Columbia Banking System Reports $208 Million Net Income for Q2 2026

Columbia Banking System, Inc. reported a net income of $208 million for the second quarter of 2026, maintaining earnings per diluted share at $0.73, consistent with the same period last year. For the first half of 2026, net income reached $400 million, a significant increase from $239 million in the prior year. The growth in profitability is attributed to the acquisition of Pacific Premier, which enhanced net interest income and non-interest income streams. Net interest income for the quarter was $589 million, slightly down from $594 million in the previous quarter, while non-interest income rose to $88 million from $83 million, driven by increased customer fees and bank-owned life insurance income.

In terms of operational metrics, total loans and leases decreased to $47.2 billion as of June 30, 2026, down from $47.8 billion at the end of 2025. This decline reflects a strategic shift towards optimizing the balance sheet by reducing below-market-rate transactional loans. Total deposits also fell to $52.1 billion, a decrease of $2.2 billion, primarily due to a deliberate reduction in brokered deposits and seasonal tax payments. The company’s total assets decreased to $65.4 billion from $66.8 billion, indicating a continued focus on balance sheet optimization.

Columbia's allowance for credit losses (ACL) stood at $475 million, a decrease of $10 million from the end of 2025. This change reflects updated economic assumptions and credit migration trends. The provision for credit losses for the second quarter was $27 million, consistent with the previous quarter, while net charge-offs totaled $30 million. The company reported non-performing loans of $268 million, representing 0.57% of total loans, an increase from 0.41% at the end of 2025, primarily due to challenges in a specific agricultural industry relationship.

Strategically, Columbia completed the acquisition of Pacific Premier in August 2025, which has been integrated into its operations. The company has realized cost savings from this acquisition, contributing to a reduction in non-interest expenses to $375 million for the second quarter, down from $394 million in the previous quarter. The company continues to focus on enhancing its customer service and expanding its market presence across its operational footprint in the western United States. Looking ahead, Columbia anticipates maintaining satisfactory liquidity levels and capital ratios, with a total risk-based capital ratio of 13.5% as of June 30, 2026, well above regulatory requirements.