About Columbia Banking System

Columbia Banking System, Inc. (Columbia) operates as a registered financial holding company. The company, through Umpqua Bank (the bank), provides a broad range of banking, private banking, mortgage, and other financial services to corporate, institutional, small business, and individual customers. FinPac, a commercial equipment leasing company, is a subsidiary of the bank. Along with its subsidiaries, the company is subject to the regulations of state and federal agencies and undergoes regular examinations by these regulatory agencies. The majority of the bank’s loans and deposits are within its service areas in Oregon, Washington, California, Idaho, Nevada, Arizona, Colorado, and Utah. Umpqua Bank is an Oregon state-chartered commercial bank, the deposits of which are insured in whole or in part by the FDIC. Business Strategy The company’s approach is a concentrated focus on full banking relationships, bringing together collaborative teams from commercial and consumer banking, as well as wealth management, and leveraging the company’s retail branch network to provide community banking at scale. The company continually evaluates its existing business processes while focusing on maintaining asset quality and a granular loan and deposit portfolio diversified by product, customer, industry, and geography. The company’s merger with Umpqua Holdings Corporation accelerated the company’s targeted strategy to expand market share in communities in the western United States. The company’s scaled franchise and offerings, talented associate base, and customer-focused business model enable the company to provide comprehensive financial services in a manner that serves the company’s four identified stakeholder groups: associates, customers, shareholders, and communities. As a result of the company’s strong commitment to highly personalized, relationship-oriented customer service, the company’s diverse products, the company’s strategic branch locations, and the long-standing community presence of the company’s associates, the company is well positioned to attract new customers while not only retaining existing customers, but also deepening the company’s relationship with them. Products and Services The company places the highest priority on customer service and assist the company’s customers in making informed decisions when selecting from the products and services the company offers. The company’s array of financial products is delivered through traditional and digital channels to meet the banking needs of the company’s market area and commercial and consumer customers. The company’s customers can access its products through online banking, mobile banking applications, and the company’s website: www.umpquabank.com. Commercial Lending Products The company offers specialized loans for corporate, middle market, and small business customers, including commercial lines of credit and term loans, accounts receivable and inventory financing, international trade finance, commercial property loans, multifamily loans, equipment loans, commercial equipment leases, real estate construction loans and permanent financing, and Small Business Administration program financing, as well as capital markets. Treasury Management As Umpqua Bank focuses on banking the full customer relationship and meeting the needs of customers of all sizes, the company offers treasury management and payments solutions to the company’s customers through the company’s Global Payments & Deposits group. These products include business digital and mobile banking solutions, ACH, wires, positive pay, remote deposit capture, integrated payments, integrated receivables, lockbox, cash vault, Real-Time Payments via The Clearinghouse, commercial card, and foreign exchange and international banking related products. The company also offers merchant services in coordination with a strategic partner. Within the company’s business digital experience, customers can engage in a fully authenticated chat and co-browse feature with a knowledgeable Treasury and Payments representative if they require assistance with any of the bank’s solutions. Deposit Products The company offers deposit products, including non-interest bearing checking accounts, analyzed business accounts, interest-bearing checking and savings accounts, money market accounts, insured cash sweep and other investment sweep solutions, and certificates of deposit. Wealth Management As a division of Umpqua Bank, the Wealth Management team provides a full suite of financial planning, investment, trust, insurance, and private banking solutions to individuals, families, and businesses through the Columbia Wealth Advisors, Columbia Trust Company, and Columbia Private Bank. The company delivers personalized service and experience through dedicated financial advisors that leverage an approach that revolves around the three stages of the wealth cycle: grow, preserve, and transition. Residential Real Estate Loans Real estate loans are available for the construction, purchase, and refinancing of residential owner occupied and rental properties. Borrowers can choose from a variety of fixed and adjustable rate options and terms. The company sells many of the residential real estate loans that the company originates into the secondary market. Servicing is retained on the majority of these loans. Consumer Loans The company provides loans to individual borrowers for a variety of purposes, including secured and unsecured personal loans, home equity and personal lines of credit, and motor vehicle loans. Market Area In the company’s primary market areas of Oregon, Washington, California, Idaho, and Nevada, major national banks generally hold top market share positions. Loans Commercial Real Estate and Commercial Loans Commercial real estate and commercial loans are the largest classifications within earning assets. Commercial Real Estate Loans The commercial real estate portfolio includes loans to developers and institutional sponsors supporting income-producing or for-sale commercial real estate properties. Loans secured by office properties represent approximately 8% of the company’s total loan portfolio at December 31, 2023. Office properties located in suburban markets secure the majority of the company’s office portfolio as only 6% of non-owner occupied loans are located in downtown core business districts. Loans secured by multifamily properties, including construction, represent approximately 19% of the total loan portfolio. These assets continue to perform well due to demand for rental properties in the company’s geographical footprint. Commercial Loans Commercial loans are made to commercial customers for use in normal business operations to finance working capital needs, equipment purchases, or other projects. The company focuses on borrowers doing business within its geographic markets. Commercial loans are generally underwritten individually and secured with the assets of the company and/or the personal guarantee of the business owners. Lease and equipment financing products are designed to address the diverse financing needs of small to large companies, primarily for the acquisition of equipment. The leases and equipment finance portfolio represents approximately 18% of the commercial portfolio and 5% of the total loan portfolio. The leasing portfolio has elevated non-performing and charge-offs centered in the trucking or transportation portion of the portfolio. Residential Real Estate Loans Residential real estate loans represent mortgage loans and lines of credit to consumers for the purchase or refinance of a residence. These loans are generally financed over a 15-year to 30-year term, and in most cases, are extended to borrowers to finance their primary residence. Consumer Loans Consumer loans include secured and unsecured personal loans, home equity and personal lines of credit, and motor vehicle loans. Investment Portfolio As of December 31, 2023, the company’s securities portfolio were U.S. Treasury and agencies, obligations of states and political subdivisions, and mortgage-backed securities and collateralized mortgage obligations. Customers The company is committed to helping individuals, families, and businesses thrive. The company focuses on the genuine human connection and building long-term relationships by putting customer needs first. The company sees technology as a vital tool to better serve its customers expanding access to the expertise of the company’s bankers. The company prioritizes financial health and access to capital for its customers and communities. The company continues to innovate and find new ways to provide access to financial solutions across a diverse customer base. Underscoring the company’s commitment to the growth and success of its customers and their needs, the company surveyed 1,250 businesses nationwide to gauge their perspective and plans on the United States economy and business conditions. In 2023, the company continued to invest in community lending efforts to promote access to homeownership for first-time homebuyers through responsible lending practices and education programs. Supervision and Regulation The company is a bank holding company as defined in the BHCA that has elected to become a financial holding company, and is therefore subject to regulation, supervision, and examination by the Federal Reserve. In addition, under the Bank Merger Act of 1960, as amended, the prior approval of the FDIC is required for the bank to merge with another bank or purchase all or substantially all of the assets or assume any of the deposits of another FDIC-insured depository institution. The deposits of Umpqua Bank, an Oregon state-chartered commercial bank in Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah, and Washington, are insured by the FDIC. As a result, Umpqua Bank is subject to supervision and regulation by the DCBS and the FDIC. With respect to branches of Umpqua Bank, the bank is also subject to certain laws and regulations governing its activities in the states in which the company operates. Umpqua Bank, as an Oregon state-chartered bank, is primarily subject to the state-level supervision and regulation of the DCBS. In addition, Umpqua Bank is subject to regulation by the financial institution oversight authorities in the states of Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah, and Washington. The company’s primary state regulator regularly examines the bank or participates in joint examinations with the FDIC. The bank received a rating of ‘Satisfactory’ in its most recently completed CRA examination. Umpqua Bank is also subject to regulation under the International Emergency Economic Powers Act and the Trading with the Enemy Act, as administered by the United States Treasury Department’s Office of Foreign Assets Control (‘Sanctions Laws’). Umpqua Bank has established compliance programs designed to comply with the BSA, the Patriot Act and applicable Sanctions Laws. The bank has an accumulated deficit and is required to seek FDIC and DCBS approval for dividends from Umpqua Bank to the company. The bank is also subject to the prompt corrective action regulations pursuant to Section 38 of the FDIA. The company is subject to the CCPA and its implementing regulations. The bank’s deposits are insured under the FDIA up to the maximum applicable limits and are subject to deposit insurance assessments designed to tie what banks pay for deposit insurance to the risks they pose. History Columbia Banking System, Inc. was founded in 1953.