The Top 5 Analyst Questions From Columbia Banking System’s Q4 Earnings Call

Regional banking company Columbia Banking System reported revenue ahead of Wall Streets expectations in Q4 CY2025, with sales up 45.2% year on year to $717 million. Its non-GAAP profit of $0.82 per share was 14.6% above analysts’ consensus estimates.

Columbia Banking System (COLB) Q4 CY2025 Highlights:

• Revenue: $717 million vs analyst estimates of $696.2 million (45.2% year-on-year growth, 3% beat)
• Adjusted EPS: $0.82 vs analyst estimates of $0.72 (14.6% beat)
• Adjusted Operating Income: $321 million vs analyst estimates of $321.7 million (44.8% margin, in line)
• Market Capitalization: $8.87 billion

StockStory’s Take

Columbia Banking System’s fourth quarter saw a positive market response, as results outpaced Wall Street’s expectations. Management attributed this performance primarily to the successful integration of the Pacific Premier acquisition, which expanded the bank’s presence in key Western markets and contributed significantly to earnings. CEO Clint Stein highlighted that operational enhancements and a disciplined focus on profitability, including balance sheet optimization and ongoing cost savings, played key roles in the quarter’s improved profitability. Additionally, enhanced net interest margin was achieved through effective funding strategies and asset repricing, while noninterest income benefited from new customer fee streams and expanded business lines.

Looking ahead, management expects continued operational improvement as the full benefits of the Pacific Premier integration are realized, particularly through cost savings and expanded product offerings. CFO Ivan Seda noted that net interest margin will temporarily dip in the first quarter before rebounding throughout the year, driven by anticipated deposit growth and ongoing balance sheet optimization. The company also plans to increase share repurchases and maintain disciplined expense management. CEO Clint Stein emphasized, “We remain focused on optimizing performance, driving new business growth, and supporting the evolving needs of existing customers.”

Key Insights from Management’s Remarks

Management credited the quarter’s improved results to the Pacific Premier integration, cost discipline, and expanded product offerings, while also highlighting strategic initiatives to support long-term growth.

• Pacific Premier acquisition impact: The integration of Pacific Premier bolstered Columbia’s position in the Western U.S., with management citing increased business from larger commercial clients and enhanced deposit market share in Southern California.
• Operational efficiency gains: Cost savings from the Pacific Premier deal began to materialize, with $63 million in annualized expense reductions achieved by year-end. Management expects to realize the full $127 million target by the end of the second quarter.
• Fee income momentum: Noninterest income saw meaningful growth from both acquired business lines and organic initiatives, particularly in treasury management, international banking, and trust services. Management pointed to PAC Premier’s custodial trust business as a strong complement to Columbia’s existing platform.
• Loan and deposit trends: New loan origination volume rose 23% year-over-year, offsetting declines in transactional and construction lending. However, seasonal deposit outflows and strategic reductions in wholesale funding influenced overall deposit balances.
• Balance sheet optimization: Management continued to reduce lower-yielding assets and optimize funding sources, which supported net interest margin expansion and improved internal capital generation.

Drivers of Future Performance

Columbia Banking System’s outlook centers on extracting full value from recent acquisitions, sustaining operational efficiency, and adapting to a shifting deposit landscape.

• Realization of cost synergies: Management expects to achieve all targeted cost savings from the Pacific Premier integration by mid-year, which should help maintain operating expenses within the projected range and support profitability as revenue grows.
• Deposit and loan portfolio shifts: The company anticipates modest contraction in transactional lending and seasonal deposit balances in the first quarter, followed by resumption of deposit growth and stabilization of earning assets as the year progresses.
• Share repurchases and capital deployment: Columbia plans to increase share repurchase activity in 2026, reflecting a focus on returning excess capital to shareholders while also investing in market expansion and new talent.

Catalysts in Upcoming Quarters

Going forward, the StockStory team will monitor (1) the full realization of Pacific Premier integration cost savings and systems conversion, (2) stabilization and growth in core deposits after seasonal outflows, and (3) the trajectory of net interest margin as deposit pricing and balance sheet optimization evolve. Progress in expanding fee income streams and the successful integration of new talent and markets will also serve as important markers of execution.

Columbia Banking System currently trades at $29.74, in line with $29.67 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

Regional banking company Columbia Banking System announced better-than-expected revenue in Q4 CY2025, with sales up 45.2% year on year to $717 million. Its non-GAAP profit of $0.82 per share was 14.6% above analysts’ consensus estimates.

Columbia Banking System (COLB) Q4 CY2025 Highlights:

• Net Interest Income: $627 million vs analyst estimates of $609.5 million (43.4% year-on-year growth, 2.9% beat)
• Net Interest Margin: 4.1% vs analyst estimates of 3.9% (13.2 basis point beat)
• Revenue: $717 million vs analyst estimates of $696.2 million (45.2% year-on-year growth, 3% beat)
• Efficiency Ratio: 57.3% vs analyst estimates of 52.7% (462.5 basis point miss)
• Adjusted EPS: $0.82 vs analyst estimates of $0.72 (14.6% beat)
• Tangible Book Value per Share: $19.11 vs analyst estimates of $18.90 (11.1% year-on-year growth, 1.1% beat)
• Market Capitalization: $8.88 billion

"Our fourth quarter performance marked a strong end to a tremendous year for Columbia, reflecting continued momentum across our businesses and our commitment to consistent, repeatable results," said Clint Stein, President and CEO.

Company Overview

Created through the merger of two Pacific Northwest banking institutions with deep regional roots, Columbia Banking System operates Umpqua Bank, providing commercial, consumer, and wealth management services across eight western states.

Sales Growth

In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investing banking, and trading fees. Luckily, Columbia Banking System’s revenue grew at an incredible 30.9% compounded annual growth rate over the last five years. Its growth beat the average banking company and shows its offerings resonate with customers.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Columbia Banking System’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 6.7% over the last two years was well below its five-year trend.

This quarter, Columbia Banking System reported magnificent year-on-year revenue growth of 45.2%, and its $717 million of revenue beat Wall Street’s estimates by 3%.

Net interest income made up 96.2% of the company’s total revenue during the last five years, meaning Columbia Banking System lives and dies by its lending activities because non-interest income barely moves the needle.

Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.

Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend.

Tangible Book Value Per Share (TBVPS)

Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.

This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.

Columbia Banking System’s TBVPS declined at a 1.4% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 8.9% annually over the last two years from $16.12 to $19.11 per share.

Over the next 12 months, Consensus estimates call for Columbia Banking System’s TBVPS to grow by 6.4% to $20.34, lousy growth rate.

Key Takeaways from Columbia Banking System’s Q4 Results

It was good to see Columbia Banking System beat analysts’ EPS expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. Zooming out, we think this quarter featured some important positives. The stock traded up 2.4% to $30.35 immediately after reporting.

Indeed, Columbia Banking System had a rock-solid quarterly earnings result, but is this stock a good investment here? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).

Regional banking company Columbia Banking System will be announcing earnings results tomorrow after the bell. Here’s what you need to know.

Columbia Banking System beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $579 million, up 18% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ tangible book value per share estimates.

Is Columbia Banking System a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Columbia Banking System’s revenue to grow 41% year on year to $696.2 million, a reversal from the 2.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.72 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Columbia Banking System has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Columbia Banking System’s peers in the regional banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. ServisFirst Bancshares delivered year-on-year revenue growth of 22.9%, beating analysts’ expectations by 6.8%, and Simmons First National reported revenues up 17.2%, topping estimates by 5.3%.

Read our full analysis of ServisFirst Bancshares’s results here and Simmons First National’s results here.

Investors in the regional banks segment have had steady hands going into earnings, with share prices flat over the last month. Columbia Banking System’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $31.04 (compared to the current share price of $28.36).

Regional banking company Columbia Banking System will be announcing earnings results this Thursday after market close. Here’s what investors should know.

Columbia Banking System beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $579 million, up 18% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ tangible book value per share estimates.

Is Columbia Banking System a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Columbia Banking System’s revenue to grow 41% year on year to $696.2 million, a reversal from the 2.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.72 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Columbia Banking System has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Columbia Banking System’s peers in the regional banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. ServisFirst Bancshares delivered year-on-year revenue growth of 22.9%, beating analysts’ expectations by 6.8%, and Simmons First National reported revenues up 15.9%, topping estimates by 4.1%.

Read our full analysis of ServisFirst Bancshares’s results here and Simmons First National’s results here.

Investors in the regional banks segment have had steady hands going into earnings, with share prices flat over the last month. Columbia Banking System is down 2.3% during the same time and is heading into earnings with an average analyst price target of $31.04 (compared to the current share price of $28.36).