Columbia Banking System, Inc.

What they do

Columbia Banking System, Inc. is a bank holding company whose subsidiary, Columbia Bank, provides commercial and consumer banking services. The company operates through its bank subsidiary and other units including Financial Pacific Leasing (FinPac), which provides equipment leasing. Its business is concentrated in commercial lending and deposit gathering across western U.S. markets.

Revenue drivers

• Net interest income — Primarily interest earned on loans and leases and securities less deposit and funding costs; $589 million in 2Q26, the largest revenue line.
• Non-interest income — Fees from treasury management, card-based fees, mortgage and other services; $88 million in 2Q26, up $5 million from 1Q26 on higher treasury management and card fees.
• Commercial lending and leases — Commercial loan balances grew in 2Q26 per management; the loan and lease portfolio is the main interest-earning asset base, including FinPac equipment leasing.
• Deposit franchise — Deposits fund the balance sheet; small business and retail campaigns added over $600 million in new deposits in the first 2026 campaign and about $650 million through mid-July in the second.

Recent performance

For 2Q26, net income was $208 million and operating net income was $217 million, or $0.73 and $0.76 per diluted share respectively. Net interest income fell $5 million to $589 million from 1Q26, partly due to $4 million of interest income reversals, and net interest margin declined 3 basis points to 3.93%. Non-interest income rose $5 million to $88 million while non-interest expense fell $19 million to $375 million on lower merger expense and acquisition cost savings. Provision expense was $27 million, net charge-offs were 0.25% of average loans and leases annualized, and non-performing assets to total assets was 0.42%. The company repurchased $199 million of common stock and declared a $0.37 quarterly dividend.

Strategy

Management cited prudent expense management, ongoing balance sheet optimization, and consistent capital returns to shareholders as its priorities in the 2Q26 release. The company is realizing acquisition-related cost savings tied to the Pacific Premier transaction and continues small business and retail deposit campaigns. It repurchased $199 million of stock in 2Q26 under its current repurchase plan and pays a $0.37 quarterly dividend. Management said commercial loan balances continued to grow, reflecting customer relationships and trust across its markets.

Risks

• CRE and real estate concentration — The 10-K cites deterioration in economic conditions that could increase loan and lease losses, especially risks associated with concentrations in real estate related loans.
• Pacific Premier integration — The company discloses that cost savings and any revenue or expense synergies from the Pacific Premier acquisition may not be fully realized or may take longer than anticipated, and that deposit attrition may result.
• Interest rate sensitivity — The 10-K states changes in interest rates could significantly reduce net interest income and negatively affect asset yields, valuations and funding sources, including impacts on prepayment speeds.
• Goodwill impairment — The 10-K notes the possibility that recorded goodwill could become impaired, which may have an adverse impact on earnings and capital.

Outlook

The 2Q26 release does not include formal forward guidance. Management said it continues to execute on strategic priorities through prudent expense management, balance sheet optimization, and consistent capital returns, and remains committed to delivering sustainable returns. It cited commercial loan growth, a diversified business model, and a sound credit culture as supports for long-term performance. The operating environment was described as dynamic.