Core Insights - Columbia Banking System (COLB) is positioning itself for growth through its 2026 plan, focusing on margin, cost, capital, and fee income following the completion of the Pacific Premier deal in August [1] Current Position of Columbia Banking System - COLB's network now includes approximately 350 branches across eight Western states, with total deposits of $55.8 billion, loans and leases of $48.5 billion, and total assets of $67.5 billion as of September 30, 2025 [2] Margin and Interest Income - COLB's net interest margin (NIM) improved to 3.84% in Q3 2025 from 3.56% a year earlier, with expectations of NIM reaching approximately 3.90% in Q4 2025 and Q1 2026 [3] - A shift in deposit mix towards core customers and proactive repricing is expected to stabilize core net interest income (NII) into early 2026 [4] Fee Income Growth - Fee income from treasury management, commercial cards, and wealth/financial services has grown, with these services nearing 30% of non-interest income as of September 30, 2025 [5] - New platforms from the Pacific Premier acquisition are anticipated to enhance fee income through deeper customer relationships [5] Cost Management - Management aims for $127 million in annualized cost savings from the merger, with $48 million already realized by September 30, 2025 [6] - Operating expenses are projected to be between $330 million and $340 million per quarter for several quarters, with a full system conversion planned for Q1 2026 [6] Capital Position - Columbia Banking System's capital ratios improved, with a Common Equity Tier 1 (CET1) ratio of 11.6% and a total risk-based ratio of 13.4% as of Q3 2025 [7] - The board has authorized up to $700 million in share repurchases through November [7] Future Outlook for 2026 - Management anticipates a high-teens operating Return on Tangible Common Equity (ROTCE) framework for 2026, with earnings per share expected to cluster in the low $3s [10] - Execution will depend on successful integration and a shift in loan focus towards relationship-based lending [11] Integration and Cost Dynamics - Integration and restructuring costs may lead to volatility in near-term expenses until synergies are fully realized [12] - The company's office exposure was 8% of loans as of September 30, 2025, with non-performing assets increasing to nearly $200 million [12] Competitive Landscape - Competitive pricing pressures from larger banks and digital competitors could impact COLB's deposit costs, although management is actively working to defend core funding [13]