Slide 1: 2nd Quarter 2023 Earnings Presentation
nd 2 Quarter 2023 Earnings Presentation July 19, 2023
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: Strategic Updates and Forward Outlook
STRATEGIC UPDATES AND FORWARD OUTLOOK
Slide 4: Merger Update: Cost Synergies Remain on Track for Completion by September 30, 2023
4 Merger Update: Cost Synergies Remain on Track for Completion by September 30, 2023 Annualized Cost Synergies Realized by Period End Expected Composition of Cost Synergies $135+ million(1) at September 30, 2023 $150 Branch $105 million(1) Consolidations, 20% $100 FTE, 42% $59 million(1) Other Real
Slide 5: Merger Update: Purchase Accounting Accretion and Amortization Provides a Meaningful Net Benefit
5 Merger Update: Purchase Accounting Accretion and Amortization Provides a Meaningful Net Benefit to Income and Capital Adjustment at Closing Remaining Balances at Select Purchase Accounting Items (1) February 28, 2023 March 31, 2023 June 30, 2023 (2) Notes ITEMS TO ACCRETE THROUGH INTEREST INCOME:
Slide 6: Liquidity Overview
6 Liquidity Overview Select Balance Sheet Items: Combined Basis Pre-Closing and Consolidated Basis Post-Closing (1) Total Off-Balance Sheet Liquidity Available at June 30, 2023 Sequential Gross Net Three Months Ended Quarter Change ($ in millions) Availability Utilization Availability ($ in millions
Slide 7: Securities Portfolio Overview
7 Securities Portfolio Overview Available for Sale Securities Portfolio at June 30, 2023 Available for Sale Securities Portfolio % of Total Percentage Gain / Loss at June 30, 2023 Amortized Unrealized Unrealized AFS Effective ($ in millions) Current Par Cost Gains Losses Fair Value Portfolio Duratio
Slide 8: Outlook
8 Outlook Results (1) Full-Year 2023 Outlook (1) Three Months Ended Six Months Ended June 30, 2023 June 30, 2023 As of April 26, 2023 As of July 19, 2023 Notes Assumes cash balance at 3/31 remains consistent through Average earning assets $49b $43b $45b - $46b $45b - $46b remainder of 2023 Forward o
Slide 9: Financial Highlights and Summary Financial Statements
FINANCIAL HIGHLIGHTS AND SUMMARY FINANCIAL STATEMENTS Q2 2023
Slide 10: Performance Ratios
10 Performance Ratios For the Quarter Ended Q2 2023 Highlights (compared to Q1 2023) Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 ■ Operating results include the initial (1) Net interest margin 3.93 % 4.08 % 4.01 % 3.88 % 3.41 % provision in Q1 2023 related to non-PCD Efficiency ratio (1) 62.60 % 79.71 %
Slide 11: Selected Period-End Balance Sheet
11 Selected Period-End Balance Sheet ($ in millions, except per-share data) Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q2 2023 Highlights (compared to Q1 2023) ASSETS: ■ Q1 2023 results were impacted by the Total assets $53,592.1 $53,994.2 $31,848.6 $31,472.0 $30,135.7 closing of the merger on February
Slide 12: Summary Income Statement
12 Summary Income Statement For the Quarter Ended Q2 2023 Highlights (compared to Q1 2023) ($ in millions, except per-share data) Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Net interest income before provision $484.0 $374.7 $305.5 $287.6 $248.2 ■ Q1 2023 results include only one month of the combined c
Slide 13: Income Statement Component Details
13 Income Statement Component Details For the Quarter Ended June 30, 2023 Q2 2023 Highlights LESS: EQUALS LESS: EQUALS Adjusted ■ GAAP results were adversely impacted by Non-Operating Operating Merger-Related Operating ($ in thousands, except per-share data) GAAP Income Items (1) Income (2) Items (3
Slide 14: Income Statement Highlights
INCOME STATEMENT HIGHLIGHTS Q2 2023
Slide 15: Net Interest Income
15 Net Interest Income Net Interest Income Net Interest Income $500.0 $484.0 excluding Purchase Accounting Adjustments ("PAA") ³ $450.0 $450.0 $409.6 $400.0 $400.0 $374.7 ($ in millions) ($ in millions) $350.0 $343.0 $350.0 $305.5 $305.2 $287.6 $300.0 $286.9 $300.0 $248.2 $247.2 $250.0 $250.0 $200.0
Slide 16: Net Interest Margin
16 Net Interest Margin Net Interest Margin Comparison Net Interest Margin: Q1 2023 vs Q2 2023 5.00% 0.05% 0.06% 0.30% 4.01% 4.01% 4.08% 3.93% 3.88% 3.87% 3.73% 4.00% 3.41% 3.40% 0.38% 3.32% (0.38)% 3.00% 4.08% 3.93% 2.00% (0.54)% (0.02)% 1.00% —% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q1 2023 LHFI-
Slide 17: Interest Rate Sensitivity: Loans
17 Interest Rate Sensitivity: Loans Loan Repricing Detail (1), (2) Loan Maturities at June 30, 2023 ($ in millions) Q1 2023 Q2 2023 Q1 2023 Q2 2023 <=6 7 to 12 13 to 24 25 to 36 37 to 60 61+ Fixed $ 16,205 $ 15,806 43 % 42 % ($ in millions) Months Months Months Months Months Months Total Fixed $ 1,8
Slide 18: Interest Rate Sensitivity: Balance Sheet
18 Interest Rate Sensitivity: Balance Sheet Interest Rate Simulation Impact on Net Interest Income (1), (2) June 30, 2023 March 31, 2023 December 31, 2022 Ramp Shock Ramp Shock Ramp Shock Year 1 Year 2 Year 1 Year 2 Year 1 Year 2 Year 1 Year 2 Year 1 Year 2 Year 1 Year 2 Up 200 basis points (0.8)% (
Slide 19: Non-Interest Income
19 Non-Interest Income For the quarter ended Q2 2023 Highlights (compared to Q1 2023) ($ in millions) Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 ■ Q1 2023 results include only one month of Service charges on deposits $16.5 $14.3 $12.1 $12.6 $12.0 the combined company’s operations. Card-based fees 13.4
Slide 20: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS Q2 2023
Slide 21: Q2 2023 Loan Roll Forward
21 Q2 2023 Loan Roll Forward $ in millions $40,000 $1,208 $38,000 ($13) ($477) $37,091 ($748) ($11) $37,049 $36,000 $34,000 $32,000 $30,000 Beginning Balance New Originations Net Advances/ Prepayments Payoffs or Sales Other Ending Balance (3/31/2023) Payments (6/30/2023) Footnotes: Payoffs or Sales
Slide 22: Loan and Lease Characteristics: Overall Portfolio and Q2 2023 Production
22 Loan and Lease Characteristics: Overall Portfolio and Q2 2023 Production Mortgage Portfolio Composition at June 30, 2023 Owner Occupied CRE • Portfolio average loan size of $982,000 • Portfolio average loan size of $477,000 Multifamily, 15% • 2Q23 average loan size of $2.1 million • 2Q23 average
Slide 23: CRE and C&I Portfolio Composition
23 CRE and C&I Portfolio Composition CRE Portfolio Composition (1) C&I Portfolio Composition (1) $17.3 Billion at June 30, 2023 $9.5 Billion at June 30, 2023 Special Purpose, 7.4% Hotel/Motel, 4.1% Other, 11.3% Agriculture, 8.3% Other Healthcare, 3.0% Contractors, 7.5% Retail, 11.8% Other, 11.6% Den
Slide 24: Office Portfolio Details
24 Office Portfolio Details Office Portfolio Metrics at June 30, 2023 Number of Loans by Balance ■ Loans secured by office properties Average loan size $1.3 million represented 8% of our total loan 1,746 1,719 portfolio at June 30, 2023. Average LTV 57% DSC (non-owner occupied) 1.73x ■ Our office po
Slide 25: Allowance for Credit Losses ("ACL")
25 Allowance for Credit Losses (“ACL”) Allowance for Credit Losses by Loan Segment Current Expected Credit Losses (“CECL”) Details Q2 2023 Net % of Loans and ■ Provision expense of $16 million includes $15 (Charge-offs) Reserve Build Leases ($ in thousands) 3/31/2023 Recoveries (Release) 6/30/2023 O
Slide 26: Credit Quality
26 Credit Quality ■ If the remaining credit discount on loans of $94 million at June 30, 2023 is added to the ACL of $424 million at June 30, 2023, the ACL would increase to 1.40% of loans from the reported 1.15% level. ■ The increase in classified asset ratios between December 31, 2022 and March 31
Slide 27: Diversified Commercial Bank Model Supports Granular, High-Quality Deposit Base
27 Our Diversified Commercial Bank Business Model with a Strong Retail Presence Supports our Granular, High-Quality Deposit Base Deposits by Type Deposits by Business Line June 30, 2023 Average consumer account balance $19 thousand Average commercial account balance $107 thousand Average customer ac
Slide 28: Capital Management
28 Capital Management 12.0% 11.1% Common Equity Tier 1 ("CET1") Ratio 0.6% 0.3% 0.1% —% 10.0% 9.1% 9.1% 10.0% 8.9% 9.1% 0.6% (0.2)% 8.0% 7.2% 2.1% 7.5% 1.2% 6.0% 10.5% 5.0% 4.0% 8.5% 7.0% 6.0% 2.5% 2.0% —% —% Tier 1 Leverage CET1 Tier 1 Risk-Based Total Risk-Based 03/31/23 Adjusted net Dividend on R
Slide 29: Appendix
APPENDIX Prior-Quarter Income Statement Component Details and Other Non-GAAP Reconciliation
Slide 30: Income Statement Component Details
30 Income Statement Component Details For the Quarter Ended March 31, 2023 Notable Merger Items LESS: EQUALS LESS: EQUALS Adjusted ■ Results include one month of the Non-Operating Operating Merger-Related Operating ($ in thousands, except per-share data) GAAP Income Items (1) Income (2) Items (3) co
Slide 31: Non-GAAP Reconciliation: Tangible Capital
31 Non-GAAP Reconciliation: Tangible Capital ($ in thousands, except per-share data) Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Total shareholders' equity a $4,828,188 $4,884,723 $2,479,826 $2,417,514 $2,518,276 Less: Goodwill 1,029,234 1,030,142 — — — Less: Other intangible as
Slide 32: Non-GAAP Reconciliation
32 Non-GAAP Reconciliation For the Quarter Ended For the Quarter Ended ($ in thousands) Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 ($ in thousands) Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 (1) Net interest income c $ 485,168 $ 375,369 $ 305,762 $ 287,933 $ 248,522 Non-Interest Income Adjustments Gain (l
Slide 33: Non-GAAP Reconciliation (cont.)
33 Non-GAAP Reconciliation (cont.) For the Quarter Ended For the Quarter Ended ($ in thousands, except per-share data) Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 ($ in thousands) Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Select Per-Share & Performance Metrics Earnings-per-share - basic (1) j/r $ 0.64 $ (
Slide 34: www.columbiabankingsystem.com
www.columbiabankingsystem.com