Core Insights - The acquisition of Pacific Premier has strengthened Columbia Banking System's competitive position in the Western markets, particularly in Southern California, where it now holds a top-10 deposit market share [3][7] - The company reported consistent operating performance for 2025, driven by the Pacific Premier acquisition, balance sheet optimization, and disciplined expense control [4] - Management expects continued improvement in net interest margin (NIM) and plans to launch additional retail deposit campaigns [6][19] Integration and Operational Performance - The integration of Pacific Premier is progressing smoothly, with a systems conversion expected this quarter and a focus on cultural integration and customer service [2][7] - Columbia achieved a 27% increase in pre-provision net revenue and a 19% increase in operating net income in Q4 compared to the previous quarter [8] - Non-interest income for the quarter was strong, totaling $90 million, with contributions from Pacific Premier and increased customer fees [11] Financial Metrics - Q4 operating EPS was reported at $0.82, with a net interest margin of 4.06%, up from 3.84% in Q3 [6][9] - Total deposits decreased to $54.2 billion due to intentional reductions in brokered deposits, but deposit campaigns added $1.3 billion in 2025 [5][15][17] - The company raised its dividend to $0.37 per share and repurchased 3.7 million shares in Q4, with plans for further buybacks in 2026 [5][18] Loan and Deposit Trends - Gross loans and leases ended the year at $47.8 billion, with a 23% increase in new loan origination volume in Q4 compared to the previous year [13][14] - Management anticipates modest contraction in deposits through Q1, with expectations for net growth to resume in the spring [16] - The company has opened new de novo locations in multiple states and plans targeted additional openings in 2026 [7] Future Outlook - Management expects NIM to be between 3.90% and 3.95% in Q1, with improvements anticipated throughout 2026 [18][19] - The company is actively managing deposit pricing based on competitive conditions, with a focus on a "rates down deposit playbook" [19] - Share repurchases are expected to increase to $150 million to $200 million per quarter in 2026, with significant excess capital available [23]