Columbia Banking System (COLB) Q4 2025 earnings summary

Executive summary

• Achieved strong fourth quarter and full-year 2025 results, with Q4 net income of $215 million and operating net income of $243 million, driven by the successful acquisition and integration of Pacific Premier Bank, which expanded the Western U.S. footprint and improved market share, especially in Southern California.

• Continued de novo expansion with new locations in Arizona, Colorado, California, and Oregon, funded by prior efficiency initiatives.

• Maintained focus on operational consistency, profitability, and disciplined growth, with eight consecutive quarters of repeatable earnings.

• Leadership changes included Clint Stein becoming Board Chair and Ivan Seda appointed CFO effective December 31, 2025.

• Deposit campaigns in 2025 generated $1.3 billion in new deposits; 3.7 million shares repurchased in Q4 2025.

Financial highlights

• Fourth quarter operating pre-provision net revenue (PPNR) rose 27% and operating net income increased 19% sequentially; full-year 2025 PPNR and operating net income up 22% and 31% year-over-year.

• Q4 EPS was $0.72 reported and $0.82 operating; full-year diluted EPS was $2.30 reported, $3.12 operating.

• Net interest margin expanded to 4.06% in Q4 from 3.84% in Q3 and 3.64% in Q4 2024, aided by improved funding and asset optimization.

• Non-interest income reached $90 million GAAP and $88 million operating, with a 26% year-over-year increase in 2025.

• Operating non-interest expense was $331 million (excluding CDI amortization), at the lower end of guidance; reported non-interest expense for Q4 was $412 million.

• ROAA exceeded 1.4% and return on tangible common equity surpassed 17% in Q4; return on average assets was 1.27% reported, 1.44% operating.

Outlook and guidance

• Net interest margin expected at 3.90%-3.95% in Q1 2026, then trending above 4% by Q2 or Q3 as deposit balances rebound.

• Non-interest expense (excluding CDI amortization) projected at $335-$345 million for Q1 and Q2, declining in Q3 as cost savings are fully realized.

• Share repurchases to increase to $150-$200 million per quarter in 2026, with $600 million remaining authorized.

• Loan portfolio expected to remain relatively flat for 2026, with transactional runoff offset by core relationship lending.

• Core fee income modeled in the low-to-mid $80 million range per quarter for 2026.

• Effective tax rate projected at 25% for 2026.

• Integration of Pacific Premier expected to complete in Q1 2026, with all cost savings realized by June 30, 2026.