Columbia Banking System, Inc. · NASDAQ:COLB
Columbia Banking System — Q4 2024 Earnings Presentation
35 slides from Columbia Banking System's earnings presentation, Jan 23, 2025
Slide 1: 4th Quarter 2024 Earnings Presentation
4th Quarter 2024 Earnings Presentation January 23, 2025
Slide 2: Disclaimer
2 Disclaimer FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject
Slide 3: Columbia Banking System: A Franchise Like No Other
3 Columbia Banking System: A Franchise Like No Other Columbia at a Glance West-Focused Regional Powerhouse Business Bank of Choice Ticker COLB ■ In-market, relationship-based commercial banking Corporate Headquarters Tacoma, Washington ■ Attractive footprint in high-growth markets Offices ~300 in ei
Slide 4: Why Columbia?
4 Why Columbia? ■ Community banking at scale business model drives granular, low-cost core deposit base ■ Opportunity to gain share in California and growing metros in the West while increasing density in the Northwest ■ Solid capital generation supports long-term organic growth and return to shareh
Slide 5: Operating in Large, Attractive Western Markets
5 Operating in Large, Attractive Western Markets Foothold in the West(1) Top Regional Bank in the NW (WA, OR, ID)(1) Established Presence in Attractive Markets(1) (population in millions) Total Northwest Northwest Rank Bank (HQ State) Assets ($B) Deposits ($B) Mkt Shr ■ Our market share in the North
Slide 6: Opportunity to Increase Density and Gain Share throughout Our Footprint
6 Opportunity to Increase Density and Gain Share throughout Our Footprint Improve Density in the Northwest Expand Footprint in California Broaden Presence in Other Western Markets Population Deposits ($mm) COLB Population Deposits ($mm) COLB Population Deposits ($mm) COLB (1) (1) (1) MSA (000s) Mark
Slide 7: Leveraging Technology to Improve Collaboration and Performance
7 Leveraging Technology to Improve Collaboration and Performance Creating Operational Efficiencies Enhancing the Customer Experience Driving Revenue Generation ■ Embracing AI capabilities to improve ■ Differentiated small business and ■ AI-powered "Umpqua Smart Leads” associate productivity commerci
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 9: Full-Year 2024 Highlights
9 Full-Year 2024 Highlights Reported Operating(1) ■ Completed an enterprise-wide evaluation of our operations that resulted in consolidated positions, simplified reporting and $534 million $568 million organizational structures, and an improved profitability outlook. Net Income Net Income Achieved g
Slide 10: Fourth Quarter 2024 Highlights
10 Fourth Quarter 2024 Highlights Reported Operating(1) ■ Completed a fraud prevention campaign that spanned 1,800 relationships, protected 3,000 accounts and saved $1 million in fraud $143 million $150 million losses, and generated over $1 million in annualized new revenue to Net Income Net Income
Slide 11: Diversified Commercial Bank Business Model Supports Granular Deposit Base
11 Our Diversified Commercial Bank Business Model with a Strong Retail Network Supports our Granular, High-Quality Deposit Base Enterprise-wide Deposit Composition Deposits by Category Customer Deposit Composition(1) Commercial - Small Business, 19% Non-interest, 32% Demand, 20% Non-interest, 35% De
Slide 12: Securities Portfolio Overview
12 Securities Portfolio Overview Available-for-Sale Securities Portfolio as of December 31, 2024 Available-for-Sale Securities Portfolio Percentage at Gain / Loss as of December 31, 2024 % of Total Current Amortized Unrealized Unrealized AFS Effective ($ in millions) Par Cost Gains Losses Fair Value
Slide 13: Loan Roll Forward Activity
13 Loan Roll Forward Activity Three Months Ended December 31, 2024 Twelve Months Ended December 31, 2024 $3,685 $1,129 $37,503 $13 $37,681 $37,442 $— ($380) $86 $37,681 ($109) ($1,845) $ in millions $ in millions ($502) ($353) ($1,307) Beginning New Net Prepayments Payoffs or Other¹ Ending Beginning
Slide 14: Diversified, High Quality Loan and Lease Portfolio
14 Diversified, High Quality Loan and Lease Portfolio Mortgage Portfolio Composition at December 31, 2024 Owner Occupied CRE • Portfolio average loan size of $1.0 million • Portfolio average loan size of $481,000 Multifamily, 15% • 4Q24 average loan size of $2.3 million • 4Q24 average loan size of $
Slide 15: C&I and CRE Portfolio Composition
15 C&I and CRE Portfolio Composition C&I Portfolio Composition(1) CRE Portfolio Composition(1) $10.0 Billion at December 31, 2024 $17.4 Billion at December 31, 2024 Other, 10.6% Agriculture, 9.0% Special Purpose, 7.4% Hotel/Motel, 4.1% Other Healthcare, 4.7% Contractors, 7.7% Retail, 11.2% Other, 11
Slide 16: Office Portfolio Details
16 Office Portfolio Details Office Portfolio Metrics at December 31, 2024 Number of Loans by Balance ■ Loans secured by office properties Average loan size $1.35 million represented 8% of our total loan portfolio 1,746 1,719 1,600 as of December 31, 2024. Average LTV 57% DSC (non-owner occupied) 1.8
Slide 17: Continued Strong Credit Quality
17 Continued Strong Credit Quality Allowance for Credit Losses ("ACL") ■ The remaining credit discount on loans of 1.45% 1.36% 1.34% 1.35% 1.33% $60 million as of December 31, 2024 provides an additional 16 basis points of 1.24% 1.16% 1.16% 1.17% 1.17% loss absorption when added to the ACL of $80 $7
Slide 18: ACL Reflects Strong Portfolio Credit Metrics
18 ACL Reflects Strong Portfolio Credit Metrics Allowance for Credit Losses by Loan Segment Total ACL Remaining including Lease & Commercial Residential & Credit Discount Credit Discount ($ in thousands) Commercial Equipment Real Estate Home Equity Consumer Total(1) on Loans on Loans(1) Balance as o
Slide 19: Capital Management
19 Capital Management Regulatory Capital Ratios: Bank and Holding Company as of December 31, 2024 Capital Ratios Continue to Trend Up 14.0% 14.0% 12.6% 12.3% 12.6% 11.9% 12.0% 12.2% 12.5% 12.0% 11.3% 11.3% 12.0% 10.5% 10.5% 10.0% 10.3% 10.5% 9.6% 9.8% 10.0% 9.0% 10.0% 8.3% 8.0% 8.0% 6.0% 6.0% 4.0% 6
Slide 20: Net Interest Income and Net Interest Margin
20 Net Interest Income and Net Interest Margin Net Interest Income and Net Interest Margin Net Interest Margin: Q3 2024 vs Q4 2024 $454 0.08% 3.64% $423 $427 $430 $437 3.56% 0.16% 3.78% (0.13)% 3.64% (0.03)% 3.52% 3.56% 3.56% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q3 2024 LHFI-ex PAA¹ Cash Deposits
Slide 21: Interest Rate Sensitivity
21 Interest Rate Sensitivity Interest Rate Simulation Impact on Net Interest Income at December 31, 2024(1) Floors: Floating and Adjustable Rate Loans at December 31, 2024 Ramp Shock ($ in millions) No Floor(5) At Floor(5) Above Floor(5) Total Year 1 Year 2 Year 1 Year 2 Floating $8,830 $339 $4,263
Slide 22: Longer-Term Balance Sheet Optimization Opportunities
22 Longer-Term Balance Sheet Optimization Opportunities Opportunity to Strategically Reposition Balance Sheet Over Time Deposit and Funding Repricing Betas During Current Rate Cycle Effective Fed Cost of: Funds Rate Interest- Bearing Three Months Ended (Daily Avg.) Total Deposits Total Funding Depos
Slide 23: Non-Interest Income
23 Non-Interest Income For the Quarter Ended Q4 2024 Highlights (compared to Q3 2024) ($ in millions) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 ■ Our Business Bank of Choice strategy Service charges on deposits $18.4 $18.5 $18.5 $16.1 $17.3 incorporates a collaborative team Card-based fees 14.6 14.6 1
Slide 24: Non-Interest Expense
24 Non-Interest Expense Non-Interest Expense ("NIE") Non-Interest Expense: Q3 2024 vs Q4 2024 $337.2 $271.4 $1.4 $294.3 $0.1 $266.6 $287.5 $ in millions $276.9 $279.2 $ in millions $271.4 $268.4 $(5.0) $(1.2) $(0.1) $262.5 $266.6 $263.5 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q3 2024 Benefits Repair
Slide 25: Appendix
APPENDIX
Slide 26: Liquidity Overview
26 Liquidity Overview Select Balance Sheet Items Total Off-Balance Sheet Liquidity Available at December 31, 2024 Sequential Gross Net Three Months Ended Quarter Change ($ in millions) Availability Utilization Availability ($ in millions) Q4 2024 Q3 2024 Q4 2023 Q4 2024 FHLB lines $10,923 $3,120 $7,
Slide 27: Summary Income Statements
27 Summary Income Statements For the Quarter Ended Q4 2024 Highlights (compared to Q3 2024) ($ in millions, except per-share data) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Net interest income before provision $437.4 $430.2 $427.4 $423.4 $453.6 ■ Net interest income increased by $7 million, as lower f
Slide 28: Summary Period-End Balance Sheets
28 Summary Period-End Balance Sheets ($ in millions, except per-share data) Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q4 2024 Highlights (compared to Q3 2024) ASSETS: ■ Loan balances increased by $178 million Total assets $51,576.4 $51,908.6 $52,047.5 $52,224.0 $52,173.6 during Q4 2024, as commercial
Slide 29: Purchase Accounting Details
29 Purchase Accounting Details Adjustment at Closing Remaining Balances at Select Purchase Accounting Items(1) February 28, 2023 September 30, 2024 December 31, 2024 Notes ITEMS TO ACCRETE THROUGH INTEREST INCOME: Available for sale securities - rate discount $(1,011) million $(497) million $(475) m
Slide 30: Non-GAAP Reconciliation: Tangible Capital
30 Non-GAAP Reconciliation: Tangible Capital ($ in thousands, except per-share data) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 Total shareholders' equity a $5,118,224 $5,273,828 $4,976,672 $4,957,245 $4,995,034 Less: Goodwill 1,029,234 1,029,234 1,029,234 1,029,234 1,029,234 Less: Other in
Slide 31: Non-GAAP Reconciliation: Adjustments and Average Balances
31 Non-GAAP Reconciliation: Adjustments and Average Balances For the Quarter Ended For the Year Ended ($ in thousands) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023 Non-Interest Income Adjustments Gain (loss) on sale of debt securities, net $ 10 $ 3 $ (1) $ 12 $ 9 $ 24 $
Slide 32: Non-GAAP Reconciliation: Income Statements
32 Non-GAAP Reconciliation: Income Statements For the Quarter Ended For the Year Ended ($ in thousands) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023 Net interest income c $ 437,373 $ 430,218 $ 427,449 $ 423,362 $ 453,623 $ 1,718,402 $ 1,793,171 Non-interest income (GAAP)
Slide 33: Non-GAAP Reconciliation: Earnings Per-Share and Performance Metrics
33 Non-GAAP Reconciliation: Earnings Per-Share and Performance Metrics For the Quarter Ended For the Year Ended ($ in thousands, except per-share data) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023 Select Per-Share & Performance Metrics Earnings per share - basic j/r $ 0.
Slide 34: Non-GAAP Reconciliation: Operating Efficiency Ratio, as Adjusted
34 Non-GAAP Reconciliation: Operating Efficiency Ratio, as Adjusted For the Quarter Ended For the Year Ended ($ in thousands) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023 Non-interest expense (GAAP) h $266,576 $271,358 $279,244 $287,516 $337,176 $1,104,694 $1,312,700 Les
Slide 35: Non-GAAP Reconciliation: Net Interest Income & Net Interest Margin
35 Non-GAAP Reconciliation: Net Interest Income & Net Interest Margin For the Quarter Ended For the Year Ended ($ in thousands) 12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 12/31/2024 12/31/2023 Net interest income(2) a $438,424 $431,184 $428,434 $424,344 $454,730 $1,722,386 $1,797,298 Less:
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