COLUMBIA BANKING SYSTEM, INC. MANAGEMENT REPORT ON FINANCIAL POSITION AND RESULTS OF OPERATIONS (Form 10-Q)

This discussion should be read in conjunction with the unaudited Consolidated
Financial Statements of Columbia Banking System, Inc. (referred to in this
report as "we", "our", "Columbia" and "the Company") and notes thereto presented
elsewhere in this report and with the December 31, 2021 audited Consolidated
Financial Statements and its accompanying notes included in our Annual Report on
Form 10-K. In the following discussion, unless otherwise noted, references to
increases or decreases in average balances in items of income and expense for a
particular period and balances at a particular date refer to the comparison with
corresponding amounts for the period or date one year earlier.
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              CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This quarterly report on Form 10-Q may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, but are not limited to, statements about our
plans, objectives, expectations and intentions that are not historical facts,
and statements identified by words such as "expects," "anticipates," "intends,"
"plans," "believes," "should," "projects," "seeks," "estimates" or the negative
version of those words or other comparable words or phrases of a future or
forward-looking nature, as well as the continuing effects of the COVID-19
pandemic on the Company's business, operations, financial performance and
prospects. Forward-looking statements are based on current beliefs and
expectations of management and are inherently subject to significant business,
economic and competitive uncertainties and contingencies, many of which are
beyond our control. In addition, forward-looking statements are subject to
assumptions with respect to future business strategies and decisions that are
subject to change. In addition to the factors set forth in the section titled
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" in this report and the factors set forth in the section titled "Risk
Factors" in the Company's Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q, the following factors, among others, could cause actual results to
differ materially from the anticipated results expressed or implied by
forward-looking statements:

•national and global economic conditions could be less favorable than expected
or could have a more direct and pronounced effect on us than expected and
adversely affect our ability to continue internal growth and maintain the
quality of our earning assets;
•the markets where we operate and make loans could face challenges;
•the risks presented by the economy, which could adversely affect credit
quality, collateral values, including real estate collateral, investment values,
liquidity and loan originations and loan portfolio delinquency rates;
•continued increases in inflation and the risk that inflation may differ,
possibly materially, from expectations, and actions taken by the Federal Reserve
in response to inflation and their potential impact on economic conditions;
•risks related to the proposed merger with Umpqua including, among others, (i)
failure to complete the merger with Umpqua or unexpected delays related to the
merger or either party's inability to obtain regulatory approvals or satisfy
other closing conditions required to complete the merger, (ii) regulatory
approvals resulting in the imposition of conditions that could adversely affect
the combined company or the expected benefits of the transaction, (iii) certain
restrictions during the pendency of the proposed transaction with Umpqua that
may impact the parties' ability to pursue certain business opportunities or
strategic transactions, (iv) diversion of management's attention from ongoing
business operations and opportunities, (v) cost savings and any revenue
synergies from the merger may not be fully realized or may take longer than
anticipated to be realized, (vi) the integration of each party's management,
personnel and operations will not be successfully achieved or may be materially
delayed or will be more costly or difficult than expected, (vii) deposit
attrition, customer or employee loss and/or revenue loss as a result of the
announcement of the proposed merger, (viii) expenses related to the proposed
merger being greater than expected, and (ix) shareholder litigation that may
prevent or delay the closing of the proposed merger or otherwise negatively
impact the Company's business and operations;
•the efficiencies and enhanced financial and operating performance we expect to
realize from investments in personnel, acquisitions (including the recent
acquisition of Bank of Commerce) and infrastructure may not be realized;
•the ability to successfully integrate Bank of Commerce, or to integrate future
acquired entities;
•interest rate changes could significantly reduce net interest income and
negatively affect asset yields and funding sources;
•the effect of the discontinuation or replacement of LIBOR;
•results of operations following strategic expansion, including the impact of
acquired loans on our earnings, could differ from expectations;
•changes in the scope and cost of FDIC insurance and other coverages;
•changes in accounting policies or procedures as may be required by the FASB or
other regulatory agencies could materially affect our financial statements and
how we report those results, and expectations and preliminary analysis relating
to how such changes will affect our financial results could prove incorrect;
•changes in laws and regulations affecting our businesses, including changes in
the enforcement and interpretation of such laws and regulations by applicable
governmental and regulatory agencies;
•increased competition among financial institutions and nontraditional providers
of financial services;
•continued consolidation in the financial services industry resulting in the
creation of larger financial institutions that have greater resources could
change the competitive landscape;
•the goodwill we have recorded in connection with acquisitions could become
impaired, which may have an adverse impact on our earnings and capital;
•our ability to identify and address cyber-security risks, including security
breaches, "denial of service attacks," "hacking" and identity theft;
•any material failure or interruption of our information and communications
systems;
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•inability to keep pace with technological changes;
•our ability to effectively manage credit risk, interest rate risk, market risk,
operational risk, legal risk, liquidity risk and regulatory and compliance risk;
•failure to maintain effective internal control over financial reporting or
disclosure controls and procedures;
•the effect of geopolitical instability, including wars, conflicts and terrorist
attacks, including the impacts of Russia's invasion of Ukraine;
•our profitability measures could be adversely affected if we are unable to
effectively manage our capital;
•the risks from climate change and its potential to disrupt our business and
adversely impact the operations and creditworthiness of our customers;
•natural disasters, including earthquakes, tsunamis, flooding, fires and other
unexpected events;
•the effect of COVID-19 and other infectious illness outbreaks that may arise in
the future, which has created significant impacts and uncertainties in U.S. and
global markets;
•changes in governmental policy and regulation, including measures taken in
response to economic, business, political and social conditions, including with
regard to COVID-19; and
•the effects of any damage to our reputation resulting from developments related
to any of the items identified above.

You should take into account that forward-looking statements speak only as of
the date of this report. Given the described uncertainties and risks, we cannot
guarantee our future performance or results of operations and you should not
place undue reliance on forward-looking statements. We undertake no obligation
to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required under federal
securities laws.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Management has identified the accounting policies related to the ACL, business
combinations and the valuation and recoverability of goodwill as critical to an
understanding of our financial statements. These policies and related estimates
are discussed in "Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations" under the headings "Allowance for Credit
Losses," "Business Combinations" and "Valuation and Recoverability of Goodwill"
in our 2021 Annual Report on Form 10-K. There have not been any material changes
in our critical accounting policies and estimates as compared to those disclosed
in our 2021 Annual Report on Form 10-K.

RESULTS OF OPERATIONS

Our results of operations are dependent to a large degree on our net interest
income. We also generate noninterest income from our broad range of products and
services including treasury management, wealth management and debit and credit
cards. Our operating expenses consist primarily of compensation and employee
benefits, occupancy, data processing and software and legal and professional
fees. Like most financial institutions, our interest income and cost of funds
are affected significantly by general economic conditions, particularly changes
in market interest rates, and by government policies and actions of regulatory
authorities.

In November 2020, the SEC issued Final Rule 33-10890, Management's Discussion
and Analysis, Selected Financial Data and Supplementary Financial Information,
which modernizes and simplifies certain disclosure requirements of Regulation
S-K. One update to Item 303 of Regulation S-K allows registrants to compare the
results of the most recently completed quarter to the results of either the
immediately preceding quarter or the corresponding quarter of the preceding
year. We have adopted this change, as management believes that comparing current
quarter results to those of the immediately preceding quarter is more useful in
identifying current business trends and provides a more meaningful comparison.
Additionally, in the first filing after the adoption of this rule change, we are
required to disclose a comparison of the results for the current quarter and the
corresponding quarter of the preceding fiscal year. Accordingly, we have
compared the results for the three months ended March 31, 2022, December 31,
2021 and March 31, 2021, where applicable throughout this Management's
Discussion and Analysis.

Earnings Summary

Comparison of the current quarter with the previous quarter

The Company reported net income for the first quarter of $57.5 million or $0.74
per diluted common share, compared to $42.9 million or $0.55 per diluted common
share for the fourth quarter of 2021. Net interest income for the three months
ended March 31, 2022 was $146.2 million, an increase of $677 thousand from the
prior quarter. The increase was primarily a result of higher interest income
related to increased yield for the securities portfolio substantially driven by
lower premium amortization.


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The Company recorded a $7.8 million recapture for credit losses for the first
quarter of 2022 compared to a net provision of $11.1 million for the fourth
quarter of 2021. The decrease in provision expense for the first quarter of 2022
as compared to the fourth quarter of 2021 was primarily related to improved
credit quality. The prior quarter's net provision was recorded primarily due to
the initial allowance for non-PCD loans acquired in the Bank of Commerce
acquisition.

Noninterest income for the current quarter was $24.2 million, a decrease of $60
thousand from the prior quarter. The decrease was largely due to lower loan fees
and mortgage banking revenue partially offset by financial services and trust
revenue and other noninterest income including a gain on the sale of loans of
$868 thousand for the current quarter.

Total noninterest expense for the quarter ended March 31, 2022 was $105.1
million, an increase of $2.4 million from the prior quarter. Acquisition-related
expenses in the current quarter were $7.1 million compared to $11.8 million for
the prior quarter. Taking this into consideration, the largest contributor to
the increase in noninterest expense for the current quarter is related to
compensation and employee benefits that can be attributed to higher 401k and
payroll tax expenses, which are typically elevated in the first quarter. The
increase was also attributable to a $500 thousand provision for unfunded loan
commitments recorded in the current quarter compared to a $2.0 million recapture
recorded in the prior quarter. Higher data processing and software expenses
partially offset by lower professional services expense were also drivers of the
current quarter increase.

Comparison of the current quarter with the period of the previous year

The Company reported net income for the first quarter of $57.5 million or $0.74
per diluted common share, compared to $51.9 million or $0.73 per diluted common
share for the first quarter of 2021. Net interest income for the three months
ended March 31, 2022 was $146.2 million, an increase of $22.2 million from the
prior year period. The increase was primarily due to increases in interest
income from loans and securities, which were a result of higher average balances
partially related to the Bank of Commerce acquisition.

The Company recorded a $7.8 million recapture for credit losses for the first
quarter of 2022 compared to a provision recapture of $800 thousand for the first
quarter of 2021. The increase in net provision recapture for the first quarter
of 2022 compared to the first quarter of 2021 was principally the result of
improved credit quality.

Noninterest income for the current quarter was $24.2 million, an increase of
$1.0 million from the prior year period. The increase was largely due to
increases associated with other noninterest income, financial services and trust
revenue and card revenue offset by lower mortgage banking revenue due to lower
overall mortgage production and decreased premium on loan sales as a result of
the higher rate environment.

Total noninterest expense for the quarter ended March 31, 2022 was $105.1
million, an increase of $21.5 million from the prior year period. This increase
was primarily driven by higher compensation and employee benefits due to our
acquisition of Bank of Commerce in the fourth quarter of 2021 and the prior year
period having substantial labor costs capitalized for PPP loan originations.
Increased acquisition-related expenses related to legal and professional fees,
occupancy and data processing and software also contributed to the increase from
the prior year period.
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Net interest income

The following table sets forth the average balances of all major categories of
interest-earning assets and interest-bearing liabilities, the total dollar
amounts of interest income on interest-earning assets and interest expense on
interest-bearing liabilities, the average yield earned on interest-earning
assets and average cost of interest-bearing liabilities by category and, in
total, net interest income and net interest margin:

                                                                                                                                    Three Months Ended
                                                                   March 31, 2022                                                   December 31, 2021                                                    March 31, 2021
                                                Average               Interest               Average               Average               Interest               Average               Average               Interest               Average
                                               Balances             Earned / Paid              Rate               Balances             Earned / Paid              Rate               Balances             Earned / Paid              Rate

                                                                                                                                  (dollars in thousands)
ASSETS
Loans, net (1)(2)                           $ 10,665,242          $      108,181                 4.11  %       $ 10,545,172          $      111,709                 4.20  %       $  9,586,984          $      101,477                 4.29  %
Taxable securities                             7,217,844                  37,162                 2.09  %       $  6,934,477          $       33,654                 1.93  %          4,624,175                  22,816                 2.00  %
Tax exempt securities (2)                        792,763                   4,715                 2.41  %       $    759,182          $        4,364                 2.28  %            606,129                   3,492                 2.34  %
Interest-earning deposits with banks             590,795                     295                 0.20  %       $    947,567          $          360                 0.15  %            602,083                     152                 0.10  %
Total interest-earning assets                 19,266,644                 150,353                 3.16  %       $ 19,186,398          $      150,087                 3.10  %         15,419,371                 127,937                 3.36  %
Other earning assets                             302,865                                                       $    276,828                                                            242,684
Noninterest-earning assets                     1,386,157                                                       $  1,394,757                                                          1,229,627
Total assets                                $ 20,955,666                                                       $ 20,857,983                                                       $ 16,891,682
LIABILITIES AND SHAREHOLDERS' EQUITY
Money market accounts                          4,530,698                     960                 0.09  %          4,339,959                     951                 0.09  %          3,450,750                     699                 0.08  %
Interest-bearing demand                        2,024,757                     374                 0.07  %          1,967,559                     376                 0.08  %          1,449,642                     265                 0.07  %
Savings accounts                               1,632,369                      77                 0.02  %          1,593,434                      78                 0.02  %          1,221,431                      40                 0.01  %
Interest-bearing public funds, other
than certificates of deposit                     776,965                     288                 0.15  %            787,395                     252                 0.13  %            663,158                     276                 0.17  %
Certificates of deposit                          437,251                      97                 0.09  %            458,837                     150                 0.13  %            336,319                     205                 0.25  %
Total interest-bearing deposits                9,402,040                   1,796                 0.08  %          9,147,184                   1,807                 0.08  %          7,121,300                   1,485                 0.08  %
FHLB advances and FRB borrowings                   7,354                      71                 3.92  %              7,368                      74                 3.98  %              7,408                      72                 3.94  %
Subordinated debentures                           10,000                     144                 5.84  %             43,859                     561                 5.07  %             35,072                     468                 5.41  %
Other borrowings and interest-bearing
liabilities                                       76,185                      74                 0.39  %             56,803                      71                 0.50  %             53,691                      23                 0.17  %
Total interest-bearing liabilities             9,495,579                   2,085                 0.09  %          9,255,214                   2,513                 0.11  %          7,217,471                   2,048                 0.12  %
Noninterest-bearing deposits                   8,695,832                                                          8,788,127                                                          7,091,316
Other noninterest-bearing liabilities            228,879                                                            230,532                                                            236,302
Shareholders' equity                           2,535,376                                                          2,584,110                                                          2,346,593
Total liabilities & shareholders'
equity                                      $ 20,955,666                                                       $ 20,857,983                                                       $ 16,891,682
Net interest income (tax equivalent)                              $      148,268                                                     $      147,574                                                     $      125,889
Net interest margin (tax equivalent)                                                             3.12  %                                                            3.05  %                                                            3.31  %


__________
(1)Nonaccrual loans have been included in the tables as loans carrying a zero
yield. Amortized net deferred loan fees and net unearned discounts on acquired
loans were included in the interest income calculations. The amortization of net
deferred loan fees was $4.2 million, $6.2 million and $8.3 million for the three
months ended March 31, 2022, December 31, 2021 and March 31, 2021, respectively.
The net incremental amortization on acquired loans was $350 thousand for the
three months ended March 31, 2022 compared to net incremental accretion of $16
thousand and $1.1 million for the three months ended December 31, 2021 and
March 31, 2021, respectively.
(2)Tax-exempt income is calculated on a tax equivalent basis. The tax equivalent
yield adjustment to interest earned on loans was $1.1 million for both the three
months ended March 31, 2022 and December 31, 2021 and $1.2 million for the three
months ended March 31, 2021. The tax equivalent yield adjustment to interest
earned on tax exempt securities was $990 thousand, $917 thousand and $733
thousand for the three months ended March 31, 2022, December 31, 2021 and
March 31, 2021, respectively.
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The following table sets forth the total dollar amount of change in interest
income and interest expense. The changes have been segregated for each major
category of interest-earning assets and interest-bearing liabilities into
amounts attributable to changes in volume and changes in rates. Changes
attributable to the combined effect of volume and interest rates have been
allocated proportionately to the changes due to volume and the changes due to
interest rates:

                                                 Three Months Ended March 31, 2022 Compared to           Three Months Ended March 31, 2022 Compared to
                                                               December 31, 2021                                         March 31, 2021
                                                          Increase (Decrease) Due to                               Increase (Decrease) Due to
                                                  Volume             Rate            Total (1)            Volume              Rate            Total (1)

                                                                                             (in thousands)
Interest Income
Loans, net                                     $   1,260          $ (4,788)         $  (3,528)         $   11,065          $ (4,361)         $   6,704
Taxable securities                                 1,409             2,099              3,508              13,314             1,032             14,346
Tax exempt securities                                197               154                351               1,107               116              1,223
Interest-earning deposits with banks                (159)               94                (65)                 (3)              146                143
Interest income                                $   2,707          $ (2,441)         $     266          $   25,483          $ (3,067)         $  22,416
Interest Expense
Deposits:
Money market accounts                          $      41          $    (32)         $       9          $      228          $     33          $     261
Interest-bearing demand                               11               (13)                (2)                106                 3                109
Savings accounts                                       2                (3)                (1)                 15                22                 37
Interest-bearing public funds, other
than certificates of deposit                          (3)               39                 36                  44               (32)                12
Certificates of deposit                               (6)              (47)               (53)                 50              (158)              (108)
Total interest on deposits                            45               (56)               (11)                443              (132)               311
FHLB advances and FRB borrowings                       -                (3)                (3)                 (1)                -                 (1)
Subordinated debentures                             (498)               81               (417)               (364)               40               (324)
Other borrowings and interest-bearing
liabilities                                            9                (6)                 3                  13                38                 51
Interest expense                               $    (444)         $     16          $    (428)         $       91          $    (54)         $      37


__________

(1) Interest variation that is not due solely to volume or rate has been allocated in proportion to the absolute dollar amount of each variation.

Comparison of the current quarter with the previous quarter

Net interest income for the first quarter of 2022 was $146.2 million, up from
$145.5 million for the fourth quarter in 2021. The increase was mainly due to
higher interest income related to increased yield on the securities portfolio
substantially driven by lower premium amortization partially offset by lower
yield on the loan portfolio. Also contributing was lower interest expense as a
result of the $35.0 million repayment of subordinated debentures in the prior
quarter.

The Company's net interest margin (tax equivalent) increased to 3.12% in the
first quarter of 2022, from 3.05% for the prior quarter. This increase was
driven by higher yields on securities driven by substantially lower premium
amortization partially offset by lower yield on the loan portfolio. A stronger
earning assets mix with a lower ratio of low-yield interest-earning deposits
with banks was also a contributing factor to the improved net interest margin.
The Company's operating net interest margin (tax equivalent)1 increased to 3.15%
from 3.08% compared to the fourth quarter of 2021. The increase was also due to
higher yields on securities and a stronger earnings mix as noted above.

Comparison of the current quarter with the period of the previous year

Net interest income for the first quarter of 2022 was $146.2 million, up from
$124.0 million for the same quarter in 2021. The increase was mainly due to an
increase in interest income from loans and securities due to higher average
balances partially related to the Bank of Commerce acquisition.

1 Net operating interest margin (tax equivalent) is a non-GAAP financial measure. See the “Non-GAAP Financial Measures” section of this MD&A.

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The Company's net interest margin (tax equivalent) decreased to 3.12% in the
first quarter of 2022, from 3.31% for the prior year period. This decrease was
driven by lower average rates on loans. The Company's operating net interest
margin (tax equivalent) decreased to 3.15% from 3.30% compared to the first
quarter of 2021, which was also due to lower average rates on loans.

Provision for credit losses

Comparison of the current quarter with the previous quarter

During the first quarter of 2022, the Company recorded a $7.8 million recapture
for credit losses for the first quarter of 2022 compared to a net provision of
$11.1 million for the fourth quarter of 2021. The decrease in provision expense
for the first quarter of 2022 as compared to the fourth quarter of 2021 was
related to improved credit quality. The prior quarter's net provision was
recorded due to the initial allowance for non-PCD loans acquired in the Bank of
Commerce acquisition.

Comparison of the current quarter with the period of the previous year

During the first quarter of 2022, the Company recorded a $7.8 million recapture
for credit losses compared to an $800 thousand net provision recapture during
the first quarter of 2021. This was principally the result of credit quality
improvement.

The net provision recapture for credit losses recorded during the current
quarter also reflected management's ongoing assessment of the credit quality of
the Company's loan portfolio. Other factors affecting the provision include net
charge-offs, credit quality migration and the size and composition of the loan
portfolio and changes in the economic environment during the first quarter of
2022. The amount of provision was calculated in accordance with the Company's
methodology for determining the ACL, discussed in   Note 6 to the Consolidated
Financial Statements in "Item 1. Financial Statements (unaudited)"   of this
report.

Noninterest Income

The following table shows the significant components of non-interest revenue and the related dollar and percentage change from period to period:

                                                   Three Months Ended                                    Prior Quarter                           Prior Year Period
                                    March 31,         December 31,         March 31,
                                       2022               2021                2021              $ Change              % Change             $ Change            % Change

                                                                                            (dollars in thousands)
Deposit account and treasury
management fees                    $   7,113          $    7,155          $   6,358          $        (42)                   (1) %       $     755                    12  %
Card revenue                           4,967               5,108              3,733                  (141)                   (3) %           1,234                    33  %
Financial services and trust
revenue                                4,632               3,877              3,381                   755                    19  %           1,251                    37  %
Loan revenue                           3,193               4,977              7,369                (1,784)                  (36) %          (4,176)                  (57) %
Bank owned life insurance              1,788               1,753              1,560                    35                     2  %             228                    15  %

Other                                  2,487               1,370                765                 1,117                    82  %           1,722                   225  %
Total noninterest income           $  24,180          $   24,240          $  23,166          $        (60)                    -  %       $   1,014                     4  %



Comparison of the current quarter with the previous quarter

Noninterest income was $24.2 million for the first quarter of 2022, a decrease
of $60 thousand from the prior quarter. This decrease was due to lower loan fees
and mortgage banking revenue partially offset by higher financial services and
trust revenue and other noninterest income including a gain on the sale of loans
of $868 thousand in the current quarter.

Comparison of the current quarter with the period of the previous year

Noninterest income was $24.2 million for the first quarter of 2022, compared to
$23.2 million for the same period in 2021. The increase was primarily due to
increases associated with other noninterest income, financial services and trust
revenue and card revenue offset by lower mortgage banking revenue due to lower
overall mortgage production and decreased premium on loan sales as a result of
the higher rate environment.
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Non-interest expenses

The following table shows the significant components of non-interest expenses and the related dollar and percentage change from period to period:

                                                      Three Months Ended                                       Prior Quarter                            Prior Year Period
                                                            December 31,         March 31,
                                     March 31, 2022             2021                2021               $ Change              % Change             $ Change            % Change

                                                                                               (dollars in thousands)
Compensation and employee
benefits                           $        63,079          $   64,169          $  51,736          $      (1,090)                   (2) %       $  11,343                    22  %
Occupancy                                   11,009              10,076              9,006                    933                     9  %           2,003                    22  %
Data processing and software                10,324               9,130              8,451                  1,194                    13  %           1,873                    22  %
Legal and professional fees                  6,535               7,937              2,815                 (1,402)                  (18) %           3,720                   132  %
Amortization of intangibles                  2,288               2,376              1,924                    (88)                   (4) %             364                    19  %
B&O taxes                                    1,589               1,571              1,259                     18                     1  %             330                    26  %
Advertising and promotion                      726               1,357                760                   (631)                  (46) %             (34)                   (4) %
Regulatory premiums                          1,536               1,481              1,105                     55                     4  %             431                    39  %
Net cost (benefit) of
operation of OREO                               10                  14                (63)                    (4)                  (29) %              73                  (116) %
Other                                        7,957               4,511              6,566                  3,446                    76  %           1,391                    21  %

Total non-interest expense $105,053 $102,622

    $  83,559          $       2,431                     2  %       $  21,494                    26  %



The following table shows the impact of acquisition-related expenses for the periods indicated on the various components of non-interest expense:

                                                                                          Three Months Ended
                                                                        March 31,        December 31,
                                                                          2022               2021              March 31, 2021

                                                                                            (in thousands)
Acquisition-related expenses:
Compensation and employee benefits                                     $    586          $    4,875          $             -
Occupancy                                                                   819                 271                        -
Data processing and software                                              1,039                 286                        -
Legal and professional fees                                               4,209               5,624                        -

Advertising and promotion                                                   134                 111                        -
Other                                                                       270                 645                        -

Total impact of acquisition-related costs on non-interest expenses

                                                                $  7,057          $   11,812          $             -
Acquisition-related expenses by transaction:
Bank of Commerce (1)                                                      2,587               7,667                        -
Umpqua (2)                                                                4,470               4,145                        -
Total impact of acquisition-related expense to noninterest
expense                                                                $  7,057          $   11,812          $             -


__________
(1) The Company completed the acquisition of Bank of Commerce on October 1,
2021. See   Note     3     of the Consolidated Financial Statements in "Item 1.
Financial Statements (unaudited)"   of this report for further information
regarding this transaction.
(2) Definitive merger agreement has been entered into; however, completion of
this transaction is pending as of the date of this filing.
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Comparison of the current quarter with the previous quarter

Noninterest expense was $105.1 million for the first quarter of 2022, an
increase of $2.4 million from $102.6 million for the prior quarter.
Acquisition-related expenses in the current quarter were $7.1 million compared
to $11.8 million for the prior quarter. Taking this into consideration, the
largest contributor to the increase in noninterest expense for the current
quarter is related to compensation and employee benefits that can be attributed
to higher 401k and payroll tax expenses, which are typically elevated in the
first quarter. The increase was also attributable to a $500 thousand provision
for unfunded loan commitments recorded in the current quarter compared to a $2.0
million recapture recorded in the prior quarter. Higher data processing and
software expenses partially offset by lower professional services expense were
also drivers of the current quarter increase.

Comparison of the current quarter with the period of the previous year

Noninterest expense was $105.1 million for the first quarter of 2022, an
increase of $21.5 million from $83.6 million for the prior year period. This
increase was mostly attributable to higher compensation and employee benefits
due to our acquisition of Bank of Commerce in the fourth quarter of 2021 and the
prior year period having substantial labor costs capitalized for PPP loan
originations. Increased acquisition-related expenses related to legal and
professional fees, occupancy and data processing and software also contributed
to the increase from the prior year period.

The provision for unfunded loan commitments for the periods indicated are as
follows:

                                                                              Three Months Ended
                                                                                 December 31,
                                                         March 31, 2022              2021              March 31, 2021

                                                                                (in thousands)
Provision for unfunded loan commitments                $           500          $     (2,000)         $        1,500


Income Taxes

We recorded an income tax provision of $15.6 million for the first quarter of
2022, compared to a provision of $13.1 million and $12.5 million for the three
months ended December 31, 2021 and March 31, 2021, respectively. The effective
tax rate was 21%, 23% and 19% for the three months ended March 31, 2022,
December 31, 2021 and March 31, 2021, respectively. For additional information,
please refer to the Company's Annual Report on Form 10-K for the year ended
December 31, 2021.

FINANCIAL CONDITION

Total assets were $20.96 billion at March 31, 2022, an increase of $18.6 million
from December 31, 2021. Cash and cash equivalents increased $147.8 million.
Loans increased $117.7 million during the first three months of 2022, which was
primarily the result of new loan production partially offset by loan payments.
Debt securities available for sale were $5.53 billion at March 31, 2022, a
decrease of $383.6 million from December 31, 2021 which was primarily due to
fair value movement. Total liabilities were $18.60 billion as of March 31, 2022,
an increase of $246.6 million from December 31, 2021 primarily due to an
increase in interest-bearing deposits.

Investment security

At March 31, 2022, the Company's investment portfolio primarily consisted of
debt securities available for sale totaling $5.53 billion compared to $5.91
billion at December 31, 2021 and debt securities held to maturity of $2.20
billion at March 31, 2022 compared to $2.15 billion at December 31, 2021. The
decrease in the debt securities available for sale from year-end is due to a
$338.7 million decline in unrealized gains, $221.7 million in maturities and
repayments, and $7.0 million in premium amortization, partially offset by $183.8
million in purchases. The increase in debt securities held to maturity from
year-end is due to purchases of $97.7 million, partially offset by $38.9 million
in maturities and repayments and $4.7 million in premium amortization. The
average duration of our debt securities available for sale was approximately 5
years and 1 month at March 31, 2022. The average duration of our debt securities
held to maturity was approximately 5 years and 9 months at March 31, 2022. These
durations take into account calls, where appropriate, and consensus prepayment
speeds.

The investment securities are used by the Company as a component of its balance
sheet management strategies. From time-to-time, securities may be sold to
reposition the portfolio in response to strategies developed by the Company's
asset liability management committee. In accordance with our investment
strategy, management monitors market conditions with a view to realize gains on
its available for sale securities portfolio when prudent.
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The Company performs a quarterly assessment to determine whether a decline in
fair value below amortized cost exists. Amortized cost includes adjustments made
to the cost of an investment for accretion, amortization, collection of cash and
previous credit losses recognized in earnings.

When the fair value of an available for sale debt security falls below the
amortized cost basis, it is evaluated to determine if any of the decline in
value is attributable to credit loss. Decreases in fair value attributable to
credit loss would be recorded directly to earnings with a corresponding
allowance for credit losses, limited by the amount that the fair value is less
than the amortized cost basis. If the credit quality subsequently improves, the
allowance would be reversed up to a maximum of the previously recorded credit
losses. If the Company intends to sell an impaired available for sale debt
security, or if it is more likely than not that the Company will be required to
sell the security prior to recovering the amortized cost basis, the entire fair
value adjustment would be immediately recognized in earnings with no
corresponding allowance for credit losses.

At March 31, 2022, the market value of debt securities available for sale had a
net unrealized loss of $325.8 million compared to a net unrealized gain of $13.0
million at December 31, 2021. The change in valuation was the result of
fluctuations in market interest rates during the three months ended March 31,
2022. At March 31, 2022, the Company had $4.68 billion of debt securities
available for sale with gross unrealized losses of $337.5 million; however, we
did not consider these investment securities to have an indicated credit loss.

All of the Company's debt securities held to maturity were issued by U.S.
government agencies or U.S. government-sponsored enterprises. These securities
carry the explicit and/or implicit guarantee of the U.S. government, are widely
recognized as "risk free," and have a long history of zero credit loss.
Therefore, the Company did not record an allowance for credit losses for these
securities as of March 31, 2022.

The following table sets forth our securities portfolio by type for the dates
indicated:

                                                                                                   December 31,
                                                                           March 31, 2022              2021

                                                                                      (in thousands)
Debt securities available for sale:
U.S. government agency and government-sponsored enterprise
mortgage-backed securities and collateralized mortgage obligations       $     3,407,654          $  3,745,601
Other asset-backed securities                                                    408,047               463,063
State and municipal securities                                                   938,965               997,291

WE titles of government agencies and government-sponsored companies

                                                                       239,274               252,576
U.S. government securities                                                       173,342               157,536
Non-agency collateralized mortgage securities                                    360,089               294,932
Total debt securities available for sale, at fair value                  $     5,527,371          $  5,910,999
Debt securities held to maturity:
U.S. government agency and government-sponsored enterprise
mortgage-backed securities and collateralized mortgage obligations       $  

2,202,437 $2,148,327

Total debt securities held to maturity, at amortized cost                $     2,202,437          $  2,148,327
Equity securities                                                                 13,425                13,425
Total investment securities                                              $  

7,743,233 $8,072,751

For more information on our investment portfolio and equity transactions, see note 4 to the consolidated financial statements under “Item 1. Financial statements (unaudited)” of this report.

Credit risk management

The extension of credit in the form of loans or other credit substitutes to
individuals and businesses is one of our principal business activities. Our
policies and applicable laws and regulations require risk analysis as well as
ongoing portfolio and credit management. We manage our credit risk through
lending limit constraints, credit review, approval policies and extensive,
ongoing internal monitoring. We also manage credit risk through diversification
of the loan portfolio by type of loan, type of industry and type of borrower and
by limiting the aggregation of debt to a single borrower.


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In analyzing our existing portfolio, we review our consumer and residential loan
portfolios by their performance as a pool of loans, since no single loan is
individually significant or judged by its risk rating, size or potential risk of
loss. In contrast, the monitoring process for the commercial business, real
estate construction and commercial real estate portfolios includes periodic
reviews of individual loans with risk ratings assigned to each loan and
performance judged on a loan-by-loan basis.

We review these loans to assess the ability of our borrowers to service all
interest and principal obligations and, as a result, the risk rating may be
adjusted accordingly. In the event that full collection of principal and
interest is not reasonably assured, the loan is appropriately downgraded and, if
warranted, placed on nonaccrual status even though the loan may be current as to
principal and interest payments. Additionally, we assess whether an individually
measured allowance is required for collateral dependent nonaccrual loans with
balances equal to or greater than $500,000 and with respect to which foreclosure
is probable. For the individually measured collateral dependent nonaccrual loan,
the allowance for credit losses is equal to the difference between amortized
cost of the loan and the determined value of the collateral. However, if the
determined value of the collateral is greater than the amortized cost of the
loan, no allowance for credit losses will be added for these loans.

For additional discussion on our methodology in managing credit risk within our
loan portfolio, see the   "Allowance for Credit Losses"   section in this
Management's Discussion and Analysis and Note 1 to the Consolidated Financial
Statements in "Item 8. Financial Statements and Supplementary Data" of the
Company's 2021 Annual Report on Form 10-K.

Loan policies, credit quality criteria, portfolio guidelines and other controls
are established under the guidance of our Chief Credit Officer and approved, as
appropriate, by the Board of Directors. Credit Administration, together with the
management loan committee, has the responsibility for administering the credit
approval process. As another part of its control process, we use an internal
credit review and examination function to provide reasonable assurance that
loans and commitments are made and maintained as prescribed by our credit
policies. Examinations are performed to ensure continued performance and proper
risk assessment.

Loan Portfolio Analysis

Our wholly-owned banking subsidiary State Bank of Colombia is a full-service commercial bank, which issues a wide variety of loans and focuses its lending efforts on providing commercial and commercial real estate loans.

The following table provides additional details related to the net premium (discount) of acquired and acquired loans:

                                                    March 31, 2022       December 31, 2021

                                                                (in thousands)
Acquisition:
Bank of Commerce                                   $        11,377      $           12,923
Pacific Continental                                         (4,773)                 (5,306)
All other purchased and acquired net premium                 5,082          

5,031

Total net premium at period end                    $        11,686      $   

12,648


Commercial Real Estate Loans: Commercial real estate loans are secured by
properties located within our primary market areas and typically, have
loan-to-value ratios of 80% or lower at origination. Our underwriting standards
for commercial and multifamily residential loans generally require that the
loan-to-value ratio for these loans not exceed 75% of appraised value, cost, or
discounted cash flow value, as appropriate, and that commercial properties
maintain debt coverage ratios (net operating income divided by annual debt
servicing) of 1.2 or better. However, underwriting standards can be influenced
by competition and other factors. We endeavor to maintain the highest practical
underwriting standards while balancing the need to remain competitive in our
lending practices.

Commercial Business Loans: Our commercial business lending is directed toward
meeting the credit and related deposit and treasury management needs of small to
medium sized businesses. Commercial and industrial loans are primarily
underwritten based on the identified cash flows of the borrower's operations and
secondarily on the underlying collateral provided by the borrower and/or the
strength of the guarantor. The majority of these loan provide financing for
working capital and capital expenditures. Loan terms, including, loan maturity,
fixed or adjustable interest rate and collateral considerations, are based on
factors such as the loan purpose, collateral type and industry and are
underwritten on an individual loan basis.
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Agriculture Loans: Agricultural lending includes agricultural real estate and
production loans and lines of credit within our primary market area. We are
committed to our Pacific Northwest communities offering seasonal and longer-term
loans and operating lines of credit by lending officers with expertise in the
agricultural communities we serve. Typical loan-to-value ratios on term loans
can range from 55% to 80% depending upon the type of loan. Operating lines of
credit require the borrower to provide a 20% to 25% equity investment. The debt
coverage ratio is generally 1.25 or better on all term loans.

Construction Loans: We originate a variety of real estate construction loans.
Underwriting guidelines for these loans vary by loan type but include
loan-to-value limits, term limits and loan advance limits, as applicable. Our
underwriting guidelines for commercial and multifamily residential real estate
construction loans generally require that the loan-to-value ratio not exceed 75%
and stabilized debt coverage ratios (net operating income divided by annual debt
service) of 1.2 or better. As noted above, underwriting standards can be
influenced by competition and other factors. However, we endeavor to maintain
the highest practical underwriting standards while balancing the need to remain
competitive in our lending practices.

One to Four Family Residential Loans: One to four family residential loans, including home equity loans and lines of credit, are secured by properties located in our primary market areas and generally have ratios loan-to-value of 80% or less at origination.

Other consumer loans: Consumer loans include automobile loans, boat and recreational vehicle financing and other miscellaneous personal loans.

Foreign Loans: The Company has no material foreign activities. Substantially all
of the Company's loans and unfunded commitments are geographically concentrated
in its service areas within the states of Washington, Oregon, Idaho and
California.

For additional information on our loan portfolio, including amounts pledged as
collateral on borrowings, see   Note 5 to the Consolidated Financial Statements
in "Item 1. Financial Statements (unaudited)"   of this report.

Provision for credit losses

The ACL is an accounting estimate of expected credit losses in our loan
portfolio at the balance sheet date. The provision for credit losses is the
expense recognized in the Consolidated Statements of Income to adjust the ACL to
the levels deemed appropriate by management, as measured by the Company's credit
loss estimation methodologies. The allowance for unfunded commitments and
letters of credit is maintained at a level believed by management to be
sufficient to absorb estimated expected losses related to these unfunded credit
facilities at the balance sheet date.

At March 31, 2022, our ACL was $146.9 million, or 1.37% of total loans
(excluding loans held for sale). This compares with an ACL of $155.6 million, or
1.46% of total loans (excluding loans held for sale) at December 31, 2021 and an
ACL of $148.3 million or 1.53% of total loans (excluding loans held for sale) at
March 31, 2021. The decrease from year end was primarily due to significant
improvement in portfolio risk ratings as well as the percentage of problem loans
to total loans reaching pre-pandemic levels. The ACL at March 31, 2022 does not
include a reserve for the PPP loans as they are fully guaranteed by the SBA.

For additional information on our allowances for credit losses and allowance for
unfunded commitments and letters of credit, as well as the credit quality of the
loan portfolio, see   Note 6 to the Consolidated Financial Statements in

“Item 1. Consolidated Financial Statements (Unaudited)” of this report.

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Liquidity and sources of funds

Our primary sources of funds are customer deposits. Additionally, we utilize
advances from the FHLB, borrowings from the FRB, sweep repurchase agreements,
subordinated debentures and junior subordinated debentures assumed in
acquisitions and a revolving line of credit to supplement our funding needs.
These funds, together with loan repayments, loan sales, retained earnings,
equity and other borrowed funds are used to make loans, to acquire securities,
meet deposit withdrawals and maturing liabilities, to acquire other assets and
to fund continuing operations.

In addition, we have a shelf registration statement on file with the SEC
registering an unspecified amount of any combination of debt or equity
securities, depository shares, purchase contracts, units and warrants in one or
more offerings. Specific information regarding the terms of and the securities
being offered will be provided at the time of any offering. Proceeds from any
future offerings are expected to be used for general corporate purposes,
including, but not limited to, the repayment of debt, repurchasing or redeeming
outstanding securities, working capital, funding future acquisitions or other
purposes identified at the time of any offering.

Deposit activities

Our deposit products include a wide variety of transaction accounts, savings
accounts and time deposit accounts. We have established a branch system to serve
our consumer and business depositors. Deposits increased $289.1 million from
December 31, 2021. Management's strategy for funding asset growth is to make use
of public funds and brokered and other wholesale deposits on an as-needed basis.
The Company participates in the CD Option of IntraFi Network Deposits program,
which is a network that allows participating banks to offer extended FDIC
deposit insurance coverage on time deposits. The Company also participates in a
similar program to offer extended FDIC deposit insurance coverage on money
market accounts. These extended deposit insurance programs are generally
available only to existing customers and are not used as a means of generating
additional liquidity. At March 31, 2022, brokered deposits, reciprocal money
market accounts and other wholesale deposits (excluding public funds) totaled
$1.11 billion, or 6.1% of total deposits, compared to $821.7 million or 4.6% at
year-end 2021. These deposits have varied maturities.

The following table sets forth the Company's deposit base by type of product for
the dates indicated:

                                                                       March 31, 2022                               December 31, 2021
                                                                                        % of                                            % of
                                                                Balance                Total                  Balance                  Total

                                                                                           (dollars in thousands)
Demand and other noninterest-bearing                        $   8,790,138                 48.1  %       $       8,856,714                 49.1  %
Money market                                                    3,501,723                 19.1  %               3,525,299                 19.6  %
Interest-bearing demand                                         2,103,053                 11.5  %               1,999,407                 11.1  %
Savings                                                         1,637,451                  8.9  %               1,617,546                  9.0  %
Interest-bearing public funds, other than
certificates of deposit                                           775,048                  4.2  %                 779,146                  4.3  %
Certificates of deposit, less than $250,000                       239,863                  1.3  %                 249,120                  1.4  %
Certificates of deposit, $250,000 or more                         145,372                  0.8  %                 160,490                  0.9  %

Certificates of deposit insured by the CD option of deposits from the IntraFi network

                                           32,608                  0.2  %                  35,611                  0.2  %

Reciprocal money market accounts                                1,073,405                  5.9  %                 786,046                  4.4  %
Subtotal                                                    $  18,298,661                100.0  %       $      18,009,379                100.0  %
Valuation adjustment resulting from acquisition
accounting                                                  $         552                               $             736
Total deposits                                              $  18,299,213                               $      18,010,115


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Loans

We rely on FHLB advances and FRB borrowings as another source of both short and
long-term funding. FHLB advances and FRB borrowings are secured by investment
securities and residential, commercial and commercial real estate loans. At
March 31, 2022 and December 31, 2021, we had FHLB advances of $7.3 million and
$7.4 million, respectively.

We also utilize wholesale and retail repurchase agreements to supplement our
funding sources. Our wholesale repurchase agreements are secured by
mortgage-backed securities. At March 31, 2022 and December 31, 2021, we had
deposit customer sweep-related repurchase agreements of $44.2 million and $86.0
million, respectively, which mature on a daily basis.

Subordinated debentures and junior subordinated debentures are another source of
funding. On October 1, 2021, with its acquisition of Bank of Commerce, the
Company assumed $10.0 million in aggregate principal amount of subordinated
debentures, which are unsecured, and mature on December 10, 2025. Also assumed
through the Bank of Commerce acquisition were $10.3 million of trust preferred
obligations which are redeemable at the Company's option on any March 15, June
15, September 15, or December 15.

The Company has a $15.0 million short-term credit facility with an unaffiliated
bank. This facility provides the Company additional liquidity, if needed, for
various corporate activities including the repurchase of shares of Columbia
Banking System, Inc. common stock. At both March 31, 2022 and December 31, 2021,
there was no balance associated with this credit facility. The credit agreement
requires the Company to comply with certain covenants including those related to
asset quality and capital levels. The Company was in compliance with all
covenants associated with this facility at March 31, 2022.

Management anticipates we will continue to rely on FHLB advances, FRB
borrowings, the short-term credit facility and wholesale and retail repurchase
agreements in the future. We will use those funds primarily to make loans and
purchase securities.

Contractual obligations, commitments and off-balance sheet arrangements

We are party to many contractual financial obligations, including repayments of
borrowings, operating and equipment lease payments, off-balance sheet
commitments to extend credit and investments in affordable housing partnerships.
At March 31, 2022, we had commitments to extend credit of $3.67 billion compared
to $3.54 billion at December 31, 2021.

Capital resources

Equity in March 31, 2022 been $2.36 billioncompared to $2.59 billion to December 31, 2021. Equity amounted to 11% and 12% of total assets at the end of the period March 31, 2022 and December 31, 2021respectively.

Regulatory capital

In July 2013, the federal bank regulators approved the Capital Rules (as
discussed in our 2021 Annual Report on Form 10-K, "Item 1. Business-Supervision
and Regulation and -Regulatory Capital Requirements"), which implement the Basel
III capital framework and various provisions of the Dodd-Frank Act, which were
fully phased in as of January 1, 2019. As of March 31, 2022, we and the Bank met
all capital adequacy requirements under the Capital Rules.

FDIC regulations set forth the qualifications necessary for a bank to be
classified as "well-capitalized," primarily for assignment of FDIC insurance
premium rates. Failure to qualify as "well-capitalized" can negatively impact a
bank's ability to expand and to engage in certain activities. The Company and
the Bank qualified as "well-capitalized" at March 31, 2022 and December 31,
2021.

As part of its response to the impact of COVID-19, the U.S. federal regulatory
agencies issued an interim final rule that provided the option to temporarily
delay certain effects of CECL on regulatory capital for two years, followed by a
three year transition period. The interim final rule allows bank holding
companies and banks to delay for two years 100% of the day one impact of
adopting CECL and 25% of the cumulative change in the reported allowance for
credit losses since adopting CECL. The Company elected to adopt the interim
final rule. As a result, certain capital ratios and amounts as of March 31,
2022 and December 31, 2021 have a reduced impact of the increased allowance for
credit losses related to the adoption of CECL.
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The following table presents the capital ratios and the capital conservation
buffer, as applicable, for the Company and its banking subsidiary as of the
dates presented below:

                                                              Company                                         Columbia Bank
                                              March 31, 2022         

December 31, 2021 March 31, 2022 December 31, 2021
CET1 risk-based capital ratio

                         12.88  %                  13.01  %                 12.94  %                  13.06  %
Tier 1 risk-based capital ratio                       12.88  %                  13.01  %                 12.94  %                  13.06  %
Total risk-based capital ratio                        14.00  %                  14.21  %                 13.99  %                  14.18  %
Leverage ratio                                         8.64  %                   8.55  %                  8.70  %                   8.60  %
Capital conservation buffer                            6.00  %                   6.21  %                  5.99  %                   6.18  %


Non-GAAP Financial Measures

The Company considers operating net interest margin (tax equivalent) to be a
useful measurement as it more closely reflects the ongoing operating performance
of the Company. Additionally, presentation of the operating net interest margin
allows readers to compare certain aspects of the Company's net interest margin
to other organizations that may not have had significant acquisitions. Despite
the usefulness of the operating net interest margin (tax equivalent) to the
Company, there is no standardized definition for it and, as a result, the
Company's calculations may not be comparable with other organizations. The
Company encourages readers to consider its Consolidated Financial Statements in
their entirety and not to rely on any single financial measure.

The following table reconciles the Company's calculation of the operating net
interest margin (tax equivalent) to the net interest margin (tax equivalent) for
the periods indicated:

                                                                                 Three Months Ended
                                                          March 31, 2022         December 31, 2021          March 31, 2021

                                                                               (dollars in thousands)
Operating net interest margin non-GAAP
reconciliation:
Net interest income (tax equivalent) (1)                 $     148,268          $         147,574          $     125,889
Adjustments to arrive at operating net interest
income (tax equivalent):
Incremental accretion income on acquired loans                     350                        (16)                (1,055)
Premium amortization on acquired securities                      1,031                      1,278                    520

Net operating interest income (tax equivalent) (1) $149,649

$148,836 $125,354

Average interest earning assets                          $  19,266,644          $      19,186,398          $  15,419,371
Net interest margin (tax equivalent) (1)                          3.12  %                    3.05  %                3.31  %
Operating net interest margin (tax equivalent) (1)                3.15  %                    3.08  %                3.30  %


__________

(1) Tax-exempt interest income has been adjusted to a tax equivalent basis. The
amount of such adjustment was an addition to net interest income of $2.1 million
for both the three months ended March 31, 2022 and December 31, 2021,
respectively, and $1.9 million for the three months ended March 31, 2021.
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About Ruben V. Albin

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