#United States #financial results #Q4 2024 #Tacoma #Columbia Bank

Columbia Banking System, Inc. Reports Robust Fourth Quarter 2024 Results

On January 23, 2025, Columbia Banking System, Inc. delivered an impressive financial report for the fourth quarter of 2024, highlighting a net income of $143 million and operating net income reaching $150 million. The earnings per diluted common share stood at $0.68, demonstrating a notable increase from previous quarters.

CEO Remarks

Clint Stein, President and CEO, remarked on the organization's significant strides towards achieving top-quartile performance. Citing optimized expense bases and improved pricing strategies, Stein emphasized how these factors have bolstered their financial stance while fostering exceptional value for customers and shareholders. The fourth quarter performance showcased a deposit-driven net interest margin expansion and growth in relationship-driven commercial loans, underpinning Columbia's dedication to meeting clients' needs.

Key Highlights from Q4 2024

• - Net Interest Income: The net interest income for the fourth quarter rose by $7 million compared to the prior quarter, totaling $437 million. This surge was mainly attributed to reduced funding costs, effectively counterbalancing the dip in interest income experienced over the same timeframe.
• - Net Interest Margin: Columbia reported a net interest margin of 3.64%, up 8 basis points from the previous quarter, thanks to a favorable shift in the funding mix towards lower-cost sources.
• - Non-Interest Income: There was a decline in non-interest income, which fell by $16 million due to fluctuations in cumulative fair value accounting and lesser income from loan sales. However, the organization remains focused on sustainable core fee income generation.
• - Credit Quality Metrics: The overall credit quality remained strong, with net charge-offs quantify at 0.27% of average loans, reflecting a slight improvement from the prior quarter.
• - Capital Strength: Columbia proudly declared a quarterly cash dividend of $0.36, contributing to a total risk-based capital ratio of 12.6%, providing reassurance to stakeholders regarding the company's capital adequacy.

Strategic Initiatives

In 2024, Columbia executed three successful campaigns aimed at small businesses, which facilitated approximately $700 million in new deposits. These campaigns involved bundled solutions tailored for clients without promotional pricing, showcasing their customer-centric approach. Looking to the future, Columbia has plans to open five new branches in strategic growth markets, underpinning their commitment to expansion and value delivery.

A Glance at Financial Metrics

• - Return on Average Assets: 1.10%
• - Return on Average Common Equity: 10.91%
• - Efficiency Ratio: 54.61%
• - Total Assets: $51.6 billion as of December 31, 2024.

Columbia Banking System's Q4 2024 results reflect not just a strong financials report but also a robust foundation for future growth as they continue to adapt to evolving market conditions while prioritizing customer needs. The management's focus on strategic investments and operational efficiencies positions the bank favorably for continued success in 2025 and beyond.

Learn more about Columbia Banking System at www.columbiabankingsystem.com.