The notes carry an initial fixed interest rate of 6.721% per annum, payable semi-annually until September 18, 2031. Following this initial period, the rate will reset based on the Five-Year U.S. Treasury Rate plus a spread of 195 basis points. These securities are intended to qualify as Tier 2 capital, providing the bank with additional flexibility in its balance sheet management.

Proceeds from the transaction are earmarked for general corporate purposes and capital optimization. Specifically, the bank plans to return up to $250 million to its parent company, Columbia Banking System, Inc., which intends to utilize those funds to redeem outstanding trust preferred securities. As unsecured, subordinated obligations, the notes remain subordinate to senior debt and depositor claims, and they are not insured by the Federal Deposit Insurance Corporation.