#USA #Umpqua Bank #Tacoma #Columbia Banking #Pacific Premier Bancorp

Columbia Banking System, Inc. Reports Strong First Quarter 2025 Financial Performance

On April 23, 2025, Columbia Banking System, Inc. announced its financial results for the first quarter of 2025, revealing a net income of $87 million, a slight decline compared to the previous quarter. The company's strategic focus on fostering customer relationships has yielded positive results, even amidst a challenging global economic landscape.

CEO Commentary

Clint Stein, President and CEO, praised the company's consistent performance throughout 2024, which has continued into the first quarter of 2025. He emphasized that despite global uncertainties, Columbia has maintained stability. He noted the increase in customer deposits, attributed to successful small business campaigns and the effective implementation of the Business Bank of Choice strategy across eight western states.

Financial Highlights

• - Net Income: The bank reported a net income of $87 million, down from $140 million in the previous quarter.
• - Earnings per Share: Earnings per diluted common share stand at $0.41, showing a decline from $0.67.
• - Net Interest Income: A decrease was noted in net interest income, which dropped by $12 million, mainly due to lower accretion income from investment securities. The net interest margin fell to 3.60%, down from 3.64% in the prior quarter.

• - Non-Interest Income & Expense: Non-interest income rose by $17 million, indicating strong performance due to fair value adjustments. Conversely, non-interest expenses increased by $74 million, primarily due to legal expenses and seasonal payroll tax increases.
• - Credit Quality: The net charge-offs slightly increased to 0.32% of average loans, reflecting a partial charge-off of a previously reserved loan. The provision expense decreased to $27 million from $28 million.
• - Capital Ratios: The estimated total risk-based capital ratio remains strong at 12.8%, with a common equity tier 1 capital ratio of 10.6%.

Notable Developments

Columbia has recently announced plans to acquire Pacific Premier Bancorp, which is expected to significantly expand its footprint in Southern California. The deal, valued at approximately $70 billion in assets, is projected to enhance shareholder value and accelerate growth opportunities, particularly in lucrative markets.

Additionally, the bank opened its first branch in Colorado, indicating its commitment to expanding commercial operations, wealth management, and retail banking services in new regions.

Conclusion

While the first quarter of 2025 displayed some challenges, Columbia Banking System, Inc. remains optimistic about its strategic plans and market opportunities. The commitment to customer service and strategic expansions reflects a proactive approach to navigating the complexities of the current economic environment. The forthcoming merger with Pacific Premier Bancorp is poised to further strengthen Columbia's market position and deliver long-term value to stakeholders.