- Columbia Banking System (COLB, Financial) reports Q1 2025 net income of $87 million with EPS at $0.41.
- Operating net income reached $140 million, with operating EPS at $0.67.
- Announced merger with Pacific Premier Bancorp for a combined $70B in assets.
Columbia Banking System (COLB) unveiled its financial results for the first quarter of 2025, reporting a net income of $87 million and operating net income of $140 million. The company recorded earnings per diluted share of $0.41, while operating earnings per share stood at $0.67. The financial performance was notably impacted by a $55 million legal settlement and $15 million in severance expenses.
The bank reported a net interest margin decline of 4 basis points to 3.60%, and total assets were listed at $51.5 billion. Deposits saw an increase, reaching $42.2 billion, driven by a successful small business campaign that brought in $425 million in new deposits. Columbia maintained its quarterly dividend at $0.36 per share.
Highlighting its strategic growth, Columbia Banking System announced a merger with Pacific Premier Bancorp, creating a combined entity with approximately $70 billion in assets. This merger is set to significantly advance Columbia's expansion in Southern California, accelerating its growth trajectory by about a decade and is projected to deliver mid-teens earnings accretion.
On the capital front, Columbia Banking System upheld its robust capital position with an estimated total risk-based capital ratio of 12.8% and a CET1 ratio of 10.6%. The tangible book value per share also improved slightly to $17.86, reflecting reduced unrealized losses in its securities portfolio as market interest rates declined.
While the quarterly results faced some headwinds due to legal expenses and margin pressure, the strategic acquisition of Pacific Premier Bancorp is expected to transform Columbia Banking System's long-term growth outlook, enhancing its competitive positioning in key markets.
