#United States #financial results #Tacoma #Columbia Banking #Pacific Premier

Columbia Banking System Reports Third Quarter 2025 Financial Performance

Columbia Banking System, Inc. has announced its financial results for the third quarter of 2025, demonstrating notable progress and solid performance amidst its recent acquisition of Pacific Premier Bancorp.

Financial Highlights

For the third quarter, Columbia reported net income of $96 million and an operating net income of $204 million. The earnings per diluted share were recorded at $0.40, while the operating earnings per diluted share reached $0.85. This reflects a significant impact from acquisition-related items, yet core profitability remained robust, showcasing the underlying strength of the bank's financial performance.

Strategic Acquisitions and Growth

The acquisition of Pacific Premier was a pivotal move for Columbia, enhancing its footprint in the western United States and placing it among the top ten banks by deposit market share in Southern California. CEO Clint Stein emphasized that this strategic acquisition has fostered the bank's ability to cultivate top-tier returns, further shifting the bank's focus towards deepening relationships with both new and existing customers.

Customer deposits exhibited healthy growth, supporting balance sheet optimization, as the bank naturally reduced transactional loans and transitioned away from non-core funding. The bank’s board has authorized a substantial $700 million share repurchase program, reinforcing confidence in ongoing capital generation and optimization strategies.

Key Performance Metrics

Compared to the previous quarter, Columbia's net interest income witnessed an increase of $59 million, attributed to operating for one month as a combined entity with Pacific Premier, alongside a beneficial shift towards lower-cost funding sources. The bank's net interest margin improved to 3.84%, increasing by 9 basis points from the second quarter, correlated with the uptick in customer deposits.

Non-interest income increased by $12 million, while non-interest expenses surged by $115 million, primarily due to merger-related costs, contributing to the bank's overall financial dynamics.

Lastly, the bank's credit quality indicators showcased improvements, with net charge-offs standing at 0.22% of average loans, signifying a decline from the prior quarter. The allowance for credit losses increased to $492 million, reflecting prudent risk management practices in light of the recent merger.

Future Outlook

Columbia's management remains optimistic as they integrate new capabilities from Pacific Premier, with plans firmly in place to streamline operations further. The ongoing small business and retail campaign aiming to attract new deposits has already brought in approximately $1.1 billion in new funds as of mid-October, signaling encouraging signs for future growth.

In conclusion, Columbia Banking System's third-quarter performance not only illustrates financial resilience but also strategic foresight in leveraging acquisitions to establish a stronger operational base for sustainable growth and enhanced shareholder value.