COLUMBIA BANKING SYSTEM, INC. REPORTS FOURTH QUARTER 2025 RESULTS

Rhea-AI Summary

Columbia Banking System (NASDAQ:COLB) reported fourth-quarter 2025 results with net income $215 million and operating net income $243 million; diluted EPS was $0.72 and operating diluted EPS was $0.82. Net interest income rose to $627 million (+$122 million QoQ) and net interest margin improved to 4.06% (+22 bps). Non-interest income was $90 million and non-interest expense was $412 million. Total assets were $66.8 billion, loans $47.8 billion, and deposits $54.2 billion. Estimated total risk-based capital was 13.6% and CET1 11.8%. The company completed its first full quarter including Pacific Premier and repurchased common stock under its plan.

Positive

• Net interest income of $627 million (+$122M QoQ)
• Net interest margin 4.06% (+22 bps QoQ)
• Operating EPS of $0.82
• Estimated total risk-based capital ratio 13.6%

Negative

• Non-interest expense of $412 million (up $19M QoQ)
• Loans declined to $47.8 billion from $48.5B QoQ
• Deposits declined to $54.2 billion from $55.8B QoQ
• Net charge-offs rose to 0.25% of average loans (annualized)

Key Figures

Net income: $215 million Operating net income: $243 million EPS (diluted): $0.72 +5 more

8 metrics

Net income $215 million 4Q25 reported net income

Operating net income $243 million 4Q25 operating net income

EPS (diluted) $0.72 4Q25 earnings per common share - diluted

Operating EPS $0.82 4Q25 operating EPS - diluted

Net interest margin 4.06% 4Q25 NIM vs 3.84% in 3Q25

Net interest income $627 million 4Q25 net interest income vs $505 million in 3Q25

Provision for credit losses $23 million 4Q25 provision vs $70 million in 3Q25

Efficiency ratio 57.30% 4Q25 efficiency ratio vs 67.29% in 3Q25

Market Reality Check

Price: $28.88 Vol: Volume 3,636,834 is 1.85x...

high vol

$28.88 Last Close

Volume Volume 3,636,834 is 1.85x the 20-day average of 1,967,784, signaling elevated interest into the print. high

Technical Shares trade above the 200-day MA at $25.49 and sit only 0.9% below the 52-week high, reflecting a strong pre-existing uptrend.

Peers on Argus

COLB gained 4.76% alongside peers ZION, CBSH, CMA, PNFP, and WTFC, which rose be...

COLB gained 4.76% alongside peers ZION, CBSH, CMA, PNFP, and WTFC, which rose between 1.99% and 5.25%, indicating a sector-wide bid in regional banks.

Common Catalyst Same-day earnings from peer CBSH point to a broader regional bank earnings-season backdrop supporting the move.

Historical Context

5 past events · Latest: Dec 31 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 31	Earnings date set	Neutral	-1.1%	Announced timing of 4Q25 earnings release and investor call.
Nov 14	Dividend increase	Positive	+0.2%	Raised quarterly dividend to $0.37 and highlighted capital return.
Nov 06	Activist presentation	Neutral	-0.4%	HoldCo outlined views and reserved right to pursue proxy actions.
Nov 06	Activist correction	Neutral	-0.4%	Clarified HoldCo presentation details and long-term stance.
Oct 30	CFO transition	Neutral	+3.0%	Announced CFO handover and reiterated Q3 2025 financial results.

Pattern Detected

Recent news flow has been dominated by capital-return actions, activist engagement, and leadership changes, with price reactions generally modestly positive. The stock tended to respond constructively to financial updates and governance announcements, while activist-related disclosures produced only mild downside, suggesting investors were comfortable with the ongoing strategic direction.

Recent Company History

Over the past six months, Columbia announced the timing of its 4Q25 results and call, raised its dividend to $0.37 alongside a $700 million repurchase plan, and navigated engagement with HoldCo Asset Management, which chose not to pursue a 2026 proxy contest. A CFO transition effective Dec 31, 2025 followed the Pacific Premier acquisition. These events frame today’s 4Q25 earnings as part of a broader narrative of integration, capital return, and governance evolution.

Market Pulse Summary

This announcement details a strong 4Q25 finish, with net interest income of $627 million, net intere...

Analysis

This announcement details a strong 4Q25 finish, with net interest income of $627 million, net interest margin at 4.06%, and provision expense down to $23 million. Operating EPS of $0.82 and an efficiency ratio of 57.30% highlight improved profitability as Pacific Premier integration progresses. Historically, earnings updates have tracked the bank’s expansion and merger story. Investors may focus on credit quality metrics, cost-savings realization, and capital ratios like the 13.6% total risk-based capital ratio in upcoming periods.

Key Terms

net interest margin, non-performing assets, allowance for credit losses, available-for-sale securities, +4 more

8 terms

net interest margin financial

"Net interest margin was 4.06%, up 22 basis points from the prior quarter"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

non-performing assets financial

"Non-performing assets to total assets was 0.30%, compared to 0.29%"

Loans or other credit exposures that are not producing expected income because borrowers have stopped making scheduled payments for a significant period (commonly around 90 days). Think of it like a business lending money that has gone quiet — the cash flow stops while the lender still carries the debt on its books. High levels of non-performing assets matter to investors because they reduce a lender’s earnings, tie up capital that could be used for growth, and signal higher risk of future losses.

allowance for credit losses financial

"The allowance for credit losses ("ACL") was $485 million, or 1.02% of loans"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

available-for-sale securities financial

"Available-for-sale securities, which are held on balance sheet at fair value, were $11.1 billion"

Available-for-sale securities are investments in stocks, bonds or similar instruments that a company does not intend to trade frequently but may sell before they mature. They matter to investors because changes in the market value of these holdings show up as paper gains or losses on the company's balance sheet rather than immediately in profit, so they can affect reported net worth and the timing of income without changing day-to-day earnings. Think of them like items on a household shelf you might sell later: their value moves with the market even if you haven’t cashed out.

common equity tier 1 risk-based capital ratio regulatory

"estimated common equity tier 1 risk-based capital ratio of 11.8%"

A measure of a bank’s core capital — mainly common shares and retained earnings — divided by its assets after those assets are adjusted for how risky they are. Think of it like a household emergency fund sized against the value and riskiness of what you own: the larger the cushion, the better the bank can absorb losses. Investors use it to judge a bank’s financial strength, safety, and regulatory soundness, which affects dividends, lending capacity and the chance of government intervention.

total risk-based capital ratio regulatory

"Estimated total risk-based capital ratio of 13.6%"

The total risk-based capital ratio measures a financial firm's cushion against losses by comparing its available capital to its assets after those assets are adjusted for how risky they are. Think of it as the size of a safety net relative to the weight of everything being balanced on it: the bigger the ratio, the more able the firm is to absorb bad outcomes without defaulting or needing help. Investors watch this number because it signals regulatory strength, solvency, and how much room the firm has to pay dividends, lend or grow safely.

mortgage servicing rights financial

"mortgage servicing rights ("MSR") hedging activity, which reflect interest rate fluctuations"

Mortgage servicing rights are the contractual right to collect mortgage payments, manage escrow accounts, handle customer service and delinquency actions on a pool of home loans, in exchange for a portion of the loan’s payments. They matter to investors because their value behaves like a revenue stream that can rise or fall with interest rates and borrower behavior — similar to owning a toll bridge where income depends on traffic volume and maintenance costs — and thus affect a lender’s earnings and risk profile.

accumulated other comprehensive (loss) income financial

"change in accumulated other comprehensive (loss) income ("AOCI") to $(233) million"

Accumulated other comprehensive (loss) income is a running total on a company’s balance sheet that captures certain unrealized gains and losses that are excluded from regular profit and loss, such as currency translation shifts, some investment value changes, and pension plan adjustments. Think of it like value swings recorded in a side ledger for items not yet sold; it matters to investors because large or growing balances can signal hidden volatility or future effects on shareholders’ equity when those unrealized items are settled.

AI-generated analysis. Not financial advice.

TACOMA, Wash., Jan. 22, 2026 /PRNewswire/ --

$215 million		$243 million		$0.72		$0.82
Net income		Operating net income1		Earnings per common share - diluted		Operating earnings per common share - diluted1

 

CEO Commentary

"Our fourth quarter performance marked a strong end to a tremendous year for Columbia, reflecting continued momentum across our businesses and our commitment to consistent, repeatable results," said Clint Stein, President and CEO. "Our operating performance was supported by disciplined balance sheet management, new and expanding customer relationships, and the first full-quarter contribution from Pacific Premier. We remain on track for a seamless systems conversion later this quarter, which will enable us to fully realize deal- related cost savings and achieve a clean expense run rate by the third quarter. Investments made throughout 2025 strengthened our western footprint and enhanced our long-term earnings power, and we entered 2026 with healthy pipelines, solid capital generation, and a clear path to continued operational improvement, all in support of long-term value creation and ongoing capital return to our shareholders."

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

 

4Q25 HIGHLIGHTS (COMPARED TO 3Q25)
Net Interest Income and NIM	• Net interest income increased by $122 million from the prior quarter, due to two additional months operating as a combined company and lower interest expense due to favorable funding mix trends
	• Net interest margin was 4.06%, up 22 basis points from the prior quarter, due to a favorable funding mix shift following the reduction in higher-cost funding sources during the prior quarter. The net interest margin also was impacted by two additional months operating as a combined company in the current period
Non-Interest Income and Expense	• Non-interest income increased by $13 million. Excluding the impact of fair value and hedges,1 non-interest income increased by $16 million, due to two additional months operating as a combined company and an increase in customer fee income
	• Non-interest expense increased by $19 million, due to two additional months operating as a combined company, partially offset by lower merger expense
Credit Quality	• Net charge-offs were 0.25% of average loans and leases (annualized), compared to 0.22% for the prior quarter
	• Provision expense was $23 million, compared to $70 million for the prior quarter, which was driven by the acquisition of Pacific Premier in the prior quarter
	• Non-performing assets to total assets was  0.30%, compared to 0.29% as of September 30, 2025
Capital	• Estimated total risk-based capital ratio of 13.6%  and estimated common equity tier 1 risk-based capital ratio of 11.8%
	• Declared a quarterly cash dividend of $0.37 per common share on November 14, 2025, which was paid December 15, 2025
	• Repurchased $100 million of common stock under our current repurchase plan
Notable Items	• Executed three successful small business and retail campaigns during 2025, generating $1.3 billion in new deposits to the bank during  the year. Our next campaign begins in February

 

4Q25 KEY FINANCIAL DATA
PERFORMANCE METRICS	4Q25		3Q25		4Q24
Return on average assets	1.27 %		0.67 %		1.10 %
Return on average common equity	10.92 %		6.19 %		10.91 %
Return on average tangible common equity1	15.24 %		8.58 %		15.41 %
Operating return on average assets1	1.44 %		1.42 %		1.15 %
Operating return on average common equity1	12.34 %		13.15 %		11.40 %
Operating return on average tangible common equity1	17.22 %		18.24 %		16.11 %
Net interest margin	4.06 %		3.84 %		3.64 %
Efficiency ratio	57.30 %		67.29 %		54.61 %
Operating efficiency ratio, as adjusted 1	51.39 %		52.32 %		52.51 %
INCOME STATEMENT ($ in millions, excl. per share data)	4Q25		3Q25		4Q24
Net interest income	$627		$505		$437
Provision for credit losses	$23		$70		$28
Non-interest income	$90		$77		$50
Non-interest expense	$412		$393		$267
Pre-provision net revenue1	$305		$189		$220
Operating pre-provision net revenue1	$342		$270		$229
Earnings per common share - diluted	$0.72		$0.40		$0.68
Operating earnings per common share - diluted1	$0.82		$0.85		$0.71
Dividends paid per share	$0.37		$0.36		$0.36
BALANCE SHEET ($ in millions, excl. per share data)	4Q25		3Q25		4Q24
Total assets	$66,832		$67,496		$51,576
Loans and leases	$47,776		$48,462		$37,681
Deposits	$54,211		$55,771		$41,721
Book value per common share	$26.54		$26.04		$24.43
Tangible book value per common share1	$19.11		$18.57		$17.20

Organizational Update
Columbia Banking System, Inc. ("Columbia," the "Company," "we," or "our") closed its acquisition of Pacific Premier Bancorp, Inc. ("Pacific Premier") on August 31, 2025, and integration efforts continue to progress smoothly. We remain on track to complete the systems conversion and branch consolidations during the first quarter of 2026. We continue to expect to realize all related cost savings by June 30, 2026.

The Columbia Board of Directors elected Clint Stein, President and Chief Executive Officer, to also serve as Chair of the Board, effective January 22, 2026, as previously announced. Maria Pope, the immediate past Chair of the Board, was also appointed, effective the same date, to serve as Lead Independent Director until the Company's 2026 annual meeting of shareholders. Following the annual meeting, Luis Machuca, the current Chair of the Company's Nominating and Governance Committee, will succeed Ms. Pope as Lead Independent Director. The Board's actions reflect its confidence in Mr. Stein's leadership and are intended to support continuity, accountability, and strong governance as Columbia executes on its long-term strategic priorities. "Clint has demonstrated steady, disciplined leadership and a clear strategic vision for Columbia," said Ms. Pope. "Combining the roles of Chair and CEO at this time will enhance alignment between the Board and management, further strengthening our ability to deliver long-term value for shareholders while remaining firmly committed to strong, independent oversight."

Ivan Seda assumed the role of Executive Vice President, Chief Financial Officer, effective December 31, 2025, as previously announced. Mr. Seda joined Columbia in August 2025 as Executive Vice President, Deputy Chief Financial Officer, supporting a seamless leadership transition. "Ivan's first five months with Columbia have already delivered meaningful contributions, and he has transitioned smoothly into his expanded role," stated Mr. Stein. "Recent strategic actions, including our acquisition of Pacific Premier and ongoing balance sheet optimization, have positioned Columbia for an exciting future. We have the resources, talent, and vision to excel across every market we serve, and I am confident Ivan will play a key role in driving consistent, repeatable performance and long-term value creation for our shareholders."

Net Interest Income
Net interest income was $627 million for the fourth quarter of 2025, up $122 million from the prior quarter. The increase largely reflects the impact of two additional months operating as a combined company in the current period. Lower interest expense due to a favorable shift in Columbia's funding mix during the prior quarter also contributed to the increase, as did an additional $5 million in interest income related to an accelerated loan repayment.

Columbia's net interest margin was 4.06% for the fourth quarter of 2025, up 22 basis points from the third quarter of 2025. Net interest margin benefited from lower funding costs, due to an increase in customer deposits and corresponding reduction in higher-cost funding sources during the third quarter. The net interest margin also was impacted by two additional months operating as a combined company, which includes an 8-basis point benefit related to the amortization of a premium on acquired time deposits, as described in the following paragraph, and a 3-basis point benefit related to an accelerated loan repayment.

The cost of interest-bearing deposits decreased 35 basis points from the prior quarter to 2.08% for the fourth quarter of 2025. The cost of interest-bearing deposits benefited from the amortization of a premium related to Pacific Premier's time deposits, which contributed $12 million to net interest income during the fourth quarter of 2025, compared to $4 million during the third quarter of 2025, favorably impacting deposit rates in each quarter. The premium was fully amortized as of December 31, 2025. Excluding this impact, the cost of interest-bearing deposits was 2.20% for the fourth quarter of 2025, compared to 2.09% for the month of December and 2.06% as of December 31, 2025. The declining cost of deposits reflects our proactive management of deposit rates ahead of and following reductions to the federal fund rates.

Columbia's cost of interest-bearing liabilities decreased 38 basis points from the prior quarter to 2.27% for the fourth quarter of 2025. Excluding the previously discussed premium amortization, the cost of interest-bearing liabilities was 2.38% for the fourth quarter of 2025, compared to 2.28% for both the month of December and as of December 31 2025. Please refer to the Q4 2025 Earnings Presentation for additional net interest margin change details and interest rate sensitivity information.

Non-interest Income
Non-interest income was $90 million for the fourth quarter of 2025, up $13 million from the prior quarter. Quarterly changes in fair value adjustments and mortgage servicing rights ("MSR") hedging activity, which reflect interest rate fluctuations during the quarter, collectively resulted in a net fair value gain of $2 million for the fourth quarter, compared to a net fair value gain of $5 million for the third quarter, as detailed in our non-GAAP disclosures. Excluding these items, non-interest income was $88 million² for the fourth quarter of 2025, up $16 million between periods, as Pacific Premier contributed an additional $13 million to the quarter's run rate. Customer fee income, including swap and international banking revenue, drove the remainder of the increase.

Non-interest Expense
Non-interest expense was $412 million for the fourth quarter of 2025, up $19 million from the prior quarter, as two additional months operating as a combined company more than offset lower merger expense. Excluding merger and restructuring expense, exit and disposal costs, a $5 million reversal of prior FDIC assessment expense, and $4 million of other non-operating expense, as detailed in our non-GAAP disclosures, non-interest expense was $373 million², up $66 million from the prior quarter, as Pacific Premier contributed an additional $62 million to the fourth quarter, as compared to the prior quarter's run rate. The Pacific Premier run rate includes deal-related cost savings. Other miscellaneous expenses, including marketing and software costs, contributed to the increase. Please refer to the Q4 2025 Earnings Presentation for additional expense details.

Balance Sheet
Total consolidated assets were $66.8 billion as of December 31, 2025, compared to $67.5 billion as of September 30, 2025. The decrease reflects balance sheet optimization activity and an accelerated level of loan repayments. Cash and cash equivalents were $2.4 billion as of December 31, 2025, compared to $2.3 billion as of September 30, 2025. Including secured off-balance sheet lines of credit, total available liquidity was $27.9 billion as of December 31, 2025, representing 42% of total assets, 51% of total deposits, and 141% of uninsured deposits. Available-for-sale securities, which are held on balance sheet at fair value, were $11.1 billion as of December 31, 2025, compared to $11.0 billion as of September 30, 2025. The increase is due to the purchase of $246 million of investment securities, partially offset by paydowns. Please refer to the Q4 2025 Earnings Presentation for additional details related to our securities portfolio and liquidity position.

Gross loans and leases were $47.8 billion as of December 31, 2025, compared to $48.5 billion as of September 30, 2025. The decrease reflects continued run-off in commercial development and below-market-rate transactional loans, as well as the sale of $45 million in acquired loans risk rated special mention. Commercial loans increased by 6% on an annualized basis relative to September 30, 2025, partially offsetting contraction in other portfolios. "Our ability to generate relationship-based commercial business was strengthened by the addition of bankers from Pacific Premier," commented Tory Nixon, President of Columbia Bank. "Loan origination volume increased 17% from the prior quarter, and full-year 2025 volume was up 22% compared to 2024, resulting in strong commercial loan growth, offset by the intentional reduction in transactional loan balances and elevated prepayment activity during the fourth quarter." Please refer to the Q4 2025 Earnings Presentation for additional details related to our loan portfolio, which include underwriting characteristics, the composition of our commercial portfolios, and disclosure related to transactional loans.

Total deposits were $54.2 billion as of December 31, 2025, compared to $55.8 billion as of September 30, 2025. The decrease reflects an intentional reduction in brokered and select public deposits, as alternative funding sources offered a more attractive interest rate. Seasonal reductions in customer deposit balances also contributed to the quarter's decline. "Momentum from the third quarter's exceptional customer deposit growth carried into the fourth quarter," stated Mr. Nixon. "However, balances followed seasonal norms in December, declining in the latter part of the month, due to company distributions, tax payments, and other year-end payouts." We utilized borrowings, which were $3.2 billion as of December 31, 2025, compared to $2.3 billion as of September 30, 2025, to supplement funding needs. Please refer to the Q4 2025 Earnings Presentation for additional details related to deposit characteristics and flows.

Credit Quality
The allowance for credit losses ("ACL") was $485 million, or 1.02% of loans and leases, as of December 31, 2025, compared to $492 million, or 1.01% of loans and leases, as of September 30, 2025. The provision for credit losses was $23 million for the fourth quarter of 2025 and reflects loan portfolio runoff, credit migration trends, charge-off activity, and changes in the economic forecasts used in credit models.

Net charge-offs were 0.25% of average loans and leases (annualized) for the fourth quarter of 2025, compared to 0.22% for the third quarter of 2025. Net charge-offs in the FinPac portfolio were $14 million in the fourth quarter, compared to $16 million in the third quarter. Net charge-offs excluding the FinPac portfolio were $16 million in the fourth quarter, compared to $6 million in the third quarter. Non-performing assets were $200 million, or 0.30% of total assets, as of December 31, 2025, compared to $199 million, or 0.29% of total assets, as of September 30, 2025. Please refer to the Q4 2025 Earnings Presentation for additional details related to the allowance for credit losses and other credit trends.

Capital
Columbia's book value per common share was $26.54 as of December 31, 2025, compared to $26.04 as of September 30, 2025. During the fourth quarter, Columbia repurchased 3.7 million common shares under its current repurchase plan at an average price of $27.07. Book value was also impacted by a favorable change in accumulated other comprehensive (loss) income ("AOCI") to $(233) million as of December 31, 2025, compared to $(268) million as of the prior quarter-end. The change in AOCI is due primarily to a decrease in the tax-effected net unrealized loss on available-for-sale securities to $199 million as of December 31, 2025, compared to $240 million as of September 30, 2025. Tangible book value per common share³ was $19.11 as of December 31, 2025, compared to $18.57 as of September 30, 2025.

Columbia's estimated total risk-based capital ratio was 13.6% and its estimated common equity tier 1 risk-based capital ratio was 11.8% as of December 31, 2025, compared to 13.4% and 11.6%, respectively, as of September 30, 2025. Columbia remains above current "well-capitalized" regulatory minimums. The regulatory capital ratios as of December 31, 2025 are estimates, pending completion and filing of Columbia's regulatory reports. 

Earnings Presentation and Conference Call Information
Columbia's Q4 2025 Earnings Presentation provides additional disclosure. A copy will be available on our investor relations page: www.columbiabankingsystem.com.

Columbia will host its fourth quarter 2025 earnings conference call on January 22, 2025 at 2:00 p.m. PT (5:00 p.m. ET). During the call, Columbia's management will provide an update on recent activities and discuss its fourth quarter 2025 financial results. Participants may join the audiocast or register for the call using the link below to receive dial-in details and their own unique PINs. It is recommended you join 10 minutes prior to the start time.

Join the audiocast: https://edge.media-server.com/mmc/p/r4vb6kw9/
Register for the call: https://register-conf.media-server.com/register/BIea441cbeb5cf482194e96ffe3b448071
Access the replay through Columbia's investor relations page: https://www.columbiabankingsystem.com/news-market-data/event-calendar/default.aspx

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

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

TABLE INDEX
	Page
Consolidated Statements of Income	8
Consolidated Balance Sheets	9
Financial Highlights	11
Loan & Lease Portfolio Balances and Mix	12
Deposit Portfolio Balances and Mix	14
Credit Quality - Non-performing Assets	15
Credit Quality - Allowance for Credit Losses	16
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates	18
Residential Mortgage Banking Activity	20
GAAP to Non-GAAP Reconciliation	22

 

Columbia Banking System, Inc.
Consolidated Statements of Income
(Unaudited)
	Quarter Ended										% Change
($ in millions, shares in thousands)	Dec 31, 2025		Sep 30, 2025		Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Seq Quarter		Year over Year
Interest income:
Loans and leases	$            722		$            619		$            564		$            553		$            572		17 %		26 %
Interest and dividends on investments:
Taxable	102		89		80		69		75		15 %		36 %
Exempt from federal income tax	12		8		7		7		7		50 %		71 %
Dividends	3		4		3		3		3		(25) %		— %
Temporary investments and interest bearing deposits	19		20		16		16		19		(5) %		— %
Total interest income	858		740		670		648		676		16 %		27 %
Interest expense:
Deposits	195		195		180		177		189		— %		3 %
Securities sold under agreement to repurchase and federal funds purchased	1		1		1		1		1		— %		— %
Borrowings	27		30		35		36		40		(10) %		(33) %
Junior and other subordinated debentures	8		9		8		9		9		(11) %		(11) %
Total interest expense	231		235		224		223		239		(2) %		(3) %
Net interest income	627		505		446		425		437		24 %		43 %
Provision for credit losses	23		70		30		27		28		(67) %		(18) %
Non-interest income:
Service charges on deposits	24		21		20		19		18		14 %		33 %
Card-based fees	16		15		14		13		15		7 %		7 %
Financial services and trust revenue	15		9		6		5		5		67 %		200 %
Residential mortgage banking revenue, net	7		7		8		9		7		— %		— %
Gain (loss) on investment securities, net	2		2		—		2		(1)		— %		nm
Gain (loss) on loan and lease sales, net	1		—		—		—		(2)		nm		nm
Gain (loss) on loans held for investment, at fair value	—		4		—		7		(7)		(100) %		nm
BOLI income	9		6		5		5		5		50 %		80 %
Other income	16		13		12		6		10		23 %		60 %
Total non-interest income	90		77		65		66		50		17 %		80 %
Non-interest expense:
Salaries and employee benefits	201		171		155		145		142		18 %		42 %
Occupancy and equipment, net	67		54		47		48		47		24 %		43 %
Intangible amortization	42		31		26		28		29		35 %		45 %
FDIC assessments	4		8		8		8		8		(50) %		(50) %
Merger and restructuring expense	39		87		8		14		2		(55) %		nm
Legal settlement	—		—		—		55		—		nm		nm
Other expenses	59		42		34		42		39		40 %		51 %
Total non-interest expense	412		393		278		340		267		5 %		54 %
Income before provision for income taxes	282		119		203		124		192		137 %		47 %
Provision for income taxes	67		23		51		37		49		191 %		37 %
Net income	$            215		$              96		$            152		$              87		$            143		124 %		50 %
Weighted average basic shares outstanding (in thousands)	295,376		237,838		209,125		208,800		208,548		24 %		42 %
Weighted average diluted shares outstanding (in thousands)	296,760		238,925		209,975		210,023		209,889		24 %		41 %
Earnings per common share – basic	$           0.72		$           0.40		$           0.73		$           0.41		$           0.69		80 %		4 %
Earnings per common share – diluted	$           0.72		$           0.40		$           0.73		$           0.41		$           0.68		80 %		6 %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

 

Columbia Banking System, Inc.
Consolidated Statements of Income
(Unaudited)
		Year Ended				% Change
($ in millions, shares in thousands)		Dec 31, 2025		Dec 31, 2024		Year over Year
Interest income:
Loans and leases		$               2,458		$               2,320		6 %
Interest and dividends on investments:
Taxable		340		305		11 %
Exempt from federal income tax		34		28		21 %
Dividends		13		12		8 %
Temporary investments and interest bearing deposits		71		90		(21) %
Total interest income		2,916		2,755		6 %
Interest expense:
Deposits		747		803		(7) %
Securities sold under agreement to repurchase and federal funds purchased		4		5		(20) %
Borrowings		128		190		(33) %
Junior and other subordinated debentures		34		39		(13) %
Total interest expense		913		1,037		(12) %
Net interest income		2,003		1,718		17 %
Provision for credit losses		150		106		42 %
Non-interest income:
Service charges on deposits		84		72		17 %
Card-based fees		58		57		2 %
Financial services and trust revenue		35		20		75 %
Residential mortgage banking revenue, net		31		24		29 %
Gain on investment securities, net		6		—		nm
Gain (loss) on loan and lease sales, net		1		(3)		nm
Gain (loss) on loans held for investment, at fair value		11		(10)		nm
BOLI income		25		19		32 %
Other income		47		32		47 %
Total non-interest income		298		211		41 %
Non-interest expense:
Salaries and employee benefits		672		589		14 %
Occupancy and equipment, net		216		182		19 %
Intangible amortization		127		119		7 %
FDIC assessments		28		42		(33) %
Merger and restructuring expense		148		24		nm
Legal settlement		55		—		nm
Other expenses		177		148		20 %
Total non-interest expense		1,423		1,104		29 %
Income before provision for income taxes		728		719		1 %
Provision for income taxes		178		185		(4) %
Net income		$                  550		$                  534		3 %
Weighted average basic shares outstanding (in thousands)		238,022		208,463		14 %
Weighted average diluted shares outstanding (in thousands)		239,121		209,337		14 %
Earnings per common share – basic		$                 2.31		$                 2.56		(10) %
Earnings per common share – diluted		$                 2.30		$                 2.55		(10) %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

 

Columbia Banking System, Inc.
Consolidated Balance Sheets
(Unaudited)
											% Change
($ in millions, shares in thousands)	Dec 31, 2025		Sep 30, 2025		Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Seq Quarter		Year over Year
Assets:
Cash and due from banks	$               511		$               535		$               608		$               591		$               497		(4) %		3 %
Interest-bearing cash and temporary investments	1,869		1,808		1,334		1,481		1,381		3 %		35 %
Investment securities:
Equity and other, at fair value	113		112		93		92		78		1 %		45 %
Available for sale, at fair value	11,112		11,013		8,653		8,229		8,275		1 %		34 %
Held to maturity, at amortized cost	18		18		2		2		2		— %		nm
Loans held for sale	262		340		66		65		72		(23) %		264 %
Loans and leases	47,776		48,462		37,637		37,616		37,681		(1) %		27 %
Allowance for credit losses on loans and leases	(466)		(473)		(421)		(421)		(425)		(1) %		10 %
Net loans and leases	47,310		47,989		37,216		37,195		37,256		(1) %		27 %
Restricted equity securities	159		119		161		125		150		34 %		6 %
Premises and equipment, net	422		416		357		345		349		1 %		21 %
Goodwill	1,482		1,481		1,029		1,029		1,029		— %		44 %
Other intangible assets, net	712		754		430		456		484		(6) %		47 %
Bank-owned life insurance	1,218		1,199		705		701		694		2 %		76 %
Other assets	1,644		1,712		1,247		1,208		1,309		(4) %		26 %
Total assets	$          66,832		$          67,496		$          51,901		$          51,519		$          51,576		(1) %		30 %
Liabilities:
Deposits
Non-interest-bearing	$          17,419		$          17,810		$          13,220		$          13,414		$          13,308		(2) %		31 %
Interest-bearing	36,792		37,961		28,523		28,804		28,413		(3) %		29 %
Total deposits	54,211		55,771		41,743		42,218		41,721		(3) %		30 %
Securities sold under agreements to repurchase	207		167		191		192		237		24 %		(13) %
Borrowings	3,200		2,300		3,350		2,550		3,100		39 %		3 %
Junior subordinated debentures, at fair value	338		331		323		321		331		2 %		2 %
Junior and other subordinated debentures, at amortized cost	97		107		108		108		108		(9) %		(10) %
Other liabilities	939		1,030		844		892		961		(9) %		(2) %
Total liabilities	58,992		59,706		46,559		46,281		46,458		(1) %		27 %
Shareholders' equity:
Common stock	8,099		8,189		5,826		5,823		5,817		(1) %		39 %
Accumulated deficit	(26)		(131)		(151)		(227)		(237)		(80) %		(89) %
Accumulated other comprehensive loss	(233)		(268)		(333)		(358)		(462)		(13) %		(50) %
Total shareholders' equity	7,840		7,790		5,342		5,238		5,118		1 %		53 %
Total liabilities and shareholders' equity	$          66,832		$          67,496		$          51,901		$          51,519		$          51,576		(1) %		30 %
Common shares outstanding at period end (in thousands)	295,422		299,147		210,213		210,112		209,536		(1) %		41 %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

 

Columbia Banking System, Inc.
Financial Highlights
(Unaudited)
		Quarter Ended										% Change
		Dec 31, 2025		Sep 30, 2025		Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Seq. Quarter		Year over Year
Per Common Share Data:
Dividends		$    0.37		$    0.36		$    0.36		$    0.36		$    0.36		3 %		3 %
Book value		$  26.54		$  26.04		$  25.41		$  24.93		$  24.43		2 %		9 %
Tangible book value (1)		$  19.11		$  18.57		$  18.47		$  17.86		$  17.20		3 %		11 %
Performance Ratios:
Efficiency ratio (2)		57.30 %		67.29 %		54.29 %		69.06 %		54.61 %		(9.99)		2.69
Non-interest expense to average assets (1)		2.44 %		2.74 %		2.16 %		2.68 %		2.06 %		(0.30)		0.38
Return on average assets ("ROAA")		1.27 %		0.67 %		1.19 %		0.68 %		1.10 %		0.60		0.17
Pre-provision net revenue ("PPNR") ROAA (1)		1.80 %		1.32 %		1.81 %		1.19 %		1.70 %		0.48		0.10
Return on average common equity		10.92 %		6.19 %		11.56 %		6.73 %		10.91 %		4.73		0.01
Return on average tangible common equity (1)		15.24 %		8.58 %		16.03 %		9.45 %		15.41 %		6.66		(0.17)
Performance Ratios - Operating:(1)
Operating efficiency ratio, as adjusted (1),(2)		51.39 %		52.32 %		51.79 %		55.11 %		52.51 %		(0.93)		(1.12)
Operating non-interest expense to average assets (1)		2.20 %		2.14 %		2.10 %		2.13 %		2.03 %		0.06		0.17
Operating ROAA (1)		1.44 %		1.42 %		1.25 %		1.10 %		1.15 %		0.02		0.29
Operating PPNR ROAA (1)		2.02 %		1.89 %		1.88 %		1.67 %		1.77 %		0.13		0.25
Operating return on average common equity (1)		12.34 %		13.15 %		12.16 %		10.87 %		11.40 %		(0.81)		0.94
Operating return on average tangible common equity (1)		17.22 %		18.24 %		16.85 %		15.26 %		16.11 %		(1.02)		1.11
Average Balance Sheet Yields, Rates, & Ratios:
Yield on loans and leases		5.92 %		5.96 %		6.00 %		5.92 %		6.05 %		(0.04)		(0.13)
Yield on earning assets (2)		5.55 %		5.62 %		5.62 %		5.49 %		5.63 %		(0.07)		(0.08)
Cost of interest bearing deposits		2.08 %		2.43 %		2.52 %		2.52 %		2.66 %		(0.35)		(0.58)
Cost of interest bearing liabilities		2.27 %		2.65 %		2.78 %		2.80 %		2.98 %		(0.38)		(0.71)
Cost of total deposits		1.40 %		1.66 %		1.73 %		1.72 %		1.80 %		(0.26)		(0.40)
Cost of total funding (3)		1.57 %		1.87 %		1.98 %		1.99 %		2.09 %		(0.30)		(0.52)
Net interest margin (2)		4.06 %		3.84 %		3.75 %		3.60 %		3.64 %		0.22		0.42
Average interest bearing cash / Average interest earning assets		3.12 %		3.41 %		2.97 %		3.13 %		3.29 %		(0.29)		(0.17)
Average loans and leases / Average interest earning assets		78.12 %		78.39 %		78.64 %		78.93 %		78.42 %		(0.27)		(0.30)
Average loans and leases / Average total deposits		87.34 %		88.39 %		90.07 %		90.36 %		89.77 %		(1.05)		(2.43)
Average non-interest bearing deposits / Average total deposits		32.45 %		31.41 %		31.39 %		31.75 %		32.45 %		1.04		—
Average total deposits / Average total funding (3)		94.52 %		93.47 %		91.92 %		91.86 %		91.88 %		1.05		2.64
Select Credit & Capital Ratios:
Non-performing loans and leases to total loans and leases		0.41 %		0.40 %		0.47 %		0.47 %		0.44 %		0.01		(0.03)
Non-performing assets to total assets		0.30 %		0.29 %		0.35 %		0.35 %		0.33 %		0.01		(0.03)
Allowance for credit losses to loans and leases		1.02 %		1.01 %		1.17 %		1.17 %		1.17 %		0.01		(0.15)
Total risk-based capital ratio (4)		13.6 %		13.4 %		13.0 %		12.9 %		12.8 %		0.20		0.80
Common equity tier 1 risk-based capital ratio (4)		11.8 %		11.6 %		10.8 %		10.6 %		10.5 %		0.20		1.30

(1)	See GAAP to Non-GAAP Reconciliation.
(2)	Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate.
(3)	Total funding = total deposits + total borrowings.
(4)	Estimated holding company ratios.

 

Columbia Banking System, Inc.
Financial Highlights
(Unaudited)
		Year Ended				% Change
		Dec 31, 2025		Dec 31, 2024		Year over Year
Per Common Share Data:
Dividends		$             1.45		$             1.44		0.69 %
Performance Ratios:
Efficiency ratio (2)		61.68 %		57.14 %		4.54
Non-interest expense to average assets (1)		2.51 %		2.13 %		0.38
Return on average assets		0.97 %		1.03 %		(0.06)
PPNR ROAA (1)		1.55 %		1.59 %		(0.04)
Return on average common equity		8.98 %		10.55 %		(1.57)
Return on average tangible common equity (1)		12.51 %		15.31 %		(2.80)
Performance Ratios - Operating:(1)
Operating efficiency ratio, as adjusted (1),(2)		52.54 %		54.22 %		(1.68)
Operating non-interest expense to average assets (1)		2.15 %		2.06 %		0.09
Operating ROAA (1)		1.31 %		1.09 %		0.22
Operating PPNR ROAA (1)		1.88 %		1.68 %		0.20
Operating return on average common equity (1)		12.18 %		11.23 %		0.95
Operating return on average tangible common equity (1)		16.97 %		16.30 %		0.67
Average Balance Sheet Yields, Rates, & Ratios:
Yield on loans and leases		5.95 %		6.15 %		(0.20)
Yield on earning assets (2)		5.57 %		5.73 %		(0.16)
Cost of interest bearing deposits		2.36 %		2.87 %		(0.51)
Cost of interest bearing liabilities		2.61 %		3.21 %		(0.60)
Cost of total deposits		1.61 %		1.93 %		(0.32)
Cost of total funding (3)		1.83 %		2.26 %		(0.43)
Net interest margin (2)		3.83 %		3.57 %		0.26
Average interest bearing cash / Average interest earning assets		3.16 %		3.53 %		(0.37)
Average loans and leases / Average interest earning assets		78.49 %		78.12 %		0.37
Average loans and leases / Average total deposits		88.89 %		90.30 %		(1.41)
Average non-interest bearing deposits / Average total deposits		31.79 %		32.70 %		(0.91)
Average total deposits / Average total funding (3)		93.07 %		90.59 %		2.48

(1)	See GAAP to Non-GAAP Reconciliation.
(2)	Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate.
(3)	Total funding = Total deposits + Total borrowings.

 

Columbia Banking System, Inc.
Loan & Lease Portfolio Balances and Mix
(Unaudited)
	Dec 31, 2025		Sep 30, 2025		Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		% Change
($ in millions)	Amount		Amount		Amount		Amount		Amount		Seq. Quarter		Year over Year
Loans and leases:
Commercial real estate:
Non-owner occupied term	$         8,206		$         8,444		$         6,190		$         6,179		$         6,278		(3) %		31 %
Owner occupied term	7,314		7,361		5,320		5,303		5,270		(1) %		39 %
Multifamily	10,281		10,377		5,735		5,831		5,804		(1) %		77 %
Construction & development	1,707		2,071		2,070		2,071		1,983		(18) %		(14) %
Residential development	362		367		286		252		232		(1) %		56 %
Commercial:
Term	6,713		6,590		5,353		5,490		5,538		2 %		21 %
Lines of credit & other	3,643		3,582		2,951		2,754		2,770		2 %		32 %
Leases & equipment finance	1,599		1,614		1,641		1,644		1,661		(1) %		(4) %
Residential:
Mortgage	5,624		5,722		5,830		5,878		5,933		(2) %		(5) %
Home equity loans & lines	2,149		2,153		2,083		2,039		2,032		— %		6 %
Consumer & other	178		181		178		175		180		(2) %		(1) %
Total loans and leases, net of deferred fees and costs	$       47,776		$       48,462		$       37,637		$       37,616		$       37,681		(1) %		27 %
Loans and leases mix:
Commercial real estate:
Non-owner occupied term	17 %		18 %		16 %		16 %		17 %
Owner occupied term	15 %		15 %		14 %		14 %		14 %
Multifamily	22 %		21 %		15 %		15 %		15 %
Construction & development	4 %		4 %		6 %		6 %		5 %
Residential development	1 %		1 %		1 %		1 %		1 %
Commercial:
Term	14 %		14 %		14 %		15 %		15 %
Lines of credit & other	8 %		7 %		8 %		7 %		7 %
Leases & equipment finance	3 %		3 %		4 %		4 %		4 %
Residential:
Mortgage	12 %		12 %		15 %		16 %		16 %
Home equity loans & lines	4 %		4 %		6 %		5 %		5 %
Consumer & other	— %		1 %		1 %		1 %		1 %
Total	100 %		100 %		100 %		100 %		100 %

 

Columbia Banking System, Inc.
Deposit Portfolio Balances and Mix
(Unaudited)
	Dec 31, 2025		Sep 30, 2025		Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		% Change
($ in millions)	Amount		Amount		Amount		Amount		Amount		Seq. Quarter		Year over Year
Deposits:
Demand, non-interest bearing	$       17,419		$       17,810		$       13,220		$       13,414		$       13,308		(2) %		31 %
Demand, interest bearing	10,763		11,675		8,335		8,494		8,476		(8) %		27 %
Money market	17,013		16,816		11,694		11,971		11,475		1 %		48 %
Savings	2,442		2,504		2,276		2,337		2,360		(2) %		3 %
Time	6,574		6,966		6,218		6,002		6,102		(6) %		8 %
Total	$       54,211		$       55,771		$       41,743		$       42,218		$       41,721		(3) %		30 %
Total core deposits (1)	$       50,174		$       51,535		$       37,294		$       38,079		$       37,488		(3) %		34 %
Deposit mix:
Demand, non-interest bearing	32 %		32 %		32 %		32 %		32 %
Demand, interest bearing	20 %		21 %		20 %		20 %		20 %
Money market	31 %		30 %		28 %		28 %		27 %
Savings	5 %		5 %		5 %		6 %		6 %
Time	12 %		12 %		15 %		14 %		15 %
Total	100 %		100 %		100 %		100 %		100 %

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

 

Columbia Banking System, Inc.
Credit Quality – Non-performing Assets
(Unaudited)
		Quarter Ended										% Change
($ in millions)		Dec 31, 2025		Sep 30, 2025		Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Seq. Quarter		Year over Year
Non-performing assets: (1)
Loans and leases on non-accrual status:
	Commercial real estate	$          50		$          53		$          31		$          42		$          39		(6) %		28 %
	Commercial	66		67		67		80		57		(1) %		16 %
	Total loans and leases on non-accrual status	116		120		98		122		96		(3) %		21 %
Loans and leases past due 90+ days and accruing: (2)
	Commercial real estate	2		—		—		—		—		nm		nm
	Commercial	8		5		5		—		5		60 %		60 %
	Residential (2)	72		71		74		53		66		1 %		9 %
	Total loans and leases past due 90+ days and accruing (2)	82		76		79		53		71		8 %		15 %
Total non-performing loans and leases (1), (2)		198		196		177		175		167		1 %		19 %
Other real estate owned		2		3		3		3		3		(33) %		(33) %
Total non-performing assets (1), (2)		$        200		$        199		$        180		$        178		$        170		1 %		18 %
Loans and leases past due 31-89 days		$          94		$          85		$        142		$        158		$        105		11 %		(10) %
Loans and leases past due 31-89 days to total loans and leases		0.20 %		0.18 %		0.38 %		0.42 %		0.28 %		0.02		(0.08)
Non-performing loans and leases to total loans and leases (1), (2)		0.41 %		0.40 %		0.47 %		0.47 %		0.44 %		0.01		(0.03)
Non-performing assets to total assets (1), (2)		0.30 %		0.29 %		0.35 %		0.35 %		0.33 %		0.01		(0.03)
Non-accrual loans and leases to total loan and leases (2)		0.24 %		0.25 %		0.26 %		0.33 %		0.26 %		(0.01)		(0.02)
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 $79 million, $70 million, $68 million, $67 million, and $74 million at December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024, respectively.
(2)	Excludes certain mortgage loans guaranteed by GNMA, which Columbia has the unilateral right to repurchase but has not done so, totaling $3 million, $2 million, $2 million, $3 million, and $2 million at December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024, respectively.

 

Columbia Banking System, Inc.
Credit Quality – Allowance for Credit Losses
(Unaudited)
		Quarter Ended										% Change
($ in millions)		Dec 31, 2025		Sep 30, 2025		Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Seq. Quarter		Year over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period		$         473		$         421		$         421		$         425		$         420		12 %		13 %
Initial ACL recorded for PCD loans acquired during the period		—		5		—		—		—		(100) %		nm
Provision for credit losses on loans and leases		23		69		29		26		30		(67) %		(23) %
Charge-offs
	Commercial real estate	(8)		(3)		—		—		(3)		167 %		167 %
	Commercial	(23)		(22)		(33)		(33)		(26)		5 %		(12) %
	Residential	(1)		—		—		(1)		—		nm		nm
	Consumer & other	(1)		(2)		(1)		(1)		(1)		(50) %		0 %
	Total charge-offs	(33)		(27)		(34)		(35)		(30)		22 %		10 %
Recoveries
	Commercial	3		4		5		4		4		(25) %		(25) %
	Consumer & other	—		1		—		1		1		(100) %		(100) %
	Total recoveries	3		5		5		5		5		(40) %		(40) %
Net (charge-offs) recoveries
	Commercial real estate	(8)		(3)		—		—		(3)		167 %		167 %
	Commercial	(20)		(18)		(28)		(29)		(22)		11 %		(9) %
	Residential	(1)		—		—		(1)		—		nm		nm
	Consumer & other	(1)		(1)		(1)		—		—		0 %		nm
	Total net charge-offs	(30)		(22)		(29)		(30)		(25)		36 %		20 %
Balance, end of period		$         466		$         473		$         421		$         421		$         425		(1) %		10 %
Reserve for unfunded commitments
Balance, beginning of period		$           19		$           18		$           17		$           16		$           18		6 %		6 %
Provision (recapture) for credit losses on unfunded commitments		—		1		1		1		(2)		(100) %		nm
Balance, end of period		19		19		18		17		16		0 %		19 %
Total Allowance for credit losses (ACL)		$         485		$         492		$         439		$         438		$         441		(1) %		10 %
Net charge-offs to average loans and leases (annualized)		0.25 %		0.22 %		0.31 %		0.32 %		0.27 %		0.03		(0.02)
Recoveries to gross charge-offs		9.09 %		18.52 %		15.19 %		14.05 %		15.23 %		(9.43)		(6.14)
ACLLL to loans and leases		0.98 %		0.98 %		1.12 %		1.12 %		1.13 %		—		(0.15)
ACL to loans and leases		1.02 %		1.01 %		1.17 %		1.17 %		1.17 %		0.01		(0.15)
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

 

Columbia Banking System, Inc.
Credit Quality – Allowance for Credit Losses
(Unaudited)
			Year Ended				% Change
($ in millions)			Dec 31, 2025		Dec 31, 2024		Year over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period			$               425		$               441		(4) %
Initial ACL recorded for PCD loans acquired during the period			5		—		nm
Provision for credit losses on loans and leases			147		113		30 %
Charge-offs
	Commercial real estate		(11)		(4)		175 %
	Commercial		(111)		(139)		(20) %
	Residential		(2)		(2)		0 %
	Consumer & other		(5)		(6)		(17) %
	Total charge-offs		(129)		(151)		(15) %
Recoveries
	Commercial real estate		—		1		(100) %
	Commercial		16		18		(11) %
	Residential		—		1		(100) %
	Consumer & other		2		2		0 %
	Total recoveries		18		22		(18) %
Net (charge-offs) recoveries
	Commercial real estate		(11)		(3)		267 %
	Commercial		(95)		(121)		(21) %
	Residential		(2)		(1)		100 %
	Consumer & other		(3)		(4)		(25) %
	Total net charge-offs		(111)		(129)		(14) %
Balance, end of period			$               466		$               425		10 %
Reserve for unfunded commitments
Balance, beginning of period			$                 16		$                 23		(30) %
Provision (recapture) for credit losses on unfunded commitments			3		(7)		nm
Balance, end of period			19		16		19 %
Total Allowance for credit losses (ACL)			$               485		$               441		10 %
Net charge-offs to average loans and leases (annualized)			0.27 %		0.34 %		(0.07)
Recoveries to gross charge-offs			13.95 %		14.54 %		(0.59)
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

 

Columbia Banking System, Inc.
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates
(Unaudited)
	Quarter Ended
	December 31, 2025						September 30, 2025						December 31, 2024
($ in millions)	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	$            306		$           5		5.51 %		$              80		$           1		7.14 %		$              77		$           1		6.35 %
Loans and leases (1)	48,186		717		5.92 %		41,164		618		5.96 %		37,539		571		6.05 %
Taxable securities	9,996		105		4.23 %		8,523		93		4.35 %		7,851		78		3.97 %
Non-taxable securities (2)	1,268		14		4.53 %		950		10		4.26 %		831		8		3.80 %
Temporary investments and interest-bearing cash	1,923		19		3.82 %		1,793		20		4.40 %		1,573		19		4.80 %
Total interest-earning assets (1), (2)	61,679		$       860		5.55 %		52,510		$       742		5.62 %		47,871		$       677		5.63 %
Goodwill and other intangible assets	2,217						1,719						1,528
Other assets	3,218						2,594						2,189
Total assets	$       67,114						$       56,823						$       51,588
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$       11,052		$         51		1.81 %		$         9,630		$         53		2.17 %		$         8,563		$         52		2.43 %
Money market deposits	17,010		94		2.22 %		13,476		83		2.46 %		11,441		73		2.53 %
Savings deposits	2,463		1		0.12 %		2,358		1		0.16 %		2,393		1		0.11 %
Time deposits	6,741		49		2.88 %		6,481		58		3.57 %		5,849		63		4.30 %
Total interest-bearing deposits	37,266		195		2.08 %		31,945		195		2.43 %		28,246		189		2.66 %
Repurchase agreements and federal funds purchased	184		1		2.16 %		176		1		2.15 %		198		1		1.95 %
Borrowings	2,581		27		4.20 %		2,648		30		4.54 %		3,076		40		5.16 %
Junior and other subordinated debentures	436		8		7.53 %		430		9		7.99 %		420		9		8.81 %
Total interest-bearing liabilities	40,467		$       231		2.27 %		35,199		$       235		2.65 %		31,940		$       239		2.98 %
Non-interest-bearing deposits	17,902						14,627						13,569
Other liabilities	931						840						853
Total liabilities	59,300						50,666						46,362
Common equity	7,814						6,157						5,226
Total liabilities and shareholders' equity	$       67,114						$       56,823						$       51,588
NET INTEREST INCOME (2)			$       629						$       507						$       438
NET INTEREST SPREAD (2)					3.28 %						2.97 %						2.65 %
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)					4.06 %						3.84 %						3.64 %

(1)	Non-accrual loans and leases are included in the average balance.
(2)	Tax-exempt income was adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $2 million for the three months ended December 31, 2025, as compared to $2 million for the three months ended September 30, 2025 and $1 million for the three months ended December 31, 2024.

 

Columbia Banking System, Inc.
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates
(Unaudited)
	Year Ended
	December 31, 2025						December 31, 2024
($ in millions)	Average Balance		Interest Income or Expense		Average Yields or Rates		Average Balance		Interest Income or Expense		Average Yields or Rates
INTEREST-EARNING ASSETS:
Loans held for sale	$               129		$               8		5.98 %		$              69		$               4		6.50 %
Loans and leases (1)	41,198		2,450		5.95 %		37,585		2,316		6.15 %
Taxable securities	8,543		353		4.14 %		7,929		317		4.00 %
Non-taxable securities (2)	960		40		4.20 %		834		32		3.78 %
Temporary investments and interest-bearing cash	1,659		71		4.26 %		1,696		90		5.32 %
Total interest-earning assets (1), (2)	52,489		$        2,922		5.57 %		48,113		$        2,759		5.73 %
Goodwill and other intangible assets	1,729						1,574
Other assets	2,561						2,228
Total assets	$          56,779						$       51,915
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$            9,391		$           198		2.11 %		$         8,266		$           215		2.60 %
Money market deposits	13,483		319		2.37 %		10,998		300		2.73 %
Savings deposits	2,365		3		0.13 %		2,529		3		0.13 %
Time deposits	6,373		227		3.56 %		6,220		285		4.58 %
Total interest-bearing deposits	31,612		747		2.36 %		28,013		803		2.87 %
Repurchase agreements and federal funds purchased	190		4		2.11 %		212		5		2.30 %
Borrowings	2,830		128		4.53 %		3,692		190		5.15 %
Junior and other subordinated debentures	433		34		7.87 %		419		39		9.28 %
Total interest-bearing liabilities	35,065		$           913		2.61 %		32,336		$        1,037		3.21 %
Non-interest-bearing deposits	14,735						13,609
Other liabilities	853						910
Total liabilities	50,653						46,855
Common equity	6,126						5,060
Total liabilities and shareholders' equity	$          56,779						$       51,915
NET INTEREST INCOME (2)			$        2,009						$        1,722
NET INTEREST SPREAD (2)					2.96 %						2.52 %
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)					3.83 %						3.57 %

(1)	Non-accrual loans and leases are included in the average balance.
(2)	Tax-exempt income was adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $6 million for the year ended December 31, 2025, as compared to $4 million for the year ended December 31, 2024.

 

Columbia Banking System, Inc.
Residential Mortgage Banking Activity
(Unaudited)
	Quarter Ended										%
($ in millions)	Dec 31, 2025		Sep 30, 2025		Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Seq. Quarter		Year over Year
Residential mortgage banking revenue:
Origination and sale	$             5		$             5		$             5		$             4		$             5		— %		— %
Servicing	6		5		6		6		6		20 %		— %
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time	(3)		(3)		(3)		(3)		(3)		— %		— %
Changes due to valuation inputs or assumptions	(1)		—		(2)		(1)		7		nm		(114) %
MSR hedge gain (loss)	—		—		2		3		(8)		nm		nm
Total	$             7		$             7		$             8		$             9		$             7		— %		— %
Closed loan volume for sale	$         176		$         166		$         164		$         136		$         175		6 %		1 %
Gain on sale margin	2.84 %		3.01 %		2.77 %		3.23 %		2.58 %		-0.17		0.26
Residential mortgage servicing rights:
Balance, beginning of period	$         101		$         103		$         106		$         108		$         102		(2) %		(1) %
Additions for new MSR capitalized	2		1		2		2		2		100 %		— %
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time	(3)		(3)		(3)		(3)		(3)		— %		— %
Changes due to valuation inputs or assumptions	(1)		—		(2)		(1)		7		nm		(114) %
Balance, end of period	$           99		$         101		$         103		$         106		$         108		(2) %		(8) %
Residential mortgage loans serviced for others	$      7,755		$      7,797		$      7,852		$      7,888		$      7,939		(1) %		(2) %
MSR as % of serviced portfolio	1.28 %		1.30 %		1.31 %		1.34 %		1.36 %		(0.02)		(0.08)
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

 

Columbia Banking System, Inc.
Residential Mortgage Banking Activity
(Unaudited)
	Year Ended				% Change
($ in millions)	Dec 31, 2025		Dec 31, 2024		Year over Year
Residential mortgage banking revenue:
Origination and sale	$               19		$               16		19 %
Servicing	23		24		(4) %
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time	(12)		(12)		0 %
Changes due to valuation inputs or assumptions	(4)		5		(180) %
MSR hedge gain (loss)	5		(9)		nm
Total	$               31		$               24		29 %
Closed loan volume for sale	$             642		$             564		14 %
Gain on sale margin	2.96 %		2.86 %		0.10
Residential mortgage servicing rights:
Balance, beginning of period	$             108		$             109		(1) %
Additions for new MSR capitalized	7		6		17 %
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time	(12)		(12)		0 %
Changes due to valuation inputs or assumptions	(4)		5		(180) %
Balance, end of period	$               99		$             108		(8) %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

 

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

Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation
Tangible Capital, as adjusted
(Unaudited)
			Quarter Ended										% Change
($ in millions, except per-share data)			Dec 31, 2025		Sep 30, 2025		Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Seq. Quarter		Year over Year
Total shareholders' equity	a		$       7,840		$       7,790		$       5,342		$       5,238		$       5,118		1 %		53 %
Less: Goodwill			1,482		1,481		1,029		1,029		1,029		— %		44 %
Less: Other intangible assets, net			712		754		430		456		484		(6) %		47 %
Tangible common shareholders' equity	b		$       5,646		$       5,555		$       3,883		$       3,753		$       3,605		2 %		57 %
Total assets	c		$     66,832		$     67,496		$     51,901		$     51,519		$     51,576		(1) %		30 %
Less: Goodwill			1,482		1,481		1,029		1,029		1,029		— %		44 %
Less: Other intangible assets, net			712		754		430		456		484		(6) %		47 %
Tangible assets	d		$     64,638		$     65,261		$     50,442		$     50,034		$     50,063		(1) %		29 %
Common shares outstanding at period end (in thousands)	e		295,422		299,147		210,213		210,112		209,536		(1) %		41 %
Total shareholders' equity to total assets ratio	a / c		11.73 %		11.54 %		10.29 %		10.17 %		9.92 %		0.19		1.81
Tangible common equity to tangible assets ratio	b / d		8.73 %		8.51 %		7.70 %		7.50 %		7.20 %		0.22		1.53
Book value per common share	a / e		$       26.54		$       26.04		$       25.41		$       24.93		$       24.43		2 %		9 %
Tangible book value per common share	b / e		$       19.11		$       18.57		$       18.47		$       17.86		$       17.20		3 %		11 %

 

Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Income Statements, as adjusted
(Unaudited)
			Quarter Ended										% Change
($ in millions)			Dec 31, 2025		Sep 30, 2025		Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Seq. Quarter		Year over Year
Non-Interest Income Adjustments
Gain (loss) on investment securities, net			$                 2		$                 2		$               —		$                 2		$               (1)		— %		nm
Gain (loss) on swap derivatives			1		(1)		(1)		(1)		3		nm		(67) %
Gain (loss) on loans held for investment, at fair value			—		4		—		7		(7)		(100) %		nm
Change in fair value of MSR due to valuation inputs or assumptions			(1)		—		(2)		(1)		7		nm		(114) %
MSR hedge gain (loss)			—		—		2		3		(8)		nm		nm
Total non-interest income adjustments	a		$                 2		$                 5		$               (1)		$               10		$               (6)		(60) %		nm
Non-Interest Expense Adjustments
Merger and restructuring expense			$               39		$               87		$                 8		$               14		$                 2		(55) %		nm
Exit and disposal costs			1		—		—		1		1		nm		— %
FDIC special assessment			(5)		(1)		—		—		—		400 %		nm
Legal settlement and other non-operating expense			4		—		—		55		—		nm		nm
Total non-interest expense adjustments	b		$               39		$               86		$                 8		$               70		$                 3		(55) %		nm
Net interest income	c		$             627		$             505		$             446		$             425		$             437		24 %		43 %
Non-interest income (GAAP)	d		$               90		$               77		$               65		$               66		$               50		17 %		80 %
Less: Non-interest income adjustments	a		(2)		(5)		1		(10)		6		(60) %		(133) %
Operating non-interest income (non-GAAP)	e		$               88		$               72		$               66		$               56		$               56		22 %		57 %
Revenue (GAAP)	f=c+d		$             717		$             582		$             511		$             491		$             487		23 %		47 %
Operating revenue (non-GAAP)	g=c+e		$             715		$             577		$             512		$             481		$             493		24 %		45 %
Non-interest expense (GAAP)	h		$             412		$             393		$             278		$             340		$             267		5 %		54 %
Less: Non-interest expense adjustments	b		(39)		(86)		(8)		(70)		(3)		(55) %		nm
Operating non-interest expense (non-GAAP)	i		$             373		$             307		$             270		$             270		$             264		21 %		41 %
Net income (GAAP)	j		$             215		$               96		$             152		$               87		$             143		124 %		50 %
Provision for income taxes			67		23		51		37		49		191 %		37 %
Income before provision for income taxes			282		119		203		124		192		137 %		47 %
Provision for credit losses			23		70		30		27		28		(67) %		(18) %
Pre-provision net revenue (PPNR) (non-GAAP)	k		305		189		233		151		220		61 %		39 %
Less: Non-interest income adjustments	a		(2)		(5)		1		(10)		6		(60) %		(133) %
Add: Non-interest expense adjustments	b		39		86		8		70		3		(55) %		nm
Operating PPNR (non-GAAP)	l		$             342		$             270		$             242		$             211		$             229		27 %		49 %
Net income (GAAP)	j		$             215		$               96		$             152		$               87		$             143		124 %		50 %
Acquisition-related provision expense			—		70		—		—		—		(100) %		nm
Less: Non-interest income adjustments	a		(2)		(5)		1		(10)		6		(60) %		(133) %
Add: Non-interest expense adjustments	b		39		86		8		70		3		(55) %		nm
Tax effect of adjustments			(9)		(43)		(1)		(8)		(2)		(79) %		350 %
Operating net income (non-GAAP)	m		$             243		$             204		$             160		$             139		$             150		19 %		62 %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

 

Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Average Balances, Earnings Per Share, and Performance Metrics, as adjusted
(Unaudited)
			Quarter Ended										% Change
($ in millions, shares in thousands)			Dec 31, 2025		Sep 30, 2025		Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Seq. Quarter		Year over Year
Average assets	n		$     67,114		$     56,823		$     51,552		$     51,453		$     51,588		18 %		30 %
Less: Average goodwill and other intangible assets, net			2,217		1,719		1,472		1,502		1,528		29 %		45 %
Average tangible assets	o		$     64,897		$     55,104		$     50,080		$     49,951		$     50,060		18 %		30 %
Average common shareholders' equity	p		$       7,814		$       6,157		$       5,287		$      5,217		$       5,226		27 %		50 %
Less: Average goodwill and other intangible assets, net			2,217		1,719		1,472		1,502		1,528		29 %		45 %
Average tangible common equity	q		$       5,597		$       4,438		$       3,815		$      3,715		$       3,698		26 %		51 %
Weighted average basic shares outstanding (in thousands)	r		295,376		237,838		209,125		208,800		208,548		24 %		42 %
Weighted average diluted shares outstanding (in thousands)	s		296,760		238,925		209,975		210,023		209,889		24 %		41 %
Select Per-Share & Performance Metrics
Earnings per share - basic	j / r		$         0.72		$         0.40		$         0.73		$        0.41		$         0.69		80 %		4 %
Earnings per share - diluted	j / s		$         0.72		$         0.40		$         0.73		$        0.41		$         0.68		80 %		6 %
Efficiency ratio (1)	h / f		57.30 %		67.29 %		54.29 %		69.06 %		54.61 %		(9.99)		2.69
Non-interest expense to average assets	h / n		2.44 %		2.74 %		2.16 %		2.68 %		2.06 %		(0.30)		0.38
Return on average assets	j / n		1.27 %		0.67 %		1.19 %		0.68 %		1.10 %		0.60		0.17
Return on average tangible assets	j / o		1.31 %		0.69 %		1.22 %		0.70 %		1.14 %		0.62		0.17
PPNR return on average assets	k / n		1.80 %		1.32 %		1.81 %		1.19 %		1.70 %		0.48		0.10
Return on average common equity	j / p		10.92 %		6.19 %		11.56 %		6.73 %		10.91 %		4.73		0.01
Return on average tangible common equity	j / q		15.24 %		8.58 %		16.03 %		9.45 %		15.41 %		6.66		(0.17)
Operating Per-Share & Performance Metrics
Operating earnings per share - basic	m / r		$         0.82		$         0.86		$         0.77		$        0.67		$         0.72		(5) %		14 %
Operating earnings per share - diluted	m / s		$         0.82		$         0.85		$         0.76		$        0.67		$         0.71		(4) %		15 %
Operating efficiency ratio, as adjusted (1)	u / y		51.39 %		52.32 %		51.79 %		55.11 %		52.51 %		(0.93)		(1.12)
Operating non-interest expense to average assets	i / n		2.20 %		2.14 %		2.10 %		2.13 %		2.03 %		0.06		0.17
Operating return on average assets	m / n		1.44 %		1.42 %		1.25 %		1.10 %		1.15 %		0.02		0.29
Operating return on average tangible assets	m / o		1.49 %		1.47 %		1.28 %		1.13 %		1.19 %		0.02		0.30
Operating PPNR return on average assets	l / n		2.02 %		1.89 %		1.88 %		1.67 %		1.77 %		0.13		0.25
Operating return on average common equity	m / p		12.34 %		13.15 %		12.16 %		10.87 %		11.40 %		(0.81)		0.94
Operating return on average tangible common equity	m / q		17.22 %		18.24 %		16.85 %		15.26 %		16.11 %		(1.02)		1.11

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

 

Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Operating Efficiency Ratio, as adjusted
(Unaudited)
			Quarter Ended										% Change
($ in millions)			Dec 31, 2025		Sep 30, 2025		Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Seq. Quarter		Year over Year
Non-interest expense (GAAP)	h		$          412		$          393		$          278		$          340		$          267		5 %		54 %
Less: Non-interest expense adjustments	b		(39)		(86)		(8)		(70)		(3)		(55) %		nm
Operating non-interest expense (non-GAAP)	i		373		307		270		270		264		21 %		41 %
Less: B&O taxes	t		(3)		(3)		(3)		(3)		(4)		— %		(25) %
Operating non-interest expense, excluding B&O taxes (non-GAAP)	u		$          370		$          304		$          267		$          267		$          260		22 %		42 %
Net interest income (tax equivalent) (1)	v		$          629		$          507		$          447		$          426		$          438		24 %		44 %
Non-interest income (GAAP)	d		90		77		65		66		50		17 %		80 %
Add: BOLI tax equivalent adjustment (1)	w		3		2		2		1		1		50 %		200 %
Total Revenue, excluding BOLI tax equivalent adjustments (tax equivalent)	x		722		586		514		493		489		23 %		48 %
Less: Non-interest income adjustments	a		(2)		(5)		1		(10)		6		(60) %		(133) %
Total Adjusted Operating Revenue, excluding BOLI tax equivalent adjustments (tax equivalent) (non-GAAP)	y		$          720		$          581		$          515		$          483		$          495		24 %		45 %
Efficiency ratio (1)	h / f		57.30 %		67.29 %		54.29 %		69.06 %		54.61 %		(9.99)		2.69
Operating efficiency ratio, as adjusted (non- GAAP) (1)	u / y		51.39 %		52.32 %		51.79 %		55.11 %		52.51 %		(0.93)		(1.12)
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

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

 

Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Income Statements, as adjusted
(Unaudited)
			Year Ended				% Change
($ in millions)			Dec 31, 2025		Dec 31, 2024		Year over Year
Non-Interest Income Adjustments
Gain on investment securities, net			$                        6		$                      —		nm
(Loss) gain on swap derivatives			(2)		1		(300) %
Gain (loss) on loans held for investment, at fair value			11		(10)		nm
Change in fair value of MSR due to valuation inputs or assumptions			(4)		5		(180) %
MSR hedge gain (loss)			5		(9)		nm
Total non-interest income adjustments	a		$                      16		$                     (13)		nm
Non-Interest Expense Adjustments
Merger and restructuring expense			$                    148		$                      24		nm
Exit and disposal costs			2		4		(50) %
FDIC special assessment			(6)		5		(220) %
Legal settlement and other non-operating expense			59		—		nm
Total non-interest expense adjustments	b		$                    203		$                      33		nm
Net interest income	c		$                 2,003		$                 1,718		17 %
Non-interest income (GAAP)	d		$                    298		$                    211		41 %
Less: Non-interest income adjustments	a		(16)		13		(223) %
Operating non-interest income (non-GAAP)	e		$                    282		$                    224		26 %
Revenue (GAAP)	f=c+d		$                 2,301		$                 1,929		19 %
Operating revenue (non-GAAP)	g=c+e		$                 2,285		$                 1,942		18 %
Non-interest expense (GAAP)	h		$                 1,423		$                 1,104		29 %
Less: Non-interest expense adjustments	b		(203)		(33)		nm
Operating non-interest expense (non-GAAP)	i		$                 1,220		$                 1,071		14 %
Net income (GAAP)	j		$                    550		$                    534		3 %
Provision for income taxes			178		185		(4) %
Income before provision for income taxes			728		719		1 %
Provision for credit losses			150		106		42 %
Pre-provision net revenue (PPNR) (non-GAAP)	k		878		825		6 %
Less: Non-interest income adjustments	a		(16)		13		(223) %
Add: Non-interest expense adjustments	b		203		33		nm
Operating PPNR (non-GAAP)	l		$                 1,065		$                    871		22 %
Net income (GAAP)	j		$                    550		$                    534		3 %
Acquisition-related provision expense			70		—		nm
Less: Non-interest income adjustments	a		(16)		13		(223) %
Add: Non-interest expense adjustments	b		203		33		nm
Tax effect of adjustments			(61)		(12)		408 %
Operating net income (non-GAAP)	m		$                    746		$                    568		31 %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Average Balances, Earnings Per Share, and Performance Metrics, as adjusted
(Unaudited)
			Year Ended				% Change
($ in millions, shares in thousands)			Dec 31, 2025		Dec 31, 2024		Year over Year
Average assets	n		$                56,779		$                51,915		9 %
Less: Average goodwill and other intangible assets, net			1,729		1,574		10 %
Average tangible assets	o		$                55,050		$                50,341		9 %
Average common shareholders' equity	p		$                 6,126		$                 5,060		21 %
Less: Average goodwill and other intangible assets, net			1,729		1,574		10 %
Average tangible common equity	q		$                 4,397		$                 3,486		26 %
Weighted average basic shares outstanding	r		238,022		208,463		14 %
Weighted average diluted shares outstanding	s		239,121		209,337		14 %
Select Per-Share & Performance Metrics
Earnings per share - basic	j / r		$                   2.31		$                   2.56		(10) %
Earnings per share - diluted	j / s		$                   2.30		$                   2.55		(10) %
Efficiency ratio (1)	h / f		61.68 %		57.14 %		4.54
Non-interest expense to average assets	h/n		2.51 %		2.13 %		0.38
Return on average assets	j / n		0.97 %		1.03 %		(0.06)
Return on average tangible assets	j / o		1.00 %		1.06 %		(0.06)
PPNR return on average assets	k/n		1.55 %		1.59 %		(0.04)
Return on average common equity	j / p		8.98 %		10.55 %		(1.57)
Return on average tangible common equity	j / q		12.51 %		15.31 %		(2.80)
Operating Per-Share & Performance Metrics
Operating earnings per share - basic	m / r		$                   3.13		$                   2.73		15 %
Operating earnings per share - diluted	m / s		$                   3.12		$                   2.71		15 %
Operating efficiency ratio, as adjusted (1)	u / y		52.54 %		54.22 %		(1.68)
Operating non-interest expense to average assets	i/n		2.15 %		2.06 %		0.09
Operating return on average assets	m / n		1.31 %		1.09 %		0.22
Operating return on average tangible assets	m / o		1.36 %		1.13 %		0.23
Operating PPNR return on average assets	l / n		1.88 %		1.68 %		0.20
Operating return on average common equity	m / p		12.18 %		11.23 %		0.95
Operating return on average tangible common equity	m / q		16.97 %		16.30 %		0.67

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

 

Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Operating Efficiency Ratio, as adjusted
(Unaudited)
			Year Ended				% change
($ in millions)			Dec 31, 2025		Dec 31, 2024		Year over Year
Non-interest expense (GAAP)	h		$                 1,423		$                 1,104		29 %
Less: Non-interest expense adjustments	b		(203)		(33)		nm
Operating non-interest expense (non-GAAP)	i		1,220		1,071		14 %
Less: B&O taxes	t		(12)		(13)		(8) %
Operating non-interest expense, excluding B&O taxes (non-GAAP)	u		$                 1,208		$                 1,058		14 %
Net interest income (tax equivalent) (1)	v		$                 2,009		$                 1,722		17 %
Non-interest income (GAAP)	d		298		211		41 %
Add: BOLI tax equivalent adjustment (1)	w		8		6		33 %
Total Revenue, excluding BOLI tax equivalent adjustments (tax equivalent)	x		2,315		1,939		19 %
Less: Non-interest income adjustments	a		(16)		13		(223) %
Total Adjusted Operating Revenue, excluding BOLI tax equivalent adjustments (tax equivalent) (non-GAAP)	y		$                 2,299		$                 1,952		18 %
Efficiency ratio (1)	h /f		61.68 %		57.14 %		4.54
Operating efficiency ratio, as adjusted (non-GAAP) (1)	u / y		52.54 %		54.22 %		(1.68)
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

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

 

¹ "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for additional information.
² "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for additional information.
³ "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for additional information.

 

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SOURCE Columbia Banking System, Inc.

FAQ

What were Columbia Banking System (COLB) reported net income and EPS for 4Q25?

Columbia reported net income $215 million and diluted EPS of $0.72 for 4Q25.

How did Columbia's net interest margin (NIM) change in 4Q25 for COLB?

Net interest margin improved to 4.06% in 4Q25, up 22 basis points from 3Q25.

What drove COLB's higher net interest income in 4Q25?

Net interest income increased to $627M, driven by two additional months as a combined company and lower funding costs, up $122M QoQ.

What were Columbia's 4Q25 capital ratios and share actions (COLB)?

Estimated total risk-based capital was 13.6%, CET1 was 11.8%, and the company repurchased common stock under its plan.

Did Columbia's loans or deposits change in 4Q25 (COLB)?

Gross loans decreased to $47.8B from $48.5B and deposits fell to $54.2B from $55.8B quarter-over-quarter.

How did credit metrics move for Columbia in 4Q25 (COLB)?

Provision was $23M, ACL was $485M (1.02% of loans), and net charge-offs were 0.25% annualized in 4Q25.