Columbia Banking Relocated Roles Amid Tax Hikes

The bank moved executive positions from Washington to Arizona, citing $8 million in annual tax increases.

Updated on Oct. 13, 2026 in Openings & Closings

Bold flat-color editorial illustration of a monolithic stone facade, representing the institutional gravity of corporate financial relocation. — Columbia Banking System shifted executive roles to Arizona this month, citing $8 million in annual tax increases within Washington state. AI Illustration. Upload story photo >

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Columbia Banking System has moved key executive roles from Washington to a new hub in Arizona. The shift comes as the firm faces rising state tax burdens following legislative changes effective October 2025.

Why it matters

The relocation highlights how rising state tax liabilities on services and payrolls are influencing corporate footprint decisions for regional financial institutions. Columbia officials cited an $8 million annual cost increase attributed to new Washington tax rates as the primary driver.

The bank faces a services business and occupation tax increase to 2.1 percent from 1.75 percent, alongside a financial institution surcharge rise to 1.5 percent. The company manages approximately $70 billion in assets across 350 locations, including 109 sites in Washington.

The players

Columbia Banking System

A regional financial institution with approximately $70 billion in assets operating over 350 locations.

Clint Stein

The CEO of Columbia Banking System who relocated from Auburn to Arizona to lead the executive transition.

The details

Executives moved from Tacoma to the Scottsdale area, where they currently operate from temporary facilities. Columbia Banking System plans to open a permanent 13,500-square-foot office at the end of October 2026, which may eventually accommodate up to 50 employees. The firm is navigating the impact of a 9.9 percent tax on individual income exceeding $1 million, which company leadership cited as a concern for future payroll taxation.

September 2025: Columbia completed the acquisition of Pacific Premier Bancorp.
October 1, 2025: Washington state tax legislation changes became effective.
October 2026: Columbia plans to open an office near Scottsdale.

Market Landscape

The relocation follows a pattern of firms adjusting administrative footprints to mitigate the impact of specific state tax legislative changes. This move aligns with the company's broader expansion efforts, which included the acquisition of Pacific Premier Bancorp in 2025.

Operators in Washington should monitor their specific business tax classifications following the recent rate hikes for services and financial firms. Businesses with high-earning executive compensation structures may need to consult with tax counsel regarding the potential impact of the state’s income tax on earnings over $1 million.

The takeaway

The firm’s move demonstrates how tax policy changes can trigger rapid re-evaluations of administrative, non-customer-facing site locations. Review your current tax liabilities against new state schedules to determine if your operational footprint aligns with the current cost of doing business in your jurisdiction.