Columbia Banking System, Inc. · NASDAQ:COLB
Columbia Banking System — D.A. Davidson & Co. Annual Financial Services Conference 2014
26 slides from Columbia Banking System's conference presentation, May 15, 2014
Slide 1: D.A. Davidson & Co. Annual Financial Services Conference
1 D.A. Davidson & Co. Annual Financial Services Conference Denver, Colorado May 13-14, 2014
Slide 2: Cautionary Note: Forward Looking Statements
Cautionary Note: Forward Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements relate to future events and expectations and involve known and unknown risks and uncertainties. Actual results
Slide 3: Table of Contents
Table of Contents Columbia Footprint ............................................................................................................... 4 Integration of West Coast Bank ............................................................................................ 5 Deposit Market Share ..
Slide 4: Columbia Footprint
Strong retail system of over 140 branch locations in the Pacific Northwest built through de novo branching and strategic acquisitions Strong retail system of 140 branch locations in the Pacific Northwest built through de novo branching and strategic acquisitions Columbia Footprint 4
Slide 5: Integration of West Coast Bank
Integration of West Coast Bank • Transaction closed April 1, 2013; we realized our anticipated quarterly earnings accretion from this transaction during each quarter of 2013. • Projected annual cost savings of $20.9 million have been implemented as of March 31, 2014. • Acquisition related expenses f
Slide 6: Share of Deposit Market
Share of Deposit Market 2013 Rank Institution (ST) 2013 Deposits ($000s) 2013 Market Share* 1 Bank of America (NC) 25,259,298 21.45% 2 Wells Fargo (CA) 13,550,440 11.51% 3 U.S. Bank (MN) 12,841,179 10.90% 4 JP Morgan Chase (NY) 11,122,022 9.44% 5 Key Bank (OH) 8,556,094 7.26% 6 Washington Federal (W
Slide 7: Columbia Overview – An Historical Look Back
Columbia Overview – An Historical Look Back Slide Deck Davidson London Opened in Tacoma, Washington in August, 1993 Organic growth first five years (1992-1996) Average annual growth rate for total assets: 38.9% Expanding from 4 to 16 branches Cascade Bancorp acquisition (December 1997); $97 million
Slide 8: Columbia Overview – An Historical Look Back (continued)
Slide Deck Davidson London Columbia Overview – An Historical Look Back Repaid all $76.9 million in Capital Purchase Program funds (August 2010) Repurchased common stock warrant issued to U.S. Treasury (Sept. 2010) FDIC-assisted acquisitions: Columbia River Bank (January, 2010) $913 million in assets
Slide 9: Positive Business Climate and Economic Outlook
• Improving economic trends in the Pacific Northwest, led by Seattle, WA and Portland, OR metro areas . • Unemployment rates improving in Washington & Oregon, with net gain in jobs April 2014: 6.3% Washington 6.9% Oregon • Pacific Northwest businesses feeling more optimistic • Portland, Tacoma and S
Slide 10: Operating Highlights
Operating Highlights $ in Thousands 1Q14 4Q13 3Q13 2Q13 1Q13 Operating Net Interest Income $63,257 $65,720 $65,488 $66,480 $44,037 Provision/(Recap) for Loan Losses (500) (2,100) 4,260 2,000 (1,000) Operating NII after Provision 63,757 67,820 61,228 64,480 45,037 Operating Noninterest Income 18,572
Slide 11: Balance Sheet Highlights
Balance Sheet Highlights 11 $ in Millions 1Q14 4Q13 3Q13 2Q13 1Q13 Total Assets $7,237 $7,162 $7,150 $7,070 $4,905 Noncovered Loans, net $4,297 $4,219 $4,194 $4,181 $2,621 Covered Assets, net $275 $290 $315 $352 $377 Core Deposits $5,768 $5,696 $5,663 $5,468 $3,797 Total Deposits $6,044 $5,959 $5,94
Slide 12: Growth of Total Assets 1993 - 2014
Growth of Total Assets 1993 - 2014 9 236 865 2,177 3,179 4,256 4,786 7,162 7,237 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 Acquisitions $ Millions Bank of Whitman;* First Heritage;* Summit* West Coast Bank Columbia River;* American Marine* Town Center; Mount Rainier Bank of Astoria
Slide 13: Stable Operating Net Interest Margin
Stable Operating Net Interest Margin 13 4.36% 4.32% 4.21% 4.34% 4.41% 4.31% 4.19% 1.74% 1.41% 0.84% 0.85% 0.85% 0.96% 0.72% 0.66% 6.27% 5.77% 5.16% 5.06% 5.19% 5.37% 5.03% 4.85% 0% 1% 2% 3% 4% 5% 6% 7% 2011 2012 2013 1Q13 2Q13 3Q13 4Q13 1Q14 Operating Margin Margin from Nonrecurring items, primarily
Slide 14: New Loan Originations
New Loan Originations 19% 6% 46% 25% 17% 14 $125 $157 $130 $201 $181 $190 $192 $248 $210 $0 $50 $100 $150 $200 $250 $300 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 $ in Millions Solid new loan production continues in 2014 with $210 million generated during the quarter.
Slide 15: Balanced Non-covered Loan Portfolio
Balanced Non-covered Loan Portfolio 19% 6% 46% 25% 17% Commercial Business 37% 1-4 Family Residential 2% Owner Occupied Com'l Real Estate 20% Income Property Com'l Real Estate 29% Residential RE Construction 1% Com'l RE Construction 3% Consumer 8% Total Loan Portfolio = $4.3 Billion Annualized 1st q
Slide 16: Non-covered Commercial Business Portfolio
Non-covered Commercial Business Portfolio 19% 6% 46% 25% 17% Real Estate 5% Manufacturing 9% Finance & Insurance 11% Healthcare 16% Wholesalers 6% Construction 8% Retail 3% Agriculture/ Forest/Fish 14% Professional 11% Other 17% Total Portfolio = $1.6 Billion Annualized 1st quarter growth of 10.2% 1
Slide 17: Non-covered Commercial Real Estate Portfolio
Non-covered Commercial Real Estate Portfolio 19% 6% 46% 25% 17% Retail 14% Office 20% Multifamily 12% Warehouse 15% Manufacturing 8% Land 7% Hotel 7% Healthcare 2% Residential 1% Recreational 2% Other 12% Total Portfolio = $2.1 Billion Annualized 1st quarter growth of 6.4% 17 As of March 31, 2014
Slide 18: Effective Management of Nonperforming Assets
Effective Management of Nonperforming Assets 2.02% 1.08% 0.99% 1.01%* 0.87% 0.84% 0.75% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 2011 2012 1Q13 2Q13 3Q13 4Q13 1Q14 Nonperforming Assets/Noncovered Assets * Includes NPA’s from West Coast Acquisition 18
Slide 19: Conservative Investment Portfolio
Conservative Investment Portfolio 19% 6% 46% 25% 17% 19 As of March 31, 2014 Municipal Securities 22% US Government Agencies 20% Agency MBS, CMO & Other Securities 57% US Government Bonds 1% Total Book Value = $1.6 Billion 1st Quarter 2014 Yield = 2.58% Duration = 3.8 Years
Slide 20: Diversified, Relationship Based Deposit Base
Diversified, Relationship Based Deposit Base 19% 6% 46% 25% 17% Noninterest Bearing 37% Interest Bearing Demand 20% Money Market 25% Savings 9% CD's < $100,000 5% CD's > $100,000 3% CDARS & Brokered MM 1% Total Deposits = $6.0 Billion 1st Quarter 2014 Cost of Interest Bearing Deposits = 8bps Core De
Slide 21: Total Cost of Deposits
Total Cost of Deposits 21 1.86% 0.29% 0.05% 2.15% 0.61% 0.23% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 2008 2009 2010 2011 2012 2013 1Q14 Columbia Bank Peer Group
Slide 22: Interest Rate Sensitivity
Interest Rate Sensitivity 22 • Stable asset duration • 37% of the loan portfolio reprices in one year or less (most monthly) • 38% of the loan portfolio is fixed rate and 25% is variable rate that reprices in over 1 year • 97% of all variable rate loans reprice in 5 years or less • The fixed rate bo
Slide 23: Strong Capital Measures
Strong Capital Measures 23 14.3% 19.6% 24.5% 21.1% 20.6% 14.7% 14.8% 0% 5% 10% 15% 20% 25% 30% 2008 2009 2010 2011 2012 2013 1Q14 Total Risk Based Capital COLB Regulatory Minimum "Well Capitalized" Columbia Bank’s capital is well in excess of regulatory minimums. 8.0% 11.4% 14.0% 13.4% 13.3% 10.0% 1
Slide 24: Priorities Moving Forward
Priorities Moving Forward • Continue business development and sales management efforts to increase market share • Emphasis on high quality loan growth • Continue emphasis on expense control and growth in non- interest income • Focus on core deposits; developing new and existing customer relationship
Slide 25: COLB: Total Return Performance
COLB: Total Return Performance 25 0 50 100 150 200 250 300 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 03/31/14 In d e x V a lu e Total Return Performance Columbia Banking System, Inc. NASDAQ Composite COLB Peer Group Index KBW Regional Bank Index
Slide 26: Contact details
Melanie J. Dressel President and Chief Executive Officer 253-305-1911 mdressel@columbiabank.com Clint E. Stein Executive Vice President and Chief Financial Officer 253-593-8304; cstein@columbiabank.com Slide Deck Davidson London Columbia Bank Center 1301 A Street, Suite 900 P.O. Box 2156 Tacoma, WA
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