COLB's Q4 Earnings Beat on Higher Revenues, Provisions Dip Y/Y

Columbia Banking System’s COLB fourth-quarter 2025 operating earnings of 82 cents per share easily outpaced the Zacks Consensus Estimate of 72 cents. The bottom line also compared favorably with 71 cents in the prior-year quarter.

Quarterly results included the first full-quarter contribution from the Pacific Premier deal. It reflected higher net interest income (NII) and a rise in non-interest income. Lower provisions acted as a tailwind, while higher non-interest expenses were the undermining factor.

Net income (GAAP) was $215 million compared with $143 million in the year-ago quarter.

For 2025, operating earnings of $3.12 beat the consensus estimate of $3.02 and grew 15% year over year. Net income (GAAP) rose 3% to $550 million.

COLB’s Revenues Rise, Expenses Jump

Total revenues for the quarter were $717 million, up from $487 million in the prior-year quarter. The top line surpassed the Zacks Consensus Estimate of $694.1 million.

For 2025, total revenues rose 19% year over year to $2.32 billion. The top line beat the consensus estimate of $2.28 billion.

NII was $627 million, increasing 43% year over year. The net interest margin was 4.06%, up 42 basis points (bps). The improvement was primarily driven by lower funding costs.

Non-interest income totaled $90 million, improving 80% from $50 million a year ago. The increase was driven by higher service charges on deposits, a sharp rise in financial services and trust revenue, and higher bank-owned life insurance (BOLI) income, along with growth in other income.

Non-interest expenses were $412 million, up 54% year over year. The rise reflected higher costs across categories, along with higher merger and restructuring charges.

The efficiency ratio was 57.30%, up from 54.61% in the prior-year quarter. Excluding certain items, the operating efficiency ratio (as adjusted) was 51.39%, down from 52.51% in the prior-year quarter.

COLB’s Loans & Deposits Decline Sequentially

As of Dec. 31, 2025, loans and leases were $47.8 billion, down 1% sequentially. The decline reflected continued run-off in commercial development and below-market-rate transactional loans, as well as an accelerated level of loan repayments, partially offset by growth in commercial loans.

Total deposits declined 3% sequentially to $54.2 billion. The decrease was primarily due to an intentional reduction in brokered and select public deposits and seasonal declines in customer balances.

Columbia Banking System’s Credit Quality Metrics Improve

In the reported quarter, the company recorded a provision for credit losses of $23 million, down from $28 million in the prior-year quarter. Net charge-offs were 0.25% of average loans and leases (annualized), down from 0.27%.

As of Dec. 31, 2025, non-performing assets to total assets was 0.30%, down 3 bps from the prior-year period.

Columbia Banking System’s Capital Ratios Improve

As of Dec. 31, 2025, the estimated total risk-based capital ratio was 13.6%, up from 12.8% recorded in the corresponding period of 2024. The estimated common equity Tier 1 (CET1) risk-based capital ratio was 11.8%, up from 10.5%.

COLB’s Share Repurchases Update

During the reported quarter, Columbia Banking System repurchased 3.7 million common shares at an average price of $27.07.

Our Viewpoint on COLB

Columbia Banking System’s scaled Western footprint, granular deposit base and relationship banking focus support NII and balanced fee income growth. Net interest margin (NIM) stability reflects deposit repricing and lower wholesale funding. 

However, integration and amortization costs keep expenses elevated. Further, planned transactional loan run-off is expected to limit near-term growth.
 

Columbia Banking System, Inc. Price, Consensus and EPS Surprise

Columbia Banking System, Inc. price-consensus-eps-surprise-chart | Columbia Banking System, Inc. Quote

At present, COLB carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Banks

BankUnited, Inc.’s BKU fourth-quarter 2025 adjusted earnings of 94 cents per share surpassed the Zacks Consensus Estimate of 85 cents. Further, the bottom line was up 3.3% from the prior-year quarter.

Results were aided primarily by a rise in non-interest income and NII. Higher loan balance and improved deposits were the other positives. However, higher expenses and provisions were the undermining factors for BKU.

F.N.B. Corporation FNB reported fourth-quarter 2025 operating earnings of 50 cents per share, which surpassed the Zacks Consensus Estimate of 41 cents. Also, the bottom line jumped 31.6% year over year.

FNB’s quarterly results benefited from higher NII and non-interest income. Higher loans and deposits and a decline in provisions were additional positives. However, higher non-interest expenses were an undermining factor.

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This article originally published on Zacks Investment Research (zacks.com).

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