Columbia Banking System in Tacoma, Wash., sold some loans and plans to sell some mortgage-servicing rights.
The $53.6 billion-asset company said in a press release that it sold $373 million of non-relationship loans and reclassified another $118 million as held for sale. As a result, overall loans fell slightly in the second quarter from a quarter earlier.
The company also agreed to sell about a third of its MSR portfolio. It expects the MSR sale to close in the third or fourth quarter. The sale is expected to be accretive to capital due to the impact to risk-weighted assets.
Columbia had $172.9 million of MSRs on June 30.
The company earnings rose by 70% from a year earlier, though the results included the February purchase of Umpqua Bank.