EX-99.2 4 dex992.htm INVESTOR SLIDE PRESENTATION Investor slide presentation
FDIC-Assisted Acquisition of
Columbia River Bank
Conference Call
January 25, 2010
Exhibit 99.2

Safe Harbor Statement:
This presentation includes forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995.  Such statements relate to future events and
expectations and involve known and unknown risks and uncertainties. Actual results may
differ materially from those currently expected or projected in these forward-looking
statements. These forward-looking statements are based on current expectations and
assumptions, and we assume no obligation to update these forward-looking statements. 
Investors are cautioned not to place undue reliance on these forward-looking statements. 
For risks relating to these forward-looking statements and factors that could cause actual
results to differ materially from those anticipated, please review Columbia’s latest Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q (including the “Risk Factors”,
“Business”
and
“Management’s
Discussion
and
Analysis”
sections
therein)
and
other
filings
with the Securities and Exchange Commission.
2

Columbia River Bank At-A-Glance
Founded: 1977; HQ: The Dalles, OR
Focus: Community driven with “Big
Bank Services”
Employees: 322
Branches: 21 branches in OR and WA
Columbia Banking System, Inc. (52)
Columbia Bancorp (21)
3

Overview
FDIC-Assisted Transaction:
$1.0 billion in assets (as of Sept. 30, 2009)
$980 million in deposits
Includes approximately $780 million in core deposits
Credit loss protection by the FDIC
$705 million of loans and real estate assets covered
FDIC assumes 80% of the first $206 million of losses
FDIC assumes 95% of losses above $206 million
Approvals:
All regulatory approvals received
Advisor:
Keefe, Bruyette & Woods
4

Strategic Rationale
Expands Columbia Banking System’s deposit franchise both in Washington
and Oregon
Acquisition adds $980 million of deposits and 14 branches in Oregon and 7 in Washington
Core deposits provide additional liquidity
Opportunity to reprice higher cost funds
Anticipate significant cost saves (approximately 25-30%)
Financially compelling for shareholders
Minimal credit exposure with low risk-weighting applied to acquired assets
Meets all internal financial hurdles for IRR and earnings accretion with conservative assumptions
5

Source:  FDIC as of June 30, 2009
Expanded Deposit Franchise
6
Materially increases market share in Oregon
Oregon: 26 branches; 5 in the greater Portland area
Washington:
50 branches
Oregon
2009
Rank
Institution (ST)
Type
Number
of
Branches
Total
Deposits in
Market
($000)
Total
Market
Share
(%)
1
U.S. Bancorp (MN)
Bank
191
9,007,285
17.12
2
Bank of America Corp. (NC)
Bank
90
7,771,200
14.77
3
Wells Fargo & Co. (CA)
Bank
127
6,956,638
13.22
4
JPMorgan Chase & Co. (NY)
Bank
105
4,425,418
8.41
5
Umpqua Holdings Corp. (OR)
Bank
72
3,733,485
7.10
6
KeyCorp (OH)
Bank
68
3,672,834
6.98
7
Sterling Financial Corp. (WA)
Bank
67
1,953,421
3.71
8
West Coast Bancorp (OR)
Bank
55
1,713,839
3.26
9
Cascade Bancorp (OR)
Bank
20
1,588,047
3.02
10
Washington Federal Inc. (WA)
Thrift
27
1,253,203
2.38
Pro Forma Company
26
1,028,961
1.95
11
BNP Paribas Group
31
964,618
1.83
12
Columbia Bancorp (OR)
Bank
16
812,587
1.54
13
Liberty Financial Group Inc. (OR)
Bank HC
16
782,921
1.49
14
PremierWest
Bancorp (OR)
Bank
24
750,553
1.43
15
Pacific Continental Corp. (OR)
Bank
11
672,157
1.28
16
Banner Corp. (WA)
Bank
16
566,051
1.08
17
South Valley Bancorp Inc. (OR)
Bank HC
20
528,271
1.00
18
Citizens Bancorp (OR)
Bank
14
321,945
0.61
19
First FS&LA of McMinnville (OR)
Savings Inst
8
287,883
0.55
20
Columbia Commercial Bancorp (OR)
Bank
4
284,720
0.54
27
Columbia Banking System Inc. (WA)
Bank
10
216,374
0.41
Other Instituitions
in Market (37)
130
4,356,394
8.24
Total For Institutions In Market
1,123
52,619,844
100.00
Washington
2009
Rank
Institution (ST)
Type
Number
of
Branches
Total
Deposits in
Market
($000)
Total
Market
Share
(%)
1
Bank of America Corp. (NC)
Bank
239
22,930,816
20.23
2
KeyCorp (OH)
Bank
154
9,717,304
8.57
3
JPMorgan Chase & Co. (NY)
Bank
189
9,671,136
8.53
4
Wells Fargo & Co. (CA)
Bank
159
9,632,965
8.50
5
U.S. Bancorp (MN)
Bank
186
9,556,409
8.43
6
Washington Federal Inc. (WA)
Thrift
75
4,791,363
4.23
7
Sterling Financial Corp. (WA)
Bank
70
4,666,735
4.12
8
Frontier Financial Corp. (WA)
Bank
47
3,102,541
2.74
9
Banner Corp. (WA)
Bank
66
2,976,945
2.63
10
W.T.B. Financial Corp. (WA)
Bank
25
2,576,425
2.27
Pro Forma Company
49
2,369,032
2.09
11
Columbia Banking System Inc. (WA)
Bank
42
2,188,696
1.93
12
HomeStreet
Inc. (WA)
Savings BHC
15
1,692,851
1.49
13
Yakima FS&LA (WA)
Savings Inst
10
1,226,540
1.08
14
City Bank (WA)
Bank
8
1,094,151
0.97
15
Peoples Bancorp (WA)
Bank HC
27
1,053,698
0.93
16
Cascade Financial Corp. (WA)
Bank
22
1,002,348
0.88
17
AmericanWest
Bancorp. (WA)
Bank
32
950,059
0.84
18
First Financial Northwest Inc (WA)
Thrift
1
946,014
0.83
19
First Citizens BancShares
Inc. (NC)
Bank
21
942,191
0.83
20
Cashmere Valley Financial Corp (WA)
Bank
10
935,455
0.83
60
Columbia Bancorp (OR)
Bank
7
180,336
0.16
Other Instituitions
in Market (91)
510
21,498,723
18.99
Total For Institutions In Market
1,916
113,333,701
100.00

Integration Has Already Begun
Seamless Transition
Open for business as usual
COLB representatives in each branch
Columbia Banking System management has formed a dedicated team to
lead the integration process
Credit risk management
7

Columbia River’s Deposit Mix
Average deposit costs:
1.97%
Total Deposits:         
$1 Billion
18%
Source: Call Report as of 9/30/09
Q3 2009
Savings
3.0%
Demand &
Other Non-
Interest
Bearing
19.6%
CD’s < $100K
26.4%
CD’s > $100K
22.2%
Now & Money
Market
28.7%
8

Columbia River’s Loan Portfolio
Average yield on loans:
5.92%
Total Loan Portfolio:     
$736 Million
18%
Source: Call Report as of 9/30/09
Q3 2009
CRE
30.3%
Constr. & LD
24.7%
Farm & Other
17.2%
Consumer
1.8%
C&I
14.9%
Multifamily RE
2.0%
1-4 Family RE
9.0%
9

10
Transaction Structure
Source: Call Report as of 9/30/09, excludes $7 million in BOLI, $17 million of Deferred
Tax Assets and $510 thousand of securities that the FDIC retained
$ in millions
Loans Acquired
$736
Other Assets
317
Total Assets Acquired
1,052
Deposits Assumed
1,010
Other Liabilities
24
Net Acquired Assets
18
Estimated Cash Received from FDIC
40

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Pro Forma Capital Ratios*
*Pro Forma capital ratios include estimated fair market value adjustments and are subject to change
COLB Actual
Pro Forma*
9/30/2009
9/30/2009
Leverage Capital Ratio
14.79
             
%
10.90
             
%
Tier 1 Risk Based Capital Ratio
17.78
             
16.05
             
Total Risk Based Capital Ratio
19.06
             
17.33
             
Tangible Common Equity / Tangible Assets
11.52
             
8.50
               
Tangible Equity / Tangible Assets
13.93
             
10.32
             

Enhances Columbia Banking System
Increases Profitability
Expands company footprint
Adds approximately $780 million of core deposits
Improves efficiency
Enlarges customer base
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