Columbia Banking System, Inc. · NASDAQ:COLB
Columbia Banking System — Q1 2025 Earnings Presentation
34 slides from Columbia Banking System's earnings presentation, Apr 23, 2025
Slide 1: 1st Quarter 2025 Earnings Presentation
1st Quarter 2025 Earnings Presentation April 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: First Quarter 2025 Highlights
9 First Quarter 2025 Highlights Reported Operating(1) ■ Executed a successful small business and retail campaign using bundled solutions for customers without promotional pricing. The $87 million $140 million Q1 2025 campaign brought $425 million in new deposits to the bank. Net Income Net Income ■
Slide 10: Diversified Commercial Bank Business Model Supports Granular Deposit Base
10 Our Diversified Commercial Bank Business Model with a Strong Retail Network Supports our Granular, High-Quality Deposit Base Enterprise-wide Deposit Composition Deposits by Category Customer Deposit Composition(1) Commercial - Small Business, 19% Non-interest, 32% Demand, 20% Non-interest, 35% De
Slide 11: Securities Portfolio Overview
11 Securities Portfolio Overview Available-for-Sale Securities Portfolio as of March 31, 2025 Available-for-Sale Securities Portfolio Percentage at Gain / Loss as of March 31, 2025 % of Total Current Amortized Unrealized Unrealized AFS Effective ($ in millions) Par Cost Gains Losses Fair Value Portf
Slide 12: Loan Roll Forward Activity
12 Loan Roll Forward Activity Three Months Ended March 31, 2025 $903 $37,681 ($327) $25 $37,616 $ in millions ($472) ($194) Beginning Balance New Originations Net Advances/ (Payments) Prepayments Payoffs or Sales Other¹ Ending Balance (3/31/2025) (12/31/2024) Three Months Ended March 31, 2024 $772 $
Slide 13: Diversified, High Quality Loan and Lease Portfolio
13 Diversified, High Quality Loan and Lease Portfolio Mortgage Portfolio Composition at March 31, 2025 Owner Occupied CRE • Portfolio average loan size of $1.1 million • Portfolio average loan size of $477,000 Multifamily, 15% • 1Q25 average loan size of $2.1 million • 1Q25 average loan size of $260
Slide 14: C&I and CRE Portfolio Composition
14 C&I and CRE Portfolio Composition C&I Portfolio Composition(1) CRE Portfolio Composition(1) $9.9 Billion as of March 31, 2025 $17.3 Billion as of March 31, 2025 Other, 10.2% Agriculture, 8.7% Special Purpose, 7.2% Hotel/Motel, 4.1% Other Healthcare, 4.8% Contractors, 8.0% Retail, 11.2% Other, 11.
Slide 15: Office Portfolio Details
15 Office Portfolio Details Office Portfolio Metrics at March 31, 2025 Number of Loans by Balance ■ Loans secured by office properties Average loan size $1.36 million represented 8% of our total loan portfolio 1,746 1,719 1,579 as of March 31, 2025. Average LTV 57% DSC (non-owner occupied) 1.81x ■ O
Slide 16: Continued Strong Credit Quality
16 Continued Strong Credit Quality Allowance for Credit Losses ("ACL") ■ The remaining credit discount on loans of 1.36% 1.35% 1.33% 1.34% 1.32% $57 million as of March 31, 2025 provides an additional 15 basis points of loss 1.16% 1.16% 1.17% 1.17% 1.17% absorption when added to the ACL of $74 $69 $
Slide 17: ACL Reflects Strong Portfolio Credit Metrics
17 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 18: Capital Management
18 Capital Management Regulatory Capital Ratios: Bank and Holding Company as of March 31, 2025 Capital Ratios Continue to Trend Up 14.0% 12.5% 12.8% 14.0% 12.5% 12.8% 12.8% 12.0% 12.2% 12.0% 11.4% 11.4% 12.0% 10.6% 10.6% 10.0% 10.3% 10.5% 10.6% 9.8% 10.0% 9.0% 8.4% 10.0% 8.0% 8.0% 6.0% 6.0% 4.0% 6.5
Slide 19: Net Interest Income and Net Interest Margin
19 Net Interest Income and Net Interest Margin Net Interest Income and Net Interest Margin Net Interest Margin: Q4 2024 vs Q1 2025 3.64% $423 $427 $430 $437 $425 0.03% 3.60% 0.07% (0.08)% (0.01)% (0.04)% (0.01)% 3.64% 3.60% 3.52% 3.56% 3.56% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q4 2024 LHFI-ex LH
Slide 20: Interest Rate Sensitivity
20 Interest Rate Sensitivity Interest Rate Simulation Impact on Net Interest Income at March 31, 2025(1) Floors: Floating and Adjustable Rate Loans at March 31, 2025 Ramp Shock ($ in millions) No Floor(5) At Floor(5) Above Floor(5) Total Year 1 Year 2 Year 1 Year 2 Floating $8,894 $316 $4,319 $13,52
Slide 21: Longer-Term Balance Sheet Optimization Opportunities
21 Longer-Term Balance Sheet Optimization Opportunities Opportunity to Strategically Reposition Balance Sheet Over Time Deposit and Funding Repricing Betas During Current Rate Cycle Effective Fed Cost of: Funds Rate Interest- Bearing Three Months Ended (Daily Avg.) Total Deposits Total Funding Depos
Slide 22: Non-Interest Income
22 Non-Interest Income For the Quarter Ended Q1 2025 Highlights (compared to Q4 2024) ($ in millions) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 ■ Our Business Bank of Choice strategy Service charges on deposits $19.3 $18.4 $18.5 $18.5 $16.1 incorporates a collaborative team Card-based fees 12.6 14.6 1
Slide 23: Non-Interest Expense
23 Non-Interest Expense Non-Interest Expense ("NIE") Non-Interest Expense: Q4 2024 vs Q1 2025 $66.9 $340.1 $340.1 $266.6 $4.3 $1.5 $1.8 $(1.0) $287.5 $ in millions $276.9 $279.2 $ in millions $271.4 $268.4 $266.6 $263.5 $270.1 $262.5 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q4 2024 Payroll Software L
Slide 24: Appendix
APPENDIX
Slide 25: Liquidity Overview
25 Liquidity Overview Select Balance Sheet Items Total Off-Balance Sheet Liquidity Available at March 31, 2025 Sequential Gross Net Three Months Ended Quarter Change ($ in millions) Availability Utilization Availability ($ in millions) Q1 2025 Q4 2024 Q1 2024 Q1 2025 FHLB lines $11,101 $2,596 $8,504
Slide 26: Summary Income Statements
26 Summary Income Statements For the Quarter Ended Q1 2025 Highlights (compared to Q4 2024) ($ in millions, except per-share data) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Net interest income before provision $425.0 $437.4 $430.2 $427.4 $423.4 ■ Net interest income decreased by $12 million, largely d
Slide 27: Summary Period-End Balance Sheets
27 Summary Period-End Balance Sheets ($ in millions, except per-share data) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q1 2025 Highlights (compared to Q4 2024) ASSETS: ■ Loan balances decreased slightly in Q1 Total assets $51,519.3 $51,576.4 $51,908.6 $52,047.5 $52,224.0 2025, due to higher prepayment
Slide 28: Purchase Accounting Details
28 Purchase Accounting Details Adjustment at Closing Remaining Balances at Select Purchase Accounting Items(1) February 28, 2023 December 31, 2024 March 31, 2025 Notes ITEMS TO ACCRETE THROUGH INTEREST INCOME: Available for sale securities - rate discount $(1,011) million $(475) million $(460) milli
Slide 29: Non-GAAP Reconciliation: Tangible Capital
29 Non-GAAP Reconciliation: Tangible Capital ($ in thousands, except per-share data) 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Total shareholders' equity a $5,237,809 $5,118,224 $5,273,828 $4,976,672 $4,957,245 Less: Goodwill 1,029,234 1,029,234 1,029,234 1,029,234 1,029,234 Less: Other int
Slide 30: Non-GAAP Reconciliation: Adjustments and Average Balances
30 Non-GAAP Reconciliation: Adjustments and Average Balances For the Quarter Ended ($ in thousands) 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Non-Interest Income Adjustments Gain (loss) on sale of debt securities, net $ 4 $ 10 $ 3 $ (1) $ 12 Gain (loss) on equity securities, net 1,702 (1,42
Slide 31: Non-GAAP Reconciliation: Income Statements
31 Non-GAAP Reconciliation: Income Statements For the Quarter Ended ($ in thousands) 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Net interest income c $ 424,995 $ 437,373 $ 430,218 $ 427,449 $ 423,362 Non-interest income (GAAP) d $ 66,377 $ 49,747 $ 66,159 $ 44,703 $ 50,357 Less: Non-interest
Slide 32: Non-GAAP Reconciliation: Earnings Per-Share and Performance Metrics
32 Non-GAAP Reconciliation: Earnings Per-Share and Performance Metrics For the Quarter Ended ($ in thousands, except per-share data) 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Select Per-Share & Performance Metrics Earnings per share - basic j/r $ 0.41 $ 0.69 $ 0.70 $ 0.58 $ 0.60 Earnings pe
Slide 33: Non-GAAP Reconciliation: Operating Efficiency Ratio, as Adjusted
33 Non-GAAP Reconciliation: Operating Efficiency Ratio, as Adjusted For the Quarter Ended ($ in thousands) 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Non-interest expense (GAAP) h $340,122 $266,576 $271,358 $279,244 $287,516 Less: Non-interest expense adjustments b (70,040) (3,102) (2,995) (
Slide 34: Non-GAAP Reconciliation: Net Interest Income & Net Interest Margin
34 Non-GAAP Reconciliation: Net Interest Income & Net Interest Margin For the Quarter Ended ($ in thousands) 3/31/2025 12/31/2024 9/30/2024 6/30/2024 3/31/2024 Net interest income(2) a $426,098 $438,424 $431,184 $428,434 $424,344 Less: Acquired loan accretion - credit related(1) b 3,561 4,313 4,127
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