COLUMBIA BANKING SYSTEM, INC. REPORTS FOURTH QUARTER 2025 RESULTS

Core Insights - Columbia Banking System, Inc. reported strong financial performance for Q4 2025, with net income of $215 million and diluted earnings per share of $0.72, reflecting a significant increase from the previous quarter [1][5][28] - The company experienced a net interest income increase of $122 million, driven by favorable funding mix and two additional months of combined operations following the acquisition of Pacific Premier [3][9][10] - The net interest margin improved to 4.06%, up 22 basis points from the prior quarter, benefiting from lower funding costs and an increase in customer deposits [2][10][11] Financial Performance - Net interest income reached $627 million, a 24% increase sequentially, while non-interest income rose to $90 million, up 17% from the previous quarter [5][13] - Non-interest expense increased by $19 million to $412 million, primarily due to the integration of Pacific Premier, although lower merger expenses partially offset this rise [14] - The provision for credit losses was significantly reduced to $23 million from $70 million in the prior quarter, indicating improved credit quality [18][19] Balance Sheet Highlights - Total assets decreased to $66.8 billion from $67.5 billion, reflecting balance sheet optimization and accelerated loan repayments [15][31] - Total deposits were $54.2 billion, down from $55.8 billion, attributed to intentional reductions in brokered deposits and seasonal declines [17] - The allowance for credit losses stood at $485 million, or 1.02% of loans and leases, showing a slight decrease from the previous quarter [18] Capital and Shareholder Returns - The book value per common share increased to $26.54, while tangible book value per common share rose to $19.11 [20] - The company declared a quarterly cash dividend of $0.37 per share and repurchased $100 million of common stock under its repurchase plan [4][21] - Columbia's estimated total risk-based capital ratio was 13.6%, remaining above regulatory minimums [21]