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

PORTLAND, Ore., July 19, 2023 /PRNewswire/ --

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

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 Income and NIM	• 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 Income and Expense	• 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%.
Capital	• 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 assets	1.00 %	(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 margin	3.93 %	4.08 %	3.41 %
Adjusted net interest margin¹	3.32 %	3.73 %	3.40 %
Efficiency ratio	62.60 %	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	$53.6B	$54.0B	$30.1B
Loans and leases	$37.0B	$37.1B	$24.4B
Total deposits	$40.8B	$41.6B	$26.1B
Book value per common share ²	$23.16	$23.44	$19.47
Tangible book value per share[1][2]	$15.02	$15.12	$19.42
Tangible book value per share, ex AOCI ^1,2	$17.03	$16.56	$21.80

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.

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

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.

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.

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

TABLE INDEX
	Page
Consolidated Statements of Operations	8
Consolidated Balance Sheets	9
Financial Highlights	11
Loan & Lease Portfolio Balances and Mix	12
Deposit Portfolio Balances and Mix	14
Credit Quality - Non-performing Assets	15
Credit Quality - Allowance for Credit Losses	16
Consolidated Average Balance Sheets, Net Interest Income, and Yields/Rates	18
Residential Mortgage Banking Activity	20
GAAP to Non-GAAP Reconciliation	22

Columbia Banking System, Inc.
Consolidated Statements of Operations
(Unaudited)
	Quarter Ended					% Change
*($ in thousands, except per share data)*	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Seq. 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:
Taxable	79,036	39,729	18,108	18,175	17,256	99 %	358 %
Exempt from federal income tax	6,817	3,397	1,288	1,322	1,369	101 %	398 %
Dividends	2,581	719	182	86	84	259 %	nm
Temporary investments and interest bearing deposits	34,616	18,581	10,319	5,115	2,919	86 %	nm
Total interest income	675,729	475,951	352,247	303,528	256,302	42 %	164 %
Interest expense:
Deposits	100,408	63,613	31,174	9,090	4,015	58 %	nm
Securities sold under agreement to repurchase and federal funds purchased	1,071	406	323	545	66	164 %	nm
Borrowings	81,004	28,764	8,023	798	50	182 %	nm
Junior and other subordinated debentures	9,271	8,470	7,248	5,491	4,001	9 %	132 %
Total interest expense	191,754	101,253	46,768	15,924	8,132	89 %	nm
Net interest income	483,975	374,698	305,479	287,604	248,170	29 %	95 %
Provision for credit losses	16,014	105,539	32,948	27,572	18,692	(85) %	(14) %
Non-interest income:
Service charges on deposits	16,454	14,312	12,139	12,632	12,011	15 %	37 %
Card-based fees	13,435	11,561	9,017	9,115	10,530	16 %	28 %
Financial services and trust revenue	4,512	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, net	442	940	1,531	1,525	1,303	(53) %	(66) %
BOLI income	4,063	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 income	39,678	54,735	34,879	29,445	55,235	(28) %	(28) %
Non-interest expense:
Salaries and employee benefits	163,398	136,092	107,982	109,164	110,942	20 %	47 %
Occupancy and equipment, net	50,550	41,700	34,021	35,042	34,559	21 %	46 %
Intangible amortization	35,553	12,660	1,019	1,025	1,026	181 %	nm
FDIC assessments	11,579	6,113	3,487	3,007	2,954	89 %	292 %
Merger related expenses	29,649	115,898	11,637	769	2,672	(74) %	nm
Other expenses	37,830	30,355	36,836	28,957	27,421	25 %	38 %
Total non-interest expense	328,559	342,818	194,982	177,964	179,574	(4) %	83 %
Income (loss) before provision (benefit) for income taxes	179,080	(18,924)	112,428	111,513	105,139	nm	70 %
Provision (benefit) for income taxes	45,703	(4,886)	29,464	27,473	26,548	nm	72 %
Net income (loss)	$ 133,377	$ (14,038)	$ 82,964	$ 84,040	$ 78,591	nm	70 %

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	nm	5 %
Earnings (loss) per common share – diluted ⁽¹⁾	$ 0.64	$ (0.09)	$ 0.64	$ 0.65	$ 0.61	nm	5 %

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.
Consolidated Statements of Operations
(Unaudited)
	Six Months Ended		% Change
*($ in thousands, except per share data)*	Jun 30, 2023	Jun 30, 2022	Year over Year
Interest income:
Loans and leases	$ 966,204	$ 449,078	115 %
Interest and dividends on investments:
Taxable	118,765	35,981	230 %
Exempt from federal income tax	10,214	2,741	273 %
Dividends	3,300	170	nm
Temporary investments and interest bearing deposits	53,197	4,272	nm
Total interest income	1,151,680	492,242	134 %
Interest expense:
Deposits	164,021	7,931	nm
Securities sold under agreement to repurchase and federal funds purchased	1,477	129	nm
Borrowings	109,768	99	nm
Junior and other subordinated debentures	17,741	7,150	148 %
Total interest expense	293,007	15,309	nm
Net interest income	858,673	476,933	80 %
Provision for credit losses	121,553	23,496	417 %
Non-interest income:
Service charges on deposits	30,766	23,594	30 %
Card-based fees	24,996	19,238	30 %
Brokerage revenue	5,809	38	nm
Residential mortgage banking revenue, net	5,474	91,330	(94) %
Gain on sale of debt securities, net	—	2	(100) %
Gain (loss) on equity securities, net	1,719	(4,736)	nm
Gain on loan and lease sales, net	1,382	3,640	(62) %
BOLI income	6,853	4,197	63 %
Other income (loss)	17,414	(2,099)	nm
Total non-interest income	94,413	135,204	(30) %
Non-interest expense:
Salaries and employee benefits	299,490	224,080	34 %
Occupancy and equipment, net	92,250	69,388	33 %
Intangible amortization	48,213	2,051	nm
FDIC assessments	17,692	7,470	137 %
Merger related expenses	145,547	4,950	nm
Other expenses	68,185	54,065	26 %
Total non-interest expense	671,377	362,004	85 %
Income before provision for income taxes	160,156	226,637	(29) %
Provision for income taxes	40,817	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. Consolidated Balance Sheets
(Unaudited)
						% Change
*($ in thousands, except per share data)*	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Seq. 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 investments	2,868,563	3,079,266	967,330	1,232,412	687,233	(7) %	317 %
Investment securities:
Equity and other, at fair value	76,361	76,532	72,959	72,277	75,347	0 %	1 %
Available for sale, at fair value	8,998,428	9,249,600	3,196,166	3,136,391	3,416,707	(3) %	163 %
Held to maturity, at amortized cost	2,388	2,432	2,476	2,547	2,637	(2) %	(9) %
Loans held for sale	183,633	49,338	71,647	148,275	228,889	272 %	(20) %
Loans and leases	37,049,299	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 leases	36,644,696	36,673,816	25,854,846	25,224,886	24,171,567	0 %	52 %
Restricted equity securities	258,524	246,525	47,144	40,993	10,867	5 %	nm
Premises and equipment, net	368,698	375,190	176,016	165,305	165,196	(2) %	123 %
Operating lease right-of-use assets	119,255	127,296	78,598	81,729	87,249	(6) %	37 %
Goodwill	1,029,234	1,030,142	—	—	—	0 %	nm
Other intangible assets, net	666,762	702,315	4,745	5,764	6,789	(5) %	nm
Residential mortgage servicing rights, at fair value	172,929	178,800	185,017	196,177	179,558	(3) %	(4) %
Bank owned life insurance	643,727	641,922	331,759	329,699	328,764	0 %	96 %
Deferred tax asset, net	362,880	351,229	132,823	128,120	70,134	3 %	417 %
Other assets	657,365	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 bearing	24,815,509	24,370,566	16,776,763	15,570,749	15,003,214	2 %	65 %
Total deposits	40,834,917	41,586,347	27,065,612	26,817,107	26,132,423	(2) %	56 %
Securities sold under agreements to repurchase	294,914	271,047	308,769	383,569	527,961	9 %	(44) %
Borrowings	6,250,000	5,950,000	906,175	756,214	6,252	5 %	nm
Junior subordinated debentures, at fair value	312,872	297,721	323,639	325,744	321,268	5 %	(3) %
Junior and other subordinated debentures, at amortized cost	108,009	108,066	87,813	87,870	87,927	0 %	23 %
Operating lease liabilities	132,099	140,648	91,694	95,512	101,352	(6) %	30 %
Other liabilities	831,097	755,674	585,111	588,430	440,235	10 %	89 %
Total liabilities	48,763,908	49,109,503	29,368,813	29,054,446	27,617,418	(1) %	77 %
Shareholders' equity:
Common stock	5,792,792	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' equity	4,828,188	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.
Financial Highlights
(Unaudited)
	Quarter Ended					% Change
	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Seq. Quarter	Year 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

COLUMBIA BANKING SYSTEM, INC. REPORTS SECOND QUARTER 2023 RESULTS