Columbia Banking System (COLB) investor relations material

Executive summary

• Net income for Q1 2026 was $192 million, with operating net income of $209 million and diluted EPS of $0.66 (operating EPS $0.72), reflecting continued execution on sustainable performance and capital returns.

• Completed Pacific Premier systems conversion and consolidated nine branches, with all cost savings expected by June 30, 2026.

• Returned $200 million to shareholders via repurchase of 6.5 million shares in Q1; $400 million remains authorized.

• AI and automation initiatives accelerated business banking processes, improved efficiency, and shifted routine queries to virtual assistants.

• Maintained stable operational performance and strong organic capital creation for the third consecutive year.

Financial highlights

• Net interest income was $594 million, down $33 million sequentially due to non-recurring Q4 2025 items and lower average earning assets.

• Net interest margin was 3.96%, down 10 bps sequentially but up 36 bps year-over-year.

• Non-interest income was $83 million GAAP ($81 million operating), up 44% year-over-year but down $7 million sequentially.

• Non-interest expense was $369 million operating, with $328 million run rate excluding intangible amortization; total non-interest expense fell by $18 million to $394 million.

• Provision for credit losses was $28 million, up from $23 million in Q4 2025.

• Book value per share was $26.47; tangible book value per share was $19.03.

• Total assets were $66.0 billion, loans and leases $47.7 billion, and deposits $53.5 billion as of March 31, 2026.

Outlook and guidance

• All previously disclosed cost savings from the Pacific Premier acquisition are expected to be realized by June 30, 2026.

• Net interest margin anticipated to cross 4% in Q2 and expand further in the second half of 2026.

• Non-interest income expected in the low to mid $80 million range for Q2.

• Non-interest expense (excluding CDI amortization) guided to $335-$345 million in Q2, declining further in Q3 as cost synergies are fully realized.

• Share repurchases expected to remain in the $150-$200 million range per quarter.

• Loan portfolio expected to remain flat in 2026, with strong C&I and owner-occupied growth offsetting transactional runoff.

• Continued focus on balance sheet optimization and capital return to shareholders.