Columbia Banking Revenue Miss, Stock Down 5%

Columbia Banking Revenue Miss, Stock Down 5%

Columbia Banking System Inc. (NASDAQ:COLB) announced its second‑quarter results, showing adjusted earnings per share of $0.76, which surpassed the analyst consensus of $0.73. However, revenue came in at $677 million, missing the consensus estimate of $687.4 million and representing a 32% decline from $511 million in the comparable quarter a year earlier.

Net income on a GAAP basis was $208 million, or $0.73 per diluted share, up from $152 million (also $0.73 per share) in the second quarter of 2025. Net interest income fell $5 million to $589 million, affected by $4 million of interest‑income reversals and modest balance‑sheet deleveraging, compressing the net interest margin by three basis points to 3.93%.

Total deposits decreased to $52.1 billion from $53.5 billion in the prior quarter, reflecting intentional reductions in brokered and wholesale public deposits. Gross loans and leases slipped to $47.2 billion from $47.7 billion, driven by runoff in below‑market‑rate transactional loans. Non‑interest expense declined $19 million to $375 million, primarily due to lower merger expenses and realized acquisition‑related cost savings. Net charge‑offs improved to 0.25% of average loans and leases, down from 0.30% in the first quarter.

The company repurchased 6.6 million shares during the quarter at an average price of $29.93, representing 2.3% of outstanding common shares, and declared a quarterly dividend of $0.37 per share.

"Our second quarter results demonstrate the resilience of our franchise and reflect the value of disciplined execution across the company," said Clint Stein, Chairman, CEO & President, adding that the bank continued to execute strategic priorities through prudent expense management, balance‑sheet optimization, and consistent capital returns to shareholders.