Columbia Banking System, Inc. · NASDAQ:COLB
Columbia Banking System — Q3 2025 Earnings Presentation
33 slides from Columbia Banking System's earnings presentation, Oct 30, 2025
Slide 1: 3rd Quarter 2025 Earnings Presentation
3rd Quarter 2025 Earnings Presentation October 30, 2025
Slide 2: Disclaimer
2 Disclaimer FORWARD-LOOKING STATEMENTS This communication may contain certain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements about the benefits of the acquisition of Pacific Premier Bancorp, Inc. (“Pacific Premier”) by Colu
Slide 3: West-Focused Regional Powerhouse
3 West-Focused Regional Powerhouse Columbia at a Glance Completed Western Footprint(3) Why Columbia? Ticker COLB ■ Business Bank of Choice strategy Corporate cultivates a granular, low-cost core deposit Market Capitalization(1) $7.9 billion base Dividend Yield(1) 5.5% ■ Compelling culture and Commun
Slide 4: Operating in Large, Attractive Western Markets
4 Operating in Large, Attractive Western Markets Established Presence throughout the West(1) Top Regional Bank in Northwest (WA, OR, ID)(1) Strong Foothold in Attractive Markets(1) (population in millions) Total Northwest Northwest Rank Bank (HQ State) Assets ($B) Deposits ($B) Mkt Shr ■ Our market
Slide 5: Opportunity to Increase Density and Gain Share throughout Our Footprint
5 Opportunity to Increase Density and Gain Share throughout Our Footprint Enhance Density in the Northwest Improve Competitive Position in California Broaden Presence in Other Western Markets Population Deposits ($mm) COLB Population Deposits ($mm) COLB Population Deposits ($mm) COLB MSA(1) (000s) M
Slide 6: Leveraging Technology to Improve Collaboration and Performance
6 Leveraging Technology to Improve Collaboration and Performance Creating Operational Efficiencies Enhancing the Customer Experience Driving Revenue Generation ■ Embracing AI capabilities to improve ■ Offering differentiated small business and ■ Building upon our recently acquired, best- associate p
Slide 7: Pacific Premier Acquisition: Efficient Closing with Minimal TBV Dilution
7 Pacific Premier Acquisition: Efficient Closing with Minimal TBV Dilution Expectations at Actual Results and ■ The integration management office (“IMO”) Announcement Updated Expectations has been leading our integration efforts, April 23, 2025 (1) August 31, 2025 tracking against key milestones, an
Slide 8: Financial Highlights
» Q Financial Highlights
Slide 9: Third Quarter 2025 Performance Highlights
9 Third Quarter 2025 Performance Highlights Reported Operating(1) ■ Closed our acquisition of Pacific Premier on August 31, 2025, elevating Columbia’s deposit market share to a top-10 position in $96 million $204 million Southern California. The acquisition completes our western footprint Net Income
Slide 10: YTD 2025 Performance Highlights
10 YTD 2025 Performance Highlights Reported Operating(1) ■ Our results for the nine months ended September 30, 2025 were impacted by merger expense and the initial provision associated with $335 million $503 million our acquisition of Pacific Premier. On an operating basis, pre- Net Income Net Incom
Slide 11: Diversified Commercial Bank Business Model Supports Granular, High-Quality Deposit Base
11 Our Diversified Commercial Bank Business Model with a Strong Retail Network Supports our Granular, High-Quality Deposit Base Enterprise-wide Deposit Composition Deposits by Category Customer Deposit Composition(1) Commercial - Small Business, 29% Non-interest, 32% Demand, 21% Non-interest, 34% De
Slide 12: Securities Portfolio Overview
12 Securities Portfolio Overview Available-for-Sale Securities Portfolio as of September 30, 2025 Available-for-Sale Securities Portfolio % at Gain / Loss as of September 30, 2025 % of Total Current Amortized Unrealized Unrealized AFS Effective ($ in millions) Par Cost Gains Losses Fair Value Portfo
Slide 13: Loan Roll Forward Activity
13 Loan Roll Forward Activity Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025 $11,462 $48,462 $11,510 $48,462 $ in millions $ in millions $3,096 $1,191 $37,637 $37,681 ($573) ($174) ($1,882) ($787) ($867) ($1,370) Beginning New Net Prepayments Payoffs or Other¹ Ending Begi
Slide 14: Diversified, High Quality Loan and Lease Portfolio
14 Diversified, High Quality Loan and Lease Portfolio Mortgage Portfolio Composition at September 30, 2025 Owner Occupied CRE • Portfolio average loan size of $1.2 million • Portfolio average loan size of $474,000 Multifamily, 21% Other Loan • 3Q25 average loan size of $2.8 million • 3Q25 average lo
Slide 15: C&I and CRE Portfolio Composition
15 C&I and CRE Portfolio Composition C&I Portfolio Composition(1) CRE Portfolio Composition(1) Other, 10.6% Special Purpose, 7.7% Other Healthcare, 4.4% Hotel/Motel, 3.8% Retail, 9.9% Agriculture, 8.3% Dentists, 5.5% Other, 10.3% Gaming, 9.2% Contractors, 8.1% Industrial, 14.6% $11.8 $26.2 Office, 1
Slide 16: Office Portfolio Details
16 Office Portfolio Details Office Portfolio Metrics at September 30, 2025 Number of Loans by Balance ■ Loans secured by office properties 1,903 represented 8% of our total loan portfolio Average loan size $1.4 million 1,746 1,719 as of September 30, 2025. Average LTV 59% ■ Our office portfolio is 4
Slide 17: Continued Strong Credit Quality
17 Continued Strong Credit Quality Allowance for Credit Losses ("ACL") ■ The remaining credit discount on loans of 1.34% 1.33% 1.32% 1.31% 1.34% $157 million as of September 30, 2025 provides an additional 33 basis points of 1.17% 1.17% 1.17% 1.17% 1.01% loss absorption when added to the ACL of $157
Slide 18: ACL Reflects Strong Portfolio Credit Metrics
18 ACL Reflects Strong Portfolio Credit Metrics Allowance for Credit Losses by Loan Segment Total ACL Remaining including Residential Credit Credit Lease & Commercial & Home Discount on Discount on ($ in millions) Commercial Equipment Real Estate Equity Consumer Total(1) Loans Loans(1) Balance as of
Slide 19: Capital Management
19 Capital Management Regulatory Capital Ratios: Bank & Holding Company as of September 30, 2025 Capital Ratios Continue to Trend Up 14.0% 13.1% 13.4% 14.0% 13.0% 13.4% 12.5% 12.8% 12.9% 12.1% 12.1% 11.4% 11.6% 11.6% 11.6% 12.0% 10.9% 12.0% 10.6% 10.8% 10.3% 10.5% 10.0% 10.0% 8.0% 8.0% 6.0% 6.0% 4.0
Slide 20: Net Interest Income and Net Interest Margin
20 Net Interest Income and Net Interest Margin Net Interest Income and Net Interest Margin Net Interest Margin: Q2 2025 vs Q3 2025 $505 $430 $437 $446 $425 0.06% 3.84% 0.04% 3.75% 0.02% 0.02% 3.84% 3.75% (0.05)% 3.64% 3.60% 3.56% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q2 2025 Loans Investments Cash
Slide 21: Interest Rate Sensitivity
21 Interest Rate Sensitivity Interest Rate Simulation Impact on Net Interest Income at September 30, 2025(1) Deposit and Funding Repricing Betas During Current Rate Cycle Ramp Shock Cost of: Year 1 Year 2 Year 1 Year 2 Effective Fed Interest- Up 200 basis points (0.3)% 2.7% (0.2)% 4.6% Funds Rate Be
Slide 22: Non-Interest Income
22 Non-Interest Income Total Non-Interest Income Operating Non-Interest Income¹ $77 $72 $66 $72 $59 $56 $56 $66 $66 $65 $66 $ in millions $59 $ in millions $56 $56 $50 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Other Treasury Mgmt Card & Merchant Wealth Mgmt Depo
Slide 23: Non-Interest Expense
23 Non-Interest Expense Non-Interest Expense ("NIE") Non-Interest Expense: Q2 2025 vs Q3 2025 $393 $78 $393 $34 $2 $1 $340 $278 $ in millions $307 $ in millions $278 $271 $268 $267 $264 $270 $270 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q2 2025 NIE Pacific Services Misc. Other Non- Q3 2025 NIE GAAP N
Slide 24: Appendix
Appendix 24
Slide 25: Balance Sheet Optimization: Transactional Loans to Reprice or Run-Off
25 Balance Sheet Optimization: Transactional Loans to Reprice or Run-Off Transactional Loan Balances and Repricing Schedule as of September 30, 2025 June 30, 2025 Prioritizing Relationships & Profitability < 1 year 1 to 2 years 2 to 3 years > 3 years Total Total ■ Our relationship-based lending vert
Slide 26: Liquidity Overview
26 Liquidity Overview Select Balance Sheet Items Total Off-Balance Sheet Liquidity Available at September 30, 2025 Sequential Gross Net Quarter ($ in millions) Availability Utilization Availability Three Months Ended Change FHLB lines $15,785 $2,426 $13,359 ($ in millions) Q3 2025 Q2 2025 Q3 2024 Q3
Slide 27: Summary Income Statements
27 Summary Income Statements For the Quarter Ended Q3 2025 Highlights (compared to Q2 2025) ($ in millions, except per-share data) Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 ■ Net interest income increased by $59 Net interest income before provision $505 $446 $425 $437 $430 million, due to one month op
Slide 28: Summary Period-End Balance Sheets
28 Summary Period-End Balance Sheets ($ in millions, except per-share data) Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q3 2025 Highlights (compared to Q2 2025) ASSETS: ■ Loan balances increased in Q3 2025, due Total assets $67,496 $51,901 $51,519 $51,576 $51,909 to the acquisition of Pacific Premier, I
Slide 29: Non-GAAP Reconciliation: Tangible Capital
29 Non-GAAP Reconciliation: Tangible Capital ($ in millions, except per-share data) 9/30/2025 6/30/2025 3/31/2025 12/31/2024 9/30/2024 Total shareholders' equity a $7,790 $5,342 $5,238 $5,118 $5,274 Less: Goodwill 1,481 1,029 1,029 1,029 1,029 Less: Other intangible assets, net 754 430 456 484 513 T
Slide 30: Non-GAAP Reconciliation: Adjustments and Average Balances
30 Non-GAAP Reconciliation: Adjustments and Average Balances For the Quarter Ended For the Nine Months Ended ($ in millions, except share data) 9/30/2025 6/30/2025 3/31/2025 12/31/2024 9/30/2024 9/30/2025 9/30/2024 Non-Interest Income Adjustments Gain on investment securities, net $2 $— $2 ($1) $2 $
Slide 31: Non-GAAP Reconciliation: Income Statements
31 Non-GAAP Reconciliation: Income Statements For the Quarter Ended For the Nine Months Ended ($ in millions) 9/30/2025 6/30/2025 3/31/2025 12/31/2024 9/30/2024 9/30/2025 9/30/2024 Net interest income c $505 $446 $425 $437 $430 $1,376 $1,281 Non-interest income (GAAP) d $77 $65 $66 $50 $66 $208 $161
Slide 32: Non-GAAP Reconciliation: Earnings Per-Share and Performance Metrics
32 Non-GAAP Reconciliation: Earnings Per-Share and Performance Metrics For the Quarter Ended For the Nine Months Ended ($ in millions, except per-share data) 9/30/2025 6/30/2025 3/31/2025 12/31/2024 9/30/2024 9/30/2025 9/30/2024 Select Per-Share & Performance Metrics Earnings per share - basic j/r $
Slide 33: Non-GAAP Reconciliation: Operating Efficiency Ratio, as Adjusted
33 Non-GAAP Reconciliation: Operating Efficiency Ratio, as Adjusted For the Quarter Ended For the Nine Months Ended ($ in millions) 9/30/2025 6/30/2025 3/31/2025 12/31/2024 9/30/2024 9/30/2025 9/30/2024 Non-interest expense (GAAP) h $393 $278 $340 $267 $271 $1,011 $838 Less: Non-interest expense adj
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