Columbia Banking System, Inc. · NASDAQ:COLB
Columbia Banking System — Investor Presentation (May 2025)
39 slides from Columbia Banking System's investor presentation, May 5, 2025
Slide 1: May 2025 Investor Presentation
May 2025 Investor Presentation
Slide 2: Disclaimer
Disclaimer FORWARD-LOOKING STATEMENTS This communication may contain certain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements about the benefits of the proposed business combination transaction between Columbia Banking System,
Slide 3: Disclaimer (continued)
Disclaimer (continued) IMPORTANT ADDITIONAL INFORMATION AND WHERE TO FIND IT In connection with the proposed Transaction, Columbia will file with the SEC a Registration Statement on Form S-4 that will include a Joint Proxy Statement of Columbia and Pacific Premier and a Prospectus of Columbia, as we
Slide 4: Columbia Banking System: A Franchise Like No Other
Columbia Banking System: A Franchise Like No Other 4 West-Focused Regional Powerhouse Business Bank of Choice ■ In-market, relationship-based commercial banking ■ Attractive footprint in high-growth markets ■ Full suite of deposit products and services with contemporary digital capabilities ■ Expert
Slide 5: Why Columbia?
Why Columbia? 5 ■ Our Business Bank of Choice strategy cultivates a 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 share
Slide 6: Operating in Large, Attractive Western Markets
Operating in Large, Attractive Western Markets 6 Foothold in the West(1) Northwest (population in millions) Seattle, WA Portland, OR California and Nevada Los Angeles, CA Sacramento, CA Other West Phoenix, AZ Denver, CO 4.1mm 2.5mm 12.8mm 2.4mm 5.2mm 3.0mm Top Regional Bank in the NW (WA, OR, ID)(1)
Slide 7: Acquisition of Pacific Premier Increases Scale and Opportunities
Acquisition of Pacific Premier Increases Scale and Opportunities 7 (1) Financial data present Columbia and Pacific Premier on a combined pro forma basis as of March 31, 2025 and do not reflect purchase accounting adjustments. (2) Deposits and market share data sourced from S&P Global Market Intellig
Slide 8: Acquisition Increases Density throughout Our Footprint
Deposits ($mm) Market Share MSA(1) Market COLB Pro Forma COLB Pro Forma Seattle $138,475 $7,154 $7,597 5.2 % 5.5 % Portland 61,865 5,328 5,499 8.6 % 8.9 % Boise 16,560 220 220 1.3 % 1.3 % Spokane 13,128 3,860 3,860 29.4 % 29.4 % Acquisition Increases Density throughout Our Footprint 8 Improves Compe
Slide 9: Acquisition Is Strategically Compelling and Financially Attractive
Acquisition Is Strategically Compelling and Financially Attractive 9 Transaction Overview(1) ▪ Accelerates Columbia’s Southern California expansion strategy by ~10 years ▪ Creates a strategically cohesive regional powerhouse with ~$70 billion in assets ▪ Enhances presence in core Northwest markets a
Slide 10: Leveraging Technology to Improve Collaboration and Performance
Leveraging Technology to Improve Collaboration and Performance 10 Enhancing the Customer Experience Driving Revenue Generation Creating Operational Efficiencies ■ AI-powered "Umpqua Smart Leads” support relationship banking and provide opportunities to generate fee income through predictive analytic
Slide 11: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 12: First Quarter 2025 Highlights
First Quarter 2025 Highlights 12 ■ Executed a successful small business and retail campaign using bundled solutions for customers without promotional pricing. The Q1 2025 campaign brought $425 million in new deposits to the bank. ■ Went live with Real Time Payments origination for customers in Q1 20
Slide 13: Diversified Commercial Bank Business Model Supports Granular Deposit Base
Our Diversified Commercial Bank Business Model with a Strong Retail Network Supports our Granular, High-Quality Deposit Base Non-interest, 32% Demand, 20% Money Market, 28% Savings, 6% Time, 14% Enterprise-wide Deposit Composition 13 ■ Deposits were $42 billion as of March 31, 2025 and represented b
Slide 14: Available-for-Sale Securities Portfolio as of March 31, 2025
Available-for-Sale Securities Portfolio as of March 31, 2025 ($ in millions) Current Par Amortized Cost Unrealized Gains Unrealized Losses Fair Value % of Total AFS Portfolio Effective Duration Book Yield U.S. Treasuries $260 $257 $0 ($2) $255 3 % 1.9 3.78 % U.S. Agencies 1,156 1,170 $4 ($56) 1,118
Slide 15: Loan Roll Forward Activity
Loan Roll Forward Activity $ in m ill io ns Three Months Ended March 31, 2025 $37,681 $903 ($327) ($472) ($194) $25 $37,616 Beginning Balance (12/31/2024) New Originations Net Advances/ (Payments) Prepayments Payoffs or Sales Other¹ Ending Balance (3/31/2025) 15 $ in m ill io ns Three Months Ended M
Slide 16: Diversified, High Quality Loan and Lease Portfolio
Diversified, High Quality Loan and Lease Portfolio Note: Portfolio statistics and delinquencies as of March 31, 2025. Annualized net charge-off rates for Q1 2025. Loan-to-value (“LTV”), FICO, and debt service coverage (“DSC”) ratios are based on weighted averages for portfolios where data are availa
Slide 17: C&I and CRE Portfolio Composition
C&I and CRE Portfolio Composition Agriculture, 8.7% Contractors, 8.0% Finance/Insurance, 7.7% Manufacturing, 6.8% Professional, 3.5% Public Admin, 6.0% Rental & Leasing, 6.2% Retail, 2.8%Support Services, 4.6% Transportation/ Warehousing, 7.6% Wholesale, 7.9% Gaming, 8.4% Dentists, 6.8% Other Health
Slide 18: Office Portfolio Details
Office Portfolio Details Puget Sound, 21% WA Other, 6% Portland Metro, 12% OR Other, 16% Bay Area, 6% N. CA, 11% S. CA, 19% Other, 9% Office Portfolio Metrics at March 31, 2025 Average loan size $1.36 million Average LTV 57% DSC (non-owner occupied) 1.81x % with guaranty (by $ / by #) 86% / 84% Past
Slide 19: Continued Strong Credit Quality
Continued Strong Credit Quality Provision Expense, Net Charge-Offs to Average Loans, and Nonperforming Assets to Total Assets $17.1 $31.8 $28.8 $28.2 $27.4 0.47% 0.32% 0.31% 0.27% 0.32% 0.28% 0.30% 0.32% 0.33% 0.35% Provision Expense ($mm) Net Charge-Offs / Average Loans (annualized) Non-Performing
Slide 20: ACL Reflects Strong Portfolio Credit Metrics
ACL Reflects Strong Portfolio Credit Metrics (1) Total includes reserve for unfunded commitments of $17.4 million and $16.2 million as of March 31, 2025 and December 31, 2024, respectively. 20 ■ Our reserve coverage by loan segment and for the overall loan and lease portfolio reflects our robust und
Slide 21: Capital Management
Capital Management 21 Regulatory Capital Ratios: Bank and Holding Company as of March 31, 2025 9.0% 11.5% 11.5% 12.6% 8.4% 10.6% 10.6% 12.8% Umpqua Bank Columbia Banking System Tier 1 Leverage CET1 Tier 1 Capital Total Risk-Based —% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% ■ Regulatory capital ratios d
Slide 22: Net Interest Income and Net Interest Margin
Net Interest Income and Net Interest Margin (1) Chart Abbreviations: “LHFI” = loans held for investment. Net Interest Income and Net Interest Margin $423 $427 $430 $437 $425 3.52% 3.56% 3.56% 3.64% 3.60% Net Interest Income ($ in millions) Net Interest Margin Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025
Slide 23: Select Asset and Liability Maturity and Repricing Schedules
Select Asset and Liability Maturity and Repricing Schedules (in Months) at March 31, 2025 ($ in millions) <=3 4 to 6 7 to 12 13 to 24 25 to 36 36+ Total % Total(3) Loans Fixed (maturity)(2) $360 $170 $258 $707 $1,219 $10,515 $13,229 35% Floating (repricing)(2) 13,529 — — — — — 13,529 36% Adjustable
Slide 24: Longer-Term Balance Sheet Optimization Opportunities
Longer-Term Balance Sheet Optimization Opportunities 24 ■ Our relationship-based lending verticals and a strong core deposit base remain the cornerstone of our franchise. Past transactional lending and the wholesale sources that fund these assets have muted the balance sheet’s profitability, but the
Slide 25: Non-Interest Income
Non-Interest Income Note: Tables may not foot due to rounding. (1) Other commercial product revenue includes swaps, syndication, and international banking revenue, which are captured in “other income” on the income statement. Other income statement line items, like card-based fees, include other sou
Slide 26: Non-Interest Expense
Non-Interest Expense 26 $ in m ill io ns Non-Interest Expense ("NIE") $287.5 $279.2 $271.4 $266.6 $340.1 $276.9 $262.5 $268.4 $263.5 $270.1 GAAP Non-Interest Expense Operating Non-Interest Expense¹ Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 ■ Non-interest expense in Q1 2025 increased $74 million from t
Slide 27: Appendix
APPENDIX
Slide 28: Liquidity Overview
Liquidity Overview Total Available Liquidity at March 31, 2025 ($ in millions) Total off-balance sheet liquidity (available lines of credit): $15,041 Cash and equivalents, less reserve requirement 1,852 Excess bond collateral 2,073 Total available liquidity $18,966 TOTAL AVAILABLE LIQUIDITY AS A PER
Slide 29: Summary Income Statements
Summary Income Statements Note: Tables may not foot due to rounding. (1) Non-GAAP financial measure. A reconciliation to the comparable GAAP measurement is provided at the end of this slide presentation. For the Quarter Ended ($ in millions, except per-share data) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1
Slide 30: Summary Period-End Balance Sheets
Summary Period-End Balance Sheets Note: Tables may not foot due to rounding. (1) Non-GAAP financial measure. A reconciliation to the comparable GAAP measurement is provided in the appendix of this slide presentation. ($ in millions, except per-share data) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 ASSE
Slide 31: PPBI Acquisition: Transaction Summary
PPBI Acquisition: Transaction Summary 31 Structure & Consideration ▪ Implied value per Pacific Premier share: $20.83(1) ▪ Implied aggregate transaction value: $2.0 billion ▪ Price / Tangible Book Value per Share: 0.99x ▪ Price / LTM GAAP EPS: 13.7x ▪ Price / 2026E Consensus EPS: 13.5x ▪ Price / 2026
Slide 32: PPBI Acquisition: Key Pro Forma Financial Assumptions
PPBI Acquisition: Key Pro Forma Financial Assumptions 32 Standalone Earnings ▪ Estimated $127 million of full run-rate cost savings, or 30% of Pacific Premier’s noninterest expense ▪ Cost savings realization expected to be 75% in 2026 and 100% thereafter ▪ Significant revenue enhancements expected,
Slide 33: PPBI Acquisition: Pro Forma Adjustments Summary
PPBI Acquisition: Pro Forma Adjustments Summary 33 (1) Positive numbers are benefits to equity; negative numbers are detriments to equity. Tangible Book Value per Share Reconciliation Dollar values in millions, except per share amounts Columbia Tangible Book Value per Share at Closing $19.14 Columbi
Slide 34: PPBI Acquisition: Pro Forma Adjustments Summary (continued)
PPBI Acquisition: Pro Forma Adjustments Summary (continued) 34 2026E Earnings per Share Reconciliation Dollar values in millions, except per share amounts 2026E Earnings per Share Reconciliation Columbia Net Income (Median Consensus Estimate) $600 Pacific Premier Net Income (Median Consensus Estimat
Slide 35: Non-GAAP Reconciliation: Tangible Capital
Non-GAAP Reconciliation: Tangible Capital ($ 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 $4,957,245 Less: Goodwill 1,029,234 1,029,234 1,029,234 1,029,234 1,029,234 Less: Other intang
Slide 36: Non-GAAP Reconciliation: Adjustments and Average Balances
Non-GAAP Reconciliation: Adjustments and Average Balances For the Quarter Ended ($ 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 (1,424)
Slide 37: Non-GAAP Reconciliation: Income Statements
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 in
Slide 38: Non-GAAP Reconciliation: Earnings Per-Share and Performance Metrics
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 per s
Slide 39: Non-GAAP Reconciliation: Operating Efficiency Ratio, as Adjusted
Non-GAAP Reconciliation: Operating Efficiency Ratio, as Adjusted 39 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) (
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