Form 4: Columbia Banking System Executive Namdar Frank Reports Acquisition of Restricted Stock Units

Frank Namdar, Chief Credit Officer of Columbia Banking System, reports the acquisition of restricted stock units and performance restricted stock units on February 25, 2025.

Summary

• On February 25, 2025, Frank Namdar, Chief Credit Officer of Columbia Banking System, acquired restricted stock units and performance restricted stock units.
• The restricted stock units vest 33.33% per year over three years.
• The performance restricted stock units vest approximately three years following the grant date based on the issuer's relative total shareholder return performance for fiscal years 2025-2027 compared to a Compensation Committee approved group of peers.
• Additional performance restricted stock units vest approximately three years following the grant date based on the issuer's relative return on tangible common equity for fiscal years 2025-2027 compared to a Compensation Committee approved group of peers.
• Namdar also holds deferred compensation phantom stock accrued under the company's deferred compensation plan, payable in cash after the end of their employment.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive as it reflects standard executive compensation practices and aligns executive interests with company performance. There are no indications of negative events or concerns.

Positives

• The vesting of restricted stock units and performance restricted stock units aligns the executive's interests with the long-term performance of the company.

Risks

• The value of the restricted stock units is subject to the performance of Columbia Banking System's stock price.
• The vesting of performance restricted stock units is contingent on the company's performance relative to its peers.

Future Outlook

The restricted stock units will vest 33.33% per year over three years, and the performance restricted stock units will vest approximately three years following the grant date based on the company's performance relative to its peers.

Industry Context

This filing is a routine disclosure of executive compensation in the form of stock-based awards, which is a common practice in the banking industry to incentivize and retain key personnel.

Comparison to Industry Standards

• Stock-based compensation is a common practice among publicly traded companies, including banks like Columbia Banking System.
• The vesting schedules and performance metrics used for the restricted stock units are typical for executive compensation packages in the financial services industry.
• Companies like KeyCorp, Umpqua Holdings, and First Interstate Bancorp also utilize similar equity-based compensation plans for their executives.

Stakeholder Impact

• Shareholders may view the stock grants as a positive sign, aligning executive interests with long-term company performance.
• Employees may see the grants as a sign of the company's commitment to its executives.

Key Dates