Columbia Banking System(COLB) - 2025 Q3 - Quarterly Results

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]