Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Columbia Banking System's Fourth Quarter and Full Year 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question-and-answer session. Instructions will be given at that time.

conference recorded. this reminder, a is being As

I to and your like to go Chief call over turn the ahead. Please host, System. Officer Columbia would of now Executive Banking Clint Stein, President

Clint Stein

columbiabank.com. good and call and market year opens. before today's review XXXX Welcome, Justin. which we available investor you, morning. you presentation released us as and for quarter fourth release the we The accompanying Thank are our results, earnings on joining full at morning Thank this

another for year was It exceptional Columbia.

Our successful momentum to a customers capital bankers business on the record XXXX, necessary XXXX with our entered tremendous on grow new heels and and in winning the allow of they opportunities, expand. providing were and to capitalizing

integration year, an while base decade. We existing client And XXXX, our the rate Commerce the our involved interested for our That all Bank merger bank the Holdings well of extended into quarter efforts first of weren't acquisition. Umpqua. during in with we our footprint over in conversion nurturing unseen Utah the environment for in and simultaneously were teams a core enough, across the completed Arizona during

competing priorities, annual income first delivered after ratio for high; new efficiency fell $XXX XX% the quarter. outstanding our full by during net EPS the history; PPP year the year, operating fourth time adjusting XX% million results: for full below our our a to bankers exceeded in runoff; year these by Notwithstanding XX% expanded in loans and rose

XX the last in happy the that this for conversion we merger expect it completed we clearing approval January of and in the systems past Consequently, announced sales hurdle February March. X, are longer Umpqua we with our weekend, divestiture we first expected, the to planning still the second close received branch initially for scheduled I'm from we with the merger February. the to on Umpqua. Although had FDIC with report took than regulatory

I'm say and to a It's proud an to committed talented understatement team. such lead

remaining across on preparing Associates of job stakeholders outstanding months our externally focused done Umpqua. past XX merger to had company all with addition the an for our over the in

on to the planning. our for for challenge sustaining them integration Western activities their business conversion want premier rising towards in I efforts the supporting and as focused bankers U.S. and thank to creating Our commitment normal work while banking we one of growing franchises the simultaneously

call Chief the today our me Aaron Chief Officer; Operating with our Financial On are and Chris Officer. Deer, Merrywell,

remarks, be questions. answer our we will to happy your Following prepared

during remind I need statements may call. forward-looking to you make the that we

please or earnings information to further filings. on or our comments, refer release either website forward-looking For our SEC

over this I'll At call point, turn Aaron. the to

Aaron Deer

morning, everyone. Good

$XXX noted, EPS and full year $X.XX record. of were net new Clint As million annual income of

strong Our and well-controlled growth and credit. performance was fee loan a thoughtfully-managed reflection rates solid spending rising income, with combined of interest

$XX.X to combination exceeding related record costs million, XXXX Excluding of acquisition and set XX%. pre-tax the Merchants prior the pre-provision a million, by income was Umpqua million or $XXX $XX in record

building core net $X.X increase sequential was that quarter. a non-recurring had recall interest larger, but million increase of to and due of $XX.X continued $X Quarterly pre-tax $X.X earnings increased $X.XX, EPS The on costs, gain merger income. we million $X.XX and pre-provision had million higher respectively. we quarter $XX.X of the linked-quarter expansion earnings a represented Fourth third million by on of actually and million of the to sale

low year-end and end remains the position of overall supported loan-to-deposit million average superb increase by $XX.X pandemic. strong, at us $XXX five-year The providing very pricing the at which $X.X funding quarter and was of in sheet deposits was an The the liquidity during with of remained shifted remains mix by preceding short-term billion. our billion declined borrowings, deposit as flexibility. continued balance deposits XX%, The to mix ratio the

for merger. accounting XX after the linked-quarter sale Umpqua flat moved essentially as of divestiture in branches the of $XX of condition held were loans preparation a million loans for for to Total

$XXX exceeding Excluding repayments seasonally with line production early million essentially uptick this, versus were to million prepayments in down as prepayments -- in new contractual an Early use rather lower loan was in utilization. contractual $XXX and offset payments along market to is rates. are that quarter by current debt $XXX the to borrowers million their fourth the third, choosing liquidity more pay repriced

value investment at movement to for available for years. book. slightly to overall was year-end. X.XX%, as investment XX% yield of the paydowns while split the were available sale offset by $X.X portfolio million billion, and decreased sale was The related and to- $XXX as The portfolio maturities partly The duration X.X securities XX% to held unchanged maturity fair essentially decreased

XX margin XX interest earning linked-quarter basis continues loan rates, cost offsetting bps increasing to rate higher driven benefit stronger X to net this, from predominantly X.XX%, rising rose relatively points a basis asset modest deposits Partly our points. to by average Our mix. of and

points overall interest-bearing basis XX mostly funds. Our exceptional to XX though of FHLB to continues cost to due a of cost support points rose favorable overall base higher liabilities our borrowing, basis deposit

coupons of which above compares average the quarter X.XX% of loans our XXXX. loan the latter rate floors in the to of half the XXXX. X.XX%, in majority their New of fourth moved were an vast Notably, fourth at quarter in

income due sale quarter the gain $XXX,XXX. property Noninterest adjusting however, noted to of approximately income BOLI by million to $XX.X noninterest linked earlier million. gains $XXX,XXX, to increased decreased $X.X I After mostly

deposit revenue strength solid trust see in banking management services revenue treasury weakness financial and to due fees and account mortgage lower with loan to in offsetting continue We activity.

million due expense lower that we primarily benefits and control expense and third million, compensation expenses to cost had fourth [good] (ph) across the sequentially board. merger-related noninterest Excluding in $X.X quarter, decreased $XX.X to the

revenue, XX%. the dropped operating rate efficiency XX% for with of our strong remained Meanwhile, quarter. Combined tax the at level to effective

net these provision, we reflecting And decreased a less of improved metrics NPAs with trends, total the reported recoveries at $X.X assets forecast. credit million. quarter, representing basis Nonperforming optimistic million we asset industry-leading Despite a continued X economic quality. of Lastly, recorded just during points year-end $X.X reflecting slightly assets. favorable

X.XX% year-end As as September percentage as X.XX% of rose a to the a result, total allowance XX. loans of compared to at

it turn I'll over that, with Chris. to And

Chris Merrywell

good Thank you, morning, Aaron, everyone. and

As quarters of Aaron line fourth and million $XXX a production PPP year record billion. to production $X.X of loan post drove full was in mentioned, with solid new previous

was growth a tempered loan utilization, XX% adjusted paydowns. reduction during representing quarterly normal PPP an X% the of for seasonal to While billion, by grew when $XX.X in balances year and line increase loan

XX% a and X Production C&I. well XX% of during our split to proud the to line industries and We're quarter and disciplined utilization but income XX.X% fell between across very approach. ago. CRE was XX.X%, basis during CRE remains relationship-based and our diversified the owner multiple from occupied. balanced Overall, is was year well portfolio up bankers continues points C&I with their properties reflect quarter predominantly

distribution loan loans XX% production and in XX% fixed, at was PPP XX% XX% XX% quarterly the stands of only variable. California, a Washington, Oregon, portfolio at Idaho, XX% at The X% with XX% floating, no The $XX of measurable XX% million states. other year-end. our and fixed, X% XX% mix of stands part portfolio geographic as remaining floating now longer The variable. portfolio are overall

were $X.X fell due by seasonal a the billion historical levels. during reversion outflows -- million excess Deposits the activity normal and me, liquidity including excuse of and back of to client factors, $X.X a variety towards quarter

coming moving distributions, that with $XXX full down paying of Services to year-end bonuses alternatives, the for debt, majority funds $XXX almost year, and higher variety and to including quarter CB million to of during a include purposes cash of during investments the Financial in use the million second making half Clients paying approximately year. and the the

the quarter, the at during XX% end the XX.X% sourced noninterest-bearing XX% mix of from to The as with end our deposits of improved demand deposit year-end. And XXXX slightly at deposit from businesses consumers shifted of and from XXXX. XX.X% the of of ratio

yet $XX year income wealth On management million revenue. had record over group the fee in our another front, with

wealth Our to clients' work together continue bank the management retail, in and effort to across our entire an cycles. commercial relationship life teams

the And to over call Clint. I'll turn with back that,

Clint Stein

Chris. Thanks,

quarterly $X.XX morning. was this dividend Our of regular announced

February shareholders of be business on February the This quarter's to dividend as close will XX record paid of on X. of

our prepared comments. concludes This

As are Chris your me Justin, to the we'll And open with reminder, a answer call now, Q&A. and Aaron questions. for

Operator

question And first Thank comes James. you. from Feaster David Instructions] Raymond from [Operator our

is Your now open. line

David Feaster

everybody. morning, good Hey,

Clint Stein

Good David. morning,

Aaron Deer

David. morning, Good

David Feaster

you on client certain I'd seeing Maybe then, dynamics and front. that help maybe maybe surge of deposit touched from competitive some curious through more the deposits? like cost are of quantify dynamics of competitive? versus follow-up you utilizing think geographies cash debt. higher competitive some the we're deposit you there. to surge pay on front. maybe on comments could And the I you standpoint, seasonal kind a to do wondering if the on And versus maybe down some was Just guess I outflows

Aaron Deer

kind excess up clean Chris towards some let and we revert of start, I'll have of me. Aaron. funding certainly revision seen is levels. normal This Sure. for But back client

bit this competitors. run the pandemic, our of continue seen, the we we of think ahead you relative that of I think But to outflows to the on Even of look peers. a I a there's little we after probably our more through be front. given overall we've inflows lot quarter, if analysis that that done some saw still most outsized saw to of

I that -- continued And and been in Chris let can good just of bit I think still talk -- little deposit mix. just pricing. so, we're our discipline what And and about the that. of the more And we've lot feeling terms very have the flows reflects a continued about a

Chris Merrywell

of more you that that the are trying lots what certain with through Sure. you're don't of part such. become the specials, and to, interest were, of clients sensitive markets, when we working markets would available how mentioned markets, I and competitors it wealth things happy David, the management certain utilizing purpose our all different that it's the competitive in to -- tools Thanks, rate and it's find is and competitive team Aaron. really with the of tell deposit are out have yes, to funds you they're in not nature, but and seeing

specials it are some going chosen is costs used pivot there the keep seeing But on money clients. exception to not those losing reality for into have we're a we out some money are that that. -- a that another the still category, some folks We've in up pricing CD relationships But a put bank. special around But with comfortable pretty special the market our from are and that more discipline to but bill hot just have there. that pivot seeing significant or or our there treasury relationships. really the into we're the We're a with we're

David Feaster

Okay.

Aaron Deer

you of also, the at look total, the noninterest-bearing stable. composition continue very that to David, of if be as And, percentage

my just if end where five opening comments, the loan back very of of still ticked terms just In up ratio, and it that little fact, ranged in it down to I a stood, we're pandemic, deposit as at basically the in look that. sequentially. the between And preceding over the bottom actually XX% XX% mentioned years bit you and

of flexibility. we've a So, still lot

David Feaster

Yes, like CDs or FHLB if do And of of some absolutely. advances sales funding surge security those or you is deposits versus way the primary outflow, see those more anything that?

Aaron Deer

be this point at of Yes, would our funding. preferred source that

David Feaster

a maybe And side. on question Okay. the growth

originations. And slowdown somewhat in of a seasonal

where this you somewhat coming much Just bringing returns of deals the And economic that appetite curious diminishing still maybe across -- what even the coming attracted -- to competitive adjusted or point demand desk. cycle. up the just given versus curious backdrop are your attractive at in how segments risk just is good still fewer and credit market in slowing for for dynamics credit the

Clint Stein

David, into question. a always, a pack Well, you lot as

feel hand back then and each address fully circle it guess, over that. aspect So, don't start I'll to to we I if Chris. off free of

verticals when at to look within created to with different of very the there's And we're not We're with any our as merger that the then, issues From a verticals. in. our committed standpoint, clients to an throughout those our historically concentration pending Umpqua, comfortable cycles that and appetite portfolio been that. all we've remaining get bankers result we

on more do run gives room those a gives we actually expertise verticals basis, us that in. to have fact, within In -- combined it

though question either of I because can your what I away of you -- from we I'll it's say part paraphrase, we guess could stepped key really call is the think dynamics. I quantify competitive -- don't underwriting,

isn't are that loan people focused it might really at or there. putting where realizing then, heading on to number looking right, we economic opposed as the up be from call just that, I return much an economy think all and very still standpoint, growth risk I

And would there shareholder pass that so, and somebody rather take else we that during the value from our let was a deal. perspective, bit protect quite of And quarter. and

specifics. the Chris you And give I'll let

Chris Merrywell

were we deals at the what as coming looked Yes, quarter of in during below were that were, it tracking in it not Thanks. a and that put business the treasury hundred it that on David, and the doesn't million we approaches the that rates we Okay. said in couple to what the this of we dynamics simply And saw rates interest is seeing at put XX-year and to the seem shareholders' prudent on best books. just that frankly were time. type requests

a to something we we've Now, was some that's in deals. of that, normally that the that look relationship that throughout would business past, But chose if of away pricing. attract types there we as be you those was mentioned the would something we from or certainly new where at flexible with type when of the walk like year,

David Feaster

sense. makes me. one last for And That then, maybe

conversion. conversion mock systems readiness You guys with upcoming and the a talked first the review about having

maybe long from kind process, opportunity. how a of any And the looking going there maybe for accelerate? management then, that time. we think and opportunities integration from this been your we curious around learned that? you other standpoint, at it's or through integration From conversion as unique anything upgrades thoughts Is this as go and that. investments office curious standpoint, whole they've about can we went, conversion while conversion that through the Just the or these what Just we're

Aaron Deer

mock is Hey, Yes, Aaron. conversions the very well. this David, went

to communication want make do sure ways we when we of now to we're possible. conversion the some make get Of always and the seamless customer for that course, as that our better. out experience as a smoothly possible it absolutely do to learned having actual we're going it be and there's that's we a lessons things figuring and associates out goes and as tremendous client But amount we for can sure right

a we're of lot there. So, spending time

of effort. introducing And we've risk leading we've new obviously, not any process. is through that principle of gone this had to this, IMO, as a

what to of are So, we we're competitive anticipating new that in continuously of about we're haven't staying sure necessarily speaking part build needs our that products their as that. the looking to Certainly, and looking making process. at been ahead and actively environment clients this and

are year all leading do through ahead treasury trying we're And nothing that integration looking the to be make things will that so, that continue to be our edge, a in to implement process. management the we of there's to there capabilities sure but

Clint Stein

time the is Umpqua's spent complementary The one we've thing I'll add past business activities the to XX that Columbia's nature about months of business a of talking lot over and activities.

for So, existing we the organizations. think that there's a lot with of upside opportunity capabilities two between

our example, the Columbia those broader some book benefit for got So, and expanded get leveraging things. treasury on impacts capabilities, those will management product that set more customers the a instantly sophisticated of of existing side offerings. types healthcare of has Umpqua

integration. in looking to the emerged moments we with back But existing. that think the point, think has there's bank of long-term as And and we parts able So, things we year opportunities I moving Aaron's we'll there then, conversion conversion at, already these -- to give do advantage. that try of minimize plenty to critical after would at I of the pivot half shortly of to quickly number can that extent, be towards neither the us think have close, are scheduled an that the

exceed to one but meet up And set of needs so, our quick grow the them. turn, needs, and very very, to be the well I most meet will it think think only not day with customers I we're continue a of -- but

David Feaster

store Thanks. color. has great Thanks. what for got We're XXXX all. see you excited in That's to

Operator

Davidson. from question thank Jeff next Instructions] from comes [Operator you. And D.A. And Rulis our

now is line Your open.

Jeff Rulis

morning. good Hi,

Clint Stein

Good afternoon, Jeff.

Jeff Rulis

core it, in it in, and lines. noninterest income narrow expense on if I XX to around -- 'XX. maybe could, got call fee 'XX, I wanted the the Just

you the first I of what rates about numbers outside are see influences, look So, any wanted your for transitions to at growth seasonal you. on if thoughts if of kind core? those align with thoughts Thank how then, for And that year? but have

Aaron Deer

pretty Jeff, Yes, those are close.

can to the then, trail that FICA think costs quarter of echo And an terms to in on I related in But underlying of you of typically specifics year. helpful If for Ron going hit, you costs call first expectations I would expenses merit that's then what and kind you. I give seasonal the off if those sort the of behind the comments you're the Umpqua impact. that see get through quarter earlier increase shortly the that, lines the in you merger thing. made to in uptick first after want, those terms hit annual lot a But that of

or going abnormal two coming of to of think anything to together. the see course, you're institutions I related exception outsized our don't So, that,

So…

Jeff Rulis

Aaron, expectation outside a saves, you 'XX? just the kind just that cost are in X% or -- exclude of of X%, of X% for of let's in Columbia, kind the growth standalone -- but growth

Aaron Deer

We're what more probably probably range -- is X% I would I'd thinking. say, X% be in to the of

Jeff Rulis

Okay. you. Got

Okay. some for And similarly and but if Columbia takes own loan and layer also of expectation in, payoffs growth your puts the you of don't on looking if at movement, I budget competitively or understood you've on kind -- standalone? XXXX visibility on growth a the got is you customer that I growth then, guess, and paydowns, where appetite, know within

Chris Merrywell

Jeff, is Chris. Yes, this

cetera. to visibility payoffs, the paydowns, there's amortization, it, think I always there's normal et

is, interest in normal it of likely. kind the put are payoffs unforeseen Just rate right business environment now less of course where it with your the

it. comfortable or You where that, pretty may things are some but we business still on sales see like we're some

of of make are and kind what I don't comfortable the our where would the mid-single to put as would which matter and spot bankers we're think, onto balance at be. much ones a of digit. sheet. that most you're that at. to they're mid. to space dynamics far as just look go know is, over it's seeing that with lots on again, But low- the sense I looking the X% market a mid-single at overall digits I in low- I opportunities But to But

Jeff Rulis

Thanks, step Chris. back. I'll

Operator

[Operator from next from Jon And And Markets. comes thank question you. Arfstrom our Capital RBC Instructions]

now open. is line Your

Jon Arfstrom

everyone. Hello, Hey.

Aaron Deer

Jon. Hey,

Clint Stein

morning. Good

Jon Arfstrom

expense Hey, to On shows know deck, I shot. presentation, last talk communicated. you this don't And go if your but it answer you the rate one, of back How to a core conversion with original systems Slide originally bullet XX you'll your going give your if of I'll us $XXX do about full 'XX. occur want the about million at rate in is given it cost of the time you two-thirds that saves the you savings run of to than timing same planned? think run

Clint Stein

Yes. It's a great question.

Just given Typically, million. usually the are some between days XX XX of somewhere and at we've conversion passage those then the when protracted approval, close, the another identified $XXX of with and wave timing time full is realized integration. post and those of the immediately systems there's

quarter fourth So, shooting clean we're for run a 'XX. of for rate

million third So, we the that expect implemented quarter. would is all within $XXX sometime fully

I that quarter, go we've Kind that of that that of standpoint, that centered-in from first realized attrition if we've have of an has is know how employee me. some that Aaron What where between some don't does flows had just as I the will forward. say in I second front not specifically. positions will don't quarter? of actually been had

that little there's run that's already the in rate, I'd say. bit of so, And a

add Aaron. I to don't want that, know you anything if to

Aaron Deer

But mean, said, timing the a of we when the that Clint -- order is date the rate, hit are saves of by thing run maybe when hitting that's in as think to I expectation various or changed good of expect remains. year-end terms that realized. end No. of just I the the

Jon Arfstrom

other what to but same looking very like it's amount, helpful were, were asset just earning impressive margin costs that's about interest-bearing outperformed then, your the most when up they I And that see actually, follow-up I've That's on you liability kind yields your of actually the was Okay. of and seen. and up question, for. the banks

yield can direction think your the liability expansion? you liability like of kind interest-bearing yields of expansion those on this Just you point? interest-earning two asset with philosophically more asset pressure and feel Or that pace maybe keep -- side matches exceeded when those the costs, you cost there is at viability about do

Aaron Deer

bit That's think the a the on, least you on I coming where we and then cash mix good but question. look flows little seeing securities I we're off be a yields seeing between the are you we them new two. an side, the portfolio, see Because those here of at are as should investment if continue the -- expansion continued coming to liability see shift not think the year matched asset acceleration utilize through if at overall

Jon Arfstrom

more guess, And That's one helpful. follow-up. Okay. I then,

of don't terms as they negative? may kind you or kind that in answered Chris revenue mind have game you've the And announced, before, laid out but at want all them themes that You in for synergies, when but lay other I this big your point, found opportunities to really Clint, of Thanks. the of was have merger waiting you of the any positive know it approval? any out this at you picture or changed played

Clint Stein

achieve -- basis, is or expectations It's thing, what we to announced The able nothing combined on it on we XX ago achieve what terms what what, basis big was months be than we a there. almost. completely combined so of a thought would our in But picture. has different and that were this world when changed

of with that revenue passage our capture In entrenched synergies. going we're able the probably those in firmly time, fact, beliefs to be to just more

running. in streams, to can diligence Bank that Columbia some so hard I it's you of process. standalone areas these the would then additive truly ground get talent March of be But did hit not depth for we analysis revenue has some the excited understand X, waiting to things of we think these a through to fairly the Umpqua robust start of as that

to that together. that today are be we accomplish thinking So, able we won't now there's we expected nothing that

wants step Chris has I'll and if he add. see anything back to

Chris Merrywell

Yes.

honestly, having and what to it's about advantage able capabilities that that a in think now coming get They point those what know our conversion of take all have date bankers the around get back is, to and time are and we've be over the sticking to they piece I expanded time firm where Jon, right this what's with to learned now out market. taking there we going capabilities. our

big there's of have little excitement And time. think yes, think nature. we'll obviously, have things the created world prospecting. in be picture, of bit things because on different, line been Rates only finish So, that Mortgage But I of in I market now still has a line to it. sight, now But changed, the of we are, more it it's changed. don't a because bankers aspect but actually. different. working are and finish our that length that And that and is I then, out really think with there exciting looking often

Jon Arfstrom

luck Okay. five Thanks. Good the weeks. next over

Clint Stein

Jon. Thanks,

Operator

Thank KBW. from question you. our from McGratty next And comes [Operator Chris Instructions]

is now open. Your line

Chris McGratty

Thanks. Great.

question credit. credit guys you have on a numbers. Just Obviously, unbelievable

XX%. thoughts looks that's taken on analysts portfolio. conversations of office? could time that your you. characteristics, XX% particularly it's to Thank lot that you're some the speak the would kind It was So, of anything of a you statistics, hoping about, One as like or great. our concerned recently Maybe be just I underwriting is about

Clint Stein

take Good I'll start morning, your release the metrics remain by team in question to pristine. saying saw our Chris. you maybe I'll start, continue to a here. and we'll answering approach

years that earnings this someplace skiing right call I the McDonald -- first in been. is is On now. probably think Andy XX-plus Andy in hasn't the first Idaho

to testament credit. a So, thinking we're about I itself how is that in think,

the things a core portfolio. buildings, the we of of office not the of the that downtown-type office our that's have in type lot space, urban to Specific kind some of really --

of other And Downtown and so, we're Portland from there's occupancy say, I let's what a little of in standpoint. difference a areas and Seattle significant an you're some bit think seeing the between in, that

I'll more pass to it give that, with over you some and can he But Chris, details.

Chris Merrywell

what in Sure. always nature, rate. is there that and it of by even mentioned I the Chris, hasn't you credit coming We've stressed changed. very in that's that underwriting fairly higher we've been it And at with you, past. anything the comfortable mean, at stress-test nature. when on rates, the portfolio side. changed in talked conservative our look towards What's to you sense seeing new we're we're higher being you about

of to new, lower a at were to to were anything rates you ability further, the values proceeds the stressing the not not that in the back-office to space portfolio headlines down, to where out, as anything. higher pulling of up when seeing a seeing mentioned, And again, really of borrower go lender we're things really Clint nature. been certainly potentially in values not those turning we're rates, markets working niche. overall, So, on our come look max portfolio, businesses withstand That's loan if and, you're on never and we're the

Chris McGratty

for Thanks that. Okay.

Aside I more I high, from worry spending would guess, else is economy. stress-testing the mean be wall of office, Where within time the just you on broadly your portfolio?

Chris Merrywell

not any that's Well, actually, that signs I seeing. there's early warning everything we're stress-tested. Not seeing mean, any --

Andy, Aaron, we're looking with there's it. kept provision economic and indicators at we conversations with unemployment think When do eyebeam nature. on an that things I certainly the of our from and

with are many across we're again, that eye when large states, layoffs. keeping only you an hear those on But of happen say guess some But and some numbers, companies not these companies doing and some I would of may but some these downsizing they're you multinational. are what

it so, or mean any that's doesn't anything those And But all popped from any reviews of Haven't it's looking area an testing. seen of things. at right are yet the up types street we our in affecting us. down

Clint Stein

communication the talk portfolios. that's lot operating a -- proactive two-way and under banks so premise bankers really The value having surprises. managing I'll relationship is comes their this, probably down of a ongoing other of really is no being do it We relationships, our to there's that add of in a but lot that that thing the you're talk about

a that And possible think. or or those to does process, and in maybe basis within for is an that sure just find you XX the that we ongoing that then, forthright possible we, we is, been you make we years borrower if types we've the that best each prune out that's it as of through part sort Well that communicative that clients well of trying have isn't the business, would can. isn't are on portfolio vertical best the what

area each would your That's builder How probably late strategy be a performing hold that does What's early are What area. occurred great communicating mention pruning see. vast our up? XXXX, projects. that There one are those like? of ongoing part really majority your and it management intact as so, look started the And that And portfolios about, of of 'XX, if your rates But plan in those banking to result inventory clients the well. as early go what's was was a that just for up? going relationships I'll something 'XX of as specifically is metrics exit our their very with a you of conversations. result, bit of those little part

things It also that see the you other leads into sheet. in balance

own dynamic. of smaller Now example, more portions are these builders our for But, into their their money are of that putting projects.

at their So level that come as There's see kind our you you lowers that macro of at play things utilization. can financials. their deposit a that balances, different lowers into look line

Chris McGratty

Thank Thanks. you Great. for all color. the

Operator

question And Instructions] Stephens. next [Operator Terrell you. thank is with And Andrew our

open. now is line Your

Andrew Terrell

morning. good Hey,

Clint Stein

Andrew. morning, Good

Andrew Terrell

borrowings? all they of start, the there overnight Were added? just Or any this funding? was on FHLB Maybe borrowings quarter, to to the Aaron, term were FHLBs the

Aaron Deer

It's all bit it's very short or not term. weeks, of fair but A years. overnight, months

Andrew Terrell

Yes.

growth either will on the just like pro portion portfolio greater to close, the the basis feel reflected gives in then, year? that balance throughout have so that's position loan to the bigger you the if just maybe the you of maybe Do roll And I maybe flexibility year, a forma or forma capital. sell philosophically sheet marked bond or reduce pro greater deal think borrowing after picture, a Okay. throughout the book, about you fund securities

Aaron Deer

obviously, once to what you -- rate forward. marked, balance going Yes. I But mean, supports gives and is flexibility. marks doesn't the those flows going levels. on I a sheet That to those the mean, that's come are going that obviously, decision upon mean arguably be what back capital and cash And the environment trends more it's that's decision. be dependent

just be to yet. that's going -- what and to presume -- just so So I'm not going

Clint Stein

one investors I similar a going you does thing of us I'll an add about a we it. it We're just to over there's think give Ron the lot start our there. opportunity downside Umpqua manage the listen to this, out risk, of this on were just or besides for call rate thinking playbook how Andrew, question. term. to before playback call and intermediate our folks fielded not But And because just to the present the following that listen the

of and And rest the conversations. executive have started and myself having go-forward those team Ron the

-- the are, anything And do have that of but flexibility for group so, that flexibility most part put be will more protection in sheet to than we that think, balance of rates exactly about we're following the details I to banks not component some the going on the and, what could of say have peer our strategy. and

Andrew Terrell

good. And were already. Very I Okay. the addressed color. and rest asked appreciate the mine of

So, thanks.

Clint Stein

Thanks, Andrew.

Operator

thank Instructions] And from [Operator Piper Matthew Sandler. you. And question next from Clark our comes

open. now is line Your

Matthew Clark

the for questions. Thanks morning. good Hey,

your beta updated through -- cycle. the deposit First the one thoughts on forma around your just pro

the guys Umpqua comes to the on what I managing couple showed deck, hikes you're to Is allegedly base rate a of be XX%, think from that as board Fed? and your it case. only with kind seemed in you more

Aaron Deer

points. wouldn't start Obviously, it's beta come we're mean No. year. you've last the I se. -- I beta here to the through seen in But a our basis the on deposit deposit is per of but our -- deposit interest-bearing only the quarter managing date cycle, to to say costs X up

about that it's overall, X%. of So, half

going to to continue So that's rise.

determined. Whether is be saw what or exceeds to cycle in the not we that last

I it's given aggressive just than a rising the more has think and longer been a that bit lasting. pace expectation rate higher there's decent that

last alluded through to deposit prior the what we is follow is, going we flows, saw Clint more kind ultimately than of But in the as what that going cycle. during we the there's balance on to with terms and see about be demand, depend just in sheet overall. loan So, question do what might to what of

Matthew Clark

Yes.

month rate spot or on of average the in deposits deposits at and year had you interest-bearing NIM the total of end the if then, And the December? Okay. the

Aaron Deer

margin... I've the know don't I if got

Matthew Clark

Maybe in core base?

Aaron Deer

deposits But deposits. XX were points the basis interest-bearing for

Matthew Clark

thoughts one the plate Umpqua. have with with additional on I'll around up quality know available, high M&A. monthly. Maybe comes lot in last kind around California? guys that's a M&A Okay. just you of general But Northern extent your your integration something you with the are what I the follow on to

Clint Stein

defined our culture. through from few merger the we're we've put priority companies. process to to that our getting is We've waste. that. thousand assimilating then our companies both combined haven't Well, XX we of highest a And done, two training a closing and We've associates And experienced at getting on the that. protracted go the February closed and both let very clearly work got I think

So, I what scheduled. of, think I'll process say, all that's that piece, systems the the

for I think time. integrating is of companies quite some been large social and has aspect well two underway

back be as in And approach what the of that's our or we'll years. primary where back half strategy we focus refine we -- 'XX, to emerge half terms of our -- the over so, plan five combined end strategic the into from the of next will two and

de midst a the franchises perspective. expansion will the our I short an we'll uncertainty at this is when teams I from be, with and done -- in frankly, the that $XX-plus list in quality if those look mean, would today there's, capabilities had, The markets, production the I around M&A say, you the have of novo growth that the of closing envision, M&A, growth at be the a hurdle have banks of billion that challenge, we would two that. would capabilities, part what meet have have that organic all

to work on more have that. we do But

a be to have to and work in combined terms of make our We and turn we'll organization. the what the the for good fit at-hand a focus us first size targets meaningful might get of then done difference

Matthew Clark

Okay. Thank you.

Operator

I'm questions. call to no And turn Stein like remarks. I you. would Clint thank And back further over showing now the to for closing

Clint Stein

Great. joining good Bye. our Thanks, day, Have a Justin. again Thank everyone. this you morning. for call

Operator

This Thank concludes participating. for call. conference you today's

now may disconnect. You

Columbia Banking System (COLB) 24 Jan 232022 Q4 Earnings call transcript