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Columbia Banking System Inc

COLUMBIA BANKING SYSTEM, INC. REPORTS SECOND QUARTER 2025 RESULTS

TACOMA, Wash. , July 24, 2025 /PRNewswire/ --

 

$152 million


$160 million


$0.73


$0.76

Net income


Operating net income 1


Earnings per common share -
diluted


Operating earnings per common
share - diluted 1

 

CEO Commentary

"Our second quarter results demonstrate our focus on profitability and balance sheet optimization," said Clint Stein, President and CEO. "Commercial loan growth outpaced runoff in transactional portfolios while the net interest margin benefited from loan repricing, controlled deposit pricing, and a rebound in securities yields. Continued expense discipline further supported our strong performance, even as we continue to reinvest in our growing franchise—opening three new branches and planning for the closing of our Pacific Premier acquisition. While customer deposits declined due to normal seasonal activity and increased cash usage, our Business Bank of Choice strategy continues to attract new relationships. We remain laser focused on delivering top-quartile performance and enhancing long-term tangible book value while returning excess capital to our shareholders."

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

 

2Q25 HIGHLIGHTS (COMPARED TO 1Q25)





Net Interest
Income and
NIM

•   Net interest income increased by $21 million from the prior quarter, due to higher interest income earned on loans and investment securities and relatively stable funding costs.


•   Net interest margin was 3.75%, up 15 basis points from the prior quarter, as the yields on investment securities and loans increased and the cost of interest-bearing liabilities decreased by 2 basis points.





Non-Interest
Income and
Expense

•   Non-interest income decreased by $2 million. Excluding the impact of fair value and hedges,1 non-interest income increased by $8 million, due to higher core fee-generating businesses, like commercial credit cards and wealth management services.


•   Non-interest expense decreased by $62 million, primarily due to a legal settlement and severance expense in the first quarter, which did not repeat.





Credit Quality

•   Net charge-offs were 0.31% of average loans and leases (annualized), compared to 0.32% in the prior quarter.


•   Provision expense was $29 million, compared to $27 million in the prior quarter.


•   Non-performing assets to total assets was 0.35%, unchanged from March 31, 2025.





Capital

•   Estimated total risk-based capital ratio of 13.0% and estimated common equity tier 1 risk-based capital ratio of 10.8%.


•   Declared a quarterly cash dividend of $0.36 per common share on May 16, 2025, which was paid June 16, 2025.





Notable Items

•   The second quarter's small business and retail campaign, which ran through mid-July, brought over $450 million in new deposits to the bank. The campaign was also successful in generating new SBA lending relationships.


•   Opened two branches in Arizona, strengthening support for bankers and customers in Phoenix and the surrounding markets. A branch was also opened in Eastern Oregon, bringing essential banking services to an underserved rural community.


 

2Q25 KEY FINANCIAL DATA







PERFORMANCE METRICS

2Q25


1Q25


2Q24

Return on average assets

1.19 %


0.68 %


0.93 %

Return on average common equity

11.56 %


6.73 %


9.85 %

Return on average tangible common equity 1

16.03 %


9.45 %


14.55 %

Operating return on average assets 1

1.25 %


1.10 %


1.08 %

Operating return on average common equity 1

12.16 %


10.87 %


11.47 %

Operating return on average tangible common equity 1

16.85 %


15.26 %


16.96 %

Net interest margin

3.75 %


3.60 %


3.56 %

Efficiency ratio

54.29 %


69.06 %


59.02 %

Operating efficiency ratio, as adjusted 1

51.79 %


55.11 %


53.56 %







INCOME STATEMENT

($ in 000s, excl. per share data)

2Q25


1Q25


2Q24

Net interest income

$446,446


$424,995


$427,449

Provision for credit losses

$29,449


$27,403


$31,820

Non-interest income

$64,462


$66,377


$44,703

Non-interest expense

$277,995


$340,122


$279,244

Pre-provision net revenue 1

$232,913


$151,250


$192,908

Operating pre-provision net revenue 1

$242,126


$211,833


$219,390

Earnings per common share - diluted

$0.73


$0.41


$0.57

Operating earnings per common share - diluted 1

$0.76


$0.67


$0.67

Dividends paid per share

$0.36


$0.36


$0.36







BALANCE SHEET

2Q25


1Q25


2Q24

Total assets

      $51.9B


      $51.5B


      $52.0B

Loans and leases

      $37.6B


      $37.6B


      $37.7B

Deposits

      $41.7B


      $42.2B


      $41.5B

Book value per common share

$25.41


$24.93


$23.76

Tangible book value per common share 1

$18.47


$17.86


$16.26

Organizational Update
 Columbia Banking System, Inc. ("Columbia," the "Company," "we," or "our") continues to plan for its acquisition of Pacific Premier Bancorp, Inc. ("Pacific Premier"), which was announced on April 23, 2025. The shareholders of both companies overwhelmingly approved the combination at their respective special meetings, which were held July 21, 2025. We anticipate closing the transaction as soon as September 1, 2025, pending regulatory approvals and satisfaction of other customary closing conditions. Integration efforts are progressing as planned, driven by the comprehensive preparation of cross-company teams, which are led by Columbia's Integration Management Office, positioning us for a smooth and timely closing once regulatory approvals are secured and other customary closing conditions are satisfied.

Columbia expanded its Arizona footprint with the opening of its second branch in Phoenix and its first in Mesa, bringing the total number of branches in the state to four. We also opened a branch in Eastern Oregon, restoring essential banking services to a bank-less rural community. Our branch strategy encompasses thriving metropolitan areas and core community markets alike, supporting bankers already serving customers in our markets and strengthening opportunities to bring new relationships to Columbia.

Net Interest Income
 Net interest income was $446 million for the second quarter of 2025, up $21 million from the prior quarter. The increase reflects higher interest income earned on loans and investment securities and relatively stable funding costs.

Columbia's net interest margin was 3.75% for the second quarter of 2025, up 15 basis points from the first quarter of 2025. Net interest margin benefited from an increase in the yield on taxable investment securities to 4.22% for the second quarter of 2025, up from 3.72% for the first quarter of 2025. The increase is due to higher conditional prepayment rates ("CPR") and the purchase of higher-yielding investment securities during the quarter. The average yield on the loan portfolio increased by 8 basis points between periods to 6.00% for the second quarter of 2025, due primarily to higher yields on commercial and construction loans and a $2 million interest recovery related to a nonperforming loan that repaid in full. The cost of interest-bearing deposits was unchanged between periods at 2.52% for the second quarter of 2025, in line with the cost of interest-bearing deposits for the month of June and as of June 30, 2025. Columbia's cost of interest-bearing liabilities decreased 2 basis points from the prior quarter to 2.78% for the second quarter of 2025, in line with the cost of interest-bearing liabilities for the month of June and as of June 30, 2025. Please refer to the Q2 2025 Earnings Presentation for additional net interest margin change details and interest rate sensitivity information.

Non-interest Income
 Non-interest income was $64 million for the second quarter of 2025, down $2 million from the prior quarter. The decrease was driven by quarterly changes in fair value adjustments and mortgage servicing rights ("MSR") hedging activity, due to interest rate fluctuations during the quarter, collectively resulting in a net fair value loss of $1 million in the second quarter compared to a net fair value gain of $9 million in the first quarter, as detailed in our non-GAAP disclosures. Excluding these items, non-interest income was up $8 million[2] between periods, due primarily to higher card-based fee income and growth in other core fee-generating businesses, including swap-related income, financial services and trust revenue, and treasury management fees.

Non-interest Expense
 Non-interest expense was $278 million for the second quarter of 2025, down $62 million from the prior quarter, which included a $55 million accrual related to a legal settlement and $15 million in severance expense. Excluding the legal settlement, exit and disposal costs, and merger and restructuring expense, which includes the first quarter's severance expense, non-interest expense was $269 million2, down $1 million from the prior quarter, as lower legal expense—which was separate from the legal settlement—intangible amortization, and other miscellaneous expenses more than offset an increase in compensation costs. Please refer to the Q2 2025 Earnings Presentation for additional expense details.

Balance Sheet
 Total consolidated assets were $51.9 billion as of June 30, 2025, up from $51.5 billion as of March 31, 2025. Cash and cash equivalents were $1.9 billion as of June 30, 2025, down from $2.1 billion as of March 31, 2025. Including secured off-balance sheet lines of credit, total available liquidity was $18.6 billion as of June 30, 2025, representing 36% of total assets, 44% of total deposits, and 132% of uninsured deposits. Available-for-sale securities, which are held on balance sheet at fair value, were $8.7 billion as of June 30, 2025, an increase of $424 million relative to March 31, 2025, as purchases and an increase in the fair value of the portfolio offset paydowns. Please refer to the Q2 2025 Earnings Presentation for additional details related to our securities portfolio and liquidity position.

Gross loans and leases were $37.6 billion as of June 30, 2025, an increase of $21 million relative to March 31, 2025. The change primarily reflects 2% annualized growth in commercial and owner-occupied commercial real estate loans, which was offset by 7% annualized contraction in multifamily loans. "Our teams remain focused on relationship-driven activity as we continue to let transactional real estate portfolios wind down," commented Chris Merrywell, President of Columbia Bank. "Loan balances were also impacted by an increase in prepayment activity, which muted a double-digit increase in origination volume relative to both the prior and year-ago quarters." Please refer to the Q2 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 our office portfolio.

Total deposits were $41.7 billion as of June 30, 2025, a decrease of $475 million relative to March 31, 2025, as customer deposits declined due to seasonal tax payments and other customer cash usage. "We experienced customer deposit contraction in April following strong customer balance growth in March," stated Mr. Merrywell. "Seasonal balance declines were accompanied by customers' usage of cash to pay down debt, which impacted loan prepayment activity. The quarter's results also reflect deposit balances moving off balance sheet into our wealth management products, which enhances our core fee income generation as we provide our customers with needs-based solutions." Borrowings were $3.4 billion as of June 30, 2025, an increase of $800 million relative to March 31, 2025. Please refer to the Q2 2025 Earnings Presentation for additional details related to deposit characteristics and flows.

Credit Quality
 The allowance for credit losses was $439 million, or 1.17% of loans and leases, as of June 30, 2025, unchanged from March 31, 2025. The provision for credit losses was $29 million for the second quarter of 2025 and reflects credit migration trends, charge-off activity, and changes in the economic forecasts used in credit models.

Net charge-offs were 0.31% of average loans and leases (annualized) for the second quarter of 2025, compared to 0.32% for the first quarter of 2025. Net charge-offs in the FinPac portfolio were $14 million in the second quarter, compared to $17 million in the first quarter. Net charge-offs excluding the FinPac portfolio were $15 million in the second quarter, compared to $13 million in the first quarter. Non-performing assets were $180 million, or 0.35% of total assets, as of June 30, 2025, compared to $178 million, or 0.35% of total assets, as of March 31, 2025. Please refer to the Q2 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 $25.41 as of June 30, 2025, compared to $24.93 as of March 31, 2025. The increase reflects net capital generation and a favorable change in accumulated other comprehensive (loss) income ("AOCI") to $(334) million as of June 30, 2025, compared to $(358) 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 $311 million as of June 30, 2025, compared to $337 million as of March 31, 2025. Tangible book value per common share3 was $18.47 as of June 30, 2025, compared to $17.86 as of March 31, 2025.

Columbia's estimated total risk-based capital ratio was 13.0%, and its estimated common equity tier 1 risk-based capital ratio was 10.8% as of June 30, 2025, compared to 12.9% and 10.6%, respectively, as of March 31, 2025. Columbia remains above current "well-capitalized" regulatory minimums. The regulatory capital ratios as of June 30, 2025 are estimates, pending completion and filing of Columbia's regulatory reports. 

Earnings Presentation and Conference Call Information
 Columbia's Q2 2025 Earnings Presentation provides additional disclosure. A copy will be available on our investor relations page: www.columbiabankingsystem.com.

Columbia will host its second quarter 2025 earnings conference call on July 24, 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 second 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/skhq48of/

Register for the call: https://register-conf.media-server.com/register/BI5727811477e9400984084cc006a83205

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 (Nasdaq: COLB) is headquartered in Tacoma, Washington and is the parent company of Columbia Bank (dba: Umpqua Bank), an award-winning western U.S. regional bank. Columbia Bank is the largest bank headquartered in the Northwest and one of the largest banks headquartered in the West with locations in Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah, and Washington. With over $50 billion of assets, 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 Advisors and Columbia Trust Company, a division of Columbia Bank. Learn more at www.columbiabankingsystem.com.

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

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

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

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

 

TABLE INDEX


Page

Consolidated Statements of Income

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 thousands, except per share data)

Jun 30, 2025


Mar 31, 2025


Dec 31, 2024


Sep 30, 2024


Jun 30, 2024


Seq.

Quarter


Year
over
Year

Interest income:














Loans and leases

$      564,343


$      552,562


$      572,843


$      588,603


$      583,874


2 %


(3) %

Interest and dividends on investments:














Taxable

80,316


68,688


75,254


76,074


78,828


17 %


2 %

Exempt from federal income tax

6,769


6,807


6,852


6,855


6,904


(1) %


(2) %

Dividends

3,444


2,792


2,678


2,681


2,895


23 %


19 %

Temporary investments and interest bearing deposits

15,817


16,394


18,956


24,683


23,035


(4) %


(31) %

Total interest income

670,689


647,243


676,583


698,896


695,536


4 %


(4) %

Interest expense:














Deposits

180,154


176,634


189,037


208,027


207,307


2 %


(13) %

Securities sold under agreement to repurchase and federal funds purchased

955


974


971


1,121


1,515


(2) %


(37) %

Borrowings

34,542


36,074


39,912


49,636


49,418


(4) %


(30) %

Junior and other subordinated debentures

8,592


8,566


9,290


9,894


9,847


— %


(13) %

Total interest expense

224,243


222,248


239,210


268,678


268,087


1 %


(16) %

Net interest income

446,446


424,995


437,373


430,218


427,449


5 %


4 %

Provision for credit losses

29,449


27,403


28,199


28,769


31,820


7 %


(7) %

Non-interest income:














Service charges on deposits

19,669


19,301


18,401


18,549


18,503


2 %


6 %

Card-based fees

14,559


12,571


14,634


14,591


14,681


16 %


(1) %

Financial services and trust revenue

5,842


5,187


5,265


5,083


5,396


13 %


8 %

Residential mortgage banking revenue, net

7,343


9,334


6,958


6,668


5,848


(21) %


26 %

Gain (loss) on sale of debt securities, net

1


4


10


3


(1)


(75) %


nm

Gain (loss) on equity securities, net

410


1,702


(1,424)


2,272


325


(76) %


26 %

Gain (loss) on loan and lease sales, net

172


97


(1,719)


161


(1,516)


77 %


nm

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

212


7,016


(7,355)


9,365


(10,114)


(97) %


nm

BOLI income

5,184


4,883


4,742


4,674


4,705


6 %


10 %

Other income

11,070


6,282


10,235


4,793


6,876


76 %


61 %

Total non-interest income

64,462


66,377


49,747


66,159


44,703


(3) %


44 %

Non-interest expense:














Salaries and employee benefits

154,883


145,239


141,958


147,268


145,066


7 %


7 %

Occupancy and equipment, net

47,178


48,170


46,878


45,056


45,147


(2) %


4 %

Intangible amortization

25,826


27,979


29,055


29,055


29,230


(8) %


(12) %

FDIC assessments

8,144


8,022


8,121


9,332


9,664


2 %


(16) %

Merger and restructuring expense

8,186


14,379


2,230


2,364


14,641


(43) %


(44) %

Legal settlement

—


55,000


—


—


—


(100) %


nm

Other expenses

33,778


41,333


38,334


38,283


35,496


(18) %


(5) %

Total non-interest expense

277,995


340,122


266,576


271,358


279,244


(18) %


— %

Income before provision for income taxes

203,464


123,847


192,345


196,250


161,088


64 %


26 %

Provision for income taxes

51,041


37,238


49,076


50,068


40,944


37 %


25 %

Net income

$      152,423


$        86,609


$      143,269


$      146,182


$      120,144


76 %


27 %















Weighted average basic shares outstanding

209,125


208,800


208,548


208,545


208,498


— %


— %

Weighted average diluted shares outstanding

209,975


210,023


209,889


209,454


209,011


— %


— %

Earnings per common share – basic

$           0.73


$           0.41


$           0.69


$           0.70


$           0.58


78 %


26 %

Earnings per common share – diluted

$           0.73


$           0.41


$           0.68


$           0.70


$           0.57


78 %


28 %


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

 

Columbia Banking System, Inc.

Consolidated Statements of Income

(Unaudited)



Six Months Ended


% Change

($ in thousands, except per share data)


Jun 30, 2025


Jun 30, 2024


Year over
Year

Interest income:







Loans and leases


$          1,116,905


$          1,158,918


(4) %

Interest and dividends on investments:







Taxable


149,004


153,845


(3) %

Exempt from federal income tax


13,576


13,808


(2) %

Dividends


6,236


6,602


(6) %

Temporary investments and interest bearing deposits


32,211


46,588


(31) %

Total interest income


1,317,932


1,379,761


(4) %

Interest expense:







Deposits


356,788


405,742


(12) %

Securities sold under agreement to repurchase and federal funds purchased


1,929


2,781


(31) %

Borrowings


70,616


100,693


(30) %

Junior and other subordinated debentures


17,158


19,734


(13) %

Total interest expense


446,491


528,950


(16) %

Net interest income


871,441


850,811


2 %

Provision for credit losses


56,852


48,956


16 %

Non-interest income:







Service charges on deposits


38,970


34,567


13 %

Card-based fees


27,130


27,864


(3) %

Financial services and trust revenue


11,029


9,860


12 %

Residential mortgage banking revenue, net


16,677


10,482


59 %

Gain on sale of debt securities, net


5


11


(55) %

Gain (loss) on equity securities, net


2,112


(1,240)


nm

Gain (loss) on loan and lease sales, net


269


(1,295)


nm

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


7,228


(12,486)


nm

BOLI income


10,067


9,344


8 %

Other income


17,352


17,953


(3) %

Total non-interest income


130,839


95,060


38 %

Non-interest expense:







Salaries and employee benefits


300,122


299,604


— %

Occupancy and equipment, net


95,348


90,438


5 %

Intangible amortization


53,805


61,321


(12) %

FDIC assessments


16,166


24,124


(33) %

Merger and restructuring expense


22,565


19,119


18 %

Legal settlement


55,000


—


nm

Other expenses


75,111


72,154


4 %

Total non-interest expense


618,117


566,760


9 %

Income before provision for income taxes


327,311


330,155


(1) %

Provision for income taxes


88,279


85,931


3 %

Net income


$             239,032


$             244,224


(2) %








Weighted average basic shares outstanding


208,964


208,379


0 %

Weighted average diluted shares outstanding


209,965


208,999


0 %

Earnings per common share – basic


$                  1.14


$                  1.17


(3) %

Earnings per common share – diluted


$                  1.14


$                  1.17


(3) %

 

Columbia Banking System, Inc.

Consolidated Balance Sheets

(Unaudited)












% Change

($ in thousands, except per share data)

Jun 30, 2025


Mar 31, 2025


Dec 31, 2024


Sep 30, 2024


Jun 30, 2024


Seq.

Quarter


Year
over
Year

Assets:














Cash and due from banks

$         608,057


$         591,265


$         496,666


$         591,364


$         515,263


3 %


18 %

Interest-bearing cash and temporary investments

1,334,113


1,481,441


1,381,589


1,519,658


1,553,568


(10) %


(14) %

Investment securities:














Equity and other, at fair value

92,958


91,580


78,133


79,996


77,221


2 %


20 %

Available for sale, at fair value

8,653,172


8,228,805


8,274,615


8,676,807


8,503,000


5 %


2 %

Held to maturity, at amortized cost

2,013


2,057


2,101


2,159


2,203


(2) %


(9) %

Loans held for sale

65,590


64,747


71,535


66,639


56,310


1 %


16 %

Loans and leases

37,637,013


37,616,101


37,680,901


37,503,002


37,709,987


— %


— %

Allowance for credit losses on loans and leases

(420,907)


(421,495)


(424,629)


(420,054)


(418,671)


— %


1 %

Net loans and leases

37,216,106


37,194,606


37,256,272


37,082,948


37,291,316


— %


— %

Restricted equity securities

161,380


125,300


150,024


116,274


116,274


29 %


39 %

Premises and equipment, net

356,879


344,926


348,670


338,107


337,842


3 %


6 %

Operating lease right-of-use assets

110,478


106,696


111,227


106,224


108,278


4 %


2 %

Goodwill

1,029,234


1,029,234


1,029,234


1,029,234


1,029,234


— %


— %

Other intangible assets, net

430,443


456,269


484,248


513,303


542,358


(6) %


(21) %

Residential mortgage servicing rights, at fair value

102,863


105,663


108,358


101,919


110,039


(3) %


(7) %

Bank-owned life insurance

704,919


700,768


693,839


691,160


686,485


1 %


3 %

Deferred tax asset, net

299,043


311,192


359,425


286,432


361,773


(4) %


(17) %

Other assets

734,194


684,717


730,461


706,375


756,319


7 %


(3) %

Total assets

$     51,901,442


$     51,519,266


$     51,576,397


$     51,908,599


$     52,047,483


1 %


— %

Liabilities:














 Deposits














Non-interest-bearing

$     13,219,631


$     13,413,927


$     13,307,905


$     13,534,065


$     13,481,616


(1) %


(2) %

Interest-bearing

28,523,026


28,803,767


28,412,827


27,980,623


28,041,656


(1) %


2 %

  Total deposits

41,742,657


42,217,694


41,720,732


41,514,688


41,523,272


(1) %


1 %

Securities sold under agreements to repurchase

191,435


192,386


236,627


183,833


197,860


— %


(3) %

Borrowings

3,350,000


2,550,000


3,100,000


3,650,000


3,900,000


31 %


(14) %

Junior subordinated debentures, at fair value

323,015


320,774


330,895


311,896


310,187


1 %


4 %

Junior and other subordinated debentures, at amortized cost

107,554


107,611


107,668


107,725


107,781


— %


— %

Operating lease liabilities

124,522


121,282


125,710


121,298


123,082


3 %


1 %

Other liabilities

720,377


771,710


836,541


745,331


908,629


(7) %


(21) %

Total liabilities

46,559,560


46,281,457


46,458,173


46,634,771


47,070,811


1 %


(1) %

Shareholders' equity:














Common stock

5,826,488


5,823,287


5,817,458


5,812,237


5,807,041


— %


— %

Accumulated deficit

(150,822)


(227,006)


(237,254)


(304,525)


(374,687)


(34) %


(60) %

Accumulated other comprehensive loss

(333,784)


(358,472)


(461,980)


(233,884)


(455,682)


(7) %


(27) %

Total shareholders' equity

5,341,882


5,237,809


5,118,224


5,273,828


4,976,672


2 %


7 %

Total liabilities and shareholders' equity

$     51,901,442


$     51,519,266


$     51,576,397


$     51,908,599


$     52,047,483


1 %


— %















Common shares outstanding at period end

210,213


210,112


209,536


209,532


209,459


— %


— %

 

Columbia Banking System, Inc.

Financial Highlights

(Unaudited)



Quarter Ended


% Change



Jun 30,
2025


Mar 31,
2025


Dec 31,
2024


Sep 30,
2024


Jun 30,
2024


Seq.
Quarter


Year over
Year

Per Common Share Data:  















Dividends


$         0.36


$         0.36


$         0.36


$         0.36


$         0.36


— %


— %

Book value


$       25.41


$       24.93


$       24.43


$       25.17


$       23.76


2 %


7 %

Tangible book value (1)


$       18.47


$       17.86


$       17.20


$       17.81


$       16.26


3 %


14 %
















Performance Ratios:















Efficiency ratio (2)


54.29 %


69.06 %


54.61 %


54.56 %


59.02 %


(14.77)


(4.73)

Non-interest expense to average assets (1)


2.16 %


2.68 %


2.06 %


2.08 %


2.16 %


(0.52)


—

Return on average assets ("ROAA")


1.19 %


0.68 %


1.10 %


1.12 %


0.93 %


0.51


0.26

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


1.81 %


1.19 %


1.70 %


1.72 %


1.49 %


0.62


0.32

Return on average common equity


11.56 %


6.73 %


10.91 %


11.36 %


9.85 %


4.83


1.71

Return on average tangible common equity (1)


16.03 %


9.45 %


15.41 %


16.34 %


14.55 %


6.58


1.48
















Performance Ratios - Operating: (1)















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


51.79 %


55.11 %


52.51 %


53.89 %


53.56 %


(3.32)


(1.77)

Operating non-interest expense to average assets (1)


2.10 %


2.13 %


2.03 %


2.05 %


2.03 %


(0.03)


0.07

Operating ROAA (1)


1.25 %


1.10 %


1.15 %


1.10 %


1.08 %


0.15


0.17

Operating PPNR ROAA (1)


1.88 %


1.67 %


1.77 %


1.69 %


1.70 %


0.21


0.18

Operating return on average common equity (1)


12.16 %


10.87 %


11.40 %


11.15 %


11.47 %


1.29


0.69

Operating return on average tangible common equity (1)


16.85 %


15.26 %


16.11 %


16.04 %


16.96 %


1.59


(0.11)
















Average Balance Sheet Yields, Rates, & Ratios:















Yield on loans and leases


6.00 %


5.92 %


6.05 %


6.22 %


6.20 %


0.08


(0.20)

Yield on earning assets (2)


5.62 %


5.49 %


5.63 %


5.78 %


5.80 %


0.13


(0.18)

Cost of interest bearing deposits


2.52 %


2.52 %


2.66 %


2.95 %


2.97 %


—


(0.45)

Cost of interest bearing liabilities


2.78 %


2.80 %


2.98 %


3.29 %


3.31 %


(0.02)


(0.53)

Cost of total deposits


1.73 %


1.72 %


1.80 %


1.99 %


2.01 %


0.01


(0.28)

Cost of total funding (3)


1.98 %


1.99 %


2.09 %


2.32 %


2.34 %


(0.01)


(0.36)

Net interest margin (2)


3.75 %


3.60 %


3.64 %


3.56 %


3.56 %


0.15


0.19

Average interest bearing cash / Average interest earning assets


2.97 %


3.13 %


3.29 %


3.74 %


3.51 %


(0.16)


(0.54)

Average loans and leases / Average interest earning assets


78.64 %


78.93 %


78.42 %


77.91 %


78.27 %


(0.29)


0.37

Average loans and leases / Average total deposits


90.07 %


90.36 %


89.77 %


90.42 %


90.61 %


(0.29)


(0.54)

Average non-interest bearing deposits / Average total deposits


31.39 %


31.75 %


32.45 %


32.52 %


32.54 %


(0.36)


(1.15)

Average total deposits / Average total funding (3)


91.92 %


91.86 %


91.88 %


90.25 %


90.15 %


0.06


1.77
















Select Credit & Capital Ratios:















Non-performing loans and leases to total loans and leases


0.47 %


0.47 %


0.44 %


0.44 %


0.41 %


—


0.06

Non-performing assets to total assets


0.35 %


0.35 %


0.33 %


0.32 %


0.30 %


—


0.05

Allowance for credit losses to loans and leases


1.17 %


1.17 %


1.17 %


1.17 %


1.16 %


—


0.01

Total risk-based capital ratio (4)


13.0 %


12.9 %


12.8 %


12.5 %


12.2 %


0.10


0.80

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


10.8 %


10.6 %


10.5 %


10.3 %


10.0 %


0.20


0.80



(1)

See GAAP to Non-GAAP Reconciliation.

(2)

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

(3)

Total funding = total deposits + total borrowings.

(4)

Estimated holding company ratios.

 

Columbia Banking System, Inc.

Financial Highlights

(Unaudited)



Six Months Ended


% Change



Jun 30, 2025


Jun 30, 2024


Year over Year

Per Common Share Data:







Dividends


$                      0.72


$                      0.72


— %








Performance Ratios:







Efficiency ratio (2)


61.54 %


59.80 %


1.74

Non-interest expense to average assets (1)


2.42 %


2.19 %


0.23

Return on average assets


0.94 %


0.94 %


—

PPNR ROAA (1)


1.50 %


1.47 %


0.03

Return on average common equity


9.18 %


9.93 %


(0.75)

Return on average tangible common equity (1)


12.80 %


14.69 %


(1.89)








Performance Ratios - Operating: (1)







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


53.40 %


55.26 %


(1.86)

Operating non-interest expense to average assets (1)


2.11 %


2.08 %


0.03

Operating ROAA (1)


1.17 %


1.06 %


0.11

Operating PPNR ROAA (1)


1.78 %


1.62 %


0.16

Operating return on average common equity (1)


11.52 %


11.18 %


0.34

Operating return on average tangible common equity (1)


16.07 %


16.54 %


(0.47)








Average Balance Sheet Yields, Rates, & Ratios:







Yield on loans and leases


5.96 %


6.17 %


(0.21)

Yield on earning assets (2)


5.56 %


5.75 %


(0.19)

Cost of interest bearing deposits


2.52 %


2.93 %


(0.41)

Cost of interest bearing liabilities


2.79 %


3.28 %


(0.49)

Cost of total deposits


1.72 %


1.96 %


(0.24)

Cost of total funding (3)


1.98 %


2.31 %


(0.33)

Net interest margin (2)


3.67 %


3.54 %


0.13

Average interest bearing cash / Average interest earning assets


3.05 %


3.54 %


(0.49)

Average loans and leases / Average interest earning assets


78.78 %


78.07 %


0.71

Average loans and leases / Average total deposits


90.21 %


90.51 %


(0.30)

Average non-interest bearing deposits / Average total deposits


31.57 %


32.91 %


(1.34)

Average total deposits / Average total funding (3)


91.90 %


90.12 %


1.78



(1)

See GAAP to Non-GAAP Reconciliation.

(2)

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

(3)

Total funding = Total deposits + Total borrowings.

 

Columbia Banking System, Inc.

Loan & Lease Portfolio Balances and Mix

(Unaudited)


Jun 30, 2025


Mar 31, 2025


Dec 31, 2024


Sep 30, 2024


Jun 30, 2024


% Change

($ in thousands)

Amount


Amount


Amount


Amount


Amount


Seq.
Quarter


Year
over
Year

Loans and leases:














Commercial real estate:














Non-owner occupied term

$    6,189,992


$    6,179,261


$    6,278,154


$    6,391,806


$    6,407,351


— %


(3) %

Owner occupied term

5,319,529


5,303,424


5,270,294


5,210,485


5,230,511


— %


2 %

Multifamily

5,735,057


5,831,266


5,804,364


5,779,737


5,868,848


(2) %


(2) %

Construction & development

2,069,727


2,070,732


1,983,213


1,988,923


1,946,693


— %


6 %

Residential development

286,175


252,349


231,647


244,579


269,106


13 %


6 %

Commercial:














Term

5,352,598


5,490,189


5,537,618


5,429,209


5,559,548


(3) %


(4) %

Lines of credit & other

2,950,782


2,753,613


2,769,643


2,640,669


2,558,633


7 %


15 %

Leases & equipment finance

1,641,450


1,644,052


1,660,835


1,670,427


1,701,943


— %


(4) %

Residential:














Mortgage

5,829,833


5,878,427


5,933,352


5,944,734


5,992,163


(1) %


(3) %

Home equity loans & lines

2,082,766


2,039,061


2,031,653


2,017,336


1,982,786


2 %


5 %

   Consumer & other

179,104


173,727


180,128


185,097


192,405


3 %


(7) %

Total loans and leases, net of deferred fees and costs

$  37,637,013


$  37,616,101


$  37,680,901


$  37,503,002


$  37,709,987


— %


— %















Loans and leases mix:














Commercial real estate:














Non-owner occupied term

16 %


16 %


17 %


17 %


17 %





Owner occupied term

14 %


14 %


14 %


14 %


14 %





Multifamily

15 %


15 %


15 %


15 %


15 %





Construction & development

6 %


6 %


5 %


5 %


5 %





Residential development

1 %


1 %


1 %


1 %


1 %





Commercial:














Term

14 %


15 %


15 %


15 %


15 %





Lines of credit & other

8 %


7 %


7 %


7 %


6 %





Leases & equipment finance

4 %


4 %


4 %


4 %


5 %





Residential:














Mortgage

15 %


16 %


16 %


16 %


16 %





Home equity loans & lines

6 %


5 %


5 %


5 %


5 %





Consumer & other

1 %


1 %


1 %


1 %


1 %





Total

100 %


100 %


100 %


100 %


100 %





 

Columbia Banking System, Inc.

Deposit Portfolio Balances and Mix

(Unaudited)


Jun 30, 2025


Mar 31, 2025


Dec 31, 2024


Sep 30, 2024


Jun 30, 2024


% Change

($ in thousands)

Amount


Amount


Amount


Amount


Amount


Seq.
Quarter


Year over
Year

Deposits:














Demand, non-interest bearing

$  13,219,631


$  13,413,927


$  13,307,905


$  13,534,065


$  13,481,616


(1) %


(2) %

Demand, interest bearing

8,334,553


8,494,493


8,475,693


8,444,424


8,195,284


(2) %


2 %

Money market

11,694,412


11,970,785


11,475,055


11,351,066


10,927,813


(2) %


7 %

Savings

2,275,500


2,336,727


2,360,040


2,450,924


2,508,598


(3) %


(9) %

Time

6,218,561


6,001,762


6,102,039


5,734,209


6,409,961


4 %


(3) %

Total

$  41,742,657


$  42,217,694


$  41,720,732


$  41,514,688


$  41,523,272


(1) %


1 %















Total core deposits (1)

$  37,293,962


$  38,079,274


$  37,487,909


$  37,774,870


$  37,159,069


(2) %


0 %















Deposit mix:














Demand, non-interest bearing

32 %


32 %


32 %


33 %


33 %





Demand, interest bearing

20 %


20 %


20 %


20 %


20 %





Money market

28 %


28 %


27 %


27 %


26 %





Savings

5 %


6 %


6 %


6 %


6 %





Time

15 %


14 %


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 thousands)

Jun 30, 2025


Mar 31, 2025


Dec 31, 2024


Sep 30, 2024


Jun 30, 2024


Seq.
Quarter


Year over
Year

Non-performing assets:  (1)














Loans and leases on non-accrual status:















Commercial real estate

$     30,739


$     41,910


$     39,332


$     37,332


$     37,584


(27) %


(18) %


Commercial

66,809


80,492


57,146


61,464


54,986


(17) %


22 %


Total loans and leases on non-accrual status

97,548


122,402


96,478


98,796


92,570


(20) %


5 %

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















Commercial real estate

361


—


—


136


—


nm


nm


Commercial

5,581


75


4,684


6,012


5,778


nm


(3) %


Residential (2)

73,607


52,392


65,552


59,961


54,525


40 %


35 %


Consumer & other

337


278


179


317


220


21 %


53 %


Total loans and leases past due 90+ days and accruing (2)

79,886


52,745


70,415


66,426


60,523


51 %


32 %

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

177,434


175,147


166,893


165,222


153,093


1 %


16 %

Other real estate owned

2,818


2,849


2,666


2,395


2,839


(1) %


(1) %

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

$    180,252


$    177,996


$    169,559


$    167,617


$    155,932


1 %


16 %
















Loans and leases past due 31-89 days

$    141,863


$    158,026


$    105,199


$     67,310


$     85,998


(10) %


65 %

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

0.38 %


0.42 %


0.28 %


0.18 %


0.23 %


(0.04)


0.15

Non-performing loans and leases to total loans and leases (1), (2)

0.47 %


0.47 %


0.44 %


0.44 %


0.41 %


—


0.06

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

0.35 %


0.35 %


0.33 %


0.32 %


0.30 %


—


0.05

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

0.26 %


0.33 %


0.26 %


0.26 %


0.25 %


(0.07)


0.01
















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 $67.8 million, $66.5 million, $73.6 million, $65.8 million, and $64.6 million at June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively.





























(2)

Excludes certain mortgage loans guaranteed by GNMA, which Columbia has the unilateral right to repurchase but has not done so, totaling $2.0 million, $2.6 million, $2.4 million, $3.7 million, and $1.0 million at June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively.














 

Columbia Banking System, Inc.

Credit Quality – Allowance for Credit Losses

(Unaudited)



Quarter Ended


% Change

($ in thousands)

Jun 30, 2025


Mar 31, 2025


Dec 31, 2024


Sep 30, 2024


Jun 30, 2024


Seq.
Quarter


Year over
Year

Allowance for credit losses on loans and leases (ACLLL)














Balance, beginning of period

$    421,495


$    424,629


$    420,054


$    418,671


$    414,344


(1) %


2 %

Provision for credit losses on loans and leases

28,757


26,187


30,230


30,498


34,760


10 %


(17) %

Charge-offs















Commercial real estate

(77)


(119)


(2,935)


—


(585)


(35) %


(87) %


Commercial

(33,073)


(32,611)


(25,780)


(32,645)


(33,561)


1 %


(1) %


Residential

(285)


(303)


(26)


(936)


(504)


(6) %


(43) %


Consumer & other

(1,164)


(1,080)


(1,523)


(1,395)


(1,551)


8 %


(25) %


Total charge-offs

(34,599)


(34,113)


(30,264)


(34,976)


(36,201)


1 %


(4) %

Recoveries















Commercial real estate

71


19


3


44


551


274 %


(87) %


Commercial

4,676


4,336


4,104


5,258


4,198


8 %


11 %


Residential

187


98


163


143


411


91 %


(55) %


Consumer & other

320


339


339


416


608


(6) %


(47) %


Total recoveries

5,254


4,792


4,609


5,861


5,768


10 %


(9) %

Net (charge-offs) recoveries















Commercial real estate

(6)


(100)


(2,932)


44


(34)


(94) %


(82) %


Commercial

(28,397)


(28,275)


(21,676)


(27,387)


(29,363)


0 %


(3) %


Residential

(98)


(205)


137


(793)


(93)


(52) %


5 %


Consumer & other

(844)


(741)


(1,184)


(979)


(943)


14 %


(10) %


Total net charge-offs

(29,345)


(29,321)


(25,655)


(29,115)


(30,433)


0 %


(4) %

Balance, end of period

$    420,907


$    421,495


$    424,629


$    420,054


$    418,671


0 %


1 %

Reserve for unfunded commitments














Balance, beginning of period

$     17,384


$     16,168


$     18,199


$     19,928


$     22,868


8 %


(24) %

Provision (recapture)  for credit losses on unfunded commitments

692


1,216


(2,031)


(1,729)


(2,940)


(43) %


nm

Balance, end of period

18,076


17,384


16,168


18,199


19,928


4 %


(9) %

Total Allowance for credit losses (ACL)

$    438,983


$    438,879


$    440,797


$    438,253


$    438,599


— %


— %















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

0.31 %


0.32 %


0.27 %


0.31 %


0.32 %


(0.01)


(0.01)

Recoveries to gross charge-offs

15.19 %


14.05 %


15.23 %


16.76 %


15.93 %


1.14


(0.74)

ACLLL to loans and leases

1.12 %


1.12 %


1.13 %


1.12 %


1.11 %


—


0.01

ACL to loans and leases

1.17 %


1.17 %


1.17 %


1.17 %


1.16 %


—


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)



Six Months Ended


% Change

($ in thousands)


Jun 30, 2025


Jun 30, 2024


Year over Year

Allowance for credit losses on loans and leases (ACLLL)







Balance, beginning of period


$          424,629


$          440,871


(4) %

Provision for credit losses on loans and leases 


54,944


52,236


5 %

Charge-offs








Commercial real estate


(196)


(746)


(74) %


Commercial


(65,684)


(80,793)


(19) %


Residential


(588)


(994)


(41) %


Consumer & other


(2,244)


(3,421)


(34) %


Total charge-offs


(68,712)


(85,954)


(20) %

Recoveries








Commercial real estate


90


909


(90) %


Commercial


9,012


8,930


1 %


Residential


285


581


(51) %


Consumer & other


659


1,098


(40) %


Total recoveries


10,046


11,518


(13) %

Net (charge-offs) recoveries








Commercial real estate


(106)


163


(165) %


Commercial


(56,672)


(71,863)


(21) %


Residential


(303)


(413)


(27) %


Consumer & other


(1,585)


(2,323)


(32) %


Total net charge-offs


(58,666)


(74,436)


(21) %

Balance, end of period


$          420,907


$          418,671


1 %

Reserve for unfunded commitments







Balance, beginning of period


$            16,168


$            23,208


(30) %

(Recapture) provision for credit losses on unfunded commitments


1,908


(3,280)


nm

Balance, end of period


18,076


19,928


(9) %

Total Allowance for credit losses (ACL)


$          438,983


$          438,599


0 %








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


0.31 %


0.40 %


(0.09)

Recoveries to gross charge-offs


14.62 %


13.40 %


1.22


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

 

Columbia Banking System, Inc.

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

(Unaudited)


Quarter Ended


June 30, 2025


March 31, 2025


June 30, 2024

($ in thousands)

Average
Balance


Interest
Income or
Expense


Average
Yields or
Rates


Average
Balance


Interest
Income or
Expense


Average
Yields or
Rates


Average
Balance


Interest
Income or
Expense


Average
Yields or
Rates

INTEREST-EARNING ASSETS:


















Loans held for sale

$        66,640


$     1,109


6.66 %


$        59,223


$       935


6.32 %


$      101,516


$     1,628


6.42 %

Loans and leases (1)

37,647,789


563,234


6.00 %


37,678,820


551,627


5.92 %


37,663,396


582,246


6.20 %

Taxable securities

7,937,471


83,760


4.22 %


7,690,610


71,480


3.72 %


7,839,202


81,723


4.17 %

Non-taxable securities (2)

797,994


7,875


3.95 %


817,392


7,910


3.87 %


825,030


7,889


3.82 %

Temporary investments and interest-bearing cash

1,420,976


15,817


4.46 %


1,493,815


16,394


4.45 %


1,688,602


23,035


5.49 %

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

47,870,870


$ 671,795


5.62 %


47,739,860


$ 648,346


5.49 %


48,117,746


$ 696,521


5.80 %

Goodwill and other intangible assets

1,471,975






1,501,590






1,588,239





Other assets

2,209,369






2,211,158






2,275,570





Total assets

$  51,552,214






$  51,452,608






$  51,981,555





INTEREST-BEARING LIABILITIES:


















Interest-bearing demand deposits

$   8,479,613


$   48,232


2.28 %


$   8,370,584


$   46,632


2.26 %


$   8,147,516


$   53,890


2.66 %

Money market deposits

11,783,402


72,409


2.46 %


11,603,140


68,719


2.40 %


10,849,259


76,466


2.83 %

Savings deposits

2,287,433


756


0.13 %


2,350,459


574


0.10 %


2,555,458


929


0.15 %

Time deposits

6,125,997


58,757


3.85 %


6,136,389


60,709


4.01 %


6,488,923


76,022


4.71 %

Total interest-bearing deposits

28,676,445


180,154


2.52 %


28,460,572


176,634


2.52 %


28,041,156


207,307


2.97 %

Repurchase agreements and federal funds purchased

185,424


955


2.06 %


215,962


974


1.83 %


224,973


1,515


2.71 %

Borrowings

3,058,352


34,542


4.53 %


3,039,227


36,074


4.82 %


3,900,000


49,418


5.10 %

Junior and other subordinated debentures

428,348


8,592


8.05 %


437,729


8,566


7.94 %


417,329


9,847


9.49 %

Total interest-bearing liabilities

32,348,569


$ 224,243


2.78 %


32,153,490


$ 222,248


2.80 %


32,583,458


$ 268,087


3.31 %

Non-interest-bearing deposits

13,122,635






13,238,678






13,526,483





Other liabilities

794,448






843,885






963,375





Total liabilities

46,265,652






46,236,053






47,073,316





Common equity

5,286,562






5,216,555






4,908,239





Total liabilities and shareholders' equity

$  51,552,214






$  51,452,608






$  51,981,555





NET INTEREST INCOME (2)



$ 447,552






$ 426,098






$ 428,434



NET INTEREST SPREAD (2)





2.84 %






2.69 %






2.49 %

NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)





3.75 %






3.60 %






3.56 %



(1)

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

(2)

Tax-exempt income was adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $1.1 million for the three months ended June 30, 2025, as compared to $1.1 million for the three months ended March 31, 2025 and $985,000 for the three months ended June 30, 2024. 

 

Columbia Banking System, Inc.

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

(Unaudited)


Six Months Ended


June 30, 2025


June 30, 2024

($ in thousands)

Average
Balance


Interest
Income or
Expense


Average
Yields or
Rates


Average
Balance


Interest
Income or
Expense


Average
Yields or
Rates

INTEREST-EARNING ASSETS:












Loans held for sale

$           62,999


$         2,044


6.49 %


$        66,033


$         2,153


6.52 %

Loans and leases (1)

37,663,046


1,114,861


5.96 %


37,630,248


1,156,765


6.17 %

Taxable securities

7,814,761


155,240


3.97 %


7,960,102


160,447


4.03 %

Non-taxable securities (2)

807,648


15,785


3.91 %


838,186


15,775


3.76 %

Temporary investments and interest-bearing cash

1,457,145


32,211


4.46 %


1,704,697


46,588


5.50 %

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

47,805,599


$   1,320,141


5.56 %


48,199,266


$   1,381,728


5.75 %

Goodwill and other intangible assets

1,486,692






1,603,686





Other assets

2,210,217






2,229,811





Total assets

$     51,502,508






$  52,032,763





INTEREST-BEARING LIABILITIES:












Interest-bearing demand deposits

$      8,425,683


$       94,864


2.27 %


$   8,091,427


$     105,268


2.62 %

Money market deposits

11,694,209


141,128


2.43 %


10,730,666


148,963


2.79 %

Savings deposits

2,318,799


1,330


0.12 %


2,621,909


1,644


0.13 %

Time deposits

6,130,653


119,466


3.93 %


6,447,865


149,867


4.67 %

Total interest-bearing deposits

28,569,344


356,788


2.52 %


27,891,867


405,742


2.93 %

Repurchase agreements and federal funds purchased

200,625


1,929


1.94 %


228,320


2,781


2.45 %

Borrowings

3,048,122


70,616


4.67 %


3,910,440


100,693


5.18 %

Junior and other subordinated debentures

433,012


17,158


7.99 %


420,428


19,734


9.44 %

Total interest-bearing liabilities

32,251,103


$     446,491


2.79 %


32,451,055


$     528,950


3.28 %

Non-interest-bearing deposits

13,180,478






13,684,032





Other liabilities

819,040






950,619





Total liabilities

46,250,621






47,085,706





Common equity

5,251,887






4,947,057





Total liabilities and shareholders' equity

$     51,502,508






$  52,032,763





NET INTEREST INCOME (2)



$     873,650






$     852,778



NET INTEREST SPREAD (2)





2.77 %






2.47 %

NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)





3.67 %






3.54 %















(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 $2.2 million for the six months ended June 30, 2025, as compared to $2.0 million for the same period in 2024. 

 

Columbia Banking System, Inc.

Residential Mortgage Banking Activity

(Unaudited)


Quarter Ended


% Change

($ in thousands)

Jun 30, 2025


Mar 31, 2025


Dec 31, 2024


Sep 30, 2024


Jun 30, 2024


Seq.
Quarter


Year over
Year

Residential mortgage banking revenue:














Origination and sale

$       4,544


$       4,391


$       4,519


$        5,225


$        3,452


3 %


32 %

Servicing

5,845


5,855


5,947


6,012


5,952


— %


(2) %

Change in fair value of MSR asset:














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

(3,113)


(3,141)


(3,103)


(3,127)


(3,183)


(1) %


(2) %

Changes due to valuation inputs or assumptions

(1,764)


(983)


7,414


(6,540)


1,238


79 %


(242) %

MSR hedge gain (loss)

1,831


3,212


(7,819)


5,098


(1,611)


(43) %


nm

Total

$       7,343


$       9,334


$       6,958


$        6,668


$        5,848


(21) %


26 %















Closed loan volume for sale

$    163,759


$    136,084


$    175,046


$    161,094


$    140,875


20 %


16 %

Gain on sale margin

2.77 %


3.23 %


2.58 %


3.24 %


2.45 %


-0.46


0.32















Residential mortgage servicing rights:














Balance, beginning of period

$    105,663


$    108,358


$    101,919


$    110,039


$    110,444


(2) %


(4) %

Additions for new MSR capitalized

2,077


1,429


2,128


1,547


1,540


45 %


35 %

Change in fair value of MSR asset:














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

(3,113)


(3,141)


(3,103)


(3,127)


(3,183)


(1) %


(2) %

Changes due to valuation inputs or assumptions

(1,764)


(983)


7,414


(6,540)


1,238


79 %


(242) %

Balance, end of period

$    102,863


$    105,663


$    108,358


$    101,919


$    110,039


(3) %


(7) %















Residential mortgage loans serviced for others

$ 7,851,562


$ 7,888,235


$ 7,939,445


$  7,965,538


$  8,120,046


— %


(3) %

MSR as % of serviced portfolio

1.31 %


1.34 %


1.36 %


1.28 %


1.36 %


(0.03)


(0.05)


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

 

Columbia Banking System, Inc.

Residential Mortgage Banking Activity

(Unaudited)


Six Months Ended


% Change

($ in thousands)

Jun 30, 2025


Jun 30, 2024


Year over
Year

Residential mortgage banking revenue:






Origination and sale

$            8,935


$            6,372


40 %

Servicing

11,700


11,973


(2) %

Change in fair value of MSR asset:






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

(6,254)


(6,336)


(1) %

Changes due to valuation inputs or assumptions

(2,747)


4,355


(163) %

MSR hedge gain (loss)

5,043


(5,882)


nm

Total

$          16,677


$          10,482


59 %







Closed loan volume for sale

$        299,843


$        227,778


32 %

Gain on sale margin

2.98 %


2.80 %


0.18







Residential mortgage servicing rights:






Balance, beginning of period

$        108,358


$        109,243


(1) %

Additions for new MSR capitalized

3,506


2,777


26 %

Change in fair value of MSR asset:






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

(6,254)


(6,336)


(1) %

Changes due to valuation inputs or assumptions

(2,747)


4,355


(163) %

Balance, end of period

$        102,863


$        110,039


(7) %


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 thousands, except per share data)



Jun 30, 2025


Mar 31, 2025


Dec 31, 2024


Sep 30, 2024


Jun 30, 2024


Seq.
Quarter


Year
over
Year

Total shareholders' equity

a


$     5,341,882


$     5,237,809


$     5,118,224


$     5,273,828


$     4,976,672


2 %


7 %

Less: Goodwill



1,029,234


1,029,234


1,029,234


1,029,234


1,029,234


— %


— %

Less: Other intangible assets, net



430,443


456,269


484,248


513,303


542,358


(6) %


(21) %

Tangible common shareholders' equity

b


$     3,882,205


$     3,752,306


$     3,604,742


$     3,731,291


$     3,405,080


3 %


14 %

















Total assets

c


$  51,901,442


$  51,519,266


$  51,576,397


$  51,908,599


$  52,047,483


1 %


— %

Less: Goodwill



1,029,234


1,029,234


1,029,234


1,029,234


1,029,234


— %


— %

Less: Other intangible assets, net



430,443


456,269


484,248


513,303


542,358


(6) %


(21) %

Tangible assets

d


$  50,441,765


$  50,033,763


$  50,062,915


$  50,366,062


$  50,475,891


1 %


— %

Common shares outstanding at period end

e


210,213


210,112


209,536


209,532


209,459


— %


— %

















Total shareholders' equity to total assets ratio

a / c


10.29 %


10.17 %


9.92 %


10.16 %


9.56 %


0.12


0.73

Tangible common equity to tangible assets ratio

b / d


7.70 %


7.50 %


7.20 %


7.41 %


6.75 %


0.20


0.95

Book value per common share

a / e


$              25.41


$              24.93


$              24.43


$              25.17


$              23.76


2 %


7 %

Tangible book value per common share

b / e


$              18.47


$              17.86


$              17.20


$              17.81


$              16.26


3 %


14 %

 

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation - Continued

Income Statements, as adjusted

(Unaudited)




Quarter Ended


% Change

($ in thousands)



Jun 30, 2025


Mar 31, 2025


Dec 31, 2024


Sep 30, 2024


Jun 30, 2024


Seq.
Quarter


Year
over
Year

Non-Interest Income Adjustments
















Gain (loss) on sale of debt securities, net



$                          1


$                          4


$                       10


$                          3


$                        (1)


(75) %


nm

Gain (loss) on equity securities, net



410


1,702


(1,424)


2,272


325


(76) %


26 %

(Loss) gain on swap derivatives



(1,330)


(1,494)


3,642


(3,596)


424


(11) %


(414) %

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



212


7,016


(7,355)


9,365


(10,114)


(97) %


nm

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



(1,764)


(983)


7,414


(6,540)


1,238


79 %


(242) %

MSR hedge gain (loss)



1,831


3,212


(7,819)


5,098


(1,611)


(43) %


nm

Total non-interest income adjustments

a


$                   (640)


$                 9,457


$               (5,532)


$                 6,602


$               (9,739)


(107) %


(93) %

















Non-Interest Expense Adjustments
















Merger and restructuring expense



$                 8,186


$               14,379


$                 2,230


$                 2,364


$               14,641


(43) %


(44) %

Exit and disposal costs



387


661


872


631


1,218


(41) %


(68) %

    FDIC special assessment



—


—


—


—


884


nm


(100) %

Legal settlement



—


55,000


—


—


—


(100) %


nm

Total non-interest expense adjustments

b


$                 8,573


$               70,040


$                 3,102


$                 2,995


$               16,743


(88) %


(49) %

















Net interest income

c


$            446,446


$            424,995


$            437,373


$            430,218


$            427,449


5 %


4 %

















Non-interest income (GAAP)

d


$               64,462


$               66,377


$               49,747


$               66,159


$               44,703


(3) %


44 %

Less: Non-interest income adjustments

a


640


(9,457)


5,532


(6,602)


9,739


nm


(93) %

Operating non-interest income (non-GAAP)

e


$               65,102


$               56,920


$               55,279


$               59,557


$               54,442


14 %


20 %

















Revenue (GAAP)

f=c+d


$            510,908


$            491,372


$            487,120


$            496,377


$            472,152


4 %


8 %

Operating revenue (non-GAAP)

g=c+e


$            511,548


$            481,915


$            492,652


$            489,775


$            481,891


6 %


6 %

















Non-interest expense (GAAP)

h


$            277,995


$            340,122


$            266,576


$            271,358


$            279,244


(18) %


— %

Less: Non-interest expense adjustments

b


(8,573)


(70,040)


(3,102)


(2,995)


(16,743)


(88) %


(49) %

Operating non-interest expense (non-GAAP)

i


$            269,422


$            270,082


$            263,474


$            268,363


$            262,501


— %


3 %

















Net income (GAAP)

j


$            152,423


$               86,609


$            143,269


$            146,182


$            120,144


76 %


27 %

Provision for income taxes



51,041


37,238


49,076


50,068


40,944


37 %


25 %

Income before provision for income taxes



203,464


123,847


192,345


196,250


161,088


64 %


26 %

Provision for credit losses



29,449


27,403


28,199


28,769


31,820


7 %


(7) %

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

k


232,913


151,250


220,544


225,019


192,908


54 %


21 %

Less: Non-interest income adjustments

a


640


(9,457)


5,532


(6,602)


9,739


nm


(93) %

Add: Non-interest expense adjustments

b


8,573


70,040


3,102


2,995


16,743


(88) %


(49) %

Operating PPNR (non-GAAP)

l


$            242,126


$            211,833


$            229,178


$            221,412


$            219,390


14 %


10 %

















Net income (GAAP)

j


$            152,423


$               86,609


$            143,269


$            146,182


$            120,144


76 %


27 %

Less: Non-interest income adjustments

a


640


(9,457)


5,532


(6,602)


9,739


nm


(93) %

Add: Non-interest expense adjustments

b


8,573


70,040


3,102


2,995


16,743


(88) %


(49) %

Tax effect of adjustments



(1,367)


(7,419)


(2,158)


902


(6,621)


(82) %


(79) %

Operating net income (non-GAAP)

m


$            160,269


$            139,773


$            149,745


$            143,477


$            140,005


15 %


14 %


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 thousands, except per share data)



Jun 30, 2025


Mar 31, 2025


Dec 31, 2024


Sep 30, 2024


Jun 30, 2024


Seq.
Quarter


Year
over
Year

Average assets

n


$  51,552,214


$  51,452,608


$  51,588,231


$ 52,009,017


$  51,981,555


— %


(1) %

Less: Average goodwill and other intangible assets, net



1,471,975


1,501,590


1,528,431


1,559,696


1,588,239


(2) %


(7) %

Average tangible assets

o


$  50,080,239


$  49,951,018


$  50,059,800


$ 50,449,321


$  50,393,316


— %


(1) %

















Average common shareholders' equity

p


$     5,286,562


$     5,216,555


$     5,226,290


$    5,118,592


$     4,908,239


1 %


8 %

Less: Average goodwill and other intangible assets, net



1,471,975


1,501,590


1,528,431


1,559,696


1,588,239


(2) %


(7) %

Average tangible common equity

q


$     3,814,587


$     3,714,965


$     3,697,859


$    3,558,896


$     3,320,000


3 %


15 %

















Weighted average basic shares outstanding

r


209,125


208,800


208,548


208,545


208,498


— %


— %

Weighted average diluted shares outstanding

s


209,975


210,023


209,889


209,454


209,011


— %


— %

















Select Per-Share & Performance Metrics
















Earnings per share - basic

j / r


$                0.73


$                0.41


$                0.69


$               0.70


$                0.58


78 %


26 %

Earnings per share - diluted

j / s


$                0.73


$                0.41


$                0.68


$               0.70


$                0.57


78 %


28 %

Efficiency ratio (1)

h / f


54.29 %


69.06 %


54.61 %


54.56 %


59.02 %


(14.77)


(4.73)

Non-interest expense to average assets

h / n


2.16 %


2.68 %


2.06 %


2.08 %


2.16 %


(0.52)


—

Return on average assets

j / n


1.19 %


0.68 %


1.10 %


1.12 %


0.93 %


0.51


0.26

Return on average tangible assets

j / o


1.22 %


0.70 %


1.14 %


1.15 %


0.96 %


0.52


0.26

PPNR return on average assets

k / n


1.81 %


1.19 %


1.70 %


1.72 %


1.49 %


0.62


0.32

Return on average common equity

j / p


11.56 %


6.73 %


10.91 %


11.36 %


9.85 %


4.83


1.71

Return on average tangible common equity

j / q


16.03 %


9.45 %


15.41 %


16.34 %


14.55 %


6.58


1.48

















Operating Per-Share & Performance Metrics
















Operating earnings per share - basic 

m / r


$                0.77


$                0.67


$                0.72


$               0.69


$                0.67


15 %


15 %

Operating earnings per share - diluted

m / s


$                0.76


$                0.67


$                0.71


$               0.69


$                0.67


13 %


13 %

Operating efficiency ratio, as adjusted (1)

u / y


51.79 %


55.11 %


52.51 %


53.89 %


53.56 %


(3.32)


(1.77)

Operating non-interest expense to average assets

i / n


2.10 %


2.13 %


2.03 %


2.05 %


2.03 %


(0.03)


0.07

Operating return on average assets

m / n


1.25 %


1.10 %


1.15 %


1.10 %


1.08 %


0.15


0.17

Operating return on average tangible assets

m / o


1.28 %


1.13 %


1.19 %


1.13 %


1.12 %


0.15


0.16

Operating PPNR return on average assets

l / n


1.88 %


1.67 %


1.77 %


1.69 %


1.70 %


0.21


0.18

Operating return on average common equity

m / p


12.16 %


10.87 %


11.40 %


11.15 %


11.47 %


1.29


0.69

Operating return on average tangible common equity

m / q


16.85 %


15.26 %


16.11 %


16.04 %


16.96 %


1.59


(0.11)



(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 thousands)



Jun 30, 2025


Mar 31, 2025


Dec 31, 2024


Sep 30, 2024


Jun 30, 2024


Seq.
Quarter


Year
over
Year

Non-interest expense (GAAP)

h


$        277,995


$        340,122


$        266,576


$        271,358


$        279,244


(18) %


— %

Less: Non-interest expense adjustments

b


(8,573)


(70,040)


(3,102)


(2,995)


(16,743)


(88) %


(49) %

Operating non-interest expense (non-GAAP)

i


269,422


270,082


263,474


268,363


262,501


— %


3 %

Less: B&O taxes

t


(3,093)


(3,150)


(3,495)


(3,248)


(3,183)


(2) %


(3) %

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

u


$        266,329


$        266,932


$        259,979


$        265,115


$        259,318


— %


3 %

















Net interest income (tax equivalent) (1)

v


$        447,552


$        426,098


$        438,424


$        431,184


$        428,434


5 %


4 %

Non-interest income (GAAP)

d


64,462


66,377


49,747


66,159


44,703


(3) %


44 %

Add: BOLI tax equivalent adjustment (1)

w


1,608


1,362


1,390


1,248


1,291


18 %


25 %

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

x


513,622


493,837


489,561


498,591


474,428


4 %


8 %

Less: Non-interest income adjustments

a


640


(9,457)


5,532


(6,602)


9,739


nm


(93) %

Total Adjusted Operating Revenue, excluding BOLI tax equivalent adjustments (tax equivalent) (non-GAAP)

y


$        514,262


$        484,380


$        495,093


$        491,989


$        484,167


6 %


6 %

















Efficiency ratio (1)

h / f


54.29 %


69.06 %


54.61 %


54.56 %


59.02 %


(14.77)


(4.73)

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

u / y


51.79 %


55.11 %


52.51 %


53.89 %


53.56 %


(3.32)


(1.77)



nm

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



(1)

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

 

Columbia Banking System, Inc.









GAAP to Non-GAAP Reconciliation - Continued









Income Statements, as adjusted









(Unaudited)












Six Months Ended


% Change









($ in thousands)



Jun 30, 2025


Jun 30, 2024


Year over Year









Non-Interest Income Adjustments
















Gain on sale of debt securities, net



$                                      5


$                                   11


(55) %









Gain (loss) on equity securities, net



2,112


(1,240)


nm









(Loss) gain on swap derivatives



(2,824)


1,621


(274) %









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



7,228


(12,486)


nm









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



(2,747)


4,355


(163) %









   MSR hedge loss



5,043


(5,882)


nm









Total non-interest income adjustments

a


$                             8,817


$                        (13,621)


nm

























Non-Interest Expense Adjustments
















Merger and restructuring expense



$                           22,565


$                           19,119


18 %









Exit and disposal costs



1,048


2,490


(58) %









    FDIC special assessment 



—


5,732


(100) %









Legal settlement



55,000


—


nm









Total non-interest expense adjustments

b


$                           78,613


$                           27,341


188 %

























Net interest income

c


$                        871,441


$                        850,811


2 %

























Non-interest income (GAAP)

d


$                        130,839


$                           95,060


38 %









Less: Non-interest income adjustments

a


(8,817)


13,621


(165) %









Operating non-interest income (non-GAAP)

e


$                        122,022


$                        108,681


12 %

























Revenue (GAAP)

f=c+d


$                    1,002,280


$                        945,871


6 %









Operating revenue (non-GAAP)

g=c+e


$                        993,463


$                        959,492


4 %

























Non-interest expense (GAAP)

h


$                        618,117


$                        566,760


9 %









Less: Non-interest expense adjustments

b


(78,613)


(27,341)


188 %









Operating non-interest expense (non-GAAP)

i


$                        539,504


$                        539,419


— %

























Net income (GAAP)

j


$                        239,032


$                        244,224


(2) %









Provision for income taxes



88,279


85,931


3 %









Income before provision for income taxes



327,311


330,155


(1) %









Provision for credit losses



56,852


48,956


16 %









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

k


384,163


379,111


1 %









Less: Non-interest income adjustments

a


(8,817)


13,621


(165) %









Add: Non-interest expense adjustments

b


78,613


27,341


188 %









Operating PPNR (non-GAAP)

l


$                        453,959


$                        420,073


8 %

























Net income (GAAP)

j


$                        239,032


$                        244,224


(2) %









Less: Non-interest income adjustments

a


(8,817)


13,621


(165) %









Add: Non-interest expense adjustments

b


78,613


27,341


188 %









Tax effect of adjustments



(8,786)


(10,241)


(14) %









Operating net income (non-GAAP)

m


$                        300,042


$                        274,945


9 %


















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















Columbia Banking System, Inc.









GAAP to Non-GAAP Reconciliation - Continued









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









(Unaudited)












Six Months Ended


% Change












Jun 30, 2025


Jun 30, 2024


Year over Year









Average assets

n


$                  51,502,508


$                  52,032,763


(1) %









Less: Average goodwill and other intangible assets, net



1,486,692


1,603,686


(7) %









Average tangible assets

o


$                  50,015,816


$                  50,429,077


(1) %

























Average common shareholders' equity

p


$                    5,251,887


$                    4,947,057


6 %









Less: Average goodwill and other intangible assets, net



1,486,692


1,603,686


(7) %









Average tangible common equity

q


$                    3,765,195


$                    3,343,371


13 %

























Weighted average basic shares outstanding

r


208,964


208,379


— %









Weighted average diluted shares outstanding

s


209,965


208,999


— %

























Select Per-Share & Performance Metrics
















Earnings per share - basic

j / r


$                                1.14


$                                1.17


(3) %









Earnings per share - diluted

j / s


$                                1.14


$                                1.17


(3) %









Efficiency ratio (1)

h / f


61.54 %


59.80 %


1.74









Non-interest expense to average assets

h/n


2.42 %


2.19 %


0.23









Return on average assets

j / n


0.94 %


0.94 %


—









Return on average tangible assets

j / o


0.96 %


0.97 %


(0.01)









PPNR return on average assets

k/n


1.50 %


1.47 %


0.03









Return on average common equity

j / p


9.18 %


9.93 %


(0.75)









Return on average tangible common equity

j / q


12.80 %


14.69 %


(1.89)

























Operating Per-Share & Performance Metrics
















Operating earnings per share - basic 

m / r


$                                1.44


$                                1.32


9 %









Operating earnings per share - diluted

m / s


$                                1.43


$                                1.32


8 %









Operating efficiency ratio, as adjusted (1)

u / y


53.40 %


55.26 %


(1.86)









Operating non-interest expense to average assets

i/n


2.11 %


2.08 %


0.03









Operating return on average assets 

m / n


1.17 %


1.06 %


0.11









Operating return on average tangible assets 

m / o


1.21 %


1.10 %


0.11









Operating PPNR return on average assets 

l / n


1.78 %


1.62 %


0.16









Operating return on average common equity 

m / p


11.52 %


11.18 %


0.34









Operating return on average tangible common equity 

m / q


16.07 %


16.54 %


(0.47)











(1)

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

 

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation - Continued

Operating Efficiency Ratio, as adjusted

(Unaudited)




Six Months Ended


% change

($ in thousands)



Jun 30, 2025


Jun 30, 2024


Year over Year

Non-interest expense (GAAP)

h


$                        618,117


$                        566,760


9 %

Less: Non-interest expense adjustments

b


(78,613)


(27,341)


188 %

Operating non-interest expense (non-GAAP)

i


539,504


539,419


— %

Less: B&O taxes

t


(6,243)


(6,406)


(3) %

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

u


$                        533,261


$                        533,013


— %









Net interest income (tax equivalent) (1)

v


$                        873,650


$                        852,778


2 %

Non-interest income (GAAP)

d


130,839


95,060


38 %

Add: BOLI tax equivalent adjustment (1)

w


2,970


3,100


(4) %

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

x


1,007,459


950,938


6 %

Less: Non-interest income adjustments

a


(8,817)


13,621


(165) %

Total Adjusted Operating Revenue, excluding BOLI tax equivalent adjustments (tax equivalent) (non-GAAP)

y


$                        998,642


$                        964,559


4 %









Efficiency ratio (1)

h /f


61.54 %


59.80 %


1.74

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

u / y


53.40 %


55.26 %


(1.86)



(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.