TACOMA, Wash., July 23, 2026 /PRNewswire/ --
$208 million
$217 million $0.73 $0.76
Net income Operating net Earnings per common Operating earnings
income(1) share - per
diluted common share -
diluted(1)
CEO Commentary
"Our second quarter results demonstrate the resilience of our franchise and reflect the value of disciplined execution across the company," said Clint Stein, Chairman, CEO & President. "While the operating environment remains dynamic, we continued to execute on our strategic priorities through prudent expense
management, ongoing balance sheet optimization, and consistent capital returns to shareholders. Commercial loan balances continued to grow, reflecting the strength of our customer relationships and the trust we have built across our markets. We also continued to reposition the balance sheet in ways that support
stronger long-term performance. Supported by our diversified business model, sound credit culture, and strong capital generation, we remain committed to delivering sustainable returns and creating long-term value for our shareholders."
Clint Stein, Chairman, CEO & President of Columbia Banking System, Inc.
2Q26 HIGHLIGHTS (COMPARED TO 1Q26)
Net Interest • Net interest income decreased by $5
million
Income and from the prior quarter, due in part to
$4 million of
NIM interest income reversals, alongside
modest
balance sheet deleveraging.
• Net interest margin was 3.93%, down 3 basis
points from the prior quarter, as the interest
income reversals mentioned above reduced the
net interest margin by 3 basis points.
Non-Interest • Non-interest income increased by $5
million,
Income and due primarily to higher treasury
management
Expense and card-based fees, partially offset
by quarterly
changes in fair value adjustments and
hedging
activity. Results also include $3
million in death
benefit proceeds related to a single
policy.
• Non-interest expense decreased by $19 million,
due to lower merger expense and the realization
of acquisition-related cost savings.
Credit • Net charge-offs were 0.25% of average
loans
Quality and leases (annualized), compared to
0.30% for
the prior quarter.
• Provision expense was $27 million, compared to
$28 million for the prior quarter.
• Non-performing assets to total assets ratio was
0.42%, compared to 0.40% as of March 31,
2026.
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 $0.37 per
common share on May 15, 2026, which was
paid June 15, 2026.
• Repurchased $199 million of common stock
under our current repurchase plan.
Notable • Our first small business and retail
campaign of
Items 2026, which began in February and
ended April 30, 2026, brought over $600
million in new deposits to the bank and
also was
successful in generating new SBA lending
relationships. Our second campaign began
in
June and has generated approximately
$650
million in new deposit balances through
mid-
July.
2Q26 KEY FINANCIAL DATA
PERFORMANCE METRICS 2Q26 1Q26 2Q25
Return on average assets 1.27 % 1.18 % 1.19 %
Return on average common equity 10.99 % 10.00 % 11.56 %
Return on average tangible common 15.29 % 13.88 % 16.03 %
equity(1)
Operating return on average assets(1) 1.33 % 1.28 % 1.25 %
Operating return on average 11.46 % 10.89 % 12.16 %
common equity(1)
Operating return on average 15.95 % 15.11 % 16.85 %
tangible common equity(1)
Net interest margin 3.93 % 3.96 % 3.75 %
Efficiency ratio 55.15 % 58.03 % 54.29 %
Operating efficiency ratio, as 52.92 % 53.68 % 51.79 %
adjusted (1)
INCOME STATEMENT 2Q26 1Q26 2Q25
($ in millions, excl. per share data)
Net interest income $589 $594 $446
Provision for credit losses $27 $28 $30
Non-interest income $88 $83 $65
Non-interest expense $375 $394 $278
Pre-provision net revenue(1) $302 $283 $233
Operating pre-provision net $314 $306 $242
revenue(1)
Earnings per common $0.73 $0.66 $0.73
share - diluted
Operating earnings per common $0.76 $0.72 $0.76
share - diluted(1)
Dividends paid per share $0.37 $0.37 $0.36
BALANCE SHEET 2Q26 1Q26 2Q25
($ in millions, excl. per share data)
Total assets $65,380 $66,027 $51,901
Loans and leases $47,166 $47,697 $37,637
Deposits $52,056 $53,489 $41,743
Book value per common share $26.70 $26.47 $25.41
Tangible book value per common $19.22 $19.03 $18.47
share(1)
Organizational 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, and completed the systems conversion and nine branch consolidations during the first quarter of 2026. All organizational changes and cost-related synergies were essentially complete as of June 30, 2026, including the achievement of our previously disclosed cost savings target associated with the Pacific Premier acquisition.
During the second quarter, we opened a branch in Colorado Springs and a financial hub in Las Vegas. We continue to strategically expand and refine our physical footprint to support relationship-driven growth, while funding these initiatives through targeted real estate optimization and other efficiency improvements.
Net Interest Income and Net Interest Margin
Net interest income was $589 million for the second quarter of 2026, down $5 million from the first quarter of 2026, due in part to $4 million of interest income reversals, alongside modest balance sheet deleveraging.
Columbia's net interest margin was 3.93% for the second quarter of 2026, down 3 basis points from the first quarter of 2026, as the interest income reversals mentioned above reduced the net interest margin by 3 basis points during the second quarter. Excluding this impact, net interest margin was consistent between periods, as higher yields on loans and leases partially offset a lower yield on taxable securities, driven by changes in prepayment speed expectations. Improved funding costs also contributed favorably to the net interest margin.
The cost of interest-bearing deposits decreased 8 basis points from the prior quarter to 1.96% for the second quarter of 2026, compared to 2.04% for the first quarter of 2026. The decrease during the second quarter reflects our active management of deposit rates and a lower mix of higher-cost brokered deposits. The cost of interest-bearing deposits was 1.95% for the month of June and 1.94% as of June 30, 2026.
Columbia's cost of interest-bearing liabilities decreased 3 basis points from the prior quarter to 2.21% for the second quarter of 2026, compared to 2.24% for the first quarter of 2026. The cost of interest-bearing liabilities was 2.22% for the month of June and 2.21% as of June 30, 2026. Refer to the Q2 2026 Earnings Presentation for additional net interest margin change details and interest rate sensitivity information.
Non-interest Income
Non-interest income was $88 million for the second quarter of 2026, up $5 million from the prior quarter. Quarterly changes in fair value adjustments and mortgage servicing rights ("MSR") hedging activity, which reflect interest rate fluctuations during the quarter, collectively resulted in a net fair value loss of $3 million for the second quarter, compared to a net fair value gain of $2 million for the first quarter, as detailed in our non-GAAP disclosures. Excluding these items, non-interest income was $91 million2 for the second quarter of 2026, up $10 million between periods, due primarily to higher treasury management and card-based fees. We also received $3 million in death benefit proceeds during the second quarter related to a single policy, which was recorded in other income.
Non-interest Expense
Non-interest expense was $375 million for the second quarter of 2026, down $19 million from the prior quarter, due to lower merger expense. Excluding merger and restructuring expense and exit and disposal costs, as detailed in our non-GAAP disclosures, non-interest expense was $366 million2, down $3 million from the prior quarter, due to cost savings related to the Pacific Premier acquisition. Refer to the Q2 2026 Earnings Presentation for additional expense details.
Balance Sheet
Total consolidated assets were $65.4 billion as of June 30, 2026, compared to $66.0 billion as of March 31, 2026. The decrease reflects balance sheet optimization activity. Cash and cash equivalents were $1.8 billion as of June 30, 2026, compared to $2.1 billion as of March 31, 2026. Including secured off-balance sheet lines of credit, total available liquidity was $25.6 billion as of June 30, 2026, representing 39% of total assets, 49% of total deposits, and 125% of uninsured deposits. Available-for-sale securities, which are held on balance sheet at fair value, were $11.1 billion as of June 30, 2026, compared to $10.9 billion as of March 31, 2026. The increase is due to the purchase of $462 million of investment securities, which offset paydowns and a decrease in the fair value of the portfolio. Refer to the Q2 2026 Earnings Presentation for additional details related to our investment securities portfolio and liquidity position.
Gross loans and leases were $47.2 billion as of June 30, 2026, compared to $47.7 billion as of March 31, 2026. The decrease reflects continued expected runoff in below-market-rate transactional loans and lower balances in non-owner occupied commercial real estate given elevated payoffs, due in part to competitive pricing pressure. Commercial loans, inclusive of owner-occupied commercial real estate, increased by 5% on an annualized basis relative to March 31, 2026, partially offsetting contraction in other portfolios. "Our bankers remained focused on relationship-driven activity during the second quarter, generating new business opportunities while continuing to manage the balance sheet with discipline," commented Tory Nixon, President of Columbia Bank. "Commercial relationship growth remained solid, and the continued runoff of lower-return transactional loans is reshaping our balance sheet as intended. Customer engagement remains healthy, and we remain encouraged by the quality of our pipelines and the opportunities we see across our western footprint." Refer to the Q2 2026 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 $52.1 billion as of June 30, 2026, compared to $53.5 billion as of March 31, 2026. The decrease reflects intentional reductions in brokered deposits and wholesale public deposits, which declined to $978 million and $928 million, respectively, as of June 30, 2026, compared to $1.6 billion and $1.2 billion, respectively, as of March 31, 2026. Customer deposit contraction in April due to seasonal tax payments also contributed to the decline between periods. "Seasonal factors reduced deposit balances early in the quarter, with balances stabilizing in May and June despite increasing competition," stated Mr. Nixon. "Our teams continue to emphasize relationship banking, serving our customers through advice-driven conversations and tailored solutions, while preserving the strength of our core deposit franchise. Meeting the evolving needs of our customers remains at the center of the value we provide." We utilized borrowings, which were $4.3 billion as of June 30, 2026, compared to $3.4 billion as of March 31, 2026, to supplement funding needs. Refer to the Q2 2026 Earnings Presentation for additional details related to deposit characteristics and flows.
Credit Quality
The allowance for credit losses ("ACL") was $475 million, or 1.01% of loans and leases, as of June 30, 2026, compared to $478 million, or 1.00% of loans and leases, as of March 31, 2026. The provision for credit losses was $27 million for the second quarter of 2026 and reflects loan portfolio runoff, credit migration trends, charge-off activity, and changes in the economic forecasts used in credit models.
Net charge-offs were 0.25% of average loans and leases (annualized) for the second quarter of 2026, compared to 0.30% for the first quarter of 2026. Net charge-offs in the FinPac portfolio were $15 million for the second quarter, compared to $14 million for the first quarter. Net charge-offs excluding the FinPac portfolio were $15 million for the second quarter, compared to $21 million for the first quarter. Non-performing assets were $273 million, or 0.42% of total assets, as of June 30, 2026, compared to $264 million, or 0.40% of total assets, as of March 31, 2026. Refer to the Q2 2026 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 $26.70 as of June 30, 2026, compared to $26.47 as of March 31, 2026. During the second quarter, Columbia repurchased 6.6 million common shares under its current repurchase plan at an average price of $29.93, representing 2.3% of outstanding common shares. Book value also was impacted by the change in accumulated other comprehensive (loss) income ("AOCI") to $(310) million as of June 30, 2026, compared to $(291) million as of the prior quarter-end. The change in AOCI is due primarily to an increase in the tax-effected net unrealized loss on available-for-sale securities to $275 million as of June 30, 2026, compared to $260 million as of March 31, 2026. Tangible book value per common share3 was $19.22 as of June 30, 2026, compared to $19.03 as of March 31, 2026.
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 June 30, 2026, compared to 13.5% and 11.7%, respectively, as of March 31, 2026. Columbia remains above current "well-capitalized" regulatory minimums. The regulatory capital ratios as of June 30, 2026 are estimates, pending completion and filing of Columbia's regulatory reports.
Earnings Presentation and Conference Call Information
Columbia's Q2 2026 Earnings Presentation provides additional disclosure. A copy will be available on our investor relations page: www.columbiabankingsystem.com.
Columbia will host its second quarter 2026 earnings conference call on July 23, 2026 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 second quarter 2026 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/thdt6a5z/
Register for the call: https://register-conf.media-server.com/register/BIb20bf1c21e7e4dcd93e446da448dd1e9
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 preeminent regional bank with offices in Arizona, California, Colorado, Idaho, Nevada, Oregon, Texas, 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.
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, 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) any revenue synergies from the Transaction may not be fully realized or may take longer than anticipated to be realized, and (ii) deposit attrition as a result of the Transaction; 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 and state regulations), and other factors deemed relevant by Columbia's Board of Directors.
_________________________
(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.
TABLE INDEX
Page
Consolidated Statements of Income 7
Consolidated Balance Sheets 8
Financial Highlights 10
Loan & Lease Portfolio Balances and Mix 11
Deposit Portfolio Balances and Mix 13
Credit Quality - Non-performing Assets 14
Credit Quality - Allowance for Credit Losses 15
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates 17
Residential Mortgage Banking Activity 19
GAAP to Non-GAAP Reconciliation 21
Columbia Banking System, Inc.
Consolidated Statements of Income
(Unaudited)
Quarter Ended % Change
($ in millions, shares in thousands) Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Seq. Year
2026 2026 2025 2025 2025 over
Quarter Year
Interest income:
Loans and leases $683 $684 $722 $619 $564 - % 21 %
Interest and dividends on investments:
Taxable 98 103 102 89 80 (5) % 23 %
Exempt from federal income tax 12 12 12 8 7 - % 71 %
Dividends 4 3 3 4 3 33 % 33 %
Temporary investments and interest bearing deposits 13 14 19 20 16 (7) % (19) %
Total interest income 810 816 858 740 670 (1) % 21 %
Interest expense:
Deposits 173 184 195 195 180 (6) % (4) %
Securities sold under agreement to repurchase and 1 1 1 1 1 - % - %
federal funds purchased
Borrowings 39 30 27 30 35 30 % 11 %
Junior and other subordinated debentures 8 7 8 9 8 14 % - %
Total interest expense 221 222 231 235 224 - % (1) %
Net interest income 589 594 627 505 446 (1) % 32 %
Provision for credit losses 27 28 23 70 30 (4) % (10) %
Non-interest income:
Service charges on deposits 23 20 24 21 20 15 % 15 %
Card-based fees 17 15 16 15 14 13 % 21 %
Financial services and trust revenue 15 15 15 9 6 - % 150 %
Residential mortgage banking revenue, net 7 12 7 7 8 (42) % (13) %
(Loss) gain on investment securities, net (1) 2 2 nm nm
Gain on loan and lease sales, net - 1 1 (100) % nm
(Loss) gain on loans held for investment, at fair value (1) (2) 4 (50) % nm
BOLI income 9 9 9 6 5 - % 80 %
Other income 19 13 16 13 12 46 % 58 %
Total non-interest income 88 83 90 77 65 6 % 35 %
Non-interest expense:
Salaries and employee benefits 196 196 201 171 155 - % 26 %
Occupancy and equipment, net 65 66 67 54 47 (2) % 38 %
FDIC assessments 9 9 4 8 8 - % 13 %
Intangible amortization 38 41 42 31 26 (7) % 46 %
Merger and restructuring expense 9 24 39 87 8 (63) % 13 %
Other expenses 58 58 59 42 34 - % 71 %
Total non-interest expense 375 394 412 393 278 (5) % 35 %
Income before provision for income taxes 275 255 282 119 203 8 % 35 %
Provision for income taxes 67 63 67 23 51 6 % 31 %
Net income $208 $192 $215 $96 $152 8 % 37 %
Weighted average basic shares outstanding (in 285,558 290,933 295,376 237,838 209,125 (2) % 37 %
thousands)
Weighted average diluted shares outstanding (in 286,472 292,160 296,760 238,925 209,975 (2) % 36 %
thousands)
Earnings per common share - basic $0.73 $0.66 $0.72 $0.40 $0.73 11 % - %
Earnings per common share - diluted $0.73 $0.66 $0.72 $0.40 $0.73 11 % - %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
Columbia Banking System, Inc.
Consolidated Statements of Income
(Unaudited)
Six Months Ended % Change
($ in millions, shares in thousands) Jun 30, 2026 Jun 30, 2025 Year over
Year
Interest income:
Loans and leases $1,367 $1,117 22 %
Interest and dividends on investments:
Taxable 201 149 35 %
Exempt from federal income tax 24 14 71 %
Dividends 7 6 17 %
Temporary investments and interest bearing deposits 27 32 (16) %
Total interest income 1,626 1,318 23 %
Interest expense:
Deposits 357 357 0 %
Securities sold under agreement to repurchase and federal funds purchased 2 2 0 %
Borrowings 69 71 (3) %
Junior and other subordinated debentures 15 17 (12) %
Total interest expense 443 447 (1) %
Net interest income 1,183 871 36 %
Provision for credit losses 55 57 (4) %
Non-interest income:
Service charges on deposits 43 39 10 %
Card-based fees 32 27 19 %
Financial services and trust revenue 30 11 173 %
Residential mortgage banking revenue, net 19 17 12 %
(Loss) gain on investment securities, net (1) 2 (150) %
Gain on loan and lease sales, net 1 nm
(Loss) gain on loans held for investment, at fair value (3) 7 (143) %
BOLI income 18 10 80 %
Other income 32 18 78 %
Total non-interest income 171 131 31 %
Non-interest expense:
Salaries and employee benefits 392 300 31 %
Occupancy and equipment, net 131 95 38 %
FDIC assessments 18 16 13 %
Intangible amortization 79 54 46 %
Merger and restructuring expense 33 23 43 %
Legal settlement 55 (100) %
Other expenses 116 75 55 %
Total non-interest expense 769 618 24 %
Income before provision for income taxes 530 327 62 %
Provision for income taxes 130 88 48 %
Net income $400 $239 67 %
Weighted average basic shares outstanding (in thousands) 288,130 208,964 38 %
Weighted average diluted shares outstanding (in thousands) 289,212 209,965 38 %
Earnings per common share - basic $1.39 $1.14 22 %
Earnings per common share - diluted $1.38 $1.14 21 %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
Columbia Banking System, Inc.
Consolidated Balance Sheets
(Unaudited)
% Change
($ in millions, shares in thousands) Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Seq. Year
over
Quarter Year
Assets:
Cash and due from banks $648 $577 $511 $535 $608 12 % 7 %
Interest-bearing cash and temporary 1,121 1,522 1,869 1,808 1,334 (26) % (16) %
investments
Investment securities:
Equity and other, at fair value 126 124 113 112 93 2 % 35 %
Available for sale, at fair value 11,131 10,915 11,112 11,013 8,653 2 % 29 %
Held to maturity, at amortized cost 17 18 18 18 2 (6) % nm
Loans held for sale 61 81 262 340 66 (25) % (8) %
Loans and leases 47,166 47,697 47,776 48,462 37,637 (1) % 25 %
Allowance for credit losses on loans and (458) (459) (466) (473) (421) - % 9 %
leases
Net loans and leases 46,708 47,238 47,310 47,989 37,216 (1) % 26 %
Restricted equity securities 207 168 159 119 161 23 % 29 %
Premises and equipment, net 424 426 422 416 357 - % 19 %
Goodwill 1,482 1,482 1,482 1,481 1,029 - % 44 %
Other intangible assets, net 633 671 712 754 430 (6) % 47 %
Bank-owned life insurance 1,227 1,222 1,218 1,199 705 - % 74 %
Other assets 1,595 1,583 1,644 1,712 1,247 1 % 28 %
Total assets $65,380 $66,027 $66,832 $67,496 $51,901 (1) % 26 %
Liabilities:
Deposits
Non-interest-bearing $17,218 $17,635 $17,419 $17,810 $13,220 (2) % 30 %
Interest-bearing 34,838 35,854 36,792 37,961 28,523 (3) % 22 %
Total deposits 52,056 53,489 54,211 55,771 41,743 (3) % 25 %
Securities sold under agreements to 189 162 207 167 191 17 % (1) %
repurchase
Borrowings 4,250 3,400 3,200 2,300 3,350 25 % 27 %
Junior subordinated debentures, at fair value 339 333 338 331 323 2 % 5 %
Junior and other subordinated debentures, 97 97 97 107 108 - % (10) %
at amortized cost
Other liabilities 897 882 939 1,030 844 2 % 6 %
Total liabilities 57,828 58,363 58,992 59,706 46,559 (1) % 24 %
Shareholders' equity:
Common stock 7,702 7,896 8,099 8,189 5,826 (2) % 32 %
Retained earnings (accumulated deficit) 160 59 (26) (131) (151) 171 % nm
Accumulated other comprehensive loss (310) (291) (233) (268) (333) 7 % (7) %
Total shareholders' equity 7,552 7,664 7,840 7,790 5,342 (1) % 41 %
Total liabilities and shareholders' equity $65,380 $66,027 $66,832 $67,496 $51,901 (1) % 26 %
Common shares outstanding at period end (in 282,817 289,530 295,422 299,147 210,213 (2) % 35 %
thousands)
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
Columbia Banking System, Inc.
Financial Highlights
(Unaudited)
Quarter Ended % Change
Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Seq. Year
2026 2026 2025 2025 2025 Quarter over
Year
Per Common Share Data:
---
Dividends $0.37 $0.37 $0.37 $0.36 $0.36 - % 3 %
Book value $26.70 $26.47 $26.54 $26.04 $25.41 1 % 5 %
Tangible book value (1) $19.22 $19.03 $19.11 $18.57 $18.47 1 % 4 %
Performance Ratios:
---
Efficiency ratio (2) 55.15 % 58.03 % 57.30 % 67.29 % 54.29 % (2.88) 0.86
Non-interest expense to average assets (1) 2.29 % 2.41 % 2.44 % 2.74 % 2.16 % (0.12) 0.13
Return on average assets ("ROAA") 1.27 % 1.18 % 1.27 % 0.67 % 1.19 % 0.09 0.08
Pre-provision net revenue ("PPNR") ROAA (1) 1.85 % 1.73 % 1.80 % 1.32 % 1.81 % 0.12 0.04
Return on average common equity 10.99 % 10.00 % 10.92 % 6.19 % 11.56 % 0.99 (0.57)
Return on average tangible common equity (1) 15.29 % 13.88 % 15.24 % 8.58 % 16.03 % 1.41 (0.74)
Performance Ratios - Operating:
(1)
---
Operating efficiency ratio, as adjusted (1),(2) 52.92 % 53.68 % 51.39 % 52.32 % 51.79 % (0.76) 1.13
Operating non-interest expense to average assets (1) 2.24 % 2.26 % 2.20 % 2.14 % 2.10 % (0.02) 0.14
Operating ROAA (1) 1.33 % 1.28 % 1.44 % 1.42 % 1.25 % 0.05 0.08
Operating PPNR ROAA (1) 1.92 % 1.87 % 2.02 % 1.89 % 1.88 % 0.05 0.04
Operating return on average common equity (1) 11.46 % 10.89 % 12.34 % 13.15 % 12.16 % 0.57 (0.70)
Operating return on average tangible common equity (1) 15.95 % 15.11 % 17.22 % 18.24 % 16.85 % 0.84 (0.90)
Average Balance Sheet Yields, Rates, & Ratios:
---
Yield on loans and leases 5.77 % 5.78 % 5.92 % 5.96 % 6.00 % (0.01) (0.23)
Yield on earning assets (2) 5.40 % 5.44 % 5.55 % 5.62 % 5.62 % (0.04) (0.22)
Cost of interest bearing deposits 1.96 % 2.04 % 2.08 % 2.43 % 2.52 % (0.08) (0.56)
Cost of interest bearing liabilities 2.21 % 2.24 % 2.27 % 2.65 % 2.78 % (0.03) (0.57)
Cost of total deposits 1.32 % 1.39 % 1.40 % 1.66 % 1.73 % (0.07) (0.41)
Cost of total funding (3) 1.55 % 1.56 % 1.57 % 1.87 % 1.98 % (0.01) (0.43)
Net interest margin (2) 3.93 % 3.96 % 4.06 % 3.84 % 3.75 % (0.03) 0.18
Average interest bearing cash / Average interest earning assets 2.33 % 2.59 % 3.12 % 3.41 % 2.97 % (0.26) (0.64)
Average loans and leases / Average interest earning assets 78.67 % 78.44 % 78.12 % 78.39 % 78.64 % 0.23 0.03
Average loans and leases / Average total deposits 90.19 % 88.58 % 87.34 % 88.39 % 90.07 % 1.61 0.12
Average non-interest bearing deposits / Average total deposits 32.90 % 32.26 % 32.45 % 31.41 % 31.39 % 0.64 1.51
Average total deposits / Average total funding (3) 91.88 % 93.58 % 94.52 % 93.47 % 91.92 % (1.70) (0.04)
Select Credit & Capital Ratios:
---
Non-performing loans and leases to total loans and leases 0.57 % 0.55 % 0.41 % 0.40 % 0.47 % 0.02 0.10
Non-performing assets to total assets 0.42 % 0.40 % 0.30 % 0.29 % 0.35 % 0.02 0.07
Allowance for credit losses to loans and leases 1.01 % 1.00 % 1.02 % 1.01 % 1.17 % 0.01 (0.16)
Total risk-based capital ratio (4) 13.4 % 13.5 % 13.6 % 13.4 % 13.0 % (0.10) 0.40
Common equity tier 1 risk-based capital ratio (4) 11.6 % 11.7 % 11.8 % 11.6 % 10.8 % (0.10) 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.
Columbia Banking System, Inc.
Financial Highlights
(Unaudited)
Six Months Ended % Change
Jun 30, 2026 Jun 30, 2025 Year over
Year
Per Common Share Data:
---
Dividends $0.74 $0.72 2.78 %
Performance Ratios:
---
Efficiency ratio (2) 56.59 % 61.54 % (4.95)
Non-interest expense to average assets (1) 2.35 % 2.42 % (0.07)
Return on average assets 1.22 % 0.94 % 0.28
PPNR ROAA (1) 1.79 % 1.50 % 0.29
Return on average common equity 10.49 % 9.18 % 1.31
Return on average tangible common equity (1) 14.58 % 12.80 % 1.78
Performance Ratios - Operating:
(1)
---
Operating efficiency ratio, as adjusted (1),(2) 53.29 % 53.40 % (0.11)
Operating non-interest expense to average assets (1) 2.25 % 2.11 % 0.14
Operating ROAA (1) 1.30 % 1.17 % 0.13
Operating PPNR ROAA (1) 1.90 % 1.78 % 0.12
Operating return on average common equity (1) 11.17 % 11.52 % (0.35)
Operating return on average tangible common equity (1) 15.53 % 16.07 % (0.54)
Average Balance Sheet Yields, Rates, & Ratios:
---
Yield on loans and leases 5.78 % 5.96 % (0.18)
Yield on earning assets (2) 5.42 % 5.56 % (0.14)
Cost of interest bearing deposits 2.00 % 2.52 % (0.52)
Cost of interest bearing liabilities 2.23 % 2.79 % (0.56)
Cost of total deposits 1.35 % 1.72 % (0.37)
Cost of total funding (3) 1.56 % 1.98 % (0.42)
Net interest margin (2) 3.94 % 3.67 % 0.27
Average interest bearing cash / Average interest earning assets 2.46 % 3.05 % (0.59)
Average loans and leases / Average interest earning assets 78.55 % 78.78 % (0.23)
Average loans and leases / Average total deposits 89.38 % 90.21 % (0.83)
Average non-interest bearing deposits / Average total deposits 32.58 % 31.57 % 1.01
Average total deposits / Average total funding (3) 92.73 % 91.90 % 0.83
(1) See GAAP to Non-GAAP Reconciliation.
(2) Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate.
(3) Total funding = Total deposits + Total borrowings.
Columbia Banking System, Inc.
Loan & Lease Portfolio Balances and Mix
(Unaudited)
Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 % Change
($ in millions) Amount Amount Amount Amount Amount Seq. Year
Quarter over
Year
Loans and leases:
---
Commercial real estate: (1)
Non-owner occupied term $7,584 $8,113 $8,206 $8,444 $6,190 (7) % 23 %
Owner occupied term 7,405 7,258 7,314 7,361 5,320 2 % 39 %
Multifamily 10,122 10,173 10,281 10,377 5,735 (1) % 76 %
Construction & development 1,529 1,670 1,707 2,071 2,070 (8) % (26) %
Residential development 369 373 362 367 286 (1) % 29 %
Commercial:
Term 7,004 6,887 6,713 6,590 5,353 2 % 31 %
Lines of credit & other 3,794 3,804 3,643 3,582 2,951 - % 29 %
Leases & equipment finance 1,617 1,619 1,599 1,614 1,641 - % (1) %
Residential:
Mortgage 5,402 5,483 5,624 5,722 5,830 (1) % (7) %
Home equity loans & lines 2,176 2,147 2,149 2,153 2,083 1 % 4 %
Consumer & other 164 170 178 181 178 (4) % (8) %
Total loans and leases, net of deferred fees $47,166 $47,697 $47,776 $48,462 $37,637 (1) % 25 %
and costs
Loans and leases mix:
---
Commercial real estate: (1)
Non-owner occupied term 16 % 17 % 17 % 18 % 16 %
Owner occupied term 16 % 15 % 15 % 15 % 14 %
Multifamily 22 % 21 % 22 % 21 % 15 %
Construction & development 3 % 4 % 4 % 4 % 6 %
Residential development 1 % 1 % 1 % 1 % 1 %
Commercial:
Term 15 % 15 % 14 % 14 % 14 %
Lines of credit & other 8 % 8 % 8 % 7 % 8 %
Leases & equipment finance 3 % 3 % 3 % 3 % 4 %
Residential:
Mortgage 11 % 11 % 12 % 12 % 15 %
Home equity loans & lines 5 % 5 % 4 % 4 % 6 %
Consumer & other - % - % - % 1 % 1 %
Total 100 % 100 % 100 % 100 % 100 %
(1) During the three months ended June 30, 2026, the Company aligned the presentation of certain loans with its established loan
classification methodology. This resulted in approximately $174 million of loans being reported within different commercial
real estate loan categories, primarily multifamily loans, with a corresponding decrease in non-owner occupied term loans.
Columbia Banking System, Inc.
Deposit Portfolio Balances and Mix
(Unaudited)
Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 % Change
($ in millions) Amount Amount Amount Amount Amount Seq. Quarter Year
over
Year
Deposits:
---
Demand, non-interest bearing $17,218 $17,635 $17,419 $17,810 $13,220 (2) % 30 %
Demand, interest bearing 11,093 10,860 10,763 11,675 8,335 2 % 33 %
Money market 16,415 16,843 17,013 16,816 11,694 (3) % 40 %
Savings 2,392 2,437 2,442 2,504 2,276 (2) % 5 %
Time 4,938 5,714 6,574 6,966 6,218 (14) % (21) %
Total $52,056 $53,489 $54,211 $55,771 $41,743 (3) % 25 %
Total core deposits (1) $49,488 $50,245 $50,174 $51,535 $37,294 (2) % 33 %
Deposit mix:
---
Demand, non-interest bearing 33 % 33 % 32 % 32 % 32 %
Demand, interest bearing 21 % 20 % 20 % 21 % 20 %
Money market 32 % 31 % 31 % 30 % 28 %
Savings 5 % 5 % 5 % 5 % 5 %
Time 9 % 11 % 12 % 12 % 15 %
Total 100 % 100 % 100 % 100 % 100 %
(1) Core deposits are defined as total deposits less time deposits greater than $250,000 and all brokered deposits.
Columbia Banking System, Inc.
Credit Quality - Non-performing Assets
(Unaudited)
Quarter Ended % Change
($ in millions) Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Seq. Year
2026 2026 2025 2025 2025 Quarter over
Year
Non-performing assets:
(1)
---
Loans and leases on non-accrual status:
Commercial real estate $96 $91 $50 $53 $31 5 % 210 %
Commercial 84 96 66 67 67 (13) % 25 %
Total loans and leases on non-accrual
status 180 187 116 120 98 (4) % 84 %
Loans and leases past due 90+ days and accruing: (2)
Commercial real estate 4 3 2 33 % nm
Commercial 4 2 8 5 5 100 % (20) %
Residential (2) 80 69 72 71 74 16 % 8 %
Total loans and leases past due 90+ days
and 88 74 82 76 79 19 % 11 %
accruing (2)
Total non-performing loans and leases (1), (2) 268 261 198 196 177 3 % 51 %
Other real estate owned 5 3 2 3 3 67 % 67 %
Total non-performing assets (1), (2) $273 $264 $200 $199 $180 3 % 52 %
Loans and leases past due 31-89 days $125 $168 $94 $85 $142 (26) % (12) %
Loans and leases past due 31-89 days to total loans and 0.27 % 0.35 % 0.20 % 0.18 % 0.38 % (0.08) (0.11)
leases
Non-performing loans and leases to total loans and 0.57 % 0.55 % 0.41 % 0.40 % 0.47 % 0.02 0.10
leases (1), (2)
Non-performing assets to total assets (1), (2) 0.42 % 0.40 % 0.30 % 0.29 % 0.35 % 0.02 0.07
Non-accrual loans and leases to total loan and leases (2) 0.38 % 0.39 % 0.24 % 0.25 % 0.26 % (0.01) 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 $78 million, $88 million, $79 million, $70 million,
and $68 million at June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively.
(2) Excludes certain mortgage loans that carry a government guarantee, which Columbia has the unilateral right to repurchase but has
not done so, totaling $4 million, $4 million, $3 million, $2 million, and $2 million at June 30, 2026, March 31, 2026, December
31, 2025, September 30, 2025, and June 30, 2025, respectively.
Columbia Banking System, Inc.
Credit Quality - Allowance for Credit Losses
(Unaudited)
Quarter Ended % Change
($ in millions) Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Seq. Year
2026 2026 2025 2025 2025 Quarter over
Year
Allowance for credit losses on loans and leases
(ACLLL)
Balance, beginning of period $459 $466 $473 $421 $421 (2) % 9 %
Initial ACL recorded for PCD loans acquired during 5 nm nm
the period
Provision for credit losses on loans and leases 29 28 23 69 29 4 % 0 %
Charge-offs
Commercial real estate (1) (8) (3) nm nm
Commercial (32) (39) (23) (22) (33) (18) % (3) %
Residential (1) nm nm
Consumer & other (2) (1) (1) (2) (1) 100 % 100 %
Total charge-offs (35) (40) (33) (27) (34) (13) % 3 %
Recoveries
Commercial 4 4 3 4 5 0 % (20) %
Consumer & other 1 1 1 0 % nm
Total recoveries 5 5 3 5 5 0 % 0 %
Net charge-offs
Commercial real estate (1) (8) (3) nm nm
Commercial (28) (35) (20) (18) (28) (20) % 0 %
Residential (1) nm nm
Consumer & other (1) (1) (1) (1) nm 0 %
Total net charge-offs (30) (35) (30) (22) (29) (14) % 3 %
Balance, end of period $458 $459 $466 $473 $421 0 % 9 %
Reserve for unfunded commitments
Balance, beginning of period $19 $19 $19 $18 $17 0 % 12 %
(Recapture) provision for credit losses on (2) 1 1 nm (300) %
unfunded commitments
Balance, end of period 17 19 19 19 18 (11) % (6) %
Total Allowance for credit losses (ACL) $475 $478 $485 $492 $439 (1) % 8 %
Net charge-offs to average loans and leases 0.25 % 0.30 % 0.25 % 0.22 % 0.31 % (0.05) (0.06)
(annualized)
Recoveries to gross charge-offs 14.29 % 12.50 % 9.09 % 18.52 % 15.19 % 1.79 (0.90)
ACLLL to loans and leases 0.97 % 0.96 % 0.98 % 0.98 % 1.12 % 0.01 (0.15)
ACL to loans and leases 1.01 % 1.00 % 1.02 % 1.01 % 1.17 % 0.01 (0.16)
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
Columbia Banking System, Inc.
Credit Quality - Allowance for Credit Losses
(Unaudited)
Six Months Ended % Change
($ in millions) Jun 30, 2026 Jun 30, 2025 Year over
Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period $466 $425 10 %
Provision for credit losses on loans and leases 57 55 4 %
Charge-offs
Commercial real estate (1)
nm
Commercial (71) (66) 8 %
Residential (1)
nm
Consumer & other (3) (2) 50 %
Total charge-offs (75) (69) 9 %
Recoveries
Commercial 8 9 (11) %
Consumer & other 2 1 100 %
Total recoveries 10 10 0 %
Net charge-offs
Commercial real estate (1)
nm
Commercial (63) (57) 11 %
Residential (1)
nm
Consumer & other (1) (1) 0 %
Total net charge-offs (65) (59) 10 %
Balance, end of period $458 $421 9 %
Reserve for unfunded commitments
Balance, beginning of period $19 $16 19 %
(Recapture) provision for credit losses on unfunded commitments (2) 2 (200) %
Balance, end of period 17 18 (6) %
Total Allowance for credit losses (ACL) $475 $439 8 %
Net charge-offs to average loans and leases (annualized) 0.28 % 0.31 % (0.03)
Recoveries to gross charge-offs 13.33 % 14.62 % (1.29)
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
Columbia Banking System, Inc.
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates
(Unaudited)
Quarter Ended
June 30, 2026 March 31, 2026 June 30, 2025
($ in millions) Average Interest Average Average Interest Average Average Interest Average
Balance Income Yields Balance Income Yields Balance Income Yields
or or Rates or or Rates or or Rates
Expense Expense Expense
INTEREST-EARNING ASSETS:
Loans held for sale $66
$ - 6.86 % $189 $3 5.17 % $67 $1 6.66 %
Loans and leases (1) 47,419 683 5.77 % 47,714 681 5.78 % 37,648 563 6.00 %
Taxable securities 10,173 102 3.97 % 10,097 106 4.22 % 7,937 83 4.22 %
Non-taxable securities (2) 1,219 15 4.63 % 1,253 14 4.51 % 798 8 3.95 %
Temporary investments and 1,402 13 3.71 % 1,578 14 3.65 % 1,421 16 4.46 %
interest-bearing cash
Total interest-earning assets (1), (2) 60,279 $813 5.40 % 60,831 $818 5.44 % 47,871 $671 5.62 %
Goodwill and other intangible 2,136 2,175 1,472
assets
Other assets 3,217 3,209 2,209
Total assets $65,632 $66,215 $51,552
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits $11,002 $45 1.65 % $10,780 $43 1.60 % $8,480 $48 2.28 %
Money market deposits 16,658 87 2.10 % 16,848 88 2.12 % 11,783 72 2.46 %
Savings deposits 2,413 1 0.14 % 2,443 1 0.12 % 2,287 1 0.13 %
Time deposits 5,205 40 3.03 % 6,414 52 3.32 % 6,126 59 3.85 %
Total interest-bearing deposits 35,278 173 1.96 % 36,485 184 2.04 % 28,676 180 2.52 %
Repurchase agreements and 163 1 1.65 % 187 1 1.86 % 186 1 2.06 %
federal funds purchased
Borrowings 4,050 39 3.90 % 3,071 30 3.96 % 3,058 35 4.53 %
Junior and other subordinated 431 8 7.07 % 435 7 7.03 % 428 8 8.05 %
debentures
Total interest-bearing liabilities 39,922 $221 2.21 % 40,178 $222 2.24 % 32,348 $224 2.78 %
Non-interest-bearing deposits 17,301 17,378 13,123
Other liabilities 814 873 794
Total liabilities 58,037 58,429 46,265
Common equity 7,594 7,786 5,287
Total liabilities and shareholders' $65,631 $66,215 $51,552
equity
NET INTEREST INCOME
(2) $592 $596 $447
NET INTEREST SPREAD
(2) 3.19 % 3.20 % 2.84 %
NET INTEREST INCOME TO 3.93 % 3.96 % 3.75 %
EARNING ASSETS OR NET
INTEREST MARGIN
(1), (2)
(1)
Non-accrual loans and leases are included in the average balance.
(2) Tax-exempt income was adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to
recorded income of approximately $3 million for the three months ended June 30, 2026, as compared to $2 million for the three
months ended March 31, 2026 and $1 million for the three months ended June 30, 2025.
Columbia Banking System, Inc.
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates
(Unaudited)
Six Months Ended
June 30, 2026 June 30, 2025
($ in millions) Average Interest Average Average Interest Average
Balance Income Yields Balance Income or Yields or
or Expense or Rates Expense Rates
INTEREST-EARNING ASSETS:
Loans held for sale $127 $3 5.62 % $63 $2 6.49 %
Loans and leases (1) 47,565 1,364 5.78 % 37,663 1,115 5.96 %
Taxable securities 10,135 208 4.09 % 7,815 155 3.97 %
Non-taxable securities (2) 1,236 29 4.57 % 808 16 3.91 %
Temporary investments and interest-bearing cash 1,490 27 3.67 % 1,457 32 4.46 %
Total interest-earning assets (1), (2) 60,553 $1,631 5.42 % 47,806 $1,320 5.56 %
Goodwill and other intangible assets 2,156 1,487
Other assets 3,213 2,210
Total assets $65,922 $51,503
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits $10,892 $88 1.63 % $8,426 $95 2.27 %
Money market deposits 16,753 175 2.11 % 11,694 141 2.43 %
Savings deposits 2,428 2 0.13 % 2,319 1 0.12 %
Time deposits 5,806 92 3.19 % 6,131 120 3.93 %
Total interest-bearing deposits 35,879 357 2.00 % 28,570 357 2.52 %
Repurchase agreements and federal funds purchased 175 2 1.76 % 201 2 1.94 %
Borrowings 3,563 69 3.93 % 3,048 71 4.67 %
Junior and other subordinated debentures 433 15 7.05 % 433 17 7.99 %
Total interest-bearing liabilities 40,050 $443 2.23 % 32,252 $447 2.79 %
Non-interest-bearing deposits 17,339 13,180
Other liabilities 844 819
Total liabilities 58,233 46,251
Common equity 7,689 5,252
Total liabilities and shareholders' equity $65,922 $51,503
NET INTEREST INCOME
(2) $1,188 $873
NET INTEREST SPREAD
(2) 3.19 % 2.77 %
NET INTEREST INCOME TO EARNING ASSETS OR NET 3.94 % 3.67 %
INTEREST MARGIN
(1), (2)
(1)
Non-accrual loans and leases are included in the average balance.
(2) Tax-exempt income was adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to
recorded income of approximately $5 million for the year ended June 30, 2026, as compared to $2 million for the same period in
2025.
Columbia Banking System, Inc.
Residential Mortgage Banking Activity
(Unaudited)
Quarter Ended %
($ in millions) Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Seq. Year over
2026 2026 2025 2025 2025 Quarter Year
Residential mortgage banking revenue:
---
Origination and sale $6 $5 $5 $5 $5 20 % 20 %
Servicing 5 6 6 5 6 (17) % (17) %
Change in fair value of MSR asset:
Changes due to collection/realization of (3) (3) (3) (3) (3) - % - %
expected cash flows over time
Changes due to valuation inputs or 1 6 (1) (2) (83) % nm
assumptions
MSR hedge (loss) gain (2) (2) 2 - % (200) %
Total $7 $12 $7 $7 $8 (42) % (13) %
Closed loan volume for sale $195 $171 $176 $166 $164 14 % 19 %
Gain on sale margin 3.08 % 2.92 % 2.84 % 3.01 % 2.77 % 0.16 0.31
Residential mortgage servicing rights:
---
Balance, beginning of period $105 $99 $101 $103 $106 6 % (1) %
Additions for new MSR capitalized 2 3 2 1 2 (33) % - %
Change in fair value of MSR asset:
Changes due to collection/realization of (3) (3) (3) (3) (3) - % - %
expected cash flows over time
Changes due to valuation inputs or 1 6 (1) (2) (83) % nm
assumptions
Balance, end of period $105 $105 $99 $101 $103 - % 2 %
Residential mortgage loans serviced for others $7,734 $7,812 $7,755 $7,797 $7,852 (1) % (2) %
MSR as % of serviced portfolio 1.36 % 1.34 % 1.28 % 1.30 % 1.31 % 0.02 0.05
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
Columbia Banking System, Inc.
Residential Mortgage Banking Activity
(Unaudited)
Six Months Ended % Change
($ in millions) Jun 30, 2026 Jun 30, 2025 Year over
Year
Residential mortgage banking revenue:
---
Origination and sale $11 $9 22 %
Servicing 11 12 (8) %
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time (6) (6) 0 %
Changes due to valuation inputs or assumptions 7 (3) nm
MSR hedge (loss) gain (4) 5 (180) %
Total $19 $17 12 %
Closed loan volume for sale $366 $300 22 %
Gain on sale margin 3.01 % 2.98 % 0.03
Residential mortgage servicing rights:
---
Balance, beginning of period $99 $108 (8) %
Additions for new MSR capitalized 5 4 25 %
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time (6) (6) 0 %
Changes due to valuation inputs or assumptions 7 (3) nm
Balance, end of period $105 $103 2 %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles in the United States of America ("GAAP"), this press release contains certain non-GAAP financial measures. The Company believes presenting certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends, and our financial position. We utilize these measures for internal planning and forecasting purposes, and operating pre-provision net revenue and operating return on tangible common equity are also used as part of our incentive compensation program for our executive officers. We, as well as securities analysts, investors, and other interested parties, also use these measures to compare peer company operating performance. We believe that our presentation and discussion, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting our business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitution for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation
Tangible Capital, as adjusted
(Unaudited)
Quarter Ended % Change
($ in millions, except per-share data) Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Seq. Year
Quarter over
Year
Total shareholders' equity a $7,552 $7,664 $7,840 $7,790 $5,342 (1) % 41 %
Less: Goodwill 1,482 1,482 1,482 1,481 1,029 - % 44 %
Less: Other intangible assets, net 633 671 712 754 430 (6) % 47 %
Tangible common shareholders' equity b $5,437 $5,511 $5,646 $5,555 $3,883 (1) % 40 %
Total assets c $65,380 $66,027 $66,832 $67,496 $51,901 (1) % 26 %
Less: Goodwill 1,482 1,482 1,482 1,481 1,029 - % 44 %
Less: Other intangible assets, net 633 671 712 754 430 (6) % 47 %
Tangible assets d $63,265 $63,874 $64,638 $65,261 $50,442 (1) % 25 %
Common shares outstanding at period end
(in e 282,817 289,530 295,422 299,147 210,213 (2) % 35 %
thousands)
Total shareholders' equity to total assets ratio a /c 11.55 % 11.61 % 11.73 % 11.54 % 10.29 % (0.06) 1.26
Tangible common equity to tangible assets ratio b /d 8.59 % 8.63 % 8.73 % 8.51 % 7.70 % (0.04) 0.89
Book value per common share a /e $26.70 $26.47 $26.54 $26.04 $25.41 1 % 5 %
Tangible book value per common share b /e $19.22 $19.03 $19.11 $18.57 $18.47 1 % 4 %
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Income Statements, as adjusted
(Unaudited)
Quarter Ended % Change
($ in millions) Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Seq. Year
Quarter over
Year
Non-Interest Income Adjustments
---
(Loss) gain on investment securities, net $(1)
$ - $2 $2
$ - nm nm
Gain (loss) on swap derivatives 1 (1) (1) nm nm
(Loss) gain on loans held for investment, at (1) (2) 4 (50) % nm
fair value
Change in fair value of MSR due to valuation 1 6 (1) (2) (83) % nm
inputs or assumptions
MSR hedge (loss) gain (2) (2) 2 - % (200) %
Total non-interest income adjustments a $(3) $2 $2 $5 $(1) (250) % 200 %
Non-Interest Expense Adjustments
---
Merger and restructuring expense $9 $24 $39 $87 $8 (63) % 13 %
Exit and disposal costs 1 1 (100) % nm
FDIC special assessment (5) (1) nm nm
Legal settlement and other non-operating 4 nm nm
expense
Total non-interest expense adjustments b $9 $25 $39 $86 $8 (64) % 13 %
Net interest income c $589 $594 $627 $505 $446 (1) % 32 %
Non-interest income (GAAP) d $88 $83 $90 $77 $65 6 % 35 %
Less: Non-interest income adjustments a 3 (2) (2) (5) 1 nm 200 %
Operating non-interest income (non-GAAP) e $91 $81 $88 $72 $66 12 % 38 %
Revenue (GAAP) f=c+d $677 $677 $717 $582 $511 - % 32 %
Operating revenue (non-GAAP) g=c+e $680 $675 $715 $577 $512 1 % 33 %
Non-interest expense (GAAP) h $375 $394 $412 $393 $278 (5) % 35 %
Less: Non-interest expense adjustments b (9) (25) (39) (86) (8) (64) % 13 %
Operating non-interest expense (non-GAAP) i $366 $369 $373 $307 $270 (1) % 36 %
Net income (GAAP) j $208 $192 $215 $96 $152 8 % 37 %
Provision for income taxes 67 63 67 23 51 6 % 31 %
Income before provision for income taxes 275 255 282 119 203 8 % 35 %
Provision for credit losses 27 28 23 70 30 (4) % (10) %
Pre-provision net revenue (PPNR) (non- k 302 283 305 189 233 7 % 30 %
GAAP)
Less: Non-interest income adjustments a 3 (2) (2) (5) 1 nm 200 %
Add: Non-interest expense adjustments b 9 25 39 86 8 (64) % 13 %
Operating PPNR (non-GAAP) l $314 $306 $342 $270 $242 3 % 30 %
Net income (GAAP) j $208 $192 $215 $96 $152 8 % 37 %
Acquisition-related provision expense 70 nm nm
Less: Non-interest income adjustments a 3 (2) (2) (5) 1 nm 200 %
Add: Non-interest expense adjustments b 9 25 39 86 8 (64) % 13 %
Tax effect of adjustments (3) (6) (9) (43) (1) (50) % 200 %
Operating net income (non-GAAP) m $217 $209 $243 $204 $160 4 % 36 %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Average Balances, Earnings Per Share, and Performance Metrics, as adjusted
(Unaudited)
Quarter Ended % Change
($ in millions, shares in thousands) Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Seq. Year
Quarter over
Year
Average assets n $65,632 $66,215 $67,114 $56,823 $51,552 (1) % 27 %
Less: Average goodwill and other intangible 2,136 2,175 2,217 1,719 1,472 (2) % 45 %
assets, net
Average tangible assets o $63,496 $64,040 $64,897 $55,104 $50,080 (1) % 27 %
Average common shareholders' equity p $7,594 $7,786 $7,814 $6,157 $5,287 (2) % 44 %
Less: Average goodwill and other intangible 2,136 2,175 2,217 1,719 1,472 (2) % 45 %
assets, net
Average tangible common equity q $5,458 $5,611 $5,597 $4,438 $3,815 (3) % 43 %
Weighted average basic shares outstanding r 285,558 290,933 295,376 237,838 209,125 (2) % 37 %
(in thousands)
Weighted average diluted shares s 286,472 292,160 296,760 238,925 209,975 (2) % 36 %
outstanding
(in thousands)
Select Per-Share & Performance Metrics
---
Earnings per share - basic j /r $0.73 $0.66 $0.72 $0.40 $0.73 11 % - %
Earnings per share - diluted j /s $0.73 $0.66 $0.72 $0.40 $0.73 11 % - %
Efficiency ratio (1) h /f 55.15 % 58.03 % 57.30 % 67.29 % 54.29 % (2.88) 0.86
Non-interest expense to average assets h /n 2.29 % 2.41 % 2.44 % 2.74 % 2.16 % (0.12) 0.13
Return on average assets j /n 1.27 % 1.18 % 1.27 % 0.67 % 1.19 % 0.09 0.08
Return on average tangible assets j /o 1.31 % 1.22 % 1.31 % 0.69 % 1.22 % 0.09 0.09
PPNR return on average assets k /n 1.85 % 1.73 % 1.80 % 1.32 % 1.81 % 0.12 0.04
Return on average common equity j /p 10.99 % 10.00 % 10.92 % 6.19 % 11.56 % 0.99 (0.57)
Return on average tangible common equity j /q 15.29 % 13.88 % 15.24 % 8.58 % 16.03 % 1.41 (0.74)
Operating Per-Share & Performance Metrics
---
Operating earnings per share - basic m /r $0.76 $0.72 $0.82 $0.86 $0.77 6 % (1) %
Operating earnings per share - diluted m /s $0.76 $0.72 $0.82 $0.85 $0.76 6 % - %
Operating efficiency ratio, as adjusted (1) u /y 52.92 % 53.68 % 51.39 % 52.32 % 51.79 % (0.76) 1.13
Operating non-interest expense to average assets i /n 2.24 % 2.26 % 2.20 % 2.14 % 2.10 % (0.02) 0.14
Operating return on average assets m /n 1.33 % 1.28 % 1.44 % 1.42 % 1.25 % 0.05 0.08
Operating return on average tangible assets m /o 1.37 % 1.32 % 1.49 % 1.47 % 1.28 % 0.05 0.09
Operating PPNR return on average assets l /n 1.92 % 1.87 % 2.02 % 1.89 % 1.88 % 0.05 0.04
Operating return on average common equity m /p 11.46 % 10.89 % 12.34 % 13.15 % 12.16 % 0.57 (0.70)
Operating return on average tangible common equity m /q 15.95 % 15.11 % 17.22 % 18.24 % 16.85 % 0.84 (0.90)
(1) Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Operating Efficiency Ratio, as adjusted
(Unaudited)
Quarter Ended % Change
($ in millions) Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Seq. Year
Quarter over
Year
Non-interest expense (GAAP) h $375 $394 $412 $393 $278 (5) % 35 %
Less: Non-interest expense adjustments b (9) (25) (39) (86) (8) (64) % 13 %
Operating non-interest expense (non-GAAP) i 366 369 373 307 270 (1) % 36 %
Less: B&O taxes t (3) (4) (3) (3) (3) (25) % - %
Operating non-interest expense, excluding u $363 $365 $370 $304 $267 (1) % 36 %
B&O taxes (non-GAAP)
Net interest income (tax equivalent)
(1) v $592 $596 $629 $507 $447 (1) % 32 %
Non-interest income (GAAP) d 88 83 90 77 65 6 % 35 %
Add: BOLI tax equivalent adjustment (1) w 3 3 3 2 2 - % 50 %
Total Revenue, excluding BOLI tax equivalent x 683 682 722 586 514 - % 33 %
adjustments (tax equivalent)
Less: Non-interest income adjustments a 3 (2) (2) (5) 1 nm 200 %
Total Adjusted Operating Revenue, y $686 $680 $720 $581 $515 1 % 33 %
excluding BOLI tax equivalent adjustments
(tax equivalent) (non-GAAP)
Efficiency ratio (1) h /f 55.15 % 58.03 % 57.30 % 67.29 % 54.29 % (2.88) 0.86
Operating efficiency ratio, as adjusted (non- u /y 52.92 % 53.68 % 51.39 % 52.32 % 51.79 % (0.76) 1.13
GAAP) (1)
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
(1) Tax-exempt income was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Income Statements, as adjusted
(Unaudited)
Six Months Ended % Change
($ in millions) Jun 30, 2026 Jun 30, 2025 Year over
Year
Non-Interest Income Adjustments
---
(Loss) gain on investment securities, net $(1) $2 (150) %
Loss on swap derivatives (2)
nm
(Loss) gain on loans held for investment, at fair value (3) 7 (143) %
Change in fair value of MSR due to valuation inputs or assumptions 7 (3)
nm
MSR hedge (loss) gain (4) 5 (180) %
Total non-interest income adjustments a $(1) $9 (111) %
Non-Interest Expense Adjustments
---
Merger and restructuring expense $33 $23 43 %
Exit and disposal costs 1 1 - %
Legal settlement and other non-operating expense 55 (100) %
Total non-interest expense adjustments b $34 $79 (57) %
Net interest income c $1,183 $871 36 %
Non-interest income (GAAP) d $171 $131 31 %
Less: Non-interest income adjustments a 1 (9)
nm
Operating non-interest income (non-GAAP) e $172 $122 41 %
Revenue (GAAP) f=c+d $1,354 $1,002 35 %
Operating revenue (non-GAAP) g=c+e $1,355 $993 36 %
Non-interest expense (GAAP) h $769 $618 24 %
Less: Non-interest expense adjustments b (34) (79) (57) %
Operating non-interest expense (non-GAAP) i $735 $539 36 %
Net income (GAAP) j $400 $239 67 %
Provision for income taxes 130 88 48 %
Income before provision for income taxes 530 327 62 %
Provision for credit losses 55 57 (4) %
Pre-provision net revenue (PPNR) (non-GAAP) k 585 384 52 %
Less: Non-interest income adjustments a 1 (9)
nm
Add: Non-interest expense adjustments b 34 79 (57) %
Operating PPNR (non-GAAP) l $620 $454 37 %
Net income (GAAP) j $400 $239 67 %
Less: Non-interest income adjustments a 1 (9)
nm
Add: Non-interest expense adjustments b 34 79 (57) %
Tax effect of adjustments (9) (9) - %
Operating net income (non-GAAP) m $426 $300 42 %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Average Balances, Earnings Per Share, and Performance Metrics, as adjusted
(Unaudited)
Six Months Ended % Change
($ in millions, shares in thousands) Jun 30, 2026 Jun 30, 2025 Year over
Year
Average assets n $65,922 $51,503 28 %
Less: Average goodwill and other intangible assets, net 2,156 1,487 45 %
Average tangible assets o $63,766 $50,016 27 %
Average common shareholders' equity p $7,689 $5,252 46 %
Less: Average goodwill and other intangible assets, net 2,156 1,487 45 %
Average tangible common equity q $5,533 $3,765 47 %
Weighted average basic shares outstanding r 288,130 208,964 38 %
Weighted average diluted shares outstanding s 289,212 209,965 38 %
Select Per-Share & Performance Metrics
---
Earnings per share - basic j /r $1.39 $1.14 22 %
Earnings per share - diluted j /s $1.38 $1.14 21 %
Efficiency ratio (1) h /f 56.59 % 61.54 % (4.95)
Non-interest expense to average assets h/n 2.35 % 2.42 % (0.07)
Return on average assets j /n 1.22 % 0.94 % 0.28
Return on average tangible assets j /o 1.26 % 0.96 % 0.30
PPNR return on average assets k/n 1.79 % 1.50 % 0.29
Return on average common equity j /p 10.49 % 9.18 % 1.31
Return on average tangible common equity j /q 14.58 % 12.80 % 1.78
Operating Per-Share & Performance Metrics
---
Operating earnings per share - basic m /r $1.48 $1.44 3 %
Operating earnings per share - diluted m /s $1.47 $1.43 3 %
Operating efficiency ratio, as adjusted (1) u /y 53.29 % 53.40 % (0.11)
Operating non-interest expense to average assets i/n 2.25 % 2.11 % 0.14
Operating return on average assets m /n 1.30 % 1.17 % 0.13
Operating return on average tangible assets m /o 1.35 % 1.21 % 0.14
Operating PPNR return on average assets l /n 1.90 % 1.78 % 0.12
Operating return on average common equity m /p 11.17 % 11.52 % (0.35)
Operating return on average tangible common equity m /q 15.53 % 16.07 % (0.54)
(1) Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Operating Efficiency Ratio, as adjusted
(Unaudited)
Six Months Ended % change
($ in millions) Jun 30, 2026 Jun 30, 2025 Year over
Year
Non-interest expense (GAAP) h $769 $618 24 %
Less: Non-interest expense adjustments b (34) (79) (57) %
Operating non-interest expense (non-GAAP) i 735 539 36 %
Less: B&O taxes t (7) (6) 17 %
Operating non-interest expense, excluding B&O taxes (non-GAAP) u $728 $533 37 %
Net interest income (tax equivalent)
(1) v $1,188 $873 36 %
Non-interest income (GAAP) d 171 131 31 %
Add: BOLI tax equivalent adjustment (1) w 6 3 100 %
Total Revenue, excluding BOLI tax equivalent adjustments (tax equivalent) x 1,365 1,007 36 %
Less: Non-interest income adjustments a 1 (9)
nm
Total Adjusted Operating Revenue, excluding BOLI tax equivalent adjustments y $1,366 $998 37 %
(tax equivalent) (non-GAAP)
Efficiency ratio (1) h /f 56.59 % 61.54 % (4.95)
Operating efficiency ratio, as adjusted (non-GAAP) (1) u /y 53.29 % 53.40 % (0.11)
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.
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SOURCE Columbia Banking System, Inc.
Jacquelynne "Jacque" Bohlen, SVP/Director of Investor Relations, 503-727-4100, jacquebohlen@columbiabank.com