Business
COLUMBIA BANKING SYSTEM, INC. REPORTS SECOND QUARTER 2024 RESULTS
TACOMA, Wash., July 25, 2024 /PRNewswire/ -- $120 million $140 million $0.57 $0.67 Net income Operating net income 1 Earnings per diluted common share
About this update from Columbia Banking System, Inc.
[{"type":"text","content":"TACOMA, Wash., July 25, 2024 /PRNewswire/ -- \n\n \n \n \n \n \n \n\n \n$120 million\n$140 million\n$0.57\n$0.67\nNet income\nOperating net income 1\nEarnings per diluted common share\nOperating earnings per diluted common share 1\n \nCEO Commentary\n\"Our second quarter results reflect continued progress on our targeted actions to improve our financial performance and drive shareholder value,\" said Clint Stein, President and CEO. \"The successful execution of identified changes following enterprise-wide evaluations resulted in a lower recurring expense run rate and increased stabilization in the cost of customer deposits during the second quarter. While we are encouraged by the early success of our near-term initiatives, we have not diminished our laser focus on regaining Columbia's placement as a top-performing bank across financial metrics. Longer-term initiatives will further enhance our growth and profitability as we strive toward long-term, consistent, repeatable performance.\"\n–Clint Stein, President and CEO of Columbia Banking System, Inc.\n \n2Q24 HIGHLIGHTS (COMPARED TO 1Q24)\nNet InterestIncome and NIM\n• Net interest income expanded by $4 million on a linked-quarter basis due to higher income earned on loans and investment securities, including increased accretion income, partially offset by higher deposit costs.\n• Net interest margin was 3.56%, up 4 basis points from the prior quarter as the increase in earning asset yields outpaced the increase in the cost of interest-bearing liabilities given targeted actions taken to stabilize the cost of customer deposits.\nNon-Interest Income and Expense\n• Non-interest income decreased by $6 million due to the quarterly fluctuation in cumulative fair value accounting and hedges. Excluding these items, non-interest income was stable.\n• Non-interest expense decreased by $8 million due to lower compensation and CDI amortization, modest decreases in other categories, and the first quarter's larger FDIC special assessment. The effect was partially offset by restructuring expense.\nCreditQuality\n• Net charge-offs were 0.32% of average loans and leases (annualized), compared to 0.47% in the prior quarter. \n• Provision expense of $32 million compares to $17 million in the prior quarter, which benefited from the recalibration of the commercial CECL model.\n• Non-performing assets...