#United States #Columbia #Subordinated Notes #Banking #Tacoma

Columbia Banking System's Subordinated Notes Pricing Announcement

On September 14, 2026, Columbia Bank, a wholly-owned subsidiary of Columbia Banking System, Inc. (Nasdaq: COLB), declared the pricing of its new offering of subordinated notes. This issuance totals an impressive $250 million in aggregate principal amount, featuring a fixed interest rate of 6.721% per annum for the initial period. The offering is expected to reach closure on September 18, 2026, contingent upon meeting standard closing conditions.

Details of the Offering

The notes are set to provide quarterly interest payments until September 18, 2031. At that point, unless redeemed earlier, a new fixed interest rate will be implemented, calculated as the then-current Five-Year U.S. Treasury Rate plus an additional 195 basis points. These notes are crucial for Columbia Bank as they qualify as Tier 2 capital, which is vital for meeting regulatory capital requirements.

Columbia Bank has plans to utilize the net proceeds from this offering for various corporate objectives, primarily aimed at enhancing growth and reinforcing its capital structure. Furthermore, the bank will return up to $250 million of its capital back to Columbia, which intends to redeem some outstanding trust preferred securities with those funds.

Nature of the Notes

The subordinated notes represent unsecured obligations by Columbia Bank. Importantly, they are subordinated to all existing and future senior debts of the bank, which includes claims from depositors and other creditors. This means that any returns to noteholders come after the bank meets all other debt obligations, making them a higher-risk investment. Potential investors should note that these notes are not obligations of Columbia but solely those of Columbia Bank.

In compliance with regulatory standards, this offering is not being registered under the Securities Act of 1933 and is available only to institutional accredited investors. The indebtedness evidenced by these notes is not a deposit, nor is it insured by the Federal Deposit Insurance Corporation (FDIC) or any government entity.

About Columbia Banking System

Based in Tacoma, Washington, Columbia Banking System operates as the parent company of Columbia Bank, a recognized leader in the regional banking sector, demonstrating excellence through personalized customer service. Columbia Bank operates branches across Arizona, California, Colorado, Idaho, Nevada, Oregon, Texas, Utah, and Washington, offering a wide range of financial services.

Its product lineup includes retail and commercial banking, Small Business Administration (SBA) lending, equipment leasing, as well as investment and wealth management services through Columbia Wealth Management, catering to both consumers and businesses.

Closing Thoughts

As Columbia Banking System gears up for this key funding opportunity, stakeholders are encouraged to stay updated with the developments surrounding the offering. With its firm commitment to leveraging capital for strategic growth, Columbia Bank is poised to enhance its operational capabilities while maintaining financial soundness.

This announcement reflects Columbia's proactive approach to capital management in a dynamic economic environment, ensuring it remains a competitive player in the banking sector.