Columbia Banking System (COLB) risk factors, FY2025 10-K

Risks Relating to our Operations

1. 01Acquisitions and the integration of acquired businesses subject us to various risks and may not result in all of the benefits anticipated, future acquisitions may be dilutive to current shareholders and future acquisitions may be delayed, impeded, or prohibited due to regulatory issues
2. 02Our ability to sustain or improve upon existing performance is dependent upon our ability to respond to technological change, and we may have fewer resources than some of our competitors to continue to invest in technological improvements
3. 03We may not be able to attract or retain key employees
4. 04The development and use of Artificial Intelligence (“AI”) presents risks and challenges that may adversely impact our business

Risks Relating to our acquisition of Pacific Premier

1. 05Combining Columbia and Pacific Premier may be more difficult, costly or time-consuming than expected, and Columbia may fail to realize the anticipated benefits of the acquisition of Pacific PremierNew
2. 06Columbia may be unable to retain Columbia and/or legacy Pacific Premier personnel successfullyNew
3. 07Economic conditions in the market areas we serve may adversely impact our earnings and could increase our credit risk associated with our loan portfolio, the value of our investment portfolio and the availability of deposits21% rewritten
4. 08Concentrations within our loan portfolio could result in increased credit risk in a challenging economy
5. 09A large percentage of our loan portfolio is secured by real estate, in particular CRE. Deterioration in the real estate market or other segments of our loan portfolio would lead to additional losses26% rewritten
6. 10Our allowance may not be adequate to cover future loan losses, which could adversely affect earnings
7. 11Non-performing assets take significant time to resolve and could adversely affect our results of operations and financial condition
8. 12Fluctuating interest rates could adversely affect our business
9. 13Our business depends on our ability to successfully manage credit risk
10. 14We may be required, in the future, to recognize a credit loss with respect to investment securities
11. 15We are exposed to the risk of environmental liabilities in connection with real properties acquired
12. 16Our management of capital could adversely affect profitability measures and the market price of our common stock and could dilute the holders of our outstanding common stock
13. 17Deposits are a critical source of funds for our continued growth and profitability
14. 18Rate fluctuations are unpredictable and can adversely impact our ability to maintain consistently low-cost funding
15. 19Loss of customer deposits could increase the Company’s funding costs
16. 20The Company could lose access to sources of liquidity if it were to experience financial or regulatory issues

Legal, Accounting and Compliance Risks

1. 21We operate in a highly regulated environment and changes to or increases in, or supervisory enforcement of, banking or other laws and regulations or governmental fiscal or monetary policies could adversely affect us
2. 22Changes in accounting standards could materially impact our financial statements
3. 23Significant legal or regulatory actions could subject us to substantial uninsured liabilities and reputational harm and have a material adverse effect on our business and results of operations
4. 24Financial holding company status

Risks Relating to Markets and External Events

1. 25National and global economic and other conditions could adversely affect our future results of operations or market price of our stock
2. 26Substantial competition in our market areas could adversely affect us27% rewritten
3. 27Climate change concerns could adversely affect our business, affect client activity levels, and damage our reputation28% rewritten
4. 28Our business is subject to the risks of pandemics, earthquakes, tsunamis, floods, fires and other natural catastrophic events and other events beyond our control

Risks Relating to Investment in our Stock

1. 29There can be no assurance as to the level of dividends we may pay on our common stock
2. 30We rely on dividends and other payments from our bank for substantially all of our revenue
3. 31We have various anti-takeover measures that could impede a takeover