Slide 1: Building a Premier Regional Community Bank
COLUMBIA BANK BUILDING A PREMIER REGIONAL COMMUNITY BANK NASDAQ:COLB Q 1 (} Columbia Banking System Inc. 2019
Slide 2: First Quarter 2019 Highlights
First Quarter 2019 Highlights • Quarterly net income of $45.9 million; diluted earnings per share of $0.63. • New first quarter record loan production of $366 million, which surpassed the prior first quarter record set in 2018 by $102 million. • Nonperforming assets to period end assets ratio decrea
Slide 3: On the Call
On the Call ... Hadley Robbins President & Chief Executive Officer Andy McDonald Chief Credit Officer Greg Sigrist Chief Financial Officer Clint Stein Chief Operating Officer Columbia Bank Center 1301 A Street, Suite 900 P.O. Box 2156 Tacoma, WA 98401-2156 Investor Relations: 253-305-1921 investorre
Slide 4: Forward Looking Statements
Forward Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as “may,” “expected,” “anticipate”, “continue,” or other comparable words. In addition, all statements ot
Slide 5: Favorable Trend of Earnings
Favorable Trend of Earnings Net Income Earnings per Share (Diluted) ($ Millions) $2.36 2019 $46 $0.61 $1.86 $1.81 $1.71 $0.23 2018 $40 $42 $46 $45 $173 $0.53 $0.46 $0.63 $0.70 2017 $29 $27 $41 $16 $113 $0.45 $0.47 $0.57 2016 $21 $25 $27 $31 $104 $0.47 $0.38 $0.44 2015 $24 $22 $26 $27 $99 $0.55 $0.63
Slide 6: Summary Income Statement
Summary Income Statement $ in Thousands (except EPS) 1Q19 4Q18 3Q18 2Q18 1Q18 Net Interest Income $121,022 $123,888 $122,796 $116,674 $115,481 Provision for Loan Losses 1,362 1,789 3,153 3,975 5,852 Net Interest Income 119,660 122,099 119,643 112,699 109,629 after Provision Noninterest Income 21,696
Slide 7: Operating Net Interest Margin
Operating Net Interest Margin * 4.35% 4.33% 4.32% 4.28% 4.30% 4.37% 4.36% 4.32% 4.12% 4.18% 4.30% 4.33% 4.28% 4.34% 4.34% 4.33% 4.15% 4.15% 4.24% $500 4.01% $483.4 $400 $120 $125.4 $116.2 $118.0 $123.9 $123.5 $377.5 $300 $319.3 $335.3 $80 $200 $40 $100 $123.5 $0 $0 2015 2016 2017 2018 2019 YTD 1Q18
Slide 8: Noninterest Income
Noninterest Income $23,692 $23,143 2,120 $21,696 2,674 $21,019 $20,402 3,054 1,782 3,708 1,888 3,186 3,282 2,344 3,219 2,389 2,730 2,975 3,211 2,957 5,813 6,616 3,714 3,576 3,662 8,740 8,683 9,266 9,383 8,980 1Q18 2Q18 3Q18 4Q18 1Q19 Deposit Account & Treasury Management Fees Card Revenue Financial
Slide 9: Noninterest Expense and Operating Efficiency Ratio
Noninterest Expense and Operating Efficiency Ratio** Quarterly NIE Change 57.59% 56.02% 54.83% 58.10% 57.54% 90,000 $85,987 $84,643 $87,019 $84,700 88,000 $82,841 $87,019 4,265 26,617 23,806 23,591 86,000 25,113 24,972 (661) (433) 193 $84,700 $ (Millions) (493) 8,858 8,809 9,117 8,690 8,292 84,000 (
Slide 10: Favorable Trend in Expense Management
Favorable Trend in Expense Management 2.96% 2.77% 2.59% 2.61% 2.67% 2.60% 2.67% 2.55% 2.61% 2.60% $13,048 $12,958 $13,048 $12,725 $12,805 $12,603 $12,530 $ (Millions) $10,134 $9,312 $8,655 2015 2016 2017 2018 2019 YTD 1Q18 2Q18 3Q18 4Q18 1Q19 $ in Thousands Average Total Assets Core NIE/Avg Assets*
Slide 11: 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 12: Selected Balance Sheet & Ratios
Selected Balance Sheet & Ratios $ in Millions 1Q19 4Q18 3Q18 2Q18 1Q18 Total Assets $ 13,064 $ 13,095 $ 12,957 $ 12,629 $ 12,531 Securities, Including Equity Securities & FHLB Stock 3,053 3,193 2,943 2,665 2,641 Loans, Net of unearned Income 8,521 8,392 8,514 8,454 8,340 Allowance for Loan & Leases
Slide 13: 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 $10.4 billion 58% Business & 42% Consumer 58% Business & 42% Consumer Core deposit ratio = 95% Core deposit ratio = 95% 4.8%
Slide 14: Total Loans, Net of Unearned Income
Total Loans, Net of Unearned Income Total Loans = $8.5 billion Annualized quarterly growth = 6% 1-4 Family Residential 3.3% $8,514 $8,521 $8,454 $8,340 $8,392 Owner Occupied Com'l RE 21.3% Commercial Business Income 41.0% Property Com'l RE 24.5% Residential RE Purchased Credit Construction Impaired
Slide 15: Record First Quarter Loan Production
Record First Quarter Loan Production Annual Loan Production Rolling 5 Quarter Loan Production $409 $388 $373 $366 $1,434 $264 $1,261 $1,201 $1,119 1Q18 2Q18 3Q18 4Q18 1Q19 1st Quarter Loan Production $366 $366 $254 $252 $264 $217 2015 2016 2017 2018 2019 YTD 1Q15 1Q16 1Q17 1Q18 1Q19 $ in Millions 15
Slide 16: Well Diversified C&I and Agriculture Loan Portfolios
Well Diversified C&I and Agriculture Loan Portfolios C&I Portfolio $3.5 billion Construction 6% Wholesalers 4% Retail 3% Agriculture Portfolio Healthcare 4% $470 million Public Admin 9% Cattle 16.5% Other Forestry/Logging 29.7% 12.0% Dentists 19% Agriculture/ Forest/Fish 13% Fishing 10.8% Finance &
Slide 17: Balanced CRE Loan Portfolio
Balanced CRE Loan Portfolio CRE Portfolio $3.9 billion Consistent CRE Coverage Balanced with 53% Income Property and 47% Owner-occupied 219.2% 211.8% 208.4% 209.6% 198.3% 139.2% 133.7% 130.3% 135.6% 130.1% Office 21% $4,604 $4,561 $4,556 $4,552 $4,546 827 803 769 706 628 Retail 11% Multifamily 9% 3,
Slide 18: Components of First Quarter Change in Loans
Components of First Quarter Change in Loans First Quarter 2019 $366 $8,521 $8,392 $(37) $(12) $(188) Beginning Net Advances/ Prepayments/ New Other Ending Balance Payments Payoffs Originations Balance First Quarter 2018 $8,359 $18 $8,340 $264 $(89) $(212) Beginning Net Advances Prepayments/ New Othe
Slide 19: ALLL Components
ALLL Components 0.96% 0.95% 0.98% 0.99% 0.98% 5,852 3,975 3,652 7,242 3,153 2,207 4,915 1,671 4,307 1,789 1,362 1,457 2,988 2,091 0 0 -484 (1,531) (2,636) (2,575) (2,708) (3,590) 1Q18 2Q18 3Q18 4Q18 1Q19 Provision Expense Charge-offs Recoveries Net Charge-Offs ALLL/Total Loans 19 $ in Thousands
Slide 20: Nonperforming Assets
Nonperforming Assets 0.72% 0.61% 0.52% 0.46% 0.45% $89,971 11,507 $76,584 7,080 $67,747 7,415 $60,891 $58,690 6,049 6,075 78,464 69,504 60,332 54,842 52,615 03/31/18 06/30/18 09/30/18 12/31/18 03/31/19 $ in Thousands Nonaccrual loans OREO and OPPO Nonperforming assets to period-end assets 20
Slide 21: Attractive Northwest Markets
Attractive Northwest Markets Seattle- ü Better Than or Equal to Portland- United Tacoma- Boise Washington Oregon Idaho U.S. Average Vancouver States Bellevue Population Increase 15.08%ü 12.64%ü 18.91%ü 12.60%ü 10.24%ü 12.18%ü 6.64% (2010 – 2019) Demographics Projected Population Change 6.85%ü 6.48%ü
Slide 22: Pacific Northwest Economy is Growing Fast
Pacific Northwest Economy is Growing Fast A network of 150 branches A network of the throughout Northwest 150 branches throughout the Northwest
Slide 23: Strong Capital, Dividend Payouts & Total Return
Strong Capital, Dividend Payouts & Total Return 13.7% 14.0% 13.2% 13.4% 10 Year Total Return Performance 600 9.9% 10.4% 9.6% 9.7% 9.6% 500 0.63 0.61 0.63 0.55 0.57 400 Index Value 0.40 0.42 0.42 0.14 0.14 0.14 300 0.26 0.26 0.26 0.28 0.28 200 1Q18 2Q18 3Q18 4Q18 1Q19 100 EPS 0 12/31/2011 12/31/2009
Slide 24: Columbia – An Award-Winning Company
Columbia – An Award-Winning Company 24
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures Net Interest Margin 2019 Tangible 2015 2016 2017 2018 1Q18 2Q18 3Q18 4Q18 1Q19 Common Equity 1Q18 2Q18 3Q18 4Q18 1Q19 $ in Thousands YTD $ in Thousands Net interest income (tax $334,548 $344,425 $380,107 $486,667 $123,110 $117,359 $118,602 $124,789 $125,917 $123,110 Total
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-interest Expense net of Acquisition Related Expense Operating Efficiency Ratio $ in Thousands 1Q18 2Q18 3Q18 4Q18 1Q19 $ in Thousands 1Q18 2Q18 3Q18 4Q18 1Q19 Noninterest expense (numerator A) $ 85,987 $ 84,643 $ 82,841 $ 87,019 $ 84,700 Compensation & Employee Benefi