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$96 million $204 million $0.40 $0.85Net income Operating net income 1 Earnings per common share – Operating earnings per diluted common share – diluted 1
CEO Commentary”Our third quarter performance reflects meaningful progress and growing momentum,” said Clint Stein, President and CEO. “We closed our strategic acquisition of Pacific Premier, which completes our Western footprint and enhances our ability to generate top-quartile returns. While reported results were impacted by acquisition-related items, core profitability remained strong. Customer deposit growth supported balance sheet optimization, as we organically reduced transactional loans and non-core funding. Underscoring confidence in our strategy and an outlook for continued excess capital generation, our Board of Directors authorized a $700 million share repurchase program. As we integrate new capabilities and deepen both new and existing customer relationships, we remain focused on delivering consistent, repeatable performance while positioning the company for sustainable, relationship-driven growth and capital return to our shareholders.”- Clint Stein, President and CEO of Columbia Banking System, Inc.
3Q25HIGHLIGHTS (COMPARED TO 2Q25)Net Interest • Net interest income increased by $59 million from the prior quarter, due to one month operating as a combined company and a favorable shift into lower-cost funding sources.Income andNIM • Net interest margin was 3.84%, up 9 basis points from the prior quarter, due to an increase in customer deposits and corresponding reduction in higher-cost funding sources. The net interest margin was also impacted by one month operating as a combined company in the current period.Non-Interest • Non-interest income increased by $12 million. Excluding the impact of fair value and hedges,1 non-interest income increased by $6 million, due to one month operating as a combined company.Income andExpense • Non-interest expense increased by $115 million, primarily due to merger and restructuring expense of $87 million and one month operating as a combined company.Credit • Net charge-offs were 0.22% of average loans and leases (annualized), compared to 0.31% in the prior quarter.Quality • Provision expense was $70million and driven by the acquisition of Pacific Premier. • Non-performing assets to total assets was 0.29%, compared to 0.35% as of June30, 2025.Capital • Estimated total risk-based capital ratio of 13.4% and estimated common equity tier 1 risk-based capital ratio of 11.6%. • Declared a quarterly cash dividend of $0.36 per common share on August 15, 2025, which was paid September 15, 2025.Notable • Our third small business and retail campaign of 2026 is ongoing. Through mid-October, these campaigns have brought approximately $1.1 billion in new deposits to the bank.Items • Our Board of Directors authorized the repurchase of up to $700 million of common stock under a new repurchase plan.
3Q25KEY FINANCIAL DATAPERFORMANCE METRICS 3Q25 2Q25 3Q24Return on average assets 0.67% 1.19% 1.12%Return on average common equity 6.19% 11.56% 11.36%Return on average tangible common equity 1 8.58% 16.03% 16.34%Operating return on average assets 1 1.42% 1.25% 1.10%Operating return on average common equity 1 13.15% 12.16% 11.15%Operating return on average tangible common equity 1 18.24% 16.85% 16.04%Net interest margin 3.84% 3.75% 3.56%Efficiency ratio 67.29% 54.29% 54.56%Operating efficiency ratio, as adjusted 1 52.32% 51.79% 53.89%INCOME STATEMENT 3Q25 2Q25 3Q24($ in millions, excl. per share data)Net interest income $505 $446 $430Provision for credit losses $70 $30 $29Non-interest income $77 $65 $66Non-interest expense $393 $278 $271Pre-provision net revenue 1 $189 $233 $225Operating pre-provision net revenue 1 $270 $242 $221Earnings per common share – diluted $0.40 $0.73 $0.70Operating earnings per common share – diluted 1 $0.85 $0.76 $0.69Dividends paid per share $0.36 $0.36 $0.36BALANCE SHEET 3Q25 2Q25 3Q24Total assets $67.5B $51.9B $51.9BLoans and leases $48.5B $37.6B $37.5BDeposits $55.8B $41.7B $41.5BBook value per common share $26.04 $25.41 $25.17Tangible book value per common share 1 $18.57 $18.47 $17.81
Acquisition and Branding Update Columbia Banking System, Inc. (“Columbia,” the “Company,” “we,” or “our”) closed its acquisition of Pacific Premier Bancorp, Inc. (“Pacific Premier”) on August 31, 2025, elevating Columbia's deposit market share to a top-10 position in Southern California. The acquisition completes our Western footprint and strengthens our presence as a leading financial institution in the western United States. Our integration efforts are progressing smoothly, and we remain on track to integrate systems in the first quarter of 2026.
Columbia Bank began serving customers under its unified name and brand effective September 1, 2025. The strategic transition streamlines our identity across all business lines, including Columbia Wealth Advisors, Columbia Trust Company, Columbia Private Bank, and Columbia Private Trust, making it easier for customers to recognize and engage with the full breadth of our services.
Share Repurchase Authorization Announcement Columbia's Board of Directors has authorized the repurchase of up to $700 million of common stock under a new repurchase plan. COLB common share repurchases may be executed in the open market or through privately negotiated transactions, including under Rule 10b5-1 plans. The timing and exact amount of common share repurchases will be at the discretion of senior management and subject to various factors, including, without limitation, Columbia's capital position, financial performance, market conditions, and regulatory considerations. The repurchase program does not obligate Columbia to purchase any particular number of shares. The authorization will expire on November 30, 2026, but may be suspended, terminated or modified by the Board at any time.
“Our excess capital position as of September 30, 2025 supports the return of additional capital to our shareholders through share repurchases,” commented Mr. Stein. “In addition, we expect to produce exceptional profitability, which will result in meaningful capital generation over the coming quarters. Even as we expand our capital return platform, we are continuing to drive organic growth as we optimize the balance sheet, in line with our commitment to enhancing long-term shareholder value.”
Net Interest Income Net interest income was $505 million for the third quarter of 2025, up $59 million from the prior quarter. The increase largely reflects the impact of one month operating as a combined company in the current period. Lower interest expense due to a favorable shift in Columbia's funding mix also contributed to the increase.
Columbia's net interest margin was 3.84% for the third quarter of 2025, up9 basis points from the second quarter of 2025. Net interest margin benefited from lower funding costs, due to an increase in customer deposits and corresponding reduction in higher-cost funding sources. The net interest margin was also impacted by one month operating as a combined company in the current period.
The cost of interest-bearing deposits decreased 9 basis points from the prior quarter to 2.43% for the third quarter of 2025, compared to 2.29% for the month of September and 2.20% as of September 30, 2025, reflecting our proactive management of deposit rates ahead of and following the 25-basis point reduction in the federal funds rate in mid-September and a reduction in higher-cost brokered deposits during the month. The cost of interest-bearing deposits in September also benefited from the amortization of a premium related to Pacific Premier's time deposits, which will continue through December 31, 2025 at an equivalent monthly amount. The amortization contributed $4 million to net interest income during September, and favorably impacted deposit rates. Excluding this impact, the cost of interest-bearing deposits was 2.41% for the month of September and 2.32% as of September 30, 2025.
Columbia's cost of interest-bearing liabilities decreased 13 basis points from the prior quarter to 2.65% for the third quarter of 2025, compared to 2.47% for the month of September and 2.39% as of September 30, 2025. Excluding the previously discussed premium amortization, the cost of interest-bearing liabilities was 2.58% for the month of September and 2.50% as of September 30, 2025. We expect the premium to be fully amortized by December 31, 2025. Please refer to the Q3 2025 Earnings Presentation for additional net interest margin change details and interest rate sensitivity information.
Non-interest Income Non-interest income was $77 million for the third quarter of 2025, up $12 million from the prior quarter. The increase was driven by quarterly changes in fair value adjustments and mortgage servicing rights (“MSR”) hedging activity, due to interest rate fluctuations during the quarter, collectively resulting in a net fair value gain of $5 million in the third quarter compared to a net fair value loss of $1 million in the second quarter, as detailed in our non-GAAP disclosures. Excluding these items, non-interest income was up $6 million2 between periods, due to one month operating as a combined company.
Non-interest Expense Non-interest expense was $393 million for the third quarter of 2025, up $115 million from the prior quarter, due to higher merger expense and one month operating as a combined company. Excluding merger and restructuring expense and a$1 million reversal of prior FDIC assessment expense, non-interest expense was $307 million2, up $37million from the prior quarter, as Pacific Premier contributed $34 million to the quarter's run rate. Other miscellaneous expenses also trended higher as we reinvest prior cost savings into our franchise. Please refer to the Q3 2025 Earnings Presentation for additional expense details.
Balance Sheet Total consolidated assets were $67.5 billion as of September30, 2025, up from $51.9 billion as of June30, 2025, due to the addition of Pacific Premier, partially offset by balance sheet optimization activity in the quarter. Cash and cash equivalents were $2.3 billion as of September30, 2025, up from $1.9 billion as of June30, 2025. Including secured off-balance sheet lines of credit, total available liquidity was$26.7 billion as of September30, 2025, representing 40% of total assets, 48% of total deposits, and 130% of uninsured deposits. Available-for-sale securities, which are held on balance sheet at fair value, were $11.0 billion as of September30, 2025, an increase of $2.4 billion relative to June30, 2025, as securities acquired from Pacific Premier and an increase in the fair value of the portfolio was partially offset by net sales during the quarter. Please refer to the Q3 2025 Earnings Presentation for additional details related to our securities portfolio and liquidity position.
Gross loans and leases were $48.5 billion as of September30, 2025, an increase of $10.8 billion relative to June30, 2025, due to the addition of Pacific Premier, partially offset by run-off in commercial development and transactional loans, as well as the transfer of $282 million in residential real estate loans to the held-for-sale portfolio. Excluding these factors, the loan portfolio was essentially unchanged between June 30, 2025 and September 30, 2025. “Our teams continue to focus on new client acquisition and relationship-building, contributing to the 19% increase in new loan originations for the current quarter compared to the prior quarter,” commented Chris Merrywell, President of Columbia Bank. “We continue to prioritize balance sheet optimization and profitability, as we reduce our exposure to non-relationship loans.” Please refer to the Q3 2025 Earnings Presentation for additional details related to our loan portfolio, which include underwriting characteristics, the composition of our commercial portfolios, and disclosure related to transactional loans.
Total deposits were $55.8 billion as of September30, 2025, an increase of $14.0 billion relative to June30, 2025, due to the addition of Pacific Premier and organic growth in customer deposits, partially offset by lower brokered deposits. “Customer deposit growth approached $800 million organically during the quarter, reflecting new customer activity and a seasonal lift in balances,” stated Mr. Merrywell. “Our focus on relationship banking directly contributed to new deposit generation in the quarter, which reduced our reliance on wholesale funding sources.” Brokered deposits and borrowings were $4.8 billion as of September30, 2025, a decrease of $1.9 billion relative to June30, 2025. Please refer to the Q3 2025 Earnings Presentation for additional details related to deposit characteristics and flows.
Credit Quality The allowance for credit losses (“ACL”) was $492 million, or 1.01% of loans and leases, as of September30, 2025, compared to $439 million, or 1.17% as of June30, 2025. The $53 million increase in the ACL includes the addition of $5 million related to Pacific Premier purchased credit deteriorated (“PCD”) loans, which was booked at acquisition closing and did not affect the income statement. The provision for credit losses was $70 million for the third quarter of 2025 and includes an initial provision for acquired non-PCD loans and unfunded commitments and a recalibration of our models to incorporate historical Pacific Premier data into our ACL assumptions, where applicable. Excluding these items, our provision expense was $0 for the third quarter of 20252.
Net charge-offs were 0.22% of average loans and leases (annualized) for the third quarter of 2025, compared to 0.31% for the second quarter of 2025. Net charge-offs in the FinPac portfolio were $16 million in the third quarter, compared to $14 million in the second quarter. Net charge-offs excluding the FinPac portfolio were $6 million in the third quarter, compared to $15 million in the second quarter. Non-performing assets were $199 million, or 0.29% of total assets, as of September30, 2025, compared to $180 million, or 0.35% of total assets, as of June30, 2025. Please refer to the Q3 2025 Earnings Presentation for additional details related to the allowance for credit losses and other credit trends.
Capital Columbia's book value per common share was $26.04 as of September 30, 2025, compared to $25.41 as of June 30, 2025. The increase reflects common shares issued and exchanged as a result of the acquisition, net capital generation from operations, and a favorable change in accumulated other comprehensive (loss) income (“AOCI”) to $(268) million as of September 30, 2025, compared to $(333) million as of the prior quarter-end. The change in AOCI is due primarily to a decrease in the tax-effected net unrealized loss on available-for-sale securities to $240 million as of September 30, 2025, compared to $311 million as of June 30, 2025. Tangible book value per common share3 was $18.57 as of September 30, 2025, compared to $18.47 as of June 30, 2025. The items discussed above offset 1.7% tangible book value dilution as a result of the Pacific Premier acquisition, resulting in net tangible book value expansion during the quarter.
Columbia's estimated total risk-based capital ratio was 13.4% and its estimated common equity tier 1 risk-based capital ratio was 11.6% as of September30, 2025, compared to 13.0% and 10.8%, respectively, as of June30, 2025. Columbia remains above current “well-capitalized” regulatory minimums. The regulatory capital ratios as of September30, 2025 are estimates, pending completion and filing of Columbia's regulatory reports.
Earnings Presentation and Conference Call Information Columbia's Q3 2025 Earnings Presentation provides additional disclosure. A copy will be available on our investor relations page: www.columbiabankingsystem.com.
Columbia will host its third quarter 2025 earnings conference call on October 30, 2025 at 2:00 p.m. PT (5:00 p.m. ET). During the call, Columbia's management will provide an update on recent activities and discuss its third quarter 2025 financial results. Participants may join the audiocast or register for the call using the link below to receive dial-in details and their own unique PINs. It is recommended you join 10 minutes prior to the start time.
Join the audiocast: https://edge.media-server.com/mmc/p/i6z93t5w/ Register for the call:https://register-conf.media-server.com/register/BIde1295f868b04a969240d44867cade1a Access the replay through Columbia's investor relations page:https://www.columbiabankingsystem.com/news-market-data/event-calendar/default.aspx
About Columbia Banking System, Inc. Columbia Banking System, Inc. (Nasdaq: COLB) is headquartered in Tacoma, Washington and is the parent company of Columbia Bank, an award-winning western U.S. regional bank. Columbia Bank is the largest bank headquartered in the Northwest and one of the largest banks headquartered in the West with locations in Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah, and Washington. Columbia Bank combines the resources, sophistication, and expertise of a national bank with a commitment to deliver superior, personalized service. The bank supports consumers and businesses through a full suite of services, including retail and commercial banking, Small Business Administration lending, institutional and corporate banking, and equipment leasing. Columbia Bank customers also have access to comprehensive investment and wealth management expertise as well as healthcare and private banking through Columbia Wealth Management. Learn more at www.columbiabankingsystem.com.
1 “Non-GAAP” financial measure. See GAAP to Non-GAAP Reconciliation for additional information.2 “Non-GAAP” financial measure. See GAAP to Non-GAAP Reconciliation for additional information.3 “Non-GAAP” financial measure. See GAAP to Non-GAAP Reconciliation for additional information.
Forward-Looking Statements This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “target,” “projects,” “outlook,” “forecast,” “will,” “may,” “could,” “should,” “can” and similar references to future periods. In this press release we make forward-looking statements about strategic and growth initiatives and the result of such activity. Risks and uncertainties that could cause results to differ from forward-looking statements we make include, without limitation: current and future economic and market conditions, including the effects of declines in housing and commercial real estate prices, high unemployment rates, continued or renewed inflation and any recession or slowdown in economic growth particularly in the western United States; economic forecast variables that are either materially worse or better than end of quarter projections and deterioration in the economy that could result in increased loan and lease losses, especially those risks associated with concentrations in real estate related loans; risks related to our acquisition of Pacific Premier (the “Transaction”), including, among others, (i) diversion of management's attention from ongoing business operations and opportunities, (ii) cost savings and any revenue or expense synergies from the Transaction may not be fully realized or may take longer than anticipated to be realized, (iii) deposit attrition, customer or employee loss, and/or revenue loss as a result of the Transaction, and (iv) shareholder litigation that could negatively impact our business and operations; the impact of proposed or imposed tariffs by the U.S. government and retaliatory tariffs proposed or imposed by U.S. trading partners that could have an adverse impact on customers; our ability to effectively manage problem credits; the impact of bank failures or adverse developments at other banks on general investor sentiment regarding the liquidity and stability of banks; changes in interest rates that could significantly reduce net interest income and negatively affect asset yields and valuations and funding sources; changes in the scope and cost of FDIC insurance and other coverage; our ability to successfully implement efficiency and operational excellence initiatives; our ability to successfully develop and market new products and technology; changes in laws or regulations; potential adverse reactions or changes to business or employee relationships; the effect of geopolitical instability, including wars, conflicts and terrorist attacks; and natural disasters and other similar unexpected events outside of our control. We also caution that the amount and timing of any future common stock dividends or repurchases will depend on the earnings, cash requirements and financial condition of Columbia, market conditions, capital requirements, applicable law and regulations (including federal securities laws and federal banking regulations), and other factors deemed relevant by Columbia's Board of Directors, and may be subject to regulatory approval or conditions.
TABLE INDEX PageConsolidated Statements of Income 8Consolidated Balance Sheets 9Financial Highlights 11Loan & Lease Portfolio Balances and Mix 12Deposit Portfolio Balances and Mix 14Credit Quality – Non-performing Assets 15Credit Quality – Allowance for Credit Losses 16Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates 18Residential Mortgage Banking Activity 20Purchase Price Allocation 22GAAP to Non-GAAP Reconciliation 23
Columbia Banking System, Inc.Consolidated Statements of Income(Unaudited) Quarter Ended % Change($ in millions, shares in thousands) Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Seq. Year 2025 2025 2025 2024 2024 Quarter over YearInterest income:Loans and leases $ 619 $ 564 $ 553 $ 572 $ 589 10% 5%Interest and dividends on investments:Taxable 89 80 69 75 76 11% 17%Exempt from federal income tax 8 7 7 7 7 14% 14%Dividends 4 3 3 3 2 33% 100%Temporary investments and interest bearing deposits 20 16 16 19 25 25% (20)%Total interest income 740 670 648 676 699 10% 6%Interest expense:Deposits 195 180 177 189 208 8% (6)%Securities sold under agreement to repurchase and 1 1 1 1 1 -% -%federal funds purchasedBorrowings 30 35 36 40 50 (14)% (40)%Junior and other subordinated debentures 9 8 9 9 10 13% (10)%Total interest expense 235 224 223 239 269 5% (13)%Net interest income 505 446 425 437 430 13% 17%Provision for credit losses 70 30 27 28 29 133% 141%Non-interest income:Service charges on deposits 21 20 19 18 18 5% 17%Card-based fees 15 14 13 15 15 7% -%Financial services and trust revenue 9 6 5 5 5 50% 80%Residential mortgage banking revenue, net 7 8 9 7 7 (13)% -%Gain (loss) on investment securities, net 2 – 2 (1) 2 nm -%Loss on loan and lease sales, net – – – (2) – nm nmGain (loss) on loans held for investment, at fair value 4 – 7 (7) 9 nm (56)%BOLI income 6 5 5 5 5 20% 20%Other income 13 12 6 10 5 8% 160%Total non-interest income 77 65 66 50 66 18% 17%Non-interest expense:Salaries and employee benefits 171 155 145 142 147 10% 16%Occupancy and equipment, net 54 47 48 47 45 15% 20%Intangible amortization 31 26 28 29 29 19% 7%FDIC assessments 8 8 8 8 9 -% (11)%Merger and restructuring expense 87 8 14 2 2 nm nmLegal settlement – – 55 – – nm nmOther expenses 42 34 42 39 39 24% 8%Total non-interest expense 393 278 340 267 271 41% 45%Income before provision for income taxes 119 203 124 192 196 (41)% (39)%Provision for income taxes 23 51 37 49 50 (55)% (54)%Net income $ 96 $ 152 $ 87 $ 143 $ 146 (37)% (34)%Weighted average basic shares outstanding (in 237,838 209,125 208,800 208,548 208,545 14% 14%thousands)Weighted average diluted shares outstanding (in 238,925 209,975 210,023 209,889 209,454 14% 14%thousands)Earnings per common share – basic $ 0.40 $ 0.73 $ 0.41 $ 0.69 $ 0.70 (45)% (43)%Earnings per common share – diluted $ 0.40 $ 0.73 $ 0.41 $ 0.68 $ 0.70 (45)% (43)%nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as “nm.”
Columbia Banking System, Inc.Consolidated Statements of Income(Unaudited) Nine Months Ended % Change($ in millions, shares in thousands) Sep 30, 2025 Sep 30, 2024 Year over YearInterest income:Loans and leases $ 1,736 $ 1,748 (1)%Interest and dividends on investments:Taxable 238 230 3%Exempt from federal income tax 22 21 5%Dividends 10 9 11%Temporary investments and interest bearing deposits 52 71 (27)%Total interest income 2,058 2,079 (1)%Interest expense:Deposits 552 614 (10)%Securities sold under agreement to repurchase and federal funds purchased 3 4 (25)%Borrowings 101 150 (33)%Junior and other subordinated debentures 26 30 (13)%Total interest expense 682 798 (15)%Net interest income 1,376 1,281 7%Provision for credit losses 127 78 63%Non-interest income:Service charges on deposits 60 53 13%Card-based fees 42 42 -%Financial services and trust revenue 20 15 33%Residential mortgage banking revenue, net 24 17 41%Gain on investment securities, net 4 1 300%Loss on loan and lease sales, net – (1) nmGain (loss) on loans held for investment, at fair value 11 (3) nmBOLI income 16 14 14%Other income 31 23 35%Total non-interest income 208 161 29%Non-interest expense:Salaries and employee benefits 471 447 5%Occupancy and equipment, net 149 135 10%Intangible amortization 85 90 (6)%FDIC assessments 24 33 (27)%Merger and restructuring expense 109 21 419%Legal settlement 55 – nmOther expenses 118 112 5%Total non-interest expense 1,011 838 21%Income before provision for income taxes 446 526 (15)%Provision for income taxes 111 136 (18)%Net income $ 335 $ 390 (14)%Weighted average basic shares outstanding (in thousands) 218,694 208,435 5%Weighted average diluted shares outstanding (in thousands) 219,712 209,137 5%Earnings per common share – basic $ 1.53 $ 1.87 (18)%Earnings per common share – diluted $ 1.53 $ 1.87 (18)%nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as “nm.”
Columbia Banking System, Inc.Consolidated Balance Sheets(Unaudited) % Change($ in millions, shares in thousands) Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Seq. Year Quarter over YearAssets:Cash and due from banks $ 535 $ 608 $ 591 $ 497 $ 591 (12)% (9)%Interest-bearing cash and temporary 1,808 1,334 1,481 1,382 1,520 36% 19%investmentsInvestment securities:Equity and other, at fair value 112 93 92 78 80 20% 40%Available for sale, at fair value 11,013 8,653 8,229 8,275 8,677 27% 27%Held to maturity, at amortized cost 18 2 2 2 2 nm nmLoans held for sale 340 66 65 72 67 415% 407%Loans and leases 48,462 37,637 37,616 37,681 37,503 29% 29%Allowance for credit losses on loans and (473) (421) (421) (425) (420) 12% 13%leasesNet loans and leases 47,989 37,216 37,195 37,256 37,083 29% 29%Restricted equity securities 119 161 125 150 116 (26)% 3%Premises and equipment, net 416 357 345 349 338 17% 23%Operating lease right-of-use assets 156 110 107 111 106 42% 47%Goodwill 1,481 1,029 1,029 1,029 1,029 44% 44%Other intangible assets, net 754 430 456 484 513 75% 47%Residential mortgage servicing rights, at fair 101 103 106 108 102 (2)% (1)%valueBank-owned life insurance 1,199 705 701 694 691 70% 74%Deferred tax asset, net 392 299 311 359 286 31% 37%Other assets 1,063 735 684 730 708 45% 50%Total assets $ 67,496 $ 51,901 $ 51,519 $ 51,576 $ 51,909 30% 30%Liabilities:DepositsNon-interest-bearing $ 17,810 $ 13,220 $ 13,414 $ 13,308 $ 13,534 35% 32%Interest-bearing 37,961 28,523 28,804 28,413 27,981 33% 36%Total deposits 55,771 41,743 42,218 41,721 41,515 34% 34%Securities sold under agreements to 167 191 192 237 184 (13)% (9)%repurchaseBorrowings 2,300 3,350 2,550 3,100 3,650 (31)% (37)%Junior subordinated debentures, at fair value 331 323 321 331 312 2% 6%Junior and other subordinated debentures, 107 108 108 108 108 (1)% (1)%at amortized costOperating lease liabilities 168 125 121 126 121 34% 39%Other liabilities 862 719 771 835 745 20% 16%Total liabilities 59,706 46,559 46,281 46,458 46,635 28% 28%Shareholders' equity:Common stock 8,189 5,826 5,823 5,817 5,812 41% 41%Accumulated deficit (131) (151) (227) (237) (304) (13)% (57)%Accumulated other comprehensive loss (268) (333) (358) (462) (234) (20)% 15%Total shareholders' equity 7,790 5,342 5,238 5,118 5,274 46% 48%Total liabilities and shareholders' equity $ 67,496 $ 51,901 $ 51,519 $ 51,576 $ 51,909 30% 30%Common shares outstanding at period end (in 299,147 210,213 210,112 209,536 209,532 42% 43%thousands)nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as “nm.”
Columbia Banking System, Inc.Financial Highlights(Unaudited) Quarter Ended % Change Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Seq. Year over 2025 2025 2025 2024 2024 Quarter YearPer Common Share Data:Dividends $ 0.36 $ 0.36 $ 0.36 $ 0.36 $ 0.36 -% -%Book value $ 26.04 $ 25.41 $ 24.93 $ 24.43 $ 25.17 2% 3%Tangible book value (1) $ 18.57 $ 18.47 $ 17.86 $ 17.20 $ 17.81 1% 4%Performance Ratios:Efficiency ratio (2) 67.29% 54.29% 69.06% 54.61% 54.56% 13.00 12.73Non-interest expense to average assets (1) 2.74% 2.16% 2.68% 2.06% 2.08% 0.58 0.66Return on average assets (“ROAA”) 0.67% 1.19% 0.68% 1.10% 1.12% (0.52) (0.45)Pre-provision net revenue (“PPNR”) ROAA (1) 1.32% 1.81% 1.19% 1.70% 1.72% (0.49) (0.40)Return on average common equity 6.19% 11.56% 6.73% 10.91% 11.36% (5.37) (5.17)Return on average tangible common equity (1) 8.58% 16.03% 9.45% 15.41% 16.34% (7.45) (7.76)Performance Ratios – Operating: (1)Operating efficiency ratio, as adjusted (1),(2) 52.32% 51.79% 55.11% 52.51% 53.89% 0.53 (1.57)Operating non-interest expense to average assets (1) 2.14% 2.10% 2.13% 2.03% 2.05% 0.04 0.09Operating ROAA (1) 1.42% 1.25% 1.10% 1.15% 1.10% 0.17 0.32Operating PPNR ROAA (1) 1.89% 1.88% 1.67% 1.77% 1.69% 0.01 0.20Operating return on average common equity (1) 13.15% 12.16% 10.87% 11.40% 11.15% 0.99 2.00Operating return on average tangible common equity (1) 18.24% 16.85% 15.26% 16.11% 16.04% 1.39 2.20Average Balance Sheet Yields, Rates, & Ratios:Yield on loans and leases 5.96% 6.00% 5.92% 6.05% 6.22% (0.04) (0.26)Yield on earning assets (2) 5.62% 5.62% 5.49% 5.63% 5.78% – (0.16)Cost of interest bearing deposits 2.43% 2.52% 2.52% 2.66% 2.95% (0.09) (0.52)Cost of interest bearing liabilities 2.65% 2.78% 2.80% 2.98% 3.29% (0.13) (0.64)Cost of total deposits 1.66% 1.73% 1.72% 1.80% 1.99% (0.07) (0.33)Cost of total funding (3) 1.87% 1.98% 1.99% 2.09% 2.32% (0.11) (0.45)Net interest margin (2) 3.84% 3.75% 3.60% 3.64% 3.56% 0.09 0.28Average interest bearing cash / Average interest earning assets 3.41% 2.97% 3.13% 3.29% 3.74% 0.44 (0.33)Average loans and leases / Average interest earning assets 78.39% 78.64% 78.93% 78.42% 77.91% (0.25) 0.48Average loans and leases / Average total deposits 88.39% 90.07% 90.36% 89.77% 90.42% (1.68) (2.03)Average non-interest bearing deposits / Average total deposits 31.41% 31.39% 31.75% 32.45% 32.52% 0.02 (1.11)Average total deposits / Average total funding (3) 93.47% 91.92% 91.86% 91.88% 90.25% 1.55 3.22Select Credit & Capital Ratios:Non-performing loans and leases to total loans and leases 0.40% 0.47% 0.47% 0.44% 0.44% (0.07) (0.04)Non-performing assets to total assets 0.29% 0.35% 0.35% 0.33% 0.32% (0.06) (0.03)Allowance for credit losses to loans and leases 1.01% 1.17% 1.17% 1.17% 1.17% (0.16) (0.16)Total risk-based capital ratio (4) 13.4% 13.0% 12.9% 12.8% 12.5% 0.40 0.90Common equity tier 1 risk-based capital ratio (4) 11.6% 10.8% 10.6% 10.5% 10.3% 0.80 1.30
(1)See GAAP to Non-GAAP Reconciliation.(2) Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate.(3)Total funding = total deposits + total borrowings.(4) Estimated holding company ratios.
Columbia Banking System, Inc.Financial Highlights(Unaudited) Nine Months Ended % Change Sep 30, 2025 Sep 30, 2024 Year over YearPer Common Share Data:Dividends $ 1.08 $ 1.08 -%Performance Ratios:Efficiency ratio (2) 63.66% 57.99% 5.67Non-interest expense to average assets (1) 2.54% 2.15% 0.39Return on average assets 0.84% 1.00% (0.16)PPNR ROAA (1) 1.44% 1.55% (0.11)Return on average common equity 8.06% 10.42% (2.36)Return on average tangible common equity (1) 11.22% 15.27% (4.05)Performance Ratios – Operating: (1)Operating efficiency ratio, as adjusted (1),(2) 53.07% 54.80% (1.73)Operating non-interest expense to average assets (1) 2.12% 2.07% 0.05Operating ROAA (1) 1.26% 1.07% 0.19Operating PPNR ROAA (1) 1.81% 1.65% 0.16Operating return on average common equity (1) 12.10% 11.17% 0.93Operating return on average tangible common equity (1) 16.85% 16.36% 0.49Average Balance Sheet Yields, Rates, & Ratios:Yield on loans and leases 5.96% 6.18% (0.22)Yield on earning assets (2) 5.58% 5.76% (0.18)Cost of interest bearing deposits 2.49% 2.93% (0.44)Cost of interest bearing liabilities 2.74% 3.28% (0.54)Cost of total deposits 1.70% 1.97% (0.27)Cost of total funding (3) 1.94% 2.31% (0.37)Net interest margin (2) 3.73% 3.55% 0.18Average interest bearing cash / Average interest earning assets 3.18% 3.61% (0.43)Average loans and leases / Average interest earning assets 78.64% 78.02% 0.62Average loans and leases / Average total deposits 89.55% 90.48% (0.93)Average non-interest bearing deposits / Average total deposits 31.51% 32.78% (1.27)Average total deposits / Average total funding (3) 92.46% 90.16% 2.30
(1)See GAAP to Non-GAAP Reconciliation.(2) Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate.(3)Total funding = Total deposits + Total borrowings.
Columbia Banking System, Inc.Loan & Lease Portfolio Balances and Mix(Unaudited) Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 % Change($ in millions) Amount Amount Amount Amount Amount Seq. Year Quarter over YearLoans and leases:Commercial real estate:Non-owner occupied term $ 8,444 $ 6,190 $ 6,179 $ 6,278 $ 6,392 36% 32%Owner occupied term 7,361 5,320 5,303 5,270 5,210 38% 41%Multifamily 10,377 5,735 5,831 5,804 5,780 81% 80%Construction & development 2,071 2,070 2,071 1,983 1,989 -% 4%Residential development 367 286 252 232 245 28% 50%Commercial:Term 6,590 5,353 5,490 5,538 5,429 23% 21%Lines of credit & other 3,582 2,951 2,754 2,770 2,641 21% 36%Leases & equipment finance 1,614 1,641 1,644 1,661 1,670 (2)% (3)%Residential:Mortgage 5,722 5,830 5,878 5,933 5,945 (2)% (4)%Home equity loans & lines 2,153 2,083 2,039 2,032 2,017 3% 7%Consumer & other 181 178 175 180 185 2% (2)%Total loans and leases, net of deferred fees $ 48,462 $ 37,637 $ 37,616 $ 37,681 $ 37,503 29% 29%and costsLoans and leases mix:Commercial real estate:Non-owner occupied term 18% 16% 16% 17% 17%Owner occupied term 15% 14% 14% 14% 14%Multifamily 21% 15% 15% 15% 15%Construction & development 4% 6% 6% 5% 5%Residential development 1% 1% 1% 1% 1%Commercial:Term 14% 14% 15% 15% 15%Lines of credit & other 7% 8% 7% 7% 7%Leases & equipment finance 3% 4% 4% 4% 4%Residential:Mortgage 12% 15% 16% 16% 16%Home equity loans & lines 4% 6% 5% 5% 5%Consumer & other 1% 1% 1% 1% 1%Total 100% 100% 100% 100% 100%
Columbia Banking System, Inc.Deposit Portfolio Balances and Mix(Unaudited) Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 % Change($ in millions) Amount Amount Amount Amount Amount Seq. Year Quarter over YearDeposits:Demand, non-interest bearing $ 17,810 $ 13,220 $ 13,414 $ 13,308 $ 13,534 35% 32%Demand, interest bearing 11,675 8,335 8,494 8,476 8,445 40% 38%Money market 16,816 11,694 11,971 11,475 11,351 44% 48%Savings 2,504 2,276 2,337 2,360 2,451 10% 2%Time 6,966 6,218 6,002 6,102 5,734 12% 21%Total $ 55,771 $ 41,743 $ 42,218 $ 41,721 $ 41,515 34% 34%Total core deposits (1) $ 51,535 $ 37,294 $ 38,079 $ 37,488 $ 37,775 38% 36%Deposit mix:Demand, non-interest bearing 32% 32% 32% 32% 33%Demand, interest bearing 21% 20% 20% 20% 20%Money market 30% 28% 28% 27% 27%Savings 5% 5% 6% 6% 6%Time 12% 15% 14% 15% 14%Total 100% 100% 100% 100% 100%
(1) Core deposits are defined as total deposits less time deposits greater than $250,000 and all brokered deposits.
Columbia Banking System, Inc.Credit Quality – Non-performing Assets(Unaudited) Quarter Ended % Change($ in millions) Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Seq. Year 2025 2025 2025 2024 2024 Quarter over YearNon-performing assets:(1)Loans and leases on non-accrual status: Commercial real estate $ 53 $ 31 $ 42 $ 39 $ 37 71% 43% Commercial 67 67 80 57 62 0% 8% Total loans and leases on non-accrual status 120 98 122 96 99 22% 21%Loans and leases past due 90+ days and accruing: (2) Commercial 5 5 – 5 6 0% (17)% Residential (2) 71 74 53 66 61 (4)% 16% Total loans and leases past due 90+ days and 76 79 53 71 67 (4)% 13% accruing (2)Total non-performing loans and leases (1), (2) 196 177 175 167 166 11% 18%Other real estate owned 3 3 3 3 2 0% 50%Total non-performing assets (1), (2) $ 199 $ 180 $ 178 $ 170 $ 168 11% 18%Loans and leases past due 31-89 days $ 85 $ 142 $ 158 $ 105 $ 67 (40)% 27%Loans and leases past due 31-89 days to total loans and 0.18% 0.38% 0.42% 0.28% 0.18% (0.20) -leasesNon-performing loans and leases to total loans and 0.40% 0.47% 0.47% 0.44% 0.44% (0.07) (0.04)leases (1), (2)Non-performing assets to total assets (1), (2) 0.29% 0.35% 0.35% 0.33% 0.32% (0.06) (0.03)Non-accrual loans and leases to total loan and leases (2) 0.25% 0.26% 0.33% 0.26% 0.26% (0.01) (0.01)
(1) Non-accrual and 90+ days past due loans include government guarantees of $70 million, $68 million, $67 million, $74 million, and $66 millionat September30, 2025, June30, 2025, March31, 2025, December31, 2024, and September30, 2024, respectively.(2) Excludes certain mortgage loans guaranteed by GNMA, which Columbia has the unilateral right to repurchase but has not done so, totaling $2 million, $2 million, $3 million, $2 million, and $4 million at September30, 2025, June30, 2025, March31, 2025, December31, 2024, and September30, 2024, respectively.
Columbia Banking System, Inc.Credit Quality – Allowance for Credit Losses(Unaudited) Quarter Ended % Change($ in millions) Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Seq. Year 2025 2025 2025 2024 2024 Quarter over YearAllowance for credit losses on loans and leases(ACLLL)Balance, beginning of period $ 421 $ 421 $ 425 $ 420 $ 419 0% 0%Initial ACL recorded for PCD loans acquired during 5 – – – – nm nmthe periodProvision for credit losses on loans and leases 69 29 26 30 31 138% 123%Charge-offs Commercial real estate (3) – – (3) – nm nm Commercial (22) (33) (33) (26) (33) (33)% (33)% Residential – – (1) – (1) nm nm Consumer & other (2) (1) (1) (1) (1) 100% 100% Total charge-offs (27) (34) (35) (30) (35) (21)% (23)%Recoveries Commercial 4 5 4 4 5 (20)% (20)% Consumer & other 1 – 1 1 – nm nm Total recoveries 5 5 5 5 5 0% 0%Net (charge-offs) recoveries Commercial real estate (3) – – (3) – nm nm Commercial (18) (28) (29) (22) (28) (36)% (36)% Residential – – (1) – (1) nm nm Consumer & other (1) (1) – – (1) 0% 0% Total net charge-offs (22) (29) (30) (25) (30) (24)% (27)%Balance, end of period $ 473 $ 421 $ 421 $ 425 $ 420 12% 13%Reserve for unfunded commitmentsBalance, beginning of period $ 18 $ 17 $ 16 $ 18 $ 20 6% (10)%Provision (recapture) for credit losses on unfunded 1 1 1 (2) (2) 0% nmcommitmentsBalance, end of period 19 18 17 16 18 6% 6%Total Allowance for credit losses (ACL) $ 492 $ 439 $ 438 $ 441 $ 438 12% 12%Net charge-offs to average loans and leases 0.22% 0.31% 0.32% 0.27% 0.31% (0.09) (0.09)(annualized)Recoveries to gross charge-offs 18.52% 15.19% 14.05% 15.23% 16.76% 3.33 1.76ACLLL to loans and leases 0.98% 1.12% 1.12% 1.13% 1.12% (0.14) (0.14)ACL to loans and leases 1.01% 1.17% 1.17% 1.17% 1.17% (0.16) (0.16)nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as “nm.”
Columbia Banking System, Inc.Credit Quality – Allowance for Credit Losses(Unaudited) Nine Months Ended % Change($ in millions) Sep 30, 2025 Sep 30, 2024 Year over YearAllowance for credit losses on loans and leases (ACLLL)Balance, beginning of period $ 425 $ 441 (4)%Initial ACL recorded for PCD loans acquired during the period 5 – nmProvision for credit losses on loans and leases 124 83 49%Charge-offs Commercial real estate (3) (1) 200% Commercial (88) (113) (22)% Residential (1) (2) (50)% Consumer & other (4) (5) (20)% Total charge-offs (96) (121) (21)%Recoveries Commercial real estate – 1 (100)% Commercial 13 14 (7)% Residential – 1 (100)% Consumer & other 2 1 100% Total recoveries 15 17 (12)%Net (charge-offs) recoveries Commercial real estate (3) – nm Commercial (75) (99) (24)% Residential (1) (1) 0% Consumer & other (2) (4) (50)% Total net charge-offs (81) (104) (22)%Balance, end of period $ 473 $ 420 13%Reserve for unfunded commitmentsBalance, beginning of period $ 16 $ 23 (30)%Provision (recapture) for credit losses on unfunded commitments 3 (5) nmBalance, end of period 19 18 6%Total Allowance for credit losses (ACL) $ 492 $ 438 12%Net charge-offs to average loans and leases (annualized) 0.28% 0.37% (0.09)Recoveries to gross charge-offs 15.63% 14.37% 1.26nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as “nm.”
Columbia Banking System, Inc.Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates(Unaudited) Quarter Ended September 30, 2025 June 30, 2025 September 30, 2024($ in millions) Average Interest Average Average Interest Average Average Interest Average Balance Income Yields Balance Income Yields Balance Income Yields or or Rates or or Rates or or Rates Expense Expense ExpenseINTEREST-EARNING ASSETS:Loans held for sale $ 80 $ 1 7.14% $ 67 $ 1 6.66% $ 68 $ 1 6.62%Loans and leases (1) 41,164 618 5.96% 37,648 563 6.00% 37,544 588 6.22%Taxable securities 8,523 93 4.35% 7,937 83 4.22% 7,943 78 3.97%Non-taxable securities (2) 950 10 4.26% 798 8 3.95% 828 8 3.78%Temporary investments and 1,793 20 4.40% 1,421 16 4.46% 1,802 25 5.45%interest-bearing cashTotal interest-earning assets (1), (2) 52,510 $ 742 5.62% 47,871 $ 671 5.62% 48,185 $ 700 5.78%Goodwill and other intangible 1,719 1,472 1,560assetsOther assets 2,594 2,209 2,264Total assets $ 56,823 $ 51,552 $ 52,009INTEREST-BEARING LIABILITIES:Interest-bearing demand deposits $ 9,630 $ 53 2.17% $ 8,480 $ 48 2.28% $ 8,313 $ 57 2.74%Money market deposits 13,476 83 2.46% 11,783 72 2.46% 11,085 78 2.80%Savings deposits 2,358 1 0.16% 2,287 1 0.13% 2,480 1 0.17%Time deposits 6,481 58 3.57% 6,126 59 3.85% 6,141 72 4.65%Total interest-bearing deposits 31,945 195 2.43% 28,676 180 2.52% 28,019 208 2.95%Repurchase agreements and 176 1 2.15% 186 1 2.06% 195 1 2.29%federal funds purchasedBorrowings 2,648 30 4.54% 3,058 35 4.53% 3,874 50 5.10%Junior and other subordinated 430 9 7.99% 428 8 8.05% 417 10 9.43%debenturesTotal interest-bearing liabilities 35,199 $ 235 2.65% 32,348 $ 224 2.78% 32,505 $ 269 3.29%Non-interest-bearing deposits 14,627 13,123 13,500Other liabilities 840 794 885Total liabilities 50,666 46,265 46,890Common equity 6,157 5,287 5,119Total liabilities and shareholders' $ 56,823 $ 51,552 $ 52,009equityNET INTEREST INCOME (2) $ 507 $ 447 $ 431NET INTEREST SPREAD (2) 2.97% 2.84% 2.49%NET INTEREST INCOME TO 3.84% 3.75% 3.56%EARNING ASSETS OR NETINTEREST MARGIN (1), (2)
(1) Non-accrual loans and leases are included in the average balance.(2) Tax-exempt income was adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $2 million for the three months ended September30, 2025, as compared to $1 million for the three months ended June30, 2025 and $1 million for the three months ended September30, 2024.
Columbia Banking System, Inc.Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates(Unaudited) Nine Months Ended September 30, 2025 September 30, 2024($ in millions) Average Interest Average Average Interest Average Balance Income or Yields or Balance Income or Yields or Expense Rates Expense RatesINTEREST-EARNING ASSETS:Loans held for sale $ 69 $ 3 6.74% $ 67 $ 3 6.56%Loans and leases (1) 38,843 1,733 5.96% 37,601 1,745 6.18%Taxable securities 8,053 248 4.11% 7,954 239 4.01%Non-taxable securities (2) 856 26 4.04% 835 24 3.77%Temporary investments and interest-bearing cash 1,570 52 4.44% 1,738 71 5.48%Total interest-earning assets (1), (2) 49,391 $ 2,062 5.58% 48,195 $ 2,082 5.76%Goodwill and other intangible assets 1,565 1,589Other assets 2,340 2,241Total assets $ 53,296 $ 52,025INTEREST-BEARING LIABILITIES:Interest-bearing demand deposits $ 8,832 $ 147 2.23% $ 8,166 $ 162 2.66%Money market deposits 12,295 225 2.44% 10,850 227 2.79%Savings deposits 2,332 2 0.13% 2,574 3 0.14%Time deposits 6,249 178 3.81% 6,345 222 4.67%Total interest-bearing deposits 29,708 552 2.49% 27,935 614 2.93%Repurchase agreements and federal funds purchased 192 3 2.09% 217 4 2.40%Borrowings 2,913 101 4.63% 3,898 150 5.15%Junior and other subordinated debentures 432 26 7.99% 419 30 9.44%Total interest-bearing liabilities 33,245 $ 682 2.74% 32,469 $ 798 3.28%Non-interest-bearing deposits 13,668 13,622Other liabilities 826 929Total liabilities 47,739 47,020Common equity 5,557 5,005Total liabilities and shareholders' equity $ 53,296 $ 52,025NET INTEREST INCOME (2) $ 1,380 $ 1,284NET INTEREST SPREAD (2) 2.84% 2.48%NET INTEREST INCOME TO EARNING ASSETS OR NET 3.73% 3.55%INTEREST MARGIN (1), (2)
(1) Non-accrual loans and leases are included in the average balance.(2) Tax-exempt income was adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $4 million for the nine months ended September30, 2025, as compared to $3 million for the same period in 2024.
Columbia Banking System, Inc.Residential Mortgage Banking Activity(Unaudited) Quarter Ended %($ in millions) Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Seq. Year over 2025 2025 2025 2024 2024 Quarter YearResidential mortgage banking revenue:Origination and sale $ 5 $ 5 $ 4 $ 5 $ 5 -% -%Servicing 5 6 6 6 6 (17)% (17)%Change in fair value of MSR asset:Changes due to collection/realization of (3) (3) (3) (3) (3) -% -%expected cash flows over timeChanges due to valuation inputs or – (2) (1) 7 (6) nm nmassumptionsMSR hedge gain (loss) – 2 3 (8) 5 (100)% (100)%Total $ 7 $ 8 $ 9 $ 7 $ 7 (13)% -%Closed loan volume for sale $ 166 $ 164 $ 136 $ 175 $ 161 1% 3%Gain on sale margin 3.01% 2.77% 3.23% 2.58% 3.24% 0.24 -0.23Residential mortgage servicing rights:Balance, beginning of period $ 103 $ 106 $ 108 $ 102 $ 110 (3)% (6)%Additions for new MSR capitalized 1 2 2 2 1 (50)% -%Change in fair value of MSR asset:Changes due to collection/realization of (3) (3) (3) (3) (3) -% -%expected cash flows over timeChanges due to valuation inputs or – (2) (1) 7 (6) nm nmassumptionsBalance, end of period $ 101 $ 103 $ 106 $ 108 $ 102 (2)% (1)%Residential mortgage loans serviced for others $ 7,797 $ 7,852 $ 7,888 $ 7,939 $ 7,966 (1)% (2)%MSR as % of serviced portfolio 1.30% 1.31% 1.34% 1.36% 1.28% (0.01) 0.02nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as “nm.”
Columbia Banking System, Inc.Residential Mortgage Banking Activity(Unaudited) Nine Months Ended % Change($ in millions) Sep 30, 2025 Sep 30, 2024 Year over YearResidential mortgage banking revenue:Origination and sale $ 14 $ 11 27%Servicing 17 18 (6)%Change in fair value of MSR asset:Changes due to collection/realization of expected cash flows over time (9) (9) 0%Changes due to valuation inputs or assumptions (3) (2) 50%MSR hedge gain (loss) 5 (1) nmTotal $ 24 $ 17 41%Closed loan volume for sale $ 466 $ 389 20%Gain on sale margin 3.00% 2.98% 0.02Residential mortgage servicing rights:Balance, beginning of period $ 108 $ 109 (1)%Additions for new MSR capitalized 5 4 25%Change in fair value of MSR asset:Changes due to collection/realization of expected cash flows over time (9) (9) 0%Changes due to valuation inputs or assumptions (3) (2) 50%Balance, end of period $ 101 $ 102 (1)%nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as “nm.”
Columbia Banking System, Inc.Purchase Price Allocation (1)(Unaudited)($ in millions) August 31, 2025Purchase price consideration Fair value of common shares issued and exchanged $ 2,355 Total consideration $ 2,355Fair value of assets acquired: Cash and due from banks $ 874 Investment securities 2,828 Loans held for sale 1 Loans and leases 11,382 Restricted equity securities 98 Premises and equipment 53 Other intangible assets 355 Deferred tax assets 132 Other assets 889 Total assets acquired $ 16,612Fair value of liabilities assumed: Deposits $ 14,542 Other liabilities 167 Total liabilities assumed $ 14,709Net assets acquired $ 1,903Goodwill $ 452
(1) The estimates of fair value were recorded based on initial valuations available at August 31, 2025 and these estimates, including initial accounting for deferred taxes, were considered preliminary as of September 30, 2025 and subject to adjustment for up to one year after the acquisition date.
Non-GAAP Financial Measures In addition to results presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), this press release contains certain non-GAAP financial measures. The Company believes presenting certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends, and our financial position. We utilize these measures for internal planning and forecasting purposes, and operating pre-provision net revenue and operating return on tangible common equity are also used as part of our incentive compensation program for our executive officers. We, as well as securities analysts, investors, and other interested parties, also use these measures to compare peer company operating performance. We believe that our presentation and discussion, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting our business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitution for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Columbia Banking System, Inc.GAAP to Non-GAAP ReconciliationTangible Capital, as adjusted(Unaudited) Quarter Ended % Change($ in millions, shares in thousands) Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Seq. Year Quarter over YearTotal shareholders' equity a $ 7,790 $ 5,342 $ 5,238 $ 5,118 $ 5,274 46% 48%Less: Goodwill 1,481 1,029 1,029 1,029 1,029 44% 44%Less: Other intangible assets, net 754 430 456 484 513 75% 47%Tangible common shareholders' equity b $ 5,555 $ 3,883 $ 3,753 $ 3,605 $ 3,732 43% 49%Total assets c $ 67,496 $ 51,901 $ 51,519 $ 51,576 $ 51,909 30% 30%Less: Goodwill 1,481 1,029 1,029 1,029 1,029 44% 44%Less: Other intangible assets, net 754 430 456 484 513 75% 47%Tangible assets d $ 65,261 $ 50,442 $ 50,034 $ 50,063 $ 50,367 29% 30%Common shares outstanding at period end(in e 299,147 210,213 210,112 209,536 209,532 42% 43%thousands)Total shareholders' equity to total assets ratio a / c 11.54% 10.29% 10.17% 9.92% 10.16% 1.25 1.38Tangible common equity to tangible assets ratio b / d 8.51% 7.70% 7.50% 7.20% 7.41% 0.81 1.10Book value per common share a / e $ 26.04 $ 25.41 $ 24.93 $ 24.43 $ 25.17 2% 3%Tangible book value per common share b / e $ 18.57 $ 18.47 $ 17.86 $ 17.20 $ 17.81 1% 4%
Columbia Banking System, Inc.GAAP to Non-GAAP Reconciliation – ContinuedIncome Statements, as adjusted(Unaudited) Quarter Ended % Change($ in millions) Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Seq. Year Quarter over YearNon-Interest Income AdjustmentsGain (loss) on investment securities, net $ 2 $ – $ 2 $ (1) $ 2 nm -%(Loss) gain on swap derivatives (1) (1) (1) 3 (3) -% (67)%Gain (loss) on loans held for investment, at 4 – 7 (7) 9 nm (56)%fair valueChange in fair value of MSR due to valuation – (2) (1) 7 (6) nm nminputs or assumptionsMSR hedge gain (loss) – 2 3 (8) 5 (100)% (100)%Total non-interest income adjustments a $ 5 $ (1) $ 10 $ (6) $ 7 nm (29)%Non-Interest Expense AdjustmentsMerger and restructuring expense $ 87 $ 8 $ 14 $ 2 $ 2 nm nmExit and disposal costs – – 1 1 1 nm (100)%FDIC special assessment (1) – – – – nm nmLegal settlement – – 55 – – nm nmTotal non-interest expense adjustments b $ 86 $ 8 $ 70 $ 3 $ 3 nm nmNet interest income c $ 505 $ 446 $ 425 $ 437 $ 430 13% 17%Non-interest income (GAAP) d $ 77 $ 65 $ 66 $ 50 $ 66 18% 17%Less: Non-interest income adjustments a (5) 1 (10) 6 (7) nm (29)%Operating non-interest income (non-GAAP) e $ 72 $ 66 $ 56 $ 56 $ 59 9% 22%Revenue (GAAP) f=c+d $ 582 $ 511 $ 491 $ 487 $ 496 14% 17%Operating revenue (non-GAAP) g=c+e $ 577 $ 512 $ 481 $ 493 $ 489 13% 18%Non-interest expense (GAAP) h $ 393 $ 278 $ 340 $ 267 $ 271 41% 45%Less: Non-interest expense adjustments b (86) (8) (70) (3) (3) nm nmOperating non-interest expense (non-GAAP) i $ 307 $ 270 $ 270 $ 264 $ 268 14% 15%Net income (GAAP) j $ 96 $ 152 $ 87 $ 143 $ 146 (37)% (34)%Provision for income taxes 23 51 37 49 50 (55)% (54)%Income before provision for income taxes 119 203 124 192 196 (41)% (39)%Provision for credit losses 70 30 27 28 29 133% 141%Pre-provision net revenue (PPNR) (non-GAAP) k 189 233 151 220 225 (19)% (16)%Less: Non-interest income adjustments a (5) 1 (10) 6 (7) nm (29)%Add: Non-interest expense adjustments b 86 8 70 3 3 nm nmOperating PPNR (non-GAAP) l $ 270 $ 242 $ 211 $ 229 $ 221 12% 22%Net income (GAAP) j $ 96 $ 152 $ 87 $ 143 $ 146 (37)% (34)%Day 1 acquisition provision expense 70 – – – – nm nmLess: Non-interest income adjustments a (5) 1 (10) 6 (7) nm (29)%Add: Non-interest expense adjustments b 86 8 70 3 3 nm nmTax effect of adjustments (43) (1) (8) (2) 1 nm nmOperating net income (non-GAAP) m $ 204 $ 160 $ 139 $ 150 $ 143 28% 43%nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as “nm.”
Columbia Banking System, Inc.GAAP to Non-GAAP Reconciliation – ContinuedAverage Balances, Earnings Per Share, and Performance Metrics, as adjusted(Unaudited) Quarter Ended % Change($ in millions, shares in thousands) Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Seq. Year Quarter over YearAverage assets n $ 56,823 $ 51,552 $ 51,453 $ 51,588 $ 52,009 10% 9%Less: Average goodwill and other intangible 1,719 1,472 1,502 1,528 1,560 17% 10%assets, netAverage tangible assets o $ 55,104 $ 50,080 $ 49,951 $ 50,060 $ 50,449 10% 9%Average common shareholders' equity p $ 6,157 $ 5,287 $ 5,217 $ 5,226 $ 5,119 16% 20%Less: Average goodwill and other intangible 1,719 1,472 1,502 1,528 1,560 17% 10%assets, netAverage tangible common equity q $ 4,438 $ 3,815 $ 3,715 $ 3,698 $ 3,559 16% 25%Weighted average basic shares outstanding r 237,838 209,125 208,800 208,548 208,545 14% 14%(in thousands)Weighted average diluted shares outstanding s 238,925 209,975 210,023 209,889 209,454 14% 14%(in thousands)Select Per-Share & Performance MetricsEarnings per share – basic j / r $ 0.40 $ 0.73 $ 0.41 $ 0.69 $ 0.70 (45)% (43)%Earnings per share – diluted j / s $ 0.40 $ 0.73 $ 0.41 $ 0.68 $ 0.70 (45)% (43)%Efficiency ratio (1) h / f 67.29% 54.29% 69.06% 54.61% 54.56% 13.00 12.73Non-interest expense to average assets h / n 2.74% 2.16% 2.68% 2.06% 2.08% 0.58 0.66Return on average assets j / n 0.67% 1.19% 0.68% 1.10% 1.12% (0.52) (0.45)Return on average tangible assets j / o 0.69% 1.22% 0.70% 1.14% 1.15% (0.53) (0.46)PPNR return on average assets k / n 1.32% 1.81% 1.19% 1.70% 1.72% (0.49) (0.40)Return on average common equity j / p 6.19% 11.56% 6.73% 10.91% 11.36% (5.37) (5.17)Return on average tangible common equity j / q 8.58% 16.03% 9.45% 15.41% 16.34% (7.45) (7.76)Operating Per-Share & Performance MetricsOperating earnings per share – basic m / r $ 0.86 $ 0.77 $ 0.67 $ 0.72 $ 0.69 12% 25%Operating earnings per share – diluted m / s $ 0.85 $ 0.76 $ 0.67 $ 0.71 $ 0.69 12% 23%Operating efficiency ratio, as adjusted (1) u / y 52.32% 51.79% 55.11% 52.51% 53.89% 0.53 (1.57)Operating non-interest expense to average i / n 2.14% 2.10% 2.13% 2.03% 2.05% 0.04 0.09assetsOperating return on average assets m / n 1.42% 1.25% 1.10% 1.15% 1.10% 0.17 0.32Operating return on average tangible assets m / o 1.47% 1.28% 1.13% 1.19% 1.13% 0.19 0.34Operating PPNR return on average assets l / n 1.89% 1.88% 1.67% 1.77% 1.69% 0.01 0.20Operating return on average common equity m / p 13.15% 12.16% 10.87% 11.40% 11.15% 0.99 2.00Operating return on average tangible common m / q 18.24% 16.85% 15.26% 16.11% 16.04% 1.39 2.20equity
(1) Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.
Columbia Banking System, Inc.GAAP to Non-GAAP Reconciliation – ContinuedOperating Efficiency Ratio, as adjusted(Unaudited) Quarter Ended % Change($ in millions) Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Seq. Year Quarter over YearNon-interest expense (GAAP) h $ 393 $ 278 $ 340 $ 267 $ 271 41% 45%Less: Non-interest expense adjustments b (86) (8) (70) (3) (3) nm nmOperating non-interest expense (non-GAAP) i 307 270 270 264 268 14% 15%Less: B&O taxes t (3) (3) (3) (4) (3) -% -%Operating non-interest expense, excluding u $ 304 $ 267 $ 267 $ 260 $ 265 14% 15%B&O taxes (non-GAAP)Net interest income (tax equivalent) (1) v $ 507 $ 447 $ 426 $ 438 $ 431 13% 18%Non-interest income (GAAP) d 77 65 66 50 66 18% 17%Add: BOLI tax equivalent adjustment (1) w 2 2 1 1 1 -% 100%Total Revenue, excluding BOLI tax equivalent x 586 514 493 489 498 14% 18%adjustments (tax equivalent)Less: Non-interest income adjustments a (5) 1 (10) 6 (7) nm (29)%Total Adjusted Operating Revenue, y $ 581 $ 515 $ 483 $ 495 $ 491 13% 18%excluding BOLI tax equivalent adjustments(tax equivalent) (non-GAAP)Efficiency ratio (1) h / f 67.29% 54.29% 69.06% 54.61% 54.56% 13.00 12.73Operating efficiency ratio, as adjusted (non-GAAP) (1) u / y 52.32% 51.79% 55.11% 52.51% 53.89% 0.53 (1.57)nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as “nm.”
(1) Tax-exempt income was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.
Columbia Banking System, Inc.GAAP to Non-GAAP Reconciliation – ContinuedIncome Statements, as adjusted(Unaudited) Nine Months Ended % Change($ in millions) Sep 30, 2025 Sep 30, 2024 Year over YearNon-Interest Income AdjustmentsGain on investment securities, net $ 4 $ 1 300%(Loss) gain on swap derivatives (3) (2) 50%Gain (loss) on loans held for investment, at fair value 11 (3) nmChange in fair value of MSR due to valuation inputs or assumptions (3) (2) 50%MSR hedge loss 5 (1) nmTotal non-interest income adjustments a $ 14 $ (7) nmNon-Interest Expense AdjustmentsMerger and restructuring expense $ 109 $ 21 419%Exit and disposal costs 1 3 (67)%FDIC special assessment (1) 6 (117)%Legal settlement 55 – nmTotal non-interest expense adjustments b $ 164 $ 30 447%Net interest income c $ 1,376 $ 1,281 7%Non-interest income (GAAP) d $ 208 $ 161 29%Less: Non-interest income adjustments a (14) 7 (300)%Operating non-interest income (non-GAAP) e $ 194 $ 168 15%Revenue (GAAP) f=c+d $ 1,584 $ 1,442 10%Operating revenue (non-GAAP) g=c+e $ 1,570 $ 1,449 8%Non-interest expense (GAAP) h $ 1,011 $ 838 21%Less: Non-interest expense adjustments b (164) (30) 447%Operating non-interest expense (non-GAAP) i $ 847 $ 808 5%Net income (GAAP) j $ 335 $ 390 (14)%Provision for income taxes 111 136 (18)%Income before provision for income taxes 446 526 (15)%Provision for credit losses 127 78 63%Pre-provision net revenue (PPNR) (non-GAAP) k 573 604 (5)%Less: Non-interest income adjustments a (14) 7 (300)%Add: Non-interest expense adjustments b 164 30 447%Operating PPNR (non-GAAP) l $ 723 $ 641 13%Net income (GAAP) j $ 335 $ 390 (14)%Day 1 acquisition provision expense 70 – nmLess: Non-interest income adjustments a (14) 7 (300)%Add: Non-interest expense adjustments b 164 30 447%Tax effect of adjustments (52) (9) 478%Operating net income (non-GAAP) m $ 503 $ 418 20%nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as “nm.”Columbia Banking System, Inc.GAAP to Non-GAAP Reconciliation – ContinuedAverage Balances, Earnings Per Share, and Performance Metrics, as adjusted(Unaudited) Nine Months Ended % Change($ in millions, shares in thousands) Sep 30, 2025 Sep 30, 2024 Year over YearAverage assets n $ 53,296 $ 52,025 2%Less: Average goodwill and other intangible assets, net 1,565 1,589 (2)%Average tangible assets o $ 51,731 $ 50,436 3%Average common shareholders' equity p $ 5,557 $ 5,005 11%Less: Average goodwill and other intangible assets, net 1,565 1,589 (2)%Average tangible common equity q $ 3,992 $ 3,416 17%Weighted average basic shares outstanding r 218,694 208,435 5%Weighted average diluted shares outstanding s 219,712 209,137 5%Select Per-Share & Performance MetricsEarnings per share – basic j / r $ 1.53 $ 1.87 (18)%Earnings per share – diluted j / s $ 1.53 $ 1.87 (18)%Efficiency ratio (1) h / f 63.66% 57.99% 5.67Non-interest expense to average assets h/n 2.54% 2.15% 0.39Return on average assets j / n 0.84% 1.00% (0.16)Return on average tangible assets j / o 0.87% 1.03% (0.16)PPNR return on average assets k/n 1.44% 1.55% (0.11)Return on average common equity j / p 8.06% 10.42% (2.36)Return on average tangible common equity j / q 11.22% 15.27% (4.05)Operating Per-Share & Performance MetricsOperating earnings per share – basic m / r $ 2.30 $ 2.01 14%Operating earnings per share – diluted m / s $ 2.29 $ 2.00 15%Operating efficiency ratio, as adjusted (1) u / y 53.07% 54.80% (1.73)Operating non-interest expense to average assets i/n 2.12% 2.07% 0.05Operating return on average assets m / n 1.26% 1.07% 0.19Operating return on average tangible assets m / o 1.30% 1.11% 0.19Operating PPNR return on average assets l / n 1.81% 1.65% 0.16Operating return on average common equity m / p 12.10% 11.17% 0.93Operating return on average tangible common equity m / q 16.85% 16.36% 0.49
(1) Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.
Columbia Banking System, Inc.GAAP to Non-GAAP Reconciliation – ContinuedOperating Efficiency Ratio, as adjusted(Unaudited) Nine Months Ended % change($ in millions) Sep 30, 2025 Sep 30, 2024 Year over YearNon-interest expense (GAAP) h $ 1,011 $ 838 21%Less: Non-interest expense adjustments b (164) (30) 447%Operating non-interest expense (non-GAAP) i 847 808 5%Less: B&O taxes t (9) (10) (10)%Operating non-interest expense, excluding B&O taxes (non-GAAP) u $ 838 $ 798 5%Net interest income (tax equivalent) (1) v $ 1,380 $ 1,284 7%Non-interest income (GAAP) d 208 161 29%Add: BOLI tax equivalent adjustment (1) w 5 4 25%Total Revenue, excluding BOLI tax equivalent adjustments (tax equivalent) x 1,593 1,449 10%Less: Non-interest income adjustments a (14) 7 (300)%Total Adjusted Operating Revenue, excluding BOLI tax equivalent adjustments y $ 1,579 $ 1,456 8%(tax equivalent) (non-GAAP)Efficiency ratio (1) h /f 63.66% 57.99% 5.67Operating efficiency ratio, as adjusted (non-GAAP) (1) u / y 53.07% 54.80% (1.73)
(1) Tax-exempt income was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.
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