Financial Data and Key Metrics Changes - The company's second quarter operating results increased by 14% compared to the same quarter last year, driven by profitability focus and operational efficiency initiatives [5][6] - Earnings per share (EPS) for the second quarter was reported at $0.73, with operating EPS at $0.76, reflecting a strong performance [16] - The net interest margin (NIM) expanded by 15 basis points to 3.75%, attributed to rising earning asset yields and lower costs of interest-bearing liabilities [17][18] - The tangible book value per share increased by 3%, and regulatory capital ratios improved, with Tier one common at 10.8% and total risk-based capital ratio at 13% [18] Business Line Data and Key Metrics Changes - The loan portfolio saw slight growth, with commercial loan growth offsetting a decline in transactional real estate loans [6] - Core fee income increased significantly, with operating non-interest income up by $8 million or 14% from the previous quarter, driven by strong growth in card-based fees and other banking services [19][22] - Deposit balances declined due to seasonal activities, but a recent campaign generated over $450 million in new core deposits [21] Market Data and Key Metrics Changes - The company noted macroeconomic uncertainties affecting customer borrowing behavior, with some companies opting to use cash for investments or debt repayment [7] - The integration of Pacific Premier is expected to enhance the company's market presence and operational capabilities, particularly in technology and fee income generation [12][23] Company Strategy and Development Direction - The company is focused on profitability and credit quality over mere growth, emphasizing a disciplined approach to business operations [6][8] - The upcoming acquisition of Pacific Premier is a strategic priority, with integration planning on track and expected to close by September 1 [9][26] - Investment in technology and human capital is a key focus, with ongoing enhancements to AI capabilities and leadership development initiatives [10][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about navigating the current economic environment and capitalizing on strategic opportunities, including the Pacific Premier acquisition [8][25] - The company is committed to enhancing long-term shareholder value and optimizing financial performance [25][26] Other Important Information - The company unified its brand under the Columbia name, with Umpqua Bank changing its legal name to Columbia Bank effective July 1 [14] - The company is actively expanding its branch network, with new locations opened in Arizona and Eastern Oregon [23][24] Q&A Session Summary Question: What is driving the increase in loan originations? - Management indicated that the increase is due to a combination of client demand and improved productivity among bankers, with strong activity levels noted in commercial lending [31][34] Question: What are the plans for optimizing Pacific Premier's balance sheet? - Management plans to take advantage of day one fair value marks and has already made some pre-purchase adjustments to securities [38] Question: What initiatives are in place to increase fee revenue contributions? - The company has been focusing on full relationship banking and has seen significant year-over-year growth in various fee income lines, including treasury management and merchant services [42][44] Question: What is the outlook for deposit growth and pricing strategy? - Management noted that deposit growth has been seasonal, with a focus on winning new accounts and maintaining competitive pricing [55][58] Question: What is the appetite for cleaning up the capital stack? - Management expressed a strong desire to maintain a clean capital stack and optimize it, especially with the expected excess capital generation from the Pacific Premier acquisition [60]

Financial Performance Highlights - The company's reported net income for the second quarter of 2025 was $152 million, with an operating net income of $160 million[42] - Pre-Provision Net Revenue (PPNR) for Q2 2025 was $233 million (reported) and $242 million (operating)[42] - The company's Return on Assets (ROA) was 1.19% (reported) and 1.25% (operating) for Q2 2025[42] - The Return on Tangible Common Equity was 16.03% (reported) and 16.85% (operating) for Q2 2025[42] - Net interest margin increased 15 basis points from the prior quarter to 3.75% for Q2 2025[88] Balance Sheet and Loan Portfolio - Total assets were $52 billion, loans were $38 billion, and deposits were $42 billion as of June 30, 2025[9] - Deposits were $42 billion as of June 30, 2025, with an average customer account balance of $36 thousand[46] - The total available-for-sale (AFS) securities portfolio had a book yield of 3.70% and an effective duration of 5.0 as of June 30, 2025[51] - Loans secured by office properties represented 8% of the total loan portfolio as of June 30, 2025[74] Acquisition of Pacific Premier Bancorp - The acquisition of Pacific Premier Bancorp is expected to close as early as September 1, 2025, creating a company with ~$70 billion in assets[31] - Pacific Premier stockholders will receive 0.9150 of a Columbia share for each Pacific Premier share in a 100% common stock transaction[31] - The acquisition is expected to be 14% accretive to 2026E EPS[31]