Key Takeaways COLB boosts its quarterly dividend to 37 cents per share, a 2.8% increase from the prior payout.COLB backs dividends with a 7.05% five-year growth rate and a 48% earnings payout ratio.COLB authorizes a $700M share repurchase plan and holds $2.34B in cash with no long-term debt.Columbia Banking System, Inc. (COLB) , parent company of Columbia Bank, has announced a quarterly dividend of 37 cents per share, marking a 2.8% increase from the prior payout. The dividend will be paid on Dec. 15, 2025, ...

Core Points - Columbia Banking System, Inc. announced a quarterly cash dividend of $0.37 per common share, marking a 3% increase from the previous dividend declaration [1][2] - The dividend is scheduled to be paid on December 15, 2025, to shareholders of record as of November 28, 2025 [1] - The company also revealed a $700 million share repurchase program, indicating a strong commitment to returning capital to shareholders [2] Company Overview - Columbia Banking System, Inc. is headquartered in Tacoma, Washington, and is the parent company of Columbia Bank, which is the largest bank in the Northwest and one of the largest in the West [2] - Columbia Bank offers a comprehensive range of services, including retail and commercial banking, SBA lending, corporate banking, and wealth management [2] - The company emphasizes its commitment to delivering superior, personalized service while combining the resources of a national bank [2]

Accessibility StatementSkip Navigation FORT LAUDERDALE, Fla., Nov. 6, 2025 /PRNewswire/ -- Today, HoldCo Asset Management, LP ("HoldCo"), a Florida-based investment firm managing approximately $2.6 billion in regulatory assets under management, released a presentation to Columbia Banking System, Inc. entitled "Respect To The Board." The presentation may be found at the following link: Continue Reading View PDF Respect To The Board All content in this press release and referenced presentations represent the ...

Earnings Performance - Earnings per diluted common share decreased to $0.40 for Q3 2025 from $0.73 in Q2 2025, primarily due to higher non-interest expenses related to the Pacific Premier acquisition [163]. - Net income for the three months ended September 30, 2025, was $96 million, a decrease from $152 million for the prior quarter, primarily due to a $115 million increase in non-interest expense [180]. - For the nine months ended September 30, 2025, net income was $335 million, down from $390 million in the same period last year, attributed to increased non-interest expenses and provisions for credit losses [181]. Interest Income and Margin - Net interest margin improved to 3.84% for Q3 2025, up from 3.75% in Q2 2025, driven by a favorable shift to lower-cost funding sources [163]. - Net interest income for the three months ended September 30, 2025, was $505 million, an increase of $59 million compared to the prior quarter [187]. - The net interest margin for the three months ended September 30, 2025, was 3.84%, up from 3.75% in the previous quarter [188]. Loan and Deposit Growth - Total loans and leases rose to $48.5 billion as of September 30, 2025, an increase of $10.8 billion since December 31, 2024, mainly from the Pacific Premier acquisition [167]. - Total deposits reached $55.8 billion as of September 30, 2025, up $14.1 billion from December 31, 2024, driven by the addition of Pacific Premier deposits [167]. - Core deposits reached $51.5 billion as of September 30, 2025, compared to $37.5 billion at December 31, 2024, reflecting a significant increase in stable funding sources [261]. Non-Interest Income and Expenses - Non-interest income increased to $77 million in Q3 2025, compared to $65 million in Q2 2025, attributed to fair value adjustments and MSR hedging activity [163]. - Non-interest expense for the nine months ended September 30, 2025, was $1.0 billion, an increase from $838 million in the same period of 2024, largely due to merger-related costs [167]. - Total non-interest expense for the nine months ended September 30, 2025, rose by 21% to $1,011 million from $838 million in the prior year, largely due to the acquisition-related costs [207]. Credit Quality and Allowance for Credit Losses - The allowance for credit losses (ACL) was $492 million as of September 30, 2025, reflecting an increase of $51 million from December 31, 2024, due to loan growth from the acquisition [167]. - Provision for credit losses was $70 million for Q3 2025, compared to $30 million in Q2 2025, reflecting initial provisions for acquired loans [168]. - Net charge-offs for the nine months ended September 30, 2025, were $81 million, a decrease of 22% from $104 million in the prior year, with a net charge-off rate of 0.28% compared to 0.37% [200]. Capital and Liquidity - Total available liquidity was $26.7 billion, representing 40% of total assets and 130% of estimated uninsured deposits as of September 30, 2025 [174]. - Shareholders' equity increased to $7.8 billion as of September 30, 2025, up $2.7 billion from December 31, 2024, driven by the fair value of common shares issued and net income of $335 million [268]. - The Company recorded $270 million in dividends paid by the Bank during the nine months ended September 30, 2025, reflecting ongoing capital returns to shareholders [264]. Acquisition Impact - The acquisition of Pacific Premier was completed on August 31, 2025, enhancing the company's footprint and service offerings in the western United States [162]. - The increase in non-interest income was attributed to one month of combined operations following the acquisition of Pacific Premier [203]. - Goodwill increased to $1.5 billion as of September 30, 2025, from $1.0 billion at December 31, 2024, primarily due to the $452 million goodwill recorded from the acquisition of Pacific Premier [251]. Risk Management and Regulatory Compliance - Columbia's total risk-based capital ratio was 13.4% and CET1 capital ratio was 11.6% as of September 30, 2025, up from 12.8% and 10.5% respectively as of December 31, 2024 [174]. - The total capital to risk-weighted assets ratio for Columbia was 13.45% as of September 30, 2025, exceeding the regulatory minimum of 8.00% [272]. - The Bank's credit quality administration department is responsible for monitoring asset quality and enforcing credit policies across the institution [241].

Core Insights - Columbia Banking (COLB) reported quarterly earnings of $0.85 per share, exceeding the Zacks Consensus Estimate of $0.66 per share, and showing an increase from $0.69 per share a year ago, resulting in an earnings surprise of +28.79% [1][2] - The company achieved revenues of $582 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.07% and up from $496.38 million year-over-year [2] - Columbia Banking has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.79 on revenues of $721.3 million, and for the current fiscal year, it is $2.85 on revenues of $2.31 billion [7] - The estimate revisions trend for Columbia Banking was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Zacks Industry Rank for Banks - West is currently in the top 8% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Columbia Banking System reported a third-quarter operating PP&R increase of 12% from the second quarter and 22% year-over-year, reflecting strong profitability and balance sheet optimization [6][12] - The operating return on average tangible equity was 18.2%, with a tangible book value per share increasing to $18.57, a 4% rise since Q1 2025 [12][14] - The net interest margin expanded by nine basis points to 3.84%, driven by customer deposit growth and a reduction in reliance on higher-cost wholesale funding [15][16] Business Line Data and Key Metrics Changes - New loan originations reached $1.2 billion, up 36% quarter-over-quarter and 21% year-to-date, with a 5% annualized increase in the commercial portfolio [18][19] - Customer deposits increased nearly $800 million organically during the quarter, with approximately 30% of this growth attributed to new customers [18][19] - Non-interest income for the quarter was $77 million, with operating non-interest income increasing by $6 million due to the contribution from Pacific Premier Bancorp [16][19] Market Data and Key Metrics Changes - The acquisition of Pacific Premier Bancorp has enhanced Columbia's competitive position in the Pacific Northwest, with nearly 10% deposit market share in the region [3][4] - The company is focusing on organic growth opportunities in dynamic markets such as Arizona, Colorado, Nevada, and Utah, leveraging its expanded footprint [4][5] Company Strategy and Development Direction - Columbia Banking System aims to optimize its balance sheet while focusing on organic growth and enhancing customer relationships, particularly in Southern California [4][5] - The company has initiated a $700 million share repurchase program, reflecting confidence in its balance sheet and long-term shareholder value creation [21][22] - Management emphasizes a disciplined approach to lending and profitability over growth for the sake of growth, with a focus on relationship-driven loans [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate capital beyond what is required for growth, with a focus on delivering top-tier performance and capital returns [21][34] - The integration of Pacific Premier Bancorp is expected to enhance customer relationships and drive revenue synergies, with management committed to a disciplined, cost-conscious culture [9][20] - The company anticipates continued strong profitability and capital generation, with a focus on optimizing its balance sheet and enhancing long-term shareholder value [21][22] Other Important Information - The company reported a GAAP provision expense of $70 million due to purchase accounting from the acquisition, with an overall allowance for credit losses at 1.1% of total loans [12][16] - Management announced that Ron Farnsworth, the CFO, will be stepping down, with Ivan Shetta appointed as the new CFO [10][11] Q&A Session Summary Question: Insights on the buyback program and balance sheet optimization - Management indicated that the buyback program is a 12-month initiative, balancing capitalizing on valuation and maintaining flexibility for macroeconomic uncertainties [25][26] Question: Thoughts on recent activist investor presentations - Management acknowledged awareness of the presentation and reiterated their focus on consistent performance, capital returns, and the successful integration of Pacific Premier Bancorp [32][34] Question: Drivers behind strong deposit growth - Approximately 30% of the $800 million organic deposit growth came from new customers, with significant contributions from commercial and retail banking [38][39] Question: Outlook on loan growth and balance sheet optimization - Management expects to achieve around 5% annual loan growth while remixing the balance sheet to focus on higher-quality, relationship-based loans [51][52] Question: Expectations for net interest margin in the upcoming quarter - Management provided a range for net interest margin expectations, indicating stability with modest upside in Q4 [56][58]

3rd Quarter 2025 Earnings Presentation October 30, 2025 Disclaimer FORWARD-LOOKING STATEMENTS This communication may contain certain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements about the benefits of the acquisition of Pacific Premier Bancorp, Inc. ("Pacific Premier") by Columbia Banking System, Inc. ("Columbia") the plans, objectives, expectations and intentions of Columbia and other statements that are not historical facts. Such ...

Financial Performance - Net income for Q3 2025 was $96 million, with operating net income at $204 million, resulting in diluted earnings per share of $0.40 and operating earnings per share of $0.85[1] - Net income for Q3 2025 was $96 million, down 37% from $152 million in Q2 2025[28] - The company reported a net income of $335 million, down 14% from $390 million in the previous year[31] - Earnings per common share (basic and diluted) decreased by 18% year-over-year to $1.53[31] - Operating earnings per share (basic) was $0.86, a 12% increase from the previous quarter and a 25% increase year-over-year[61] - Net income (GAAP) for the quarter was $96 million, down 37% sequentially and 34% year-over-year[60] Revenue and Income Sources - Total interest income for Q3 2025 was $740 million, a 10% increase from $670 million in Q2 2025[28] - Non-interest income increased by $12 million to $77 million, driven by fair value adjustments and mortgage servicing rights hedging activity[14] - Total non-interest income was $77 million in Q3 2025, an 18% increase from $65 million in Q2 2025[28] - Non-interest income (GAAP) reached $77 million, reflecting an 18% increase from the previous quarter and a 17% increase year-over-year[60] - Total revenue (GAAP) for the quarter was $582 million, up 14% sequentially and 17% year-over-year[60] Assets and Liabilities - Total assets reached $67.5 billion, an increase from $51.9 billion in the previous quarter, primarily due to the acquisition of Pacific Premier[4] - Total assets grew by 30% year-over-year to $67,496 million, with loans and leases increasing by 29% to $48,462 million[33] - Total liabilities increased to $50,666 million as of September 30, 2025, compared to $46,265 million a year earlier, marking an increase of 9.2%[49] Deposits - Total deposits rose to $55.8 billion, up $14.0 billion from the prior quarter, with organic customer deposit growth of approximately $800 million[18] - Total deposits increased by 34% year-over-year to $55,771 million, with non-interest-bearing deposits rising by 35% to $17,810 million[33] - Demand, non-interest bearing deposits reached $17,810 million, up 35% sequentially and 32% year-over-year[39] Expenses - Non-interest expense rose by $115 million to $393 million, largely due to merger and restructuring expenses[15] - Total non-interest expense increased to $393 million in Q3 2025, a 41% rise from $278 million in Q2 2025[28] - Non-interest expense (GAAP) increased to $393 million, a 41% sequential increase and a 45% year-over-year increase[63] Credit Quality - The provision for credit losses was $70 million, reflecting the acquisition of Pacific Premier and adjustments to credit loss models[19] - Provision for credit losses rose significantly to $70 million in Q3 2025, compared to $30 million in Q2 2025, marking a 133% increase[28] - Non-performing assets totaled $199 million, or 0.29% of total assets, as of September 30, 2025, compared to $180 million, or 0.35% in the previous quarter[20] - The allowance for credit losses was $492 million, or 1.01% of loans and leases, compared to 1.17% in the previous quarter[19] - Net charge-offs were 0.22% of average loans and leases for Q3 2025, down from 0.31% in Q2 2025[20] Shareholder Returns - The Board of Directors authorized a $700 million share repurchase program to enhance capital return to shareholders[8] - Dividends per common share remained stable at $0.36 for the quarter ended September 30, 2025, unchanged from the previous year[34] Capital Position - Shareholders' equity rose by 46% year-over-year to $7,790 million, reflecting strong capital growth[33] - Total risk-based capital ratio increased to 13.4%, up from 13.0% in the previous quarter, indicating stronger capital position[34] - The tangible common shareholders' equity increased by 43% sequentially to $5,555 million as of September 30, 2025, from $3,883 million as of June 30, 2025[58] Operational Efficiency - Return on average assets (ROAA) decreased to 0.67%, down from 1.19% in the previous quarter and 1.10% a year ago[34] - Efficiency ratio rose to 67.29%, compared to 54.29% in the previous quarter and 54.61% a year ago, indicating increased operational costs[34] - Operating return on average tangible common equity increased to 18.24%, up from 16.85% in the previous quarter, showing improved operational efficiency[34]

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Core Insights - Columbia Banking System, Inc. reported a net income of $96 million for Q3 2025, with diluted earnings per share of $0.40, reflecting a strategic acquisition of Pacific Premier and strong core profitability despite acquisition-related impacts [1][7][33] - The company authorized a $700 million share repurchase program, indicating confidence in its capital generation and strategic direction [1][6][14] Financial Performance - Net interest income increased to $505 million, up $59 million from Q2 2025, driven by one month of combined operations and a favorable shift to lower-cost funding sources [7][14][18] - The net interest margin improved to 3.84%, a rise of 9 basis points from the previous quarter, supported by increased customer deposits and reduced reliance on higher-cost funding [2][15][16] - Non-interest income rose to $77 million, an increase of $12 million from Q2 2025, primarily due to fair value adjustments and one month of combined operations [8][18] Expenses and Credit Quality - Non-interest expenses surged to $393 million, up $115 million from the prior quarter, largely due to merger and restructuring costs [3][19] - The provision for credit losses was $70 million, reflecting the acquisition of Pacific Premier, with net charge-offs at 0.22% of average loans, down from 0.31% in the previous quarter [4][9][24] - Non-performing assets decreased to 0.29% of total assets, down from 0.35% as of June 30, 2025, indicating improved credit quality [4][24] Balance Sheet and Capital - Total assets reached $67.5 billion, up from $51.9 billion as of June 30, 2025, due to the acquisition [20] - Total deposits increased to $55.8 billion, a rise of $14 billion, driven by the acquisition and organic growth [22] - The book value per common share was $26.04, reflecting an increase from $25.41 as of June 30, 2025, supported by capital generation and the acquisition [25][26] Strategic Developments - The acquisition of Pacific Premier was completed on August 31, 2025, enhancing Columbia's market position in Southern California and completing its Western footprint [11][12] - The company began operating under a unified brand on September 1, 2025, streamlining its identity across various business lines [12]