TACOMA, Wash., Oct. 24, 2024 /PRNewswire/ --

	$146 million		$143 million		$0.70		$0.69
	Net income		Operating net income ¹		Earnings per diluted common share		Operating earnings per diluted common share ¹

CEO Commentary

"Our third quarter results reflect our continued work and success as we strive toward top-quartile performance," said Clint Stein, President and CEO. "Our recurring expense run rate reflects a 25% reduction in costs over the 18 months we have operated as a combined organization, as we eliminated redundancies and streamlined operations. Our teams' dedication to driving value for our customers contributed to solid core deposit growth, even as deposit costs were reduced. Although loan balances contracted during the quarter, they reflect healthy customer activity and our focus on reducing transactional assets and their funding sources, as we regain Columbia's placement as a top-performing bank that delivers long-term, consistent, repeatable results for our shareholders."

–Clint Stein, President and CEO of Columbia Banking System, Inc.

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¹ "Non-GAAP" financial measure. See GAAP to Non-GAAP Reconciliation for additional information.

3Q24 HIGHLIGHTS (COMPARED TO 2Q24)

Net Interest Income and NIM	• Net interest income increased by $3 million from the prior quarter due to higher income earned on loans, which occurred despite a reduction in accretion income, and relatively stable funding costs prior to the late-quarter reduction in the federal funds rate.
Net Interest Income and NIM	• Net interest margin was 3.56%, unchanged from the prior quarter, as a favorable balance sheet funding mix shift into lower-cost deposits and a slight increase in loan yields offset a lower yield on securities.

Non-Interest Income and Expense	• Non-interest income increased by $21 million due to the quarterly fluctuation in cumulative fair value accounting and hedges, which drove $16 million of the change. Higher core banking activity contributed to the remaining increase.
Non-Interest Income and Expense	• Non-interest expense decreased by $8 million due to lower restructuring expense and a $6 million decline in salary and wages expense related to operational initiatives. The effect was partially offset by the prior quarter's reversal of compensation-related accruals, which did not repeat in the third quarter.

Credit Quality	• Net charge-offs were 0.31% of average loans and leases (annualized), compared to 0.32% in the prior quarter. Lower activity in the FinPac portfolio drove the decline.
	• Provision expense of $29 million compares to $32 million in the prior quarter.
	• Non-performing assets to total assets was 0.32%, compared to 0.30% as of June 30, 2024.

Capital	• Estimated total risk-based capital ratio of 12.5% and estimated common equity tier 1 risk-based capital ratio of 10.3%.
Capital	• Declared a quarterly cash dividend of $0.36 per common share on August 12, 2024, which was paid September 9, 2024.

Notable Items	• Realized $82 million in annualized cost savings associated with recent operational initiatives as of September 30, 2024. Reinvestment of $12 million in savings is ongoing and expected to extend into 2025.
Notable Items	• Opened our second retail branch in Arizona, which will be complemented by a planned third location in the state, slated to open in early 2025.

3Q24 KEY FINANCIAL DATA

PERFORMANCE METRICS	3Q24	2Q24	3Q23
Return on average assets	1.12 %	0.93 %	1.02 %
Return on average common equity	11.36 %	9.85 %	11.07 %
Return on average tangible common equity¹

COLUMBIA BANKING SYSTEM, INC. REPORTS THIRD QUARTER 2024 RESULTS