colb-20230426
0000887343false00008873432023-04-262023-04-26

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934
 
 
Date of Report: April 26, 2023
(Date of earliest event reported)
 
Columbia Banking System, Inc.
(Exact Name of Registrant as Specified in Its Charter)
 
 
Washington000-2028891-1422237
(State or Other Jurisdiction of Incorporation or Organization)
(Commission File Number)
(I.R.S. Employer Identification Number)
 
1301 A Street
Tacoma, Washington 98402-2156
(address of Principal Executive Offices)(Zip Code)
 
(253) 305-1900

(Registrant's Telephone Number, Including Area Code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ☐ ]    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ☐ ]    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ☐ ]    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ☐ ]    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
TITLE OF EACH CLASSTRADING SYMBOLNAME OF EXCHANGE
Common Stock, No Par ValueCOLBThe NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company [ ☐ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]





Item 2.02Results of Operations and Financial Condition.
 
On April 26, 2023, Columbia Banking System, Inc. issued a press release announcing first quarter 2023 financial results. The release is attached hereto as Exhibit 99.1. The information included in the press release is considered to be "furnished" under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Columbia Banking System, Inc. will include final financial statements and additional analyses for the quarter ended March 31, 2023 as part of its quarterly report on Form 10-Q covering that period.
 
Item 7.01Regulation FD Disclosure.
 
Columbia Banking System, Inc. is filing an investor slide presentation that it intends to review in conjunction with its earnings release conference call on April 26, 2023. The slides are included as Exhibit 99.2 to this report and shall not be deemed to be "filed" for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01Financial Statements and Exhibits.
(d)EXHIBITS
 
 
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
Columbia Banking System, Inc.
(Registrant)
 
Dated: April 26, 2023
By: /s/ Clint E. Stein  
      Clint E. Stein
      President and Chief Executive Officer  



EXHIBIT 99.1
First Quarter 2023 Results
•Net income of $(14) million, or $(0.09) per common share
•Operating net income of $72 million, or $0.46 per common share1
•Successfully closed merger with Umpqua Holdings Corporation and completed core systems conversion
•Consolidated asset balances increased $22 billion to $54 billion at quarter end
•Loan balances of $37 billion and deposit balances of $42 billion at quarter end
00
COLUMBIA BANKING SYSTEM, INC. REPORTS FIRST QUARTER 2023 RESULTS
$(0.09)$0.46$23.44$15.12
Net loss per diluted common share
Operating earnings per diluted common share 1
Book value per common share
Tangible book value per common share 1
0
CEO Commentary
"Today marks a historic moment for our franchise as we report results for Columbia Banking System and its subsidiary Umpqua Bank together as one company,” said Clint Stein, President and CEO. “Our first quarter results highlight a flexible balance sheet characterized by solid liquidity, a diversified loan portfolio, and a granular core deposit base. While purchase accounting adjustments such as the initial provision for credit losses and merger-related expenses impacted our reported results, I am pleased to announce we successfully completed our core systems conversion in March, keeping us on target to realize our cost-savings expectations by the end of the third quarter. It was a transformative quarter for our company, and I want to thank our associates for their tireless efforts helping customers and each other through the merger close and systems conversion.”
–Clint Stein, President and CEO of Columbia Banking System, Inc.
1Q23 HIGHLIGHTS (COMPARED TO 4Q22)
Net Interest Income and NIM
•Net interest income increased by $69 million or 23% on a quarter-to-quarter basis due to one month as a combined organization and the net favorable impact of higher interest rates.
•Net interest margin was 4.08%, up 7 basis points from the prior quarter. Net interest margin for the month of March was 4.31%, which includes a 76-basis point net benefit from purchase accounting accretion and amortization.
Non-Interest Income and Expense
•Non-interest income increased by $20 million due primarily to a $16 million linked-quarter favorable change related to cumulative non-merger fair value accounting and hedges.
•Non-interest expense increased by $148 million due to higher merger-related expenses and a higher expense run rate in March as a combined organization.
Credit Quality
•Net charge-offs were 0.23% of average loans and leases (annualized) and centered in the FinPac portfolio as activity was otherwise de minimis.
•Provision expense of $106 million includes an $88 million initial provision related to non-purchased credit deteriorated loan balances. The remaining expense relates to changes in the economic forecasts used in credit models.
•Non-performing assets to total assets was 0.14%.
Capital
•Estimated total risk-based capital ratio of 11.0% and estimated common equity tier 1 risk-based capital ratio of 8.9%.
•We expect the accretion of purchase accounting fair value marks through income to meaningfully and consistently build capital and enhance flexibility in the coming quarters.
Notable items
•Purchase accounting fair value adjustments related to credit of $130 million and interest rates of $1.6 billion at closing on historical Columbia loans and securities.
•$116 million in merger-related expenses, including a $20 million charitable contribution to the Umpqua Bank Charitable Foundation.
1Q23 KEY FINANCIAL DATA
PERFORMANCE METRICS
1Q23
4Q22
1Q22
Return on average assets(0.14)%1.04%1.21%
Return on average tangible common equity1
(2.09)%13.53%13.66%
Operating return on average assets1
0.74%1.24%1.03%
Operating return on average tangible common equity1
10.64%16.18%11.62%
Net interest margin4.08%4.01%3.14%
Efficiency ratio - consolidated79.71%57.24%59.02%
Loan to deposit ratio89.19%96.64%86.05%
INCOME STATEMENT
($ in 000s, excl. per share data)
1Q23
4Q22
1Q22
Net interest income$374,698$305,479$228,763
Provision for credit losses$105,539$32,948$4,804
Non-interest income$54,735$34,879$79,969
Non-interest expense$342,818$194,982$182,430
Pre-provision net revenue 1
$86,615$145,376$126,302
Operating pre-provision net revenue1
$195,730$167,094$108,125
Earnings per common share - diluted 2
($0.09)$0.64$0.70
Operating earnings per common share - diluted 1,2
$0.46$0.76$0.60
Dividends paid per share 2
$0.35$0.35$0.35
BALANCE SHEET
1Q23
4Q22
1Q22
Total assets$54.0 B$31.8 B$30.6 B
Loans and leases$37.1 B$26.2 B$23.0 B
Total deposits$41.6 B$27.1 B$26.7 B
Book value per common share 2
$23.44$19.18$20.17
Tangible book value per share1,2$15.12$19.14$20.11
Tangible book value per share, ex AOCI 1,2
$16.56$22.44$21.53

Investor Contact: Jacquelynne "Jacque" Bohlen, SVP/Investor Relations Director, 503-727-4117, [email protected]
1 "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for the comparable GAAP measurement.
2 Prior periods have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the merger of 0.5958.


Columbia Banking System, Inc. Reports First Quarter 2023 Results
April 26, 2023
Page 2
Organizational Update
On February 28, 2023, Columbia Banking System, Inc. ("Columbia", "we" or "our") 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 completed its core systems conversion on March 20, 2023, and branch consolidations are scheduled to occur through the second quarter of 2023.

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 quarter of 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.

Net Interest Income
Net interest income was $375 million for the first quarter of 2023, up $69 million from the prior quarter. The increase, which includes $32 million of purchase accounting accretion and amortization, reflects one month of the combined company's larger balance sheet as well as the net favorable impact of higher interest rates.

Columbia's net interest margin was 4.08% for the first quarter of 2023, up 7 basis points from 4.01% for the fourth quarter of 2022. The net interest margin for the month of March was 4.31%, which includes a 76-basis point net benefit from purchase accounting accretion and amortization and an approximate 10-basis point adverse impact from holding higher cash balances funded by borrowings beginning March 13, 2023. The cost of interest-bearing deposits increased 55 basis points on a linked-quarter basis to 1.32% for the first quarter of 2023, which compares to 1.33% for the month of March and 1.43% on March 31, 2023. Please refer to the Q1 2023 Earnings Presentation for additional net interest margin change details and interest rate sensitivity information as well as our non-GAAP disclosures in this press release for the impact of purchase accounting accretion and amortization on individual line items.

Non-interest Income
Non-interest income was $55 million for the first quarter of 2023, up $20 million from the prior quarter. While results benefited from one month as a combined organization, the increase was primarily driven by a $16 million favorable change in cumulative fair value adjustments and mortgage servicing rights ("MSR") hedging activity. A net fair value gain of $8.1 million in the first quarter compares to a net fair value loss of $8.1 million in the fourth quarter, as detailed in our non-GAAP disclosures.

Non-interest Expense
Non-interest expense was $343 million for the first quarter of 2023, up $148 million from the prior quarter level. The increase reflects one month of the higher expense rate of the combined organization as well as a $104 million linked-quarter increase in merger-related expenses, which were $116 million in the first quarter, inclusive of a $20 million contribution to the Umpqua Bank Charitable Foundation that was outlined when the merger was announced in October 2021. Please refer to the Q1 2023 Earnings Presentation for additional expense details, including an update on realized merger-related cost-savings through March 31, 2023.

Balance Sheet
Total consolidated assets were $54.0 billion as of March 31, 2023, an increase of $22.2 billion compared to $31.8 billion as of December 31, 2022. The increase was driven by the addition of historical Columbia balances at fair value on February 28, 2023, related intangible assets, and higher cash balances added in March that were funded by borrowings. Cash and cash equivalents was $3.6 billion as of March 31, 2023, an increase of $2.3 billion relative to December 31, 2022. Including secured off-balance sheet lines of credit, total available liquidity was $17.9 billion as of March 31, 2023, representing 33% of total assets, 43% of total deposits, and 121% of uninsured deposits. Please refer to the Q1 2023 Earnings Presentation for additional details related to our liquidity position.
 


Columbia Banking System, Inc. Reports First Quarter 2023 Results
April 26, 2023
Page 3
Available for sale securities, which are held on balance sheet at fair value, were $9.2 billion as of March 31, 2023, an increase of $6.1 billion relative to December 31, 2022, primarily due to the addition of $6.2 billion of historical Columbia balances, which were categorized as available for sale at quarter end. The net unrealized loss on historical Columbia securities was eliminated as of February 28, 2023, as part of the reverse merger method of accounting, and these securities had a pre-tax net unrealized gain of $84 million as of March 31, 2023. On a consolidated basis, our available for sale securities balance of $9.2 billion includes a pre-tax net unrealized loss of $397 million as historical UHC balances were not marked as part of the merger, and the net unrealized gain position associated with historical Columbia balances does not fully offset the net unrealized loss position related to the remainder of the consolidated portfolio. Held to maturity securities were $2.4 million at March 31, 2023, and represent investments in local community housing bonds; there is no unrealized loss associated with these balances.

Following the close of the merger, we restructured a portion of the historical Columbia securities portfolio during the first week of March by selling $1.2 billion of securities and purchasing $937 million of securities with the proceeds. The restructure transactions resulted in no gain or loss on the income statement. Purchases included agencies, mortgage-backed securities, and collateralized mortgage obligations with a projected average yield of 4.63%. The restructuring reduced the potential adverse impact to net interest income in a declining interest rate environment, which the Q1 2023 Earnings Presentation reviews.

Gross loans and leases were $37.1 billion as of March 31, 2023, an increase of $10.9 billion relative to December 31, 2022, due to the addition of $10.9 billion of historical Columbia balances at fair value. "On an organic basis, loans were up just slightly during the first quarter, as drawdowns related to single-family home construction offset slight declines in commercial portfolio balances," commented Tory Nixon, President of Umpqua Bank. Please refer to the Q1 2023 Earnings Presentation for additional details related to our loan portfolio, which include underwriting characteristics, the composition of our commercial portfolios, and enhanced disclosure related to our office portfolio.

Total deposits were $41.6 billion as of March 31, 2023, an increase of $14.5 billion relative to December 31, 2022, primarily due to the addition of $15.2 billion of historical Columbia balances at fair value. "Our deposit balances continued to be affected by market liquidity tightening and the impact of inflation on customer spending," stated Mr. Nixon. "Declining balances with existing customers was the primary driver of the net reduction in deposits during the month of March and for the first quarter on an organic basis. We were pleased to see continued new account acquisition in March in both the consumer and commercial bank across all major product types." Please refer to the Q1 2023 Earnings Presentation for additional details related to deposit characteristics and flows.
 
Credit Quality
The allowance for credit losses was $436 million, or 1.18% of loans and leases, as of March 31, 2023, compared to $315 million, or 1.21% of loans and leases, as of December 31, 2022. The $121 million increase in the allowance includes the addition of $26 million related to historical Columbia purchased credit deteriorated ("PCD") loans and $5.8 million related to historical Columbia off balance sheet commitments, which were booked at the merger's close and did not affect the income statement. The provision for credit losses was $106 million for the first quarter of 2023, which includes an initial provision of $88 million for historical Columbia non-PCD loans. Outside the initial provision, the quarter's expense was driven almost entirely by changes between the November 2022 and February 2023 economic forecasts used in credit models, with a modest expense associated with the change in mix. Please refer to the Q1 2023 Earnings Presentation for additional details related to the allowance for credit losses, including a breakout of the aforementioned impacts of the merger.

Net charge-offs were 0.23% of average loans and leases (annualized) for the first quarter of 2023, compared to 0.19% for the fourth quarter of 2022. Net charge-off activity continued to be centered in the FinPac portfolio as bank charge-off activity was de minimis. As of March 31, 2023, non-performing assets were $76 million, or 0.14% of total assets, compared to $59 million, or 0.18% as of December 31, 2022. The $17 million linked-quarter increase primarily reflects the addition of historical Columbia balances.


Columbia Banking System, Inc. Reports First Quarter 2023 Results
April 26, 2023
Page 4
Capital
As of March 31, 2023, Columbia's book value per common share increased to $23.44, compared to $19.18 at December 31, 2022, which was retrospectively restated under the reverse merger method of accounting. The linked-quarter change in book value primarily reflects common shares issued and exchanged as a result of the merger and a change in accumulated other comprehensive (loss) income ("AOCI") to $(300) million at March 31, 2023, compared to $(427) million at the prior quarter-end. The change in AOCI is due primarily to a reduction in the tax-effected net unrealized loss on available for sale securities to $295 million at March 31, 2023, compared to $403 million at December 31, 2022. Tangible book value per common share3 decreased to $15.12, compared to $19.14 at December 31, 2023 as a result of $1.0 billion of goodwill and $710 million of core deposit intangible assets added through the merger.

Columbia's estimated total risk-based capital ratio was 11.0% and its estimated common equity tier 1 risk-based capital ratio was 8.9% as of March 31, 2023. Columbia remains above current “well-capitalized” regulatory minimums. "While initial fair value marks drove the linked quarter decline in our regulatory capital ratios, we expect loan and investment securities discount accretion to contribute meaningfully to capital build over time," stated Ron Farnsworth, Chief Financial Officer of Columbia. The regulatory capital ratios as of March 31, 2023 are estimates, pending completion and filing of Columbia's regulatory reports.

Earnings Presentation and Conference Call Information
Columbia's Q1 2023 Earnings Presentation provides additional disclosure. A copy will be available on our investor relations page: www.columbiabankingsystem.com.

Columbia will host its first quarter 2023 earnings conference call on April 26, 2023, 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 first quarter 2023 financial results. Participants may register for the call using the below link to receive dial-in details and their own unique PINs or join the audiocast. It is recommended you join 10 minutes prior to the start time.

Register for the call: https://register.vevent.com/register/BI3ca3e280dadd437cafdf87ba3e2fcb28
Join the audiocast: https://edge.media-server.com/mmc/p/jtad2627
Access the replay through Columbia's investor relations page: www.columbiabankingsystem.com

About Columbia Banking System, Inc.
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.

3 "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for the comparable GAAP measurement.


Columbia Banking System, Inc. Reports First Quarter 2023 Results
April 26, 2023
Page 5
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 (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 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 merger when expected or at all; the possibility that the integration following the 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 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 the Columbia, market conditions, capital requirements, applicable law and regulations (including federal securities laws and federal banking regulations), and other factors deemed relevant by Columbia's Board of Directors, and may be subject to regulatory approval or conditions.


TABLE INDEX
Page


Columbia Banking System, Inc. Reports First Quarter 2023 Results
April 26, 2023
Page 6
Columbia Banking System, Inc.
Consolidated Statements of Operations
(Unaudited)
 Quarter Ended% Change
($ in thousands, except per share data)Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Seq.
Quarter		Year over Year
Interest income:     
Loans and leases$413,525 $322,350 $278,830 $234,674 $214,404 28 %93 %
Interest and dividends on investments: 
Taxable39,729 18,108 18,175 17,256 18,725 119 %112 %
Exempt from federal income tax3,397 1,288 1,322 1,369 1,372 164 %148 %
Dividends719 182 86 84 86 295 %nm
Temporary investments and interest bearing deposits18,581 10,319 5,115 2,919 1,353 80 %nm
Total interest income475,951 352,247 303,528 256,302 235,940 35 %102 %
Interest expense:     
Deposits63,613 31,174 9,090 4,015 3,916 104 %nm
Securities sold under agreement to repurchase and federal funds purchased406 323 545 66 63 26 %nm
Borrowings28,764 8,023 798 50 49 259 %nm
Junior and other subordinated debentures8,470 7,248 5,491 4,001 3,149 17 %169 %
Total interest expense101,253 46,768 15,924 8,132 7,177 117 %nm
Net interest income374,698 305,479 287,604 248,170 228,763 23 %64 %
Provision for credit losses105,539 32,948 27,572 18,692 4,804 220 %nm
Non-interest income:     
Service charges on deposits14,312 12,139 12,632 12,011 11,583 18 %24 %
Card-based fees11,561 9,017 9,115 10,530 8,708 28 %33 %
Financial services and trust revenue1,297 25 27 27 11 nmnm
Residential mortgage banking revenue (loss), net7,816 (1,812)17,341 30,544 60,786 nm(87)%
Gain on sale of debt securities, net— — — — 2 nm(100)%
Gain (loss) on equity securities, net2,416 284 (2,647)(2,075)(2,661)nmnm
Gain on loan and lease sales, net940 1,531 1,525 1,303 2,337 (39)%(60)%
BOLI income2,790 2,033 2,023 2,110 2,087 37 %34 %
Other income (loss) 13,603 11,662 (10,571)785 (2,884)17 %nm
Total non-interest income54,735 34,879 29,445 55,235 79,969 57 %(32)%
Non-interest expense:     
Salaries and employee benefits136,092 107,982 109,164 110,942 113,138 26 %20 %
Occupancy and equipment, net41,700 34,021 35,042 34,559 34,829 23 %20 %
Intangible amortization12,660 1,019 1,025 1,026 1,025 nmnm
FDIC assessments6,113 3,487 3,007 2,954 4,516 75 %35 %
Merger related expenses115,898 11,637 769 2,672 2,278 nmnm
Other expenses30,355 36,836 28,957 27,421 26,644 (18)%14 %
Total non-interest expense342,818 194,982 177,964 179,574 182,430 76 %88 %
(Loss) income before (benefit) provision for income taxes(18,924)112,428 111,513 105,139 121,498 (117)%(116)%
(Benefit) provision for income taxes(4,886)29,464 27,473 26,548 30,341 (117)%(116)%
Net (loss) income$(14,038)$82,964 $84,040 $78,591 $91,157 (117)%(115)%
Weighted average basic shares outstanding (1)
156,383 129,321 129,319 129,306 129,159 21  %21 %
Weighted average diluted shares outstanding (1)
156,383 129,801 129,733 129,673 129,693 20  %21  %
(Loss) earnings per common share – basic (1)
$(0.09)$0.64 $0.65 $0.61 $0.71 (114)%(113)%
(Loss) earnings per common share – diluted (1)
$(0.09)$0.64 $0.65 $0.61 $0.70 (114)%(113)%
nm = not meaningful     

(1) Prior periods have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the merger of 0.5958.



Columbia Banking System, Inc. Reports First Quarter 2023 Results
April 26, 2023
Page 7
Columbia Banking System, Inc.
Consolidated Balance Sheets
(Unaudited)
    % Change
($ in thousands, except per share data)Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Seq.
Quarter		Year over Year
Assets:     
Cash and due from banks$555,919 $327,313 $321,447 $315,348 $307,144 70 %81 %
Interest bearing cash and temporary investments3,079,266 967,330 1,232,412 687,233 2,358,292 218 %31 %
Investment securities:     
Equity and other, at fair value76,532 72,959 72,277 75,347 78,966 5 %(3)%
Available for sale, at fair value9,249,600 3,196,166 3,136,391 3,416,707 3,638,080 189 %154 %
Held to maturity, at amortized cost2,432 2,476 2,547 2,637 2,700 (2)%(10)%
Loans held for sale49,338 71,647 148,275 228,889 309,946 (31)%(84)%
Loans and leases37,091,280 26,155,981 25,507,951 24,432,678 22,975,761 42 %61 %
Allowance for credit losses on loans and leases(417,464)(301,135)(283,065)(261,111)(248,564)39 %68 %
Net loans and leases36,673,816 25,854,846 25,224,886 24,171,567 22,727,197 42 %61 %
Restricted equity securities246,525 47,144 40,993 10,867 10,889 423 %nm
Premises and equipment, net375,190 176,016 165,305 165,196 167,369 113 %124 %
Operating lease right-of-use assets127,296 78,598 81,729 87,249 87,333 62 %46 %
Goodwill1,030,142 — — — — nmnm
Other intangible assets, net702,315 4,745 5,764 6,789 7,815 nmnm
Residential mortgage servicing rights, at fair value178,800 185,017 196,177 179,558 165,807 (3)%8 %
Bank owned life insurance641,922 331,759 329,699 328,764 328,040 93 %96 %
Deferred tax asset, net351,229 132,823 128,120 70,134 39,051 164 %nm
Other assets653,904 399,800 385,938 389,409 408,497 64 %60 %
Total assets$53,994,226 $31,848,639 $31,471,960 $30,135,694 $30,637,126 70 %76 %
Liabilities:     
 Deposits
Non-interest bearing$17,215,781 $10,288,849 $11,246,358 $11,129,209 $11,058,251 67 %56 %
Interest bearing24,370,566 16,776,763 15,570,749 15,003,214 15,641,336 45 %56 %
  Total deposits41,586,347 27,065,612 26,817,107 26,132,423 26,699,587 54 %56 %
Securities sold under agreements to repurchase271,047 308,769 383,569 527,961 499,539 (12)%(46)%
Borrowings5,950,000 906,175 756,214 6,252 6,290 nmnm
Junior subordinated debentures, at fair value297,721 323,639 325,744 321,268 305,719 (8)%(3)%
Junior and other subordinated debentures, at amortized cost108,066 87,813 87,870 87,927 87,984 23 %23 %
Operating lease liabilities140,648 91,694 95,512 101,352 101,732 53 %38 %
Other liabilities755,674 585,111 588,430 440,235 328,677 29 %130 %
Total liabilities49,109,503 29,368,813 29,054,446 27,617,418 28,029,528 67 %75 %
Shareholders' equity:     
Common stock5,788,553 3,450,493 3,448,007 3,445,531 3,443,266 68 %68 %
Accumulated deficit(603,696)(543,803)(580,933)(619,108)(651,912)11 %(7)%
Accumulated other comprehensive loss(300,134)(426,864)(449,560)(308,147)(183,756)(30)%63 %
Total shareholders' equity4,884,723 2,479,826 2,417,514 2,518,276 2,607,598 97 %87 %
Total liabilities and shareholders' equity$53,994,226 $31,848,639 $31,471,960 $30,135,694 $30,637,126 70 %76 %
Common shares outstanding at period end (2)
208,429 129,321 129,320 129,318 129,269 61  %61  %
Book value per common share (2)
$23.44 $19.18 $18.69 $19.47 $20.17 22 %16 %
Tangible book value per common share (1),(2)
$15.12 $19.14 $18.65 $19.42 $20.11 (21)%(25)%
Tangible equity - common (1),(2)
$3,152,266 $2,475,081 $2,411,750 $2,511,487 $2,599,783 27 %21 %
Tangible common equity to tangible assets (1)
6.03 %7.77 %7.66 %8.34 %8.49 %(1.74)(2.46)
nm = not meaningful
(1) See GAAP to Non-GAAP Reconciliation.
(2) Prior periods have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the merger of 0.5958.


Columbia Banking System, Inc. Reports First Quarter 2023 Results
April 26, 2023
Page 8
Columbia Banking System, Inc.
Financial Highlights
(Unaudited)
 Quarter Ended% Change
 Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Seq. QuarterYear over Year
Per Common Share Data: (5)
Dividends (5)
$0.35 $0.35 $0.35 $0.35 $0.35 0 %0 %
Book value (5)
$23.44 $19.18 $18.69 $19.47 $20.17 22 %16 %
Tangible book value (1),(5)
$15.12 $19.14 $18.65 $19.42 $20.11 (21)%(25)%
Tangible book value, ex accumulated other comprehensive income (1),(5)
$16.56 $22.44 $22.13 $21.80 $21.53 (26)%(23)%
Performance Ratios:
Efficiency ratio79.71 %57.24 %56.07 %59.12 %59.02 %22.47 20.69 
Pre-provision net revenue ("PPNR") ROAA (1)
0.89 %1.82 %1.80 %1.64 %1.67 %(0.93)(0.78)
Return on average assets ("ROAA")(0.14)%1.04 %1.09 %1.04 %1.21 %(1.18)(1.35)
Return on average common equity(1.70)%13.50 %12.99 %12.20 %13.62 %(15.20)(15.32)
Return on average tangible common equity (1)
(2.09)%13.53 %13.02 %12.23 %13.66 %(15.62)(15.75)
Performance Ratios - Operating: (1)
Operating efficiency ratio (1)
53.46 %52.01 %51.72 %58.27 %62.02 %1.45 (8.56)
Operating PPNR return on average assets (1)
2.01 %2.10 %2.12 %1.66 %1.43 %(0.09)0.58 
Operating return on average assets (1)
0.74 %1.24 %1.33 %1.06 %1.03 %(0.50)(0.29)
Operating return on average common equity (1)
8.66 %16.14 %15.86 %12.46 %11.58 %(7.48)(2.92)
Operating return on average tangible common equity (1)
10.64 %16.18 %15.90 %12.49 %11.62 %(5.54)(0.98)
Average Balance Sheet Yields, Rates, & Ratios:     
Yield on loans and leases5.55 %4.92 %4.41 %3.94 %3.79 %0.63 1.76 
Yield on earning assets (2)
5.19 %4.62 %4.10 %3.53 %3.24 %0.57 1.95 
Cost of interest bearing deposits1.32 %0.77 %0.23 %0.11 %0.10 %0.55 1.22 
Cost of interest bearing liabilities1.82 %1.05 %0.39 %0.20 %0.18 %0.77 1.64 
Cost of total deposits0.80 %0.46 %0.14 %0.06 %0.06 %0.34 0.74 
Cost of total funding (3)
1.16 %0.65 %0.23 %0.12 %0.11 %0.51 1.05 
Net interest margin (2)
4.08 %4.01 %3.88 %3.41 %3.14 %0.07 0.94 
Average interest bearing cash / Average interest earning assets4.33 %3.62 %3.04 %5.71 %8.92 %0.71 (4.59)
Average loans and leases / Average interest earning assets80.96 %85.32 %84.54 %80.91 %76.85 %(4.36)4.11 
Average loans and leases / Average total deposits93.01 %95.85 %93.55 %89.23 %84.77 %(2.84)8.24 
Average non-interest bearing deposits / Average total deposits39.55 %40.30 %42.29 %42.00 %41.35 %(0.75)(1.80)
Average total deposits / Average total funding (3)
91.36 %94.52 %96.34 %96.66 %96.82 %(3.16)(5.46)
Select Credit & Capital Ratios:
Non-performing loans and leases to total loans and leases
0.20 %0.22 %0.20 %0.18 %0.18 %(0.02)0.02 
Non-performing assets to total assets
0.14 %0.18 %0.16 %0.15 %0.14 %(0.04)— 
Allowance for credit losses to loans and leases1.18 %1.21 %1.16 %1.12 %1.14 %(0.03)0.04 
Total risk-based capital ratio (4)
11.0 %13.7 %13.2 %13.5 %14.0 %(2.70)(3.00)
Common equity tier 1 risk-based capital ratio (4)
8.9 %11.0 %10.7 %11.0 %11.4 %(2.10)(2.50)

(1) See GAAP to Non-GAAP Reconciliation.
(2) Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate.
(3) Total funding = Total deposits + Total borrowings.
(4) Estimated holding company ratios.
(5) Prior periods have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the merger of 0.5958.


Columbia Banking System, Inc. Reports First Quarter 2023 Results
April 26, 2023
Page 9
Columbia Banking System, Inc.
Loan & Lease Portfolio Balances and Mix
(Unaudited)
Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022% Change
($ in thousands)AmountAmountAmountAmountAmountSeq. QuarterYear over Year
Loans and leases:     
Commercial real estate:   
Non-owner occupied term, net$6,353,550 $3,894,840 $3,846,426 $3,798,242 $3,884,784 63 %64 %
Owner occupied term, net5,156,848 2,567,761 2,549,761 2,497,553 2,327,899 101 %122 %
Multifamily, net5,590,587 5,285,791 5,090,661 4,768,273 4,323,633 6 %29 %
Construction & development, net1,467,561 1,077,346 1,036,931 1,017,297 940,286 36 %56 %
Residential development, net440,667 200,838 205,935 194,909 195,308 119 %126 %
Commercial:
Term, net5,906,774 3,029,547 3,003,424 2,904,861 2,772,206 95 %113 %
Lines of credit & other, net2,184,762 960,054 914,507 920,604 871,483 128 %151 %
Leases & equipment finance, net1,746,267 1,706,172 1,669,817 1,576,144 1,484,252 2 %18 %
Residential:
Mortgage, net6,187,964 5,647,035 5,470,624 5,168,457 4,748,266 10 %30 %
Home equity loans & lines, net1,870,002 1,631,965 1,565,094 1,415,722 1,250,702 15 %50 %
   Consumer & other, net186,298 154,632 154,771 170,616 176,942 20 %5 %
Total loans and leases, net of deferred fees and costs$37,091,280 $26,155,981 $25,507,951 $24,432,678 $22,975,761 42 %61 %
Loans and leases mix:
Commercial real estate:
   Non-owner occupied term, net16 %15 %15 %15 %17 %
   Owner occupied term, net14 %10 %10 %10 %10 %
   Multifamily, net15 %20 %20 %20 %19 %
Construction & development, net4 %4 %4 %4 %4 %
Residential development, net1 %1 %1 %1 %1 %
Commercial: 
Term, net16 %12 %12 %12 %12 %
Lines of credit & other, net6 %4 %4 %4 %4 %
Leases & equipment finance, net5 %6 %6 %6 %6 %
Residential: 
Mortgage, net17 %21 %21 %21 %21 %
Home equity loans & lines, net5 %6 %6 %6 %5 %
   Consumer & other, net1 %1 %1 %1 %1 %
Total100 %100 %100 %100 %100 %




Columbia Banking System, Inc. Reports First Quarter 2023 Results
April 26, 2023
Page 10
Columbia Banking System, Inc.
Deposit Portfolio Balances and Mix
(Unaudited)
Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022% Change
($ in thousands)AmountAmountAmountAmountAmountSeq. QuarterYear over Year
Deposits:     
Demand, non-interest bearing$17,215,781 $10,288,849 $11,246,358 $11,129,209 $11,058,251 67 %56 %
Demand, interest bearing5,900,462 4,080,469 3,903,746 3,723,650 3,955,329 45 %49 %
Money market10,681,422 7,721,011 7,601,506 7,284,641 7,572,581 38 %41 %
Savings3,469,112 2,265,052 2,455,917 2,446,876 2,429,073 53 %43 %
Time4,319,570 2,710,231 1,609,580 1,548,047 1,684,353 59 %156 %
Total$41,586,347 $27,065,612 $26,817,107 $26,132,423 $26,699,587 54 %56 %
Total core deposits (1)
$39,155,298 $25,616,010 $26,292,548 $25,619,500 $26,140,993 53 %50 %
Deposit mix:
Demand, non-interest bearing41 %38 %42 %43 %42 %
Demand, interest bearing14 %15 %15 %14 %15 %
Money market26 %29 %28 %28 %28 %
Savings9 %8 %9 %9 %9 %
Time10 %10 %6 %6 %6 %
Total100 %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. Reports First Quarter 2023 Results
April 26, 2023
Page 11
 
Columbia Banking System, Inc.
Credit Quality – Non-performing Assets
 (Unaudited)
 Quarter Ended% Change
($ in thousands)Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Seq. QuarterYear over Year
Non-performing assets:     
Loans and leases on non-accrual status:
Commercial real estate, net$15,612 $5,011 $5,403 $5,514 $5,950 212 %162 %
Commercial, net42,301 25,691 18,652 12,645 12,415 65 %241 %
Residential, net— — — — — nmnm
Consumer & other, net— — — — — nmnm
Total loans and leases on non-accrual status57,913 30,702 24,055 18,159 18,365 89 %215 %
Loans and leases past due 90+ days and accruing (1):
Commercial real estate, net1 1 1 23 1 0 %0 %
Commercial, net151 7,909 5,143 3,311 8 (98)%nm
Residential, net (1)
17,423 19,894 21,411 22,340 23,162 (12)%(25)%
Consumer & other, net140 134 152 196 111 4 %26 %
Total loans and leases past due 90+ days and accruing (1)
17,715 27,938 26,707 25,870 23,282 (37)%(24)%
Total non-performing loans and leases75,628 58,640 50,762 44,029 41,647 29 %82 %
Other real estate owned409 203 — 1,868 1,868 101 %(78)%
Total non-performing assets$76,037 $58,843 $50,762 $45,897 $43,515 29 %75 %
Loans and leases past due 31-89 days$78,641 $64,893 $53,538 $34,659 $42,409 21 %85 %
Loans and leases past due 31-89 days to total loans and leases0.21 %0.25 %0.21 %0.14 %0.18 %(0.04)0.03 
Non-performing loans and leases to total loans and leases (1)
0.20 %0.22 %0.20 %0.18 %0.18 %(0.02)0.02 
Non-performing assets to total assets (1)
0.14 %0.18 %0.16 %0.15 %0.14 %(0.04)— 
nm = not meaningful

(1) Excludes certain mortgage loans guaranteed by Ginnie Mae, which Columbia has the unilateral right to repurchase but has not done so, totaling $5.4 million, $6.6 million, $1.0 million, and $356,000 at March 31, 2023, December 31, 2022, September 30, 2022, and June 30, 2022, respectively.


Columbia Banking System, Inc. Reports First Quarter 2023 Results
April 26, 2023
Page 12

Columbia Banking System, Inc.
Credit Quality – Allowance for Credit Losses
(Unaudited)
Quarter Ended% Change
($ in thousands)Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Seq. QuarterYear over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period$301,135 $283,065 $261,111 $248,564 $248,412 6 %21 %
Initial ACL recorded for PCD loans acquired during the period26,492 — — — — nmnm
Provision for credit losses on loans and leases (1)
106,498 30,580 28,542 18,787 5,696 248 %nm
Charge-offs
Commercial real estate, net— (128)— (8)— nmnm
Commercial, net(19,248)(14,721)(9,459)(9,035)(7,858)31 %145 %
Residential, net(248)(53)(4)— (167)368 %49 %
Consumer & other, net(774)(906)(929)(836)(885)(15)%(13)%
Total charge-offs(20,270)(15,808)(10,392)(9,879)(8,910)28 %127 %
Recoveries
Commercial real estate, net58 163 123 73 25 (64)%132 %
Commercial, net3,058 2,708 2,842 2,934 2,545 13 %20 %
Residential, net124 24 249 216 173 417 %(28)%
Consumer & other, net369 403 590 416 623 (8)%(41)%
Total recoveries 3,609 3,298 3,804 3,639 3,366 9 %7 %
Net (charge-offs) recoveries
Commercial real estate, net58 35 123 65 25 66 %132 %
Commercial, net(16,190)(12,013)(6,617)(6,101)(5,313)35 %205 %
Residential, net(124)(29)245 216 6 328 %nm
Consumer & other, net(405)(503)(339)(420)(262)(19)%55 %
Total net charge-offs(16,661)(12,510)(6,588)(6,240)(5,544)33 %201 %
Balance, end of period$417,464 $301,135 $283,065 $261,111 $248,564 39 %68 %
Reserve for unfunded commitments
Balance, beginning of period$14,221 $11,853 $12,823 $12,918 $12,767 20 %11 %
Initial ACL recorded for unfunded commitments acquired during the period5,767 — — — — nmnm
(Recapture) provision for credit losses on unfunded commitments (959)2,368 (970)(95)151 (140)%nm
Balance, end of period19,029 14,221 11,853 12,823 12,918 34 %47 %
Total Allowance for credit losses (ACL)$436,493 $315,356 $294,918 $273,934 $261,482 38 %67 %
Net charge-offs to average loans and leases (annualized)0.23 %0.19 %0.11 %0.11 %0.10 %0.04 0.13 
Recoveries to gross charge-offs17.80 %20.86 %36.61 %36.84 %37.78 %(3.06)(19.98)
ACLLL to loans and leases1.13 %1.15 %1.11 %1.07 %1.08 %(0.02)0.05 
ACL to loans and leases1.18 %1.21 %1.16 %1.12 %1.14 %(0.03)0.04 
nm = not meaningful
(1) Includes $88.4 million initial provision related to non-PCD loans acquired during the period.


Columbia Banking System, Inc. Reports First Quarter 2023 Results
April 26, 2023
Page 13
Columbia Banking System, Inc.
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates
(Unaudited)
Quarter Ended
March 31, 2023December 31, 2022March 31, 2022
($ in thousands)Average BalanceInterest Income or ExpenseAverage Yields or RatesAverage BalanceInterest Income or ExpenseAverage Yields or RatesAverage BalanceInterest Income or ExpenseAverage Yields or Rates
INTEREST-EARNING ASSETS:      
Loans held for sale$54,008 $799 5.92 %$110,850 $1,603 5.79 %$286,307 $2,262 3.16 %
Loans and leases (1)
29,998,630 412,726 5.55 %25,855,556 320,747 4.92 %22,566,109 212,142 3.79 %
Taxable securities4,960,966 40,448 3.26 %3,042,044 18,290 2.40 %3,659,145 18,811 2.06 %
Non-taxable securities (2)
437,020 4,068 3.72 %200,825 1,571 3.13 %234,186 1,726 2.95 %
Temporary investments and interest-bearing cash1,605,081 18,581 4.69 %1,095,854 10,319 3.74 %2,618,528 1,353 0.21 %
Total interest-earning assets37,055,705 $476,622 5.19 %30,305,129 $352,530 4.62 %29,364,275 $236,294 3.24 %
Goodwill and other intangible assets623,042 5,298 8,407 
Other assets1,747,228 1,327,063 1,224,731 
Total assets$39,425,975 $31,637,490 $30,597,413 
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits$4,759,251 $9,815 0.84 %$4,005,643 $5,372 0.53 %$3,812,173 $498 0.05 %
Money market deposits8,845,784 32,238 1.48 %7,651,974 17,473 0.91 %7,640,810 1,408 0.07 %
Savings deposits2,686,388 556 0.08 %2,345,564 226 0.04 %2,405,958 205 0.03 %
Time deposits3,205,128 21,004 2.66 %2,100,803 8,103 1.53 %1,753,880 1,805 0.42 %
Total interest-bearing deposits19,496,551 63,613 1.32 %16,103,984 31,174 0.77 %15,612,821 3,916 0.10 %
Repurchase agreements and federal funds purchased281,032 406 0.59 %354,624 323 0.36 %486,542 63 0.05 %
Borrowings2,352,715 28,764 4.96 %796,414 8,023 4.00 %6,313 49 3.16 %
Junior and other subordinated debentures417,966 8,470 8.22 %413,708 7,248 6.95 %380,985 3,149 3.35 %
Total interest-bearing liabilities22,548,264 $101,253 1.82 %17,668,730 $46,768 1.05 %16,486,661 $7,177 0.18 %
Non-interest-bearing deposits12,755,080 10,870,842 11,007,034 
Other liabilities772,870 659,279 388,659 
Total liabilities36,076,214 29,198,851 27,882,354 
Common equity3,349,761 2,438,639 2,715,059 
Total liabilities and shareholders' equity$39,425,975 $31,637,490 $30,597,413 
NET INTEREST INCOME$375,369 $305,762 $229,117 
NET INTEREST SPREAD3.37 %3.57 %3.06 %
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)
4.08 %4.01 %3.14 %
(1)Non-accrual loans and leases are included in the average balance.   
(2)Tax-exempt income has been adjusted to a tax equivalent basis at a 21% tax rate. The amount of such adjustment was an addition to recorded income of approximately $671,000 for the three months ended March 31, 2023, as compared to $283,000 for the three months ended December 31, 2022 and $354,000 for the three months ended March 31, 2022. 



Columbia Banking System, Inc. Reports First Quarter 2023 Results
April 26, 2023
Page 14

Columbia Banking System, Inc.
Residential Mortgage Banking Activity
(Unaudited)
 Quarter Ended% Change
($ in thousands)Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Seq. QuarterYear over Year
Residential mortgage banking revenue:   
Origination and sale$3,587 $4,252 $10,515 $15,101 $16,844 (16)%(79)%
Servicing9,397 9,184 9,529 9,505 9,140 2 %3 %
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time(4,881)(4,986)(4,978)(4,961)(5,347)(2)%(9)%
Changes due to valuation inputs or assumptions(2,937)(9,914)16,403 10,899 40,149 (70)%(107)%
MSR hedge gain (loss) (1)
2,650 (348)(14,128)— — nmnm
Total$7,816 $(1,812)$17,341 $30,544 $60,786 nm(87)%
Closed loan volume for-sale$131,726 $216,833 $396,979 $576,532 $649,122 (39)%(80)%
Gain on sale margin2.72 %1.96 %2.65 %2.62 %2.59 %0.76 0.13 
Residential mortgage servicing rights:     
Balance, beginning of period$185,017 $196,177 $179,558 $165,807 $123,615 (6)%50 %
Additions for new MSR capitalized1,601 3,740 5,194 7,813 7,390 (57)%(78)%
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time(4,881)(4,986)(4,978)(4,961)(5,347)(2)%(9)%
Changes due to valuation inputs or assumptions (2,937)(9,914)16,403 10,899 40,149 (70)%(107)%
Balance, end of period$178,800 $185,017 $196,177 $179,558 $165,807 (3)%8 %
Residential mortgage loans serviced for others$12,911,341 $13,020,189 $12,997,911 $12,932,747 $12,810,574 (1)%1 %
MSR as % of serviced portfolio1.38 %1.42 %1.51 %1.39 %1.29 %(0.04)0.09 

(1) MSR hedges were put in place during the three months ended September 30, 2022.




Columbia Banking System, Inc. Reports First Quarter 2023 Results
April 26, 2023
Page 15
Columbia Banking System, Inc.
Purchase Price Allocation(1)
(Unaudited)
($ in thousands)
February 28, 2023
Purchase price consideration
Total merger consideration$2,337,632 
Fair value of assets acquired:
Cash and due from banks$274,587 
Equity and other1,288 
Available for sale4,516,574 
Held to maturity1,707,409 
Loans held for sale2,358 
Loans and leases10,884,106 
Restricted equity securities101,760 
Premises and equipment203,270 
Other intangible assets710,230 
Deferred tax assets253,481 
Other assets571,753 
Total assets acquired$19,226,816 
Fair value of liabilities assumed:
Deposits$15,193,474 
Securities sold under agreements to repurchase70,025 
Borrowings2,294,360 
Junior and other subordinated debentures20,310 
Other liabilities341,157 
Total liabilities assumed$17,919,326 
Net assets acquired$1,307,490 
Goodwill$1,030,142 

(1) The estimates of fair value were recorded based on initial valuations available at February 28, 2023 (the "Merger Date") and these estimates, including initial accounting for deferred taxes, were considered preliminary as of March 31, 2023 and subject to adjustment for up to one year after the Merger Date.


Columbia Banking System, Inc. Reports First Quarter 2023 Results
April 26, 2023
Page 16
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. 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)Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Seq. QuarterYear over Year
Total shareholders' equitya$4,884,723 $2,479,826 $2,417,514 $2,518,276 $2,607,598 97 %87 %
Less: Goodwill1,030,142 — — — — nmnm
Less: Other intangible assets, net702,315 4,745 5,764 6,789 7,815 nmnm
Tangible common shareholders' equityb$3,152,266 $2,475,081 $2,411,750 $2,511,487 $2,599,783 27 %21 %
Less: Accumulated other comprehensive (loss) income (AOCI)$(300,134)(426,864)(449,560)(308,147)(183,756)(30)%63 %
Tangible common shareholders' equity, ex AOCIc$3,452,400 $2,901,945 $2,861,310 $2,819,634 $2,783,539 19 %24 %
Total assetsd$53,994,226 $31,848,639 $31,471,960 $30,135,694 $30,637,126 70 %76 %
Less: Goodwill1,030,142 — — — — nmnm
Less: Other intangible assets, net702,315 4,745 5,764 6,789 7,815 nmnm
Tangible assetse$52,261,769 $31,843,894 $31,466,196 $30,128,905 $30,629,311 64 %71 %
Common shares outstanding at period end (1)
f208,429 129,321 129,320 129,318 129,269 61 %61 %
Total shareholders' equity to total assets ratioa / d9.05 %7.79 %7.68 %8.36 %8.51 %1.26 0.54 
Tangible common equity ratiob / e6.03 %7.77 %7.66 %8.34 %8.49 %(1.74)(2.46)
Tangible common equity ratio, ex AOCIc / e6.61 %9.11 %9.09 %9.36 %9.09 %(2.50)(2.48)
Book value per common share (1)
a / f$23.44 $19.18 $18.69 $19.47 $20.17 22 %16 %
Tangible book value per common share (1)
b / f$15.12 $19.14 $18.65 $19.42 $20.11 (21)%(25)%
Tangible book value per common share, ex AOCI (1)
c / f$16.56 $22.44 $22.13 $21.80 $21.53 (26)%(23)%
nm = not meaningful
(1) Prior periods have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the merger of 0.5958.
 



Columbia Banking System, Inc. Reports First Quarter 2023 Results
April 26, 2023
Page 17

 
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Quarter Ended% Change
($ in thousands)Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Seq. QuarterYear over Year
Non-Interest Income Adjustments
Gain on sale of debt securities, net$— $— $— $— $2 nm(100)%
Gain (loss) on equity securities, net2,416 284 (2,647)(2,075)(2,661)nmnm
(Loss) gain on swap derivatives(3,543)(2,329)4,194 7,337 7,047 52 %(150)%
Change in fair value of certain loans held for investment9,488 4,192 (26,397)(15,210)(21,049)126 %nm
Change in fair value of MSR due to valuation inputs or assumptions(2,937)(9,914)16,403 10,899 40,149 (70)%(107)%
MSR hedge gain (loss)2,650 (348)(14,128)— — nmnm
Total non-interest income adjustmentsa$8,074 $(8,115)$(22,575)$951 $23,488 nm(66)%
Non-Interest Expense Adjustments
Merger related expenses$115,898 $11,637 $769 $2,672 $2,278 nmnm
Exit and disposal costs1,291 1,966 1,364 442 3,033 (34)%(57)%
Total non-interest expense adjustmentsb$117,189 $13,603 $2,133 $3,114 $5,311 nmnm
Net interest income (1)
c$375,369 $305,762 $287,933 $248,522 $229,117 23 %64 %
Non-interest income (GAAP)d$54,735 $34,879 $29,445 $55,235 $79,969 57 %(32)%
Less: Non-interest income adjustmentsa(8,074)8,115 22,575 (951)(23,488)(199)%(66)%
Operating non-interest income (non-GAAP)e$46,661 $42,994 $52,020 $54,284 $56,481 9 %(17)%
Revenue (GAAP) (1)
f=c+d$430,104 $340,641 $317,378 $303,757 $309,086 26 %39 %
Operating revenue (non-GAAP) (1)
g=c+e$422,030 $348,756 $339,953 $302,806 $285,598 21 %48 %
Non-interest expense (GAAP)h$342,818 $194,982 $177,964 $179,574 $182,430 76 %88 %
Less: Non-interest expense adjustmentsb(117,189)(13,603)(2,133)(3,114)(5,311)nmnm
Operating non-interest expense (non-GAAP)i$225,629 $181,379 $175,831 $176,460 $177,119 24 %27 %
Net (loss) income (GAAP)j$(14,038)$82,964 $84,040 $78,591 $91,157 (117)%(115)%
(Benefit) provision for income taxes(4,886)29,464 27,473 26,548 30,341 (117)%(116)%
(Loss) income before provision for income taxes(18,924)112,428 111,513 105,139 121,498 (117)%(116)%
Provision for credit losses105,539 32,948 27,572 18,692 4,804 220 %nm
Pre-provision net revenue (PPNR) (non-GAAP)k86,615 145,376 139,085 123,831 126,302 (40)%(31)%
Less: Non-interest income adjustmentsa(8,074)8,115 22,575 (951)(23,488)(199)%(66)%
Add: Non-interest expense adjustmentsb117,189 13,603 2,133 3,114 5,311 nmnm
Operating PPNR (non-GAAP)l$195,730 $167,094 $163,793 $125,994 $108,125 17 %81 %
Net (loss) income (GAAP)j$(14,038)$82,964 $84,040 $78,591 $91,157 (117)%(115)%
Less: Non-interest income adjustmentsa(8,074)8,115 22,575 (951)(23,488)(199)%(66)%
Add: Non-interest expense adjustmentsb117,189 13,603 2,133 3,114 5,311 nmnm
Tax effect of adjustments(23,565)(5,459)(6,116)(480)4,576 332 %nm
Operating net income (non-GAAP)m$71,512 $99,223 $102,632 $80,274 $77,556 (28)%(8)%
nm = not meaningful
 
(1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate.



Columbia Banking System, Inc. Reports First Quarter 2023 Results
April 26, 2023
Page 18
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Quarter Ended% Change
($ in thousands, except per share data)Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Seq. QuarterYear over Year
Average assetsn$39,425,975 $31,637,490 $30,668,177 $30,356,903 $30,597,413 25 %29 %
Less: Average goodwill and other intangible assets, net623,042 5,298 6,343 7,379 8,407 nmnm
Average tangible assetso$38,802,933 $31,632,192 $30,661,834 $30,349,524 $30,589,006 23 %27 %
Average common shareholders' equityp$3,349,761 $2,438,639 $2,567,266 $2,584,836 $2,715,059 37 %23 %
Less: Average goodwill and other intangible assets, net623,042 5,298 6,343 7,379 8,407 nmnm
Average tangible common equityq$2,726,719 $2,433,341 $2,560,923 $2,577,457 $2,706,652 12 %1 %
Weighted average basic shares outstanding (1)
r156,383 129,321 129,319 129,306 129,159 21 %21 %
Weighted average diluted shares outstanding (1)
s156,383 129,801 129,733 129,673 129,693 20 %21 %
Select Per-Share & Performance Metrics
Earnings-per-share - basic (1)
j / r$(0.09)$0.64 $0.65 $0.61 $0.71 (114)%(113)%
Earnings-per-share - diluted (1)
j / s$(0.09)$0.64 $0.65 $0.61 $0.70 (114)%(113)%
Efficiency ratioh / f79.71 %57.24 %56.07 %59.12 %59.02 %22.47 20.69 
PPNR return on average assetsk / n0.89 %1.82 %1.80 %1.64 %1.67 %(0.93)(0.78)
Return on average assetsj / n(0.14)%1.04 %1.09 %1.04 %1.21 %(1.18)(1.35)
Return on average tangible assetsj / o(0.15)%1.04 %1.09 %1.04 %1.21 %(1.19)(1.36)
Return on average common equityj / p(1.70)%13.50 %12.99 %12.20 %13.62 %(15.20)(15.32)
Return on average tangible common equityj / q(2.09)%13.53 %13.02 %12.23 %13.66 %(15.62)(15.75)
Operating Per-Share & Performance Metrics
Operating earnings-per-share - basic (1)
m / r$0.46 $0.77 $0.79 $0.62 $0.60 (40)%(23)%
Operating earnings-per-share - diluted (1)
m / s$0.46 $0.76 $0.79 $0.62 $0.60 (39)%(23)%
Operating efficiency ratioi / g53.46 %52.01 %51.72 %58.27 %62.02 %1.45 (8.56)
Operating PPNR return on average assetsl / n2.01 %2.10 %2.12 %1.66 %1.43 %(0.09)0.58 
Operating return on average assetsm / n0.74 %1.24 %1.33 %1.06 %1.03 %(0.50)(0.29)
Operating return on average tangible assetsm / o0.75 %1.24 %1.33 %1.06 %1.03 %(0.49)(0.28)
Operating return on average common equitym / p8.66 %16.14 %15.86 %12.46 %11.58 %(7.48)(2.92)
Operating return on average tangible common equitym / q10.64 %16.18 %15.90 %12.49 %11.62 %(5.54)(0.98)
(1) Prior periods have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the merger of 0.5958.



Columbia Banking System, Inc. Reports First Quarter 2023 Results
April 26, 2023
Page 19
 
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Quarter Ended% Change
($ in thousands)Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Seq. QuarterYear over Year
Loans and leases interest incomea$412,726 $320,747 $276,625 $231,932 $212,142 29 %95 %
Less: Acquired loan accretion - rate related (2), (3)
b11,832 387 789 1,069 1,432 nmnm
Less: Acquired loan accretion - credit related (3)
c3,806 — — — — nmnm
Adjusted loans and leases interest incomed=a-b-c$397,088 $320,360 $275,836 $230,863 $210,710 24 %88 %
Taxable securities interest incomee40,448 18,290 18,261 17,340 18,811 121 %115 %
Less: Acquired taxable securities accretion - rate relatedf15,356 — — — — nmnm
Adjusted Taxable securities interest incomeg=e-f$25,092 $18,290 $18,261 $17,340 $18,811 37 %33 %
Non-taxable securities interest income (1)
h4,068 1,571 1,651 1,721 1,726 159 %136 %
Less: Acquired non-taxable securities accretion - rate relatedi901 — — — — nmnm
Adjusted Taxable securities interest income (1)
j=h-i$3,167 $1,571 $1,651 $1,721 $1,726 102 %83 %
Interest income (1)
k$476,622 $352,530 $303,857 $256,654 $236,294 35 %102 %
Less: Acquired loan and securities accretion - rate relatedl=b+f+i28,089 387 789 1,069 1,432 nmnm
Less: Acquired loan accretion - credit relatedc3,806 — — — — nmnm
Adjusted interest income (1)
m=k-l-c$444,727 $352,143 $303,068 $255,585 $234,862 26 %89 %
Interest-bearing deposits interest expensen63,613 31,174 9,090 4,015 3,916 104 %nm
Less: Acquired deposit accretiono(93)— — — — nmnm
Adjusted interest-bearing deposits interest expensep=n-o$63,706 $31,174 $9,090 $4,015 $3,916 104 %nm
Interest expenseq101,253 46,768 15,924 8,132 7,177 117 %nm
Less: Acquired interest-bearing liabilities accretion (2)
r(150)(57)(57)(57)(57)163 %163 %
Adjusted interest expenses=q-r$101,403 $46,825 $15,981 $8,189 $7,234 117 %nm
Net Interest Income (1)
t$375,369 $305,762 $287,933 $248,522 $229,117 23 %64 %
Less: Acquired loan, securities, and interest-bearing liabilities accretion - rate relatedu=l-r27,939 330 732 1,012 1,375 nmnm
Less: Acquired loan accretion - credit relatedc3,806 — — — — nmnm
Adjusted interest income (1)
v=t-u-c$343,624 $305,432 $287,201 $247,510 $227,742 13 %51 %
Average loans and leasesaa29,998,630 25,855,556 24,886,203 23,550,796 22,566,109 16 %33 %
Average taxable securitiesab4,960,966 3,042,044 3,271,185 3,410,091 3,659,145 63 %36 %
Average non-taxable securitiesac437,020 200,825 212,847 220,327 234,186 118 %87 %
Average interest-earning assetsad37,055,705 30,305,129 29,437,103 29,108,988 29,364,275 22 %26 %
Average interest-bearing depositsae19,496,551 16,103,984 15,350,390 15,308,058 15,612,821 21 %25 %
Average interest-bearing liabilitiesaf22,548,264 17,668,730 16,359,575 16,220,936 16,486,661 28 %37 %

(1)Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate.
(2)Includes discount accretion related to UHC's 2014 acquisition of Sterling Financial Corporation.
(3)The cumulative fair value discount on historical Columbia loans was established as of February 28, 2023, and the allocation between the credit-related discount and the rate-related discount was established at that time. Our disclosure of credit-related and rate-related discount accretion is an estimate based on the relative allocation of these two items to the discount at closing. 


Columbia Banking System, Inc. Reports First Quarter 2023 Results
April 26, 2023
Page 20
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Quarter Ended% Change
($ in thousands)Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Mar 31, 2022Seq. QuarterYear over Year
Average yield on loans and leasesa / aa5.55 %4.92 %4.41 %3.94 %3.79 %0.63 1.76 
Less: Acquired loan accretion - rate related (2),(3)
b / aa0.16 %0.01 %0.01 %0.02 %0.03 %0.15 0.13 
Less: Acquired loan accretion - credit related (3)
c / aa0.05 %— %— %— %— %0.05 0.05 
Adjusted average yield on loans and leasesd / aa5.34 %4.91 %4.40 %3.92 %3.76 %0.43 1.58 
Average yield on taxable securitiese / ab3.26 %2.40 %2.23 %2.03 %2.06 %0.86 1.20 
Less: Acquired taxable securities accretion - rate relatedf / ab1.26 %— %— %— %— %1.26 1.26 
Adjusted average yield on taxable securitiesg / ab2.00 %2.40 %2.23 %2.03 %2.06 %(0.40)(0.06)
Average yield on non-taxable securities (1)
h / ac3.72 %3.13 %3.10 %3.13 %2.95 %0.59 0.77 
Less: Acquired non-taxable securities accretion - rate relatedi / ac0.84 %— %— %— %— %0.84 0.84 
Adjusted yield on non-taxable securities (1)
j / ac2.88 %3.13 %3.10 %3.13 %2.95 %(0.25)(0.07)
Average yield on interest-earning assets (1)
k / ad5.19 %4.62 %4.10 %3.53 %3.24 %0.57 1.95 
Less: Acquired loan and securities accretion - rate relatedl / ad0.31 %0.01 %0.01 %0.01 %0.02 %0.30 0.29 
Less: Acquired loan accretion - credit relatedc / ad0.04 %— %— %— %— %0.04 0.04 
Adjusted average yield on interest-earning assets (1)
m / ad4.84 %4.61 %4.09 %3.52 %3.22 %0.23 1.62 
Average rate on interest-bearing depositsn / ae1.32 %0.77 %0.23 %0.11 %0.10 %0.55 1.22 
Less: Acquired deposit accretiono / ae— %— %— %— %— %— — 
Adjusted average rate on interest-bearing depositsp / ae1.33 %0.77 %0.23 %0.11 %0.10 %0.56 1.23 
Average rate on interest-bearing liabilitiesq / af1.82 %1.05 %0.39 %0.20 %0.18 %0.77 1.64 
Less: Acquired interest-bearing liabilities accretion (2)
r / af— %— %— %— %— %— — 
Adjusted average rate on interest-bearing liabilitiess / af1.82 %1.05 %0.39 %0.20 %0.18 %0.77 1.64 
Net interest margin (1)
t / ad4.08 %4.01 %3.88 %3.41 %3.14 %0.07 0.94 
Less: Acquired loan, securities, and interest-bearing liabilities accretion - rate relatedu / ad0.31 %— %0.01 %0.01 %0.02 %0.31 0.29 
Less: Acquired loan accretion - credit relatedc / ad0.04 %— %— %— %— %0.04 0.04 
Adjusted net interest margin (1)
v / ad3.73 %4.01 %3.87 %3.40 %3.12 %(0.28)0.61 

(1)Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate.
(2) Includes discount accretion related to UHC's 2014 acquisition of Sterling Financial Corporation.
(3)The cumulative fair value discount on historical Columbia loans was established as of February 28, 2023, and the allocation between the credit-related discount and the rate-related discount was established at that time. Our disclosure of credit-related and rate-related discount accretion is an estimate based on the relative allocation of these two items to the discount at closing. 

1st Quarter 2023 Earnings Presentation April 26, 2023

 
Disclaimer FORWARD-LOOKING STATEMENTS This presentation 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 presentation 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 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 merger when expected or at all; the possibility that the integration following the 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 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 the 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. NON-GAAP FINANCIAL MEASURES In addition to results in accordance with GAAP, this presentation contains certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in the Appendix. We believe 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, provide 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. REVERSE ACQUISITION METHOD OF ACCOUNTING On February 28, 2023, Columbia Banking System, Inc. ("Columbia", "we" or "our") completed its merger (“the merger”) with Umpqua Holdings Corporation ("UHC"). Columbia's financial results for any periods ended prior to February 28, 2023 reflect UHC results only on a standalone basis unless explicitly stated otherwise. 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 quarter of 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. 2

 
STRATEGIC UPDATES AND FORWARD OUTLOOK

 
Merger Update: Execution Timing Is Unchanged Despite the Delayed Closing (1) See the slide presentation published October 12, 2021 for additional details. (2) Earnings per share “EPS” accretion expectations as of October 12, 2021 assume fully-phased in cost-savings for illustrative purposes. See slides 14 and 19 in the presentation published October 12, 2021 for calculation methodology. EPS accretion expectations as of April 26, 2023 use the same starting EPS base (median analyst consensus estimates as of October 11, 2021) as accretion expectations at announcement. Core cash EPS excludes intangible amortization and the accretion and amortization of purchase accounting marks. Although updated core cash EPS accretion is in line with announcement expectations, our current outlook incorporates higher interest income offset by higher interest expense and lower mortgage banking revenue as these items are impacted by the higher rate environment. GAAP EPS expectations are impacted by these items and higher discount accretion related to larger purchase accounting discount marks at closing. (3) Tangible book value dilution compares the combined company’s tangible book value (inclusive of purchase accounting adjustments) to historical Columbia’s tangible book value immediately prior to the merger’s close. The projected earnback period is based on when the combined company’s tangible book value per share crosses over and begins to exceed projected standalone Columbia tangible book value per share. Expectations at Announcement Actual Results and Updated Expectations October 12, 2021 (1) April 26, 2023 Transaction total value $5.1 billion $3.8 billion EPS accretion to Columbia - GAAP (2) 23% 50% EPS accretion to Columbia - core cash (2) 25% 25% Return on assets 1.3% 1.5+% Return on tangible common equity 15% 20+% Tangible book dilution (3) 6% 20% Tangible book earnback (3) 2.6 years <3 years Closing date Mid-2022 February 28, 2023 Core systems conversion complete March 2023 March 20, 2023 Branch consolidations complete Six months post-closing Summer 2023 Cost synergies $135 million $135 million Expected completion of cost synergies realization Year-end 2023 September 30, 2023 ■ The integration management office (“IMO”) planned for the core systems conversion and other integration activities for over sixteen months prior to the closing of the merger on February 28, 2023. ■ The focus of executives and leaders assigned to the IMO enabled us to complete our core systems conversion as originally planned on March 20, 2023. ■ We are on track to realize the originally communicated cost savings target of $135 million, and we now expect to achieve these synergies by the end of 3Q 2023. ■ While GAAP earnings accretion expectations and tangible book dilution have changed notably since announcement, our earnback period is relatively unchanged. 4

 
Merger Update: Higher Interest Rates Drove Significant Fair Value Changes Between Announcement and Closing (1) See page 15 in Columbia’s earnings release published April 26, 2023 for additional details related to the total merger consideration, the fair value of assets and liabilities assumed, and the creation of goodwill. (2) Sourced from Bloomberg. Expectations at Announcement Actual Results at Closing October 12, 2021 February 28, 2023 3-Year U.S. Treasury Yield(2) 0.59% 4.51% 10-Year and 2-Year U.S. Treasury Yields spread(2) 129 basis points (89) basis points Interest rate premium (discount) mark on securities $50 million $(1,011) million Interest rate premium (discount) mark on loans $76 million $(618) million Total net premium (discount) on loans and securities - rate related $126 million $(1,629) million Credit mark on loans $(160) million $(130) million Total net premium (discount) on loans and securities $(34) million $(1,759) million Purchased credit deteriorated (“PCD”) allowance for credit losses $56 million $26 million Non-PCD allowance for credit losses (initial provision) $104 million $88 million Core deposit intangible (“CDI”) $108 million $710 million Goodwill $847 million $1,030 million Common equity tier 1 ratio 12%+ 8.9% (at 3/31/23) 5 ■ The significant increase in interest rates between merger announcement and closing resulted in a dramatic shift in purchase accounting fair value marks related to interest rates. ■ The cumulative fair value discount on loans and securities increased to $1.8 billion at closing from an expectation of $34 million at announcement. This change was driven by the discount related to interest rates—which was a small premium at announcement—as the portion of the fair value discount related to credit actually declined slightly. ■ The larger fair value discount on acquired assets, along with higher interest rates, drove an increase in intangible assets (core deposit intangible and goodwill) booked at closing compared to the expectation at announcement(1). This contributed to the lower CET1 ratio at closing compared to the expectation at announcement.

 
Merger Update: Purchase Accounting Accretion and Amortization Expected to Provide a Meaningful Net Benefit to Income and Capital (1) Table does not capture all assets and liabilities with an associated fair value discount or premium. Assets and liabilities not presented have a significantly smaller impact on income through the accretion or amortization of their discount or premium. (2) See slide 10 for near-term interest income and non-interest expense expectations related to the items outlined in this table. (3) The cumulative fair value discount on historical Columbia loans was established as of February 28, 2023, and the allocation between the credit-related discount and the rate-related discount was established at that time. Our disclosure of credit-related and rate-related discount accretion is an estimate based on the relative allocation of these two items to the discount at closing. Adjustment at Closing Remaining Balances at Select Purchase Accounting Items (1) February 28, 2023 March 31, 2023 (2) Notes ITEMS TO ACCRETE THROUGH INTEREST INCOME: Available for sale securities - rate discount $(1,011) million $(629) million While an adjustment to historical Columbia securities’ book value was $1.0 billion at closing, the purchase discount that will accrete into interest income over time was $0.6 billion when previously existing purchase premiums and the discount associated with bonds sold as part of the portfolio restructuring were eliminated. Loans - rate discount (3) $(618) million $(600) million Purchase accounting related to the allocation of PCD loans—some of which is allocated to the mark related to interest rates—resulted in a larger reduction in the purchase discount related to rates between closing and March 31, 2023 than what was booked through interest income. This is not expected to repeat. Total rate discount on loans and securities $(1,629) million $(1,229) million Loans - credit mark (3) $(130) million $(107) million Purchase accounting related to the allocation of PCD loans resulted in a larger reduction in the purchase discount related to credit between closing and March 31 2023 than what was booked through interest income. This is not expected to repeat. Total discount on loans and securities $(1,759) million $(1,336) million Fair value discounts are accreted into interest income using the effective interest method, which amortizes the discount over the life of the loan or security. ITEM TO AMORTIZE THROUGH NON-INTEREST EXPENSE: Core deposit intangible $710 million $698 million CDI expected to amortize through non-interest expense over 10 years using the sum-of-the-years-digits method. 6

 
Merger Update: Cost Synergies Targeted for Completion by September 30, 2023 7 Annualized Cost Synergies Realized by Period End Q4 2022 Q1 2023 Q2 2023 Q3 2023 $— $50 $100 $150 $22 million(1) $46 million(1) $105-110 million(1) $135 million(1) ■ We expect to achieve $135 million in annualized cost synergies by September 30, 2023(1), and we continue to target additional savings beyond that date. ■ Cost synergies realized ahead of the February 28, 2023 merger close were primarily driven by departing associates that were not slated to be part of the go- forward organization, though there were some real estate and contract-related savings achieved as well in anticipation of closing. ■ The core systems conversion was completed March 20, 2023, but it is not reflected in the run rate until Q2 2023(1) due to the timing of related synergies. ■ Branch consolidations are scheduled to occur through Q2 2023. ■ We have open positions that reflect normal business operations and not the achievement of synergies. Though associated compensation costs are not in our current run rate, they are included in our expense outlook highlighted on slide 10. FTE, 43% Branch Consolidations, 21% Other Real Estate, 9% Services & Contracts, 25% Other, 2% Expected Composition of Cost Synergies at September 30, 2023 (1) Realized synergies are annualized and reflect what is achieved or expected to be achieved at the end of the quarter; the full amount is not included in the full-quarter run rate.

 
Liquidity Overview Deposit, Funding, and Cash Changes: Combined Basis Pre-Closing and Consolidated Basis Post-Closing (1) Two Months Ended One Month Ended Three Months Ended ($ in millions) Feb 28, 2023 Mar 31, 2023 Mar 31, 2023 Dec 31, 2022 Required divestitures ($547) $— ($547) $— Brokered deposits change 18 745 763 752 Public deposits change (102) (100) (202) 74 Customer accounts change (955) (1,214) (2,169) (1,809) Change in total deposits during period ($1,586) ($569) ($2,155) ($983) Repurchase agreements change ($99) ($34) ($133) ($28) Term debt change 1,484 2,606 4,090 1,090 Cash and cash equivalents change 69 1,977 2,046 (284) Total Available Liquidity at March 31, 2023 ($ in millions) Total off-balance sheet liquidity (available lines of credit): $9,663 Cash and equivalents, less reserve requirement 3,396 Excess bond collateral 4,844 Total available liquidity $17,903 TOTAL AVAILABLE LIQUIDITY AS A PERCENTAGE OF: Assets of $54.0 billion at March 31, 2023 33 % Deposits of $41.6 billion at March 31, 2023 43 % Uninsured deposits of $14.8 billion at March 31, 2023 121 % Total Off-Balance Sheet Liquidity Available at March 31, 2023 ($ in millions) Gross Availability Utilization Net Availability FHLB lInes $11,407 $5,920 $5,487 Federal Reserve Discount Window 1,300 — 1,300 Federal Reserve Term Funding Program 2,276 — 2,276 Uncommitted lines of credit 600 — 600 Total off-balance sheet liquidity $15,583 $5,920 $9,663 8 ■ On March 13, 2023, we increased our cash position to enhance balance sheet flexibility given developing industry events. ■ Market liquidity tightening and the impact of inflation on consumer spending continued to pressure customer deposit balances during the first quarter. ■ Uninsured deposits were $14.8 billion at March 31, 2023, representing 36% of total deposits. Available liquidity of $17.9 billion was 121% of uninsured deposits at that time. (1) All data presented in the above table combine historical Columbia data and historical UHC data for all periods presented in order to provide a consistent comparison of the changes that occurred when viewing the combined organization.

 
Q1 2023 Activity ■ Added $6.2 billion of securities from historical Columbia at fair value, eliminating any unrealized gains or losses. ■ Restructured ~20% of the historical Columbia portfolio (~12% of the combined portfolio): ■ Sold $1.2 billion the first week of March; no gain or loss on the income statement. ■ Purchased $937 million with a projected average yield of 4.63%. ■ Actions reduced the potential adverse impact to net interest income in a declining interest rate environment. Securities Portfolio Details ■ The total available for sale securities portfolio had a book yield of 3.62% and an effective duration of 5.7 at March 31, 2023 (equivalent to an effective duration of 5.7 at March 31, 2022 when the legacy portfolios are evaluated on a combined basis). ■ All securities were classified as available for sale and carried on the balance sheet at fair value at March 31, 2023, with exception of $2.4 million in local community housing bonds classified as held to maturity; there is no unrealized loss associated with this portfolio, which was 0.02% of total securities. Available for Sale Securities Portfolio at March 31, 2023 ($ in millions) Current Par Amortized Cost Unrealized Gains Unrealized Losses Fair Value % of Total AFS Portfolio Effective Duration Book Yield U.S. Treasuries $422 $405 $3 ($6) $401 4 % 2.9 3.30 % U.S. Agencies 1,162 1,180 1 (80) 1,101 12 % 5.0 2.78 % Mortgage-backed securities - residential agency 3,415 3,182 26 (251) 2,957 32 % 7.2 3.13 % Collateralized mortgage obligations (1) 1,518 1,419 7 (103) 1,323 14 % 6.0 3.27 % Obligations of states and political subdivisions 1,151 1,087 21 (22) 1,086 12 % 5.0 3.40 % Commercial mortgage-backed securities - agency 2,563 2,374 36 (28) 2,381 26 % 5.2 4.75 % Total available for sale securities $10,231 $9,647 $94 ($490) $9,249 5.7 3.62 % Percentage of Current Par 94 % 1 % (5) % 90 % 9 Available for Sale Securities Portfolio Percentage Gain / Loss at March 31, 2023 Unrealized Gain, 66% Unrealized Loss, 34% $6.1 billion ▪ net unrealized gain position ▪ 4.53% yield at 3/31 $3.1 billion ▪ net unrealized loss position ▪ 1.90% yield at 3/31 Securities Portfolio Overview (1) Portfolio includes $285 million in high-quality non-agency collateralized mortgage obligations (“CMO”) that were in an unrealized gain position at March 31, 2023. The remaining $1.0 billion of the portfolio is comprised of residential agency CMOs.

 
Outlook Note: “NIM” = net interest margin (1) Q1 2023 and Full-Year 2023 impacted by the February 28, 2023 merger close. For the month of March, average earning assets were $49 billion, NIM - adjusted was 3.55%, and NIM - GAAP was 4.31%. (2) Non-GAAP basis. See slide 18 for reconciliation. (3) Non-GAAP basis; see reconciliation in this table and on slide 15. Excludes non-operating and merger-related items. Results (1) Outlook (1) Q1 2023 Q2 2023 Full-Year 2023 Notes Average earning assets $37b $48b - $49b $45b - $46b Assumes cash balance at 3/31 remains consistent through remainder of 2023 Net interest margin - adjusted (2) 3.73% 3.55% - 3.65% 3.55% - 3.65% Forward outlook does not include any additional changes to the fed funds rate through 2023; results will be highly dependent on relative cash balances and the cost of funding Net interest margin - GAAP 4.08% 4.20% - 4.30% 4.15% - 4.25% In addition to the items affecting the adjusted NIM, the GAAP NIM will be affected by the timing of payoff or paydown of loans and securities with an associated discount relative to our outlook Purchase accounting accretion - loans $16mm $40mm - $45mm $135mm - $145mm Accelerated payoff or paydown activity would increase the level of accretion Purchase accounting accretion - securities $16mm $40mm - $45mm $145mm - $155mm Accelerated payoff or paydown activity would increase the level of accretion Non-interest expense - excluding CDI and merger-related costs (3) $213mm $260mm - $270mm $965mm - $980mm Anticipate a Q4 run rate of $240mm - $250mm (not annualized) excluding CDI and merger-related costs CDI amortization $13mm ~$35mm ~$116mm Not included in adjusted non-interest expense detailed above Merger-related costs $116mm ~$25mm ~$160mm Not included in adjusted non-interest expense detailed above 10

 
FINANCIAL HIGHLIGHTS AND SUMMARY FINANCIAL STATEMENTS Q1 2023

 
Performance Ratios Footnotes: (1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate. (2) Non-GAAP financial measure. A reconciliation to the comparable GAAP measurement is provided on slide 18. (3) Non-GAAP financial measure. A reconciliation to the comparable GAAP measurement is provided at the end of this slide presentation. For the Quarter Ended Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Reported Net interest margin (1) 4.08 % 4.01 % 3.88 % 3.41 % 3.14 % Efficiency ratio (1) 79.71 % 57.24 % 56.07 % 59.12 % 59.02 % Pre-provision net revenue (PPNR) return on average assets (1), (3) 0.89 % 1.82 % 1.80 % 1.64 % 1.67 % Return on average assets (0.14) % 1.04 % 1.09 % 1.04 % 1.21 % Return on average common equity (1.70) % 13.50 % 12.99 % 12.20 % 13.62 % Return on average tangible common equity (3) (2.09) % 13.53 % 13.02 % 12.23 % 13.66 % Operating and Adjusted Adjusted net interest margin (1), (2) 3.73 % 4.01 % 3.87 % 3.40 % 3.12 % Operating efficiency ratio (1), (3) 53.46 % 52.01 % 51.72 % 58.27 % 62.02 % Operating PPNR return on average assets (1), (3) 2.01 % 2.10 % 2.12 % 1.66 % 1.43 % Operating return on average assets (3) 0.74 % 1.24 % 1.33 % 1.06 % 1.03 % Operating return on average common equity (3) 8.66 % 16.14 % 15.86 % 12.46 % 11.58 % Operating return on average tangible common equity (3) 10.64 % 16.18 % 15.90 % 12.49 % 11.62 % Q1 2023 Highlights (compared to Q4 2022) ■ Operating results include the initial provision related to non-PCD loans added through the merger, and reported results further include merger-related expenses. These items meaningfully impacted performance ratios where applicable. ■ Net interest margin increased 7 basis points to 4.08% as the favorable impact of purchase accounting accretion offset higher funding costs and a higher mix of cash and securities as a percentage of average earning assets. ■ Operating PPNR return on assets decreased by 9 basis points due to moving parts in the quarter that include one month of combined results, purchase accounting adjustments, and a relatively low level of anticipated cost synergies that are expected to be fully realized by September 30, 2023. 12

 
Selected Period-End Balance Sheet Footnotes: Tables may not foot due to rounding. “AOCI” = Accumulated other comprehensive income. (1) Prior periods have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the merger of 0.5958. (2) Non-GAAP financial measure. A reconciliation to the comparable GAAP measurement is provided in the appendix of this slide presentation. ($ in millions, except per-share data) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 ASSETS: Total assets $53,994.2 $31,848.6 $31,472.0 $30,135.7 $30,637.1 Interest bearing cash and temporary investments 3,079.3 967.3 1,232.4 687.2 2,358.3 Investment securities available for sale, fair value 9,249.6 3,196.2 3,136.4 3,416.7 3,638.1 Loans and leases, gross 37,091.3 26,156.0 25,508.0 24,432.7 22,975.8 Allowance for credit losses on loans and leases (417.5) (301.1) (283.1) (261.1) (248.6) Goodwill and other intangibles, net 1,732.5 4.7 5.8 6.8 7.8 LIABILITIES AND EQUITY: Deposits 41,586.3 27,065.6 26,817.1 26,132.4 26,699.6 Securities sold under agreements to repurchase 271.0 308.8 383.6 528.0 499.5 Borrowings 5,950.0 906.2 756.2 6.3 6.3 Total shareholders' equity 4,884.7 2,479.8 2,417.5 2,518.3 2,607.6 RATIOS AND PER-SHARE METRICS: Loan to deposit ratio 89.2% 96.6% 95.1% 93.5% 86.1% Book value per common share (1) $23.44 $19.18 $18.69 $19.47 $20.17 Tangible book value per common share (1), (2) $15.12 $19.14 $18.65 $19.42 $20.11 Tangible book value per common share, excluding AOCI (1), (2) $16.56 $22.44 $22.13 $21.80 $21.53 Tangible common equity to tangible assets (2) 6.0% 7.8% 7.7% 8.3% 8.5% Tangible common equity to tangible assets, excluding AOCI (2) 6.6% 9.1% 9.1% 9.4% 9.1% 13 Q1 2023 Highlights (compared to Q4 2022) ■ Results were impacted by the closing of the merger on February 28, 2023 and the addition of historical Columbia balances at fair value. ■ Columbia added approximately $2 billion in interest bearing cash balances in March that were funded with borrowings to increase on-balance sheet liquidity. ■ Loans were up slightly on an organic basis due to drawdowns related to single- family home construction. ■ Deposits contracted on an organic basis primarily as a result of balances continuing to be affected by market liquidity tightening and the impact of inflation on customer spending.

 
Summary Income Statement Footnotes: Tables may not foot due to rounding. (1) Prior periods have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the merger of 0.5958. (2) Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate. (3) Non-GAAP financial measure. A reconciliation to the comparable GAAP measurement is provided at the end of this slide presentation. For the Quarter Ended ($ in millions, except per-share data) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Net interest income before provision $374.7 $305.5 $287.6 $248.2 $228.8 Provision for credit losses 105.5 32.9 27.6 18.7 4.8 Net interest income after provision 269.2 272.5 260.0 229.5 224.0 Non-interest income 54.7 34.9 29.4 55.2 80.0 Non-interest expense 342.8 195.0 178.0 179.6 182.4 (Loss) income before (benefit) provision for income taxes (18.9) 112.4 111.5 105.1 121.5 (Benefit) provision for income taxes (4.9) 29.5 27.5 26.5 30.3 Net (loss) income ($14.0) $83.0 $84.0 $78.6 $91.2 (Loss) earnings per share, diluted (1) ($0.09) $0.64 $0.65 $0.61 $0.70 Non-interest expense, excluding merger-related expenses (3) $226.9 $183.3 $177.2 $176.9 $180.2 Pre-provision net revenue (2), (3) $86.6 $145.4 $139.1 $123.8 $126.3 Operating pre-provision net revenue (2), (3) $195.7 $167.1 $163.8 $126.0 $108.1 Operating net income (3) $71.5 $99.2 $102.6 $80.3 $77.6 Operating earnings per share, diluted (1), (3) $0.46 $0.76 $0.79 $0.62 $0.60 14 Q1 2023 Highlights (compared to Q4 2022) ■ Results include one month of the combined company’s operations. ■ Net interest income increased $69 million, including $32 million of purchase accounting accretion and amortization. ■ Non-interest income primarily increased as a result of a $16 million favorable change in cumulative fair value adjustments and mortgage servicing rights hedging activity. ■ Non-interest expense includes $116 million of merger-related expenses (excluded from operating PPNR and operating net income). ■ Provision expense includes an initial provision of $88 million for historical Columbia non-PCD loans. ■ EPS were impacted by common shares issued and exchanged in the merger.

 
Income Statement Component Details For the Quarter Ended March 31, 2023 LESS: EQUALS LESS: EQUALS ($ in thousands, except per-share amounts) GAAP Income Non-Operating Items (1) Operating Income (2) Merger-Related Items (3) Adjusted Operating Income (2) Interest income $475,951 $— $475,951 $31,895 $444,056 Interest expense 101,253 — 101,253 (150) 101,403 Net interest income 374,698 — 374,698 31,745 342,953 Provision for credit losses 105,539 — 105,539 88,427 17,112 Net interest income after provision 269,159 — 269,159 (56,682) 325,841 Non-interest income 54,735 8,074 46,661 — 46,661 Non-interest expense 342,818 117,189 225,629 12,660 212,969 Income before provision for income taxes (18,924) (109,115) 90,191 (69,342) 159,533 Provision for income taxes (4,886) (23,565) 18,679 (17,336) 36,015 Net income ($14,038) ($85,550) $71,512 ($52,006) $123,518 Revenue $429,433 $8,074 $421,359 $31,745 $389,614 Pre-provision net revenue (2) $86,615 ($109,115) $195,730 $19,085 $176,645 Net interest margin (4) 4.08 % NA 4.08 % 0.35 % 3.73 % Efficiency ratio (4) 79.71 % 26.25 % 53.46 % (1.11) % 54.57 % PPNR return on assets (2), (4) 0.89 % (1.12) % 2.01 % 0.19 % 1.82 % Return on assets (0.14) % (0.88) % 0.74 % (0.53) % 1.27 % Return on equity (1.70) % (10.36) % 8.66 % (6.29) % 14.95 % Return on tangible common equity (2) (2.09) % (12.73) % 10.64 % (7.73) % 18.37 % Earnings per share, diluted ($0.09) ($0.55) $0.46 ($0.33) $0.79 15 Q1 2023 Highlights ■ Results include one month of the combined company’s operations. ■ GAAP results were significantly impacted by non-operating and merger-related items in the quarter. Excluding these items, adjusted operating EPS were $0.79, return on assets was 1.27%, and return on tangible common equity was 18.4%. ■ Merger-related expenses (captured in non-operating items) and the initial provision (captured in merger-related items) reduced EPS by $1.01. We expect the future net impact of merger-related items, including purchase accounting adjustments captured through net interest income, to be additive to income. ■ Net interest margin of 4.08% was favorably impacted by purchase accounting adjustments; it was 3.73% when these effects are excluded. Footnotes: All dollar values exclude tax equivalent adjustments; all ratios, where relevant, include this adjustment. (1) Non-operating income and expense items are detailed at the end of this slide presentation. Non-operating expense includes $116 million of merger-related expenses. (2) All items in this column represent non-GAAP financial measures and should be reviewed alongside the GAAP reconciliation in this table. PPNR, PPNR return on assets, and return on tangible common equity are also non-GAAP measures for all ratios presented, including those in the GAAP column; a reconciliation is provided at the end of this presentation. (3) Merger-related items include purchase accounting accretion and amortization captured in interest income and interest expense, the initial provision of $88 million, and CDI amortization of $13 million. (4) Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate and is included in the calculation of this ratio.

 
INCOME STATEMENT HIGHLIGHTS Q1 2023

 
($ in millions) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Net Interest Income $228.8 $248.2 $287.6 $305.5 $374.7 Acquired loan, securities, and interest-bearing liabilities accretion - rate related (1),(2) (1.4) (1.0) (0.7) (0.3) (27.9) Acquired loan accretion - credit related (2) — — — — (3.8) Net Interest Income excluding purchase accounting adjustments (“PAA”) (3) $227.4 $247.2 $286.9 $305.2 $343.0 Net Interest Income ($ in m ill io ns ) Net Interest Income $228.8 $248.2 $287.6 $305.5 $374.7 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 $200.0 $250.0 $300.0 $350.0 $400.0 ($ in m ill io ns ) Net Interest Income excluding Purchase Accounting Adjustments ("PAA") $227.4 $247.2 $286.9 $305.2 $343.0 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 $200.0 $250.0 $300.0 $350.0 $400.0 17 Note: All dollar values exclude tax equivalent adjustments. (1) Includes discount accretion related to UHC's 2014 acquisition of Sterling Financial Corporation. (2) The cumulative fair value discount on historical Columbia loans was established as of February 28, 2023, and the allocation between the credit-related discount and the rate-related discount was established at that time. Our disclosure of credit-related and rate-related discount accretion is an estimate based on the relative allocation of these two items to the discount at closing. (3) All items in this row represent non-GAAP financial measures and should be reviewed alongside the GAAP reconciliation in this table.

 
Net Interest Margin Footnotes: (1) Chart Abbreviations: “LHFI” = loans held for investment. (2) Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate. For the month of March, NIM was 4.31%, NIM excluding PAA was 3.55%, and the cost of interest-bearing deposits was 1.33%. Excess liquidity reduced NIM by ~10 basis points in March, but was immaterial to net interest income. (3) Includes discount accretion related to UHC's 2014 acquisition of Sterling Financial Corporation. (4) The cumulative fair value discount on historical Columbia loans was established as of February 28, 2023, and the allocation between the credit-related discount and the rate-related discount was established at that time. Our disclosure of credit-related and rate-related discount accretion is an estimate based on the relative allocation of these two items to the discount at closing. (5) All items in this row represent non-GAAP financial measures and should be reviewed alongside the GAAP reconciliation in this table. Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Net Interest Margin (2) 3.14 % 3.41 % 3.88 % 4.01 % 4.08 % Acquired loan, securities, and interest-bearing liabilities accretion - rate related (3), (4) (0.02) % (0.01) % (0.01) % — % (0.31) % Acquired loan accretion - credit related (4) — % — % — % — % (0.04) % Net Interest Margin excluding PAA (2), (5) 3.12 % 3.40 % 3.87 % 4.01 % 3.73 % Net Interest Margin Comparison 3.14% 3.41% 3.88% 4.01% 4.08% 3.12% 3.40% 3.87% 4.01% 3.73% Net Interest Margin Net Interest Margin excluding PAA Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 —% 1.00% 2.00% 3.00% 4.00% 5.00% Net Interest Margin: Q4 2022 vs Q1 2023 4.01% 0.47% 0.24% 0.05% 0.05% (0.43)% (0.27)% (0.04)% 4.08% Q4 2022 Reported LHFI-ex PAA¹ LHFI- PAA¹ Invest- ments Interest- Bearing Cash Deposits Term Debt Other Inputs Q1 2023 Reported 18

 
Loan Repricing Detail (1), (2) ($ in millions) Q4 2022 Q1 2023 Q4 2022 Q1 2023 Fixed $ 8,981 $ 17,289 34 % 46 % Prime 1,801 2,480 7 % 6 % 1 Month 6,143 6,764 24 % 18 % Floating 7,944 9,244 31 % 24 % Prime 302 747 1 % 2 % 6 month 5,593 5,668 21 % 15 % 1 Year 1,226 1,275 5 % 3 % 3 Year 160 279 1 % 1 % 5 Year 1,265 2,286 5 % 6 % 10 Year 650 911 3 % 3 % Adjustable 9,196 11,166 35 % 30 % Total $ 26,121 $ 37,699 100 % 100 % Loan Maturities at March 31, 2023 <=6 7 to 12 13 to 24 25 to 36 37 to 60 61+ ($ in millions) Months Months Months Months Months Months Total Fixed $ 2,558 $ 395 $ 683 $ 892 $ 2,287 $ 10,474 $ 17,289 Floating 1,070 877 1,041 536 1,351 4,369 9,244 Adjustable 56 73 174 349 697 9,817 11,166 Total $ 3,684 $ 1,345 $ 1,898 $ 1,777 $ 4,335 $ 24,660 $ 37,699 Interest Rate Sensitivity: Loans Floors: Floating and Adjustable Rate Loans at March 31, 2023 (3) ($ in millions) No Floor At Floor (4) Above Floor Total Floating $5,619 $460 $3,165 $9,244 Adjustable 1,840 646 8,680 11,166 Total $7,459 $1,106 $11,845 $20,410 % of Total 37% 5% 58% 100% 19 Footnotes: (1) Index rates are mapped to the closest material index. (2) Loan totals on this slide do not include purchase accounting adjustments. Deferred fees and costs also drive variances between loan totals on this slide and loan totals in the earnings press release. (3) Loans were grouped into three buckets: (1) No Floor: no contractual floor on the loan; (2) At Floor: current rate = floor; (3) Above Floor: current rate exceeds floor. The amount above the floor was based on the current margin plus the current index assuming the loan repriced on March 31, 2023. The adjustable loans may not reprice until well into the future, depending on the timing and size of interest rate changes. (4) At March 31, 2023, $1.1 billion in loans representing 5% of the loan portfolio were at a floor. Of these loan balances, $860 million require an upward rate movement of over 150 basis points to move off their floor.

 
Interest Rate Sensitivity: Balance Sheet Interest Rate Simulation Impact on Net Interest Income (1), (2) March 31, 2023 December 31, 2022 September 30, 2022 Ramp Shock Ramp Shock Ramp Shock Year 1 Year 2 Year 1 Year 2 Year 1 Year 2 Year 1 Year 2 Year 1 Year 2 Year 1 Year 2 Up 200 basis points (0.4)% 0.3% (0.1)% 1.7% 1.1% 4.2% 2.7% 5.6% 2.0% 6.8% 4.5% 8.6% Up 100 basis points (0.2)% 0.2% —% 0.9% 0.6% 2.2% 1.4% 2.9% 1.0% 3.5% 2.3% 4.3% Down 100 basis points (1.0)% (2.7)% (2.3)% (3.4)% (2.4)% (6.0)% (4.9)% (6.9)% (3.1)% (7.8)% (6.4)% (8.8)% Down 200 basis points (2.0)% (5.7)% (4.9)% (7.3)% (5.1)% (12.9)% (10.6)% (14.8)% (6.5)% (16.1)% (13.6)% (18.0)% Down 300 basis points (3.3)% (9.5)% (8.1)% (12.0)% (7.8)% (19.7)% (16.3)% (22.6)% (10.2)% (23.5)% (19.9)% (26.2)% Footnotes: (1) For the scenarios shown, the interest rate simulations assume a parallel and sustained shift in market interest rates ratably over a twelve-month period (ramp) or immediately (shock). There is no change in the composition of the size of the balance sheet in either scenario. Interest rate sensitivity in the first year of the net interest income simulation for increasing interest rate ramp scenarios is negatively impacted by the cost of non-maturity deposits repricing immediately while interest earning assets reprice at a slower rate. (2) The simulation repricing beta applied to interest-bearing deposits in the rising rate scenarios is 53% for the March 31, 2023 simulation, 53% for the December 31, 2022 simulation, and 51% for the September 30, 2022 simulation. Betas applied are for future repricing assuming future rate changes, and the simulations assume an immediate repricing impact. ■ Columbia has taken proactive measures to reduce the balance sheet’s sensitivity to a declining interest rate environment, including the restructuring of a portion of the securities portfolio the first week of March 2023, as outlined on slide 9 in this presentation. ■ The potential adverse impact to net interest income in a declining interest rate environment was significantly lower at March 31, 2023, compared to September 30, 2022. For example, under the down 300 basis points ramp scenario, our March 31, 2023 simulation anticipates a 3.3% decline in net interest income for year 1 compared to a 10.2% decline for the same scenario under our September 30, 2022 simulation. ■ The cost of interest-bearing deposits was 1.33% for the month of March and 1.43% at March 31, 2023. 20 Deposit and Funding Repricing Betas During the Current Rising-Rate Cycle** Effective Fed Funds Rate (Daily Avg.) Cost of Combined Company** Interest- Bearing Deposits Total Deposits Total Funding Q1 2023 4.52% 1.32% 0.80% 1.16% Q4 2022 3.65% 0.62% 0.35% 0.51% Q3 2022 2.20% 0.22% 0.12% 0.18% Q2 2022 0.76% 0.11% 0.06% 0.10% Q1 2022 0.12% 0.09% 0.05% 0.08% Q4 2021 0.08% 0.10% 0.05% 0.09% Variance: Peak (Peak Value less Q4 2021) +4.44% +1.22% +0.75% +1.08% Beta - Cycle-to-Date 28% 17% 24% **Note: Interest rate simulations present data on a legal company basis: Data displayed at March 31, 2023 represents the combined company and data displayed at December 31, 2022 and September 30, 2022 represent historical UHC data only. Deposit and funding repricing beta data present combined company results as if historical Columbia and historical UHC were one company for all periods through December 31, 2022; the quarter ended March 31, 2023 is presented on a legal basis given the merger. The beta presentation is calculated in this manner for comparison purposes.

 
Non-Interest Income Footnotes: Tables may not foot due to rounding. (1) Commercial product revenue includes Swaps, Syndication, and International Banking revenue. For the quarter ended ($ in millions) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Service charges on deposits $14.3 $12.1 $12.6 $12.0 $11.6 Card-based fees 11.6 9.0 9.1 10.5 8.7 Financial services and trust revenue 1.3 — — — — Residential mortgage banking revenue, net 7.8 (1.8) 17.3 30.5 60.8 Gain (loss) on equity securities, net 2.4 0.3 (2.6) (2.1) (2.7) Gain on loan and lease sales, net 0.9 1.5 1.5 1.3 2.3 BOLI income 2.8 2.0 2.0 2.1 2.1 Other Income Commercial product revenue (1) $1.4 $5.3 $6.4 $4.1 $5.3 Commercial servicing revenue 0.9 0.9 0.7 0.7 0.8 Loan-related fees 3.4 3.2 3.2 3.1 3.1 Change in fair value of certain loans held for investment 9.5 4.2 (26.4) (15.2) (21.0) Misc. Income 1.9 0.4 1.3 0.8 1.9 Swap Derivative Gain/(Loss) (3.5) (2.3) 4.2 7.3 7.0 21 Q1 2023 Highlights (compared to Q4 2022) ■ Results include one month of the combined company’s operations. ■ Financial services and trust revenue benefited from the earnings stream added through Columbia Wealth Management. ■ Commercial product revenue was adversely impacted by a $3.1 million decline in swap revenue and income. The decline was also driven by $0.8 million in M&A advisory revenue booked in the prior quarter that did not repeat. ■ Mortgage banking revenue benefited from the effectiveness of mortgage servicing rights (“MSR”) hedges as the associated gain almost fully offset the decline in the MSR asset due to valuation input changes.

 
BALANCE SHEET HIGHLIGHTS Q1 2023

 
Q1 2023 Loan Roll Forward $26,156 $756 ($132) ($452) ($177) $10,884 $56 $37,091 Beginning Balance (12/31/2022) New Originations Net Advances/ Payments Prepayments Payoffs Merger Other Ending Balance (3/31/2023) $20,000 $25,000 $30,000 $35,000 $40,000 $ in millions 23 Footnotes: Other includes purchase accounting accretion and amortization.

 
Loan and Lease Characteristics: Overall Portfolio and Q1 2023 Production Footnotes: Portfolio statistics and delinquencies as of March 31, 2023. Annualized net charge-off rate for Q1 2023. Loan-to-value (“LTV”), FICO, and debt service coverage (“DSC”) are based on weighted average for portfolio where data are available. LTV represents average LTV based on most recent appraisal against updated loan balance. Totals may not foot due to rounding. • Portfolio average loan size of $470,000 • 1Q23 average loan size of $612,000 • Portfolio average FICO of 761 and LTV of 62% • 1Q23 average FICO of 759 and LTV of 71% • Total delinquencies of 0.46% • Annualized net charge-off rate of 0.00% Non-owner Occupied CRE • Portfolio average loan size of $1.6 million • 1Q23 average loan size of $2.5 million • Portfolio average LTV of 53% and DSC of 1.89 • 1Q23 average LTV of 56% and DSC of 1.39 • Total delinquencies of 0.12% • Annualized net charge-off rate of 0.00% Commercial & Industrial • Portfolio average loan size of $714,000 • 1Q23 average loan size of $906,000 • Total delinquencies of 0.24% • Annualized net charge-off rate of (0.01)% Multifamily • Portfolio average loan size of $2.3 million • 1Q23 average loan size of $547,000 • Portfolio average LTV of 55% and DSC of 1.56 • 1Q23 average LTV of 45% and DSC of 1.91 • Total delinquencies of 0.00% • Annualized net charge-off rate of 0.00% Owner Occupied CRE • Portfolio average loan size of $956,000 • 1Q23 average loan size of $1.7 million • Portfolio average LTV of 56% • 1Q23 average LTV of 51% • Total delinquencies of 0.26% • Annualized net charge-off rate of 0.00% Lease & Equipment Finance (FinPac) • Portfolio average loan & lease size of $41,000 • 1Q23 average loan & lease size of $65,000 • Portfolio average yield: ~10% • Total delinquencies of 4.35% • Annualized net charge-off rate of 3.89% Puget Sound, 20% WA Other, 7% Portland MSA, 13% OR Other, 13%Bay Area, 7% Northern CA, 10% Southern CA, 15% Other, 15% Mortgage, 17% FinPac, 5% C&I, 22% Owner Occupied CRE, 14% Non-OO CRE, 16% Multifamily, 15% Other Loan Categories, 11% Portfolio Composition at March 31, 2023 Geographic Distribution at March 31, 2023 Mortgage 24

 
CRE and C&I Portfolio Composition Agriculture, 7.4% Contractors, 7.5% Finance/Insurance, 6.5% Manufacturing, 7.8% Professional, 5.5% Public Admin, 7.5% Rental & Leasing, 6.9% Retail, 2.5% Support Services, 3.7% Transportation/ Warehousing, 9.8% Wholesale, 7.3% Gaming, 5.7% Dentists, 7.4% Other Healthcare, 3.1% Other, 11.4% Office, 16.9% Multifamily, 33.2% Industrial, 15.3% Retail, 11.8% Special Purpose, 7.2% Hotel/Motel, 3.9% Other, 11.7% CRE Portfolio Composition (1) $17.1 Billion at March 31, 2023 C&I Portfolio Composition (1) $9.8 Billion at March 31, 2023 (1) CRE portfolio composition includes non-owner occupied term and owner occupied term balances as well as multifamily balances. C&I portfolio composition includes term, lines of credit & other, and leases & equipment finance balances. (2) Owner occupied and non-owner occupied disclosure relates to commercial real estate portfolio excluding multifamily loans. 45% Owner Occupied / 55% Non-Owner Occupied(2) Commercial Line Utilization was 32% at March 31, 2023 25

 
Office Portfolio Details Puget Sound, 21% WA Other, 6% Portland MSA, 12% OR Other, 16% Bay Area, 5% Northern CA, 11% Southern CA, 20% Other, 9% Office Portfolio Metrics at March 31, 2023 Average loan size $1.3 million Average LTV 57% DSC (non-owner occupied) 1.75x % with guaranty (by $ / by #) 83% / 82% Past due 30-89 days $0.4mm / 0.01% of office Nonaccrual $0.6mm / 0.02% of office Special mention $46mm / 1.52% of office Classified $19mm / 0.63% of office Number of Loans by Balance Geography 26 ■ Loans secured by office properties represent 8% of our total loan portfolio at March 31, 2023. ■ The average loan size in our office portfolio is $1.3 million, and delinquencies are at a de minimis level. ■ We focus on properties located in suburban markets, and the majority of our loans contain a guaranty. ■ We continually monitor the performance of our loan portfolio, and in a recent evaluation, our sample included all non-owner occupied loans with a balance above $2.5 million if they were secured by a property located in a downtown core business district (“CBD”). CBD loans sampled represented 20% of the subset and 9% of our overall office portfolio. Our on-site surveys indicate 86% of CBD properties have an occupancy of 85% or higher, with approximately half fully occupied. Properties in suburban markets comprised the remaining 80% of the sample, and occupancy for the entire sample set was 91%, up slightly from 90% compared to last year’s sample. 1,746 441 71 38 7 6 <$1mm $1-5mm $5-10mm $10-20mm $20-30mm >$30mm

 
Allowance for Credit Losses (“ACL”) Footnotes: 1. Total includes $14.2 mm for Reserve for Unfunded Commitments 2. Total includes $19.0 mm for Reserve for Unfunded Commitments Allowance for Credit Losses by Loan Segment ($ in thousands) 12/31/2022 Initial ACL recorded for PCD and unfunded commitments Q1 2023 Net Charge-offs Reserve build 3/31/2023 % of loans and leases outstanding Commercial $56,622 $20,270 $187 $48,344 $125,423 1.55 % Lease & Equipment Finance $113,562 $— ($16,377) $22,919 $120,104 6.88 % CRE $85,020 $10,993 $58 $23,424 $119,495 0.63 % Residential/Home Equity $53,525 $722 ($124) $9,810 $63,933 0.79 % Consumer $6,627 $274 ($405) $1,042 $7,538 4.05 % Total $315,356 ¹ $32,259 ($16,661) $105,539 $436,493 ² 1.18 % % of loans and leases outstanding 1.21 % 1.18 % Allowance for Credit Losses: Merger Impacts ($ in thousands) Loans and Leases Unfunded Commitments Total Allowance for credit losses at December 31, 2022 $301,135 $14,221 $315,356 Initial ACL recorded for PCD loans and unfunded committments acquired during the period 26,492 5,767 32,259 Provision expense for non-PCD loans (initial provision) 88,427 — 88,427 Q1 2023 provision expense (recapture), excluding initial provision 18,071 (959) 17,112 Net charge-offs (16,661) — (16,661) Allowance for credit losses at March 31, 2023 $417,464 $19,029 $436,493 27 Current Expected Credit Losses (“CECL”) Details ■ Recorded an initial ACL for historical Columbia PCD loans of $26 million and unfunded commitments of $6 million at merger close with no impact to the income statement. ■ Provision expense of $106 million includes an $88 million initial provision for historical Columbia non-PCD loans. ■ Provision expense excluding the initial provision was $17 million and primarily driven by changes in the economic forecasts used in credit models. ■ Used Moody’s February 2023 Baseline economic forecast. Key components include: ■ U.S. real GDP average annualized growth of 1.3% in 2023, 2.2% in 2024, 2.7% in 2025, and 2.6% in 2026. ■ U.S. unemployment rate average of 3.5% in 2023, 3.9% in 2024, 4.0% in 2025, and 4.1% in 2026. ■ The average federal funds rate is expected to be 4.8% in 2023, 4.2% in 2024, 3.2% in 2025, and 2.5% in 2026.

 
Credit Quality Pr ov is io n Ex pe ns e ($ in m ill io ns ) N on perform ing assets to total assets Provision Expense & Non-Performing Assets to Total Assets** $4.8 $18.7 $27.6 $32.9 $17.1 $88.4 0.14% 0.15% 0.16% 0.18% 0.14% Provision expense Initial Provision Non Performing Assets To Total Assets Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 $— $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 —% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% Cl as si fie d Lo an s / To ta l L oa ns Classified A ssets / RBC Classified Assets 0.87% 0.75% 0.74% 0.73% 1.21% 8.8% 7.8% 7.9% 7.8% 13.5% Classified Loans to Total Loans Classified Assets to Risk-Based Capital Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 —% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% —% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% A xi s Ti tle Net Charge-offs to Average Loans and Leases (annualized) —% 0.01% 0.02% 0.01% 0.00% 1.49% 1.47% 1.36% 2.84% 3.89% 0.10% 0.11% 0.11% 0.19% 0.23% Umpqua Bank (ex FinPac) FinPac Columbia Banking System, Inc. Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 —% 1.00% 2.00% 3.00% 4.00% 28 ■ If the remaining credit discount on loans of $107 million at March 31, 2023 is added to the ACL of $436 million at March 31, 2023, the ACL would increase to 1.46% of loans from the reported 1.18% level. ■ The increase in classified asset ratios between December 31, 2022 and March 31, 2023 relates to the addition of the historical Columbia portfolio and related purchase accounting adjustments and their impact on risk-based capital. The metrics are not reflective of any notable change in classified assets. A CL ($ in m ill io ns ) A CL / Total Loans and Leases Allowance for Credit Losses $261 $274 $295 $315 $436 $107 1.14% 1.12% 1.16% 1.21% 1.18% 1.46% ACL Credit Discount ACL to Total Loans and Leases ACL + Credit Discount to Total loans and Leases Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 $100 $200 $300 $400 $500 $600 $700 —% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40%$105.5 Footnotes: **Q 1 2023 provision expense of $105.5 million includes an initial provision of $88.4 million related to historical Columbia non-PCD loans.

 
Our Diversified Commercial Bank Business Model with a Strong Retail Presence Supports our Granular, High-Quality Deposit Base (1) Excludes public and brokered deposit balances. This is a non-GAAP financial measure. (2) Includes Reich & Tang Demand Deposit Marketplace program deposits of $696 million. (3) We fine-tuned our methodology following the industry events that brought the level of uninsured deposits into focus in March, which resulted in the reclassification of select balances, including collateralized public funds, which are no longer included in our uninsured balance calculations. Broker / Other, 3.9% Commercial, 49.3% Consumer, 40.9% Public, 5.9% March 31, 2023 Average consumer account balance $20 thousand Average commercial account balance $108 thousand Average customer account balance (1) $36 thousand Insured Cash Sweep (“ICS”) deposits (2) $2.6 billion Deposits in Certificate of Deposit Account Registry Service (“CDARS”) deposits $288 million Uninsured deposits as a % of total deposits (3) 36% Non-interest, 41.4% Demand, 14.2% Money Market, 25.7%Savings, 8.3% Time, 10.4% Deposits by Type Deposits by Business Line 29 ■ Deposits were $42 billion at March 31, 2023 and represented by a largely granular base that is diversified by business line, industry, and geography. ■ Our deposit solutions, like ICS and CDARS, and our ability to collateralize select accounts, provide our customers with flexibility and improve the stability of our deposit base.

 
Capital Impacts: Q4 2022 to Q1 2023 30 Common Equity Tier 1 ("CET1") Ratio 11.0% 0.5% (0.2)% (0.1)% (2.3)% 8.9% 12/31/22 Adjusted net income ¹ Dividend on common stock RWA ² Merger-Related Items ³ 03/31/23 —% 2.5% 5.0% 7.5% 10.0% 12.5% (1) Excludes PAA, the initial provision, CDI amortization, and merger-related expenses. (2) Impacts of risk-weighted asset (“RWA”) changes excluding the impact of the merger. Also includes other slight adjustments. (3) The addition of equity from common shares issued and exchanged as a result of the merger was offset by the addition of historical Columbia RWA added at fair value (use of capital); goodwill and the CDI booked as a result of the merger; and the impacts of PAA, the initial provision, CDI amortization, and merger-related expenses. Total Risk-Based Capital Ratio 13.7% 0.5% (0.2)% (0.1)% (2.9)% 11.0% 12/31/22 Adjusted net income ¹ Dividend on common stock RWA ² Merger-Related Items ³ 03/31/23 —% 2.5% 5.0% 7.5% 10.0% 12.5% 15.0% 9.5% 8.9% 8.9% 11.0% 6.0% 7.0% 8.5% 10.5% 3.5% 1.9% 0.4% 0.5% Capital Threshold ¹ Capital Above Threshold ² Tier 1 Leverage ³ CET1 Tier 1 Risk-Based Total Risk-Based —% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% ■ Columbia’s capital ratios were impacted by the merger and the affect of interest rates on purchase accounting fair value adjustments. ■ We expect the quarterly net impact of purchase accounting to be highly accretive to earnings, as detailed on slides 4, 6, and 10 of this presentation. This outlook supports our view that capital is likely to build rapidly. ■ We expect to quickly approach and exceed our long-term CET1 and total risk-based capital targets of 9% and 12%, respectively, providing for enhanced flexibility to return excess capital to shareholders while continuing to support our expanding franchise. Note: Regulatory capital ratios are estimates pending completion and filing of Columbia’s regulatory reports. (1) Capital Threshold is the greater of Regulatory Well-Capitalized Threshold or Capital Adequacy Threshold + Capital Conservation Buffer. (2) Capital Above Threshold is the level of capital above Columbia’s Regulatory Minimum, which is equivalent to the Capital Threshold. (3) Tier 1 leverage ratio reflects the full impact of the merger in the numerator (tier 1 capital) but not the denominator (average assets for the leverage ratio) given the February 28, 2023 merger close.

 
APPENDIX Non-GAAP Reconciliation

 
Non-GAAP Reconciliation: Tangible Capital ($ in thousands, except per share data) Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Total shareholders' equity a $4,884,723 $2,479,826 $2,417,514 $2,518,276 $2,607,598 Less: Goodwill 1,030,142 — — — — Less: Other intangible assets, net 702,315 4,745 5,764 6,789 7,815 Tangible common shareholders’ equity b 3,152,266 2,475,081 2,411,750 2,511,487 2,599,783 Less: Accumulated other comprehensive income (AOCI) (300,134) (426,864) (449,560) (308,147) (183,756) Tangible common shareholders’ equity, ex AOCI c $3,452,400 $2,901,945 $2,861,310 $2,819,634 $2,783,539 Total assets d $53,994,226 $31,848,639 $31,471,960 $30,135,694 $30,637,126 Less: Goodwill 1,030,142 — — — — Less: Other intangible assets, net 702,315 4,745 5,764 6,789 7,815 Tangible assets e $52,261,769 $31,843,894 $31,466,196 $30,128,905 $30,629,311 Common shares outstanding at period end f 208,429 129,321 129,320 129,318 129,269 Total shareholders' equity to total assets ratio a / d 9.05 % 7.79 % 7.68 % 8.36 % 8.51 % Tangible common equity ratio b / e 6.03 % 7.77 % 7.66 % 8.34 % 8.49 % Tangible common equity ratio, ex AOCI c / e 6.61 % 9.11 % 9.09 % 9.36 % 9.09 % Book value per common share (1) a / f $23.44 $19.18 $18.69 $19.47 $20.17 Tangible book value per common share (1) b / f $15.12 $19.14 $18.65 $19.42 $20.11 Tangible book value per common share, ex AOCI (1) c / f $16.56 $22.44 $22.13 $21.80 $21.53 Footnotes: (1) Prior periods have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the merger of 0.5958. 32

 
Non-GAAP Reconciliation Footnotes: (1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 21% tax rate. For the Quarter Ended ($ in thousands) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Net interest income (1) c $ 375,369 $ 305,762 $ 287,933 $ 248,522 $ 229,117 Non-interest income (GAAP) d $ 54,735 $ 34,879 $ 29,445 $ 55,235 $ 79,969 Less: non-interest income adjustments a (8,074) 8,115 22,575 (951) (23,488) Operating non-interest income (non-GAAP) e $ 46,661 $ 42,994 $ 52,020 $ 54,284 $ 56,481 Revenue (GAAP) f $ 430,104 $ 340,641 $ 317,378 $ 303,757 $ 309,086 Operating revenue (non-GAAP) g $ 422,030 $ 348,756 $ 339,953 $ 302,806 $ 285,598 Non-interest expense (GAAP) h $ 342,818 $ 194,982 $ 177,964 $ 179,574 $ 182,430 Less: non-interest expense adjustments b (117,189) (13,603) (2,133) (3,114) (5,311) Operating non-interest expense (non-GAAP) i $ 225,629 $ 181,379 $ 175,831 $ 176,460 $ 177,119 Net (loss) income (GAAP) j $ (14,038) $ 82,964 $ 84,040 $ 78,591 $ 91,157 (Benefit) provision for income taxes (4,886) 29,464 27,473 26,548 30,341 (Loss) income before provision for income taxes (18,924) 112,428 111,513 105,139 121,498 Provision for credit losses 105,539 32,948 27,572 18,692 4,804 Pre-provision net revenue (PPNR) (non-GAAP) k 86,615 145,376 139,085 123,831 126,302 Less: Non-interest income adjustments a (8,074) 8,115 22,575 (951) (23,488) Add: Non-interest expense adjustments b 117,189 13,603 2,133 3,114 5,311 Operating PPNR (non-GAAP) l $ 195,730 $ 167,094 $ 163,793 $ 125,994 $ 108,125 Net income (GAAP) j $ (14,038) $ 82,964 $ 84,040 $ 78,591 $ 91,157 Less: Non-interest income adjustments a (8,074) 8,115 22,575 (951) (23,488) Add: Non-interest expense adjustments b 117,189 13,603 2,133 3,114 5,311 Tax effect of adjustments (23,565) (5,459) (6,116) (480) 4,576 Operating net income (non-GAAP) m $ 71,512 $ 99,223 $ 102,632 $ 80,274 $ 77,556 For the Quarter Ended ($ in thousands) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Non-Interest Income Adjustments Gain on sale of debt securities, net $ — $ — $ — $ — $ 2 Gain (loss) on equity securities, net 2,416 284 (2,647) (2,075) (2,661) (Loss) gain on swap derivatives (3,543) (2,329) 4,194 7,337 7,047 Change in fair value of certain loans held for investment 9,488 4,192 (26,397) (15,210) (21,049) Change in fair value of MSR due to valuation inputs or assumptions (2,937) (9,914) 16,403 10,899 40,149 MSR hedge gain (loss) 2,650 (348) (14,128) — — Total non-interest income adjustments a $ 8,074 $ (8,115) $ (22,575) $ 951 $ 23,488 Non-Interest Expense Adjustments Merger related expenses $ 115,898 $ 11,637 $ 769 $ 2,672 $ 2,278 Exit and disposal costs 1,291 1,966 1,364 442 3,033 Total non-interest expense adjustments b $ 117,189 $ 13,603 $ 2,133 $ 3,114 $ 5,311 33

 
Non-GAAP Reconciliation (cont.) For the Quarter Ended ($ in thousands, except per share data) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Select Per-Share & Performance Metrics Earnings-per-share - basic (1) j/r $ (0.09) $ 0.64 $ 0.65 $ 0.61 $ 0.71 Earnings-per-share - diluted (1) j/s $ (0.09) $ 0.64 $ 0.65 $ 0.61 $ 0.70 Efficiency ratio h/f 79.71 % 57.24 % 56.07 % 59.12 % 59.02 % PPNR return on average assets k/n 0.89 % 1.82 % 1.80 % 1.64 % 1.67 % Return on average assets j/n (0.14) % 1.04 % 1.09 % 1.04 % 1.21 % Return on average tangible assets j/o (0.15) % 1.04 % 1.09 % 1.04 % 1.21 % Return on average common equity j/p (1.70) % 13.50 % 12.99 % 12.20 % 13.62 % Return on average tangible common equity j/q (2.09) % 13.53 % 13.02 % 12.23 % 13.66 % Operating Per-Share & Performance Metrics Operating earnings-per-share - basic (1) m/r $ 0.46 $ 0.77 $ 0.79 $ 0.62 $ 0.60 Operating earnings-per-share - diluted (1) m/s $ 0.46 $ 0.76 $ 0.79 $ 0.62 $ 0.60 Operating efficiency ratio i/g 53.46 % 52.01 % 51.72 % 58.27 % 62.02 % Operating PPNR return on average assets l/n 2.01 % 2.10 % 2.12 % 1.66 % 1.43 % Operating return on average assets m/n 0.74 % 1.24 % 1.33 % 1.06 % 1.03 % Operating return on average tangible assets m/o 0.75 % 1.24 % 1.33 % 1.06 % 1.03 % Operating return on average common equity m/p 8.66 % 16.14 % 15.86 % 12.46 % 11.58 % Operating return on average tangible common equity m/q 10.64 % 16.18 % 15.90 % 12.49 % 11.62 % For the Quarter Ended ($ in thousands) Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Average Assets n $ 39,425,975 $ 31,637,490 $ 30,668,177 $ 30,356,903 $ 30,597,413 Less: Average goodwill and other intangible assets, net 623,042 5,298 6,343 7,379 8,407 Average tangible assets o $ 38,802,933 $ 31,632,192 $ 30,661,834 $ 30,349,524 $ 30,589,006 Average common shareholders’ equity p $ 3,349,761 $ 2,438,639 $ 2,567,266 $ 2,584,836 $ 2,715,059 Less: Average goodwill and other intangible assets, net 623,042 5,298 6,343 7,379 8,407 Average tangible common equity q $ 2,726,719 $ 2,433,341 $ 2,560,923 $ 2,577,457 $ 2,706,652 Weighted average basic shares outstanding (1) r 156,383 129,321 129,319 129,306 129,159 Weighted average diluted shares outstanding (1) s 156,383 129,801 129,733 129,673 129,693 Footnotes: (1) Prior periods have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the merger of 0.5958. 34

 
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