Columbia Banking System, Inc. · NASDAQ:COLB
Columbia Banking System — Q1 2021 Earnings Presentation
33 slides from Columbia Banking System's earnings presentation, Apr 29, 2021
Slide 1: 1Q 2021 Forward Looking Statements
NASDAQ - COLB 1Q 2021 Seattle, Washington 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 compar
Slide 2: Lasting Strength
OVERVIEW OF COLUMBIA BANK Lasting Strength Sustained track record of driving long-term shareholder value Maintained a strong capital position with ample liquidity Seasoned acquirer with proven integration success Low-cost deposit funding base Award-winning company that is committed to the communitie
Slide 3: By the Numbers
OVERVIEW OF COLUMBIA BANK By the Numbers $17.3 Billion in Total Assets $9.7 Billion in Total Loans $14.8 Billion in Total Deposits 145 Branches 48 Branch Consolidations 6 Acquisitions 3 Branch Sales Over past 10 years 14.6% Total Risk-Based Capital (1) 10.00% CB 9.1% Leverage Ratio (1) 5.00% CB 3 Re
Slide 4: Continually Building Value
Continually Building Value January 2010 April 2013 November 2017 Completed Two FDIC Assisted Acquisitions: Acquired: Acquired: Columbia River Bank $913MM Assets West Coast Bancorp $2.6B Assets American Marine Bank $308MM Pacific Continental Corp $2.9B Assets $24.19 May 2011 November 2014 $23.16 Acqu
Slide 5: 1Q 2021 Recap
(1) Pre-tax, Pre-provision Income OVERVIEW OF COLUMBIA BANK Q1 Q2 Q3 Q4 Totals may not foot due to rounding 1Q 2021 Recap 2021 YTD $64 $64 Fourth quarter net income of $51.9 million; 2020 $59 $78 $62 $70 $270 diluted earnings per share of $0.73 2019 $58 $64 $63 $60 $245 Pre-tax, pre-provision income
Slide 6: Summary Income Statement
Summary Income Statement $ in thousands 1Q21 4Q20 3Q20 2Q20 1Q20 (except EPS) Net Interest Income $123,994 $131,112 $124,726 $121,851 $122,422 Provision/(Recapture) for Credit Losses (800) (4,700) 7,400 33,500 41,500 Net Interest Income 124,794 135,812 117,326 88,351 80,922 after Provision for Credi
Slide 7: Selected Balance Sheet & Ratios
Selected Balance Sheet & Ratios $ in millions Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Total Assets $17,335 $16,585 $16,233 $15,921 $14,039 Securities, Including Equity Securities & FHLB Stock 5,520 5,234 4,305 3,723 3,591 Loans, Net of unearned Income 9,676 9,428 9,689 9,772
Slide 8: Diversified, Relationship-Centered Deposit Base
Diversified, Relationship-Centered Deposit Base 1Q20 1Q21 $10.8 billion $14.8 billion 59% Business & 41% Consumer 60% Business & 40% Consumer Cost of Deposits = 14 bps Cost of Deposits = 4 bps 10.5% 10.2% 21.4% 19.7% 49.2% 50.4% 8.7% 8.4% 4.5% 3.8% 1.3% 2.0% 1.0% 0.7% 3.7% 4.5% As of Mar 31, 2020 As
Slide 9: Reported Net Interest Margin
Reported Net Interest Margin 4.33% 4.24% 4.18% 3.67% 4.00% 3.68% 3.56% 3.52% 3.65% 3.31% 3.64% 3.31% $501.8 $507.6 3.47% 3.47% $486.7 3.25% 3.25% $133.0 $124.3 $123.7 $126.6 $125.9 $380.1 $125.9 2017 2018 2019 2020 2021 YTD 1Q20 2Q20 3Q20 4Q20 1Q21 Reported Net Interest Income (tax equivalent) Repor
Slide 10: Interest Rate Sensitivity
Interest Rate Sensitivity Floors: Floating and Variable Rate Loans (in millions) 100-200 Balances At Floor 0-100 bps bps >200 bps No Floor Total PRIME $491 $93 $9 $5 $226 $824 1 MO 562 28 — — 1,463 2,054 3 MO 11 — — — 101 113 1Q21 Operating Net Interest Margin 1 YR 31 72 23 3 2 130 3 YR 63 7 10 — 31
Slide 11: Noninterest Income
Noninterest Income $109,642 $104,500 14,000 $97,181 16,710 $88,256 $37,259 11,474 20,024 8,464 9,211 4,283 12,399 11,866 13,465 16,425 24,802 11,478 12,135 $23,562 $23,166 12,799 $22,472 $21,207 2,275 2,325 2,082 12,830 2,246 2,893 19,719 25,627 15,198 7,960 4,590 6,645 7,369 5,607 13,928 3,065 3,25
Slide 12: Strong Earnings Performance
Strong Earnings Performance $2.68 $2.36 $2.17 $1.86 $0.82 $0.73 $0.73 $0.63 $194,451 $0.52 $172,882 $0.20 $58,300 $152,244 $51,853 $44,734 $112,828 $36,582 $51,853 $14,628 2017 2018 2019 2020 2021 YTD 1Q20 2Q20 3Q20 4Q20 1Q21 Net Income Earnings Per Share (Diluted) 12 $ in thousands
Slide 13: Improved Operating Leverage
Improved Operating Leverage 2.67% 2.61% 2.59% 2.41% 2.17% 2.13% 2.13% 1.98% 2.05% 1.98% $16,892 $16,892 $16,477 $15,965 $15,401 $15,148 $13,996 $13,341 $12,725 $10,134 2017 2018 2019 2020 2021 YTD 1Q20 2Q20 3Q20 4Q20 1Q21 Average Total Assets Core NIE/Avg Assets(1) $ in millions 13 (1) Non-GAAP fina
Slide 14: Total Loans, Net of Unearned Income
Total Loans, Net of Unearned Income Rolling 5 Quarters Loan Production Total Loans = $9.7 billion LTM growth = 8.3% $1,257 $895 962 511 $468 $331 $279 295 384 270 (1) 1Q20 2Q20 3Q20 4Q20 1Q21 Commercial Business Loan Originations PPP Loan Originations 39.2% Commercial 1st Quarter Loan Production Rea
Slide 15: Well Diversified C&I and Agriculture Loan Portfolios
Well Diversified C&I and Agriculture Loan Portfolios C&I Portfolio Agriculture Portfolio $3.8 billion $752 million Dairy Cattle Healthcare 4.5% & Milk Production Wholesalers 2.2% Dentists 21.2% 2.7% Cattle 11.8% Finance/ Insurance Fishing 7.4% 9.0% Contractors 9.0% Other 41.1% Manufacturing Row Crop
Slide 16: Balanced CRE Loan Portfolio
Balanced CRE Loan Portfolio CRE Portfolio $4.1 billion Consistent CRE Coverage Balanced with 51% Income Property and 49% Owner-occupied 186.4% 183.4% 186.8% 180.1% 181.3% 138.5% 137.1% 133.7% 132.7% 129.6% $4,840 $4,925 $4,737 $4,823 $4,670 Office 22.9% Education 843 Multifamily 704 796 778 3.3% 700
Slide 17: Paycheck Protection Program
Change in PPP Portfolio (Gross of unearned income) $ in millions Paycheck Protection Program $511 $971 $915 During 1Q 2021, Columbia Bank originated more than 4,000 loans through Round 2 of the $-568 Paycheck Protection Program, totaling $511 million. $0 Mar 31, 2020 Round 1 Round 2 Paydowns/ Mar 31
Slide 18: Exposure in Stressed Sectors
Exposure in Stressed Sectors(1) Total Outstanding Loans Total Stressed Sector Commitments $9.7 billion $1.4 billion Unused Commitments Aviation $141.7 Airlines, Leasing Remaining Portfolio 86.8% Restaurants/ Restaurants, Drinking Establishments, $245.9 Specialty Food Services(2) Food Service Hotels/
Slide 19: Loan Deferral Update
Loan Deferral Update % % Number of Loan Deferrals Change Change 6/30/20 Ended (1) Redeferrals New 12/31/20 Ended (1) Redeferrals New 3/31/21 Dental 1,569 (1,570) 1 1 1 (99.9)% (1) — 1 1 —% Hotel/Motel 73 (87) 14 10 10 (86.3)% (10) 1 — 1 (90.0)% Office 158 (160) 3 5 6 (96.2)% (5) — — 1 (83.3)% Health
Slide 20: Components of 1Q Change in Loans
Components of 1Q Change in Loans 1Q21 $895 $74 $9,676 $9,428 $(466) $(216) $(39) Beginning Balance Net Advances/ Prepayments Payoffs New Originations Other Ending Balance Payments inclusive of $511 million inclusive of $72 million in PPP loans mortgage loan purchases 1Q20 $79 $331 $(8) $8,933 $8,743
Slide 21: Allowance for Credit Losses (ACL)
Allowance for Credit Losses (ACL) 1.80% 1.72% 1.70% 1.69% 1.62% 1.37% 1.55% 1.58% 1.53% $156,968 $151,546 $149,140 $148,294 $122,074 Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 Mar 31, 2021 (1) Allowance for Credit Losses % Allowance for Credit Losses % Allowance fore Credit Losses excluding
Slide 22: Nonperforming Assets
Nonperforming Assets 0.34% 0.34% 0.29% 0.21% $54,479 0.20% $48,157 $47,854 $35,359 $34,102 53,732 47,647 47,231 34,806 33,581 Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 Mar 31, 2021 Nonaccrual loans OREO and OPPO Nonperforming assets to period-end assets 22 $ in thousands
Slide 23: Highly Quality Securities Portfolio
Highly Quality Securities Portfolio(1) Portfolio Mix Portfolio is well positioned for a challenging economic environment: $5.5 billion • Strong credit quality with focus on agencies and high-quality municipal securities; no private-label MBS Municipals 13.7% • Over half of the MBS portfolio is Agenc
Slide 24: Strong Capital, Dividend Payouts & Total Return
Strong Capital, Dividend Payouts & Total Return 14.2% 14.5% 14.7% Total Return Performance 14.0% 13.4% 600 500 10.7% 9.8% 9.8% 9.8% 9.0% $0.82 400 $0.73 Index Value $0.63 300 $0.52 200 $0.28 $0.28 $0.28 $0.28 $0.28 $0.20 100 0 1Q20 2Q20 3Q20 4Q20 1Q21 3 0 0 7 4 1 8 08 5 2 9 9 6 1 01 02 01 01 01 01 0
Slide 25: On the Road to Recovery
REVISED CONTENT FOR On the Road to Recovery PREVIOUS SLIDE At Columbia Bank, we are dedicated to helping our communities navigate the road to recovery during this challenging time through various 2020 initiatives. 25 25
Slide 26: Dedicated to Our Communities
Fundraising Volunteer Hours Dedicated to Our $369,978 16,373 Communities $430,988 28,313 $342,754 26,944 At Columbia Bank, we empower $303,929 20,614 employees to address the unique needs $286,027 15,336 $229,591 18,979 of their communities and offer support in the manner that makes the biggest diff
Slide 27: Columbia – An Award-Winning Company
Columbia – An Award-Winning Company 27
Slide 28: Responsibility: ESG Encompasses Columbia's Do RIGHT Values
NEW SLIDE - NEEDS APPROVAL Responsibility ESG Encompasses Columbia's Do RIGHT Values When we Do RIGHT by our people and our clients, shareholders invest and communities prosper. E nvironment S ocial G overnance Investing in Board Climate Valuing our Charitable Stewardship Investment our Independence
Slide 29: Executive Leadership Team
Executive Leadership Team Investor Relations 253-471-4065 investorrelations@columbiabank.com Clint Stein Kumi Yamamoto Baruffi Aaron James Deer President Executive Vice President Executive Vice President Chief Executive Officer General Counsel Chief Financial Officer Columbia Bank Center 1301 A Stre
Slide 30: Non-GAAP Financial Measures
Non-GAAP Financial Measures Tangible Book Value per Common Share $ in thousands 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 YTD Total Shareholders' Equity $706,878 $759,338 $764,008 $1,053,249 $1,228,175 $1,242,128 $1,251,012 $1,949,922 $2,033,649 $2,159,962 $2,347,607 $2,275,063 -Pr
Slide 31: Non-GAAP Financial Measures
Non-GAAP Financial Measures NIE/Average Assets $ in thousands 2017 2018 2019 2020 2021 1Q20 2Q20 3Q20 4Q20 1Q21 Reported Noninterest Expense (numerator A) $ 291,017 $ 340,490 $ 345,482 $ 334,519 $ 83,559 $ 84,271 $ 80,833 $ 85,115 $ 84,300 $ 83,559 (2) - FDIC Clawback (Expense)/Recap 54 — — — — — —
Slide 32: Non-GAAP Financial Measures
Non-GAAP Financial Measures Net Interest Margin $ in Thousands 2017 2018 2019 2020 2021 YTD 1Q20 2Q20 3Q20 4Q20 1Q21 Net Interest Income (tax equivalent) (numerator A) $ 380,107 $ 486,667 $ 501,770 $ 507,574 $ 125,889 $ 124,333 $ 123,692 $ 126,554 $ 132,995 $ 125,889 Adjustments to arrive at operati
Slide 33: Non-GAAP Financial Measures
Non-GAAP Financial Measures Operating Efficiency Ratio Tangible Common Equity $ in thousand 1Q20 2Q20 3Q20 4Q20 1Q21 $ in thousands 1Q20 2Q20 3Q20 4Q20 1Q21 Total Shareholders' Equity (numerator Noninterest expense (numerator A) $ 84,271 $ 80,833 $ 85,115 $ 84,300 $ 83,559 A) $2,213,602 $2,276,755 $
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