Original source text
, /PRNewswire/ --
$208 million
$217 million
$0.73
$0.76
Net income
Operating net income1
Earnings per common share -
diluted
Operating earnings per
common share - diluted1
CEO Commentary
"Our second quarter results demonstrate the resilience of our franchise and reflect the value of disciplined execution across the company," said Clint Stein, Chairman, CEO & President. "While the operating environment remains dynamic, we continued to execute on our strategic priorities through prudent expense management, ongoing balance sheet optimization, and consistent capital returns to shareholders. Commercial loan balances continued to grow, reflecting the strength of our customer relationships and the trust we have built across our markets. We also continued to reposition the balance sheet in ways that support stronger long-term performance. Supported by our diversified business model, sound credit culture, and strong capital generation, we remain committed to delivering sustainable returns and creating long-term value for our shareholders."
Clint Stein, Chairman, CEO & President of Columbia Banking System, Inc.
2Q26 HIGHLIGHTS (COMPARED TO 1Q26)
Net Interest
Income and
NIM
• Net interest income decreased by $5 million
from the prior quarter, due in part to $4 million of
interest income reversals, alongside modest
balance sheet deleveraging.
• Net interest margin was 3.93%, down 3 basis
points from the prior quarter, as the interest
income reversals mentioned above reduced the
net interest margin by 3 basis points.
Non-Interest
Income and
Expense
• Non-interest income increased by $5 million,
due primarily to higher treasury management
and card-based fees, partially offset by quarterly
changes in fair value adjustments and hedging
activity. Results also include $3 million in death
benefit proceeds related to a single policy.
• Non-interest expense decreased by $19 million,
due to lower merger expense and the realization
of acquisition-related cost savings.
Credit
Quality
• Net charge-offs were 0.25% of average loans
and leases (annualized), compared to 0.30% for
the prior quarter.
• Provision expense was $27 million, compared to
$28 million for the prior quarter.
• Non-performing assets to total assets ratio was
0.42%, compared to 0.40% as of March 31,
2026.
Capital
• Estimated total risk-based capital ratio of 13.4%
and estimated common equity tier 1 risk-based
capital ratio of 11.6%.
• Declared a quarterly cash dividend of $0.37 per
common share on May 15, 2026, which was
paid June 15, 2026.
• Repurchased $199 million of common stock
under our current repurchase plan.
Notable
Items
• Our first small business and retail campaign of
2026, which began in February and
ended April 30, 2026, brought over $600
million in new deposits to the bank and also was
successful in generating new SBA lending
relationships. Our second campaign began in
June and has generated approximately $650
million in new deposit balances through mid-
July.
2Q26 KEY FINANCIAL DATA
PERFORMANCE METRICS
2Q26
1Q26
2Q25
Return on average assets
1.27 %
1.18 %
1.19 %
Return on average common equity
10.99 %
10.00 %
11.56 %
Return on average tangible common
equity1
15.29 %
13.88 %
16.03 %
Operating return on average assets1
1.33 %
1.28 %
1.25 %
Operating return on average
common equity1
11.46 %
10.89 %
12.16 %
Operating return on average
tangible common equity1
15.95 %
15.11 %
16.85 %
Net interest margin
3.93 %
3.96 %
3.75 %
Efficiency ratio
55.15 %
58.03 %
54.29 %
Operating efficiency ratio, as
adjusted 1
52.92 %
53.68 %
51.79 %
INCOME STATEMENT
($ in millions, excl. per share data)
2Q26
1Q26
2Q25
Net interest income
$589
$594
$446
Provision for credit losses
$27
$28
$30
Non-interest income
$88
$83
$65
Non-interest expense
$375
$394
$278
Pre-provision net revenue1
$302
$283
$233
Operating pre-provision net
revenue1
$314
$306
$242
Earnings per common
share - diluted
$0.73
$0.66
$0.73
Operating earnings per common
share - diluted1
$0.76
$0.72
$0.76
Dividends paid per share
$0.37
$0.37
$0.36
BALANCE SHEET
($ in millions, excl. per share data)
2Q26
1Q26
2Q25
Total assets
$65,380
$66,027
$51,901
Loans and leases
$47,166
$47,697
$37,637
Deposits
$52,056
$53,489
$41,743
Book value per common share
$26.70
$26.47
$25.41
Tangible book value per common
share1
$19.22
$19.03
$18.47
Organizational Update
Columbia Banking System, Inc. ("Columbia," the "Company," "we," or "our") closed its acquisition of Pacific Premier Bancorp, Inc. ("Pacific Premier") on August 31, 2025, and completed the systems conversion and nine branch consolidations during the first quarter of 2026. All organizational changes and cost-related synergies were essentially complete as of June 30, 2026, including the achievement of our previously disclosed cost savings target associated with the Pacific Premier acquisition.
During the second quarter, we opened a branch in Colorado Springs and a financial hub in Las Vegas. We continue to strategically expand and refine our physical footprint to support relationship-driven growth, while funding these initiatives through targeted real estate optimization and other efficiency improvements.
Net Interest Income and Net Interest Margin
Net interest income was $589 million for the second quarter of 2026, down $5 million from the first quarter of 2026, due in part to $4 million of interest income reversals, alongside modest balance sheet deleveraging.
Columbia's net interest margin was 3.93% for the second quarter of 2026, down 3 basis points from the first quarter of 2026, as the interest income reversals mentioned above reduced the net interest margin by 3 basis points during the second quarter. Excluding this impact, net interest margin was consistent between periods, as higher yields on loans and leases partially offset a lower yield on taxable securities, driven by changes in prepayment speed expectations. Improved funding costs also contributed favorably to the net interest margin.
The cost of interest-bearing deposits decreased 8 basis points from the prior quarter to 1.96% for the second quarter of 2026, compared to 2.04% for the first quarter of 2026. The decrease during the second quarter reflects our active management of deposit rates and a lower mix of higher-cost brokered deposits. The cost of interest-bearing deposits was 1.95% for the month of June and 1.94% as of June 30, 2026.
Columbia's cost of interest-bearing liabilities decreased 3 basis points from the prior quarter to 2.21% for the second quarter of 2026, compared to 2.24% for the first quarter of 2026. The cost of interest-bearing liabilities was 2.22% for the month of June and 2.21% as of June 30, 2026. Refer to the Q2 2026 Earnings Presentation for additional net interest margin change details and interest rate sensitivity information.
Non-interest Income
Non-interest income was $88 million for the second quarter of 2026, up $5 million from the prior quarter. Quarterly changes in fair value adjustments and mortgage servicing rights ("MSR") hedging activity, which reflect interest rate fluctuations during the quarter, collectively resulted in a net fair value loss of $3 million for the second quarter, compared to a net fair value gain of $2 million for the first quarter, as detailed in our non-GAAP disclosures. Excluding these items, non-interest income was $91 million2 for the second quarter of 2026, up $10 million between periods, due primarily to higher treasury management and card-based fees. We also received $3 million in death benefit proceeds during the second quarter related to a single policy, which was recorded in other income.
Non-interest Expense
Non-interest expense was $375 million for the second quarter of 2026, down $19 million from the prior quarter, due to lower merger expense. Excluding merger and restructuring expense and exit and disposal costs, as detailed in our non-GAAP disclosures, non-interest expense was $366 million2, down $3 million from the prior quarter, due to cost savings related to the Pacific Premier acquisition. Refer to the Q2 2026 Earnings Presentation for additional expense details.
Balance Sheet
Total consolidated assets were $65.4 billion as of June 30, 2026, compared to $66.0 billion as of March 31, 2026. The decrease reflects balance sheet optimization activity. Cash and cash equivalents were $1.8 billion as of June 30, 2026, compared to $2.1 billion as of March 31, 2026. Including secured off-balance sheet lines of credit, total available liquidity was $25.6 billion as of June 30, 2026, representing 39% of total assets, 49% of total deposits, and 125% of uninsured deposits. Available-for-sale securities, which are held on balance sheet at fair value, were $11.1 billion as of June 30, 2026, compared to $10.9 billion as of March 31, 2026. The increase is due to the purchase of $462 million of investment securities, which offset paydowns and a decrease in the fair value of the portfolio. Refer to the Q2 2026 Earnings Presentation for additional details related to our investment securities portfolio and liquidity position.
Gross loans and leases were $47.2 billion as of June 30, 2026, compared to $47.7 billion as of March 31, 2026. The decrease reflects continued expected runoff in below-market-rate transactional loans and lower balances in non-owner occupied commercial real estate given elevated payoffs, due in part to competitive pricing pressure. Commercial loans, inclusive of owner-occupied commercial real estate, increased by 5% on an annualized basis relative to March 31, 2026, partially offsetting contraction in other portfolios. "Our bankers remained focused on relationship-driven activity during the second quarter, generating new business opportunities while continuing to manage the balance sheet with discipline," commented Tory Nixon, President of Columbia Bank. "Commercial relationship growth remained solid, and the continued runoff of lower-return transactional loans is reshaping our balance sheet as intended. Customer engagement remains healthy, and we remain encouraged by the quality of our pipelines and the opportunities we see across our western footprint." Refer to the Q2 2026 Earnings Presentation for additional details related to our loan portfolio, which include underwriting characteristics, the composition of our commercial portfolios, and disclosure related to transactional loans.
Total deposits were $52.1 billion as of June 30, 2026, compared to $53.5 billion as of March 31, 2026. The decrease reflects intentional reductions in brokered deposits and wholesale public deposits, which declined to $978 million and $928 million, respectively, as of June 30, 2026, compared to $1.6 billion and $1.2 billion, respectively, as of March 31, 2026. Customer deposit contraction in April due to seasonal tax payments also contributed to the decline between periods. "Seasonal factors reduced deposit balances early in the quarter, with balances stabilizing in May and June despite increasing competition," stated Mr. Nixon. "Our teams continue to emphasize relationship banking, serving our customers through advice-driven conversations and tailored solutions, while preserving the strength of our core deposit franchise. Meeting the evolving needs of our customers remains at the center of the value we provide." We utilized borrowings, which were $4.3 billion as of June 30, 2026, compared to $3.4 billion as of March 31, 2026, to supplement funding needs. Refer to the Q2 2026 Earnings Presentation for additional details related to deposit characteristics and flows.
Credit Quality
The allowance for credit losses ("ACL") was $475 million, or 1.01% of loans and leases, as of June 30, 2026, compared to $478 million, or 1.00% of loans and leases, as of March 31, 2026. The provision for credit losses was $27 million for the second quarter of 2026 and reflects loan portfolio runoff, credit migration trends, charge-off activity, and changes in the economic forecasts used in credit models.
Net charge-offs were 0.25% of average loans and leases (annualized) for the second quarter of 2026, compared to 0.30% for the first quarter of 2026. Net charge-offs in the FinPac portfolio were $15 million for the second quarter, compared to $14 million for the first quarter. Net charge-offs excluding the FinPac portfolio were $15 million for the second quarter, compared to $21 million for the first quarter. Non-performing assets were $273 million, or 0.42% of total assets, as of June 30, 2026, compared to $264 million, or 0.40% of total assets, as of March 31, 2026. Refer to the Q2 2026 Earnings Presentation for additional details related to the allowance for credit losses and other credit trends.
Capital
Columbia's book value per common share was $26.70 as of June 30, 2026, compared to $26.47 as of March 31, 2026. During the second quarter, Columbia repurchased 6.6 million common shares under its current repurchase plan at an average price of $29.93, representing 2.3% of outstanding common shares. Book value also was impacted by the change in accumulated other comprehensive (loss) income ("AOCI") to $(310) million as of June 30, 2026, compared to $(291) million as of the prior quarter-end. The change in AOCI is due primarily to an increase in the tax-effected net unrealized loss on available-for-sale securities to $275 million as of June 30, 2026, compared to $260 million as of March 31, 2026. Tangible book value per common share3 was $19.22 as of June 30, 2026, compared to $19.03 as of March 31, 2026.
Columbia's estimated total risk-based capital ratio was 13.4% and its estimated common equity tier 1 risk-based capital ratio was 11.6% as of June 30, 2026, compared to 13.5% and 11.7%, respectively, as of March 31, 2026. Columbia remains above current "well-capitalized" regulatory minimums. The regulatory capital ratios as of June 30, 2026 are estimates, pending completion and filing of Columbia's regulatory reports.
Earnings Presentation and Conference Call Information
Columbia's Q2 2026 Earnings Presentation provides additional disclosure. A copy will be available on our investor relations page: www.columbiabankingsystem.com.
Columbia will host its second quarter 2026 earnings conference call on July 23, 2026 at 2:00 p.m. PT (5:00 p.m. ET). During the call, Columbia's management will provide an update on recent activities and discuss its second quarter 2026 financial results. Participants may join the audiocast or register for the call using the link below to receive dial-in details and their own unique PINs. It is recommended you join 10 minutes prior to the start time.
Join the audiocast: https://edge.media-server.com/mmc/p/thdt6a5z/
Register for the call: https://register-conf.media-server.com/register/BIb20bf1c21e7e4dcd93e446da448dd1e9
Access the replay through Columbia's investor relations page: https://www.columbiabankingsystem.com/news-market-data/event-calendar/default.aspx
About Columbia Banking System, Inc.
Columbia Banking System, Inc. (Nasdaq: COLB) is headquartered in Tacoma, Washington and is the parent company of Columbia Bank, an award-winning preeminent regional bank with offices in Arizona, California, Colorado, Idaho, Nevada, Oregon, Texas, Utah, and Washington. Columbia Bank combines the resources, sophistication, and expertise of a national bank with a commitment to deliver superior, personalized service. The bank supports consumers and businesses through a full suite of services, including retail and commercial banking, Small Business Administration lending, institutional and corporate banking, and equipment leasing. Columbia Bank customers also have access to comprehensive investment and wealth management expertise as well as healthcare and private banking through Columbia Wealth Management. Learn more at www.columbiabankingsystem.com.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "target," "projects," "outlook," "forecast," "will," "may," "could," "should," "can" and similar references to future periods. In this press release we make forward-looking statements about strategic and growth initiatives and the result of such activity. Risks and uncertainties that could cause results to differ from forward-looking statements we make include, without limitation: current and future economic and market conditions, including the effects of declines in housing and commercial real estate prices, high unemployment rates, renewed inflation and any recession or slowdown in economic growth particularly in the western United States; economic forecast variables that are either materially worse or better than end of quarter projections and deterioration in the economy that could result in increased loan and lease losses, especially those risks associated with concentrations in real estate related loans; risks related to our acquisition of Pacific Premier (the "Transaction"), including, among others, (i) any revenue synergies from the Transaction may not be fully realized or may take longer than anticipated to be realized, and (ii) deposit attrition as a result of the Transaction; the impact of proposed or imposed tariffs by the U.S. government and retaliatory tariffs proposed or imposed by U.S. trading partners that could have an adverse impact on customers; our ability to effectively manage problem credits; the impact of bank failures or adverse developments at other banks on general investor sentiment regarding the liquidity and stability of banks; changes in interest rates that could significantly reduce net interest income and negatively affect asset yields and valuations and funding sources; changes in the scope and cost of FDIC insurance and other coverage; our ability to successfully implement efficiency and operational excellence initiatives; our ability to successfully develop and market new products and technology; changes in laws or regulations; potential adverse reactions or changes to business or employee relationships; the effect of geopolitical instability, including wars, conflicts and terrorist attacks; and natural disasters and other similar unexpected events outside of our control. We also caution that the amount and timing of any future common stock dividends or repurchases will depend on the earnings, cash requirements and financial condition of Columbia, market conditions, capital requirements, applicable law and regulations (including federal securities laws and federal banking and state regulations), and other factors deemed relevant by Columbia's Board of Directors.
_________________________
1 "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for additional information.
2 "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for additional information.
3 "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for additional information.
TABLE INDEX
Page
Consolidated Statements of Income
7
Consolidated Balance Sheets
8
Financial Highlights
10
Loan & Lease Portfolio Balances and Mix
11
Deposit Portfolio Balances and Mix
13
Credit Quality - Non-performing Assets
14
Credit Quality - Allowance for Credit Losses
15
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates
17
Residential Mortgage Banking Activity
19
GAAP to Non-GAAP Reconciliation
21
Columbia Banking System, Inc.
Consolidated Statements of Income
(Unaudited)
Quarter Ended
% Change
($ in millions, shares in thousands)
Jun 30,
2026
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Seq.
Quarter
Year
over
Year
Interest income:
Loans and leases
$ 683
$ 684
$ 722
$ 619
$ 564
— %
21 %
Interest and dividends on investments:
Taxable
98
103
102
89
80
(5) %
23 %
Exempt from federal income tax
12
12
12
8
7
— %
71 %
Dividends
4
3
3
4
3
33 %
33 %
Temporary investments and interest bearing deposits
13
14
19
20
16
(7) %
(19) %
Total interest income
810
816
858
740
670
(1) %
21 %
Interest expense:
Deposits
173
184
195
195
180
(6) %
(4) %
Securities sold under agreement to repurchase and
federal funds purchased
1
1
1
1
1
— %
— %
Borrowings
39
30
27
30
35
30 %
11 %
Junior and other subordinated debentures
8
7
8
9
8
14 %
— %
Total interest expense
221
222
231
235
224
— %
(1) %
Net interest income
589
594
627
505
446
(1) %
32 %
Provision for credit losses
27
28
23
70
30
(4) %
(10) %
Non-interest income:
Service charges on deposits
23
20
24
21
20
15 %
15 %
Card-based fees
17
15
16
15
14
13 %
21 %
Financial services and trust revenue
15
15
15
9
6
— %
150 %
Residential mortgage banking revenue, net
7
12
7
7
8
(42) %
(13) %
(Loss) gain on investment securities, net
(1)
—
2
2
—
nm
nm
Gain on loan and lease sales, net
—
1
1
—
—
(100) %
nm
(Loss) gain on loans held for investment, at fair value
(1)
(2)
—
4
—
(50) %
nm
BOLI income
9
9
9
6
5
— %
80 %
Other income
19
13
16
13
12
46 %
58 %
Total non-interest income
88
83
90
77
65
6 %
35 %
Non-interest expense:
Salaries and employee benefits
196
196
201
171
155
— %
26 %
Occupancy and equipment, net
65
66
67
54
47
(2) %
38 %
FDIC assessments
9
9
4
8
8
— %
13 %
Intangible amortization
38
41
42
31
26
(7) %
46 %
Merger and restructuring expense
9
24
39
87
8
(63) %
13 %
Other expenses
58
58
59
42
34
— %
71 %
Total non-interest expense
375
394
412
393
278
(5) %
35 %
Income before provision for income taxes
275
255
282
119
203
8 %
35 %
Provision for income taxes
67
63
67
23
51
6 %
31 %
Net income
$ 208
$ 192
$ 215
$ 96
$ 152
8 %
37 %
Weighted average basic shares outstanding (in
thousands)
285,558
290,933
295,376
237,838
209,125
(2) %
37 %
Weighted average diluted shares outstanding (in
thousands)
286,472
292,160
296,760
238,925
209,975
(2) %
36 %
Earnings per common share – basic
$ 0.73
$ 0.66
$ 0.72
$ 0.40
$ 0.73
11 %
— %
Earnings per common share – diluted
$ 0.73
$ 0.66
$ 0.72
$ 0.40
$ 0.73
11 %
— %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
Columbia Banking System, Inc.
Consolidated Statements of Income
(Unaudited)
Six Months Ended
% Change
($ in millions, shares in thousands)
Jun 30, 2026
Jun 30, 2025
Year over
Year
Interest income:
Loans and leases
$ 1,367
$ 1,117
22 %
Interest and dividends on investments:
Taxable
201
149
35 %
Exempt from federal income tax
24
14
71 %
Dividends
7
6
17 %
Temporary investments and interest bearing deposits
27
32
(16) %
Total interest income
1,626
1,318
23 %
Interest expense:
Deposits
357
357
0 %
Securities sold under agreement to repurchase and federal funds purchased
2
2
0 %
Borrowings
69
71
(3) %
Junior and other subordinated debentures
15
17
(12) %
Total interest expense
443
447
(1) %
Net interest income
1,183
871
36 %
Provision for credit losses
55
57
(4) %
Non-interest income:
Service charges on deposits
43
39
10 %
Card-based fees
32
27
19 %
Financial services and trust revenue
30
11
173 %
Residential mortgage banking revenue, net
19
17
12 %
(Loss) gain on investment securities, net
(1)
2
(150) %
Gain on loan and lease sales, net
1
—
nm
(Loss) gain on loans held for investment, at fair value
(3)
7
(143) %
BOLI income
18
10
80 %
Other income
32
18
78 %
Total non-interest income
171
131
31 %
Non-interest expense:
Salaries and employee benefits
392
300
31 %
Occupancy and equipment, net
131
95
38 %
FDIC assessments
18
16
13 %
Intangible amortization
79
54
46 %
Merger and restructuring expense
33
23
43 %
Legal settlement
—
55
(100) %
Other expenses
116
75
55 %
Total non-interest expense
769
618
24 %
Income before provision for income taxes
530
327
62 %
Provision for income taxes
130
88
48 %
Net income
$ 400
$ 239
67 %
Weighted average basic shares outstanding (in thousands)
288,130
208,964
38 %
Weighted average diluted shares outstanding (in thousands)
289,212
209,965
38 %
Earnings per common share – basic
$ 1.39
$ 1.14
22 %
Earnings per common share – diluted
$ 1.38
$ 1.14
21 %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
Columbia Banking System, Inc.
Consolidated Balance Sheets
(Unaudited)
% Change
($ in millions, shares in thousands)
Jun 30, 2026
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Seq.
Quarter
Year
over
Year
Assets:
Cash and due from banks
$ 648
$ 577
$ 511
$ 535
$ 608
12 %
7 %
Interest-bearing cash and temporary
investments
1,121
1,522
1,869
1,808
1,334
(26) %
(16) %
Investment securities:
Equity and other, at fair value
126
124
113
112
93
2 %
35 %
Available for sale, at fair value
11,131
10,915
11,112
11,013
8,653
2 %
29 %
Held to maturity, at amortized cost
17
18
18
18
2
(6) %
nm
Loans held for sale
61
81
262
340
66
(25) %
(8) %
Loans and leases
47,166
47,697
47,776
48,462
37,637
(1) %
25 %
Allowance for credit losses on loans and
leases
(458)
(459)
(466)
(473)
(421)
— %
9 %
Net loans and leases
46,708
47,238
47,310
47,989
37,216
(1) %
26 %
Restricted equity securities
207
168
159
119
161
23 %
29 %
Premises and equipment, net
424
426
422
416
357
— %
19 %
Goodwill
1,482
1,482
1,482
1,481
1,029
— %
44 %
Other intangible assets, net
633
671
712
754
430
(6) %
47 %
Bank-owned life insurance
1,227
1,222
1,218
1,199
705
— %
74 %
Other assets
1,595
1,583
1,644
1,712
1,247
1 %
28 %
Total assets
$ 65,380
$ 66,027
$ 66,832
$ 67,496
$ 51,901
(1) %
26 %
Liabilities:
Deposits
Non-interest-bearing
$ 17,218
$ 17,635
$ 17,419
$ 17,810
$ 13,220
(2) %
30 %
Interest-bearing
34,838
35,854
36,792
37,961
28,523
(3) %
22 %
Total deposits
52,056
53,489
54,211
55,771
41,743
(3) %
25 %
Securities sold under agreements to
repurchase
189
162
207
167
191
17 %
(1) %
Borrowings
4,250
3,400
3,200
2,300
3,350
25 %
27 %
Junior subordinated debentures, at fair value
339
333
338
331
323
2 %
5 %
Junior and other subordinated debentures,
at amortized cost
97
97
97
107
108
— %
(10) %
Other liabilities
897
882
939
1,030
844
2 %
6 %
Total liabilities
57,828
58,363
58,992
59,706
46,559
(1) %
24 %
Shareholders' equity:
Common stock
7,702
7,896
8,099
8,189
5,826
(2) %
32 %
Retained earnings (accumulated deficit)
160
59
(26)
(131)
(151)
171 %
nm
Accumulated other comprehensive loss
(310)
(291)
(233)
(268)
(333)
7 %
(7) %
Total shareholders' equity
7,552
7,664
7,840
7,790
5,342
(1) %
41 %
Total liabilities and shareholders' equity
$ 65,380
$ 66,027
$ 66,832
$ 67,496
$ 51,901
(1) %
26 %
Common shares outstanding at period end (in
thousands)
282,817
289,530
295,422
299,147
210,213
(2) %
35 %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
Columbia Banking System, Inc.
Financial Highlights
(Unaudited)
Quarter Ended
% Change
Jun 30,
2026
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Seq.
Quarter
Year
over
Year
Per Common Share Data:
Dividends
$ 0.37
$ 0.37
$ 0.37
$ 0.36
$ 0.36
— %
3 %
Book value
$ 26.70
$ 26.47
$ 26.54
$ 26.04
$ 25.41
1 %
5 %
Tangible book value (1)
$ 19.22
$ 19.03
$ 19.11
$ 18.57
$ 18.47
1 %
4 %
Performance Ratios:
Efficiency ratio (2)
55.15 %
58.03 %
57.30 %
67.29 %
54.29 %
(2.88)
0.86
Non-interest expense to average assets (1)
2.29 %
2.41 %
2.44 %
2.74 %
2.16 %
(0.12)
0.13
Return on average assets ("ROAA")
1.27 %
1.18 %
1.27 %
0.67 %
1.19 %
0.09
0.08
Pre-provision net revenue ("PPNR") ROAA (1)
1.85 %
1.73 %
1.80 %
1.32 %
1.81 %
0.12
0.04
Return on average common equity
10.99 %
10.00 %
10.92 %
6.19 %
11.56 %
0.99
(0.57)
Return on average tangible common equity (1)
15.29 %
13.88 %
15.24 %
8.58 %
16.03 %
1.41
(0.74)
Performance Ratios - Operating: (1)
Operating efficiency ratio, as adjusted (1),(2)
52.92 %
53.68 %
51.39 %
52.32 %
51.79 %
(0.76)
1.13
Operating non-interest expense to average assets (1)
2.24 %
2.26 %
2.20 %
2.14 %
2.10 %
(0.02)
0.14
Operating ROAA (1)
1.33 %
1.28 %
1.44 %
1.42 %
1.25 %
0.05
0.08
Operating PPNR ROAA (1)
1.92 %
1.87 %
2.02 %
1.89 %
1.88 %
0.05
0.04
Operating return on average common equity (1)
11.46 %
10.89 %
12.34 %
13.15 %
12.16 %
0.57
(0.70)
Operating return on average tangible common equity (1)
15.95 %
15.11 %
17.22 %
18.24 %
16.85 %
0.84
(0.90)
Average Balance Sheet Yields, Rates, & Ratios:
Yield on loans and leases
5.77 %
5.78 %
5.92 %
5.96 %
6.00 %
(0.01)
(0.23)
Yield on earning assets (2)
5.40 %
5.44 %
5.55 %
5.62 %
5.62 %
(0.04)
(0.22)
Cost of interest bearing deposits
1.96 %
2.04 %
2.08 %
2.43 %
2.52 %
(0.08)
(0.56)
Cost of interest bearing liabilities
2.21 %
2.24 %
2.27 %
2.65 %
2.78 %
(0.03)
(0.57)
Cost of total deposits
1.32 %
1.39 %
1.40 %
1.66 %
1.73 %
(0.07)
(0.41)
Cost of total funding (3)
1.55 %
1.56 %
1.57 %
1.87 %
1.98 %
(0.01)
(0.43)
Net interest margin (2)
3.93 %
3.96 %
4.06 %
3.84 %
3.75 %
(0.03)
0.18
Average interest bearing cash / Average interest earning assets
2.33 %
2.59 %
3.12 %
3.41 %
2.97 %
(0.26)
(0.64)
Average loans and leases / Average interest earning assets
78.67 %
78.44 %
78.12 %
78.39 %
78.64 %
0.23
0.03
Average loans and leases / Average total deposits
90.19 %
88.58 %
87.34 %
88.39 %
90.07 %
1.61
0.12
Average non-interest bearing deposits / Average total deposits
32.90 %
32.26 %
32.45 %
31.41 %
31.39 %
0.64
1.51
Average total deposits / Average total funding (3)
91.88 %
93.58 %
94.52 %
93.47 %
91.92 %
(1.70)
(0.04)
Select Credit & Capital Ratios:
Non-performing loans and leases to total loans and leases
0.57 %
0.55 %
0.41 %
0.40 %
0.47 %
0.02
0.10
Non-performing assets to total assets
0.42 %
0.40 %
0.30 %
0.29 %
0.35 %
0.02
0.07
Allowance for credit losses to loans and leases
1.01 %
1.00 %
1.02 %
1.01 %
1.17 %
0.01
(0.16)
Total risk-based capital ratio (4)
13.4 %
13.5 %
13.6 %
13.4 %
13.0 %
(0.10)
0.40
Common equity tier 1 risk-based capital ratio (4)
11.6 %
11.7 %
11.8 %
11.6 %
10.8 %
(0.10)
0.80
(1) See GAAP to Non-GAAP Reconciliation.
(2) Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate.
(3) Total funding = total deposits + total borrowings.
(4) Estimated holding company ratios.
Columbia Banking System, Inc.
Financial Highlights
(Unaudited)
Six Months Ended
% Change
Jun 30, 2026
Jun 30, 2025
Year over Year
Per Common Share Data:
Dividends
$ 0.74
$ 0.72
2.78 %
Performance Ratios:
Efficiency ratio (2)
56.59 %
61.54 %
(4.95)
Non-interest expense to average assets (1)
2.35 %
2.42 %
(0.07)
Return on average assets
1.22 %
0.94 %
0.28
PPNR ROAA (1)
1.79 %
1.50 %
0.29
Return on average common equity
10.49 %
9.18 %
1.31
Return on average tangible common equity (1)
14.58 %
12.80 %
1.78
Performance Ratios - Operating: (1)
Operating efficiency ratio, as adjusted (1),(2)
53.29 %
53.40 %
(0.11)
Operating non-interest expense to average assets (1)
2.25 %
2.11 %
0.14
Operating ROAA (1)
1.30 %
1.17 %
0.13
Operating PPNR ROAA (1)
1.90 %
1.78 %
0.12
Operating return on average common equity (1)
11.17 %
11.52 %
(0.35)
Operating return on average tangible common equity (1)
15.53 %
16.07 %
(0.54)
Average Balance Sheet Yields, Rates, & Ratios:
Yield on loans and leases
5.78 %
5.96 %
(0.18)
Yield on earning assets (2)
5.42 %
5.56 %
(0.14)
Cost of interest bearing deposits
2.00 %
2.52 %
(0.52)
Cost of interest bearing liabilities
2.23 %
2.79 %
(0.56)
Cost of total deposits
1.35 %
1.72 %
(0.37)
Cost of total funding (3)
1.56 %
1.98 %
(0.42)
Net interest margin (2)
3.94 %
3.67 %
0.27
Average interest bearing cash / Average interest earning assets
2.46 %
3.05 %
(0.59)
Average loans and leases / Average interest earning assets
78.55 %
78.78 %
(0.23)
Average loans and leases / Average total deposits
89.38 %
90.21 %
(0.83)
Average non-interest bearing deposits / Average total deposits
32.58 %
31.57 %
1.01
Average total deposits / Average total funding (3)
92.73 %
91.90 %
0.83
(1) See GAAP to Non-GAAP Reconciliation.
(2) Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate.
(3) Total funding = Total deposits + Total borrowings.
Columbia Banking System, Inc.
Loan & Lease Portfolio Balances and Mix
(Unaudited)
Jun 30, 2026
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
% Change
($ in millions)
Amount
Amount
Amount
Amount
Amount
Seq.
Quarter
Year
over
Year
Loans and leases:
Commercial real estate: (1)
Non-owner occupied term
$ 7,584
$ 8,113
$ 8,206
$ 8,444
$ 6,190
(7) %
23 %
Owner occupied term
7,405
7,258
7,314
7,361
5,320
2 %
39 %
Multifamily
10,122
10,173
10,281
10,377
5,735
(1) %
76 %
Construction & development
1,529
1,670
1,707
2,071
2,070
(8) %
(26) %
Residential development
369
373
362
367
286
(1) %
29 %
Commercial:
Term
7,004
6,887
6,713
6,590
5,353
2 %
31 %
Lines of credit & other
3,794
3,804
3,643
3,582
2,951
— %
29 %
Leases & equipment finance
1,617
1,619
1,599
1,614
1,641
— %
(1) %
Residential:
Mortgage
5,402
5,483
5,624
5,722
5,830
(1) %
(7) %
Home equity loans & lines
2,176
2,147
2,149
2,153
2,083
1 %
4 %
Consumer & other
164
170
178
181
178
(4) %
(8) %
Total loans and leases, net of deferred fees
and costs
$ 47,166
$ 47,697
$ 47,776
$ 48,462
$ 37,637
(1) %
25 %
Loans and leases mix:
Commercial real estate: (1)
Non-owner occupied term
16 %
17 %
17 %
18 %
16 %
Owner occupied term
16 %
15 %
15 %
15 %
14 %
Multifamily
22 %
21 %
22 %
21 %
15 %
Construction & development
3 %
4 %
4 %
4 %
6 %
Residential development
1 %
1 %
1 %
1 %
1 %
Commercial:
Term
15 %
15 %
14 %
14 %
14 %
Lines of credit & other
8 %
8 %
8 %
7 %
8 %
Leases & equipment finance
3 %
3 %
3 %
3 %
4 %
Residential:
Mortgage
11 %
11 %
12 %
12 %
15 %
Home equity loans & lines
5 %
5 %
4 %
4 %
6 %
Consumer & other
— %
— %
— %
1 %
1 %
Total
100 %
100 %
100 %
100 %
100 %
(1)
During the three months ended June 30, 2026, the Company aligned the presentation of certain loans with its established loan classification methodology. This resulted in approximately $174 million of loans being reported within different commercial real estate loan categories, primarily multifamily loans, with a corresponding decrease in non-owner occupied term loans.
Columbia Banking System, Inc.
Deposit Portfolio Balances and Mix
(Unaudited)
Jun 30, 2026
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
% Change
($ in millions)
Amount
Amount
Amount
Amount
Amount
Seq. Quarter
Year
over
Year
Deposits:
Demand, non-interest bearing
$ 17,218
$ 17,635
$ 17,419
$ 17,810
$ 13,220
(2) %
30 %
Demand, interest bearing
11,093
10,860
10,763
11,675
8,335
2 %
33 %
Money market
16,415
16,843
17,013
16,816
11,694
(3) %
40 %
Savings
2,392
2,437
2,442
2,504
2,276
(2) %
5 %
Time
4,938
5,714
6,574
6,966
6,218
(14) %
(21) %
Total
$ 52,056
$ 53,489
$ 54,211
$ 55,771
$ 41,743
(3) %
25 %
Total core deposits (1)
$ 49,488
$ 50,245
$ 50,174
$ 51,535
$ 37,294
(2) %
33 %
Deposit mix:
Demand, non-interest bearing
33 %
33 %
32 %
32 %
32 %
Demand, interest bearing
21 %
20 %
20 %
21 %
20 %
Money market
32 %
31 %
31 %
30 %
28 %
Savings
5 %
5 %
5 %
5 %
5 %
Time
9 %
11 %
12 %
12 %
15 %
Total
100 %
100 %
100 %
100 %
100 %
(1) Core deposits are defined as total deposits less time deposits greater than $250,000 and all brokered deposits.
Columbia Banking System, Inc.
Credit Quality – Non-performing Assets
(Unaudited)
Quarter Ended
% Change
($ in millions)
Jun 30,
2026
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Seq.
Quarter
Year
over
Year
Non-performing assets:(1)
Loans and leases on non-accrual status:
Commercial real estate
$ 96
$ 91
$ 50
$ 53
$ 31
5 %
210 %
Commercial
84
96
66
67
67
(13) %
25 %
Total loans and leases on non-accrual status
180
187
116
120
98
(4) %
84 %
Loans and leases past due 90+ days and accruing: (2)
Commercial real estate
4
3
2
—
—
33 %
nm
Commercial
4
2
8
5
5
100 %
(20) %
Residential (2)
80
69
72
71
74
16 %
8 %
Total loans and leases past due 90+ days and
accruing (2)
88
74
82
76
79
19 %
11 %
Total non-performing loans and leases (1), (2)
268
261
198
196
177
3 %
51 %
Other real estate owned
5
3
2
3
3
67 %
67 %
Total non-performing assets (1), (2)
$ 273
$ 264
$ 200
$ 199
$ 180
3 %
52 %
Loans and leases past due 31-89 days
$ 125
$ 168
$ 94
$ 85
$ 142
(26) %
(12) %
Loans and leases past due 31-89 days to total loans and
leases
0.27 %
0.35 %
0.20 %
0.18 %
0.38 %
(0.08)
(0.11)
Non-performing loans and leases to total loans and
leases (1), (2)
0.57 %
0.55 %
0.41 %
0.40 %
0.47 %
0.02
0.10
Non-performing assets to total assets (1), (2)
0.42 %
0.40 %
0.30 %
0.29 %
0.35 %
0.02
0.07
Non-accrual loans and leases to total loan and leases (2)
0.38 %
0.39 %
0.24 %
0.25 %
0.26 %
(0.01)
0.12
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
(1)
Non-accrual and 90+ days past due loans include government guarantees of $78 million, $88 million, $79 million, $70 million, and $68 million at June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively.
(2)
Excludes certain mortgage loans that carry a government guarantee, which Columbia has the unilateral right to repurchase but has not done so, totaling $4 million, $4 million, $3 million, $2 million, and $2 million at June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively.
Columbia Banking System, Inc.
Credit Quality – Allowance for Credit Losses
(Unaudited)
Quarter Ended
% Change
($ in millions)
Jun 30,
2026
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Seq.
Quarter
Year
over
Year
Allowance for credit losses on loans and leases
(ACLLL)
Balance, beginning of period
$ 459
$ 466
$ 473
$ 421
$ 421
(2) %
9 %
Initial ACL recorded for PCD loans acquired during
the period
—
—
—
5
—
nm
nm
Provision for credit losses on loans and leases
29
28
23
69
29
4 %
0 %
Charge-offs
Commercial real estate
(1)
—
(8)
(3)
—
nm
nm
Commercial
(32)
(39)
(23)
(22)
(33)
(18) %
(3) %
Residential
—
—
(1)
—
—
nm
nm
Consumer & other
(2)
(1)
(1)
(2)
(1)
100 %
100 %
Total charge-offs
(35)
(40)
(33)
(27)
(34)
(13) %
3 %
Recoveries
Commercial
4
4
3
4
5
0 %
(20) %
Consumer & other
1
1
—
1
—
0 %
nm
Total recoveries
5
5
3
5
5
0 %
0 %
Net charge-offs
Commercial real estate
(1)
—
(8)
(3)
—
nm
nm
Commercial
(28)
(35)
(20)
(18)
(28)
(20) %
0 %
Residential
—
—
(1)
—
—
nm
nm
Consumer & other
(1)
—
(1)
(1)
(1)
nm
0 %
Total net charge-offs
(30)
(35)
(30)
(22)
(29)
(14) %
3 %
Balance, end of period
$ 458
$ 459
$ 466
$ 473
$ 421
0 %
9 %
Reserve for unfunded commitments
Balance, beginning of period
$ 19
$ 19
$ 19
$ 18
$ 17
0 %
12 %
(Recapture) provision for credit losses on
unfunded commitments
(2)
—
—
1
1
nm
(300) %
Balance, end of period
17
19
19
19
18
(11) %
(6) %
Total Allowance for credit losses (ACL)
$ 475
$ 478
$ 485
$ 492
$ 439
(1) %
8 %
Net charge-offs to average loans and leases
(annualized)
0.25 %
0.30 %
0.25 %
0.22 %
0.31 %
(0.05)
(0.06)
Recoveries to gross charge-offs
14.29 %
12.50 %
9.09 %
18.52 %
15.19 %
1.79
(0.90)
ACLLL to loans and leases
0.97 %
0.96 %
0.98 %
0.98 %
1.12 %
0.01
(0.15)
ACL to loans and leases
1.01 %
1.00 %
1.02 %
1.01 %
1.17 %
0.01
(0.16)
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
Columbia Banking System, Inc.
Credit Quality – Allowance for Credit Losses
(Unaudited)
Six Months Ended
% Change
($ in millions)
Jun 30, 2026
Jun 30, 2025
Year over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period
$ 466
$ 425
10 %
Provision for credit losses on loans and leases
57
55
4 %
Charge-offs
Commercial real estate
(1)
—
nm
Commercial
(71)
(66)
8 %
Residential
—
(1)
nm
Consumer & other
(3)
(2)
50 %
Total charge-offs
(75)
(69)
9 %
Recoveries
Commercial
8
9
(11) %
Consumer & other
2
1
100 %
Total recoveries
10
10
0 %
Net charge-offs
Commercial real estate
(1)
—
nm
Commercial
(63)
(57)
11 %
Residential
—
(1)
nm
Consumer & other
(1)
(1)
0 %
Total net charge-offs
(65)
(59)
10 %
Balance, end of period
$ 458
$ 421
9 %
Reserve for unfunded commitments
Balance, beginning of period
$ 19
$ 16
19 %
(Recapture) provision for credit losses on unfunded commitments
(2)
2
(200) %
Balance, end of period
17
18
(6) %
Total Allowance for credit losses (ACL)
$ 475
$ 439
8 %
Net charge-offs to average loans and leases (annualized)
0.28 %
0.31 %
(0.03)
Recoveries to gross charge-offs
13.33 %
14.62 %
(1.29)
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
Columbia Banking System, Inc.
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates
(Unaudited)
Quarter Ended
June 30, 2026
March 31, 2026
June 30, 2025
($ in millions)
Average
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
$ —
6.86 %
$ 189
$ 3
5.17 %
$ 67
$ 1
6.66 %
Loans and leases (1)
47,419
683
5.77 %
47,714
681
5.78 %
37,648
563
6.00 %
Taxable securities
10,173
102
3.97 %
10,097
106
4.22 %
7,937
83
4.22 %
Non-taxable securities (2)
1,219
15
4.63 %
1,253
14
4.51 %
798
8
3.95 %
Temporary investments and
interest-bearing cash
1,402
13
3.71 %
1,578
14
3.65 %
1,421
16
4.46 %
Total interest-earning assets (1), (2)
60,279
$ 813
5.40 %
60,831
$ 818
5.44 %
47,871
$ 671
5.62 %
Goodwill and other intangible
assets
2,136
2,175
1,472
Other assets
3,217
3,209
2,209
Total assets
$ 65,632
$ 66,215
$ 51,552
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits
$ 11,002
$ 45
1.65 %
$ 10,780
$ 43
1.60 %
$ 8,480
$ 48
2.28 %
Money market deposits
16,658
87
2.10 %
16,848
88
2.12 %
11,783
72
2.46 %
Savings deposits
2,413
1
0.14 %
2,443
1
0.12 %
2,287
1
0.13 %
Time deposits
5,205
40
3.03 %
6,414
52
3.32 %
6,126
59
3.85 %
Total interest-bearing deposits
35,278
173
1.96 %
36,485
184
2.04 %
28,676
180
2.52 %
Repurchase agreements and
federal funds purchased
163
1
1.65 %
187
1
1.86 %
186
1
2.06 %
Borrowings
4,050
39
3.90 %
3,071
30
3.96 %
3,058
35
4.53 %
Junior and other subordinated
debentures
431
8
7.07 %
435
7
7.03 %
428
8
8.05 %
Total interest-bearing liabilities
39,922
$ 221
2.21 %
40,178
$ 222
2.24 %
32,348
$ 224
2.78 %
Non-interest-bearing deposits
17,301
17,378
13,123
Other liabilities
814
873
794
Total liabilities
58,037
58,429
46,265
Common equity
7,594
7,786
5,287
Total liabilities and shareholders'
equity
$ 65,631
$ 66,215
$ 51,552
NET INTEREST INCOME (2)
$ 592
$ 596
$ 447
NET INTEREST SPREAD (2)
3.19 %
3.20 %
2.84 %
NET INTEREST INCOME TO
EARNING ASSETS OR NET
INTEREST MARGIN (1), (2)
3.93 %
3.96 %
3.75 %
(1)
Non-accrual loans and leases are included in the average balance.
(2)
Tax-exempt income was adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $3 million for the three months ended June 30, 2026, as compared to $2 million for the three months ended March 31, 2026 and $1 million for the three months ended June 30, 2025.
Columbia Banking System, Inc.
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates
(Unaudited)
Six Months Ended
June 30, 2026
June 30, 2025
($ in millions)
Average
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
$ 127
$ 3
5.62 %
$ 63
$ 2
6.49 %
Loans and leases (1)
47,565
1,364
5.78 %
37,663
1,115
5.96 %
Taxable securities
10,135
208
4.09 %
7,815
155
3.97 %
Non-taxable securities (2)
1,236
29
4.57 %
808
16
3.91 %
Temporary investments and interest-bearing cash
1,490
27
3.67 %
1,457
32
4.46 %
Total interest-earning assets (1), (2)
60,553
$ 1,631
5.42 %
47,806
$ 1,320
5.56 %
Goodwill and other intangible assets
2,156
1,487
Other assets
3,213
2,210
Total assets
$ 65,922
$ 51,503
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits
$ 10,892
$ 88
1.63 %
$ 8,426
$ 95
2.27 %
Money market deposits
16,753
175
2.11 %
11,694
141
2.43 %
Savings deposits
2,428
2
0.13 %
2,319
1
0.12 %
Time deposits
5,806
92
3.19 %
6,131
120
3.93 %
Total interest-bearing deposits
35,879
357
2.00 %
28,570
357
2.52 %
Repurchase agreements and federal funds purchased
175
2
1.76 %
201
2
1.94 %
Borrowings
3,563
69
3.93 %
3,048
71
4.67 %
Junior and other subordinated debentures
433
15
7.05 %
433
17
7.99 %
Total interest-bearing liabilities
40,050
$ 443
2.23 %
32,252
$ 447
2.79 %
Non-interest-bearing deposits
17,339
13,180
Other liabilities
844
819
Total liabilities
58,233
46,251
Common equity
7,689
5,252
Total liabilities and shareholders' equity
$ 65,922
$ 51,503
NET INTEREST INCOME (2)
$ 1,188
$ 873
NET INTEREST SPREAD (2)
3.19 %
2.77 %
NET INTEREST INCOME TO EARNING ASSETS OR NET
INTEREST MARGIN (1), (2)
3.94 %
3.67 %
(1)
Non-accrual loans and leases are included in the average balance.
(2)
Tax-exempt income was adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $5 million for the year ended June 30, 2026, as compared to $2 million for the same period in 2025.
Columbia Banking System, Inc.
Residential Mortgage Banking Activity
(Unaudited)
Quarter Ended
%
($ in millions)
Jun 30,
2026
Mar 31,
2026
Dec 31,
2025
Sep 30,
2025
Jun 30,
2025
Seq.
Quarter
Year over
Year
Residential mortgage banking revenue:
Origination and sale
$ 6
$ 5
$ 5
$ 5
$ 5
20 %
20 %
Servicing
5
6
6
5
6
(17) %
(17) %
Change in fair value of MSR asset:
Changes due to collection/realization of
expected cash flows over time
(3)
(3)
(3)
(3)
(3)
— %
— %
Changes due to valuation inputs or
assumptions
1
6
(1)
—
(2)
(83) %
nm
MSR hedge (loss) gain
(2)
(2)
—
—
2
— %
(200) %
Total
$ 7
$ 12
$ 7
$ 7
$ 8
(42) %
(13) %
Closed loan volume for sale
$ 195
$ 171
$ 176
$ 166
$ 164
14 %
19 %
Gain on sale margin
3.08 %
2.92 %
2.84 %
3.01 %
2.77 %
0.16
0.31
Residential mortgage servicing rights:
Balance, beginning of period
$ 105
$ 99
$ 101
$ 103
$ 106
6 %
(1) %
Additions for new MSR capitalized
2
3
2
1
2
(33) %
— %
Change in fair value of MSR asset:
Changes due to collection/realization of
expected cash flows over time
(3)
(3)
(3)
(3)
(3)
— %
— %
Changes due to valuation inputs or
assumptions
1
6
(1)
—
(2)
(83) %
nm
Balance, end of period
$ 105
$ 105
$ 99
$ 101
$ 103
— %
2 %
Residential mortgage loans serviced for others
$ 7,734
$ 7,812
$ 7,755
$ 7,797
$ 7,852
(1) %
(2) %
MSR as % of serviced portfolio
1.36 %
1.34 %
1.28 %
1.30 %
1.31 %
0.02
0.05
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
Columbia Banking System, Inc.
Residential Mortgage Banking Activity
(Unaudited)
Six Months Ended
% Change
($ in millions)
Jun 30, 2026
Jun 30, 2025
Year over
Year
Residential mortgage banking revenue:
Origination and sale
$ 11
$ 9
22 %
Servicing
11
12
(8) %
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time
(6)
(6)
0 %
Changes due to valuation inputs or assumptions
7
(3)
nm
MSR hedge (loss) gain
(4)
5
(180) %
Total
$ 19
$ 17
12 %
Closed loan volume for sale
$ 366
$ 300
22 %
Gain on sale margin
3.01 %
2.98 %
0.03
Residential mortgage servicing rights:
Balance, beginning of period
$ 99
$ 108
(8) %
Additions for new MSR capitalized
5
4
25 %
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time
(6)
(6)
0 %
Changes due to valuation inputs or assumptions
7
(3)
nm
Balance, end of period
$ 105
$ 103
2 %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles in the United States of America ("GAAP"), this press release contains certain non-GAAP financial measures. The Company believes presenting certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends, and our financial position. We utilize these measures for internal planning and forecasting purposes, and operating pre-provision net revenue and operating return on tangible common equity are also used as part of our incentive compensation program for our executive officers. We, as well as securities analysts, investors, and other interested parties, also use these measures to compare peer company operating performance. We believe that our presentation and discussion, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting our business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitution for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation
Tangible Capital, as adjusted
(Unaudited)
Quarter Ended
% Change
($ in millions, except per-share data)
Jun 30, 2026
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Seq.
Quarter
Year
over
Year
Total shareholders' equity
a
$ 7,552
$ 7,664
$ 7,840
$ 7,790
$ 5,342
(1) %
41 %
Less: Goodwill
1,482
1,482
1,482
1,481
1,029
— %
44 %
Less: Other intangible assets, net
633
671
712
754
430
(6) %
47 %
Tangible common shareholders' equity
b
$ 5,437
$ 5,511
$ 5,646
$ 5,555
$ 3,883
(1) %
40 %
Total assets
c
$ 65,380
$ 66,027
$ 66,832
$ 67,496
$ 51,901
(1) %
26 %
Less: Goodwill
1,482
1,482
1,482
1,481
1,029
— %
44 %
Less: Other intangible assets, net
633
671
712
754
430
(6) %
47 %
Tangible assets
d
$ 63,265
$ 63,874
$ 64,638
$ 65,261
$ 50,442
(1) %
25 %
Common shares outstanding at period end (in
thousands)
e
282,817
289,530
295,422
299,147
210,213
(2) %
35 %
Total shareholders' equity to total assets ratio
a / c
11.55 %
11.61 %
11.73 %
11.54 %
10.29 %
(0.06)
1.26
Tangible common equity to tangible assets ratio
b / d
8.59 %
8.63 %
8.73 %
8.51 %
7.70 %
(0.04)
0.89
Book value per common share
a / e
$ 26.70
$ 26.47
$ 26.54
$ 26.04
$ 25.41
1 %
5 %
Tangible book value per common share
b / e
$ 19.22
$ 19.03
$ 19.11
$ 18.57
$ 18.47
1 %
4 %
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Income Statements, as adjusted
(Unaudited)
Quarter Ended
% Change
($ in millions)
Jun 30, 2026
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Seq.
Quarter
Year
over
Year
Non-Interest Income Adjustments
(Loss) gain on investment securities, net
$ (1)
$ —
$ 2
$ 2
$ —
nm
nm
Gain (loss) on swap derivatives
—
—
1
(1)
(1)
nm
nm
(Loss) gain on loans held for investment, at
fair value
(1)
(2)
—
4
—
(50) %
nm
Change in fair value of MSR due to valuation
inputs or assumptions
1
6
(1)
—
(2)
(83) %
nm
MSR hedge (loss) gain
(2)
(2)
—
—
2
— %
(200) %
Total non-interest income adjustments
a
$ (3)
$ 2
$ 2
$ 5
$ (1)
(250) %
200 %
Non-Interest Expense Adjustments
Merger and restructuring expense
$ 9
$ 24
$ 39
$ 87
$ 8
(63) %
13 %
Exit and disposal costs
—
1
1
—
—
(100) %
nm
FDIC special assessment
—
—
(5)
(1)
—
nm
nm
Legal settlement and other non-operating
expense
—
—
4
—
—
nm
nm
Total non-interest expense adjustments
b
$ 9
$ 25
$ 39
$ 86
$ 8
(64) %
13 %
Net interest income
c
$ 589
$ 594
$ 627
$ 505
$ 446
(1) %
32 %
Non-interest income (GAAP)
d
$ 88
$ 83
$ 90
$ 77
$ 65
6 %
35 %
Less: Non-interest income adjustments
a
3
(2)
(2)
(5)
1
nm
200 %
Operating non-interest income (non-GAAP)
e
$ 91
$ 81
$ 88
$ 72
$ 66
12 %
38 %
Revenue (GAAP)
f=c+d
$ 677
$ 677
$ 717
$ 582
$ 511
— %
32 %
Operating revenue (non-GAAP)
g=c+e
$ 680
$ 675
$ 715
$ 577
$ 512
1 %
33 %
Non-interest expense (GAAP)
h
$ 375
$ 394
$ 412
$ 393
$ 278
(5) %
35 %
Less: Non-interest expense adjustments
b
(9)
(25)
(39)
(86)
(8)
(64) %
13 %
Operating non-interest expense (non-GAAP)
i
$ 366
$ 369
$ 373
$ 307
$ 270
(1) %
36 %
Net income (GAAP)
j
$ 208
$ 192
$ 215
$ 96
$ 152
8 %
37 %
Provision for income taxes
67
63
67
23
51
6 %
31 %
Income before provision for income taxes
275
255
282
119
203
8 %
35 %
Provision for credit losses
27
28
23
70
30
(4) %
(10) %
Pre-provision net revenue (PPNR) (non-
GAAP)
k
302
283
305
189
233
7 %
30 %
Less: Non-interest income adjustments
a
3
(2)
(2)
(5)
1
nm
200 %
Add: Non-interest expense adjustments
b
9
25
39
86
8
(64) %
13 %
Operating PPNR (non-GAAP)
l
$ 314
$ 306
$ 342
$ 270
$ 242
3 %
30 %
Net income (GAAP)
j
$ 208
$ 192
$ 215
$ 96
$ 152
8 %
37 %
Acquisition-related provision expense
—
—
—
70
—
nm
nm
Less: Non-interest income adjustments
a
3
(2)
(2)
(5)
1
nm
200 %
Add: Non-interest expense adjustments
b
9
25
39
86
8
(64) %
13 %
Tax effect of adjustments
(3)
(6)
(9)
(43)
(1)
(50) %
200 %
Operating net income (non-GAAP)
m
$ 217
$ 209
$ 243
$ 204
$ 160
4 %
36 %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Average Balances, Earnings Per Share, and Performance Metrics, as adjusted
(Unaudited)
Quarter Ended
% Change
($ in millions, shares in thousands)
Jun 30, 2026
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Seq.
Quarter
Year
over
Year
Average assets
n
$ 65,632
$ 66,215
$ 67,114
$ 56,823
$ 51,552
(1) %
27 %
Less: Average goodwill and other intangible
assets, net
2,136
2,175
2,217
1,719
1,472
(2) %
45 %
Average tangible assets
o
$ 63,496
$ 64,040
$ 64,897
$ 55,104
$ 50,080
(1) %
27 %
Average common shareholders' equity
p
$ 7,594
$ 7,786
$ 7,814
$ 6,157
$ 5,287
(2) %
44 %
Less: Average goodwill and other intangible
assets, net
2,136
2,175
2,217
1,719
1,472
(2) %
45 %
Average tangible common equity
q
$ 5,458
$ 5,611
$ 5,597
$ 4,438
$ 3,815
(3) %
43 %
Weighted average basic shares outstanding
(in thousands)
r
285,558
290,933
295,376
237,838
209,125
(2) %
37 %
Weighted average diluted shares
outstanding (in thousands)
s
286,472
292,160
296,760
238,925
209,975
(2) %
36 %
Select Per-Share & Performance Metrics
Earnings per share - basic
j / r
$ 0.73
$ 0.66
$ 0.72
$ 0.40
$ 0.73
11 %
— %
Earnings per share - diluted
j / s
$ 0.73
$ 0.66
$ 0.72
$ 0.40
$ 0.73
11 %
— %
Efficiency ratio (1)
h / f
55.15 %
58.03 %
57.30 %
67.29 %
54.29 %
(2.88)
0.86
Non-interest expense to average assets
h / n
2.29 %
2.41 %
2.44 %
2.74 %
2.16 %
(0.12)
0.13
Return on average assets
j / n
1.27 %
1.18 %
1.27 %
0.67 %
1.19 %
0.09
0.08
Return on average tangible assets
j / o
1.31 %
1.22 %
1.31 %
0.69 %
1.22 %
0.09
0.09
PPNR return on average assets
k / n
1.85 %
1.73 %
1.80 %
1.32 %
1.81 %
0.12
0.04
Return on average common equity
j / p
10.99 %
10.00 %
10.92 %
6.19 %
11.56 %
0.99
(0.57)
Return on average tangible common equity
j / q
15.29 %
13.88 %
15.24 %
8.58 %
16.03 %
1.41
(0.74)
Operating Per-Share & Performance Metrics
Operating earnings per share - basic
m / r
$ 0.76
$ 0.72
$ 0.82
$ 0.86
$ 0.77
6 %
(1) %
Operating earnings per share - diluted
m / s
$ 0.76
$ 0.72
$ 0.82
$ 0.85
$ 0.76
6 %
— %
Operating efficiency ratio, as adjusted (1)
u / y
52.92 %
53.68 %
51.39 %
52.32 %
51.79 %
(0.76)
1.13
Operating non-interest expense to average assets
i / n
2.24 %
2.26 %
2.20 %
2.14 %
2.10 %
(0.02)
0.14
Operating return on average assets
m / n
1.33 %
1.28 %
1.44 %
1.42 %
1.25 %
0.05
0.08
Operating return on average tangible assets
m / o
1.37 %
1.32 %
1.49 %
1.47 %
1.28 %
0.05
0.09
Operating PPNR return on average assets
l / n
1.92 %
1.87 %
2.02 %
1.89 %
1.88 %
0.05
0.04
Operating return on average common equity
m / p
11.46 %
10.89 %
12.34 %
13.15 %
12.16 %
0.57
(0.70)
Operating return on average tangible common equity
m / q
15.95 %
15.11 %
17.22 %
18.24 %
16.85 %
0.84
(0.90)
(1) Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Operating Efficiency Ratio, as adjusted
(Unaudited)
Quarter Ended
% Change
($ in millions)
Jun 30, 2026
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Seq.
Quarter
Year
over
Year
Non-interest expense (GAAP)
h
$ 375
$ 394
$ 412
$ 393
$ 278
(5) %
35 %
Less: Non-interest expense adjustments
b
(9)
(25)
(39)
(86)
(8)
(64) %
13 %
Operating non-interest expense (non-GAAP)
i
366
369
373
307
270
(1) %
36 %
Less: B&O taxes
t
(3)
(4)
(3)
(3)
(3)
(25) %
— %
Operating non-interest expense, excluding
B&O taxes (non-GAAP)
u
$ 363
$ 365
$ 370
$ 304
$ 267
(1) %
36 %
Net interest income (tax equivalent) (1)
v
$ 592
$ 596
$ 629
$ 507
$ 447
(1) %
32 %
Non-interest income (GAAP)
d
88
83
90
77
65
6 %
35 %
Add: BOLI tax equivalent adjustment (1)
w
3
3
3
2
2
— %
50 %
Total Revenue, excluding BOLI tax equivalent
adjustments (tax equivalent)
x
683
682
722
586
514
— %
33 %
Less: Non-interest income adjustments
a
3
(2)
(2)
(5)
1
nm
200 %
Total Adjusted Operating Revenue,
excluding BOLI tax equivalent adjustments
(tax equivalent) (non-GAAP)
y
$ 686
$ 680
$ 720
$ 581
$ 515
1 %
33 %
Efficiency ratio (1)
h / f
55.15 %
58.03 %
57.30 %
67.29 %
54.29 %
(2.88)
0.86
Operating efficiency ratio, as adjusted (non-
GAAP) (1)
u / y
52.92 %
53.68 %
51.39 %
52.32 %
51.79 %
(0.76)
1.13
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
(1) Tax-exempt income was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Income Statements, as adjusted
(Unaudited)
Six Months Ended
% Change
($ in millions)
Jun 30, 2026
Jun 30, 2025
Year over Year
Non-Interest Income Adjustments
(Loss) gain on investment securities, net
$ (1)
$ 2
(150) %
Loss on swap derivatives
—
(2)
nm
(Loss) gain on loans held for investment, at fair value
(3)
7
(143) %
Change in fair value of MSR due to valuation inputs or assumptions
7
(3)
nm
MSR hedge (loss) gain
(4)
5
(180) %
Total non-interest income adjustments
a
$ (1)
$ 9
(111) %
Non-Interest Expense Adjustments
Merger and restructuring expense
$ 33
$ 23
43 %
Exit and disposal costs
1
1
— %
Legal settlement and other non-operating expense
—
55
(100) %
Total non-interest expense adjustments
b
$ 34
$ 79
(57) %
Net interest income
c
$ 1,183
$ 871
36 %
Non-interest income (GAAP)
d
$ 171
$ 131
31 %
Less: Non-interest income adjustments
a
1
(9)
nm
Operating non-interest income (non-GAAP)
e
$ 172
$ 122
41 %
Revenue (GAAP)
f=c+d
$ 1,354
$ 1,002
35 %
Operating revenue (non-GAAP)
g=c+e
$ 1,355
$ 993
36 %
Non-interest expense (GAAP)
h
$ 769
$ 618
24 %
Less: Non-interest expense adjustments
b
(34)
(79)
(57) %
Operating non-interest expense (non-GAAP)
i
$ 735
$ 539
36 %
Net income (GAAP)
j
$ 400
$ 239
67 %
Provision for income taxes
130
88
48 %
Income before provision for income taxes
530
327
62 %
Provision for credit losses
55
57
(4) %
Pre-provision net revenue (PPNR) (non-GAAP)
k
585
384
52 %
Less: Non-interest income adjustments
a
1
(9)
nm
Add: Non-interest expense adjustments
b
34
79
(57) %
Operating PPNR (non-GAAP)
l
$ 620
$ 454
37 %
Net income (GAAP)
j
$ 400
$ 239
67 %
Less: Non-interest income adjustments
a
1
(9)
nm
Add: Non-interest expense adjustments
b
34
79
(57) %
Tax effect of adjustments
(9)
(9)
— %
Operating net income (non-GAAP)
m
$ 426
$ 300
42 %
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Average Balances, Earnings Per Share, and Performance Metrics, as adjusted
(Unaudited)
Six Months Ended
% Change
($ in millions, shares in thousands)
Jun 30, 2026
Jun 30, 2025
Year over Year
Average assets
n
$ 65,922
$ 51,503
28 %
Less: Average goodwill and other intangible assets, net
2,156
1,487
45 %
Average tangible assets
o
$ 63,766
$ 50,016
27 %
Average common shareholders' equity
p
$ 7,689
$ 5,252
46 %
Less: Average goodwill and other intangible assets, net
2,156
1,487
45 %
Average tangible common equity
q
$ 5,533
$ 3,765
47 %
Weighted average basic shares outstanding
r
288,130
208,964
38 %
Weighted average diluted shares outstanding
s
289,212
209,965
38 %
Select Per-Share & Performance Metrics
Earnings per share - basic
j / r
$ 1.39
$ 1.14
22 %
Earnings per share - diluted
j / s
$ 1.38
$ 1.14
21 %
Efficiency ratio (1)
h / f
56.59 %
61.54 %
(4.95)
Non-interest expense to average assets
h/n
2.35 %
2.42 %
(0.07)
Return on average assets
j / n
1.22 %
0.94 %
0.28
Return on average tangible assets
j / o
1.26 %
0.96 %
0.30
PPNR return on average assets
k/n
1.79 %
1.50 %
0.29
Return on average common equity
j / p
10.49 %
9.18 %
1.31
Return on average tangible common equity
j / q
14.58 %
12.80 %
1.78
Operating Per-Share & Performance Metrics
Operating earnings per share - basic
m / r
$ 1.48
$ 1.44
3 %
Operating earnings per share - diluted
m / s
$ 1.47
$ 1.43
3 %
Operating efficiency ratio, as adjusted (1)
u / y
53.29 %
53.40 %
(0.11)
Operating non-interest expense to average assets
i/n
2.25 %
2.11 %
0.14
Operating return on average assets
m / n
1.30 %
1.17 %
0.13
Operating return on average tangible assets
m / o
1.35 %
1.21 %
0.14
Operating PPNR return on average assets
l / n
1.90 %
1.78 %
0.12
Operating return on average common equity
m / p
11.17 %
11.52 %
(0.35)
Operating return on average tangible common equity
m / q
15.53 %
16.07 %
(0.54)
(1) Tax-exempt interest was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
Operating Efficiency Ratio, as adjusted
(Unaudited)
Six Months Ended
% change
($ in millions)
Jun 30, 2026
Jun 30, 2025
Year over Year
Non-interest expense (GAAP)
h
$ 769
$ 618
24 %
Less: Non-interest expense adjustments
b
(34)
(79)
(57) %
Operating non-interest expense (non-GAAP)
i
735
539
36 %
Less: B&O taxes
t
(7)
(6)
17 %
Operating non-interest expense, excluding B&O taxes (non-GAAP)
u
$ 728
$ 533
37 %
Net interest income (tax equivalent) (1)
v
$ 1,188
$ 873
36 %
Non-interest income (GAAP)
d
171
131
31 %
Add: BOLI tax equivalent adjustment (1)
w
6
3
100 %
Total Revenue, excluding BOLI tax equivalent adjustments (tax equivalent)
x
1,365
1,007
36 %
Less: Non-interest income adjustments
a
1
(9)
nm
Total Adjusted Operating Revenue, excluding BOLI tax equivalent adjustments
(tax equivalent) (non-GAAP)
y
$ 1,366
$ 998
37 %
Efficiency ratio (1)
h /f
56.59 %
61.54 %
(4.95)
Operating efficiency ratio, as adjusted (non-GAAP) (1)
u / y
53.29 %
53.40 %
(0.11)
nm = Percentage changes greater than +/-500% are considered not meaningful and are presented as "nm."
(1) Tax-exempt income was adjusted to a taxable equivalent basis using a 21% tax rate and added to stated revenue for this calculation.
SOURCE Columbia Banking System, Inc.
