Columbia Banking System (COLB) 2026 RBC Capital Markets Global Financial Institutions Conference summary

Strategic overview and recent developments

• Completed acquisition of Pacific Premier Bank, finalizing the envisioned franchise and expanding presence to over 350 locations in eight western states, with a strong concentration in California, Oregon, and Washington.

• Recent systems conversion was successful, boosting team morale and productivity.

• Focus has shifted from expansion to optimizing and fine-tuning the existing franchise, leveraging technology and process improvements.

• After a decade of frequent acquisitions, the current strategy emphasizes internal enhancement over further M&A.

Economic and regional outlook

• Western footprint remains healthy, with business owners resuming expansion plans after a period of uncertainty in 2023.

• Noted concerns about the business climate in Portland and Seattle due to recent tax increases and regulatory changes, potentially impacting business retention.

• Flexibility to relocate non-customer-facing roles across friendlier states within the footprint.

• Despite some companies leaving major coastal states, regional markets remain vibrant and diversified.

Financial strategy and balance sheet management

• Treasury and finance teams are shifting from reporting to strategic scenario planning, with new leadership and quarterly business reviews implemented.

• Asset optimization focuses on reducing transactional-only loans, expecting $1–1.5 billion to run off, replaced by higher-yielding core relationship lending.

• Loan portfolio stands just under $48 billion, with repricing and remixing driving net interest margin improvement.

• Deposit base is strong, with 33–34% non-interest-bearing deposits and industry-leading pricing.

• Wholesale funding and inherited sub-debt are being reduced to further clean up the funding stack.