Columbia Banking System (COLB) investor relations material

Operating environment and competitive landscape

• Loan and deposit pipelines remain steady, with customer activity and investments continuing as in previous quarters.

• Competitive pressure, especially on deposits and loan pricing, has intensified since Q2, with some market behaviors described as irrational.

• Decisions to compete aggressively or step back are made on a case-by-case basis, prioritizing full relationship value over price alone.

• Deposit pricing has become more surgical due to rising funding costs and shifting rate expectations.

Market opportunities and talent acquisition

• Market fragmentation in Southern California and recent acquisitions have enabled recruitment of top talent and expansion of customer portfolios.

• The bank occupies a unique market position, appealing to both customers and experienced bankers from larger institutions.

• New hires from larger banks bring a relationship-focused approach, enhancing product penetration and upskilling existing staff.

• The culture, flat structure, and access to leadership are key factors attracting high-performing bankers.

Balance sheet optimization and profitability

• Ongoing reduction of lower-return, transactional loans has improved net interest margin and reduced reliance on wholesale funding.

• About $7 billion in transactional loans are being run off at a pace of $1 billion per year, with repricing expected to slow after Q2 next year.

• Optimization efforts have increased capital levels and are expected to continue delivering financial benefits.