TACOMA, Wash., May 25,
2017 /PRNewswire/ -- Columbia Banking System, Inc. ("the Company")
(NASDAQ: COLB) announced today that Columbia State Bank ("the
Bank"), a wholly-owned subsidiary of the Company, has entered into
an agreement with the Federal Deposit Insurance Corporation (the
"FDIC") dated as of May 23, 2017, by
which all existing loss share agreements with the FDIC have been
terminated. These loss share agreements were entered into by the
Bank in 2010 and 2011 in conjunction with the Bank acquiring
certain assets and assuming certain liabilities of four failed
banks in FDIC-assisted acquisitions. The Bank paid the FDIC
$4.7 million to terminate the
agreements. The Bank will record a pre-tax charge of approximately
$2.4 million in the second quarter to
write-off the remaining loss sharing asset, relieve the clawback
liability and recognize payment to the FDIC.
The termination of the FDIC loss share agreements has no effect
on the yields of the loans that were previously covered under these
agreements. Further, the Bank will be solely responsible for all
future charge-offs, recoveries, gains, losses and expenses related
to the previously covered assets because the FDIC will no longer
share in those amounts.
About Columbia
Headquartered in Tacoma,
Washington, Columbia Banking System, Inc. is the holding
company of Columbia State Bank, a Washington state-chartered full-service
commercial bank with locations throughout Washington, Oregon and Idaho. For the tenth
consecutive year, the bank was named in 2016 as one
of Puget Sound Business Journal's "Washington's Best Workplaces."
Columbia ranked in the top 30 on
the 2017 Forbes list of best banks.
More information about Columbia
can be found on its website at www.columbiabank.com.
Note Regarding Forward-Looking Statements
This news
release includes forward looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These forward
looking statements include, but are not limited to, descriptions of
Columbia's management's
expectations regarding future events and developments such as
future operating results, growth in loans and deposits, continued
success of Columbia's style of
banking and the strength of the local economy. The words "will,"
"believe," "expect," "intend," "should," and "anticipate" or the
negative of these words or words of similar construction are
intended in part to help identify forward looking statements.
Future events are difficult to predict, and the expectations
described above are necessarily subject to risks and uncertainties,
many of which are outside our control, that may cause actual
results to differ materially and adversely. In addition to
discussions about risks and uncertainties set forth from time to
time in Columbia's filings with
the Securities and Exchange Commission, available at the SEC's
website at www.sec.gov and the Company's website at
www.columbiabank.com, including the "Risk Factors," "Business" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" sections of our annual reports on Form 10-K
and quarterly reports on Form 10-Q, (as applicable), factors that
may cause actual results to differ materially from those
contemplated by such forward-looking statements include, among
others, the following: (1) local, national and international
economic conditions may be less favorable than expected or have a
more direct and pronounced effect on Columbia than expected and adversely affect
Columbia's ability to continue its
internal growth at historical rates and maintain the quality of its
earning assets; (2) changes in interest rates could significantly
reduce net interest income and negatively affect funding sources;
(3) projected business increases following strategic expansion or
opening or acquiring new branches may be lower than expected; (4)
costs or difficulties related to the integration of acquisitions
may be greater than expected; (5) competitive pressure among
financial institutions may increase significantly; and (6)
legislation or regulatory requirements or changes may adversely
affect the businesses in which Columbia is engaged. We believe the
expectations reflected in our forward-looking statements are
reasonable, based on information available to us on the date
hereof. However, given the described uncertainties and risks, we
cannot guarantee our future performance or results of operations
and you should not place undue reliance on these forward-looking
statements which speak only as of the date hereof. We undertake no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by the federal securities laws. The factors
noted above and the risks and uncertainties described in our SEC
filings should be considered when reading any forward-looking
statements in this release.
Contacts:
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Hadley S.
Robbins,
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Interim Chief
Executive Officer
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Clint E.
Stein,
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Executive Vice
President and
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Chief Financial
Officer
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Investor
Relations
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(253)
305-1921
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SOURCE Columbia Banking System, Inc.