Document


CEO Commentary
"Our teams remain focused on their customers and communities as we continue to drive balanced growth for the organization,” said Clint Stein, President and CEO. “We are back to business as usual, and our third quarter results highlight stabilizing customer deposit trends, relationship-driven growth in our loan portfolio and customer-based fee income, and a smaller impact from merger-related expense that affect our reported results. We achieved $140 million in annualized net merger-related cost savings through quarter end, surpassing our originally announced target of $135 million despite continued investment in our growing franchise, which includes the opening of our first branch in Utah during the third quarter. Our talented associates, expanding footprint, and customer-focused business model enable us to continue to win business and drive shareholder value.”
–Clint Stein, President and CEO of Columbia Banking System, Inc.


3Q23 HIGHLIGHTS (COMPARED TO 2Q23)

Net Interest Income and NIM			•Net interest income decreased by $3 million or 1% on a linked-quarter basis as the increase in interest income due to higher yields was more than offset by higher funding costs.
			•Net interest margin was 3.91%, down 2 basis points from the prior quarter. The second full quarter as a combined organization, higher customer balances, and consistent purchase accounting trends contributed to net interest margin stabilization between quarters.

Non-Interest Income and Expense			•Non-interest income increased by $4 million due primarily to higher customer-related fee income and loan gain-on-sale income as well as a lower loss due to cumulative non-merger fair value accounting and hedges.
			•Non-interest expense decreased by $24 million due to the realization of cost savings and lower merger-related expense.

Credit Quality			•Net charge-offs were 0.25% of average loans and leases (annualized) compared to 0.30% in the prior quarter. Charge-off activity remains centered in the FinPac portfolio.
			•Provision expense of $37 million relates to portfolio mix changes and credit migration trends.
			•Non-performing assets to total assets was 0.20% compared to 0.15% at June 30, 2023.

Capital			•Estimated total risk-based capital ratio of 11.5% and estimated common equity tier 1 risk-based capital ratio of 9.4%.
			•Declared a quarterly cash dividend of $0.36 per common share on August 14, 2023, which was paid September 11, 2023.

Notable items			•Sold $159 million in non-relationship jumbo residential mortgage loans that were marked to fair value at merger close.
			•Completed the sale of approximately one-third of the MSR portfolio.
			•Incurred $19 million in merger-related expense.


3Q23 KEY FINANCIAL DATA

PERFORMANCE METRICS	3Q23		2Q23		3Q22
Return on average assets	1.02%		1.00%		1.09%
Return on average common equity	11.07%		10.84%		12.99%
Return on average tangible common equity 1	16.93%		16.63%		13.02%
Operating return on average assets 1	1.23%		1.27%		1.33%
Operating return on average common equity 1	13.40%		13.77%		15.86%
Operating return on average tangible common equity 1	20.48%		21.13%		15.90%
Net interest margin	3.91%		3.93%		3.88%

Efficiency ratio	57.82%		62.60%		56.07%

INCOME STATEMENT ($ in 000s, excl. per share data)	3Q23		2Q23		3Q22
Net interest income	$480,875		$483,975		$287,604
Provision for credit losses	$36,737		$16,014		$27,572
Non-interest income	$43,981		$39,678		$29,445
Non-interest expense	$304,147		$328,559		$177,964
Pre-provision net revenue 1	$220,709		$195,094		$139,085
Operating pre-provision net revenue1	$258,687		$243,114		$163,793
Earnings per common share - diluted 2	$0.65		$0.64		$0.65
Operating earnings per common share - diluted 1,2	$0.79		$0.81		$0.79
Dividends paid per share 2	$0.36		$0.36		$0.35

BALANCE SHEET	3Q23		2Q23		3Q22
Total assets	$52.0	B	$53.6	B	$31.5	B
Loans and leases	$37.2	B	$37.0	B	$25.5	B
Total deposits	$41.6	B	$40.8	B	$26.8	B
Book value per common share 2	$22.21		$23.16		$18.69
Tangible book value per share1,2	$14.22		$15.02		$18.65

On February 28, 2023, Columbia completed its merger with Umpqua Holdings Corporation ("UHC"), combining the two premier banks in the Northwest to create one of the largest banks headquartered in the West (the "merger"). Columbia's financial results for any periods ended prior to February 28, 2023 reflect UHC results only on a standalone basis. In addition, Columbia's reported financial results for the first quarter of 2023 reflect UHC financial results only until the closing of the merger after the close of business on February 28, 2023. As a result of these two factors, Columbia's financial results for the first, second, and third quarters of 2023 and the nine months ended September 30, 2023 may not be directly comparable to prior reported periods. The number of shares issued and outstanding, earnings per share, additional paid-in capital, and all references to share quantities or metrics of Columbia have been retrospectively restated to reflect the equivalent number of shares issued in the merger as the merger was treated as a reverse merger. Under the reverse acquisition method of accounting, the assets and liabilities of Columbia as of February 28, 2023 ("historical Columbia") were recorded at their respective fair values.

Columbia's net interest margin was 3.91% for the third quarter of 2023, down 2 basis points from 3.93% for the second quarter of 2023. The second full quarter as a combined organization, higher customer balances, and consistent purchase accounting trends contributed to net interest margin stabilization between quarters. The cost of interest-bearing deposits increased 37 basis points on a linked-quarter basis to 2.01% for the third quarter of 2023, which compares to 2.18% for the month of September and 2.27% at September 30, 2023. Deposit costs were impacted by the decision to replace a portion of maturing FHLB advances with brokered deposits during the third quarter, which increased our cost of deposits but was fairly neutral to our cost of interest-bearing liabilities. Columbia's cost of interest-bearing liabilities increased 27 basis points on a linked-quarter basis to 2.72% for the third quarter of 2023, which compares to 2.77% for the month of September and 2.78% at September 30, 2023. Please refer to the Q3 2023 Earnings Presentation for additional net interest margin change details and interest rate sensitivity information as well as to our non-GAAP disclosures in this press release for the impact of purchase accounting accretion and amortization on individual line items.

Non-interest income was $44 million for the third quarter of 2023, up $4 million from the prior quarter. Higher customer-related fee income, loan gain-on-sale income from select portfolio sales, and a smaller loss related to fair value adjustments and mortgage servicing rights ("MSR") hedging activity drove the increase. A net fair value loss of $15 million in the third quarter compares to a net fair value loss of $16 million in the second quarter, as detailed in our non-GAAP disclosures. As previously communicated, Columbia entered an agreement to sell approximately one-third of its MSR portfolio that relates to a non-relationship component of the serviced loan portfolio. The transaction closed in late September without any income statement impact.

Total consolidated assets were $52.0 billion as of September 30, 2023, compared to $53.6 billion as of June 30, 2023. Cash and cash equivalents was $2.4 billion as of September 30, 2023, a decrease of $1.0 billion relative to June 30, 2023. We reduced our cash position during the third quarter given stabilizing industry trends and ample sources of available liquidity. Excess cash was used to pay off maturing FHLB advances, which declined to $4.0 billion as of September 30, 2023, compared to $6.3 billion as of June 30, 2023. Including secured off-balance sheet lines of credit, total available liquidity was $19.1 billion as of September 30, 2023, representing 37% of total assets, 46% of total deposits, and 142% of uninsured deposits. Please refer to the Q3 2023 Earnings Presentation for additional details related to our liquidity position.

Gross loans and leases were $37.2 billion as of September 30, 2023, an increase of $121 million relative to June 30, 2023, as organic growth during the quarter more than offset the sale of $159 million in non-relationship jumbo residential mortgage loans that were marked to fair value at merger close. "We continued to selectively prune the portfolio during the third quarter, bringing the transfer and sale of loans that were transactional in nature to approximately $650 million over the past two quarters," commented Tory Nixon, President of Umpqua Bank. "Higher outstanding commercial line balances and other relationship-driven expansion contributed to 3% annualized loan growth in the third quarter when loan sales are excluded." Please refer to the Q3 2023 Earnings Presentation for additional details related to our loan portfolio, which include underwriting characteristics, the composition of our commercial portfolios, and disclosure related to our office portfolio.

Columbia's estimated total risk-based capital ratio was 11.5% and its estimated common equity tier 1 risk-based capital ratio was 9.4% as of September 30, 2023, compared to 11.3% and 9.2%, respectively, at June 30, 2023. Columbia remains above current “well-capitalized” regulatory minimums. "We continued to build capital during the quarter through organic earnings generation and the realization of loan and investment securities discount accretion," stated Ron Farnsworth, Chief Financial Officer of Columbia. "We expect our capital position to continue to build over time, supporting our growing franchise and increasing flexibility for capital return." The regulatory capital ratios as of September 30, 2023 are estimates, pending completion and filing of Columbia's regulatory reports.

Columbia (Nasdaq: COLB) is headquartered in Tacoma, Washington and is the parent company of Umpqua Bank, an award-winning western U.S. regional bank based in Lake Oswego, Oregon. In March of 2023, Columbia and Umpqua combined two of the Pacific Northwest's premier financial institutions under the Umpqua Bank brand to create one of the largest banks headquartered in the West and a top-30 U.S. bank. With over $50 billion of assets, Umpqua Bank combines the resources, sophistication and expertise of a national bank with a commitment to deliver personalized service at scale. The bank operates in Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah, and Washington and 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. Umpqua Bank customers also have access to comprehensive investment and wealth management expertise as well as healthcare and private banking through Columbia Wealth Management and Columbia Trust Company, a subsidiary of Columbia. Learn more at www.columbiabankingsystem.com.

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 (the "SEC"). 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 that could cause results to differ from forward-looking statements we make include, without limitation: current and future economic and market conditions, including the effects of declines in housing and commercial real estate prices, high unemployment rates, continued 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; our ability to effectively manage problem credits; the impact of bank failures or adverse developments at or news developments concerning 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; any failure to realize the anticipated benefits of the UHC merger when expected or at all; the possibility that the integration following the UHC merger may be more expensive than anticipated, including as a result of unexpected factors or events, diversion of management’s attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the UHC merger and integration of the companies; the effect of geopolitical instability, including wars, conflicts and terrorist attacks; and natural disasters and other similar unexpected events outside of our control. We also caution that the amount and timing of any future common stock dividends or repurchases will depend on the earnings, cash requirements and financial condition of Columbia, market conditions, capital requirements, applicable law and regulations (including federal securities laws and federal banking regulations), and other factors deemed relevant by Columbia's Board of Directors, and may be subject to regulatory approval or conditions.


Columbia Banking System, Inc.
Consolidated Statements of Operations
(Unaudited)
	Quarter Ended										% Change
($ in thousands, except per share data)	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Seq. Quarter		Year over Year
Interest income:
Loans and leases	$	569,670	$	552,679	$	413,525	$	322,350	$	278,830	3	%	104	%
Interest and dividends on investments:
Taxable	80,066		79,036		39,729		18,108		18,175		1	%	341	%
Exempt from federal income tax	6,929		6,817		3,397		1,288		1,322		2	%	424	%
Dividends	4,941		2,581		719		182		86		91	%	nm
Temporary investments and interest bearing deposits	34,407		34,616		18,581		10,319		5,115		(1)	%	nm
Total interest income	696,013		675,729		475,951		352,247		303,528		3	%	129	%
Interest expense:
Deposits	126,974		100,408		63,613		31,174		9,090		26	%	nm
Securities sold under agreement to repurchase and federal funds purchased	1,220		1,071		406		323		545		14	%	124	%
Borrowings	77,080		81,004		28,764		8,023		798		(5)	%	nm
Junior and other subordinated debentures	9,864		9,271		8,470		7,248		5,491		6	%	80	%
Total interest expense	215,138		191,754		101,253		46,768		15,924		12	%	nm
Net interest income	480,875		483,975		374,698		305,479		287,604		(1)	%	67	%
Provision for credit losses	36,737		16,014		105,539		32,948		27,572		129	%	33	%
Non-interest income:
Service charges on deposits	17,410		16,454		14,312		12,139		12,632		6	%	38	%
Card-based fees	15,674		13,435		11,561		9,017		9,115		17	%	72	%
Financial services and trust revenue	4,651		4,512		1,297		25		27		3	%	nm
Residential mortgage banking revenue (loss), net	7,103		(2,342)		7,816		(1,812)		17,341		nm		(59)	%
Gain on sale of debt securities, net	4		—		—		—		—		nm		nm
(Loss) gain on equity securities, net	(2,055)		(697)		2,416		284		(2,647)		195	%	(22)	%
Gain on loan and lease sales, net	1,871		442		940		1,531		1,525		323	%	23	%
BOLI income	4,440		4,063		2,790		2,033		2,023		9	%	119	%
Other (loss) income	(5,117)		3,811		13,603		11,662		(10,571)		(234)	%	(52)	%
Total non-interest income	43,981		39,678		54,735		34,879		29,445		11	%	49	%
Non-interest expense:
Salaries and employee benefits	159,041		163,398		136,092		107,982		109,164		(3)	%	46	%
Occupancy and equipment, net	43,070		50,550		41,700		34,021		35,042		(15)	%	23	%
Intangible amortization	29,879		35,553		12,660		1,019		1,025		(16)	%	nm
FDIC assessments	11,200		11,579		6,113		3,487		3,007		(3)	%	272	%
Merger related expense	18,938		29,649		115,898		11,637		769		(36)	%	nm

Other expenses	42,019		37,830		30,355		36,836		28,957		11	%	45	%
Total non-interest expense	304,147		328,559		342,818		194,982		177,964		(7)	%	71	%
Income (loss) before provision (benefit) for income taxes	183,972		179,080		(18,924)		112,428		111,513		3	%	65	%
Provision (benefit) for income taxes	48,127		45,703		(4,886)		29,464		27,473		5	%	75	%
Net income (loss)	$	135,845	$	133,377	$	(14,038)	$	82,964	$	84,040	2	%	62	%

Weighted average basic shares outstanding (1)	208,070		207,977		156,383		129,321		129,319		0	%	61	%
Weighted average diluted shares outstanding (1)	208,645		208,545		156,383		129,801		129,733		0	%	61	%
Earnings (loss) per common share – basic (1)	$	0.65	$	0.64	$	(0.09)	$	0.64	$	0.65	2	%	0	%
Earnings (loss) per common share – diluted (1)	$	0.65	$	0.64	$	(0.09)	$	0.64	$	0.65	2	%	0	%

nm = not meaningful


Columbia Banking System, Inc.
Consolidated Statements of Operations
(Unaudited)
	Nine Months Ended				% Change
($ in thousands, except per share data)	Sep 30, 2023		Sep 30, 2022		Year over Year
Interest income:
Loans and leases	$	1,535,874	$	727,908	111	%
Interest and dividends on investments:
Taxable	198,831		54,156		267	%
Exempt from federal income tax	17,143		4,063		322	%
Dividends	8,241		256		nm
Temporary investments and interest bearing deposits	87,604		9,387		nm
Total interest income	1,847,693		795,770		132	%
Interest expense:
Deposits	290,995		17,021		nm
Securities sold under agreement to repurchase and federal funds purchased	2,697		674		300	%
Borrowings	186,848		897		nm
Junior and other subordinated debentures	27,605		12,641		118	%
Total interest expense	508,145		31,233		nm
Net interest income	1,339,548		764,537		75	%
Provision for credit losses	158,290		51,068		210	%
Non-interest income:
Service charges on deposits	48,176		36,226		33	%
Card-based fees	40,670		28,353		43	%
Brokerage revenue	10,460		65		nm
Residential mortgage banking revenue, net	12,577		108,671		(88)	%
Gain on sale of debt securities, net	4		2		100	%
Loss on equity securities, net	(336)		(7,383)		(95)	%
Gain on loan and lease sales, net	3,253		5,165		(37)	%
BOLI income	11,293		6,220		82	%
Other income (loss)	12,297		(12,670)		nm
Total non-interest income	138,394		164,649		(16)	%
Non-interest expense:
Salaries and employee benefits	458,531		333,244		38	%
Occupancy and equipment, net	135,320		104,430		30	%
Intangible amortization	78,092		3,076		nm
FDIC assessments	28,892		10,477		176	%
Merger related expense	164,485		5,719		nm
Other expenses	110,204		83,022		33	%
Total non-interest expense	975,524		539,968		81	%
Income before provision for income taxes	344,128		338,150		2	%
Provision for income taxes	88,944		84,362		5	%
Net income	$	255,184	$	253,788	1	%

Weighted average basic shares outstanding (1)	190,997		129,262		48	%
Weighted average diluted shares outstanding (1)	191,546		129,702		48	%
Earnings per common share – basic (1)	$	1.34	$	1.96	(32)	%
Earnings per common share – diluted (1)	$	1.33	$	1.96	(32)	%

nm = not meaningful


Columbia Banking System, Inc. Consolidated Balance Sheets
(Unaudited)
											% Change
($ in thousands, except per share data)	Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Seq. Quarter		Year over Year
Assets:
Cash and due from banks	$	492,474	$	538,653	$	555,919	$	327,313	$	321,447	(9)	%	53	%
Interest bearing cash and temporary investments	1,911,221		2,868,563		3,079,266		967,330		1,232,412		(33)	%	55	%
Investment securities:
Equity and other, at fair value	73,638		76,361		76,532		72,959		72,277		(4)	%	2	%
Available for sale, at fair value	8,503,986		8,998,428		9,249,600		3,196,166		3,136,391		(5)	%	171	%
Held to maturity, at amortized cost	2,344		2,388		2,432		2,476		2,547		(2)	%	(8)	%
Loans held for sale	60,313		183,633		49,338		71,647		148,275		(67)	%	(59)	%
Loans and leases	37,170,598		37,049,299		37,091,280		26,155,981		25,507,951		0	%	46	%
Allowance for credit losses on loans and leases	(416,560)		(404,603)		(417,464)		(301,135)		(283,065)		3	%	47	%
Net loans and leases	36,754,038		36,644,696		36,673,816		25,854,846		25,224,886		0	%	46	%
Restricted equity securities	168,524		258,524		246,525		47,144		40,993		(35)	%	311	%
Premises and equipment, net	337,855		368,698		375,190		176,016		165,305		(8)	%	104	%
Operating lease right-of-use assets	114,220		119,255		127,296		78,598		81,729		(4)	%	40	%
Goodwill	1,029,234		1,029,234		1,030,142		—		—		0	%	nm
Other intangible assets, net	636,883		666,762		702,315		4,745		5,764		(4)	%	nm
Residential mortgage servicing rights, at fair value	117,640		172,929		178,800		185,017		196,177		(32)	%	(40)	%
Bank owned life insurance	648,232		643,727		641,922		331,759		329,699		1	%	97	%
Deferred tax asset, net	469,841		362,880		351,229		132,823		128,120		29	%	267	%
Other assets	669,150		657,365		653,904		399,800		385,938		2	%	73	%
Total assets	$	51,989,593	$	53,592,096	$	53,994,226	$	31,848,639	$	31,471,960	(3)	%	65	%
Liabilities:
Deposits
Non-interest bearing	$	15,532,948	$	16,019,408	$	17,215,781	$	10,288,849	$	11,246,358	(3)	%	38	%
Interest bearing	26,091,420		24,815,509		24,370,566		16,776,763		15,570,749		5	%	68	%
Total deposits	41,624,368		40,834,917		41,586,347		27,065,612		26,817,107		2	%	55	%
Securities sold under agreements to repurchase	258,383		294,914		271,047		308,769		383,569		(12)	%	(33)	%
Borrowings	3,985,000		6,250,000		5,950,000		906,175		756,214		(36)	%	427	%
Junior subordinated debentures, at fair value	331,545		312,872		297,721		323,639		325,744		6	%	2	%
Junior and other subordinated debentures, at amortized cost	107,952		108,009		108,066		87,813		87,870		0	%	23	%
Operating lease liabilities	129,845		132,099		140,648		91,694		95,512		(2)	%	36	%

Other liabilities	920,338		831,097		755,674		585,111		588,430		11	%	56	%
Total liabilities	47,357,431		48,763,908		49,109,503		29,368,813		29,054,446		(3)	%	63	%
Shareholders' equity:

Common stock	5,798,167		5,792,792		5,788,553		3,450,493		3,448,007		0	%	68	%
Accumulated deficit	(485,576)		(545,842)		(603,696)		(543,803)		(580,933)		(11)	%	(16)	%
Accumulated other comprehensive loss	(680,429)		(418,762)		(300,134)		(426,864)		(449,560)		62	%	51	%
Total shareholders' equity	4,632,162		4,828,188		4,884,723		2,479,826		2,417,514		(4)	%	92	%
Total liabilities and shareholders' equity	$	51,989,593	$	53,592,096	$	53,994,226	$	31,848,639	$	31,471,960	(3)	%	65	%

Common shares outstanding at period end (1)	208,575		208,514		208,429		129,321		129,320		0	%	61	%




nm = not meaningful


Columbia Banking System, Inc.
Financial Highlights
(Unaudited)
	Quarter Ended															% Change
	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Seq. Quarter		Year over Year
Per Common Share Data: (5)
Dividends (5)	$	0.36		$	0.36		$	0.35		$	0.35		$	0.35		0	%	3	%
Book value (5)	$	22.21		$	23.16		$	23.44		$	19.18		$	18.69		(4)	%	19	%
Tangible book value (1),(5)	$	14.22		$	15.02		$	15.12		$	19.14		$	18.65		(5)	%	(24)	%


Performance Ratios:
Efficiency ratio (2)	57.82		%	62.60		%	79.71		%	57.24		%	56.07		%	(4.78)		1.75
Return on average assets ("ROAA")	1.02		%	1.00		%	(0.14)		%	1.04		%	1.09		%	0.02		(0.07)
Pre-provision net revenue ("PPNR") ROAA (1)	1.65		%	1.46		%	0.89		%	1.82		%	1.80		%	0.19		(0.15)
Return on average common equity	11.07		%	10.84		%	(1.70)		%	13.50		%	12.99		%	0.23		(1.92)
Return on average tangible common equity (1)	16.93		%	16.63		%	(2.09)		%	13.53		%	13.02		%	0.30		3.91

Performance Ratios - Operating: (1)
Operating efficiency ratio (1), (2)	51.97		%	54.85		%	53.46		%	52.01		%	51.72		%	(2.88)		0.25
Operating return on average assets (1)	1.23		%	1.27		%	0.74		%	1.24		%	1.33		%	(0.04)		(0.10)
Operating PPNR return on average assets (1)	1.94		%	1.82		%	2.01		%	2.10		%	2.12		%	0.12		(0.18)
Operating return on average common equity (1)	13.40		%	13.77		%	8.66		%	16.14		%	15.86		%	(0.37)		(2.46)
Operating return on average tangible common equity (1)	20.48		%	21.13		%	10.64		%	16.18		%	15.90		%	(0.65)		4.58

Average Balance Sheet Yields, Rates, & Ratios:
Yield on loans and leases	6.08		%	5.95		%	5.55		%	4.92		%	4.41		%	0.13		1.67
Yield on earning assets (2)	5.65		%	5.48		%	5.19		%	4.62		%	4.10		%	0.17		1.55
Cost of interest bearing deposits	2.01		%	1.64		%	1.32		%	0.77		%	0.23		%	0.37		1.78
Cost of interest bearing liabilities	2.72		%	2.45		%	1.82		%	1.05		%	0.39		%	0.27		2.33
Cost of total deposits	1.23		%	0.99		%	0.80		%	0.46		%	0.14		%	0.24		1.09
Cost of total funding (3)	1.81		%	1.61		%	1.16		%	0.65		%	0.23		%	0.20		1.58
Net interest margin (2)	3.91		%	3.93		%	4.08		%	4.01		%	3.88		%	(0.02)		0.03

Average interest bearing cash / Average interest earning assets	5.17		%	5.47		%	4.33		%	3.62		%	3.04		%	(0.30)		2.13
Average loans and leases / Average interest earning assets	75.64		%	75.18		%	80.96		%	85.32		%	84.54		%	0.46		(8.90)
Average loans and leases / Average total deposits	90.63		%	90.98		%	93.01		%	95.85		%	93.55		%	(0.35)		(2.92)
Average non-interest bearing deposits / Average total deposits	38.55		%	40.05		%	39.55		%	40.30		%	42.29		%	(1.50)		(3.74)
Average total deposits / Average total funding (3)	86.66		%	85.59		%	91.36		%	94.52		%	96.34		%	1.07		(9.68)

Select Credit & Capital Ratios:
Non-performing loans and leases to total loans and leases	0.28		%	0.22		%	0.20		%	0.22		%	0.20		%	0.06		0.08
Non-performing assets to total assets	0.20		%	0.15		%	0.14		%	0.18		%	0.16		%	0.05		0.04
Allowance for credit losses to loans and leases	1.18		%	1.15		%	1.18		%	1.21		%	1.16		%	0.03		0.02
Total risk-based capital ratio (4)	11.5		%	11.3		%	10.9		%	13.7		%	13.2		%	0.20		(1.70)
Common equity tier 1 risk-based capital ratio (4)	9.4		%	9.2		%	8.9		%	11.0		%	10.7		%	0.20		(1.30)


Columbia Banking System, Inc.
Financial Highlights
(Unaudited)
	Nine Months Ended						% Change
	Sep 30, 2023			Sep 30, 2022			Year over Year
Per Common Share Data: (4)
Dividends (4)	$	1.07		$	1.05		1.90	%

Performance Ratios:
Efficiency ratio (2)	65.87		%	58.05		%	7.82
Return on average assets	0.70		%	1.11		%	(0.41)
PPNR return on average assets (1)	1.38		%	1.70		%	(0.32)
Return on average common equity	7.77		%	12.94		%	(5.17)
Return on average tangible common equity (1)	11.21		%	12.98		%	(1.77)

Performance Ratios - Operating: (1)
Operating efficiency ratio (1), (2)	53.43		%	57.03		%	(3.60)
Operating return on average assets (1)	1.11		%	1.14		%	(0.03)
Operating PPNR return on average assets (1)	1.91		%	1.74		%	0.17
Operating return on average common equity (1)	12.34		%	13.28		%	(0.94)
Operating return on average tangible common equity (1)	17.80		%	13.32		%	4.48

Average Balance Sheet Yields, Rates, & Ratios:
Yield on loans and leases	5.88		%	4.06		%	1.82
Yield on earning assets (2)	5.46		%	3.62		%	1.84
Cost of interest bearing deposits	1.68		%	0.15		%	1.53
Cost of interest bearing liabilities	2.38		%	0.26		%	2.12
Cost of total deposits	1.02		%	0.09		%	0.93
Cost of total funding (3)	1.56		%	0.15		%	1.41
Net interest margin (2)	3.96		%	3.48		%	0.48

Average interest bearing cash / Average interest earning assets	5.05		%	5.87		%	(0.82)
Average loans and leases / Average interest earning assets	76.91		%	80.80		%	(3.89)
Average loans and leases / Average total deposits	91.42		%	89.21		%	2.21
Average non-interest bearing deposits / Average total deposits	39.28		%	41.89		%	(2.61)
Average total deposits / Average total funding (3)	87.53		%	96.61		%	(9.08)


Columbia Banking System, Inc.
Loan & Lease Portfolio Balances and Mix
(Unaudited)
	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			% Change
($ in thousands)	Amount			Amount			Amount			Amount			Amount			Seq. Quarter		Year over Year
Loans and leases:
Commercial real estate:
Non-owner occupied term, net	$	6,490,638		$	6,434,673		$	6,353,550		$	3,894,840		$	3,846,426		1	%	69	%
Owner occupied term, net	5,235,227			5,254,401			5,156,848			2,567,761			2,549,761			0	%	105	%
Multifamily, net	5,684,495			5,622,875			5,590,587			5,285,791			5,090,661			1	%	12	%
Construction & development, net	1,669,918			1,528,924			1,467,561			1,077,346			1,036,931			9	%	61	%
Residential development, net	354,922			388,641			440,667			200,838			205,935			(9)	%	72	%
Commercial:
Term, net	5,437,915			5,449,787			5,906,774			3,029,547			3,003,424			0	%	81	%
Lines of credit & other, net	2,353,548			2,268,790			2,184,762			960,054			914,507			4	%	157	%
Leases & equipment finance, net	1,728,991			1,740,037			1,746,267			1,706,172			1,669,817			(1)	%	4	%
Residential:
Mortgage, net	6,121,838			6,272,898			6,187,964			5,647,035			5,470,624			(2)	%	12	%
Home equity loans & lines, net	1,899,948			1,898,958			1,870,002			1,631,965			1,565,094			0	%	21	%
Consumer & other, net	193,158			189,315			186,298			154,632			154,771			2	%	25	%
Total loans and leases, net of deferred fees and costs	$	37,170,598		$	37,049,299		$	37,091,280		$	26,155,981		$	25,507,951		0	%	46	%




Loans and leases mix:
Commercial real estate:
Non-owner occupied term, net	17		%	17		%	16		%	15		%	15		%
Owner occupied term, net	14		%	14		%	14		%	10		%	10		%
Multifamily, net	15		%	15		%	15		%	20		%	20		%
Construction & development, net	4		%	4		%	4		%	4		%	4		%
Residential development, net	1		%	1		%	1		%	1		%	1		%
Commercial:
Term, net	15		%	15		%	16		%	12		%	12		%
Lines of credit & other, net	6		%	6		%	6		%	4		%	4		%
Leases & equipment finance, net	5		%	5		%	5		%	6		%	6		%
Residential:
Mortgage, net	17		%	17		%	17		%	21		%	21		%
Home equity loans & lines, net	5		%	5		%	5		%	6		%	6		%
Consumer & other, net	1		%	1		%	1		%	1		%	1		%
Total	100		%	100		%	100		%	100		%	100		%


Columbia Banking System, Inc.
Deposit Portfolio Balances and Mix
(Unaudited)
	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			% Change
($ in thousands)	Amount			Amount			Amount			Amount			Amount			Seq. Quarter		Year over Year
Deposits:
Demand, non-interest bearing	$	15,532,948		$	16,019,408		$	17,215,781		$	10,288,849		$	11,246,358		(3)	%	38	%
Demand, interest bearing	6,898,831			6,300,082			5,900,462			4,080,469			3,903,746			10	%	77	%
Money market	10,349,217			10,115,908			10,681,422			7,721,011			7,601,506			2	%	36	%
Savings	3,018,706			3,171,714			3,469,112			2,265,052			2,455,917			(5)	%	23	%
Time	5,824,666			5,227,805			4,319,570			2,710,231			1,609,580			11	%	262	%
Total	$	41,624,368		$	40,834,917		$	41,586,347		$	27,065,612		$	26,817,107		2	%	55	%

Total core deposits (1)	$	37,597,830		$	37,639,368		$	39,155,298		$	25,616,010		$	26,292,548		0	%	43	%

Deposit mix:
Demand, non-interest bearing	37		%	39		%	41		%	38		%	42		%
Demand, interest bearing	17		%	15		%	14		%	15		%	15		%
Money market	25		%	25		%	26		%	29		%	28		%
Savings	7		%	8		%	9		%	8		%	9		%
Time	14		%	13		%	10		%	10		%	6		%
Total	100		%	100		%	100		%	100		%	100		%


	Columbia Banking System, Inc.
	Credit Quality – Non-performing Assets
	(Unaudited)
		Quarter Ended															% Change
($ in thousands)		Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Seq. Quarter		Year over Year
Non-performing assets:
Loans and leases on non-accrual status:
	Commercial real estate, net	$	26,053		$	10,994		$	15,612		$	5,011		$	5,403		137	%	382	%
	Commercial, net	44,341			39,316			42,301			25,691			18,652			13	%	138	%
	Residential, net	—			—			—			—			—			nm		nm
	Consumer & other, net	—			—			—			—			—			nm		nm
	Total loans and leases on non-accrual status	70,394			50,310			57,913			30,702			24,055			40	%	193	%
Loans and leases past due 90+ days and accruing (1):
	Commercial real estate, net	71			184			1			1			1			(61)	%	nm
	Commercial, net	8,606			7,720			151			7,909			5,143			11	%	67	%
	Residential, net (1)	25,180			21,370			17,423			19,894			21,411			18	%	18	%
	Consumer & other, net	240			399			140			134			152			(40)	%	58	%
	Total loans and leases past due 90+ days and accruing (1)	34,097			29,673			17,715			27,938			26,707			15	%	28	%
Total non-performing loans and leases		104,491			79,983			75,628			58,640			50,762			31	%	106	%
Other real estate owned		1,170			278			409			203			—			321	%	nm
Total non-performing assets		$	105,661		$	80,261		$	76,037		$	58,843		$	50,762		32	%	108	%


Loans and leases past due 31-89 days		$	82,918		$	73,376		$	78,641		$	64,893		$	53,538		13	%	55	%
Loans and leases past due 31-89 days to total loans and leases		0.22		%	0.20		%	0.21		%	0.25		%	0.21		%	0.02		0.01
Non-performing loans and leases to total loans and leases (1)		0.28		%	0.22		%	0.20		%	0.22		%	0.20		%	0.06		0.08
Non-performing assets to total assets (1)		0.20		%	0.15		%	0.14		%	0.18		%	0.16		%	0.05		0.04
nm = not meaningful


	Columbia Banking System, Inc.
	Credit Quality – Allowance for Credit Losses
	(Unaudited)
		Quarter Ended															% Change
($ in thousands)		Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Seq. Quarter		Year over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period		$	404,603		$	417,464		$	301,135		$	283,065		$	261,111		(3)	%	55	%
Initial ACL recorded for PCD loans acquired during the period		—			—			26,492			—			—			nm		nm
Provision for credit losses on loans and leases (1)		35,082			15,216			106,498			30,580			28,542			131	%	23	%
Charge-offs
	Commercial real estate, net	—			(174)			—			(128)			—			nm		nm
	Commercial, net	(26,629)			(32,036)			(19,248)			(14,721)			(9,459)			(17)	%	182	%
	Residential, net	(206)			(4)			(248)			(53)			(4)			nm		nm
	Consumer & other, net	(1,884)			(1,264)			(773)			(906)			(929)			49	%	103	%
	Total charge-offs	(28,719)			(33,478)			(20,269)			(15,808)			(10,392)			(14)	%	176	%
Recoveries
	Commercial real estate, net	31			209			58			163			123			(85)	%	(75)	%
	Commercial, net	4,901			4,511			3,058			2,708			2,842			9	%	72	%
	Residential, net	156			63			123			24			249			148	%	(37)	%
	Consumer & other, net	506			618			369			403			590			(18)	%	(14)	%
	Total recoveries	5,594			5,401			3,608			3,298			3,804			4	%	47	%
Net (charge-offs) recoveries
	Commercial real estate, net	31			35			58			35			123			(11)	%	(75)	%
	Commercial, net	(21,728)			(27,525)			(16,190)			(12,013)			(6,617)			(21)	%	228	%
	Residential, net	(50)			59			(125)			(29)			245			(185)	%	(120)	%
	Consumer & other, net	(1,378)			(646)			(404)			(503)			(339)			113	%	306	%
	Total net charge-offs	(23,125)			(28,077)			(16,661)			(12,510)			(6,588)			(18)	%	251	%
Balance, end of period		$	416,560		$	404,603		$	417,464		$	301,135		$	283,065		3	%	47	%
Reserve for unfunded commitments
Balance, beginning of period		$	19,827		$	19,029		$	14,221		$	11,853		$	12,823		4	%	55	%
Initial ACL recorded for unfunded commitments acquired during the period		—			—			5,767			—			—			nm		nm
Provision (recapture) for credit losses on unfunded commitments		1,655			798			(959)			2,368			(970)			107	%	nm
Balance, end of period		21,482			19,827			19,029			14,221			11,853			8	%	81	%
Total Allowance for credit losses (ACL)		$	438,042		$	424,430		$	436,493		$	315,356		$	294,918		3	%	49	%

Net charge-offs to average loans and leases (annualized)		0.25		%	0.30		%	0.23		%	0.19		%	0.11		%	(0.05)		0.14
Recoveries to gross charge-offs		19.48		%	16.13		%	17.80		%	20.86		%	36.61		%	3.35		(17.13)
ACLLL to loans and leases		1.12		%	1.09		%	1.13		%	1.15		%	1.11		%	0.03		0.01
ACL to loans and leases		1.18		%	1.15		%	1.18		%	1.21		%	1.16		%	0.03		0.02
nm = not meaningful


Columbia Banking System, Inc.
Credit Quality – Allowance for Credit Losses
(Unaudited)
		Nine Months Ended						% Change
($ in thousands)		Sep 30, 2023			Sep 30, 2022			Year over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period		$	301,135		$	248,412		21	%


Initial ACL recorded for PCD loans acquired during the period		26,492			—			nm
Provision for credit losses on loans and leases (1)		156,796			53,025			196	%
Charge-offs
	Commercial real estate, net	(174)			(8)			nm
	Commercial, net	(77,913)			(26,352)			196	%
	Residential, net	(458)			(171)			168	%
	Consumer & other, net	(3,921)			(2,650)			48	%
	Total charge-offs	(82,466)			(29,181)			183	%
Recoveries
	Commercial real estate, net	298			221			35	%
	Commercial, net	12,470			8,321			50	%
	Residential, net	342			638			(46)	%
	Consumer & other, net	1,493			1,629			(8)	%
	Total recoveries	14,603			10,809			35	%
Net (charge-offs) recoveries
	Commercial real estate, net	124			213			(42)	%
	Commercial, net	(65,443)			(18,031)			263	%
	Residential, net	(116)			467			(125)	%
	Consumer & other, net	(2,428)			(1,021)			138	%
	Total net charge-offs	(67,863)			(18,372)			269	%
Balance, end of period		$	416,560		$	283,065		47	%
Reserve for unfunded commitments
Balance, beginning of period		$	14,221		$	12,767		11	%
Initial ACL recorded for unfunded commitments acquired during the period		5,767			—			nm
Provision (recapture) for credit losses on unfunded commitments		1,494			(914)			nm
Balance, end of period		21,482			11,853			81	%
Total Allowance for credit losses (ACL)		$	438,042		$	294,918		49	%

Net charge-offs to average loans and leases (annualized)		0.26		%	0.10		%	0.16
Recoveries to gross charge-offs		17.71		%	37.04		%	(19.33)


nm = not meaningful


Columbia Banking System, Inc.
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates
(Unaudited)
	Quarter Ended
	September 30, 2023						June 30, 2023						September 30, 2022
($ in thousands)	Average Balance		Interest Income or Expense		Average Yields or Rates		Average Balance		Interest Income or Expense		Average Yields or Rates		Average Balance		Interest Income or Expense		Average Yields or Rates
INTEREST-EARNING ASSETS:
Loans held for sale	$	199,855	$	1,741	3.49	%	$	46,794	$	682	5.83	%	$	173,397	$	2,205	5.09	%
Loans and leases (1)	37,050,518		567,929		6.08	%	37,169,315		551,997		5.95	%	24,886,203		276,625		4.41	%
Taxable securities	8,356,165		85,007		4.07	%	8,656,147		81,617		3.77	%	3,271,185		18,261		2.23	%
Non-taxable securities (2)	844,417		8,085		3.83	%	865,278		8,010		3.70	%	212,847		1,651		3.10	%
Temporary investments and interest-bearing cash	2,530,150		34,407		5.40	%	2,704,984		34,616		5.13	%	893,471		5,115		2.27	%
Total interest-earning assets	48,981,105		$	697,169	5.65	%	49,442,518		$	676,922	5.48	%	29,437,103		$	303,857	4.10	%
Goodwill and other intangible assets	1,684,093						1,718,705						6,343
Other assets	2,346,163						2,379,351						1,224,731
Total assets	$	53,011,361					$	53,540,574					$	30,668,177
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$	6,578,849	$	25,209	1.52	%	$	6,131,117	$	17,277	1.15	%	$	3,829,688	$	1,705	0.18	%
Money market deposits	10,249,028		50,039		1.94	%	10,362,495		41,703		1.60	%	7,550,791		5,817		0.31	%
Savings deposits	3,109,779		1,253		0.16	%	3,297,138		877		0.11	%	2,468,187		250		0.04	%
Time deposits	5,184,089		50,473		3.86	%	4,703,967		40,551		3.46	%	1,501,724		1,318		0.35	%
Total interest-bearing deposits	25,121,745		126,974		2.01	%	24,494,717		100,408		1.64	%	15,350,390		9,090		0.23	%
Repurchase agreements and federal funds purchased	268,444		1,220		1.80	%	284,347		1,071		1.51	%	509,559		545		0.42	%
Borrowings	5,603,207		77,080		5.46	%	6,187,363		81,004		5.25	%	90,475		798		3.50	%
Junior and other subordinated debentures	420,582		9,864		9.30	%	405,989		9,271		9.16	%	409,151		5,491		5.33	%
Total interest-bearing liabilities	31,413,978		$	215,138	2.72	%	31,372,416		$	191,754	2.45	%	16,359,575		$	15,924	0.39	%
Non-interest-bearing deposits	15,759,720						16,361,541						11,250,764
Other liabilities	970,688						871,378						490,572
Total liabilities	48,144,386						48,605,335						28,100,911
Common equity	4,866,975						4,935,239						2,567,266
Total liabilities and shareholders' equity	$	53,011,361					$	53,540,574					$	30,668,177
NET INTEREST INCOME (2)			$	482,031					$	485,168					$	287,933
NET INTEREST SPREAD					2.93	%					3.03	%					3.71	%
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)					3.91	%					3.93	%					3.88	%


Columbia Banking System, Inc.
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates
(Unaudited)
	Nine Months Ended
	September 30, 2023						September 30, 2022
($ in thousands)	Average Balance		Interest Income or Expense		Average Yields or Rates		Average Balance		Interest Income or Expense		Average Yields or Rates
INTEREST-EARNING ASSETS:
Loans held for sale	$	100,753	$	3,222	4.26	%	$	240,928	$	7,209	3.99	%
Loans and leases (1)	34,765,319		1,532,652		5.88	%	23,676,201		720,699		4.06	%
Taxable securities	7,336,862		207,072		3.76	%	3,445,386		54,412		2.11	%
Non-taxable securities (2)	717,064		20,163		3.75	%	222,375		5,098		3.06	%
Temporary investments and interest-bearing cash	2,283,461		87,604		5.13	%	1,718,832		9,387		0.73	%
Total interest-earning assets	45,203,459		$	1,850,713	5.46	%	29,303,722		$	796,805	3.62	%
Goodwill and other intangible assets	1,345,833						7,369
Other assets	2,159,775						1,229,936
Total assets	$	48,709,067					$	30,541,027
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits	$	5,829,737	$	52,301	1.20	%	$	3,846,202	$	2,813	0.10	%
Money market deposits	9,857,001		123,980		1.68	%	7,519,200		8,942		0.16	%
Savings deposits	3,032,653		2,686		0.12	%	2,433,651		654		0.04	%
Time deposits	4,371,643		112,028		3.43	%	1,623,742		4,612		0.38	%
Total interest-bearing deposits	23,091,034		290,995		1.68	%	15,422,795		17,021		0.15	%
Repurchase agreements and federal funds purchased	277,896		2,697		1.30	%	502,998		674		0.18	%
Borrowings	4,726,335		186,848		5.29	%	34,662		897		3.46	%
Junior and other subordinated debentures	414,855		27,605		8.90	%	394,803		12,641		4.28	%
Total interest-bearing liabilities	28,510,120		$	508,145	2.38	%	16,355,258		$	31,233	0.26	%
Non-interest-bearing deposits	14,937,028						11,115,618
Other liabilities	872,370						448,426
Total liabilities	44,319,518						27,919,302
Common equity	4,389,549						2,621,725
Total liabilities and shareholders' equity	$	48,709,067					$	30,541,027
NET INTEREST INCOME (2)			$	1,342,568					$	765,572
NET INTEREST SPREAD					3.08	%					3.36	%
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)					3.96	%					3.48	%


Columbia Banking System, Inc.
Residential Mortgage Banking Activity
(Unaudited)
	Quarter Ended															% Change
($ in thousands)	Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Seq. Quarter		Year over Year
Residential mortgage banking revenue:
Origination and sale	$	2,442		$	3,166		$	3,587		$	4,252		$	10,515		(23)	%	(77)	%
Servicing	8,887			9,167			9,397			9,184			9,529			(3)	%	(7)	%
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time	(4,801)			(4,797)			(4,881)			(4,986)			(4,978)			0	%	(4)	%
Changes due to valuation inputs or assumptions	5,308			(2,242)			(2,937)			(9,914)			16,403			nm		(68)	%
MSR hedge (loss) gain	(4,733)			(7,636)			2,650			(348)			(14,128)			(38)	%	(66)	%
Total	$	7,103		$	(2,342)		$	7,816		$	(1,812)		$	17,341		nm		(59)	%

Closed loan volume for-sale	$	103,333		$	119,476		$	131,726		$	216,833		$	396,979		(14)	%	(74)	%
Gain on sale margin	2.36		%	2.65		%	2.72		%	1.96		%	2.65		%	(0.29)		(0.29)

Residential mortgage servicing rights:
Balance, beginning of period	$	172,929		$	178,800		$	185,017		$	196,177		$	179,558		(3)	%	(4)	%
Additions for new MSR capitalized	1,658			1,168			1,601			3,740			5,194			42	%	(68)	%
Sale of MSR assets	(57,454)			—			—			—			—			nm		nm
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time	(4,801)			(4,797)			(4,881)			(4,986)			(4,978)			0	%	(4)	%
Changes due to valuation inputs or assumptions	5,308			(2,242)			(2,937)			(9,914)			16,403			nm		(68)	%
Balance, end of period	$	117,640		$	172,929		$	178,800		$	185,017		$	196,177		(32)	%	(40)	%

Residential mortgage loans serviced for others	$	8,240,950		$	12,726,615		$	12,914,046		$	13,020,189		$	12,997,911		(35)	%	(37)	%
MSR as % of serviced portfolio	1.43		%	1.36		%	1.38		%	1.42		%	1.51		%	0.07		(0.08)
nm = not meaningful


Columbia Banking System, Inc.
Residential Mortgage Banking Activity
(Unaudited)
	Nine Months Ended						% Change
($ in thousands)	Sep 30, 2023			Sep 30, 2022			Year over Year
Residential mortgage banking revenue:
Origination and sale	$	9,195		$	42,460		(78)	%
Servicing	27,451			28,174			(3)	%
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time	(14,479)			(15,286)			(5)	%
Changes due to valuation inputs or assumptions	129			67,451			(100)	%
MSR hedge loss	(9,719)			(14,128)			(31)	%
Total	$	12,577		$	108,671		(88)	%

Closed loan volume for-sale	$	354,535		$	1,622,633		(78)	%
Gain on sale margin	2.59		%	2.62		%	(0.03)

Residential mortgage servicing rights:
Balance, beginning of period	$	185,017		$	123,615		50	%
Additions for new MSR capitalized	4,427			20,397			(78)	%
Sale of MSR assets	(57,454)			—			nm
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time	(14,479)			(15,286)			(5)	%
Changes due to valuation inputs or assumptions	129			67,451			(100)	%
Balance, end of period	$	117,640		$	196,177		(40)	%
nm = not meaningful

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. 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
(Unaudited)
		Quarter Ended															% Change
($ in thousands, except per share data)		Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Seq. Quarter		Year over Year
Total shareholders' equity	a	$	4,632,162		$	4,828,188		$	4,884,723		$	2,479,826		$	2,417,514		(4)	%	92	%
Less: Goodwill		1,029,234			1,029,234			1,030,142			—			—			—	%	nm
Less: Other intangible assets, net		636,883			666,762			702,315			4,745			5,764			(4)	%	nm
Tangible common shareholders' equity	b	$	2,966,045		$	3,132,192		$	3,152,266		$	2,475,081		$	2,411,750		(5)	%	23	%



Total assets	c	$	51,989,593		$	53,592,096		$	53,994,226		$	31,848,639		$	31,471,960		(3)	%	65	%
Less: Goodwill		1,029,234			1,029,234			1,030,142			—			—			0	%	nm
Less: Other intangible assets, net		636,883			666,762			702,315			4,745			5,764			(4)	%	nm
Tangible assets	d	$	50,323,476		$	51,896,100		$	52,261,769		$	31,843,894		$	31,466,196		(3)	%	60	%
Common shares outstanding at period end (1)	e	208,575			208,514			208,429			129,321			129,320			0	%	61	%

Total shareholders' equity to total assets ratio	a / c	8.91		%	9.01		%	9.05		%	7.79		%	7.68		%	(0.10)		1.23
Tangible common equity ratio	b / d	5.89		%	6.04		%	6.03		%	7.77		%	7.66		%	(0.15)		(1.77)

Book value per common share (1)	a / e	$	22.21		$	23.16		$	23.44		$	19.18		$	18.69		(4)	%	19	%
Tangible book value per common share (1)	b / e	$	14.22		$	15.02		$	15.12		$	19.14		$	18.65		(5)	%	(24)	%

nm = not meaningful


Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
		Quarter Ended										% Change
($ in thousands)		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Seq. Quarter		Year over Year
Non-Interest Income Adjustments
Gain on sale of debt securities, net		$	4	$	—	$	—	$	—	$	—	nm		nm
(Loss) gain on equity securities, net		(2,055)		(697)		2,416		284		(2,647)		195	%	(22)	%
Gain (loss) on swap derivatives		5,700		1,288		(3,543)		(2,329)		4,194		343	%	36	%
Change in fair value of certain loans held for investment		(19,247)		(6,965)		9,488		4,192		(26,397)		176	%	(27)	%
Change in fair value of MSR due to valuation inputs or assumptions		5,308		(2,242)		(2,937)		(9,914)		16,403		nm		(68)	%
MSR hedge (loss) gain		(4,733)		(7,636)		2,650		(348)		(14,128)		(38)	%	(66)	%
Total non-interest income adjustments	a	$	(15,023)	$	(16,252)	$	8,074	$	(8,115)	$	(22,575)	(8)	%	(33)	%

Non-Interest Expense Adjustments
Merger related expense		$	18,938	$	29,649	$	115,898	$	11,637	$	769	(36)	%	nm
Exit and disposal costs		4,017		2,119		1,291		1,966		1,364		90	%	195	%
Total non-interest expense adjustments	b	$	22,955	$	31,768	$	117,189	$	13,603	$	2,133	(28)	%	nm

Net interest income	c	$	480,875	$	483,975	$	374,698	$	305,479	$	287,604	(1)	%	67	%

Non-interest income (GAAP)	d	$	43,981	$	39,678	$	54,735	$	34,879	$	29,445	11	%	49	%
Less: Non-interest income adjustments	a	15,023		16,252		(8,074)		8,115		22,575		(8)	%	(33)	%
Operating non-interest income (non-GAAP)	e	$	59,004	$	55,930	$	46,661	$	42,994	$	52,020	5	%	13	%

Revenue (GAAP)	f=c+d	$	524,856	$	523,653	$	429,433	$	340,358	$	317,049	—	%	66	%
Operating revenue (non-GAAP)	g=c+e	$	539,879	$	539,905	$	421,359	$	348,473	$	339,624	—	%	59	%

Non-interest expense (GAAP)	h	$	304,147	$	328,559	$	342,818	$	194,982	$	177,964	(7)	%	71	%
Less: Non-interest expense adjustments	b	(22,955)		(31,768)		(117,189)		(13,603)		(2,133)		(28)	%	nm
Operating non-interest expense (non-GAAP)	i	$	281,192	$	296,791	$	225,629	$	181,379	$	175,831	(5)	%	60	%

Net income (loss) (GAAP)	j	$	135,845	$	133,377	$	(14,038)	$	82,964	$	84,040	2	%	62	%
Provision (benefit) for income taxes		48,127		45,703		(4,886)		29,464		27,473		5	%	75	%
Income (loss) before provision for income taxes		183,972		179,080		(18,924)		112,428		111,513		3	%	65	%
Provision for credit losses		36,737		16,014		105,539		32,948		27,572		129	%	33	%
Pre-provision net revenue (PPNR) (non-GAAP)	k	220,709		195,094		86,615		145,376		139,085		13	%	59	%
Less: Non-interest income adjustments	a	15,023		16,252		(8,074)		8,115		22,575		(8)	%	(33)	%
Add: Non-interest expense adjustments	b	22,955		31,768		117,189		13,603		2,133		(28)	%	nm
Operating PPNR (non-GAAP)	l	$	258,687	$	243,114	$	195,730	$	167,094	$	163,793	6	%	58	%

Net income (loss) (GAAP)	j	$	135,845	$	133,377	$	(14,038)	$	82,964	$	84,040	2	%	62	%
Less: Non-interest income adjustments	a	15,023		16,252		(8,074)		8,115		22,575		(8)	%	(33)	%
Add: Non-interest expense adjustments	b	22,955		31,768		117,189		13,603		2,133		(28)	%	nm
Tax effect of adjustments		(9,482)		(11,981)		(23,565)		(5,459)		(6,116)		(21)	%	55	%
Operating net income (non-GAAP)	m	$	164,341	$	169,416	$	71,512	$	99,223	$	102,632	(3)	%	60	%
nm = not meaningful


Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
		Quarter Ended															% Change
($ in thousands, except per share data)		Sep 30, 2023			Jun 30, 2023			Mar 31, 2023			Dec 31, 2022			Sep 30, 2022			Seq. Quarter		Year over Year
Average assets	n	$	53,011,361		$	53,540,574		$	39,425,975		$	31,637,490		$	30,668,177		(1)	%	73	%
Less: Average goodwill and other intangible assets, net		1,684,093			1,718,705			623,042			5,298			6,343			(2)	%	nm
Average tangible assets	o	$	51,327,268		$	51,821,869		$	38,802,933		$	31,632,192		$	30,661,834		(1)	%	67	%

Average common shareholders' equity	p	$	4,866,975		$	4,935,239		$	3,349,761		$	2,438,639		$	2,567,266		(1)	%	90	%
Less: Average goodwill and other intangible assets, net		1,684,093			1,718,705			623,042			5,298			6,343			(2)	%	nm
Average tangible common equity	q	$	3,182,882		$	3,216,534		$	2,726,719		$	2,433,341		$	2,560,923		(1)	%	24	%

Weighted average basic shares outstanding (1)	r	208,070			207,977			156,383			129,321			129,319			0	%	61	%
Weighted average diluted shares outstanding (1)	s	208,645			208,545			156,383			129,801			129,733			0	%	61	%

Select Per-Share & Performance Metrics
Earnings-per-share - basic (1)	j / r	$	0.65		$	0.64		$	(0.09)		$	0.64		$	0.65		2	%	—	%
Earnings-per-share - diluted (1)	j / s	$	0.65		$	0.64		$	(0.09)		$	0.64		$	0.65		2	%	—	%
Efficiency ratio (2)	h / f	57.82		%	62.60		%	79.71		%	57.24		%	56.07		%	(4.78)		1.75
Return on average assets	j / n	1.02		%	1.00		%	(0.14)		%	1.04		%	1.09		%	0.02		(0.07)
Return on average tangible assets	j / o	1.05		%	1.03		%	(0.15)		%	1.04		%	1.09		%	0.02		(0.04)
PPNR return on average assets	k / n	1.65		%	1.46		%	0.89		%	1.82		%	1.80		%	0.19		(0.15)
Return on average common equity	j / p	11.07		%	10.84		%	(1.70)		%	13.50		%	12.99		%	0.23		(1.92)
Return on average tangible common equity	j / q	16.93		%	16.63		%	(2.09)		%	13.53		%	13.02		%	0.30		3.91

Operating Per-Share & Performance Metrics
Operating earnings-per-share - basic (1)	m / r	$	0.79		$	0.81		$	0.46		$	0.77		$	0.79		(2)	%	—	%
Operating earnings-per-share - diluted (1)	m / s	$	0.79		$	0.81		$	0.46		$	0.76		$	0.79		(2)	%	—	%
Operating efficiency ratio (2)	i / g	51.97		%	54.85		%	53.46		%	52.01		%	51.72		%	(2.88)		0.25
Operating return on average assets	m / n	1.23		%	1.27		%	0.74		%	1.24		%	1.33		%	(0.04)		(0.10)
Operating return on average tangible assets	m / o	1.27		%	1.31		%	0.75		%	1.24		%	1.33		%	(0.04)		(0.06)
Operating PPNR return on average assets	l / n	1.94		%	1.82		%	2.01		%	2.10		%	2.12		%	0.12		(0.18)
Operating return on average common equity	m / p	13.40		%	13.77		%	8.66		%	16.14		%	15.86		%	(0.37)		(2.46)
Operating return on average tangible common equity	m / q	20.48		%	21.13		%	10.64		%	16.18		%	15.90		%	(0.65)		4.58


Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
		Nine Months Ended				% Change
($ in thousands)		Sep 30, 2023		Sep 30, 2022		Year over Year
Non-Interest Income Adjustments
Gain on sale of debt securities, net		$	4	$	2	100	%
Loss on equity securities, net		(336)		(7,383)		(95)	%
Gain on swap derivatives		3,445		18,578		(81)	%
Change in fair value of certain loans held for investment		(16,724)		(62,656)		(73)	%
Change in fair value of MSR due to valuation inputs or assumptions		129		67,451		(100)	%
MSR hedge loss		(9,719)		(14,128)		(31)	%
Total non-interest income adjustments	a	$	(23,201)	$	1,864	nm

Non-Interest Expense Adjustments
Merger related expense		$	164,485	$	5,719	nm
Exit and disposal costs		7,427		4,839		53	%
Total non-interest expense adjustments	b	$	171,912	$	10,558	nm

Net interest income	c	$	1,339,548	$	764,537	75	%

Non-interest income (GAAP)	d	$	138,394	$	164,649	(16)	%
Less: Non-interest income adjustments	a	23,201		(1,864)		nm
Operating non-interest income (non-GAAP)	e	$	161,595	$	162,785	(1)	%

Revenue (GAAP)	f=c+d	$	1,477,942	$	929,186	59	%
Operating revenue (non-GAAP)	g=c+e	$	1,501,143	$	927,322	62	%

Non-interest expense (GAAP)	h	$	975,524	$	539,968	81	%
Less: Non-interest expense adjustments	b	(171,912)		(10,558)		nm
Operating non-interest expense (non-GAAP)	i	$	803,612	$	529,410	52	%

Net income (GAAP)	j	$	255,184	$	253,788	1	%
Provision for income taxes		88,944		84,362		5	%
Income before provision for income taxes		344,128		338,150		2	%
Provision for credit losses		158,290		51,068		210	%
Pre-provision net revenue (PPNR) (non-GAAP)	k	502,418		389,218		29	%
Less: Non-interest income adjustments	a	23,201		(1,864)		nm
Add: Non-interest expense adjustments	b	171,912		10,558		nm
Operating PPNR (non-GAAP)	l	$	697,531	$	397,912	75	%

Net income (GAAP)	j	$	255,184	$	253,788	1	%
Less: Non-interest income adjustments	a	23,201		(1,864)		nm
Add: Non-interest expense adjustments	b	171,912		10,558		nm
Tax effect of adjustments		(45,028)		(2,020)		nm
Operating net income (non-GAAP)	m	$	405,269	$	260,462	56	%
nm = not meaningful


Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
		Nine Months Ended						% Change
($ in thousands)		Sep 30, 2023			Sep 30, 2022			Year over Year
Average assets	n	$	48,709,067		$	30,541,027		59	%
Less: Average goodwill and other intangible assets, net		1,345,833			7,369			nm
Average tangible assets	o	$	47,363,234		$	30,533,658		55	%

Average common shareholders' equity	p	$	4,389,549		$	2,621,725		67	%
Less: Average goodwill and other intangible assets, net		1,345,833			7,369			nm
Average tangible common equity	q	$	3,043,716		$	2,614,356		16	%

Weighted average basic shares outstanding (1)	r	190,997			129,262			48	%
Weighted average diluted shares outstanding (1)	s	191,546			129,702			48	%

Select Per-Share & Performance Metrics
Earnings-per-share - basic (1)	j / r	$	1.34		$	1.96		(32)	%
Earnings-per-share - diluted (1)	j / s	$	1.33		$	1.96		(32)	%
Efficiency ratio (2)	h / f	65.87		%	58.05		%	7.82
Return on average assets	j / n	0.70		%	1.11		%	(0.41)
Return on average tangible assets	j / o	0.72		%	1.11		%	(0.39)
PPNR return on average assets	k/n	1.38		%	1.70		%	(0.32)
Return on average common equity	j / p	7.77		%	12.94		%	(5.17)
Return on average tangible common equity	j / q	11.21		%	12.98		%	(1.77)

Operating Per-Share & Performance Metrics
Operating earnings-per-share - basic (1)	m / r	$	2.12		$	2.01		5	%
Operating earnings-per-share - diluted (1)	m / s	$	2.12		$	2.01		5	%
Operating efficiency ratio (2)	i / g	53.43		%	57.03		%	(3.60)
Operating return on average assets	m / n	1.11		%	1.14		%	(0.03)
Operating return on average tangible assets	m / o	1.14		%	1.14		%	—
Operating PPNR return on average assets	l / n	1.91		%	1.74		%	0.17
Operating return on average common equity	m / p	12.34		%	13.28		%	(0.94)
Operating return on average tangible common equity	m / q	17.80		%	13.32		%	4.48


Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
		Quarter Ended										% Change
($ in thousands)		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Seq. Quarter		Year over Year
Loans and leases interest income	a	$	567,929	$	551,997	$	412,726	$	320,747	$	276,625	3	%	105	%
Less: Acquired loan accretion - rate related (2), (3)	b	28,963		30,548		11,832		387		789		(5)	%	nm

Less: Acquired loan accretion - credit related (3)	c	6,370		7,100		3,806		—		—		(10)	%	nm

Adjusted loans and leases interest income	d=a-b-c	$	532,596	$	514,349	$	397,088	$	320,360	$	275,836	4	%	93	%

Taxable securities interest income	e	$	85,007	$	81,617	$	40,448	$	18,290	$	18,261	4	%	366	%

Less: Acquired taxable securities accretion - rate related	f	39,219		34,801		15,356		—		—		13	%	nm
Adjusted Taxable securities interest income	g=e-f	$	45,788	$	46,816	$	25,092	$	18,290	$	18,261	(2)	%	151	%

Non-taxable securities interest income (1)	h	$	8,085	$	8,010	$	4,068	$	1,571	$	1,651	1	%	390	%

Less: Acquired non-taxable securities accretion - rate related	i	2,288		2,274		901		—		—		1	%	nm
Adjusted Taxable securities interest income (1)	j=h-i	$	5,797	$	5,736	$	3,167	$	1,571	$	1,651	1	%	251	%

Interest income (1)	k	$	697,169	$	676,922	$	476,622	$	352,530	$	303,857	3	%	129	%
Less: Acquired loan and securities accretion - rate related	l=b+f+i	70,470		67,623		28,089		387		789		4	%	nm
Less: Acquired loan accretion - credit related	c	6,370		7,100		3,806		—		—		(10)	%	nm
Adjusted interest income (1)	m=k-l-c	$	620,329	$	602,199	$	444,727	$	352,143	$	303,068	3	%	105	%

Interest-bearing deposits interest expense	n	$	126,974	$	100,408	$	63,613	$	31,174	$	9,090	26	%	nm
Less: Acquired deposit accretion	o	(373)		(280)		(93)		—		—		33	%	nm
Adjusted interest-bearing deposits interest expense	p=n-o	$	127,347	$	100,688	$	63,706	$	31,174	$	9,090	26	%	nm

Interest expense	q	$	215,138	$	191,754	$	101,253	$	46,768	$	15,924	12	%	nm
Less: Acquired interest-bearing liabilities accretion (2)	r	(430)		(337)		(150)		(57)		(57)		28	%	nm
Adjusted interest expense	s=q-r	$	215,568	$	192,091	$	101,403	$	46,825	$	15,981	12	%	nm

Net Interest Income (1)	t	$	482,031	$	485,168	$	375,369	$	305,762	$	287,933	(1)	%	67	%
Less: Acquired loan, securities, and interest-bearing liabilities accretion - rate related (3)	u=l-r	70,900		67,960		28,239		444		846		4	%	nm
Less: Acquired loan accretion - credit related (3)	c	6,370		7,100		3,806		—		—		(10)	%	nm
Adjusted net interest income (1)	v=t-u-c	$	404,761	$	410,108	$	343,324	$	305,318	$	287,087	(1)	%	41	%

Average loans and leases	aa	37,050,518		37,169,315		29,998,630		25,855,556		24,886,203		0	%	49	%
Average taxable securities	ab	8,356,165		8,656,147		4,960,966		3,042,044		3,271,185		(3)	%	155	%
Average non-taxable securities	ac	844,417		865,278		437,020		200,825		212,847		(2)	%	297	%
Average interest-earning assets	ad	48,981,105		49,442,518		37,055,705		30,305,129		29,437,103		(1)	%	66	%
Average interest-bearing deposits	ae	25,121,745		24,494,717		19,496,551		16,103,984		15,350,390		3	%	64	%
Average interest-bearing liabilities	af	31,413,978		31,372,416		22,548,264		17,668,730		16,359,575		0	%	92	%


Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
		Quarter Ended										% Change
($ in thousands)		Sep 30, 2023		Jun 30, 2023		Mar 31, 2023		Dec 31, 2022		Sep 30, 2022		Seq. Quarter	Year over Year
Average yield on loans and leases	a / aa	6.08	%	5.95	%	5.55	%	4.92	%	4.41	%	0.13	1.67

Less: Acquired loan accretion - rate related (2),(3)	b / aa	0.31	%	0.33	%	0.16	%	0.01	%	0.01	%	(0.02)	0.30

Less: Acquired loan accretion - credit related (3)	c / aa	0.07	%	0.08	%	0.05	%	—	%	—	%	(0.01)	0.07
Adjusted average yield on loans and leases	d / aa	5.70	%	5.54	%	5.34	%	4.91	%	4.40	%	0.16	1.30

Average yield on taxable securities	e / ab	4.07	%	3.77	%	3.26	%	2.40	%	2.23	%	0.30	1.84

Less: Acquired taxable securities accretion - rate related	f / ab	1.86	%	1.61	%	1.26	%	—	%	—	%	0.25	1.86
Adjusted average yield on taxable securities	g / ab	2.21	%	2.16	%	2.00	%	2.40	%	2.23	%	0.05	(0.02)

Average yield on non-taxable securities (1)	h / ac	3.83	%	3.70	%	3.72	%	3.13	%	3.10	%	0.13	0.73

Less: Acquired non-taxable securities accretion - rate related	i / ac	1.07	%	1.05	%	0.84	%	—	%	—	%	0.02	1.07
Adjusted yield on non-taxable securities (1)	j / ac	2.76	%	2.65	%	2.88	%	3.13	%	3.10	%	0.11	(0.34)

Average yield on interest-earning assets (1)	k / ad	5.65	%	5.48	%	5.19	%	4.62	%	4.10	%	0.17	1.55
Less: Acquired loan and securities accretion - rate related	l / ad	0.57	%	0.55	%	0.31	%	0.01	%	0.01	%	0.02	0.56
Less: Acquired loan accretion - credit related	c / ad	0.05	%	0.06	%	0.04	%	—	%	—	%	(0.01)	0.05
Adjusted average yield on interest-earning assets (1)	m / ad	5.03	%	4.87	%	4.84	%	4.61	%	4.09	%	0.16	0.94

Average rate on interest-bearing deposits	n / ae	2.01	%	1.64	%	1.32	%	0.77	%	0.23	%	0.37	1.78
Less: Acquired deposit accretion	o / ae	(0.01)	%	—	%	—	%	—	%	—	%	(0.01)	(0.01)
Adjusted average rate on interest-bearing deposits	p / ae	2.02	%	1.64	%	1.32	%	0.77	%	0.23	%	0.38	1.79

Average rate on interest-bearing liabilities	q / af	2.72	%	2.45	%	1.82	%	1.05	%	0.39	%	0.27	2.33
Less: Acquired interest-bearing liabilities accretion (2)	r / af	(0.01)	%	—	%	—	%	—	%	—	%	(0.01)	(0.01)
Adjusted average rate on interest-bearing liabilities	s / af	2.73	%	2.45	%	1.82	%	1.05	%	0.39	%	0.28	2.34

Net interest margin (1)	t / ad	3.91	%	3.93	%	4.08	%	4.01	%	3.88	%	(0.02)	0.03
Less: Acquired loan, securities, and interest-bearing liabilities accretion - rate related (3)	u / ad	0.58	%	0.55	%	0.31	%	—	%	0.01	%	0.03	0.57
Less: Acquired loan accretion - credit related (3)	c / ad	0.05	%	0.06	%	0.04	%	—	%	—	%	(0.01)	0.05
Adjusted net interest margin (1)	v / ad	3.28	%	3.32	%	3.73	%	4.01	%	3.87	%	(0.04)	(0.59)


Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
		Nine Months Ended
($ in thousands)		Sep 30, 2023		Sep 30, 2022		Year over Year
Loans and leases interest income	a	$	1,532,652	$	720,699	113	%
Less: Acquired loan accretion - rate related (2), (3)	b	71,343		3,290		nm

Less: Acquired loan accretion - credit related (3)	c	17,276		—		nm

Adjusted loans and leases interest income	d=a-b-c	$	1,444,033	$	717,409	101	%

Taxable securities interest income	e	$	207,072	$	54,412	281	%

Less: Acquired taxable securities accretion - rate related	f	89,376		—		nm
Adjusted Taxable securities interest income	g=e-f	$	117,696	$	54,412	116	%

Non-taxable securities interest income (1)	h	$	20,163	$	5,098	296	%

Less: Acquired non-taxable securities accretion - rate related	i	5,463		—		nm
Adjusted Taxable securities interest income (1)	j=h-i	$	14,700	$	5,098	188	%

Interest income (1)	k	$	1,850,713	$	796,805	132	%
Less: Acquired loan and securities accretion - rate related	l=b+f+i	166,182		3,290		nm
Less: Acquired loan accretion - credit related	c	17,276		—		nm
Adjusted interest income (1)	m=k-l-c	$	1,667,255	$	793,515	110	%

Interest-bearing deposits interest expense	n	$	290,995	$	17,021	nm
Less: Acquired deposit accretion	o	(746)		—		nm
Adjusted interest-bearing deposits interest expense	p=n-o	$	291,741	$	17,021	nm

Interest expense	q	$	508,145	$	31,233	nm
Less: Acquired interest-bearing liabilities accretion (2)	r	(917)		(171)		436	%
Adjusted interest expense	s=q-r	$	509,062	$	31,404	nm

Net Interest Income (1)	t	$	1,342,568	$	765,572	75	%
Less: Acquired loan, securities, and interest-bearing liabilities accretion - rate related (3)	u=l-r	167,099		3,461		nm
Less: Acquired loan accretion - credit related (3)	c	17,276		—		nm
Adjusted net interest income (1)	v=t-u-c	$	1,158,193	$	762,111	52	%

Average loans and leases	aa	34,765,319		23,676,201		47	%
Average taxable securities	ab	7,336,862		3,445,386		113	%
Average non-taxable securities	ac	717,064		222,375		222	%
Average interest-earning assets	ad	45,203,459		29,303,722		54	%
Average interest-bearing deposits	ae	23,091,034		15,422,795		50	%
Average interest-bearing liabilities	af	28,510,120		16,355,258		74	%


Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)

($ in thousands)		Sep 30, 2023		Sep 30, 2022		Year over Year
Average yield on loans and leases	a / aa	5.88	%	4.06	%	1.82

Less: Acquired loan accretion - rate related (2),(3)	b / aa	0.27	%	0.02	%	0.25

Less: Acquired loan accretion - credit related (3)	c / aa	0.07	%	—	%	0.07
Adjusted average yield on loans and leases	d / aa	5.54	%	4.04	%	1.50

Average yield on taxable securities	e / ab	3.76	%	2.11	%	1.65

Less: Acquired taxable securities accretion - rate related	f / ab	1.63	%	—	%	1.63
Adjusted average yield on taxable securities	g / ab	2.13	%	2.11	%	0.02

Average yield on non-taxable securities (1)	h / ac	3.75	%	3.06	%	0.69

Less: Acquired non-taxable securities accretion - rate related	i / ac	1.02	%	—	%	1.02
Adjusted yield on non-taxable securities (1)	j / ac	2.73	%	3.06	%	(0.33)

Average yield on interest-earning assets (1)	k / ad	5.46	%	3.62	%	1.84
Less: Acquired loan and securities accretion - rate related	l / ad	0.49	%	0.02	%	0.47
Less: Acquired loan accretion - credit related	c / ad	0.05	%	—	%	0.05
Adjusted average yield on interest-earning assets (1)	m / ad	4.92	%	3.60	%	1.32

Average rate on interest-bearing deposits	n / ae	1.68	%	0.15	%	1.53
Less: Acquired deposit accretion	o / ae	—	%	—	%	—
Adjusted average rate on interest-bearing deposits	p / ae	1.68	%	0.15	%	1.53

Average rate on interest-bearing liabilities	q / af	2.38	%	0.26	%	2.12
Less: Acquired interest-bearing liabilities accretion (2)	r / af	—	%	—	%	—
Adjusted average rate on interest-bearing liabilities	s / af	2.38	%	0.26	%	2.12

Net interest margin (1)	t / ad	3.96	%	3.48	%	0.48
Less: Acquired loan, securities, and interest-bearing liabilities accretion - rate related (3)	u / ad	0.49	%	0.02	%	0.47
Less: Acquired loan accretion - credit related (3)	c / ad	0.05	%	—	%	0.05
Adjusted net interest margin (1)	v / ad	3.42	%	3.46	%	(0.04)


			Third Quarter 2023 Results •Net income of $136 million, or $0.65 per diluted common share •Operating net income of $164 million, or $0.79 per diluted common share1 •Consolidated asset balances of $52 billion at quarter end •Loan balances of $37 billion and deposit balances of $42 billion at quarter end •Estimated CET1 and total capital ratios of 9.4% and 11.5% at quarter end


COLUMBIA BANKING SYSTEM, INC. REPORTS THIRD QUARTER 2023 RESULTS
$0.65	$0.79	$22.21	$14.22
Earnings per diluted common share	Operating earnings per diluted common share 1	Book value per common share	Tangible book value per common share 1


			TABLE INDEX
						Page
			Consolidated Statements of Operations			6
			Consolidated Balance Sheets			8
			Financial Highlights			9
			Loan & Lease Portfolio Balances and Mix			11
			Deposit Portfolio Balances and Mix			12
			Credit Quality - Non-performing Assets			13
			Credit Quality - Allowance for Credit Losses			14
			Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates			16
			Residential Mortgage Banking Activity			18

			GAAP to Non-GAAP Reconciliation			20