Columbia Banking System(US:COLB)2026-01-22 22:24Financial Performance - Net income for Q4 2025 was $215 million, down from $243 million in Q3 2025, with diluted earnings per share at $0.72 compared to $0.82 in the prior quarter[2]. - Net income for Q4 2025 was $215 million, a 124% increase from $96 million in Q3 2025[29]. - Earnings per common share (diluted) was $0.72 for Q4 2025, an 80% increase from $0.40 in Q3 2025[29]. - Net income for the year was $550 million, a 3% increase compared to the previous year[32]. - Earnings per common share (diluted) decreased by 10% to $2.30, reflecting the impact of increased expenses and provisions[32]. - Total revenue (GAAP) reached $717 million, up 23% sequentially and 47% year-over-year[60]. - Operating net income (non-GAAP) increased by 31% to $746 million from $568 million year-over-year[65]. Income and Expenses - Net interest income increased by $122 million to $627 million in Q4 2025, driven by two additional months of combined operations and a favorable funding mix[5][10]. - Non-interest income was $90 million, an increase of $13 million from the previous quarter, with customer fee income contributing significantly to the growth[5][14]. - Total non-interest income was $90 million in Q4 2025, reflecting a 17% increase from $77 million in Q3 2025[29]. - Total non-interest expense increased to $412 million in Q4 2025, a 5% increase from $393 million in Q3 2025[29]. - Total non-interest expense increased by 29% to $1,423 million, primarily due to higher salaries and employee benefits (up 14%) and merger and restructuring expenses[32]. - Operating non-interest expense (non-GAAP) was reported at $1,220 million, a 14% increase from $1,071 million in 2024[68]. Assets and Liabilities - Total assets decreased to $66.8 billion as of December 31, 2025, from $67.5 billion at the end of Q3 2025, reflecting balance sheet optimization[5][16]. - Total assets grew to $67.114 billion as of December 31, 2025, compared to $56.823 billion a year earlier, marking a year-over-year increase of 18.9%[49]. - Total deposits were $54.2 billion, a decrease from $55.8 billion in Q3 2025, attributed to intentional reductions in brokered deposits and seasonal factors[5][18]. - Total deposits grew by 30% to $54,211 million, with non-interest-bearing deposits increasing by 31%[33]. - Total risk-based capital ratio increased to 13.6%, up 0.20% sequentially and 0.80% year-over-year[35]. Credit Quality - The allowance for credit losses (ACL) was $485 million, or 1.02% of loans and leases, as of December 31, 2025, compared to $492 million, or 1.01% as of September 30, 2025[19]. - Net charge-offs were 0.25% of average loans and leases (annualized) for Q4 2025, up from 0.22% in Q3 2025, with total net charge-offs of $30 million in Q4 compared to $22 million in Q3[21]. - Non-performing assets totaled $200 million, or 0.30% of total assets, as of December 31, 2025, compared to $199 million, or 0.29% as of September 30, 2025[21]. - The provision for credit losses decreased to $23 million in Q4 2025, down 67% from $70 million in Q3 2025[29]. - The allowance for credit losses on loans and leases (ACLLL) increased to $485 million as of December 31, 2025, reflecting a 10% year-over-year growth from $441 million[48]. Shareholder Returns - The company declared a quarterly cash dividend of $0.37 per common share, paid on December 15, 2025[5][6]. - Dividends per share increased to $0.37, reflecting a 3% sequential and year-over-year growth[35]. - Columbia's book value per common share increased to $26.54 as of December 31, 2025, from $26.04 as of September 30, 2025[22]. - Book value per share rose to $26.54, a 2% increase sequentially and 9% year-over-year[35]. Operational Efficiency - Return on average assets (ROAA) improved to 1.27%, up 0.60% sequentially and 0.17% year-over-year[35]. - Efficiency ratio decreased to 57.30%, showing a 9.99% improvement sequentially and 2.69% year-over-year[35]. - The efficiency ratio improved to 61.68%, up from 57.14% in the previous year, indicating a decline in operational efficiency[68].