COLB Filings — Columbia Banking System, Inc. - FilingSpy
COLB
Columbia Banking System, Inc.
A Pacific Northwest banking company that, through its subsidiary Columbia Bank, offers commercial lending, deposits, treasury management, and wealth management to businesses and individuals across the western United States, including a new Texas presence after acquiring Pacific Premier in 2025. It traces its roots to a bank founded in 1973 in Longview, Washington, taking its name from the Columbia River that runs through the region. The holding company formed in 1993 and later moved its headquarters to Tacoma, Washington.
Merger costs fade and fee income rises, lifting EPS to $0.73 even as net interest margin slips 3 bps to 3.93%.
The Pacific Premier integration is shifting from cost to execution. held flat at $677 million and rose 8% sequentially to $208 million as merger-related expenses fell $19 million and non-interest income climbed, while edged down 3 to 3.93%. The company is now returning capital aggressively, repurchasing $199 million in shares during the quarter.
Key takeaways
rose 8% sequentially to $208 million, driven by a $19 million decline in non- as merger and restructuring costs tied to the Pacific Premier acquisition continued to fade.
contracted 3 to 3.93%, as interest income reversals and lower securities yields more than offset an 8-basis-point decline in the cost of interest-bearing deposits to 1.96%.
Non-interest income increased $5 million to $88 million, helped by higher customer fees and a $3 million bank-owned life insurance death benefit, partially offset by a net fair value loss on mortgage servicing rights and hedging.
Section summaries
Management's Discussion and Analysis
Q2 2026 EPS rose to $0.73 driven by lower merger costs and higher fee income, while NIM dipped 3 bps to 3.93%.
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increased to $208 million from $192 million sequentially, primarily due to a $19 million drop in non- from reduced merger and restructuring costs.
Total loans decreased $610 million from year-end 2025 to $47.2 billion, reflecting intentional runoff of transactional loans, while relationship-based commercial loans grew $460 million.
The company repurchased 6.6 million shares for $199 million during the quarter under its $700 million authorization, and total available liquidity stood at $25.6 billion, covering 125% of estimated uninsured deposits.
rose to 0.42% of total assets, driven by a single agricultural relationship, while the decreased $10 million to $475 million.
What changed
The Q1 2026 watch item on asked whether the 3.96% level would hold once the Pacific Premier time-deposit premium benefit fully ran off. It did not: margin slipped 3 to 3.93%, as interest income reversals and lower securities yields outweighed an 8-basis-point decline in deposit costs.
The Q1 2026 watch item on asked whether the rise to 0.40% of total assets was contained or signaled broader credit deterioration. Non-performing assets rose further to 0.42%, still driven by a single agricultural relationship, and the decreased $10 million, suggesting the issue remains isolated.
The Q1 2026 watch item on the CET1 capital ratio asked whether organic capital accretion continued to build regulatory capital as the company executed share repurchases. The company repurchased $199 million in shares during Q2 2026, indicating management prioritized capital return over further capital ratio accretion.
The Q1 2026 watch item on deposit balances asked whether the $722 million decline stabilized. Total deposits fell further, to $53.5 billion, as the intentional reduction in brokered deposits continued, though the filing does not quantify the Q2 change from the Q1 level.
What to watch
in Q3 2026, to confirm whether the 3.93% level stabilizes now that the Pacific Premier time-deposit premium benefit has fully run off and the combined balance sheet is fully reflected, or whether further compression from lower securities yields extends.
in Q3 2026, to determine whether the rise to 0.42% of total assets remains confined to the single agricultural relationship or begins to signal broader credit deterioration that would require higher provisioning.
The pace of share repurchases in Q3 2026, to gauge whether the $199 million quarterly run rate continues and how management balances capital return against the CET1 capital ratio, which was not disclosed this quarter.
Commercial loan growth in Q3 2026, to assess whether the $460 million in relationship-based originations offsets the intentional runoff of transactional loans and returns the total loan portfolio to growth.
fell 3 to 3.93% as interest income reversals and lower securities yields offset an 8 basis point decline in the cost of interest-bearing deposits to 1.96%.
Non-interest income grew $5 million to $88 million, reflecting higher customer fees and a $3 million BOLI death benefit, partially offset by a net fair value loss on MSR and hedging.
Total loans decreased $610 million from year-end 2025 to $47.2 billion due to intentional runoff of transactional loans, while commercial loans grew $460 million from relationship-based originations.
rose to 0.42% of total assets, driven by a single agricultural relationship, while the decreased $10 million to $475 million.
The Company repurchased 6.6 million shares for $199 million during the quarter, and total available liquidity stood at $25.6 billion, representing 125% of estimated uninsured deposits.
The information required by this item is set forth in Part I, Item 1 under Note 8 – Commitments and Contingencies—Legal Proceedings and Regulatory Matters, and incorporated herein by reference.
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The information required by this item is set forth in Part I, Item 1 under Note 8 – Commitments and Contingencies—Legal Proceedings and Regulatory Matters, and incorporated herein by reference.
In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors relating to the Company's business discussed under "Part I—Item 1A—Risk Factors" in our Annual Report on Form 10-K for the year ended December 31,…
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In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors relating to the Company's business discussed under "Part I—Item 1A—Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025. These factors could materially and adversely affect our business, financial condition, liquidity, results of operations and capital position, and could cause our actual results to differ materially from our historical results or the results contemplated by the forward-looking statements contained in this Quarterly Report on Form 10-Q. The Company believes that there has been no material change in its risk factors as previously disclosed in the Company's Form 10-K for the year ended December 31, 2025.