Columbia Banking System reports $220 million net income for third quarter

Columbia Banking System, Inc. reported third-quarter 2026 net income of $220 million and operating net income of $229 million, with diluted earnings per common share reaching $0.78 and operating diluted earnings per share at $0.82. The results reflect a quarter in which the bank actively managed its balance sheet to improve profitability while maintaining credit quality.

Clint Stein, Chairman, CEO and President of Columbia Banking System, stated that the performance demonstrates the benefits of consistent execution and active balance sheet management. He noted that the bank focused on relationship-driven growth, prudent loan and deposit pricing, and operational discipline to improve profitability. Stein emphasized that the company returned over $1 billion to shareholders through dividends and share repurchases over the past year, completing its existing buyback authorization in the process.

Net interest income increased by $26 million from the prior quarter to $615 million, driven by higher income on loans and investment securities and lower funding costs. The net interest margin rose 18 basis points to 4.11%, up from 3.93% in the second quarter of 2026. This improvement was attributed to higher yields on loans and investment securities, along with a shift in funding mix where customer deposit growth allowed the bank to reduce reliance on wholesale sources. Non-interest income decreased by $8 million, primarily due to $3 million in death benefit proceeds recorded in the second quarter that did not recur. Non-interest expense fell by $5 million due to lower merger expense.

Credit quality remained stable, with net charge-offs at 0.24% of average loans and leases on an annualized basis, compared to 0.25% in the prior quarter. The provision expense was $33 million, up from $27 million in the second quarter. The ratio of non-performing assets to total assets was 0.39%, a decrease from 0.42% as of June 30, 2026.

The board of directors authorized a new $1.2 billion share repurchase program, which has no expiration date. During the third quarter, the company completed its previous repurchase plan by buying back 23.3 million common shares at an average price of $29.88 between November 2025 and September 30, 2026. This represented 7.8% of outstanding common shares as of September 30, 2025. Columbia Bank, a wholly-owned subsidiary, issued $250 million in subordinated notes due in 2036 in September 2026, bearing a fixed annual rate of 6.721% for the first five years.

In August 2026, the bank declared a quarterly cash dividend of $0.37 per common share, paid on September 14, 2026. A second customer deposit campaign, which ran from June to mid-August, brought over $700 million in new deposits to the bank. The company opened two depository locations in Utah while closing four branches to optimize its physical presence.