Columbia Banking System’s third quarter results reflected the impact of its recently closed Pacific Premier acquisition, as well as continued execution on organic growth initiatives. Management cited the completion of this key deal as strengthening the company’s deposit base, expanding its presence across the Western U.S., and enabling higher loan origination volumes. CEO Clint Stein credited the quarter’s momentum to “balance sheet optimization and relationship-driven growth,” while also highlighting the benefits of new product referrals and business line integration stemming from the merger.
Is now the time to buy COLB? Find out in our full research report (it’s free for active Edge members).
Columbia Banking System (COLB) Q3 CY2025 Highlights:
- Revenue: $582 million vs analyst estimates of $571 million (17.2% year-on-year growth, 1.9% beat)
- Adjusted EPS: $0.85 vs analyst estimates of $0.69 (23.2% beat)
- Adjusted Operating Income: $202 million vs analyst estimates of $235 million (34.7% margin, 14.1% miss)
- Market Capitalization: $7.93 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Columbia Banking System’s Q3 Earnings Call
- Christopher McGratty (KBW) asked about the pace and flexibility of the $700 million share repurchase. CEO Clint Stein and CFO Ivan Seda explained it is a 12-month program, with purchases adjusted for market conditions and capital surplus.
- David Feaster (Raymond James) inquired about the impact of an activist investor’s presentation and the bank’s strategic focus. Stein reiterated priorities: repeatable performance, capital returns, and integration of Pacific Premier, while expressing no interest in further M&A short-term.
- Jeff Rulis (D.A. Davidson) requested clarification on expected loan growth versus transactional loan runoff. Seda and Nixon confirmed a 5% annual growth target for core commercial loans, with overall loan balances muted by transactional loan reductions.
- Matthew Clark (Piper Sandler) asked about net interest margin (NIM) expectations for the next quarter. Seda projected a temporary increase due to merger-related income, but anticipated stability in NIM around 3.90%.
- Janet Lee (TD Cowen) questioned the trajectory of loan growth and balance sheet optimization. Seda stated most transactional loan runoff will occur over the next eight quarters, with organic growth expected to offset some reductions.
Catalysts in Upcoming Quarters
In the coming quarters, StockStory analysts will closely monitor (1) the pace and success of Pacific Premier integration, including cost savings and operational synergies; (2) evidence that the loan portfolio remix drives improved profitability despite limited balance sheet expansion; and (3) whether Columbia can sustain organic customer deposit and loan growth across its expanded regional footprint. Updates on share repurchases and regulatory capital strength will also be key indicators of execution.
Columbia Banking System currently trades at $26.61, up from $26 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.