Columbia Banking System Reports $152.4 Million Net Income in Q2 2025, Plans Merger with Pacific Premier Bancorp

Columbia Banking System, Inc. reported a net income of $152.4 million for the second quarter of 2025, reflecting an increase from $120.1 million in the same period last year. Earnings per diluted share rose to $0.73, up from $0.58 a year earlier. The company's total revenue for the quarter was $670.7 million, a slight decrease from $695.5 million in the prior year, primarily due to a decline in interest income from loans and leases, which fell to $564.3 million from $583.9 million. The net interest margin improved to 3.75% from 3.60% in the previous quarter, driven by higher yields on earning assets.

In comparison to the previous fiscal period, Columbia's total assets increased to $51.9 billion as of June 30, 2025, up from $51.6 billion at the end of 2024. Total loans and leases decreased slightly to $37.6 billion, primarily due to reductions in residential and commercial loan balances, although there was growth in commercial real estate (CRE) loans. The allowance for credit losses (ACL) stood at $439 million, a minor decrease from $440.8 million at the end of 2024, reflecting credit migration trends and changes in economic assumptions.

Strategically, Columbia is in the process of acquiring Pacific Premier Bancorp, with the merger expected to close around August 31, 2025. This acquisition is anticipated to enhance Columbia's competitive position in Southern California and expand its product offerings. The merger has received necessary regulatory approvals and has been approved by shareholders of both companies. The integration efforts are reportedly progressing as planned.

Operationally, Columbia's total deposits increased to $41.7 billion, a modest rise from $41.7 billion at the end of 2024, supported by a campaign to attract small business and retail deposits. The bank's liquidity position remains strong, with total available liquidity at $18.6 billion, representing 36% of total assets. The company also reported a slight increase in non-performing loans, which rose to $177.4 million, or 0.47% of total loans, compared to $166.9 million, or 0.44%, at the end of 2024.

Looking ahead, Columbia's management expressed cautious optimism regarding the economic environment, noting potential challenges such as rising interest rates and economic uncertainties. The company plans to continue monitoring credit quality and adjusting its allowance for credit losses as necessary. The anticipated merger with Pacific Premier is expected to provide additional growth opportunities and enhance the company's overall market position.