Columbia Banking System Reports $550 Million Net Income for 2025

**Columbia Banking System, Inc. Reports Financial Results for 2025**

Columbia Banking System, Inc. (COLB) has released its financial results for the year ended December 31, 2025, showcasing a net income of $550 million, up from $534 million in 2024. This increase was primarily driven by higher net interest income and non-interest income, which were partially offset by increased non-interest expenses related to the acquisition of Pacific Premier Bancorp, Inc. and an increase in the provision for credit losses. Earnings per diluted common share were $2.30, a decrease from $2.55 in the previous year, due to an increase in weighted-average diluted common shares outstanding following the Pacific Premier acquisition.

Net interest income for 2025 reached $2.0 billion, compared to $1.7 billion in 2024. This growth was attributed to a larger average balance sheet and the impact of four months as a combined company due to the Pacific Premier acquisition, as well as a decrease in interest expense due to lower interest rates and a favorable shift in the company's funding mix. The net interest margin increased to 3.83% from 3.57% in the prior year, reflecting a reduction in the cost of interest-bearing liabilities, partially offset by lower average yields on interest-earning assets. Non-interest income also saw an increase, totaling $298 million compared to $211 million in 2024, driven by four months of combined operations following the Pacific Premier acquisition, as well as fair value adjustments.

Strategic developments during the year included the completion of the acquisition of Pacific Premier on August 31, 2025. This all-stock transaction expanded Columbia's presence in the western United States and broadened its product and service offerings. As of December 31, 2025, total loans and leases stood at $47.8 billion, a 27% increase from the previous year, primarily due to the acquired loan portfolio from Pacific Premier. Total deposits also increased by 30% to $54.2 billion, driven by the acquisition and organic growth from small business and retail deposit campaigns. Non-interest expense increased to $1.4 billion, compared to $1.1 billion in 2024, primarily due to merger and restructuring expenses, higher salaries and employee benefits, increased occupancy costs, and a $55 million accrual for a legal settlement.

Key operational developments included a focus on maintaining asset quality, with non-performing assets at 0.30% of total assets. The allowance for credit losses was $485 million, representing 1.02% of loans and leases. The company also continued its commitment to sustainability and responsible business practices, including expanding its Community Benefits Agreement with the National Community Reinvestment Coalition to $9.8 billion. Looking ahead, Columbia Banking System expects to complete systems conversion and branch consolidations related to the Pacific Premier acquisition in the first quarter of 2026 and realize all related cost savings by June 30, 2026. The company also increased its quarterly dividend to $0.37 per common share in November 2025 and repurchased 3.7 million common shares for $100 million during the year.