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 EPS of $0.73 (reported) and $0.76 (operating), reflecting disciplined execution, balance sheet optimization, and strong capital return to shareholders.

• Commercial loan production was solid, with intentional runoff in transactional loans offset by growth in relationship-based lending; commercial loan balances grew while overall loans and deposits declined due to reductions in brokered and wholesale deposits.

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

• Over $300 million was returned to shareholders through dividends and share repurchases, including 6.6 million shares repurchased and $199 million returned in Q2, with $202 million remaining under the repurchase authorization.

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

Financial highlights

• Reported EPS was $0.73 and operating EPS was $0.76 for Q2 2026; net income was $208 million (reported) and $217 million (operating).

• Net interest margin was 3.93%, down 3 bps sequentially due to interest income reversals; net interest income was $589 million, down $5 million sequentially.

• Non-interest income reached $91 million on an operating basis, above guidance, aided by a $3 million BOLI gain and higher treasury management and card-based fees.

• Non-interest expense was $328 million (excluding amortization), below guidance due to synergy outperformance; total non-interest expense decreased $19 million sequentially to $375 million.

• Provision expense was $27 million, reflecting portfolio runoff and stable credit metrics; net charge-offs were 0.25% of average loans and leases (annualized).

Outlook and guidance

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

• Non-interest income is guided to the mid-$80 million range for Q3.

• 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; focus remains on operational enhancements and disciplined credit standards.