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0000887343false00008873432024-07-252024-07-25

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934
 
 
Date of Report: July 25, 2024
(Date of earliest event reported)
 
Columbia Banking System, Inc.
(Exact Name of Registrant as Specified in Its Charter)
 
 
Washington 000-20288 91-1422237
(State or Other Jurisdiction of Incorporation or Organization)
(Commission File Number)
(I.R.S. Employer Identification Number)
 
1301 A Street
Tacoma, Washington 98402-2156
(address of Principal Executive Offices)(Zip Code)
 
(253) 305-1900

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

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

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

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

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

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

Emerging growth company [ ☐ ]

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






Item 2.02 Results of Operations and Financial Condition.
 
On July 25, 2024, Columbia Banking System, Inc. issued a press release announcing second quarter 2024 financial results. The release is attached hereto as Exhibit 99.1. The information included in the press release is considered to be "furnished" under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Columbia Banking System, Inc. will include final financial statements and additional analyses for the quarter ended June 30, 2024 as part of its quarterly report on Form 10-Q covering that period.
 
Item 7.01 Regulation FD Disclosure.
 
Columbia Banking System, Inc. is filing an investor slide presentation that it intends to review in conjunction with its earnings release conference call on July 25, 2024. The slides are included as Exhibit 99.2 to this report and shall not be deemed to be "filed" for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

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




SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
Columbia Banking System, Inc.
(Registrant)
 
Dated: July 25, 2024
By: /s/ Ronald L. Farnsworth 
      Ronald L. Farnsworth
      Executive Vice President/Chief Financial Officer



EX-99.1 2 colb-20240630ex991earnings.htm PRESS RELEASE ANNOUNCING SECOND QUARTER 2024 FINANCIAL RESULTS Document
EXHIBIT 99.1


columbiabankingsystemhoriza.gif

00
COLUMBIA BANKING SYSTEM, INC. REPORTS SECOND QUARTER 2024 RESULTS
$120 million $140 million $0.57 $0.67
Net income Operating net income 1 Earnings per diluted common share
Operating earnings per diluted common share 1
0
CEO Commentary
"Our second quarter results reflect continued progress on our targeted actions to improve our financial performance and drive shareholder value,” said Clint Stein, President and CEO. "The successful execution of identified changes following enterprise-wide evaluations resulted in a lower recurring expense run rate and increased stabilization in the cost of customer deposits during the second quarter. While we are encouraged by the early success of our near-term initiatives, we have not diminished our laser focus on regaining Columbia's placement as a top-performing bank across financial metrics. Longer-term initiatives will further enhance our growth and profitability as we strive toward long-term, consistent, repeatable performance."
–Clint Stein, President and CEO of Columbia Banking System, Inc.
2Q24 HIGHLIGHTS (COMPARED TO 1Q24)
Net Interest Income and NIM
•Net interest income expanded by $4 million on a linked-quarter basis due to higher income earned on loans and investment securities, including increased accretion income, partially offset by higher deposit costs.
•Net interest margin was 3.56%, up 4 basis points from the prior quarter as the increase in earning asset yields outpaced the increase in the cost of interest-bearing liabilities given targeted actions taken to stabilize the cost of customer deposits.
Non-Interest Income and Expense
•Non-interest income decreased by $6 million due to the quarterly fluctuation in cumulative fair value accounting and hedges. Excluding these items, non-interest income was stable.
•Non-interest expense decreased by $8 million due to lower compensation and CDI amortization, modest decreases in other categories, and the first quarter's larger FDIC special assessment. The effect was partially offset by restructuring expense.
Credit Quality
•Net charge-offs were 0.32% of average loans and leases (annualized), compared to 0.47% in the prior quarter.
•Provision expense of $32 million compares to $17 million in the prior quarter, which benefited from the recalibration of the commercial CECL model.
•Non-performing assets to total assets was 0.30%, compared to 0.28% as of March 31, 2024.
Capital
•Estimated total risk-based capital ratio of 12.1% and estimated common equity tier 1 risk-based capital ratio of 9.9%.
•Declared a quarterly cash dividend of $0.36 per common share on May 13, 2024, which was paid June 10, 2024.
Notable Items
•Substantially completed our announced near-term initiatives related to operational effectiveness.
•Opened our first retail location in Phoenix, Arizona and our first Financial Hub in Southern California, replacing an existing branch.
2Q24 KEY FINANCIAL DATA
PERFORMANCE METRICS
2Q24
1Q24
2Q23
Return on average assets 0.93% 0.96% 1.00%
Return on average common equity 9.85% 10.01% 10.84%
Return on average tangible common equity 1
14.55% 14.82% 16.63%
Operating return on average assets 1
1.08% 1.04% 1.27%
Operating return on average common equity 1
11.47% 10.89% 13.77%
Operating return on average tangible common equity 1
16.96% 16.12% 21.13%
Net interest margin 3.56% 3.52% 3.93%
Efficiency ratio 59.02% 60.57% 62.60%
Operating efficiency ratio, as adjusted 1
53.56% 56.97% 54.04%
INCOME STATEMENT
($ in 000s, excl. per share data)
2Q24
1Q24
2Q23
Net interest income $427,449 $423,362 $483,975
Provision for credit losses $31,820 $17,136 $16,014
Non-interest income $44,703 $50,357 $39,678
Non-interest expense $279,244 $287,516 $328,559
Pre-provision net revenue 1
$192,908 $186,203 $195,094
Operating pre-provision net revenue 1
$219,390 $200,683 $243,114
Earnings per common share - diluted $0.57 $0.59 $0.64
Operating earnings per common share - diluted 1
$0.67 $0.65 $0.81
Dividends paid per share $0.36 $0.36 $0.36
BALANCE SHEET
2Q24
1Q24
2Q23
Total assets $52.0  B $52.2  B $53.6  B
Loans and leases $37.7  B $37.6  B $37.0  B
Deposits $41.5  B $41.7  B $40.8  B
Book value per common share $23.76 $23.68 $23.16
Tangible book value per share 1
$16.26 $16.03 $15.02

Investor Contact
Jacquelynne "Jacque" Bohlen, SVP/Investor Relations Director, 503-727-4117, jacquebohlen@umpquabank.com
1 "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for additional information.




Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 2
Organizational Update
Columbia Banking System, Inc. ("Columbia," the "Company," "we," or "our") completed an enterprise-wide evaluation of our operations during the first quarter of 2024. The full-scale review resulted in consolidated positions, simplified reporting and organizational structures, and an improved profitability outlook. Through June 30, 2024, 91% of the identified cost savings have been realized, and we expect to carry out the remaining actions during the third quarter of 2024. Please refer to the Q2 2024 Earnings Presentation for additional details.

Columbia's primary subsidiary, Umpqua Bank ("Umpqua"), opened its first retail location in Phoenix, Arizona and its first Financial Hub in Southern California, replacing an existing branch. Umpqua has closed four branches on a net basis during 2024 as strategic consolidations offset new locations in targeted growth markets.

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

Net Interest Income
Net interest income was $427 million for the second quarter of 2024, up $4 million from the prior quarter. The increase reflects higher income earned on loans and investment securities, including accretion income, and lower borrowing costs. The favorable change was only partially offset by higher deposit costs as targeted pricing actions limited the increase in Columbia's cost of interest-bearing deposits.

Columbia's net interest margin was 3.56% for the second quarter of 2024, up 4 basis points from 3.52% for the first quarter of 2024. The expansion was driven by higher yields on loans and investment securities, including the benefit of accretion income, which offset a modest increase in the cost of interest-bearing deposits following a comprehensive review undertaken during the first quarter of 2024 related to how Columbia evaluates and approves deposit pricing. The cost of interest-bearing deposits increased 9 basis points on a linked-quarter basis, and was 2.97% for both the three months ended June 30, 2024 and as of June 30, 2024, which compares to 3.00% for the month of June. "Actions taken during the first quarter resulted in enhanced pricing visibility, which contributed to stability in interest-bearing core deposit rates during the second quarter," commented Chris Merrywell, President of Umpqua Bank. "Our teams have done an exceptional job leading with service, not price, as they meet with current and prospective customers."

Columbia's cost of interest-bearing liabilities increased 6 basis points on a linked-quarter basis, and was 3.31% for both the three months ended June 30, 2024 and as of June 30, 2024, which compares to 3.34% for the month of June. Please refer to the Q2 2024 Earnings Presentation for additional net interest margin change details and interest rate sensitivity information as well as to our non-GAAP disclosures in this press release for the impact of purchase accounting accretion and amortization on individual line items.

Non-interest Income
Non-interest income was $45 million for the second quarter of 2024, down $6 million from the prior quarter. The decline was driven by quarterly fluctuations in fair value adjustments and mortgage servicing rights ("MSR") hedging activity, which collectively resulted in a net fair value loss of $10 million in the second quarter compared to a net fair value loss of $4 million in the first quarter, as detailed in our non-GAAP disclosures. Excluding these items, non-interest income was stable between periods, with favorable trends in card activity, financial services and trust revenue, and mortgage banking.

Non-interest Expense
Non-interest expense was $279 million for the second quarter of 2024, down $8 million from the prior quarter level. Excluding merger and restructuring expense, exit and disposal costs, and accruals for the FDIC special assessment, non-interest expense was $263 million2, down $14 million from the prior quarter due to ongoing strategic actions taken to reduce our non-interest expense run rate, lower CDI amortization following the one-year anniversary of the merger, and a $7.7 million reversal of prior compensation-related accruals. Please refer to the Q2 2024 Earnings Presentation for additional expense details.
2 "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for additional information.



Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 3
Balance Sheet
Total consolidated assets were $52.0 billion as of June 30, 2024, down slightly from $52.2 billion as of March 31, 2024. Cash and cash equivalents were $2.1 billion as of June 30, 2024, also down slightly from $2.2 billion as of March 31, 2024. Including secured off-balance sheet lines of credit, total available liquidity was $19.1 billion as of June 30, 2024, representing 37% of total assets, 46% of total deposits, and 140% of uninsured deposits. Available-for-sale securities, which are held on balance sheet at fair value, were $8.5 billion as of June 30, 2024, a decrease of $114 million relative to March 31, 2024, due to paydowns and a decline in the fair value of the portfolio. Please refer to the Q2 2024 Earnings Presentation for additional details related to our securities portfolio and liquidity position.

Gross loans and leases were $37.7 billion as of June 30, 2024, an increase of $68 million relative to March 31, 2024. Columbia sold loans with a book balance of $95 million during the second quarter of 2024, including $80 million in residential mortgage loans held on the balance sheet at fair value. Excluding these actions, the loan portfolio increased by 2% on an annualized basis during the quarter due primarily to commercial line utilization and construction project activity. Please refer to the Q2 2024 Earnings Presentation for additional details related to our loan portfolio, which include underwriting characteristics, the composition of our commercial portfolios, and disclosure related to our office portfolio.

Total deposits were $41.5 billion as of June 30, 2024, a decrease of $183 million relative to March 31, 2024. Customer deposits drove the quarter's decrease due in part to anticipated customer tax payments, partially offset by targeted campaigns run by our branch network. "Our teams wrapped up a successful small business account campaign in April, generating nearly 6,000 accounts and $345 million in new deposits to the bank, 27% of which were non-interest-bearing balances," stated Mr. Merrywell. "We use a collaborative approach to find needs-based solutions for our customers—and these campaigns do not include promotional pricing." Please refer to the Q2 2024 Earnings Presentation for additional details related to deposit characteristics and flows.

Credit Quality
The allowance for credit losses was $439 million, or 1.16% of loans and leases, essentially unchanged from March 31, 2024. The provision for credit losses was $32 million for the second quarter of 2024, and it reflects credit migration trends and changes in the economic forecasts used in credit models.

Net charge-offs were 0.32% of average loans and leases (annualized) for the second quarter of 2024, compared to 0.47% for the first quarter of 2024. Net charge-offs in the FinPac portfolio were $25 million in the second quarter, largely unchanged from the first quarter. Net charge-offs excluding the FinPac portfolio were only $6 million in the second quarter. As of June 30, 2024, non-accrual loans were $93 million compared to $99 million as of March 31, 2024, due to lower balances in commercial portfolios. Non-performing assets were $156 million, or 0.30% of total assets, as of June 30, 2024, compared to $144 million, or 0.28% of total assets, as of March 31, 2024. The quarter's increase in loans and leases past due 90+ days and accruing, which accounted for the increase in nonperforming assets, was driven in part by the expiration of COVID-related designations within the residential mortgage portfolio. After accounting for government guarantees, non-performing assets declined by $9 million during the second quarter due primarily to lower balances in the FinPac portfolio. Please refer to the Q2 2024 Earnings Presentation for additional details related to the allowance for credit losses and other credit trends.

Capital
Columbia's book value per common share was $23.76 as of June 30, 2024, compared to $23.68 as of March 31, 2024. The linked-quarter change reflects organic net capital generation, partially offset by a change in accumulated other comprehensive (loss) income ("AOCI") to $(456) million at June 30, 2024, compared to $(426) million at 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 $442 million as of June 30, 2024, compared to $413 million as of March 31, 2024. Tangible book value per common share3 was $16.26 as of June 30, 2024, compared to $16.03 as of March 31, 2024.

Columbia's estimated total risk-based capital ratio was 12.1% and its estimated common equity tier 1 risk-based capital ratio was 9.9% as of June 30, 2024, compared to 12.0% and 9.8%, respectively, as of March 31, 2024. Columbia remains above current “well-capitalized” regulatory minimums. The regulatory capital ratios as of June 30, 2024 are estimates, pending completion and filing of Columbia's regulatory reports.

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



Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 4
Earnings Presentation and Conference Call Information
Columbia's Q2 2024 Earnings Presentation provides additional disclosure. A copy will be available on our investor relations page: www.columbiabankingsystem.com.

Columbia will host its second quarter 2024 earnings conference call on July 25, 2024, 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 2024 financial results. Participants may register for the call using the below link to receive dial-in details and their own unique PINs or join the audiocast. It is recommended you join 10 minutes prior to the start time.

Register for the call: https://register.vevent.com/register/BIdb1fd24ce3994192abaccb701c2ce451
Join the audiocast: https://edge.media-server.com/mmc/p/tog4rq49/
Access the replay through Columbia's investor relations page: www.columbiabankingsystem.com

About Columbia Banking System, Inc.
Columbia (Nasdaq: COLB) is headquartered in Tacoma, Washington and is the parent company of Umpqua Bank, an award-winning western U.S. regional bank based in Lake Oswego, Oregon. Umpqua Bank is the largest bank headquartered in the Northwest and one of the largest banks headquartered in the West with locations in Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah, and Washington. With over $50 billion of assets, Umpqua Bank combines the resources, sophistication and expertise of a national bank with a commitment to deliver superior, personalized service. The bank supports consumers and businesses through a full suite of services, including retail and commercial banking; Small Business Administration lending; institutional and corporate banking; and equipment leasing. Umpqua Bank customers also have access to comprehensive investment and wealth management expertise as well as healthcare and private banking through Columbia Wealth Advisors and Columbia Trust Company, a division of Umpqua Bank. Learn more at www.columbiabankingsystem.com.

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






Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 5



Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 6
Columbia Banking System, Inc.
Consolidated Statements of Income
(Unaudited)
  Quarter Ended % Change
($ in thousands, except per share data) Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Seq.
Quarter
Year over Year
Interest income:          
Loans and leases $ 583,874  $ 575,044  $ 577,741  $ 569,670  $ 552,679  % %
Interest and dividends on investments:  
Taxable 78,828  75,017  78,010  80,066  79,036  % —  %
Exempt from federal income tax 6,904  6,904  6,966  6,929  6,817  —  % %
Dividends 2,895  3,707  4,862  4,941  2,581  (22) % 12  %
Temporary investments and interest bearing deposits 23,035  23,553  24,055  34,407  34,616  (2) % (33) %
Total interest income 695,536  684,225  691,634  696,013  675,729  % %
Interest expense:          
Deposits 207,307  198,435  170,659  126,974  100,408  % 106  %
Securities sold under agreement to repurchase and federal funds purchased 1,515  1,266  1,226  1,220  1,071  20  % 41  %
Borrowings 49,418  51,275  56,066  77,080  81,004  (4) % (39) %
Junior and other subordinated debentures 9,847  9,887  10,060  9,864  9,271  —  % %
Total interest expense 268,087  260,863  238,011  215,138  191,754  % 40  %
Net interest income 427,449  423,362  453,623  480,875  483,975  % (12) %
Provision for credit losses 31,820  17,136  54,909  36,737  16,014  86  % 99  %
Non-interest income:          
Service charges on deposits 18,503  16,064  17,349  17,410  16,454  15  % 12  %
Card-based fees 14,681  13,183  14,593  15,674  13,435  11  % %
Financial services and trust revenue 5,396  4,464  3,011  4,651  4,512  21  % 20  %
Residential mortgage banking revenue (loss), net 5,848  4,634  4,212  7,103  (2,342) 26  % nm
(Loss) gain on sale of debt securities, net (1) 12  —  (108) % nm
Gain (loss) on equity securities, net 325  (1,565) 2,636  (2,055) (697) nm nm
(Loss) gain on loan and lease sales, net (1,516) 221  1,161  1,871  442  nm (443) %
BOLI income 4,705  4,639  4,331  4,440  4,063  % 16  %
Other (loss) income (3,238) 8,705  18,231  (5,117) 3,811  (137) % (185) %
Total non-interest income 44,703  50,357  65,533  43,981  39,678  (11) % 13  %
Non-interest expense:          
Salaries and employee benefits 145,066  154,538  157,572  159,041  163,398  (6) % (11) %
Occupancy and equipment, net 45,147  45,291  48,160  43,070  50,550  —  % (11) %
Intangible amortization 29,230  32,091  33,204  29,879  35,553  (9) % (18) %
FDIC assessments 9,664  14,460  42,510  11,200  11,579  (33) % (17) %
Merger and restructuring expense 14,641  4,478  7,174  18,938  29,649  227  % (51) %
Other expenses 35,496  36,658  48,556  42,019  37,830  (3) % (6) %
Total non-interest expense 279,244  287,516  337,176  304,147  328,559  (3) % (15) %
Income before provision for income taxes 161,088  169,067  127,071  183,972  179,080  (5) % (10) %
Provision for income taxes 40,944  44,987  33,540  48,127  45,703  (9) % (10) %
Net income $ 120,144  $ 124,080  $ 93,531  $ 135,845  $ 133,377  (3) % (10) %
Weighted average basic shares outstanding 208,498  208,260  208,083  208,070  207,977  —  % —  %
Weighted average diluted shares outstanding 209,011  208,956  208,739  208,645  208,545  —  % —  %
Earnings per common share – basic $ 0.58  $ 0.60  $ 0.45  $ 0.65  $ 0.64  (3) % (9) %
Earnings per common share – diluted $ 0.57  $ 0.59  $ 0.45  $ 0.65  $ 0.64  (3) % (11) %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."





Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 7

Columbia Banking System, Inc.
Consolidated Statements of Income
(Unaudited)
  Six Months Ended % Change
($ in thousands, except per share data) Jun 30, 2024 Jun 30, 2023 Year over Year
Interest income:      
Loans and leases $ 1,158,918  $ 966,204  20  %
Interest and dividends on investments:
Taxable 153,845  118,765  30  %
Exempt from federal income tax 13,808  10,214  35  %
Dividends 6,602  3,300  100  %
Temporary investments and interest bearing deposits 46,588  53,197  (12) %
Total interest income 1,379,761  1,151,680  20  %
Interest expense:  
Deposits 405,742  164,021  147  %
Securities sold under agreement to repurchase and federal funds purchased 2,781  1,477  88  %
Borrowings 100,693  109,768  (8) %
Junior and other subordinated debentures 19,734  17,741  11  %
Total interest expense 528,950  293,007  81  %
Net interest income 850,811  858,673  (1) %
Provision for credit losses 48,956  121,553  (60) %
Non-interest income:  
Service charges on deposits 34,567  30,766  12  %
Card-based fees 27,864  24,996  11  %
Financial services and trust revenue 9,860  5,809  70  %
Residential mortgage banking revenue, net 10,482  5,474  91  %
Gain on sale of debt securities, net 11  —  nm
(Loss) gain on equity securities, net (1,240) 1,719  (172) %
(Loss) gain on loan and lease sales, net (1,295) 1,382  (194) %
BOLI income 9,344  6,853  36  %
Other income 5,467  17,414  (69) %
Total non-interest income 95,060  94,413  %
Non-interest expense:  
Salaries and employee benefits 299,604  299,490  —  %
Occupancy and equipment, net 90,438  92,250  (2) %
Intangible amortization 61,321  48,213  27  %
FDIC assessments 24,124  17,692  36  %
Merger and restructuring expense 19,119  145,547  (87) %
Other expenses 72,154  68,185  %
Total non-interest expense 566,760  671,377  (16) %
Income before provision for income taxes 330,155  160,156  106  %
Provision for income taxes 85,931  40,817  111  %
Net income $ 244,224  $ 119,339  105  %
Weighted average basic shares outstanding 208,379  182,325  14  %
Weighted average diluted shares outstanding 208,999  182,860  14   %
Earnings per common share – basic $ 1.17  $ 0.65  80  %
Earnings per common share – diluted $ 1.17  $ 0.65  80  %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."





Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 8
Columbia Banking System, Inc.
Consolidated Balance Sheets
(Unaudited)
        % Change
($ in thousands, except per share data) Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Seq.
Quarter
Year over Year
Assets:          
Cash and due from banks $ 515,263  $ 440,215  $ 498,496  $ 492,474  $ 538,653  17  % (4) %
Interest-bearing cash and temporary investments 1,553,568  1,760,902  1,664,038  1,911,221  2,868,563  (12) % (46) %
Investment securities:          
Equity and other, at fair value 77,221  77,203  76,995  73,638  76,361  —  % %
Available for sale, at fair value 8,503,000  8,616,545  8,829,870  8,503,986  8,998,428  (1) % (6) %
Held to maturity, at amortized cost 2,203  2,247  2,300  2,344  2,388  (2) % (8) %
Loans held for sale 56,310  47,201  30,715  60,313  183,633  19  % (69) %
Loans and leases 37,709,987  37,642,413  37,441,951  37,170,598  37,049,299  —  % %
Allowance for credit losses on loans and leases (418,671) (414,344) (440,871) (416,560) (404,603) % %
Net loans and leases 37,291,316  37,228,069  37,001,080  36,754,038  36,644,696  —  % %
Restricted equity securities 116,274  116,274  179,274  168,524  258,524  —  % (55) %
Premises and equipment, net 337,842  336,869  338,970  337,855  368,698  —  % (8) %
Operating lease right-of-use assets 108,278  113,833  115,811  114,220  119,255  (5) % (9) %
Goodwill 1,029,234  1,029,234  1,029,234  1,029,234  1,029,234  —  % —  %
Other intangible assets, net 542,358  571,588  603,679  636,883  666,762  (5) % (19) %
Residential mortgage servicing rights, at fair value 110,039  110,444  109,243  117,640  172,929  —  % (36) %
Bank-owned life insurance 686,485  682,293  680,948  648,232  643,727  % %
Deferred tax asset, net 361,773  356,031  347,203  469,841  362,880  % —  %
Other assets 756,319  735,058  665,740  673,372  657,365  % 15  %
Total assets $ 52,047,483  $ 52,224,006  $ 52,173,596  $ 51,993,815  $ 53,592,096  —  % (3) %
Liabilities:          
 Deposits
Non-interest-bearing $ 13,481,616  $ 13,808,554  $ 14,256,452  $ 15,532,948  $ 16,019,408  (2) % (16) %
Interest-bearing 28,041,656  27,897,606  27,350,568  26,091,420  24,815,509  % 13  %
  Total deposits 41,523,272  41,706,160  41,607,020  41,624,368  40,834,917  —  % %
Securities sold under agreements to repurchase 197,860  213,573  252,119  258,383  294,914  (7) % (33) %
Borrowings 3,900,000  3,900,000  3,950,000  3,985,000  6,250,000  —  % (38) %
Junior subordinated debentures, at fair value 310,187  309,544  316,440  331,545  312,872  —  % (1) %
Junior and other subordinated debentures, at amortized cost 107,781  107,838  107,895  107,952  108,009  —  % —  %
Operating lease liabilities 123,082  129,240  130,576  129,845  132,099  (5) % (7) %
Other liabilities 908,629  900,406  814,512  924,560  831,097  % %
Total liabilities 47,070,811  47,266,761  47,178,562  47,361,653  48,763,908  —  % (3) %
Shareholders' equity:          
Common stock 5,807,041  5,802,322  5,802,747  5,798,167  5,792,792  —  % —  %
Accumulated deficit (374,687) (418,946) (467,571) (485,576) (545,842) (11) % (31) %
Accumulated other comprehensive loss (455,682) (426,131) (340,142) (680,429) (418,762) % %
Total shareholders' equity 4,976,672  4,957,245  4,995,034  4,632,162  4,828,188  —  % %
Total liabilities and shareholders' equity $ 52,047,483  $ 52,224,006  $ 52,173,596  $ 51,993,815  $ 53,592,096  —  % (3) %
Common shares outstanding at period end 209,459  209,370  208,585  208,575  208,514  —  % —  %




Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 9
Columbia Banking System, Inc.
Financial Highlights
(Unaudited)
  Quarter Ended % Change
  Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Seq. Quarter Year over Year
Per Common Share Data:
Dividends $ 0.36  $ 0.36  $ 0.36  $ 0.36  $ 0.36  —  % —  %
Book value $ 23.76  $ 23.68  $ 23.95  $ 22.21  $ 23.16  —  % %
Tangible book value (1)
$ 16.26  $ 16.03  $ 16.12  $ 14.22  $ 15.02  % %
Performance Ratios:
Efficiency ratio (2)
59.02  % 60.57  % 64.81  % 57.82  % 62.60  % (1.55) (3.58)
Non-interest expense to average assets (1)
2.16  % 2.22  % 2.58  % 2.28  % 2.46  % (0.06) (0.30)
Return on average assets ("ROAA") 0.93  % 0.96  % 0.72  % 1.02  % 1.00  % (0.03) (0.07)
Pre-provision net revenue ("PPNR") ROAA (1)
1.49  % 1.44  % 1.39  % 1.65  % 1.46  % 0.05  0.03 
Return on average common equity 9.85  % 10.01  % 7.90  % 11.07  % 10.84  % (0.16) (0.99)
Return on average tangible common equity (1)
14.55  % 14.82  % 12.19  % 16.93  % 16.63  % (0.27) (2.08)
Performance Ratios - Operating: (1)
Operating efficiency ratio, as adjusted (1), (2), (5), (6)
53.56  % 56.97  % 57.31  % 51.26  % 54.04  % (3.41) (0.48)
Operating non-interest expense to average assets (1)
2.03  % 2.14  % 2.25  % 2.10  % 2.22  % (0.11) (0.19)
Operating ROAA (1), (6)
1.08  % 1.04  % 0.89  % 1.23  % 1.27  % 0.04  (0.19)
Operating PPNR ROAA (1), (6)
1.70  % 1.55  % 1.62  % 1.94  % 1.82  % 0.15  (0.12)
Operating return on average common equity (1), (6)
11.47  % 10.89  % 9.81  % 13.40  % 13.77  % 0.58  (2.30)
Operating return on average tangible common equity (1), (6)
16.96  % 16.12  % 15.14  % 20.48  % 21.13  % 0.84  (4.17)
Average Balance Sheet Yields, Rates, & Ratios:          
Yield on loans and leases 6.20  % 6.13  % 6.13  % 6.08  % 5.95  % 0.07  0.25 
Yield on earning assets (2)
5.80  % 5.69  % 5.75  % 5.65  % 5.48  % 0.11  0.32 
Cost of interest bearing deposits 2.97  % 2.88  % 2.54  % 2.01  % 1.64  % 0.09  1.33 
Cost of interest bearing liabilities 3.31  % 3.25  % 3.02  % 2.72  % 2.45  % 0.06  0.86 
Cost of total deposits 2.01  % 1.92  % 1.63  % 1.23  % 0.99  % 0.09  1.02 
Cost of total funding (3)
2.34  % 2.27  % 2.05  % 1.81  % 1.61  % 0.07  0.73 
Net interest margin (2)
3.56  % 3.52  % 3.78  % 3.91  % 3.93  % 0.04  (0.37)
Average interest bearing cash / Average interest earning assets 3.51  % 3.56  % 3.64  % 5.17  % 5.47  % (0.05) (1.96)
Average loans and leases / Average interest earning assets 78.27  % 77.87  % 78.04  % 75.64  % 75.18  % 0.40  3.09 
Average loans and leases / Average total deposits 90.61  % 90.41  % 89.91  % 90.63  % 90.98  % 0.20  (0.37)
Average non-interest bearing deposits / Average total deposits 32.54  % 33.29  % 35.88  % 38.55  % 40.05  % (0.75) (7.51)
Average total deposits / Average total funding (3)
90.15  % 90.09  % 90.02  % 86.66  % 85.59  % 0.06  4.56 
Select Credit & Capital Ratios:
Non-performing loans and leases to total loans and leases
0.41  % 0.38  % 0.30  % 0.28  % 0.22  % 0.03  0.19 
Non-performing assets to total assets
0.30  % 0.28  % 0.22  % 0.20  % 0.15  % 0.02  0.15 
Allowance for credit losses to loans and leases 1.16  % 1.16  % 1.24  % 1.18  % 1.15  % —  0.01 
Total risk-based capital ratio (4)
12.1  % 12.0  % 11.9  % 11.6  % 11.3  % 0.10  0.80 
Common equity tier 1 risk-based capital ratio (4)
9.9  % 9.8  % 9.6  % 9.5  % 9.2  % 0.10  0.70 
(1) See GAAP to Non-GAAP Reconciliation.
(2) Tax-exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate.
(3) Total funding = Total deposits + Total borrowings.
(4) Estimated holding company ratios.
(5) The operating efficiency ratio was adjusted in the first quarter of 2024 to remove B&O taxes and for a tax-equivalent adjustment to BOLI income. The Company views the adjusted operating efficiency ratio as a better representation of its efficiency ratio when compared to other banks as it normalizes for the tax treatment of the adjusted items. The adjustment re-aligns Columbia's calculation of its operating efficiency ratio with its pre-merger calculation.
(6) Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes adding the FDIC special assessment to the non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company.





Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 10
Columbia Banking System, Inc.
Financial Highlights
(Unaudited)
Six Months Ended % Change
  Jun 30, 2024 Jun 30, 2023 Year over Year
Per Common Share Data:
Dividends $ 0.72  $ 0.71  1.41  %
Performance Ratios:
Efficiency ratio (2)
59.80  % 70.30  % (10.50)
Non-interest expense to average assets (1)
2.19  % 2.91  % (0.72)
Return on average assets 0.94  % 0.52  % 0.42 
PPNR ROAA (1)
1.47  % 1.22  % 0.25 
Return on average common equity 9.93  % 5.80  % 4.13 
Return on average tangible common equity (1)
14.69  % 8.09  % 6.60 
Performance Ratios - Operating: (1)
Operating efficiency ratio, as adjusted (1), (2), (4), (5)
55.26  % 53.51  % 1.75 
Operating non-interest expense to average assets (1)
2.08  % 2.26  % (0.18)
Operating ROAA (1), (5)
1.06  % 1.04  % 0.02 
Operating PPNR ROAA (1), (5)
1.62  % 1.90  % (0.28)
Operating return on average common equity (1), (5)
11.18  % 11.72  % (0.54)
Operating return on average tangible common equity (1), (5)
16.54  % 16.34  % 0.20 
Average Balance Sheet Yields, Rates, & Ratios:    
Yield on loans and leases 6.17  % 5.77  % 0.40 
Yield on earning assets (2)
5.75  % 5.35  % 0.40 
Cost of interest bearing deposits 2.93  % 1.50  % 1.43 
Cost of interest bearing liabilities 3.28  % 2.19  % 1.09 
Cost of total deposits 1.96  % 0.90  % 1.06 
Cost of total funding (3)
2.31  % 1.42  % 0.89 
Net interest margin (2)
3.54  % 3.99  % (0.45)
Average interest bearing cash / Average interest earning assets 3.54  % 4.99  % (1.45)
Average loans and leases / Average interest earning assets 78.07  % 77.64  % 0.43 
Average loans and leases / Average total deposits 90.51  % 91.87  % (1.36)
Average non-interest bearing deposits / Average total deposits 32.91  % 39.69  % (6.78)
Average total deposits / Average total funding (3)
90.12  % 88.03  % 2.09 

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





Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 11
Columbia Banking System, Inc.
Loan & Lease Portfolio Balances and Mix
(Unaudited)
Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 % Change
($ in thousands) Amount Amount Amount Amount Amount Seq. Quarter Year over Year
Loans and leases:          
Commercial real estate:      
Non-owner occupied term, net $ 6,407,351  $ 6,557,768  $ 6,482,940  $ 6,490,638  $ 6,434,673  (2) % —  %
Owner occupied term, net 5,230,511  5,231,676  5,195,605  5,235,227  5,254,401  —  % —  %
Multifamily, net 5,868,848  5,828,960  5,704,734  5,684,495  5,622,875  % %
Construction & development, net 1,946,693  1,728,652  1,747,302  1,669,918  1,528,924  13  % 27  %
Residential development, net 269,106  284,117  323,899  354,922  388,641  (5) % (31) %
Commercial:
Term, net 5,559,548  5,544,450  5,536,765  5,437,915  5,449,787  —  % %
Lines of credit & other, net 2,558,633  2,491,557  2,430,127  2,353,548  2,268,790  % 13  %
Leases & equipment finance, net 1,701,943  1,706,759  1,729,512  1,728,991  1,740,037  —  % (2) %
Residential:
Mortgage, net 5,992,163  6,128,884  6,157,166  6,121,838  6,272,898  (2) % (4) %
Home equity loans & lines, net 1,982,786  1,950,421  1,938,166  1,899,948  1,898,958  % %
   Consumer & other, net 192,405  189,169  195,735  193,158  189,315  % %
Total loans and leases, net of deferred fees and costs $ 37,709,987  $ 37,642,413  $ 37,441,951  $ 37,170,598  $ 37,049,299  —  % %
Loans and leases mix:
Commercial real estate:
   Non-owner occupied term, net 17  % 17  % 17  % 17  % 17  %
   Owner occupied term, net 14  % 14  % 14  % 14  % 14  %
   Multifamily, net 15  % 15  % 15  % 15  % 15  %
Construction & development, net % % % % %
Residential development, net % % % % %
Commercial:  
Term, net 15  % 15  % 15  % 15  % 15  %
Lines of credit & other, net % % % % %
Leases & equipment finance, net % % % % %
Residential:  
Mortgage, net 16  % 16  % 16  % 17  % 17  %
Home equity loans & lines, net % % % % %
   Consumer & other, net % % % % %
Total 100  % 100  % 100  % 100  % 100  %





Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 12
Columbia Banking System, Inc.
Deposit Portfolio Balances and Mix
(Unaudited)
Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 % Change
($ in thousands) Amount Amount Amount Amount Amount Seq. Quarter Year over Year
Deposits:          
Demand, non-interest bearing $ 13,481,616  $ 13,808,554  $ 14,256,452  $ 15,532,948  $ 16,019,408  (2) % (16) %
Demand, interest bearing 8,195,284  8,095,211  8,044,432  6,898,831  6,300,082  % 30  %
Money market 10,927,813  10,822,498  10,324,454  10,349,217  10,115,908  % %
Savings 2,508,598  2,640,060  2,754,113  3,018,706  3,171,714  (5) % (21) %
Time 6,409,961  6,339,837  6,227,569  5,824,666  5,227,805  % 23  %
Total $ 41,523,272  $ 41,706,160  $ 41,607,020  $ 41,624,368  $ 40,834,917  —  % %
Total core deposits (1)
$ 37,159,069  $ 37,436,569  $ 37,423,402  $ 37,597,830  $ 37,639,368  (1) % (1) %
Deposit mix:
Demand, non-interest bearing 33  % 34  % 34  % 37  % 39  %
Demand, interest bearing 20  % 19  % 19  % 17  % 15  %
Money market 26  % 26  % 25  % 25  % 25  %
Savings % % % % %
Time 15  % 15  % 15  % 14  % 13  %
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. Reports Second Quarter 2024 Results
July 25, 2024
Page 13
Columbia Banking System, Inc.
Credit Quality – Non-performing Assets
 (Unaudited)
  Quarter Ended % Change
($ in thousands) Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Seq. Quarter Year over Year
Non-performing assets: (1)
         
Loans and leases on non-accrual status:
Commercial real estate, net $ 37,584  $ 39,736  $ 28,689  $ 26,053  $ 10,994  (5) % 242  %
Commercial, net 54,986  58,960  45,682  44,341  39,316  (7) % 40  %
Total loans and leases on non-accrual status 92,570  98,696  74,371  70,394  50,310  (6) % 84  %
Loans and leases past due 90+ days and accruing: (2)
Commercial real estate, net —  253  870  71  184  (100) % (100) %
Commercial, net 5,778  10,733  8,232  8,606  7,720  (46) % (25) %
Residential, net (2)
54,525  31,916  29,102  25,180  21,370  71  % 155  %
Consumer & other, net 220  437  326  240  399  (50) % (45) %
Total loans and leases past due 90+ days and accruing (2)
60,523  43,339  38,530  34,097  29,673  40  % 104  %
Total non-performing loans and leases (1), (2)
153,093  142,035  112,901  104,491  79,983  % 91  %
Other real estate owned 2,839  1,762  1,036  1,170  278  61  % nm
Total non-performing assets (1), (2)
$ 155,932  $ 143,797  $ 113,937  $ 105,661  $ 80,261  % 94  %
Loans and leases past due 31-89 days $ 85,998  $ 109,673  $ 85,235  $ 82,918  $ 73,376  (22) % 17  %
Loans and leases past due 31-89 days to total loans and leases 0.23  % 0.29  % 0.23  % 0.22  % 0.20  % (0.06) 0.03 
Non-performing loans and leases to total loans and leases (1), (2)
0.41  % 0.38  % 0.30  % 0.28  % 0.22  % 0.03  0.19 
Non-performing assets to total assets (1), (2)
0.30  % 0.28  % 0.22  % 0.20  % 0.15  % 0.02  0.15 
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 $64.6 million, $43.0 million, $31.6 million, $26.9 million, and $26.6 million at June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023, respectively.

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




Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 14

Columbia Banking System, Inc.
Credit Quality – Allowance for Credit Losses
(Unaudited)
Quarter Ended % Change
($ in thousands) Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Seq. Quarter Year over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period $ 414,344  $ 440,871  $ 416,560  $ 404,603  $ 417,464  (6) % (1) %
Provision for credit losses on loans and leases 34,760  17,476  53,183  35,082  15,216  99  % 128  %
Charge-offs
Commercial real estate, net (585) (161) (629) —  (174) 263  % 236  %
Commercial, net (33,561) (47,232) (31,949) (26,629) (32,036) (29) % %
Residential, net (504) (490) (89) (206) (4) % nm
Consumer & other, net (1,551) (1,870) (1,841) (1,884) (1,264) (17) % 23  %
Total charge-offs (36,201) (49,753) (34,508) (28,719) (33,478) (27) % %
Recoveries
Commercial real estate, net 551  358  35  31  209  54  % 164  %
Commercial, net 4,198  4,732  4,414  4,901  4,511  (11) % (7) %
Residential, net 411  170  781  156  63  142  % nm
Consumer & other, net 608  490  406  506  618  24  % (2) %
Total recoveries 5,768  5,750  5,636  5,594  5,401  % %
Net (charge-offs) recoveries
Commercial real estate, net (34) 197  (594) 31  35  (117) % (197) %
Commercial, net (29,363) (42,500) (27,535) (21,728) (27,525) (31) % %
Residential, net (93) (320) 692  (50) 59  (71) % (258) %
Consumer & other, net (943) (1,380) (1,435) (1,378) (646) (32) % 46  %
Total net charge-offs (30,433) (44,003) (28,872) (23,125) (28,077) (31) % %
Balance, end of period $ 418,671  $ 414,344  $ 440,871  $ 416,560  $ 404,603  % %
Reserve for unfunded commitments
Balance, beginning of period $ 22,868  $ 23,208  $ 21,482  $ 19,827  $ 19,029  (1) % 20  %
(Recapture) provision for credit losses on unfunded commitments (2,940) (340) 1,726  1,655  798  nm (468) %
Balance, end of period 19,928  22,868  23,208  21,482  19,827  (13) % %
Total Allowance for credit losses (ACL) $ 438,599  $ 437,212  $ 464,079  $ 438,042  $ 424,430  % %
Net charge-offs to average loans and leases (annualized) 0.32  % 0.47  % 0.31  % 0.25  % 0.30  % (0.15) 0.02 
Recoveries to gross charge-offs 15.93  % 11.56  % 16.33  % 19.48  % 16.13  % 4.37  (0.20)
ACLLL to loans and leases 1.11  % 1.10  % 1.18  % 1.12  % 1.09  % 0.01  0.02 
ACL to loans and leases 1.16  % 1.16  % 1.24  % 1.18  % 1.15  % —  0.01 
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."





Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 15
Columbia Banking System, Inc.
Credit Quality – Allowance for Credit Losses
(Unaudited)
Six Months Ended % Change
($ in thousands) Jun 30, 2024 Jun 30, 2023 Year over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period $ 440,871  $ 301,135  46  %
Initial ACL recorded for PCD loans acquired during the period —  26,492  (100) %
Provision for credit losses on loans and leases (1)
52,236  121,714  (57) %
Charge-offs
Commercial real estate, net (746) (174) 329  %
Commercial, net (80,793) (51,284) 58  %
Residential, net (994) (252) 294  %
Consumer & other, net (3,421) (2,037) 68  %
Total charge-offs (85,954) (53,747) 60  %
Recoveries
Commercial real estate, net 909  267  240  %
Commercial, net 8,930  7,569  18  %
Residential, net 581  186  212  %
Consumer & other, net 1,098  987  11  %
Total recoveries 11,518  9,009  28  %
Net (charge-offs) recoveries
Commercial real estate, net 163  93  75  %
Commercial, net (71,863) (43,715) 64  %
Residential, net (413) (66) nm
Consumer & other, net (2,323) (1,050) 121  %
Total net charge-offs (74,436) (44,738) 66  %
Balance, end of period $ 418,671  $ 404,603  %
Reserve for unfunded commitments
Balance, beginning of period $ 23,208  $ 14,221  63  %
Initial ACL recorded for unfunded commitments acquired during the period —  5,767  (100) %
Recapture for credit losses on unfunded commitments (3,280) (161) nm
Balance, end of period 19,928  19,827  %
Total Allowance for credit losses (ACL) $ 438,599  $ 424,430  %
Net charge-offs to average loans and leases (annualized) 0.40  % 0.27  % 0.13 
Recoveries to gross charge-offs 13.40  % 16.76  % (3.36)
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

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



Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 16
Columbia Banking System, Inc.
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates
(Unaudited)
Quarter Ended
June 30, 2024 March 31, 2024 June 30, 2023
($ in thousands) Average Balance Interest Income or Expense Average Yields or Rates 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 $ 101,516  $ 1,628  6.42  % $ 30,550  $ 525  6.88  % $ 46,794  $ 682  5.83  %
Loans and leases (1)
37,663,396  582,246  6.20  % 37,597,101  574,519  6.13  % 37,169,315  551,997  5.95  %
Taxable securities 7,839,202  81,723  4.17  % 8,081,003  78,724  3.90  % 8,656,147  81,617  3.77  %
Non-taxable securities (2)
825,030  7,889  3.82  % 851,342  7,886  3.71  % 865,278  8,010  3.70  %
Temporary investments and interest-bearing cash 1,688,602  23,035  5.49  % 1,720,791  23,553  5.51  % 2,704,984  34,616  5.13  %
Total interest-earning assets (1), (2)
48,117,746  $ 696,521  5.80  % 48,280,787  $ 685,207  5.69  % 49,442,518  $ 676,922  5.48  %
Goodwill and other intangible assets 1,588,239  1,619,134  1,718,705 
Other assets 2,275,570  2,184,052  2,379,351 
Total assets $ 51,981,555  $ 52,083,973  $ 53,540,574 
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits $ 8,147,516  $ 53,890  2.66  % $ 8,035,339  $ 51,378  2.57  % $ 6,131,117  $ 17,277  1.15  %
Money market deposits 10,849,259  76,466  2.83  % 10,612,073  72,497  2.75  % 10,362,495  41,703  1.60  %
Savings deposits 2,555,458  929  0.15  % 2,688,360  715  0.11  % 3,297,138  877  0.11  %
Time deposits 6,488,923  76,022  4.71  % 6,406,807  73,845  4.64  % 4,703,967  40,551  3.46  %
Total interest-bearing deposits 28,041,156  207,307  2.97  % 27,742,579  198,435  2.88  % 24,494,717  100,408  1.64  %
Repurchase agreements and federal funds purchased 224,973  1,515  2.71  % 231,667  1,266  2.20  % 284,347  1,071  1.51  %
Borrowings 3,900,000  49,418  5.10  % 3,920,879  51,275  5.26  % 6,187,363  81,004  5.25  %
Junior and other subordinated debentures 417,329  9,847  9.49  % 423,528  9,887  9.39  % 405,989  9,271  9.16  %
Total interest-bearing liabilities 32,583,458  $ 268,087  3.31  % 32,318,653  $ 260,863  3.25  % 31,372,416  $ 191,754  2.45  %
Non-interest-bearing deposits 13,526,483  13,841,582  16,361,541 
Other liabilities 963,375  937,863  871,378 
Total liabilities 47,073,316  47,098,098  48,605,335 
Common equity 4,908,239  4,985,875  4,935,239 
Total liabilities and shareholders' equity $ 51,981,555  $ 52,083,973  $ 53,540,574 
NET INTEREST INCOME (2)
$ 428,434  $ 424,344  $ 485,168 
NET INTEREST SPREAD (2)
2.49  % 2.44  % 3.03  %
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)
3.56  % 3.52  % 3.93  %
(1)Non-accrual loans and leases are included in the average balance.   
(2)Tax-exempt income has been adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $985,000 for the three months ended June 30, 2024, as compared to $982,000 for the three months ended March 31, 2024 and $1.2 million for the three months ended June 30, 2023. 




Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 17
Columbia Banking System, Inc.
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates
(Unaudited)
Six Months Ended
  June 30, 2024 June 30, 2023
($ in thousands) 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 $ 66,033  $ 2,153  6.52  % $ 50,381  $ 1,481  5.88  %
Loans and leases (1)
37,630,248  1,156,765  6.17  % 33,603,781  964,723  5.77  %
Taxable securities 7,960,102  160,447  4.03  % 6,818,764  122,065  3.58  %
Non-taxable securities (2)
838,186  15,775  3.76  % 652,332  12,078  3.70  %
Temporary investments and interest-bearing cash 1,704,697  46,588  5.50  % 2,158,071  53,197  4.97  %
Total interest-earning assets (1), (2)
48,199,266  $ 1,381,728  5.75  % 43,283,329  $ 1,153,544  5.35  %
Goodwill and other intangible assets 1,603,686  1,173,900 
Other assets 2,229,811  2,065,036 
Total assets $ 52,032,763  $ 46,522,265 
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits $ 8,091,427  $ 105,268  2.62  % $ 5,448,974  $ 27,092  1.00  %
Money market deposits 10,730,666  148,963  2.79  % 9,657,738  73,941  1.54  %
Savings deposits 2,621,909  1,644  0.13  % 2,993,450  1,433  0.10  %
Time deposits 6,447,865  149,867  4.67  % 3,958,688  61,555  3.14  %
Total interest-bearing deposits 27,891,867  405,742  2.93  % 22,058,850  164,021  1.50  %
Repurchase agreements and federal funds purchased 228,320  2,781  2.45  % 282,699  1,477  1.05  %
Borrowings 3,910,440  100,693  5.18  % 4,280,632  109,768  5.17  %
Junior and other subordinated debentures 420,428  19,734  9.44  % 411,944  17,741  8.68  %
Total interest-bearing liabilities 32,451,055  $ 528,950  3.28  % 27,034,125  $ 293,007  2.19  %
Non-interest-bearing deposits 13,684,032  14,518,864 
Other liabilities 950,619  822,396 
Total liabilities 47,085,706  42,375,385 
Common equity 4,947,057  4,146,880 
Total liabilities and shareholders' equity $ 52,032,763  $ 46,522,265 
NET INTEREST INCOME (2)
$ 852,778  $ 860,537 
NET INTEREST SPREAD (2)
2.47  % 3.16  %
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)
    3.54  %     3.99  %
(1)Non-accrual loans and leases are included in the average balance.   
(2)Tax-exempt income has been adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $2.0 million for the six months ended June 30, 2024, as compared to $1.9 million for the same period in 2023. 




Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 18

Columbia Banking System, Inc.
Residential Mortgage Banking Activity
(Unaudited)
  Quarter Ended % Change
($ in thousands) Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Seq. Quarter Year over Year
Residential mortgage banking revenue:      
Origination and sale $ 3,452  $ 2,920  $ 2,686  $ 2,442  $ 3,166  18  % %
Servicing 5,952  6,021  5,966  8,887  9,167  (1) % (35) %
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time (3,183) (3,153) (3,215) (4,801) (4,797) % (34) %
Changes due to valuation inputs or assumptions 1,238  3,117  (6,251) 5,308  (2,242) (60) % nm
MSR hedge (loss) gain (1,611) (4,271) 5,026  (4,733) (7,636) (62) % (79) %
Total $ 5,848  $ 4,634  $ 4,212  $ 7,103  $ (2,342) 26  % nm
Closed loan volume for-sale $ 140,875  $ 86,903  $ 87,033  $ 103,333  $ 119,476  62  % 18  %
Gain on sale margin 2.45  % 3.36  % 3.09  % 2.36  % 2.65  % -0.91 -0.20
Residential mortgage servicing rights:          
Balance, beginning of period $ 110,444  $ 109,243  $ 117,640  $ 172,929  $ 178,800  % (38) %
Additions for new MSR capitalized 1,540  1,237  920  1,658  1,168  24  % 32  %
Sale of MSR assets —  —  149  (57,454) —  nm nm
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time (3,183) (3,153) (3,215) (4,801) (4,797) % (34) %
Changes due to valuation inputs or assumptions 1,238  3,117  (6,251) 5,308  (2,242) (60) % nm
Balance, end of period $ 110,039  $ 110,444  $ 109,243  $ 117,640  $ 172,929  —  % (36) %
Residential mortgage loans serviced for others $ 8,120,046  $ 8,081,039  $ 8,175,664  $ 8,240,950  $ 12,726,615  —  % (36) %
MSR as % of serviced portfolio 1.36  % 1.37  % 1.34  % 1.43  % 1.36  % (0.01) 0.00 
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."







Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 19

Columbia Banking System, Inc.
Residential Mortgage Banking Activity
(Unaudited)
  Six Months Ended % Change
($ in thousands) Jun 30, 2024 Jun 30, 2023 Year over Year
Residential mortgage banking revenue:    
Origination and sale $ 6,372  $ 6,753  (6) %
Servicing 11,973  18,564  (36) %
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time (6,336) (9,678) (35) %
Changes due to valuation inputs or assumptions 4,355  (5,179) nm
MSR hedge loss (5,882) (4,986) 18  %
Total $ 10,482  $ 5,474  91  %
Closed loan volume for-sale $ 227,778  $ 251,202  (9) %
Gain on sale margin 2.80  % 2.69  % 0.11 
Residential mortgage servicing rights:      
Balance, beginning of period $ 109,243  $ 185,017  (41) %
Additions for new MSR capitalized 2,777  2,769  %
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time (6,336) (9,678) (35) %
Changes due to valuation inputs or assumptions 4,355  (5,179) nm
Balance, end of period $ 110,039  $ 172,929  (36) %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."






Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 20
Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles in the United States of America ("GAAP"), this press release contains certain non-GAAP financial measures. The Company believes presenting certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends, and our financial position. We utilize these measures for internal planning and forecasting purposes, and operating pre-provision net revenue and operating return on tangible common equity are also used as part of our incentive compensation program for our executive officers. We, as well as securities analysts, investors, and other interested parties, also use these measures to compare peer company operating performance. We believe that our presentation and discussion, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting our business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitution for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

 
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation
(Unaudited)
Quarter Ended % Change
($ in thousands, except per share data) Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Seq. Quarter Year over Year
Total shareholders' equity a $ 4,976,672  $ 4,957,245  $ 4,995,034  $ 4,632,162  $ 4,828,188  —  % %
Less: Goodwill 1,029,234  1,029,234  1,029,234  1,029,234  1,029,234  —  % —  %
Less: Other intangible assets, net 542,358  571,588  603,679  636,883  666,762  (5) % (19) %
Tangible common shareholders' equity b $ 3,405,080  $ 3,356,423  $ 3,362,121  $ 2,966,045  $ 3,132,192  % %
Total assets c $ 52,047,483  $ 52,224,006  $ 52,173,596  $ 51,993,815  $ 53,592,096  —  % (3) %
Less: Goodwill 1,029,234  1,029,234  1,029,234  1,029,234  1,029,234  —  % —  %
Less: Other intangible assets, net 542,358  571,588  603,679  636,883  666,762  (5) % (19) %
Tangible assets d $ 50,475,891  $ 50,623,184  $ 50,540,683  $ 50,327,698  $ 51,896,100  —  % (3) %
Common shares outstanding at period end e 209,459  209,370  208,585  208,575  208,514  —  % —  %
Total shareholders' equity to total assets ratio a / c 9.56  % 9.49  % 9.57  % 8.91  % 9.01  % 0.07  0.55 
Tangible common equity ratio b / d 6.75  % 6.63  % 6.65  % 5.89  % 6.04  % 0.12  0.71 
Book value per common share a / e $ 23.76  $ 23.68  $ 23.95  $ 22.21  $ 23.16  —  % %
Tangible book value per common share b / e $ 16.26  $ 16.03  $ 16.12  $ 14.22  $ 15.02  % %




Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 21
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Quarter Ended % Change
($ in thousands) Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Seq. Quarter Year over Year
Non-Interest Income Adjustments
(Loss) gain on sale of debt securities, net $ (1) $ 12  $ $ $ —  (108) % nm
Gain (loss) on equity securities, net 325  (1,565) 2,636  (2,055) (697) nm nm
Gain (loss) on swap derivatives 424  1,197  (8,042) 5,700  1,288  (65) % (67) %
Change in fair value of certain loans held for investment (10,114) (2,372) 19,354  (19,247) (6,965) 326  % 45  %
Change in fair value of MSR due to valuation inputs or assumptions 1,238  3,117  (6,251) 5,308  (2,242) (60) % nm
MSR hedge (loss) gain (1,611) (4,271) 5,026  (4,733) (7,636) (62) % (79) %
Total non-interest income adjustments a $ (9,739) $ (3,882) $ 12,732  $ (15,023) $ (16,252) 151  % (40) %
Non-Interest Expense Adjustments
Merger and restructuring expense $ 14,641  $ 4,478  $ 7,174  $ 18,938  $ 29,649  227  % (51) %
Exit and disposal costs 1,218  1,272  2,791  4,017  2,119  (4) % (43) %
    FDIC special assessment (2)
884  4,848  32,923  —  —  (82) % nm
Total non-interest expense adjustments b $ 16,743  $ 10,598  $ 42,888  $ 22,955  $ 31,768  58  % (47) %
Net interest income c $ 427,449  $ 423,362  $ 453,623  $ 480,875  $ 483,975  % (12) %
Non-interest income (GAAP) d $ 44,703  $ 50,357  $ 65,533  $ 43,981  $ 39,678  (11) % 13  %
Less: Non-interest income adjustments a 9,739  3,882  (12,732) 15,023  16,252  151  % (40) %
Operating non-interest income (non-GAAP) e $ 54,442  $ 54,239  $ 52,801  $ 59,004  $ 55,930  —  % (3) %
Revenue (GAAP) f=c+d $ 472,152  $ 473,719  $ 519,156  $ 524,856  $ 523,653  —  % (10) %
Operating revenue (non-GAAP) g=c+e $ 481,891  $ 477,601  $ 506,424  $ 539,879  $ 539,905  % (11) %
Non-interest expense (GAAP) h $ 279,244  $ 287,516  $ 337,176  $ 304,147  $ 328,559  (3) % (15) %
Less: Non-interest expense adjustments b (16,743) (10,598) (42,888) (22,955) (31,768) 58  % (47) %
Operating non-interest expense (non-GAAP) i $ 262,501  $ 276,918  $ 294,288  $ 281,192  $ 296,791  (5) % (12) %
Net income (GAAP) j $ 120,144  $ 124,080  $ 93,531  $ 135,845  $ 133,377  (3) % (10) %
Provision for income taxes 40,944  44,987  33,540  48,127  45,703  (9) % (10) %
Income before provision for income taxes 161,088  169,067  127,071  183,972  179,080  (5) % (10) %
Provision for credit losses 31,820  17,136  54,909  36,737  16,014  86  % 99  %
Pre-provision net revenue (PPNR) (non-GAAP) k 192,908  186,203  181,980  220,709  195,094  % (1) %
Less: Non-interest income adjustments a 9,739  3,882  (12,732) 15,023  16,252  151  % (40) %
Add: Non-interest expense adjustments b 16,743  10,598  42,888  22,955  31,768  58  % (47) %
Operating PPNR (non-GAAP) l $ 219,390  $ 200,683  $ 212,136  $ 258,687  $ 243,114  % (10) %
Net income (GAAP) j $ 120,144  $ 124,080  $ 93,531  $ 135,845  $ 133,377  (3) % (10) %
Less: Non-interest income adjustments a 9,739  3,882  (12,732) 15,023  16,252  151  % (40) %
Add: Non-interest expense adjustments b 16,743  10,598  42,888  22,955  31,768  58  % (47) %
Tax effect of adjustments (6,621) (3,620) (7,539) (9,482) (11,981) 83  % (45) %
Operating net income (non-GAAP) m $ 140,005  $ 134,940  $ 116,148  $ 164,341  $ 169,416  % (17) %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
 



Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 22
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Quarter Ended % Change
($ in thousands, except per share data) Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Seq. Quarter Year over Year
Average assets n $ 51,981,555  $ 52,083,973  $ 51,832,356  $ 53,011,361  $ 53,540,574  —  % (3) %
Less: Average goodwill and other intangible assets, net 1,588,239  1,619,134  1,652,282  1,684,093  1,718,705  (2) % (8) %
Average tangible assets o $ 50,393,316  $ 50,464,839  $ 50,180,074  $ 51,327,268  $ 51,821,869  —  % (3) %
Average common shareholders' equity p $ 4,908,239  $ 4,985,875  $ 4,695,736  $ 4,866,975  $ 4,935,239  (2) % (1) %
Less: Average goodwill and other intangible assets, net 1,588,239  1,619,134  1,652,282  1,684,093  1,718,705  (2) % (8) %
Average tangible common equity q $ 3,320,000  $ 3,366,741  $ 3,043,454  $ 3,182,882  $ 3,216,534  (1) % %
Weighted average basic shares outstanding r 208,498  208,260  208,083  208,070  207,977  —  % —  %
Weighted average diluted shares outstanding s 209,011  208,956  208,739  208,645  208,545  —  % —  %
Select Per-Share & Performance Metrics
Earnings-per-share - basic j / r $ 0.58  $ 0.60  $ 0.45  $ 0.65  $ 0.64  (3) % (9) %
Earnings-per-share - diluted j / s $ 0.57  $ 0.59  $ 0.45  $ 0.65  $ 0.64  (3) % (11) %
Efficiency ratio (1)
h / f 59.02  % 60.57  % 64.81  % 57.82  % 62.60  % (1.55) (3.58)
Non-interest expense to average assets h / n 2.16  % 2.22  % 2.58  % 2.28  % 2.46  % (0.06) (0.30)
Return on average assets j / n 0.93  % 0.96  % 0.72  % 1.02  % 1.00  % (0.03) (0.07)
Return on average tangible assets j / o 0.96  % 0.99  % 0.74  % 1.05  % 1.03  % (0.03) (0.07)
PPNR return on average assets k / n 1.49  % 1.44  % 1.39  % 1.65  % 1.46  % 0.05  0.03 
Return on average common equity j / p 9.85  % 10.01  % 7.90  % 11.07  % 10.84  % (0.16) (0.99)
Return on average tangible common equity j / q 14.55  % 14.82  % 12.19  % 16.93  % 16.63  % (0.27) (2.08)
Operating Per-Share & Performance Metrics
Operating earnings-per-share - basic (2)
m / r $ 0.67  $ 0.65  $ 0.56  $ 0.79  $ 0.81  % (17) %
Operating earnings-per-share - diluted (2)
m / s $ 0.67  $ 0.65  $ 0.56  $ 0.79  $ 0.81  % (17) %
Operating efficiency ratio, as adjusted (1), (2), (3)
u / y 53.56  % 56.97  % 57.31  % 51.26  % 54.04  % (3.41) (0.48)
Operating non-interest expense to average assets i / n 2.03  % 2.14  % 2.25  % 2.10  % 2.22  % (0.11) (0.19)
Operating return on average assets (2)
m / n 1.08  % 1.04  % 0.89  % 1.23  % 1.27  % 0.04  (0.19)
Operating return on average tangible assets (2)
m / o 1.12  % 1.08  % 0.92  % 1.27  % 1.31  % 0.04  (0.19)
Operating PPNR return on average assets (2)
l / n 1.70  % 1.55  % 1.62  % 1.94  % 1.82  % 0.15  (0.12)
Operating return on average common equity (2)
m / p 11.47  % 10.89  % 9.81  % 13.40  % 13.77  % 0.58  (2.30)
Operating return on average tangible common equity (2)
m / q 16.96  % 16.12  % 15.14  % 20.48  % 21.13  % 0.84  (4.17)
(1) Tax-exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.
(2) Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes the FDIC special assessment in non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company.
(3) The operating efficiency ratio was adjusted in the first quarter of 2024 to remove B&O taxes and for a tax-equivalent adjustment to BOLI income. The Company views the adjusted operating efficiency ratio as a better representation of its efficiency ratio when compared to other banks as it normalizes for the tax treatment of the adjusted items. The adjustment re-aligns Columbia's calculation of its operating efficiency ratio with its pre-merger calculation.




Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 23
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Operating Efficiency Ratio, as adjusted
(Unaudited)
Quarter Ended % Change
($ in thousands) Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Seq. Quarter Year over Year
Non-interest expense (GAAP) h $ 279,244  $ 287,516  $ 337,176  $ 304,147  $ 328,559  (3) % (15) %
Less: Non-interest expense adjustments b (16,743) (10,598) (42,888) (22,955) (31,768) 58  % (47) %
Operating non-interest expense (non-GAAP) i 262,501  276,918  294,288  281,192  296,791  (5) % (12) %
Less: B&O taxes t (3,183) (3,223) (2,727) (3,275) (3,647) (1) % (13) %
Operating non-interest expense, excluding B&O taxes (non-GAAP) u $ 259,318  $ 273,695  $ 291,561  $ 277,917  $ 293,144  (5) % (12) %
Net interest income (tax equivalent) (1)
v $ 428,434  $ 424,344  $ 454,730  $ 482,031  $ 485,168  % (12) %
Non-interest income (GAAP) d 44,703  50,357  65,533  43,981  39,678  (11) % 13  %
Add: BOLI tax equivalent adjustment (1)
w 1,291  1,809  1,182  1,178  1,360  (29) % (5) %
Total Revenue, excluding BOLI tax equivalent adjustments (tax equivalent) x 474,428  476,510  521,445  527,190  526,206  —  % (10) %
Less: Non-interest income adjustments a 9,739  3,882  (12,732) 15,023  16,252  151  % (40) %
Total Adjusted Operating Revenue, excluding BOLI tax equivalent adjustments (tax equivalent) (non-GAAP) y $ 484,167  $ 480,392  $ 508,713  $ 542,213  $ 542,458  % (11) %
Efficiency ratio (1)
h / f 59.02  % 60.57  % 64.81  % 57.82  % 62.60  % (1.55) (3.58)
Operating efficiency ratio, as adjusted (non-GAAP) (1), (2), (3)
u / y 53.56  % 56.97  % 57.31  % 51.26  % 54.04  % (3.41) (0.48)

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



Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 24

Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Six Months Ended % Change
($ in thousands) Jun 30, 2024 Jun 30, 2023 Year over Year
Non-Interest Income Adjustments
Gain on sale of debt securities, net $ 11  $ —  nm
(Loss) gain on equity securities, net (1,240) 1,719  (172) %
Gain (loss) on swap derivatives 1,621  (2,255) nm
Change in fair value of certain loans held for investment (12,486) 2,523  nm
Change in fair value of MSR due to valuation inputs or assumptions 4,355  (5,179) nm
   MSR hedge loss (5,882) (4,986) 18  %
Total non-interest income adjustments a $ (13,621) $ (8,178) 67  %
Non-Interest Expense Adjustments
Merger and restructuring expense $ 19,119  $ 145,547  (87) %
Exit and disposal costs 2,490  3,410  (27) %
    FDIC special assessment (2)
$ 5,732  $ —  nm
Total non-interest expense adjustments b $ 27,341  $ 148,957  (82) %
Net interest income c $ 850,811  $ 858,673  (1) %
Non-interest income (GAAP) d $ 95,060  $ 94,413  %
Less: Non-interest income adjustments a 13,621  8,178  67  %
Operating non-interest income (non-GAAP) e $ 108,681  $ 102,591  %
Revenue (GAAP) f=c+d $ 945,871  $ 953,086  (1) %
Operating revenue (non-GAAP) g=c+e $ 959,492  $ 961,264  —  %
Non-interest expense (GAAP) h $ 566,760  $ 671,377  (16) %
Less: Non-interest expense adjustments b (27,341) (148,957) (82) %
Operating non-interest expense (non-GAAP) i $ 539,419  $ 522,420  %
Net income (GAAP) j $ 244,224  $ 119,339  105  %
Provision for income taxes 85,931  40,817  111  %
Income before provision for income taxes 330,155  160,156  106  %
Provision for credit losses 48,956  121,553  (60) %
Pre-provision net revenue (PPNR) (non-GAAP) k 379,111  281,709  35  %
Less: Non-interest income adjustments a 13,621  8,178  67  %
Add: Non-interest expense adjustments b 27,341  148,957  (82) %
Operating PPNR (non-GAAP) l $ 420,073  $ 438,844  (4) %
Net income (GAAP) j $ 244,224  $ 119,339  105  %
Less: Non-interest income adjustments a 13,621  8,178  67  %
Add: Non-interest expense adjustments b 27,341  148,957  (82) %
Tax effect of adjustments (10,241) (35,546) (71) %
Operating net income (non-GAAP) m $ 274,945  $ 240,928  14  %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."



Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 25
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Six Months Ended % Change
($ in thousands) Jun 30, 2024 Jun 30, 2023 Year over Year
Average assets n $ 52,032,763  $ 46,522,265  12  %
Less: Average goodwill and other intangible assets, net 1,603,686  1,173,900  37  %
Average tangible assets o $ 50,429,077  $ 45,348,365  11  %
Average common shareholders' equity p $ 4,947,057  $ 4,146,880  19  %
Less: Average goodwill and other intangible assets, net 1,603,686  1,173,900  37  %
Average tangible common equity q $ 3,343,371  $ 2,972,980  12  %
Weighted average basic shares outstanding r 208,379  182,325  14  %
Weighted average diluted shares outstanding s 208,999  182,860  14  %
Select Per-Share & Performance Metrics
Earnings-per-share - basic j / r $ 1.17  $ 0.65  80  %
Earnings-per-share - diluted j / s $ 1.17  $ 0.65  80  %
Efficiency ratio (1)
h / f 59.80  % 70.30  % (10.50)
Non-interest expense to average assets h/n 2.19  % 2.91  % (0.72)
Return on average assets j / n 0.94  % 0.52  % 0.42 
Return on average tangible assets j / o 0.97  % 0.53  % 0.44 
PPNR return on average assets k/n 1.47  % 1.22  % 0.25 
Return on average common equity j / p 9.93  % 5.80  % 4.13 
Return on average tangible common equity j / q 14.69  % 8.09  % 6.60 
Operating Per-Share & Performance Metrics
Operating earnings-per-share - basic (2)
m / r $ 1.32  $ 1.32  —  %
Operating earnings-per-share - diluted (2)
m / s $ 1.32  $ 1.32  —  %
Operating efficiency ratio, as adjusted (1), (2), (3)
u / y 55.26  % 53.51  % 1.75 
Operating non-interest expense to average assets i/n 2.08  % 2.26  % (0.18)
Operating return on average assets (2)
m / n 1.06  % 1.04  % 0.02 
Operating return on average tangible assets (2)
m / o 1.10  % 1.07  % 0.03 
Operating PPNR return on average assets (2)
l / n 1.62  % 1.90  % (0.28)
Operating return on average common equity (2)
m / p 11.18  % 11.72  % (0.54)
Operating return on average tangible common equity (2)
m / q 16.54  % 16.34  % 0.20 
    
(1) Tax-exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.
(2) Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes the FDIC special assessment in non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company.
(3) The operating efficiency ratio was adjusted in the first quarter of 2024 to remove B&O taxes and for a tax-equivalent adjustment to BOLI income. The Company views the adjusted operating efficiency ratio as a better representation of its efficiency ratio when compared to other banks as it normalizes for the tax treatment of the adjusted items. The adjustment re-aligns Columbia's calculation of its operating efficiency ratio with its pre-merger calculation.







Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 26
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Operating Efficiency Ratio, as adjusted
(Unaudited)
Six Months Ended % change
($ in thousands) Jun 30, 2024 Jun 30, 2023 Year over Year
Non-interest expense (GAAP) h $ 566,760  $ 671,377  (16) %
Less: Non-interest expense adjustments b (27,341) (148,957) (82) %
Operating non-interest expense (non-GAAP) i 539,419  522,420  %
Less: B&O taxes t (6,406) (5,776) 11  %
Operating non-interest expense, excluding B&O taxes (non-GAAP) u $ 533,013  $ 516,644  %
Net interest income (tax equivalent) (1)
v $ 852,778  $ 860,537  (1) %
Non-interest income (GAAP) d 95,060  94,413  %
Add: BOLI tax equivalent adjustment (1)
w 3,100  2,317  34  %
Total Revenue, excluding BOLI tax equivalent adjustments (tax equivalent) x 950,938  957,267  (1) %
Less: Non-interest income adjustments a 13,621  8,178  67  %
Total Adjusted Operating Revenue, excluding BOLI tax equivalent adjustments (tax equivalent) (non-GAAP) y $ 964,559  $ 965,445  —  %
Efficiency ratio (1)
h /f 59.80  % 70.30  % (10.50)
Operating efficiency ratio, as adjusted (non-GAAP) (1), (2), (3)
u / y 55.26  % 53.51  % 1.75 

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



Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 27
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Quarter Ended % Change
($ in thousands) Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Seq. Quarter Year over Year
Loans and leases interest income a $ 582,246  $ 574,519  $ 577,092  $ 567,929  $ 551,997  % %
Less: Acquired loan accretion - rate related (2), (3)
b 24,942  23,482  26,914  28,963  30,548  % (18) %
Less: Acquired loan accretion - credit related (3)
c 4,835  5,119  5,430  6,370  7,100  (6) % (32) %
Adjusted loans and leases interest income d=a-b-c $ 552,469  $ 545,918  $ 544,748  $ 532,596  $ 514,349  % %
Taxable securities interest income e $ 81,723  $ 78,724  $ 82,872  $ 85,007  $ 81,617  % —  %
Less: Acquired taxable securities accretion - rate related f 40,120  31,527  34,290  39,219  34,801  27  % 15  %
Adjusted Taxable securities interest income g=e-f $ 41,603  $ 47,197  $ 48,582  $ 45,788  $ 46,816  (12) % (11) %
Non-taxable securities interest income (1)
h $ 7,889  $ 7,886  $ 8,073  $ 8,085  $ 8,010  —  % (2) %
Less: Acquired non-taxable securities accretion - rate related i 2,256  2,270  2,309  2,288  2,274  (1) % (1) %
Adjusted Taxable securities interest income (1)
j=h-i $ 5,633  $ 5,616  $ 5,764  $ 5,797  $ 5,736  —  % (2) %
Interest income (1)
k $ 696,521  $ 685,207  $ 692,741  $ 697,169  $ 676,922  % %
Less: Acquired loan and securities accretion - rate related (3)
l=b+f+i 67,318  57,279  63,513  70,470  67,623  18  % —  %
Less: Acquired loan accretion - credit related (3)
c 4,835  5,119  5,430  6,370  7,100  (6) % (32) %
Adjusted interest income (1)
m=k-l-c $ 624,368  $ 622,809  $ 623,798  $ 620,329  $ 602,199  —  % %
Interest-bearing deposits interest expense n $ 207,307  $ 198,435  $ 170,659  $ 126,974  $ 100,408  % 106  %
Less: Acquired deposit accretion o —  —  (187) (373) (280) nm nm
Adjusted interest-bearing deposits interest expense p=n-o $ 207,307  $ 198,435  $ 170,846  $ 127,347  $ 100,688  % 106  %
Interest expense q $ 268,087  $ 260,863  $ 238,011  $ 215,138  $ 191,754  % 40  %
Less: Acquired interest-bearing liabilities accretion (2)
r (57) (57) (244) (430) (337) —  % (83) %
Adjusted interest expense s=q-r $ 268,144  $ 260,920  $ 238,255  $ 215,568  $ 192,091  % 40  %
Net Interest Income (1)
t $ 428,434  $ 424,344  $ 454,730  $ 482,031  $ 485,168  % (12) %
Less: Acquired loan, securities, and interest-bearing liabilities accretion - rate related (3)
u=l-r 67,375  57,336  63,757  70,900  67,960  18  % (1) %
Less: Acquired loan accretion - credit related (3)
c 4,835  5,119  5,430  6,370  7,100  (6) % (32) %
Adjusted net interest income (1)
v=t-u-c $ 356,224  $ 361,889  $ 385,543  $ 404,761  $ 410,108  (2) % (13) %
Average loans and leases aa 37,663,396  37,597,101  37,333,310  37,050,518  37,169,315  —  % %
Average taxable securities ab 7,839,202  8,081,003  7,903,053  8,356,165  8,656,147  (3) % (9) %
Average non-taxable securities ac 825,030  851,342  809,551  844,417  865,278  (3) % (5) %
Average interest-earning assets ad 48,117,746  48,280,787  47,838,229  48,981,105  49,442,518  —  % (3) %
Average interest-bearing deposits ae 28,041,156  27,742,579  26,622,343  25,121,745  24,494,717  % 14  %
Average interest-bearing liabilities af 32,583,458  32,318,653  31,226,600  31,413,978  31,372,416  % %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

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



Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 28
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Quarter Ended % Change
($ in thousands) Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Seq. Quarter Year over Year
Average yield on loans and leases a / aa 6.20  % 6.13  % 6.13  % 6.08  % 5.95  % 0.07  0.25 
Less: Acquired loan accretion - rate related (2),(3)
b / aa 0.27  % 0.25  % 0.29  % 0.31  % 0.33  % 0.02  (0.06)
Less: Acquired loan accretion - credit related (3)
c / aa 0.05  % 0.05  % 0.06  % 0.07  % 0.08  % —  (0.03)
Adjusted average yield on loans and leases d / aa 5.88  % 5.83  % 5.78  % 5.70  % 5.54  % 0.05  0.34 
Average yield on taxable securities e / ab 4.17  % 3.90  % 4.19  % 4.07  % 3.77  % 0.27  0.40 
Less: Acquired taxable securities accretion - rate related f / ab 2.06  % 1.57  % 1.72  % 1.86  % 1.61  % 0.49  0.45 
Adjusted average yield on taxable securities g / ab 2.11  % 2.33  % 2.47  % 2.21  % 2.16  % (0.22) (0.05)
Average yield on non-taxable securities (1)
h / ac 3.82  % 3.71  % 3.99  % 3.83  % 3.70  % 0.11  0.12 
Less: Acquired non-taxable securities accretion - rate related i / ac 1.10  % 1.07  % 1.13  % 1.07  % 1.05  % 0.03  0.05 
Adjusted yield on non-taxable securities (1)
j / ac 2.72  % 2.64  % 2.86  % 2.76  % 2.65  % 0.08  0.07 
Average yield on interest-earning assets (1)
k / ad 5.80  % 5.69  % 5.75  % 5.65  % 5.48  % 0.11  0.32 
Less: Acquired loan and securities accretion - rate related (3)
l / ad 0.56  % 0.48  % 0.53  % 0.57  % 0.55  % 0.08  0.01 
Less: Acquired loan accretion - credit related (3)
c / ad 0.04  % 0.04  % 0.05  % 0.05  % 0.06  % —  (0.02)
Adjusted average yield on interest-earning assets (1)
m / ad 5.20  % 5.17  % 5.17  % 5.03  % 4.87  % 0.03  0.33 
Average rate on interest-bearing deposits n / ae 2.97  % 2.88  % 2.54  % 2.01  % 1.64  % 0.09  1.33 
Less: Acquired deposit accretion o / ae —  % —  % —  % (0.01) % —  % —  — 
Adjusted average rate on interest-bearing deposits p / ae 2.97  % 2.88  % 2.54  % 2.02  % 1.64  % 0.09  1.33 
Average rate on interest-bearing liabilities q / af 3.31  % 3.25  % 3.02  % 2.72  % 2.45  % 0.06  0.86 
Less: Acquired interest-bearing liabilities accretion (2)
r / af —  % —  % —  % (0.01) % —  % —  — 
Adjusted average rate on interest-bearing liabilities s / af 3.31  % 3.25  % 3.02  % 2.73  % 2.45  % 0.06  0.86 
Net interest margin (1)
t / ad 3.56  % 3.52  % 3.78  % 3.91  % 3.93  % 0.04  (0.37)
Less: Acquired loan, securities, and interest-bearing liabilities accretion - rate related (3)
u / ad 0.56  % 0.48  % 0.53  % 0.58  % 0.55  % 0.08  0.01 
Less: Acquired loan accretion - credit related (3)
c / ad 0.04  % 0.04  % 0.05  % 0.05  % 0.06  % —  (0.02)
Adjusted net interest margin (1)
v / ad 2.96  % 3.00  % 3.20  % 3.28  % 3.32  % (0.04) (0.36)

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



Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 29
 
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Six Months Ended
($ in thousands) Jun 30, 2024 Jun 30, 2023 Year over Year
Loans and leases interest income a $ 1,156,765  $ 964,723  20  %
Less: Acquired loan accretion - rate related (2), (3)
b 48,424  42,380  14  %
Less: Acquired loan accretion - credit related (3)
c 9,954  10,906  (9) %
Adjusted loans and leases interest income d=a-b-c $ 1,098,387  $ 911,437  21  %
Taxable securities interest income e $ 160,447  $ 122,065  31  %
Less: Acquired taxable securities accretion - rate related f 71,647  50,157  43  %
Adjusted Taxable securities interest income g=e-f $ 88,800  $ 71,908  23  %
Non-taxable securities interest income (1)
h $ 15,775  $ 12,078  31  %
Less: Acquired non-taxable securities accretion - rate related i 4,526  3,175  43  %
Adjusted Taxable securities interest income (1)
j=h-i $ 11,249  $ 8,903  26  %
Interest income (1)
k $ 1,381,728  $ 1,153,544  20  %
Less: Acquired loan and securities accretion - rate related (3)
l=b+f+i 124,597  95,712  30  %
Less: Acquired loan accretion - credit related (3)
c 9,954  10,906  (9) %
Adjusted interest income (1)
m=k-l-c $ 1,247,177  $ 1,046,926  19  %
Interest-bearing deposits interest expense n $ 405,742  $ 164,021  147  %
Less: Acquired deposit accretion o —  (373) nm
Adjusted interest-bearing deposits interest expense p=n-o $ 405,742  $ 164,394  147  %
Interest expense q $ 528,950  $ 293,007  81  %
Less: Acquired interest-bearing liabilities accretion (2)
r (114) (487) (77) %
Adjusted interest expense s=q-r $ 529,064  $ 293,494  80  %
Net Interest Income (1)
t $ 852,778  $ 860,537  (1) %
Less: Acquired loan, securities, and interest-bearing liabilities accretion - rate related (3)
u=l-r 124,711  96,199  30  %
Less: Acquired loan accretion - credit related (3)
c 9,954  10,906  (9) %
Adjusted net interest income (1)
v=t-u-c $ 718,113  $ 753,432  (5) %
Average loans and leases aa 37,630,248  33,603,781  12  %
Average taxable securities ab 7,960,102  6,818,764  17  %
Average non-taxable securities ac 838,186  652,332  28  %
Average interest-earning assets ad 48,199,266  43,283,329  11  %
Average interest-bearing deposits ae 27,891,867  22,058,850  26  %
Average interest-bearing liabilities af 32,451,055  27,034,125  20  %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

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



Columbia Banking System, Inc. Reports Second Quarter 2024 Results
July 25, 2024
Page 30
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Six Months Ended
($ in thousands) Jun 30, 2024 Jun 30, 2023 Year over Year
Average yield on loans and leases a / aa 6.17  % 5.77  % 0.40 
Less: Acquired loan accretion - rate related (2),(3)
b / aa 0.26  % 0.25  % 0.01 
Less: Acquired loan accretion - credit related (3)
c / aa 0.05  % 0.07  % (0.02)
Adjusted average yield on loans and leases d / aa 5.86  % 5.45  % 0.41 
Average yield on taxable securities e / ab 4.03  % 3.58  % 0.45 
Less: Acquired taxable securities accretion - rate related f / ab 1.81  % 1.48  % 0.33 
Adjusted average yield on taxable securities g / ab 2.22  % 2.10  % 0.12 
Average yield on non-taxable securities (1)
h / ac 3.76  % 3.70  % 0.06 
Less: Acquired non-taxable securities accretion - rate related i / ac 1.09  % 0.98  % 0.11 
Adjusted yield on non-taxable securities (1)
j / ac 2.67  % 2.72  % (0.05)
Average yield on interest-earning assets (1)
k / ad 5.75  % 5.35  % 0.40 
Less: Acquired loan and securities accretion - rate related (3)
l / ad 0.52  % 0.45  % 0.07 
Less: Acquired loan accretion - credit related (3)
c / ad 0.04  % 0.05  % (0.01)
Adjusted average yield on interest-earning assets (1)
m / ad 5.19  % 4.85  % 0.34 
Average rate on interest-bearing deposits n / ae 2.93  % 1.50  % 1.43 
Less: Acquired deposit accretion o / ae —  % —  % — 
Adjusted average rate on interest-bearing deposits p / ae 2.93  % 1.50  % 1.43 
Average rate on interest-bearing liabilities q / af 3.28  % 2.19  % 1.09 
Less: Acquired interest-bearing liabilities accretion (2)
r / af —  % —  % — 
Adjusted average rate on interest-bearing liabilities s / af 3.28  % 2.19  % 1.09 
Net interest margin (1)
t / ad 3.54  % 3.99  % (0.45)
Less: Acquired loan, securities, and interest-bearing liabilities accretion - rate related (3)
u / ad 0.52  % 0.45  % 0.07 
Less: Acquired loan accretion - credit related (3)
c / ad 0.04  % 0.05  % (0.01)
Adjusted net interest margin (1)
v / ad 2.98  % 3.49  % (0.51)

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

EX-99.2 3 colb2024q2earningspresen.htm SECOND QUARTER 2024 INVESTOR PRESENTATION colb2024q2earningspresen
2nd Quarter 2024 Earnings Presentation July 25, 2024


 
Disclaimer FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "target," "projects," "outlook," "forecast," "will," "may," "could," "should," "can" and similar references to future periods. In this press release we make forward- looking statements about strategic and growth initiatives and the result of such activity. Risks and uncertainties that could cause results to differ from forward-looking statements we make include, without limitation: current and future economic and market conditions, including the effects of declines in housing and commercial real estate prices, high unemployment rates, continued inflation and any recession or slowdown in economic growth particularly in the western United States; economic forecast variables that are either materially worse or better than end of quarter projections and deterioration in the economy that could result in increased loan and lease losses, especially those risks associated with concentrations in real estate related loans; our ability to effectively manage problem credits; the impact of bank failures or adverse developments at other banks on general investor sentiment regarding the liquidity and stability of banks; changes in interest rates that could significantly reduce net interest income and negatively affect asset yields and valuations and funding sources; changes in the scope and cost of FDIC insurance and other coverage; our ability to successfully implement efficiency and operational excellence initiatives; our ability to successfully develop and market new products and technology; changes in laws or regulations; any failure to realize the anticipated benefits of the merger when expected or at all; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the merger and integration of the companies; the effect of geopolitical instability, including wars, conflicts and terrorist attacks; and natural disasters and other similar unexpected events outside of our control. We also caution that the amount and timing of any future common stock dividends or repurchases will depend on the earnings, cash requirements and financial condition of Columbia, market conditions, capital requirements, applicable law and regulations (including federal securities laws and federal banking regulations), and other factors deemed relevant by Columbia's Board of Directors, and may be subject to regulatory approval or conditions. NON-GAAP FINANCIAL MEASURES In addition to results presented in accordance with GAAP, this presentation contains certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in the Appendix. The Company believes presenting certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends, and our financial position. We utilize these measures for internal planning and forecasting purposes, and operating pre-provision net revenue and operating return on tangible common equity are also used as part of our incentive compensation program for our executive officers. We, as well as securities analysts, investors, and other interested parties, also use these measures to compare peer company operating performance. We believe that our presentation and discussion, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting our business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitution for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. REVERSE ACQUISITION METHOD OF ACCOUNTING On February 28, 2023, Columbia Banking System, Inc. (“Columbia,” “we,” or “our”) completed its merger with Umpqua Holdings Corporation ("UHC"), combining the two premier banks in the Northwest to create one of the largest banks headquartered in the West (the "merger"). Columbia's financial results for any periods ended prior to February 28, 2023 reflect UHC results only on a standalone basis. In addition, Columbia's reported financial results for the six months ended June 30, 2023 reflect UHC financial results only until the closing of the merger after the close of business on February 28, 2023. As a result of these two factors, Columbia's financial results for the six months ended June 30, 2024 may not be directly comparable to prior reported periods. Under the reverse acquisition method of accounting, the assets and liabilities of Columbia as of February 28, 2023 ("historical Columbia") were recorded at their respective fair values. 2


 
Columbia Banking System: A Franchise Like No Other 3 West-Focused Regional Powerhouse Business Bank of Choice ■ In-market, relationship-based commercial banking ■ Attractive footprint in high-growth markets ■ Full suite of deposit products and services with contemporary digital capabilities ■ Expertise in treasury management, foreign exchange, and global cash management ■ Expanding small business platform ■ Comprehensive and growing wealth advisory and trust businesses ■ Niche verticals include diverse agricultural, healthcare, tribal banking, and equipment finance Columbia at a Glance Co rp or at e Ticker COLB Headquarters Tacoma, Washington Offices ~300 in eight states Fi na nc ia ls a s of Ju ne 3 0, 2 02 4 Assets $52 billion Loans $38 billion Deposits $42 billion Common Equity Tier 1 Capital Ratio 9.9%(1) Total Capital Ratio 12.1%(1) (1) Regulatory capital ratios are estimates pending completion and filing of Columbia’s regulatory reports.


 
Why Columbia? 4 ■ Community banking at scale business model drives granular, low-cost core deposit base ■ Opportunity to gain share in California and growing metros in the West while increasing density in the Northwest ■ Solid capital generation supports long-term organic growth and return to shareholders ■ Strong credit quality supported by diversified, well-structured, and conservatively underwritten loan portfolio ■ Compelling culture with deep community ties that is reflected in our proven ability to attract and retain top banking talent ■ Scaled western franchise that is difficult to replicate provides scarcity value


 
Operating in Large, Attractive Western Markets 5 Foothold in the West(1) Northwest (population in millions) Seattle, WA Portland, OR California and Nevada Los Angeles, CA Sacramento, CA Other West Phoenix, AZ Denver, CO 4.1mm 2.5mm 12.9mm 2.4mm 5.1mm 3.0mm Top Regional Bank in the NW (WA, OR, ID)(1) Total Northwest Rank Bank (HQ State) Assets ($B) Deposits ($B) Mkt Shr 1 Bank of America (NC) $3,274 $62 17.3 % 2 U.S. Bancorp (MN) 684 51 14.4 % 3 JPMorgan (NY) 4,091 47 13.3 % 4 Wells Fargo (CA) 1,959 42 11.7 % 5 COLB (WA) 52 33 9.3 % 6 KeyCorp (OH) 187 18 5.0 % 7 WaFd (WA) 30 12 3.3 % 8 Banner Corp. (WA) 16 11 3.0 % 5th Largest Bank HQ’d in our Footprint(1) Total Eight-State Footprint Rank Bank (HQ State) Assets ($B) Deposits ($B) Mkt Shr 1 Wells Fargo (CA) $1,959 $459 16.7 % 2 Zions (UT) 87 61 2.2 % 3 Western Alliance (AZ) 77 51 1.9 % 4 East West (CA) 71 49 1.8 % 5 COLB (WA) 52 41 1.5 % 6 Banc of California (CA) 36 29 1.1 % 7 WaFd (WA) 30 20 0.7 % 8 FirstBank (CO) 28 24 0.9 % Established Presence in Attractive Markets(1) ■ Our market share in the Northwest stands with large national and super regional banks, at over 9% ■ Our foothold in top western markets and scaled franchise provide us the opportunity to increase share in California, Arizona, Colorado, and Utah ■ Projected population growth of 3.2% over the next five years in our collective footprint exceeds the national average of 2.4% ■ Current household income in our footprint is 109% of the national average, and the five-year growth rate of 10.4% compares favorably to 10.1% nationally Boise, ID Salt Lake City, UT Las Vegas, NV 0.8mm 2.4mm 1.3mm (1) Population, household income, asset, deposit, and market share data sourced from S&P Global Market Intelligence. Assets as of March 31, 2024; deposits and market share as of June 30, 2023 and adjusted by S&P to include acquisitions announced or closed subsequent to that date.


 
Opportunity to Increase Density and Gain Share throughout Our Footprint 6 Expand Footprint in California Broaden Presence in Other Western MarketsImprove Density in the Northwest Population Deposits ($mm) COLB MSA(1) (000s) Market COLB Mkt Shr Seattle 4,107 $143,835 $7,561 5.2 % Portland 2,537 67,109 5,673 8.5 % Boise 835 16,886 189 1.1 % Spokane 605 12,868 3,040 23.6 % Population Deposits ($mm) COLB MSA(1) (000s) Market COLB Mkt Shr Phoenix 5,120 $166,520 Opportunity to add targeted retail locations to support existing commercial banking presence Denver 3,031 114,538 Salt Lake City 1,284 69,725 Las Vegas 2,368 78,063 Population Deposits ($mm) COLB MSA(1) (000s) Market COLB Mkt Shr Los Angeles 12,869 $684,438 $848 0.1 % Sacramento 2,440 94,707 1,934 2.0 % San Francisco 4,592 458,774 525 0.1 % San Diego 3,298 105,112 16 < 0.1% (1) Population, deposit, and market share data sourced from S&P Global Market Intelligence. Deposits and market share as of June 30, 2023 and adjusted by S&P to include acquisitions announced or closed subsequent to that date.


 
FINANCIAL HIGHLIGHTS


 
YTD 2024 Highlights 8 ■ Opened Umpqua Bank’s first retail location in Phoenix, AZ and its first Financial Hub in Southern CA, replacing an existing branch. Umpqua has closed four branches on a net basis during 2024 as strategic consolidations offset new locations in targeted growth markets. ■ Total risk-based capital ratio of 12.1%(2) as of June 30, 2024 highlights continued strong net capital generation since the merger closed in Q1 2023. ■ Launched a targeted campaign from February to April 2024, which generated nearly 6,000 new small business accounts and $345 million in new deposits to the bank, 27% of which were non-interest bearing balances. The campaign included bundled solutions for customers without promotional pricing, and a similar campaign was launched in June 2024, with over $110 million in new deposits brought into the bank through mid-July. ■ Named the best U.S. regional bank in the Far West by Global Finance. Reported Operating(1) $244 million $275 million Net Income Net Income $379 million $420 million Pre-Provision Net Revenue(1) Pre-Provision Net Revenue $1.17 $1.32 Earnings-per-Share - Diluted Earnings-per-Share - Diluted 0.94% 1.06% Return on Assets Return on Assets 1.47% 1.62% PPNR Return on Assets(1) PPNR Return on Assets 9.93% 11.18% Return on Equity Return on Equity 14.69% 16.54% Return on Tangible Common Equity(1) Return on Tangible Common Equity (1) Non-GAAP financial measure. A reconciliation to the comparable GAAP measurement for each is provided in the Appendix of this slide presentation. (2) Regulatory capital ratios are estimates pending completion and filing of Columbia’s regulatory reports.


 
Second Quarter 2024 Highlights (1) Non-GAAP financial measure. A reconciliation to the comparable GAAP measurement for each is provided in the Appendix of this slide presentation. 9 ■ Completed an enterprise-wide evaluation of our operations during Q1 2024 that resulted in consolidated positions, simplified reporting and organizational structures, and an improved profitability outlook. Identified savings drive an expected Q4 2024 core expense run rate of $965 million to $985 million annualized, which excludes CDI amortization and non-operating expense(1). Through June 30, 2024, 91% of identified cost savings have been realized, and we expect to carry out the remaining actions during Q3 2024. ■ Introduced a new Business Online Banking platform designed specifically to meet the needs of our small business customers. ■ Sold transactional residential mortgages with a book value of $80 million. As these loans were held on balance sheet at fair value, there was no gain or loss on sale, and a reduction in this small portfolio is expected to reduce future earnings volatility. ■ Selected as the primary partner to administer a Matched Savings Program in partnership with Washington Workforce Association and Financial Beginnings to offer low-income and under-employed job seekers access to financial coaching and matched savings accounts. Reported Operating(1) $120 million $140 million Net Income Net Income $193 million $219 million Pre-Provision Net Revenue(1) Pre-Provision Net Revenue $0.57 $0.67 Earnings-per-Share - Diluted Earnings-per-Share - Diluted 0.93% 1.08% Return on Assets Return on Assets 1.49% 1.70% PPNR Return on Assets(1) PPNR Return on Assets 9.85% 11.47% Return on Equity Return on Equity 14.55% 16.96% Return on Tangible Common Equity(1) Return on Tangible Common Equity


 
Our Diversified Commercial Bank Business Model with a Strong Retail Network Supports our Granular, High-Quality Deposit Base Non-interest, 33% Demand, 20% Money Market, 26% Savings, 6% Time, 15% Enterprise-wide Deposit Composition 10 ■ Deposits were $42 billion as of June 30, 2024 and represented by a granular base that is diversified by business line, industry, and geography. Our average customer account balance is $35 thousand(1). ■ Our use of public and brokered deposits as a source of funding beyond term debt impacts the composition of our enterprise-wide deposit portfolio. Our customer deposit composition(1) is more illustrative of the quality of Columbia’s core deposit franchise. Our bankers’ activity is geared toward protecting the quality of our relationship-based franchise while generating net customer balance growth to reduce the need for non-core funding sources over time. Commercial, 27% Commercial - Small Business, 19% Consumer, 39% Brokered, 8% Public & Other, 7% Deposits by Category Customer Deposit Composition(1) Non-interest, 36% Demand, 19% Money Market, 28% Savings, 7% Time, 10% (1) Excludes all public, administrative, and brokered deposits, as detailed on the “Liquidity Overview” slide in the Appendix. Excluded balances accounted for 15% of total deposits as of June 30, 2024. This is a non-GAAP financial measure.


 
Available-for-Sale Securities Portfolio as of June 30, 2024 ($ in millions) Current Par Amortized Cost Unrealized Gains Unrealized Losses Fair Value % of Total AFS Portfolio Effective Duration Book Yield U.S. Treasuries $390 $382 $0 ($7) $375 4 % 1.9 3.56 % U.S. Agencies 1,156 1,172 $0 ($79) 1,093 13 % 3.8 2.79 % Mortgage-backed securities - residential agency 3,124 2,923 $0 ($305) 2,618 31 % 6.7 3.28 % Collateralized mortgage obligations(1) 1,308 1,223 $1 ($114) 1,109 13 % 5.7 3.45 % Obligations of states and political subdivisions 1,125 1,064 $4 ($34) 1,035 12 % 4.8 3.40 % Commercial mortgage-backed securities - agency 2,477 2,335 $0 ($62) 2,274 27 % 4.2 4.70 % Total available for sale securities $9,581 $9,098 $5 ($601) $8,503 5.2 3.63 % Percentage of current par 95% 0% (6%) 89% 11 Securities Portfolio Overview Note: Table may not foot due to rounding. (1) Portfolio includes $255 million in high-quality non-agency collateralized mortgage obligations (“CMO”) that were in a small unrealized loss position at June 30, 2024 (amortized cost of $259 million). The remaining $854 million of the portfolio is comprised primarily of residential agency CMOs. ■ The total available-for-sale (“AFS”) securities portfolio had a book yield of 3.63% and an effective duration of 5.2 as of June 30, 2024, compared to 3.58% and 5.3, respectively, as of March 31, 2024. ■ As of June 30, 2024, 7% of the AFS securities portfolio (by fair value) was in an unrealized gain position and had a weighted average book yield of 4.63%. The remaining 93% of the portfolio was in an unrealized loss position and had a weighted average book yield of 3.56%.


 
Loan Roll Forward Activity $ in m ill io ns Three Months Ended June 30, 2024 $37,642 $910 ($95) ($392) ($468) $113 $37,710 Beginning Balance (3/31/2024) New Originations Net Advances/ Payments Prepayments Payoffs or Sales Other¹ Ending Balance (6/30/2024) 12 (1) Other includes purchase accounting accretion and amortization. $ in m ill io ns Three Months Ended June 30, 2023 $37,091 $1,208 ($13) ($477) ($748) ($11) $37,049 Beginning Balance (3/31/2023) New Originations Net Advances/ Payments Prepayments Payoffs or Sales Other¹ Ending Balance (6/30/2023) $ in m ill io ns Six Months Ended June 30, 2024 $37,442 $— $1,681 ($168) ($734) ($644) $133 $37,710 Beginning Balance (12/31/2023) Merger New Originations Net Advances/ Payments PrepaymentsPayoffs or Sales Other¹ Ending Balance (6/30/2024) $ in m ill io ns Six Months Ended June 30, 2023 $26,156 $10,884 $1,964 ($145) ($929) ($925) $44 $37,049 Beginning Balance (12/31/2022) Merger New Originations Net Advances/ Payments PrepaymentsPayoffs or Sales Other¹ Ending Balance (6/30/2023)


 
Diversified, High Quality Loan and Lease Portfolio Note: Portfolio statistics and delinquencies as of June 30, 2024. Annualized net charge-off rates for Q2 2024. Loan-to-value (“LTV”), FICO, and debt service coverage (“DSC”) ratios are based on weighted averages for portfolios where data are available. LTV represents average LTV based on most recent appraisal against updated loan balance. Totals may not foot due to rounding. • Portfolio average loan size of $484,000 • 2Q24 average loan size of $462,000 • Portfolio average FICO of 761 and LTV of 62% • 2Q24 average FICO of 769 and LTV of 72% • Total delinquencies of 1.09% • Annualized net charge-off (recovery) rate of 0.02% Non-owner Occupied CRE • Portfolio average loan size of $1.7 million • 2Q24 average loan size of $1.8 million • Portfolio average LTV of 51% and DSC of 1.88 • 2Q24 average LTV of 58% and DSC of 2.02 • Total delinquencies of 0.10% • Annualized net charge-off (recovery) rate of (0.01)% Commercial & Industrial • Portfolio average loan size of $716,000 • 2Q24 average loan size of $1.0 million • Total delinquencies of 0.63% • Annualized net charge-off (recovery) rate of 0.24% Multifamily • Portfolio average loan size of $2.3 million • 2Q24 average loan size of $2.3 million • Portfolio average LTV of 54% and DSC of 1.56 • 2Q24 average LTV of 57% and DSC of 1.21 • Total delinquencies of 0.00% • Annualized net charge-off (recovery) rate of 0.00% Owner Occupied CRE • Portfolio average loan size of $1.0 million • 2Q24 average loan size of $1.8 million • Portfolio average LTV of 55% • 2Q24 average LTV of 71% • Total delinquencies of 0.69% • Annualized net charge-off (recovery) rate of 0.04% Lease & Equipment Finance (FinPac) • Portfolio average loan & lease size of $42,000 • 2Q24 average loan & lease size of $60,000 • Portfolio average yield: ~10% • Total delinquencies of 3.85% • Annualized net charge-off (recovery) rate of 5.87% Puget Sound, 20% WA Other, 8% Portland Metro, 13% OR Other, 14% Bay Area, 7% Northern CA, 9% Southern CA, 15% Other, 14% Mortgage, 16% FinPac, 5% C&I, 21% Owner Occupied CRE, 14% Non-OO CRE, 17% Multifamily, 15% Other Loan Categories, 12% Portfolio Composition at June 30, 2024 Geographic Distribution at June 30, 2024 Mortgage 13


 
C&I and CRE Portfolio Composition Agriculture, 8.8% Contractors, 7.8% Finance/Insurance, 7.1% Manufacturing, 7.5% Professional, 4.0% Public Admin, 6.4% Rental & Leasing, 7.2% Retail, 2.6% Support Services, 3.9% Transportation/ Warehousing, 8.4% Wholesale, 7.0% Gaming, 5.6% Dentists, 7.2% Other Healthcare, 3.5% Other, 13.1% Office, 16.2% Multifamily, 34.0% Industrial, 15.8% Retail, 11.3% Special Purpose, 7.5% Hotel/Motel, 4.2% Other, 11.0% CRE Portfolio Composition(1) $17.5 Billion at June 30, 2024 C&I Portfolio Composition(1) $9.8 Billion at June 30, 2024 (1) C&I portfolio composition includes term, lines of credit & other, and leases & equipment finance balances. CRE portfolio composition includes non-owner occupied term and owner occupied term balances as well as multifamily balances. (2) Owner occupied and non-owner occupied disclosure relates to commercial real estate portfolio excluding multifamily loans. 45% Owner Occupied / 55% Non-Owner Occupied(2)Commercial Line Utilization was 36% at June 30, 2024 14


 
Office Portfolio Details Puget Sound, 22% WA Other, 5% Portland Metro, 12% OR Other, 15%Bay Area, 6% N. CA, 11% S. CA, 20% Other, 9% Office Portfolio Metrics at June 30, 2024 Average loan size $1.35 million Average LTV 57% DSC (non-owner occupied) 1.78x % with guaranty (by $ / by #) 86% / 84% Past due 30-89 days $0.9mm / 0.03% of office Nonaccrual $11.4mm / 0.38% of office Special mention $11.1mm / 0.37% of office Classified $60.8mm / 2.04% of office Number of Loans by Balance Geography 15 ■ Loans secured by office properties represented 8% of our total loan portfolio at June 30, 2024. ■ Our office portfolio is 39% owner occupied, 57% non-owner occupied, and 4% construction. Dental and other healthcare loans compose 17% of our office portfolio. ■ The average loan size in our office portfolio is $1.35 million, delinquencies are at a de minimis level, and the majority of our loans contain a guaranty. ■ Excluding floating rate loans, which have already repriced to prevailing rates, only 6% of our office portfolio reprices through 2025. Loans repricing in 2024 and 2025 have average balances of $0.3 million and $1.1 million, respectively. ■ Properties located in suburban markets secure the majority of our office portfolio as only 6% of non-owner occupied office loans are located in downtown core business districts. 1,746 441 71 38 7 6 <$1mm $1-5mm $5-10mm $10-20mm $20-30mm >$30mm 2024, 1% 2025, 5% 2026, 4% 2027 & After, 14% Fixed Rate¹, 68% Floating Rate, 8% Repricing Schedule (1) Loans with a swap component are displayed as a fixed rate loan if the swap maturity is equal to the maturity of the loan. If the swap matures prior to the loan, the loan is displayed as adjustable with the rate resetting at the time of the swap maturity. 2024, 3% 2025, 7% 2026, 6% 2027 & After, 84% Maturity Schedule , 19 8 9 6 7 1,649 0 6


 
Continued Strong Credit Quality Provision Expense, Net Charge-Offs to Average Loans, and Non-Performing Assets to Total Assets $16.0 $36.7 $54.9 $17.1 $31.8 0.30% 0.25% 0.31% 0.47% 0.32% 0.15% 0.20% 0.22% 0.28% 0.30% Provision Expense ($mm) Net Charge-Offs / Average Loans (annualized) Non-Performing Assets / Total Assets Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 16 Allowance for Credit Losses $424 $438 $464 $437 $439 $94 $86 $80 $74 $69 1.15% 1.18% 1.24% 1.16% 1.16% ACL ($mm) Credit Discount ($mm) ACL / Total Loans and Leases ACL + Credit Discount / Total Loans and Leases Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 ■ The remaining credit discount on loans of $69 million as of June 30, 2024 provides an additional 19 basis points of loss absorption when added to the ACL of $439 million. ■ Charge-off activity in Q2 2024 remained concentrated in the trucking portfolio of the FinPac business as bank charge-off activity was otherwise at a low level. Bank charge- offs were 0.06% of average bank loans in Q2 2024 (annualized). ■ The linked-quarter increase in non- performing assets was driven in part by the expiration of certain COVID-related designations within the residential mortgage portfolio, as non-performing loans in commercial portfolios declined. ■ Nonperforming loans of $153 million as of June 30, 2024 included $65 million of loans with government guarantees. 1.40% 1.41% 1.45% 1.36% 1.35%


 
ACL Reflects Strong Portfolio Credit Metrics (1) Total includes reserve for unfunded commitments of $19.9 million and $22.9 million as of June 30, 2024 and March 31, 2024, respectively. 17 ■ Our reserve coverage by loan segment and for the overall loan and lease portfolio reflects our robust underwriting criteria and ongoing, routine portfolio monitoring activities. For example, we stress applicable variables, like interest rates, cash flows, and occupancy, at inception and loan review and limit borrower proceeds as a result. These factors contribute to lower LTVs and higher DSC ratios, which are taken into consideration in the estimation of our ACL. ■ The quarter’s provision expense of $32 million reflects credit migration trends and changes in the economic forecasts used in credit models. We used components of Moody’s Analytics’ May 2024 baseline economic forecast to estimate our ACL as of June 30, 2024. Allowance for Credit Losses (“ACL”) by Loan Segment ($ in thousands) Commercial Lease & Equipment Commercial Real Estate Residential & Home Equity Consumer Total(1) Remaining Credit Discount on Loans Total ACL including Credit Discount on Loans(1) Balance as of March 31, 2024 $96,777 $111,870 $159,304 $60,767 $8,494 $437,212 $74,098 $511,310 Q2 2024 Net (Charge-offs) Recoveries (4,673) (24,690) (34) (93) (943) (30,433) Reserve Build (Release) 30,024 16,953 (6,178) (9,511) 532 31,820 Balance as of June 30, 2024 $122,128 $104,133 $153,092 $51,163 $8,083 $438,599 $69,177 $507,776 % of Loans and Leases Outstanding 1.50% 6.12% 0.78% 0.64% 4.20% 1.16% 1.35%


 
Capital Management 18 Regulatory Capital Ratios: Bank and Holding Company as of June 30, 2024 8.5% 10.7% 10.7% 11.7% 7.9% 9.9% 9.9% 12.1% Umpqua Bank Columbia Banking System Tier 1 Leverage CET1 Tier 1 Capital Total Risk-Based —% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% ■ Regulatory capital ratios declined during Q1 2023 as a result of the merger and the impact of rate-related asset discounts on capital. Our capital ratios have continued to increase on a quarterly basis post merger closing. ■ We expect to organically generate capital above what is required to support prudent growth and our regular dividend, with excess capital driving ratios higher and providing for longer-term flexibility for return to shareholders. Note: Umpqua Bank and Columbia Banking System, Inc. long-term capital ratio targets reflect a targeted excess level of capital above regulatory well-capitalized minimums inclusive of the capital conservation buffer (“CCB”) where applicable. The minimum capital ratios to be considered well capitalized inclusive of the CCB are 7.0%, 8.5%, and 10.5% for the common equity tier 1 (“CET1”) ratio, tier 1 capital ratio, and total risk-based capital ratio, respectively. The CCB does not apply to the tier 1 leverage ratio, which has a well-capitalized minimum level of 5.0%. All regulatory capital ratios as of June 30, 2024 are estimates pending completion and filing of Columbia’s and Umpqua Bank’s regulatory reports. Capital Ratios Continue to Trend Up 9.2% 9.5% 9.6% 9.8% 9.9% 11.3% 11.6% 11.9% 12.0% 12.1% COLB: CET1 Ratio COLB: Total RBC Ratio 6/30/2023 9/30/2023 12/31/2023 3/31/2024 06/30/2024 —% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 12% Long-Term Target 9% Long-Term Target 9% Long-Term Target 6.5% Long-Term Target


 
Net Interest Income and Net Interest Margin (1) Chart Abbreviations: “PAA” = purchase accounting accretion and amortization; “LHFI” = loans held for investment. Net Interest Income and Net Interest Margin $484 $481 $454 $423 $427 3.93% 3.91% 3.78% 3.52% 3.56% Net Interest Income ($ in millions) Net Interest Margin Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Net Interest Margin: Q1 2024 vs Q2 2024 3.52% 0.05% 0.01% 0.04% (0.07)% 0.02% (0.01)% 3.56% Q1 2024 Reported LHFI-ex PAA¹ LHFI-PAA¹ Invest- ments Deposits Term Debt Other Q2 2024 Reported 19 ■ We conducted a comprehensive review during Q1 2024 related to the evaluation and approval of deposit pricing, which resulted in enhanced pricing visibility that contributed to stability in interest-bearing core deposit rates during Q2 2024. The cost of interest-bearing deposits increased 9 basis points on a linked- quarter basis, and was 2.97% for both the three months ended June 30, 2024 and as of June 30, 2024, which compares to 3.00% for the month of June. ■ The cost of interest-bearing liabilities increased 6 basis points on a linked-quarter basis, and was 3.31% for both the three months ended June 30, 2024 and as of June 30, 2024, which compares to 3.34% for the month of June. ■ The net interest margin increased 4 basis points on a linked quarter basis to 3.56%, which compares to 3.52% for the month of June. Higher yields on loans and investment securities, including the benefit of accretion income, offset a modest increase in the cost of interest-bearing liabilities and resulted in linked-quarter net interest margin expansion.


 
Loan Maturities at June 30, 2024 <=6 7 to 12 13 to 24 25 to 36 37 to 60 61+ % of ($ in millions) Months(1) Months Months Months Months Months Total Total(2) Fixed(1) $509 $319 $649 $988 $2,287 $8,922 $13,674 36 % Floating(1) 3,236 1,135 1,481 874 1,508 4,773 13,007 34 % Adjustable 103 112 236 259 632 10,064 11,406 30 % Total $3,848 $1,566 $2,366 $2,121 $4,427 $23,759 $38,087 100 % Interest Rate Sensitivity Floors: Floating and Adjustable Rate Loans at June 30, 2024 ($ in millions) No Floor(3) At Floor(3) Above Floor(3) Total Floating $8,432 $159 $4,416 $13,007 Adjustable 1,696 56 9,654 11,406 Total $10,128 $215 $14,070 $24,413 % of Total 41% 1% 58% 100% 20 Note: Tables may not foot due to rounding. Loan totals on this slide do not include purchase accounting adjustments. Deferred fees and costs also drive variances between loan totals on this slide and loan totals in the earnings press release. (1) Commercial tranche loans that mature in one month are included in the floating rate loan category, not the fixed rate loan category, as these loans reprice in a manner similar to floating rate loans. (2) Floating rate loans are indexed to prime (8% of the total loan portfolio) and 1-month underlying interest rates (26% of the total loan portfolio). When adjustable rate loans reprice, they are indexed to interest rates that span 1-month tenors to 10-year tenors as well as the prime rate; the most prevalent underlying index rates are 6-month tenors (16% of the total loan portfolio) and 5-year tenors (6% of the total loan portfolio). (3) Loans were grouped into three buckets: (1) No Floor: no contractual floor on the loan; (2) At Floor: current rate = floor; (3) Above Floor: current rate exceeds floor. The amount above the floor was based on the current margin plus the current index assuming the loan repriced on June 30, 2024. The adjustable loans may not reprice until well into the future, depending on the timing and size of interest rate changes. (4) Deposit and funding repricing beta data present combined company results as if historical Columbia and historical UHC were one company for all periods through December 31, 2022; subsequent time periods present data on a legal basis given the merger. The beta presentation is calculated in this manner for comparison purposes. (5) For the scenarios shown, the interest rate simulations assume a parallel and sustained shift in market interest rates ratably over a twelve-month period (ramp) or immediately (shock). The simulation repricing betas applied to interest-bearing deposits in the rising rate and declining rate scenarios are 58% and 56%, respectively, for June 30, 2024. Additional data related to interest rate simulations are available in Columbia’s Form 10-K for the fiscal year ended December 31, 2023. Deposit and Funding Repricing Betas During the Current Rising-Rate Cycle(4) Effective Fed Funds Rate (Daily Avg.) Cost of Combined Company(4) Three Months Ended Interest- Bearing Deposits Total Deposits Total Funding June 30, 2024 5.33% 2.97% 2.01% 2.34% December 31, 2023 5.33% 2.54% 1.63% 2.05% December 31, 2022 3.65% 0.62% 0.35% 0.51% December 31, 2021 0.08% 0.10% 0.05% 0.09% Variance: Peak (Peak Value less Q4 2021) +5.25% +2.87% +1.96% +2.25% Repricing Betas: Cycle-to-Date 55% 37% 43% Interest Rate Simulation Impact on Net Interest Income at June 30, 2024(5) Ramp Shock Year 1 Year 2 Year 1 Year 2 Up 200 basis points (1.3)% (2.0)% (1.1)% (0.3)% Up 100 basis points (0.6)% (1.0)% (0.5)% (0.2)% Down 100 basis points 0.5% 0.6% 0.3% (0.2)% Down 200 basis points 1.0% 0.8% 0.7% (1.1)% Down 300 basis points 1.7% 0.6% 1.0% (2.4)%


 
Non-Interest Income Note: Tables may not foot due to rounding. (1) Other commercial product revenue includes swaps, syndication, and international banking revenue, which are captured in “other income” on the income statement. Other income statement line items, like card-based fees, include other sources of commercial product revenue. For the Quarter Ended ($ in millions) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Service charges on deposits $18.5 $16.1 $17.3 $17.4 $16.5 Card-based fees 14.7 13.2 14.6 15.7 13.4 Financial services and trust revenue 5.4 4.5 3.0 4.7 4.5 Residential mortgage banking revenue (loss), net 5.8 4.6 4.2 7.1 (2.3) Gain (loss) on equity securities, net 0.3 (1.6) 2.6 (2.1) (0.7) (Loss) gain on loan and lease sales, net (1.5) 0.2 1.2 1.9 0.4 BOLI income 4.7 4.6 4.3 4.4 4.1 Other income Other commercial product revenue(1) $2.6 $2.3 $3.9 $3.0 $3.0 Commercial servicing revenue 0.2 0.6 (0.2) 0.5 0.4 Loan-related fees 4.1 3.7 3.2 3.6 3.3 Change in fair value of certain loans held for investment (10.1) (2.4) 19.4 (19.2) (7.0) Misc. income (0.4) 3.3 (0.1) 1.3 2.8 Swap derivative gain (loss) 0.4 1.2 (8.0) 5.7 1.3 21 Q2 2024 Highlights (compared to Q1 2024) ■ The second quarter’s results reflect favorable trends in card activity, financial services and trust revenue, and other commercial product revenue like syndication and international banking fees. Our Business Bank of Choice strategy incorporates a collaborative team approach to deliver needs-based solutions to our customers, which deepens relationships and provides growth in sustainable core fee income to the bank. ■ Higher interest rates in the second quarter compared to the first quarter drove fair value changes in certain loans held for investment, which, when coupled with the swap derivative gain, reduced non-interest income by $9 million compared to the first quarter. These items are captured in other income.


 
Non-Interest Expense 22 $ in m ill io ns Non-Interest Expense ("NIE") $328.6 $304.1 $337.2 $287.5 $279.2 $296.8 $281.2 $294.3 $276.9 $262.5 GAAP Non-Interest Expense Operating Non-Interest Expense¹ Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 ■ Non-interest expense in Q2 2024 declined $8 million from the prior quarter to $279 million. Operating non-interest expense(1) declined $14 million from the prior quarter to $263 million. Ongoing strategic actions taken to reduce our non-interest expense run rate, lower CDI amortization following the one- year anniversary of the merger, and a $7.7 million reversal of prior compensation-related accruals drove the linked-quarter decline. ■ We completed an enterprise-wide evaluation of our operations during Q1 2024 that resulted in consolidated positions, simplified reporting and organizational structures, and an improved profitability outlook. Identified savings drive an expected Q4 2024 core expense run rate of $965 million to $985 million annualized, which excludes CDI amortization and non-operating expense(1). Through June 30, 2024, 91% of identified cost savings have been realized, and we expect to carry out the remaining actions during Q3 2024. $ in m ill io ns Non-Interest Expense: Q1 2024 vs Q2 2024 $287.5 $(7.7) $(1.8) $(2.9) $(2.0) $6.1 $279.2 Q1 2024 NIE Comp. Accrual Reversal Other Comp. CDI Amort. Misc. Other Non- operating¹ Q2 2024 NIE (1) Non-GAAP financial measure. A reconciliation to the comparable GAAP measurement is provided at the end of this slide presentation. Non-operating expense items include exit and disposal costs, merger and restructuring expense, and an FDIC special assessment. These items are detailed in the “Non-GAAP Reconciliation” section of the Appendix. Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes the FDIC special assessment in non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company.


 
APPENDIX


 
Summary Income Statements Note: Tables may not foot due to rounding. (1) Non-GAAP financial measure. A reconciliation to the comparable GAAP measurement is provided at the end of this slide presentation. For the Quarter Ended ($ in millions, except per-share data) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Net interest income before provision $427.4 $423.4 $453.6 $480.9 $484.0 Provision for credit losses 31.8 17.1 54.9 36.7 16.0 Net interest income after provision 395.6 406.2 398.7 444.1 468.0 Non-interest income 44.7 50.4 65.5 44.0 39.7 Non-interest expense 279.2 287.5 337.2 304.1 328.6 Income before provision for income taxes 161.1 169.1 127.1 184.0 179.1 Provision for income taxes 40.9 45.0 33.5 48.1 45.7 Net income $120.1 $124.1 $93.5 $135.8 $133.4 Earnings per share, diluted $0.57 $0.59 $0.45 $0.65 $0.64 Non-interest expense, excluding merger and restructuring expense(1) 264.6 283.0 330.0 285.2 298.9 Pre-provision net revenue(1) $192.9 $186.2 $182.0 $220.7 $195.1 Operating pre-provision net revenue(1) $219.4 $200.7 $212.1 $258.7 $243.1 Operating net income(1) $140.0 $134.9 $116.1 $164.3 $169.4 Operating earnings per share, diluted(1) $0.67 $0.65 $0.56 $0.79 $0.81 24 Q2 2024 Highlights (compared to Q1 2024) ■ Net interest income increased by $4 million due to higher income earned on loans and investment securities, including increased accretion income, partially offset by higher deposit costs. ■ Non-interest income decreased by $6 million due to the quarterly fluctuation in cumulative fair value accounting and hedges. Excluding these items, non- interest income was stable. ■ Non-interest expense decreased by $8 million due to lower compensation and CDI amortization and other variances detailed on the “Non-Interest Expense” slide. ■ Provision expense of $32 million compares to $17 million in the prior quarter, which benefited from the recalibration of the commercial CECL model.


 
Summary Period-End Balance Sheets Note: Tables may not foot due to rounding. (1) Non-GAAP financial measure. A reconciliation to the comparable GAAP measurement is provided in the appendix of this slide presentation. ($ in millions, except per-share data) Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 ASSETS: Total assets $52,047.5 $52,224.0 $52,173.6 $51,993.8 $53,592.1 Interest bearing cash and temporary investments 1,553.6 1,760.9 1,664.0 1,911.2 2,868.6 Investment securities available for sale, fair value 8,503.0 8,616.5 8,829.9 8,504.0 8,998.4 Loans and leases, gross 37,710.0 37,642.4 37,442.0 37,170.6 37,049.3 Allowance for credit losses on loans and leases (418.7) (414.3) (440.9) (416.6) (404.6) Goodwill and other intangibles, net 1,571.6 1,600.8 1,632.9 1,666.1 1,696.0 LIABILITIES AND EQUITY: Deposits 41,523.3 41,706.2 41,607.0 41,624.4 40,834.9 Securities sold under agreements to repurchase 197.9 213.6 252.1 258.4 294.9 Borrowings 3,900.0 3,900.0 3,950.0 3,985.0 6,250.0 Total shareholders' equity 4,976.7 4,957.2 4,995.0 4,632.2 4,828.2 RATIOS AND PER-SHARE METRICS: Loan to deposit ratio 90.8% 90.3% 90.0% 89.3% 90.7% Book value per common share $23.76 $23.68 $23.95 $22.21 $23.16 Tangible book value per common share(1) $16.26 $16.03 $16.12 $14.22 $15.02 Common equity to assets ratio 9.6% 9.5% 9.6% 8.9% 9.0% Tangible common equity to tangible assets ratio(1) 6.7% 6.6% 6.7% 5.9% 6.0% 25 Q2 2024 Highlights (compared to Q1 2024) ■ Commercial line utilization and construction project activity were the primary contributors to loan growth in Q2 2024. Columbia sold loans with a book balance of $95 million during the quarter, including $80 million in residential mortgage loans held on the balance sheet at fair value. Excluding these actions, the loan portfolio increased by 2% on an annualized basis. ■ Deposit balances were down modestly during the quarter, due in part to anticipated customer tax payments, partially offset by targeted campaigns based on products and services, not price. ■ Book value and tangible book value increased 0.3% and 1.4%, respectively, as organic net capital generation was only partially offset by an increase in accumulated other comprehensive loss.


 
Liquidity Overview Total Available Liquidity at June 30, 2024 ($ in millions) Total off-balance sheet liquidity (available lines of credit): $13,917 Cash and equivalents, less reserve requirement 1,765 Excess bond collateral 3,382 Total available liquidity $19,064 TOTAL AVAILABLE LIQUIDITY AS A PERCENTAGE OF: Assets of $52.0 billion at June 30, 2024 37 % Deposits of $41.5 billion at June 30, 2024 46 % Uninsured deposits of $13.6 billion at June 30, 2024 140 % Total Off-Balance Sheet Liquidity Available at June 30, 2024 ($ in millions) Gross Availability Utilization Net Availability FHLB lines $11,772 $2,370 $9,402 Federal Reserve Discount Window 3,915 — 3,915 Federal Reserve Term Funding Program(1) 1,550 1,550 — Uncommitted lines of credit 600 — 600 Total off-balance sheet liquidity $17,837 $3,920 $13,917 26 ■ Net contraction in customer deposits was partially driven by anticipated customer tax payments. ■ Contraction in small business deposits during Q2 2024 was almost entirely offset by targeted campaigns that ran in April and June to generate new business. The current campaign runs through July 2024 and includes bundled solutions for customers without promotional pricing. Select Balance Sheet Items Three Months Ended Sequential Quarter Change ($ in millions) Q2 2024 Q1 2024 Q2 2023 Q2 2024 Commercial deposits $11,188 $11,207 $10,788 ($19) Small business deposits 8,070 8,103 8,835 (33) Consumer deposits 15,988 16,241 16,200 (253) Total customer deposits 35,246 35,551 35,823 (305) Public deposits - non-interest bearing 627 645 643 (18) Public deposits - interest bearing 2,334 2,285 1,782 49 Total public deposits 2,961 2,930 2,425 31 Administrative deposits 147 135 241 12 Brokered deposits 3,169 3,090 2,346 79 Total deposits $41,523 $41,706 $40,835 ($183) Term debt $3,900 $3,900 $6,250 $— Cash & cash equivalents $2,069 $2,201 $3,407 ($132) Available-for-sale securities $8,503 $8,617 $8,998 ($114) Loans and leases $37,710 $37,642 $37,049 $68 Note: Tables may not foot due to rounding. (1) The Federal Reserve’s Bank Term Funding Program was discontinued in March 2024. We present associated balances as they were outstanding on Columbia’s balance sheet as of June 30, 2024.


 
Purchase Accounting Details (1) Table does not capture all assets and liabilities with an associated fair value discount or premium. Assets and liabilities not presented have a significantly smaller impact on income through the accretion or amortization of their discount or premium. (2) The cumulative fair value discount on historical Columbia loans was established as of February 28, 2023, and the allocation between the credit-related discount and the rate-related discount was established at that time. Our disclosure of credit-related and rate-related discount accretion is an estimate based on the relative allocation of these two items to the discount at the closing of the merger. Adjustment at Closing Remaining Balances at Select Purchase Accounting Items(1) February 28, 2023 March 31, 2024 June 30, 2024 Notes ITEMS TO ACCRETE THROUGH INTEREST INCOME: Available for sale securities - rate discount $(1,011) million $(543) million $(518) million While an adjustment to historical Columbia securities’ book value was $1.0 billion at the closing of the merger, the purchase discount that will accrete into interest income over time was $0.6 billion when previously existing purchase premiums and the discount associated with bonds sold as part of the Q1 2023 portfolio restructuring were eliminated. Loans - rate discount(2) $(618) million $(444) million $(419) million Total rate discount on loans and securities $(1,629) million $(987) million $(938) million Loans - credit mark(2) $(130) million $(74) million $(69) million Total discount on loans and securities $(1,759) million $(1,061) million $(1,007) million Fair value discounts are accreted into interest income using the effective interest method, which amortizes the discount over the life of the loan or security. ITEM TO AMORTIZE THROUGH NON-INTEREST EXPENSE: Core deposit intangible $710 million $571 million $542 million CDI amortizes through non-interest expense over 10 years using the sum-of-the-years-digits method. 27


 
Non-GAAP Reconciliation: Tangible Capital ($ in thousands, except per-share data) 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 Total shareholders' equity a $4,976,672 $4,957,245 $4,995,034 $4,632,162 $4,828,188 Less: Goodwill 1,029,234 1,029,234 1,029,234 1,029,234 1,029,234 Less: Other intangible assets, net 542,358 571,588 603,679 636,883 666,762 Tangible common shareholders’ equity b 3,405,080 3,356,423 3,362,121 2,966,045 3,132,192 Total assets c $52,047,483 $52,224,006 $52,173,596 $51,993,815 $53,592,096 Less: Goodwill 1,029,234 1,029,234 1,029,234 1,029,234 1,029,234 Less: Other intangible assets, net 542,358 571,588 603,679 636,883 666,762 Tangible assets d $50,475,891 $50,623,184 $50,540,683 $50,327,698 $51,896,100 Common shares outstanding at period end e 209,459 209,370 208,585 208,575 208,514 Total shareholders' equity to total assets ratio a / c 9.56 % 9.49 % 9.57 % 8.91 % 9.01 % Tangible common equity to tangible assets ratio b / d 6.75 % 6.63 % 6.65 % 5.89 % 6.04 % Book value per common share a / e $23.76 $23.68 $23.95 $22.21 $23.16 Tangible book value per common share b / e $16.26 $16.03 $16.12 $14.22 $15.02 28


 
Non-GAAP Reconciliation: Adjustments and Average Balances For the Quarter Ended For the Six Months Ended ($ in thousands) 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 6/30/2024 6/30/2023 Non-Interest Income Adjustments (Loss) gain on sale of debt securities, net $ (1) $ 12 $ 9 $ 4 $ — $ 11 $ — Gain (loss) on equity securities, net 325 (1,565) 2,636 (2,055) (697) (1,240) 1,719 Gain (loss) on swap derivatives 424 1,197 (8,042) 5,700 1,288 1,621 (2,255) Change in fair value of certain loans held for investment (10,114) (2,372) 19,354 (19,247) (6,965) (12,486) 2,523 Change in fair value of MSR due to valuation inputs or assumptions 1,238 3,117 (6,251) 5,308 (2,242) 4,355 (5,179) MSR hedge (loss) gain (1,611) (4,271) 5,026 (4,733) (7,636) (5,882) (4,986) Total non-interest income adjustments a $ (9,739) $ (3,882) $ 12,732 $ (15,023) $ (16,252) $ (13,621) $ (8,178) Non-Interest Expense Adjustments Merger and restructuring expense $ 14,641 $ 4,478 $ 7,174 $ 18,938 $ 29,649 $ 19,119 $ 145,547 Exit and disposal costs 1,218 1,272 2,791 4,017 2,119 2,490 3,410 FDIC special assessment(1) 884 4,848 32,923 — — 5,732 — Total non-interest expense adjustments b $ 16,743 $ 10,598 $ 42,888 $ 22,955 $ 31,768 $ 27,341 $ 148,957 Average Assets n $ 51,981,555 $ 52,083,973 $ 51,832,356 $ 53,011,361 $ 53,540,574 $ 52,032,763 $ 46,522,265 Less: Average goodwill and other intangible assets, net 1,588,239 1,619,134 1,652,282 1,684,093 1,718,705 1,603,686 1,173,900 Average tangible assets o $ 50,393,316 $ 50,464,839 $ 50,180,074 $ 51,327,268 $ 51,821,869 $ 50,429,077 $ 45,348,365 Average common shareholders’ equity p $ 4,908,239 $ 4,985,875 $ 4,695,736 $ 4,866,975 $ 4,935,239 $ 4,947,057 $ 4,146,880 Less: Average goodwill and other intangible assets, net 1,588,239 1,619,134 1,652,282 1,684,093 1,718,705 1,603,686 1,173,900 Average tangible common equity q $ 3,320,000 $ 3,366,741 $ 3,043,454 $ 3,182,882 $ 3,216,534 $ 3,343,371 $ 2,972,980 Weighted average basic shares outstanding r 208,498 208,260 208,083 208,070 207,977 208,379 182,325 Weighted average diluted shares outstanding s 209,011 208,956 208,739 208,645 208,545 208,999 182,860 29 (1) Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes the FDIC special assessment in non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company.


 
Non-GAAP Reconciliation: Income Statements For the Quarter Ended For the Six Months Ended ($ in thousands) 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 6/30/2024 6/30/2023 Net interest income c $ 427,449 $ 423,362 $ 453,623 $ 480,875 $ 483,975 $ 850,811 $ 858,673 Non-interest income (GAAP) d $ 44,703 $ 50,357 $ 65,533 $ 43,981 $ 39,678 $ 95,060 $ 94,413 Less: Non-interest income adjustments a 9,739 3,882 (12,732) 15,023 16,252 13,621 8,178 Operating non-interest income (non-GAAP) e $ 54,442 $ 54,239 $ 52,801 $ 59,004 $ 55,930 $ 108,681 $ 102,591 Revenue (GAAP) f=c+d $ 472,152 $ 473,719 $ 519,156 $ 524,856 $ 523,653 $ 945,871 $ 953,086 Operating revenue (non-GAAP) g=c+e $ 481,891 $ 477,601 $ 506,424 $ 539,879 $ 539,905 $ 959,492 $ 961,264 Non-interest expense (GAAP) h $ 279,244 $ 287,516 $ 337,176 $ 304,147 $ 328,559 $ 566,760 $ 671,377 Less: Non-interest expense adjustments b (16,743) (10,598) (42,888) (22,955) (31,768) (27,341) (148,957) Operating non-interest expense (non-GAAP) i $ 262,501 $ 276,918 $ 294,288 $ 281,192 $ 296,791 $ 539,419 $ 522,420 Net income (loss) (GAAP) j $ 120,144 $ 124,080 $ 93,531 $ 135,845 $ 133,377 $ 244,224 $ 119,339 Provision (benefit) for income taxes 40,944 44,987 33,540 48,127 45,703 85,931 40,817 Income (loss) before provision for income taxes 161,088 169,067 127,071 183,972 179,080 330,155 160,156 Provision for credit losses 31,820 17,136 54,909 36,737 16,014 48,956 121,553 Pre-provision net revenue (PPNR) (non-GAAP) k 192,908 186,203 181,980 220,709 195,094 379,111 281,709 Less: Non-interest income adjustments a 9,739 3,882 (12,732) 15,023 16,252 13,621 8,178 Add: Non-interest expense adjustments b 16,743 10,598 42,888 22,955 31,768 27,341 148,957 Operating PPNR (non-GAAP) l $ 219,390 $ 200,683 $ 212,136 $ 258,687 $ 243,114 $ 420,073 $ 438,844 Net income (GAAP) j $ 120,144 $ 124,080 $ 93,531 $ 135,845 $ 133,377 $ 244,224 $ 119,339 Less: Non-interest income adjustments a 9,739 3,882 (12,732) 15,023 16,252 13,621 8,178 Add: Non-interest expense adjustments b 16,743 10,598 42,888 22,955 31,768 27,341 148,957 Tax effect of adjustments (6,621) (3,620) (7,539) (9,482) (11,981) (10,241) (35,546) Operating net income (non-GAAP) m $ 140,005 $ 134,940 $ 116,148 $ 164,341 $ 169,416 $ 274,945 $ 240,928 30


 
Non-GAAP Reconciliation: Earnings Per-Share and Performance Metrics For the Quarter Ended For the Six Months Ended ($ in thousands, except per-share data) 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 6/30/2024 6/30/2023 Select Per-Share & Performance Metrics Earnings per share - basic j/r $ 0.58 $ 0.60 $ 0.45 $ 0.65 $ 0.64 $ 1.17 $ 0.65 Earnings per share - diluted j/s $ 0.57 $ 0.59 $ 0.45 $ 0.65 $ 0.64 $ 1.17 $ 0.65 Efficiency ratio(1) h/f 59.02 % 60.57 % 64.81 % 57.82 % 62.60 % 59.80 % 70.30 % Non-interest expense to average assets h/n 2.16 % 2.22 % 2.58 % 2.28 % 2.46 % 2.19 % 2.91 % Return on average assets j/n 0.93 % 0.96 % 0.72 % 1.02 % 1.00 % 0.94 % 0.52 % Return on average tangible assets j/o 0.96 % 0.99 % 0.74 % 1.05 % 1.03 % 0.97 % 0.53 % PPNR return on average assets k/n 1.49 % 1.44 % 1.39 % 1.65 % 1.46 % 1.47 % 1.22 % Return on average common equity j/p 9.85 % 10.01 % 7.90 % 11.07 % 10.84 % 9.93 % 5.80 % Return on average tangible common equity j/q 14.55 % 14.82 % 12.19 % 16.93 % 16.63 % 14.69 % 8.09 % Operating Per-Share & Performance Metrics Operating earnings per share - basic(2) m/r $ 0.67 $ 0.65 $ 0.56 $ 0.79 $ 0.81 $ 1.32 $ 1.32 Operating earnings per share - diluted(2) m/s $ 0.67 $ 0.65 $ 0.56 $ 0.79 $ 0.81 $ 1.32 $ 1.32 Operating efficiency ratio, as adjusted(1), (2), (3) u/y 53.56 % 56.97 % 57.31 % 51.26 % 54.04 % 55.26 % 53.51 % Operating non-interest expense to average assets i/n 2.03 % 2.14 % 2.25 % 2.10 % 2.22 % 2.08 % 2.26 % Operating return on average assets(2) m/n 1.08 % 1.04 % 0.89 % 1.23 % 1.27 % 1.06 % 1.04 % Operating return on average tangible assets(2) m/o 1.12 % 1.08 % 0.92 % 1.27 % 1.31 % 1.10 % 1.07 % Operating PPNR return on average assets(2) l/n 1.70 % 1.55 % 1.62 % 1.94 % 1.82 % 1.62 % 1.90 % Operating return on average common equity(2) m/p 11.47 % 10.89 % 9.81 % 13.40 % 13.77 % 11.18 % 11.72 % Operating return on average tangible common equity(2) m/q 16.96 % 16.12 % 15.14 % 20.48 % 21.13 % 16.54 % 16.34 % (1) Tax-exempt income has been adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation. (2) Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes the FDIC special assessment in non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company. (3) The operating efficiency ratio was adjusted in the first quarter of 2024 to remove B&O taxes and for a tax-equivalent adjustment to BOLI income. The Company views the adjusted operating efficiency ratio as a better representation of its efficiency ratio when compared to other banks as it normalizes for the tax treatment of the adjusted items. The adjustment re-aligns Columbia's calculation of its operating efficiency ratio with its pre-merger calculation. 31


 
Non-GAAP Reconciliation: Operating Efficiency Ratio, as Adjusted 32 For the Quarter Ended For the Six Months Ended ($ in thousands) 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 6/30/2024 6/30/2023 Non-interest expense (GAAP) h $279,244 $287,516 $337,176 $304,147 $328,559 $566,760 $671,377 Less: Non-interest expense adjustments b (16,743) (10,598) (42,888) (22,955) (31,768) (27,341) (148,957) Operating non-interest expense (non-GAAP) i 262,501 276,918 294,288 281,192 296,791 539,419 522,420 Less: B&O taxes t (3,183) (3,223) (2,727) (3,275) (3,647) (6,406) (5,776) Operating non-interest expense, excluding B&O taxes (non-GAAP) u $259,318 $273,695 $291,561 $277,917 $293,144 $533,013 $516,644 Non-interest income (tax equivalent)(1) v $428,434 $424,344 $454,730 $482,031 $485,168 $852,778 $860,537 Non-interest income (GAAP) d 44,703 50,357 65,533 43,981 39,678 95,060 94,413 Add: BOLI tax equivalent adjustment(1) w 1,291 1,809 1,182 1,178 1,360 3,100 2,317 Total Revenue, excluding BOLI tax equivalent adjustments (tax equivalent) x 474,428 476,510 521,445 527,190 526,206 950,938 957,267 Less: non-interest income adjustments a 9,739 3,882 (12,732) 15,023 16,252 13,621 8,178 Total Adjusted operating revenue, excluding BOLI tax equivalent adjustments (tax equivalent) (non-GAAP) y $484,167 $480,392 $508,713 $542,213 $542,458 $964,559 $965,445 Efficiency ratio(1) h/f 59.02 % 60.57 % 64.81 % 57.82 % 62.60 % 59.80 % 70.30 % Operating efficieny ratio, as adjusted (non-GAAP)(1), (2), (3) u/y 53.56 % 56.97 % 57.31 % 51.26 % 54.04 % 55.26 % 53.51 % (1) Tax-exempt income has been adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation. (2) Non-interest expense adjustments were revised subsequent to the Company's reporting of its earnings results for the period ended December 31, 2023. The revision includes the FDIC special assessment in non-interest expense adjustments, which removes the special assessment from the Company's calculation of operating non-interest expense. The Company views the special assessment as an infrequent expense that is outside the control of the Company. (3) The operating efficiency ratio was adjusted in the first quarter of 2024 to remove B&O taxes and for a tax-equivalent adjustment to BOLI income. The Company views the adjusted operating efficiency ratio as a better representation of its efficiency ratio when compared to other banks as it normalizes for the tax treatment of the adjusted items. The adjustment re-aligns Columbia's calculation of its operating efficiency ratio with its pre-merger calculation.


 
Non-GAAP Reconciliation: Net Interest Income & Net Interest Margin (1) The cumulative fair value discount on historical Columbia loans was established as of February 28, 2023, and the allocation between the credit-related discount and the rate-related discount was established at that time. Our disclosure of credit-related and rate-related discount accretion is an estimate based on the relative allocation of these two items to the discount at the closing of the merger. (2) Tax-exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate. 33 For the Quarter Ended For the Six Months Ended ($ in thousands) 6/30/2024 3/31/2024 12/31/2023 9/30/2023 6/30/2023 6/30/2024 6/30/2023 Net interest income(2) a $428,434 $424,344 $454,730 $482,031 $485,168 $852,778 $860,537 Less: Acquired loan accretion - credit related(1) b 4,835 5,119 5,430 6,370 7,100 9,954 10,906 Net Interest Income, excluding credit PAA(1), (2) c 423,599 419,225 449,300 475,661 478,068 842,824 849,631 Less: Acquired rate-related accretion(1) d 67,375 57,336 63,757 70,900 67,960 124,711 96,199 Adjusted net interest income(1), (2) e $356,224 $361,889 $385,543 $404,761 $410,108 $718,113 $753,432 Average interest-earning assets f $48,117,746 $48,280,787 $47,838,229 $48,981,105 $49,442,518 $48,199,266 $43,283,329 Net interest margin(2) a / f 3.56 % 3.52 % 3.78 % 3.91 % 3.93 % 3.54 % 3.99 % Less: Acquired loan accretion - credit related(1) b / f 0.04 % 0.04 % 0.05 % 0.05 % 0.06 % 0.04 % 0.05 % Net Interest margin, excluding credit PAA(1), (2) c / f 3.52 % 3.48 % 3.73 % 3.86 % 3.87 % 3.50 % 3.94 % Less: Acquired rate-related accretion(1) d / f 0.56 % 0.48 % 0.53 % 0.58 % 0.55 % 0.52 % 0.45 % Adjusted net interest margin(1), (2) e / f 2.96 % 3.00 % 3.20 % 3.28 % 3.32 % 2.98 % 3.49 %