Columbia State BankDeposit Account Agreement

You’ll notice the difference.

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Table of Contents

Deposit Account AgreementYour Agreement with Us ............................ 4

Who Are We ........................................... 4

Definitions .............................................. 4

General Terms of Your AccountImportant Information about Procedures for Opening a New Account ....................... 4

Conditions of Your Deposit ........................ 5

Statement of Your Account ........................ 5

Costs, Service and Maintenance Charges .... 6

Order in Which Items are Paid.................... 6

Overdraft Service Policy ............................ 7

Offset ..................................................... 7

Security Interest ....................................... 7

Magnetically Encoded Account Numbers ..... 8

Signatures & Authorizations ....................... 8

Appointment of Attorney in Fact ................. 9

Payment and Computation of Interest .......... 9

Closing Accounts ..................................... 9

Notice of Withdrawals ............................... 9

Withdrawals ............................................ 9

Wire Transfers ....................................... 10

Foreign Transactions ............................... 10

Telephone Monitoring ............................. 10

Cashing Checks for Non-Deposit Accounts ............................ 11

Banking Hours ...................................... 11

Night Depository .................................... 11

Endorsement Policies ............................. 11

Legal Process ....................................... 11

Adverse Claims ..................................... 11

Transfer of Ownership ............................. 12

Account Ownership TypesSingle Account ...................................... 12

Joint Account With Right of Survivorship .... 12

Joint Account Without Right of Survivorship .............................. 12

All Joint Accounts With or Without Right of Survivorship ................... 12

Trust or P.O.D. Account ........................... 12

Uniform Transfers to Minors Account ......... 13

Agency Account .................................... 13

Corporation, Partnership, Limited Liability Company, Limited Liability Partnership, Fiduciary or Unincorporated Association Accounts .............................................. 13

Non-Probate Assets ............................... 13

Savings AccountsWithdrawals Limitations........................... 14

Checking AccountsStop Payment Requests.......................... 14

Post-Dated Checks ................................ 15

Stale-Dated Checks ............................... 15

Restrictive Legends ................................ 15

Re-Presented Checks ............................ 15

Pencil Checks ....................................... 15

Pre-Authorized Items .............................. 15

Customer’s Death or Incompetence .......... 15

Fraudulent Activity .................................. 16

Substitute Checks and Your Rights ........... 16

Time Deposit Accounts ........................... 17

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ATM/Debit CardsATM Fees ............................................. 17

Termination ........................................... 17

Other Agreements .................................. 18

Security ................................................ 18

Inactive or Abandoned Deposit AccountsInactive Account Charges ........................ 18

Abandoned Checking and Savings Accounts ............................ 18

Payment of Interest Will Cease ................. 18

Balance Forwarded to the State ............... 19

Funds Availability PolicyPolicy ................................................... 19

Longer Delays May Apply........................ 19

Special Rules for New Accounts ............... 19

Electronic Funds Transfer Agreement and DisclosureTransfers .............................................. 20

Purchases and Other POS Transactions ..... 20

Direct Deposit ....................................... 21

Electronic Check Conversion ................... 21

Limitations of Frequency and Dollar Amount of Transactions .................. 21

Deposits, Withdrawals, POS Purchases, and Online Bill Payments ......................... 21

ATM Deposits ....................................... 22

Direct Deposits ...................................... 22

Telephone and Online Access .................. 22

Fees .................................................... 22

Right to Receive DocumentationTerminal Transactions ............................. 22

Pre-Authorized Deposits ......................... 22

Periodic Statement ................................. 23

Pre-Authorized Payments ....................... 23

Consumer Liability ................................. 23

Business Days ....................................... 24

Error ResolutionNotice .................................................. 24

Our Liability for Failure to Make Transfers ... 25

Disclosure of Account Information to Third Parties ...................................... 25

Other Terms and ConditionsAmendments ........................................ 26

No Waiver of Agreement ......................... 26

Your Waiver of Notice ............................. 26

Assignments ......................................... 26

Limit of Our Liability ............................... 26

Disputes Involving Your Account ............... 26

Arbitration ............................................. 26

Governing Law ...................................... 26

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DEPOSIT ACCOUNT AGREEMENT

Your Agreement with UsWelcome! Thank you for opening an account with us! This Deposit Account Agreement (“Agreement”) provides the general rules that apply to deposits and accounts with us. You and we agree to this Agreement when you sign a signature card or deposit contract for your account or when you make a deposit. The terms of your agreement with us include the terms contained in this Agreement and the terms of any additional agreements applicable to certain bank services and/or certain types of accounts we offer. Our relationship with you is also governed by the laws of the States in which we operate and the federal laws of the United States. If there is a conflict between any term of this Agreement and any of those laws, the conflicting term will be deemed to be severed from this Agreement, and the remaining terms will be enforced as written.

Who We AreWe are Columbia State Bank, a Washington chartered commercial bank. We are owned by Columbia Banking System, Inc. We also operate under one or more trade names including Columbia Bank and Bank of Astoria. When you bank with either Columbia Bank or Bank of Astoria, you are banking with Columbia State Bank. Deposits made with Columbia Bank or Bank of Astoria are not insured separately by the FDIC.

DefinitionsThe words “you” and “your” mean, for individuals, including sole proprietorships and fiduciaries, the person or persons authorized to sign on the account, and for partnerships, corporations, limited liability companies, limited liability partnerships, fiduciary accounts, unincorporated associations, and Native American Tribes, the entity in whose name the account is carried. The words “bank,” “we,” “us,” “our,” “Columbia Bank” and “Bank of Astoria” mean Columbia State Bank.

General Terms of Your Account

Important Information about Procedures for Opening a New AccountTo help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.

What this means to you: When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents. Also, federal law and our policies require that we obtain your social security or tax identification number when you open or maintain an account with us.

Even if you have been a customer with us for some time, we may still ask you for this information and documentation because we may not have done so in the past. By requesting to open an account with us, or by agreeing to be a signer on an account or obtaining any other service from us, you (and, if acting in a representative capacity, individually and for such entity) agree that we may obtain credit information from check or credit reporting agencies, and/or by any other means. We may do so at the time you open the account, at any time while your account is open, or after

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your account is closed if you owe us any amounts related to your account. If you do not handle your account in a satisfactory manner and/or it is necessary to charge off your account as a loss, we will report such negative information to check or credit reporting agencies.

Conditions of Your DepositIn receiving checks or other items for deposit or collection, we act only as your collecting agent and assume no responsibility beyond the exercise of ordinary care. Our verification of the accuracy of any deposit slip may be limited to adjustments in an amount established by us. Applicable law will govern the handling, collecting and holding of the items. We may refuse to accept or pay any item, which we believe has been altered or amended in any manner.

If you deposit a check, draft, or any item other than cash, we have the right to clear it, that is, get paid by the bank it is drawn on before we make the money available to you. When the money will be available to you will vary, depending upon the location of the bank on which the item is drawn (see Funds Availability Policy).

If any item credited to your account is returned to us unpaid, we will send you a notice and charge the item back to your account. If there is not enough money in your account to cover the item, we may retain the item until you refund the amount of the difference to us. A charge back fee may also be charged to your account. The applicable fee is reflected in the Services & Fees Schedule. If an item is returned to us unpaid because of insufficient funds, we may, at our discretion and without notice to you, resubmit the item to the bank it is drawn on in order to collect the funds. A charge back fee may also be charged to your account. The applicable fee is reflected in the Services & Fees Schedule. Sending the item again to the original bank will not affect our right to charge your account for the amount of the item plus a charge back fee in the event the item is again returned to us unpaid.

Statement of Your AccountA statement of your account will be periodically prepared for you. You agree that each statement is considered to be made available to you from the moment the information that will appear in the statement is accessible by you, regardless of when it is sent or retrieved by you. For joint accounts, you agree that any statement made available to one joint owner or signer is deemed to have been made available to all joint owners or signers. Unless you ask otherwise, all statements, documents or notices relating to your account will be mailed to your last address on file with us and will be considered delivered 3 days after mailing. You assume all responsibility for keeping your mailing address current with us and for all loss or miscarriage in the mails. If you ask to pick up your statement, it will be considered delivered when ready and may be mailed if you have not picked it up within one month of when it was ready.

When you choose to receive your checking account statement electronically though Online Banking, we will stop sending you paper versions. When you choose to receive electronic statements, we will e-mail each signer who has requested an electronic statement when a new statement is available online. You are responsible for notifying us if you change your e-mail address. If we do not have a valid e-mail address for you, we cannot notify you about new statements and notices and will have to switch you back to U. S. Mail.

You should examine the statement of your account and related items as soon as they are available to you. You should compare the entries in your checkbook register with your statement.

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You should do this regardless of whether you receive your checks back or not. Copies of your cancelled checks are available upon request, and we may charge you for such a request. Refer to the Services & Fees Schedule for the applicable fee.

If you believe there has been an error on your statement, or if a check contains an unauthorized or forged signature, an alteration, or an unauthorized endorsement, you should report this to us immediately. In the case of an unauthorized or forged signature, an alteration or an unauthorized endorsement, you agree that “report” means to inform us in writing by delivery of an Affidavit of Forgery or other written notice to the branch at which your account is kept. The notice must include the check number, date and amount of each check or item in question. If you do not contact us regarding such discrepancies in writing within a reasonable time period not to exceed 30 days of the date the statement was made available to you, you cannot make any claim against us for any such unauthorized or forged signature, alteration, or endorsement. The time periods will begin to run from the time your statement and related items are considered made available to you. We will have no liability for any unauthorized facsimile signature, or for failure to discover a forgery, counterfeit check or alteration that a reasonable person could not discover.

Costs, Service and Maintenance ChargesWe may charge you, and you agree to pay us service and maintenance charges on your account, whether the account is active or inactive. Along with this agreement you received a Checking & Savings Plan brochure and Services & Fees Schedule which are part of this agreement. The brochure and schedule are also available at your branch. The maintenance charges and service fees may be changed by us at any time. We will give you prior notice of the changes if we are required to do so under applicable law. Your continued use of your account following any changes will constitute your agreement to these changes.

We may deduct, without notice, from your account any service maintenance, or other charges, all costs, expenses, and fees (including reasonable attorneys’ fees) which we incur on your behalf as a result of your account or otherwise. We will not be liable for dishonoring your checks, transfers, or other withdrawal requests because we made the above deductions from your account.

You agree to indemnify us, our affiliates, and the directors, officers and employees of us and our affiliates, against all losses, costs, attorneys’ fees and any other liabilities that we incur by reason of responding to any legal action involving you or your accounts, regardless of the manner of such response, which manner is solely within our discretion. As a part of that indemnity, if we incur liability to a creditor of yours as a result of our response or failure to respond to a legal action, you agree to pay to us on demand the amount of our liability to your creditor and to reimburse us for any expense, attorneys’ fees or other costs we may incur in collecting that amount from you. We will only be liable for willful violations of any duty to you which may arise by reason of the legal action.

Order in Which Items are PaidWe pay items on your account each day in the following processing order: Lobby checks, Point of Sale transactions, ATM transactions, Automatic Clearing House (ACH) transactions and then checks you’ve written, smallest dollar amount first.

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Overdraft Service PolicyIf an item overdraws your account, we can either pay the item or refuse to pay it. If we receive more than one item and your account is overdrawn, we may pay or refuse any or all of the items, in any order if we choose. If we, in our sole discretion, decide to pay the overdraft, you agree to pay us, on demand, the amount of the overdraft, together with the applicable overdraft fee. The fee is referenced in the Services & Fees Schedule brochure. You understand that we reserve the right to impose overdraft fees and to apply any later deposits (including direct deposit of Social Security or other government benefits) to those overdrafts or overdraft fees, by way of offset.

If your account is linked to a Personal Reserve Account (PRA) or a Business Reserve Line (BRL), the terms and conditions apply to overdrafts of your account regardless of whether they result from the use of checks, your VISA® Debit, or ATM Card, or an online banking transaction. If you are a joint account depositor, you agree to pay us for any overdrafts made by you or any other joint depositor, regardless of whether you caused or benefitted from the overdraft.

As a service to customers in good standing and to help avoid the significant fees that may be charged by third parties for returned checks, we strive to pay customers’ overdrafts based upon the following criteria:

• age of account• deposit balances• overdraft activity• deposit regularity• account standing relating to any legal or administrative order or levy• status of loan obligations with the Bank

We offer overdraft coverage as a customer service, and we are under no obligation to pay items when your account has non-sufficient funds (NSF), even if previous NSF transactions were paid. Items that cause overdrafts may include pre authorized debits, Point of Sale (POS) transactions, telephone transfers, online bill payments, internet banking transactions, lobby withdrawals as well as checks. An overdraft fee may be imposed for covering overdrafts caused by any such items, as well as on items that are returned unpaid. The fee is listed in the Services & Fees Schedule brochure.

OffsetExcept as limited by law, we have the right to offset amounts you owe us against your accounts with us. You give us the right, without demand or prior notice, to apply all or part of the money in your accounts with us, including, unless expressly prohibited by law, joint accounts, against any debt any one or more of you owe us now or in the future. Such a debt may include your obligations under a loan or guaranty, and any fees you owe us. Our right of offset is in addition to, but subordinate to, any security interest that we may have in your account.

Security InterestYou grant to us a security interest in all your accounts with us, to secure any amount you owe us, now or in the future. We may enforce our security interest without demand or prior notice to you. We will not be liable to you if enforcing our security interest against your account(s) leaves insufficient funds to cover outstanding items or other obligations or results in an overdraft. You

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agree to hold us harmless from any claim arising as the result of our security interest in, or enforcement of our security interest against your account. You promise that you will not pledge a security interest in your account to any third party without our prior written consent. Any pledge of your account to a third party remains subject to our security interest and right of offset.

Magnetically Encoded Account NumbersYou are assigned an account number to be used on all deposit and withdrawal forms. We assume no responsibility for any loss, damage or any inconvenience caused by your use of a deposit or withdrawal form other than a form magnetically encoded with your account number and obtained through us or from a reputable Printer who has received our printing specifications. If you choose to have your checks printed by a company other than our check supplier, we may at any time refuse to pay your checks and/or charge your account additional processing fees if your checks do not meet industry standard specifications.

Signatures - AuthorizationsAny signature appearing upon the signature card for your account authorizes the signer to access the account and conduct any transaction or business relating to your account, subject to any limitations noted on that card. We may allow any signer, including a signer on a joint account, to add authorized signers to an account; however, we have the right to require the signature of all signers to make the change. Only under special circumstances and subject to prior approval by us, may a signer remove another signer from an account. No change in authorized signers is effective until we have received written notice of the change and have had adequate time to approve and act on it. You agree that we may treat any signature on a check or other item drawn on your account as authorized, regardless of whether the signer is designated as an authorized signer on a signature card, if the signer has actual, implied or apparent authority to act on your behalf. We may act on any signature we believe in good faith is authorized, and we will not be liable for our actions in doing so except to the extent required by law.

If you voluntarily give information about your account (such as our routing number and your account number) to a party that is seeking to sell you goods or services, any debit to your account initiated by the party to whom you gave your information is deemed authorized, even if you gave the information in error.

You recognize that we have adopted automated collection and payment procedures so that we can process the greatest volume of items at the lowest possible cost to our customers. In light of this, you agree that we do not fail to exercise ordinary care in paying an item solely because our procedures do not provide for the sight examination of items with a face amount below an amount specified by us from time to time. You authorize us to store and use signature card information in any reasonable form we deem necessary, including any digitized signature capture process.

If you use a facsimile signature or other form of mechanically reproduced signature (such as, but not limited to, desktop publishing, digitized, or computer software generated signature), you agree you will have the sole responsibility for maintaining security of the facsimile or mechanically reproduced signature and the device by which the facsimile or mechanically reproduced signature is affixed. You will bear the entire risk for unauthorized use of the signature or device whether or not you are negligent. You agree that no facsimile or mechanically reproduced signature we have been authorized to honor may be considered

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a forgery or an unauthorized signature, but that such facsimile or mechanically reproduced signature will be effective as your signature or endorsement whether or not you have been negligent. You further agree to indemnify and hold us harmless from and against any and all loss, costs, damage, liability, or exposure (including reasonable attorney’s fees) we or you may suffer or incur as a result of the unlawful use, unauthorized use, or misuse by any person of any such facsimile or mechanically reproduced signature or the device by which it is affixed. If you use any form of facsimile or mechanically reproduced signature device, you agree to deliver a sample to us if we request it.

Appointment of Attorney in FactIn any account, if joint depositors are involved, each depositor appoints the other or each of the others as his or her attorney in fact to endorse all instruments to be deposited, to make deposits and withdrawals and to stop payment of checks against the account. It is the intent of each joint depositor that the authority conferred on the other or others can be exercised notwithstanding the depositor’s disability or incapacity or any uncertainty as to whether or not he or she is living.

Payment and Computation of InterestWe may pay interest on savings accounts and checking accounts to the extent permitted by applicable law, in accordance with the terms of your account. We will compute and credit interest at the rate, at the time and on the terms and conditions prescribed by us. We may change rates, times and terms at any time without actual notice to you, except as required by law. You acknowledge that we provided you information about current rates of interest, annual percentage yield and the manner of computation along with this Agreement. You may also request such information at any of our branches.

Closing AccountsWe may refuse to open any account and may close your account at any time and for any reason or no reason at all. If you close your account, you will still be responsible for any items drawn on the account, even if we have not yet received those items. If you close an interest bearing account before accrued interest is credited, the accrued interest will be forfeited.

Notice of WithdrawalsWe intend to let you withdraw your money whenever you wish. Because of federal banking law, however, we have to reserve the right to require written notice of intention to withdraw funds from your savings or interest checking account at least 7days before withdrawal. If you do not withdraw funds within 5 days after the notice period, a new notice period may be required.

WithdrawalsWe may require that your withdrawal orders be written in ink. Withdrawals may be made, subject to the limitations below, only through payment to you or as follows:

• To a person having your legal power of attorney or other authorization, such as an automated clearing house authorization, to make such withdrawal,

• To any person, including us, who has extended credit to you secured by your deposit, where such payment is made so that the creditor can rely upon such security,

• According to a court order,

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• Upon your death or incapacity to any person legally authorized to receive your deposit, • Upon your authorization in a form acceptable to us, to any person willing to receive such

payment, or• According to a separate agreement with us, by an automated teller machine, telephone

transaction, point of sale terminal, Internet payment, debit card or other access device offered by us.

Interest may be paid to a third person according to written instructions or assignment by you, accepted by us, and placed on file.

Wire TransfersWire transfers are subject to the Wire Transfer Agreement, a copy of which is available at any branch. We have no obligation to accept incoming wire transfers for your benefit. All credits for a wire transfer are provisional until we receive final payment for the amount of the wire transfer. If we do not receive final payment for the wire, the transferee agrees to pay us upon demand the full amount of the transfer. We will notify you of our receipt of a funds transfer payment to an account of yours before midnight on the business day after the funds are received. Notice may be by first class mail or other reasonable means. If you request a telephone advice, and we agree to comply with such request, you will designate on a Wire Transfer Authorization or other form acceptable to us a person to be contacted. We are not required to make more than one attempt to reach your place of business by telephone. If we are able to reach your place of business but not the contact person, we may leave a message containing the information to be conveyed. If you request a fax or e-mail advice, and we agree to comply with such request, you agree to exercise care in maintaining your own security in the receipt by fax or e-mail advice of wire transfers. You acknowledge that you alone assume full responsibility for maintenance of your internal security procedures to keep your information confidential. You agree to indemnify, defend and hold us harmless against all claims, demands, losses, liabilities, costs and expenses (including attorney’s fees) incurred by us arising out of or relating to our transmission of advice of incoming wires in a manner or medium you have authorized. You agree that we are not required to provide any other notice to you.

Foreign TransactionsTransactions must be in U.S. Dollars. If you use an automated teller machine (ATM) or conduct a point-of-sale (POS) transaction or electronic fund transfer in a foreign country, or write a check in a foreign currency, and we choose at our option to process the transaction, we will charge the item against your account at the foreign currency exchange rate imposed on us when we receive the item. If you receive a credit or deposit a check or electronic fund transfer to your account in foreign currency, we may at our option, reject, accept or accept on a collection basis and, if accepted, credit your account at the foreign currency exchange rate imposed on us on the day of the credit or deposit. This exchange rate may be different from the exchange rate in effect on the day you made or accepted the debit, credit, or check transaction and a transaction fee may be charged. If any debit or credit is reversed for any reason we will reverse the transaction at the foreign exchange rate imposed on us on the date of the reversal.

Telephone MonitoringWe may randomly monitor customer service telephone conversations to ensure that you receive courteous and efficient service. You give us your consent to do so. When you call us you agree

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that your call may be monitored without further notice to you. We usually do not record telephone calls without notice.

Cashing Checks for Non-Deposit AccountIf you issue a check to someone who does not have a Columbia State Bank deposit account relationship (checking, savings or time deposit account) and that person wants to cash the check in a Columbia State Bank branch we may require identification satisfactory to us and a fingerprint before cashing the check. If the non-customer refuses to provide their fingerprint we may refuse to cash the check. We have no liability to you or the non-customer for refusing to cash the check.

Banking HoursBanking hours are posted in the lobby of each of our branches. We may treat any items received or any business transacted, whether at a banking office, through an automated teller machine or otherwise as posted at the facility, or on Saturday, Sunday, bank or legal holidays, as having occurred on our next business day.

Night DepositoryYou assume any and all risk arising out of the use of any night depository facility. You agree that we are not responsible for any loss or damage that results from a mechanical defect, act of God, or malfunction with respect to the facility itself, lock bags or any other receptacle used by you, unless such damage or loss is caused by our gross negligence or deliberate malfeasance. You further agree that we will not be responsible for any loss or personal or pecuniary injury occasioned by the use of the night deposit facility resulting from unlawful acts of other persons, including, but not limited to assault, theft, vandalism or malicious mischief.

Endorsement PoliciesYou must endorse all checks within 1½ inches from the trailing edge on the back of the check. Other notations, such as identification information, must also be restricted to that area. The rest of the check must be reserved for bank endorsements. You may be liable for any costs that result from late return of the check if your endorsement is outside the allowed area and thereby delays or prevents the return of the item. You may also be liable if checks you issue have a carbon band or printing on the back which interferes with bank endorsements and causes delays in returning the check.

Legal ProcessWe are authorized to comply with any process, summons, order, injunction, execution, distraint, levy, lien or notice of any kind (collectively, “Process”) received by or served on us which in our opinion affects any of your accounts. We may, in our discretion and without liability to you, do any or all of the following: refuse to honor orders or pay or withdraw sums from any of your accounts, hold the balance of any affected account until Process is disposed to our satisfaction, pay the balance over to the source of the Process, or take any other action allowed by applicable law.

Adverse ClaimsIf we receive notice of any actual or potential adverse claim to your account we may in our discretion and without liability refuse to payout any money from your account for a reasonable time period. We may also exercise any other right available to us.

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Transfer of OwnershipYour account is not transferable except on our books and records. If you would like to transfer ownership of your account we may require that the account be closed and a new account be opened.

Account Ownership Types

Single AccountA single account is an account in the name of one depositor only and all funds are presumed to belong to that depositor.

Joint Account With Right of SurvivorshipA Joint Account With Right of Survivorship is an account in the name of two or more depositors. Each depositor has an equal right to deposit or withdraw from such an account whether or not any of the depositors are deceased or incompetent. Subject to the rules on “Non-Probate Assets”, generally described below, upon the death of a depositor the funds become the property of the surviving depositor(s) and are not subject to the decedent’s will. If there is more than one surviving depositor, the rights of survivorship will continue between the surviving depositors. Payment of such remaining funds may be made to anyone or more of the surviving depositor(s).

Joint Account Without Right of SurvivorshipA Joint Account Without Right of Survivorship is an account in the name of two or more depositors. Each depositor has an equal right to deposit or withdraw from such an account, whether or not any of the depositors are deceased or incompetent. This type of account does not provide that the funds of a deceased depositor become the property of the surviving depositor(s). If we agree to set up an account as a “Tenancy in Common,” that account will be treated as a Joint Account Without Right of Survivorship.

All Joint Accounts With or Without Right of SurvivorshipEach joint depositor appoints the other as his or her authorized agent for all purposes relating to this account including but not limited to endorsement of items for deposit, stopping payment, making deposits, making withdrawals, closing the account, allowing the Bank to offset the account, or overdrawing the account. We may pay funds on deposit in this type of account to any one or more depositors without regard to the actual ownership of the funds. We may deduct and offset from your joint account the amount of any claim we may hold against any joint depositor, even if the other joint depositors are not obligated to the Bank on that claim.

Trust or P.O.D. AccountA Trust Payable on Death (P.O.D.) account is an account payable on request to an individual depositor during the depositor’s lifetime or to two or more depositor’s during their lifetimes. Subject to the rules on “Non-Probate Assets,” generally described below, upon the death of all depositors the account becomes payable to one or more surviving designated beneficiaries without being subject to the depositor’s will. If there are two or more such beneficiaries, the funds will be divided equally. All funds in this type of account constitute a voluntary trust revocable in

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whole or in part at any time by any depositor by the withdrawal of funds. After the death of the depositor(s), funds remaining in the account belong only to the beneficiary, but are subject to our general right of offset for any indebtedness owed by any trustee or beneficiary.

If there are two or more depositors this type of account will be a Joint Account with Right of Survivorship, in which case the rights of the surviving depositor(s) will be as described above.

The term “trust account” does not include deposits by trustees or other fiduciaries where the trust or fiduciary relationship is established other than by this Agreement.

Uniform Transfers to Minors Act AccountThe Uniform Transfers to Minors Act Account is an account in the name of a person twenty one years of age or older as custodian for a person under twenty one years of age (“beneficiary”). We may allow the custodian to withdraw any or all of the funds in the account without determining whether or not the beneficiary has reached the age of twenty one or whether the withdrawal is for the benefit of the beneficiary. Upon proof of identity and age, we may allow withdrawals from the account by a beneficiary who has reached the age of twenty one without obtaining the consent of the custodian. We may, without liability, refuse to allow withdrawals by a beneficiary of any age without the written consent of the custodian.

Agency AccountAn Agency Account is an account to which funds may be deposited and from which payments may be made by an agent designated by the depositor. The depositor(s) may designate any person to be an agent.

The agent may withdraw funds from the account by writing checks or signing withdrawal slips. If there is more than one depositor named on the account, each depositor may designate the same or a different agent for making deposits to or payments from the account. The type of account may be combined with any of the other ownership categories of accounts.

Corporation, Partnership, Limited Liability Company, Limited Liability Partnership, Fiduciary or Unincorporated Association AccountsIn addition to this Agreement, each account of a corporation, partnership, limited liability company, limited liability partnership, fiduciary, unincorporated association or other organization will be governed by separate resolutions, documents and agreements with us. If this is a partnership, or limited liability partnership or voluntary association account, anyone or more of the partners or members named on this account have full authority to act for the partnership or association, and for every partner or member in all partnership or association transactions. The signature of any one partner or member will bind the partnership or association and all other partners or members, whether or not named on this account. We will not be liable for payment made or other actions taken in reliance on the orders or instructions of any partner or member. Every partner or member named represents to us that the partnership or association exists and that each partner or member is authorized to transact any business relating to this account. The partnership or association will provide any supporting documentation which we may request.

Non-Probate AssetsFor Washington accounts, upon the death of a depositor, a surviving depositor’s or beneficiary’s

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rights to receive payment under the terms of a Joint Account With Rights of Survivorship or a Trust or P.O.D. account may in some cases be superseded by the terms of a depositor’s will where the will is made after the date the account is opened and the bank receives proper notice of a claim to the account. Notice must be timely so as to afford us a reasonable opportunity to act, but in no event will less than 5 days notice be sufficient. In the absence of proper and timely notice, the terms of the Joint Account With Rights of Survivorship, Trust or P.O.D. account will govern.

Savings AccountsWithdrawal LimitationsFor all Savings or Market Trend accounts, federal law limits you to a total of 6 transfers and withdrawals per calendar month, to another account of yours with us or to a third party by pre-authorized or automatic transfer, or by telephone or online agreement, order, or instructions. The 6 transfers may also be by check, draft, ATM Card (Point of Sale) or VISA Debit Card, Online Bill Pay or similar order made by you and payable to a third party.

More than 6 such withdrawals per calendar month would be considered a violation of law and this agreement. Violations of this nature may result in us closing your account. These withdrawal restrictions do not apply to transfers for the purposes of repaying loans and associated expenses to us, transfers or withdrawals made by mail, messenger, at a cash machine or other automated teller machine (ATM), or in person, or withdrawals made by a telephone instruction that resulted in us mailing you a check.

Checking AccountsYour interest bearing checking account may consist of a master account with two sub-accounts. This is an internal accounting procedure related to the regulatory reserve calculation and will not affect the availability of funds, interest rate, or the fee structure of your checking account.

Stop Payment RequestsYou may request that we stop payment on a check, draft, or similar paper instrument drawn against your account. We will charge your account a stop payment fee, as reflected in the Services & Fees Schedule, which is in effect at the time the request is made. We may accept your request by oral, written, or electronic means. When using electronic (online) means to perform stop payment requests, it is your responsibility to verify that the item has not already been paid before the stop payment request is made. If this is a joint account, we will accept a stop payment from any joint owner regardless of who signed the check.

You must allow us a reasonable opportunity to act on a stop payment request before we take any other action on the instrument. Any stop order must include your account number, the number and date of the check, the name of the payee, and the exact amount. All information you give to us must be correct and accurate. You will receive a notice on your account asking you to verify the accuracy of this stop payment information. If we do not hear from you, we assume the information is correct and we will keep the stop payment in effect for six months.

We will not be responsible if the payment cannot be stopped because information on the form is not correct and you fail to notify us or fail to give any other reasonable information regarding the item. Requests to remove a stop payment from your account must be confirmed in writing.

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You acknowledge that you have no right to stop payment on a cashier’s check, certified check, teller’s check or other check that is not drawn on your account.

Post-Dated ChecksWe may choose to dishonor a post-dated check if we receive advance notice from you in such a time and manner as to afford us a reasonable opportunity to do so. However we will not be liable to you for any reason if we pay or refuse to pay post-dated checks before the date on such check, even if we have notice that it is post-dated.

Stale-Dated ChecksWe will not be liable to you for any reason if we pay or refuse to pay a check more than six months after its date.

Restrictive LegendsWe may disregard information on any check or item other than the signature of the drawer, the identification of the drawee financial institution and payee, the amount, the endorsements, and any other information that appears on the MICR line. We are not responsible to take action on, or for failure to notify you of restrictive language placed on checks or other items, including but not limited to terms such as, “Void after 90 Days,” “Paid in full,” ‘Two Signatures Required,” “Void Over $100” or similar statements. We may disregard all restrictive language even if we have actual knowledge of it. In accordance with reasonable banking standards, most checks and other items are processed through automated processing and, except in limited circumstances and in our discretion, most items are not individually examined. You agree that we act within reasonable banking standards by processing most checks and other items through automated processing systems.

Re-presented ChecksIf a merchant or payee electronically re-presents a paper check that was returned because you did not have enough money in your account, that transaction is not covered by the Electronic Funds Transfer Act. Checks that are re-presented will not be included with your statement. A merchant may electronically collect a fee associated with a re-presented check. If collected from a consumer account, that fee is covered by the Electronic Funds Transfer Act and subject to the Electronic Funds Transfer Agreement and Disclosures below. The fee will appear on your statement.

Pencil ChecksWe may refuse payment of checks not written in imageable ink or written on non-imageable paper stock.

Pre-Authorized ItemsWe are not required to give you next day notice of receipt of a pre-authorized item. Your periodic statement will reflect pre-authorized debits and credits.

Customer’s Death or IncompetenceOur authority to accept, pay, or collect a check or any other item presented for payment is not revoked by the customer’s death or incompetence until we know of the fact and have reasonable

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opportunity to act on it. Even with knowledge, we may for 10 days after date of death, pay checks drawn on or before the date of death unless ordered to stop payment by a person claiming an interest in the account.

Fraudulent ActivityYou agree to safeguard your checks which are magnetically encoded with your unique account number. You agree to assume full responsibility for the unauthorized use of your checks, including unauthorized signatures and alterations, where you did not use ordinary care in controlling access to your checks, accounting for your checks, promptly reviewing your bank statement for unauthorized activity or where your lack of ordinary care contributed to the unauthorized use of your account.

Should you experience fraudulent activity on your account, we may require you to close that account and reopen a new account. We may also require you to use (and pay for) our positive pay services to prevent future fraud. You agree that if you refuse either of these requirements, we will have no liability whatsoever to you or any other person with respect to future fraudulent activity of any kind relating to your account, regardless of whether the future fraud is of the same type or is caused by the same person as the activity that triggered these requirements. You also agree to file a police report concerning any fraudulent activity.

If we are unable to enforce presentment and transfer warranties on remotely created checks under Regulation CC, then if you voluntarily give information about your Account (such as our routing number and your account number) to a party who is seeking to sell you goods or services, and you do not physically deliver a check to the party, any debit to your account initiated by the party to whom you gave the information is deemed authorized by you.

Substitute Checks and Your RightsWhat is a substitute check?To make check processing faster, federal law permits banks to replace original checks with “substitute checks.” These checks are similar in size to original checks with a slightly reduced image of the front and back of the original check. The front of a substitute check states: “This is a legal copy of your check. You can use it the same way you would use the original check.” You may use a substitute check as proof of payment just like the original check. Some or all of the checks that you receive back from us may be substitute checks. This notice describes rights you have when you receive substitute checks from us. The rights in this notice do not apply to original checks or to electronic debits to your account. However, you have rights under other law with respect to those transactions.

What are my rights regarding substitute checks?In certain cases, federal law provides a special procedure that allows you to request a refund for losses you suffer if a substitute check is posted to your account (for example, if you think that we withdrew the wrong amount from your account or that we withdrew money from your account more than once for the same check). The losses you may attempt to recover under this procedure may include the amount that was withdrawn from your account and fees that were charged as a result of the withdrawal (for example, bounced check fees).

The amount of your refund under this procedure is limited to the amount of your loss or the

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amount of the substitute check, whichever is less. You also are entitled to interest on the amount of your refund if your account is an interest-bearing account.

If your loss exceeds the amount of the substitute check, you may be able to recover additional amounts under other law. If you use this procedure, you may receive up to $2,500 of your refund (plus interest if your account earns interest) within 10 business days after we received your claim and the remainder of your refund (plus interest if your account earns interest) not later than 45 calendar days after we received your claim.

We may reverse the refund (including any interest on the refund) if we later are able to demonstrate that the substitute check was correctly posted to your account.

How do I make a claim for a refund?If you believe that you have suffered a loss relating to a substitute check that you received and that was posted to your account, please contact us at 1-800-305-1905 or write us at Columbia Bank, P.O. Box 2156, Tacoma, WA 98401-2156. You must contact us within 40 calendar days of the date that we mailed (or otherwise delivered by a means to which you agreed) the substitute check in question or the account statements of which the substitute check was posted to your account, whichever is later. We will extend this time period if you were not able to make a timely claim because of extraordinary circumstances.

Your claim must include:

• A description of why you have suffered a loss (for example, you think the amount withdrawn was incorrect);

• An estimate of the amount of your loss;• An explanation of why the substitute check you received is insufficient to confirm that you

suffered a loss; and• A copy of the substitute check and the following information to help us identify the

substitute check: the check number, the name of the person to whom you wrote the check and the amount of the check.

Time Deposit AccountsYou agree to the terms and conditions that were furnished to you when opening your Time Deposit account. Other sections of this Agreement may also apply to your Time Deposit account.

ATM/Debit Card

ATM FeesWhen you use an ATM not owned by us, you may be charged a fee by the ATM Operator. You may also be charged a fee for a balance inquiry even if you do not complete a fund transfer.

TerminationWe reserve the right to terminate your use of your ATM Card or VlSA® Debit Card with or without cause. We may immediately do so if (a) you or any authorized user of the card breeches this or any other agreement with us; (b) we have reason to believe that someone has transferred or may transfer money from your account(s) without your permission; or (c) you or any authorized user of

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your card or account(s) which may be accessed by your card, requests that we do so. If you ask us to terminate or suspend your account or card, you will remain liable for subsequent Electronic Funds Transfer (EFT) transactions performed by you or any authorized user.

Other AgreementsYour use of your ATM Card, VISA® Debit Card or Online Banking may be subject to the terms of one or more separate agreements, which are incorporated into this Agreement. All terms, conditions and agreements which govern your account (including those appearing in this Agreement, on the signature card or any other rules and regulations or agreements) also apply to any electronic transactions including the use of your ATM Card, VlSA® Debit Card or Online Banking except where this Agreement provides differently.

SecurityYou agree not to disclose or otherwise make your ATM Card or VISA® Debit Card or PIN available to anyone without your prior written consent. Do not write your PIN on your card or keep in the same location as your card. You agree that to the extent allowed by applicable law, you will be liable for all transactions conducted using your card and PIN.

Inactive or Abandoned Deposit Accounts

Inactive Account ChargesTo the extent allowed by law and after any required notice to you, we may impose a reasonable monthly service charge, as reflected in the Services & Fees Schedule, for all inactive checking, money market, and savings accounts. Checking, money market, and savings accounts are considered inactive after 15 months, unless you have increased or decreased the amount on deposit, exclusive of interest, fees or other adjustments by us. We may impose an inactive service charge on inactive Online Banking accounts. Online Banking accounts are considered inactive if you have not logged in for at least six months.

Abandoned Checking and Savings AccountsYour checking and savings account, including a money market account, will be presumed abandoned after 3 years of inactivity unless you have:

• Increased or decreased the amount on deposit, exclusive of interest, fees or other adjustments by us, or

• Communicated with us in writing concerning the deposit account.• Met other requirements imposed by state law.

If your time deposit account is automatically renewable, the above 3 year time period will begin to run at the expiration of the initial maturity period. If your automatically renewable time deposit has an initial maturity period less than 1 year, the above time periods begin to run 1 year after the date of the original deposit.

Payment of Interest will CeaseAt the time your interest earning deposit account is considered abandoned, it will no longer earn interest.

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Balance Forwarded to the StateIf your deposit account is presumed abandoned, the balance will be forwarded to the state as “abandoned” under state law. Thereafter, you may recover the money by making a claim directly to the state.

Funds Availability Policy

Our policy is to make funds from your deposits available to you on the first business day after the day we receive your deposit. Electronic direct deposits will be available on the day we receive the deposit. Once they are available, you can withdraw the funds in cash and we will use the funds to pay checks that you have written and other items presented for payment.

For determining the availability of your deposits, every day is a business day, except Saturdays, Sundays, and federal holidays. If you make a deposit before the branch closes on a business day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit after the branch closes or on a day we are not open, we will consider that the deposit was made on the next business day we are open. Our earliest branch dosing time is 4:00 p.m.. However, if you make a deposit at the night deposit after 8:00 a.m. or at a cash machine on our premises after the cut-off time of 2:00 p.m. or on a day we are not open, we will consider the deposit made on the next business day that we are open. All automated teller machines owned and operated by our Bank display the Bank’s logo or the logo of one of the trade names under which we do business.

Longer Delays May ApplyFunds you deposit by check may be held for a longer period under the following circumstances:

• We believe a check you deposit will not be paid.• You deposit checks totaling more than $5,000 on any one day.• You deposit a check that has been returned unpaid• You have overdrawn your account repeatedly in the last 6 months,• There is an emergency, such as failure of communications or computer equipment or other

condition beyond our control,

We will notify you if we delay your ability to withdraw funds for any reason, and we will tell you when the funds will be available. They will generally be available no later than the seventh (7th) business day after the day of deposit. If we make funds available ahead of schedule, including in situations where we have the right to impose a longer delay that does not mean we have to do it again.

Special Rules for New AccountsIf you are a new customer, the following special rules apply during the first 30 days your account is open. Funds from electronic direct deposits to your account will be available on the day we receive the deposit. Funds from deposits of cash, wire transfer, and the first $5,000 of a day’s total deposits of cashier’s, certified, teller’s, traveler’s, and federal, state and local government checks will be available on the first business day after the day of your deposit if the deposit meets certain conditions. The excess over $5,000 will be available on the ninth (9th) business day after the day of your deposit. If your deposit of these checks (other than a U. S. Treasury check) is not

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made in person to one of our employees, the first $5,000 will not be available until the second (2nd) business day after the day of your deposit. Funds from all other check deposits will be available on the seventh (7th) business day after the day of your deposit.

Electronic Funds Transfer Agreement and DisclosureBy the signing of the deposit contract, or by using an account provided by the Bank, unless the depositor specifies otherwise, the depositor requests and authorizes the Bank to deposit, withdraw, and transfer funds to and from the depositor’s accounts pursuant to electronic, telephone, computer or automated instructions from the depositor, including but not limited to instructions that are made by means of an automated teller machine (ATM) or online banking, and to issue the depositor a personal identification number (PIN), login identification, or password for use in making such deposits, withdrawals, transfers, and bill pay transactions. This disclosure and agreement concern the use of your ATM Card, VISA® Debit Card, Online Banking, telephone, pre-authorized and other electronic funds transfers excluding wire transfers. Certain transactions may be made only if the ATM or point-of-sale (POS) terminal bears a logo for use of the networks in which the Bank is a participant (“Participant Networks”). The reverse side of your ATM Card or VISA® Debit Card indicates the logos of Participating Networks at the time such card was issued to you or you may call 1-800-305-1905 for a current list of Participating Networks. All sections of the Deposit Account Agreement also apply.

You may use your ATM card or VISA® Debit Card and your Personal Identification Number (PIN) to withdraw funds at ATM’s displaying a logo of a Participating Network (as described below). Your VISA® Debit Card also may be used to obtain cash at financial institutions participating in VISA®. You may use your ATM Card or VlSA® Debit Card and your PIN to make deposits at most ATM’s owned or operated by the Bank. Deposits other than transfers of money between your accounts, will not be available for withdrawal until actually credited to the account which is to receive the deposit. Any deposit made should be made using the separate deposit envelopes furnished at each machine. Credit for deposits is subject to verification by us. Deposits are also subject to the Funds Availability Policy. You may not place a stop payment on cash advances. You may pay for purchases at places that agreed to accept the Cash Card or VISA® Debit Card. You may also pay bills directly using Bill Pay from your checking or savings account in the amounts and the day you request. Some of the services may not be available at all terminals.

TransfersYou may use Telephone Banking, your ATM Card, VISA® Debit Card, Online Banking and your respective PIN, login identification, or Password to transfer funds from one Bank account (checking, savings, and money market) to another of those accounts, if the cards or Online Banking are set up to include those accounts. ATM transfers can be made at ATM’s which have the transfer capability and which display a logo of a Participating Network.

Purchases and Other POS transactionsYou may use your ATM Card, VISA® Debit card, and your PIN for point-of-sale (POS) purchases from your checking account at participating network terminals or merchants. This service is not available for savings accounts. You may use your ATM Card, VISA® Debit Card to make POS purchases at merchants and other locations where the VISA® symbol appears, provided such merchant participates in VISA® processing. You may not place a stop payment on any purchase.

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Cash refunds will not be made to you on purchases made with your card. If a merchant who honors your card gives you credit for a merchandise return or adjustment, the merchant will do so by sending us a credit slip which we will apply as a credit to your account. If your use of the card results in an extension of credit, any claim or defense with respect to property or services purchased with your card must be handled by you directly with the merchant or other business establishment which accepts the card, and any such claim and defense which you assert will not relieve you of your obligation to pay the total amount of the sales draft plus any appropriate charges we may be authorized to make.

Direct DepositUpon instruction of your employer, or the Treasury Department, or financial institutions or other third parties, the Bank will accept direct deposits of your paycheck or of Federal payments, such as Social Security, and other recurring payments.

Electronic Check ConversionYou may authorize a merchant or other payee to make a one time electronic payment from your checking account using information from your check to (i) pay for purchases or (ii) pay bills. This applies whether the check is blank, partially completed, or fully completed and signed; whether it is presented at the point of sale or mailed to a merchant or lock box and later converted to an EFT; or whether it is retained by you or the merchant or payee. This is called an electronic check conversion. We have the right to convert an item into an electronic image, and if we receive an image instead of the item, you may request a copy of the image.

Limitations of Frequency and Dollar Amount of TransactionsDeposits, Withdrawals, POS Purchases, and Online Bill PaymentsThere are no limitations on the frequency of deposits, withdrawals, or POS transactions. However, there are daily dollar limits that apply to withdrawals, POS transactions, retail purchases, online bill payments and VISA® cash advances. They are as follows:

• Check Card - You can use your VISA® Debit Card to pay for goods and services at locations which honor VISA® cards up to the available balance in your account or $3,000 whichever is less,

• ATM Card - You can withdraw cash using your ATM Card or VISA® Debit Card at any ATM up to the available balance in your account or $400.00 per day whichever is less,

• Point-of-Sale (POS) - With your ATM Card or VISA® Debit Card and personal identification number (PIN), you can pay for purchases or obtain cash from your checking account at participating merchants up to the available balance in your account or $400.00 per day, whichever is less,

• Bill Pay Services - You can use our Bill Pay service to pay bills up to the available balance in your account.

ATM withdrawals and bill payment transactions are subject to the availability of funds in your account, plus the available amount of your Personal Reserve Account (PRA) or your Business Reserve Line (BRL) that may be linked to your account. Cash advances and POS transactions (including those at VlSA® locations) are subject to the availability of funds in your account. Funds being reserved for authorized but un-posted purchases may not be used to pay checks, other debits or withdrawals. If the Bank pays a withdrawal, cash advance, POS transaction, or a

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bill pay transaction that exceeds the balance of funds in your checking account (it is expressly acknowledged and understood that the Bank is under no obligation to do so), you will be charged our current overdraft charge. The overdraft charge will not apply when such a payment is made by means of an automatic advance from your Personal Reserve Account or Business Reserve Line, but an overdraft charge will be assessed if payment is made by means of an automatic transfer authorization. For all savings or Market Trend accounts, you are limited to a total of 6 transfers and withdrawals per calendar month, to another account of yours with us to a third party by pre-authorized or automatic transfer, or by telephone or online agreement, order, or instructions. Also, the 6 transfers may be by check, draft, ATM card (Point of Sale), or VlSA® Debit Card, Bill Pay, or similar order made by you and payable to a third party.

ATM DepositsIf a deposit (either cash or check) is made at an ATM at a branch of Columbia State Bank or Bank of Astoria after the cut-off time of 2:00 p.m., on a business day or on a day we are not open, we will consider the deposit made on the next business day. You may use your ATM Card or VlSA® Debit Card and your PIN to make deposits at most ATMs owned or operated by the Bank.

Direct DepositsThere are no limitations on the number of direct deposits the Bank will accept.

Telephone Access and Online AccessWe may act on telephone or online instructions received from a person whom we believe is an authorized signer on an account to transfer funds from that account to another account maintained with us that has a common owner and a common authorized signer. You may make transfers and withdrawals by telephone or computer from your checking, savings, and money market accounts, subject to any limitations described in the Deposit Account Agreement.

If you voluntarily give information about your account (such as our routing number and your account number) to a party that is seeking to sell you goods or services, any debit to your account initiated by the party to whom you gave your information is deemed authorized.

FeesWe will charge you fees for certain types of electronic transfers. You acknowledge that we have provided you with our Services & Fees Schedule brochure reflecting these fees.

Right to Receive Documentation

Terminal TransactionsYou will normally be furnished with a receipt at the time you make any transaction to or from your account at an ATM terminal or POS device, or make purchases with your card.

Pre-Authorized DepositsIf you have arranged to have direct deposits made to your account at least once every 60 days from the same person or company, you can call 1-800-304-0050 to find out whether or not a deposit has been made.

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Periodic StatementYou will receive a monthly checking account statement and a quarterly savings account statement. However, if there has been an electronic transaction to your savings account in a particular month, you will receive a monthly savings account statement for that month. If you request it, your checking and savings statements can be combined on one statement.

Pre-Authorized PaymentsYou may authorize, in writing or electronically, a third party to make an electronic transfer to or from your checking, savings, or money market account. If you have told us to make regular payments out of your account, including bill payments, you can stop any of these payments.

Here’s how:

Call us at 1-800-305-1905 or write us at Columbia Bank, P.O. Box 2036, Tacoma, WA 98401-2036, in time for us to receive your request 3 business days or more before the payment is scheduled to be made. If you need to stop a bill payment call Online Services at 253-305-0599 or toll free at 1-877-754-5074, or you may write to us at Columbia Bank, Online Services MS4600, P. O. Box 2156, Tacoma, WA 98401-2156. If you call, we may also require you to put your request in writing and get it to us within 14 days after your call. We will charge your account for a stop payment fee, as reflected in the Services & Fees Schedule brochure.

If these payments may vary in amount, the person you are going to pay will tell you, 10 days before each payment, when it will be made and how much it will be. (You may choose instead to get this notice only when the payment would differ by more than a certain amount from the previous payment, or when the amount would fall outside certain limits that you set). We are not responsible for this notice or for any harm you may suffer if you are not notified. If you order us to stop one of these payments 3 business days or more before the transfer is scheduled, and we do not do so, we will be liable for your losses or damages.

Consumer LiabilityTell us AT ONCE if you believe your ATM Card or VISA® Debit Card or your Personal Identification Number (PIN) for either of these cards, or your login identification or password for Online Banking has been lost or stolen, or you believe that an electronic fund transfer has been made without your permission using information from your check. Telephoning is the best way of keeping possible losses down. You could lose all the money in your account plus the maximum available on your Personal Reserve Account or an overdraft protection service. If you tell us within two business days after you learn of the loss or theft of your card, PIN, login identification, or password or other means, you can lose no more than $50 if someone used your card, PIN, or login identification and password without your permission.

If you do NOT tell us within two business days after you learn of the loss or theft of your card, PIN, login identification, password or other means and we can prove we could have stopped someone from using your card, PIN, login identification, or password without your permission if you had told us, you could lose as much as $500.

Also, if your statement shows transfers that you did not make, including those made by card, code or other means, tell us at once. If you do not tell us within 60 days after the statement was mailed to you, you may not get back any money you lost after the 60 days if we can prove

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that we could have stopped someone from taking the money if you had told us in time. If a good reason (such as a long trip or a hospital stay) kept you from telling us, we will extend the time periods.

If you believe your card or PIN has been lost or stolen or that an unauthorized transaction has been made from your account, call 253-471-4012 or write Columbia Bank, ATM Operations, OP0261, P. O. Box 2036, Tacoma, WA, 98401-2036. You should also call your branch or write to Columbia Bank, MS OP0241, P. O. Box 2156, Tacoma, WA, 98401-2036 if you believe a transfer has been made using the information from your checking account without your permission.

Limits on liability for VISA® Debit Card transactions processed through the VISA® Network: Unless you have been grossly negligent or have engaged in fraud, you will not be liable for any unauthorized transactions using your lost or stolen VlSA® Debit Card. This does not apply to ATM or PIN based transactions not processed by VISA®. If your Online Banking login identification has been lost or stolen or an unauthorized transaction has been made from your account, call us at 253-305-0599 or toll free at 1-877-754-5074, or you may write to us at Columbia Bank, Online Services MS 4600, P. O. Box 2156, Tacoma, WA 98401-2156.

Business DaysFor purposes of the Electronic Funds Transfer disclosure, our business days are Monday through Fridays, except for legal holidays.

Error Resolution NoticeIn case of Errors or Questions about Your Electronic Transfers, if you think your statement or your receipt is wrong or if you need more information about a transaction listed on a statement or receipt, call us at 253-471-4013 or 1-800-305-1905 or write us at Columbia Bank, ATM Operations, OP0261. P. O. Box 2156,Taooma, WA 98401-2156. If there is an error on your bill pay Online Banking transaction or you need more information regarding a transaction, call us at 253-305-0599 or toll free at 1-800-754-5074, or you may write to us at Columbia Bank, Online Services, MS4600, PO. Box 2156, Tacoma, WA 98401-2156. We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared.

You must provide the following information:

• The name and account number of the account.• A description of the error or the transaction you are unsure about, and an explanation as

clearly as you can of why you need more information.• The dollar amount of the suspected error.

If you tell us orally, we may require that you send us your complaint or question in writing within 10 business days.

We will determine whether an error occurred within 10 business days (5 business days on VISA® Debit Card transactions processed by VISA®) after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 days (9O days on VISA® Debit Card transactions processed by VlSA®) to investigate your complaint or question. If we decide to do this, we will credit your account within 10 business days for the amount you think

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is in error, so that you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint in writing and we do not receive it within 10 business days (5 business days on VlSA® Debit Card transactions processed by VISA®), we may not credit your account.

We will tell you the results within 3 business days after completing our investigation. If we decide that there was no error, we will send you a written explanation. You may ask for copies of the documents that we used in our investigation.

For errors involving new accounts, point-of-sale, or foreign-initiated transactions, we may take up to 90 days to investigate your complaint or question. For new accounts, we may take up to 20 business days to credit your account for the amount you think is in error.

Our Liability for Failure to Make TransfersIf we do not complete a transfer or online transaction to or from your account on time or in the correct amount according to our agreement with you, we will be liable for your losses or damages. However, there are some exceptions.

We will not be liable:

• If, through no fault of ours, you do not have enough money in your account to make the transfer or online transaction.

• If the transfer or online transaction would go over the credit limit on your Personal Reserve Account, Business Reserve Line, or an overdraft protection service.

• If the automated teller machine (ATM) where you are making the transfer does not have enough cash.

• If the terminal or processing system was not working properly and you knew about the breakdown when you started the transfer or online transaction.

• If circumstances beyond our control (such as fire or flood) prevent the transfer or online transaction, despite reasonable precautions that we have taken.

• If the funds are subject to legal process or other encumbrance restricting such transfer or online transaction.

There may be other exceptions contained in other agreements with us that govern your account.

Disclosures of Account Information to Third PartiesWe will disclose information to third parties about your account or the transfers you make:

• Where it is necessary for completing the transfer, or• In order to verify the existence and condition of your account for a third party, such as a

credit bureau or merchant, or• In order to comply with a government agency or court order, or • If you give us your written permission.• We may share information with financial service providers with which we offer products

such as credit cards.

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Other Terms and Conditions

AmendmentsWe may change this Agreement or any other agreements, or change the terms of our deposit accounts at any time without notice. We will notify you of changes if and when required by law. Changes in the interest rate or method of computation maybe made at any time without delayed effect or notice to you, to the extent permitted by law. Your continued use of your account constitutes your agreement to any such changes.

No Waiver of AgreementNo waiver of this Agreement or any part of this Agreement is valid unless it is in writing and signed by an authorized officer of ours. Delayed enforcement of any part of this Agreement does not constitute a waiver. Waiver of any part of this agreement at any one time does not stop us from exercising its terms at any other time.

Your Waiver of NoticeYou waive notice of non-payment, dishonor or protest regarding any items credited to or charged against your account.

AssignmentsNo assignment is binding on us without our written approval of the assignment and our receipt of a signed copy of the assignment.

Limit of our LiabilityYou agree that except as provided in this Agreement and to the extent allowed by law, we are not liable for any indirect, incidental, special, consequential or punitive damages for any error or mistake we make in good faith. This limitation applies to any damages that might be available in contract or tort, and whether or not the consequences were foreseeable by us.

Disputes Involving your AccountTo the extent allowed by law, you agree to be liable to us for amounts relating to any loss, costs or expenses, including attorneys fees, that we may incur as a result of any dispute involving your account. You authorize us to deduct any such amounts from your account without notice to you. Such disputes may include, among others, disputes between you and any signer, joint owner or third party claiming an interest in the account. It also includes situations where you, a joint owner or other person takes action that causes us in good faith to seek legal counsel.

ArbitrationEither you or we may require that any dispute between you and us be resolved by binding arbitration in accordance with the Commercial rules of the American Arbitration Association, except as otherwise required by law, the decision of the arbitrator will be final and binding.

Governing LawThis Agreement will be governed by and construed in accordance with laws of our state of formation and federal banking law.

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COLUMBIA STATE BANK DEPOSIT ACCOUNT

AGREEMENT

For additional information:800-305-1905 or 877-272-3678

or contact your local branch

ColumbiaBank.comMember FDIC

EFFECTIVE JUNE 1, 2010