Columbia Banking System, Inc. · NASDAQ:COLB
Columbia Banking System — Merger or Acquisition (May 2007)
24 slides from Columbia Banking System's merger presentation, May 10, 2007
Slide 1: Columbia Banking System
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Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation may include forward-looking statements. Actual results may differ materially from those currently expected. Additional information concerning factors that could cause such differences is contained in Columbia’s Annual Report on Form 10-K and other filings with
Slide 3: Full-service commercial bank
Full-service commercial bank South Sound area expansion began in August 1993 Since 1993, grown from 4 to 40 branches in Washington and NW Oregon Assets have grown from $211 million to $2.7 billion, with over 85% de novo growth 21% compounded net income growth for last 5 years Columbia Banking System
Slide 4: The Northwest Economy
The Northwest Economy Diversified economy Solid real estate and commercial business loan growth Good housing market; low default rate Job market growth tops national pace Increase in personal income Strong growth opportunities
Slide 5: Economic Drivers
Economic Drivers
Slide 6: Columbia Franchise
Columbia Franchise Columbia Bank Washington Pierce County King County Cowlitz County Kitsap County Thurston County Bank of Astoria Oregon Clatsop County Tillamook County 33% 13% 16% 1% 6% Deposit Market Share Source: FDIC Annual Deposit Report as of June 30, 2006
Slide 7: Branch map
‘Okanogan| Clallam Jefferson Branches Colmbia Banking System, inc. (40 branches) Mountain Bank Holding Company (6 branches) Town Center Bancorp (5 branches} 000 Skamania Klickitat Sherman Wasco Wheeler O62. Si. 2007 SNL Financial L¢
Slide 8: Pro Forma Consolidated Overview
Pro Forma Consolidated Overview $312 $2,335 $1,963 $2,945 52 Equity ($ mil) Deposits ($ mil) Net Loans ($ mil) Assets ($ mil) Branches Columbia Banking System, Inc. December 31, 2006
Slide 9: Building On Our Strengths
Building On Our Strengths Vibrant Pacific Northwest markets Ability to leverage strong retail system Broad-based products & services Diversified loan portfolio Decision-making close to clients Experienced relationship managers Measurable excellence in customer service
Slide 10: Success Strategy
Success Strategy Strong branch network; core deposits represent 73% of total deposits Expand branch footprint -- de novo expansion and accretive acquisitions in the Pacific Northwest Fee income growth Become THE community bank in all the communities we serve. Build shareholder value
Slide 11: Financial Performance
Financial Performance
Slide 12: Net Income
$0 $5 $10 $15 $20 $25 $30 $35 Q1 '07 Net Income In millions Note: The Bank of Astoria acquisition closed on October 1, 2004. 21% CAGR (2002 - 2006) $29.6 $22.5 $10.9 $19.5 $32.1 $7.3
Slide 13: Earnings Per Share Growth
$0.00 $0.50 $1.00 $1.50 $2.00 Q1 '07 Earnings Per Share Growth $1.87 $1.52 $0.78 $1.37 $1.99 (Diluted) $0.45
Slide 14: Dividends Per Share
$0.00 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 $0.18 $0.20 Q1 '05 Q2 '05 Q3 '05 Q4 '05 Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Dividends Per Share $0.07 $0.17
Slide 15: Total Revenue
Total Revenue $- $20 $40 $60 $80 $100 $120 $140 Q1 '07 Net Interest Income Noninterest Income (in millions) $115.7 $94.2 $84.3 $86.7 $122.4 $30.9
Slide 16: Efficiency Ratio
50% 55% 60% 65% 70% 2002 2003 2004 2005 2006 Q1 '07 Efficiency Ratio 63.20% 61.20% 62.86% 64.46% 58.95% 63.39%
Slide 17: Profitability Measures
Profitability Measures 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% Return on Average Assets Note: The Bank of Astoria acquisition closed on October 1, 2004. 0.0% 3.0% 6.0% 9.0% 12.0% 15.0% Return on Average Equity
Slide 18: Net Interest Margin
3.50% 3.75% 4.00% 4.25% 4.50% 4.75% 2002 2003 2004 2005 2006 1Q 2007 Net Interest Margin 4.19% 4.44% 4.23% 4.50% 4.49% 4.37%
Slide 19: Deposits
Deposits $2.08 Billion at March 31, 2007 $0 $300 $600 $900 $1,200 $1,500 $1,800 $2,100 Q1 '07 Core Deposits Other ($ in 000s) CDs Savings Money Market Interest Checking Checking 27.0% 21.5% 20.7% 25.5% 5.3% Average Cost of Deposits: 3.11%
Slide 20: Loans
Loans $1.83 Billion at March 31, 2007 Commercial Business Other Commercial Real Estate (In millions) 44.7% 18.2% 37.1% Average Loan Yield: 7.82% $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 Q1 '07
Slide 21: NPL / Total Loans
NPL / Total Loans Strong Asset Quality 0.00% 0.50% 1.00% 1.50% Q1 '07 Columbia Peer Group 0.31% 0.62% 1.45% 1.23% 0.20% 0.18%
Slide 22: Columbia Banking System, Inc.
Columbia Banking System, Inc. Strong capital position (RBC = 12.70% Strong credit quality (NPL/total loans: 0.18%) Strong liquidity (loan to deposit ratio: 88%) Low-cost deposit gathering (avg. cost: 3.11%)
Slide 23: COLB Stock Price Performance
1/1/04 6/4/04 11/8/04 4/14/05 9/16/05 2/21/06 7/27/06 12/29/06 COLB Stock Price Performance Relative Stock Price Performance – Last Three Years S&P 500 Index 27.6% COLB 70.3% NASDAQ BANKS 17.9% Source: Factset as of 12/31/06. COLB NASDAQ / Banking Index S&P 500 Index
Slide 24: COLB contacts
COLB Melanie J. Dressel President & Chief Executive Officer P.O. Box 2156 Tacoma, WA 98401-2156 253-305-1911 [email protected] Gary R. Schminkey EVP & Chief Financial Officer P.O. Box 2156 Tacoma, WA 98401-2156 253-305-1966 [email protected] * * * Columbia Note Regarding Forward Looking
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