Track market-moving stories before they get noisy

Emily Nicolle_ _takes a look at how crypto and prediction markets are becoming increasingly intertwined.

Addictive cycle
While Bitcoin appears to have fallen into an autumnal slumber, another corner of the speculative trading arena is thriving. Prediction-market volumes are soaring to new heights, and even with token prices rangebound, crypto’s playing its own role in the bounce.

Trading on crypto-tied event contracts hit a record last week, reaching $2.7 billion in weekly notional trading volume on Kalshi and Polymarket, according to user-compiled data on Dune Analytics. Leading the charge are so-called up/down contracts, which allow traders to bet on whether the price of Bitcoin or another asset will be higher or lower at the end of various time increments, from five minutes to the end of the day.

These markets are essentially a coin-flip, and traders have described them as highly addictive. The speed at which they conclude allows users to get locked into a cycle: start the clock, watch the chart, pick a side, win or lose and then do it all over again. Kalshi’s 15-minute Bitcoin contracts can attract more than $1 million in trading volume each time, while armies of trading bots can be deployed to harvest potential gains just seconds before the timer runs out.

“Prediction markets make crypto trading easier,” said Agnese Aggie Rozite, founder of prediction markets-focused events and education firm 51 Alpha. “For people already in crypto, it’s a natural next step. And because prediction markets run 24/7 like crypto does, the two fit together perfectly.”

There are longer-dated bets on offer too. A Kalshi contract on where Bitcoin will end the year has recorded more than $42 million in volume as of Thursday, while Polymarket’s “What price will Bitcoin hit in 2026?” has around $78 million. As a result, crypto is the second-largest category on both platforms — after sports, of course.

In perspective, these figures pale in comparison to the trillions of dollars recorded annually in spot cryptocurrency trading and on perpetual futures venues. But prediction markets are a rare bright spot for digital finance, where company valuations continue to double and investors are clamoring for their own slice of the pie. That’s not going unnoticed by crypto’s elite.

Digital-asset exchanges are keen to get in on the action, either by partnering with another platform that can provide the contracts or by seeking a license in the US to offer the bets themselves. Several exchanges — Coinbase Global Inc., Crypto.com, Gemini Space Station Inc. and Kraken to name a few — already have the required authorization, while others like Blockchain.com have recently applied for the same.

Some of the crypto volumes we’re seeing stem from a crossover between the two worlds. Coinbase’s prediction markets offering is currently powered by Kalshi, for example, with its website showing millions of dollars in trading volume on crypto-tied bets. Robinhood similarly uses many Kalshi markets, though it’s also slowly introducing contracts offered by others, including Crypto.com-spinoff OG.com and Rothera, a derivatives exchange it bought with Susquehanna International Group last year.

This poses an intriguing convergence of interests. Pure-play prediction markets venues like Kalshi are increasingly focused on drumming up demand for non-sports categories and an expansion into futures markets, with sports itself hanging in the balance. Dozens of states have taken legal action claiming that sports contracts are unregistered gambling products, while the Commodity Futures Trading Commission is defending its turf as Kalshi’s regulator. With a potential Supreme Court intervention looming and a breadwinner on the line, crypto volume is more valuable than ever.

At the same time, we’ve written before about how crypto exchanges’ business models are in need of a similar diversification. Spot volumes on centralized platforms on Wednesday were around $33 billion, per DefiLlama data — a far cry from the $70-100 billion days recorded regularly in January and February.

Crypto-tied prediction markets, of course, are far from the only appeal in entering the race. But if a Supreme Court decision on sports markets doesn’t end in the industry’s favor, how many crypto exchanges will still consider prediction markets to be a business opportunity worth pursuing?

Charting it out
Bloomberg
Bitcoin’s retreat toward $81,000 has pushed it toward its 50-day moving average line, a widely watched gauge of near-term breadth. “This return to the 50-day moving average means the bulls cannot celebrate a quick victory,” said Alex Kuptsikevich, chief market analyst at FxPro.

Counting it out

US-listed spot Bitcoin ETFs notched $1.1 billion in net inflows this week, recovering from $909.6 million in outflows over the previous two weeks.

Hearing them out
What we’re reading (and writing)

Trump and Crypto Firm Sued for Profiting From Foreign Government
Crypto Rule Finalized by OCC in Digital Asset Industry Win
Kalshi to Allow Futures Bets With Bitcoin-Backed Loans
Italy Targets Crypto Money-Laundering Ring Across Europe
Robinhood to Launch Retail Investing Platform in Middle East From Dubai
Crypto Megadonors Up Ohio Spending to $55 Million (Politico)
China Seeks 61,800 Bitcoin Tied to $5.7 Billion Fraud (CoinDesk)

What we’re watching on Bloomberg TV
Bloomberg’s Katherine Schwartz joins Scarlet Fu and James Seyffart on “Bloomberg Crypto.” Western Union and MoneyGram are adopting crypto technology to defend their businesses and deepen customer ties. Their money transfer time has gone from three days to as short as four minutes.

More from Bloomberg

Markets Daily for what’s moving in stocks, bonds, FX and commodities
Banking Monitor for staying on top of the global banking industry with emerging trends, winners and losers and market opportunities.
CFO Briefing for Nina Trentmann’s weekly newsletter on what finance leaders need to know
Going Private for coverage of private markets and the forces moving capital away from the public eye
Money Stuff for Bloomberg Opinion’s Matt Levine’s newsletter on all things Wall Street and finance

Explore all Bloomberg newsletters.

A shareholder from one of the world’s biggest digital asset companies has sued U.S. President Donald Trump for alleged crypto corruption. 

The lawsuit, filed on Thursday by shareholder and former Circle employee J. Benjamin Greenberg, alleges that a member of the United Arab Emirates ruling family agreed to pay half a billion dollars into the Trump-backed World Liberty Financial business — in direct violation of the Constitution. 

Circle is the fintech company behind the stablecoin, USDC. Regulators in the U.S. are fast pushing ahead with pro-crypto rules despite lawmakers last month blocking landmark digital asset legislation, which President Trump backed. 

A number of lawmakers didn’t back the draft legislation — the Clarity Act — because they said that the Trump family had illicitly cashed in on crypto ventures. 

“The corruption at issue is not subtle, and it is not hidden,” the lawsuit alleges. “Since returning to office,  President Donald J. Trump and his family have built a cryptocurrency business and invited foreign states to route money to him by paying into it. Foreign money has answered.”

The lawsuit goes on to allege that an investment fund created by the government of Abu Dhabi also gave the president $2 billion via World Liberty Financial’s USD1 stablecoin product. 

World Liberty Financial is a decentralized finance project co-founded by the president and his sons.

President Trump stopped being involved in the project after taking office in 2025. 

Thursday’s lawsuit adds that the president allegedly gave the Emirati leadership access to advanced artificial intelligence chips and pardoned a convicted felon in turn for the crypto investment. It references a February Wall Street Journal article that reported the deal. 

“Although the President has dressed his corrupt arrangements in the language of new technology — tokens and stablecoins, holding companies and reserve yields — that vocabulary must not obscure what this is: the oldest form of public corruption, a public official taking money from a foreign power,” the lawsuit further says. 

It alleges that the president has “corruptly” profited from $2 billion via the deals. 

President Trump, World Liberty, and U.S. Middle East Special Envoy Steve Witkoff are named as the defendants in the lawsuit. 

The president campaigned on a ticket to help the crypto industry and received major financial backing from the space but some Washington lawmakers have criticized the way the Trump family has profited from digital asset ventures.

Trump and the White House have always denied any conflicts of interest. The president in August, ahead of the crypto Clarity Act vote, said that Democrats criticizing his family crypto ventures had made money from stock trading. 

Mathew Di Salvo

Mathew is a reporter who's covered the space since 2019, reporting on everything from Salvadoran president Nayib Bukele's Bitcoin bet to crypto exchange FTX's bankruptcy.

XRP’s 365-day Market Value to Realized Value (MVRV) has dropped to 0.92, marking its lowest level in over a year and placing most recent buyers firmly in negative territory. According to data from Santiment Intelligence, Dogecoin (DOGE) is the only other major altcoin with a similar pattern, showing a near-term MVRV score of 0.74. These subdued readings indicate minimal profit-taking incentive, as the majority of holders are currently experiencing unrealized losses.

XRP approaches critical demand zoneThe latest market behavior suggests a low-risk demand area has formed around XRP’s present support levels. Such depressed MVRV ratios typically highlight zones where selling pressure is tapering off and may identify price areas favorable for accumulation. Technical analysts often view ultra-low MVRV scores as signs of capitulation, signaling that sellers are exhausted and buyers could soon step in.

When MVRV is elevated, however, new buyers take on additional risk, as recent entrants are more likely to hold unrealized gains, fueling possible sell-offs. In comparison, BTC, ETH, and LINK reveal neutral MVRV readings ranging from 0.97 to 1.04, which places their holders near break-even and reflects scant evidence of extreme greed or panic in those markets.

It is important to note that a low MVRV score does not guarantee a price rebound. The situation remains contingent on increased activity from both institutional ‘whale’ investors and retail participants buying at local bottoms. Without robust inflows, the technical setup alone may not trigger sustained upward momentum.

Technical chart and derivatives market insightsXRP’s short-term outlook is shaped by technical signals on its price chart. The currency’s mid-tier Bollinger Band currently sits at $1.3822, providing a reference for potential bullish confirmation if prices push higher. Reaching this zone could set up a rally toward the upper Bollinger Band near $1.5255. On the downside, the lower band at $1.2418 highlights a key leveraged support level.

The derivatives market adds further context, with recent data revealing a 26% surge in trading volume. However, most liquidations have targeted long positions, and short-sellers outnumber bulls with a long-to-short ratio of 0.8345. Despite this, the funding rate on open interest (OI) has turned positive, indicating that traders holding short positions are paying a premium to maintain those bets as the price has shown upward movement.

Following a round of long position liquidations, open interest slipped slightly but remains strong, with total value approaching $3 billion. This matches aggregate spot and futures trading volumes, underscoring ongoing demand for XRP despite recent volatility and uneven sentiment in the broader cryptocurrency space.

XRP’s latest MVRV readings reveal that most recent buyers are still underwater, suggesting a diminished incentive for profit-taking at current levels and positioning XRP among the major altcoins with the lowest realized returns.

Market context and investor strategiesAcross multiple time frames, larger digital asset investors continue to show a selling bias, which may weigh on short-term price action. Nonetheless, yearly MVRV scores can be useful to monitor, as they often reveal market dynamics and sentiment shifts that traders might overlook or misinterpret as simple weakness.

In a market where a single Fed decision or a sudden altcoin listing can change everything in seconds, monitoring indicators such as MVRV, Bollinger Bands, and open interest has grown in importance. Smart traders are now utilizing privacy-first tools like CryptoAppsy to consolidate everything. Without even the hassle of creating an account, you get real-time charts, smart price alerts, coin-specific news, and critical macro data all on one screen. By bringing these resources together, investors hope to navigate shifting market conditions more efficiently and avoid unnecessary losses stemming from fragmented information.

Flare outlined its XRP DeFi strategy on Korean TV at Korea Blockchain Week, detailing how FXRP works, how collateral protects users, and its Korean partnerships.

Flare used an appearance on South Korean television to pitch its approach to bringing XRP into decentralised finance (DeFi). Speaking on Korea Economic TV's Crypto Labs at Korea Blockchain Week, @FlareNetworks APAC lead Kyle Kim (@Banktheworld) described Flare as a blockchain for data.

How FXRP worksKim said Flare checks outside information, such as prices or transactions on other chains, and makes it available to smart contracts. Holders of $XRP can convert their tokens into FXRP on Flare to lend, borrow against, or earn yield, and can swap back whenever they choose.

FXRP is issued through Flare's FAssets system. FXRP was the first live deployment of the system, which turns tokens that lack smart contract support, such as XRP, into overcollateralised assets that can interact with DeFi protocols. At launch, Flare's chief product officer Filip Koprivec told The Block that FXRP is designed to be non-custodial and over-collateralised, with onchain, protocol-level verification rather than reliance on a single custodian.

Kim said approved operators hold the XRP behind FXRP. Each must lock up collateral worth more than the XRP it holds, which is meant to protect users if something goes wrong. DefiLlama's research describes these operators as agents, independent operators who post collateral worth more than the XRP they back, partly in stablecoins and partly in FLR. If the collateral's value falls below the required level, the agent's position can be liquidated.

Growing usage and Korean partnershipsDemand for the token has built since launch. A DefiLlama report published on October 21 counts about 129 million of the 145 million FXRP in circulation deployed across protocols, close to 90% of supply. The same report notes the base is still small: 145 million FXRP equals roughly 0.23% of circulating XRP. Lending is the biggest use. Most of the lending demand comes from holders who use FXRP as collateral and borrow against it while keeping their XRP.

In Korea, Flare is working with hardware wallet maker D'CENT. In May, D'CENT's maker IoTrust announced a three-week campaign with the Flare network , and said D'CENT is an official partner of Flare Smart Accounts , which removes the need for users to buy extra gas tokens.

Flare is also running a pilot finance product with weather data firm K-Weather (Kweather). The two companies signed a letter of intent to pilot the integration of meteorological data onchain. The data will be delivered through Flare's Time Series Oracle and could support products such as parametric climate insurance. CoinDesk's Omkar Godbole cautioned that the initiative is still very early, and a letter of intent is not a working product.

The appearance shows Flare targeting the Korean market with a dual message: XRP holders can put idle tokens to work, and data-driven products can extend beyond price feeds.

Sources:

DefiLlama Research: How Flare uses data to expand what capital can doCrypto Briefing: Kweather taps Flare to develop weather finance productsGlobeNewswire via Manila Times: D'CENT launches Flare campaign

On October 22, 2026, ChainSecurity said the Glamsterdam hard fork on Ethereum’s Hoodi testnet had been delayed after its researchers identified security impacts in existing contracts. The firm said it had found 13 real-world examples and was conducting responsible disclosure with the affected projects. Its announcement asked teams to check their contracts while the Ethereum Foundation assessed the extent of the impact.

The problem affects contracts that catch a failed external call and keep executing. Under the gas changes ChainSecurity examined, a failure handler can finish where it previously would have run out of gas and reverted. A caller can deliberately supply too little gas for an operation while leaving enough for the surrounding contract to record a permanent failure. An operation that should have remained retryable can then lose its recovery path.

ChainSecurity’s technical disclosure examines EIP-8037 and EIP-8038 using specifications reviewed on October 13. Its gas examples describe proposed execution behavior, not balances read from affected contracts. The announcement names neither the projects under disclosure nor their contract addresses.

The failure handler gets another source of gas
Contracts defend against insufficient-gas griefing in several ways. Some check before an external call that they can forward a chosen gas budget. Others examine the gas left after a failed call and revert when too little remains. Others rely on the failure handler itself running out of gas. That rolls back the surrounding operation without an explicit check.

Checks after a call and handlers that rely on running out of gas depend on how much gas the call forwards, consumes and returns. Under EIP-150, a call can forward approximately 63/64 of its available gas. When the immediate target exhausts that allocation, the caller retains only a small share. A check can reject that remainder, or an expensive storage write can force the caller to revert.

The state-gas reservoir gives the caller another source of funding. ChainSecurity describes a separate pool that travels with calls in full, while the forwarding limit applies to execution gas. Solidity’s gasleft() reports only the execution balance. A contract with a low reading can still have reservoir funding for state creation. If the target reverts or runs out of gas, its reservoir returns to its call-entry value and remains available to the caller.

In the report’s example, around 15,000 execution gas can cover a cold fresh-slot write and a short continuation when the reservoir pays the state-creation charge. Under Osaka, the corresponding write costs 22,100 gas. A handler that previously could not record a failure may now commit it. Because the reservoir is forwarded in full, an outer wrapper can combine a funded reservoir with a limited execution budget.

Clearing storage can refill the execution balance
A contract can also allocate a persistent storage slot, call another contract, catch a failure and clear that slot before continuing. Under Osaka, clearing storage allocated earlier in the transaction produces a refund subject to a cap. The refund settles at the end of the transaction, so it cannot pay for the next instruction.

Under the Glamsterdam rules examined in the disclosure, undoing state creation triggers an immediate refill. The refill first restores execution gas up to the outstanding state-creation charges paid from that balance. Any remainder enters the reservoir. Clearing a slot can restore up to 97,920 execution gas, enough to change whether the rest of the failure handler completes.

For this to happen, the slot must have been zero at the start of the transaction. The frame must have outstanding state-creation charges funded from execution gas, either from its own work or successful subcalls. It also needs enough execution gas to clear the slot: the SSTORE stipend check still requires more than 2,300 execution gas, regardless of reservoir funding.

A gas check performed after the clear can see a replenished balance even though the target ran out of gas. ChainSecurity says a check that rejects the failure before the clear is unaffected by that refill. Its review instructions ask teams to locate storage refills relative to checks, since the order determines whether the check sees the restored gas.

Gas can also return through an intermediary. In ChainSecurity’s example, a defending contract calls an intermediary, which creates state and calls a target. The target runs out of gas. The intermediary then propagates that failure with REVERT.

Under the reviewed changes, reverting restores the intermediary’s state-gas accounting. It credits outstanding execution-funded state-creation charges back to the intermediary’s execution balance. That restored gas can return to the defending contract and lift the remainder above a post-call check’s threshold. It can also fund a failure handler that previously would have reverted.

The intermediary must retain enough gas to execute REVERT. If it runs out of gas itself or halts exceptionally, its resulting execution balance is consumed and no execution gas returns. Tests need to distinguish those paths, even when both ultimately report that a subcall failed.

What contract teams need to review
Pre-call checks avoid inferring the cause of failure from returned gas, but their budgets need revalidation too. A check can guarantee delivery of the requested allocation even when that allocation no longer covers the target’s work. ChainSecurity calls for bounds covering every permitted execution path under the new schedule, including cases where the reservoir cannot contribute. Forwarding overhead also needs rechecking.

The review starts with external calls that let execution continue after failure. Teams should trace the target’s complete path, including proxies, and the caller’s instructions before it commits a failure response. Tests should force a subcall failure and compare Osaka and Glamsterdam using the same relevant pre-state and explicit gas assumptions. The outcomes to inspect are disabled retries, removed claims and incorrect recorded results.

Where possible, ChainSecurity recommends propagating call failures so the entire operation reverts. Where execution must continue, it recommends preserving a recovery path instead of making an irreversible decision from remaining gas alone. Responsible disclosure continues with the affected projects unnamed. The firm’s announcement gives no replacement date for the Hoodi fork.

The Starknet community has strongly supported exploring a transition from the Ethereum-based second-layer structure to an independent first-layer blockchain. In a seven-day preliminary vote that concluded today, over 93.5% of the votes cast were in favor of the proposal.

According to information shared by StarkWare, more than 2,800 wallets participated in the vote. The company stated that it did not participate in the voting in order to avoid influencing the community’s decision with its own votes.

The primary reason for the change in focus is post-quantum security. The team argues that even if Starknet makes progress in its own computational structure, it will remain dependent on the underlying network due to Ethereum bridge and data accessibility connections.

StarkWare CEO Eli Ben-Sasson said they aim to release a first draft of the technical document resulting from the research to the public in November.

However, the vote does not mean that the separation from Ethereum is final. A genuine transition proposal will also need to be prepared and resubmitted for community approval. According to the Starknet Foundation, whichever path is chosen, STRK will remain the native token, no new tokens will be issued, and Ethereum bridges will remain open.

*This is not investment advice.

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Cardano founder Charles Hoskinson revealed on October 18, 2026, that he is personally developing a new programming language intended for the Cardano blockchain.

In a post on the social platform X, Hoskinson stated that the project is underway and that he is collaborating with another developer.

He characterized the language as the first of its kind, designed to support intents alongside proof-carrying data through the use of Groth16 proofs.

The collaborator identified by the handle @rvcas is Lucas Rosa, a software engineer associated with Input Output Global.

Rosa is recognized as a co-creator and maintainer of Aiken, an existing smart-contract language used on Cardano.

Public materials for Aiken list him among its authors, and his personal site notes a role connected to tooling for the Midnight project.

Cardano already offers developers two primary options for writing smart contracts:

Plutus, which draws from the Haskell functional programming tradition that underpins much of the network’s original design, and Aiken, a more recent alternative aimed at improving accessibility.

I'm actually personally developing a programming language for Cardano. It's the first of its kind, enabling intents and PCD via Groth16 proofs. @rvcas is building it with me

— Charles Hoskinson (@IOHK_Charles) October 18, 2026

Hoskinson’s announcement positions the new language as an additional tool rather than a replacement whose precise relationship to these existing options has been clarified.

At a conceptual level, the features Hoskinson highlighted address common challenges in blockchain application design.

An intent allows a user or application to declare a desired outcome—such as completing a token exchange only if a certain price condition is met—while leaving the precise sequence of intermediate steps to be determined by the surrounding system or other parties.

Proof-carrying data refers to a technique in which computational results are accompanied by cryptographic evidence that every preceding step satisfied the required rules.

A verifier can then confirm the entire history by examining a single compact proof instead of re-executing the full computation.

Groth16, the specific zero-knowledge proof system referenced, is a well-established construction published in 2016.

It generates proofs that consist of only three group elements, keeping them small enough for efficient verification on-chain.

Because the proofs are zero-knowledge, they can demonstrate that certain conditions were met without exposing the private inputs that went into the calculation.

Combined, these elements could enable applications to coordinate complex multi-step interactions and transfer verified information between services while limiting the data that must be revealed publicly.

Hoskinson has not released a name for the language, published any code, shared technical specifications, or indicated a development or launch timeline.

The announcement itself appeared as a reply in a broader discussion about Cardano’s characteristics as a decentralized foundation for applications.

Separate recent comments from Hoskinson have referenced ongoing conceptual work related to Midnight, a privacy-oriented companion chain, though no direct technical linkage between that effort and the new language has been detailed.

The disclosure adds another layer to Cardano’s evolving developer tooling at a time when the network continues to introduce features such as enhanced programmable token standards. Whether the language ultimately streamlines the creation of applications that rely on verifiable outcomes and privacy-preserving checks will depend on the concrete design choices that have yet to be made public.

BOSTON, Oct. 22, 2026 (GLOBE NEWSWIRE) -- The Boston Beer Company, Inc. (NYSE: SAM), today reported financial results for the third quarter ended September 26, 2026. Key results were:

Third Quarter 2026 Summary:

Depletions decreased 5% and shipments decreased 4.9%Net revenue of $520.1 million decreased 3.2%Gross margin of 51.7% up 90 basis points year over yearGAAP diluted income per share of $4.21, which includes non-recurring litigation expenses of $0.16 per shareNon-GAAP diluted earnings per share of $4.37 Year-to-date 2026 Summary:

Depletions decreased 5% and shipments decreased 5.4%Net revenue of $1.522 billion decreased 3.6%Gross margin of 50.5% up 80 basis points year over yearGAAP diluted loss per share of $4.87, which includes non-recurring litigation expenses of $14.51 per shareNon-GAAP diluted earnings per share of $9.64 Capital Structure

Ended the third quarter with $308.1 million in cash and no debtRepurchased $79.5 million in shares from December 28, 2025 to October 16, 2026 “The demand environment remains challenging, and we are prioritizing actions within our control to strengthen our business and improve market share trends,” said Chairman, Founder and CEO Jim Koch. “We are encouraged by the strong performance of Sun Cruiser and remain focused on marketplace execution, while our continued emphasis on productivity and strong cash generation provide a solid foundation to invest behind our brands and drive long-term value.”

“We delivered strong gross margin expansion and are raising the low end of our gross margin and earnings guidance, while managing through a dynamic consumer demand and input cost environment,” said Interim CFO and Chief Accounting Officer Matt Murphy. “Our results reflect continued progress from our multi-year supply chain transformation, disciplined investment, and an ongoing focus on productivity across the organization.”

Details of the results were as follows:

Third Quarter 2026 (13 weeks ended September 26, 2026) Summary of Results

Depletions for the third quarter decreased 5% compared to the third quarter of the prior year. Shipment volume for the quarter was approximately 1.8 million barrels, a 4.9% decrease compared to the third quarter of the prior year, driven by declines in Twisted Tea, Truly, and Samuel Adams that were partially offset by growth in the Sun Cruiser and Angry Orchard brands.

The Company believes distributor inventories as of September 26, 2026 were at appropriate levels and averaged approximately four weeks on hand which is lower than the four and a half weeks on hand at the end of September 2025.

Revenue for the quarter decreased 3.2% due to decreases in volume that were only partially offset by favorable product mix and pricing.

Gross margin of 51.7% increased from the 50.8% margin realized in the third quarter of 2025, or an increase of 90 basis points year over year. Gross margin primarily benefited from favorable product mix, price increases, procurement savings and improved brewery efficiencies, which were partially offset by inflationary commodity and tariff costs.

The third quarter gross margin of 51.7% includes $1.6 million of shortfall fees and non-cash expense of third-party production pre-payments in total, which negatively impacted gross margin by approximately 31 basis points on an absolute basis.

Advertising, promotional and selling expenses in the third quarter were flat year over year. This reflected $9.5 million in higher freight costs, with higher freight rates more than offsetting the benefit of lower shipment volumes, and a $9.0 million reduction in advertising spend.

General and administrative expenses decreased by $2.1 million compared to the third quarter of 2025, primarily driven by lower salary and benefit costs. Included in the current-quarter expense was $0.4 million of legal fees related to the previously disclosed supplier dispute litigation.

Litigation expenses of $1.8 million, related to the supplier dispute, represents post-judgment interest expense. Post-judgment interest expense through the appeals process will be applied to the combined pre-tax total of the judgment and pre-judgment interest amounts of $191.0 million at the statutory rate, which is estimated to be 3.79%. The Company continues to deny that it breached the terms of the contract with the supplier and intends to pursue all available post-trial motions and appellate remedies. The Company cannot estimate when or if damages or interest will ultimately be paid or when this matter will ultimately be resolved.

In the third quarter of 2026, the combined pre-tax expense related to the supplier dispute litigation of $2.2 million consists of legal expenses of $0.4 million, recorded in general and administrative expenses, and litigation expenses of $1.8 million. The after-tax impact reduced earnings per share by $0.16.

Impairment of brewery assets of $2.9 million increased by $1.5 million compared to the third quarter of 2025, due to increased write-offs of equipment at Company-owned breweries.

The Company’s effective tax rate for the third quarter was 26.7%. Excluding the impact of the supplier dispute litigation, the effective tax rate remained 26.7% compared to 28.1% in the prior year.  This decrease in rate is due primarily to the impact of non-deductible stock compensation.

Year-to-date 2026 (39 weeks ended September 26, 2026) Summary of Results

Depletions year-to-date decreased 5% from the prior year. Shipment volume year-to-date was approximately 5.4 million barrels, a 5.4% decrease from the prior year, driven by declines in Twisted Tea, Truly, and Samuel Adams, partially offset by growth in the Sun Cruiser and Angry Orchard brands.

Revenue year-to-date decreased 3.6% due to decreases in volume, partially offset by favorable product mix and pricing.

Gross margin year-to-date of 50.5% increased from the 49.7% margin realized in year-to-date 2025, or an increase of 80 basis points year over year. Gross margin primarily benefited from price increases, favorable product mix, procurement savings and improved brewery efficiencies, which were partially offset by increased inflationary commodity and tariff costs.

The year-to-date gross margin of 50.5% includes $4.8 million of shortfall fees and non-cash expense of third-party production pre-payments in total, which negatively impacted gross margin by approximately 32 basis points on an absolute basis.

Advertising, promotional and selling expenses year-to-date increased $29.2 million or 6.3% from year-to-date 2025, resulting from higher freight costs of $20.6 million, as freight rate increases more than offset the benefit of lower shipment volumes and increased brand local marketing investments of $8.5 million.

General and administrative expenses year-to-date increased $5.4 million or 3.9% from year-to-date 2025, primarily due to increased legal costs. This increase included $5.8 million of legal fees related to the previously disclosed supplier dispute litigation.

Litigation expense of $194.5 million, related to the supplier dispute, consists of the judgment of $175.5 million, pre-judgment interest expense of $15.5 million and post-judgment interest expense of $3.5 million.

The litigation expense of $194.5 million, combined with related legal expenses of $5.8 million, recorded in general and administrative expenses, have an after-tax negative impact on earnings per share of $14.51.

Impairment of brewery assets of $3.1 million decreased by $3.3 million from year-to-date 2025, due to decreased write-offs of equipment at third party and Company-owned breweries.

The Company’s effective tax rate year-to-date was a benefit of 12.4%. Excluding the impact of the supplier dispute litigation, the effective tax rate was a provision of 29.9% compared to a provision of 28.8% in the prior year.  This increase in rate is due primarily to the increased negative impact of non-deductible stock compensation.

The Company expects that its September 26, 2026 cash balance of $308.1 million, together with its projected future operating cash flows and the unused balance on its $150 million line of credit, will be sufficient to fund future cash requirements, including the potential litigation-related payments.

During the 39-week period ended September 26, 2026 and the period from September 27, 2026 through October 16, 2026, the Company repurchased shares of its Class A Common Stock in the amounts of $73.5 million and $6.0 million, respectively, for a total of $79.5 million year to date. As of October 16, 2026, the Company had approximately $149 million remaining on the $1.6 billion share buyback expenditure limit set by the Board of Directors.

Depletions Estimate

Year-to-date depletions through the 42-week period ended October 17, 2026 are estimated by the Company to have decreased approximately 5% from the comparable period in 2025.

Full-Year 2026 Projections

The Company has updated its financial guidance for the full year 2026. The Company’s actual 2026 results could vary significantly from the current projection and are highly sensitive to changes in volume projections, supply chain performance, inflationary and commodity impacts and tariff policy. Tariff cost projections below, which are net of a $3 million refund received in the third quarter, are consistent with tariffs currently being charged by the Company’s suppliers and that the Company currently expects to continue for the remainder of 2026.

Full Year 2026Current  GuidancePrevious  GuidanceDepletions and Shipments Percentage ChangeDown mid-single digitsDown low-single digits to mid-single digitsPrice Increases1% to 2%1% to 2%Gross Margin (including Tariffs)49% to 50%48.5% to 50%Tariff Costs ($ million)$18 to $22$20 to $30Advertising, Promotion, and Selling Expense Year Over Year Change ($ million)Approximately Flat$0 to $20GAAP Tax Rate (Benefit)/ Provision(11.0%) to (12.0%)(11.0%) to (12.0%)Non GAAP Tax Rate Provision29% to 30%29% to 30%GAAP EPS (Income/ (Loss))($5.76) to ($4.26)($6.23) to ($4.23)Non-recurring Litigation Expenses impact per share($14.76)($14.73)Non GAAP EPS$9.00 to $10.50$8.50 to $10.50Capital Spending ($ million)$55 to $70$60 to $80    Underlying the Company's current 2026 projections are the following full-year estimates and targets:

The Company is monitoring changes in commodity, fuel and transportation costs driven by macroeconomic factors. Freight costs remain elevated due to higher transportation rates, labor constraints within the transportation industry and higher fuel costs, while energy costs also impact aluminum input costs, given the energy intensive nature of aluminum production. The Company's current estimates of these cost increases are reflected in its guidance.Supply chain improvements implemented during 2025 resulted in more consistent levels of distributor inventory in terms of weeks on hand. The impact of these changes on prior-year shipment flows, together with the expected timing of shipments to meet customer demand in 2026, continues to influence the quarterly phasing of shipments. Accordingly, we currently expect modest shipment growth in the fourth quarter. The Company’s business is seasonal, with the fourth quarter typically a lower volume quarter and the lowest gross margin rate of the year. At the midpoint of the full year guidance range, the Company expects year-over-year gross margin rate improvement to be the most meaningful in the fourth quarter as shortfall fees are expected to be lower in 2026 versus 2025 and the Company typically expenses the majority of its shortfall fees in the fourth quarter. During full year 2026, the Company estimates shortfall fees and non-cash expense of third-party production pre-payments in total will negatively impact gross margins by 40 to 60 basis points.The advertising, selling and promotional expense projection does not include any changes in freight costs for the shipment of products to the Company’s distributors. Advertising investment levels are expected to decline year over year in the fourth quarter, reflecting lower planned full-year investment and a comparison against high levels of investment in the fourth quarter of 2025 that included production costs associated with preparation for 2026 programming. Full-Year 2027 Projections

The Company is planning to provide full year 2027 financial guidance during its fourth quarter earnings call in February 2027.

Use of Non-GAAP Measures

Non-GAAP EPS and Non-GAAP Tax Rate are not defined terms under U.S. generally accepted accounting principles (“GAAP”). Non-GAAP EPS, or Non-GAAP earnings per diluted share, excludes from projected GAAP EPS the impact of the non-recurring litigation relating to a supplier dispute of $0.16 per diluted share in expense in the third quarter of 2026 and $14.51 per diluted share year-to-date 2026 impact. Non-GAAP Tax Rate excludes from the projected GAAP Tax Rate the tax impact of the non-recurring litigation expense.  These non-GAAP measures should not be considered in isolation or as a substitute for diluted earnings per share prepared in accordance with GAAP, and may not be comparable to calculations of similarly titled measures by other companies. Management uses these non-GAAP financial measures to make operating and strategic decisions and to evaluate the Company’s underlying business performance. Management believes these forward-looking non-GAAP measures provide meaningful and useful information to investors and analysts regarding the Company’s outlook for its ongoing financial and business performance or trends and facilitates period to period comparisons of its forecasted financial performance.

Forward-Looking Statements

Statements made in this press release that state the Company’s or management’s intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements.  It is important to note that the Company’s actual results could differ materially from those projected in such forward-looking statements.  Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company’s SEC filings, including, but not limited to, the Company’s report on Form 10-K for the year ended December 27, 2025 and subsequent reports filed by the Company with the SEC on Forms 10-Q and 8-K.  Copies of these documents are available from the SEC and may be found on the Company’s website, www.bostonbeer.com. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements.

About the Company

The Boston Beer Company, Inc. (NYSE: SAM) began in 1984 brewing Samuel Adams beer and has since grown to become one of the largest and most respected craft brewers in the United States. We consistently offer the highest-quality products to our drinkers, and we apply what we’ve learned from making great-tasting craft beer to making great-tasting and innovative “beyond beer” products. Boston Beer Company has pioneered not only craft beer but also hard cider, hard seltzer and hard tea. Our core brands include household names like Angry Orchard Hard Cider, Dogfish Head, Sun Cruiser, Truly Hard Seltzer, Twisted Tea Hard Iced Tea, and Samuel Adams. We have taprooms and hospitality locations in Delaware, Massachusetts, New York and Ohio. For more information, please visit our website at www.bostonbeer.com, which includes links to our respective brand websites.

Thursday, October 22, 2026

  THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except per share data)   (unaudited)   Thirteen weeks ended  Thirty-nine weeks ended   September 26, 2026  September 27, 2025  September 26, 2026  September 27, 2025 Revenue $555,458  $571,476  $1,624,792  $1,678,258 Less excise taxes  35,357   33,982   102,423   98,948 Net revenue  520,101   537,494   1,522,369   1,579,310 Cost of goods sold  251,023   264,377   752,960   794,412 Gross profit  269,078   273,117   769,409   784,898 Operating expenses:            Advertising, promotional, and selling expenses  165,182   164,739   491,138   461,987 General and administrative expenses  42,855   44,913   144,035   138,615 Impairment of brewery assets  2,888   1,416   3,124   6,401 Litigation expense  1,824   —   194,471   — Total operating expenses  212,749   211,068   832,768   607,003 Operating income (loss)  56,329   62,049   (63,359)  177,895 Other income, net:            Interest income, net  2,714   2,696   6,604   7,320 Other expense, net  (138)  (595)  (950)  (1,168)Total other income, net  2,576   2,101   5,654   6,152 Income (loss) before income tax provision (benefit)  58,905   64,150   (57,705)  184,047 Income tax provision (benefit)  15,739   17,995   (7,176)  53,047 Net income (loss) $43,166  $46,155  $(50,529) $131,000 Net income (loss) per common share – basic $4.21  $4.25  $(4.87) $11.83 Net income (loss) per common share – diluted $4.21  $4.25  $(4.87) $11.82 Weighted-average number of common shares – basic  10,254   10,855   10,369   11,073 Weighted-average number of common shares – diluted  10,224   10,830   10,369   11,050 Net income (loss) $43,166  $46,155  $(50,529) $131,000 Other comprehensive income (loss):            Foreign currency translation adjustment  27   (161)  (207)  233 Total other comprehensive income (loss)  27   (161)  (207)  233 Comprehensive income (loss) $43,193  $45,994  $(50,736) $131,233                     THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data)   (unaudited)      September 26, 2026  December 27, 2025 Assets      Current Assets:      Cash and cash equivalents $308,072  $223,378 Accounts receivable, net  83,032   57,094 Inventories, net  98,078   92,532 Prepaid expenses and other current assets  24,668   20,316 Income tax receivable  2,096   24,259 Total current assets  515,946   417,579 Property, plant, and equipment, net  542,645   578,125 Operating right-of-use assets  23,000   30,229 Goodwill  112,529   112,529 Intangible assets, net  13,483   14,753 Third-party production prepayments  5,324   7,099 Note receivable  7,826   11,218 Other assets  18,635   22,063 Total assets $1,239,388  $1,193,595 Liabilities and Stockholders' Equity      Current Liabilities:      Accounts payable $107,640  $94,975 Accrued expenses and other current liabilities  146,382   144,797 Accrued litigation expenses  194,471   - Current operating lease liabilities  7,871   12,762 Total current liabilities  456,364   252,534 Deferred income taxes, net  21,524   64,785 Non-current operating lease liabilities  21,667   25,111 Other liabilities  4,103   4,885 Total liabilities  503,658   347,315 Commitments and Contingencies      Stockholders' Equity:      Class A Common Stock, $0.01 par value; 22,700,000 shares authorized; 8,086,764 and 8,408,458 issued and outstanding as of September 26, 2026 and December 27, 2025, respectively  81   84 Class B Common Stock, $0.01 par value; 4,200,000 shares authorized; 2,068,000 issued and outstanding as of September 26, 2026 and December 27, 2025  21   21 Additional paid-in capital  713,081   698,811 Accumulated other comprehensive loss  (587)  (380)Retained earnings  23,134   147,744 Total stockholders' equity  735,730   846,280 Total liabilities and stockholders' equity $1,239,388  $1,193,595             THE BOSTON BEER COMPANY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)   (unaudited)   Thirty-nine weeks ended   September 26,
2026  September 27,
2025 Cash flows provided by operating activities:      Net (loss) income $(50,529) $131,000 Adjustments to reconcile net (loss) income to net cash provided by operating activities:      Depreciation and amortization  63,478   67,726 Impairment of brewery assets  3,124   6,401 Gain on sale of property, plant, and equipment  (88)  (47)Litigation expense  194,471   — Change in right-of-use assets  8,342   (5,654)Stock-based compensation expense  15,126   14,408 Deferred income taxes  (43,261)  (15,496)Other non-cash income  (374)  (32)Changes in operating assets and liabilities:      Accounts receivable  (25,961)  (22,866)Inventories  (6,585)  13,816 Prepaid expenses and other current assets  (4,502)  (3,329)Income tax receivable  22,163   4,925 Third-party production prepayments  1,775   6,058 Brewery-related assets and cloud computing  4,968   4,975 Other non-current assets  (498)  (1,148)Accounts payable  14,320   16,042 Accrued expenses and other current liabilities  7,916   8,205 Operating lease liabilities  (9,450)  4,958 Other non-current liabilities  (233)  276 Net cash provided by operating activities  194,202   230,218 Cash flows used in investing activities:      Purchases of property, plant, and equipment  (31,234)  (36,717)Proceeds from disposal of property, plant, and equipment  88   47 Net cash used in investing activities  (31,146)  (36,670)Cash flows used in financing activities:      Repurchases and retirement of Class A common stock  (75,338)  (152,423)Proceeds from exercise of stock options and sale of investment shares  1,495   1,242 Cash paid on finance leases  (1,092)  (1,288)Payment of tax withholding on stock-based payment awards and investment shares  (3,427)  (2,444)Net cash used in financing activities  (78,362)  (154,913)Change in cash and cash equivalents  84,694   38,635 Cash and cash equivalents at beginning of period  223,378   211,819 Cash and cash equivalents at end of period $308,072  $250,454        Copies of The Boston Beer Company's press releases, including quarterly financial results, are available at www.bostonbeer.com           Investor Relations Contact:Media Contact:Nora DohertyDave DeCecco(617) 368-5390(914) 261-6572[email protected][email protected]  

IonQ (IONQ -3.47%) is one of the most popular quantum computing pure plays for a reason. It has incredible technology, and its latest quantum computer model will launch early next year. This could kick-start more interest in quantum computing if it's successful, and a handful of preorders are already lined up.

This bodes well for the stock, but how much upside does it have? Could it make you a millionaire? Let's check the math.

Image source: The Motley Fool.

IonQ could deliver huge growth For any stock to be called a millionaire maker, I think its return threshold should be set at 100x, meaning it could transform a $10,000 investment into $1 million. That's a high bar to clear, but the quantum computing revolution could be huge.

There are at least nine different technological approaches to make the qubits that sit at the heart of a quantum computer, the most common of which involves using superconducting circuits.

That's not the one IonQ is pursuing. Instead, it's using trapped ion qubits; each one is made from a single charged atom, held in place by electromagnetic fields. This technology offers better accuracy than superconducting qubits, but it's slower. However, given that insufficient accuracy is one of the major problems with quantum computing, this approach makes sense. IonQ currently holds the world record for the most accurate quantum computing technology, and it is building its innovative 256-qubit system around it. IonQ is expected to launch that system in early 2027, and it could be a decent revenue driver, further inching the company toward becoming a self-sustaining business.

$31.16-$1.12 (-3.47%)

NYSE · As of 4:00 PM ET 10/22/26

By 2035, McKinsey & Company estimates that the quantum computing industry could grow to be worth up to $72 billion annually.

Let's assume the market reaches that lofty projection in 2035 and make the further assumption that IonQ captures 100% of it. If it grows to deliver an impressive 50% profit margin (in line with the margins being delivered by Nvidia, the current king of computing units), that would result in $36 billion in annual profits. If we apply an earnings multiple of 30 to that figure, we get a $1.08 trillion company.

Currently, IonQ has a market cap of about $11.7 billion. So if all the assumptions in that ambitious projection come true, that would mean just over a 90x return.

So even under that highly optimistic bull case, I don't think IonQ has what it takes to deliver a 100x return within a decade. However, I still think it could generate market-beating returns if its quantum computing technology pans out, and over the long term, that could help you build a million-dollar portfolio.

, /PRNewswire/ --

$220 million

$229 million

$0.78

$0.82

Net income

Operating net income1

Earnings per common share -
diluted

Operating earnings per
common share - diluted1

CEO Commentary

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

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

3Q26 HIGHLIGHTS (COMPARED TO 2Q26)

Net Interest
Income and
NIM

Net interest income increased by $26 million
from the prior quarter, due to higher income on
loans and investment securities and lower
funding costs.
Net interest margin was 4.11%, up 18 basis
points from the prior quarter, due to higher
yields on loans and investment securities and a
favorable funding mix shift, as growth in
customer deposits was used to pay down
wholesale funding sources.

Non-Interest
Income and
Expense

Non-interest income decreased by $8 million.
Excluding the impact of fair value and hedges,1
non-interest income decreased by $4 million,
due primarily to $3 million of death benefit
proceeds recorded during the second quarter
related to a single policy that did not recur in the
third quarter.
Non-interest expense decreased by $5 million,
due to lower merger expense.

Credit
Quality

Net charge-offs were 0.24% of average loans
and leases (annualized), compared to 0.25% for
the prior quarter.
Provision expense was $33 million, compared to
$27 million for the prior quarter.
Non-performing assets to total assets ratio was
0.39%, compared to 0.42% as of June 30, 2026.

Capital

Estimated total risk-based capital ratio of 13.8%
and estimated common equity tier 1 risk-based
capital ratio of 11.5%.
Declared a quarterly cash dividend of $0.37 per
common share on August 14, 2026, which was
paid September 14, 2026.
Repurchased $199 million of common stock,
completing our previously announced
repurchase plan.

Notable
Items

Our second customer deposit campaign of
2026, which began in June and ended in mid-
August, brought over $700 million in new
deposits to the bank.
Our Board of Directors authorized the
repurchase of up to $1.2 billion of common
stock under a new repurchase plan, which has
no expiration date.
3Q26 KEY FINANCIAL DATA

PERFORMANCE METRICS

3Q26

2Q26

3Q25

Return on average assets

1.34 %

1.27 %

0.67 %

Return on average common equity

11.78 %

10.99 %

6.19 %

Return on average tangible common equity1

16.43 %

15.29 %

8.58 %

Operating return on average assets1

1.40 %

1.33 %

1.42 %

Operating return on average common equity1

12.27 %

11.46 %

13.15 %

Operating return on average tangible common equity1

17.11 %

15.95 %

18.24 %

Net interest margin

4.11 %

3.93 %

3.84 %

Efficiency ratio

53.08 %

55.15 %

67.29 %

Operating efficiency ratio, as adjusted 1

51.34 %

52.92 %

52.32 %

INCOME STATEMENT

($ in millions, excl. per share data)

3Q26

2Q26

3Q25

Net interest income

$615

$589

$505

Provision for credit losses

$33

$27

$70

Non-interest income

$80

$88

$77

Non-interest expense

$370

$375

$393

Pre-provision net revenue1

$325

$302

$189

Operating pre-provision net revenue1

$337

$314

$270

Earnings per common share - diluted

$0.78

$0.73

$0.40

Operating earnings per common share - diluted1

$0.82

$0.76

$0.85

Dividends paid per share

$0.37

$0.37

$0.36

BALANCE SHEET

($ in millions, excl. per share data)

3Q26

2Q26

3Q25

Total assets

$65,135

$65,380

$67,496

Loans and leases

$46,915

$47,166

$48,462

Deposits

$52,740

$52,056

$55,771

Book value per common share

$25.62

$26.70

$26.04

Tangible book value per common share1

$18.10

$19.22

$18.57

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1

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

2

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

3

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

TABLE INDEX

Page

Consolidated Statements of Income

8

Consolidated Balance Sheets

9

Financial Highlights

11

Loan & Lease Portfolio Balances and Mix

12

Deposit Portfolio Balances and Mix

14

Credit Quality - Non-performing Assets

15

Credit Quality - Allowance for Credit Losses

16

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

18

Residential Mortgage Banking Activity

20

GAAP to Non-GAAP Reconciliation

22

Columbia Banking System, Inc.

Consolidated Statements of Income

(Unaudited)

Quarter Ended

% Change

($ in millions, shares in thousands)

Sep 30,
2026

Jun 30,
2026

Mar 31,
2026

Dec 31,
2025

Sep 30,
2025

Seq.

Quarter

Year
over
Year

Interest income:

Loans and leases

$       699

$       683

$       684

$       722

$       619

2 %

13 %

Interest and dividends on investments:

Taxable

105

98

103

102

89

7 %

18 %

Exempt from federal income tax

11

12

12

12

8

(8) %

38 %

Dividends

4

4

3

3

4

— %

— %

Temporary investments and interest bearing deposits

13

13

14

19

20

— %

(35) %

Total interest income

832

810

816

858

740

3 %

12 %

Interest expense:

Deposits

171

173

184

195

195

(1) %

(12) %

Securities sold under agreement to repurchase and
federal funds purchased

—

1

1

1

1

(100) %

(100) %

Borrowings

38

39

30

27

30

(3) %

27 %

Subordinated and junior subordinated debentures

8

8

7

8

9

— %

(11) %

Total interest expense

217

221

222

231

235

(2) %

(8) %

Net interest income

615

589

594

627

505

4 %

22 %

Provision for credit losses

33

27

28

23

70

22 %

(53) %

Non-interest income:

Service charges on deposits

24

23

20

24

21

4 %

14 %

Card-based fees

17

17

15

16

15

— %

13 %

Financial services and trust revenue

15

15

15

15

9

— %

67 %

Residential mortgage banking revenue, net

9

7

12

7

7

29 %

29 %

(Loss) gain on investment securities, net

(8)

(1)

—

2

2

nm

(500) %

Gain on loan and lease sales, net

—

—

1

1

—

nm

nm

(Loss) gain on loans held for investment, at fair value

(3)

(1)

(2)

—

4

200 %

(175) %

BOLI income

9

9

9

9

6

— %

50 %

Other income

17

19

13

16

13

(11) %

31 %

Total non-interest income

80

88

83

90

77

(9) %

4 %

Non-interest expense:

Salaries and employee benefits

191

196

196

201

171

(3) %

12 %

Occupancy and equipment, net

63

65

66

67

54

(3) %

17 %

FDIC assessments

9

9

9

4

8

— %

13 %

Intangible amortization

38

38

41

42

31

— %

23 %

Merger and restructuring expense

2

9

24

39

87

(78) %

(98) %

Other expenses

67

58

58

59

42

16 %

60 %

Total non-interest expense

370

375

394

412

393

(1) %

(6) %

Income before provision for income taxes

292

275

255

282

119

6 %

145 %

Provision for income taxes

72

67

63

67

23

7 %

213 %

Net income

$       220

$       208

$       192

$       215

$         96

6 %

129 %

Weighted average basic shares outstanding (in thousands)

279,221

285,558

290,933

295,376

237,838

(2) %

17 %

Weighted average diluted shares outstanding (in thousands)

280,338

286,472

292,160

296,760

238,925

(2) %

17 %

Earnings per common share – basic

$       0.78

$       0.73

$       0.66

$       0.72

$       0.40

7 %

95 %

Earnings per common share – diluted

$       0.78

$       0.73

$       0.66

$       0.72

$       0.40

7 %

95 %

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

Columbia Banking System, Inc.

Consolidated Statements of Income

(Unaudited)

Nine Months Ended

% Change

($ in millions, shares in thousands)

Sep 30, 2026

Sep 30, 2025

Year over
Year

Interest income:

Loans and leases

$          2,066

$          1,736

19 %

Interest and dividends on investments:

Taxable

306

238

29 %

Exempt from federal income tax

35

22

59 %

Dividends

11

10

10 %

Temporary investments and interest bearing deposits

40

52

(23) %

Total interest income

2,458

2,058

19 %

Interest expense:

Deposits

528

552

(4) %

Securities sold under agreement to repurchase and federal funds purchased

2

3

(33) %

Borrowings

107

101

6 %

Subordinated and junior subordinated debentures

23

26

(12) %

Total interest expense

660

682

(3) %

Net interest income

1,798

1,376

31 %

Provision for credit losses

88

127

(31) %

Non-interest income:

Service charges on deposits

67

60

12 %

Card-based fees

49

42

17 %

Financial services and trust revenue

45

20

125 %

Residential mortgage banking revenue, net

28

24

17 %

(Loss) gain on investment securities, net

(9)

4

(325) %

Gain on loan and lease sales, net

1

—

nm

(Loss) gain on loans held for investment, at fair value

(6)

11

(155) %

BOLI income

27

16

69 %

Other income

49

31

58 %

Total non-interest income

251

208

21 %

Non-interest expense:

Salaries and employee benefits

583

471

24 %

Occupancy and equipment, net

194

149

30 %

FDIC assessments

27

24

13 %

Intangible amortization

117

85

38 %

Merger and restructuring expense

35

109

(68) %

Legal settlement

—

55

(100) %

Other expenses

183

118

55 %

Total non-interest expense

1,139

1,011

13 %

Income before provision for income taxes

822

446

84 %

Provision for income taxes

202

111

82 %

Net income

$            620

$            335

85 %

Weighted average basic shares outstanding (in thousands)

285,128

218,694

30 %

Weighted average diluted shares outstanding (in thousands)

286,246

219,712

30 %

Earnings per common share – basic

$           2.17

$           1.53

42 %

Earnings per common share – diluted

$           2.16

$           1.53

41 %

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

Columbia Banking System, Inc.

Consolidated Balance Sheets

(Unaudited)

% Change

($ in millions, shares in thousands)

Sep 30,
2026

Jun 30,
2026

Mar 31,
2026

Dec 31,
2025

Sep 30,
2025

Seq.

Quarter

Year
over
Year

Assets:

Cash and due from banks

$         572

$         648

$         577

$         511

$         535

(12) %

7 %

Interest-bearing cash and temporary investments

1,165

1,121

1,522

1,869

1,808

4 %

(36) %

Investment securities:

Equity and other, at fair value

128

126

124

113

112

2 %

14 %

Available for sale, at fair value

10,935

11,131

10,915

11,112

11,013

(2) %

(1) %

Held to maturity, at amortized cost

17

17

18

18

18

— %

(6) %

Loans held for sale

45

61

81

262

340

(26) %

(87) %

Loans and leases

46,915

47,166

47,697

47,776

48,462

(1) %

(3) %

Allowance for credit losses on loans and leases

(462)

(458)

(459)

(466)

(473)

1 %

(2) %

Net loans and leases

46,453

46,708

47,238

47,310

47,989

(1) %

(3) %

Restricted equity securities

164

207

168

159

119

(21) %

38 %

Premises and equipment, net

421

424

426

422

416

(1) %

1 %

Goodwill

1,482

1,482

1,482

1,482

1,481

— %

— %

Other intangible assets, net

595

633

671

712

754

(6) %

(21) %

Bank-owned life insurance

1,234

1,227

1,222

1,218

1,199

1 %

3 %

Other assets

1,924

1,595

1,583

1,644

1,712

21 %

12 %

Total assets

$      65,135

$      65,380

$      66,027

$      66,832

$      67,496

— %

(3) %

Liabilities:

 Deposits

Non-interest-bearing

$      17,507

$      17,218

$      17,635

$      17,419

$      17,810

2 %

(2) %

Interest-bearing

35,233

34,838

35,854

36,792

37,961

1 %

(7) %

  Total deposits

52,740

52,056

53,489

54,211

55,771

1 %

(5) %

Securities sold under agreements to repurchase

165

189

162

207

167

(13) %

(1) %

Borrowings

3,300

4,250

3,400

3,200

2,300

(22) %

43 %

Junior subordinated debentures, at fair value

353

339

333

338

331

4 %

7 %

Subordinated and junior subordinated debentures, at amortized cost

343

97

97

97

107

254 %

221 %

Other liabilities

1,155

897

882

939

1,030

29 %

12 %

Total liabilities

58,056

57,828

58,363

58,992

59,706

— %

(3) %

Shareholders' equity:

Common stock

7,511

7,702

7,896

8,099

8,189

(2) %

(8) %

Retained earnings (accumulated deficit)

276

160

59

(26)

(131)

73 %

nm

Accumulated other comprehensive loss

(708)

(310)

(291)

(233)

(268)

128 %

164 %

Total shareholders' equity

7,079

7,552

7,664

7,840

7,790

(6) %

(9) %

Total liabilities and shareholders' equity

$      65,135

$      65,380

$      66,027

$      66,832

$      67,496

— %

(3) %

Common shares outstanding at period end (in thousands)

276,330

282,817

289,530

295,422

299,147

(2) %

(8) %

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

Columbia Banking System, Inc.

Financial Highlights

(Unaudited)

Quarter Ended

% Change

Sep 30,
2026

Jun 30,
2026

Mar 31,
2026

Dec 31,
2025

Sep 30,
2025

Seq.
Quarter

Year
over
Year

Per Common Share Data:

Dividends

$   0.37

$   0.37

$   0.37

$   0.37

$   0.36

— %

3 %

Book value

$  25.62

$  26.70

$  26.47

$  26.54

$  26.04

(4) %

(2) %

Tangible book value (1)

$  18.10

$  19.22

$  19.03

$  19.11

$  18.57

(6) %

(3) %

Performance Ratios:

Efficiency ratio (2)

53.08 %

55.15 %

58.03 %

57.30 %

67.29 %

(2.07)

(14.21)

Non-interest expense to average assets (1)

2.25 %

2.29 %

2.41 %

2.44 %

2.74 %

(0.04)

(0.49)

Return on average assets ("ROAA")

1.34 %

1.27 %

1.18 %

1.27 %

0.67 %

0.07

0.67

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

1.98 %

1.85 %

1.73 %

1.80 %

1.32 %

0.13

0.66

Return on average common equity

11.78 %

10.99 %

10.00 %

10.92 %

6.19 %

0.79

5.59

Return on average tangible common equity (1)

16.43 %

15.29 %

13.88 %

15.24 %

8.58 %

1.14

7.85

Performance Ratios - Operating: (1)

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

51.34 %

52.92 %

53.68 %

51.39 %

52.32 %

(1.58)

(0.98)

Operating non-interest expense to average assets (1)

2.22 %

2.24 %

2.26 %

2.20 %

2.14 %

(0.02)

0.08

Operating ROAA (1)

1.40 %

1.33 %

1.28 %

1.44 %

1.42 %

0.07

(0.02)

Operating PPNR ROAA (1)

2.05 %

1.92 %

1.87 %

2.02 %

1.89 %

0.13

0.16

Operating return on average common equity (1)

12.27 %

11.46 %

10.89 %

12.34 %

13.15 %

0.81

(0.88)

Operating return on average tangible common equity (1)

17.11 %

15.95 %

15.11 %

17.22 %

18.24 %

1.16

(1.13)

Average Balance Sheet Yields, Rates, & Ratios:

Yield on loans and leases

5.90 %

5.77 %

5.78 %

5.92 %

5.96 %

0.13

(0.06)

Yield on earning assets (2)

5.55 %

5.40 %

5.44 %

5.55 %

5.62 %

0.15

(0.07)

Cost of interest bearing deposits

1.95 %

1.96 %

2.04 %

2.08 %

2.43 %

(0.01)

(0.48)

Cost of interest bearing liabilities

2.20 %

2.21 %

2.24 %

2.27 %

2.65 %

(0.01)

(0.45)

Cost of total deposits

1.29 %

1.32 %

1.39 %

1.40 %

1.66 %

(0.03)

(0.37)

Cost of total funding (3)

1.51 %

1.55 %

1.56 %

1.57 %

1.87 %

(0.04)

(0.36)

Net interest margin (2)

4.11 %

3.93 %

3.96 %

4.06 %

3.84 %

0.18

0.27

Average interest bearing cash / Average interest earning assets

2.23 %

2.33 %

2.59 %

3.12 %

3.41 %

(0.10)

(1.18)

Average loans and leases / Average interest earning assets

78.54 %

78.67 %

78.44 %

78.12 %

78.39 %

(0.13)

0.15

Average loans and leases / Average total deposits

89.38 %

90.19 %

88.58 %

87.34 %

88.39 %

(0.81)

0.99

Average non-interest bearing deposits / Average total deposits

33.47 %

32.90 %

32.26 %

32.45 %

31.41 %

0.57

2.06

Average total deposits / Average total funding (3)

92.42 %

91.88 %

93.58 %

94.52 %

93.47 %

0.54

(1.05)

Select Credit & Capital Ratios:

Non-performing loans and leases to total loans and leases

0.53 %

0.57 %

0.55 %

0.41 %

0.40 %

(0.04)

0.13

Non-performing assets to total assets

0.39 %

0.42 %

0.40 %

0.30 %

0.29 %

(0.03)

0.10

Allowance for credit losses to loans and leases

1.02 %

1.01 %

1.00 %

1.02 %

1.01 %

0.01

0.01

Total risk-based capital ratio (4)

13.8 %

13.5 %

13.5 %

13.6 %

13.4 %

0.30

0.40

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

11.5 %

11.7 %

11.7 %

11.8 %

11.6 %

(0.20)

(0.10)

(1)

See GAAP to Non-GAAP Reconciliation.

(2)

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

(3)

Total funding = total deposits + total borrowings.

(4)

Estimated holding company ratios.

Columbia Banking System, Inc.

Financial Highlights

(Unaudited)

Nine Months Ended

% Change

Sep 30, 2026

Sep 30, 2025

Year over Year

Per Common Share Data:

Dividends

$             1.11

$             1.08

2.78 %

Performance Ratios:

Efficiency ratio (2)

55.40 %

63.66 %

(8.26)

Non-interest expense to average assets (1)

2.32 %

2.54 %

(0.22)

Return on average assets

1.26 %

0.84 %

0.42

PPNR ROAA (1)

1.85 %

1.44 %

0.41

Return on average common equity

10.92 %

8.06 %

2.86

Return on average tangible common equity (1)

15.19 %

11.22 %

3.97

Performance Ratios - Operating: (1)

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

52.63 %

53.07 %

(0.44)

Operating non-interest expense to average assets (1)

2.24 %

2.12 %

0.12

Operating ROAA (1)

1.33 %

1.26 %

0.07

Operating PPNR ROAA (1)

1.95 %

1.81 %

0.14

Operating return on average common equity (1)

11.53 %

12.10 %

(0.57)

Operating return on average tangible common equity (1)

16.04 %

16.85 %

(0.81)

Average Balance Sheet Yields, Rates, & Ratios:

Yield on loans and leases

5.82 %

5.96 %

(0.14)

Yield on earning assets (2)

5.46 %

5.58 %

(0.12)

Cost of interest bearing deposits

1.99 %

2.49 %

(0.50)

Cost of interest bearing liabilities

2.22 %

2.74 %

(0.52)

Cost of total deposits

1.33 %

1.70 %

(0.37)

Cost of total funding (3)

1.54 %

1.94 %

(0.40)

Net interest margin (2)

4.00 %

3.73 %

0.27

Average interest bearing cash / Average interest earning assets

2.38 %

3.18 %

(0.80)

Average loans and leases / Average interest earning assets

78.55 %

78.64 %

(0.09)

Average loans and leases / Average total deposits

89.37 %

89.55 %

(0.18)

Average non-interest bearing deposits / Average total deposits

32.88 %

31.51 %

1.37

Average total deposits / Average total funding (3)

92.63 %

92.46 %

0.17

(1)

See GAAP to Non-GAAP Reconciliation.

(2)

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

(3)

Total funding = Total deposits + Total borrowings.

Columbia Banking System, Inc.

Loan & Lease Portfolio Balances and Mix

(Unaudited)

Sep 30, 2026

Jun 30, 2026

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

% Change

($ in millions)

Amount

Amount

Amount

Amount

Amount

Seq.
Quarter

Year
over
Year

Loans and leases:

Commercial real estate: (1)

Non-owner occupied term

$         7,338

$         7,584

$         8,113

$         8,206

$         8,444

(3) %

(13) %

Owner occupied term

7,219

7,405

7,258

7,314

7,361

(3) %

(2) %

Multifamily

9,937

10,122

10,173

10,281

10,377

(2) %

(4) %

Construction & development

1,642

1,529

1,670

1,707

2,071

7 %

(21) %

Residential development

361

369

373

362

367

(2) %

(2) %

Commercial:

Term

7,097

7,004

6,887

6,713

6,590

1 %

8 %

Lines of credit & other

4,055

3,794

3,804

3,643

3,582

7 %

13 %

Leases & equipment finance

1,618

1,617

1,619

1,599

1,614

— %

— %

Residential:

Mortgage

5,313

5,402

5,483

5,624

5,722

(2) %

(7) %

Home equity loans & lines

2,179

2,176

2,147

2,149

2,153

— %

1 %

   Consumer & other

156

164

170

178

181

(5) %

(14) %

Total loans and leases, net of deferred fees and costs

$       46,915

$       47,166

$       47,697

$       47,776

$       48,462

(1) %

(3) %

Loans and leases mix:

Commercial real estate: (1)

Non-owner occupied term

16 %

16 %

17 %

17 %

18 %

Owner occupied term

16 %

16 %

15 %

15 %

15 %

Multifamily

21 %

22 %

21 %

22 %

21 %

Construction & development

3 %

3 %

4 %

4 %

4 %

Residential development

1 %

1 %

1 %

1 %

1 %

Commercial:

Term

15 %

15 %

15 %

14 %

14 %

Lines of credit & other

9 %

8 %

8 %

8 %

7 %

Leases & equipment finance

3 %

3 %

3 %

3 %

3 %

Residential:

Mortgage

11 %

11 %

11 %

12 %

12 %

Home equity loans & lines

5 %

5 %

5 %

4 %

4 %

Consumer & other

— %

— %

— %

— %

1 %

Total

100 %

100 %

100 %

100 %

100 %

(1)

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

Columbia Banking System, Inc.

Deposit Portfolio Balances and Mix

(Unaudited)

Sep 30, 2026

Jun 30, 2026

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

% Change

($ in millions)

Amount

Amount

Amount

Amount

Amount

Seq.
Quarter

Year
over
Year

Deposits:

Demand, non-interest bearing

$       17,507

$       17,218

$       17,635

$       17,419

$       17,810

2 %

(2) %

Demand, interest bearing

11,616

11,093

10,860

10,763

11,675

5 %

(1) %

Money market

16,935

16,415

16,843

17,013

16,816

3 %

1 %

Savings

2,375

2,392

2,437

2,442

2,504

(1) %

(5) %

Time

4,307

4,938

5,714

6,574

6,966

(13) %

(38) %

Total

$       52,740

$       52,056

$       53,489

$       54,211

$       55,771

1 %

(5) %

Total core deposits (1)

$       50,644

$       49,488

$       50,245

$       50,174

$       51,535

2 %

(2) %

Deposit mix:

Demand, non-interest bearing

33 %

33 %

33 %

32 %

32 %

Demand, interest bearing

22 %

21 %

20 %

20 %

21 %

Money market

32 %

32 %

31 %

31 %

30 %

Savings

5 %

5 %

5 %

5 %

5 %

Time

8 %

9 %

11 %

12 %

12 %

Total

100 %

100 %

100 %

100 %

100 %

(1)

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

Columbia Banking System, Inc.

Credit Quality – Non-performing Assets

 (Unaudited)

Quarter Ended

% Change

($ in millions)

Sep 30, 2026

Jun 30, 2026

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Seq. Quarter

Year over Year

Non-performing assets: (1)

Loans and leases on non-accrual status:

Commercial real estate

$          84

$          96

$          91

$          50

$          53

(13) %

58 %

Commercial

73

84

96

66

67

(13) %

9 %

Total loans and leases on non-accrual status

157

180

187

116

120

(13) %

31 %

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

Commercial real estate

1

4

3

2

—

(75) %

nm

Commercial

16

4

2

8

5

300 %

220 %

Residential (2)

76

80

69

72

71

(5) %

7 %

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

93

88

74

82

76

6 %

22 %

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

250

268

261

198

196

(7) %

28 %

Other real estate owned

5

5

3

2

3

0 %

67 %

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

$        255

$        273

$        264

$        200

$        199

(7) %

28 %

Loans and leases past due 31-89 days

$          95

$        125

$        168

$          94

$          85

(24) %

12 %

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

0.20 %

0.27 %

0.35 %

0.20 %

0.18 %

(0.07)

0.02

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

0.53 %

0.57 %

0.55 %

0.41 %

0.40 %

(0.04)

0.13

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

0.39 %

0.42 %

0.40 %

0.30 %

0.29 %

(0.03)

0.10

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

0.33 %

0.38 %

0.39 %

0.24 %

0.25 %

(0.05)

0.08

nm

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

(1)

Non-accrual and 90+ days past due loans include government guarantees of $71 million, $78 million, $88 million, $79 million, and $70 million at September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025, and September 30, 2025, respectively.

(2)

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

Columbia Banking System, Inc.

Credit Quality – Allowance for Credit Losses

(Unaudited)

Quarter Ended

% Change

($ in millions)

Sep 30, 2026

Jun 30, 2026

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Seq. Quarter

Year over Year

Allowance for credit losses on loans and leases (ACLLL)

Balance, beginning of period

$         458

$         459

$         466

$         473

$         421

0 %

9 %

Initial ACL recorded for PCD loans acquired during the period

—

—

—

—

5

nm

(100) %

Provision for credit losses on loans and leases 

32

29

28

23

69

10 %

(54) %

Charge-offs

Commercial real estate

—

(1)

—

(8)

(3)

nm

nm

Commercial

(33)

(32)

(39)

(23)

(22)

3 %

50 %

Residential

—

—

—

(1)

—

nm

nm

Consumer & other

(3)

(2)

(1)

(1)

(2)

50 %

50 %

Total charge-offs

(36)

(35)

(40)

(33)

(27)

3 %

33 %

Recoveries

Commercial real estate

1

—

—

—

—

nm

nm

Commercial

7

4

4

3

4

75 %

75 %

Residential

—

—

—

—

—

nm

nm

Consumer & other

—

1

1

—

1

(100) %

(100) %

Total recoveries

8

5

5

3

5

60 %

60 %

Net charge-offs

Commercial real estate

1

(1)

—

(8)

(3)

nm

nm

Commercial

(26)

(28)

(35)

(20)

(18)

(7) %

44 %

Residential

—

—

—

(1)

—

nm

nm

Consumer & other

(3)

(1)

—

(1)

(1)

200 %

200 %

Total net charge-offs

(28)

(30)

(35)

(30)

(22)

(7) %

27 %

Balance, end of period

$         462

$         458

$         459

$         466

$         473

1 %

(2) %

Reserve for unfunded commitments

Balance, beginning of period

$           17

$           19

$           19

$           19

$           18

(11) %

(6) %

(Recapture) provision for credit losses on unfunded commitments

1

(2)

—

—

1

nm

0 %

Balance, end of period

18

17

19

19

19

6 %

(5) %

Total Allowance for credit losses (ACL)

$         480

$         475

$         478

$         485

$         492

1 %

(2) %

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

0.24 %

0.25 %

0.30 %

0.25 %

0.22 %

(0.01)

0.02

Recoveries to gross charge-offs

22.22 %

14.29 %

12.50 %

9.09 %

18.52 %

7.93

3.70

ACLLL to loans and leases

0.98 %

0.97 %

0.96 %

0.98 %

0.98 %

0.01

—

ACL to loans and leases

1.02 %

1.01 %

1.00 %

1.02 %

1.01 %

0.01

0.01

nm

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

Columbia Banking System, Inc.

Credit Quality – Allowance for Credit Losses

(Unaudited)

Nine Months Ended

% Change

($ in millions)

Sep 30, 2026

Sep 30, 2025

Year over Year

Allowance for credit losses on loans and leases (ACLLL)

Balance, beginning of period

$               466

$               425

10 %

Initial ACL recorded for PCD loans acquired during the period

—

5

(100) %

Provision for credit losses on loans and leases 

89

124

(28) %

Charge-offs

Commercial real estate

(1)

(3)

(67) %

Commercial

(104)

(88)

18 %

Residential

—

(1)

nm

Consumer & other

(6)

(4)

50 %

Total charge-offs

(111)

(96)

16 %

Recoveries

Commercial real estate

1

—

nm

Commercial

15

13

15 %

Residential

—

—

nm

Consumer & other

2

2

0 %

Total recoveries

18

15

20 %

Net charge-offs

Commercial real estate

—

(3)

nm

Commercial

(89)

(75)

19 %

Residential

—

(1)

nm

Consumer & other

(4)

(2)

100 %

Total net charge-offs

(93)

(81)

15 %

Balance, end of period

$               462

$               473

(2) %

Reserve for unfunded commitments

Balance, beginning of period

$                 19

$                 16

19 %

 (Recapture) provision for credit losses on unfunded commitments

(1)

3

(133) %

Balance, end of period

18

19

(5) %

Total Allowance for credit losses (ACL)

$               480

$               492

(2) %

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

0.26 %

0.28 %

(0.02)

Recoveries to gross charge-offs

16.22 %

15.63 %

0.59

nm

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

Columbia Banking System, Inc.

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

(Unaudited)

Quarter Ended

September 30, 2026

June 30, 2026

September 30, 2025

($ in millions)

Average Balance

Interest Income or Expense

Average Yields or Rates

Average Balance

Interest Income or Expense

Average Yields or Rates

Average Balance

Interest Income or Expense

Average Yields or Rates

INTEREST-EARNING ASSETS:

Loans held for sale

$              57

$           1

6.39 %

$              66

$         —

6.86 %

$              80

$           1

7.14 %

Loans and leases (1)

46,951

698

5.90 %

47,419

683

5.77 %

41,164

618

5.96 %

Taxable securities

10,251

109

4.27 %

10,173

102

3.97 %

8,523

93

4.35 %

Non-taxable securities (2)

1,188

13

4.75 %

1,219

15

4.63 %

950

10

4.26 %

Temporary investments and interest-bearing cash

1,333

13

3.74 %

1,402

13

3.71 %

1,793

20

4.40 %

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

59,780

$       834

5.55 %

60,279

$       813

5.40 %

52,510

$       742

5.62 %

Goodwill and other intangible assets

2,096

2,136

1,719

Other assets

3,241

3,217

2,594

Total assets

$       65,117

$       65,632

$       56,823

INTEREST-BEARING LIABILITIES:

Interest-bearing demand deposits

$       11,373

$         48

1.70 %

$       11,002

$         45

1.65 %

$         9,630

$         53

2.17 %

Money market deposits

16,578

89

2.11 %

16,658

87

2.10 %

13,476

83

2.46 %

Savings deposits

2,392

1

0.16 %

2,413

1

0.14 %

2,358

1

0.16 %

Time deposits

4,605

33

2.89 %

5,205

40

3.03 %

6,481

58

3.57 %

Total interest-bearing deposits

34,948

171

1.95 %

35,278

173

1.96 %

31,945

195

2.43 %

Repurchase agreements and federal funds purchased

173

—

1.75 %

163

1

1.65 %

176

1

2.15 %

Borrowings

3,664

38

4.02 %

4,050

39

3.90 %

2,648

30

4.54 %

Subordinated and junior subordinated debentures

471

8

6.99 %

431

8

7.07 %

430

9

7.99 %

Total interest-bearing liabilities

39,256

$       217

2.20 %

39,922

$       221

2.21 %

35,199

$       235

2.65 %

Non-interest-bearing deposits

17,584

17,301

14,627

Other liabilities

870

815

840

Total liabilities

57,710

58,038

50,666

Common equity

7,407

7,594

6,157

Total liabilities and shareholders' equity

$       65,117

$       65,632

$       56,823

NET INTEREST INCOME (2)

$       617

$       592

$       507

NET INTEREST SPREAD (2)

3.35 %

3.19 %

2.97 %

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

4.11 %

3.93 %

3.84 %

(1)

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

(2)

Tax-exempt income was adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $2 million for the three months ended September 30, 2026, as compared to $3 million for the three months ended June 30, 2026 and $2 million for the three months ended September 30, 2025. 

Columbia Banking System, Inc.

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

(Unaudited)

Nine Months Ended

September 30, 2026

September 30, 2025

($ in millions)

Average Balance

Interest Income or Expense

Average Yields or Rates

Average Balance

Interest Income or Expense

Average Yields or Rates

INTEREST-EARNING ASSETS:

Loans held for sale

$               104

$               4

5.78 %

$              69

$               3

6.74 %

Loans and leases (1)

47,358

2,062

5.82 %

38,843

1,733

5.96 %

Taxable securities

10,174

317

4.15 %

8,053

248

4.11 %

Non-taxable securities (2)

1,220

42

4.63 %

856

26

4.04 %

Temporary investments and interest-bearing cash

1,437

40

3.69 %

1,570

52

4.44 %

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

60,293

$        2,465

5.46 %

49,391

$        2,062

5.58 %

Goodwill and other intangible assets

2,136

1,565

Other assets

3,222

2,340

Total assets

$          65,651

$       53,296

INTEREST-BEARING LIABILITIES:

Interest-bearing demand deposits

$          11,054

$           136

1.65 %

$         8,832

$           147

2.23 %

Money market deposits

16,694

264

2.11 %

12,295

225

2.44 %

Savings deposits

2,416

3

0.14 %

2,332

2

0.13 %

Time deposits

5,402

125

3.10 %

6,249

178

3.81 %

Total interest-bearing deposits

35,566

528

1.99 %

29,708

552

2.49 %

Repurchase agreements and federal funds purchased

174

2

1.76 %

192

3

2.09 %

Borrowings

3,597

107

3.96 %

2,913

101

4.63 %

Subordinated and junior subordinated debentures

446

23

7.03 %

432

26

7.99 %

Total interest-bearing liabilities

39,783

$           660

2.22 %

33,245

$           682

2.74 %

Non-interest-bearing deposits

17,422

13,668

Other liabilities

852

826

Total liabilities

58,057

47,739

Common equity

7,594

5,557

Total liabilities and shareholders' equity

$          65,651

$       53,296

NET INTEREST INCOME (2)

$        1,805

$        1,380

NET INTEREST SPREAD (2)

3.24 %

2.84 %

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

4.00 %

3.73 %

(1)

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

(2)

Tax-exempt income was adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $7 million for the nine months ended September 30, 2026, as compared to $4 million for the same period in 2025. 

Columbia Banking System, Inc.

Residential Mortgage Banking Activity

(Unaudited)

Quarter Ended

%

($ in millions)

Sep 30, 2026

Jun 30, 2026

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Seq. Quarter

Year over Year

Residential mortgage banking revenue:

Origination and sale

$             5

$             6

$             5

$             5

$             5

(17) %

— %

Servicing

6

5

6

6

5

20 %

20 %

Change in fair value of MSR asset:

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

(3)

(3)

(3)

(3)

(3)

— %

— %

Changes due to valuation inputs or assumptions

13

1

6

(1)

—

nm

nm

MSR hedge (loss) gain

(12)

(2)

(2)

—

—

500 %

nm

Total

$             9

$             7

$           12

$             7

$             7

29 %

29 %

Closed loan volume for sale

$         172

$         195

$         171

$         176

$         166

(12) %

4 %

Gain on sale margin

2.91 %

3.08 %

2.92 %

2.84 %

3.01 %

-0.17

-0.10

Residential mortgage servicing rights:

Balance, beginning of period

$         105

$         105

$           99

$         101

$         103

— %

2 %

Additions for new MSR capitalized

3

2

3

2

1

50 %

200 %

Change in fair value of MSR asset:

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

(3)

(3)

(3)

(3)

(3)

— %

— %

Changes due to valuation inputs or assumptions

13

1

6

(1)

—

nm

nm

Balance, end of period

$         118

$         105

$         105

$           99

$         101

12 %

17 %

Residential mortgage loans serviced for others

$      7,686

$      7,734

$      7,812

$      7,755

$      7,797

(1) %

(1) %

MSR as % of serviced portfolio

1.54 %

1.36 %

1.34 %

1.28 %

1.30 %

0.18

0.24

nm

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

Columbia Banking System, Inc.

Residential Mortgage Banking Activity

(Unaudited)

Nine Months Ended

% Change

($ in millions)

Sep 30, 2026

Sep 30, 2025

Year over Year

Residential mortgage banking revenue:

Origination and sale

$               16

$               14

14 %

Servicing

17

17

0 %

Change in fair value of MSR asset:

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

(9)

(9)

0 %

Changes due to valuation inputs or assumptions

20

(3)

nm

MSR hedge (loss) gain

(16)

5

(420) %

Total

$               28

$               24

17 %

Closed loan volume for sale

$             538

$             466

15 %

Gain on sale margin

2.97 %

3.00 %

(0.03)

Residential mortgage servicing rights:

Balance, beginning of period

$               99

$             108

(8) %

Additions for new MSR capitalized

8

5

60 %

Change in fair value of MSR asset:

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

(9)

(9)

0 %

Changes due to valuation inputs or assumptions

20

(3)

nm

Balance, end of period

$             118

$             101

17 %

nm

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

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

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation

Tangible Capital, as adjusted

(Unaudited)

Quarter Ended

% Change

($ in millions, except per-share data)

Sep 30, 2026

Jun 30, 2026

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Seq. Quarter

Year over Year

Total shareholders' equity

a

$       7,079

$       7,552

$       7,664

$       7,840

$       7,790

(6) %

(9) %

Less: Goodwill

1,482

1,482

1,482

1,482

1,481

— %

— %

Less: Other intangible assets, net

595

633

671

712

754

(6) %

(21) %

Tangible common shareholders' equity

b

$       5,002

$       5,437

$       5,511

$       5,646

$       5,555

(8) %

(10) %

Total assets

c

$     65,135

$     65,380

$     66,027

$     66,832

$     67,496

— %

(3) %

Less: Goodwill

1,482

1,482

1,482

1,482

1,481

— %

— %

Less: Other intangible assets, net

595

633

671

712

754

(6) %

(21) %

Tangible assets

d

$     63,058

$     63,265

$     63,874

$     64,638

$     65,261

— %

(3) %

Common shares outstanding at period end (in thousands)

e

276,330

282,817

289,530

295,422

299,147

(2) %

(8) %

Total shareholders' equity to total assets ratio

a / c

10.87 %

11.55 %

11.61 %

11.73 %

11.54 %

(0.68)

(0.67)

Tangible common equity to tangible assets ratio

b / d

7.93 %

8.59 %

8.63 %

8.73 %

8.51 %

(0.66)

(0.58)

Book value per common share

a / e

$       25.62

$       26.70

$       26.47

$       26.54

$       26.04

(4) %

(2) %

Tangible book value per common share

b / e

$       18.10

$       19.22

$       19.03

$       19.11

$       18.57

(6) %

(3) %

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation - Continued

Income Statements, as adjusted

(Unaudited)

Quarter Ended

% Change

($ in millions)

Sep 30, 2026

Jun 30, 2026

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Seq. Quarter

Year over Year

Non-Interest Income Adjustments

(Loss) gain on investment securities, net

$               (8)

$               (1)

$               —

$                 2

$                 2

nm

(500) %

Gain (loss) on swap derivatives

3

—

—

1

(1)

nm

nm

(Loss) gain on loans held for investment, at fair value

(3)

(1)

(2)

—

4

200 %

(175) %

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

13

1

6

(1)

—

nm

nm

MSR hedge loss

(12)

(2)

(2)

—

—

500 %

nm

Total non-interest income adjustments

a

$               (7)

$               (3)

$                 2

$                 2

$                 5

133 %

(240) %

Non-Interest Expense Adjustments

Merger and restructuring expense

$                 2

$                 9

$               24

$               39

$               87

(78) %

(98) %

Exit and disposal costs

3

—

1

1

—

nm

nm

FDIC special assessment

—

—

—

(5)

(1)

nm

nm

Legal settlement and other non-operating expense

—

—

—

4

—

nm

nm

Total non-interest expense adjustments

b

$                 5

$                 9

$               25

$               39

$               86

(44) %

(94) %

Net interest income

c

$             615

$             589

$             594

$             627

$             505

4 %

22 %

Non-interest income (GAAP)

d

$               80

$               88

$               83

$               90

$               77

(9) %

4 %

Less: Non-interest income adjustments

a

7

3

(2)

(2)

(5)

133 %

nm

Operating non-interest income (non-GAAP)

e

$               87

$               91

$               81

$               88

$               72

(4) %

21 %

Revenue (GAAP)

f=c+d

$             695

$             677

$             677

$             717

$             582

3 %

19 %

Operating revenue (non-GAAP)

g=c+e

$             702

$             680

$             675

$             715

$             577

3 %

22 %

Non-interest expense (GAAP)

h

$             370

$             375

$             394

$             412

$             393

(1) %

(6) %

Less: Non-interest expense adjustments

b

(5)

(9)

(25)

(39)

(86)

(44) %

(94) %

Operating non-interest expense (non-GAAP)

i

$             365

$             366

$             369

$             373

$             307

— %

19 %

Net income (GAAP)

j

$             220

$             208

$             192

$             215

$               96

6 %

129 %

Provision for income taxes

72

67

63

67

23

7 %

213 %

Income before provision for income taxes

292

275

255

282

119

6 %

145 %

Provision for credit losses

33

27

28

23

70

22 %

(53) %

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

k

325

302

283

305

189

8 %

72 %

Less: Non-interest income adjustments

a

7

3

(2)

(2)

(5)

133 %

nm

Add: Non-interest expense adjustments

b

5

9

25

39

86

(44) %

(94) %

Operating PPNR (non-GAAP)

l

$             337

$             314

$             306

$             342

$             270

7 %

25 %

Net income (GAAP)

j

$             220

$             208

$             192

$             215

$               96

6 %

129 %

Acquisition-related provision expense

—

—

—

—

70

nm

(100) %

Less: Non-interest income adjustments

a

7

3

(2)

(2)

(5)

133 %

nm

Add: Non-interest expense adjustments

b

5

9

25

39

86

(44) %

(94) %

Tax effect of adjustments

(3)

(3)

(6)

(9)

(43)

— %

(93) %

Operating net income (non-GAAP)

m

$             229

$             217

$             209

$             243

$             204

6 %

12 %

nm

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

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation - Continued

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

(Unaudited)

Quarter Ended

% Change

($ in millions, shares in thousands)

Sep 30, 2026

Jun 30, 2026

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Seq. Quarter

Year over Year

Average assets

n

$     65,117

$     65,632

$     66,215

$     67,114

$     56,823

(1) %

15 %

Less: Average goodwill and other intangible assets, net

2,096

2,136

2,175

2,217

1,719

(2) %

22 %

Average tangible assets

o

$     63,021

$     63,496

$     64,040

$     64,897

$     55,104

(1) %

14 %

Average common shareholders' equity

p

$       7,407

$       7,594

$       7,786

$      7,814

$       6,157

(2) %

20 %

Less: Average goodwill and other intangible assets, net

2,096

2,136

2,175

2,217

1,719

(2) %

22 %

Average tangible common equity

q

$       5,311

$       5,458

$       5,611

$      5,597

$       4,438

(3) %

20 %

Weighted average basic shares outstanding (in thousands)

r

279,221

285,558

290,933

295,376

237,838

(2) %

17 %

Weighted average diluted shares outstanding (in thousands)

s

280,338

286,472

292,160

296,760

238,925

(2) %

17 %

Select Per-Share & Performance Metrics

Earnings per share - basic

j / r

$         0.78

$         0.73

$         0.66

$        0.72

$         0.40

7 %

95 %

Earnings per share - diluted

j / s

$         0.78

$         0.73

$         0.66

$        0.72

$         0.40

7 %

95 %

Efficiency ratio (1)

h / f

53.08 %

55.15 %

58.03 %

57.30 %

67.29 %

(2.07)

(14.21)

Non-interest expense to average assets

h / n

2.25 %

2.29 %

2.41 %

2.44 %

2.74 %

(0.04)

(0.49)

Return on average assets

j / n

1.34 %

1.27 %

1.18 %

1.27 %

0.67 %

0.07

0.67

Return on average tangible assets

j / o

1.38 %

1.31 %

1.22 %

1.31 %

0.69 %

0.07

0.69

PPNR return on average assets

k / n

1.98 %

1.85 %

1.73 %

1.80 %

1.32 %

0.13

0.66

Return on average common equity

j / p

11.78 %

10.99 %

10.00 %

10.92 %

6.19 %

0.79

5.59

Return on average tangible common equity

j / q

16.43 %

15.29 %

13.88 %

15.24 %

8.58 %

1.14

7.85

Operating Per-Share & Performance Metrics

Operating earnings per share - basic 

m / r

$         0.82

$         0.76

$         0.72

$        0.82

$         0.86

8 %

(5) %

Operating earnings per share - diluted

m / s

$         0.82

$         0.76

$         0.72

$        0.82

$         0.85

8 %

(4) %

Operating efficiency ratio, as adjusted (1)

u / y

51.34 %

52.92 %

53.68 %

51.39 %

52.32 %

(1.58)

(0.98)

Operating non-interest expense to average assets

i / n

2.22 %

2.24 %

2.26 %

2.20 %

2.14 %

(0.02)

0.08

Operating return on average assets

m / n

1.40 %

1.33 %

1.28 %

1.44 %

1.42 %

0.07

(0.02)

Operating return on average tangible assets

m / o

1.44 %

1.37 %

1.32 %

1.49 %

1.47 %

0.07

(0.03)

Operating PPNR return on average assets

l / n

2.05 %

1.92 %

1.87 %

2.02 %

1.89 %

0.13

0.16

Operating return on average common equity

m / p

12.27 %

11.46 %

10.89 %

12.34 %

13.15 %

0.81

(0.88)

Operating return on average tangible common equity

m / q

17.11 %

15.95 %

15.11 %

17.22 %

18.24 %

1.16

(1.13)

(1)

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

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation - Continued

Operating Efficiency Ratio, as adjusted

(Unaudited)

Quarter Ended

% Change

($ in millions)

Sep 30, 2026

Jun 30, 2026

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Seq. Quarter

Year over Year

Non-interest expense (GAAP)

h

$          370

$          375

$          394

$          412

$          393

(1) %

(6) %

Less: Non-interest expense adjustments

b

(5)

(9)

(25)

(39)

(86)

(44) %

(94) %

Operating non-interest expense (non-GAAP)

i

365

366

369

373

307

— %

19 %

Less: B&O taxes

t

(2)

(3)

(4)

(3)

(3)

(33) %

(33) %

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

u

$          363

$          363

$          365

$          370

$          304

— %

19 %

Net interest income (tax equivalent) (1)

v

$          617

$          592

$          596

$          629

$          507

4 %

22 %

Non-interest income (GAAP)

d

80

88

83

90

77

(9) %

4 %

Add: BOLI tax equivalent adjustment (1)

w

3

3

3

3

2

— %

50 %

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

x

700

683

682

722

586

2 %

19 %

Less: Non-interest income adjustments

a

7

3

(2)

(2)

(5)

133 %

nm

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

y

$          707

$          686

$          680

$          720

$          581

3 %

22 %

Efficiency ratio (1)

h / f

53.08 %

55.15 %

58.03 %

57.30 %

67.29 %

(2.07)

(14.21)

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

u / y

51.34 %

52.92 %

53.68 %

51.39 %

52.32 %

(1.58)

(0.98)

nm

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

(1)

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

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation - Continued

Income Statements, as adjusted

(Unaudited)

Nine Months Ended

% Change

($ in millions)

Sep 30, 2026

Sep 30, 2025

Year over Year

Non-Interest Income Adjustments

(Loss) gain on investment securities, net

$                      (9)

$                        4

(325) %

Gain (loss) on swap derivatives

3

(3)

nm

(Loss) gain on loans held for investment, at fair value

(6)

11

(155) %

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

20

(3)

nm

MSR hedge (loss) gain

(16)

5

(420) %

Total non-interest income adjustments

a

$                      (8)

$                      14

(157) %

Non-Interest Expense Adjustments

Merger and restructuring expense

$                      35

$                    109

(68) %

Exit and disposal costs

4

1

300 %

FDIC special assessment 

—

(1)

nm

Legal settlement and other non-operating expense

—

55

(100) %

Total non-interest expense adjustments

b

$                      39

$                    164

(76) %

Net interest income

c

$                 1,798

$                 1,376

31 %

Non-interest income (GAAP)

d

$                    251

$                    208

21 %

Less: Non-interest income adjustments

a

8

(14)

nm

Operating non-interest income (non-GAAP)

e

$                    259

$                    194

34 %

Revenue (GAAP)

f=c+d

$                 2,049

$                 1,584

29 %

Operating revenue (non-GAAP)

g=c+e

$                 2,057

$                 1,570

31 %

Non-interest expense (GAAP)

h

$                 1,139

$                 1,011

13 %

Less: Non-interest expense adjustments

b

(39)

(164)

(76) %

Operating non-interest expense (non-GAAP)

i

$                 1,100

$                    847

30 %

Net income (GAAP)

j

$                    620

$                    335

85 %

Provision for income taxes

202

111

82 %

Income before provision for income taxes

822

446

84 %

Provision for credit losses

88

127

(31) %

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

k

910

573

59 %

Less: Non-interest income adjustments

a

8

(14)

nm

Add: Non-interest expense adjustments

b

39

164

(76) %

Operating PPNR (non-GAAP)

l

$                    957

$                    723

32 %

Net income (GAAP)

j

$                    620

$                    335

85 %

Less: Non-interest income adjustments

a

8

(14)

nm

Add: Non-interest expense adjustments

b

39

164

(76) %

Tax effect of adjustments

(12)

(52)

(77) %

Operating net income (non-GAAP)

m

$                    655

$                    503

30 %

nm

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

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation - Continued

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

(Unaudited)

Nine Months Ended

% Change

($ in millions, shares in thousands)

Sep 30, 2026

Sep 30, 2025

Year over Year

Average assets

n

$                65,651

$                53,296

23 %

Less: Average goodwill and other intangible assets, net

2,136

1,565

36 %

Average tangible assets

o

$                63,515

$                51,731

23 %

Average common shareholders' equity

p

$                 7,594

$                 5,557

37 %

Less: Average goodwill and other intangible assets, net

2,136

1,565

36 %

Average tangible common equity

q

$                 5,458

$                 3,992

37 %

Weighted average basic shares outstanding

r

285,128

218,694

30 %

Weighted average diluted shares outstanding

s

286,246

219,712

30 %

Select Per-Share & Performance Metrics

Earnings per share - basic

j / r

$                   2.17

$                   1.53

42 %

Earnings per share - diluted

j / s

$                   2.16

$                   1.53

41 %

Efficiency ratio (1)

h / f

55.40 %

63.66 %

(8.26)

Non-interest expense to average assets

h/n

2.32 %

2.54 %

(0.22)

Return on average assets

j / n

1.26 %

0.84 %

0.42

Return on average tangible assets

j / o

1.31 %

0.87 %

0.44

PPNR return on average assets

k/n

1.85 %

1.44 %

0.41

Return on average common equity

j / p

10.92 %

8.06 %

2.86

Return on average tangible common equity

j / q

15.19 %

11.22 %

3.97

Operating Per-Share & Performance Metrics

Operating earnings per share - basic 

m / r

$                   2.30

$                   2.30

— %

Operating earnings per share - diluted

m / s

$                   2.29

$                   2.29

— %

Operating efficiency ratio, as adjusted (1)

u / y

52.63 %

53.07 %

(0.44)

Operating non-interest expense to average assets

i/n

2.24 %

2.12 %

0.12

Operating return on average assets 

m / n

1.33 %

1.26 %

0.07

Operating return on average tangible assets 

m / o

1.38 %

1.30 %

0.08

Operating PPNR return on average assets 

l / n

1.95 %

1.81 %

0.14

Operating return on average common equity 

m / p

11.53 %

12.10 %

(0.57)

Operating return on average tangible common equity 

m / q

16.04 %

16.85 %

(0.81)

(1)

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

Columbia Banking System, Inc.

GAAP to Non-GAAP Reconciliation - Continued

Operating Efficiency Ratio, as adjusted

(Unaudited)

Nine Months Ended

% change

($ in millions)

Sep 30, 2026

Sep 30, 2025

Year over Year

Non-interest expense (GAAP)

h

$                 1,139

$                 1,011

13 %

Less: Non-interest expense adjustments

b

(39)

(164)

(76) %

Operating non-interest expense (non-GAAP)

i

1,100

847

30 %

Less: B&O taxes

t

(9)

(9)

— %

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

u

$                 1,091

$                    838

30 %

Net interest income (tax equivalent) (1)

v

$                 1,805

$                 1,380

31 %

Non-interest income (GAAP)

d

251

208

21 %

Add: BOLI tax equivalent adjustment (1)

w

9

5

80 %

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

x

2,065

1,593

30 %

Less: Non-interest income adjustments

a

8

(14)

nm

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

y

$                 2,073

$                 1,579

31 %

Efficiency ratio (1)

h /f

55.40 %

63.66 %

(8.26)

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

u / y

52.63 %

53.07 %

(0.44)

nm

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

(1)

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

SOURCE Columbia Banking System, Inc.