Key Points
-
Interested in Columbia Banking System, Inc.? Here are five stocks we like better.
-
Profitability improved: Columbia Banking System reported third-quarter EPS of $0.78 and operating EPS of $0.82, with operating pre-provision net revenue up 7% sequentially and 25% year over year. Net interest margin expanded to 4.11%, supported by balance-sheet optimization and lower wholesale funding.
-
Deposits and commercial banking strengthened: Total deposits rose to $52.7 billion, while commercial loans grew to 43% of the portfolio despite overall loans declining modestly. Management expects loan balances to remain flat to slightly lower as it prioritizes relationship-based commercial lending.
-
Shareholder returns and capital remain priorities: The board authorized a new $1.2 billion buyback program, with $150 million to $200 million expected in fourth-quarter repurchases. Credit metrics remained stable, although planned trust-preferred securities redemptions are expected to reduce the risk-based capital ratio by about 50 basis points.
Columbia Banking System (NASDAQ:COLB) reported third-quarter 2026 earnings per share of $0.78 and operating EPS of $0.82, as the regional bank cited balance-sheet optimization, customer deposit growth and expense discipline as drivers of improved profitability.
Operating pre-provision net revenue rose 7% from the second quarter and 25% from a year earlier, while operating net income increased 6% sequentially and 12% year over year The year-over-year comparison also benefited from the addition of Pacific Premier, whose acquisition closed in August 2025
→ Aurora Rejects Curaleaf’s Higher Bid, But the Takeover Fight Isn’t Over
Chairman, Chief Executive Officer and President Clint Stein said the company has focused on consistent performance, reshaping its balance sheet and returning excess capital to shareholders. Columbia returned more than $1 billion to shareholders over the past year through dividends and share repurchases, he said, and completed a buyback program that reduced its common share count by 8% over the authorization period.
The board has authorized a new $1.2 billion share repurchase program. Columbia expects to repurchase between $150 million and $200 million of shares during the fourth quarter, Seda said.
Margin expansion and funding changes
→ Could Quantinuum’s Breakthrough Make Its Sell-Off a Bargain?
Net interest margin rose to 4.11% in the third quarter. Adjusting for a 3-basis-point benefit from accelerated repayments during the quarter and a 3-basis-point effect from one-time credit-related interest reversals in the prior quarter, Seda said margin expanded 12 basis points sequentially.
