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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934
 
 
Date of Report: October 24, 2024
(Date of earliest event reported)
 
Columbia Banking System, Inc.
(Exact Name of Registrant as Specified in Its Charter)
 
 
Washington000-2028891-1422237
(State or Other Jurisdiction of Incorporation or Organization)
(Commission File Number)
(I.R.S. Employer Identification Number)
 
1301 A Street
Tacoma, Washington 98402-2156
(address of Principal Executive Offices)(Zip Code)
 
(253) 305-1900

(Registrant's Telephone Number, Including Area Code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ☐ ]    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ☐ ]    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ☐ ]    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ☐ ]    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
TITLE OF EACH CLASSTRADING SYMBOLNAME OF EXCHANGE
Common Stock, No Par ValueCOLBThe NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company [ ☐ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]





Item 2.02Results of Operations and Financial Condition.
 
On October 24, 2024, Columbia Banking System, Inc. issued a press release announcing third quarter 2024 financial results. The release is attached hereto as Exhibit 99.1. The information included in the press release is considered to be "furnished" under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Columbia Banking System, Inc. will include final financial statements and additional analyses for the quarter ended September 30, 2024 as part of its quarterly report on Form 10-Q covering that period.
 
Item 7.01Regulation FD Disclosure.
 
Columbia Banking System, Inc. is filing an investor slide presentation that it intends to review in conjunction with its earnings release conference call on October 24, 2024. The slides are included as Exhibit 99.2 to this report and shall not be deemed to be "filed" for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01Financial Statements and Exhibits.
(d)EXHIBITS
 
 
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
Columbia Banking System, Inc.
(Registrant)
 
Dated: October 24, 2024
By: /s/ Ronald L. Farnsworth 
      Ronald L. Farnsworth
      Executive Vice President/Chief Financial Officer



EXHIBIT 99.1


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00
COLUMBIA BANKING SYSTEM, INC. REPORTS THIRD QUARTER 2024 RESULTS
$146 million$143 million$0.70$0.69
Net incomeOperating net income 1Earnings per diluted common share
Operating earnings per diluted common share 1
0
CEO Commentary
“Our third quarter results reflect our continued work and success as we strive toward top-quartile performance,” said Clint Stein, President and CEO. “Our recurring expense run rate reflects a 25% reduction in costs over the 18 months we have operated as a combined organization, as we eliminated redundancies and streamlined operations. Our teams’ dedication to driving value for our customers contributed to solid core deposit growth, even as deposit costs were reduced. Although loan balances contracted during the quarter, they reflect healthy customer activity and our focus on reducing transactional assets and their funding sources, as we regain Columbia’s placement as a top-performing bank that delivers long-term, consistent, repeatable results for our shareholders.”
–Clint Stein, President and CEO of Columbia Banking System, Inc.
3Q24 HIGHLIGHTS (COMPARED TO 2Q24)
Net Interest Income and NIM
•Net interest income increased by $3 million from the prior quarter due to higher income earned on loans, which occurred despite a reduction in accretion income, and relatively stable funding costs prior to the late-quarter reduction in the federal funds rate.
•Net interest margin was 3.56%, unchanged from the prior quarter, as a favorable balance sheet funding mix shift into lower-cost deposits and a slight increase in loan yields offset a lower yield on securities.
Non-Interest Income and Expense
•Non-interest income increased by $21 million due to the quarterly fluctuation in cumulative fair value accounting and hedges, which drove $16 million of the change. Higher core banking activity contributed to the remaining increase.
•Non-interest expense decreased by $8 million due to lower restructuring expense and a $6 million decline in salary and wages expense related to operational initiatives. The effect was partially offset by the prior quarter's reversal of compensation-related accruals, which did not repeat in the third quarter.
Credit Quality
•Net charge-offs were 0.31% of average loans and leases (annualized), compared to 0.32% in the prior quarter. Lower activity in the FinPac portfolio drove the decline.
•Provision expense of $29 million compares to $32 million in the prior quarter.
•Non-performing assets to total assets was 0.32%, compared to 0.30% as of June 30, 2024.
Capital
•Estimated total risk-based capital ratio of 12.5% and estimated common equity tier 1 risk-based capital ratio of 10.3%.
•Declared a quarterly cash dividend of $0.36 per common share on August 12, 2024, which was paid September 9, 2024.
Notable Items
•Realized $82 million in annualized cost savings associated with recent operational initiatives as of September 30, 2024. Reinvestment of $12 million in savings is ongoing and expected to extend into 2025.
•Opened our second retail branch in Arizona, which will be complemented by a planned third location in the state, slated to open in early 2025.
3Q24 KEY FINANCIAL DATA
PERFORMANCE METRICS
3Q24
2Q24
3Q23
Return on average assets1.12%0.93%1.02%
Return on average common equity11.36%9.85%11.07%
Return on average tangible common equity 1
16.34%14.55%16.93%
Operating return on average assets 1
1.10%1.08%1.23%
Operating return on average common equity 1
11.15%11.47%13.40%
Operating return on average tangible common equity 1
16.04%16.96%20.48%
Net interest margin3.56%3.56%3.91%
Efficiency ratio54.56%59.02%57.82%
Operating efficiency ratio, as adjusted 1
53.89%53.56%51.26%
INCOME STATEMENT
($ in 000s, excl. per share data)
3Q24
2Q24
3Q23
Net interest income$430,218$427,449$480,875
Provision for credit losses$28,769$31,820$36,737
Non-interest income$66,159$44,703$43,981
Non-interest expense$271,358$279,244$304,147
Pre-provision net revenue 1
$225,019$192,908$220,709
Operating pre-provision net revenue 1
$221,412$219,390$258,687
Earnings per common share - diluted $0.70$0.57$0.65
Operating earnings per common share - diluted 1
$0.69$0.67$0.79
Dividends paid per share$0.36$0.36$0.36
BALANCE SHEET
3Q24
2Q24
3Q23
Total assets$51.9 B$52.0 B$52.0 B
Loans and leases$37.5 B$37.7 B$37.2 B
Deposits$41.5 B$41.5 B$41.6 B
Book value per common share$25.17$23.76$22.21
Tangible book value per share 1
$17.81$16.26$14.22
Investor Contact
Jacquelynne "Jacque" Bohlen, SVP/Investor Relations Director, 503-727-4117, jacquebohlen@umpquabank.com
1 "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for additional information.



Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 2
Organizational Update
Columbia Banking System, Inc. ("Columbia," the "Company," "we," or "our") completed an enterprise-wide evaluation of our operations during the first quarter of 2024. Cost savings identified through the comprehensive review were fully realized as of September 30, 2024, with a portion reserved to fund franchise reinvestment into 2025. Planned reinvestments, some of which have already occurred, include new talent additions, opening de novo locations in targeted growth markets within our existing footprint, and investments in products and technology that create operational efficiencies and revenue growth opportunities. During the third quarter, Columbia's primary subsidiary, Umpqua Bank ("Umpqua"), added new team members with specialty focuses in three of our markets. We also announced the opening of a retail branch in Scottsdale, Arizona, which will be complemented by a planned location in Mesa, Arizona, slated to open in early 2025 as our third branch in the Phoenix metropolitan area. Please refer to the Q3 2024 Earnings Presentation for additional details on our cost savings initiatives and planned reinvestments.

On February 28, 2023, Columbia completed its merger with Umpqua Holdings Corporation ("UHC"), combining the two premier banks in the Northwest to create one of the largest banks headquartered in the West (the "merger"). Columbia's financial results for any periods ended prior to February 28, 2023 reflect UHC results only on a standalone basis. In addition, Columbia's reported financial results for the nine months ended September 30, 2023 reflect UHC financial results only until the closing of the merger after the close of business on February 28, 2023. As a result of these two factors, Columbia's financial results for the nine months ended September 30, 2024 may not be directly comparable to prior reported periods. Under the reverse acquisition method of accounting, the assets and liabilities of Columbia as of February 28, 2023 ("historical Columbia") were recorded at their respective fair values.

Net Interest Income
Net interest income was $430 million for the third quarter of 2024, up $3 million from the prior quarter. The increase reflects higher income earned on loans, which occurred despite a reduction in accretion income, and relatively stable funding costs prior to the reduction in the federal funds rate in the latter part of September.

Columbia's net interest margin was 3.56% for the third quarter of 2024, unchanged from the second quarter of 2024. A favorable balance sheet funding mix shift into lower-cost deposits and a slight increase in loan yields offset a lower yield on securities, contributing to net interest margin stability between periods. The cost of interest-bearing deposits decreased 2 basis points from the prior quarter to 2.95% for the third quarter of 2024, which compares to 2.90% for the month of September and 2.74% as of September 30, 2024. "Anticipated seasonal deposit inflows and successful small business campaigns contributed to customer balance growth during the third quarter," commented Tory Nixon, President of Umpqua Bank. "We continue to use bundled solutions to generate lower-cost customer deposit balances, not promotional pricing. Overall deposit pricing was reduced ahead of and following the federal funds rate reduction in September."

Columbia's cost of interest-bearing liabilities decreased 2 basis points from the prior quarter to 3.29% for the third quarter of 2024, which compares to 3.26% for the month of September and 3.13% as of September 30, 2024. Please refer to the Q3 2024 Earnings Presentation for additional net interest margin change details and interest rate sensitivity information as well as to our non-GAAP disclosures in this press release for the impact of purchase accounting accretion and amortization on individual line items.

Non-interest Income
Non-interest income was $66 million for the third quarter of 2024, up $21 million from the prior quarter. The increase was driven by quarterly fluctuations in fair value adjustments and mortgage servicing rights ("MSR") hedging activity, which collectively resulted in a net fair value gain of $7 million in the third quarter compared to a net fair value loss of $10 million in the second quarter, as detailed in our non-GAAP disclosures. Excluding these items, non-interest income was up $5 million2 between periods due primarily to higher swap and mortgage banking income and last quarter's $2 million loss on loan sales, which did not repeat in the third quarter. Treasury management fees, a component of service charges on deposits, increased by 2% from the prior quarter and by 12% for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023.

Non-interest Expense
Non-interest expense was $271 million for the third quarter of 2024, down $8 million from the prior quarter. Excluding merger and restructuring expense, exit and disposal costs, and accruals for the FDIC special assessment, non-interest expense was $268 million2, up $6 million from the prior quarter, which included an $8 million reversal of prior compensation-related accruals that did not repeat in the third quarter. Salary and wages expense was down $6 million from the prior quarter, due largely to staff reductions that took place throughout the second quarter of 2024, with some of the benefit offset by higher group insurance costs. Please refer to the Q3 2024 Earnings Presentation for additional expense details.

2 "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for additional information.


Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 3
Balance Sheet
Total consolidated assets were $51.9 billion as of September 30, 2024, down slightly from $52.0 billion as of June 30, 2024. Cash and cash equivalents were $2.1 billion as of September 30, 2024, essentially unchanged from June 30, 2024. Including secured off-balance sheet lines of credit, total available liquidity was $19.4 billion as of September 30, 2024, representing 37% of total assets, 47% of total deposits, and 138% of uninsured deposits. Available-for-sale securities, which are held on balance sheet at fair value, were $8.7 billion as of September 30, 2024, an increase of $174 million relative to June 30, 2024, as the increase in the fair value of the portfolio more than offset paydowns. Please refer to the Q3 2024 Earnings Presentation for additional details related to our securities portfolio and liquidity position.

Gross loans and leases were $37.5 billion as of September 30, 2024, a decrease of $207 million relative to June 30, 2024. "Healthy business activity, like loan payoffs related to business and property sales and project completions, contributed to the quarter's loan contraction," commented Mr. Nixon. "Balances also declined as a result of our strategic decision to allow transactional loans to trend lower as we organically remix the portfolio into relationship-driven commercial loans." Please refer to the Q3 2024 Earnings Presentation for additional details related to our loan portfolio, which include underwriting characteristics, the composition of our commercial portfolios, and disclosure related to our office portfolio.

Customer deposit growth of $602 million enabled a 20% reduction in brokered CDs during the third quarter of 2024. Total deposits were $41.5 billion as of September 30, 2024, essentially unchanged from June 30, 2024, as a result of the intentional reduction in wholesale funding balances. Please refer to the Q3 2024 Earnings Presentation for additional details related to deposit characteristics and flows.

Credit Quality
The allowance for credit losses was $438 million, or 1.17% of loans and leases, compared to $439 million, or 1.16% of loans and leases, as of June 30, 2024. The provision for credit losses was $29 million for the third quarter of 2024, and it reflects credit migration trends, charge-off activity, and changes in the economic forecasts used in credit models.

Net charge-offs were 0.31% of average loans and leases (annualized) for the third quarter of 2024, compared to 0.32% for the second quarter of 2024. Net charge-offs in the FinPac portfolio were $20 million in the third quarter, down $5 million from the second quarter as lower delinquencies in the transportation sector of the portfolio resulted in lower charge-off activity. Net charge-offs excluding the FinPac portfolio were $9 million in the third quarter. Non-performing assets were $168 million, or 0.32% of total assets, as of September 30, 2024, compared to $156 million, or 0.30% of total assets, as of June 30, 2024. Please refer to the Q3 2024 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 $25.17 as of September 30, 2024, compared to $23.76 as of June 30, 2024. The change reflects organic net capital generation and a favorable change in accumulated other comprehensive (loss) income ("AOCI") to $(234) million at September 30, 2024, compared to $(456) million at 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 $219 million as of September 30, 2024, compared to $442 million as of June 30, 2024. Tangible book value per common share3 was $17.81 as of September 30, 2024, compared to $16.26 as of June 30, 2024.

Columbia's estimated total risk-based capital ratio was 12.5% and its estimated common equity tier 1 risk-based capital ratio was 10.3% as of September 30, 2024, compared to 12.2% and 10.0%, respectively, as of June 30, 2024. Columbia remains above current “well-capitalized” regulatory minimums. The regulatory capital ratios as of September 30, 2024 are estimates, pending completion and filing of Columbia's regulatory reports.

3 "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for additional information.


Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 4
Earnings Presentation and Conference Call Information
Columbia's Q3 2024 Earnings Presentation provides additional disclosure. A copy will be available on our investor relations page: www.columbiabankingsystem.com.

Columbia will host its third quarter 2024 earnings conference call on October 24, 2024, at 8:30 a.m. PT (11:30 a.m. ET). During the call, Columbia's management will provide an update on recent activities and discuss its third quarter 2024 financial results. Participants may register for the call using the link below to receive dial-in details and their own unique PINs or join the audiocast. It is recommended you join 10 minutes prior to the start time.

Register for the call: https://register.vevent.com/register/BIabbcdb79db7641c096e78119393cf06f
Join the audiocast: https://edge.media-server.com/mmc/p/rzbdb27z/
Access the replay through Columbia's investor relations page: www.columbiabankingsystem.com

About Columbia Banking System, Inc.
Columbia (Nasdaq: COLB) is headquartered in Tacoma, Washington and is the parent company of Umpqua Bank, an award-winning western U.S. regional bank based in Lake Oswego, Oregon. Umpqua 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. With over $50 billion of assets, Umpqua 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. Umpqua Bank customers also have access to comprehensive investment and wealth management expertise as well as healthcare and private banking through Columbia Wealth Advisors and Columbia Trust Company, a division of Umpqua Bank. Learn more at www.columbiabankingsystem.com.

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 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; 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; any failure to realize the anticipated benefits of the merger when expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the merger and integration of the companies; 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.





Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 5


Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 6
Columbia Banking System, Inc.
Consolidated Statements of Income
(Unaudited)
 Quarter Ended% Change
($ in thousands, except per share data)Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Seq.
Quarter		Year over Year
Interest income:     
Loans and leases$588,603 $583,874 $575,044 $577,741 $569,670 1 %3 %
Interest and dividends on investments: 
Taxable76,074 78,828 75,017 78,010 80,066 (3)%(5)%
Exempt from federal income tax6,855 6,904 6,904 6,966 6,929 (1)%(1)%
Dividends2,681 2,895 3,707 4,862 4,941 (7)%(46)%
Temporary investments and interest bearing deposits24,683 23,035 23,553 24,055 34,407 7 %(28)%
Total interest income698,896 695,536 684,225 691,634 696,013 — %— %
Interest expense:     
Deposits208,027 207,307 198,435 170,659 126,974 — %64 %
Securities sold under agreement to repurchase and federal funds purchased1,121 1,515 1,266 1,226 1,220 (26)%(8)%
Borrowings49,636 49,418 51,275 56,066 77,080 — %(36)%
Junior and other subordinated debentures9,894 9,847 9,887 10,060 9,864 — %— %
Total interest expense268,678 268,087 260,863 238,011 215,138 — %25 %
Net interest income430,218 427,449 423,362 453,623 480,875 1 %(11)%
Provision for credit losses28,769 31,820 17,136 54,909 36,737 (10)%(22)%
Non-interest income:     
Service charges on deposits18,549 18,503 16,064 17,349 17,410 — %7 %
Card-based fees14,591 14,681 13,183 14,593 15,674 (1)%(7)%
Financial services and trust revenue5,083 5,396 4,464 3,011 4,651 (6)%9 %
Residential mortgage banking revenue, net6,668 5,848 4,634 4,212 7,103 14 %(6)%
Gain (loss) on sale of debt securities, net3 (1)12 9 4 nm(25)%
Gain (loss) on equity securities, net2,272 325 (1,565)2,636 (2,055)nmnm
Gain (loss) on loan and lease sales, net161 (1,516)221 1,161 1,871 nm(91)%
BOLI income4,674 4,705 4,639 4,331 4,440 (1)%5 %
Other income (loss)14,158 (3,238)8,705 18,231 (5,117)nmnm
Total non-interest income66,159 44,703 50,357 65,533 43,981 48 %50 %
Non-interest expense:     
Salaries and employee benefits147,268 145,066 154,538 157,572 159,041 2 %(7)%
Occupancy and equipment, net45,056 45,147 45,291 48,160 43,070 — %5 %
Intangible amortization29,055 29,230 32,091 33,204 29,879 (1)%(3)%
FDIC assessments9,332 9,664 14,460 42,510 11,200 (3)%(17)%
Merger and restructuring expense2,364 14,641 4,478 7,174 18,938 (84)%(88)%
Other expenses38,283 35,496 36,658 48,556 42,019 8 %(9)%
Total non-interest expense271,358 279,244 287,516 337,176 304,147 (3)%(11)%
Income before provision for income taxes196,250 161,088 169,067 127,071 183,972 22 %7 %
Provision for income taxes50,068 40,944 44,987 33,540 48,127 22 %4 %
Net income$146,182 $120,144 $124,080 $93,531 $135,845 22 %8 %
Weighted average basic shares outstanding208,545 208,498 208,260 208,083 208,070 — %— %
Weighted average diluted shares outstanding209,454 209,011 208,956 208,739 208,645 — %— %
Earnings per common share – basic$0.70 $0.58 $0.60 $0.45 $0.65 21 %8 %
Earnings per common share – diluted$0.70 $0.57 $0.59 $0.45 $0.65 23 %8 %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."




Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 7

Columbia Banking System, Inc.
Consolidated Statements of Income
(Unaudited)
 Nine Months Ended% Change
($ in thousands, except per share data)Sep 30, 2024Sep 30, 2023Year over Year
Interest income:   
Loans and leases$1,747,521 $1,535,874 14 %
Interest and dividends on investments:
Taxable229,919 198,831 16 %
Exempt from federal income tax20,663 17,143 21 %
Dividends9,283 8,241 13 %
Temporary investments and interest bearing deposits71,271 87,604 (19)%
Total interest income2,078,657 1,847,693 13 %
Interest expense: 
Deposits613,769 290,995 111 %
Securities sold under agreement to repurchase and federal funds purchased3,902 2,697 45 %
Borrowings150,329 186,848 (20)%
Junior and other subordinated debentures29,628 27,605 7 %
Total interest expense797,628 508,145 57 %
Net interest income1,281,029 1,339,548 (4)%
Provision for credit losses77,725 158,290 (51)%
Non-interest income: 
Service charges on deposits53,116 48,176 10 %
Card-based fees42,455 40,670 4 %
Financial services and trust revenue14,943 10,460 43 %
Residential mortgage banking revenue, net17,150 12,577 36 %
Gain on sale of debt securities, net14 4 250 %
Gain (loss) on equity securities, net1,032 (336)nm
(Loss) gain on loan and lease sales, net(1,134)3,253 (135)%
BOLI income14,018 11,293 24 %
Other income19,625 12,297 60 %
Total non-interest income161,219 138,394 16 %
Non-interest expense: 
Salaries and employee benefits446,872 458,531 (3)%
Occupancy and equipment, net135,494 135,320 0 %
Intangible amortization90,376 78,092 16 %
FDIC assessments33,456 28,892 16 %
Merger and restructuring expense21,483 164,485 (87)%
Other expenses110,437 110,204 0 %
Total non-interest expense838,118 975,524 (14)%
Income before provision for income taxes526,405 344,128 53 %
Provision for income taxes135,999 88,944 53 %
Net income$390,406 $255,184 53 %
Weighted average basic shares outstanding208,435 190,997 9 %
Weighted average diluted shares outstanding209,137 191,546 9  %
Earnings per common share – basic$1.87 $1.34 40 %
Earnings per common share – diluted$1.87 $1.33 41 %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."




Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 8
Columbia Banking System, Inc.
Consolidated Balance Sheets
(Unaudited)
    % Change
($ in thousands, except per share data)Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Seq.
Quarter		Year over Year
Assets:     
Cash and due from banks$591,364 $515,263 $440,215 $498,496 $492,474 15 %20 %
Interest-bearing cash and temporary investments1,519,658 1,553,568 1,760,902 1,664,038 1,911,221 (2)%(20)%
Investment securities:     
Equity and other, at fair value79,996 77,221 77,203 76,995 73,638 4 %9 %
Available for sale, at fair value8,676,807 8,503,000 8,616,545 8,829,870 8,503,986 2 %2 %
Held to maturity, at amortized cost2,159 2,203 2,247 2,300 2,344 (2)%(8)%
Loans held for sale66,639 56,310 47,201 30,715 60,313 18 %10 %
Loans and leases37,503,002 37,709,987 37,642,413 37,441,951 37,170,598 (1)%1 %
Allowance for credit losses on loans and leases(420,054)(418,671)(414,344)(440,871)(416,560)— %1 %
Net loans and leases37,082,948 37,291,316 37,228,069 37,001,080 36,754,038 (1)%1 %
Restricted equity securities116,274 116,274 116,274 179,274 168,524 — %(31)%
Premises and equipment, net338,107 337,842 336,869 338,970 337,855 — %— %
Operating lease right-of-use assets106,224 108,278 113,833 115,811 114,220 (2)%(7)%
Goodwill1,029,234 1,029,234 1,029,234 1,029,234 1,029,234 — %— %
Other intangible assets, net513,303 542,358 571,588 603,679 636,883 (5)%(19)%
Residential mortgage servicing rights, at fair value101,919 110,039 110,444 109,243 117,640 (7)%(13)%
Bank-owned life insurance691,160 686,485 682,293 680,948 648,232 1 %7 %
Deferred tax asset, net286,432 361,773 356,031 347,203 469,841 (21)%(39)%
Other assets706,375 756,319 735,058 665,740 673,372 (7)%5 %
Total assets$51,908,599 $52,047,483 $52,224,006 $52,173,596 $51,993,815 — %— %
Liabilities:     
 Deposits
Non-interest-bearing$13,534,065 $13,481,616 $13,808,554 $14,256,452 $15,532,948 — %(13)%
Interest-bearing27,980,623 28,041,656 27,897,606 27,350,568 26,091,420 — %7 %
  Total deposits41,514,688 41,523,272 41,706,160 41,607,020 41,624,368 — %— %
Securities sold under agreements to repurchase183,833 197,860 213,573 252,119 258,383 (7)%(29)%
Borrowings3,650,000 3,900,000 3,900,000 3,950,000 3,985,000 (6)%(8)%
Junior subordinated debentures, at fair value311,896 310,187 309,544 316,440 331,545 1 %(6)%
Junior and other subordinated debentures, at amortized cost107,725 107,781 107,838 107,895 107,952 — %— %
Operating lease liabilities121,298 123,082 129,240 130,576 129,845 (1)%(7)%
Other liabilities745,331 908,629 900,406 814,512 924,560 (18)%(19)%
Total liabilities46,634,771 47,070,811 47,266,761 47,178,562 47,361,653 (1)%(2)%
Shareholders' equity:     
Common stock5,812,237 5,807,041 5,802,322 5,802,747 5,798,167 — %— %
Accumulated deficit(304,525)(374,687)(418,946)(467,571)(485,576)(19)%(37)%
Accumulated other comprehensive loss(233,884)(455,682)(426,131)(340,142)(680,429)(49)%(66)%
Total shareholders' equity5,273,828 4,976,672 4,957,245 4,995,034 4,632,162 6 %14 %
Total liabilities and shareholders' equity$51,908,599 $52,047,483 $52,224,006 $52,173,596 $51,993,815 — %— %
Common shares outstanding at period end209,532 209,459 209,370 208,585 208,575 — %— %



Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 9
Columbia Banking System, Inc.
Financial Highlights
(Unaudited)
 Quarter Ended% Change
 Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Seq. QuarterYear over Year
Per Common Share Data:
Dividends$0.36 $0.36 $0.36 $0.36 $0.36 — %— %
Book value$25.17 $23.76 $23.68 $23.95 $22.21 6 %13 %
Tangible book value (1)
$17.81 $16.26 $16.03 $16.12 $14.22 10 %25 %
Performance Ratios:
Efficiency ratio (2)
54.56 %59.02 %60.57 %64.81 %57.82 %(4.46)(3.26)
Non-interest expense to average assets (1)
2.08 %2.16 %2.22 %2.58 %2.28 %(0.08)(0.20)
Return on average assets ("ROAA")1.12 %0.93 %0.96 %0.72 %1.02 %0.19 0.10 
Pre-provision net revenue ("PPNR") ROAA (1)
1.72 %1.49 %1.44 %1.39 %1.65 %0.23 0.07 
Return on average common equity11.36 %9.85 %10.01 %7.90 %11.07 %1.51 0.29 
Return on average tangible common equity (1)
16.34 %14.55 %14.82 %12.19 %16.93 %1.79 (0.59)
Performance Ratios - Operating: (1)
Operating efficiency ratio, as adjusted (1), (2), (5), (6)
53.89 %53.56 %56.97 %57.31 %51.26 %0.33 2.63 
Operating non-interest expense to average assets (1)
2.05 %2.03 %2.14 %2.25 %2.10 %0.02 (0.05)
Operating ROAA (1), (6)
1.10 %1.08 %1.04 %0.89 %1.23 %0.02 (0.13)
Operating PPNR ROAA (1), (6)
1.69 %1.70 %1.55 %1.62 %1.94 %(0.01)(0.25)
Operating return on average common equity (1), (6)
11.15 %11.47 %10.89 %9.81 %13.40 %(0.32)(2.25)
Operating return on average tangible common equity (1), (6)
16.04 %16.96 %16.12 %15.14 %20.48 %(0.92)(4.44)
Average Balance Sheet Yields, Rates, & Ratios:     
Yield on loans and leases6.22 %6.20 %6.13 %6.13 %6.08 %0.02 0.14 
Yield on earning assets (2)
5.78 %5.80 %5.69 %5.75 %5.65 %(0.02)0.13 
Cost of interest bearing deposits2.95 %2.97 %2.88 %2.54 %2.01 %(0.02)0.94 
Cost of interest bearing liabilities3.29 %3.31 %3.25 %3.02 %2.72 %(0.02)0.57 
Cost of total deposits1.99 %2.01 %1.92 %1.63 %1.23 %(0.02)0.76 
Cost of total funding (3)
2.32 %2.34 %2.27 %2.05 %1.81 %(0.02)0.51 
Net interest margin (2)
3.56 %3.56 %3.52 %3.78 %3.91 %— (0.35)
Average interest bearing cash / Average interest earning assets3.74 %3.51 %3.56 %3.64 %5.17 %0.23 (1.43)
Average loans and leases / Average interest earning assets77.91 %78.27 %77.87 %78.04 %75.64 %(0.36)2.27 
Average loans and leases / Average total deposits90.42 %90.61 %90.41 %89.91 %90.63 %(0.19)(0.21)
Average non-interest bearing deposits / Average total deposits32.52 %32.54 %33.29 %35.88 %38.55 %(0.02)(6.03)
Average total deposits / Average total funding (3)
90.25 %90.15 %90.09 %90.02 %86.66 %0.10 3.59 
Select Credit & Capital Ratios:
Non-performing loans and leases to total loans and leases
0.44 %0.41 %0.38 %0.30 %0.28 %0.03 0.16 
Non-performing assets to total assets
0.32 %0.30 %0.28 %0.22 %0.20 %0.02 0.12 
Allowance for credit losses to loans and leases1.17 %1.16 %1.16 %1.24 %1.18 %0.01 (0.01)
Total risk-based capital ratio (4)
12.5 %12.2 %12.0 %11.9 %11.6 %0.30 0.90 
Common equity tier 1 risk-based capital ratio (4)
10.3 %10.0 %9.8 %9.6 %9.5 %0.30 0.80 
(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.
(5) The operating efficiency ratio was adjusted in the first quarter of 2024 to remove B&O taxes and for a tax-equivalent adjustment to BOLI income. The Company views the adjusted operating efficiency ratio as a better representation of its efficiency ratio when compared to other banks as it normalizes for the tax treatment of the adjusted items. The adjustment re-aligns Columbia's calculation of its operating efficiency ratio with its pre-merger calculation.
(6) Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes adding the FDIC special assessment to the non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company.




Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 10
Columbia Banking System, Inc.
Financial Highlights
(Unaudited)
Nine Months Ended% Change
 Sep 30, 2024Sep 30, 2023Year over Year
Per Common Share Data:
Dividends$1.08 $1.07 0.93 %
Performance Ratios:
Efficiency ratio (2)
57.99 %65.87 %(7.88)
Non-interest expense to average assets (1)
2.15 %2.68 %(0.53)
Return on average assets1.00 %0.70 %0.30 
PPNR ROAA (1)
1.55 %1.38 %0.17 
Return on average common equity10.42 %7.77 %2.65 
Return on average tangible common equity (1)
15.27 %11.21 %4.06 
Performance Ratios - Operating: (1)
Operating efficiency ratio, as adjusted (1), (2), (4), (5)
54.80 %52.70 %2.10 
Operating non-interest expense to average assets (1)
2.07 %2.21 %(0.14)
Operating ROAA (1), (5)
1.07 %1.11 %(0.04)
Operating PPNR ROAA (1), (5)
1.65 %1.91 %(0.26)
Operating return on average common equity (1), (5)
11.17 %12.34 %(1.17)
Operating return on average tangible common equity (1), (5)
16.36 %17.80 %(1.44)
Average Balance Sheet Yields, Rates, & Ratios:  
Yield on loans and leases6.18 %5.88 %0.30 
Yield on earning assets (2)
5.76 %5.46 %0.30 
Cost of interest bearing deposits2.93 %1.68 %1.25 
Cost of interest bearing liabilities3.28 %2.38 %0.90 
Cost of total deposits1.97 %1.02 %0.95 
Cost of total funding (3)
2.31 %1.56 %0.75 
Net interest margin (2)
3.55 %3.96 %(0.41)
Average interest bearing cash / Average interest earning assets3.61 %5.05 %(1.44)
Average loans and leases / Average interest earning assets78.02 %76.91 %1.11 
Average loans and leases / Average total deposits90.48 %91.42 %(0.94)
Average non-interest bearing deposits / Average total deposits32.78 %39.28 %(6.50)
Average total deposits / Average total funding (3)
90.16 %87.53 %2.63 

(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) The operating efficiency ratio was adjusted in the first quarter of 2024 to remove B&O taxes and for a tax-equivalent adjustment to BOLI income. The Company views the adjusted operating efficiency ratio as a better representation of its efficiency ratio when compared to other banks as it normalizes for the tax treatment of the adjusted items. The adjustment re-aligns Columbia's calculation of its operating efficiency ratio with its pre-merger calculation.
(5) Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes adding the FDIC special assessment to the non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company.




Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 11
Columbia Banking System, Inc.
Loan & Lease Portfolio Balances and Mix
(Unaudited)
Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023% Change
($ in thousands)AmountAmountAmountAmountAmountSeq. QuarterYear over Year
Loans and leases:     
Commercial real estate:   
Non-owner occupied term, net$6,391,806 $6,407,351 $6,557,768 $6,482,940 $6,490,638 — %(2)%
Owner occupied term, net5,210,485 5,230,511 5,231,676 5,195,605 5,235,227 — %— %
Multifamily, net5,779,737 5,868,848 5,828,960 5,704,734 5,684,495 (2)%2 %
Construction & development, net1,988,923 1,946,693 1,728,652 1,747,302 1,669,918 2 %19 %
Residential development, net244,579 269,106 284,117 323,899 354,922 (9)%(31)%
Commercial:
Term, net5,429,209 5,559,548 5,544,450 5,536,765 5,437,915 (2)%— %
Lines of credit & other, net2,640,669 2,558,633 2,491,557 2,430,127 2,353,548 3 %12 %
Leases & equipment finance, net1,670,427 1,701,943 1,706,759 1,729,512 1,728,991 (2)%(3)%
Residential:
Mortgage, net5,944,734 5,992,163 6,128,884 6,157,166 6,121,838 (1)%(3)%
Home equity loans & lines, net2,017,336 1,982,786 1,950,421 1,938,166 1,899,948 2 %6 %
   Consumer & other, net185,097 192,405 189,169 195,735 193,158 (4)%(4)%
Total loans and leases, net of deferred fees and costs$37,503,002 $37,709,987 $37,642,413 $37,441,951 $37,170,598 (1)%1 %
Loans and leases mix:
Commercial real estate:
   Non-owner occupied term, net17 %17 %17 %17 %17 %
   Owner occupied term, net14 %14 %14 %14 %14 %
   Multifamily, net15 %15 %15 %15 %15 %
Construction & development, net5 %5 %5 %5 %4 %
Residential development, net1 %1 %1 %1 %1 %
Commercial:
Term, net15 %15 %15 %15 %15 %
Lines of credit & other, net7 %6 %6 %6 %6 %
Leases & equipment finance, net4 %5 %5 %5 %5 %
Residential:
Mortgage, net16 %16 %16 %16 %17 %
Home equity loans & lines, net5 %5 %5 %5 %5 %
   Consumer & other, net1 %1 %1 %1 %1 %
Total100 %100 %100 %100 %100 %




Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 12
Columbia Banking System, Inc.
Deposit Portfolio Balances and Mix
(Unaudited)
Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023% Change
($ in thousands)AmountAmountAmountAmountAmountSeq. QuarterYear over Year
Deposits:     
Demand, non-interest bearing$13,534,065 $13,481,616 $13,808,554 $14,256,452 $15,532,948 0 %(13)%
Demand, interest bearing8,444,424 8,195,284 8,095,211 8,044,432 6,898,831 3 %22 %
Money market11,351,066 10,927,813 10,822,498 10,324,454 10,349,217 4 %10 %
Savings2,450,924 2,508,598 2,640,060 2,754,113 3,018,706 (2)%(19)%
Time5,734,209 6,409,961 6,339,837 6,227,569 5,824,666 (11)%(2)%
Total$41,514,688 $41,523,272 $41,706,160 $41,607,020 $41,624,368 — %— %
Total core deposits (1)
$37,774,870 $37,159,069 $37,436,569 $37,423,402 $37,597,830 2 %0 %
Deposit mix:
Demand, non-interest bearing33 %33 %34 %34 %37 %
Demand, interest bearing20 %20 %19 %19 %17 %
Money market27 %26 %26 %25 %25 %
Savings6 %6 %6 %7 %7 %
Time14 %15 %15 %15 %14 %
Total100 %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. Reports Third Quarter 2024 Results
October 24, 2024
Page 13
Columbia Banking System, Inc.
Credit Quality – Non-performing Assets
 (Unaudited)
 Quarter Ended% Change
($ in thousands)Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Seq. QuarterYear over Year
Non-performing assets: (1)
     
Loans and leases on non-accrual status:
Commercial real estate, net$37,332 $37,584 $39,736 $28,689 $26,053 (1)%43 %
Commercial, net61,464 54,986 58,960 45,682 44,341 12 %39 %
Total loans and leases on non-accrual status98,796 92,570 98,696 74,371 70,394 7 %40 %
Loans and leases past due 90+ days and accruing: (2)
Commercial real estate, net136 — 253 870 71 nm92 %
Commercial, net6,012 5,778 10,733 8,232 8,606 4 %(30)%
Residential, net (2)
59,961 54,525 31,916 29,102 25,180 10 %138 %
Consumer & other, net317 220 437 326 240 44 %32 %
Total loans and leases past due 90+ days and accruing (2)
66,426 60,523 43,339 38,530 34,097 10 %95 %
Total non-performing loans and leases (1), (2)
165,222 153,093 142,035 112,901 104,491 8 %58 %
Other real estate owned2,395 2,839 1,762 1,036 1,170 (16)%105 %
Total non-performing assets (1), (2)
$167,617 $155,932 $143,797 $113,937 $105,661 7 %59 %
Loans and leases past due 31-89 days$67,310 $85,998 $109,673 $85,235 $82,918 (22)%(19)%
Loans and leases past due 31-89 days to total loans and leases0.18 %0.23 %0.29 %0.23 %0.22 %(0.05)(0.04)
Non-performing loans and leases to total loans and leases (1), (2)
0.44 %0.41 %0.38 %0.30 %0.28 %0.03 0.16 
Non-performing assets to total assets (1), (2)
0.32 %0.30 %0.28 %0.22 %0.20 %0.02 0.12 
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

(1) Non-accrual and 90+ days past due loans include government guarantees of $65.8 million, $64.6 million, $43.0 million, $31.6 million, and $26.9 million at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.

(2) Excludes certain mortgage loans guaranteed by GNMA, which Columbia has the unilateral right to repurchase but has not done so, totaling $3.7 million, $1.0 million, $1.6 million, $1.0 million, and $700,000 at September 30, 2024, June 30, 2024, March 31, 2024, December 31, 2023, and September 30, 2023, respectively.



Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 14

Columbia Banking System, Inc.
Credit Quality – Allowance for Credit Losses
(Unaudited)
Quarter Ended% Change
($ in thousands)Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Seq. QuarterYear over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period$418,671 $414,344 $440,871 $416,560 $404,603 1 %3 %
Provision for credit losses on loans and leases30,498 34,760 17,476 53,183 35,082 (12)%(13)%
Charge-offs
Commercial real estate, net— (585)(161)(629)— nmnm
Commercial, net(32,645)(33,561)(47,232)(31,949)(26,629)(3)%23 %
Residential, net(936)(504)(490)(89)(206)86 %354 %
Consumer & other, net(1,395)(1,551)(1,870)(1,841)(1,884)(10)%(26)%
Total charge-offs(34,976)(36,201)(49,753)(34,508)(28,719)(3)%22 %
Recoveries
Commercial real estate, net44 551 358 35 31 (92)%42 %
Commercial, net5,258 4,198 4,732 4,414 4,901 25 %7 %
Residential, net143 411 170 781 156 (65)%(8)%
Consumer & other, net416 608 490 406 506 (32)%(18)%
Total recoveries 5,861 5,768 5,750 5,636 5,594 2 %5 %
Net (charge-offs) recoveries
Commercial real estate, net44 (34)197 (594)31 nm42 %
Commercial, net(27,387)(29,363)(42,500)(27,535)(21,728)(7)%26 %
Residential, net(793)(93)(320)692 (50)nmnm
Consumer & other, net(979)(943)(1,380)(1,435)(1,378)4 %(29)%
Total net charge-offs(29,115)(30,433)(44,003)(28,872)(23,125)(4)%26 %
Balance, end of period$420,054 $418,671 $414,344 $440,871 $416,560 0 %1 %
Reserve for unfunded commitments
Balance, beginning of period$19,928 $22,868 $23,208 $21,482 $19,827 (13)%1 %
(Recapture) provision for credit losses on unfunded commitments (1,729)(2,940)(340)1,726 1,655 (41)%(204)%
Balance, end of period18,199 19,928 22,868 23,208 21,482 (9)%(15)%
Total Allowance for credit losses (ACL)$438,253 $438,599 $437,212 $464,079 $438,042 0 %— %
Net charge-offs to average loans and leases (annualized)0.31 %0.32 %0.47 %0.31 %0.25 %(0.01)0.06 
Recoveries to gross charge-offs16.76 %15.93 %11.56 %16.33 %19.48 %0.83 (2.72)
ACLLL to loans and leases1.12 %1.11 %1.10 %1.18 %1.12 %0.01 — 
ACL to loans and leases1.17 %1.16 %1.16 %1.24 %1.18 %0.01 (0.01)
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."




Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 15
Columbia Banking System, Inc.
Credit Quality – Allowance for Credit Losses
(Unaudited)
Nine Months Ended% Change
($ in thousands)Sep 30, 2024Sep 30, 2023Year over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period$440,871 $301,135 46 %
Initial ACL recorded for PCD loans acquired during the period— 26,492 (100)%
Provision for credit losses on loans and leases (1)
82,734 156,796 (47)%
Charge-offs
Commercial real estate, net(746)(174)329 %
Commercial, net(113,438)(77,913)46 %
Residential, net(1,930)(458)321 %
Consumer & other, net(4,816)(3,921)23 %
Total charge-offs(120,930)(82,466)47 %
Recoveries
Commercial real estate, net953 298 220 %
Commercial, net14,188 12,470 14 %
Residential, net724 342 112 %
Consumer & other, net1,514 1,493 1 %
Total recoveries17,379 14,603 19 %
Net (charge-offs) recoveries
Commercial real estate, net207 124 67 %
Commercial, net(99,250)(65,443)52 %
Residential, net(1,206)(116)nm
Consumer & other, net(3,302)(2,428)36 %
Total net charge-offs(103,551)(67,863)53 %
Balance, end of period$420,054 $416,560 1 %
Reserve for unfunded commitments
Balance, beginning of period$23,208 $14,221 63 %
Initial ACL recorded for unfunded commitments acquired during the period— 5,767 (100)%
Recapture for credit losses on unfunded commitments (5,009)1,494 (435)%
Balance, end of period18,199 21,482 (15)%
Total Allowance for credit losses (ACL)$438,253 $438,042 0 %
Net charge-offs to average loans and leases (annualized)0.37 %0.26 %0.11 
Recoveries to gross charge-offs14.37 %17.71 %(3.34)
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

(1) For the nine months ended September 30, 2023, the provision for credit losses on loans and leases includes $88.4 million initial provision related to non-PCD loans acquired during the period.


Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 16
Columbia Banking System, Inc.
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates
(Unaudited)
Quarter Ended
September 30, 2024June 30, 2024September 30, 2023
($ in thousands)Average BalanceInterest Income or ExpenseAverage Yields or RatesAverage BalanceInterest Income or ExpenseAverage Yields or RatesAverage BalanceInterest Income or ExpenseAverage Yields or Rates
INTEREST-EARNING ASSETS:      
Loans held for sale$67,764 $1,122 6.62 %$101,516 $1,628 6.42 %$199,855 $1,741 3.49 %
Loans and leases (1)
37,543,561 587,481 6.22 %37,663,396 582,246 6.20 %37,050,518 567,929 6.08 %
Taxable securities7,943,391 78,755 3.97 %7,839,202 81,723 4.17 %8,356,165 85,007 4.07 %
Non-taxable securities (2)
828,362 7,821 3.78 %825,030 7,889 3.82 %844,417 8,085 3.83 %
Temporary investments and interest-bearing cash1,802,396 24,683 5.45 %1,688,602 23,035 5.49 %2,530,150 34,407 5.40 %
Total interest-earning assets (1), (2)
48,185,474 $699,862 5.78 %48,117,746 $696,521 5.80 %48,981,105 $697,169 5.65 %
Goodwill and other intangible assets1,559,696 1,588,239 1,684,093 
Other assets2,263,847 2,275,570 2,346,163 
Total assets$52,009,017 $51,981,555 $53,011,361 
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits$8,312,685 $57,237 2.74 %$8,147,516 $53,890 2.66 %$6,578,849 $25,209 1.52 %
Money market deposits11,085,499 77,948 2.80 %10,849,259 76,466 2.83 %10,249,028 50,039 1.94 %
Savings deposits2,480,170 1,085 0.17 %2,555,458 929 0.15 %3,109,779 1,253 0.16 %
Time deposits6,140,692 71,757 4.65 %6,488,923 76,022 4.71 %5,184,089 50,473 3.86 %
Total interest-bearing deposits28,019,046 208,027 2.95 %28,041,156 207,307 2.97 %25,121,745 126,974 2.01 %
Repurchase agreements and federal funds purchased194,805 1,121 2.29 %224,973 1,515 2.71 %268,444 1,220 1.80 %
Borrowings3,873,913 49,636 5.10 %3,900,000 49,418 5.10 %5,603,207 77,080 5.46 %
Junior and other subordinated debentures417,393 9,894 9.43 %417,329 9,847 9.49 %420,582 9,864 9.30 %
Total interest-bearing liabilities32,505,157 $268,678 3.29 %32,583,458 $268,087 3.31 %31,413,978 $215,138 2.72 %
Non-interest-bearing deposits13,500,235 13,526,483 15,759,720 
Other liabilities885,033 963,375 970,688 
Total liabilities46,890,425 47,073,316 48,144,386 
Common equity5,118,592 4,908,239 4,866,975 
Total liabilities and shareholders' equity$52,009,017 $51,981,555 $53,011,361 
NET INTEREST INCOME (2)
$431,184 $428,434 $482,031 
NET INTEREST SPREAD (2)
2.49 %2.49 %2.93 %
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)
3.56 %3.56 %3.91 %
(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 $966,000 for the three months ended September 30, 2024, as compared to $985,000 for the three months ended June 30, 2024 and $1.2 million for the three months ended September 30, 2023. 



Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 17
Columbia Banking System, Inc.
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates
(Unaudited)
Nine Months Ended
 September 30, 2024September 30, 2023
($ in thousands)Average BalanceInterest Income or ExpenseAverage Yields or RatesAverage BalanceInterest Income or ExpenseAverage Yields or Rates
INTEREST-EARNING ASSETS:      
Loans held for sale$66,614 $3,275 6.56 %$100,753 $3,222 4.26 %
Loans and leases (1)
37,601,142 1,744,246 6.18 %34,765,319 1,532,652 5.88 %
Taxable securities7,954,491 239,202 4.01 %7,336,862 207,072 3.76 %
Non-taxable securities (2)
834,887 23,596 3.77 %717,064 20,163 3.75 %
Temporary investments and interest-bearing cash1,737,501 71,271 5.48 %2,283,461 87,604 5.13 %
Total interest-earning assets (1), (2)
48,194,635 $2,081,590 5.76 %45,203,459 $1,850,713 5.46 %
Goodwill and other intangible assets1,588,916 1,345,833 
Other assets2,241,239 2,159,775 
Total assets$52,024,790 $48,709,067 
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits$8,165,718 $162,505 2.66 %$5,829,737 $52,301 1.20 %
Money market deposits10,849,807 226,911 2.79 %9,857,001 123,980 1.68 %
Savings deposits2,574,318 2,729 0.14 %3,032,653 2,686 0.12 %
Time deposits6,344,727 221,624 4.67 %4,371,643 112,028 3.43 %
Total interest-bearing deposits27,934,570 613,769 2.93 %23,091,034 290,995 1.68 %
Repurchase agreements and federal funds purchased217,067 3,902 2.40 %277,896 2,697 1.30 %
Borrowings3,898,175 150,329 5.15 %4,726,335 186,848 5.29 %
Junior and other subordinated debentures419,409 29,628 9.44 %414,855 27,605 8.90 %
Total interest-bearing liabilities32,469,221 $797,628 3.28 %28,510,120 $508,145 2.38 %
Non-interest-bearing deposits13,622,319 14,937,028 
Other liabilities928,597 872,370 
Total liabilities47,020,137 44,319,518 
Common equity5,004,653 4,389,549 
Total liabilities and shareholders' equity$52,024,790 $48,709,067 
NET INTEREST INCOME (2)
$1,283,962 $1,342,568 
NET INTEREST SPREAD (2)
2.48 %3.08 %
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)
  3.55 %  3.96 %
(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 $2.9 million for the nine months ended September 30, 2024, as compared to $3.0 million for the same period in 2023. 



Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 18

Columbia Banking System, Inc.
Residential Mortgage Banking Activity
(Unaudited)
 Quarter Ended% Change
($ in thousands)Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Seq. QuarterYear over Year
Residential mortgage banking revenue:   
Origination and sale$5,225 $3,452 $2,920 $2,686 $2,442 51 %114 %
Servicing6,012 5,952 6,021 5,966 8,887 1 %(32)%
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time(3,127)(3,183)(3,153)(3,215)(4,801)(2)%(35)%
Changes due to valuation inputs or assumptions(6,540)1,238 3,117 (6,251)5,308 nm(223)%
MSR hedge gain (loss)5,098 (1,611)(4,271)5,026 (4,733)nmnm
Total$6,668 $5,848 $4,634 $4,212 $7,103 14 %(6)%
Closed loan volume for-sale$161,094 $140,875 $86,903 $87,033 $103,333 14 %56 %
Gain on sale margin3.24 %2.45 %3.36 %3.09 %2.36 %0.790.88
Residential mortgage servicing rights:     
Balance, beginning of period$110,039 $110,444 $109,243 $117,640 $172,929 — %(36)%
Additions for new MSR capitalized1,547 1,540 1,237 920 1,658 — %(7)%
Sale of MSR assets— — — 149 (57,454)nmnm
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time(3,127)(3,183)(3,153)(3,215)(4,801)(2)%(35)%
Changes due to valuation inputs or assumptions (6,540)1,238 3,117 (6,251)5,308 nm(223)%
Balance, end of period$101,919 $110,039 $110,444 $109,243 $117,640 (7)%(13)%
Residential mortgage loans serviced for others$7,965,538 $8,120,046 $8,081,039 $8,175,664 $8,240,950 (2)%(3)%
MSR as % of serviced portfolio1.28 %1.36 %1.37 %1.34 %1.43 %(0.08)(0.15)
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."






Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 19

Columbia Banking System, Inc.
Residential Mortgage Banking Activity
(Unaudited)
 Nine Months Ended% Change
($ in thousands)Sep 30, 2024Sep 30, 2023Year over Year
Residential mortgage banking revenue:  
Origination and sale$11,597 $9,195 26 %
Servicing17,985 27,451 (34)%
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time(9,463)(14,479)(35)%
Changes due to valuation inputs or assumptions(2,185)129 nm
MSR hedge loss (784)(9,719)(92)%
Total$17,150 $12,577 36 %
Closed loan volume for-sale$388,872 $354,535 10 %
Gain on sale margin2.98 %2.59 %0.39 
Residential mortgage servicing rights:   
Balance, beginning of period$109,243 $185,017 (41)%
Additions for new MSR capitalized4,324 4,427 (2)%
Sale of MSR assets— (57,454)nm
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time(9,463)(14,479)(35)%
Changes due to valuation inputs or assumptions (2,185)129 nm
Balance, end of period$101,919 $117,640 (13)%
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."





Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 20
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 Reconciliation
(Unaudited)
Quarter Ended% Change
($ in thousands, except per share data)Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Seq. QuarterYear over Year
Total shareholders' equitya$5,273,828 $4,976,672 $4,957,245 $4,995,034 $4,632,162 6 %14 %
Less: Goodwill1,029,234 1,029,234 1,029,234 1,029,234 1,029,234 — %— %
Less: Other intangible assets, net513,303 542,358 571,588 603,679 636,883 (5)%(19)%
Tangible common shareholders' equityb$3,731,291 $3,405,080 $3,356,423 $3,362,121 $2,966,045 10 %26 %
Total assetsc$51,908,599 $52,047,483 $52,224,006 $52,173,596 $51,993,815 — %— %
Less: Goodwill1,029,234 1,029,234 1,029,234 1,029,234 1,029,234 — %— %
Less: Other intangible assets, net513,303 542,358 571,588 603,679 636,883 (5)%(19)%
Tangible assetsd$50,366,062 $50,475,891 $50,623,184 $50,540,683 $50,327,698 — %— %
Common shares outstanding at period end e209,532 209,459 209,370 208,585 208,575 — %— %
Total shareholders' equity to total assets ratioa / c10.16 %9.56 %9.49 %9.57 %8.91 %0.60 1.25 
Tangible common equity to tangible assets ratiob / d7.41 %6.75 %6.63 %6.65 %5.89 %0.66 1.52 
Book value per common sharea / e$25.17 $23.76 $23.68 $23.95 $22.21 6 %13 %
Tangible book value per common shareb / e$17.81 $16.26 $16.03 $16.12 $14.22 10 %25 %



Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 21
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Quarter Ended% Change
($ in thousands)Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Seq. QuarterYear over Year
Non-Interest Income Adjustments
Gain (loss) on sale of debt securities, net$3 $(1)$12 $9 $4 nm(25)%
Gain (loss) on equity securities, net2,272 325 (1,565)2,636 (2,055)nmnm
(Loss) gain on swap derivatives(3,596)424 1,197 (8,042)5,700 nm(163)%
Change in fair value of certain loans held for investment9,365 (10,114)(2,372)19,354 (19,247)nmnm
Change in fair value of MSR due to valuation inputs or assumptions(6,540)1,238 3,117 (6,251)5,308 nm(223)%
MSR hedge gain (loss)5,098 (1,611)(4,271)5,026 (4,733)nmnm
Total non-interest income adjustmentsa$6,602 $(9,739)$(3,882)$12,732 $(15,023)nmnm
Non-Interest Expense Adjustments
Merger and restructuring expense$2,364 $14,641 $4,478 $7,174 $18,938 (84)%(88)%
Exit and disposal costs631 1,218 1,272 2,791 4,017 (48)%(84)%
    FDIC special assessment (2)
— 884 4,848 32,923 — (100)%nm
Total non-interest expense adjustmentsb$2,995 $16,743 $10,598 $42,888 $22,955 (82)%(87)%
Net interest incomec$430,218 $427,449 $423,362 $453,623 $480,875 1 %(11)%
Non-interest income (GAAP)d$66,159 $44,703 $50,357 $65,533 $43,981 48 %50 %
Less: Non-interest income adjustmentsa(6,602)9,739 3,882 (12,732)15,023 (168)%(144)%
Operating non-interest income (non-GAAP)e$59,557 $54,442 $54,239 $52,801 $59,004 9 %1 %
Revenue (GAAP)f=c+d$496,377 $472,152 $473,719 $519,156 $524,856 5 %(5)%
Operating revenue (non-GAAP)g=c+e$489,775 $481,891 $477,601 $506,424 $539,879 2 %(9)%
Non-interest expense (GAAP)h$271,358 $279,244 $287,516 $337,176 $304,147 (3)%(11)%
Less: Non-interest expense adjustmentsb(2,995)(16,743)(10,598)(42,888)(22,955)(82)%(87)%
Operating non-interest expense (non-GAAP)i$268,363 $262,501 $276,918 $294,288 $281,192 2 %(5)%
Net income (GAAP)j$146,182 $120,144 $124,080 $93,531 $135,845 22 %8 %
Provision for income taxes50,068 40,944 44,987 33,540 48,127 22 %4 %
Income before provision for income taxes196,250 161,088 169,067 127,071 183,972 22 %7 %
Provision for credit losses28,769 31,820 17,136 54,909 36,737 (10)%(22)%
Pre-provision net revenue (PPNR) (non-GAAP)k225,019 192,908 186,203 181,980 220,709 17 %2 %
Less: Non-interest income adjustmentsa(6,602)9,739 3,882 (12,732)15,023 (168)%(144)%
Add: Non-interest expense adjustmentsb2,995 16,743 10,598 42,888 22,955 (82)%(87)%
Operating PPNR (non-GAAP)l$221,412 $219,390 $200,683 $212,136 $258,687 1 %(14)%
Net income (GAAP)j$146,182 $120,144 $124,080 $93,531 $135,845 22 %8 %
Less: Non-interest income adjustmentsa(6,602)9,739 3,882 (12,732)15,023 (168)%(144)%
Add: Non-interest expense adjustmentsb2,995 16,743 10,598 42,888 22,955 (82)%(87)%
Tax effect of adjustments902 (6,621)(3,620)(7,539)(9,482)nmnm
Operating net income (non-GAAP)m$143,477 $140,005 $134,940 $116,148 $164,341 2 %(13)%
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
 


Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 22
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Quarter Ended% Change
($ in thousands, except per share data)Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Seq. QuarterYear over Year
Average assetsn$52,009,017 $51,981,555 $52,083,973 $51,832,356 $53,011,361 — %(2)%
Less: Average goodwill and other intangible assets, net1,559,696 1,588,239 1,619,134 1,652,282 1,684,093 (2)%(7)%
Average tangible assetso$50,449,321 $50,393,316 $50,464,839 $50,180,074 $51,327,268 — %(2)%
Average common shareholders' equityp$5,118,592 $4,908,239 $4,985,875 $4,695,736 $4,866,975 4 %5 %
Less: Average goodwill and other intangible assets, net1,559,696 1,588,239 1,619,134 1,652,282 1,684,093 (2)%(7)%
Average tangible common equityq$3,558,896 $3,320,000 $3,366,741 $3,043,454 $3,182,882 7 %12 %
Weighted average basic shares outstanding r208,545 208,498 208,260 208,083 208,070 — %— %
Weighted average diluted shares outstanding s209,454 209,011 208,956 208,739 208,645 — %— %
Select Per-Share & Performance Metrics
Earnings-per-share - basic j / r$0.70 $0.58 $0.60 $0.45 $0.65 21 %8 %
Earnings-per-share - dilutedj / s$0.70 $0.57 $0.59 $0.45 $0.65 23 %8 %
Efficiency ratio (1)
h / f54.56 %59.02 %60.57 %64.81 %57.82 %(4.46)(3.26)
Non-interest expense to average assetsh / n2.08 %2.16 %2.22 %2.58 %2.28 %(0.08)(0.20)
Return on average assetsj / n1.12 %0.93 %0.96 %0.72 %1.02 %0.19 0.10 
Return on average tangible assetsj / o1.15 %0.96 %0.99 %0.74 %1.05 %0.19 0.10 
PPNR return on average assetsk / n1.72 %1.49 %1.44 %1.39 %1.65 %0.23 0.07 
Return on average common equityj / p11.36 %9.85 %10.01 %7.90 %11.07 %1.51 0.29 
Return on average tangible common equityj / q16.34 %14.55 %14.82 %12.19 %16.93 %1.79 (0.59)
Operating Per-Share & Performance Metrics
Operating earnings-per-share - basic (2)
m / r$0.69 $0.67 $0.65 $0.56 $0.79 3 %(13)%
Operating earnings-per-share - diluted (2)
m / s$0.69 $0.67 $0.65 $0.56 $0.79 3 %(13)%
Operating efficiency ratio, as adjusted (1), (2), (3)
u / y53.89 %53.56 %56.97 %57.31 %51.26 %0.33 2.63 
Operating non-interest expense to average assets i / n2.05 %2.03 %2.14 %2.25 %2.10 %0.02 (0.05)
Operating return on average assets (2)
m / n1.10 %1.08 %1.04 %0.89 %1.23 %0.02 (0.13)
Operating return on average tangible assets (2)
m / o1.13 %1.12 %1.08 %0.92 %1.27 %0.01 (0.14)
Operating PPNR return on average assets (2)
l / n1.69 %1.70 %1.55 %1.62 %1.94 %(0.01)(0.25)
Operating return on average common equity (2)
m / p11.15 %11.47 %10.89 %9.81 %13.40 %(0.32)(2.25)
Operating return on average tangible common equity (2)
m / q16.04 %16.96 %16.12 %15.14 %20.48 %(0.92)(4.44)
(1) Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.
(2) Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes the FDIC special assessment in non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company.
(3) The operating efficiency ratio was adjusted in the first quarter of 2024 to remove B&O taxes and for a tax-equivalent adjustment to BOLI income. The Company views the adjusted operating efficiency ratio as a better representation of its efficiency ratio when compared to other banks as it normalizes for the tax treatment of the adjusted items. The adjustment re-aligns Columbia's calculation of its operating efficiency ratio with its pre-merger calculation.



Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 23
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Operating Efficiency Ratio, as adjusted
(Unaudited)
Quarter Ended% Change
($ in thousands)Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Seq. QuarterYear over Year
Non-interest expense (GAAP)h$271,358 $279,244 $287,516 $337,176 $304,147 (3)%(11)%
Less: Non-interest expense adjustmentsb(2,995)(16,743)(10,598)(42,888)(22,955)(82)%(87)%
Operating non-interest expense (non-GAAP)i268,363 262,501 276,918 294,288 281,192 2 %(5)%
Less: B&O taxest(3,248)(3,183)(3,223)(2,727)(3,275)2 %(1)%
Operating non-interest expense, excluding B&O taxes (non-GAAP)u$265,115 $259,318 $273,695 $291,561 $277,917 2 %(5)%
Net interest income (tax equivalent) (1)
v$431,184 $428,434 $424,344 $454,730 $482,031 1 %(11)%
Non-interest income (GAAP)d66,159 44,703 50,357 65,533 43,981 48 %50 %
Add: BOLI tax equivalent adjustment (1)
w1,248 1,291 1,809 1,182 1,178 (3)%6 %
Total Revenue, excluding BOLI tax equivalent adjustments (tax equivalent)x498,591 474,428 476,510 521,445 527,190 5 %(5)%
Less: Non-interest income adjustmentsa(6,602)9,739 3,882 (12,732)15,023 (168)%(144)%
Total Adjusted Operating Revenue, excluding BOLI tax equivalent adjustments (tax equivalent) (non-GAAP)y$491,989 $484,167 $480,392 $508,713 $542,213 2 %(9)%
Efficiency ratio (1)
h / f54.56 %59.02 %60.57 %64.81 %57.82 %(4.46)(3.26)
Operating efficiency ratio, as adjusted (non-GAAP) (1), (2), (3)
u / y53.89 %53.56 %56.97 %57.31 %51.26 %0.33 2.63 

(1) Tax-exempt income was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.
(2) Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes the FDIC special assessment in non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company.
(3) The operating efficiency ratio was adjusted in the first quarter of 2024 to remove B&O taxes and for a tax-equivalent adjustment to BOLI income. The Company views the adjusted operating efficiency ratio as a better representation of its efficiency ratio when compared to other banks as it normalizes for the tax treatment of the adjusted items. The adjustment re-aligns Columbia's calculation of its operating efficiency ratio with its pre-merger calculation.



Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 24

Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Nine Months Ended% Change
($ in thousands)Sep 30, 2024Sep 30, 2023Year over Year
Non-Interest Income Adjustments
Gain on sale of debt securities, net$14 $4 250 %
Gain (loss) on equity securities, net1,032 (336)nm
(Loss) gain on swap derivatives(1,975)3,445 (157)%
Change in fair value of certain loans held for investment(3,121)(16,724)(81)%
Change in fair value of MSR due to valuation inputs or assumptions(2,185)129 nm
   MSR hedge loss(784)(9,719)(92)%
Total non-interest income adjustmentsa$(7,019)$(23,201)(70)%
Non-Interest Expense Adjustments
Merger and restructuring expense$21,483 $164,485 (87)%
Exit and disposal costs3,121 7,427 (58)%
    FDIC special assessment (2)
5,732 — nm
Total non-interest expense adjustmentsb$30,336 $171,912 (82)%
Net interest incomec$1,281,029 $1,339,548 (4)%
Non-interest income (GAAP)d$161,219 $138,394 16 %
Less: Non-interest income adjustmentsa7,019 23,201 (70)%
Operating non-interest income (non-GAAP)e$168,238 $161,595 4 %
Revenue (GAAP)f=c+d$1,442,248 $1,477,942 (2)%
Operating revenue (non-GAAP)g=c+e$1,449,267 $1,501,143 (3)%
Non-interest expense (GAAP)h$838,118 $975,524 (14)%
Less: Non-interest expense adjustmentsb(30,336)(171,912)(82)%
Operating non-interest expense (non-GAAP)i$807,782 $803,612 1 %
Net income (GAAP)j$390,406 $255,184 53 %
Provision for income taxes135,999 88,944 53 %
Income before provision for income taxes526,405 344,128 53 %
Provision for credit losses77,725 158,290 (51)%
Pre-provision net revenue (PPNR) (non-GAAP)k604,130 502,418 20 %
Less: Non-interest income adjustmentsa7,019 23,201 (70)%
Add: Non-interest expense adjustmentsb30,336 171,912 (82)%
Operating PPNR (non-GAAP)l$641,485 $697,531 (8)%
Net income (GAAP)j$390,406 $255,184 53 %
Less: Non-interest income adjustmentsa7,019 23,201 (70)%
Add: Non-interest expense adjustmentsb30,336 171,912 (82)%
Tax effect of adjustments(9,339)(45,028)(79)%
Operating net income (non-GAAP)m$418,422 $405,269 3 %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."


Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 25
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Nine Months Ended% Change
($ in thousands)Sep 30, 2024Sep 30, 2023Year over Year
Average assetsn$52,024,790 $48,709,067 7 %
Less: Average goodwill and other intangible assets, net1,588,916 1,345,833 18 %
Average tangible assetso$50,435,874 $47,363,234 6 %
Average common shareholders' equityp$5,004,653 $4,389,549 14 %
Less: Average goodwill and other intangible assets, net1,588,916 1,345,833 18 %
Average tangible common equityq$3,415,737 $3,043,716 12 %
Weighted average basic shares outstandingr208,435 190,997 9 %
Weighted average diluted shares outstandings209,137 191,546 9 %
Select Per-Share & Performance Metrics
Earnings-per-share - basic j / r$1.87 $1.34 40 %
Earnings-per-share - dilutedj / s$1.87 $1.33 41 %
Efficiency ratio (1)
h / f57.99 %65.87 %(7.88)
Non-interest expense to average assetsh/n2.15 %2.68 %(0.53)
Return on average assetsj / n1.00 %0.70 %0.30 
Return on average tangible assetsj / o1.03 %0.72 %0.31 
PPNR return on average assetsk/n1.55 %1.38 %0.17 
Return on average common equityj / p10.42 %7.77 %2.65 
Return on average tangible common equityj / q15.27 %11.21 %4.06 
Operating Per-Share & Performance Metrics
Operating earnings-per-share - basic (2)
m / r$2.01 $2.12 (5)%
Operating earnings-per-share - diluted (2)
m / s$2.00 $2.12 (6)%
Operating efficiency ratio, as adjusted (1), (2), (3)
u / y54.80 %52.70 %2.10 
Operating non-interest expense to average assetsi/n2.07 %2.21 %(0.14)
Operating return on average assets (2)
m / n1.07 %1.11 %(0.04)
Operating return on average tangible assets (2)
m / o1.11 %1.14 %(0.03)
Operating PPNR return on average assets (2)
l / n1.65 %1.91 %(0.26)
Operating return on average common equity (2)
m / p11.17 %12.34 %(1.17)
Operating return on average tangible common equity (2)
m / q16.36 %17.80 %(1.44)
    
(1) Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.
(2) Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes the FDIC special assessment in non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company.
(3) The operating efficiency ratio was adjusted in the first quarter of 2024 to remove B&O taxes and for a tax-equivalent adjustment to BOLI income. The Company views the adjusted operating efficiency ratio as a better representation of its efficiency ratio when compared to other banks as it normalizes for the tax treatment of the adjusted items. The adjustment re-aligns Columbia's calculation of its operating efficiency ratio with its pre-merger calculation.






Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 26
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Operating Efficiency Ratio, as adjusted
(Unaudited)
Nine Months Ended% change
($ in thousands)Sep 30, 2024Sep 30, 2023Year over Year
Non-interest expense (GAAP)h$838,118 $975,524 (14)%
Less: Non-interest expense adjustmentsb(30,336)(171,912)(82)%
Operating non-interest expense (non-GAAP)i807,782 803,612 1 %
Less: B&O taxest(9,654)(9,051)7 %
Operating non-interest expense, excluding B&O taxes (non-GAAP)u$798,128 $794,561 — %
Net interest income (tax equivalent) (1)
v$1,283,962 $1,342,568 (4)%
Non-interest income (GAAP)d161,219 138,394 16 %
Add: BOLI tax equivalent adjustment (1)
w4,348 3,495 24 %
Total Revenue, excluding BOLI tax equivalent adjustments (tax equivalent)x1,449,529 1,484,457 (2)%
Less: Non-interest income adjustmentsa7,019 23,201 (70)%
Total Adjusted Operating Revenue, excluding BOLI tax equivalent adjustments (tax equivalent) (non-GAAP)y$1,456,548 $1,507,658 (3)%
Efficiency ratio (1)
h /f57.99 %65.87 %(7.88)
Operating efficiency ratio, as adjusted (non-GAAP) (1), (2), (3)
u / y54.80 %52.70 %2.10 

(1) Tax-exempt income was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.
(2) Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes the FDIC special assessment in non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company.
(3) The operating efficiency ratio was adjusted in the first quarter of 2024 to remove B&O taxes and for a tax-equivalent adjustment to BOLI income. The Company views the adjusted operating efficiency ratio as a better representation of its efficiency ratio when compared to other banks as it normalizes for the tax treatment of the adjusted items. The adjustment re-aligns Columbia's calculation of its operating efficiency ratio with its pre-merger calculation.


Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 27
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Quarter Ended% Change
($ in thousands)Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Seq. QuarterYear over Year
Loans and leases interest incomea$587,481 $582,246 $574,519 $577,092 $567,929 1 %3 %
Less: Acquired loan accretion - rate related (2), (3)
b21,963 24,942 23,482 26,914 28,963 (12)%(24)%
Less: Acquired loan accretion - credit related (3)
c4,127 4,835 5,119 5,430 6,370 (15)%(35)%
Adjusted loans and leases interest incomed=a-b-c$561,391 $552,469 $545,918 $544,748 $532,596 2 %5 %
Taxable securities interest incomee$78,755 $81,723 $78,724 $82,872 $85,007 (4)%(7)%
Less: Acquired taxable securities accretion - rate relatedf35,359 40,120 31,527 34,290 39,219 (12)%(10)%
Adjusted Taxable securities interest incomeg=e-f$43,396 $41,603 $47,197 $48,582 $45,788 4 %(5)%
Non-taxable securities interest income (1)
h$7,821 $7,889 $7,886 $8,073 $8,085 (1)%(3)%
Less: Acquired non-taxable securities accretion - rate relatedi2,241 2,256 2,270 2,309 2,288 (1)%(2)%
Adjusted Taxable securities interest income (1)
j=h-i$5,580 $5,633 $5,616 $5,764 $5,797 (1)%(4)%
Interest income (1)
k$699,862 $696,521 $685,207 $692,741 $697,169 — %— %
Less: Acquired loan and securities accretion - rate related (3)
l=b+f+i59,563 67,318 57,279 63,513 70,470 (12)%(15)%
Less: Acquired loan accretion - credit related (3)
c4,127 4,835 5,119 5,430 6,370 (15)%(35)%
Adjusted interest income (1)
m=k-l-c$636,172 $624,368 $622,809 $623,798 $620,329 2 %3 %
Interest-bearing deposits interest expensen$208,027 $207,307 $198,435 $170,659 $126,974 — %64 %
Less: Acquired deposit accretiono— — — (187)(373)nmnm
Adjusted interest-bearing deposits interest expensep=n-o$208,027 $207,307 $198,435 $170,846 $127,347 — %63 %
Interest expenseq$268,678 $268,087 $260,863 $238,011 $215,138 — %25 %
Less: Acquired interest-bearing liabilities accretion (2)
r(57)(57)(57)(244)(430)— %(87)%
Adjusted interest expenses=q-r$268,735 $268,144 $260,920 $238,255 $215,568 — %25 %
Net Interest Income (1)
t$431,184 $428,434 $424,344 $454,730 $482,031 1 %(11)%
Less: Acquired loan, securities, and interest-bearing liabilities accretion - rate related (3)
u=l-r59,620 67,375 57,336 63,757 70,900 (12)%(16)%
Less: Acquired loan accretion - credit related (3)
c4,127 4,835 5,119 5,430 6,370 (15)%(35)%
Adjusted net interest income (1)
v=t-u-c$367,437 $356,224 $361,889 $385,543 $404,761 3 %(9)%
Average loans and leasesaa37,543,561 37,663,396 37,597,101 37,333,310 37,050,518 — %1 %
Average taxable securitiesab7,943,391 7,839,202 8,081,003 7,903,053 8,356,165 1 %(5)%
Average non-taxable securitiesac828,362 825,030 851,342 809,551 844,417 — %(2)%
Average interest-earning assetsad48,185,474 48,117,746 48,280,787 47,838,229 48,981,105 — %(2)%
Average interest-bearing depositsae28,019,046 28,041,156 27,742,579 26,622,343 25,121,745 0 %12 %
Average interest-bearing liabilitiesaf32,505,157 32,583,458 32,318,653 31,226,600 31,413,978 0 %3 %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

(1)Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate.
(2)Includes discount accretion related to UHC's 2014 acquisition of Sterling Financial Corporation.
(3)The cumulative fair value discount on historical Columbia loans was established as of February 28, 2023, and the allocation between the credit-related discount and the rate-related discount was established at that time. Our disclosure of credit-related and rate-related discount accretion is an estimate based on the relative allocation of these two items to the discount at the closing of the merger. 


Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 28
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Quarter Ended% Change
($ in thousands)Sep 30, 2024Jun 30, 2024Mar 31, 2024Dec 31, 2023Sep 30, 2023Seq. QuarterYear over Year
Average yield on loans and leasesa / aa6.22 %6.20 %6.13 %6.13 %6.08 %0.02 0.14 
Less: Acquired loan accretion - rate related (2),(3)
b / aa0.23 %0.27 %0.25 %0.29 %0.31 %(0.04)(0.08)
Less: Acquired loan accretion - credit related (3)
c / aa0.04 %0.05 %0.05 %0.06 %0.07 %(0.01)(0.03)
Adjusted average yield on loans and leasesd / aa5.95 %5.88 %5.83 %5.78 %5.70 %0.07 0.25 
Average yield on taxable securitiese / ab3.97 %4.17 %3.90 %4.19 %4.07 %(0.20)(0.10)
Less: Acquired taxable securities accretion - rate relatedf / ab1.77 %2.06 %1.57 %1.72 %1.86 %(0.29)(0.09)
Adjusted average yield on taxable securitiesg / ab2.20 %2.11 %2.33 %2.47 %2.21 %0.09 (0.01)
Average yield on non-taxable securities (1)
h / ac3.78 %3.82 %3.71 %3.99 %3.83 %(0.04)(0.05)
Less: Acquired non-taxable securities accretion - rate relatedi / ac1.08 %1.10 %1.07 %1.13 %1.07 %(0.02)0.01 
Adjusted yield on non-taxable securities (1)
j / ac2.70 %2.72 %2.64 %2.86 %2.76 %(0.02)(0.06)
Average yield on interest-earning assets (1)
k / ad5.78 %5.80 %5.69 %5.75 %5.65 %(0.02)0.13 
Less: Acquired loan and securities accretion - rate related (3)
l / ad0.49 %0.56 %0.48 %0.53 %0.57 %(0.07)(0.08)
Less: Acquired loan accretion - credit related (3)
c / ad0.04 %0.04 %0.04 %0.05 %0.05 %— (0.01)
Adjusted average yield on interest-earning assets (1)
m / ad5.25 %5.20 %5.17 %5.17 %5.03 %0.05 0.22 
Average rate on interest-bearing depositsn / ae2.95 %2.97 %2.88 %2.54 %2.01 %(0.02)0.94 
Less: Acquired deposit accretiono / ae— %— %— %— %(0.01)%— 0.01 
Adjusted average rate on interest-bearing depositsp / ae2.95 %2.97 %2.88 %2.54 %2.02 %(0.02)0.93 
Average rate on interest-bearing liabilitiesq / af3.29 %3.31 %3.25 %3.02 %2.72 %(0.02)0.57 
Less: Acquired interest-bearing liabilities accretion (2)
r / af— %— %— %— %(0.01)%— 0.01 
Adjusted average rate on interest-bearing liabilitiess / af3.29 %3.31 %3.25 %3.02 %2.73 %(0.02)0.56 
Net interest margin (1)
t / ad3.56 %3.56 %3.52 %3.78 %3.91 %— (0.35)
Less: Acquired loan, securities, and interest-bearing liabilities accretion - rate related (3)
u / ad0.49 %0.56 %0.48 %0.53 %0.58 %(0.07)(0.09)
Less: Acquired loan accretion - credit related (3)
c / ad0.04 %0.04 %0.04 %0.05 %0.05 %— (0.01)
Adjusted net interest margin (1)
v / ad3.03 %2.96 %3.00 %3.20 %3.28 %0.07 (0.25)

(1)Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate.
(2) Includes discount accretion related to UHC's 2014 acquisition of Sterling Financial Corporation.
(3)The cumulative fair value discount on historical Columbia loans was established as of February 28, 2023, and the allocation between the credit-related discount and the rate-related discount was established at that time. Our disclosure of credit-related and rate-related discount accretion is an estimate based on the relative allocation of these two items to the discount at closing. 


Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 29
 
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Nine Months Ended
($ in thousands)Sep 30, 2024Sep 30, 2023Year over Year
Loans and leases interest incomea$1,744,246 $1,532,652 14 %
Less: Acquired loan accretion - rate related (2), (3)
b70,387 71,343 (1)%
Less: Acquired loan accretion - credit related (3)
c14,081 17,276 (18)%
Adjusted loans and leases interest incomed=a-b-c$1,659,778 $1,444,033 15 %
Taxable securities interest incomee$239,202 $207,072 16 %
Less: Acquired taxable securities accretion - rate relatedf107,006 89,376 20 %
Adjusted Taxable securities interest incomeg=e-f$132,196 $117,696 12 %
Non-taxable securities interest income (1)
h$23,596 $20,163 17 %
Less: Acquired non-taxable securities accretion - rate relatedi6,767 5,463 24 %
Adjusted Taxable securities interest income (1)
j=h-i$16,829 $14,700 14 %
Interest income (1)
k$2,081,590 $1,850,713 12 %
Less: Acquired loan and securities accretion - rate related (3)
l=b+f+i184,160 166,182 11 %
Less: Acquired loan accretion - credit related (3)
c14,081 17,276 (18)%
Adjusted interest income (1)
m=k-l-c$1,883,349 $1,667,255 13 %
Interest-bearing deposits interest expensen$613,769 $290,995 111 %
Less: Acquired deposit accretiono— (746)nm
Adjusted interest-bearing deposits interest expensep=n-o$613,769 $291,741 110 %
Interest expenseq$797,628 $508,145 57 %
Less: Acquired interest-bearing liabilities accretion (2)
r(171)(917)(81)%
Adjusted interest expenses=q-r$797,799 $509,062 57 %
Net Interest Income (1)
t$1,283,962 $1,342,568 (4)%
Less: Acquired loan, securities, and interest-bearing liabilities accretion - rate related (3)
u=l-r184,331 167,099 10 %
Less: Acquired loan accretion - credit related (3)
c14,081 17,276 (18)%
Adjusted net interest income (1)
v=t-u-c$1,085,550 $1,158,193 (6)%
Average loans and leasesaa37,601,142 34,765,319 8 %
Average taxable securitiesab7,954,491 7,336,862 8 %
Average non-taxable securitiesac834,887 717,064 16 %
Average interest-earning assetsad48,194,635 45,203,459 7 %
Average interest-bearing depositsae27,934,570 23,091,034 21 %
Average interest-bearing liabilitiesaf32,469,221 28,510,120 14 %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

(1)Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate.
(2)Includes discount accretion related to UHC's 2014 acquisition of Sterling Financial Corporation.
(3)The cumulative fair value discount on historical Columbia loans was established as of February 28, 2023, and the allocation between the credit-related discount and the rate-related discount was established at that time. Our disclosure of credit-related and rate-related discount accretion is an estimate based on the relative allocation of these two items to the discount at the closing of the merger. 


Columbia Banking System, Inc. Reports Third Quarter 2024 Results
October 24, 2024
Page 30
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Nine Months Ended
($ in thousands)Sep 30, 2024Sep 30, 2023Year over Year
Average yield on loans and leasesa / aa6.18 %5.88 %0.30 
Less: Acquired loan accretion - rate related (2),(3)
b / aa0.25 %0.27 %(0.02)
Less: Acquired loan accretion - credit related (3)
c / aa0.05 %0.07 %(0.02)
Adjusted average yield on loans and leasesd / aa5.88 %5.54 %0.34 
Average yield on taxable securitiese / ab4.01 %3.76 %0.25 
Less: Acquired taxable securities accretion - rate relatedf / ab1.80 %1.63 %0.17 
Adjusted average yield on taxable securitiesg / ab2.21 %2.13 %0.08 
Average yield on non-taxable securities (1)
h / ac3.77 %3.75 %0.02 
Less: Acquired non-taxable securities accretion - rate relatedi / ac1.08 %1.02 %0.06 
Adjusted yield on non-taxable securities (1)
j / ac2.69 %2.73 %(0.04)
Average yield on interest-earning assets (1)
k / ad5.76 %5.46 %0.30 
Less: Acquired loan and securities accretion - rate related (3)
l / ad0.51 %0.49 %0.02 
Less: Acquired loan accretion - credit related (3)
c / ad0.04 %0.05 %(0.01)
Adjusted average yield on interest-earning assets (1)
m / ad5.21 %4.92 %0.29 
Average rate on interest-bearing depositsn / ae2.93 %1.68 %1.25 
Less: Acquired deposit accretiono / ae— %— %— 
Adjusted average rate on interest-bearing depositsp / ae2.93 %1.68 %1.25 
Average rate on interest-bearing liabilitiesq / af3.28 %2.38 %0.90 
Less: Acquired interest-bearing liabilities accretion (2)
r / af— %— %— 
Adjusted average rate on interest-bearing liabilitiess / af3.28 %2.38 %0.90 
Net interest margin (1)
t / ad3.55 %3.96 %(0.41)
Less: Acquired loan, securities, and interest-bearing liabilities accretion - rate related (3)
u / ad0.51 %0.49 %0.02 
Less: Acquired loan accretion - credit related (3)
c / ad0.04 %0.05 %(0.01)
Adjusted net interest margin (1)
v / ad3.00 %3.42 %(0.42)

(1)Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate.
(2) Includes discount accretion related to UHC's 2014 acquisition of Sterling Financial Corporation.
(3)The cumulative fair value discount on historical Columbia loans was established as of February 28, 2023, and the allocation between the credit-related discount and the rate-related discount was established at that time. Our disclosure of credit-related and rate-related discount accretion is an estimate based on the relative allocation of these two items to the discount at closing. 

3rd Quarter 2024 Earnings Presentation October 24, 2024

 
Disclaimer FORWARD-LOOKING STATEMENTS This presentation 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 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; 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; any failure to realize the anticipated benefits of the merger when expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the merger and integration of the companies; 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. 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 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. REVERSE ACQUISITION METHOD OF ACCOUNTING On February 28, 2023, Columbia Banking System, Inc. (“Columbia,” “we,” or “our”) completed its merger with Umpqua Holdings Corporation ("UHC"), combining the two premier banks in the Northwest to create one of the largest banks headquartered in the West (the "merger"). Columbia's financial results for any periods ended prior to February 28, 2023 reflect UHC results only on a standalone basis. In addition, Columbia's reported financial results for the nine months ended September 30, 2023 reflect UHC financial results only until the closing of the merger after the close of business on February 28, 2023. As a result of these two factors, Columbia's financial results for the nine months ended September 30, 2024 may not be directly comparable to prior reported periods. Under the reverse acquisition method of accounting, the assets and liabilities of Columbia as of February 28, 2023 ("historical Columbia") were recorded at their respective fair values. 2

 
Columbia Banking System: A Franchise Like No Other 3 West-Focused Regional Powerhouse Business Bank of Choice ■ In-market, relationship-based commercial banking ■ Attractive footprint in high-growth markets ■ Full suite of deposit products and services with contemporary digital capabilities ■ Expertise in treasury management, foreign exchange, and global cash management ■ Expanding small business platform ■ Comprehensive and growing wealth advisory and trust businesses ■ Niche verticals include diverse agricultural, healthcare, tribal banking, and equipment finance Columbia at a Glance Co rp or at e Ticker COLB Headquarters Tacoma, Washington Offices ~300 in eight states Fi na nc ia ls a s of S ep te m be r 30 , 2 02 4 Assets $52 billion Loans $38 billion Deposits $42 billion Common Equity Tier 1 Capital Ratio 10.3%(1) Total Capital Ratio 12.5%(1) (1) Regulatory capital ratios are estimates pending completion and filing of Columbia’s regulatory reports.

 
Why Columbia? 4 ■ Community banking at scale business model drives 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 shareholders ■ Strong credit quality supported by diversified, well-structured, and conservatively underwritten loan portfolio ■ Compelling culture with deep community ties that is reflected in our proven ability to attract and retain top banking talent ■ Scaled western franchise that is difficult to replicate provides scarcity value

 
Operating in Large, Attractive Western Markets 5 Foothold in the West(1) Northwest (population in millions) Seattle, WA Portland, OR California and Nevada Los Angeles, CA Sacramento, CA Other West Phoenix, AZ Denver, CO 4.1mm 2.5mm 12.9mm 2.4mm 5.1mm 3.0mm Top Regional Bank in the NW (WA, OR, ID)(1) Total Northwest Rank Bank (HQ State) Assets ($B) Deposits ($B) Mkt Shr 1 Bank of America (NC) $3,258 $58 16.4 % 2 U.S. Bancorp (MN) 680 52 14.7 % 3 JPMorgan (NY) 4,143 45 12.7 % 4 Wells Fargo (CA) 1,940 40 11.3 % 5 COLB (WA) 52 34 9.6 % 6 KeyCorp (OH) 187 18 5.2 % 7 WaFd (WA) 29 12 3.4 % 8 Banner Corp. (WA) 16 11 3.0 % 5th Largest Bank HQ’d in our Footprint(1) Total Eight-State Footprint Rank Bank (HQ State) Assets ($B) Deposits ($B) Mkt Shr 1 Wells Fargo (CA) $1,940 $448 12.4 % 2 Zions (UT) 88 59 1.7 % 3 Western Alliance (AZ) 81 65 1.8 % 4 East West (CA) 72 52 1.5 % 5 COLB (WA) 52 42 1.2 % 6 Banc of California (CA) 35 24 0.7 % 7 WaFd (WA) 29 19 0.5 % 8 FirstBank (CO) 27 24 0.7 % Established Presence in Attractive Markets(1) ■ Our market share in the Northwest stands with large national and super regional banks, at nearly 10% ■ Our foothold in top western markets and scaled franchise provide us the opportunity to increase share in California, Arizona, Colorado, and Utah ■ Projected population growth of 3.2% over the next five years in our collective footprint exceeds the national average of 2.4% ■ Current household income in our footprint is 108% of the national average, and the five-year growth rate of 10.4% compares favorably to 10.1% nationally Boise, ID Salt Lake City, UT Las Vegas, NV 0.8mm 2.4mm 1.3mm (1) Population, household income, and asset data sourced from S&P Global Market Intelligence. Total assets as of June 30, 2024. Deposits and market share data sourced from the Federal Deposit Insurance Corporation (“FDIC”) as of June 30, 2024 and adjusted to a pro forma basis by the FDIC. Groups represent banks headquartered in the United States.

 
Opportunity to Increase Density and Gain Share throughout Our Footprint 6 Expand Footprint in California Broaden Presence in Other Western MarketsImprove Density in the Northwest Population Deposits ($mm) COLB MSA(1) (000s) Market COLB Mkt Shr Seattle 4,107 $140,176 $7,154 5.1 % Portland 2,537 65,049 5,328 8.2 % Boise 835 16,828 220 1.3 % Spokane 605 13,872 3,860 27.8 % Population Deposits ($mm) COLB MSA(1) (000s) Market COLB Mkt Shr Phoenix 5,120 $171,020 Adding targeted retail locations to support existing commercial banking presence Denver 3,031 110,993 Salt Lake City 1,284 76,171 Las Vegas 2,368 75,408 Population Deposits ($mm) COLB MSA(1) (000s) Market COLB Mkt Shr Los Angeles 12,869 $655,591 $1,045 0.2 % Sacramento 2,440 92,125 1,879 2.0 % San Francisco 4,592 428,928 518 0.1 % San Diego 3,298 106,844 34 < 0.1% (1) Population data sourced from S&P Global Market Intelligence. Deposits and market share data sourced from the FDIC as of June 30, 2024 and adjusted to a pro forma basis by the FDIC.

 
FINANCIAL HIGHLIGHTS

 
YTD 2024 Highlights 8 ■ Completed an enterprise-wide evaluation of our operations during Q1 2024 that resulted in consolidated positions, simplified reporting and organizational structures, and an improved profitability outlook. Identified gross savings of $82 million ($70 million net of planned reinvestments) that drive an expected Q4 2024 core expense run rate of $965 million to $985 million annualized, which excludes CDI amortization and non-operating expense(1). ■ Implemented targeted small business campaigns that use bundled solutions for customers without promotional pricing. Our new Business Online Banking platform, which was introduced during Q2 2024 to specifically meet the needs of our small business customers, has enhanced our teams’ ability to generate new business and deepen relationships with existing customers. ■ Generated approximately $600 million in new deposits through three highly successful campaigns, inclusive of the current campaign that runs through mid-November. ■ Account retention from campaigns one and two exceeds 99%. ■ Treasury management and commercial card income increased 12% and 19%, respectively, for the YTD period compared to the comparable period in 2023. Pipelines for these key contributors to core fee income remain strong. Reported Operating(1) $390 million $418 million Net Income Net Income $604 million $641 million Pre-Provision Net Revenue(1) Pre-Provision Net Revenue $1.87 $2.00 Earnings-per-Share - Diluted Earnings-per-Share - Diluted 1.00% 1.07% Return on Assets Return on Assets 1.55% 1.65% PPNR Return on Assets(1) PPNR Return on Assets 10.42% 11.17% Return on Equity Return on Equity 15.27% 16.36% Return on Tangible Common Equity(1) Return on Tangible Common Equity (1) Non-GAAP financial measure. A reconciliation to the comparable GAAP measurement for each is provided in the Appendix of this slide presentation.

 
Third Quarter 2024 Highlights 9 ■ Opened Umpqua Bank’s second retail branch in Arizona and announced a planned third location in the state, as we continue to reallocate savings from strategic consolidations into new locations in targeted growth markets. ■ Published the Umpqua Bank 2024 Business Barometer, an in-depth study into the mood, mindset, and strategic priorities of small and middle market businesses across the United States. The report serves as the foundation for topical discussions with key business leaders across our footprint. ■ Began the rollout of a new Customer Relationship Management (“CRM”) tool to enhance our bankers’ ability to provide exceptional service, improve organizational efficiency, and increase opportunities to generate revenue through needs-based solutions for existing and prospective customers. ■ Awarded 56 grants to local nonprofits across our Western footprint as part of our 2024 Community Grants Program. ■ Total risk-based capital ratio of 12.5%(2) as of September 30, 2024 highlights continued strong net capital generation since the merger closed in Q1 2023. Reported Operating(1) $146 million $143 million Net Income Net Income $225 million $221 million Pre-Provision Net Revenue(1) Pre-Provision Net Revenue $0.70 $0.69 Earnings-per-Share - Diluted Earnings-per-Share - Diluted 1.12% 1.10% Return on Assets Return on Assets 1.72% 1.69% PPNR Return on Assets(1) PPNR Return on Assets 11.36% 11.15% Return on Equity Return on Equity 16.34% 16.04% Return on Tangible Common Equity(1) Return on Tangible Common Equity (1) Non-GAAP financial measure. A reconciliation to the comparable GAAP measurement for each is provided in the Appendix of this slide presentation. (2) Regulatory capital ratios are estimates pending completion and filing of Columbia’s regulatory reports.

 
Our Diversified Commercial Bank Business Model with a Strong Retail Network Supports our Granular, High-Quality Deposit Base Non-interest, 33% Demand, 20% Money Market, 27% Savings, 6% Time, 14% Enterprise-wide Deposit Composition 10 ■ Deposits were $42 billion as of September 30, 2024 and represented by a granular base that is diversified by business line, industry, and geography. Our average customer account balance is $35 thousand(1). ■ Our use of public and brokered deposits as a source of funding beyond term debt impacts the composition of our enterprise-wide deposit portfolio. We believe our customer deposit composition(1) is more illustrative of the quality of Columbia’s core deposit franchise. Our bankers’ activity is geared toward protecting the quality of our relationship-based franchise while generating net customer balance growth to reduce the need for non-core funding sources over time. During Q3 2024, customer balance growth enabled us to reduce brokered deposit balances by 20%. Commercial, 28% Commercial - Small Business, 20% Consumer, 38% Brokered, 6% Public & Other, 8% Deposits by Category Customer Deposit Composition(1) Non-interest, 36% Demand, 19% Money Market, 28%Savings, 7% Time, 10% (1) Excludes all public, administrative, and brokered deposits, as detailed on the “Liquidity Overview” slide in the Appendix. Excluded balances accounted for 14% of total deposits as of September 30, 2024. This is a non-GAAP financial measure.

 
Available-for-Sale Securities Portfolio as of September 30, 2024 ($ in millions) Current Par Amortized Cost Unrealized Gains Unrealized Losses Fair Value % of Total AFS Portfolio Effective Duration Book Yield U.S. Treasuries $375 $369 $1 ($2) $368 4 % 1.7 3.51 % U.S. Agencies 1,156 1,171 $9 ($52) 1,128 13 % 3.6 2.79 % Mortgage-backed securities - residential agency 3,055 2,859 $25 ($213) 2,670 31 % 6.4 3.25 % Collateralized mortgage obligations(1) 1,263 1,181 $15 ($86) 1,110 13 % 5.5 3.51 % Obligations of states and political subdivisions 1,121 1,061 $19 ($19) 1,062 12 % 4.4 3.42 % Commercial mortgage-backed securities - agency 2,462 2,330 $37 ($28) 2,339 27 % 4.1 4.67 % Total available for sale securities $9,433 $8,970 $107 ($400) $8,677 4.9 3.62 % Percentage of current par 95% 1% (4%) 92% 11 Securities Portfolio Overview Note: Table may not foot due to rounding. (1) Portfolio includes $261 million in high-quality non-agency collateralized mortgage obligations (“CMO”) that were in a small unrealized gain position at September 30, 2024 (amortized cost of $253 million). The remaining $850 million of the portfolio is comprised primarily of residential agency CMOs. ■ The total available-for-sale (“AFS”) securities portfolio had a book yield of 3.62% and an effective duration of 4.9 as of September 30, 2024, compared to 3.63% and 5.2, respectively, as of June 30, 2024. ■ As of September 30, 2024, 64% of the AFS securities portfolio (by fair value) was in an unrealized gain position and had a weighted average book yield of 4.57%. The remaining 36% of the portfolio was in an unrealized loss position and had a weighted average book yield of 2.15%. Unrealized Gain, 64% Unrealized Loss, 36% Available-for-Sale Securities Portfolio Percentage at Gain / Loss as of September 30, 2024

 
Loan Roll Forward Activity $ in m ill io ns Three Months Ended September 30, 2024 $37,710 $875 ($103) ($610) ($311) ($60) $37,503 Beginning Balance (6/30/2024) New Originations Net Advances/ Payments Prepayments Payoffs or Sales Other¹ Ending Balance (9/30/2024) 12 $ in m ill io ns Three Months Ended September 30, 2023 $37,049 $1,019 ($90) ($494) ($343) $30 $37,171 Beginning Balance (6/30/2023) New Originations Net Advances/ Payments Prepayments Payoffs or Sales Other¹ Ending Balance (9/30/2023) $ in m ill io ns Nine Months Ended September 30, 2024 $37,442 $— $2,557 ($271) ($1,343) ($955) $74 $37,503 Beginning Balance (12/31/2023) Merger New Originations Net Advances/ Payments PrepaymentsPayoffs or Sales Other¹ Ending Balance (9/30/2024) $ in m ill io ns Nine Months Ended September 30, 2023 $26,156 $10,884 $2,982 ($235) ($1,423) ($1,268) $74 $37,171 Beginning Balance (12/31/2022) Merger New Originations Net Advances/ Payments PrepaymentsPayoffs or Sales Other¹ Ending Balance (9/30/2023) Note: Totals may not foot due to rounding. (1) Other includes purchase accounting accretion and amortization and other changes not otherwise defined.

 
Diversified, High Quality Loan and Lease Portfolio Note: Portfolio statistics and delinquencies as of September 30, 2024. Annualized net charge-off rates for Q3 2024. Loan-to-value (“LTV”), FICO, and debt service coverage (“DSC”) ratios are based on weighted averages for portfolios where data are available. LTV represents average LTV based on most recent appraisal against updated loan balance. Totals may not foot due to rounding. • Portfolio average loan size of $481,000 • 3Q24 average loan size of $326,000 • Portfolio average FICO of 761 and LTV of 62% • 3Q24 average FICO of 761 and LTV of 66% • Total delinquencies of 1.18% • Annualized net charge-off (recovery) rate of 0.05% Non-owner Occupied CRE • Portfolio average loan size of $1.7 million • 3Q24 average loan size of $2.8 million • Portfolio average LTV of 51% and DSC of 1.89 • 3Q24 average LTV of 54% and DSC of 1.94 • Total delinquencies of 0.10% • Annualized net charge-off (recovery) rate of 0.00% Commercial & Industrial • Portfolio average loan size of $714,000 • 3Q24 average loan size of $872,000 • Total delinquencies of 0.57% • Annualized net charge-off (recovery) rate of 0.37% Multifamily • Portfolio average loan size of $2.3 million • 3Q24 average loan size of $897,000 • Portfolio average LTV of 54% and DSC of 1.57 • 3Q24 average LTV of 66% and DSC of 1.59 • Total delinquencies of 0.00% • Annualized net charge-off (recovery) rate of 0.00% Owner Occupied CRE • Portfolio average loan size of $1.0 million • 3Q24 average loan size of $1.4 million • Portfolio average LTV of 55% • 3Q24 average LTV of 59% • Total delinquencies of 0.64% • Annualized net charge-off (recovery) rate of 0.00% Lease & Equipment Finance (FinPac) • Portfolio average loan & lease size of $42,000 • 3Q24 average loan & lease size of $55,000 • Portfolio average yield: ~10% • Total delinquencies of 3.57% • Annualized net charge-off (recovery) rate of 4.76% Puget Sound, 20% WA Other, 8% Portland Metro, 13% OR Other, 14% Bay Area, 7% Northern CA, 9% Southern CA, 15% Other, 14% Mortgage, 16% FinPac, 4% C&I, 23% Owner Occupied CRE, 14% Non-OO CRE, 17% Multifamily, 15% Other Loan Categories, 13% Portfolio Composition at September 30, 2024 Geographic Distribution at September 30, 2024 Mortgage 13

 
C&I and CRE Portfolio Composition Agriculture, 9.2% Contractors, 7.7% Finance/Insurance, 7.6% Manufacturing, 7.2% Professional, 3.8% Public Admin, 6.3% Rental & Leasing, 6.3% Retail, 2.7% Support Services, 4.8% Transportation/ Warehousing, 7.9% Wholesale, 6.6% Gaming, 5.6% Dentists, 7.1% Other Healthcare, 4.4% Other, 12.8% Office, 16.3% Multifamily, 33.4% Industrial, 15.9% Retail, 11.4% Special Purpose, 7.5% Hotel/Motel, 4.2% Other, 11.4% CRE Portfolio Composition(1) $17.4 Billion at September 30, 2024 C&I Portfolio Composition(1) $9.7 Billion at September 30, 2024 (1) C&I portfolio composition includes term, lines of credit & other, and leases & equipment finance balances. CRE portfolio composition includes non-owner occupied term and owner occupied term balances as well as multifamily balances. (2) Owner occupied and non-owner occupied disclosure relates to commercial real estate portfolio excluding multifamily loans. 45% Owner Occupied / 55% Non-Owner Occupied(2)Commercial Line Utilization was 37% at September 30, 2024 14

 
Office Portfolio Details Puget Sound, 21% WA Other, 5% Portland Metro, 12% OR Other, 16%Bay Area, 6% N. CA, 11% S. CA, 20% Other, 9% Office Portfolio Metrics at September 30, 2024 Average loan size $1.36 million Average LTV 57% DSC (non-owner occupied) 1.80x % with guaranty (by $ / by #) 86% / 84% Past due 30-89 days $0 Nonaccrual $11.4mm / 0.38% of office Special mention $12.6mm / 0.42% of office Classified $94.1mm / 3.17% of office Number of Loans by Balance Geography 15 ■ Loans secured by office properties represented 8% of our total loan portfolio as of September 30, 2024. ■ Our office portfolio is 40% owner occupied, 57% non-owner occupied, and 3% construction. Dental and other healthcare loans compose 18% of our office portfolio. ■ The average loan size in our office portfolio is $1.36 million. There were no delinquencies as of September 30, 2024, and the majority of our loans contain a guaranty. ■ Excluding floating rate loans, only 5% of our office portfolio reprices through 2025. Loans repricing in 2024 and 2025 have average balances of $0.2 million and $1.1 million, respectively. ■ Properties located in suburban markets secure the majority of our office portfolio as only 6% of non-owner occupied office loans are located in downtown core business districts. 1,746 441 71 38 7 6 <$1mm $1-5mm $5-10mm $10-20mm $20-30mm >$30mm 2024, 1% 2025, 4% 2026, 4% 2027 & After, 15% Fixed Rate¹, 69% Floating Rate, 7% Repricing Schedule (1) Loans with a swap component are displayed as a fixed rate loan if the swap maturity is equal to the maturity of the loan. If the swap matures prior to the loan, the loan is displayed as adjustable with the rate resetting at the time of the swap maturity. 2024, 1% 2025, 9% 2026, 6% 2027 & After, 84% Maturity Schedule , 19 8 9 6 7 1,621 0 2 5

 
Continued Strong Credit Quality Provision Expense, Net Charge-Offs to Average Loans, and Nonperforming Assets to Total Assets $36.7 $54.9 $17.1 $31.8 $28.8 0.25% 0.31% 0.47% 0.32% 0.31% 0.20% 0.22% 0.28% 0.30% 0.32% Provision Expense ($mm) Net Charge-Offs / Average Loans (annualized) Non-Performing Assets / Total Assets Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 16 Allowance for Credit Losses ("ACL") $438 $464 $437 $439 $438 $86 $80 $74 $69 $65 1.18% 1.24% 1.16% 1.16% 1.17% ACL ($mm) Credit Discount ($mm) ACL / Total Loans and Leases ACL + Credit Discount / Total Loans and Leases Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 ■ The remaining credit discount on loans of $65 million as of September 30, 2024 provides an additional 17 basis points of loss absorption when added to the ACL of $438 million. ■ Charge-off activity in Q3 2024 reflects approximately 20% improvement from Q2 2024 in the FinPac business, as lower delinquencies in the transportation sector of the portfolio resulted in lower charge- off activity. Bank charge-offs were 0.10% of average bank loans in Q3 2024 (annualized). ■ Nonperforming loans of $165 million as of September 30, 2024 included $66 million of loans with government guarantees. 1.41% 1.45% 1.36% 1.35% 1.34%

 
ACL Reflects Strong Portfolio Credit Metrics (1) Total includes reserve for unfunded commitments of $18.2 million and $19.9 million as of September 30, 2024 and June 30, 2024, respectively. 17 ■ Our reserve coverage by loan segment and for the overall loan and lease portfolio reflects our robust underwriting criteria and ongoing, routine portfolio monitoring activities. For example, we stress applicable variables, such as interest rates, cash flows, and occupancy, at inception and loan review and limit borrower proceeds as a result. These factors contribute to lower LTVs and higher DSC ratios, which are taken into consideration in the estimation of our ACL. ■ The quarter’s provision expense of $29 million reflects credit migration trends, charge-off activity, and changes in the economic forecasts used in credit models. We used components of Moody’s Analytics’ August 2024 consensus economic forecast to estimate our ACL as of September 30, 2024. Allowance for Credit Losses by Loan Segment ($ in thousands) Commercial Lease & Equipment Commercial Real Estate Residential & Home Equity Consumer Total(1) Remaining Credit Discount on Loans Total ACL including Credit Discount on Loans(1) Balance as of June 30, 2024 $122,128 $104,133 $153,092 $51,163 $8,083 $438,599 $69,177 $507,776 Q3 2024 Net (Charge-offs) Recoveries (7,376) (20,011) 44 (793) (979) (29,115) Reserve Build (Release) 815 16,404 12,838 (2,676) 1,388 28,769 Balance as of September 30, 2024 $115,567 $100,526 $165,974 $47,694 $8,492 $438,253 $65,024 $503,277 % of Loans and Leases Outstanding 1.43% 6.02% 0.85% 0.60% 4.59% 1.17% 1.34%

 
Capital Management 18 Regulatory Capital Ratios: Bank and Holding Company as of September 30, 2024 8.7% 11.1% 11.1% 12.2% 8.1% 10.3% 10.3% 12.5% Umpqua Bank Columbia Banking System Tier 1 Leverage CET1 Tier 1 Capital Total Risk-Based —% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% ■ Regulatory capital ratios declined during Q1 2023 as a result of the merger and the impact of rate-related asset discounts on capital. Our capital ratios have continued to increase on a quarterly basis post merger closing. ■ We expect to organically generate capital above what is required to support prudent growth and our regular dividend, with excess capital driving ratios higher and providing flexibility to consider additional return to shareholders. Note: Umpqua Bank and Columbia Banking System, Inc. long-term capital ratio targets reflect a targeted excess level of capital above regulatory well-capitalized minimums inclusive of the capital conservation buffer (“CCB”) where applicable. The minimum capital ratios to be considered well capitalized inclusive of the CCB are 7.0%, 8.5%, and 10.5% for the common equity tier 1 (“CET1”) ratio, tier 1 capital ratio, and total risk-based capital ratio, respectively. The CCB does not apply to the tier 1 leverage ratio, which has a well-capitalized minimum level of 5.0%. All regulatory capital ratios as of September 30, 2024 are estimates pending completion and filing of Columbia’s and Umpqua Bank’s regulatory reports. Capital Ratios Continue to Trend Up 9.5% 9.6% 9.8% 10.0% 10.3% 11.6% 11.9% 12.0% 12.2% 12.5% COLB: CET1 Ratio COLB: Total RBC Ratio 9/30/2023 12/31/2023 3/31/2024 6/30/2024 09/30/2024 —% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 12% Long-Term Target 9% Long-Term Target 9% Long-Term Target 6.5% Long-Term Target

 
Net Interest Income and Net Interest Margin (1) Chart Abbreviations: “PAA” = purchase accounting accretion and amortization; “LHFI” = loans held for investment. Net Interest Income and Net Interest Margin $481 $454 $423 $427 $430 3.91% 3.78% 3.52% 3.56% 3.56% Net Interest Income ($ in millions) Net Interest Margin Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Net Interest Margin: Q2 2024 vs Q3 2024 3.56% 0.04% (0.03)% (0.03)% 0.01% 0.01% 3.56% Q2 2024 Reported LHFI-ex PAA¹ LHFI-PAA¹ Invest- ments Deposits Other Q3 2024 Reported 19 ■ The net interest margin was unchanged between Q2 2024 and Q3 2024 at 3.56%, which compares to 3.53% for the month of September. A favorable balance sheet funding mix shift into lower-cost deposits and a slight increase in total loan yields offset a lower yield on securities, contributing to net interest margin stability between quarters. ■ The cost of interest-bearing deposits decreased 2 basis points from the prior quarter to 2.95% for Q3 2024, which compares to 2.90% for the month of September and 2.74% as of September 30, 2024. ■ The cost of interest-bearing liabilities also decreased 2 basis points from the prior quarter to 3.29% for Q3 2024, which compares to 3.26% for the month of September and 3.13% as of September 30, 2024.

 
Select Asset and Liability Maturity and Repricing Schedules (in Months) at September 30, 2024 ($ in millions) <=3 4 to 6 7 to 12 13 to 24 25 to 36 36+ Total % Total(3) Loans Fixed (maturity)(2) $303 $212 $279 $680 $2,155 $9,726 $13,355 35% Floating (repricing)(2) 13,257 — — — — — 13,257 35% Adjustable (repricing) 637 299 437 1,295 1,471 7,180 11,319 30% Total Loans $14,197 $511 $716 $1,975 $3,626 $16,906 $37,931 100% Time deposits (maturity)(4) $3,478 $1,223 $881 $116 $20 $16 $5,734 Average rate(4) 4.81% 4.28% 3.78% 1.75% 0.34% 0.29% 4.45% Term debt (maturity) $250 $3,400 $— $— $— $— $3,650 Average rate 5.25% 5.03% 5.05% Interest Rate Sensitivity 20 Note: Tables may not foot due to rounding. Loan totals on this slide do not include purchase accounting adjustments. Deferred fees and costs also drive variances between loan totals on this slide and loan totals in the earnings press release. (1) For the scenarios shown, the interest rate simulations assume a parallel and sustained shift in market interest rates ratably over a twelve-month period (ramp) or immediately (shock). The simulation repricing betas applied to interest-bearing deposits in the rising rate and declining rate scenarios are 55% and 54%, respectively, for September 30, 2024. Additional data related to interest rate simulations are available in Columbia’s Form 10-K for the fiscal year ended December 31, 2023. (2) Commercial tranche loans that mature in one month are included in the floating rate loan category, not the fixed rate loan category, as these loans reprice in a manner similar to floating rate loans. (3) Floating rate loans are indexed to prime (8% of the total loan portfolio) and 1-month underlying interest rates (27% of the total loan portfolio). When adjustable rate loans reprice, they are indexed to interest rates that span 1-month tenors to 10-year tenors as well as the prime rate; the most prevalent underlying index rates are 6-month tenors (17% of the total loan portfolio) and 5-year tenors (6% of the total loan portfolio). (4) Time deposits maturing in 3 months or less include $1.5 billion in customer CDs at an average rate of 4.44% and $2.0 billion in brokered CDs at an average rate of 5.18%. (5) Loans were grouped into three buckets: (1) No Floor: no contractual floor on the loan; (2) At Floor: current rate = floor; (3) Above Floor: current rate exceeds floor. The amount above the floor was based on the current margin plus the current index assuming the loan repriced on September 30, 2024. The adjustable loans may not reprice until well into the future, depending on the timing and size of interest rate changes. Interest Rate Simulation Impact on Net Interest Income at September 30, 2024(1) Ramp Shock Year 1 Year 2 Year 1 Year 2 Up 200 basis points (0.5)% 0.0% (0.8)% 1.4% Up 100 basis points (0.3)% 0.0% (0.4)% 0.7% Down 100 basis points 0.4% (0.1)% 0.6% (0.8)% Down 200 basis points 1.3% (0.2)% 1.5% (1.9)% Down 300 basis points 2.3% (0.6)% 2.4% (3.5)% Downward Rate Change to Move to Floor at September 30, 2024 ($ in millions) Floating Loans Adjustable Loans Above Floor Total <25 basis points $5 $30 $35 26 to 50 basis points 134 33 167 51 to 75 basis points 25 67 92 76 to 100 basis points 72 128 200 101 to 125 basis points 22 141 163 126 to 150 basisi points 92 103 195 >150 basis points 4,001 8,994 12,995 Total $4,351 $9,496 $13,847 Floors: Floating and Adjustable Rate Loans at September 30, 2024 ($ in millions) No Floor(5) At Floor(5) Above Floor(5) Total Floating $8,692 $214 $4,351 $13,257 Adjustable 1,643 180 9,496 11,319 Total $10,335 $394 $13,847 $24,576 % of Total 42% 2% 56% 100%

 
Longer-Term Balance Sheet Optimization Opportunities as Rates Decline 21 ■ Our relationship-based lending verticals and a strong core deposit base remain the cornerstone of our franchise. Past transactional lending and the wholesale sources that fund these assets have muted the balance sheet’s profitability, but they have not diluted the quality of our core franchise. ■ Current interest rates make outright asset sales unattractive given a lengthy payback period. However, longer term, a decline in rates will reduce or potentially eliminate the drag on earnings as balances organically decline or are sold opportunistically.(2) ■ Further, the remix of funding out into customer deposits and out of transactional sources, which contributed adversely to our repricing betas in the rising rate cycle, would contribute positively to our repricing betas in the declining rate cycle. Opportunity to Strategically Reposition Balance Sheet Over Time Assets Liabilities + Equity $6B Wholesale Funding$2B SFR / $4B MF $9B Securities $37B Relationship Lending & Other Core Banking Franchise $46B Core Deposit Franchise & Capital Opportunity to reduce transactional assets and liabilities Relationship banking supports strong core franchise value (1) Deposit and funding repricing beta data present combined company results as if historical Columbia and historical UHC were one company for all periods through December 31, 2022; subsequent time periods present data on a legal basis given the merger. The beta presentation is calculated in this manner for comparison purposes. (2) While asset classes, like transactional loans within our single-family (“SFR”) and multifamily (“MF”) portfolios, have been identified as potential sources for asset sales if interest rates were to decline further, assets have not been identified for sale. Deposit and Funding Repricing Betas During Current Rate Cycle Effective Fed Funds Rate (Daily Avg.) Cost of: Three Months Ended Interest- Bearing Deposits Total Deposits Total Funding December 31, 2021(1) 0.08% 0.10% 0.05% 0.09% December 31, 2022(1) 3.65% 0.62% 0.35% 0.51% December 31, 2023 5.33% 2.54% 1.63% 2.05% June 30, 2024 5.33% 2.97% 2.01% 2.34% Variance: Q2 2024 less Q4 2021 5.25% 2.87% 1.96% 2.25% Repricing Betas: Rising Rate Cycle 55% 37% 43% September 30, 2024 5.27% 2.95% 1.99% 2.32% Variance: Q3 2024 less Q2 2024 (0.06)% (0.02)% (0.02)% (0.02)% Repricing Betas: Decling Rate Cycle-to-Date 32% 32% 32%

 
Non-Interest Income Note: Tables may not foot due to rounding. (1) Other commercial product revenue includes swaps, syndication, and international banking revenue, which are captured in “other income” on the income statement. Other income statement line items, like card-based fees, include other sources of commercial product revenue. For the Quarter Ended ($ in millions) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Service charges on deposits $18.5 $18.5 $16.1 $17.3 $17.4 Card-based fees 14.6 14.7 13.2 14.6 15.7 Financial services and trust revenue 5.1 5.4 4.5 3.0 4.7 Residential mortgage banking revenue, net 6.7 5.8 4.6 4.2 7.1 Gain (loss) on equity securities, net 2.3 0.3 (1.6) 2.6 (2.1) Gain (loss) on loan and lease sales, net 0.2 (1.5) 0.2 1.2 1.9 BOLI income 4.7 4.7 4.6 4.3 4.4 Other income Other commercial product revenue(1) $2.9 $2.6 $2.3 $3.9 $3.0 Commercial servicing revenue 0.5 0.2 0.6 (0.2) 0.5 Loan-related fees 3.3 4.1 3.7 3.2 3.6 Change in fair value of certain loans held for investment 9.4 (10.1) (2.4) 19.4 (19.2) Misc. income 1.6 (0.4) 3.3 (0.1) 1.3 Swap derivative (loss) gain (3.6) 0.4 1.2 (8.0) 5.7 22 Q3 2024 Highlights (compared to Q2 2024) ■ Our Business Bank of Choice strategy incorporates a collaborative team approach to deliver needs-based solutions to our customers, which deepens relationships and provides growth in sustainable core fee income to the bank. Our year-to-date trends reflect a growing contribution from card activity, financial services and trust activity, and other commercial product revenue like international banking fees. ■ Lower interest rates in Q3 2024 compared to Q2 2024 drove fair value changes in certain loans held for investment, which, when coupled with the swap derivative loss, increased non-interest income by $6 million compared to a $10 million reduction in Q2 2024. These items are captured in other income.

 
Non-Interest Expense 23 $ in m ill io ns Non-Interest Expense ("NIE") $304.1 $337.2 $287.5 $279.2 $271.4 $281.2 $294.3 $276.9 $262.5 $268.4 GAAP Non-Interest Expense Operating Non-Interest Expense¹ Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 ■ Non-interest expense in Q3 2024 declined $8 million from the prior quarter to $271 million. Operating non-interest expense(1) increased $6 million from the prior quarter to $268 million. A $6 million reduction in salary and wages expense related to recent initiatives was offset by higher group insurance costs and the impact of an $8 million reversal of prior compensation accruals during Q2 2024, which did not repeat in Q3 2024. ■ We completed an enterprise-wide evaluation of our operations during Q1 2024 that resulted in consolidated positions, simplified reporting and organizational structures, and an improved profitability outlook. Identified savings, which were fully realized as of September 30, 2024, drive an expected Q4 2024 core expense run rate of $965 million to $985 million annualized, which includes all planned reinvestments and excludes CDI amortization and non-operating expense(1). $ in m ill io ns Non-Interest Expense: Q2 2024 vs Q3 2024 $279.2 $(6.0) $1.8 $7.7 $2.4 $(13.7) $271.4 Q2 2024 NIE Salary & Wages Group Insurance 2Q Comp Accrual Reversal Misc. Other Non- operating¹ Q3 2024 NIE (1) Non-GAAP financial measure. A reconciliation to the comparable GAAP measurement is provided at the end of this slide presentation. Non-operating expense items include exit and disposal costs, merger and restructuring expense, and an FDIC special assessment. These items are detailed in the “Non-GAAP Reconciliation” section of the Appendix. Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes the FDIC special assessment in non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company.

 
A Cost-Conscious Culture Contributes Funding to Franchise Reinvestments 24 $270 Million Gross Cost Savings Realized Since Merger Closing: Equates to 25% of Combined-Company Pre-Merger Cost Base Total Cost Savings: $270 million Savings Fund Franchise Revinvestments ■ We realized $270 million in gross savings in the 18-month period following the merger’s closing, representing 25% of the combined company’s pre-merger cost base. This equates to $213 million on a net basis when franchise reinvestments are taken into account. ■ Reinvestment of $12 million in recent savings, which we expect to extend into 2025, includes: ■ Hiring experienced bankers throughout our footprint ■ Opening de novo branches in targeted growth markets: Arizona, Colorado, Utah, and Southern California ■ Investing in products and technology that create operational efficiencies and revenue growth opportunities 2024 Initiatives Savings: Reinvested, $12 million 2024 Initiatives Savings: Realized, net, $70 million 2023 Merger Savings: Reinvested, $45 million 2023 Merger Savings: Realized, net, $143 million

 
APPENDIX

 
Liquidity Overview Total Available Liquidity at September 30, 2024 ($ in millions) Total off-balance sheet liquidity (available lines of credit): $13,743 Cash and equivalents, less reserve requirement 1,909 Excess bond collateral 3,768 Total available liquidity $19,421 TOTAL AVAILABLE LIQUIDITY AS A PERCENTAGE OF: Assets of $51.9 billion at September 30, 2024 37 % Deposits of $41.5 billion at September 30, 2024 47 % Uninsured deposits of $14.0 billion at September 30, 2024 138 % Total Off-Balance Sheet Liquidity Available at September 30, 2024 ($ in millions) Gross Availability Utilization Net Availability FHLB lines $11,783 $2,370 $9,413 Federal Reserve Discount Window 3,730 — 3,730 Federal Reserve Term Funding Program(1) 1,300 1,300 — Uncommitted lines of credit 600 — 600 Total off-balance sheet liquidity $17,413 $3,670 $13,743 26 ■ Customer deposit growth of $602 million during Q3 2024 enabled us to reduce brokered deposit balances by 20%. ■ Customer deposit growth during Q3 2024 was driven by seasonal deposit inflows and successful small business campaigns. Select Balance Sheet Items Three Months Ended Sequential Quarter Change ($ in millions) Q3 2024 Q2 2024 Q3 2023 Q3 2024 Commercial deposits $11,758 $11,188 $11,105 $570 Small business deposits 8,217 8,070 8,927 147 Consumer deposits 15,873 15,988 15,881 (115) Total customer deposits 35,848 35,246 35,913 602 Public deposits - non-interest bearing 618 627 627 (9) Public deposits - interest bearing 2,348 2,334 1,815 14 Total public deposits 2,966 2,961 2,442 5 Administrative deposits 167 147 146 19 Brokered deposits 2,534 3,169 3,123 (635) Total deposits $41,515 $41,523 $41,624 ($9) Term debt $3,650 $3,900 $3,985 ($250) Cash & cash equivalents $2,111 $2,069 $2,404 $42 Available-for-sale securities $8,677 $8,503 $8,504 $174 Loans and leases $37,503 $37,710 $37,171 ($207) Note: Tables may not foot due to rounding. (1) The Federal Reserve’s Bank Term Funding Program was discontinued in March 2024. We present associated balances as they were outstanding on Columbia’s balance sheet as of September 30, 2024.

 
Summary Income Statements Note: Tables may not foot due to rounding. (1) Non-GAAP financial measure. A reconciliation to the comparable GAAP measurement is provided at the end of this slide presentation. For the Quarter Ended ($ in millions, except per-share data) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Net interest income before provision $430.2 $427.4 $423.4 $453.6 $480.9 Provision for credit losses 28.8 31.8 17.1 54.9 36.7 Net interest income after provision 401.4 395.6 406.2 398.7 444.1 Non-interest income 66.2 44.7 50.4 65.5 44.0 Non-interest expense 271.4 279.2 287.5 337.2 304.1 Income before provision for income taxes 196.3 161.1 169.1 127.1 184.0 Provision for income taxes 50.1 40.9 45.0 33.5 48.1 Net income $146.2 $120.1 $124.1 $93.5 $135.8 Earnings per share, diluted $0.70 $0.57 $0.59 $0.45 $0.65 Operating non-interest expense(1) $ 268.4 $ 262.5 $ 276.9 $ 294.3 $ 281.2 Pre-provision net revenue(1) $225.0 $192.9 $186.2 $182.0 $220.7 Operating pre-provision net revenue(1) $221.4 $219.4 $200.7 $212.1 $258.7 Operating net income(1) $143.5 $140.0 $134.9 $116.1 $164.3 Operating earnings per share, diluted(1) $0.69 $0.67 $0.65 $0.56 $0.79 27 Q3 2024 Highlights (compared to Q2 2024) ■ Net interest income increased by $3 million due to higher income earned on loans, which occurred despite a reduction in accretion income, and relatively stable funding costs. ■ Non-interest income increased by $21 million due to the quarterly fluctuation in cumulative fair value accounting and hedges, which drove $16 million of the change. Higher core banking activity contributed to the remaining increase. ■ Non-interest expense decreased by $8 million due to lower restructuring expense and the impact of other compensation- related items detailed on the “Non- Interest Expense” slide. ■ Provision expense of $29 million compares to $32 million in the prior quarter.

 
Summary Period-End Balance Sheets Note: Tables may not foot due to rounding. (1) Non-GAAP financial measure. A reconciliation to the comparable GAAP measurement is provided in the appendix of this slide presentation. ($ in millions, except per-share data) Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 ASSETS: Total assets $51,908.6 $52,047.5 $52,224.0 $52,173.6 $51,993.8 Interest bearing cash and temporary investments 1,519.7 1,553.6 1,760.9 1,664.0 1,911.2 Investment securities available for sale, fair value 8,676.8 8,503.0 8,616.5 8,829.9 8,504.0 Loans and leases, gross 37,503.0 37,710.0 37,642.4 37,442.0 37,170.6 Allowance for credit losses on loans and leases (420.1) (418.7) (414.3) (440.9) (416.6) Goodwill and other intangibles, net 1,542.5 1,571.6 1,600.8 1,632.9 1,666.1 LIABILITIES AND EQUITY: Deposits 41,514.7 41,523.3 41,706.2 41,607.0 41,624.4 Securities sold under agreements to repurchase 183.8 197.9 213.6 252.1 258.4 Borrowings 3,650.0 3,900.0 3,900.0 3,950.0 3,985.0 Total shareholders' equity 5,273.8 4,976.7 4,957.2 4,995.0 4,632.2 RATIOS AND PER-SHARE METRICS: Loan to deposit ratio 90.3% 90.8% 90.3% 90.0% 89.3% Book value per common share $25.17 $23.76 $23.68 $23.95 $22.21 Tangible book value per common share(1) $17.81 $16.26 $16.03 $16.12 $14.22 Common equity to assets ratio 10.2% 9.6% 9.5% 9.6% 8.9% Tangible common equity to tangible assets ratio(1) 7.4% 6.7% 6.6% 6.7% 5.9% 28 Q3 2024 Highlights (compared to Q2 2024) ■ Loan balances declined by $207 million during Q3 2024 as healthy customer activity, like loan payoffs related to business and property sales and project completions, offset new originations. Balances were also impacted by a decline in transactional real estate loans, which trended lower as we organically remix the portfolio into relationship-driven commercial loans. ■ Customer deposit growth enabled a 20% reduction in brokered deposits. Our intentional reduction of wholesale funding balances during the quarter kept total deposit balances essentially unchanged. ■ Book value and tangible book value increased 6% and 10%, respectively, due to organic net capital generation and a decrease in accumulated other comprehensive loss.

 
Purchase Accounting Details (1) Table does not capture all assets and liabilities with an associated fair value discount or premium. Assets and liabilities not presented have a significantly smaller impact on income through the accretion or amortization of their discount or premium. (2) The cumulative fair value discount on historical Columbia loans was established as of February 28, 2023, and the allocation between the credit-related discount and the rate-related discount was established at that time. Our disclosure of credit-related and rate-related discount accretion is an estimate based on the relative allocation of these two items to the discount at the closing of the merger. Adjustment at Closing Remaining Balances at Select Purchase Accounting Items(1) February 28, 2023 June 30, 2024 September 30, 2024 Notes ITEMS TO ACCRETE THROUGH INTEREST INCOME: Available for sale securities - rate discount $(1,011) million $(518) million $(497) million While an adjustment to historical Columbia securities’ book value was $1.0 billion at the closing of the merger, the purchase discount that will accrete into interest income over time was $0.6 billion when previously existing purchase premiums and the discount associated with bonds sold as part of the Q1 2023 portfolio restructuring were eliminated. Loans - rate discount(2) $(618) million $(419) million $(398) million Total rate discount on loans and securities $(1,629) million $(938) million $(894) million Loans - credit mark(2) $(130) million $(69) million $(65) million Total discount on loans and securities $(1,759) million $(1,007) million $(959) million Fair value discounts are accreted into interest income using the effective interest method, which amortizes the discount over the life of the loan or security. ITEM TO AMORTIZE THROUGH NON-INTEREST EXPENSE: Core deposit intangible $710 million $542 million $513 million CDI amortizes through non-interest expense over 10 years using the sum-of-the-years-digits method. 29

 
Non-GAAP Reconciliation: Tangible Capital ($ in thousands, except per-share data) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 Total shareholders' equity a $5,273,828 $4,976,672 $4,957,245 $4,995,034 $4,632,162 Less: Goodwill 1,029,234 1,029,234 1,029,234 1,029,234 1,029,234 Less: Other intangible assets, net 513,303 542,358 571,588 603,679 636,883 Tangible common shareholders’ equity b 3,731,291 3,405,080 3,356,423 3,362,121 2,966,045 Total assets c $51,908,599 $52,047,483 $52,224,006 $52,173,596 $51,993,815 Less: Goodwill 1,029,234 1,029,234 1,029,234 1,029,234 1,029,234 Less: Other intangible assets, net 513,303 542,358 571,588 603,679 636,883 Tangible assets d $50,366,062 $50,475,891 $50,623,184 $50,540,683 $50,327,698 Common shares outstanding at period end e 209,532 209,459 209,370 208,585 208,575 Total shareholders' equity to total assets ratio a / c 10.16 % 9.56 % 9.49 % 9.57 % 8.91 % Tangible common equity to tangible assets ratio b / d 7.41 % 6.75 % 6.63 % 6.65 % 5.89 % Book value per common share a / e $25.17 $23.76 $23.68 $23.95 $22.21 Tangible book value per common share b / e $17.81 $16.26 $16.03 $16.12 $14.22 30

 
Non-GAAP Reconciliation: Adjustments and Average Balances For the Quarter Ended For the Nine Months Ended ($ in thousands) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 9/30/2024 9/30/2023 Non-Interest Income Adjustments Gain (loss) on sale of debt securities, net $ 3 $ (1) $ 12 $ 9 $ 4 $ 14 $ 4 Gain (loss) on equity securities, net 2,272 325 (1,565) 2,636 (2,055) 1,032 (336) (Loss) gain on swap derivatives (3,596) 424 1,197 (8,042) 5,700 (1,975) 3,445 Change in fair value of certain loans held for investment 9,365 (10,114) (2,372) 19,354 (19,247) (3,121) (16,724) Change in fair value of MSR due to valuation inputs or assumptions (6,540) 1,238 3,117 (6,251) 5,308 (2,185) 129 MSR hedge gain (loss) 5,098 (1,611) (4,271) 5,026 (4,733) (784) (9,719) Total non-interest income adjustments a $ 6,602 $ (9,739) $ (3,882) $ 12,732 $ (15,023) $ (7,019) $ (23,201) Non-Interest Expense Adjustments Merger and restructuring expense $ 2,364 $ 14,641 $ 4,478 $ 7,174 $ 18,938 $ 21,483 $ 164,485 Exit and disposal costs 631 1,218 1,272 2,791 4,017 3,121 7,427 FDIC special assessment(1) — 884 4,848 32,923 — 5,732 — Total non-interest expense adjustments b $ 2,995 $ 16,743 $ 10,598 $ 42,888 $ 22,955 $ 30,336 $ 171,912 Average Assets n $ 52,009,017 $ 51,981,555 $ 52,083,973 $ 51,832,356 $ 53,011,361 $ 52,024,790 $ 48,709,067 Less: Average goodwill and other intangible assets, net 1,559,696 1,588,239 1,619,134 1,652,282 1,684,093 1,588,916 1,345,833 Average tangible assets o $ 50,449,321 $ 50,393,316 $ 50,464,839 $ 50,180,074 $ 51,327,268 $ 50,435,874 $ 47,363,234 Average common shareholders’ equity p $ 5,118,592 $ 4,908,239 $ 4,985,875 $ 4,695,736 $ 4,866,975 $ 5,004,653 $ 4,389,549 Less: Average goodwill and other intangible assets, net 1,559,696 1,588,239 1,619,134 1,652,282 1,684,093 1,588,916 1,345,833 Average tangible common equity q $ 3,558,896 $ 3,320,000 $ 3,366,741 $ 3,043,454 $ 3,182,882 $ 3,415,737 $ 3,043,716 Weighted average basic shares outstanding r 208,545 208,498 208,260 208,083 208,070 208,435 190,997 Weighted average diluted shares outstanding s 209,454 209,011 208,956 208,739 208,645 209,137 191,546 31 (1) Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes the FDIC special assessment in non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company.

 
Non-GAAP Reconciliation: Income Statements For the Quarter Ended For the Nine Months Ended ($ in thousands) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 9/30/2024 9/30/2023 Net interest income c $ 430,218 $ 427,449 $ 423,362 $ 453,623 $ 480,875 $ 1,281,029 $ 1,339,548 Non-interest income (GAAP) d $ 66,159 $ 44,703 $ 50,357 $ 65,533 $ 43,981 $ 161,219 $ 138,394 Less: Non-interest income adjustments a (6,602) 9,739 3,882 (12,732) 15,023 7,019 23,201 Operating non-interest income (non-GAAP) e $ 59,557 $ 54,442 $ 54,239 $ 52,801 $ 59,004 $ 168,238 $ 161,595 Revenue (GAAP) f=c+d $ 496,377 $ 472,152 $ 473,719 $ 519,156 $ 524,856 $ 1,442,248 $ 1,477,942 Operating revenue (non-GAAP) g=c+e $ 489,775 $ 481,891 $ 477,601 $ 506,424 $ 539,879 $ 1,449,267 $ 1,501,143 Non-interest expense (GAAP) h $ 271,358 $ 279,244 $ 287,516 $ 337,176 $ 304,147 $ 838,118 $ 975,524 Less: Non-interest expense adjustments b (2,995) (16,743) (10,598) (42,888) (22,955) (30,336) (171,912) Operating non-interest expense (non-GAAP) i $ 268,363 $ 262,501 $ 276,918 $ 294,288 $ 281,192 $ 807,782 $ 803,612 Net income (GAAP) j $ 146,182 $ 120,144 $ 124,080 $ 93,531 $ 135,845 $ 390,406 $ 255,184 Provision for income taxes 50,068 40,944 44,987 33,540 48,127 135,999 88,944 Income before provision for income taxes 196,250 161,088 169,067 127,071 183,972 526,405 344,128 Provision for credit losses 28,769 31,820 17,136 54,909 36,737 77,725 158,290 Pre-provision net revenue (PPNR) (non-GAAP) k 225,019 192,908 186,203 181,980 220,709 604,130 502,418 Less: Non-interest income adjustments a (6,602) 9,739 3,882 (12,732) 15,023 7,019 23,201 Add: Non-interest expense adjustments b 2,995 16,743 10,598 42,888 22,955 30,336 171,912 Operating PPNR (non-GAAP) l $ 221,412 $ 219,390 $ 200,683 $ 212,136 $ 258,687 $ 641,485 $ 697,531 Net income (GAAP) j $ 146,182 $ 120,144 $ 124,080 $ 93,531 $ 135,845 $ 390,406 $ 255,184 Less: Non-interest income adjustments a (6,602) 9,739 3,882 (12,732) 15,023 7,019 23,201 Add: Non-interest expense adjustments b 2,995 16,743 10,598 42,888 22,955 30,336 171,912 Tax effect of adjustments 902 (6,621) (3,620) (7,539) (9,482) (9,339) (45,028) Operating net income (non-GAAP) m $ 143,477 $ 140,005 $ 134,940 $ 116,148 $ 164,341 $ 418,422 $ 405,269 32

 
Non-GAAP Reconciliation: Earnings Per-Share and Performance Metrics For the Quarter Ended For the Nine Months Ended ($ in thousands, except per-share data) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 9/30/2024 9/30/2023 Select Per-Share & Performance Metrics Earnings per share - basic j/r $ 0.70 $ 0.58 $ 0.60 $ 0.45 $ 0.65 $ 1.87 $ 1.34 Earnings per share - diluted j/s $ 0.70 $ 0.57 $ 0.59 $ 0.45 $ 0.65 $ 1.87 $ 1.33 Efficiency ratio(1) h/f 54.56 % 59.02 % 60.57 % 64.81 % 57.82 % 57.99 % 65.87 % Non-interest expense to average assets h/n 2.08 % 2.16 % 2.22 % 2.58 % 2.28 % 2.15 % 2.68 % Return on average assets j/n 1.12 % 0.93 % 0.96 % 0.72 % 1.02 % 1.00 % 0.70 % Return on average tangible assets j/o 1.15 % 0.96 % 0.99 % 0.74 % 1.05 % 1.03 % 0.72 % PPNR return on average assets k/n 1.72 % 1.49 % 1.44 % 1.39 % 1.65 % 1.55 % 1.38 % Return on average common equity j/p 11.36 % 9.85 % 10.01 % 7.90 % 11.07 % 10.42 % 7.77 % Return on average tangible common equity j/q 16.34 % 14.55 % 14.82 % 12.19 % 16.93 % 15.27 % 11.21 % Operating Per-Share & Performance Metrics Operating earnings per share - basic(2) m/r $ 0.69 $ 0.67 $ 0.65 $ 0.56 $ 0.79 $ 2.01 $ 2.12 Operating earnings per share - diluted(2) m/s $ 0.69 $ 0.67 $ 0.65 $ 0.56 $ 0.79 $ 2.00 $ 2.12 Operating efficiency ratio, as adjusted(1), (2), (3) u/y 53.89 % 53.56 % 56.97 % 57.31 % 51.26 % 54.80 % 52.70 % Operating non-interest expense to average assets i/n 2.05 % 2.03 % 2.14 % 2.25 % 2.10 % 2.07 % 2.21 % Operating return on average assets(2) m/n 1.10 % 1.08 % 1.04 % 0.89 % 1.23 % 1.07 % 1.11 % Operating return on average tangible assets(2) m/o 1.13 % 1.12 % 1.08 % 0.92 % 1.27 % 1.11 % 1.14 % Operating PPNR return on average assets(2) l/n 1.69 % 1.70 % 1.55 % 1.62 % 1.94 % 1.65 % 1.91 % Operating return on average common equity(2) m/p 11.15 % 11.47 % 10.89 % 9.81 % 13.40 % 11.17 % 12.34 % Operating return on average tangible common equity(2) m/q 16.04 % 16.96 % 16.12 % 15.14 % 20.48 % 16.36 % 17.80 % (1) Tax-exempt income was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation. (2) Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes the FDIC special assessment in non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company. (3) The operating efficiency ratio was adjusted in the first quarter of 2024 to remove B&O taxes and for a tax-equivalent adjustment to BOLI income. The Company views the adjusted operating efficiency ratio as a better representation of its efficiency ratio when compared to other banks as it normalizes for the tax treatment of the adjusted items. The adjustment re-aligns Columbia's calculation of its operating efficiency ratio with its pre-merger calculation. 33

 
Non-GAAP Reconciliation: Operating Efficiency Ratio, as Adjusted 34 For the Quarter Ended For the Nine Months Ended ($ in thousands) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 9/30/2024 9/30/2023 Non-interest expense (GAAP) h $271,358 $279,244 $287,516 $337,176 $304,147 $838,118 $975,524 Less: Non-interest expense adjustments b (2,995) (16,743) (10,598) (42,888) (22,955) (30,336) (171,912) Operating non-interest expense (non-GAAP) i 268,363 262,501 276,918 294,288 281,192 807,782 803,612 Less: B&O taxes t (3,248) (3,183) (3,223) (2,727) (3,275) (9,654) (9,051) Operating non-interest expense, excluding B&O taxes (non-GAAP) u $265,115 $259,318 $273,695 $291,561 $277,917 $798,128 $794,561 Non-interest income (tax equivalent)(1) v $431,184 $428,434 $424,344 $454,730 $482,031 $1,283,962 $1,342,568 Non-interest income (GAAP) d 66,159 44,703 50,357 65,533 43,981 161,219 138,394 Add: BOLI tax equivalent adjustment(1) w 1,248 1,291 1,809 1,182 1,178 4,348 3,495 Total Revenue, excluding BOLI tax equivalent adjustments (tax equivalent) x 498,591 474,428 476,510 521,445 527,190 1,449,529 1,484,457 Less: non-interest income adjustments a (6,602) 9,739 3,882 (12,732) 15,023 7,019 23,201 Total Adjusted operating revenue, excluding BOLI tax equivalent adjustments (tax equivalent) (non-GAAP) y $491,989 $484,167 $480,392 $508,713 $542,213 $1,456,548 $1,507,658 Efficiency ratio(1) h/f 54.56 % 59.02 % 60.57 % 64.81 % 57.82 % 57.99 % 65.87 % Operating efficieny ratio, as adjusted (non-GAAP)(1), (2), (3) u/y 53.89 % 53.56 % 56.97 % 57.31 % 51.26 % 54.80 % 52.70 % (1) Tax-exempt income was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation. (2) Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes the FDIC special assessment in non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company. (3) The operating efficiency ratio was adjusted in the first quarter of 2024 to remove B&O taxes and for a tax-equivalent adjustment to BOLI income. The Company views the adjusted operating efficiency ratio as a better representation of its efficiency ratio when compared to other banks as it normalizes for the tax treatment of the adjusted items. The adjustment re-aligns Columbia's calculation of its operating efficiency ratio with its pre-merger calculation.

 
Non-GAAP Reconciliation: Net Interest Income & Net Interest Margin (1) The cumulative fair value discount on historical Columbia loans was established as of February 28, 2023, and the allocation between the credit-related discount and the rate-related discount was established at that time. Our disclosure of credit-related and rate-related discount accretion is an estimate based on the relative allocation of these two items to the discount at the closing of the merger. (2) Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate. 35 For the Quarter Ended For the Nine Months Ended ($ in thousands) 9/30/2024 6/30/2024 3/31/2024 12/31/2023 9/30/2023 9/30/2024 9/30/2023 Net interest income(2) a $431,184 $428,434 $424,344 $454,730 $482,031 $1,283,962 $1,342,568 Less: Acquired loan accretion - credit related(1) b 4,127 4,835 5,119 5,430 6,370 14,081 17,276 Net Interest Income, excluding credit PAA(1), (2) c 427,057 423,599 419,225 449,300 475,661 1,269,881 1,325,292 Less: Acquired rate-related accretion(1) d 59,620 67,375 57,336 63,757 70,900 184,331 167,099 Adjusted net interest income(1), (2) e $367,437 $356,224 $361,889 $385,543 $404,761 $1,085,550 $1,158,193 Average interest-earning assets f $48,185,474 $48,117,746 $48,280,787 $47,838,229 $48,981,105 $48,194,635 $45,203,459 Net interest margin(2) a / f 3.56 % 3.56 % 3.52 % 3.78 % 3.91 % 3.55 % 3.96 % Less: Acquired loan accretion - credit related(1) b / f 0.04 % 0.04 % 0.04 % 0.05 % 0.05 % 0.04 % 0.05 % Net Interest margin, excluding credit PAA(1), (2) c / f 3.52 % 3.52 % 3.48 % 3.73 % 3.86 % 3.51 % 3.91 % Less: Acquired rate-related accretion(1) d / f 0.49 % 0.56 % 0.48 % 0.53 % 0.58 % 0.51 % 0.49 % Adjusted net interest margin(1), (2) e / f 3.03 % 2.96 % 3.00 % 3.20 % 3.28 % 3.00 % 3.42 %

 
v3.24.3
Cover
Oct. 24, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 24, 2024
Entity Registrant Name Columbia Banking System, Inc.
Entity Incorporation, State or Country Code WA
Entity File Number 000-20288
Entity Tax Identification Number 91-1422237
Entity Address, Address Line One 1301 A Street
Entity Address, City or Town Tacoma
Entity Address, State or Province WA
Entity Address, Postal Zip Code 98402-2156
City Area Code 253
Local Phone Number 305-1900
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(g) Security Common Stock, No Par Value
Trading Symbol COLB
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0000887343
Amendment Flag false
Columbia Banking System (NASDAQ:COLB)
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