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]
Columbia Banking System(COLB) - 2025 Q1 - Quarterly Results