
|
|
XBRL Taxonomy Extension Definition Linkbase
|
|
|
|
|
|
|
|
|
|
|
|
COLUMBIA BANKING SYSTEM, INC.
|
||
|
|
|
|
|
|
|
|
Date:
|
August 1, 2019
|
|
By
|
|
/s/ HADLEY S. ROBBINS
|
|
|
|
|
|
|
Hadley S. Robbins
|
|
|
|
|
|
|
President and
Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
|
|
|
|
|
Date:
|
August 1, 2019
|
|
By
|
|
/s/ GREGORY A. SIGRIST
|
|
|
|
|
|
|
Gregory A. Sigrist
|
|
|
|
|
|
|
Executive Vice President and
Chief Financial Officer
(Principal Financial Officer)
|
|
|
|
|
|
|
|
|
Date:
|
August 1, 2019
|
|
By
|
|
/s/ BROCK M. LAKELY
|
|
|
|
|
|
|
Brock M. Lakely
|
|
|
|
|
|
|
Senior Vice President and
Chief Accounting Officer
(Principal Accounting Officer)
|
|
|
|
|
|
Company:
|
Columbia Bank
1301 ‘A’ Street, Ste. 800 Tacoma, WA 98402-4200 Attn: Chief Human Resources Officer |
|
|
Employee:
|
Andrew McDonald
|
|
|
(i)
|
One Hundred percent (100%) NAR; or
|
|
(ii)
|
Ten (10) times the annual Executive Benefit calculated as would be due under the First Amended and Restated Columbia State Bank Supplemental Executive Retirement Plan Agreement between the parties with an effective date of February 27, 2015 (“SERP Agreement”, as amended), and determined as of the later of Insured’s date of death or the attainment of the Normal Retirement Age. In addition, if Insured dies before attaining the Normal Retirement Age, the Executive Benefit shall reflect an assumed annual Base Salary increase of Three Percent (3%) on each anniversary of Insured’s death until such time as Insured would have attained the Normal Retirement Age. Any capitalized term that is not defined in the Agreement or any amendment thereto shall be defined as in the SERP Agreement.
|
|
(i)
|
One Hundred percent (100%) NAR; or
|
|
(ii)
|
Ten (10) times the annual Executive Benefit calculated as would be due under the Columbia State Bank Supplemental Executive Retirement Plan Agreement between the parties with an effective date of February 27, 2015
|
|
(i)
|
One Hundred percent (100%) NAR; or
|
|
(ii)
|
Ten (10) times the “Target Benefit Amount” as defined in Paragraph 2.26 of the First Amended and Restated Columbia State Bank Supplemental Executive Retirement Plan Agreement between the parties and with an effective date of February 27, 2015 (“SERP Agreement”, as amended). In addition, if Insured dies before attaining the Normal Retirement Age, the Target Benefit Amount shall reflect an assumed annual Base Salary increase of Three Percent (3%) on each anniversary of Insured’s death until such time as they would have attained the Normal Retirement Age. Any capitalized term that is not defined in the Agreement or any amendment thereto shall be defined as it is in the SERP Agreement.
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Columbia Banking System, Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
/s/ HADLEY S. ROBBINS
|
|
|
Hadley S. Robbins
President and
Chief Executive Officer
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Columbia Banking System, Inc.;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/ GREGORY A. SIGRIST
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Gregory A. Sigrist
Executive Vice President and Chief Financial Officer |
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ HADLEY S. ROBBINS
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Hadley S. Robbins
President and
Chief Executive Officer
Columbia Banking System, Inc.
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/s/ GREGORY A. SIGRIST
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Gregory A. Sigrist
Executive Vice President and
Chief Financial Officer
Columbia Banking System, Inc.
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