COLUMBIA BANKING SYSTEM, INC. REPORTS THIRD QUARTER 2026 RESULTS

The new buyback authorization follows completion of a prior plan that repurchased 23.3 million common shares.

Rhea-AI Summary

Columbia Banking System (COLB) reported third-quarter 2026 net income of $220 million and authorized a new common-stock repurchase program. Diluted earnings were $0.78 per share, versus $0.73 in the prior quarter and $0.40 a year earlier. The new buyback authorization covers up to $1.2 billion and has no expiration date.

Net interest income rose to $615 million from $589 million sequentially, while net interest margin increased to 4.11% from 3.93%. Non-interest income fell to $80 million from $88 million. Credit-loss provision expense increased to $33 million from $27 million, although non-performing assets declined to 0.39% of assets from 0.42%. Deposits increased to $52.740 billion from $52.056 billion, while loans and leases decreased to $46.915 billion from $47.166 billion. Columbia Bank issued $250 million of subordinated notes; Columbia plans to redeem approximately $240 million of junior subordinated debentures.

32 points · 1 major

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0 major · 13 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.New repurchase authorization covers up to $1.2 billion of common stock, with no expiration date. 15% of market cap
• Moderate pointNet income reached $220 million in the third quarter of 2026.
• Moderate pointDiluted earnings rose to $0.78, versus $0.73 sequentially and $0.40 a year earlier.
• Moderate pointCompleted buyback purchased 23.3 million shares at $29.88 on average between November 2025 and September 30, 2026.
• Moderate pointNet interest income increased to $615 million, from $589 million sequentially and $505 million a year earlier.
• Moderate pointNet interest margin reached 4.11%, versus 3.93% sequentially and 3.84% a year earlier.
• Moderate pointNon-interest expense declined to $370 million, from $375 million sequentially and $393 million a year earlier.
• Moderate pointEfficiency ratio improved to 53.08%, from 55.15% sequentially and 67.29% a year earlier.
• Moderate pointPre-provision net revenue, a non-GAAP measure, rose to $325 million, versus $302 million sequentially and $189 million a year earlier.
• Moderate pointDeposits reached $52.740 billion, above $52.056 billion sequentially but below $55.771 billion a year earlier.
• Moderate pointNon-performing assets declined to $255 million, or 0.39% of assets, from $273 million, or 0.42%, sequentially.
• Moderate pointColumbia Bank raised $250 million through subordinated notes issued in September 2026. 3% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Columbia plans to redeem approximately $240 million of junior subordinated debentures in fourth-quarter 2026 and early 2027. 2.9% of market cap

19 minor points

• Minor pointAccelerated repayments of two acquired loans contributed $5 million of interest income and 3 basis points of margin.
• Minor pointInterest-bearing deposit costs fell to 1.95% from 1.96% sequentially.
• Minor pointInterest-bearing liability costs decreased to 2.20% from 2.21% sequentially.
• Minor pointReturn on average assets improved to 1.34%, versus 1.27% sequentially and 0.67% a year earlier.
• Minor pointReturn on average common equity increased to 11.78%, versus 10.99% sequentially and 6.19% a year earlier.
• Minor pointReturn on average tangible common equity, a non-GAAP measure, reached 16.43%, versus 15.29% sequentially and 8.58% a year earlier.
• Minor pointAdjusted operating efficiency ratio, a non-GAAP measure, improved to 51.34%, versus 52.92% sequentially and 52.32% a year earlier.
• Minor pointOperating pre-provision net revenue, a non-GAAP measure, reached $337 million, versus $314 million sequentially and $270 million a year earlier.
• Minor pointOperating diluted earnings, a non-GAAP measure, were $0.82, above $0.76 sequentially but below $0.85 a year earlier.
• Minor pointOperating return on average assets, a non-GAAP measure, reached 1.40%, versus 1.33% sequentially and 1.42% a year earlier.
• Minor pointOperating return on average common equity, a non-GAAP measure, reached 12.27%, versus 11.46% sequentially and 13.15% a year earlier.
• Minor pointOperating return on average tangible common equity, a non-GAAP measure, was 17.11%, versus 15.95% sequentially and 18.24% a year earlier.
• Minor pointSecond 2026 customer deposit campaign brought over $700 million in new deposits between June and mid-August.
• Minor pointBrokered deposits declined to $622 million from $978 million at June 30, 2026.
• Minor pointWholesale public deposits fell to $773 million from $928 million at June 30, 2026.
• Minor pointBorrowings decreased to $3.3 billion from $4.3 billion at June 30, 2026.
• Minor pointCommercial loans, including owner-occupied commercial real estate, grew 3% annualized relative to June 30, 2026.
• Minor pointNet charge-offs improved to 0.24% of average loans and leases annualized, from 0.25% sequentially.
• Minor pointFinPac net charge-offs decreased to $11 million from $15 million sequentially.

Negative

• Moderate pointNon-interest income fell to $80 million from $88 million sequentially, although above $77 million a year earlier.
• Moderate pointCredit-loss provision increased to $33 million from $27 million sequentially, although below $70 million a year earlier.
• Moderate pointLoans and leases declined to $46.915 billion, from $47.166 billion sequentially and $48.462 billion a year earlier.
• Moderate pointTotal assets decreased to $65.135 billion, from $65.380 billion sequentially and $67.496 billion a year earlier.
• Moderate pointBook value per share fell to $25.62, from $26.70 sequentially and $26.04 a year earlier.
• Moderate pointAccumulated other comprehensive loss widened to $708 million from $310 million at the prior quarter-end.

7 minor points

• Minor pointFair-value adjustments and mortgage-servicing-rights hedges produced a $7 million net loss, versus $3 million sequentially.
• Minor pointCash and cash equivalents fell to $1.7 billion from $1.8 billion at June 30, 2026.
• Minor pointAvailable-for-sale securities declined to $10.9 billion from $11.1 billion, reflecting lower fair value and paydowns.
• Minor pointNet charge-offs excluding FinPac increased to $17 million from $15 million sequentially.
• Minor pointTangible book value per share, a non-GAAP measure, fell to $18.10, from $19.22 sequentially and $18.57 a year earlier.
• Minor pointTax-effected unrealized losses on available-for-sale securities increased to $663 million from $275 million sequentially.
• Minor pointNew subordinated notes mature in 2036, carrying 6.721% interest for five years, then five-year Treasury plus 195 basis points.

News Explained

The notes have a five-year fixed-rate period; redemption of about $240 million of debentures is expected in late 2026 and early 2027.

The board has authorized Columbia to repurchase up to $1.2 billion of common stock, but the plan does not require purchases; senior management determines timing and amount.

Columbia Bank's $250 million subordinated notes are due in 2036 and carry a 6.721% fixed annual rate for the first five years, then reset to the five-year U.S. Treasury rate plus 195 basis points.

Columbia expects to use part of the proceeds to redeem about $240 million of junior subordinated debentures in the fourth quarter of 2026 and early 2027.

Key Figures

Net income: $220 million Operating net income: $229 million Diluted EPS: $0.78 +5 more

Net income

$220 million

Third quarter 2026

Operating net income

$229 million

Third quarter 2026

Diluted EPS

$0.78

Third quarter 2026

Operating diluted EPS

$0.82

Third quarter 2026

Net interest income

$615 million; increased by $26 million

Third quarter 2026 versus second quarter 2026

Net interest margin

4.11%; up 18 basis points

Third quarter 2026 versus second quarter 2026

New share repurchase authorization

Up to $1.2 billion

No expiration date

Subordinated notes issued

$250 million

Issued in September 2026; due in 2036

Previous Earnings Reports

1 past event · Latest: Jul 23

Same Type 1 event

1. Jul 23

   2Q26 earnings report

   24h Move

   -3.4%

   Reported $208 million net income and $0.73 diluted EPS, with 3.93% net interest margin.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

net interest margin, subordinated notes, rule 10b5-1, common equity tier 1, +1 more

5 terms

net interest margin financial

"Net interest margin was 4.11%, up 18 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.

subordinated notes financial

"issued $250 million in aggregate principal amount of subordinated notes due in 2036"

Subordinated notes are loans companies issue that rank below other debts for repayment, meaning holders get paid only after higher-priority creditors if the issuer runs into trouble. Because they act like being farther back in line at a buffet, they usually offer higher interest to compensate for greater risk, so investors watch them for potential higher returns but also increased chance of loss and sensitivity to the issuer’s financial health.

rule 10b5-1 regulatory

"including under Rule 10b5-1 plans"

Rule 10b5-1 is a regulation that allows company insiders to buy or sell their shares at predetermined times, even if they have access to non-public information. It acts like setting a schedule in advance for transactions, helping prevent accusations of unfair trading. This rule provides a way for insiders to plan trades transparently, giving investors confidence that these transactions are not based on hidden information.

common equity tier 1 regulatory

"estimated common equity tier 1 risk-based capital ratio of 11.5%"

Common Equity Tier 1 is the highest-quality capital a bank holds—mainly common shares and retained profits—that acts as the primary cushion against losses. Investors use the CET1 level and ratio to judge a bank’s financial strength and regulatory standing: a bigger cushion means the bank is better able to absorb shocks, sustain payouts and borrow cheaply, much like an emergency fund for a household.

junior subordinated debentures financial

"redeem approximately $240 million in aggregate principal amount of the Company's junior subordinated debentures"

A junior subordinated debenture is a long-term loan a company issues to investors that sits low in the repayment order: holders get paid after most other creditors but usually before shareholders. Because it offers higher interest to compensate for greater risk, it can boost income for investors but also carries bigger chances of loss if the issuer faces financial trouble. Think of it as standing near the back of a line for repayment — you get a bigger reward but a smaller guarantee.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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

$220 million		$229 million		$0.78		$0.82
Net income		Operating net income1		Earnings per common share - diluted		Operating earnings per common share - diluted1

 

CEO Commentary

"Our third quarter performance demonstrates the benefits of consistent execution and active balance sheet management," said Clint Stein, Chairman, CEO & President. "By remaining focused on relationship-driven growth, prudent loan and deposit pricing, and operational discipline, we continued to improve our profitability while maintaining strong credit quality and returning excess capital. Over the past year, we returned over $1 billion to our shareholders through dividends and share repurchases, completing our existing buyback authorization in the process. Our Board of Directors has authorized a new $1.2 billion share repurchase program, reflecting confidence in our long-term strategy and our outlook for continued excess capital generation. We remain focused on growing our franchise in ways that strengthen customer relationships, enhance the quality of our balance sheet, and support attractive long-term returns for our shareholders."

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

 

3Q26 HIGHLIGHTS (COMPARED TO 2Q26)
Net Interest Income and NIM		Net interest income increased by $26 million from the prior quarter, due to higher income on loans and investment securities and lower funding costs.
		Net interest margin was 4.11%, up 18 basis points from the prior quarter, due to higher yields on loans and investment securities and a favorable funding mix shift, as growth in customer deposits was used to pay down wholesale funding sources.
Non-Interest Income and Expense		Non-interest income decreased by $8 million. Excluding the impact of fair value and hedges,1 non-interest income decreased by $4 million, due primarily to $3 million of death benefit proceeds recorded during the second quarter related to a single policy that did not recur in the third quarter.
		Non-interest expense decreased by $5 million, due to lower merger expense.
Credit Quality		Net charge-offs were 0.24% of average loans and leases (annualized), compared to 0.25% for the prior quarter.
		Provision expense was $33 million, compared to $27 million for the prior quarter.
		Non-performing assets to total assets ratio was 0.39%, compared to 0.42% as of June 30, 2026.
Capital		Estimated total risk-based capital ratio of 13.8% and estimated common equity tier 1 risk-based capital ratio of 11.5%.
		Declared a quarterly cash dividend of $0.37 per common share on August 14, 2026, which was paid September 14, 2026.
		Repurchased $199 million of common stock, completing our previously announced repurchase plan.
Notable Items		Our second customer deposit campaign of 2026, which began in June and ended in mid- August, brought over $700 million in new deposits to the bank.
		Our Board of Directors authorized the repurchase of up to $1.2 billion of common stock under a new repurchase plan, which has no expiration date.

 

3Q26 KEY FINANCIAL DATA
PERFORMANCE METRICS	3Q26		2Q26		3Q25
Return on average assets	1.34 %		1.27 %		0.67 %
Return on average common equity	11.78 %		10.99 %		6.19 %
Return on average tangible common equity1	16.43 %		15.29 %		8.58 %
Operating return on average assets1	1.40 %		1.33 %		1.42 %
Operating return on average common equity1	12.27 %		11.46 %		13.15 %
Operating return on average tangible common equity1	17.11 %		15.95 %		18.24 %
Net interest margin	4.11 %		3.93 %		3.84 %
Efficiency ratio	53.08 %		55.15 %		67.29 %
Operating efficiency ratio, as adjusted 1	51.34 %		52.92 %		52.32 %
INCOME STATEMENT ($ in millions, excl. per share data)	3Q26		2Q26		3Q25
Net interest income	$615		$589		$505
Provision for credit losses	$33		$27		$70
Non-interest income	$80		$88		$77
Non-interest expense	$370		$375		$393
Pre-provision net revenue1	$325		$302		$189
Operating pre-provision net revenue1	$337		$314		$270
Earnings per common share - diluted	$0.78		$0.73		$0.40
Operating earnings per common share - diluted1	$0.82		$0.76		$0.85
Dividends paid per share	$0.37		$0.37		$0.36
BALANCE SHEET ($ in millions, excl. per share data)	3Q26		2Q26		3Q25
Total assets	$65,135		$65,380		$67,496
Loans and leases	$46,915		$47,166		$48,462
Deposits	$52,740		$52,056		$55,771
Book value per common share	$25.62		$26.70		$26.04
Tangible book value per common share1	$18.10		$19.22		$18.57

Organizational Update
During the third quarter, Columbia Banking System, Inc. ("Columbia," the "Company," "we," or "our") opened two depository locations in Utah: a branch in Draper and a financial hub in Pleasant Grove. These openings support our continued organic expansion in key markets, while the closure of four branches reflects our ongoing efforts to optimize our physical presence.

Capital Update and Share Repurchase Authorization Announcement
In September 2026, Columbia Bank, the wholly-owned subsidiary of Columbia, issued $250 million in aggregate principal amount of subordinated notes due in 2036. The notes bear interest at a fixed annual rate of 6.721% for the first five years, after which they will reset to the Five-Year U.S. Treasury Rate plus 195 basis points. The Company intends to use a portion of the proceeds to redeem approximately $240 million in aggregate principal amount of the Company's junior subordinated debentures associated with certain trust preferred securities structures, with redemptions expected to occur during the fourth quarter of 2026 and early 2027.

During the third quarter, Columbia completed its previously announced share repurchase plan, buying back 23.3 million common shares at an average price of $29.88 between November 2025 and September 30, 2026, representing 7.8% of outstanding common shares as of September 30, 2025. As such, Columbia's Board of Directors has authorized the repurchase of up to $1.2 billion of common stock under a new repurchase plan.  COLB common share repurchases may be executed in the open market or through privately negotiated transactions, including under Rule 10b5-1 plans. The timing and exact amount of common share repurchases will be at the discretion of senior management and subject to various factors, including, without limitation, Columbia's capital position, financial performance, market conditions, and regulatory considerations. The repurchase program does not obligate Columbia to purchase any particular number of shares. The authorization has no expiration date, but may be suspended, terminated, or modified by the Board at any time.

Net Interest Income and Net Interest Margin
Net interest income was $615 million for the third quarter of 2026, up $26 million from the second quarter of 2026, due to higher income on loans and investment securities and lower funding costs. Net interest income also benefited from $5 million of interest income related to the accelerated repayment of two acquired loans. In comparison, second quarter results included $4 million of interest income reversals that did not recur in the current quarter.

Columbia's net interest margin was 4.11% for the third quarter of 2026, up 18 basis points from the second quarter of 2026. The increase between periods reflects higher yields on loans and leases, driven by a continued shift in the portfolio mix toward higher-yielding relationship loans and repricing trends within the portfolio. Favorable funding mix trends also contributed to the increase, as customer deposits replaced higher-cost wholesale funding sources. Higher yields on taxable securities further benefited net interest margin, as the adverse impact of changes in prepayment speed expectations experienced during the second quarter did not recur in the third quarter. Third quarter net interest margin benefited by 3 basis points from the accelerated loan repayments discussed above. In comparison, interest income reversals reduced second quarter net interest margin by 3 basis points.

The cost of interest-bearing deposits decreased 1 basis point from the prior quarter to 1.95% for the third quarter of 2026, compared to 1.96% for the second quarter of 2026. The decrease during the third quarter reflects our active management of deposit rates and a lower mix of higher-cost brokered and wholesale public deposits. The cost of interest-bearing deposits was 1.96% for both the month of September and as of September 30, 2026.

Columbia's cost of interest-bearing liabilities decreased 1 basis point from the prior quarter to 2.20% for the third quarter of 2026, compared to 2.21% for the second quarter of 2026. The cost of interest-bearing liabilities was 2.21% for the month of September and 2.23% as of September 30, 2026. Refer to the Q3 2026 Earnings Presentation for additional net interest margin change details and interest rate sensitivity information.

Non-interest Income
Non-interest income was $80 million for the third quarter of 2026, down $8 million from the prior quarter. Quarterly changes in fair value adjustments and mortgage servicing rights ("MSR") hedging activity, which reflect interest rate fluctuations during the quarter, collectively resulted in a net fair value loss of $7 million for the third quarter, compared to a net fair value loss of $3 million for the second quarter, as detailed in our non-GAAP disclosures. Excluding these items, non-interest income was $87 million^[2] for the third quarter of 2026, down $4 million from the prior quarter, due primarily to $3 million of death benefit proceeds recorded in other income during the second quarter related to a single policy that did not recur in the third quarter.

Non-interest Expense
Non-interest expense was $370 million for the third quarter of 2026, down $5 million from the prior quarter, due to lower merger expense. Excluding merger and restructuring expense and exit and disposal costs, as detailed in our non-GAAP disclosures, non-interest expense was $365 million², down $1 million from the prior quarter, due primarily to lower benefits expense, partially offset by an increase in other miscellaneous expenses. Refer to the Q3 2026 Earnings Presentation for additional expense details.

Balance Sheet
Total consolidated assets were $65.1 billion as of September 30, 2026, compared to $65.4 billion as of June 30, 2026. The decrease reflects balance sheet optimization activity. Cash and cash equivalents were $1.7 billion as of September 30, 2026, compared to $1.8 billion as of June 30, 2026. Including secured off-balance sheet lines of credit, total available liquidity was $26.0 billion as of September 30, 2026, representing 40% of total assets, 49% of total deposits, and 121% of uninsured deposits. Available-for-sale securities, which are held on balance sheet at fair value, were $10.9 billion as of September 30, 2026, compared to $11.1 billion as of June 30, 2026. The decrease reflects a decline in the fair value of the portfolio and paydowns, which were not fully offset by the purchase of $639 million of investment securities. Refer to the Q3 2026 Earnings Presentation for additional details related to our investment securities portfolio and liquidity position.

Gross loans and leases were $46.9 billion as of September 30, 2026, compared to $47.2 billion as of June 30, 2026. The decrease reflects continued expected runoff in below-market-rate transactional loans and lower commercial real estate balances, as elevated payoffs and competitive pricing pressures muted growth. Construction & development balances expanded during the quarter, and commercial loans, inclusive of owner-occupied commercial real estate, increased by 3% on an annualized basis relative to June 30, 2026, partially offsetting contraction in other portfolios. "Our bankers continued to deepen customer relationships and generate new business opportunities during the third quarter," commented Chris Merrywell, President of Columbia Bank. "Commercial loan growth remained healthy, supported by strong customer engagement across our markets. While transactional loan payoffs moderated overall growth, we continued to grow in the ways we intend, increasing the proportion of relationship-based commercial loans within our portfolio." Refer to the Q3 2026 Earnings Presentation for additional details related to our loan portfolio, which include underwriting characteristics, the composition of our commercial portfolios, and disclosure related to transactional loans.

Total deposits were $52.7 billion as of September 30, 2026, compared to $52.1 billion as of June 30, 2026. The increase reflects strong customer balance growth, partially offset by intentional reductions in brokered deposits and wholesale public deposits, which declined to $622 million and $773 million, respectively, as of September 30, 2026, compared to $978 million and $928 million, respectively, as of June 30, 2026. "Deposit growth during the third quarter benefited from seasonal customer balance growth and new customer acquisition," stated Mr. Merrywell. "Our teams remain focused on understanding our customers' needs and delivering tailored solutions that create value beyond pricing, reinforcing the customer relationships that differentiate our franchise in an evolving interest rate environment." Customer deposit growth and other sources of cash enabled us to reduce borrowings to $3.3 billion as of September 30, 2026, compared to $4.3 billion as of June 30, 2026. Refer to the Q3 2026 Earnings Presentation for additional details related to deposit characteristics and flows.

Credit Quality
The allowance for credit losses ("ACL") was $480 million, or 1.02% of loans and leases, as of September 30, 2026, compared to $475 million, or 1.01% of loans and leases, as of June 30, 2026. The provision for credit losses was $33 million for the third quarter of 2026 and reflects loan portfolio runoff, credit migration trends, charge-off activity, and changes in the economic forecasts used in credit models.

Net charge-offs were 0.24% of average loans and leases (annualized) for the third quarter of 2026, compared to 0.25% for the second quarter of 2026. Net charge-offs in the FinPac portfolio were $11 million for the third quarter, compared to $15 million for the second quarter. Net charge-offs excluding the FinPac portfolio were $17 million for the third quarter, compared to $15 million for the second quarter. Non-performing assets were $255 million, or 0.39% of total assets, as of September 30, 2026, compared to $273 million, or 0.42% of total assets, as of June 30, 2026. Refer to the Q3 2026 Earnings Presentation for additional details related to the allowance for credit losses and other credit trends.

Capital
Columbia's book value per common share was $25.62 as of September 30, 2026, compared to $26.70 as of June 30, 2026. During the third quarter, Columbia repurchased 6.5 million common shares under its prior repurchase plan at an average price of $30.65, representing 2.3% of outstanding common shares. Book value also was impacted by the change in accumulated other comprehensive (loss) income ("AOCI") to $(708) million as of September 30, 2026, compared to $(310) million as of the prior quarter-end. The change in AOCI is due primarily to an increase in the tax-effected net unrealized loss on available-for-sale securities to $663 million as of September 30, 2026, compared to $275 million as of June 30, 2026. Tangible book value per common share^[3] was $18.10 as of September 30, 2026, compared to $19.22 as of June 30, 2026.

Columbia's estimated total risk-based capital ratio was 13.8% and its estimated common equity tier 1 risk-based capital ratio was 11.5% as of September 30, 2026, compared to 13.5% and 11.7%, respectively, as of June 30, 2026. Columbia remains above current "well-capitalized" regulatory minimums. The regulatory capital ratios as of September 30, 2026 are estimates, pending completion and filing of Columbia's regulatory reports. 

Earnings Presentation and Conference Call Information
Columbia's Q3 2026 Earnings Presentation provides additional disclosure. A copy will be available on our investor relations page: www.columbiabankingsystem.com.

Columbia will host its third quarter 2026 earnings conference call on October 22, 2026 at 2:00 p.m. PT (5:00 p.m. ET). During the call, Columbia's management will provide an update on recent activities and discuss its third quarter 2026 financial results. Participants may join the audiocast or register for the call using the link below to receive dial-in details and their own unique PINs. It is recommended you join 10 minutes prior to the start time.

Join the audiocast: https://edge.media-server.com/mmc/p/ock9xnut/

Register for the call: https://register-conf.media-server.com/register/BI681367d8eaa3452084f342f40e7ffe6c

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

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

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

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

 

TABLE INDEX
	Page
Consolidated Statements of Income	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)	Sep 30, 2026		Jun 30, 2026		Mar 31, 2026		Dec 31, 2025		Sep 30, 2025		Seq. Quarter		Year over Year
Interest income:
Loans and leases	$       699		$       683		$       684		$       722		$       619		2 %		13 %
Interest and dividends on investments:
Taxable	105		98		103		102		89		7 %		18 %
Exempt from federal income tax	11		12		12		12		8		(8) %		38 %
Dividends	4		4		3		3		4		— %		— %
Temporary investments and interest bearing deposits	13		13		14		19		20		— %		(35) %
Total interest income	832		810		816		858		740		3 %		12 %
Interest expense:
Deposits	171		173		184		195		195		(1) %		(12) %
Securities sold under agreement to repurchase and federal funds purchased	—		1		1		1		1		(100) %		(100) %
Borrowings	38		39		30		27		30		(3) %		27 %
Subordinated and junior subordinated debentures	8		8		7		8		9		— %		(11) %
Total interest expense	217		221		222		231		235		(2) %		(8) %
Net interest income	615		589		594		627		505		4 %		22 %
Provision for credit losses	33		27		28		23		70		22 %		(53) %
Non-interest income:
Service charges on deposits	24		23		20		24		21		4 %		14 %
Card-based fees	17		17		15		16		15		— %		13 %
Financial services and trust revenue	15		15		15		15		9		— %		67 %
Residential mortgage banking revenue, net	9		7		12		7		7		29 %		29 %
(Loss) gain on investment securities, net	(8)		(1)		—		2		2		nm		(500) %
Gain on loan and lease sales, net	—		—		1		1		—		nm		nm
(Loss) gain on loans held for investment, at fair value	(3)		(1)		(2)		—		4		200 %		(175) %
BOLI income	9		9		9		9		6		— %		50 %
Other income	17		19		13		16		13		(11) %		31 %
Total non-interest income	80		88		83		90		77		(9) %		4 %
Non-interest expense:
Salaries and employee benefits	191		196		196		201		171		(3) %		12 %
Occupancy and equipment, net	63		65		66		67		54		(3) %		17 %
FDIC assessments	9		9		9		4		8		— %		13 %
Intangible amortization	38		38		41		42		31		— %		23 %
Merger and restructuring expense	2		9		24		39		87		(78) %		(98) %
Other expenses	67		58		58		59		42		16 %		60 %
Total non-interest expense	370		375		394		412		393		(1) %		(6) %
Income before provision for income taxes	292		275		255		282		119		6 %		145 %
Provision for income taxes	72		67		63		67		23		7 %		213 %
Net income	$       220		$       208		$       192		$       215		$         96		6 %		129 %
Weighted average basic shares outstanding (in thousands)	279,221		285,558		290,933		295,376		237,838		(2) %		17 %
Weighted average diluted shares outstanding (in thousands)	280,338		286,472		292,160		296,760		238,925		(2) %		17 %
Earnings per common share – basic	$       0.78		$       0.73		$       0.66		$       0.72		$       0.40		7 %		95 %
Earnings per common share – diluted	$       0.78		$       0.73		$       0.66		$       0.72		$       0.40		7 %		95 %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

 

Columbia Banking System, Inc.
Consolidated Statements of Income
(Unaudited)
		Nine Months Ended				% Change
($ in millions, shares in thousands)		Sep 30, 2026		Sep 30, 2025		Year over Year
Interest income:
Loans and leases		$          2,066		$          1,736		19 %
Interest and dividends on investments:
Taxable		306		238		29 %
Exempt from federal income tax		35		22		59 %
Dividends		11		10		10 %
Temporary investments and interest bearing deposits		40		52		(23) %
Total interest income		2,458		2,058		19 %
Interest expense:
Deposits		528		552		(4) %
Securities sold under agreement to repurchase and federal funds purchased		2		3		(33) %
Borrowings		107		101		6 %
Subordinated and junior subordinated debentures		23		26		(12) %
Total interest expense		660		682		(3) %
Net interest income		1,798		1,376		31 %
Provision for credit losses		88		127		(31) %
Non-interest income:
Service charges on deposits		67		60		12 %
Card-based fees		49		42		17 %
Financial services and trust revenue		45		20		125 %
Residential mortgage banking revenue, net		28		24		17 %
(Loss) gain on investment securities, net		(9)		4		(325) %
Gain on loan and lease sales, net		1		—		nm
(Loss) gain on loans held for investment, at fair value		(6)		11		(155) %
BOLI income		27		16		69 %
Other income		49		31		58 %
Total non-interest income		251		208		21 %
Non-interest expense:
Salaries and employee benefits		583		471		24 %
Occupancy and equipment, net		194		149		30 %
FDIC assessments		27		24		13 %
Intangible amortization		117		85		38 %
Merger and restructuring expense		35		109		(68) %
Legal settlement		—		55		(100) %
Other expenses		183		118		55 %
Total non-interest expense		1,139		1,011		13 %
Income before provision for income taxes		822		446		84 %
Provision for income taxes		202		111		82 %
Net income		$            620		$            335		85 %
Weighted average basic shares outstanding (in thousands)		285,128		218,694		30 %
Weighted average diluted shares outstanding (in thousands)		286,246		219,712		30 %
Earnings per common share – basic		$           2.17		$           1.53		42 %
Earnings per common share – diluted		$           2.16		$           1.53		41 %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

 

Columbia Banking System, Inc.
Consolidated Balance Sheets
(Unaudited)
											% Change
($ in millions, shares in thousands)	Sep 30, 2026		Jun 30, 2026		Mar 31, 2026		Dec 31, 2025		Sep 30, 2025		Seq. Quarter		Year over Year
Assets:
Cash and due from banks	$         572		$         648		$         577		$         511		$         535		(12) %		7 %
Interest-bearing cash and temporary investments	1,165		1,121		1,522		1,869		1,808		4 %		(36) %
Investment securities:
Equity and other, at fair value	128		126		124		113		112		2 %		14 %
Available for sale, at fair value	10,935		11,131		10,915		11,112		11,013		(2) %		(1) %
Held to maturity, at amortized cost	17		17		18		18		18		— %		(6) %
Loans held for sale	45		61		81		262		340		(26) %		(87) %
Loans and leases	46,915		47,166		47,697		47,776		48,462		(1) %		(3) %
Allowance for credit losses on loans and leases	(462)		(458)		(459)		(466)		(473)		1 %		(2) %
Net loans and leases	46,453		46,708		47,238		47,310		47,989		(1) %		(3) %
Restricted equity securities	164		207		168		159		119		(21) %		38 %
Premises and equipment, net	421		424		426		422		416		(1) %		1 %
Goodwill	1,482		1,482		1,482		1,482		1,481		— %		— %
Other intangible assets, net	595		633		671		712		754		(6) %		(21) %
Bank-owned life insurance	1,234		1,227		1,222		1,218		1,199		1 %		3 %
Other assets	1,924		1,595		1,583		1,644		1,712		21 %		12 %
Total assets	$      65,135		$      65,380		$      66,027		$      66,832		$      67,496		— %		(3) %
Liabilities:
Deposits
Non-interest-bearing	$      17,507		$      17,218		$      17,635		$      17,419		$      17,810		2 %		(2) %
Interest-bearing	35,233		34,838		35,854		36,792		37,961		1 %		(7) %
Total deposits	52,740		52,056		53,489		54,211		55,771		1 %		(5) %
Securities sold under agreements to repurchase	165		189		162		207		167		(13) %		(1) %
Borrowings	3,300		4,250		3,400		3,200		2,300		(22) %		43 %
Junior subordinated debentures, at fair value	353		339		333		338		331		4 %		7 %
Subordinated and junior subordinated debentures, at amortized cost	343		97		97		97		107		254 %		221 %
Other liabilities	1,155		897		882		939		1,030		29 %		12 %
Total liabilities	58,056		57,828		58,363		58,992		59,706		— %		(3) %
Shareholders' equity:
Common stock	7,511		7,702		7,896		8,099		8,189		(2) %		(8) %
Retained earnings (accumulated deficit)	276		160		59		(26)		(131)		73 %		nm
Accumulated other comprehensive loss	(708)		(310)		(291)		(233)		(268)		128 %		164 %
Total shareholders' equity	7,079		7,552		7,664		7,840		7,790		(6) %		(9) %
Total liabilities and shareholders' equity	$      65,135		$      65,380		$      66,027		$      66,832		$      67,496		— %		(3) %
Common shares outstanding at period end (in thousands)	276,330		282,817		289,530		295,422		299,147		(2) %		(8) %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."

 

Columbia Banking System, Inc.
Financial Highlights
(Unaudited)
		Quarter Ended										% Change
		Sep 30, 2026		Jun 30, 2026		Mar 31, 2026		Dec 31, 2025		Sep 30, 2025		Seq. Quarter		Year over Year
Per Common Share Data:
Dividends		$   0.37		$   0.37		$   0.37		$   0.37		$   0.36		— %		3 %
Book value		$  25.62		$  26.70		$  26.47		$  26.54		$  26.04		(4) %		(2) %
Tangible book value (1)		$  18.10		$  19.22		$  19.03		$  19.11		$  18.57		(6) %		(3) %
Performance Ratios:
Efficiency ratio (2)		53.08 %		55.15 %		58.03 %		57.30 %		67.29 %		(2.07)		(14.21)
Non-interest expense to average assets (1)		2.25 %		2.29 %		2.41 %		2.44 %		2.74 %		(0.04)		(0.49)
Return on average assets ("ROAA")		1.34 %		1.27 %		1.18 %		1.27 %		0.67 %		0.07		0.67
Pre-provision net revenue ("PPNR") ROAA (1)		1.98 %		1.85 %		1.73 %		1.80 %		1.32 %		0.13		0.66
Return on average common equity		11.78 %		10.99 %		10.00 %		10.92 %		6.19 %		0.79		5.59
Return on average tangible common equity (1)		16.43 %		15.29 %		13.88 %		15.24 %		8.58 %		1.14		7.85
Performance Ratios - Operating: (1)
Operating efficiency ratio, as adjusted (1), (2)		51.34 %		52.92 %		53.68 %		51.39 %		52.32 %		(1.58)		(0.98)
Operating non-interest expense to average assets (1)		2.22 %		2.24 %		2.26 %		2.20 %		2.14 %		(0.02)		0.08
Operating ROAA (1)		1.40 %		1.33 %		1.28 %		1.44 %		1.42 %		0.07		(0.02)
Operating PPNR ROAA (1)		2.05 %		1.92 %		1.87 %		2.02 %		1.89 %		0.13		0.16
Operating return on average common equity (1)		12.27 %		11.46 %		10.89 %		12.34 %		13.15 %		0.81		(0.88)
Operating return on average tangible common equity (1)		17.11 %		15.95 %		15.11 %		17.22 %		18.24 %		1.16		(1.13)
Average Balance Sheet Yields, Rates, & Ratios:
Yield on loans and leases		5.90 %		5.77 %		5.78 %		5.92 %		5.96 %		0.13		(0.06)
Yield on earning assets (2)		5.55 %		5.40 %		5.44 %		5.55 %		5.62 %		0.15		(0.07)
Cost of interest bearing deposits		1.95 %		1.96 %		2.04 %		2.08 %		2.43 %		(0.01)		(0.48)
Cost of interest bearing liabilities		2.20 %		2.21 %		2.24 %		2.27 %		2.65 %		(0.01)		(0.45)
Cost of total deposits		1.29 %		1.32 %		1.39 %		1.40 %		1.66 %		(0.03)		(0.37)
Cost of total funding (3)		1.51 %		1.55 %		1.56 %		1.57 %		1.87 %		(0.04)		(0.36)
Net interest margin (2)		4.11 %		3.93 %		3.96 %		4.06 %		3.84 %		0.18		0.27
Average interest bearing cash / Average interest earning assets		2.23 %		2.33 %		2.59 %		3.12 %		3.41 %		(0.10)		(1.18)
Average loans and leases / Average interest earning assets		78.54 %		78.67 %		78.44 %		78.12 %		78.39 %		(0.13)		0.15
Average loans and leases / Average total deposits		89.38 %		90.19 %		88.58 %		87.34 %		88.39 %		(0.81)		0.99
Average non-interest bearing deposits / Average total deposits		33.47 %		32.90 %		32.26 %		32.45 %		31.41 %		0.57		2.06
Average total deposits / Average total funding (3)		92.42 %		91.88 %		93.58 %		94.52 %		93.47 %		0.54		(1.05)
Select Credit & Capital Ratios:
Non-performing loans and leases to total loans and leases		0.53 %		0.57 %		0.55 %		0.41 %		0.40 %		(0.04)		0.13
Non-performing assets to total assets		0.39 %		0.42 %		0.40 %		0.30 %		0.29 %		(0.03)		0.10
Allowance for credit losses to loans and leases		1.02 %		1.01 %		1.00 %		1.02 %		1.01 %		0.01		0.01
Total risk-based capital ratio (4)		13.8 %		13.5 %		13.5 %		13.6 %		13.4 %		0.30		0.40
Common equity tier 1 risk-based capital ratio (4)		11.5 %		11.7 %		11.7 %		11.8 %		11.6 %		(0.20)		(0.10)

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

 

Columbia Banking System, Inc.
Financial Highlights
(Unaudited)
		Nine Months Ended				% Change
		Sep 30, 2026		Sep 30, 2025		Year over Year
Per Common Share Data:
Dividends		$             1.11		$             1.08		2.78 %
Performance Ratios:
Efficiency ratio (2)		55.40 %		63.66 %		(8.26)
Non-interest expense to average assets (1)		2.32 %		2.54 %		(0.22)
Return on average assets		1.26 %		0.84 %		0.42
PPNR ROAA (1)		1.85 %		1.44 %		0.41
Return on average common equity		10.92 %		8.06 %		2.86
Return on average tangible common equity (1)		15.19 %		11.22 %		3.97
Performance Ratios - Operating: (1)
Operating efficiency ratio, as adjusted (1), (2)		52.63 %		53.07 %		(0.44)
Operating non-interest expense to average assets (1)		2.24 %		2.12 %		0.12
Operating ROAA (1)		1.33 %		1.26 %		0.07
Operating PPNR ROAA (1)		1.95 %		1.81 %		0.14
Operating return on average common equity (1)		11.53 %		12.10 %		(0.57)
Operating return on average tangible common equity (1)		16.04 %		16.85 %		(0.81)
Average Balance Sheet Yields, Rates, & Ratios:
Yield on loans and leases		5.82 %		5.96 %		(0.14)
Yield on earning assets (2)		5.46 %		5.58 %		(0.12)
Cost of interest bearing deposits		1.99 %		2.49 %		(0.50)
Cost of interest bearing liabilities		2.22 %		2.74 %		(0.52)
Cost of total deposits		1.33 %		1.70 %		(0.37)
Cost of total funding (3)		1.54 %		1.94 %		(0.40)
Net interest margin (2)		4.00 %		3.73 %		0.27
Average interest bearing cash / Average interest earning assets		2.38 %		3.18 %		(0.80)
Average loans and leases / Average interest earning assets		78.55 %		78.64 %		(0.09)
Average loans and leases / Average total deposits		89.37 %		89.55 %		(0.18)
Average non-interest bearing deposits / Average total deposits		32.88 %		31.51 %		1.37
Average total deposits / Average total funding (3)		92.63 %		92.46 %		0.17

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

 

Columbia Banking System, Inc.
Loan & Lease Portfolio Balances and Mix
(Unaudited)
	Sep 30, 2026		Jun 30, 2026		Mar 31, 2026		Dec 31, 2025		Sep 30, 2025		% Change
($ in millions)	Amount		Amount		Amount		Amount		Amount		Seq. Quarter		Year over Year
Loans and leases:
Commercial real estate: (1)
Non-owner occupied term	$         7,338		$         7,584		$         8,113		$         8,206		$         8,444		(3) %		(13) %
Owner occupied term	7,219		7,405		7,258		7,314		7,361		(3) %		(2) %
Multifamily	9,937		10,122		10,173		10,281		10,377		(2) %		(4) %
Construction & development	1,642		1,529		1,670		1,707		2,071		7 %		(21) %
Residential development	361		369		373		362		367		(2) %		(2) %
Commercial:
Term	7,097		7,004		6,887		6,713		6,590		1 %		8 %
Lines of credit & other	4,055		3,794		3,804		3,643		3,582		7 %		13 %
Leases & equipment finance	1,618		1,617		1,619		1,599		1,614		— %		— %
Residential:
Mortgage	5,313		5,402		5,483		5,624		5,722		(2) %		(7) %
Home equity loans & lines	2,179		2,176		2,147		2,149		2,153		— %		1 %
Consumer & other	156		164		170		178		181		(5) %		(14) %
Total loans and leases, net of deferred fees and costs	$       46,915		$       47,166		$       47,697		$       47,776		$       48,462		(1) %		(3) %
Loans and leases mix:
Commercial real estate: (1)
Non-owner occupied term	16 %		16 %		17 %		17 %		18 %
Owner occupied term	16 %		16 %		15 %		15 %		15 %
Multifamily	21 %		22 %		21 %		22 %		21 %
Construction & development	3 %		3 %		4 %		4 %		4 %
Residential development	1 %		1 %		1 %		1 %		1 %
Commercial:
Term	15 %		15 %		15 %		14 %		14 %
Lines of credit & other	9 %		8 %		8 %		8 %		7 %
Leases & equipment finance	3 %		3 %		3 %		3 %		3 %
Residential:
Mortgage	11 %		11 %		11 %		12 %		12 %
Home equity loans & lines	5 %		5 %		5 %		4 %		4 %
Consumer & other	— %		— %		— %		— %		1 %
Total	100 %		100 %		100 %		100 %		100 %

(1)	During the three months ended June 30, 2026, the Company aligned the presentation of certain loans with its established loan classification methodology. This resulted in approximately $174 million of loans being reported within different commercial real estate loan categories, primarily multifamily loans, with a corresponding decrease in non-owner occupied term loans.

 

Columbia Banking System, Inc.
Deposit Portfolio Balances and Mix
(Unaudited)
	Sep 30, 2026		Jun 30, 2026		Mar 31, 2026		Dec 31, 2025		Sep 30, 2025		% Change
($ in millions)	Amount		Amount		Amount		Amount		Amount		Seq. Quarter		Year over Year
Deposits:
Demand, non-interest bearing	$       17,507		$       17,218		$       17,635		$       17,419		$       17,810		2 %		(2) %
Demand, interest bearing	11,616		11,093		10,860		10,763		11,675		5 %		(1) %
Money market	16,935		16,415		16,843		17,013		16,816		3 %		1 %
Savings	2,375		2,392		2,437		2,442		2,504		(1) %		(5) %
Time	4,307		4,938		5,714		6,574		6,966		(13) %		(38) %
Total	$       52,740		$       52,056		$       53,489		$       54,211		$       55,771		1 %		(5) %
Total core deposits (1)	$       50,644		$       49,488		$       50,245		$       50,174		$       51,535		2 %		(2) %
Deposit mix:
Demand, non-interest bearing	33 %		33 %		33 %		32 %		32 %
Demand, interest bearing	22 %		21 %		20 %		20 %		21 %
Money market	32 %		32 %		31 %		31 %		30 %
Savings	5 %		5 %		5 %		5 %		5 %
Time	8 %		9 %		11 %		12 %		12 %
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)		Sep 30, 2026		Jun 30, 2026		Mar 31, 2026		Dec 31, 2025		Sep 30, 2025		Seq. Quarter		Year over Year
Non-performing assets: (1)
Loans and leases on non-accrual status:
	Commercial real estate	$          84		$          96		$          91		$          50		$          53		(13) %		58 %
	Commercial	73		84		96		66		67		(13) %		9 %
	Total loans and leases on non-accrual status	157		180		187		116		120		(13) %		31 %
Loans and leases past due 90+ days and accruing: (2)
	Commercial real estate	1		4		3		2		—		(75) %		nm
	Commercial	16		4		2		8		5		300 %		220 %
	Residential (2)	76		80		69		72		71		(5) %		7 %
	Total loans and leases past due 90+ days and accruing (2)	93		88		74		82		76		6 %		22 %
Total non-performing loans and leases (1), (2)		250		268		261		198		196		(7) %		28 %
Other real estate owned		5		5		3		2		3		0 %		67 %
Total non-performing assets (1), (2)		$        255		$        273		$        264		$        200		$        199		(7) %		28 %
Loans and leases past due 31-89 days		$          95		$        125		$        168		$          94		$          85		(24) %		12 %
Loans and leases past due 31-89 days to total loans and leases		0.20 %		0.27 %		0.35 %		0.20 %		0.18 %		(0.07)		0.02
Non-performing loans and leases to total loans and leases (1), (2)		0.53 %		0.57 %		0.55 %		0.41 %		0.40 %		(0.04)		0.13
Non-performing assets to total assets (1), (2)		0.39 %		0.42 %		0.40 %		0.30 %		0.29 %		(0.03)		0.10
Non-accrual loans and leases to total loans and leases(2)		0.33 %		0.38 %		0.39 %		0.24 %		0.25 %		(0.05)		0.08

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 $71 million, $78 million, $88 million, $79 million, and $70 million at September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025, and September 30, 2025, respectively.
(2)	Excludes certain mortgage loans that carry a government guarantee, which Columbia has the unilateral right to repurchase but has not done so, totaling $4 million, $4 million, $4 million, $3 million, and $2 million at September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025, and September 30, 2025, respectively.

 

Columbia Banking System, Inc.
Credit Quality – Allowance for Credit Losses
(Unaudited)
		Quarter Ended										% Change
($ in millions)		Sep 30, 2026		Jun 30, 2026		Mar 31, 2026		Dec 31, 2025		Sep 30, 2025		Seq. Quarter		Year over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period		$         458		$         459		$         466		$         473		$         421		0 %		9 %
Initial ACL recorded for PCD loans acquired during the period		—		—		—		—		5		nm		(100) %
Provision for credit losses on loans and leases		32		29		28		23		69		10 %		(54) %
Charge-offs
	Commercial real estate	—		(1)		—		(8)		(3)		nm		nm
	Commercial	(33)		(32)		(39)		(23)		(22)		3 %		50 %
	Residential	—		—		—		(1)		—		nm		nm
	Consumer & other	(3)		(2)		(1)		(1)		(2)		50 %		50 %
	Total charge-offs	(36)		(35)		(40)		(33)		(27)		3 %		33 %
Recoveries
	Commercial real estate	1		—		—		—		—		nm		nm
	Commercial	7		4		4		3		4		75 %		75 %
	Residential	—		—		—		—		—		nm		nm
	Consumer & other	—		1		1		—		1		(100) %		(100) %
	Total recoveries	8		5		5		3		5		60 %		60 %
Net charge-offs
	Commercial real estate	1		(1)		—		(8)		(3)		nm		nm
	Commercial	(26)		(28)		(35)		(20)		(18)		(7) %		44 %
	Residential	—		—		—		(1)		—		nm		nm
	Consumer & other	(3)		(1)		—		(1)		(1)		200 %		200 %
	Total net charge-offs	(28)		(30)		(35)		(30)		(22)		(7) %		27 %
Balance, end of period		$         462		$         458		$         459		$         466		$         473		1 %		(2) %
Reserve for unfunded commitments
Balance, beginning of period		$           17		$           19		$           19		$           19		$           18		(11) %		(6) %
(Recapture) provision for credit losses on unfunded commitments		1		(2)		—		—		1		nm		0 %
Balance, end of period		18		17		19		19		19		6 %		(5) %
Total Allowance for credit losses (ACL)		$         480		$         475		$         478		$         485		$         492		1 %		(2) %
Net charge-offs to average loans and leases (annualized)		0.24 %		0.25 %		0.30 %		0.25 %		0.22 %		(0.01)		0.02
Recoveries to gross charge-offs		22.22 %		14.29 %		12.50 %		9.09 %		18.52 %		7.93		3.70
ACLLL to loans and leases		0.98 %		0.97 %		0.96 %		0.98 %		0.98 %		0.01		—
ACL to loans and leases		1.02 %		1.01 %		1.00 %		1.02 %		1.01 %		0.01		0.01

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

 

Columbia Banking System, Inc.
Credit Quality – Allowance for Credit Losses
(Unaudited)
			Nine Months Ended				% Change
($ in millions)			Sep 30, 2026		Sep 30, 2025		Year over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period			$               466		$               425		10 %
Initial ACL recorded for PCD loans acquired during the period			—		5		(100) %
Provision for credit losses on loans and leases			89		124		(28) %
Charge-offs
	Commercial real estate		(1)		(3)		(67) %
	Commercial		(104)		(88)		18 %
	Residential		—		(1)		nm
	Consumer & other		(6)		(4)		50 %
	Total charge-offs		(111)		(96)		16 %
Recoveries
	Commercial real estate		1		—		nm
	Commercial		15		13		15 %
	Residential		—		—		nm
	Consumer & other		2		2		0 %
	Total recoveries		18		15		20 %
Net charge-offs
	Commercial real estate		—		(3)		nm
	Commercial		(89)		(75)		19 %
	Residential		—		(1)		nm
	Consumer & other		(4)		(2)		100 %
	Total net charge-offs		(93)		(81)		15 %
Balance, end of period			$               462		$               473		(2) %
Reserve for unfunded commitments
Balance, beginning of period			$                 19		$                 16		19 %
(Recapture) provision for credit losses on unfunded commitments			(1)		3		(133) %
Balance, end of period			18		19		(5) %
Total Allowance for credit losses (ACL)			$               480		$               492		(2) %
Net charge-offs to average loans and leases (annualized)			0.26 %		0.28 %		(0.02)
Recoveries to gross charge-offs			16.22 %		15.63 %		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
	September 30, 2026						June 30, 2026						September 30, 2025
($ 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	$              57		$           1		6.39 %		$              66		$         —		6.86 %		$              80		$           1		7.14 %
Loans and leases (1)	46,951		698		5.90 %		47,419		683		5.77 %		41,164		618		5.96 %
Taxable securities	10,251		109		4.27 %		10,173		102		3.97 %		8,523		93		4.35 %
Non-taxable securities (2)	1,188		13		4.75 %		1,219		15		4.63 %		950		10		4.26 %
Temporary investments and interest-bearing cash	1,333		13		3.74 %		1,402		13		3.71 %		1,793		20		4.40 %
Total interest-earning assets (1), (2)	59,780		$       834		5.55 %		60,279		$       813		5.40 %		52,510		$       742		5.62 %
Goodwill and other intangible assets	2,096						2,136						1,719
Other assets	3,241						3,217						2,594
Total assets	$       65,117						$       65,632						$       56,823
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$       11,373		$         48		1.70 %		$       11,002		$         45		1.65 %		$         9,630		$         53		2.17 %
Money market deposits	16,578		89		2.11 %		16,658		87		2.10 %		13,476		83		2.46 %
Savings deposits	2,392		1		0.16 %		2,413		1		0.14 %		2,358		1		0.16 %
Time deposits	4,605		33		2.89 %		5,205		40		3.03 %		6,481		58		3.57 %
Total interest-bearing deposits	34,948		171		1.95 %		35,278		173		1.96 %		31,945		195		2.43 %
Repurchase agreements and federal funds purchased	173		—		1.75 %		163		1		1.65 %		176		1		2.15 %
Borrowings	3,664		38		4.02 %		4,050		39		3.90 %		2,648		30		4.54 %
Subordinated and junior subordinated debentures	471		8		6.99 %		431		8		7.07 %		430		9		7.99 %
Total interest-bearing liabilities	39,256		$       217		2.20 %		39,922		$       221		2.21 %		35,199		$       235		2.65 %
Non-interest-bearing deposits	17,584						17,301						14,627
Other liabilities	870						815						840
Total liabilities	57,710						58,038						50,666
Common equity	7,407						7,594						6,157
Total liabilities and shareholders' equity	$       65,117						$       65,632						$       56,823
NET INTEREST INCOME (2)			$       617						$       592						$       507
NET INTEREST SPREAD (2)					3.35 %						3.19 %						2.97 %
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)					4.11 %						3.93 %						3.84 %

(1)	Non-accrual loans and leases are included in the average balance.
(2)	Tax-exempt income was adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $2 million for the three months ended September 30, 2026, as compared to $3 million for the three months ended June 30, 2026 and $2 million for the three months ended September 30, 2025.

 

Columbia Banking System, Inc.
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates
(Unaudited)
	Nine Months Ended
	September 30, 2026						September 30, 2025
($ 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	$               104		$               4		5.78 %		$              69		$               3		6.74 %
Loans and leases (1)	47,358		2,062		5.82 %		38,843		1,733		5.96 %
Taxable securities	10,174		317		4.15 %		8,053		248		4.11 %
Non-taxable securities (2)	1,220		42		4.63 %		856		26		4.04 %
Temporary investments and interest-bearing cash	1,437		40		3.69 %		1,570		52		4.44 %
Total interest-earning assets (1), (2)	60,293		$        2,465		5.46 %		49,391		$        2,062		5.58 %
Goodwill and other intangible assets	2,136						1,565
Other assets	3,222						2,340
Total assets	$          65,651						$       53,296
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$          11,054		$           136		1.65 %		$         8,832		$           147		2.23 %
Money market deposits	16,694		264		2.11 %		12,295		225		2.44 %
Savings deposits	2,416		3		0.14 %		2,332		2		0.13 %
Time deposits	5,402		125		3.10 %		6,249		178		3.81 %
Total interest-bearing deposits	35,566		528		1.99 %		29,708		552		2.49 %
Repurchase agreements and federal funds purchased	174		2		1.76 %		192		3		2.09 %
Borrowings	3,597		107		3.96 %		2,913		101		4.63 %
Subordinated and junior subordinated debentures	446		23		7.03 %		432		26		7.99 %
Total interest-bearing liabilities	39,783		$           660		2.22 %		33,245		$           682		2.74 %
Non-interest-bearing deposits	17,422						13,668
Other liabilities	852						826
Total liabilities	58,057						47,739
Common equity	7,594						5,557
Total liabilities and shareholders' equity	$          65,651						$       53,296
NET INTEREST INCOME (2)			$        1,805						$        1,380
NET INTEREST SPREAD (2)					3.24 %						2.84 %
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)					4.00 %						3.73 %

(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 $7 million for the nine months ended September 30, 2026, as compared to $4 million for the same period in 2025.

 

Columbia Banking System, Inc.
Residential Mortgage Banking Activity
(Unaudited)
	Quarter Ended										%
($ in millions)	Sep 30, 2026		Jun 30, 2026		Mar 31, 2026		Dec 31, 2025		Sep 30, 2025		Seq. Quarter		Year over Year
Residential mortgage banking revenue:
Origination and sale	$             5		$             6		$             5		$             5		$             5		(17) %		— %
Servicing	6		5		6		6		5		20 %		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	13		1		6		(1)		—		nm		nm
MSR hedge (loss) gain	(12)		(2)		(2)		—		—		500 %		nm
Total	$             9		$             7		$           12		$             7		$             7		29 %		29 %
Closed loan volume for sale	$         172		$         195		$         171		$         176		$         166		(12) %		4 %
Gain on sale margin	2.91 %		3.08 %		2.92 %		2.84 %		3.01 %		-0.17		-0.10
Residential mortgage servicing rights:
Balance, beginning of period	$         105		$         105		$           99		$         101		$         103		— %		2 %
Additions for new MSR capitalized	3		2		3		2		1		50 %		200 %
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	13		1		6		(1)		—		nm		nm
Balance, end of period	$         118		$         105		$         105		$           99		$         101		12 %		17 %
Residential mortgage loans serviced for others	$      7,686		$      7,734		$      7,812		$      7,755		$      7,797		(1) %		(1) %
MSR as % of serviced portfolio	1.54 %		1.36 %		1.34 %		1.28 %		1.30 %		0.18		0.24

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

 

Columbia Banking System, Inc.
Residential Mortgage Banking Activity
(Unaudited)
	Nine Months Ended				% Change
($ in millions)	Sep 30, 2026		Sep 30, 2025		Year over Year
Residential mortgage banking revenue:
Origination and sale	$               16		$               14		14 %
Servicing	17		17		0 %
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time	(9)		(9)		0 %
Changes due to valuation inputs or assumptions	20		(3)		nm
MSR hedge (loss) gain	(16)		5		(420) %
Total	$               28		$               24		17 %
Closed loan volume for sale	$             538		$             466		15 %
Gain on sale margin	2.97 %		3.00 %		(0.03)
Residential mortgage servicing rights:
Balance, beginning of period	$               99		$             108		(8) %
Additions for new MSR capitalized	8		5		60 %
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time	(9)		(9)		0 %
Changes due to valuation inputs or assumptions	20		(3)		nm
Balance, end of period	$             118		$             101		17 %

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)			Sep 30, 2026		Jun 30, 2026		Mar 31, 2026		Dec 31, 2025		Sep 30, 2025		Seq. Quarter		Year over Year
Total shareholders' equity	a		$       7,079		$       7,552		$       7,664		$       7,840		$       7,790		(6) %		(9) %
Less: Goodwill			1,482		1,482		1,482		1,482		1,481		— %		— %
Less: Other intangible assets, net			595		633		671		712		754		(6) %		(21) %
Tangible common shareholders' equity	b		$       5,002		$       5,437		$       5,511		$       5,646		$       5,555		(8) %		(10) %
Total assets	c		$     65,135		$     65,380		$     66,027		$     66,832		$     67,496		— %		(3) %
Less: Goodwill			1,482		1,482		1,482		1,482		1,481		— %		— %
Less: Other intangible assets, net			595		633		671		712		754		(6) %		(21) %
Tangible assets	d		$     63,058		$     63,265		$     63,874		$     64,638		$     65,261		— %		(3) %
Common shares outstanding at period end (in thousands)	e		276,330		282,817		289,530		295,422		299,147		(2) %		(8) %
Total shareholders' equity to total assets ratio	a / c		10.87 %		11.55 %		11.61 %		11.73 %		11.54 %		(0.68)		(0.67)
Tangible common equity to tangible assets ratio	b / d		7.93 %		8.59 %		8.63 %		8.73 %		8.51 %		(0.66)		(0.58)
Book value per common share	a / e		$       25.62		$       26.70		$       26.47		$       26.54		$       26.04		(4) %		(2) %
Tangible book value per common share	b / e		$       18.10		$       19.22		$       19.03		$       19.11		$       18.57		(6) %		(3) %

 

Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Income Statements, as adjusted
(Unaudited)
			Quarter Ended										% Change
($ in millions)			Sep 30, 2026		Jun 30, 2026		Mar 31, 2026		Dec 31, 2025		Sep 30, 2025		Seq. Quarter		Year over Year
Non-Interest Income Adjustments
(Loss) gain on investment securities, net			$               (8)		$               (1)		$               —		$                 2		$                 2		nm		(500) %
Gain (loss) on swap derivatives			3		—		—		1		(1)		nm		nm
(Loss) gain on loans held for investment, at fair value			(3)		(1)		(2)		—		4		200 %		(175) %
Change in fair value of MSR due to valuation inputs or assumptions			13		1		6		(1)		—		nm		nm
MSR hedge loss			(12)		(2)		(2)		—		—		500 %		nm
Total non-interest income adjustments	a		$               (7)		$               (3)		$                 2		$                 2		$                 5		133 %		(240) %
Non-Interest Expense Adjustments
Merger and restructuring expense			$                 2		$                 9		$               24		$               39		$               87		(78) %		(98) %
Exit and disposal costs			3		—		1		1		—		nm		nm
FDIC special assessment			—		—		—		(5)		(1)		nm		nm
Legal settlement and other non-operating expense			—		—		—		4		—		nm		nm
Total non-interest expense adjustments	b		$                 5		$                 9		$               25		$               39		$               86		(44) %		(94) %
Net interest income	c		$             615		$             589		$             594		$             627		$             505		4 %		22 %
Non-interest income (GAAP)	d		$               80		$               88		$               83		$               90		$               77		(9) %		4 %
Less: Non-interest income adjustments	a		7		3		(2)		(2)		(5)		133 %		nm
Operating non-interest income (non-GAAP)	e		$               87		$               91		$               81		$               88		$               72		(4) %		21 %
Revenue (GAAP)	f=c+d		$             695		$             677		$             677		$             717		$             582		3 %		19 %
Operating revenue (non-GAAP)	g=c+e		$             702		$             680		$             675		$             715		$             577		3 %		22 %
Non-interest expense (GAAP)	h		$             370		$             375		$             394		$             412		$             393		(1) %		(6) %
Less: Non-interest expense adjustments	b		(5)		(9)		(25)		(39)		(86)		(44) %		(94) %
Operating non-interest expense (non-GAAP)	i		$             365		$             366		$             369		$             373		$             307		— %		19 %
Net income (GAAP)	j		$             220		$             208		$             192		$             215		$               96		6 %		129 %
Provision for income taxes			72		67		63		67		23		7 %		213 %
Income before provision for income taxes			292		275		255		282		119		6 %		145 %
Provision for credit losses			33		27		28		23		70		22 %		(53) %
Pre-provision net revenue (PPNR) (non-GAAP)	k		325		302		283		305		189		8 %		72 %
Less: Non-interest income adjustments	a		7		3		(2)		(2)		(5)		133 %		nm
Add: Non-interest expense adjustments	b		5		9		25		39		86		(44) %		(94) %
Operating PPNR (non-GAAP)	l		$             337		$             314		$             306		$             342		$             270		7 %		25 %
Net income (GAAP)	j		$             220		$             208		$             192		$             215		$               96		6 %		129 %
Acquisition-related provision expense			—		—		—		—		70		nm		(100) %
Less: Non-interest income adjustments	a		7		3		(2)		(2)		(5)		133 %		nm
Add: Non-interest expense adjustments	b		5		9		25		39		86		(44) %		(94) %
Tax effect of adjustments			(3)		(3)		(6)		(9)		(43)		— %		(93) %
Operating net income (non-GAAP)	m		$             229		$             217		$             209		$             243		$             204		6 %		12 %

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

 

Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Average Balances, Earnings Per Share, and Performance Metrics, as adjusted
(Unaudited)
			Quarter Ended										% Change
($ in millions, shares in thousands)			Sep 30, 2026		Jun 30, 2026		Mar 31, 2026		Dec 31, 2025		Sep 30, 2025		Seq. Quarter		Year over Year
Average assets	n		$     65,117		$     65,632		$     66,215		$     67,114		$     56,823		(1) %		15 %
Less: Average goodwill and other intangible assets, net			2,096		2,136		2,175		2,217		1,719		(2) %		22 %
Average tangible assets	o		$     63,021		$     63,496		$     64,040		$     64,897		$     55,104		(1) %		14 %
Average common shareholders' equity	p		$       7,407		$       7,594		$       7,786		$      7,814		$       6,157		(2) %		20 %
Less: Average goodwill and other intangible assets, net			2,096		2,136		2,175		2,217		1,719		(2) %		22 %
Average tangible common equity	q		$       5,311		$       5,458		$       5,611		$      5,597		$       4,438		(3) %		20 %
Weighted average basic shares outstanding (in thousands)	r		279,221		285,558		290,933		295,376		237,838		(2) %		17 %
Weighted average diluted shares outstanding (in thousands)	s		280,338		286,472		292,160		296,760		238,925		(2) %		17 %
Select Per-Share & Performance Metrics
Earnings per share - basic	j / r		$         0.78		$         0.73		$         0.66		$        0.72		$         0.40		7 %		95 %
Earnings per share - diluted	j / s		$         0.78		$         0.73		$         0.66		$        0.72		$         0.40		7 %		95 %
Efficiency ratio (1)	h / f		53.08 %		55.15 %		58.03 %		57.30 %		67.29 %		(2.07)		(14.21)
Non-interest expense to average assets	h / n		2.25 %		2.29 %		2.41 %		2.44 %		2.74 %		(0.04)		(0.49)
Return on average assets	j / n		1.34 %		1.27 %		1.18 %		1.27 %		0.67 %		0.07		0.67
Return on average tangible assets	j / o		1.38 %		1.31 %		1.22 %		1.31 %		0.69 %		0.07		0.69
PPNR return on average assets	k / n		1.98 %		1.85 %		1.73 %		1.80 %		1.32 %		0.13		0.66
Return on average common equity	j / p		11.78 %		10.99 %		10.00 %		10.92 %		6.19 %		0.79		5.59
Return on average tangible common equity	j / q		16.43 %		15.29 %		13.88 %		15.24 %		8.58 %		1.14		7.85
Operating Per-Share & Performance Metrics
Operating earnings per share - basic	m / r		$         0.82		$         0.76		$         0.72		$        0.82		$         0.86		8 %		(5) %
Operating earnings per share - diluted	m / s		$         0.82		$         0.76		$         0.72		$        0.82		$         0.85		8 %		(4) %
Operating efficiency ratio, as adjusted (1)	u / y		51.34 %		52.92 %		53.68 %		51.39 %		52.32 %		(1.58)		(0.98)
Operating non-interest expense to average assets	i / n		2.22 %		2.24 %		2.26 %		2.20 %		2.14 %		(0.02)		0.08
Operating return on average assets	m / n		1.40 %		1.33 %		1.28 %		1.44 %		1.42 %		0.07		(0.02)
Operating return on average tangible assets	m / o		1.44 %		1.37 %		1.32 %		1.49 %		1.47 %		0.07		(0.03)
Operating PPNR return on average assets	l / n		2.05 %		1.92 %		1.87 %		2.02 %		1.89 %		0.13		0.16
Operating return on average common equity	m / p		12.27 %		11.46 %		10.89 %		12.34 %		13.15 %		0.81		(0.88)
Operating return on average tangible common equity	m / q		17.11 %		15.95 %		15.11 %		17.22 %		18.24 %		1.16		(1.13)

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

 

Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Operating Efficiency Ratio, as adjusted
(Unaudited)
			Quarter Ended										% Change
($ in millions)			Sep 30, 2026		Jun 30, 2026		Mar 31, 2026		Dec 31, 2025		Sep 30, 2025		Seq. Quarter		Year over Year
Non-interest expense (GAAP)	h		$          370		$          375		$          394		$          412		$          393		(1) %		(6) %
Less: Non-interest expense adjustments	b		(5)		(9)		(25)		(39)		(86)		(44) %		(94) %
Operating non-interest expense (non-GAAP)	i		365		366		369		373		307		— %		19 %
Less: B&O taxes	t		(2)		(3)		(4)		(3)		(3)		(33) %		(33) %
Operating non-interest expense, excluding B&O taxes (non-GAAP)	u		$          363		$          363		$          365		$          370		$          304		— %		19 %
Net interest income (tax equivalent) (1)	v		$          617		$          592		$          596		$          629		$          507		4 %		22 %
Non-interest income (GAAP)	d		80		88		83		90		77		(9) %		4 %
Add: BOLI tax equivalent adjustment (1)	w		3		3		3		3		2		— %		50 %
Total Revenue, excluding BOLI tax equivalent adjustments (tax equivalent)	x		700		683		682		722		586		2 %		19 %
Less: Non-interest income adjustments	a		7		3		(2)		(2)		(5)		133 %		nm
Total Adjusted Operating Revenue, excluding BOLI tax equivalent adjustments (tax equivalent) (non-GAAP)	y		$          707		$          686		$          680		$          720		$          581		3 %		22 %
Efficiency ratio (1)	h / f		53.08 %		55.15 %		58.03 %		57.30 %		67.29 %		(2.07)		(14.21)
Operating efficiency ratio, as adjusted (non-GAAP) (1)	u / y		51.34 %		52.92 %		53.68 %		51.39 %		52.32 %		(1.58)		(0.98)

nm	= Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
(1)	Tax-exempt income was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.

 

Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Income Statements, as adjusted
(Unaudited)
			Nine Months Ended				% Change
($ in millions)			Sep 30, 2026		Sep 30, 2025		Year over Year
Non-Interest Income Adjustments
(Loss) gain on investment securities, net			$                      (9)		$                        4		(325) %
Gain (loss) on swap derivatives			3		(3)		nm
(Loss) gain on loans held for investment, at fair value			(6)		11		(155) %
Change in fair value of MSR due to valuation inputs or assumptions			20		(3)		nm
MSR hedge (loss) gain			(16)		5		(420) %
Total non-interest income adjustments	a		$                      (8)		$                      14		(157) %
Non-Interest Expense Adjustments
Merger and restructuring expense			$                      35		$                    109		(68) %
Exit and disposal costs			4		1		300 %
FDIC special assessment			—		(1)		nm
Legal settlement and other non-operating expense			—		55		(100) %
Total non-interest expense adjustments	b		$                      39		$                    164		(76) %
Net interest income	c		$                 1,798		$                 1,376		31 %
Non-interest income (GAAP)	d		$                    251		$                    208		21 %
Less: Non-interest income adjustments	a		8		(14)		nm
Operating non-interest income (non-GAAP)	e		$                    259		$                    194		34 %
Revenue (GAAP)	f=c+d		$                 2,049		$                 1,584		29 %
Operating revenue (non-GAAP)	g=c+e		$                 2,057		$                 1,570		31 %
Non-interest expense (GAAP)	h		$                 1,139		$                 1,011		13 %
Less: Non-interest expense adjustments	b		(39)		(164)		(76) %
Operating non-interest expense (non-GAAP)	i		$                 1,100		$                    847		30 %
Net income (GAAP)	j		$                    620		$                    335		85 %
Provision for income taxes			202		111		82 %
Income before provision for income taxes			822		446		84 %
Provision for credit losses			88		127		(31) %
Pre-provision net revenue (PPNR) (non-GAAP)	k		910		573		59 %
Less: Non-interest income adjustments	a		8		(14)		nm
Add: Non-interest expense adjustments	b		39		164		(76) %
Operating PPNR (non-GAAP)	l		$                    957		$                    723		32 %
Net income (GAAP)	j		$                    620		$                    335		85 %
Less: Non-interest income adjustments	a		8		(14)		nm
Add: Non-interest expense adjustments	b		39		164		(76) %
Tax effect of adjustments			(12)		(52)		(77) %
Operating net income (non-GAAP)	m		$                    655		$                    503		30 %

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

 

Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Average Balances, Earnings Per Share, and Performance Metrics, as adjusted
(Unaudited)
			Nine Months Ended				% Change
($ in millions, shares in thousands)			Sep 30, 2026		Sep 30, 2025		Year over Year
Average assets	n		$                65,651		$                53,296		23 %
Less: Average goodwill and other intangible assets, net			2,136		1,565		36 %
Average tangible assets	o		$                63,515		$                51,731		23 %
Average common shareholders' equity	p		$                 7,594		$                 5,557		37 %
Less: Average goodwill and other intangible assets, net			2,136		1,565		36 %
Average tangible common equity	q		$                 5,458		$                 3,992		37 %
Weighted average basic shares outstanding	r		285,128		218,694		30 %
Weighted average diluted shares outstanding	s		286,246		219,712		30 %
Select Per-Share & Performance Metrics
Earnings per share - basic	j / r		$                   2.17		$                   1.53		42 %
Earnings per share - diluted	j / s		$                   2.16		$                   1.53		41 %
Efficiency ratio (1)	h / f		55.40 %		63.66 %		(8.26)
Non-interest expense to average assets	h/n		2.32 %		2.54 %		(0.22)
Return on average assets	j / n		1.26 %		0.84 %		0.42
Return on average tangible assets	j / o		1.31 %		0.87 %		0.44
PPNR return on average assets	k/n		1.85 %		1.44 %		0.41
Return on average common equity	j / p		10.92 %		8.06 %		2.86
Return on average tangible common equity	j / q		15.19 %		11.22 %		3.97
Operating Per-Share & Performance Metrics
Operating earnings per share - basic	m / r		$                   2.30		$                   2.30		— %
Operating earnings per share - diluted	m / s		$                   2.29		$                   2.29		— %
Operating efficiency ratio, as adjusted (1)	u / y		52.63 %		53.07 %		(0.44)
Operating non-interest expense to average assets	i/n		2.24 %		2.12 %		0.12
Operating return on average assets	m / n		1.33 %		1.26 %		0.07
Operating return on average tangible assets	m / o		1.38 %		1.30 %		0.08
Operating PPNR return on average assets	l / n		1.95 %		1.81 %		0.14
Operating return on average common equity	m / p		11.53 %		12.10 %		(0.57)
Operating return on average tangible common equity	m / q		16.04 %		16.85 %		(0.81)

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

 

Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Operating Efficiency Ratio, as adjusted
(Unaudited)
			Nine Months Ended				% change
($ in millions)			Sep 30, 2026		Sep 30, 2025		Year over Year
Non-interest expense (GAAP)	h		$                 1,139		$                 1,011		13 %
Less: Non-interest expense adjustments	b		(39)		(164)		(76) %
Operating non-interest expense (non-GAAP)	i		1,100		847		30 %
Less: B&O taxes	t		(9)		(9)		— %
Operating non-interest expense, excluding B&O taxes (non-GAAP)	u		$                 1,091		$                    838		30 %
Net interest income (tax equivalent) (1)	v		$                 1,805		$                 1,380		31 %
Non-interest income (GAAP)	d		251		208		21 %
Add: BOLI tax equivalent adjustment (1)	w		9		5		80 %
Total Revenue, excluding BOLI tax equivalent adjustments (tax equivalent)	x		2,065		1,593		30 %
Less: Non-interest income adjustments	a		8		(14)		nm
Total Adjusted Operating Revenue, excluding BOLI tax equivalent adjustments (tax equivalent) (non-GAAP)	y		$                 2,073		$                 1,579		31 %
Efficiency ratio (1)	h /f		55.40 %		63.66 %		(8.26)
Operating efficiency ratio, as adjusted (non-GAAP) (1)	u / y		52.63 %		53.07 %		(0.44)

nm	= Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
(1)	Tax-exempt income was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.

 

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SOURCE Columbia Banking System, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much stock can Columbia Banking System repurchase under its new authorization?

Columbia Banking System authorized repurchases of up to $1.2 billion of common stock, with no expiration date. The authorization follows completion of its previous repurchase plan.

What were Columbia Banking System's third-quarter 2026 earnings?

Columbia Banking System reported $220 million in net income and diluted earnings of $0.78 per common share for third-quarter 2026. Diluted earnings were $0.73 in second-quarter 2026 and $0.40 in third-quarter 2025.

How much liquidity did Columbia Banking System have at September 30, 2026?

Columbia Banking System had $26.0 billion in available liquidity at September 30, 2026, including secured off-balance-sheet credit lines. This represented 40% of total assets, 49% of total deposits and 121% of uninsured deposits.

What was Columbia Banking System's allowance for credit losses at September 30, 2026?

The allowance for credit losses was $480 million, or 1.02% of loans and leases, at September 30, 2026. It was $475 million, or 1.01% of loans and leases, at June 30, 2026.