Columbia Banking System (COLB) Q4 2024 earnings summary

Executive summary

• Reported Q4 2024 net income of $143 million and operating net income of $150 million, with EPS of $0.68 and operating EPS of $0.71, reflecting strong progress in expense optimization, pricing, and franchise investment.

• Achieved $82 million in annualized cost savings in 2024, reinvesting $12 million into growth markets, technology, and talent, with five new branches planned for 2025.

• Year-over-year, net income rose 53% and diluted EPS increased 51%, driven by improved net interest margin, commercial loan growth, and higher core fee income.

• Maintained strong credit quality, with low delinquencies and net charge-offs, and robust capital ratios.

• Expanded presence in high-growth Western markets, with a diversified loan and deposit base.

Financial highlights

• Net interest income for Q4 2024 was $437 million, up $7 million sequentially, with net interest margin expanding to 3.64%, up 8 bps from Q3 2024.

• Q4 EPS was $0.68; operating EPS was $0.71; operating return on average tangible equity reached 16%.

• Non-interest expense in Q4 2024 declined $5 million sequentially to $267 million, reflecting lower benefits expense.

• Deposits totaled $42 billion at year-end, with a granular, diversified base; total assets at December 31, 2024 were $52.2 billion; loans and leases were $37.7 billion.

• Allowance for credit losses to loans and leases was 1.17%; non-performing assets to total assets was 0.33%.

Outlook and guidance

• Five new branches to open in 2025, funded by cost savings from 2024 consolidations.

• Operating expense guidance for 2025 is $1.0–$1.01 billion, reflecting inflation and reinvestment in branches and talent.

• NIM expected to be in the lower half of recent quarters in Q1 due to seasonal deposit outflows and increased wholesale funding.

• Deposit contraction expected in Q1 and Q2 due to seasonality, with growth resuming in Q3.

• CDI amortization projected at $105 million for 2025; tax rate expected at 25.7%.