Columbia Banking System (COLB) Q3 2026 Earnings Call: NIM Reaches 4.11%, $1.2B Buyback
Source Tradingkey
Key Takeaways
- Columbia Banking System reported Q3 2026 EPS of $0.78 and operating EPS of $0.82. Operating pre-provision net revenue rose 7% quarter over quarter and 25% year over year.
- Net interest margin reached 4.11%. Excluding accelerated repayments and the prior quarter’s credit-related interest reversals, NIM expanded 12 basis points sequentially.
- Customer deposits increased by nearly $1.2 billion, allowing Columbia to reduce wholesale funding by $1.5 billion. Total deposits rose to $52.7 billion from $52.1 billion at June 30.
- Loans declined to $46.9 billion from $47.2 billion as elevated commercial real estate payoffs and balance-sheet optimization offset relationship-based commercial production.
- The board authorized a new $1.2 billion share repurchase program after the previous authorization reduced the common share count by 8%. Management expects Q4 repurchases of $150 million to $200 million.
- Management guided to Q4 NIM of approximately 4.05%, operating noninterest revenue in the mid-$80 million range and noninterest expense excluding CDI amortization of $330 million to $335 million.
Core Financial Data
| Metric | Q3 2026 result | Change or context |
|---|---|---|
| EPS | $0.78 | GAAP basis |
| Operating EPS | $0.82 | Excludes items identified in the company’s non-GAAP disclosure |
| Operating pre-provision net revenue | — | Up 7% quarter over quarter and 25% year over year |
| Operating net income | — | Up 6% quarter over quarter and 12% year over year |
| Average earning assets | $59.8 billion | Modest sequential contraction |
| Net interest margin | 4.11% | Adjusted sequential expansion of 12 basis points |
| Noninterest income | $80 million | $87 million on an operating basis |
| Operating noninterest expense | $365 million | Consistent with the prior quarter |
| Provision expense | $33 million | Reflected portfolio runoff, credit migration and economic forecast changes |
| Total loans | $46.9 billion | Down from $47.2 billion at June 30 |
| Total deposits | $52.7 billion | Up from $52.1 billion at June 30 |
| Allowance for credit losses | 1.02% of total loans | 1.25% including acquired-loan credit discounts |
| CET1 ratio | 11.5% | Slight sequential decline |
| Total risk-based capital ratio | 13.8% | Benefited from $250 million of subordinated notes issued during Q3 |
| Tangible book value per share | $18.10 | Declined mainly because higher rates increased other comprehensive loss |
| ROAA | 1.4% | Q3 2026 |
| ROTCE | Above 17% | Q3 2026 |
Business and Operating Performance
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