Columbia Banking System (COLB)

Risks

• A failure in or breach of our operational or security systems, or those of our third party service providers, including as a result of cyber-attacks, could disrupt our business, result in unintentional disclosure or misuse of confidential or proprietary information, damage our reputation, increase our costs and cause losses.
• Acquisitions 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.
• Regulatory approvals may not be received, may take longer than expected, or may impose conditions that are not presently anticipated or that could have an adverse effect on the combined company following the proposed merger with Umpqua.
• Failure to complete the proposed merger with Umpqua could negatively impact Columbia.
• Combining Columbia and Umpqua may be more difficult, costly or time-consuming than expected, and Columbia may fail to realize the anticipated benefits of the merger.
• The combined company may be unable to retain Columbia and/or Umpqua personnel successfully after the merger is completed.
• Columbia will be subject to business uncertainties and contractual restrictions while the merger with Umpqua is pending.
• Shareholder litigation related to the merger with Umpqua could prevent or delay the completion of the merger, result in the payment of damages or otherwise negatively impact the business and operations of Columbia.
• The merger agreement between the Company and Umpqua may be terminated in accordance with its terms and the merger may not be completed.
• Our assumptions regarding the fair value of assets acquired could be inaccurate, which could materially and adversely affect our business, financial condition, results of operations, and future prospects.
• If the goodwill we have recorded in connection with acquisitions becomes impaired, it could have a material adverse impact on our earnings and shareholders’ equity.
• We may not be able to attract or retain key employees.
• Our 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.
• Significant 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.
• We are subject to a variety of operational risks, including reputational risk, legal risk and compliance risk, and the risk of fraud or theft by employees or outsiders, which may adversely affect our business and results of operations.
• We face reputation and business risks due to our interactions with business partners, service providers and other third parties.
• Failure to maintain effective internal control over financial reporting or disclosure controls and procedures may adversely affect our business and results of operations.
• Economic 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 deposits.
• Concentrations within our loan portfolio could result in increased credit risk in a challenging economy.
• A large percentage of our loan portfolio is secured by real estate, in particular commercial real estate. Deterioration in the real estate market or other segments of our loan portfolio would lead to additional losses.
• Our allowance may not be adequate to cover future loan losses, which could adversely affect earnings.
• Nonperforming assets take significant time to resolve and could adversely affect our results of operations and financial condition.
• Fluctuating interest rates could adversely affect our business.
• Interest rates on certain of our outstanding financial instruments are subject to change based on regulatory developments, which could adversely affect our revenue, expenses and the value of those financial instruments.
• Our business depends on our ability to successfully manage credit risk.
• We may be required, in the future, to recognize a credit loss with respect to investment securities.
• We are exposed to the risk of environmental liabilities in connection with real properties acquired.
• Our 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.
• Conditions in the financial markets may limit access to additional funding to meet liquidity needs.
• We 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.
• Changes in accounting standards could materially impact our financial statements.
• National and global economic and other conditions could adversely affect our future results of operations or market price of our stock.
• Climate change concerns could adversely affect our business, affect client activity levels and damage our reputation.
• Our business is subject to the risks of earthquakes, tsunamis, floods, fires and other natural catastrophic events.
• There can be no assurance as to the level of dividends we may pay on our common stock.
• We rely on dividends and other payments from our bank for substantially all of our revenue.
• We have various anti-takeover measures that could impede a takeover.