COLUMBIA BANKING SYSTEM, INC.
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 5, 2026
COLB$30.48+0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-04.
0000887343-26-000170
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0000887343-26-000188
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 207 previous paragraphs and 211 current paragraphs.
124 unchanged; 76 reworded; 11 added; 7 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 25 previous and 25 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
•Net interest margin, on a tax-equivalent basis, was 4.11% for the three months ended September 30, 2026, as compared to 3.93% for the three months ended June 30, 2026. The 18 basis point increase was primarily attributable to higher yields on earning assets, including loans and taxable investment securities, as well as lower average balances of higher-cost interest-bearing liabilities. The net interest margin also benefited from the absence of approximately $4 million of interest income reversals recognized during the prior quarter. The average cost of interest-bearing deposits declined by 1 basis point to 1.95%, while the cost of interest-bearing liabilities declined by 1 basis point to 2.20%.
Current report
•Net interest margin, on a tax-equivalent basis, was 4.00% for the nine months ended September 30, 2026, as compared to 3.73% for the nine months ended September 30, 2025. The 27 basis point increase was primarily attributable to lower costs on interest-bearing liabilities, which reflects a reduction in higher-cost funding sources, including brokered deposits, and our proactive management of deposit costs ahead of and following reductions to the federal funds rate between September 2025 and December 2025. These benefits were partially offset by lower earning-asset yields resulting from the lower interest rate environment for the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, partially offset by a reduction in lower-yielding real estate loans and increased interest rates on repricing fixed and adjustable rate loans.
Current report
•On October 20, 2026, Columbia's Board of Directors authorized the repurchase of up to $1.2 billion of the Company's common stock under a new repurchase plan. The authorization has no expiration date, but may be suspended, terminated or modified by Columbia's Board of Directors at any time. Future share repurchases will be made under the new program, and the Company does not intend to make additional repurchases under the previously approved $700 million share repurchase program, which was scheduled to expire in November 2026.
Current report
The cost of interest-bearing deposits for the three months ended September 30, 2026 was 1.95%, a decrease of 1 basis point compared to the three months ended June 30, 2026. The slight decrease reflected lower average balances of higher-cost time deposits. The cost of interest-bearing liabilities for the three months ended September 30, 2026 was 2.20%, a decrease of 1 basis point compared to the three months ended June 30, 2026. The decrease was driven by lower average balances of higher-cost interest-bearing deposits and borrowings, partially offset by a modest increase in borrowing costs.
Current report
Loss on investment securities, net increased during the three months ended September 30, 2026, as compared to the three months ended June 30, 2026, primarily due to unfavorable changes in the fair value of certain equity investments.
Current report
Loss on investment securities, net was $9 million for the nine months ended September 30, 2026, compared to a gain of $4 million for the nine months ended September 30, 2025, primarily reflecting unfavorable changes in the fair value of certain equity investments.
Current report
Salaries and employee benefits decreased during the three months ended September 30, 2026, as compared to the three months ended June 30, 2026, primarily reflecting lower compensation costs during the quarter.
Current report
Other expenses increased during the three months ended September 30, 2026, as compared to the three months ended June 30, 2026, primarily due to occupancy-related exit and disposal costs, and state and local business taxes, as well as other miscellaneous fluctuations in other expenses.
Current report
Subordinated Debentures and Junior Subordinated Debentures
Current report
On September 18, 2026, Columbia Bank completed the issuance of $250 million in aggregate principal amount of 6.721% Fixed-to-Fixed Rate Subordinated Notes due 2036. Interest is payable semiannually in arrears on March 18 and September 18 of each year, commencing March 18, 2027. The notes bear interest at a fixed annual rate of 6.721% for the first five years, after which the rate will reset to the Five-Year U.S. Treasury Rate plus 195 basis points. Debt issuance cost associated with the issuance were approximately $4 million, resulting in a carrying value of approximately $246 million at September 30, 2026. The Company intends to use a portion of the proceeds to redeem approximately $240 million in aggregate principal amount of the Company's junior subordinated debentures associated with certain trust preferred securities structures, with redemptions expected to occur during the fourth quarter of 2026 and early 2027.
Current report
During September 2026, the Bank issued $250 million in aggregate principal amount of subordinated notes due 2036. The notes bear interest at a fixed rate of 6.721%, after which the rate will reset to the Five-Year U.S. Treasury Rate plus 195 basis points. The net proceeds strengthened the Bank's liquidity position and are expected to support the planned redemption of approximately $240 million in aggregate principal amount of the Company's junior subordinated debentures associated with certain trust preferred securities structures. The subordinated notes qualify as Tier 2 regulatory capital and support the Company's overall capital management objectives.
Removed paragraphs (7)
Previous report
•Net interest margin, on a tax-equivalent basis, was 3.93% for the three months ended June 30, 2026, as compared to 3.96% for the three months ended March 31, 2026. The 3 basis point decrease was driven primarily by interest income reversals recorded during the three months ended June 30, 2026. Otherwise, net interest income was relatively consistent between periods as a lower yield on taxable securities was offset by lower deposit costs and continued improvement in the Company's funding mix, including a lower proportion of higher-cost brokered deposits. The average cost of interest-bearing deposits declined by 8 basis points to 1.96%, while the cost of interest-bearing liabilities declined 3 basis points to 2.21%. The decline in the yield on taxable securities between periods was driven by changes in prepayment speed expectations.
Previous report
•On October 29, 2025, Columbia's Board of Directors authorized the repurchase of up to $700 million of the Company's common stock under a repurchase program, which is scheduled to expire on November 30, 2026. Under this program, during the three and six months ended June 30, 2026, the Company repurchased 6.6 million and 13.1 million shares of common stock, respectively, for $199 million and $398 million, respectively. The timing and amount of common share repurchases remain subject to senior management discretion and subject to various factors, including, without limitation, Columbia’s capital position, financial performance, market conditions, and regulatory considerations. As of June 30, 2026, $202 million remained available under the repurchase authorization.
Previous report
The cost of interest-bearing deposits for the three months ended June 30, 2026 was 1.96%, a decrease of 8 basis points compared to the three months ended March 31, 2026, reflecting lower deposit pricing and reduced balances of higher-cost brokered deposits. The cost of interest-bearing liabilities for the three months ended June 30, 2026 was 2.21%, a decrease of 3 basis points compared to the three months ended March 31, 2026. The decrease reflects the same underlying drivers as interest-bearing deposits, partially offset by higher average borrowings.
Previous report
Customer fee income increased during the three months ended June 30, 2026, reflecting higher service charges on deposits and card-based fees. Other income also increased, driven in part by $3 million of BOLI death benefit proceeds from a single policy. Customer activity increased during the second quarter across several fee-based businesses compared to the seasonally slower first quarter.
Previous report
During the six months ended June 30, 2026, the Company completed the Pacific Premier systems conversion and consolidated nine branches as part of the integration process. Integration activities continued throughout the period, and all previously disclosed acquisition-related cost savings were realized as of June 30, 2026. These cost savings contributed to lower underlying non-interest expense and are expected to benefit future operating results.
Previous report
The Company maintains a disciplined approach to expense management while continuing to invest in customer-facing technology, relationship banking talent, and strategic market expansion. Management believes these investments support long-term operating efficiency, strengthen the customer experience, and enhance revenue growth opportunities in support of its Business Bank of Choice strategy.
Previous report
Junior and Other Subordinated Debentures
Reworded paragraphs (76)
Previous wording
•uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve or the effects of any declines in housing and CRE prices, high or increasing unemployment rates, renewed or sustained inflation, or any recession or slowdown in economic growth particularly in the western United States;
Current wording
•uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve or the effects of any declines in housing and CRE prices, high or increasing unemployment rates, renewed or continued high inflation, or any recession or slowdown in economic growth particularly in the western United States;
Previous wording
•Earnings per diluted common share was $0.73 for the three months ended June 30, 2026, as compared to $0.66 for the three months ended March 31, 2026. The increase was primarily attributable to lower non-interest expense and higher non-interest income, partially offset by lower net interest income and higher provision for income tax. Non-interest expense benefited from lower merger and restructuring expense, and the continued realization of cost savings associated with the Pacific Premier acquisition. The decrease in net interest income primarily reflects lower average interest-earning asset balances and lower yields on taxable securities, partially offset by lower interest expense as lower deposit costs offset the impact of higher average borrowings balances. Lower weighted-average diluted common shares outstanding for the three months ended June 30, 2026, as compared to the three months ended March 31, 2026, also contributed to the increase in earnings per diluted common share between periods, as Columbia repurchased 2.3% of its common shares outstanding during the second quarter.
Current wording
•Earnings per diluted common share was $0.78 for the three months ended September 30, 2026, as compared to $0.73 for the three months ended June 30, 2026. The increase was primarily attributable to higher net interest income and lower non-interest expense, partially offset by lower non-interest income, higher provision for credit losses, and higher provision for income tax. The increase in net interest income primarily reflected higher yields on interest-earning assets, including loans and taxable investment securities, partially offset by lower average interest-earning asset balances. Interest expense declined due to lower average balances of interest-bearing deposits and borrowings. Non-interest expense benefited from lower merger and restructuring expense. Lower weighted-average diluted common shares outstanding also contributed to the increase in earnings per diluted common share, reflecting the impact of common share repurchases during 2026.
Previous wording
•Non-interest income was $88 million for the three months ended June 30, 2026, as compared to $83 million for the three months ended March 31, 2026. Interest rate movements resulted in a net fair value loss of $3 million related to fair value adjustments and mortgage servicing rights hedging activity during the second quarter of 2026, as compared to a net fair value gain of $2 million during the first quarter of 2026. Excluding these impacts, the increase in non-interest income primarily reflects higher customer fee income, including service charges on deposits, card-based fees, and other income. Other income also benefited from $3 million of BOLI death benefit proceeds from a single policy, while trading, international banking, syndication, and swap-related revenue increased from the seasonally lower levels typically experienced during the first quarter.
Current wording
•Non-interest income was $80 million for the three months ended September 30, 2026, as compared to $88 million for the three months ended June 30, 2026. Interest rate movements resulted in a net fair value loss of $7 million during the third quarter of 2026, as compared to a net fair value gain of $3 million during the second quarter of 2026, which included the combined impact of mortgage servicing rights valuation and related hedging activity. The decrease in non-interest income also reflects $3 million in death benefit proceeds received during the second quarter related to a single policy, which was recorded in other income and did not repeat in the third quarter.
Previous wording
•Non-interest expense was $375 million for the three months ended June 30, 2026, a decrease of $19 million as compared to the three months ended March 31, 2026. The decrease was primarily due to a $15 million reduction in merger and restructuring expense following the systems conversion completed during the first quarter, as well as the continued realization of cost savings associated with the Pacific Premier acquisition.
Current wording
•Non-interest expense was $370 million for the three months ended September 30, 2026, a decrease of $5 million as compared to the three months ended June 30, 2026. The decrease was primarily due to a reduction in merger and restructuring expense following the Pacific Premier systems conversion completed during the first quarter.
Previous wording
•Earnings per diluted common share was $1.38 for the six months ended June 30, 2026, as compared to $1.14 for the six months ended June 30, 2025. The increase primarily reflects the acquisition of Pacific Premier and continued balance sheet optimization, including the replacement of lower-yielding transactional loans with relationship-based commercial loans and a reduced reliance on higher-cost wholesale funding sources, as well as growth in recurring fee income streams. These benefits were partially offset by an increase in weighted-average diluted common shares outstanding following the issuance of shares in connection with the acquisition.
Current wording
•Earnings per diluted common share was $2.16 for the nine months ended September 30, 2026, as compared to $1.53 for the nine months ended September 30, 2025. The increase primarily reflected the acquisition of Pacific Premier, continued balance sheet optimization, and growth in recurring fee income streams. Our balance sheet optimization activity included the expected runoff of lower-yielding transactional loans and a reduced reliance on higher-cost wholesale funding sources, as we intentionally shift the mix of our loans and deposits toward relationship-based commercial loans and customer deposit, respectively, in support of our Business Bank of Choice operating strategy. These benefits were partially offset by an increase in weighted-average diluted common shares outstanding following the issuance of shares in connection with the acquisition.
Previous wording
•Non-interest income was $171 million for the six months ended June 30, 2026, as compared to $131 million for the six months ended June 30, 2025. The increase was primarily driven by higher financial services and trust revenue reflecting the combined operations following the acquisition of Pacific Premier, including the addition of Pacific Premier's custodial trust business, as well as growth in customer-related fee income. These increases were partially offset by unfavorable fair value adjustments and hedging activity, resulting in a net fair value loss of $1 million for the six months ended June 30, 2026, as compared to a net fair value gain of $9 million for the prior-year period.
Current wording
•Non-interest income was $251 million for the nine months ended September 30, 2026, as compared to $208 million for the nine months ended September 30, 2025. The increase was primarily driven by higher financial services and trust revenue reflecting the combined operations following the acquisition of Pacific Premier, including the addition of Pacific Premier's custodial trust business, as well as growth in customer-related fee income. These increases were partially offset by unfavorable fair value adjustments, resulting in a net fair value loss of $8 million for the nine months ended September 30, 2026, as compared to a net fair value gain of $14 million for the prior-year period.
Previous wording
•Non-interest expense was $769 million for the six months ended June 30, 2026, as compared to $618 million for the six months ended June 30, 2025. The increase primarily reflects the combined operations following the Pacific Premier acquisition, including higher salaries and employee benefits, occupancy and software costs, intangible amortization, and merger and restructuring expense. The prior-year period included a $55 million legal settlement that did not occur in 2026.
Current wording
•Non-interest expense was $1.1 billion for the nine months ended September 30, 2026, as compared to $1.0 billion for the nine months ended September 30, 2025. The increase primarily reflected the combined operations following the Pacific Premier acquisition, including higher salaries and employee benefits, occupancy and equipment expense, deposit costs, and intangible amortization. These increases were partially offset by lower merger and restructuring expense and a $55 million legal settlement accrual recognized during the prior-year period that did not occur in 2026, as well as the realization of acquisition-related cost savings.
Previous wording
•Total loans and leases were $47.2 billion as of June 30, 2026, a decrease of $610 million as compared to December 31, 2025. The decrease primarily reflects ongoing balance sheet optimization efforts, including continued runoff of below-market-rate transactional loans, partially offset by growth in relationship-based commercial lending.
Current wording
•Total loans and leases were $46.9 billion as of September 30, 2026, a decrease of $861 million as compared to December 31, 2025. The decrease primarily reflects the Company's continued balance sheet optimization strategy, including ongoing runoff of below-market-rate transactional loans, partially offset by growth in relationship-based commercial lending.
Previous wording
•Total deposits were $52.1 billion as of June 30, 2026, a decrease of $2.2 billion as compared to December 31, 2025. The decrease primarily reflects a deliberate reduction in brokered deposits as part of the Company's funding optimization strategy, which targets the replacement of wholesale funding sources with relationship-based customer deposits over time. Seasonal tax payments in the early part of the second quarter also reduced deposits between periods.
Current wording
•Total deposits were $52.7 billion as of September 30, 2026, a decrease of $1.5 billion as compared to December 31, 2025. The decrease primarily reflects a deliberate reduction in brokered deposits as part of the Company's funding optimization strategy, which targets the replacement of wholesale funding sources with relationship-based customer deposits over time.
Previous wording
•Total consolidated assets were $65.4 billion as of June 30, 2026, as compared to $66.8 billion as of December 31, 2025. The decrease primarily reflects the continued execution of the Company's balance sheet optimization strategy, including lower cash and transactional real estate loan balances and a reduction in wholesale funding.
Current wording
•Total consolidated assets were $65.1 billion as of September 30, 2026, as compared to $66.8 billion as of December 31, 2025. The decrease primarily reflects the continued execution of the Company's balance sheet optimization strategy, including lower cash balances, reduced transactional real estate loan balances, and a decline in wholesale funding.
Previous wording
•Non-performing assets were $273 million, or 0.42% of total assets, as of June 30, 2026, as compared to $200 million, or 0.30% of total assets, as of December 31, 2025. Non-performing loans and leases were $268 million, or 0.57% of total loans and leases, as of June 30, 2026, compared to $198 million, or 0.41% of total loans and leases, as of December 31, 2025. As of June 30, 2026, non-performing loans included $78 million in government guaranteed balances. The increases in non-performing assets and loans primarily reflect adverse performance in a single agricultural industry relationship and are not indicative of broader portfolio deterioration.
Current wording
•Non-performing assets were $255 million, or 0.39% of total assets, as of September 30, 2026, as compared to $200 million, or 0.30% of total assets, as of December 31, 2025. Non-performing loans and leases were $250 million, or 0.53% of total loans and leases, as of September 30, 2026, compared to $198 million, or 0.41% of total loans and leases, as of December 31, 2025. As of September 30, 2026, non-performing loans included $71 million in government guaranteed balances. The increases in non-performing assets and loans primarily reflect adverse performance in a single agricultural industry relationship and are not indicative of broader portfolio deterioration.
Previous wording
•The ACL was $475 million as of June 30, 2026, a decrease of $10 million from December 31, 2025. The change reflects the combined effect of lower loan portfolio balances, updated economic assumptions, portfolio activity and credit migration, and changes to the Company's ACL estimation methodology and qualitative adjustments. For additional information regarding this change in estimate, see Note 5 –Allowance for Credit Losses.
Current wording
•The ACL was $480 million as of September 30, 2026, a decrease of $5 million from December 31, 2025. The change reflects the combined effect of lower loan portfolio balances, updated economic assumptions, portfolio activity and credit migration, and changes to the Company's ACL estimation methodology and qualitative adjustments. For additional information regarding this change in estimate, see Note 5 –Allowance for Credit Losses.
Previous wording
•Provision for credit losses was $27 million and $55 million for the three and six months ended June 30, 2026, as compared to $28 million for the three months ended March 31, 2026 and $57 million for the six months ended June 30, 2025. The provision reflects changes in variables that influence changes in the ACL between periods, as mentioned above.
Current wording
•Provision for credit losses was $33 million and $88 million for the three and nine months ended September 30, 2026, as compared to $27 million for the three months ended June 30, 2026 and $127 million for the nine months ended September 30, 2025. The prior-year nine-month period included a $70 million initial provision for non-PCD loans and unfunded commitments acquired in the Pacific Premier acquisition. The provision in the current periods reflects changes in variables that influence changes in the ACL between periods, as mentioned above.
Previous wording
•Total cash and cash equivalents were $1.8 billion as of June 30, 2026, a decrease of $611 million from December 31, 2025. The decline primarily reflects a reduction in interest-bearing cash balances as the Company optimized on balance-sheet liquidity levels during the six months ended June 30, 2026, consistent with improved liquidity risk metrics compared to the prior year. The Company manages its cash position with a comprehensive liquidity framework designed to maintain a high-quality liquid asset base, fund lending and investment activity, and reduce debt and other non-deposit liabilities when market conditions are favorable.
Current wording
•Total cash and cash equivalents were $1.7 billion as of September 30, 2026, a decrease of $643 million from December 31, 2025. The decline primarily reflects a reduction in interest-bearing cash balances as the Company continued to optimize on balance-sheet liquidity levels during the nine months ended September 30, 2026, reflecting stronger liquidity risk metrics relative to the prior year. The Company manages its cash position through a comprehensive liquidity framework designed to maintain a high-quality liquid asset base, fund lending and investment activity, and reduce debt and other non-deposit liabilities when market conditions are favorable.
Previous wording
•Including secured off-balance sheet lines of credit, total available liquidity was $25.6 billion as of June 30, 2026, representing 39% of total assets, 49% of total deposits, and 125% of estimated uninsured deposits.
Current wording
•Including secured off-balance sheet lines of credit, total available liquidity was $26.0 billion as of September 30, 2026, representing 40% of total assets, 49% of total deposits, and 121% of estimated uninsured deposits.
Previous wording
•The Company's total risk-based capital ratio was 13.5% and its common equity tier 1 ("CET1") capital ratio was 11.7% as of June 30, 2026. As of December 31, 2025, the Company's total risk-based capital ratio was 13.6% and its CET1 capital ratio was 11.8%. The modest decline in regulatory capital ratios primarily reflects capital actions during the six months ended June 30, 2026, including common share repurchases, while remaining well in excess of regulatory well-capitalized standards.
Current wording
•The Company's total risk-based capital ratio was 13.9% and its common equity tier 1 ("CET1") capital ratio was 11.6% as of September 30, 2026. As of December 31, 2025, the Company's total risk-based capital ratio was 13.6% and its CET1 capital ratio was 11.8%. The modest decline in regulatory capital ratios primarily reflects capital actions during the nine months ended September 30, 2026, including common share repurchases, partially offset by our balance sheet optimization activity and the issuance of $250 million of subordinated notes that qualify as Tier 2 regulatory capital. The Company remained well in excess of regulatory well-capitalized standards.
Previous wording
•Columbia declared a quarterly cash dividend of $0.37 per common share, which was paid to shareholders on June 15, 2026.
Current wording
•Columbia declared a quarterly cash dividend of $0.37 per common share, which was paid to shareholders on September 14, 2026. Year-to-date, Columbia has paid cash dividends of $1.11 per common share.
Previous wording
Our critical accounting estimates are described in detail in the Critical Accounting Estimates section of our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026. The consolidated financial statements are prepared in conformity with GAAP and follow general practices within the financial services industry in which the Company operates. This preparation requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the financial statements; accordingly, as this information changes, actual results could differ from the estimates, assumptions, and judgments reflected in the financial statements. Certain estimates inherently have a greater reliance on the use of assumptions and judgments and, as such, have a greater possibility of producing results that could be materially different than originally reported. Management believes that the estimate for the ACL and business combinations are important to the portrayal of the Company's financial condition and results of operations and require difficult, subjective, or complex judgments. There have been no material changes in the methodology of these estimates during the six months ended June 30, 2026.
Current wording
Our critical accounting estimates are described in detail in the Critical Accounting Estimates section of our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026. The consolidated financial statements are prepared in conformity with GAAP and follow general practices within the financial services industry in which the Company operates. This preparation requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes. These estimates, assumptions, and judgments are based on information available as of the date of the financial statements; accordingly, as this information changes, actual results could differ from the estimates, assumptions, and judgments reflected in the financial statements. Certain estimates inherently have a greater reliance on the use of assumptions and judgments and, as such, have a greater possibility of producing results that could be materially different than originally reported. Management believes that the estimates for the ACL and business combinations are important to the portrayal of the Company's financial condition and results of operations and require difficult, subjective, or complex judgments. There have been no material changes in the methodology of these estimates during the nine months ended September 30, 2026.
Previous wording
Columbia's financial results for periods ended prior to August 31, 2025, the acquisition date of Pacific Premier, reflect Columbia's results only on a standalone basis. Accordingly, Columbia's reported financial results for the first eight months of 2025 include only Columbia's financial results through the closing of the acquisition. As a result, Columbia's financial results for the six months ended June 30, 2026, may not be directly comparable to results reported for periods prior to the acquisition or to future periods that fully reflect the combined operations.
Current wording
Columbia's financial results for periods ended prior to August 31, 2025, the acquisition date of Pacific Premier, reflect Columbia's results only on a standalone basis. Accordingly, Columbia's reported financial results for the first eight months of 2025 include only Columbia's financial results through the closing of the acquisition. As a result, Columbia's financial results for the nine months ended September 30, 2026, may not be directly comparable to results reported for periods prior to the acquisition or to future periods that fully reflect the combined operations.
Previous wording
The Company reported net income of $208 million for the three months ended June 30, 2026, compared to $192 million for the three months ended March 31, 2026. The increase was primarily attributable to a $19 million decrease in non-interest expense, reflecting lower merger and restructuring expense and the continued realization of previously disclosed cost savings associated with the Pacific Premier acquisition, as well as a $5 million increase in non-interest income. These favorable impacts were partially offset by a $5 million decrease in net interest income and a $4 million increase in provision for income taxes. The decrease in net interest income primarily reflects lower average interest-earning asset balances and lower yields on taxable investment securities, partially offset by interest expense, as lower deposit costs offset the impact of higher average borrowing balances.
Current wording
The Company reported net income of $220 million for the three months ended September 30, 2026, compared to $208 million for the three months ended June 30, 2026. The increase was primarily attributable to a $26 million increase in net interest income and a $5 million decrease in non-interest expense, reflecting lower merger and restructuring expense. These favorable impacts were partially offset by an $8 million decrease in non-interest income, a $6 million increase in provision for credit losses, and a $5 million increase in provision for income taxes. The increase in net interest income primarily reflected higher yields on interest-earning assets, including loans and taxable investment securities, partially offset by lower average interest-earning asset balances. Interest expense declined due to lower average balances of interest-bearing deposits and borrowings.
Previous wording
For the six months ended June 30, 2026, the Company reported net income of $400 million, compared to $239 million for the same period in 2025. The increase primarily reflects higher net interest income and non-interest income of $312 million and $40 million, respectively. These increases largely reflect the impact of the Pacific Premier acquisition, which did not contribute to the Company's results during the comparable prior-year period, as well as our continued balance sheet optimization efforts, including the replacement of transactional loans and wholesale funding sources with relationship-based commercial lending and customer deposits, as well as growth in recurring fee income streams, which improved profitability. These increases were partially offset by higher non-interest expense of $151 million and income tax expense of $42 million. The increase in FHLB advances was driven by a shift in the Bank's funding mix during 2026, as FHLB advance rates were more favorable than alternative wholesale funding sources, including brokered deposits. The increase in non-interest expense reflects increased salaries and employee benefits, occupancy, deposit costs, and higher merger and restructuring expense associated with the Pacific Premier acquisition, partially offset by a $55 million accrual for a legal settlement recognized in the prior-year period that did not recur. The increase in income tax expense primarily reflects higher pre-tax income resulting from the acquisition.
Current wording
For the nine months ended September 30, 2026, the Company reported net income of $620 million, compared to $335 million for the same period in 2025. The increase primarily reflected higher net interest income and non-interest income of $422 million and $43 million, respectively. These increases largely reflected the impact of the Pacific Premier acquisition, which contributed to results throughout 2026 but only contributed to results for one month during the comparable prior-year period, as well as our continued balance sheet optimization efforts, including the expected runoff of below-market-rate transactional loans, growth in relationship-based commercial lending, and replacement of wholesale funding sources with customer deposits. These actions improved the overall earning asset and funding mix and contributed to higher profitability. These favorable impacts were partially offset by higher non-interest expense of $128 million and income tax expense of $91 million. The increase in non-interest expense primarily reflected higher salaries and employee benefits, occupancy and equipment expense, deposit costs, and intangible amortization. These increases were partially offset by lower merger and restructuring expense and a $55 million legal settlement accrual recognized during the prior-year period that did not recur, as well as the realization of acquisition-related cost savings, which were essentially completed as of June 30, 2026. The increase in income tax expense primarily reflected higher pre-tax income resulting from the acquisition.
Previous wording
Net interest income for the three months ended June 30, 2026 was $589 million, a decrease of $5 million compared to the three months ended March 31, 2026, primarily driven by a $6 million decrease in interest income due to $4 million of interest income reversals as well as lower average interest-earning asset balances and lower yields on taxable securities. The decrease in interest income was partially offset by a $1 million decrease in interest expense, reflecting lower rates paid on interest-bearing deposits and changes in funding composition, including lower balances of higher-cost brokered deposits, partially offset by higher average borrowings balances.
Current wording
Net interest income for the three months ended September 30, 2026 was $615 million, an increase of $26 million compared to the three months ended June 30, 2026, primarily driven by a $22 million increase in interest income, reflecting higher yields on loans and taxable investment securities, and the absence of $4 million of interest income reversals recognized during the prior quarter, partially offset by lower average interest-earning asset balances. The increase in net interest income also reflected a $4 million decrease in interest expense, primarily due to lower average balances of interest-bearing deposits and borrowings, as funding costs declined slightly.
Previous wording
Net interest margin, calculated as net interest income as a percentage of average interest-earning assets on a fully tax-equivalent basis, was 3.93% for the three months ended June 30, 2026, as compared to 3.96% for the three months ended March 31, 2026. The 3 basis point decrease was driven primarily by interest income reversals during the three months ended June 30, 2026. Net interest margin was otherwise consistent between periods, as a lower yield on taxable securities was offset by lower funding costs resulting from reduced balances of higher-cost brokered deposits and lower deposit pricing.
Current wording
Net interest margin, calculated as net interest income as a percentage of average interest-earning assets on a fully tax-equivalent basis, was 4.11% for the three months ended September 30, 2026, as compared to 3.93% for the three months ended June 30, 2026. The 18 basis point increase was driven primarily by higher yields on earning assets, including loans and taxable investment securities, as well as favorable funding mix trends. Customer deposit growth supported a reduction in higher-cost wholesale funding sources while continued portfolio remix toward relationship-based commercial lending contributed to higher loan yields. The net interest margin also benefited from the absence of interest income reversals recognized during the prior quarter.
Previous wording
Net interest income for the six months ended June 30, 2026 was $1.2 billion, an increase of $312 million compared to the six months ended June 30, 2025. The increase was primarily driven by an additional $308 million of interest income resulting from higher average balances of loans and leases and investment securities acquired in the Pacific Premier acquisition, as well as Columbia's balance sheet optimization activity. Acquired balances were recorded at fair value as of August 31, 2025.
Current wording
Net interest income for the nine months ended September 30, 2026 was $1.8 billion, an increase of $422 million compared to the nine months ended September 30, 2025. The increase was primarily driven by a $400 million increase in interest income, reflecting higher average balances of loans and leases and investment securities acquired in the Pacific Premier acquisition, as well as Columbia's balance sheet optimization activities. Acquired balances were recorded at fair value as of August 31, 2025. The increase in interest income also reflects a $22 million decrease in interest expense, primarily due to lower funding costs and a favorable shift in the funding mix away from higher-cost sources.
Previous wording
•Net interest margin, on a tax-equivalent basis, was 3.94% for the six months ended June 30, 2026, as compared to 3.67% for the six months ended June 30, 2025. The increase was primarily attributable to lower funding costs and a favorable balance sheet mix shift toward lower-cost customer deposits and away from higher-cost wholesale funding sources, including borrowings and brokered deposits. These benefits were partially offset by lower earning-asset yields resulting from the lower rate environment.
Current wording
Net interest margin, calculated on a fully tax-equivalent basis, was 4.00% for the nine months ended September 30, 2026, as compared to 3.73% for the nine months ended September 30, 2025. The 27 basis point increase was primarily attributable to lower costs on interest-bearing liabilities and a favorable funding mix shift toward lower-cost customer deposits and away from higher-cost funding sources, including brokered deposits. The cost of interest-bearing liabilities was 2.22% for the nine months ended September 30, 2026, compared to 2.74% for the nine months ended September 30, 2025, a decrease of 52 basis points. The decrease was driven primarily by reductions in short-term interest rates and continued optimization of the Company's funding mix, which contributed to lower average balances of higher-cost funding sources. These benefits were partially offset by lower earning-asset yields.
Previous wording
Net interest margin, calculated on a fully tax-equivalent basis, was 3.94% for the six months ended June 30, 2026, as compared to 3.67% for the six months ended June 30, 2025. The increase was primarily attributable to lower funding costs and a favorable balance sheet mix shift toward lower-cost customer deposits and away from higher-cost wholesale funding sources, which include borrowings and brokered deposits. The cost of interest-bearing liabilities was 2.23% for the six months ended June 30, 2026, compared to 2.79% for the six months ended June 30, 2025, a decrease of 56 basis points. The decrease was driven primarily by reductions in the federal funds rate, continued optimization of the Company's funding mix, and lower balances of higher-cost funding sources. These benefits were partially offset by lower earning-asset yields. The yield on earning assets was 5.42% for the six months ended June 30, 2026, compared to 5.56% for the six months ended June 30, 2025, a decrease of 14 basis points. The yield on loans and leases was 5.78% for the six months ended June 30, 2026, as compared to 5.96% for the six months ended June 30, 2025, a decrease of 18 basis points, reflecting the declining rate environment during 2025, partially offset by the replacement of lower-yielding transactional loans with relationship-based commercial loans. An increase in the yield on investment securities reflects higher-yielding new purchases, including acquired securities recorded at fair value in connection with the Pacific Premier acquisition, replacing principal paydowns from lower-yielding securities, partially offsetting the decrease in the yield on loans and leases.
Current wording
The yield on earning assets was 5.46% for the nine months ended September 30, 2026, compared to 5.58% for the nine months ended September 30, 2025, a decrease of 12 basis points. The yield on loans and leases was 5.82% for the nine months ended September 30, 2026, as compared to 5.96% for the nine months ended September 30, 2025, a decrease of 14 basis points, reflecting the lower interest rate environment, partially offset by the continued expected runoff of lower-yielding transactional loans and growth in higher-yielding relationship-based commercial loans. The yield on investment securities increased, reflecting higher-yielding new purchases, including acquired securities recorded at fair value in connection with the Pacific Premier acquisition, replacing principal paydowns from lower-yielding securities.
Previous wording
During 2025, the Federal Reserve reduced the target range for the federal funds rate by an aggregate of 0.75% through a series of 0.25% reductions primarily implemented in the fourth quarter. The target range remained unchanged during the first six months of 2026. As of June 30, 2026, the balance sheet remains modestly liability sensitive. Management expects customer deposit balance trends, replacement of wholesale funding sources with relationship-based deposits, and continued optimization of the funding mix to be key drivers of net interest margin performance as the Company continues to target a lower reliance on brokered deposits and FHLB advances.
Current wording
During 2025, the Federal Reserve reduced the target range for the federal funds rate by an aggregate of 0.75% through a series of 0.25% reductions primarily implemented in the fourth quarter. On September 16, 2026, the Federal Reserve increased the target range by 25 basis points to 3.75% to 4.00%. As of September 30, 2026, the balance sheet was slightly asset sensitive. Management expects customer deposit balance trends, continued growth in relationship-based deposits, reductions in borrowings and other wholesale funding sources, and ongoing funding mix optimization to remain key drivers of net interest margin performance.
Previous wording
The Company had a $27 million provision for credit losses for the three months ended June 30, 2026, as compared to a $28 million provision for the three months ended March 31, 2026. The provision remained relatively stable quarter over quarter, reflecting the combined effect of lower loan portfolio balances, updated economic assumptions, portfolio activity and credit migration, and changes to the Company's ACL estimation methodology and qualitative adjustments. As an annualized percentage of average outstanding loans and leases, the provision for credit losses recorded for the three months ended June 30, 2026 was 0.23%, as compared to 0.24% for the three months ended March 31, 2026.
Current wording
The Company had a $33 million provision for credit losses for the three months ended September 30, 2026, as compared to a $27 million provision for the three months ended June 30, 2026. The increase in provision reflects updated economic assumptions, portfolio activity and credit migration, and changes to the Company's ACL estimation methodology and qualitative adjustments, partially offset by lower loan portfolio balances. As an annualized percentage of average outstanding loans and leases, the provision for credit losses recorded for the three months ended September 30, 2026 was 0.28%, as compared to 0.23% for the three months ended June 30, 2026.
Previous wording
For the three months ended June 30, 2026 and March 31, 2026, net charge-offs were $30 million and $35 million, respectively. As an annualized percentage of average outstanding loans and leases, net charge-offs for the three months ended June 30, 2026 were 0.25%, as compared to 0.30% for the three months ended March 31, 2026. Net charge-offs within the FinPac portfolio were $15 million for the three months ended June 30, 2026, as compared to $14 million three months ended March 31, 2026. Excluding the FinPac portfolio, net charge-offs were $15 million, as compared to $21 million for the prior quarter, reflecting improved charge-off performance across the remainder of the loan portfolio.
Current wording
For the three months ended September 30, 2026 and June 30, 2026, net charge-offs were $28 million and $30 million, respectively. As an annualized percentage of average outstanding loans and leases, net charge-offs for the three months ended September 30, 2026 were 0.24%, as compared to 0.25% for the three months ended June 30, 2026. Net charge-offs within the FinPac portfolio were $11 million for the three months ended September 30, 2026, as compared to $15 million three months ended June 30, 2026. Excluding the FinPac portfolio, net charge-offs were $17 million, as compared to $15 million for the prior quarter, reflecting generally stable charge-off performance across the remainder of the loan portfolio.
Previous wording
The Company had a $55 million provision for credit losses for the six months ended June 30, 2026, as compared to $57 million for the six months ended June 30, 2025. The decrease in the provision reflects changes in loan portfolio balances, economic assumptions, portfolio activity and credit migration, and changes to the Company's ACL estimation methodology and qualitative adjustments. As an annualized percentage of average outstanding loans and leases, the provision for credit losses recorded for the six months ended June 30, 2026 was 0.23%, as compared to 0.30% for the six months ended June 30, 2025.
Current wording
The Company had an $88 million provision for credit losses for the nine months ended September 30, 2026, as compared to $127 million for the nine months ended September 30, 2025. The decrease was driven by the $70 million provision for credit losses attributed to the acquired non-PCD loans and unfunded commitments recorded in the prior year related to our acquisition of Pacific Premier. The change in the provision also reflects updated economic assumptions, portfolio activity and credit migration, and changes to the Company's ACL estimation methodology and qualitative adjustments, as well as changes in the balance and composition of the Company's loan portfolio. As an annualized percentage of average outstanding loans and leases, the provision for credit losses recorded for the nine months ended September 30, 2026 was 0.25%, as compared to 0.44% for the nine months ended September 30, 2025.
Previous wording
For the six months ended June 30, 2026, net charge-offs were $65 million, as compared to $59 million for the six months ended June 30, 2025. As an annualized percentage of average outstanding loans and leases, net charge-offs for the six months ended June 30, 2026 were 0.28%, as compared to 0.31% for the six months ended June 30, 2025. Net charge-offs within the FinPac portfolio were $29 million for the six months ended June 30, 2026, as compared to $31 million for the six months ended June 30, 2025, reflecting continued improvement in the FinPac lease portfolio. Excluding the FinPac portfolio, net charge-offs were $36 million and $28 million for the six months ended June 30, 2026 and 2025, respectively, with the variance driven primarily by commercial loan charge-offs.
Current wording
For the nine months ended September 30, 2026, net charge-offs were $93 million, as compared to $81 million for the nine months ended September 30, 2025. As an annualized percentage of average outstanding loans and leases, net charge-offs for the nine months ended September 30, 2026 were 0.26%, as compared to 0.28% for the nine months ended September 30, 2025. Net charge-offs within the FinPac portfolio were $40 million for the nine months ended September 30, 2026, as compared to $47 million for the nine months ended September 30, 2025, reflecting continued improvement in the FinPac lease portfolio. Excluding the FinPac portfolio, net charge-offs were $53 million and $34 million for the nine months ended September 30, 2026 and 2025, respectively, with the variance driven primarily by commercial loan charge-offs.
Previous wording
Non-accrual leases and equipment finance agreements totaled $16 million at June 30, 2026 and carried a related ACL of $14 million. Under the Company's CECL methodology, homogeneous leases and equipment finance agreements continue to carry an ACL until charged off at 181 days past due. Management does not expect additional material losses on these balances absent further deterioration in collateral values.
Current wording
Non-accrual leases and equipment finance agreements totaled $18 million at September 30, 2026 and carried a related ACL of $15 million. Under the Company's CECL methodology, homogeneous leases and equipment finance agreements continue to carry an ACL until charged off at 181 days past due. Management does not expect additional material losses on these balances absent further deterioration in collateral values.
Previous wording
Residential mortgage banking revenue decreased during the three months ended June 30, 2026. The decrease was primarily driven by a lower gain on the fair value of the MSR asset related to changes in valuation inputs and assumptions, with a $1 million gain recognized during the three months ended June 30, 2026, compared to a gain of $6 million for the three months ended March 31, 2026.
Current wording
Residential mortgage banking revenue increased during the three months ended September 30, 2026, reflecting a higher gain on the fair value of the MSR asset related to changes in valuation inputs and assumptions, with a $13 million gain recognized during the three months ended September 30, 2026, compared to a gain of $1 million for the three months ended June 30, 2026. Partially offsetting this favorable change, there was an unfavorable change of $10 million related to losses on MSR hedges when compared to the three months ended June 30, 2026.
Previous wording
Financial services and trust revenue increased during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025. The increase reflects the combined operations following the acquisition of Pacific Premier, which contributed to higher transaction volumes and an expanded client base. In addition, the Pacific Premier acquisition significantly expanded the Company's wealth management platform through the addition of Pacific Premier's custodial trust business, resulting in a 173% increase in financial services and trust revenue compared to the prior-year period.
Current wording
Financial services and trust revenue increased during the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025. The increase reflects the combined operations following the acquisition of Pacific Premier, which contributed to higher transaction volumes and an expanded client base. In addition, the Pacific Premier acquisition significantly expanded the Company's wealth management platform through the addition of Pacific Premier's custodial trust business, resulting in a 125% increase in financial services and trust revenue compared to the prior-year period.
Previous wording
Gain (loss) on certain loans held for investment, at fair value, resulted in a loss of $3 million for the six months ended June 30, 2026, compared to a gain of $7 million for the six months ended June 30, 2025. The variance was primarily driven by changes in market interest rates and related fair value adjustments between periods.
Current wording
Gain (loss) on certain loans held for investment, at fair value, resulted in a loss of $6 million for the nine months ended September 30, 2026, compared to a gain of $11 million for the nine months ended September 30, 2025. The variance was primarily driven by changes in market interest rates and related fair value adjustments between periods.
Previous wording
Other income increased during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, primarily due to $3 million of BOLI death benefit proceeds from a single policy, as well as increased miscellaneous income, swap related income, loan related fees, and a reduction in swap derivative loss, resulting in a net increase of $13 million between periods.
Current wording
Other income increased during the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, primarily reflecting higher miscellaneous income, including $3 million of BOLI death benefit proceeds from a single policy, higher loan related fees, and improved swap derivative results. Collectively, these items contributed to a net increase of $17 million between periods.
Previous wording
Merger and restructuring expense decreased during the three months ended June 30, 2026, as compared to the three months ended March 31, 2026, reflecting lower personnel-related costs, legal and professional fees, and occupancy and benefit expense, as integration activities associated with the Pacific Premier acquisition continued to wind down.
Current wording
Merger and restructuring expense decreased during the three months ended September 30, 2026, as compared to the three months ended June 30, 2026, reflecting lower personnel-related costs, legal and professional fees, and occupancy and benefit expense, as integration activities associated with the Pacific Premier acquisition are essentially complete.
Previous wording
Salaries and employee benefits increased during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, primarily due to the addition of Pacific Premier employees following the acquisition.
Current wording
Salaries and employee benefits increased during the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, primarily reflecting the addition of Pacific Premier employees for the full year-to-date period following the acquisition, partially offset by savings associated with the acquisition.
Previous wording
Occupancy and equipment, net increased during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, primarily due to the expanded branch network and additional technology and software costs resulting from the acquisition of Pacific Premier.
Current wording
Occupancy and equipment, net increased during the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, primarily reflecting a larger branch network and additional technology and software-related costs associated with operations acquired from Pacific Premier, partially offset by savings associated with the acquisition.
Previous wording
Deposit costs increased during the six months ended June 30, 2026, as compared to the six months ended June 30, 2025, primarily driven by higher HOA-related fees associated with the growth in the Company's HOA banking business as part of the acquisition of Pacific Premier.
Current wording
Deposit costs increased during the nine months ended September 30, 2026, as compared to the nine months ended September 30, 2025, primarily driven by higher HOA-related fees associated with the expanded HOA banking business as part of the Pacific Premier acquisition.
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