Columbia Banking System Reports $86.6 Million Net Income, Announces Merger with Pacific Premier Bank

Columbia Banking System, Inc. reported a net income of $86.6 million for the first quarter of 2025, a decrease from $124.1 million in the same period last year. This translates to earnings per diluted share of $0.41, down from $0.60 a year earlier. The decline in profitability was primarily attributed to a significant increase in non-interest expenses, which included a $55 million accrual for a legal settlement and $14.6 million in severance expenses. Net interest income for the quarter was $425 million, slightly lower than the previous quarter's $437 million, reflecting reduced interest income and lower earning asset yields, partially offset by decreased funding costs.

Total assets for Columbia stood at $51.5 billion as of March 31, 2025, a slight decrease from $51.6 billion at the end of 2024. Total loans and leases decreased to $37.6 billion, down $64.8 million from the previous quarter, primarily due to paydowns and slower origination volumes. However, total deposits increased by $497 million to $42.2 billion, driven by customer deposit growth from targeted campaigns and commercial customer deposits. The company’s liquidity position remained strong, with total available liquidity of $19 billion, representing 37% of total assets.

In terms of operational metrics, Columbia's allowance for credit losses (ACL) was $438.9 million, a slight decrease from $440.8 million at the end of 2024. The provision for credit losses for the quarter was $27.4 million, compared to $17.1 million in the same quarter last year. Non-performing loans increased to $175.1 million, or 0.47% of total loans, reflecting a more normalized credit environment. The company continues to manage its credit risk through diversification and sound underwriting practices.

Strategically, Columbia announced a merger agreement with Pacific Premier Bank on April 23, 2025, which will see Columbia acquire Pacific Premier in an all-stock transaction. This merger is expected to create a combined entity with approximately $70 billion in assets, enhancing Columbia's competitive position in key markets across the Western U.S. The merger is subject to regulatory and shareholder approvals and is anticipated to close in the second half of 2025. The company remains focused on integrating operations and leveraging the expanded footprint to drive growth and enhance service offerings.