COLUMBIA BANKING SYSTEM, INC. REPORTS SECOND QUARTER 2025 RESULTS

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].