Core Viewpoint - Columbia Banking System, Inc. reported strong second-quarter results for 2025, highlighting profitability, balance sheet optimization, and strategic growth initiatives, including the acquisition of Pacific Premier Bancorp, which is expected to close by September 1, 2025, pending regulatory approvals [2][7]. Financial Performance - Net interest income increased by $21 million to $446 million compared to the prior quarter, driven by higher interest income from loans and investment securities [3][9]. - The net interest margin rose to 3.75%, up 15 basis points from the previous quarter, benefiting from increased yields on investment securities and loans [3][10]. - Non-interest income decreased by $2 million to $64 million, but excluding fair value impacts, it increased by $8 million due to growth in core fee-generating businesses [3][11]. - Non-interest expense decreased significantly by $62 million to $278 million, primarily due to the absence of legal settlement and severance expenses from the previous quarter [3][12]. - Net income for the second quarter was $152 million, a substantial increase from $86.6 million in the prior quarter, resulting in earnings per share of $0.73, up from $0.41 [4][27]. Balance Sheet Highlights - Total assets increased to $51.9 billion from $51.5 billion in the prior quarter, with total deposits at $41.7 billion, down from $42.2 billion [6][13][16]. - Loans and leases remained stable at $37.6 billion, reflecting a 2% annualized growth in commercial loans, offset by a contraction in multifamily loans [6][14]. - The book value per common share rose to $25.41, and tangible book value per common share increased to $18.47 [6][19]. Credit Quality - The allowance for credit losses was $439 million, unchanged from the previous quarter, with net charge-offs at 0.31% of average loans and leases [17][18]. - Non-performing assets remained stable at 0.35% of total assets, indicating consistent credit quality [3][18]. Capital and Dividends - The estimated total risk-based capital ratio was 13.0%, and the common equity tier 1 risk-based capital ratio was 10.8%, both above regulatory minimums [5][20]. - A quarterly cash dividend of $0.36 per common share was declared and paid, maintaining consistent shareholder returns [5][6]. Strategic Initiatives - The company opened three new branches, expanding its footprint in Arizona and Eastern Oregon, enhancing service delivery in underserved areas [2][8]. - The acquisition of Pacific Premier Bancorp is progressing, with integration efforts underway to ensure a smooth transition post-approval [7].

Core Viewpoint - Columbia Banking System, Inc. has received all necessary shareholder approvals for its acquisition of Pacific Premier Bancorp, Inc., indicating strong support for the transaction and a positive outlook for market leadership and value creation [1][2]. Group 1: Acquisition Details - The acquisition is expected to enhance market leadership across the Western United States and create significant value for customers, communities, and shareholders [2]. - Both companies are preparing for a swift closing of the transaction following final regulatory approvals, which are anticipated to be completed later in 2025 [2][3]. Group 2: Company Profiles - Columbia Banking System, Inc. is headquartered in Tacoma, Washington, with over $50 billion in assets, and operates as Columbia Bank, providing a full suite of banking services across multiple states [4]. - Pacific Premier Bancorp, Inc. is based in California and has approximately $18 billion in total assets, focusing on serving small to middle-market businesses with a variety of banking products and services [5].

The market expects Columbia Banking (COLB) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be releas ...

Group 1 - The article discusses a class action investigation by Monteverde & Associates PC regarding the proposed merger between Columbia Banking System, Inc. and Pacific Premier Bancorp, Inc. [1] - Under the merger agreement, Pacific Premier stockholders will receive 0.9150 shares of Columbia common stock for each share of Pacific Premier they own [1]. - The shareholder vote for the merger is scheduled for July 21, 2025 [1]. Group 2 - Monteverde & Associates PC is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report and has recovered millions for shareholders [1]. - The firm operates from the Empire State Building in New York City and has a successful track record in class action securities litigation [2]. - The firm encourages shareholders with concerns to contact them for additional information free of charge [3].

Core Points - Columbia Banking System, Inc. will release its second quarter 2025 financial results on July 24, 2025, after market close [1] - A conference call for investors and analysts will take place at 2:00 p.m. PT (5:00 p.m. ET) on the same day, including a live Q&A session [1] - Columbia is the parent company of Umpqua Bank, which is the largest bank headquartered in the Northwest and has over $50 billion in assets [2] Company Overview - Columbia Banking System is headquartered in Tacoma, Washington, and operates Umpqua Bank, a regional bank in the western U.S. [2] - Umpqua Bank offers a full suite of services including retail and commercial banking, SBA lending, institutional and corporate banking, and equipment leasing [2] - The bank also provides investment and wealth management services through Columbia Wealth Advisors and Columbia Trust Company [2]

Core Viewpoint - Columbia Banking System, Inc. (NASDAQ: COLB) is initiated with a Strong Buy rating and a price target of $40, highlighting its position as a leading regional bank serving small and medium businesses, professionals, and individuals in the Pacific region [1] Group 1: Company Overview - Columbia Banking System, Inc. is recognized for providing comprehensive banking services tailored to small and medium enterprises, professionals, and individual clients [1] - The bank operates primarily in the Pacific region, indicating a focused geographical market strategy [1] Group 2: Research Methodology - Moretus Research employs a structured and repeatable framework to identify companies with sustainable business models and mispriced cash flow potential [1] - The research emphasizes rigorous fundamental analysis combined with a judgment-driven process, avoiding noise and overly complex forecasting [1] - Valuation methods are based on sector-relevant multiples that are tailored to each company's business model and capital structure, ensuring comparability and relevance [1] Group 3: Investment Philosophy - Moretus Research focuses on underappreciated companies experiencing structural changes or temporary dislocations, where careful analysis can yield asymmetric returns [1] - The research approach reflects a commitment to capital discipline and long-term compounding, aiming to elevate the standards of independent investment research [1]

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) The unaudited financial statements for the quarter ended March 31, 2025, show total assets of **$51.5 billion**, a slight decrease from year-end 2024, with net income of **$86.6 million** primarily impacted by a legal settlement expense, and a subsequent merger agreement announced [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The company's total assets stood at **$51.5 billion** as of March 31, 2025, a slight decrease from **$51.6 billion** at the end of 2024, with Q1 2025 net income at **$86.6 million** ($0.41 per diluted share) down from **$124.1 million** ($0.59 per diluted share) in Q1 2024, primarily due to higher non-interest expenses including a significant legal settlement, and cash flow from operations at **$122.0 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total cash and cash equivalents | $2,072,706 | $1,878,255 | | Net loans and leases | $37,194,606 | $37,256,272 | | Total assets | $51,519,266 | $51,576,397 | | Total deposits | $42,217,694 | $41,720,732 | | Total liabilities | $46,281,457 | $46,458,173 | | Total shareholders' equity | $5,237,809 | $5,118,224 | Condensed Consolidated Income Statement Highlights (in thousands, except per share) | Account | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net interest income | $424,995 | $423,362 | | Provision for credit losses | $27,403 | $17,136 | | Total non-interest income | $66,377 | $50,357 | | Total non-interest expense | $340,122 | $287,516 | | Net income | $86,609 | $124,080 | | Diluted EPS | $0.41 | $0.59 | Condensed Consolidated Cash Flow Highlights (in thousands) | Account | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $122,012 | $185,508 | | Net cash provided by (used in) investing activities | $250,245 | $(77,675) | | Net cash used in financing activities | $(177,806) | $(69,250) | | Net increase in cash and cash equivalents | $194,451 | $38,583 | [Note 2 – Debt Securities](index=11&type=section&id=Note%202%20%E2%80%93%20Debt%20Securities) As of March 31, 2025, the company held **$8.23 billion** in available-for-sale (AFS) debt securities at fair value, with mortgage-backed securities comprising the largest portion at **$5.83 billion**, and the portfolio had gross unrealized losses of **$482.4 million** primarily due to interest rate changes, not credit quality deterioration, thus requiring no allowance for credit losses Available for Sale Debt Securities (in thousands) | Security Type | Amortized Cost | Fair Value | | :--- | :--- | :--- | | U.S. Treasury and agencies | $1,426,351 | $1,373,033 | | Obligations of states and political subdivisions | $1,051,171 | $1,020,842 | | Mortgage-backed securities and CMOs | $6,204,692 | $5,834,930 | | **Total AFS securities** | **$8,682,214** | **$8,228,805** | - The company's debt securities had total unrealized losses of **$482.4 million** as of March 31, 2025, which management attributes to changes in interest rates and market spreads, not the credit quality of the issuers[21](index=21&type=chunk)[22](index=22&type=chunk) [Note 4 – Allowance for Credit Losses (ACL)](index=14&type=section&id=Note%204%20%E2%80%93%20Allowance%20for%20Credit%20Losses) The total Allowance for Credit Losses (ACL) was **$438.9 million** at March 31, 2025, a slight decrease from **$440.8 million** at year-end 2024, reflecting updated economic forecasts and model recalibrations, while non-accrual loans increased to **$122.4 million** from **$96.5 million** in the prior quarter, and loan modifications totaled **$54.0 million** in Q1 2025 - The total ACL decreased by **$1.9 million** to **$438.9 million** at March 31, 2025. The change reflects credit migration, updated economic assumptions, and model recalibrations[30](index=30&type=chunk) ACL Activity for Three Months Ended March 31, 2025 (in thousands) | Component | Beginning Balance (Dec 31, 2024) | Provision for Credit Losses | Net Charge-offs | Ending Balance (Mar 31, 2025) | | :--- | :--- | :--- | :--- | :--- | | Allowance for loans and leases | $424,629 | $26,187 | $(29,321) | $421,495 | | Reserve for unfunded commitments | $16,168 | $1,216 | N/A | $17,384 | | **Total ACL** | **$440,797** | **$27,403** | **$(29,321)** | **$438,879** | - Non-accrual loans increased to **$122.4 million** as of March 31, 2025, compared to **$96.5 million** at December 31, 2024[37](index=37&type=chunk)[38](index=38&type=chunk) [Note 7 – Commitments and Contingencies](index=28&type=section&id=Note%207%20%E2%80%93%20Commitments%20and%20Contingencies) The company disclosed significant legal proceedings, including a **$55.0 million** settlement for a class action lawsuit related to a Ponzi scheme, is defending multiple lawsuits consolidated into an MDL related to the MOVEit data breach, and as of March 31, 2025, had **$10.0 billion** in commitments to extend credit, with real estate loans representing **75%** of total loans - A Notice of Settlement was filed on March 27, 2025, for a class action lawsuit, contemplating a settlement payment of **$55.0 million** by the Bank. An accrual for this amount was recorded[67](index=67&type=chunk)[71](index=71&type=chunk) - The company is defending seven lawsuits, now consolidated into a multi-district litigation (MDL), arising from the MOVEit data breach incident reported by a third-party vendor[70](index=70&type=chunk) - Real estate-related loans represent a significant concentration of credit risk, comprising approximately **75%** of the total loan and lease portfolio as of March 31, 2025[75](index=75&type=chunk) [Note 13 – Subsequent Event](index=42&type=section&id=Note%2013%20%E2%80%93%20Subsequent%20Event) On April 23, 2025, Columbia Banking System, Inc. entered into a definitive merger agreement to acquire Pacific Premier Bancorp, Inc. in an all-stock transaction, where Pacific Premier stockholders will receive **0.9150** of a share of Columbia common stock for each Pacific Premier share, subject to shareholder and regulatory approvals - Announced a definitive agreement to acquire Pacific Premier Bancorp, Inc. in an all-stock transaction on April 23, 2025[126](index=126&type=chunk) - The merger will create a combined company with approximately **$70 billion** in assets. The closing is expected in the second half of 2025, pending customary approvals[126](index=126&type=chunk) [Management's Discussion and Analysis (MD&A)](index=43&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights a decrease in quarterly earnings to **$0.41** per diluted share, heavily impacted by a **$55.0 million** legal settlement accrual, with net interest margin stable at **3.60%**, strong liquidity of **$19.0 billion**, capital ratios exceeding 'well-capitalized' minimums, and a normalizing credit environment with increased non-performing assets but a stable ACL at **1.17%** of total loans [Financial Performance](index=45&type=section&id=Financial%20Performance) For Q1 2025, diluted EPS was **$0.41**, a decrease from **$0.68** in Q4 2024 and **$0.59** in Q1 2024, primarily due to a **$55.0 million** legal settlement and **$14.6 million** in severance expenses, while net interest margin (tax-equivalent) was **3.60%**, non-interest income increased to **$66.4 million**, and non-interest expense rose to **$340.1 million** Quarterly Financial Performance Comparison | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Diluted EPS | $0.41 | $0.68 | $0.59 | | Net Interest Margin (tax-equiv.) | 3.60% | 3.64% | 3.52% | | Non-interest Income | $66.4M | $49.7M | $50.4M | | Non-interest Expense | $340.1M | $266.6M | $287.5M | - The primary driver for the decrease in earnings compared to prior periods was a **$55.0 million** accrual for a legal settlement and **$14.6 million** in severance expense[137](index=137&type=chunk) [Financial Condition](index=56&type=section&id=Financial%20Condition) As of March 31, 2025, total assets were **$51.5 billion**, with total loans and leases decreasing slightly to **$37.6 billion** and total deposits growing to **$42.2 billion**, improving the loan-to-deposit ratio to **89%**, while non-performing assets increased to **0.35%** of total assets, and the company maintained a strong capital position with a CET1 ratio of **10.6%** and robust liquidity of **$19.0 billion** - Total loans and leases decreased by **$64.8 million** to **$37.6 billion**, while total deposits increased by **$497.0 million** to **$42.2 billion** from the prior quarter-end[181](index=181&type=chunk)[209](index=209&type=chunk) - Non-performing assets rose to **$178.0 million**, or **0.35%** of total assets, up from **$169.6 million** (**0.33%**) at year-end 2024, reflecting a normalization of the credit environment[140](index=140&type=chunk)[201](index=201&type=chunk) - The company's CET1 capital ratio was **10.6%** and its total risk-based capital ratio was **12.9%**, both exceeding 'well-capitalized' regulatory minimums[146](index=146&type=chunk)[226](index=226&type=chunk) - Total available liquidity was **$19.0 billion**, including **$15.0 billion** in off-balance sheet funding sources from the FHLB and Federal Reserve Discount Window[146](index=146&type=chunk)[218](index=218&type=chunk) [Credit Quality and Allowance for Credit Losses](index=61&type=section&id=Credit%20Quality%20and%20Allowance%20for%20Credit%20Losses) Asset quality showed signs of normalization with non-performing assets increasing to **$178.0 million** (**0.35%** of total assets), while the Allowance for Credit Losses (ACL) remained stable at **$438.9 million**, or **1.17%** of total loans, and the provision for credit losses for the quarter was **$27.4 million**, with net charge-offs of **$29.3 million** largely from the commercial portfolio Asset Quality Ratios | Ratio | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-performing assets to total assets | 0.35% | 0.33% | | Non-performing loans to total loans | 0.47% | 0.44% | | ACL to total loans and leases | 1.17% | 1.17% | - The ACL decreased by **$1.9 million** to **$438.9 million**, with changes reflecting credit migration, updated economic forecasts, and model recalibrations[202](index=202&type=chunk) - Net charge-offs for Q1 2025 were **$29.3 million**, or **0.32%** of average loans, an increase from **$25.7 million** (**0.27%**) in Q4 2024[160](index=160&type=chunk) [Market Risk Disclosures](index=69&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's market risk profile has not materially changed, with interest rate simulation modeling showing limited exposure of Net Interest Income (NII) to rate changes (less than **1%** impact in plausible downward rate scenarios), and Economic Value of Equity (EVE) analysis indicating a liability-sensitive profile Net Interest Income Sensitivity (Year 1) | Rate Shock | Impact on NII (Mar 31, 2025) | | :--- | :--- | | Up 200 bps | (0.7)% | | Up 100 bps | (0.3)% | | Down 100 bps | 0.3% | | Down 200 bps | 1.0% | Economic Value of Equity (EVE) Sensitivity | Rate Shock | Impact on EVE (Mar 31, 2025) | | :--- | :--- | | Up 200 bps | (8.2)% | | Up 100 bps | (4.1)% | | Down 100 bps | 3.8% | | Down 200 bps | 6.5% | [Controls and Procedures](index=70&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures are effective as of March 31, 2025[235](index=235&type=chunk) - No material changes to internal control over financial reporting occurred during the first quarter of 2025[236](index=236&type=chunk) [Part II. Other Information](index=71&type=section&id=Part%20II.%20OTHER%20INFORMATION) [Risk Factors](index=71&type=section&id=Item%201A.%20Risk%20Factors) The company introduced new risk factors related to its announced merger with Pacific Premier, including the possibility of non-completion due to regulatory or shareholder approval failures, potential adverse conditions imposed by regulators, challenges and costs of integration, loss of key personnel, business uncertainties during the pending merger, and the threat of shareholder litigation - The merger with Pacific Premier is subject to numerous conditions, including regulatory and shareholder approvals, which may not be fulfilled, potentially leading to the termination of the agreement[239](index=239&type=chunk)[240](index=240&type=chunk) - Regulatory approvals could be delayed or impose conditions that adversely affect the combined company's revenues or expected benefits from the merger[241](index=241&type=chunk)[242](index=242&type=chunk) - Integrating the two companies could be more difficult, costly, or time-consuming than expected, potentially leading to the loss of key employees, customer disruption, and failure to realize anticipated cost savings[245](index=245&type=chunk) [Share Repurchases](index=74&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of 2025, the company repurchased **249,856** shares of its common stock at an average price of **$26.98** per share, solely to satisfy withholding tax obligations upon the vesting of restricted stock units, as the company does not currently have a publicly announced share repurchase authorization Common Stock Repurchases (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 2025 | 24,206 | $27.01 | | Feb 2025 | 85,713 | $27.41 | | Mar 2025 | 139,937 | $26.71 | | **Total** | **249,856** | **$26.98** | - All shares repurchased during the quarter were to pay withholding taxes on vested restricted stock units and awards; the company does not have a current share repurchase plan[251](index=251&type=chunk)

Financial Data and Key Metrics Changes - The company reported first quarter EPS of $0.41 and operating EPS of $0.67, excluding a legal settlement of $55 million and other expenses [28][32] - The operating return on tangible equity was 15%, with operating pre-provision net revenue (PPNR) at $212 million [28][32] - Net interest margin (NIM) contracted by four basis points to 3.6% due to seasonal deposit flows [30][32] Business Line Data and Key Metrics Changes - Loan origination volume increased by 17% compared to Q1 2024, although total loan balances remained flat due to higher prepayment and payoff activity [9][10] - Noninterest income for the quarter was $66 million, with operating noninterest income at $56.9 million, up $2 million from the previous quarter [31][32] Market Data and Key Metrics Changes - The company achieved $440 million in net customer deposit growth during the first quarter, driven by small business and retail campaigns [9][30] - The overall allowance for credit losses was robust at 1.17% of total loans [30] Company Strategy and Development Direction - The acquisition of Pacific Premier Bancorp will create a $70 billion asset franchise and enhance the company's product offerings [12][16] - The company aims to optimize financial performance and drive long-term shareholder value, with a focus on relationship banking [7][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties and market volatility, emphasizing a conservative and disciplined approach to banking [23][24] - The acquisition is expected to accelerate organic growth opportunities and enhance capital generation capabilities [25][42] Other Important Information - The acquisition will not require additional capital, and the combined organization will operate under the unified brand of Columbia Bank [17][18] - The transaction is expected to result in approximately $127 million in pretax cost savings, with 75% of savings phased in during 2026 [35][39] Q&A Session Summary Question: What experience from the Umpqua deal can be applied to this deal? - Management highlighted their extensive M&A experience, noting that both organizations have completed multiple acquisitions, which provides confidence in handling surprises during integration [47][48] Question: Are there any expenses related to preparing for crossing the $100 billion threshold? - Management indicated that while there is a roadmap for preparing for the $100 billion mark, there will not be a significant ramp-up in expenses [56][58] Question: Where do you see the most opportunity to add value from Pacific Premier's core competencies? - Management expressed excitement about accelerating growth in Southern California and leveraging Pacific Premier's strengths in HOA banking and custodial trust services [68][72] Question: How comfortable is the company with underwriting credit in the current environment? - Management emphasized the strong credit performance of Pacific Premier and the alignment of credit cultures between the two companies, providing confidence in underwriting practices [87][90] Question: What are the financial targets on a pro forma basis? - Management acknowledged that while there may be variability in achieving targets due to market conditions, they remain optimistic about delivering top-tier performance [105][106] Question: Will the acquisition impact potential buybacks? - Management indicated that while capital actions are expected in 2025, the focus will be on closing the deal and assessing capital ratios before considering buybacks [108][110] Question: How long was the courting process for the transaction? - Management noted that discussions began in earnest at the start of the year, with a disciplined approach taken despite market volatility [121][126] Question: What is the methodology behind the credit mark for Pacific Premier? - Management explained that the credit mark was based on extensive due diligence and aligned with the conservative credit culture of both companies [130][132]

Group 1 - Monteverde & Associates PC is investigating Columbia Banking System, Inc. in relation to its proposed merger with Pacific Premier Bancorp, Inc. [1] - Under the merger agreement, Pacific Premier stockholders will receive 0.9150 shares of Columbia common stock for each share of Pacific Premier they own [1] - Monteverde & Associates PC has a successful track record in recovering millions for shareholders and is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report [1][2] Group 2 - The firm operates from the Empire State Building in New York City and is a national class action securities firm [2] - Monteverde & Associates PC emphasizes that no company, director, or officer is above the law, and encourages shareholders with concerns to reach out for additional information [3] - The firm has a history of litigating and recovering money for shareholders, including cases that have reached the U.S. Supreme Court [2][4]

Financial Performance - Net income for Q1 2025 was $87 million, with earnings per diluted common share at $0.41, down from $0.67 in Q4 2024[1] - Net income for the quarter was $86,609,000, reflecting a 40% decrease from $143,269,000 in the prior quarter[27] - Earnings per common share (basic) fell to $0.41, down 41% from $0.69 in the previous quarter[27] - Net interest income decreased by $12 million to $425 million, with a net interest margin of 3.60%, down 4 basis points from the previous quarter[8][9] - Net interest income was $424,995,000, a 3% decrease from $437,373,000 in the prior quarter[27] - Non-interest income rose to $66 million, an increase of $17 million from the prior quarter, primarily due to fair value adjustments[10] - Non-interest income increased by 33% year-over-year to $66,377,000, compared to $49,747,000 in the same quarter last year[27] - Non-interest expense increased by $74 million to $340 million, including a $55 million legal settlement accrual[11] - Total non-interest expense rose by 28% sequentially to $340,122,000, up from $266,576,000 in the previous quarter[27] - The efficiency ratio rose to 69.06%, up from 54.61% in the previous quarter, indicating a decline in operational efficiency[30] - Return on average assets (ROAA) decreased to 0.68%, down from 1.10% in the previous quarter, showing a decline in profitability[30] - Operating revenue (non-GAAP) was $481,915, a 2% decrease sequentially but a 1% increase year-over-year[46] - Operating net income (non-GAAP) decreased to $139,773, reflecting a 7% decline sequentially and a 4% increase year-over-year[46] Asset and Deposit Growth - Total deposits increased by $497 million to $42.2 billion, driven by strong customer deposit growth in March[15] - Total deposits increased to $42,217,694 as of March 31, 2025, reflecting a 1% sequential increase and a 1% year-over-year increase[32] - Demand, non-interest bearing deposits rose to $13,413,927, a 1% increase sequentially but a 3% decrease year-over-year[32] - Core deposits reached $38,079,274, marking a 2% sequential increase and a 2% year-over-year increase[32] - Total consolidated assets were $51.5 billion, slightly down from $51.6 billion in the previous quarter[12] - Total assets decreased slightly to $51,519,266, showing no change sequentially and a 1% decline year-over-year[44] Credit Quality and Loss Provisions - The provision for credit losses was $27 million, with net charge-offs at 0.32% of average loans and leases, up from 0.27% in the previous quarter[16][17] - Provision for credit losses was $27,403,000, a 3% decrease from $28,199,000 in the prior quarter[27] - Non-performing loans and leases to total loans increased to 0.47%, up from 0.44% in the previous quarter, indicating a slight deterioration in asset quality[30] - Total non-performing assets increased to $177,996 thousand, a 5% sequential increase and a 24% year-over-year increase[35] - Total charge-offs amounted to $34,113 thousand, representing a 13% increase sequentially and a 31% decrease year-over-year[37] - Net charge-offs totaled $29,321 thousand, a 14% increase sequentially and a 33% decrease year-over-year[37] Capital Ratios and Shareholder Equity - Columbia's book value per common share increased to $24.93 as of March 31, 2025, up from $24.43 as of December 31, 2024[18] - The tangible book value per common share rose to $17.86 as of March 31, 2025, compared to $17.20 at the end of the previous quarter[18] - The estimated common equity tier 1 risk-based capital ratio was 10.6% as of March 31, 2025, slightly up from 10.5% as of December 31, 2024[18] - Total shareholders' equity increased to $5,237,809, reflecting a 2% sequential growth and a 6% year-over-year increase[44] - Total risk-based capital ratio remained stable at 12.8%, reflecting strong capital adequacy[30] Strategic Initiatives and Acquisitions - The company announced an acquisition of Pacific Premier Bancorp, expected to close in the second half of 2025, enhancing market presence in Southern California[6] - Columbia Banking System, Inc. will discuss its first quarter 2025 financial results during a joint conference call on April 23, 2025[21] - The company emphasizes its commitment to developing and marketing new products and technology as part of its growth strategy[24] - The company is in the process of a proposed business combination with Pacific Premier Bancorp, with expectations for completion subject to various risks and uncertainties[56] - The merger transaction is subject to regulatory approvals and shareholder votes, with necessary filings to be made with the SEC[59] - Management's attention may be diverted from ongoing operations due to the merger process, potentially affecting business opportunities[57] Market and Economic Conditions - Columbia's management anticipates potential risks including economic conditions and changes in interest rates that could impact future performance[24] - Potential risks include changes in economic conditions, interest rate fluctuations, and competitive pressures that could impact the merger's success[57]