March 2024

Investor Presentation

2

Disclaimer

FORWARD-LOOKING STATEMENTS

This presentation includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the Securities and Exchange Commission (the "SEC"). You should not place undue reliance on forward-looking statements, and we undertake no obligation to update any such statements. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "target," "projects," "outlook," "forecast," "will," "may," "could," "should," "can" and similar references to future periods. In this 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 and stability of banks; changes in interest rates that could significantly reduce net interest income and negatively affect asset yields and valuations and funding sources; changes in the scope and cost of FDIC insurance and other coverage; our ability to successfully implement efficiency and operational excellence initiatives; our ability to successfully develop and market new products and technology; changes in laws or regulations; any failure to realize the anticipated benefits of the merger when expected or at all; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the merger and integration of the companies; the effect of geopolitical instability, including wars, conflicts and terrorist attacks; and natural disasters and other similar unexpected events outside of our control. We also caution that the amount and timing of any future common stock dividends or repurchases will depend on the earnings, cash requirements and financial condition of Columbia, market conditions, capital requirements, applicable law and regulations (including federal securities laws and federal banking regulations), and other factors deemed relevant by Columbia's Board of Directors, and may be subject to regulatory approval or conditions.

NON-GAAP FINANCIAL MEASURES

In addition to results in accordance with GAAP, this presentation contains certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in the Appendix.

We believe presenting certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends, and our financial position. We utilize these measures for internal planning and forecasting purposes. We, as well as securities analysts, investors, and other interested parties, also use these measures to compare peer company operating performance. We believe that our presentation and discussion, together with the accompanying reconciliations, provide a complete understanding of factors and trends affecting our business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitution for GAAP basis measures and results, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

REVERSE ACQUISITION METHOD OF ACCOUNTING

On February 28, 2023, Columbia Banking System, Inc. ("Columbia", "we" or "our") completed its merger 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 as the merger was treated as a reverse merger with UHC as the accounting acquirer. 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 each of the quarters of 2023 and the year ended December 31, 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 with UHC as the accounting acquirer. 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.

3

Columbia Banking System: A Franchise Like No Other

Columbia at a Glance

West-Focused Regional Powerhouse

Business Bank of Choice

Ticker

COLB

■

In-market,relationship-based commercial

banking

Corporate

of December 31, 2023

Headquarters

Tacoma, Washington

Offices

300 in eight states

Assets

$52 billion

Loans

$37 billion

Deposits

$42 billion

  • Attractive footprint in high-growth markets
  • Full suite of deposit products and services with contemporary digital capabilities
  • Expertise in treasury management, foreign exchange, and global cash management
  • Expanding small business platform
  • Comprehensive and growing wealth and trust businesses

Financials as

Common Equity

9.6 %

■ Niche verticals include diverse agricultural,

Tier 1 Capital Ratio

healthcare, tribal banking, and equipment

Total Capital Ratio

11.9 %

finance

4

Why Columbia?

  • Community banking at scale business model drives granular, low-cost core deposit base
  • Opportunity to gain share in California and growing metros in the West while increasing density in the Northwest
  • Solid capital generation supports long-term organic growth and return to shareholders
  • Strong credit quality supported by diversified, well-structured, and conservatively underwritten loan portfolio
  • Compelling culture with deep community ties that is reflected in our proven ability to attract and retain top banking talent
  • Scaled western franchise that is difficult to replicate provides scarcity value

5

Operating in Large, Attractive Western Markets

Foothold in the West(1)

(population in millions)

Northwest

4.1mm 2.5mm 0.8mm

Seattle, WA

Portland, OR

Boise, ID

California and Nevada

12.9mm 2.4mm 2.4mm

Los Angeles, CA

Sacramento, CA

Las Vegas, NV

Other West

5.1mm 3.0mm 1.3mm

Phoenix, AZ

Denver, CO

Salt Lake City, UT

Top Regional Bank in the NW (WA, OR, ID)(1)

Total

Northwest

Rank

Bank (HQ State)

Assets ($B)

Deposits ($B)

Mkt Shr

1

Bank of America (NC)

$3,180

$62

17.3 %

2

U.S. Bancorp (MN)

663

51

14.4 %

3

JPMorgan (NY)

3,875

47

13.3 %

4

Wells Fargo (CA)

1,932

42

11.7 %

5

COLB (WA)

52

33

9.3 %

6

KeyCorp (OH)

188

18

5.0 %

7

WaFd (WA)

23

12

3.3 %

8

Banner Corp. (WA)

16

11

3.0 %

5th Largest Bank in our Footprint(1)

Total

Eight-State Footprint

Rank

Bank (HQ State)

Assets ($B)

Deposits ($B)

Mkt Shr

1

Wells Fargo (CA)

$1,932

$459

16.7 %

2

Zions (UT)

87

61

2.2 %

3

Western Alliance (AZ)

71

51

1.9 %

4

East West (CA)

70

49

1.8 %

5

COLB (WA)

52

41

1.5 %

6

Banc of California (CA)

39

29

1.1 %

7

FirstBank (CO)

28

24

0.9 %

8

Cathay General (CA)

23

15

0.6 %

Established Presence in Attractive Markets(1)

  • Our market share in the Northwest stands with large national and super regional banks, at over 9%
  • Our foothold in top western markets and scaled franchise provide us the opportunity to increase share in California, Arizona, Colorado, and Utah
  • Projected population growth of 3.2% over the next five years in our collective footprint exceeds the national average of 2.4%
  • Current household income in our footprint is 109% of the national average, and the five-year growth rate of 10.4% compares favorably to 10.1% nationally
  1. Population, household income, asset, deposit, and market share data sourced from S&P Global Market Intelligence. Assets as of December 31, 2023; deposits and market share as of June 30, 2023 and adjusted by S&P to include acquisitions announced or closed subsequent to that date.

6

Opportunity to Increase Density and Gain Share throughout Our Footprint

Improve Density in the Northwest

Expand Footprint in California

Broaden Presence in Other Western Markets

MSA(1)

Population

Deposits ($mm)

COLB

(000s)

Market

COLB

Mkt Shr

Seattle

4,107

$143,835

$7,561

5.2 %

Portland

2,537

67,109

5,673

8.5 %

Boise

835

16,886

189

1.1 %

Spokane

605

12,868

3,040

23.6 %

MSA(1)

Population

Deposits ($mm)

COLB

(000s)

Market

COLB

Mkt Shr

Los Angeles

12,869

$684,438

$848

0.1 %

Sacramento

2,440

94,707

1,934

2.0 %

San Francisco

4,592

458,774

525

0.1 %

San Diego

3,298

105,112

16

< 0.1%

MSA(1)

Population

Deposits ($mm)

COLB

(000s)

Market

COLB

Mkt Shr

Phoenix

5,120

$166,520

Opportunity to add

Denver

3,031

114,538

targeted retail

locations to support

Salt Lake City

1,284

69,725

existing commercial

banking presence

Las Vegas

2,368

78,063

(1) Population, deposit, and market share data sourced from S&P Global Market Intelligence. Deposits and market share as of June 30, 2023 and adjusted by S&P to include acquisitions announced or closed subsequent to that date.

7

Performance Improvement: Near-Term Initiatives

1H 2024 Actions to Improve Operational Efficiency

    • Ongoing operational review to improve efficiency throughout the organization is expected to result in a Q4 2024 core expense run rate of $965 million to $985 million annualized(1)
    • Closed five branches in January to fund the opening of new retail locations in existing commercial banking de novo markets
    • Actively managing and selectively reducing deposit offering rates
    • Continued evaluation of wholesale funding options to optimize rate while managing duration risk
    • Additional product bundling and marketing designed to drive higher levels of new customer acquisition
    • Modified underwriting and pricing for FinPac as well as rationalizing its cost structure in light of the current operating environment
  2. Excludes CDI amortization and non-operating expense, as detailed in the "Outlook" slide and in "Appendix Non-GAAP Reconciliation" slides later in this presentation.

Performance Improvement: Longer-Term

Opportunity to Strategically Reposition Balance Sheet Over Time

8

■

Our relationship-based lending verticals and a

strong core deposit base remain the cornerstone

of our franchise.

■

Past transactional lending and the wholesale

$37B

Relationship Lending

  • Other Core Banking Franchise

$9B Securities

$2B Single-Family

$4B Multifamily

Assets

Relationship

banking supports strong core franchise value

Opportunity

to reduce

transactional

assets and

liabilities

$45B

Core Deposit Franchise & Capital

$3B Brokered Deposits

$4B Borrowings

Liabilities + Equity

sources that fund these assets have muted the

balance sheet's profitability, but they have not

diluted the quality of our core franchise.

■ Current interest rates make outright asset sales

unattractive given a lengthy payback period.

However, longer term, a decline in rates will

provide the flexibility to minimize or eliminate

the drag on earnings.(1)

  1. While asset classes, like transactional loans within our multifamily and single-family portfolios, have been identified as potential sources for asset sales if interest rates were to decline, assets have not been identified for sale.

FINANCIAL HIGHLIGHTS

Full Year 2023 Highlights

Reported

Operating(1)

$349 million

$521 million

Net Income

Net Income

$684 million

$910 million

Pre-Provision Net Revenue(1)

Pre-Provision Net Revenue

$1.78

$2.66

Earnings-per-Share - Diluted(2)

Earnings-per-Share - Diluted(2)

0.70%

1.05%

Return on Assets

Return on Assets

1.38%

1.84%

PPNR Return on Assets(1)

PPNR Return on Assets

10

  • Completed merger with Umpqua Holdings Corporation
    • Merger closed February 28, 2023
    • Systems conversions completed March 20, 2023
    • Consolidated 47 branches in 2023 (and 52 total with five closed in January 2024)
  • Realized $143 million in annualized cost savings, net of franchise reinvestment to support deeper relationships with existing customers and new customer acquisition
    • Upgraded digital capabilities, including business online banking and remote deposit capture
    • Made numerous enhancements to our customer-focused systems, including our wealth management platform

7.81%

11.67%

Return on Equity

Return on Equity

11.46%

17.13%

Return on Tangible

Return on Tangible

Common Equity(1)

Common Equity

  • Organically generated capital increased regulatory ratios post merger closing
    • Common equity tier 1 ratio increased to 9.6% as of December 31, 2023 from 8.9% as of March 31, 2023
    • Total risk-based capital ratio increased to 11.9% as of December 31, 2023 from 10.9% as of March 31, 2023
  1. All items in this "Operating" column are non-GAAP financial measures. A reconciliation to the comparable GAAP measurement for each is provided in the appendix of this slide presentation.
  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 merger of 0.5958.

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Disclaimer

Columbia Banking System Inc. published this content on 04 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2024 23:42:05 UTC.