Columbia Bank, the banking subsidiary of Columbia Banking System, Inc. (Nasdaq: COLB), announced the pricing of $250 million in 6.721% Fixed-to-Fixed Rate Subordinated Notes due 2036, according to a press release statement.

The notes carry an initial fixed interest rate of 6.721% per annum, payable semi-annually, from the issuance date through September 18, 2031. After that date, the rate will reset to the Five-Year U.S. Treasury Rate plus 195 basis points, also payable semi-annually, through maturity or earlier redemption.

The offering is expected to close on September 18, 2026, subject to customary closing conditions. The notes are intended to qualify as Tier 2 regulatory capital for the bank.

Columbia Bank plans to use the net proceeds for general corporate purposes and to return up to $250 million of capital to its parent, Columbia Banking System. The parent company intends to use the returned capital to redeem certain outstanding trust preferred securities.

The notes are unsecured subordinated obligations, ranking below the bank's existing and future senior debt, including depositor claims and general creditor obligations. The notes are obligations of Columbia Bank only and are not guaranteed by Columbia Banking System.

The notes have not been registered under the Securities Act of 1933 and are being offered solely to institutional accredited investors under Section 3(a)(2) of that act. The notes are not deposits and are not insured by the Federal Deposit Insurance Corporation or any other government agency.