Columbia Banking System, Inc. · NASDAQ:COLB
Columbia Banking System — Q2 2019 Earnings Presentation
32 slides from Columbia Banking System's earnings presentation, Jul 25, 2019
Slide 1: Building a Premier Regional Community Bank
COLUMBIA BANK BUILDING A DB PREMIER REGIONAL D COMMUNITY BANK Q? = NASDAQ:COLB aa © (} Columbia Banking System Inc. N
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as “may,” “expected,” “anticipate”, “continue,” or other comparable words. In addition, all statements ot
Slide 3: Why Columbia Bank?
Why Columbia Bank? • Fortress balance sheet Very low cost, stable funding base Relationship centric C&I focused loan portfolio Diversified loan portfolio with top tier credit quality • Sustained track record of driving long-term shareholder value • Seasoned acquirer with proven integration res
Slide 4: Pacific Northwest Economy is Growing Fast
Pacific Northwest Economy is Growing Fast A network of 150 branches throughout A network of the Northwest 150 branches throughout the Northwest
Slide 5: The Strongest Economic Region in the US
The Strongest Economic Region in the US • Washington’s annual GDP growth rate of 5.7% was the best in the nation in 2018. Idaho was third growing by 4.1% and Oregon by 3.4%. Information services and retail trade were the leading contributors to the increase in Washington and durable goods manufactur
Slide 6: Attractive Northwest Markets
Attractive Northwest Markets (1) MSA unemployment rates are not seasonally adjusted.State and US rates are seasonally adjusted. Sources: Bureau of Labor Statistics, S&P-Case Schiller, SNL Financial 6
Slide 7: Seasoned Acquirer with Proven Integration Track Record
Seasoned Acquirer with Proven Integration Track Record Over the past 10 years, 8 acquisitions, 3 branch sales and 44 branch consolidations with another 3 slated for 2019. FDIC Assisted acquisition Summit Bank May-2011 FDIC Assisted $131MM Assets Acquired acquisition West Coast Columbia River Bank Ba
Slide 8: Second Quarter 2019 Highlights
Second Quarter 2019 Highlights • Record quarterly net income of $51.7 million; diluted earnings per share of $0.71. • New second quarter record loan production of $401 million, which surpassed the prior second quarter record set in 2018 of $373 million. • Nonperforming assets to period end assets ra
Slide 9: Favorable Trend of Earnings
Favorable Trend of Earnings 2Q YTD 4 Yr CAGR= 14% Due to averaging of shares, quarterly earnings per share does not add up to the 9 total reported for the full year.
Slide 10: Total Loans, Net of Unearned Income
Total Loans, Net of Unearned Income Total Loans = $8.6 billion Annualized quarterly growth = 6% As of Jun 30, 2019 Loan categories in above chart are presented gross of unearned income. 10 $ in Millions
Slide 11: Well Diversified C&I and Agriculture Loan Portfolios
Well Diversified C&I and Agriculture Loan Portfolios C&I Portfolio $3.6 billion Agriculture Portfolio $562 million As of Jun 30, 2019 11
Slide 12: Balanced CRE Loan Portfolio
Balanced CRE Loan Portfolio CRE Portfolio $3.9 billion Consistent CRE Coverage Balanced with 51% Income Property and 49% Owner-occupied As of Jun 30, 2019 $ in Millions 12
Slide 13: Components of Second Quarter Change in Loans
Components of Second Quarter Change in Loans 13 $ in Millions
Slide 14: Favorable Trend in Nonperforming Assets
Favorable Trend in Nonperforming Assets $ in Thousands 14
Slide 15: ALLL Components
ALLL Components 15 $ in Thousands
Slide 16: Diversified, Relationship Centered Deposit Base
Diversified, Relationship Centered Deposit Base Solid core base that is well diversified across business & consumer with a migration toward noninterest bearing. $10.4 billion $10.2 billion 58% Business & 42% Consumer 59% Business & 41% Consumer Core deposit ratio = 95% Core deposit ratio = 96% 16
Slide 17: Industry Leading Cost of Deposits
Industry Leading Cost of Deposits Favorable Cost of Deposits Deposit Market Share 1.0% 0.87% Northwest (Washington, Oregon, Idaho) 0.9% 2018 2018 Growth 0.8% 0.70% Rank Institution (HQ State) Deposits Market since 0.7% 0.62% 0.58% ($ Millions) Share 2017 0.58% 0.6% 0.49% 1 Bank of America (NC) $45,2
Slide 18: Operating Net Interest Margin
Operating Net Interest Margin * $ in Millions $ in Millions Operating Net Interest Margin (tax equivalent)* Reported Net Interest Margin (tax equivalent)* * Beginning January 2019, reported net interest margin (tax equivalent) and operating net interest margin (tax equivalent) were calculated using
Slide 19: Interest Rate Sensitivity
Interest Rate Sensitivity Loan Repricing Detail Floating and Variable Rate Loans <=3 >3 to 6 >6 to 12 >12 to 24 >24 to >36 to >48 to 60 > 60 Mar-19 Jun-19 Mar-19 Jun-19 Mos Mos Mos Mos 36 Mos 48 Mos Mos Mos Total Fixed $3,938,123 $4,033,711 46% 46% PRIME 1,176,225 3,137 4,515 2,518 7,026 4,625 8,300
Slide 20: Selected Balance Sheet & Ratios
Selected Balance Sheet & Ratios *ROATCE and Tangible Common Equity ratios are non-GAAP measures. Refer to end of presentation for additional information. 20
Slide 21: Summary Income Statement
Summary Income Statement (1) Acquisition Related Costs are included in Noninterest Expense, above. 21
Slide 22: Noninterest Income
Noninterest Income 22 $ in Thousands
Slide 23: Noninterest Expense and Operating Efficiency Ratio
Noninterest Expense and Operating Efficiency Ratio** $ in Thousands *Acquisition Related Expense is excluded from individual expense groups and shown in aggregate. Individual expense groups 23 excluding acquisition expenses are non-GAAP measures. Refer to end of presentation for more information. **
Slide 24: Stable Expense Management
Stable Expense Management $ in Millions Core NIE/Avg Assets* *Core NIE/Average Total Assets is a non-GAAP measure. Refer to end of presentation for more information. 24
Slide 25: 2019 Digital Program Summary
2019 Digital Program Summary Vision A future where clients can choose to interact with us in-person or through digital channels while seamlessly changing between them. This includes delivering a modern banking experience through digital channels and digitally-enabled bankers allowing us to attract a
Slide 26: Current & Completed Technology Initiatives
Current & Completed Technology Initiatives 26
Slide 27: New Technology Initiatives
New Technology Initiatives 27
Slide 28: Strong Capital, Dividend Payouts & Total Return
Strong Capital, Dividend Payouts & Total Return *The RBC ratio as of June 30, 2019 has not yet been filed. **Tangible Common Equity Ratio is a non-GAAP measure. Refer to end of presentation for additional information. 28
Slide 29: Columbia – An Award-Winning Company
Columbia – An Award-Winning Company 29
Slide 30: Information
Information Hadley Robbins President & Chief Executive Officer Andy McDonald Chief Credit Officer Greg Sigrist Chief Financial Officer Clint Stein Chief Operating Officer Columbia Bank Center 1301 A Street, Suite 900 P.O. Box 2156 Tacoma, WA 98401-2156 Investor Relations: +1-253-305-1921 InvestorRel
Slide 31: Non-GAAP Financial Measures
Non-GAAP Financial Measures (`) Tax-exempt interest income has been adjusted to a tax equivalent basis. (2) Effective 1/1/2016, incremental accretion income on other FDIC acquired loans is no longer considered significant and is no longer tracked for non-GAAP financial measures (3) Beginning January
Slide 32: Non-GAAP Financial Measures
Non-GAAP Financial Measures 32
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