Columbia Banking System (COLB) Q3 2025 earnings summary

Executive summary

• Completed the acquisition of Pacific Premier Bancorp on August 31, 2025, expanding to an eight-state Western footprint, top-10 deposit market share in Southern California, and $68 billion in assets, with unified branding and enhanced market presence.

• Integration of Pacific Premier is progressing on schedule, enhancing scale, product offerings, and profitability, with immediate revenue and operational synergies realized.

• Board authorized a $700 million share repurchase program, reflecting strong capital generation and confidence in future performance, effective through November 2026.

• Focus remains on operational enhancements, disciplined credit standards, and balance sheet optimization, with organic deposit growth reducing reliance on non-core funding.

• CFO transition: Ron Farnsworth stepping down, Ivan Seda appointed as new CFO.

Financial highlights

• Q3 2025 reported net income was $96 million, with operating net income of $204 million; reported EPS was $0.40, operating EPS was $0.85.

• Net interest income rose to $505 million, up $59 million sequentially, driven by the Pacific Premier acquisition and lower funding costs.

• Non-interest income increased to $77 million, up $12 million from Q2 2025, with $5 million net fair value gain on MSR hedging.

• Non-interest expense surged to $393 million, up $115 million, mainly due to $87 million in merger and restructuring costs.

• Total assets grew to $67.5 billion, loans and leases to $48.5 billion, and deposits to $55.8 billion, all reflecting the Pacific Premier addition.

• Tangible book value per share increased to $18.57, up 4% since Q1.

• Quarterly dividend of $0.36 per share declared and paid.

Outlook and guidance

• Management expects continued strong capital generation and profitability, supporting further capital returns and the full execution of the $700 million buyback over the next 12 months.

• Integration of Pacific Premier systems on track for completion in Q1 2026, with cost synergies of $127 million annualized targeted by June 2026.

• Net interest margin projected just above 3.90% in Q4 2025, with stable to growing net interest income and margin over the next two quarters.

• Expense run rate expected at $330–$340 million per quarter before dropping lower in late 2026 as cost synergies are fully realized.

• Allowance for credit losses expected to migrate slowly upward as portfolio remix continues.