Financial Data and Key Metrics Changes - The company's second quarter operating results increased by 14% compared to the same quarter last year, driven by profitability focus and operational efficiency initiatives [5][6] - Earnings per share (EPS) for the second quarter was reported at $0.73, with operating EPS at $0.76, reflecting a strong performance [16] - The net interest margin (NIM) expanded by 15 basis points to 3.75%, attributed to rising earning asset yields and lower costs of interest-bearing liabilities [17][18] - The tangible book value per share increased by 3%, and regulatory capital ratios improved, with Tier one common at 10.8% and total risk-based capital ratio at 13% [18] Business Line Data and Key Metrics Changes - The loan portfolio saw slight growth, with commercial loan growth offsetting a decline in transactional real estate loans [6] - Core fee income increased significantly, with operating non-interest income up by $8 million or 14% from the previous quarter, driven by strong growth in card-based fees and other banking services [19][22] - Deposit balances declined due to seasonal activities, but a recent campaign generated over $450 million in new core deposits [21] Market Data and Key Metrics Changes - The company noted macroeconomic uncertainties affecting customer borrowing behavior, with some companies opting to use cash for investments or debt repayment [7] - The integration of Pacific Premier is expected to enhance the company's market presence and operational capabilities, particularly in technology and fee income generation [12][23] Company Strategy and Development Direction - The company is focused on profitability and credit quality over mere growth, emphasizing a disciplined approach to business operations [6][8] - The upcoming acquisition of Pacific Premier is a strategic priority, with integration planning on track and expected to close by September 1 [9][26] - Investment in technology and human capital is a key focus, with ongoing enhancements to AI capabilities and leadership development initiatives [10][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about navigating the current economic environment and capitalizing on strategic opportunities, including the Pacific Premier acquisition [8][25] - The company is committed to enhancing long-term shareholder value and optimizing financial performance [25][26] Other Important Information - The company unified its brand under the Columbia name, with Umpqua Bank changing its legal name to Columbia Bank effective July 1 [14] - The company is actively expanding its branch network, with new locations opened in Arizona and Eastern Oregon [23][24] Q&A Session Summary Question: What is driving the increase in loan originations? - Management indicated that the increase is due to a combination of client demand and improved productivity among bankers, with strong activity levels noted in commercial lending [31][34] Question: What are the plans for optimizing Pacific Premier's balance sheet? - Management plans to take advantage of day one fair value marks and has already made some pre-purchase adjustments to securities [38] Question: What initiatives are in place to increase fee revenue contributions? - The company has been focusing on full relationship banking and has seen significant year-over-year growth in various fee income lines, including treasury management and merchant services [42][44] Question: What is the outlook for deposit growth and pricing strategy? - Management noted that deposit growth has been seasonal, with a focus on winning new accounts and maintaining competitive pricing [55][58] Question: What is the appetite for cleaning up the capital stack? - Management expressed a strong desire to maintain a clean capital stack and optimize it, especially with the expected excess capital generation from the Pacific Premier acquisition [60]

Financial Data and Key Metrics Changes - The company's second quarter operating results increased by 14% compared to the same quarter last year, driven by profitability focus and operational efficiency initiatives [5][6] - Earnings per share (EPS) for the second quarter was reported at $0.73, with operating EPS at $0.76, excluding merger and restructuring expenses [16] - The net interest margin (NIM) expanded by 15 basis points to 3.75%, attributed to rising earning asset yields and lower costs of interest-bearing liabilities [17][18] - The tangible book value per share increased by 3%, while regulatory capital ratios improved, with Tier one common at 10.8% and total risk-based capital ratio at 13% [17][24] Business Line Data and Key Metrics Changes - The loan portfolio saw slight growth, with commercial loan growth offsetting a decline in transactional real estate loans [6] - Non-interest income for the quarter was $64.5 million, with operating non-interest income up by $8 million or 14%, reflecting strong core fee income growth [18][21] - The company reported modest growth in small business deposits, while overall commercial and consumer balances contracted due to seasonal tax payments and customer cash utilization [20] Market Data and Key Metrics Changes - Deposit balances declined due to seasonal activities such as tax payments and owner distributions, indicating a shift in customer behavior towards using cash for investments and debt repayment [7][20] - The company experienced a successful campaign that generated over $450 million in new core deposits, offsetting other balance declines [20] Company Strategy and Development Direction - The company is focused on profitability and credit quality over growth for growth's sake, emphasizing a disciplined approach to business [6][24] - The upcoming acquisition of Pacific Premier is a strategic priority, with integration planning on track and expected to enhance capital generation capabilities [8][24] - Investment in technology and AI capabilities remains a priority, with ongoing evaluations of fintech partnerships and legislative changes surrounding stablecoin [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current macroeconomic uncertainty and capitalizing on strategic opportunities [8] - The company is optimistic about future growth prospects, particularly in new markets and through the integration of Pacific Premier [12][24] - Management highlighted the importance of relationship-driven banking and the potential for revenue synergy opportunities from the Pacific Premier acquisition [21][22] Other Important Information - The company is unifying its brand under the Columbia name, with Umpqua Bank changing its legal name to Columbia Bank effective July 1 [14] - The company is investing in its workforce and leadership development, with an expanded internship program and new CHRO appointment [13] Q&A Session Summary Question: What is driving the increase in loan originations? - Management indicated that the increase is a combination of client demand and improved productivity from bankers, with strong activity levels in commercial lending [29][32] Question: What are the plans for optimizing Pacific Premier's balance sheet? - Management mentioned pre-purchase of securities to better fit the portfolio and plans to sell some securities in the Pacific Premier book [34][36] Question: What initiatives are in place to increase fee revenue contributions? - Management highlighted several initiatives, including predictive analytics programs and a focus on full relationship banking, resulting in significant year-over-year growth in various fee income lines [40][42] Question: What is the outlook for deposit growth and pricing strategy? - Management noted that deposit growth has been seasonal, with a focus on winning new accounts and maintaining competitive pricing [53][56] Question: What is the appetite for cleaning up the capital stack from legacy Umpqua? - Management expressed a strong preference for a clean capital stack and indicated that the acquisition of Pacific Premier would provide flexibility to optimize the capital structure [58]

Financial Performance Highlights - The company's reported net income for the second quarter of 2025 was $152 million, with an operating net income of $160 million[42] - Pre-Provision Net Revenue (PPNR) for Q2 2025 was $233 million (reported) and $242 million (operating)[42] - The company's Return on Assets (ROA) was 1.19% (reported) and 1.25% (operating) for Q2 2025[42] - The Return on Tangible Common Equity was 16.03% (reported) and 16.85% (operating) for Q2 2025[42] - Net interest margin increased 15 basis points from the prior quarter to 3.75% for Q2 2025[88] Balance Sheet and Loan Portfolio - Total assets were $52 billion, loans were $38 billion, and deposits were $42 billion as of June 30, 2025[9] - Deposits were $42 billion as of June 30, 2025, with an average customer account balance of $36 thousand[46] - The total available-for-sale (AFS) securities portfolio had a book yield of 3.70% and an effective duration of 5.0 as of June 30, 2025[51] - Loans secured by office properties represented 8% of the total loan portfolio as of June 30, 2025[74] Acquisition of Pacific Premier Bancorp - The acquisition of Pacific Premier Bancorp is expected to close as early as September 1, 2025, creating a company with ~$70 billion in assets[31] - Pacific Premier stockholders will receive 0.9150 of a Columbia share for each Pacific Premier share in a 100% common stock transaction[31] - The acquisition is expected to be 14% accretive to 2026E EPS[31]

Executive Summary & Highlights Columbia Banking System achieved strong Q2 2025 profitability, improved net interest margin, and stable credit quality, while advancing strategic growth initiatives [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Clint Stein highlighted Q2 2025 results reflecting a focus on profitability and balance sheet optimization, driven by commercial loan growth, improved net interest margin, and expense discipline, alongside acquisition and branch expansion progress - The second quarter results demonstrate a focus on **profitability** and **balance sheet optimization**[1](index=1&type=chunk) - **Commercial loan growth** outpaced runoff in transactional portfolios, and **net interest margin** benefited from loan repricing, controlled deposit pricing, and a rebound in securities yields[1](index=1&type=chunk) - Continued **expense discipline** supported strong performance, even with reinvestment in the growing franchise and planning for the Pacific Premier acquisition[1](index=1&type=chunk) - **Customer deposits declined** due to normal seasonal activity and increased cash usage, but the 'Business Bank of Choice' strategy continues to attract new relationships[1](index=1&type=chunk) [Q2 2025 Highlights](index=2&type=section&id=2Q25%20Highlights) Q2 2025 saw a significant increase in net interest income and net interest margin, a decrease in non-interest expense due to non-recurring items, stable credit quality metrics, and strong capital ratios, alongside branch expansion and new deposit attraction - **Net interest income increased by $21 million** from the prior quarter, driven by higher interest income on loans and investment securities and relatively stable funding costs[3](index=3&type=chunk) - **Net interest margin (NIM) was 3.75%**, up **15 basis points** from the prior quarter, as asset yields increased and the cost of interest-bearing liabilities decreased by 2 basis points[3](index=3&type=chunk) - **Non-interest expense decreased by $62 million**, primarily due to a legal settlement and severance expense in the first quarter that did not repeat[3](index=3&type=chunk) - **Net charge-offs were 0.31%** of average loans and leases (annualized), compared to 0.32% in the prior quarter, indicating **stable credit quality**[3](index=3&type=chunk) - Estimated **total risk-based capital ratio was 13.0%** and estimated **common equity tier 1 risk-based capital ratio was 10.8%**[3](index=3&type=chunk) - A small business and retail campaign brought over **$450 million in new deposits** and generated new SBA lending relationships[3](index=3&type=chunk) - Opened **two new branches in Arizona** and **one in Eastern Oregon**, strengthening support for bankers and customers[3](index=3&type=chunk) [Q2 2025 Key Financial Data Summary](index=2&type=section&id=2Q25%20Key%20Financial%20Data%20Summary) Columbia Banking System reported strong financial performance in Q2 2025, with net income of $152 million and diluted EPS of $0.73, significantly up from the prior quarter, with key metrics like Return on Average Assets and Net Interest Margin also showing substantial improvement | Metric | 2Q25 | 1Q25 | 2Q24 | | :--------------------------------- | :----- | :----- | :----- | | Net income ($ thousands) | $152,423 | $86,609 | $120,144 | | Earnings per common share - diluted | $0.73 | $0.41 | $0.57 | | Operating earnings per common share - diluted | $0.76 | $0.67 | $0.67 | | Net interest income ($ thousands) | $446,446 | $424,995 | $427,449 | | Net interest margin | 3.75% | 3.60% | 3.56% | | Return on average assets | 1.19% | 0.68% | 0.93% | | Return on average common equity | 11.56% | 6.73% | 9.85% | | Efficiency ratio | 54.29% | 69.06% | 59.02% | | Total assets ($ billions) | $51.9 | $51.5 | $52.0 | | Loans and leases ($ billions) | $37.6 | $37.6 | $37.7 | | Deposits ($ billions) | $41.7 | $42.2 | $41.5 | | Book value per common share | $25.41 | $24.93 | $23.76 | | Tangible book value per common share | $18.47 | $17.86 | $16.26 | Organizational Update Columbia Banking System is progressing with the Pacific Premier acquisition and expanding its branch network to strengthen customer support and attract new relationships [Pacific Premier Acquisition](index=3&type=section&id=Pacific%20Premier%20Acquisition) Columbia Banking System is on track to acquire Pacific Premier Bancorp, Inc., with shareholder approval secured and an anticipated closing date as soon as September 1, 2025, pending regulatory approvals, while integration efforts are progressing smoothly - Shareholders of both Columbia Banking System and Pacific Premier Bancorp, Inc. **overwhelmingly approved the combination** at their respective special meetings on July 21, 2025[6](index=6&type=chunk) - The transaction is anticipated to **close as soon as September 1, 2025**, pending regulatory approvals and satisfaction of other customary closing conditions[6](index=6&type=chunk) - **Integration efforts are progressing as planned**, driven by comprehensive preparation of cross-company teams led by Columbia's Integration Management Office[6](index=6&type=chunk) [Branch Network Expansion](index=3&type=section&id=Branch%20Network%20Expansion) Columbia expanded its physical footprint by opening two new branches in Arizona (Phoenix and Mesa) and one in Eastern Oregon, aiming to strengthen support for existing customers and attract new relationships in both metropolitan and underserved rural communities - Columbia expanded its Arizona footprint with the opening of its **second branch in Phoenix** and its **first in Mesa**, bringing the total number of branches in the state to four[7](index=7&type=chunk) - A branch was also opened in **Eastern Oregon**, restoring essential banking services to a bank-less rural community[7](index=7&type=chunk) - The branch strategy encompasses thriving metropolitan areas and core community markets, supporting bankers and strengthening opportunities to bring new relationships[7](index=7&type=chunk) Financial Performance Analysis (Narrative) Q2 2025 financial performance was driven by increased net interest income and margin, a slight non-interest income decrease, and a significant non-interest expense reduction [Net Interest Income and Margin](index=3&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income increased by $21 million quarter-over-quarter to $446 million, driven by higher interest income from loans and investment securities and stable funding costs, with net interest margin improving by 15 basis points to 3.75% due to increased asset yields and a slight decrease in interest-bearing liability costs - **Net interest income was $446 million** for Q2 2025, up **$21 million** from the prior quarter[8](index=8&type=chunk) - The increase reflects higher interest income earned on loans and investment securities and relatively stable funding costs[8](index=8&type=chunk) - **Net interest margin was 3.75%** for Q2 2025, up **15 basis points** from 3.60% in Q1 2025[9](index=9&type=chunk) - The yield on taxable investment securities increased to **4.22%** (from 3.72%), and the average yield on the loan portfolio increased by **8 basis points to 6.00%**[9](index=9&type=chunk) - The cost of interest-bearing deposits was unchanged at **2.52%**, and the cost of interest-bearing liabilities decreased **2 basis points to 2.78%**[9](index=9&type=chunk) [Non-Interest Income](index=3&type=section&id=Non-Interest%20Income) Non-interest income decreased by $2 million to $64 million in Q2 2025, primarily due to fair value adjustments and mortgage servicing rights hedging activity, but excluding these volatile items, non-interest income increased by $8 million, driven by higher card-based fees and growth in other core fee-generating businesses - **Non-interest income was $64 million** for Q2 2025, down **$2 million** from the prior quarter[10](index=10&type=chunk) - The decrease was driven by quarterly changes in fair value adjustments and mortgage servicing rights (MSR) hedging activity, resulting in a **net fair value loss of $1 million** in Q2 compared to a $9 million gain in Q1[10](index=10&type=chunk) - Excluding these items, non-interest income was up **$8 million**, primarily due to higher card-based fee income and growth in other core fee-generating businesses like swap-related income, financial services, trust revenue, and treasury management fees[10](index=10&type=chunk) [Non-Interest Expense](index=3&type=section&id=Non-Interest%20Expense) Non-interest expense significantly decreased by $62 million to $278 million in Q2 2025, primarily because a $55 million legal settlement accrual and $15 million severance expense from Q1 did not recur, with operating non-interest expense seeing a slight decrease of $1 million when excluding these and other non-recurring items - **Non-interest expense was $278 million** for Q2 2025, down **$62 million** from the prior quarter[11](index=11&type=chunk) - The decrease was primarily due to a **$55 million accrual related to a legal settlement** and **$15 million in severance expense** in the first quarter, which did not repeat[11](index=11&type=chunk) - Excluding the legal settlement, exit and disposal costs, and merger and restructuring expense, non-interest expense was **$269 million**, down **$1 million** from the prior quarter[11](index=11&type=chunk) Balance Sheet Analysis (Narrative) Total consolidated assets increased to $51.9 billion, with stable loans, decreased deposits, and increased borrowings, while available liquidity remained strong [Total Assets and Liquidity](index=3&type=section&id=Total%20Assets%20and%20Liquidity) Total consolidated assets increased to $51.9 billion as of June 30, 2025, from $51.5 billion in

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]