Columbia Banking System (COLB) investor relations material

Executive summary

• Net income for Q2 2026 was $208 million, with operating net income at $217 million and diluted EPS of $0.73 (operating EPS $0.76), reflecting disciplined execution, prudent expense management, and ongoing balance sheet optimization.

• Integration of Pacific Premier Bancorp was completed, with cost synergies exceeding targets and all organizational changes finalized by June 30, 2026.

• Commercial loan production was solid, with balances growing 5% annualized, offsetting declines in transactional loans, while overall loans and deposits declined due to intentional reductions in brokered and wholesale deposits.

• Opened new branches in Colorado Springs and Las Vegas, and launched new digital and payments solutions for small business customers.

• Over $300 million was returned to shareholders through dividends and share repurchases, reflecting confidence in the forward outlook.

Financial highlights

• Net interest income for Q2 2026 was $589 million, down $5 million sequentially, with net interest margin at 3.93%, down 3 bps from Q1 2026.

• Non-interest income reached $91 million on an operating basis, up $5 million sequentially, driven by treasury management, card-based fees, and a $3 million BOLI/death benefit gain.

• Non-interest expense was $375 million, down $19 million sequentially, reflecting lower merger costs and cost savings from integration.

• Provision for credit losses was $27 million, with net charge-offs at $30 million for Q2 2026 and 0.25% of average loans and leases (annualized).

• Book value per share was $26.70 and tangible book value per share was $19.22 at June 30, 2026.

Outlook and guidance

• Net interest margin is expected to exceed 4% in Q3, with continued balance sheet optimization and focus on sustainable core fee income growth.

• Non-interest income is guided to the mid-$80 million range for Q3, and non-interest expense (excluding amortization) expected in the $330–$335 million range for Q3 and Q4.

• Share repurchases anticipated at $150–$200 million in Q3, with future plans to be discussed in the fall.

• Full-year core deposit growth targeted in the low-single-digit range.

• Management remains focused on sustainable returns, capital generation, and long-term value creation, with caution on economic and market uncertainties.