Columbia Banking System, Inc. · NASDAQ:COLB
Columbia Banking System — Q2 2025 Earnings Presentation
40 slides from Columbia Banking System's earnings presentation, Jul 24, 2025
Slide 1: 2nd Quarter 2025 Earnings Presentation
2nd Quarter 2025 Earnings Presentation July 24, 2025
Slide 2: Disclaimer
2 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 Syste
Slide 3: Disclaimer (continued)
3 Disclaimer (continued) NON-GAAP FINANCIAL MEASURES In addition to results presented in accordance with GAAP, this presentation contains certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in the Appendix. The Company believes presenting certain non-GAAP f
Slide 4: Columbia Banking System: A Franchise Like No Other
4 Columbia Banking System: A Franchise Like No Other Columbia at a Glance West-Focused Regional Powerhouse Business Bank of Choice Ticker COLB ■ In-market, relationship-based commercial banking Corporate Headquarters Tacoma, Washington ■ Attractive footprint in high-growth markets Offices ~300 in ei
Slide 5: Why Columbia?
5 Why Columbia? ■ 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
6 Operating in Large, Attractive Western Markets Foothold in the West(1) Top Regional Bank in the NW (WA, OR, ID)(1) Established Presence in Attractive Markets(1) (population in millions) Total Northwest Northwest Rank Bank (HQ State) Assets ($B) Deposits ($B) Mkt Shr ■ Our market share in the North
Slide 7: Acquisition of Pacific Premier Increases Scale and Opportunities
7 Acquisition of Pacific Premier Increases Scale and Opportunities Adds Scale in Southern California and Increased Presence in Northwest Pro Forma Snapshot(1) $70B $50B $56B Assets Loans Deposits Top 10 Market Share in Southern California(2) Total % of Rank Bank Deposits ($mm) Franchise 1 JPMorgan C
Slide 8: Acquisition Increases Density throughout Our Footprint
8 Acquisition Increases Density throughout Our Footprint Enhances Density in the Northwest Improves Competitive Position in California Accelerates Growth in Expansion Markets Deposits ($mm) Market Share Deposits ($mm) Market Share Deposits ($mm) Market Share Pro Pro Pro Pro Pro Pro MSA(1) Market COL
Slide 9: Acquisition Is Strategically Compelling and Financially Attractive
9 Acquisition Is Strategically Compelling and Financially Attractive ▪ 100% common stock, no capital raise required to support the transaction ▪ Fixed exchange ratio; Pacific Premier stockholders will receive 0.9150 of a Columbia share for each Pacific Premier share Transaction ▪ Expected closing as
Slide 10: Leveraging Technology to Improve Collaboration and Performance
10 Leveraging Technology to Improve Collaboration and Performance Creating Operational Efficiencies Enhancing the Customer Experience Driving Revenue Generation ■ Embracing AI capabilities to improve ■ Differentiated small business and ■ AI-powered "Smart Leads” support associate productivity commer
Slide 11: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 12: YTD 2025 Highlights
12 YTD 2025 Highlights Reported Operating(1) ■ Continued to plan for Columbia’s acquisition of Pacific Premier, which was announced on April 23, 2025, and is expected to close as $239 million $300 million early as September 1, 2025, pending regulatory approvals and Net Income Net Income satisfaction
Slide 13: Second Quarter 2025 Highlights
13 Second Quarter 2025 Highlights Reported Operating(1) ■ Executed a successful small business and retail campaign, which ran through mid-July and brought over $450 million in new deposits to $152 million $160 million the bank. The campaign was also successful in generating new SBA Net Income Net In
Slide 14: Our Diversified Commercial Bank Business Model
14 Our Diversified Commercial Bank Business Model with a Strong Retail Network Supports our Granular, High-Quality Deposit Base Enterprise-wide Deposit Composition Deposits by Category Customer Deposit Composition(1) Commercial - Small Business, 20% Non-interest, 32% Demand, 20% Non-interest, 35% De
Slide 15: Securities Portfolio Overview
15 Securities Portfolio Overview Available-for-Sale Securities Portfolio as of June 30, 2025 Available-for-Sale Securities Portfolio Percentage at Gain / Loss as of June 30, 2025 % of Total Current Amortized Unrealized Unrealized AFS Effective ($ in millions) Par Cost Gains Losses Fair Value Portfol
Slide 16: Loan Roll Forward Activity
16 Loan Roll Forward Activity Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 $1,905 $1,002 $37,616 $23 $37,637 $37,681 $48 $37,637 ($73) ($399) $ in millions $ in millions ($623) ($309) ($1,095) ($503) Beginning New Net Prepayments Payoffs or Other Ending Beginning New Net Prepaymen
Slide 17: Diversified, High Quality Loan and Lease Portfolio
17 Diversified, High Quality Loan and Lease Portfolio Mortgage Portfolio Composition at June 30, 2025 Owner Occupied CRE • Portfolio average loan size of $1.1 million • Portfolio average loan size of $474,000 Multifamily, 15% • 2Q25 average loan size of $1.6 million • 2Q25 average loan size of $375,
Slide 18: C&I and CRE Portfolio Composition
18 C&I and CRE Portfolio Composition C&I Portfolio Composition(1) CRE Portfolio Composition(1) $9.9 Billion as of June 30, 2025 $17.2 Billion as of June 30, 2025 Special Purpose, 7.4% Other, 10.2% Agriculture, 9.1% Hotel/Motel, 4.1% Retail, 11.1% Other Healthcare, 4.8% Contractors, 8.2% Other, 10.9%
Slide 19: Office Portfolio Details
19 Office Portfolio Details Office Portfolio Metrics at June 30, 2025 Number of Loans by Balance ■ Loans secured by office properties Average loan size $1.36 million represented 8% of our total loan portfolio 1,746 1,719 1,570 as of June 30, 2025. Average LTV 57% DSC (non-owner occupied) 1.83x ■ Our
Slide 20: Continued Strong Credit Quality
20 Continued Strong Credit Quality Allowance for Credit Losses ("ACL") ■ The remaining credit discount on loans of 1.35% 1.34% 1.32% 1.33% 1.31% $53 million as of June 30, 2025 provides an additional 14 basis points of loss 1.16% 1.17% 1.17% 1.17% 1.17% absorption when added to the ACL of $69 $65 $6
Slide 21: ACL Reflects Strong Portfolio Credit Metrics
21 ACL Reflects Strong Portfolio Credit Metrics Allowance for Credit Losses by Loan Segment Total ACL Remaining including Lease & Commercial Residential & Credit Discount Credit Discount ($ in thousands) Commercial Equipment Real Estate Home Equity Consumer Total(1) on Loans on Loans(1) Balance as o
Slide 22: Capital Management
22 Capital Management Regulatory Capital Ratios: Bank and Holding Company as of June 30, 2025 Capital Ratios Continue to Trend Up 14.0% 12.7% 13.0% 14.0% 12.5% 12.8% 12.9% 13.0% 12.2% 12.0% 11.6% 11.6% 12.0% 10.8% 10.8% 10.3% 10.5% 10.6% 10.8% 10.0% 10.0% 9.2% 10.0% 8.6% 8.0% 8.0% 6.0% 6.0% 4.0% 6.5
Slide 23: Net Interest Income and Net Interest Margin
23 Net Interest Income and Net Interest Margin Net Interest Income and Net Interest Margin Net Interest Margin: Q1 2025 vs Q2 2025 $446 0.08% 0.02% 3.75% $427 $430 $437 $425 0.06% (0.01)% 3.60% 3.75% 3.64% 3.60% 3.56% 3.56% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q1 2025 Loans Investments Deposits T
Slide 24: Interest Rate Sensitivity
24 Interest Rate Sensitivity Interest Rate Simulation Impact on Net Interest Income at June 30, 2025(1) Deposit and Funding Repricing Betas During Current Rate Cycle Ramp Shock Cost of: Year 1 Year 2 Year 1 Year 2 Effective Fed Interest- Up 200 basis points (0.9)% 0.2% (1.8)% 2.0% Funds Rate Bearing
Slide 25: Non-Interest Income
25 Non-Interest Income For the Quarter Ended Q2 2025 Highlights (compared to Q1 2025) ($ in millions) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 ■ Our Business Bank of Choice strategy Service charges on deposits $19.7 $19.3 $18.4 $18.5 $18.5 incorporates a collaborative team Card-based fees 14.6 12.6 1
Slide 26: Non-Interest Expense
26 Non-Interest Expense Non-Interest Expense ("NIE") Non-Interest Expense: Q1 2025 vs Q2 2025 $340.1 $340.1 $7.5 $(2.5) $(2.2) $(3.5) $278.0 $(61.5) $ in millions $279.2 $278.0 $ in millions $271.4 $268.4 $266.6 $263.5 $270.1 $269.4 $262.5 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q1 2025 Legal Fees I
Slide 27: Appendix
APPENDIX
Slide 28: Longer-Term Balance Sheet Optimization Opportunities
28 Longer-Term Balance Sheet Optimization Opportunities Opportunity to Strategically Reposition Balance Sheet Over Time Relationship $37B banking $45B Relationship Lending & supports Core Deposit Franchise Other Core Banking strong core & Capital Franchise franchise value $9B Securities Opportunity
Slide 29: Liquidity Overview
29 Liquidity Overview Select Balance Sheet Items Total Off-Balance Sheet Liquidity Available at June 30, 2025 Sequential Gross Net Three Months Ended Quarter Change ($ in millions) Availability Utilization Availability ($ in millions) Q2 2025 Q1 2025 Q2 2024 Q2 2025 FHLB lines $11,009 $3,476 $7,533
Slide 30: Summary Income Statements
30 Summary Income Statements For the Quarter Ended Q2 2025 Highlights (compared to Q1 2025) ($ in millions, except per-share data) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Net interest income before provision $446.4 $425.0 $437.4 $430.2 $427.4 ■ Net interest income increased by $21 million, due to hi
Slide 31: Summary Period-End Balance Sheets
31 Summary Period-End Balance Sheets ($ in millions, except per-share data) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q2 2025 Highlights (compared to Q1 2025) ASSETS: ■ Loan balances increased slightly in Total assets $51,901.4 $51,519.3 $51,576.4 $51,908.6 $52,047.5 Q2 2025, as 2% annualized growth i
Slide 32: PPBI Acquisition: Transaction Summary
32 PPBI Acquisition: Transaction Summary ▪ 100% common stock, no capital raise required to support the transaction Structure & ▪ Fixed exchange ratio; Pacific Premier stockholders will receive 0.9150 of a Columbia share for each Pacific Premier share Consideration ▪ Pro forma ownership: 70% Columbia
Slide 33: PPBI Acquisition: Key Pro Forma Financial Assumptions
33 PPBI Acquisition: Key Pro Forma Financial Assumptions Standalone Earnings ▪ Consensus earnings estimates for Columbia and Pacific Premier ▪ Estimated $127 million of full run-rate cost savings, or 30% of Pacific Premier’s noninterest expense Synergies ▪ Cost savings realization expected to be 75%
Slide 34: PPBI Acquisition: Pro Forma Adjustments Summary
34 PPBI Acquisition: Pro Forma Adjustments Summary Tangible Book Value per Share Reconciliation Goodwill Reconciliation Dollar values in millions, except per share amounts Dollar values in millions, except per share amounts Deal Value $2,033 Columbia Tangible Book Value per Share at Closing $19.14 P
Slide 35: PPBI Acquisition: Pro Forma Adjustments Summary (continued)
35 PPBI Acquisition: Pro Forma Adjustments Summary (continued) 2026E Earnings per Share Reconciliation 2027E Earnings per Share Reconciliation Dollar values in millions, except per share amounts Dollar values in millions, except per share amounts 2026E Earnings per Share Reconciliation 2027E Earning
Slide 36: Non-GAAP Reconciliation: Tangible Capital
36 Non-GAAP Reconciliation: Tangible Capital ($ in thousands, except per-share data) 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 Total shareholders' equity a $5,341,882 $5,237,809 $5,118,224 $5,273,828 $4,976,672 Less: Goodwill 1,029,234 1,029,234 1,029,234 1,029,234 1,029,234 Less: Other int
Slide 37: Non-GAAP Reconciliation: Adjustments and Average Balances
37 Non-GAAP Reconciliation: Adjustments and Average Balances For the Quarter Ended For the Six Months Ended ($ in thousands) 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 6/30/2025 6/30/2024 Non-Interest Income Adjustments Gain (loss) on sale of debt securities, net $1 $4 $10 $3 ($1) $5 $11 Gai
Slide 38: Non-GAAP Reconciliation: Income Statements
38 Non-GAAP Reconciliation: Income Statements For the Quarter Ended For the Six Months Ended ($ in thousands) 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 6/30/2025 6/30/2024 Net interest income c $446,446 $424,995 $437,373 $430,218 $427,449 $871,441 $850,811 Non-interest income (GAAP) d $64,4
Slide 39: Non-GAAP Reconciliation: Earnings Per-Share and Performance Metrics
39 Non-GAAP Reconciliation: Earnings Per-Share and Performance Metrics For the Quarter Ended For the Six Months Ended ($ in thousands, except per-share data) 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 6/30/2025 6/30/2024 Select Per-Share & Performance Metrics Earnings per share - basic j/r $
Slide 40: Non-GAAP Reconciliation: Operating Efficiency Ratio, as Adjusted
40 Non-GAAP Reconciliation: Operating Efficiency Ratio, as Adjusted For the Quarter Ended For the Six Months Ended ($ in thousands) 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 6/30/2025 6/30/2024 Non-interest expense (GAAP) h $277,995 $340,122 $266,576 $271,358 $279,244 $618,117 $566,760 Less
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