Columbia Banking System, Inc. has reported its third quarter 2025 financial results, showcasing various changes compared to the previous quarter. Net interest income increased by $59 million from the prior quarter, reaching $505 million. The net interest margin was 3.84%, up 9 basis points from the prior quarter, attributed to an increase in customer deposits and a corresponding reduction in higher-cost funding sources.
Non-interest income saw a $12 million increase from the prior quarter, reaching $77 million. Excluding the impact of fair value and hedges, non-interest income increased by $6 million, primarily due to one month operating as a combined company.
Non-interest expense rose by $115 million, primarily due to merger and restructuring expense of $87 million and one month operating as a combined company. Excluding specific items, non-interest expense was $307 million, up $37 million from the prior quarter.
The allowance for credit losses ("ACL") was $492 million, or 1.01% of loans and leases, as of September 30, 2025, compared to $439 million, or 1.17% as of June 30, 2025.
Total assets were $67.5 billion as of September 30, 2025, up from $51.9 billion as of June 30, 2025, due to the addition of Pacific Premier. Gross loans and leases were $48.5 billion as of September 30, 2025, an increase of $10.8 billion relative to June 30, 2025, due to the addition of Pacific Premier, partially offset by run-off in commercial development and transactional loans.
Total deposits were $55.8 billion as of September 30, 2025, an increase of $14.0 billion relative to June 30, 2025, due to the addition of Pacific Premier and organic growth in customer deposits, partially offset by lower brokered deposits.
Columbia's book value per common share was $26.04 as of September 30, 2025, compared to $25.41 as of June 30, 2025. The tangible book value per common share was $18.57 as of September 30, 2025, compared to $18.47 as of June 30, 2025.
Columbia's estimated total risk-based capital ratio was 13.4%, and the estimated common equity tier 1 risk-based capital ratio was 11.6%.
The company declared a quarterly cash dividend of $0.36 per common share on August 15, 2025, which was paid on September 15, 2025.
The board of directors authorized the repurchase of up to $700 million of common stock under a new repurchase plan, reflecting the company's excess capital position and expectation of exceptional profitability. As a result of these announcements, the company's shares have moved -1.83% on the market, and are now trading at a price of $26.35. Check out the company's full 8-K submission here.
