Columbia expects loan growth in the low- or mid-single digits this year

Columbia Banking System expects loan growth in the low- or mid-single digits this year, executives said Tuesday.

A higher net interest margin coupled with strong production in the bank's commercial real estate, consumer and industrial loan portfolios are expected to beef up outstanding loans at the Tacoma, Wash.-based bank.

"Our bankers are seeing lots of opportunities, and it's just a matter of which ones make the most sense to put on the balance sheet," said Aaron Deer, Columbia's chief financial officer, on a call with analysts.

In the fourth quarter, total loans declined 0.7% from the previous quarter, in part because of higher customer paydowns. Loans were up 9% from a year earlier.

The loan-growth projections are for Columbia only, before its merger with Umpqua, which is set for next month.

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Columbia expects to realize $135 million in cost savings from its merger with Umpqua Holdings in several stages. Some of those savings are anticipated shortly after the deal closes. Others could take between 30 and 60 days to materialize, executives said. The full amount of savings will be realized by the end of the third quarter.