Core Viewpoint - Columbia Banking System, Inc. has announced a quarterly cash dividend of $0.37 per common share, payable on March 16, 2026, to shareholders of record as of February 27, 2026 [1] Company Overview - Columbia Banking System, Inc. is headquartered in Tacoma, Washington, and is the parent company of Columbia Bank, which is recognized as the largest bank headquartered in the Northwest and one of the largest in the West [1] - Columbia Bank operates in multiple states including Arizona, California, Colorado, Idaho, Nevada, Oregon, Texas, Utah, and Washington, offering a full suite of services such as retail and commercial banking, Small Business Administration lending, institutional and corporate banking, and equipment leasing [1] - The bank also provides investment and wealth management services, as well as healthcare and private banking through Columbia Wealth Management [1]

Core Viewpoint - Farmers & Merchants Bancorp has declared a quarterly cash dividend of $5.05 per share, marking a total year-to-date cash dividend of $19.35 per share, which is a 6.9% increase from the previous year [1][2]. Financial Performance - For the trailing twelve months ending September 30, 2025, the company reported a net income of $91.6 million, up from $88.0 million the previous year [2]. - Diluted earnings per share for the same period totaled $130.83, reflecting a 10.4% increase compared to $118.46 a year earlier [2]. - The net income for the third quarter of 2025 was $23.7 million, or $33.92 per diluted common share, representing a 13.2% increase year-over-year [3]. Capital and Asset Quality - As of September 30, 2025, total assets were reported at $5.6 billion, with a non-accrual loans and leases amounting to $955,000, or 0.03% of total loans and leases [3]. - The allowance for credit losses on loans and leases stood at $76.0 million, or 2.10% of total loans and leases [3]. - The common equity tier 1 ratio was 14.26%, and the total risk-based capital ratio was 15.74%, both exceeding regulatory requirements for a "well-capitalized" classification [3]. Dividend Policy and Recognition - The company transitioned its dividend policy from semi-annual to quarterly payments starting in August 2025, with the latest dividend declaration marking the 90th consecutive year of cash dividends and the 60th consecutive year of dividend increases [4][6]. - Farmers & Merchants Bancorp is recognized as a "Dividend King," ranking 17th among only 55 publicly traded companies with a history of increasing dividends for 50 or more consecutive years [4][6]. Industry Recognition - In July 2025, Farmers & Merchants Bancorp was ranked the 3 best-performing bank in the nation across all asset categories by Bank Director's Magazine for 2024 [7]. - The bank has consistently received high rankings in various studies, including being named the 1 best-performing bank in 2022 and 2 in 2023 [7]. - F&M Bank was also recognized as one of "America's Best Banks" by Forbes Magazine and ranked 4th on S&P Global Market Intelligence's "Top 50 List of Best-Performing Community Banks" in 2023 [8][9].

Financial Data and Key Metrics Changes - The company reported net income of $4,100,000 or $0.29 per diluted common share for Q2 2025, driven by strong loan originations and a pickup in net interest income [15][16] - Tangible book value per share increased to 13.51 from 13.42 in the prior quarter [4] - Average loan balances totaled $634,000,000 for the quarter, up from $565,000,000 in the prior quarter [15] - Net interest income rose to $14,700,000 from $14,300,000 in the previous quarter, while net interest margin decreased to 7.81% from 8.27% [16][17] - Fee income increased to $10,300,000 from $7,800,000 in the prior quarter [18] Business Line Data and Key Metrics Changes - Loan originations totaled $1,500,000,000 in Q2, a 17% increase quarter over quarter and a 27% increase year over year [9] - SBA loan originations increased by 24% quarter over quarter and over 140% year over year [10] - The company continued to sell guaranteed portions of SBA loans, which made up 43% of the total portfolio at the end of Q2 [11] Market Data and Key Metrics Changes - The company is experiencing strong demand for credit enhanced products, with expected balances reaching $50,000,000 to $100,000,000 by the end of Q4 2025 [10][46] - The overall portfolio growth is supported by a stable environment for SBA lending and healthy demand from qualified applicants [5] Company Strategy and Development Direction - The company aims for gradual growth through 2025 and 2026, focusing on credit enhanced products and new programs signed late in 2024 and early in 2025 [5][6] - Strategic investments made over the past two years are expected to yield results, with potential benefits from BIN and payment products anticipated to enhance profitability [6][14] - The company is exploring the integration of artificial intelligence to improve operational efficiency [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stability of the overall lending environment and the potential for continued growth in loan originations [5][10] - The company expects a rebound in return on average equity into the low to mid-teens range and return on average assets exceeding 2% in the long term [7][62] - Management acknowledged that while growth may not be linear, they are excited about the long-term potential of the bank [14] Other Important Information - The efficiency ratio improved to 59.5% from 64.8% in the prior quarter, indicating better cost management [19] - The effective tax rate decreased to 24.5% from 28.1% in the prior quarter, with expectations around 27% for 2025 [20] Q&A Session Summary Question: Can you discuss the relationship between credit enhanced income and expected balances? - The credit enhanced income reflects the provision for credit losses related to the credit enhanced portfolio, which will increase as balances grow [22][23] Question: What are the plans for funding growth given the strong loan production? - Short-term funding relies on wholesale funding, while long-term strategies include integrating payments business to attract lower-cost deposits [25][26] Question: What is the trend in net charge-offs this quarter? - The increase in net charge-offs was primarily due to SBA charge-offs, but overall levels are in line with historical expectations [28] Question: How does the company view the impact of AI and stablecoins on the banking industry? - The company sees potential in AI for fraud detection and operational efficiency, while stablecoins are being monitored for future opportunities [40][41][37] Question: What is the current health of the company's partners and pipeline? - The health of partners is strong, with solid growth in origination levels and a good pipeline for new lending partners [47][50]

Financial Performance - Farmers & Merchants Bancorp reported record second quarter net income of $23.1 million, or $32.94 per diluted common share, representing a 5.9% increase from $21.8 million, or $29.39 per diluted common share, in the same quarter of 2024 [2][6] - Annualized return on average assets was 1.65% and return on average equity was 15.09% for the second quarter of 2025, compared to 1.58% and 15.33% for the same quarter in 2024 [2][6] - Net interest income for the quarter was $53.9 million, up 6.1% from $50.8 million in the second quarter of 2024, with a net interest margin of 4.07% [6][8] Dividend and Recognition - The Company declared a mid-year cash dividend of $9.30 per share, totaling $6.5 million, a 5.7% increase from the $8.80 per share dividend in 2024 [4] - Farmers & Merchants Bancorp has paid dividends for 90 consecutive years and increased dividends for 60 consecutive years, ranking 17th among "Dividend Kings" [4][14] - The Company was ranked the 3 best performing bank in the nation across all asset categories by Bank Director Magazine for 2024, following a 2 ranking in 2023 and 1 in 2022 [15] Balance Sheet and Capital - Total assets at quarter-end were $5.5 billion, with total deposits increasing by $61.2 million, or 1.3%, to $4.8 billion compared to December 31, 2024 [9][7] - The preliminary total risk-based capital ratio was 15.35% and the common equity tier 1 ratio was 13.87%, both exceeding regulatory requirements for "well-capitalized" banks [12] - The tangible book value per share increased by 9.7% to $835.33 compared to $761.62 as of June 30, 2024 [6][8] Credit Quality - The Company maintained solid credit quality with no non-accrual loans and a negligible delinquency ratio of 0.03% of total loans and leases [10] - The allowance for credit losses on loans and leases was $79.0 million, with a provision of $1.4 million recorded during the second quarter of 2025 [10][11]