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Published: 2023-07-19 00:00:00 ET
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EX-99.1 2 colb-20230630ex991earnings.htm PRESS RELEASE ANNOUNCING SECOND QUARTER 2023 FINANCIAL RESULTS Document
EXHIBIT 99.1
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Second Quarter 2023 Results
•Net income of $133 million, or $0.64 per common share
•Operating net income of $169 million, or $0.81 per common share1
•Consolidated asset balances of $54 billion at quarter end        
•Loan balances of $37 billion and deposit balances of $41 billion at quarter end
•Estimated CET1 and total capital ratios of 9.1% and 11.1% at quarter end
00
COLUMBIA BANKING SYSTEM, INC. REPORTS SECOND QUARTER 2023 RESULTS
$0.64$0.81$23.16$15.02
Earnings 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
"Our teams continued to drive success during the second quarter, which was characterized by further integration progress and relationship-focused business activity,” said Clint Stein, President and CEO. “We successfully completed planned branch consolidations during the quarter, and though merger-related expenses continued to impact our reported results, we remain on track to achieve our guided cost-savings expectations by the end of the third quarter, with additional opportunities already identified. We are not immune to quantitative actions affecting industry deposit balances and contributing to the modest remix of our deposit base. However, our talented associates, service-driven operating model, and expansion in newer markets provide us with the opportunities and resources to retain our favorable placement within the industry.”
–Clint Stein, President and CEO of Columbia Banking System, Inc.
2Q23 HIGHLIGHTS (COMPARED TO 1Q23)
Net Interest Income and NIM
•Net interest income increased by $109 million or 29% on a linked-quarter basis due to the full quarter run rate as a combined organization, which offset the impact of higher funding costs related to deposit and liability mix shift and rising interest rates.
•Net interest margin was 3.93%, down 15 basis points from the prior quarter. Excluding purchase accounting accretion and amortization, net interest margin was 3.32%, down 41 basis points from the prior quarter due primarily to higher funding costs.
Non-Interest Income and Expense
•Non-interest income decreased by $15 million due primarily to a $24 million linked-quarter unfavorable change related to cumulative non-merger fair value accounting and hedges.
•Non-interest expense decreased by $14 million as lower merger-related expenses and the realization of cost savings offset the full quarter run rate of the combined organization.
Credit Quality
•Net charge-offs were 0.30% of average loans and leases (annualized) and centered in the FinPac portfolio.
•Provision expense of $16 million reflects stabilizing credit trends in the FinPac portfolio, changes in the economic forecasts used in credit models, and portfolio mix changes.
•Non-performing assets to total assets was 0.15%.
Capital
•Estimated total risk-based capital ratio of 11.1% and estimated common equity tier 1 risk-based capital ratio of 9.1%.
•Declared a quarterly cash dividend of $0.36 per common share on May 15, 2023, which was paid June 15, 2023.
Notable items
•Sold $373 million in non-relationship loans and reclassified an additional $118 million to loans held for sale.
•Entered into an agreement to sell approximately one-third of the MSR portfolio, which relates to the non-relationship component of the serviced loan portfolio.
•$30 million in merger-related expenses.
2Q23 KEY FINANCIAL DATA
PERFORMANCE METRICS
2Q23
1Q23
2Q22
Return on average assets1.00%(0.14)%1.04%
Return on average tangible common equity1
16.63%(2.09)%12.23%
Operating return on average assets1
1.27%0.74%1.06%
Operating return on average tangible common equity1
21.13%10.64%12.49%
Net interest margin3.93%4.08%3.41%
Adjusted net interest margin1
3.32%3.73%3.40%
Efficiency ratio62.60%79.71%59.12%
INCOME STATEMENT
($ in 000s, excl. per share data)
2Q23
1Q23
2Q22
Net interest income$483,975$374,698$248,170
Provision for credit losses$16,014$105,539$18,692
Non-interest income$39,678$54,735$55,235
Non-interest expense$328,559$342,818$179,574
Pre-provision net revenue 1
$195,094$86,615$123,831
Operating pre-provision net revenue1
$243,114$195,730$125,994
Earnings per common share - diluted 2
$0.64($0.09)$0.61
Operating earnings per common share - diluted 1,2
$0.81$0.46$0.62
Dividends paid per share 2
$0.36$0.35$0.35
BALANCE SHEET
2Q23
1Q23
2Q22
Total assets$53.6 B$54.0 B$30.1 B
Loans and leases$37.0 B$37.1 B$24.4 B
Total deposits$40.8 B$41.6 B$26.1 B
Book value per common share 2
$23.16$23.44$19.47
Tangible book value per share1,2$15.02$15.12$19.42
Tangible book value per share, ex AOCI 1,2
$17.03$16.56$21.80
Investor Contact
Jacquelynne "Jacque" Bohlen, SVP/Investor Relations Director, 503-727-4117, jacquebohlen@umpquabank.com
1 "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for the comparable GAAP measurement.
2 Periods prior to February 28, 2023, have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the UHC merger of 0.5958.


Columbia Banking System, Inc. Reports Second Quarter 2023 Results
July 19, 2023
Page 2


Organizational Update
Columbia Banking System, Inc. ("Columbia", "we", or "our") completed the planned consolidation of 47 branches during the latter half of the second quarter. We remain on track to realize the previously communicated $135 million in annualized cost-savings expectations by the end of the third quarter.

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

Net Interest Income
Net interest income was $484 million for the second quarter of 2023, up $109 million from the prior quarter. The increase, which includes $74 million of purchase accounting accretion and amortization compared to $32 million in the first quarter, reflects the benefit of a full quarter run rate as a combined organization, partially offset by higher funding costs related to deposit and liability mix shift and rising interest rates.

Columbia's net interest margin was 3.93% for the second quarter of 2023, down 15 basis points from 4.08% for the first quarter of 2023. Excluding purchase accounting accretion and amortization, the net interest margin was 3.32% for the second quarter of 2023 compared to 3.73% for the first quarter of 2023. The cost of interest-bearing deposits increased 32 basis points on a linked-quarter basis to 1.64% for the second quarter of 2023, which compares to 1.83% for both the month of June and at June 30, 2023. Please refer to the Q2 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 $40 million for the second quarter of 2023, down $15 million from the prior quarter. A $24 million unfavorable change in cumulative fair value adjustments and mortgage servicing rights ("MSR") hedging activity offset the benefit of the full quarter run rate as a combined organization. A net fair value loss of $16 million in the second quarter compares to a net fair value gain of $8 million in the first quarter, as detailed in our non-GAAP disclosures. The planned sale of approximately one-third of our MSR and the associated accounting treatment was the primary driver of the ineffectiveness of our MSR hedging activity during the second quarter. The transaction, which we expect to close at the end of the third quarter or beginning of the fourth quarter, relates to a non-relationship component of our serviced loan portfolio, and the transaction is expected to be accretive to capital given the impact to risk-weighted assets from the reduction in our MSR balance.

Non-interest Expense
Non-interest expense was $329 million for the second quarter of 2023, down $14 million from the prior quarter level. The decrease reflects an $86 million decline in merger-related expenses, which were $30 million in the second quarter, and the realization of cost savings, with the impact partially offset by the full quarter run rate of the combined organization. Please refer to the Q2 2023 Earnings Presentation for additional expense details, including an update on realized merger-related cost-savings through June 30, 2023.

Balance Sheet
Total consolidated assets were $53.6 billion as of June 30, 2023, compared to $54.0 billion as of March 31, 2023. Cash and cash equivalents was $3.4 billion as of June 30, 2023, a decrease of $228 million relative to March 31, 2023. We continued to maintain a higher on-balance sheet level of liquidity during the second quarter. Including secured off-balance sheet lines of credit, total available liquidity was $18.1 billion as of June 30, 2023, representing 34% of total assets, 44% of total deposits, and 134% of uninsured deposits. Please refer to the Q2 2023 Earnings Presentation for additional details related to our liquidity position.
 
Available for sale securities, which are held on balance sheet at fair value, were $9.0 billion as of June 30, 2023, a decrease of $251 million relative to March 31, 2023, as paydowns and a decline in the fair value of the portfolio were only partially offset by accretion of the discount on historical Columbia securities. Please refer to the Q2 2023 Earnings Presentation for additional details related to our securities portfolio.


Columbia Banking System, Inc. Reports Second Quarter 2023 Results
July 19, 2023
Page 3



Gross loans and leases were $37.0 billion as of June 30, 2023, essentially unchanged from March 31, 2023, as net organic growth during the quarter was offset by the sale of $373 million in loans and the corresponding reclassification of $118 million in balances to loans held for sale. "We elected to sell approximately $500 million in loans that were transactional in nature during the quarter," commented Chris Merrywell, President of Umpqua Bank. "Our teams remain focused on generating balanced growth through existing and new customer relationships, which contributed to 5% annualized growth in the second quarter when loan sales and transfers are excluded." Please refer to the Q2 2023 Earnings Presentation for additional details related to our loan portfolio, which include underwriting characteristics, the composition of our commercial portfolios, and disclosure related to our office portfolio.

Total deposits were $40.8 billion as of June 30, 2023, a decrease of $751 million relative to March 31, 2023. "Our deposit balances continued to be affected by market liquidity tightening, the impact of inflation on customer spending, and commercial customers' deployment of cash, which includes tax payments," stated Mr. Merrywell. "Declining balances do not reflect customer attrition, and to date we have not experienced any adverse impact from the planned branch consolidations completed during the quarter given our teams' dedication to limiting any potential disruption to customers from the activity." Please refer to the Q2 2023 Earnings Presentation for additional details related to deposit characteristics and flows.

Credit Quality
The allowance for credit losses was $424 million, or 1.15% of loans and leases, as of June 30, 2023, compared to $436 million, or 1.18% of loans and leases, as of March 31, 2023. The provision for credit losses was $16 million for the second quarter of 2023 and is reflective of stabilizing credit trends in the FinPac portfolio; changes between the February 2023 and May 2023 economic forecasts; and portfolio mix changes, which include the reserve release associated with loan sales completed during the quarter. Please refer to the Q2 2023 Earnings Presentation for additional details related to the allowance for credit losses and other credit trends.

Net charge-offs were 0.30% of average loans and leases (annualized) for the second quarter of 2023, compared to 0.23% for the first quarter of 2023. Net charge-off activity continued to be centered in the FinPac portfolio, which experienced an anticipated increase in charge-offs. Bank charge-off activity remained low at 0.03% of average bank loans. As of June 30, 2023, non-performing assets were $80 million, or 0.15% of total assets, compared to $76 million, or 0.14% as of March 31, 2023.

Capital
As of June 30, 2023, Columbia's book value per common share decreased to $23.16, compared to $23.44 at March 31, 2023. The linked-quarter change in book value primarily reflects a change in accumulated other comprehensive (loss) income ("AOCI") to $(419) million at June 30, 2023, compared to $(300) 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 $403 million at June 30, 2023, compared to $295 million at March 31, 2023. Tangible book value per common share3 decreased to $15.02, compared to $15.12 at March 31, 2023.

Columbia's estimated total risk-based capital ratio was 11.1% and its estimated common equity tier 1 risk-based capital ratio was 9.1% as of June 30, 2023, compared to 10.9% and 8.9%, respectively, at March 31, 2023. Columbia remains above current “well-capitalized” regulatory minimums. "Our regulatory capital ratios expanded as anticipated during the second quarter, due in part to the realization of loan and investment securities discount accretion," stated Ron Farnsworth, Chief Financial Officer of Columbia. "We expect meaningful capital build over time to enhance future deployment opportunities." The regulatory capital ratios as of June 30, 2023 are estimates, pending completion and filing of Columbia's regulatory reports.


Earnings Presentation and Conference Call Information
Columbia's Q2 2023 Earnings Presentation provides additional disclosure. A copy will be available on our investor relations page: www.columbiabankingsystem.com.

Columbia will host its second quarter 2023 earnings conference call on July 19, 2023, at 2:30 p.m. PT (5:30 p.m. ET). During the call, Columbia's management will provide an update on recent activities and discuss its second 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/BIdd0fac4229134dff9718a687c2bb37fc
Join the audiocast: https://edge.media-server.com/mmc/p/9uf3dn2p
Access the replay through Columbia's investor relations page: www.columbiabankingsystem.com

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


Columbia Banking System, Inc. Reports Second Quarter 2023 Results
July 19, 2023
Page 4


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.

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 UHC merger when expected or at all; the possibility that the integration following the UHC merger may be more expensive than anticipated, including as a result of unexpected factors or events, diversion of management’s attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the UHC merger and integration of the companies; the effect of geopolitical instability, including wars, conflicts and terrorist attacks; and natural disasters and other similar unexpected events outside of our control. We also caution that the amount and timing of any future common stock dividends or repurchases will depend on the earnings, cash requirements and financial condition of Columbia, market conditions, capital requirements, applicable law and regulations (including federal securities laws and federal banking regulations), and other factors deemed relevant by Columbia's Board of Directors, and may be subject to regulatory approval or conditions.



Columbia Banking System, Inc. Reports Second Quarter 2023 Results
July 19, 2023
Page 5






Columbia Banking System, Inc. Reports Second Quarter 2023 Results
July 19, 2023
Page 6


Columbia Banking System, Inc.
Consolidated Statements of Operations
(Unaudited)
 Quarter Ended% Change
($ in thousands, except per share data)Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Seq.
Quarter		Year over Year
Interest income:     
Loans and leases$552,679 $413,525 $322,350 $278,830 $234,674 34 %136 %
Interest and dividends on investments: 
Taxable79,036 39,729 18,108 18,175 17,256 99 %358 %
Exempt from federal income tax6,817 3,397 1,288 1,322 1,369 101 %398 %
Dividends2,581 719 182 86 84 259 %nm
Temporary investments and interest bearing deposits34,616 18,581 10,319 5,115 2,919 86 %nm
Total interest income675,729 475,951 352,247 303,528 256,302 42 %164 %
Interest expense:     
Deposits100,408 63,613 31,174 9,090 4,015 58 %nm
Securities sold under agreement to repurchase and federal funds purchased1,071 406 323 545 66 164 %nm
Borrowings81,004 28,764 8,023 798 50 182 %nm
Junior and other subordinated debentures9,271 8,470 7,248 5,491 4,001 9 %132 %
Total interest expense191,754 101,253 46,768 15,924 8,132 89 %nm
Net interest income483,975 374,698 305,479 287,604 248,170 29 %95 %
Provision for credit losses16,014 105,539 32,948 27,572 18,692 (85)%(14)%
Non-interest income:     
Service charges on deposits16,454 14,312 12,139 12,632 12,011 15 %37 %
Card-based fees13,435 11,561 9,017 9,115 10,530 16 %28 %
Financial services and trust revenue4,512 1,297 25 27 27 248 %nm
Residential mortgage banking (loss) revenue, net(2,342)7,816 (1,812)17,341 30,544 (130)%(108)%
(Loss) gain on equity securities, net(697)2,416 284 (2,647)(2,075)(129)%(66)%
Gain on loan and lease sales, net442 940 1,531 1,525 1,303 (53)%(66)%
BOLI income4,063 2,790 2,033 2,023 2,110 46 %93 %
Other income (loss) 3,811 13,603 11,662 (10,571)785 (72)%385 %
Total non-interest income39,678 54,735 34,879 29,445 55,235 (28)%(28)%
Non-interest expense:     
Salaries and employee benefits163,398 136,092 107,982 109,164 110,942 20 %47 %
Occupancy and equipment, net50,550 41,700 34,021 35,042 34,559 21 %46 %
Intangible amortization35,553 12,660 1,019 1,025 1,026 181 %nm
FDIC assessments11,579 6,113 3,487 3,007 2,954 89 %292 %
Merger related expenses29,649 115,898 11,637 769 2,672 (74)%nm
Other expenses37,830 30,355 36,836 28,957 27,421 25 %38 %
Total non-interest expense328,559 342,818 194,982 177,964 179,574 (4)%83 %
Income (loss) before provision (benefit) for income taxes179,080 (18,924)112,428 111,513 105,139 nm70 %
Provision (benefit) for income taxes45,703 (4,886)29,464 27,473 26,548 nm72 %
Net income (loss)$133,377 $(14,038)$82,964 $84,040 $78,591 nm70 %
Weighted average basic shares outstanding (1)
207,977 156,383 129,321 129,319 129,306 33  %61 %
Weighted average diluted shares outstanding (1)
208,545 156,383 129,801 129,733 129,673 33  %61  %
Earnings (loss) per common share – basic (1)
$0.64 $(0.09)$0.64 $0.65 $0.61 nm5 %
Earnings (loss) per common share – diluted (1)
$0.64 $(0.09)$0.64 $0.65 $0.61 nm5 %
nm = not meaningful     

(1) Periods prior to February 28, 2023, have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the UHC merger of 0.5958.



Columbia Banking System, Inc. Reports Second Quarter 2023 Results
July 19, 2023
Page 7



Columbia Banking System, Inc.
Consolidated Statements of Operations
(Unaudited)
 Six Months Ended% Change
($ in thousands, except per share data)Jun 30, 2023Jun 30, 2022Year over Year
Interest income:   
Loans and leases$966,204 $449,078 115 %
Interest and dividends on investments:
Taxable118,765 35,981 230 %
Exempt from federal income tax10,214 2,741 273 %
Dividends3,300 170 nm
Temporary investments and interest bearing deposits53,197 4,272 nm
Total interest income1,151,680 492,242 134 %
Interest expense: 
Deposits164,021 7,931 nm
Securities sold under agreement to repurchase and federal funds purchased1,477 129 nm
Borrowings109,768 99 nm
Junior and other subordinated debentures17,741 7,150 148 %
Total interest expense293,007 15,309 nm
Net interest income858,673 476,933 80 %
Provision for credit losses121,553 23,496 417 %
Non-interest income: 
Service charges on deposits30,766 23,594 30 %
Card-based fees24,996 19,238 30 %
Brokerage revenue5,809 38 nm
Residential mortgage banking revenue, net5,474 91,330 (94)%
Gain on sale of debt securities, net— 2 (100)%
Gain (loss) on equity securities, net1,719 (4,736)nm
Gain on loan and lease sales, net1,382 3,640 (62)%
BOLI income6,853 4,197 63 %
Other income (loss)17,414 (2,099)nm
Total non-interest income94,413 135,204 (30)%
Non-interest expense: 
Salaries and employee benefits299,490 224,080 34 %
Occupancy and equipment, net92,250 69,388 33 %
Intangible amortization48,213 2,051 nm
FDIC assessments17,692 7,470 137 %
Merger related expenses145,547 4,950 nm
Other expenses68,185 54,065 26 %
Total non-interest expense671,377 362,004 85 %
Income before provision for income taxes160,156 226,637 (29)%
Provision for income taxes40,817 56,889 (28)%
Net income$119,339 $169,748 (30)%
Weighted average basic shares outstanding (1)
182,325 129,233 41 %
Weighted average diluted shares outstanding (1)
182,860 129,685 41  %
Earnings per common share – basic (1)
$0.65 $1.31 (50)%
Earnings per common share – diluted (1)
$0.65 $1.31 (50)%
nm = not meaningful   

(1) Periods prior to February 28, 2023, have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the UHC merger of 0.5958.


Columbia Banking System, Inc. Reports Second Quarter 2023 Results
July 19, 2023
Page 8


Columbia Banking System, Inc.
Consolidated Balance Sheets
(Unaudited)
    % Change
($ in thousands, except per share data)Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Seq.
Quarter		Year over Year
Assets:     
Cash and due from banks$538,653 $555,919 $327,313 $321,447 $315,348 (3)%71 %
Interest bearing cash and temporary investments2,868,563 3,079,266 967,330 1,232,412 687,233 (7)%317 %
Investment securities:     
Equity and other, at fair value76,361 76,532 72,959 72,277 75,347 0 %1 %
Available for sale, at fair value8,998,428 9,249,600 3,196,166 3,136,391 3,416,707 (3)%163 %
Held to maturity, at amortized cost2,388 2,432 2,476 2,547 2,637 (2)%(9)%
Loans held for sale183,633 49,338 71,647 148,275 228,889 272 %(20)%
Loans and leases37,049,299 37,091,280 26,155,981 25,507,951 24,432,678 0 %52 %
Allowance for credit losses on loans and leases(404,603)(417,464)(301,135)(283,065)(261,111)(3)%55 %
Net loans and leases36,644,696 36,673,816 25,854,846 25,224,886 24,171,567 0 %52 %
Restricted equity securities258,524 246,525 47,144 40,993 10,867 5 %nm
Premises and equipment, net368,698 375,190 176,016 165,305 165,196 (2)%123 %
Operating lease right-of-use assets119,255 127,296 78,598 81,729 87,249 (6)%37 %
Goodwill1,029,234 1,030,142 — — — 0 %nm
Other intangible assets, net666,762 702,315 4,745 5,764 6,789 (5)%nm
Residential mortgage servicing rights, at fair value172,929 178,800 185,017 196,177 179,558 (3)%(4)%
Bank owned life insurance643,727 641,922 331,759 329,699 328,764 0 %96 %
Deferred tax asset, net362,880 351,229 132,823 128,120 70,134 3 %417 %
Other assets657,365 653,904 399,800 385,938 389,409 1 %69 %
Total assets$53,592,096 $53,994,226 $31,848,639 $31,471,960 $30,135,694 (1)%78 %
Liabilities:     
 Deposits
Non-interest bearing$16,019,408 $17,215,781 $10,288,849 $11,246,358 $11,129,209 (7)%44 %
Interest bearing24,815,509 24,370,566 16,776,763 15,570,749 15,003,214 2 %65 %
  Total deposits40,834,917 41,586,347 27,065,612 26,817,107 26,132,423 (2)%56 %
Securities sold under agreements to repurchase294,914 271,047 308,769 383,569 527,961 9 %(44)%
Borrowings6,250,000 5,950,000 906,175 756,214 6,252 5 %nm
Junior subordinated debentures, at fair value312,872 297,721 323,639 325,744 321,268 5 %(3)%
Junior and other subordinated debentures, at amortized cost108,009 108,066 87,813 87,870 87,927 0 %23 %
Operating lease liabilities132,099 140,648 91,694 95,512 101,352 (6)%30 %
Other liabilities831,097 755,674 585,111 588,430 440,235 10 %89 %
Total liabilities48,763,908 49,109,503 29,368,813 29,054,446 27,617,418 (1)%77 %
Shareholders' equity:     
Common stock5,792,792 5,788,553 3,450,493 3,448,007 3,445,531 0 %68 %
Accumulated deficit(545,842)(603,696)(543,803)(580,933)(619,108)(10)%(12)%
Accumulated other comprehensive loss(418,762)(300,134)(426,864)(449,560)(308,147)40 %36 %
Total shareholders' equity4,828,188 4,884,723 2,479,826 2,417,514 2,518,276 (1)%92 %
Total liabilities and shareholders' equity$53,592,096 $53,994,226 $31,848,639 $31,471,960 $30,135,694 (1)%78 %
Common shares outstanding at period end (2)
208,514 208,429 129,321 129,320 129,318 0  %61  %
Book value per common share (2)
$23.16 $23.44 $19.18 $18.69 $19.47 (1)%19 %
Tangible book value per common share (1),(2)
$15.02 $15.12 $19.14 $18.65 $19.42 (1)%(23)%
Tangible equity - common (1),(2)
$3,132,192 $3,152,266 $2,475,081 $2,411,750 $2,511,487 (1)%25 %
Tangible common equity to tangible assets (1)
6.04 %6.03 %7.77 %7.66 %8.34 %0.01(2.30)
nm = not meaningful
(1) See GAAP to Non-GAAP Reconciliation.
(2) Periods prior to February 28, 2023, have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the UHC merger of 0.5958.


Columbia Banking System, Inc. Reports Second Quarter 2023 Results
July 19, 2023
Page 9


Columbia Banking System, Inc.
Financial Highlights
(Unaudited)
 Quarter Ended% Change
 Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Seq. QuarterYear over Year
Per Common Share Data: (5)
Dividends (5)
$0.36 $0.35 $0.35 $0.35 $0.35 3 %3 %
Book value (5)
$23.16 $23.44 $19.18 $18.69 $19.47 (1)%19 %
Tangible book value (1),(5)
$15.02 $15.12 $19.14 $18.65 $19.42 (1)%(23)%
Tangible book value, ex accumulated other comprehensive income (1),(5)
$17.03 $16.56 $22.44 $22.13 $21.80 3 %(22)%
Performance Ratios:
Efficiency ratio62.60 %79.71 %57.24 %56.07 %59.12 %(17.11)3.48 
Return on average assets ("ROAA")1.00 %(0.14)%1.04 %1.09 %1.04 %1.14 (0.04)
Pre-provision net revenue ("PPNR") ROAA (1)
1.46 %0.89 %1.82 %1.80 %1.64 %0.57 (0.18)
Return on average common equity10.84 %(1.70)%13.50 %12.99 %12.20 %12.54 (1.36)
Return on average tangible common equity (1)
16.63 %(2.09)%13.53 %13.02 %12.23 %18.72 4.40 
Performance Ratios - Operating: (1)
Operating efficiency ratio (1)
54.85 %53.46 %52.01 %51.72 %58.27 %1.39 (3.42)
Operating return on average assets (1)
1.27 %0.74 %1.24 %1.33 %1.06 %0.53 0.21 
Operating PPNR return on average assets (1)
1.82 %2.01 %2.10 %2.12 %1.66 %(0.19)0.16 
Operating return on average common equity (1)
13.77 %8.66 %16.14 %15.86 %12.46 %5.11 1.31 
Operating return on average tangible common equity (1)
21.13 %10.64 %16.18 %15.90 %12.49 %10.49 8.64 
Average Balance Sheet Yields, Rates, & Ratios:     
Yield on loans and leases5.95 %5.55 %4.92 %4.41 %3.94 %0.40 2.01 
Yield on earning assets (2)
5.48 %5.19 %4.62 %4.10 %3.53 %0.29 1.95 
Cost of interest bearing deposits1.64 %1.32 %0.77 %0.23 %0.11 %0.32 1.53 
Cost of interest bearing liabilities2.45 %1.82 %1.05 %0.39 %0.20 %0.63 2.25 
Cost of total deposits0.99 %0.80 %0.46 %0.14 %0.06 %0.19 0.93 
Cost of total funding (3)
1.61 %1.16 %0.65 %0.23 %0.12 %0.45 1.49 
Net interest margin (2)
3.93 %4.08 %4.01 %3.88 %3.41 %(0.15)0.52 
Average interest bearing cash / Average interest earning assets5.47 %4.33 %3.62 %3.04 %5.71 %1.14 (0.24)
Average loans and leases / Average interest earning assets75.18 %80.96 %85.32 %84.54 %80.91 %(5.78)(5.73)
Average loans and leases / Average total deposits90.98 %93.01 %95.85 %93.55 %89.23 %(2.03)1.75 
Average non-interest bearing deposits / Average total deposits40.05 %39.55 %40.30 %42.29 %42.00 %0.50 (1.95)
Average total deposits / Average total funding (3)
85.59 %91.36 %94.52 %96.34 %96.66 %(5.77)(11.07)
Select Credit & Capital Ratios:
Non-performing loans and leases to total loans and leases
0.22 %0.20 %0.22 %0.20 %0.18 %0.02 0.04 
Non-performing assets to total assets
0.15 %0.14 %0.18 %0.16 %0.15 %0.01 — 
Allowance for credit losses to loans and leases1.15 %1.18 %1.21 %1.16 %1.12 %(0.03)0.03 
Total risk-based capital ratio (4)
11.1 %10.9 %13.7 %13.2 %13.5 %0.20 (2.40)
Common equity tier 1 risk-based capital ratio (4)
9.1 %8.9 %11.0 %10.7 %11.0 %0.20 (1.90)

(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) Periods prior to February 28, 2023, have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the UHC merger of 0.5958.



Columbia Banking System, Inc. Reports Second Quarter 2023 Results
July 19, 2023
Page 10


Columbia Banking System, Inc.
Financial Highlights
(Unaudited)
Six Months Ended% Change
 Jun 30, 2023Jun 30, 2022Year over Year
Per Common Share Data: (4)
Dividends (4)
$0.71 $0.70 1.43 %
Performance Ratios:
Efficiency ratio70.30 %59.07 %11.23 
Return on average assets (ROAA)0.52 %1.12 %(0.60)
Pre-provision net revenue (PPNR) ROAA (1)
1.22 %1.66 %(0.44)
Return on average common equity5.80 %12.92 %(7.12)
Return on average tangible common equity (1)
8.09 %12.96 %(4.87)
Performance Ratios - Operating: (1)
Operating efficiency ratio (1)
54.24 %60.09 %(5.85)
Operating return on average assets (1)
1.04 %1.04 %— 
Operating PPNR return on average assets (1)
1.90 %1.55 %0.35 
Operating return on average common equity (1)
11.72 %12.01 %(0.29)
Operating return on average tangible common equity (1)
16.34 %12.05 %4.29 
Average Balance Sheet Yields, Rates, & Ratios:  
Yield on loans and leases5.77 %3.86 %1.91 
Yield on earning assets (2)
5.35 %3.38 %1.97 
Cost of interest bearing deposits1.50 %0.10 %1.40 
Cost of interest bearing liabilities2.19 %0.19 %2.00 
Cost of total deposits0.90 %0.06 %0.84 
Cost of total funding (3)
1.42 %0.11 %1.31 
Net interest margin (2)
3.99 %3.28 %0.71 
Average interest bearing cash / Average interest earning assets4.99 %7.31 %(2.32)
Average loans and leases / Average interest earning assets77.64 %78.88 %(1.24)
Average loans and leases / Average total deposits91.87 %87.00 %4.87 
Average non-interest bearing deposits / Average total deposits39.69 %41.68 %(1.99)
Average total deposits / Average total funding (3)
88.03 %96.74 %(8.71)

(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) Periods prior to February 28, 2023, have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the UHC merger of 0.5958.



Columbia Banking System, Inc. Reports Second Quarter 2023 Results
July 19, 2023
Page 11


Columbia Banking System, Inc.
Loan & Lease Portfolio Balances and Mix
(Unaudited)
Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022% Change
($ in thousands)AmountAmountAmountAmountAmountSeq. QuarterYear over Year
Loans and leases:     
Commercial real estate:   
Non-owner occupied term, net$6,434,673 $6,353,550 $3,894,840 $3,846,426 $3,798,242 1 %69 %
Owner occupied term, net5,254,401 5,156,848 2,567,761 2,549,761 2,497,553 2 %110 %
Multifamily, net5,622,875 5,590,587 5,285,791 5,090,661 4,768,273 1 %18 %
Construction & development, net1,528,924 1,467,561 1,077,346 1,036,931 1,017,297 4 %50 %
Residential development, net388,641 440,667 200,838 205,935 194,909 (12)%99 %
Commercial:
Term, net5,449,787 5,906,774 3,029,547 3,003,424 2,904,861 (8)%88 %
Lines of credit & other, net2,268,790 2,184,762 960,054 914,507 920,604 4 %146 %
Leases & equipment finance, net1,740,037 1,746,267 1,706,172 1,669,817 1,576,144 0 %10 %
Residential:
Mortgage, net6,272,898 6,187,964 5,647,035 5,470,624 5,168,457 1 %21 %
Home equity loans & lines, net1,898,958 1,870,002 1,631,965 1,565,094 1,415,722 2 %34 %
   Consumer & other, net189,315 186,298 154,632 154,771 170,616 2 %11 %
Total loans and leases, net of deferred fees and costs$37,049,299 $37,091,280 $26,155,981 $25,507,951 $24,432,678 0 %52 %
Loans and leases mix:
Commercial real estate:
   Non-owner occupied term, net17 %16 %15 %15 %15 %
   Owner occupied term, net14 %14 %10 %10 %10 %
   Multifamily, net15 %15 %20 %20 %20 %
Construction & development, net4 %4 %4 %4 %4 %
Residential development, net1 %1 %1 %1 %1 %
Commercial: 
Term, net15 %16 %12 %12 %12 %
Lines of credit & other, net6 %6 %4 %4 %4 %
Leases & equipment finance, net5 %5 %6 %6 %6 %
Residential: 
Mortgage, net17 %17 %21 %21 %21 %
Home equity loans & lines, net5 %5 %6 %6 %6 %
   Consumer & other, net1 %1 %1 %1 %1 %
Total100 %100 %100 %100 %100 %




Columbia Banking System, Inc. Reports Second Quarter 2023 Results
July 19, 2023
Page 12


Columbia Banking System, Inc.
Deposit Portfolio Balances and Mix
(Unaudited)
Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022% Change
($ in thousands)AmountAmountAmountAmountAmountSeq. QuarterYear over Year
Deposits:     
Demand, non-interest bearing$16,019,408 $17,215,781 $10,288,849 $11,246,358 $11,129,209 (7)%44 %
Demand, interest bearing6,300,082 5,900,462 4,080,469 3,903,746 3,723,650 7 %69 %
Money market10,115,908 10,681,422 7,721,011 7,601,506 7,284,641 (5)%39 %
Savings3,171,714 3,469,112 2,265,052 2,455,917 2,446,876 (9)%30 %
Time5,227,805 4,319,570 2,710,231 1,609,580 1,548,047 21 %238 %
Total$40,834,917 $41,586,347 $27,065,612 $26,817,107 $26,132,423 (2)%56 %
Total core deposits (1)
$37,639,368 $39,155,298 $25,616,010 $26,292,548 $25,619,500 (4)%47 %
Deposit mix:
Demand, non-interest bearing39 %41 %38 %42 %43 %
Demand, interest bearing15 %14 %15 %15 %14 %
Money market25 %26 %29 %28 %28 %
Savings8 %9 %8 %9 %9 %
Time13 %10 %10 %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 Second Quarter 2023 Results
July 19, 2023
Page 13


 
Columbia Banking System, Inc.
Credit Quality – Non-performing Assets
 (Unaudited)
 Quarter Ended% Change
($ in thousands)Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Seq. QuarterYear over Year
Non-performing assets:     
Loans and leases on non-accrual status:
Commercial real estate, net$10,994 $15,612 $5,011 $5,403 $5,514 (30)%99 %
Commercial, net39,316 42,301 25,691 18,652 12,645 (7)%211 %
Residential, net— — — — — nmnm
Consumer & other, net— — — — — nmnm
Total loans and leases on non-accrual status50,310 57,913 30,702 24,055 18,159 (13)%177 %
Loans and leases past due 90+ days and accruing (1):
Commercial real estate, net184 1 1 1 23 nmnm
Commercial, net7,720 151 7,909 5,143 3,311 nm133 %
Residential, net (1)
21,370 17,423 19,894 21,411 22,340 23 %(4)%
Consumer & other, net399 140 134 152 196 185 %104 %
Total loans and leases past due 90+ days and accruing (1)
29,673 17,715 27,938 26,707 25,870 68 %15 %
Total non-performing loans and leases79,983 75,628 58,640 50,762 44,029 6 %82 %
Other real estate owned278 409 203 — 1,868 (32)%(85)%
Total non-performing assets$80,261 $76,037 $58,843 $50,762 $45,897 6 %75 %
Loans and leases past due 31-89 days$73,376 $78,641 $64,893 $53,538 $34,659 (7)%112 %
Loans and leases past due 31-89 days to total loans and leases0.20 %0.21 %0.25 %0.21 %0.14 %(0.01)0.06 
Non-performing loans and leases to total loans and leases (1)
0.22 %0.20 %0.22 %0.20 %0.18 %0.02 0.04 
Non-performing assets to total assets (1)
0.15 %0.14 %0.18 %0.16 %0.15 %0.01 — 
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 $1.6 million, $5.4 million, $6.6 million, $1.0 million, and $356,000 at June 30, 2023, March 31, 2023, December 31, 2022, September 30, 2022, and June 30, 2022, respectively.


Columbia Banking System, Inc. Reports Second Quarter 2023 Results
July 19, 2023
Page 14



Columbia Banking System, Inc.
Credit Quality – Allowance for Credit Losses
(Unaudited)
Quarter Ended% Change
($ in thousands)Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Seq. QuarterYear over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period$417,464 $301,135 $283,065 $261,111 $248,564 39 %68 %
Initial ACL recorded for PCD loans acquired during the period— 26,492 — — — (100)%nm
Provision for credit losses on loans and leases (1)
15,216 106,498 30,580 28,542 18,787 (86)%(19)%
Charge-offs
Commercial real estate, net(174)— (128)— (8)nmnm
Commercial, net(32,036)(19,248)(14,721)(9,459)(9,035)66 %255 %
Residential, net(4)(248)(53)(4)— (98)%nm
Consumer & other, net(1,264)(773)(906)(929)(836)64 %51 %
Total charge-offs(33,478)(20,269)(15,808)(10,392)(9,879)65 %239 %
Recoveries
Commercial real estate, net209 58 163 123 73 260 %186 %
Commercial, net4,511 3,058 2,708 2,842 2,934 48 %54 %
Residential, net63 123 24 249 216 (49)%(71)%
Consumer & other, net618 369 403 590 416 67 %49 %
Total recoveries 5,401 3,608 3,298 3,804 3,639 50 %48 %
Net (charge-offs) recoveries
Commercial real estate, net35 58 35 123 65 (40)%(46)%
Commercial, net(27,525)(16,190)(12,013)(6,617)(6,101)70 %351 %
Residential, net59 (125)(29)245 216 nm(73)%
Consumer & other, net(646)(404)(503)(339)(420)60 %54 %
Total net charge-offs(28,077)(16,661)(12,510)(6,588)(6,240)69 %350 %
Balance, end of period$404,603 $417,464 $301,135 $283,065 $261,111 (3)%55 %
Reserve for unfunded commitments
Balance, beginning of period$19,029 $14,221 $11,853 $12,823 $12,918 34 %47 %
Initial ACL recorded for unfunded commitments acquired during the period— 5,767 — — — (100)%nm
Provision (recapture) for credit losses on unfunded commitments 798 (959)2,368 (970)(95)nmnm
Balance, end of period19,827 19,029 14,221 11,853 12,823 4 %55 %
Total Allowance for credit losses (ACL)$424,430 $436,493 $315,356 $294,918 $273,934 (3)%55 %
Net charge-offs to average loans and leases (annualized)0.30 %0.23 %0.19 %0.11 %0.11 %0.07 0.19 
Recoveries to gross charge-offs16.13 %17.80 %20.86 %36.61 %36.84 %(1.67)(20.71)
ACLLL to loans and leases1.09 %1.13 %1.15 %1.11 %1.07 %(0.04)0.02 
ACL to loans and leases1.15 %1.18 %1.21 %1.16 %1.12 %(0.03)0.03 
nm = not meaningful
(1) For the quarter ended March 31, 2023, the provision for credit losses on loans and leases includes $88.4 million initial provision related to non-PCD loans acquired during the period.



Columbia Banking System, Inc. Reports Second Quarter 2023 Results
July 19, 2023
Page 15


Columbia Banking System, Inc.
Credit Quality – Allowance for Credit Losses
(Unaudited)
Six Months Ended% Change
($ in thousands)Jun 30, 2023Jun 30, 2022Year over Year
Allowance for credit losses on loans and leases (ACLLL)
Balance, beginning of period$301,135 $248,412 21 %
Initial ACL recorded for PCD loans acquired during the period26,492 — nm
Provision for credit losses on loans and leases (1)
121,714 24,483 397 %
Charge-offs
Commercial real estate, net(174)(8)nm
Commercial, net(51,284)(16,893)204 %
Residential, net(252)(167)51 %
Consumer & other, net(2,037)(1,721)18 %
Total charge-offs(53,747)(18,789)186 %
Recoveries
Commercial real estate, net267 98 172 %
Commercial, net7,569 5,479 38 %
Residential, net186 389 (52)%
Consumer & other, net987 1,039 (5)%
Total recoveries9,009 7,005 29 %
Net (charge-offs) recoveries
Commercial real estate, net93 90 3 %
Commercial, net(43,715)(11,414)283 %
Residential, net(66)222 (130)%
Consumer & other, net(1,050)(682)54 %
Total net charge-offs(44,738)(11,784)280 %
Balance, end of period$404,603 $261,111 55 %
Reserve for unfunded commitments
Balance, beginning of period$14,221 $12,767 11 %
Initial ACL recorded for unfunded commitments acquired during the period5,767 — nm
(Recapture) provision for credit losses on unfunded commitments (161)56 (388)%
Balance, end of period19,827 12,823 55 %
Total Allowance for credit losses (ACL)$424,430 $273,934 55 %
Net charge-offs to average loans and leases (annualized)0.27 %0.10 %0.17 
Recoveries to gross charge-offs16.76 %37.28 %(20.52)
nm = not meaningful

(1) For the six months ended June 30, 2023, the provision for credit losses on loans and leases includes $88.4 million initial provision related to non-PCD loans acquired during the period.


Columbia Banking System, Inc. Reports Second Quarter 2023 Results
July 19, 2023
Page 16


Columbia Banking System, Inc.
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates
(Unaudited)
Quarter Ended
June 30, 2023March 31, 2023June 30, 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$46,794 $682 5.83 %$54,008 $799 5.92 %$264,320 $2,742 4.15 %
Loans and leases (1)
37,169,315 551,997 5.95 %29,998,630 412,726 5.55 %23,550,796 231,932 3.94 %
Taxable securities8,656,147 81,617 3.77 %4,960,966 40,448 3.26 %3,410,091 17,340 2.03 %
Non-taxable securities (2)
865,278 8,010 3.70 %437,020 4,068 3.72 %220,327 1,721 3.13 %
Temporary investments and interest-bearing cash2,704,984 34,616 5.13 %1,605,081 18,581 4.69 %1,663,454 2,919 0.70 %
Total interest-earning assets49,442,518 $676,922 5.48 %37,055,705 $476,622 5.19 %29,108,988 $256,654 3.53 %
Goodwill and other intangible assets1,718,705 623,042 7,379 
Other assets2,379,351 1,747,228 1,240,536 
Total assets$53,540,574 $39,425,975 $30,356,903 
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits$6,131,117 $17,277 1.15 %$4,759,251 $9,815 0.84 %$3,896,553 $610 0.06 %
Money market deposits10,362,495 41,703 1.60 %8,845,784 32,238 1.48 %7,366,987 1,717 0.09 %
Savings deposits3,297,138 877 0.11 %2,686,388 556 0.08 %2,426,124 199 0.03 %
Time deposits4,703,967 40,551 3.46 %3,205,128 21,004 2.66 %1,618,394 1,489 0.37 %
Total interest-bearing deposits24,494,717 100,408 1.64 %19,496,551 63,613 1.32 %15,308,058 4,015 0.11 %
Repurchase agreements and federal funds purchased284,347 1,071 1.51 %281,032 406 0.59 %512,641 66 0.05 %
Borrowings6,187,363 81,004 5.25 %2,352,715 28,764 4.96 %6,273 50 3.21 %
Junior and other subordinated debentures405,989 9,271 9.16 %417,966 8,470 8.22 %393,964 4,001 4.07 %
Total interest-bearing liabilities31,372,416 $191,754 2.45 %22,548,264 $101,253 1.82 %16,220,936 $8,132 0.20 %
Non-interest-bearing deposits16,361,541 12,755,080 11,086,376 
Other liabilities871,378 772,870 464,755 
Total liabilities48,605,335 36,076,214 27,772,067 
Common equity4,935,239 3,349,761 2,584,836 
Total liabilities and shareholders' equity$53,540,574 $39,425,975 $30,356,903 
NET INTEREST INCOME$485,168 $375,369 $248,522 
NET INTEREST SPREAD3.03 %3.37 %3.33 %
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)
3.93 %4.08 %3.41 %
(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 $1.2 million for the three months ended June 30, 2023, as compared to $671,000 for the three months ended March 31, 2023 and $352,000 for the three months ended June 30, 2022. 



Columbia Banking System, Inc. Reports Second Quarter 2023 Results
July 19, 2023
Page 17


Columbia Banking System, Inc.
Average Rates and Balances
(Unaudited)
Six Months Ended
 June 30, 2023June 30, 2022
($ in thousands)Average BalanceInterest Income or ExpenseAverage Yields or RatesAverage BalanceInterest Income or ExpenseAverage Yields or Rates
INTEREST-EARNING ASSETS:      
Loans held for sale$50,381 $1,481 5.88 %$275,253 $5,004 3.64 %
Loans and leases (1)
33,603,781 964,723 5.77 %23,061,173 444,074 3.86 %
Taxable securities6,818,764 122,065 3.58 %3,533,930 36,151 2.05 %
Non-taxable securities (2)
652,332 12,078 3.70 %227,218 3,447 3.03 %
Temporary investments and interest-bearing cash2,158,071 53,197 4.97 %2,138,352 4,272 0.40 %
Total interest-earning assets43,283,329 $1,153,544 5.35 %29,235,926 $492,948 3.38 %
Goodwill and other intangible assets1,173,900 7,890 
Other assets2,065,036 1,232,496 
Total assets$46,522,265 $30,476,312 
INTEREST-BEARING LIABILITIES:
Interest-bearing demand deposits$5,448,974 $27,092 1.00 %$3,854,596 $1,108 0.06 %
Money market deposits9,657,738 73,941 1.54 %7,503,142 3,125 0.08 %
Savings deposits2,993,450 1,433 0.10 %2,416,096 404 0.03 %
Time deposits3,958,688 61,555 3.14 %1,685,763 3,294 0.39 %
Total interest-bearing deposits22,058,850 164,021 1.50 %15,459,597 7,931 0.10 %
Repurchase agreements and federal funds purchased282,699 1,477 1.05 %499,664 129 0.05 %
Borrowings4,280,632 109,768 5.17 %6,293 99 3.18 %
Junior and other subordinated debentures411,944 17,741 8.68 %387,510 7,150 3.72 %
Total interest-bearing liabilities27,034,125 $293,007 2.19 %16,353,064 $15,309 0.19 %
Non-interest-bearing deposits14,518,864 11,046,925 
Other liabilities822,396 426,917 
Total liabilities42,375,385 27,826,906 
Common equity4,146,880 2,649,406 
Total liabilities and shareholders' equity$46,522,265 $30,476,312 
NET INTEREST INCOME$860,537 $477,639 
NET INTEREST SPREAD3.16 %3.19 %
NET INTEREST INCOME TO EARNING ASSETS OR NET INTEREST MARGIN (1), (2)
  3.99 %  3.28 %
(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 $1.9 million for the six months ended June 30, 2023, as compared to $706,000 for the same period in 2022. 



Columbia Banking System, Inc. Reports Second Quarter 2023 Results
July 19, 2023
Page 18



Columbia Banking System, Inc.
Residential Mortgage Banking Activity
(Unaudited)
 Quarter Ended% Change
($ in thousands)Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Seq. QuarterYear over Year
Residential mortgage banking revenue:   
Origination and sale$3,166 $3,587 $4,252 $10,515 $15,101 (12)%(79)%
Servicing9,167 9,397 9,184 9,529 9,505 (2)%(4)%
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time(4,797)(4,881)(4,986)(4,978)(4,961)(2)%(3)%
Changes due to valuation inputs or assumptions(2,242)(2,937)(9,914)16,403 10,899 (24)%(121)%
MSR hedge (loss) gain (7,636)2,650 (348)(14,128)— (388)%nm
Total$(2,342)$7,816 $(1,812)$17,341 $30,544 (130)%(108)%
Closed loan volume for-sale$119,476 $131,726 $216,833 $396,979 $576,532 (9)%(79)%
Gain on sale margin2.65 %2.72 %1.96 %2.65 %2.62 %(0.07)0.03 
Residential mortgage servicing rights:     
Balance, beginning of period$178,800 $185,017 $196,177 $179,558 $165,807 (3)%8 %
Additions for new MSR capitalized1,168 1,601 3,740 5,194 7,813 (27)%(85)%
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time(4,797)(4,881)(4,986)(4,978)(4,961)(2)%(3)%
Changes due to valuation inputs or assumptions (2,242)(2,937)(9,914)16,403 10,899 (24)%(121)%
Balance, end of period$172,929 $178,800 $185,017 $196,177 $179,558 (3)%(4)%
Residential mortgage loans serviced for others$12,723,932 $12,914,046 $13,020,189 $12,997,911 $12,932,747 (1)%(2)%
MSR as % of serviced portfolio1.36 %1.38 %1.42 %1.51 %1.39 %(0.02)(0.03)
nm = not meaningful






Columbia Banking System, Inc. Reports Second Quarter 2023 Results
July 19, 2023
Page 19



Columbia Banking System, Inc.
Residential Mortgage Banking Activity
(Unaudited)
 Six Months Ended% Change
($ in thousands)Jun 30, 2023Jun 30, 2022Year over Year
Residential mortgage banking revenue:  
Origination and sale$6,753 $31,945 (79)%
Servicing18,564 18,645 0 %
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time(9,678)(10,308)(6)%
Changes due to valuation inputs or assumptions(5,179)51,048 (110)%
MSR hedge loss (4,986)— nm
Total$5,474 $91,330 (94)%
Closed loan volume for-sale$251,202 $1,225,654 (80)%
Gain on sale margin2.69 %2.61 %0.08 
Residential mortgage servicing rights:   
Balance, beginning of period$185,017 $123,615 50 %
Additions for new MSR capitalized2,769 15,203 (82)%
Change in fair value of MSR asset:
Changes due to collection/realization of expected cash flows over time(9,678)(10,308)(6)%
Changes due to valuation inputs or assumptions (5,179)51,048 (110)%
Balance, end of period$172,929 $179,558 (4)%
nm = not meaningful





Columbia Banking System, Inc. Reports Second Quarter 2023 Results
July 19, 2023
Page 20


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)Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Seq. QuarterYear over Year
Total shareholders' equitya$4,828,188 $4,884,723 $2,479,826 $2,417,514 $2,518,276 (1)%92 %
Less: Goodwill1,029,234 1,030,142 — — — — %nm
Less: Other intangible assets, net666,762 702,315 4,745 5,764 6,789 (5)%nm
Tangible common shareholders' equityb$3,132,192 $3,152,266 $2,475,081 $2,411,750 $2,511,487 (1)%25 %
Less: Accumulated other comprehensive (loss) income (AOCI)$(418,762)(300,134)(426,864)(449,560)(308,147)40 %36 %
Tangible common shareholders' equity, ex AOCIc$3,550,954 $3,452,400 $2,901,945 $2,861,310 $2,819,634 3 %26 %
Total assetsd$53,592,096 $53,994,226 $31,848,639 $31,471,960 $30,135,694 (1)%78 %
Less: Goodwill1,029,234 1,030,142 — — — 0 %nm
Less: Other intangible assets, net666,762 702,315 4,745 5,764 6,789 (5)%nm
Tangible assetse$51,896,100 $52,261,769 $31,843,894 $31,466,196 $30,128,905 (1)%72 %
Common shares outstanding at period end (1)
f208,514 208,429 129,321 129,320 129,318 0 %61 %
Total shareholders' equity to total assets ratioa / d9.01 %9.05 %7.79 %7.68 %8.36 %(0.04)0.65 
Tangible common equity ratiob / e6.04 %6.03 %7.77 %7.66 %8.34 %0.01 (2.30)
Tangible common equity ratio, ex AOCIc / e6.84 %6.61 %9.11 %9.09 %9.36 %0.23 (2.52)
Book value per common share (1)
a / f$23.16 $23.44 $19.18 $18.69 $19.47 (1)%19 %
Tangible book value per common share (1)
b / f$15.02 $15.12 $19.14 $18.65 $19.42 (1)%(23)%
Tangible book value per common share, ex AOCI (1)
c / f$17.03 $16.56 $22.44 $22.13 $21.80 3 %(22)%
nm = not meaningful
(1) Periods prior to February 28, 2023, have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the UHC merger of 0.5958.
 



Columbia Banking System, Inc. Reports Second Quarter 2023 Results
July 19, 2023
Page 21



 
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Quarter Ended% Change
($ in thousands)Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Seq. QuarterYear over Year
Non-Interest Income Adjustments
(Loss) gain on equity securities, net$(697)$2,416 $284 $(2,647)$(2,075)(129)%(66)%
Gain (loss) on swap derivatives1,288 (3,543)(2,329)4,194 7,337 nm(82)%
Change in fair value of certain loans held for investment(6,965)9,488 4,192 (26,397)(15,210)(173)%(54)%
Change in fair value of MSR due to valuation inputs or assumptions(2,242)(2,937)(9,914)16,403 10,899 (24)%(121)%
MSR hedge (loss) gain(7,636)2,650 (348)(14,128)— (388)%nm
Total non-interest income adjustmentsa$(16,252)$8,074 $(8,115)$(22,575)$951 (301)%nm
Non-Interest Expense Adjustments
Merger related expenses$29,649 $115,898 $11,637 $769 $2,672 (74)%nm
Exit and disposal costs2,119 1,291 1,966 1,364 442 64 %379 %
Total non-interest expense adjustmentsb$31,768 $117,189 $13,603 $2,133 $3,114 (73)%nm
Net interest income (1)
c$485,168 $375,369 $305,762 $287,933 $248,522 29 %95 %
Non-interest income (GAAP)d$39,678 $54,735 $34,879 $29,445 $55,235 (28)%(28)%
Less: Non-interest income adjustmentsa16,252 (8,074)8,115 22,575 (951)nmnm
Operating non-interest income (non-GAAP)e$55,930 $46,661 $42,994 $52,020 $54,284 20 %3 %
Revenue (GAAP) (1)
f=c+d$524,846 $430,104 $340,641 $317,378 $303,757 22 %73 %
Operating revenue (non-GAAP) (1)
g=c+e$541,098 $422,030 $348,756 $339,953 $302,806 28 %79 %
Non-interest expense (GAAP)h$328,559 $342,818 $194,982 $177,964 $179,574 (4)%83 %
Less: Non-interest expense adjustmentsb(31,768)(117,189)(13,603)(2,133)(3,114)(73)%nm
Operating non-interest expense (non-GAAP)i$296,791 $225,629 $181,379 $175,831 $176,460 32 %68 %
Net income (loss) (GAAP)j$133,377 $(14,038)$82,964 $84,040 $78,591 nm70 %
Provision (benefit) for income taxes45,703 (4,886)29,464 27,473 26,548 nm72 %
Income (loss) before provision for income taxes179,080 (18,924)112,428 111,513 105,139 nm70 %
Provision for credit losses16,014 105,539 32,948 27,572 18,692 (85)%(14)%
Pre-provision net revenue (PPNR) (non-GAAP)k195,094 86,615 145,376 139,085 123,831 125 %58 %
Less: Non-interest income adjustmentsa16,252 (8,074)8,115 22,575 (951)nmnm
Add: Non-interest expense adjustmentsb31,768 117,189 13,603 2,133 3,114 (73)%nm
Operating PPNR (non-GAAP)l$243,114 $195,730 $167,094 $163,793 $125,994 24 %93 %
Net income (loss) (GAAP)j$133,377 $(14,038)$82,964 $84,040 $78,591 nm70 %
Less: Non-interest income adjustmentsa16,252 (8,074)8,115 22,575 (951)nmnm
Add: Non-interest expense adjustmentsb31,768 117,189 13,603 2,133 3,114 (73)%nm
Tax effect of adjustments(11,981)(23,565)(5,459)(6,116)(480)(49)%nm
Operating net income (non-GAAP)m$169,416 $71,512 $99,223 $102,632 $80,274 137 %111 %
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 Second Quarter 2023 Results
July 19, 2023
Page 22


Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Quarter Ended% Change
($ in thousands, except per share data)Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Seq. QuarterYear over Year
Average assetsn$53,540,574 $39,425,975 $31,637,490 $30,668,177 $30,356,903 36 %76 %
Less: Average goodwill and other intangible assets, net1,718,705 623,042 5,298 6,343 7,379 176 %nm
Average tangible assetso$51,821,869 $38,802,933 $31,632,192 $30,661,834 $30,349,524 34 %71 %
Average common shareholders' equityp$4,935,239 $3,349,761 $2,438,639 $2,567,266 $2,584,836 47 %91 %
Less: Average goodwill and other intangible assets, net1,718,705 623,042 5,298 6,343 7,379 176 %nm
Average tangible common equityq$3,216,534 $2,726,719 $2,433,341 $2,560,923 $2,577,457 18 %25 %
Weighted average basic shares outstanding (1)
r207,977 156,383 129,321 129,319 129,306 33 %61 %
Weighted average diluted shares outstanding (1)
s208,545 156,383 129,801 129,733 129,673 33 %61 %
Select Per-Share & Performance Metrics
Earnings-per-share - basic (1)
j / r$0.64 $(0.09)$0.64 $0.65 $0.61 (811)%5 %
Earnings-per-share - diluted (1)
j / s$0.64 $(0.09)$0.64 $0.65 $0.61 (811)%5 %
Efficiency ratioh / f62.60 %79.71 %57.24 %56.07 %59.12 %(17.11)3.48 
Return on average assetsj / n1.00 %(0.14)%1.04 %1.09 %1.04 %1.14 (0.04)
Return on average tangible assetsj / o1.03 %(0.15)%1.04 %1.09 %1.04 %1.18 (0.01)
PPNR return on average assetsk / n1.46 %0.89 %1.82 %1.80 %1.64 %0.57 (0.18)
Return on average common equityj / p10.84 %(1.70)%13.50 %12.99 %12.20 %12.54 (1.36)
Return on average tangible common equityj / q16.63 %(2.09)%13.53 %13.02 %12.23 %18.72 4.40 
Operating Per-Share & Performance Metrics
Operating earnings-per-share - basic (1)
m / r$0.81 $0.46 $0.77 $0.79 $0.62 76 %31 %
Operating earnings-per-share - diluted (1)
m / s$0.81 $0.46 $0.76 $0.79 $0.62 76 %31 %
Operating efficiency ratioi / g54.85 %53.46 %52.01 %51.72 %58.27 %1.39 (3.42)
Operating return on average assetsm / n1.27 %0.74 %1.24 %1.33 %1.06 %0.53 0.21 
Operating return on average tangible assetsm / o1.31 %0.75 %1.24 %1.33 %1.06 %0.56 0.25 
Operating PPNR return on average assetsl / n1.82 %2.01 %2.10 %2.12 %1.66 %(0.19)0.16 
Operating return on average common equitym / p13.77 %8.66 %16.14 %15.86 %12.46 %5.11 1.31 
Operating return on average tangible common equitym / q21.13 %10.64 %16.18 %15.90 %12.49 %10.49 8.64 
(1) Periods prior to February 28, 2023, have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the UHC merger of 0.5958.




Columbia Banking System, Inc. Reports Second Quarter 2023 Results
July 19, 2023
Page 23



Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Six Months Ended% Change
($ in thousands)Jun 30, 2023Jun 30, 2022Year over Year
Non-Interest Income Adjustments
Gain on sale of debt securities, net$— $2 (100)%
Gain (loss) on equity securities, net1,719 (4,736)nm
(Loss) gain on swap derivatives(2,255)14,384 (116)%
Change in fair value of certain loans held for investment2,523 (36,259)nm
Change in fair value of MSR due to valuation inputs or assumptions(5,179)51,048 nm
   MSR hedge loss(4,986)— nm
Total non-interest income adjustmentsa$(8,178)$24,439 (133)%
Non-Interest Expense Adjustments
Merger related expenses$145,547 $4,950 nm
Exit and disposal costs3,410 3,475 (2)%
Total non-interest expense adjustmentsb$148,957 $8,425 nm
Net interest income (1)
c$860,537 $477,639 80 %
Non-interest income (GAAP)d$94,413 $135,204 (30)%
Less: Non-interest income adjustmentsa8,178 (24,439)(133)%
Operating non-interest income (non-GAAP)e$102,591 $110,765 (7)%
Revenue (GAAP) (1)
f=c+d$954,950 $612,843 56 %
Operating revenue (non-GAAP) (1)
g=c+e$963,128 $588,404 64 %
Non-interest expense (GAAP)h$671,377 $362,004 85 %
Less: Non-interest expense adjustmentsb(148,957)(8,425)nm
Operating non-interest expense (non-GAAP)i$522,420 $353,579 48 %
Net income (GAAP)j$119,339 $169,748 (30)%
Provision for income taxes40,817 56,889 (28)%
Income before provision for income taxes160,156 226,637 (29)%
Provision for credit losses121,553 23,496 417 %
Pre-provision net revenue (PPNR) (non-GAAP)k281,709 250,133 13 %
Less: Non-interest income adjustmentsa8,178 (24,439)(133)%
Add: Non-interest expense adjustmentsb148,957 8,425 nm
Operating PPNR (non-GAAP)l$438,844 $234,119 87 %
Net income (GAAP)j$119,339 $169,748 (30)%
Less: Non-interest income adjustmentsa8,178 (24,439)(133)%
Add: Non-interest expense adjustmentsb148,957 8,425 nm
Tax effect of adjustments(35,546)4,096 nm
Operating net income (non-GAAP)m$240,928 $157,830 53 %
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 Second Quarter 2023 Results
July 19, 2023
Page 24


Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Six Months Ended% Change
($ in thousands)Jun 30, 2023Jun 30, 2022Year over Year
Average assetsn$46,522,265 $30,476,312 53 %
Less: Average goodwill and other intangible assets, net$1,173,900 $7,890 nm
Average tangible assetso$45,348,365 $30,468,422 49 %
Average common shareholders' equityp$4,146,880 $2,649,406 57 %
Less: Average goodwill and other intangible assets, net$1,173,900 $7,890 nm
Average tangible common equityq$2,972,980 $2,641,516 13 %
Weighted average basic shares outstanding (1)
r182,325 129,233 41 %
Weighted average diluted shares outstanding (1)
s182,860 129,685 41 %
Select Per-Share & Performance Metrics
Earnings-per-share - basic (1)
j / r$0.65 $1.31 (50)%
Earnings-per-share - diluted (1)
j / s$0.65 $1.31 (50)%
Efficiency ratioh / f70.30 %59.07 %11.23 
Return on average assetsj / n0.52 %1.12 %(0.60)
Return on average tangible assetsj / o0.53 %1.12 %(0.59)
PPNR return on average assetsk/n1.22 %1.66 %(0.44)
Return on average common equityj / p5.80 %12.92 %(7.12)
Return on average tangible common equityj / q8.09 %12.96 %(4.87)
Operating Per-Share & Performance Metrics
Operating earnings-per-share - basic (1)
m / r$1.32 $1.22 8 %
Operating earnings-per-share - diluted (1)
m / s$1.32 $1.22 8 %
Operating efficiency ratioi / g54.24 %60.09 %(5.85)
Operating return on average assetsm / n1.04 %1.04 %— 
Operating return on average tangible assetsm / o1.07 %1.04 %0.03 
Operating PPNR return on average assetsl / n1.90 %1.55 %0.35 
Operating return on average common equitym / p11.72 %12.01 %(0.29)
Operating return on average tangible common equitym / q16.34 %12.05 %4.29 

(1) Periods prior to February 28, 2023, have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the UHC merger of 0.5958.





Columbia Banking System, Inc. Reports Second Quarter 2023 Results
July 19, 2023
Page 25


Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Quarter Ended% Change
($ in thousands)Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Seq. QuarterYear over Year
Loans and leases interest incomea$551,997 $412,726 $320,747 $276,625 $231,932 34 %138 %
Less: Acquired loan accretion - rate related (2), (3)
b30,548 11,832 387 789 1,069 158 %nm
Less: Acquired loan accretion - credit related (3)
c7,100 3,806 — — — 87 %nm
Adjusted loans and leases interest incomed=a-b-c$514,349 $397,088 $320,360 $275,836 $230,863 30 %123 %
Taxable securities interest incomee$81,617 $40,448 $18,290 $18,261 $17,340 102 %371 %
Less: Acquired taxable securities accretion - rate relatedf34,801 15,356 — — — 127 %nm
Adjusted Taxable securities interest incomeg=e-f$46,816 $25,092 $18,290 $18,261 $17,340 87 %170 %
Non-taxable securities interest income (1)
h$8,010 $4,068 $1,571 $1,651 $1,721 97 %365 %
Less: Acquired non-taxable securities accretion - rate relatedi2,274 901 — — — 152 %nm
Adjusted Taxable securities interest income (1)
j=h-i$5,736 $3,167 $1,571 $1,651 $1,721 81 %233 %
Interest income (1)
k$676,922 $476,622 $352,530 $303,857 $256,654 42 %164 %
Less: Acquired loan and securities accretion - rate relatedl=b+f+i67,623 28,089 387 789 1,069 141 %nm
Less: Acquired loan accretion - credit relatedc7,100 3,806 — — — 87 %nm
Adjusted interest income (1)
m=k-l-c$602,199 $444,727 $352,143 $303,068 $255,585 35 %136 %
Interest-bearing deposits interest expensen$100,408 $63,613 $31,174 $9,090 $4,015 58 %nm
Less: Acquired deposit accretiono(280)(93)— — — 201 %nm
Adjusted interest-bearing deposits interest expensep=n-o$100,688 $63,706 $31,174 $9,090 $4,015 58 %nm
Interest expenseq$191,754 $101,253 $46,768 $15,924 $8,132 89 %nm
Less: Acquired interest-bearing liabilities accretion (2)
r(337)(150)(57)(57)(57)125 %491 %
Adjusted interest expenses=q-r$192,091 $101,403 $46,825 $15,981 $8,189 89 %nm
Net Interest Income (1)
t$485,168 $375,369 $305,762 $287,933 $248,522 29 %95 %
Less: Acquired loan, securities, and interest-bearing liabilities accretion - rate relatedu=l-r67,286 27,939 330 732 1,012 141 %nm
Less: Acquired loan accretion - credit relatedc7,100 3,806 — — — 87 %nm
Adjusted net interest income (1)
v=t-u-c$410,782 $343,624 $305,432 $287,201 $247,510 20 %66 %
Average loans and leasesaa37,169,315 29,998,630 25,855,556 24,886,203 23,550,796 24 %58 %
Average taxable securitiesab8,656,147 4,960,966 3,042,044 3,271,185 3,410,091 74 %154 %
Average non-taxable securitiesac865,278 437,020 200,825 212,847 220,327 98 %293 %
Average interest-earning assetsad49,442,518 37,055,705 30,305,129 29,437,103 29,108,988 33 %70 %
Average interest-bearing depositsae24,494,717 19,496,551 16,103,984 15,350,390 15,308,058 26 %60 %
Average interest-bearing liabilitiesaf31,372,416 22,548,264 17,668,730 16,359,575 16,220,936 39 %93 %

(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 Second Quarter 2023 Results
July 19, 2023
Page 26


Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Quarter Ended% Change
($ in thousands)Jun 30, 2023Mar 31, 2023Dec 31, 2022Sep 30, 2022Jun 30, 2022Seq. QuarterYear over Year
Average yield on loans and leasesa / aa5.95 %5.55 %4.92 %4.41 %3.94 %0.40 2.01 
Less: Acquired loan accretion - rate related (2),(3)
b / aa0.33 %0.16 %0.01 %0.01 %0.02 %0.17 0.31 
Less: Acquired loan accretion - credit related (3)
c / aa0.08 %0.05 %— %— %— %0.03 0.08 
Adjusted average yield on loans and leasesd / aa5.54 %5.34 %4.91 %4.40 %3.92 %0.20 1.62 
Average yield on taxable securitiese / ab3.77 %3.26 %2.40 %2.23 %2.03 %0.51 1.74 
Less: Acquired taxable securities accretion - rate relatedf / ab1.61 %1.26 %— %— %— %0.35 1.61 
Adjusted average yield on taxable securitiesg / ab2.16 %2.00 %2.40 %2.23 %2.03 %0.16 0.13 
Average yield on non-taxable securities (1)
h / ac3.70 %3.72 %3.13 %3.10 %3.13 %(0.02)0.57 
Less: Acquired non-taxable securities accretion - rate relatedi / ac1.05 %0.84 %— %— %— %0.21 1.05 
Adjusted yield on non-taxable securities (1)
j / ac2.65 %2.88 %3.13 %3.10 %3.13 %(0.23)(0.48)
Average yield on interest-earning assets (1)
k / ad5.48 %5.19 %4.62 %4.10 %3.53 %0.29 1.95 
Less: Acquired loan and securities accretion - rate relatedl / ad0.55 %0.31 %0.01 %0.01 %0.01 %0.24 0.54 
Less: Acquired loan accretion - credit relatedc / ad0.06 %0.04 %— %— %— %0.02 0.06 
Adjusted average yield on interest-earning assets (1)
m / ad4.87 %4.84 %4.61 %4.09 %3.52 %0.03 1.35 
Average rate on interest-bearing depositsn / ae1.64 %1.32 %0.77 %0.23 %0.11 %0.32 1.53 
Less: Acquired deposit accretiono / ae— %— %— %— %— %— — 
Adjusted average rate on interest-bearing depositsp / ae1.64 %1.32 %0.77 %0.23 %0.11 %0.32 1.53 
Average rate on interest-bearing liabilitiesq / af2.45 %1.82 %1.05 %0.39 %0.20 %0.63 2.25 
Less: Acquired interest-bearing liabilities accretion (2)
r / af— %— %— %— %— %— — 
Adjusted average rate on interest-bearing liabilitiess / af2.45 %1.82 %1.05 %0.39 %0.20 %0.63 2.25 
Net interest margin (1)
t / ad3.93 %4.08 %4.01 %3.88 %3.41 %(0.15)0.52 
Less: Acquired loan, securities, and interest-bearing liabilities accretion - rate relatedu / ad0.55 %0.31 %— %0.01 %0.01 %0.24 0.54 
Less: Acquired loan accretion - credit relatedc / ad0.06 %0.04 %— %— %— %0.02 0.06 
Adjusted net interest margin (1)
v / ad3.32 %3.73 %4.01 %3.87 %3.40 %(0.41)(0.08)

(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 Second Quarter 2023 Results
July 19, 2023
Page 27


 
Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Six Months Ended
($ in thousands)Jun 30, 2023Jun 30, 2022Year over Year
Loans and leases interest incomea$964,723 $444,074 117 %
Less: Acquired loan accretion - rate related (2), (3)
b42,380 2,501 nm
Less: Acquired loan accretion - credit related (3)
c10,906 — nm
Adjusted loans and leases interest incomed=a-b-c$911,437 $441,573 106 %
Taxable securities interest incomee$122,065 $36,151 238 %
Less: Acquired taxable securities accretion - rate relatedf50,157 — nm
Adjusted Taxable securities interest incomeg=e-f$71,908 $36,151 99 %
Non-taxable securities interest income (1)
h$12,078 $3,447 250 %
Less: Acquired non-taxable securities accretion - rate relatedi3,175 — nm
Adjusted Taxable securities interest income (1)
j=h-i$8,903 $3,447 158 %
Interest income (1)
k$1,153,544 $492,948 134 %
Less: Acquired loan and securities accretion - rate relatedl=b+f+i95,712 2,501 nm
Less: Acquired loan accretion - credit relatedc10,906 — nm
Adjusted interest income (1)
m=k-l-c$1,046,926 $490,447 113 %
Interest-bearing deposits interest expensen$164,021 $7,931 nm
Less: Acquired deposit accretiono(373)— nm
Adjusted interest-bearing deposits interest expensep=n-o$164,394 $7,931 nm
Interest expenseq$293,007 $15,309 nm
Less: Acquired interest-bearing liabilities accretion (2)
r(487)(114)327 %
Adjusted interest expenses=q-r$293,494 $15,423 nm
Net Interest Income (1)
t$860,537 $477,639 80 %
Less: Acquired loan, securities, and interest-bearing liabilities accretion - rate relatedu=l-r95,225 2,387 nm
Less: Acquired loan accretion - credit relatedc10,906 — nm
Adjusted net interest income (1)
v=t-u-c$754,406 $475,252 59 %
Average loans and leasesaa33,603,781 23,061,173 46 %
Average taxable securitiesab6,818,764 3,533,930 93 %
Average non-taxable securitiesac652,332 227,218 187 %
Average interest-earning assetsad43,283,329 29,235,926 48 %
Average interest-bearing depositsae22,058,850 15,459,597 43 %
Average interest-bearing liabilitiesaf27,034,125 16,353,064 65 %

(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 Second Quarter 2023 Results
July 19, 2023
Page 28


Columbia Banking System, Inc.
GAAP to Non-GAAP Reconciliation - Continued
(Unaudited)
Six Months Ended
($ in thousands)Jun 30, 2023Jun 30, 2022Year over Year
Average yield on loans and leasesa / aa5.77 %3.86 %1.91 
Less: Acquired loan accretion - rate related (2),(3)
b / aa0.25 %0.02 %0.23 
Less: Acquired loan accretion - credit related (3)
c / aa0.07 %— %0.07 
Adjusted average yield on loans and leasesd / aa5.45 %3.84 %1.61 
Average yield on taxable securitiese / ab3.58 %2.05 %1.53 
Less: Acquired taxable securities accretion - rate relatedf / ab1.48 %— %1.48 
Adjusted average yield on taxable securitiesg / ab2.10 %2.05 %0.05 
Average yield on non-taxable securities (1)
h / ac3.70 %3.03 %0.67 
Less: Acquired non-taxable securities accretion - rate relatedi / ac0.98 %— %0.98 
Adjusted yield on non-taxable securities (1)
j / ac2.72 %3.03 %(0.31)
Average yield on interest-earning assets (1)
k / ad5.35 %3.38 %1.97 
Less: Acquired loan and securities accretion - rate relatedl / ad0.45 %0.02 %0.43 
Less: Acquired loan accretion - credit relatedc / ad0.05 %— %0.05 
Adjusted average yield on interest-earning assets (1)
m / ad4.85 %3.36 %1.49 
Average rate on interest-bearing depositsn / ae1.50 %0.10 %1.40 
Less: Acquired deposit accretiono / ae— %— %— 
Adjusted average rate on interest-bearing depositsp / ae1.50 %0.10 %1.40 
Average rate on interest-bearing liabilitiesq / af2.19 %0.19 %2.00 
Less: Acquired interest-bearing liabilities accretion (2)
r / af— %— %— 
Adjusted average rate on interest-bearing liabilitiess / af2.19 %0.19 %2.00 
Net interest margin (1)
t / ad3.99 %3.28 %0.71 
Less: Acquired loan, securities, and interest-bearing liabilities accretion - rate relatedu / ad0.44 %0.02 %0.42 
Less: Acquired loan accretion - credit relatedc / ad0.05 %— %0.05 
Adjusted net interest margin (1)
v / ad3.50 %3.26 %0.24 

(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.