Columbia Banking System(US:COLB) ZACKS·2026-01-23 14:31Core Insights - Columbia Banking System (COLB) reported fourth-quarter 2025 operating earnings of 82 cents per share, exceeding the Zacks Consensus Estimate of 72 cents and up from 71 cents in the prior-year quarter [1][9] - The quarterly results included the first full-quarter contribution from the Pacific Premier deal, with higher net interest income (NII) and non-interest income, while lower provisions provided a positive impact despite higher non-interest expenses [2] Financial Performance - Total revenues for the quarter reached $717 million, a significant increase from $487 million in the prior-year quarter, surpassing the Zacks Consensus Estimate of $694.1 million [3] - For the full year 2025, total revenues rose 19% year over year to $2.32 billion, exceeding the consensus estimate of $2.28 billion [3] - NII was reported at $627 million, marking a 43% year-over-year increase, with a net interest margin of 4.06%, up 42 basis points [3] Non-Interest Income and Expenses - Non-interest income totaled $90 million, an 80% increase from $50 million a year ago, driven by higher service charges, financial services revenue, and bank-owned life insurance income [4] - Non-interest expenses rose to $412 million, a 54% increase year over year, attributed to higher costs across various categories and increased merger and restructuring charges [4] Efficiency and Credit Quality - The efficiency ratio was reported at 57.30%, up from 54.61% in the prior-year quarter, while the adjusted operating efficiency ratio improved to 51.39% from 52.51% [5] - The company recorded a provision for credit losses of $23 million, down from $28 million in the prior-year quarter, with net charge-offs at 0.25% of average loans and leases, a slight decrease from 0.27% [8] Loans and Deposits - As of December 31, 2025, loans and leases were $47.8 billion, reflecting a 1% sequential decline due to commercial development run-off and accelerated loan repayments [6] - Total deposits decreased by 3% sequentially to $54.2 billion, primarily due to intentional reductions in brokered deposits and seasonal declines in customer balances [7] Capital Ratios and Share Repurchases - As of December 31, 2025, the estimated total risk-based capital ratio improved to 13.6% from 12.8% in the corresponding period of 2024, with the common equity Tier 1 (CET1) ratio rising to 11.8% from 10.5% [10] - During the reported quarter, the company repurchased 3.7 million common shares at an average price of $27.07 [11] Strategic Outlook - The company's Western footprint, granular deposit base, and focus on relationship banking support NII and balanced fee income growth, while integration and amortization costs keep expenses elevated [12]