Columbia Banking System Announces $250 Million Subordinated Note Offering
News related to:Columbia Banking System, Inc · 1 min read
TACOMA, Wash., Sept. 14, 2026 /CourierPR/ -- Columbia Banking System, Inc., the parent company of Columbia Bank, has announced the successful pricing of a $250 million subordinated note offering. The notes, with an initial fixed interest rate of 6.721% per annum, are set to mature in 2036. The fixed rate will apply until September 18, 2031, after which the interest rate will adjust to the Five-Year U.S. Treasury Rate plus 195 basis points.
The notes are intended to qualify as Tier 2 capital for regulatory purposes, enhancing the bank's capital adequacy. Columbia Bank plans to use the net proceeds from the offering for general corporate purposes, including supporting growth and maintaining capital adequacy. Additionally, Columbia intends to use the returned capital to redeem certain of its outstanding trust preferred securities.
Columbia Bank, headquartered in Tacoma, Washington, is a regional bank with a presence in Arizona, California, Colorado, Idaho, Nevada, Oregon, Texas, Utah, and Washington. The bank offers a range of services, including retail and commercial banking, Small Business Administration lending, institutional and corporate banking, and equipment leasing. Customers also have access to comprehensive investment and wealth management, healthcare, and private banking through Columbia Wealth Management.
The offering is expected to close on September 18, 2026, subject to customary closing conditions. The notes will be unsecured, subordinated obligations, ranking behind all senior debt in the event of bankruptcy. The notes are not insured by the Federal Deposit Insurance Corporation and are being offered to institutional accredited investors.
Columbia Banking System, Inc., through its wholly-owned subsidiary, Columbia Bank, is leveraging this capital-raising initiative to support its strategic initiatives and return capital to its shareholders. The move is part of the bank's ongoing efforts to strengthen its capital structure and support its growth plans in the region.