Columbia Banking reports Q1 operating EPS 46c, consensus 60c

Reports Q1 net interest income of $375M increased by $69M or 23% on a quarter-to-quarter basis due to one month as a combined organization and the net favorable impact of higher interest rates. Q1 net interest margin was 4.08%, up 7 basis points from the prior quarter. Net interest margin for the month of March was 4.31%, which includes a 76-basis point net benefit from purchase accounting accretion and amortization. Q1 allowance for credit losses was $436M, or 1.18% of loans and leases, vs. $315M, or 1.21% of loans and leases, as of December 31, 2022. Tangible book value per share was $15.12 vs. $19.14 at previous quarter end. "Today marks a historic moment for our franchise as we report results for Columbia Banking System and its subsidiary Umpqua Bank together as one company," said Clint Stein, CEO. "Our Q1 results highlight a flexible balance sheet characterized by solid liquidity, a diversified loan portfolio, and a granular core deposit base. While purchase accounting adjustments such as the initial provision for credit losses and merger-related expenses impacted our reported results, I am pleased to announce we successfully completed our core systems conversion in March, keeping us on target to realize our cost-savings expectations by the end of the third quarter. It was a transformative quarter for our company, and I want to thank our associates for their tireless efforts helping customers and each other through the merger close and systems conversion."