Columbia Banking System (COLB) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $192 million, with operating net income of $209 million and diluted EPS of $0.66 (operating EPS $0.72), reflecting continued execution on sustainable performance and capital returns.

• Completed Pacific Premier systems conversion and consolidated nine branches, with all cost savings expected by June 30, 2026.

• Returned $200 million to shareholders via repurchase of 6.5 million shares in Q1; $400 million remains authorized.

• AI and automation initiatives accelerated business banking processes, improved efficiency, and shifted routine queries to virtual assistants.

• Maintained stable operational performance and strong organic capital creation for the third consecutive year.

Financial highlights

• Net interest income for Q1 2026 was $594 million, down $33 million sequentially but up $169 million year-over-year.

• Net interest margin was 3.96%, down from 4.06% in Q4 2025 but up from 3.60% in Q1 2025.

• Non-interest income was $83 million, up 44% year-over-year but down $7 million sequentially.

• Non-interest expense was $394 million, with $328 million run rate excluding intangible amortization, down $18 million sequentially.

• Provision for credit losses was $28 million, up from $23 million in Q4 2025.

• Book value per share was $26.47; tangible book value per share was $19.03.

• ROAA at 1.18% and ROTCE at 15.11%.

Outlook and guidance

• All previously disclosed cost savings from the Pacific Premier acquisition are expected by June 30, 2026.

• Net interest margin anticipated to cross 4% in Q2 and expand further in the second half of 2026.

• Non-interest income expected in the low to mid $80 million range for Q2.

• Non-interest expense (excluding CDI amortization) guided to $335-$345 million in Q2, declining further in Q3 as cost synergies are fully realized.

• Share repurchases expected to remain in the $150-$200 million range per quarter.

• Loan portfolio expected to remain flat in 2026, with strong C&I and owner-occupied growth offsetting transactional runoff.

• Liquidity and capital positions are expected to remain satisfactory through 2026, with ongoing focus on deposit mix and funding optimization.