COLUMBIA BANKING SYSTEM, INC. REPORTS THIRD QUARTER 2025 RESULTS

TACOMA, Wash., Oct. 30, 2025 /PRNewswire/ --

$96 million

$204 million

$0.40

$0.85

Net income

Operating net income 1

Earnings per common share -

diluted

Operating earnings per

common share - diluted 1

CEO Commentary

"Our third quarter performance reflects meaningful progress and growing momentum," said Clint Stein, President and CEO. "We closed our strategic acquisition of Pacific Premier, which completes our Western footprint and enhances our ability to generate top-quartile returns. While reported results were impacted by acquisition-related items, core profitability remained strong. Customer deposit growth supported balance sheet optimization, as we organically reduced transactional loans and non-core funding. Underscoring confidence in our strategy and an outlook for continued excess capital generation, our Board of Directors authorized a $700 million share repurchase program. As we integrate new capabilities and deepen both new and existing customer relationships, we remain focused on delivering consistent, repeatable performance while positioning the company for sustainable, relationship-driven growth and capital return to our shareholders."

– Clint Stein, President and CEO of Columbia Banking System, Inc.

3Q25 HIGHLIGHTS (COMPARED TO 2Q25)

Net Interest

Income and

NIM

• Net interest income increased by $59 million from the prior quarter, due to one month operating as a combined company and a favorable shift into lower-cost funding sources.

• Net interest margin was 3.84%, up 9 basis points from the prior quarter, due to an increase in customer deposits and corresponding reduction in higher-cost funding sources. The net interest margin was also impacted by one month operating as a combined company in the current period.

Non-Interest

Income and

Expense

• Non-interest income increased by $12 million. Excluding the impact of fair value and hedges, 1 non-interest income increased by $6 million, due to one month operating as a combined company.

• Non-interest expense increased by $115 million, primarily due to merger and restructuring expense of $87 million and one month operating as a combined company.

Credit

Quality

• Net charge-offs were 0.22% of average loans and leases (annualized), compared to 0.31% in the prior quarter.

• Provision expense was $70 million and driven by the acquisition of Pacific Premier.

• Non-performing assets to total assets was 0.29%, compared to 0.35% as of June 30, 2025.

Capital

• Estimated total risk-based capital ratio of 13.4% and estimated common equity tier 1 risk-based capital ratio of 11.6%.

• Declared a quarterly cash dividend of $0.36 per common share on August 15, 2025, which was paid September 15, 2025.

Notable

Items

• Our third small business and retail campaign of 2026 is ongoing. Through mid-October, these campaigns have brought approximately $1.1 billion in new deposits to the bank.

• Our Board of Directors authorized the repurchase of up to $700 million of common stock under a new repurchase plan.

3Q25 KEY FINANCIAL DATA

PERFORMANCE METRICS

3Q25

2Q25

3Q24

Return on average assets

0.67 %

1.19 %

1.12 %

Return on average common equity

6.19 %

11.56 %

11.36 %

Return on average tangible common equity 1

8.58 %

16.03 %

16.34 %

Operating return on average assets 1

1.42 %

1.25 %

1.10 %

Operating return on average common equity 1

13.15 %

12.16 %

11.15 %

Operating return on average tangible common equity 1

18.24 %

16.85 %

16.04 %

Net interest margin

3.84 %

3.75 %

3.56 %

Efficiency ratio

67.29 %

54.29 %

54.56 %

Operating efficiency ratio, as adjusted 1

52.32 %

51.79 %

53.89 %

INCOME STATEMENT

($ in millions, excl. per share data)

3Q25

2Q25

3Q24

Net interest income

$505

$446

$430

Provision for credit losses

$70

$30

$29

Non-interest income

$77

$65

$66

Non-interest expense

$393

$278

$271

Pre-provision net revenue 1

$189

$233

$225

Operating pre-provision net revenue 1

$270

$242

$221

Earnings per common share - diluted

$0.40

$0.73

$0.70

Operating earnings per common share - diluted 1

$0.85

$0.76

$0.69

Dividends paid per share

$0.36

BALANCE SHEET

3Q25

2Q25

3Q24

Total assets

$67.5B

$51.9B

Loans and leases

$48.5B

$37.6B

$37.5B

Deposits

$55.8B

$41.7B

$41.5B

Book value per common share

$26.04

$25.41

$25.17

Tangible book value per common share 1

$18.57

$18.47

$17.81

Acquisition and Branding Update

Columbia Banking System, Inc. ("Columbia," the "Company," "we," or "our") closed its acquisition of Pacific Premier Bancorp, Inc. ("Pacific Premier") on August 31, 2025, elevating Columbia's deposit market share to a top-10 position in Southern California. The acquisition completes our Western footprint and strengthens our presence as a leading financial institution in the western United States. Our integration efforts are progressing smoothly, and we remain on track to integrate systems in the first quarter of 2026.

Columbia Bank began serving customers under its unified name and brand effective September 1, 2025. The strategic transition streamlines our identity across all business lines, including Columbia Wealth Advisors, Columbia Trust Company, Columbia Private Bank, and Columbia Private Trust, making it easier for customers to recognize and engage with the full breadth of our services.

Share Repurchase Authorization Announcement

Columbia's Board of Directors has authorized the repurchase of up to $700 million of common stock under a new repurchase plan. COLB common share repurchases may be executed in the open market or through privately negotiated transactions, including under Rule 10b5-1 plans. The timing and exact amount of common share repurchases will be at the discretion of senior management and subject to various factors, including, without limitation, Columbia's capital position, financial performance, market conditions, and regulatory considerations. The repurchase program does not obligate Columbia to purchase any particular number of shares. The authorization will expire on November 30, 2026, but may be suspended, terminated or modified by the Board at any time.

"Our excess capital position as of September 30, 2025 supports the return of additional capital to our shareholders through share repurchases," commented Mr. Stein. "In addition, we expect to produce exceptional profitability, which will result in meaningful capital generation over the coming quarters. Even as we expand our capital return platform, we are continuing to drive organic growth as we optimize the balance sheet, in line with our commitment to enhancing long-term shareholder value."

Net Interest Income

Net interest income was $505 million for the third quarter of 2025, up $59 million from the prior quarter. The increase largely reflects the impact of one month operating as a combined company in the current period. Lower interest expense due to a favorable shift in Columbia's funding mix also contributed to the increase.

Columbia's net interest margin was 3.84% for the third quarter of 2025, up 9 basis points from the second quarter of 2025. Net interest margin benefited from lower funding costs, due to an increase in customer deposits and corresponding reduction in higher-cost funding sources. The net interest margin was also impacted by one month operating as a combined company in the current period.

The cost of interest-bearing deposits decreased 9 basis points from the prior quarter to 2.43% for the third quarter of 2025, compared to 2.29% for the month of September and 2.20% as of September 30, 2025, reflecting our proactive management of deposit rates ahead of and following the 25-basis point reduction in the federal funds rate in mid-September and a reduction in higher-cost brokered deposits during the month. The cost of interest-bearing deposits in September also benefited from the amortization of a premium related to Pacific Premier's time deposits, which will continue through December 31, 2025 at an equivalent monthly amount. The amortization contributed $4 million to net interest income during September, and favorably impacted deposit rates. Excluding this impact, the cost of interest-bearing deposits was 2.41% for the month of September and 2.32% as of September 30, 2025.

Columbia's cost of interest-bearing liabilities decreased 13 basis points from the prior quarter to 2.65% for the third quarter of 2025, compared to 2.47% for the month of September and 2.39% as of September 30, 2025. Excluding the previously discussed premium amortization, the cost of interest-bearing liabilities was 2.58% for the month of September and 2.50% as of September 30, 2025. We expect the premium to be fully amortized by December 31, 2025. Please refer to the Q3 2025 Earnings Presentation for additional net interest margin change details and interest rate sensitivity information.

Non-interest Income

Non-interest income was $77 million for the third quarter of 2025, up $12 million from the prior quarter. The increase was driven by quarterly changes in fair value adjustments and mortgage servicing rights ("MSR") hedging activity, due to interest rate fluctuations during the quarter, collectively resulting in a net fair value gain of $5 million in the third quarter compared to a net fair value loss of $1 million in the second quarter, as detailed in our non-GAAP disclosures. Excluding these items, non-interest income was up $6 million 2 between periods, due to one month operating as a combined company.

Non-interest Expense

Non-interest expense was $393 million for the third quarter of 2025, up $115 million from the prior quarter, due to higher merger expense and one month operating as a combined company. Excluding merger and restructuring expense and a $1 million reversal of prior FDIC assessment expense, non-interest expense was $307 million 2, up $37 million from the prior quarter, as Pacific Premier contributed $34 million to the quarter's run rate. Other miscellaneous expenses also trended higher as we reinvest prior cost savings into our franchise. Please refer to the Q3 2025 Earnings Presentation for additional expense details.

Balance Sheet

Total consolidated assets were $67.5 billion as of September 30, 2025, up from $51.9 billion as of June 30, 2025, due to the addition of Pacific Premier, partially offset by balance sheet optimization activity in the quarter. Cash and cash equivalents were $2.3 billion as of September 30, 2025, up from $1.9 billion as of June 30, 2025. Including secured off-balance sheet lines of credit, total available liquidity was $26.7 billion as of September 30, 2025, representing 40% of total assets, 48% of total deposits, and 130% of uninsured deposits. Available-for-sale securities, which are held on balance sheet at fair value, were $11.0 billion as of September 30, 2025, an increase of $2.4 billion relative to June 30, 2025, as securities acquired from Pacific Premier and an increase in the fair value of the portfolio was partially offset by net sales during the quarter. Please refer to the Q3 2025 Earnings Presentation for additional details related to our securities portfolio and liquidity position.

Gross loans and leases were $48.5 billion as of September 30, 2025, an increase of $10.8 billion relative to June 30, 2025, due to the addition of Pacific Premier, partially offset by run-off in commercial development and transactional loans, as well as the transfer of $282 million in residential real estate loans to the held-for-sale portfolio. Excluding these factors, the loan portfolio was essentially unchanged between June 30, 2025 and September 30, 2025. "Our teams continue to focus on new client acquisition and relationship-building, contributing to the 19% increase in new loan originations for the current quarter compared to the prior quarter," commented Chris Merrywell, President of Columbia Bank. "We continue to prioritize balance sheet optimization and profitability, as we reduce our exposure to non-relationship loans." Please refer to the Q3 2025 Earnings Presentation for additional details related to our loan portfolio, which include underwriting characteristics, the composition of our commercial portfolios, and disclosure related to transactional loans.

Total deposits were $55.8 billion as of September 30, 2025, an increase of $14.0 billion relative to June 30, 2025, due to the addition of Pacific Premier and organic growth in customer deposits, partially offset by lower brokered deposits. "Customer deposit growth approached $800 million organically during the quarter, reflecting new customer activity and a seasonal lift in balances," stated Mr. Merrywell. "Our focus on relationship banking directly contributed to new deposit generation in the quarter, which reduced our reliance on wholesale funding sources." Brokered deposits and borrowings were $4.8 billion as of September 30, 2025, a decrease of $1.9 billion relative to June 30, 2025. Please refer to the Q3 2025 Earnings Presentation for additional details related to deposit characteristics and flows.

Credit Quality

The allowance for credit losses ("ACL") was $492 million, or 1.01% of loans and leases, as of September 30, 2025, compared to $439 million, or 1.17% as of June 30, 2025. The $53 million increase in the ACL includes the addition of $5 million related to Pacific Premier purchased credit deteriorated ("PCD") loans, which was booked at acquisition closing and did not affect the income statement. The provision for credit losses was $70 million for the third quarter of 2025 and includes an initial provision for acquired non-PCD loans and unfunded commitments and a recalibration of our models to incorporate historical Pacific Premier data into our ACL assumptions, where applicable. Excluding these items, our provision expense was $0 for the third quarter of 2025 2.

Net charge-offs were 0.22% of average loans and leases (annualized) for the third quarter of 2025, compared to 0.31% for the second quarter of 2025. Net charge-offs in the FinPac portfolio were $16 million in the third quarter, compared to $14 million in the second quarter. Net charge-offs excluding the FinPac portfolio were $6 million in the third quarter, compared to $15 million in the second quarter. Non-performing assets were $199 million, or 0.29% of total assets, as of September 30, 2025, compared to $180 million, or 0.35% of total assets, as of June 30, 2025. Please refer to the Q3 2025 Earnings Presentation for additional details related to the allowance for credit losses and other credit trends.

Capital

Columbia's book value per common share was $26.04 as of September 30, 2025, compared to $25.41 as of June 30, 2025. The increase reflects common shares issued and exchanged as a result of the acquisition, net capital generation from operations, and a favorable change in accumulated other comprehensive (loss) income ("AOCI") to $(268) million as of September 30, 2025, compared to $(333) million as of the prior quarter-end. The change in AOCI is due primarily to a decrease in the tax-effected net unrealized loss on available-for-sale securities to $240 million as of September 30, 2025, compared to $311 million as of June 30, 2025. Tangible book value per common share 3 was $18.57 as of September 30, 2025, compared to $18.47 as of June 30, 2025. The items discussed above offset 1.7% tangible book value dilution as a result of the Pacific Premier acquisition, resulting in net tangible book value expansion during the quarter.

Columbia's estimated total risk-based capital ratio was 13.4% and its estimated common equity tier 1 risk-based capital ratio was 11.6% as of September 30, 2025, compared to 13.0% and 10.8%, respectively, as of June 30, 2025. Columbia remains above current "well-capitalized" regulatory minimums. The regulatory capital ratios as of September 30, 2025 are estimates, pending completion and filing of Columbia's regulatory reports.

Earnings Presentation and Conference Call Information

Columbia's Q3 2025 Earnings Presentation provides additional disclosure. A copy will be available on our investor relations page: www.columbiabankingsystem.com.

Columbia will host its third quarter 2025 earnings conference call on October 30, 2025 at 2:00 p.m. PT (5:00 p.m. ET). During the call, Columbia's management will provide an update on recent activities and discuss its third quarter 2025 financial results. Participants may join the audiocast or register for the call using the link below to receive dial-in details and their own unique PINs. It is recommended you join 10 minutes prior to the start time.

Join the audiocast: https://edge.media-server.com/mmc/p/i6z93t5w/

Access the replay through Columbia's investor relations page: https://www.columbiabankingsystem.com/news-market-data/event-calendar/default.aspx

About Columbia Banking System, Inc.

Columbia Banking System, Inc. (Nasdaq: COLB) is headquartered in Tacoma, Washington and is the parent company of Columbia Bank, an award-winning western U.S. regional bank. Columbia Bank is the largest bank headquartered in the Northwest and one of the largest banks headquartered in the West with locations in Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah, and Washington. Columbia Bank combines the resources, sophistication, and expertise of a national bank with a commitment to deliver superior, personalized service. The bank supports consumers and businesses through a full suite of services, including retail and commercial banking, Small Business Administration lending, institutional and corporate banking, and equipment leasing. Columbia Bank customers also have access to comprehensive investment and wealth management expertise as well as healthcare and private banking through Columbia Wealth Management. Learn more at www.columbiabankingsystem.com.

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

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

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

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "target," "projects," "outlook," "forecast," "will," "may," "could," "should," "can" and similar references to future periods. In this press release we make forward-looking statements about strategic and growth initiatives and the result of such activity. Risks and uncertainties that could cause results to differ from forward-looking statements we make include, without limitation: current and future economic and market conditions, including the effects of declines in housing and commercial real estate prices, high unemployment rates, continued or renewed inflation and any recession or slowdown in economic growth particularly in the western United States; economic forecast variables that are either materially worse or better than end of quarter projections and deterioration in the economy that could result in increased loan and lease losses, especially those risks associated with concentrations in real estate related loans; risks related to our acquisition of Pacific Premier (the "Transaction"), including, among others, (i) diversion of management's attention from ongoing business operations and opportunities, (ii) cost savings and any revenue or expense synergies from the Transaction may not be fully realized or may take longer than anticipated to be realized, (iii) deposit attrition, customer or employee loss, and/or revenue loss as a result of the Transaction, and (iv) shareholder litigation that could negatively impact our business and operations; the impact of proposed or imposed tariffs by the U.S. government and retaliatory tariffs proposed or imposed by U.S. trading partners that could have an adverse impact on customers; our ability to effectively manage problem credits; the impact of bank failures or adverse developments at other banks on general investor sentiment regarding the liquidity and stability of banks; changes in interest rates that could significantly reduce net interest income and negatively affect asset yields and valuations and funding sources; changes in the scope and cost of FDIC insurance and other coverage; our ability to successfully implement efficiency and operational excellence initiatives; our ability to successfully develop and market new products and technology; changes in laws or regulations; potential adverse reactions or changes to business or employee relationships; the effect of geopolitical instability, including wars, conflicts and terrorist attacks; and natural disasters and other similar unexpected events outside of our control. We also caution that the amount and timing of any future common stock dividends or repurchases will depend on the earnings, cash requirements and financial condition of Columbia, market conditions, capital requirements, applicable law and regulations (including federal securities laws and federal banking regulations), and other factors deemed relevant by Columbia's Board of Directors, and may be subject to regulatory approval or conditions.

TABLE INDEX

Page

Consolidated Statements of Income

Consolidated Balance Sheets

Financial Highlights

Loan & Lease Portfolio Balances and Mix

Deposit Portfolio Balances and Mix

Credit Quality - Non-performing Assets

Credit Quality - Allowance for Credit Losses

Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates

Residential Mortgage Banking Activity

Purchase Price Allocation

GAAP to Non-GAAP Reconciliation

Columbia Banking System, Inc.

Consolidated Statements of Income

(Unaudited)

Quarter Ended

% Change

($ in millions, shares in thousands)

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Sep 30,

2024

Seq.

Quarter

Year

over

Year

Interest income:

Loans and leases

$ 619

$ 564

$ 553

$ 572

$ 589

10 %

5 %

Interest and dividends on investments:

Taxable

11 %

17 %

Exempt from federal income tax

14 %

Dividends

33 %

100 %

Temporary investments and interest bearing deposits

25 %

(20) %

Total interest income

740

670

648

676

699

10 %

6 %

Interest expense:

Deposits

195

180

177

189

208

8 %

(6) %

Securities sold under agreement to repurchase and

federal funds purchased

— %

Borrowings

(14) %

(40) %

Junior and other subordinated debentures

13 %

(10) %

Total interest expense

235

224

223

239

269

5 %

(13) %

Net interest income

505

446

425

437

430

13 %

17 %

Provision for credit losses

133 %

141 %

Non-interest income:

Service charges on deposits

5 %

17 %

Card-based fees

7 %

— %

Financial services and trust revenue

50 %

80 %

Residential mortgage banking revenue, net

(13) %

— %

Gain (loss) on investment securities, net

—

(1)

— %

Loss on loan and lease sales, net

—

(2)

—

Gain (loss) on loans held for investment, at fair value

—

(7)

(56) %

BOLI income

20 %

Other income

8 %

160 %

Total non-interest income

18 %

17 %

Non-interest expense:

Salaries and employee benefits

171

155

145

142

147

10 %

16 %

Occupancy and equipment, net

15 %

20 %

Intangible amortization

19 %

7 %

FDIC assessments

— %

(11) %

Merger and restructuring expense

Legal settlement

—

Other expenses

24 %

8 %

Total non-interest expense

393

278

340

267

271

41 %

45 %

Income before provision for income taxes

119

203

124

192

196

(41) %

(39) %

Provision for income taxes

(55) %

(54) %

Net income

$ 96

$ 152

$ 87

$ 143

$ 146

(37) %

(34) %

Weighted average basic shares outstanding (in

thousands)

237,838

209,125

208,800

208,548

208,545

14 %

Weighted average diluted shares outstanding (in

thousands)

238,925

209,975

210,023

209,889

209,454

14 %

Earnings per common share – basic

$ 0.40

$ 0.73

$ 0.41

$ 0.69

$ 0.70

(45) %

(43) %

Earnings per common share – diluted

$ 0.40

$ 0.73

$ 0.41

$ 0.68

$ 0.70

(45) %

(43) %

nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

Columbia Banking System, Inc.

Consolidated Statements of Income

(Unaudited)

Nine Months Ended

% Change

($ in millions, shares in thousands)

Sep 30, 2025

Sep 30, 2024

Year over

Year

Interest income:

Loans and leases

$ 1,736

$ 1,748

(1) %

Interest and dividends on investments:

Taxable

238

230

3 %

Exempt from federal income tax

5 %

Dividends

11 %

Temporary investments and interest bearing deposits

(27) %

Total interest income

2,058

2,079

(1) %

Interest expense:

Deposits

552

614

(10) %

Securities sold under agreement to repurchase and federal funds purchased

(25) %

Borrowings

101

150

(33) %

Junior and other subordinated debentures

(13) %

Total interest expense

682

798

(15) %

Net interest income

1,376

1,281

7 %

Provision for credit losses

127

63 %

Non-interest income:

Service charges on deposits

13 %

Card-based fees

— %

Financial services and trust revenue

33 %

Residential mortgage banking revenue, net

41 %

Gain on investment securities, net

300 %

Loss on loan and lease sales, net

—

(1)

Gain (loss) on loans held for investment, at fair value

(3)

BOLI income

14 %

Other income

35 %

Total non-interest income

208

161

29 %

Non-interest expense:

Salaries and employee benefits

471

447

5 %

Occupancy and equipment, net

149

135

10 %

Intangible amortization

(6) %

FDIC assessments

(27) %

Merger and restructuring expense

109

419 %

Legal settlement

—

Other expenses

118

112

5 %

Total non-interest expense

1,011

838

21 %

Income before provision for income taxes

446

526

(15) %

Provision for income taxes

111

136

(18) %

Net income

$ 335

$ 390

(14) %

Weighted average basic shares outstanding (in thousands)

218,694

208,435

5 %

Weighted average diluted shares outstanding (in thousands)

219,712

209,137

5 %

Earnings per common share – basic

$ 1.53

$ 1.87

(18) %

Earnings per common share – diluted

$ 1.53

$ 1.87

(18) %

nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

Columbia Banking System, Inc.

Consolidated Balance Sheets

(Unaudited)

% Change

($ in millions, shares in thousands)

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

Sep 30, 2024

Seq.

Quarter

Year

over Year

Assets:

Cash and due from banks

$ 535

$ 608

$ 591

$ 497

$ 591

(12) %

(9) %

Interest-bearing cash and temporary

investments

1,808

1,334

1,481

1,382

1,520

36 %

19 %

Investment securities:

Equity and other, at fair value

112

20 %

40 %

Available for sale, at fair value

11,013

8,653

8,229

8,275

8,677

27 %

Held to maturity, at amortized cost

Loans held for sale

340

415 %

407 %

Loans and leases

48,462

37,637

37,616

37,681

37,503

29 %

Allowance for credit losses on loans and

leases

(473)

(421)

(425)

(420)

12 %

13 %

Net loans and leases

47,989

37,216

37,195

37,256

37,083

29 %

Restricted equity securities

119

161

125

150

116

(26) %

3 %

Premises and equipment, net

416

357

345

349

338

17 %

23 %

Operating lease right-of-use assets

156

110

107

111

106

42 %

47 %

Goodwill

1,481

1,029

44 %

Other intangible assets, net

754

430

456

484

513

75 %

47 %

Residential mortgage servicing rights, at fair

value

101

103

106

108

102

(2) %

(1) %

Bank-owned life insurance

1,199

705

701

694

691

70 %

74 %

Deferred tax asset, net

392

299

311

359

286

31 %

37 %

Other assets

1,063

735

684

730

708

45 %

50 %

Total assets

$ 67,496

$ 51,901

$ 51,519

$ 51,576

$ 51,909

30 %

Liabilities:

Deposits

Non-interest-bearing

$ 17,810

$ 13,220

$ 13,414

$ 13,308

$ 13,534

35 %

32 %

Interest-bearing

37,961

28,523

28,804

28,413

27,981

33 %

36 %

Total deposits

55,771

41,743

42,218

41,721

41,515

34 %

Securities sold under agreements to

repurchase

167

191

192

237

184

(13) %

(9) %

Borrowings

2,300

3,350

2,550

3,100

3,650

(31) %

(37) %

Junior subordinated debentures, at fair value

331

323

321

331

312

2 %

6 %

Junior and other subordinated debentures,

at amortized cost

107

108

(1) %

Operating lease liabilities

168

125

121

126

121

34 %

39 %

Other liabilities

862

719

771

835

745

20 %

16 %

Total liabilities

59,706

46,559

46,281

46,458

46,635

28 %

Shareholders' equity:

Common stock

8,189

5,826

5,823

5,817

5,812

41 %

Accumulated deficit

(131)

(151)

(227)

(237)

(304)

(13) %

(57) %

Accumulated other comprehensive loss

(268)

(333)

(358)

(462)

(234)

(20) %

15 %

Total shareholders' equity

7,790

5,342

5,238

5,118

5,274

46 %

48 %

Total liabilities and shareholders' equity

$ 67,496

$ 51,901

$ 51,519

$ 51,576

$ 51,909

30 %

Common shares outstanding at period end (in

thousands)

299,147

210,213

210,112

209,536

209,532

42 %

43 %

nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

Columbia Banking System, Inc.

Financial Highlights

(Unaudited)

Quarter Ended

% Change

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Sep 30,

2024

Seq.

Quarter

Year over

Year

Per Common Share Data:

Dividends

$ 0.36

— %

Book value

$ 26.04

$ 25.41

$ 24.93

$ 24.43

$ 25.17

2 %

3 %

Tangible book value (1)

$ 18.57

$ 18.47

$ 17.86

$ 17.20

$ 17.81

1 %

4 %

Performance Ratios:

Efficiency ratio (2)

67.29 %

54.29 %

69.06 %

54.61 %

54.56 %

13.00

12.73

Non-interest expense to average assets (1)

2.74 %

2.16 %

2.68 %

2.06 %

2.08 %

0.58

0.66

Return on average assets ("ROAA")

0.67 %

1.19 %

0.68 %

1.10 %

1.12 %

(0.52)

(0.45)

Pre-provision net revenue ("PPNR") ROAA (1)

1.32 %

1.81 %

1.19 %

1.70 %

1.72 %

(0.49)

(0.40)

Return on average common equity

6.19 %

11.56 %

6.73 %

10.91 %

11.36 %

(5.37)

(5.17)

Return on average tangible common equity (1)

8.58 %

16.03 %

9.45 %

15.41 %

16.34 %

(7.45)

(7.76)

Performance Ratios - Operating: (1)

Operating efficiency ratio, as adjusted (1), (2)

52.32 %

51.79 %

55.11 %

52.51 %

53.89 %

0.53

(1.57)

Operating non-interest expense to average assets (1)

2.14 %

2.10 %

2.13 %

2.03 %

2.05 %

0.04

0.09

Operating ROAA (1)

1.42 %

1.25 %

1.10 %

1.15 %

1.10 %

0.17

0.32

Operating PPNR ROAA (1)

1.89 %

1.88 %

1.67 %

1.77 %

1.69 %

0.01

0.20

Operating return on average common equity (1)

13.15 %

12.16 %

10.87 %

11.40 %

11.15 %

0.99

2.00

Operating return on average tangible common equity (1)

18.24 %

16.85 %

15.26 %

16.11 %

16.04 %

1.39

2.20

Average Balance Sheet Yields, Rates, & Ratios:

Yield on loans and leases

5.96 %

6.00 %

5.92 %

6.05 %

6.22 %

(0.04)

(0.26)

Yield on earning assets (2)

5.62 %

5.49 %

5.63 %

5.78 %

—

(0.16)

Cost of interest bearing deposits

2.43 %

2.52 %

2.66 %

2.95 %

(0.09)

(0.52)

Cost of interest bearing liabilities

2.65 %

2.78 %

2.80 %

2.98 %

3.29 %

(0.13)

(0.64)

Cost of total deposits

1.66 %

1.73 %

1.72 %

1.80 %

1.99 %

(0.07)

(0.33)

Cost of total funding (3)

1.87 %

1.98 %

1.99 %

2.09 %

2.32 %

(0.11)

(0.45)

Net interest margin (2)

3.84 %

3.75 %

3.60 %

3.64 %

3.56 %

0.09

0.28

Average interest bearing cash / Average interest earning assets

3.41 %

2.97 %

3.13 %

3.29 %

3.74 %

0.44

(0.33)

Average loans and leases / Average interest earning assets

78.39 %

78.64 %

78.93 %

78.42 %

77.91 %

(0.25)

0.48

Average loans and leases / Average total deposits

88.39 %

90.07 %

90.36 %

89.77 %

90.42 %

(1.68)

(2.03)

Average non-interest bearing deposits / Average total deposits

31.41 %

31.39 %

31.75 %

32.45 %

32.52 %

0.02

(1.11)

Average total deposits / Average total funding (3)

93.47 %

91.92 %

91.86 %

91.88 %

90.25 %

1.55

3.22

Select Credit & Capital Ratios:

Non-performing loans and leases to total loans and leases

0.40 %

0.47 %

0.44 %

(0.07)

(0.04)

Non-performing assets to total assets

0.29 %

0.35 %

0.33 %

0.32 %

(0.06)

(0.03)

Allowance for credit losses to loans and leases

1.01 %

1.17 %

(0.16)

Total risk-based capital ratio (4)

13.4 %

13.0 %

12.9 %

12.8 %

12.5 %

0.40

0.90

Common equity tier 1 risk-based capital ratio (4)

11.6 %

10.8 %

10.6 %

10.5 %

10.3 %

0.80

1.30

(1) See GAAP to Non-GAAP Reconciliation.

(2) Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate.

(3) Total funding = total deposits + total borrowings.

(4) Estimated holding company ratios.

Columbia Banking System, Inc.

Financial Highlights

(Unaudited)

Nine Months Ended

% Change

Sep 30, 2025

Sep 30, 2024

Year over Year

Per Common Share Data:

Dividends

$ 1.08

— %

Performance Ratios:

Efficiency ratio (2)

63.66 %

57.99 %

5.67

Non-interest expense to average assets (1)

2.54 %

2.15 %

0.39

Return on average assets

0.84 %

1.00 %

(0.16)

PPNR ROAA (1)

1.44 %

1.55 %

(0.11)

Return on average common equity

8.06 %

10.42 %

(2.36)

Return on average tangible common equity (1)

11.22 %

15.27 %

(4.05)

Performance Ratios - Operating: (1)

Operating efficiency ratio, as adjusted (1), (2)

53.07 %

54.80 %

(1.73)

Operating non-interest expense to average assets (1)

2.12 %

2.07 %

0.05

Operating ROAA (1)

1.26 %

1.07 %

0.19

Operating PPNR ROAA (1)

1.81 %

1.65 %

0.16

Operating return on average common equity (1)

12.10 %

11.17 %

0.93

Operating return on average tangible common equity (1)

16.85 %

16.36 %

0.49

Average Balance Sheet Yields, Rates, & Ratios:

Yield on loans and leases

5.96 %

6.18 %

(0.22)

Yield on earning assets (2)

5.58 %

5.76 %

(0.18)

Cost of interest bearing deposits

2.49 %

2.93 %

(0.44)

Cost of interest bearing liabilities

2.74 %

3.28 %

(0.54)

Cost of total deposits

1.70 %

1.97 %

(0.27)

Cost of total funding (3)

1.94 %

2.31 %

(0.37)

Net interest margin (2)

3.73 %

3.55 %

0.18

Average interest bearing cash / Average interest earning assets

3.18 %

3.61 %

(0.43)

Average loans and leases / Average interest earning assets

78.64 %

78.02 %

0.62

Average loans and leases / Average total deposits

89.55 %

90.48 %

(0.93)

Average non-interest bearing deposits / Average total deposits

31.51 %

32.78 %

(1.27)

Average total deposits / Average total funding (3)

92.46 %

90.16 %

2.30

(1) See GAAP to Non-GAAP Reconciliation.

(2) Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate.

(3) Total funding = Total deposits + Total borrowings.

Columbia Banking System, Inc.

Loan & Lease Portfolio Balances and Mix

(Unaudited)

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

Sep 30, 2024

% Change

($ in millions)

Amount

Seq.

Quarter

Year

over

Year

Loans and leases:

Commercial real estate:

Non-owner occupied term

$ 8,444

$ 6,190

$ 6,179

$ 6,278

$ 6,392

36 %

32 %

Owner occupied term

7,361

5,320

5,303

5,270

5,210

38 %

41 %

Multifamily

10,377

5,735

5,831

5,804

5,780

81 %

80 %

Construction & development

2,071

2,070

2,071

1,983

1,989

— %

4 %

Residential development

367

286

252

232

245

28 %

50 %

Commercial:

Term

6,590

5,353

5,490

5,538

5,429

23 %

21 %

Lines of credit & other

3,582

2,951

2,754

2,770

2,641

21 %

36 %

Leases & equipment finance

1,614

1,641

1,644

1,661

1,670

(2) %

(3) %

Residential:

Mortgage

5,722

5,830

5,878

5,933

5,945

(2) %

(4) %

Home equity loans & lines

2,153

2,083

2,039

2,032

2,017

3 %

7 %

Consumer & other

181

178

175

180

185

2 %

(2) %

Total loans and leases, net of deferred fees

and costs

$ 48,462

$ 37,637

$ 37,616

$ 37,681

$ 37,503

29 %

Loans and leases mix:

Commercial real estate:

Non-owner occupied term

18 %

16 %

17 %

Owner occupied term

15 %

14 %

Multifamily

21 %

15 %

Construction & development

4 %

6 %

5 %

Residential development

1 %

Commercial:

Term

14 %

15 %

Lines of credit & other

7 %

8 %

7 %

Leases & equipment finance

3 %

4 %

Residential:

Mortgage

12 %

15 %

16 %

Home equity loans & lines

4 %

6 %

5 %

Consumer & other

1 %

Total

100 %

Columbia Banking System, Inc.

Deposit Portfolio Balances and Mix

(Unaudited)

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

Sep 30, 2024

% Change

($ in millions)

Amount

Seq.

Quarter

Year

over

Year

Deposits:

Demand, non-interest bearing

$ 17,810

$ 13,220

$ 13,414

$ 13,308

$ 13,534

35 %

32 %

Demand, interest bearing

11,675

8,335

8,494

8,476

8,445

40 %

38 %

Money market

16,816

11,694

11,971

11,475

11,351

44 %

48 %

Savings

2,504

2,276

2,337

2,360

2,451

10 %

2 %

Time

6,966

6,218

6,002

6,102

5,734

12 %

21 %

Total

$ 55,771

$ 41,743

$ 42,218

$ 41,721

$ 41,515

34 %

Total core deposits (1)

$ 51,535

$ 37,294

$ 38,079

$ 37,488

$ 37,775

38 %

36 %

Deposit mix:

Demand, non-interest bearing

32 %

33 %

Demand, interest bearing

21 %

20 %

Money market

30 %

28 %

27 %

Savings

5 %

6 %

Time

12 %

15 %

14 %

15 %

14 %

Total

100 %

(1) Core deposits are defined as total deposits less time deposits greater than $250,000 and all brokered deposits.

Columbia Banking System, Inc.

Credit Quality – Non-performing Assets

(Unaudited)

Quarter Ended

% Change

($ in millions)

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Sep 30,

2024

Seq.

Quarter

Year

over

Year

Non-performing assets: (1)

Loans and leases on non-accrual status:

Commercial real estate

$ 53

$ 31

$ 42

$ 39

$ 37

71 %

43 %

Commercial

0 %

8 %

Total loans and leases on non-accrual status

120

122

22 %

21 %

Loans and leases past due 90+ days and accruing: (2)

Commercial

—

0 %

(17) %

Residential (2)

(4) %

16 %

Total loans and leases past due 90+ days and

accruing (2)

(4) %

13 %

Total non-performing loans and leases (1), (2)

196

177

175

167

166

11 %

18 %

Other real estate owned

0 %

50 %

Total non-performing assets (1), (2)

$ 199

$ 180

$ 178

$ 170

$ 168

11 %

18 %

Loans and leases past due 31-89 days

$ 85

$ 142

$ 158

$ 105

$ 67

(40) %

27 %

Loans and leases past due 31-89 days to total loans and

leases

0.18 %

0.38 %

0.42 %

0.28 %

0.18 %

(0.20)

—

Non-performing loans and leases to total loans and

leases (1), (2)

0.40 %

0.47 %

0.44 %

(0.07)

(0.04)

Non-performing assets to total assets (1), (2)

0.29 %

0.35 %

0.33 %

0.32 %

(0.06)

(0.03)

Non-accrual loans and leases to total loan and leases (2)

0.25 %

0.26 %

0.33 %

0.26 %

(0.01)

(1)

Non-accrual and 90+ days past due loans include government guarantees of $70 million, $68 million, $67 million, $74 million, and $66 million at September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024, and September 30, 2024, respectively.

(2)

Excludes certain mortgage loans guaranteed by GNMA, which Columbia has the unilateral right to repurchase but has not done so, totaling $2 million, $2 million, $3 million, $2 million, and $4 million at September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024, and September 30, 2024, respectively.

Columbia Banking System, Inc.

Credit Quality – Allowance for Credit Losses

(Unaudited)

Quarter Ended

% Change

($ in millions)

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Sep 30,

2024

Seq.

Quarter

Year

over

Year

Allowance for credit losses on loans and leases

(ACLLL)

Balance, beginning of period

$ 421

$ 425

$ 420

$ 419

0 %

Initial ACL recorded for PCD loans acquired during

the period

—

Provision for credit losses on loans and leases

138 %

123 %

Charge-offs

Commercial real estate

(3)

—

(3)

—

Commercial

(22)

(33)

(26)

(33)

(33) %

Residential

—

(1)

—

(1)

Consumer & other

(2)

(1)

100 %

Total charge-offs

(27)

(34)

(35)

(30)

(35)

(21) %

(23) %

Recoveries

Commercial

(20) %

Consumer & other

—

Total recoveries

0 %

Net (charge-offs) recoveries

Commercial real estate

(3)

—

(3)

—

Commercial

(18)

(28)

(29)

(22)

(28)

(36) %

Residential

—

(1)

—

(1)

Consumer & other

(1)

—

(1)

0 %

Total net charge-offs

(22)

(29)

(30)

(25)

(30)

(24) %

(27) %

Balance, end of period

$ 473

$ 421

$ 425

$ 420

12 %

13 %

Reserve for unfunded commitments

Balance, beginning of period

$ 18

$ 17

$ 16

$ 18

$ 20

6 %

(10) %

Provision (recapture) for credit losses on unfunded

commitments

(2)

0 %

Balance, end of period

6 %

Total Allowance for credit losses (ACL)

$ 492

$ 439

$ 438

$ 441

$ 438

12 %

Net charge-offs to average loans and leases

(annualized)

0.22 %

0.31 %

0.32 %

0.27 %

0.31 %

(0.09)

Recoveries to gross charge-offs

18.52 %

15.19 %

14.05 %

15.23 %

16.76 %

3.33

1.76

ACLLL to loans and leases

0.98 %

1.12 %

1.13 %

1.12 %

(0.14)

ACL to loans and leases

1.01 %

1.17 %

(0.16)

nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

Columbia Banking System, Inc.

Credit Quality – Allowance for Credit Losses

(Unaudited)

Nine Months Ended

% Change

($ in millions)

Sep 30, 2025

Sep 30, 2024

Year over Year

Allowance for credit losses on loans and leases (ACLLL)

Balance, beginning of period

$ 425

$ 441

(4) %

Initial ACL recorded for PCD loans acquired during the period

—

Provision for credit losses on loans and leases

124

49 %

Charge-offs

Commercial real estate

(3)

(1)

200 %

Commercial

(88)

(113)

(22) %

Residential

(1)

(2)

(50) %

Consumer & other

(4)

(5)

(20) %

Total charge-offs

(96)

(121)

(21) %

Recoveries

Commercial real estate

—

(100) %

Commercial

(7) %

Residential

—

(100) %

Consumer & other

100 %

Total recoveries

(12) %

Net (charge-offs) recoveries

Commercial real estate

(3)

—

Commercial

(75)

(99)

(24) %

Residential

(1)

0 %

Consumer & other

(2)

(4)

(50) %

Total net charge-offs

(81)

(104)

(22) %

Balance, end of period

$ 473

$ 420

13 %

Reserve for unfunded commitments

Balance, beginning of period

$ 16

$ 23

(30) %

Provision (recapture) for credit losses on unfunded commitments

(5)

Balance, end of period

6 %

Total Allowance for credit losses (ACL)

$ 492

$ 438

12 %

Net charge-offs to average loans and leases (annualized)

0.28 %

0.37 %

(0.09)

Recoveries to gross charge-offs

15.63 %

14.37 %

1.26

nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

Columbia Banking System, Inc.

Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates

(Unaudited)

Quarter Ended

September 30, 2025

June 30, 2025

September 30, 2024

($ in millions)

Average

Balance

Interest

Income

Expense

Average

Yields

or Rates

Average

Balance

Interest

Income

Expense

Average

Yields

or Rates

Average

Balance

Interest

Income

Expense

Average

Yields

or Rates

INTEREST-EARNING ASSETS:

Loans held for sale

$ 80

$ 1

7.14 %

$ 67

$ 1

6.66 %

$ 68

$ 1

6.62 %

Loans and leases (1)

41,164

618

5.96 %

37,648

563

6.00 %

37,544

588

6.22 %

Taxable securities

8,523

4.35 %

7,937

4.22 %

7,943

3.97 %

Non-taxable securities (2)

950

4.26 %

798

3.95 %

828

3.78 %

Temporary investments and

interest-bearing cash

1,793

4.40 %

1,421

4.46 %

1,802

5.45 %

Total interest-earning assets (1), (2)

52,510

$ 742

5.62 %

47,871

$ 671

5.62 %

48,185

$ 700

5.78 %

Goodwill and other intangible

assets

1,719

1,472

1,560

Other assets

2,594

2,209

2,264

Total assets

$ 56,823

$ 51,552

$ 52,009

INTEREST-BEARING LIABILITIES:

Interest-bearing demand deposits

$ 9,630

$ 53

2.17 %

$ 8,480

$ 48

2.28 %

$ 8,313

$ 57

2.74 %

Money market deposits

13,476

2.46 %

11,783

2.46 %

11,085

2.80 %

Savings deposits

2,358

0.16 %

2,287

0.13 %

2,480

0.17 %

Time deposits

6,481

3.57 %

6,126

3.85 %

6,141

4.65 %

Total interest-bearing deposits

31,945

195

2.43 %

28,676

180

2.52 %

28,019

208

2.95 %

Repurchase agreements and

federal funds purchased

176

2.15 %

186

2.06 %

195

2.29 %

Borrowings

2,648

4.54 %

3,058

4.53 %

3,874

5.10 %

Junior and other subordinated

debentures

430

7.99 %

428

8.05 %

417

9.43 %

Total interest-bearing liabilities

35,199

$ 235

2.65 %

32,348

$ 224

2.78 %

32,505

$ 269

3.29 %

Non-interest-bearing deposits

14,627

13,123

13,500

Other liabilities

840

794

885

Total liabilities

50,666

46,265

46,890

Common equity

6,157

5,287

5,119

Total liabilities and shareholders'

equity

$ 56,823

$ 51,552

$ 52,009

NET INTEREST INCOME (2)

$ 507

$ 447

$ 431

NET INTEREST SPREAD (2)

2.97 %

2.84 %

2.49 %

NET INTEREST INCOME TO

EARNING ASSETS OR NET

INTEREST MARGIN (1), (2)

3.84 %

3.75 %

3.56 %

(1)

Non-accrual loans and leases are included in the average balance.

(2)

Tax-exempt income was adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $2 million for the three months ended September 30, 2025, as compared to $1 million for the three months ended June 30, 2025 and $1 million for the three months ended September 30, 2024.

Columbia Banking System, Inc.

Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates

(Unaudited)

Nine Months Ended

September 30, 2025

September 30, 2024

($ in millions)

Average

Balance

Interest

Income or

Expense

Average

Yields or

Rates

Average

Balance

Interest

Income or

Expense

Average

Yields or

Rates

INTEREST-EARNING ASSETS:

Loans held for sale

$ 69

$ 3

6.74 %

$ 67

$ 3

6.56 %

Loans and leases (1)

38,843

1,733

5.96 %

37,601

1,745

6.18 %

Taxable securities

8,053

248

4.11 %

7,954

239

4.01 %

Non-taxable securities (2)

856

4.04 %

835

3.77 %

Temporary investments and interest-bearing cash

1,570

4.44 %

1,738

5.48 %

Total interest-earning assets (1), (2)

49,391

$ 2,062

5.58 %

48,195

$ 2,082

5.76 %

Goodwill and other intangible assets

1,565

1,589

Other assets

2,340

2,241

Total assets

$ 53,296

$ 52,025

INTEREST-BEARING LIABILITIES:

Interest-bearing demand deposits

$ 8,832

$ 147

2.23 %

$ 8,166

$ 162

2.66 %

Money market deposits

12,295

225

2.44 %

10,850

227

2.79 %

Savings deposits

2,332

0.13 %

2,574

0.14 %

Time deposits

6,249

178

3.81 %

6,345

222

4.67 %

Total interest-bearing deposits

29,708

552

2.49 %

27,935

614

2.93 %

Repurchase agreements and federal funds purchased

192

2.09 %

217

2.40 %

Borrowings

2,913

101

4.63 %

3,898

150

5.15 %

Junior and other subordinated debentures

432

7.99 %

419

9.44 %

Total interest-bearing liabilities

33,245

$ 682

2.74 %

32,469

$ 798

3.28 %

Non-interest-bearing deposits

13,668

13,622

Other liabilities

826

929

Total liabilities

47,739

47,020

Common equity

5,557

5,005

Total liabilities and shareholders' equity

$ 53,296

$ 52,025

NET INTEREST INCOME (2)

$ 1,380

$ 1,284

NET INTEREST SPREAD (2)

2.84 %

2.48 %

NET INTEREST INCOME TO EARNING ASSETS OR NET

INTEREST MARGIN (1), (2)

3.73 %

3.55 %

(1)

Non-accrual loans and leases are included in the average balance.

(2)

Tax-exempt income was adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $4 million for the nine months ended September 30, 2025, as compared to $3 million for the same period in 2024.

Columbia Banking System, Inc.

Residential Mortgage Banking Activity

(Unaudited)

Quarter Ended

($ in millions)

Sep 30,

2025

Jun 30,

2025

Mar 31,

2025

Dec 31,

2024

Sep 30,

2024

Seq.

Quarter

Year over

Year

Residential mortgage banking revenue:

Origination and sale

$ 5

$ 4

$ 5

— %

Servicing

(17) %

Change in fair value of MSR asset:

Changes due to collection/realization of

expected cash flows over time

(3)

— %

Changes due to valuation inputs or

assumptions

—

(2)

(1)

(6)

MSR hedge gain (loss)

—

(8)

(100) %

Total

$ 7

$ 8

$ 9

$ 7

(13) %

— %

Closed loan volume for sale

$ 166

$ 164

$ 136

$ 175

$ 161

1 %

3 %

Gain on sale margin

3.01 %

2.77 %

3.23 %

2.58 %

3.24 %

0.24

-0.23

Residential mortgage servicing rights:

Balance, beginning of period

$ 103

$ 106

$ 108

$ 102

$ 110

(3) %

(6) %

Additions for new MSR capitalized

(50) %

— %

Change in fair value of MSR asset:

Changes due to collection/realization of

expected cash flows over time

(3)

— %

Changes due to valuation inputs or

assumptions

—

(2)

(1)

(6)

Balance, end of period

$ 101

$ 103

$ 106

$ 108

$ 102

(2) %

(1) %

Residential mortgage loans serviced for others

$ 7,797

$ 7,852

$ 7,888

$ 7,939

$ 7,966

(1) %

(2) %

MSR as % of serviced portfolio

1.30 %

1.31 %

1.34 %

1.36 %

1.28 %

(0.01)

0.02

nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

Columbia Banking System, Inc.

Residential Mortgage Banking Activity

(Unaudited)

Nine Months Ended

% Change

($ in millions)

Sep 30, 2025

Sep 30, 2024

Year over

Year

Residential mortgage banking revenue:

Origination and sale

$ 14

$ 11

27 %

Servicing

(6) %

Change in fair value of MSR asset:

Changes due to collection/realization of expected cash flows over time

(9)

0 %

Changes due to valuation inputs or assumptions

(3)

(2)

50 %

MSR hedge gain (loss)

(1)

Total

$ 24

$ 17

41 %

Closed loan volume for sale

$ 466

$ 389

20 %

Gain on sale margin

3.00 %

2.98 %

0.02

Residential mortgage servicing rights:

Balance, beginning of period

$ 108

$ 109

(1) %

Additions for new MSR capitalized

25 %

Change in fair value of MSR asset:

Changes due to collection/realization of expected cash flows over time

(9)

0 %

Changes due to valuation inputs or assumptions

(3)

(2)

50 %

Balance, end of period

$ 101

$ 102

(1) %

nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

Columbia Banking System, Inc.

Purchase Price Allocation (1)

(Unaudited)

($ in millions)

August 31, 2025

Purchase price consideration

Fair value of common shares issued and exchanged

$ 2,355

Total consideration

$ 2,355

Fair value of assets acquired:

Cash and due from banks

$ 874

Investment securities

2,828

Loans held for sale

Loans and leases

11,382

Restricted equity securities

Premises and equipment

Other intangible assets

355

Deferred tax assets

132

Other assets

889

Total assets acquired

$ 16,612

Fair value of liabilities assumed:

Deposits

$ 14,542

Other liabilities

167

Total liabilities assumed

$ 14,709

Net assets acquired

$ 1,903

Goodwill

$ 452

(1)

The estimates of fair value were recorded based on initial valuations available at August 31, 2025 and these estimates, including initial accounting for deferred taxes, were considered preliminary as of September 30, 2025 and subject to adjustment for up to one year after the acquisition date.

Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted accounting principles in the United States of America ("GAAP"), this press release contains certain non-GAAP financial measures. The Company believes presenting certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends, and our financial position. We utilize these measures for internal planning and forecasting purposes, and operating pre-provision net revenue and operating return on tangible common equity are also used as part of our incentive compensation program for our executive officers. We, as well as securities analysts, investors, and other interested parties, also use these measures to compare peer company operating performance. We believe that our presentation and discussion, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting our business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitution for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation

Tangible Capital, as adjusted

(Unaudited)

Quarter Ended

% Change

($ in millions, shares in thousands)

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

Sep 30, 2024

Seq.

Quarter

Year

over

Year

Total shareholders' equity

$ 7,790

$ 5,342

$ 5,238

$ 5,118

$ 5,274

46 %

48 %

Less: Goodwill

1,481

1,029

44 %

Less: Other intangible assets, net

754

430

456

484

513

75 %

47 %

Tangible common shareholders' equity

$ 5,555

$ 3,883

$ 3,753

$ 3,605

$ 3,732

43 %

49 %

Total assets

$ 67,496

$ 51,901

$ 51,519

$ 51,576

$ 51,909

30 %

Less: Goodwill

1,481

1,029

44 %

Less: Other intangible assets, net

754

430

456

484

513

75 %

47 %

Tangible assets

$ 65,261

$ 50,442

$ 50,034

$ 50,063

$ 50,367

29 %

30 %

Common shares outstanding at period end (in

thousands)

299,147

210,213

210,112

209,536

209,532

42 %

43 %

Total shareholders' equity to total assets ratio

a / c

11.54 %

10.29 %

10.17 %

9.92 %

10.16 %

1.25

1.38

Tangible common equity to tangible assets ratio

b / d

8.51 %

7.70 %

7.50 %

7.20 %

7.41 %

0.81

1.10

Book value per common share

a / e

$ 26.04

$ 25.41

$ 24.93

$ 24.43

$ 25.17

2 %

3 %

Tangible book value per common share

b / e

$ 18.57

$ 18.47

$ 17.86

$ 17.20

$ 17.81

1 %

4 %

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation - Continued

Income Statements, as adjusted

(Unaudited)

Quarter Ended

% Change

($ in millions)

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

Sep 30, 2024

Seq.

Quarter

Year

over

Year

Non-Interest Income Adjustments

Gain (loss) on investment securities, net

$ 2

$ —

$ 2

$ (1)

$ 2

— %

(Loss) gain on swap derivatives

(1)

(3)

— %

(67) %

Gain (loss) on loans held for investment, at

fair value

—

(7)

(56) %

Change in fair value of MSR due to valuation

inputs or assumptions

—

(2)

(1)

(6)

MSR hedge gain (loss)

—

(8)

(100) %

Total non-interest income adjustments

$ 5

$ (1)

$ 10

$ (6)

$ 7

(29) %

Non-Interest Expense Adjustments

Merger and restructuring expense

$ 87

$ 8

$ 14

$ 2

Exit and disposal costs

—

(100) %

FDIC special assessment

(1)

—

Legal settlement

—

Total non-interest expense adjustments

$ 86

$ 8

$ 70

$ 3

Net interest income

$ 505

$ 446

$ 425

$ 437

$ 430

13 %

17 %

Non-interest income (GAAP)

$ 77

$ 65

$ 66

$ 50

$ 66

18 %

17 %

Less: Non-interest income adjustments

(5)

(10)

(7)

(29) %

Operating non-interest income (non-GAAP)

$ 72

$ 66

$ 56

$ 59

9 %

22 %

Revenue (GAAP)

f=c+d

$ 582

$ 511

$ 491

$ 487

$ 496

14 %

17 %

Operating revenue (non-GAAP)

g=c+e

$ 577

$ 512

$ 481

$ 493

$ 489

13 %

18 %

Non-interest expense (GAAP)

$ 393

$ 278

$ 340

$ 267

$ 271

41 %

45 %

Less: Non-interest expense adjustments

(86)

(8)

(70)

(3)

Operating non-interest expense (non-GAAP)

$ 307

$ 270

$ 264

$ 268

14 %

15 %

Net income (GAAP)

$ 96

$ 152

$ 87

$ 143

$ 146

(37) %

(34) %

Provision for income taxes

(55) %

(54) %

Income before provision for income taxes

119

203

124

192

196

(41) %

(39) %

Provision for credit losses

133 %

141 %

Pre-provision net revenue (PPNR) (non-GAAP)

189

233

151

220

225

(19) %

(16) %

Less: Non-interest income adjustments

(5)

(10)

(7)

(29) %

Add: Non-interest expense adjustments

Operating PPNR (non-GAAP)

$ 270

$ 242

$ 211

$ 229

$ 221

12 %

22 %

Net income (GAAP)

$ 96

$ 152

$ 87

$ 143

$ 146

(37) %

(34) %

Day 1 acquisition provision expense

—

Less: Non-interest income adjustments

(5)

(10)

(7)

(29) %

Add: Non-interest expense adjustments

Tax effect of adjustments

(43)

(1)

(8)

(2)

Operating net income (non-GAAP)

$ 204

$ 160

$ 139

$ 150

$ 143

28 %

43 %

nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation - Continued

Average Balances, Earnings Per Share, and Performance Metrics, as adjusted

(Unaudited)

Quarter Ended

% Change

($ in millions, shares in thousands)

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

Sep 30, 2024

Seq.

Quarter

Year

over

Year

Average assets

$ 56,823

$ 51,552

$ 51,453

$ 51,588

$ 52,009

10 %

9 %

Less: Average goodwill and other intangible

assets, net

1,719

1,472

1,502

1,528

1,560

17 %

10 %

Average tangible assets

$ 55,104

$ 50,080

$ 49,951

$ 50,060

$ 50,449

10 %

9 %

Average common shareholders' equity

$ 6,157

$ 5,287

$ 5,217

$ 5,226

$ 5,119

16 %

20 %

Less: Average goodwill and other intangible

assets, net

1,719

1,472

1,502

1,528

1,560

17 %

10 %

Average tangible common equity

$ 4,438

$ 3,815

$ 3,715

$ 3,698

$ 3,559

16 %

25 %

Weighted average basic shares outstanding

(in thousands)

237,838

209,125

208,800

208,548

208,545

14 %

Weighted average diluted shares outstanding

(in thousands)

238,925

209,975

210,023

209,889

209,454

14 %

Select Per-Share & Performance Metrics

Earnings per share - basic

j / r

$ 0.40

$ 0.73

$ 0.41

$ 0.69

$ 0.70

(45) %

(43) %

Earnings per share - diluted

j / s

$ 0.40

$ 0.73

$ 0.41

$ 0.68

$ 0.70

(45) %

(43) %

Efficiency ratio (1)

h / f

67.29 %

54.29 %

69.06 %

54.61 %

54.56 %

13.00

12.73

Non-interest expense to average assets

h / n

2.74 %

2.16 %

2.68 %

2.06 %

2.08 %

0.58

0.66

Return on average assets

j / n

0.67 %

1.19 %

0.68 %

1.10 %

1.12 %

(0.52)

(0.45)

Return on average tangible assets

j / o

0.69 %

1.22 %

0.70 %

1.14 %

1.15 %

(0.53)

(0.46)

PPNR return on average assets

k / n

1.32 %

1.81 %

1.19 %

1.70 %

1.72 %

(0.49)

(0.40)

Return on average common equity

j / p

6.19 %

11.56 %

6.73 %

10.91 %

11.36 %

(5.37)

(5.17)

Return on average tangible common equity

j / q

8.58 %

16.03 %

9.45 %

15.41 %

16.34 %

(7.45)

(7.76)

Operating Per-Share & Performance Metrics

Operating earnings per share - basic

m / r

$ 0.86

$ 0.77

$ 0.67

$ 0.72

$ 0.69

12 %

25 %

Operating earnings per share - diluted

m / s

$ 0.85

$ 0.76

$ 0.67

$ 0.71

$ 0.69

12 %

23 %

Operating efficiency ratio, as adjusted (1)

u / y

52.32 %

51.79 %

55.11 %

52.51 %

53.89 %

0.53

(1.57)

Operating non-interest expense to average

assets

i / n

2.14 %

2.10 %

2.13 %

2.03 %

2.05 %

0.04

0.09

Operating return on average assets

m / n

1.42 %

1.25 %

1.10 %

1.15 %

1.10 %

0.17

0.32

Operating return on average tangible assets

m / o

1.47 %

1.28 %

1.13 %

1.19 %

1.13 %

0.19

0.34

Operating PPNR return on average assets

l / n

1.89 %

1.88 %

1.67 %

1.77 %

1.69 %

0.01

0.20

Operating return on average common equity

m / p

13.15 %

12.16 %

10.87 %

11.40 %

11.15 %

0.99

2.00

Operating return on average tangible common

equity

m / q

18.24 %

16.85 %

15.26 %

16.11 %

16.04 %

1.39

2.20

(1)

Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation - Continued

Operating Efficiency Ratio, as adjusted

(Unaudited)

Quarter Ended

% Change

($ in millions)

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

Sep 30, 2024

Seq.

Quarter

Year

over

Year

Non-interest expense (GAAP)

$ 393

$ 278

$ 340

$ 267

$ 271

41 %

45 %

Less: Non-interest expense adjustments

(86)

(8)

(70)

(3)

Operating non-interest expense (non-GAAP)

307

270

264

268

14 %

15 %

Less: B&O taxes

(3)

(4)

(3)

— %

Operating non-interest expense, excluding

B&O taxes (non-GAAP)

$ 304

$ 267

$ 260

$ 265

14 %

15 %

Net interest income (tax equivalent) (1)

$ 507

$ 447

$ 426

$ 438

$ 431

13 %

18 %

Non-interest income (GAAP)

18 %

17 %

Add: BOLI tax equivalent adjustment (1)

— %

100 %

Total Revenue, excluding BOLI tax equivalent

adjustments (tax equivalent)

586

514

493

489

498

14 %

18 %

Less: Non-interest income adjustments

(5)

(10)

(7)

(29) %

Total Adjusted Operating Revenue,

excluding BOLI tax equivalent adjustments

(tax equivalent) (non-GAAP)

$ 581

$ 515

$ 483

$ 495

$ 491

13 %

18 %

Efficiency ratio (1)

h / f

67.29 %

54.29 %

69.06 %

54.61 %

54.56 %

13.00

12.73

Operating efficiency ratio, as adjusted (non-GAAP) (1)

u / y

52.32 %

51.79 %

55.11 %

52.51 %

53.89 %

0.53

(1.57)

nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

(1)

Tax-exempt income was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation - Continued

Income Statements, as adjusted

(Unaudited)

Nine Months Ended

% Change

($ in millions)

Sep 30, 2025

Sep 30, 2024

Year over Year

Non-Interest Income Adjustments

Gain on investment securities, net

$ 4

$ 1

300 %

(Loss) gain on swap derivatives

(3)

(2)

50 %

Gain (loss) on loans held for investment, at fair value

(3)

Change in fair value of MSR due to valuation inputs or assumptions

(3)

(2)

50 %

MSR hedge loss

(1)

Total non-interest income adjustments

$ 14

$ (7)

Non-Interest Expense Adjustments

Merger and restructuring expense

$ 109

$ 21

419 %

Exit and disposal costs

(67) %

FDIC special assessment

(1)

(117) %

Legal settlement

—

Total non-interest expense adjustments

$ 164

$ 30

447 %

Net interest income

$ 1,376

$ 1,281

7 %

Non-interest income (GAAP)

$ 208

$ 161

29 %

Less: Non-interest income adjustments

(14)

(300) %

Operating non-interest income (non-GAAP)

$ 194

$ 168

15 %

Revenue (GAAP)

f=c+d

$ 1,584

$ 1,442

10 %

Operating revenue (non-GAAP)

g=c+e

$ 1,570

$ 1,449

8 %

Non-interest expense (GAAP)

$ 1,011

$ 838

21 %

Less: Non-interest expense adjustments

(164)

(30)

447 %

Operating non-interest expense (non-GAAP)

$ 847

$ 808

5 %

Net income (GAAP)

$ 335

$ 390

(14) %

Provision for income taxes

111

136

(18) %

Income before provision for income taxes

446

526

(15) %

Provision for credit losses

127

63 %

Pre-provision net revenue (PPNR) (non-GAAP)

573

604

(5) %

Less: Non-interest income adjustments

(14)

(300) %

Add: Non-interest expense adjustments

164

447 %

Operating PPNR (non-GAAP)

$ 723

$ 641

13 %

Net income (GAAP)

$ 335

$ 390

(14) %

Day 1 acquisition provision expense

—

Less: Non-interest income adjustments

(14)

(300) %

Add: Non-interest expense adjustments

164

447 %

Tax effect of adjustments

(52)

(9)

478 %

Operating net income (non-GAAP)

$ 503

$ 418

20 %

nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation - Continued

Average Balances, Earnings Per Share, and Performance Metrics, as adjusted

(Unaudited)

Nine Months Ended

% Change

($ in millions, shares in thousands)

Sep 30, 2025

Sep 30, 2024

Year over Year

Average assets

$ 53,296

$ 52,025

2 %

Less: Average goodwill and other intangible assets, net

1,565

1,589

(2) %

Average tangible assets

$ 51,731

$ 50,436

3 %

Average common shareholders' equity

$ 5,557

$ 5,005

11 %

Less: Average goodwill and other intangible assets, net

1,565

1,589

(2) %

Average tangible common equity

$ 3,992

$ 3,416

17 %

Weighted average basic shares outstanding

218,694

208,435

5 %

Weighted average diluted shares outstanding

219,712

209,137

5 %

Select Per-Share & Performance Metrics

Earnings per share - basic

j / r

$ 1.53

$ 1.87

(18) %

Earnings per share - diluted

j / s

$ 1.53

$ 1.87

(18) %

Efficiency ratio (1)

h / f

63.66 %

57.99 %

5.67

Non-interest expense to average assets

h/n

2.54 %

2.15 %

0.39

Return on average assets

j / n

0.84 %

1.00 %

(0.16)

Return on average tangible assets

j / o

0.87 %

1.03 %

(0.16)

PPNR return on average assets

k/n

1.44 %

1.55 %

(0.11)

Return on average common equity

j / p

8.06 %

10.42 %

(2.36)

Return on average tangible common equity

j / q

11.22 %

15.27 %

(4.05)

Operating Per-Share & Performance Metrics

Operating earnings per share - basic

m / r

$ 2.30

$ 2.01

14 %

Operating earnings per share - diluted

m / s

$ 2.29

$ 2.00

15 %

Operating efficiency ratio, as adjusted (1)

u / y

53.07 %

54.80 %

(1.73)

Operating non-interest expense to average assets

i/n

2.12 %

2.07 %

0.05

Operating return on average assets

m / n

1.26 %

1.07 %

0.19

Operating return on average tangible assets

m / o

1.30 %

1.11 %

0.19

Operating PPNR return on average assets

l / n

1.81 %

1.65 %

0.16

Operating return on average common equity

m / p

12.10 %

11.17 %

0.93

Operating return on average tangible common equity

m / q

16.85 %

16.36 %

0.49

(1)

Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation - Continued

Operating Efficiency Ratio, as adjusted

(Unaudited)

Nine Months Ended

% change

($ in millions)

Sep 30, 2025

Sep 30, 2024

Year over Year

Non-interest expense (GAAP)

$ 1,011

$ 838

21 %

Less: Non-interest expense adjustments

(164)

(30)

447 %

Operating non-interest expense (non-GAAP)

847

808

5 %

Less: B&O taxes

(9)

(10)

(10) %

Operating non-interest expense, excluding B&O taxes (non-GAAP)

$ 838

$ 798

5 %

Net interest income (tax equivalent) (1)

$ 1,380

$ 1,284

7 %

Non-interest income (GAAP)

208

161

29 %

Add: BOLI tax equivalent adjustment (1)

25 %

Total Revenue, excluding BOLI tax equivalent adjustments (tax equivalent)

1,593

1,449

10 %

Less: Non-interest income adjustments

(14)

(300) %

Total Adjusted Operating Revenue, excluding BOLI tax equivalent adjustments

(tax equivalent) (non-GAAP)

$ 1,579

$ 1,456

8 %

Efficiency ratio (1)

h /f

63.66 %

57.99 %

5.67

Operating efficiency ratio, as adjusted (non-GAAP) (1)

u / y

53.07 %

54.80 %

(1.73)

(1)

Tax-exempt income was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.

SOURCE Columbia Banking System, Inc.