COLUMBIA BANKING SYSTEM, INC. REPORTS THIRD QUARTER 2025 RESULTS

Core Insights - Columbia Banking System, Inc. reported a net income of $96 million for Q3 2025, with diluted earnings per share of $0.40, reflecting a strategic acquisition of Pacific Premier and strong core profitability despite acquisition-related impacts [1][7][33] - The company authorized a $700 million share repurchase program, indicating confidence in its capital generation and strategic direction [1][6][14] Financial Performance - Net interest income increased to $505 million, up $59 million from Q2 2025, driven by one month of combined operations and a favorable shift to lower-cost funding sources [7][14][18] - The net interest margin improved to 3.84%, a rise of 9 basis points from the previous quarter, supported by increased customer deposits and reduced reliance on higher-cost funding [2][15][16] - Non-interest income rose to $77 million, an increase of $12 million from Q2 2025, primarily due to fair value adjustments and one month of combined operations [8][18] Expenses and Credit Quality - Non-interest expenses surged to $393 million, up $115 million from the prior quarter, largely due to merger and restructuring costs [3][19] - The provision for credit losses was $70 million, reflecting the acquisition of Pacific Premier, with net charge-offs at 0.22% of average loans, down from 0.31% in the previous quarter [4][9][24] - Non-performing assets decreased to 0.29% of total assets, down from 0.35% as of June 30, 2025, indicating improved credit quality [4][24] Balance Sheet and Capital - Total assets reached $67.5 billion, up from $51.9 billion as of June 30, 2025, due to the acquisition [20] - Total deposits increased to $55.8 billion, a rise of $14 billion, driven by the acquisition and organic growth [22] - The book value per common share was $26.04, reflecting an increase from $25.41 as of June 30, 2025, supported by capital generation and the acquisition [25][26] Strategic Developments - The acquisition of Pacific Premier was completed on August 31, 2025, enhancing Columbia's market position in Southern California and completing its Western footprint [11][12] - The company began operating under a unified brand on September 1, 2025, streamlining its identity across various business lines [12]