Columbia Banking System, Inc. has reported its financial results for the fourth quarter of 2024, with notable changes compared to the third quarter of the same year. Here are the key highlights:
- Net interest income increased by $7 million from the prior quarter, reaching $437 million in the fourth quarter of 2024.
- Net interest margin saw an 8 basis points increase from the prior quarter, reaching 3.64%.
- Non-interest income decreased by $16 million, primarily due to quarterly changes in fair value adjustments and mortgage servicing rights hedging activity.
- Non-interest expense decreased by $5 million, excluding merger and restructuring expenses.
- Total assets were reported at $51.6 billion as of December 31, 2024, down slightly from $51.9 billion as of September 30, 2024.
- Gross loans and leases increased to $37.7 billion, up by $178 million from the previous quarter.
- Total deposits increased to $41.7 billion, up by $206 million from the previous quarter.
- The allowance for credit losses remained at 1.17% of loans and leases, with a provision for credit losses of $28 million for the fourth quarter of 2024.
- Columbia's book value per common share decreased to $24.43 as of December 31, 2024, compared to $25.17 as of September 30, 2024.
- Tangible book value per common share was reported at $17.20 as of December 31, 2024, down from $17.81 as of September 30, 2024.
The company's estimated total risk-based capital ratio was 12.6% with an estimated common equity tier 1 risk-based capital ratio of 10.5% as of December 31, 2024, compared to 12.5% and 10.3%, respectively, as of September 30, 2024.
The President and CEO, Clint Stein, expressed satisfaction with the results and highlighted the deposit-driven net interest margin expansion, relationship-driven commercial loan growth, and higher income from core fee-generating products.
The organization also provided an update on its strategic initiatives, including branch openings and technology enhancements, as well as the completion of an enterprise-wide evaluation resulting in $82 million in annualized cost savings realized during the year.
For additional details, the complete earnings presentation is available on the company's investor relations page. As a result of these announcements, the company's shares have moved 0.8% on the market, and are now trading at a price of $28.38. If you want to know more, read the company's complete 8-K report here.
