Columbia Banking System Q4 2025 Shows Strong Financial Growth

By Chris Stiles • Friday, January 23 03:19 • Permanent Link

Columbia Banking System, Inc. has reported its fourth quarter 2025 financial results, which reflect significant changes from the third quarter of 2025. The net interest income for the fourth quarter increased to $627 million from $505 million in the third quarter, marking a substantial rise. Additionally, the net interest margin increased to 4.06%, up 22 basis points from the previous quarter.

Non-interest income also saw a notable increase, rising to $90 million, up $13 million from the third quarter. Excluding the impact of fair value and hedges, non-interest income increased by $16 million, driven by two additional months operating as a combined company and an increase in customer fee income.

However, non-interest expense also increased by $19 million, reaching $412 million in the fourth quarter, primarily due to two additional months operating as a combined company. Excluding specific expenses, non-interest expense was $373 million, marking a $66 million increase from the prior quarter.

The company’s return on average assets increased to 1.27% from 0.67% in the third quarter, while return on average common equity rose to 10.92% from 6.19%, and return on average tangible common equity increased to 15.24% from 8.58%.

In terms of the balance sheet, total assets were reported at $66.8 billion as of December 31, 2025, compared to $67.5 billion as of September 30, 2025. Gross loans and leases decreased to $47.8 billion from $48.5 billion, while total deposits decreased to $54.2 billion from $55.8 billion.

Regarding credit quality, the provision for credit losses was $23 million for the fourth quarter, down from $70 million in the third quarter. Net charge-offs were reported at 0.25% of average loans and leases, compared to 0.22% in the third quarter.

Columbia's book value per common share increased to $26.54 as of December 31, 2025, from $26.04 as of September 30, 2025. The company also repurchased $100 million of common stock under its current repurchase plan during the fourth quarter.

Today the company's shares have moved -1.16% to a price of $28.91. Check out the company's full 8-K submission here.

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