COLB

- 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. - 4 Dividend Growth Stocks the Trade Tariffs Can't Touch 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, according to Chief Financial Officer Ivan Seda. 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. → 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. Average earning assets totaled $59.8 billion, reflecting modest contraction as the company continued to optimize its balance sheet and experienced elevated commercial real estate payoffs. Columbia reduced wholesale funding by $1.5 billion between June 30 and Sept. 30, including public wholesale balances, as customer deposits increased. → IonQ's Bold Expansion Could Leave Shareholders Paying the Price The company forecast fourth-quarter net interest margin of about 4.05%, including the modest negative carry from holding excess subordinated debt during the quarter while it works through planned trust-preferred securities redemptions. Seda said Columbia expects margin to remain above 4%, excluding unusual items, and to operate in the low-4% range over the next several quarters. During the third quarter, Columbia issued $250 million of subordinated notes. The company expects to use the proceeds to redeem about $240 million of junior subordinated debentures tied to trust-preferred securities through early 2027. The redemptions are expected to reduce the total risk-based capital ratio by roughly 50 basis points, all else equal. Co-President Tory Nixon said the loan portfolio continues to shift toward relationship-based commercial banking. Commercial loans, including owner-occupied commercial real estate, represented 43% of the total portfolio at quarter end, compared with 42% at June 30 and 39% a year earlier. Total loans declined to $46.9 billion from $47.2 billion in the prior quarter, though the rate of decline slowed. Columbia originated $1.2 billion in loans during the quarter, with nearly 70% tied to commercial lending. Management said it continued to avoid transactions with pricing, leverage levels or non-recourse structures it considered unattractive. Columbia expects loan balances to remain flat to modestly lower through the fourth quarter and into early 2027 as it continues to run off transactional lending and emphasizes commercial relationship growth. Nixon said commercial and industrial lending has grown at a low- to mid-single-digit annualized pace in recent quarters. Total deposits rose to $52.7 billion from $52.1 billion at June 30. Customer deposits increased by nearly $1.2 billion during the quarter, aided by seasonal balances and new customer activity, while the company intentionally reduced public wholesale and brokered balances. The average cost of interest-bearing deposits declined 1 basis point to 1.95%, while the spot cost of deposits stood at 1.96% at Sept. 30. Seda said management continues to use a through-the-cycle deposit beta assumption of roughly 50%. Management also pointed to growth in fee-generating businesses. Nixon said treasury management revenue increased 7% year over year, international banking rose 19%, commercial card income increased 23%, and merchant card income rose 11%. He said commercial deposit growth was led in part by Southern California teams acquired through Pacific Premier. Operating noninterest expense was $365 million, unchanged from the second quarter. Excluding core deposit intangible amortization, Columbia expects fourth-quarter noninterest expense of $330 million to $335 million as it continues to invest in the franchise. Seda said the company identified roughly $132 million to $133 million in savings tied to the Pacific Premier integration, above its original $127 million target. For 2027, he said an expense-growth assumption around 2% would be reasonable as the bank balances continued investments in people, technology and infrastructure with cost discipline. Provision expense was $33 million in the quarter. The allowance for credit losses was 1.02% of total loans at quarter end, or 1.25% including the credit discount on acquired loans. Seda said credit metrics remained stable and healthy, and characterized the reserve change as primarily reflecting the economic forecast used in credit models rather than portfolio-specific deterioration. Columbia's CET1 ratio was 11.5% at quarter end, while its total risk-based capital ratio rose to 13.8%. Tangible book value per share declined to $18.10, primarily because higher interest rates increased accumulated other comprehensive losses. Management said it closed four branches during the quarter while opening a branch and a financial hub in Utah. Stein said the company will continue to assess branch density, customer demand and opportunities in growth markets, while maintaining that branches remain important to its relationship-banking strategy. Columbia Banking System, Inc is a bank holding company headquartered in Tacoma, Washington. It operates through Umpqua Bank, a full-service financial institution serving consumers, businesses, professionals and institutions. Umpqua Bank provides deposit accounts, residential and commercial lending, business banking, treasury and cash-management services, mortgage banking, personal banking and wealth-management solutions. Its offerings include checking and savings accounts, commercial real estate and business loans, consumer credit, online and mobile banking, and investment and advisory services. Columbia Banking System traces its roots to the formation of Columbia State Bank in Washington in 1993. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Columbia Banking System Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

This article first appeared on GuruFocus. - EPS: $0.78 GAAP; $0.82 operating for Q3 2026. - Pre-Provision Net Revenue: Up 7% sequentially and 25% year-over-year on an operating basis. - Operating Net Income: Up 6% sequentially and 12% year-over-year. - Average Earning Assets: $59.8 billion, modestly lower sequentially on balance sheet optimization and elevated CRE payoffs. - Net Interest Margin: 4.11% in Q3; expanded 12 basis points sequentially excluding unusual items; Q4 guidance ~4.05%. - Non-Interest Income: $80 million GAAP; $87 million operating, at high end of guided range; Q4 expected in mid-$80 million range. - Non-Interest Expense: $365 million operating, flat sequentially; Q4 guidance $330$335 million excluding CDI amortization. - Provision Expense: $33 million, reflecting loan runoff, credit migration, and economic forecast changes. - Allowance for Credit Losses: 1.02% coverage of total loans; 1.25% including credit discount on acquired loans. - CET1 Ratio: 11.5%, down slightly on dividend and buyback activity. - Total Risk-Based Capital Ratio: 13.8%, up on $250 million subordinated notes issuance; expected to decline ~50 basis points through early 2027 upon redemption of ~$240 million trust preferred debentures. - Tangible Book Value: $18.10, down on higher other comprehensive loss from rising rates. - Share Repurchases: 6.5 million shares repurchased for ~$200 million in Q3; new $1.2 billion authorization; Q4 buybacks guided to $150$200 million. - Capital Returns: Over $1 billion returned to shareholders over the past year via dividends and buybacks; 8% reduction in common share count under prior program. - Total Loans: $46.9 billion, down from $47.2 billion at June 30; commercial loans (incl. owner-occupied CRE) at 43% of portfolio vs. 42% prior quarter and 39% a year ago. - Loan Originations: $1.2 billion in Q3, nearly 70% commercial. - Total Deposits: $52.7 billion, up from $52.1 billion at June 30; customer deposits up nearly $1.2 billion. - Wholesale Funding: Reduced by $1.5 billion between June 30 and September 30. - Cost of Interest-Bearing Deposits: 1.95% average, down 1 basis point; spot cost 1.96% at September 30. - Branch Footprint: Four branches closed; one branch and one financial hub opened in Utah during Q3. - ROAA: 1.4% for the quarter. - ROTCE: Over 17% for the quarter. - Warning! GuruFocus has detected 4 Warning Signs with COLB. - Is COLB fairly valued? Test your thesis with our free DCF calculator. Release Date: October 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Net interest margin expanded to 4.11%, with 12 basis points of sequential expansion excluding one-time items, driven by balance sheet optimization. - Strong customer deposit growth of nearly $1.2 billion allowed a $1.5 billion reduction in wholesale funding, lowering funding costs. - Commercial loans, including owner-occupied CRE, now comprise 43% of the portfolio, up from 39% a year ago, reflecting a shift toward relationship-based lending. - Non-interest income reached $87 million on an operating basis, the high end of guidance, with growth in treasury management, international banking, and wealth management. - A new $1.2 billion share repurchase program was authorized, following the completion of a prior program that reduced share count by 8%. - Total loans declined to $46.9 billion from $47.2 billion in the prior quarter, as competitive pricing and structures led to payoffs and muted originations. - The net interest margin is guided to decline to approximately 4.05% in Q4 due to seasonal deposit outflows and the negative carry from excess subordinated debt. - Provision expense was $33 million, driven by changes in the economic forecast and credit migration, with the allowance for credit losses at 1.02% of total loans. - Tangible book value declined to $18.10 per share, primarily due to an increase in other comprehensive loss as interest rates rose during the quarter. - The CET1 ratio declined slightly to 11.5% as robust buyback activity and dividends modestly outpaced capital generation. Q: Jon Arfstrom of RBC Capital Markets asked about the net interest margin trajectory, noting the Q3 NIM of 4.11% and Q4 guidance of ~4.05% were both surprises, and asked how the margin could trend over time given factors like subordinated debt.A: CFO Ivan Seda explained that Q3 benefited from the absence of prior headwinds, loan portfolio optimization into higher-yielding commercial relationships, strong deposit generation that funded a $1.5 billion reduction in wholesale funding, and ~$5 million in one-time accelerated repayment interest income. He guided Q4 NIM to ~4.05%, reflecting excess subordinated debt carried during trust preferred redemptions (a few basis points of headwind) and seasonal deposit outflows in the second half of Q4. He expects the NIM to operate in the low 4% range for the next several quarters. Q: Christopher McGratty of KBW asked how investors should think about the pace of the newly authorized $1.2 billion buyback, given the $150$200 million quarterly guidance, and whether that pace could move higher.A: CEO Clint Stein said the company is comfortable with the $150$200 million per quarter pace. Unlike the prior 12-month authorization, the new program has no time cap, so at the current run rate it could extend beyond 12 months. He said the pace will be consistent with the past year unless there is a major pullback in the stock, in which case the company has flexibility to repurchase more. Q: Christopher McGratty of KBW also asked for a medium-term capital target bogey across CET1, TCE, and risk-based capital.A: Clint Stein said the company has been consistent for 15+ years on target capital levels but has had difficulty getting capital down to those targets. He noted that a 12%12.5% total risk-based capital ratio roughly equates to an 8% TCE ratio on Columbia's balance sheet, excluding AOCI given its strong deposit base, liquidity, and ability to hold securities to maturity. CFO Ivan Seda added that the company models capital generation and stress scenarios each quarter, monitors marked capital including TCE/TA, and is not counting on Basel III capital relief. He also noted the ongoing Tier 2 capital remix with Q3 subordinated debt issuance and associated trust preferred redemptions. Q: Jeffrey Rulis of D.A. Davidson asked whether the Q4 margin headwind from excess subordinated debt flips to a tailwind in 2027 once trust preferred redemptions are completed, netting against seasonal deposit outflows and back-book repricing.A: Ivan Seda confirmed the dynamic: about $240 million of trust preferred securities will be redeemed, with 75%80% completed by year-end 2026 and the remainder in Q1 2027, meaning roughly $200 million of excess, expensive Tier 2 capital weighs on Q4 but becomes a modest benefit in 2027. He added that Q3 is seasonally strong for deposits with some outflows expected in the second half of Q4. For 2027, he expects more of the same balance sheet optimization, NIM in the low 4% range to start the year, and continued expansion. Q: Jeffrey Rulis of D.A. Davidson asked about provisioning and reserve levels, noting net loan runoff and lower NPAs might suggest the reserve could be lightened.A: Ivan Seda characterized the change as immateriala one basis point movement in the allowancedriven mainly by the economic forecast in the models, particularly a higher-for-longer rate environment with potential additional rate increases into 2027, rather than anything idiosyncratic in the portfolio. Chief Credit Officer Frank Namdar added that he had nothing further to add and that trends in the book have been very positive. Q: David Feaster of Raymond James asked about the drivers of strong deposit growth beyond seasonality and small business campaigns, including commercial versus retail mix and opportunities by market or segment.A: Clint Stein attributed growth to the legacy Columbia relationship banking model and consistent banker activity, including SBA lending to small businesses. Chief Marketing Officer David Moore Devine said small business campaigns span quarters and involve no special products or pricing, with the real driver being relationship selling and deepening existing customers. Tori Nixon, President of Commercial Banking, noted commercial teams generated nearly $1 billion in customer deposit growth from new and existing relationships, with nearly half from legacy Pacific Premier Southern California, and highlighted fee income growth: treasury management up 7%, international banking up 19%, commercial card up 3%, and merchant card up 11% year-over-year. Q: David Feaster of Raymond James asked where expense savings are being found to fund investments and what key investments are planned in technology, hiring, and branch expansion.A: Clint Stein said combining three large organizations created process inefficiencies, and technology is used as a tool to remove friction and improve speed and customer/employee experience. Investment requests generally require an offset from an identified inefficiency, and de novo branches are opened where commercial bankers demonstrate market demand. Ivan Seda noted the company outperformed its original $127 million PPBI cost synergy target, landing at $132$133 million, allowing reinvestment while staying within expense guardrails. Tori Nixon added that talent investments are focused on Utah, Arizona, Native American banking, and fast food franchise banking, while David Moore Devine highlighted wealth management and private trust as growing fee income contributors. Q: David Feaster of Raymond James asked what gives management confidence in the durability of earnings as rate and competitive tailwinds from synergies and balance sheet repricing fade.A: Clint Stein said the company focuses on what it can controlexpense discipline, pricing discipline, balance sheet quality, and granular diversification on both sides of the balance sheetwhich has produced resilient performance throughout its 33-year history, including the GFC when it acquired five failed banks from the FDIC. He noted assets rolling off are being replaced by assets priced 200+ basis points higher, and pockets of inefficiency remain from the Umpqua and Pacific Premier integrations and from technology advancement. He said these efforts will help maintain top-quartile and top-decile returns rather than dramatically raise ROAA. Q: Bernard Von Gizycki of Deutsche Bank asked about geographic branch optimizationtwo new Utah locations versus four closuresand whether particular states have more optimization remaining.A: Clint Stein said optimization is market by market: Phoenix has five offices and may need two or three more to cover the metro, while Southern California density was solved For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Columbia Banking System (COLB) just paired a strong third quarter earnings report with an expanded share repurchase plan of up to US$1.2b, a combination that directly affects how you think about this stock. The fresh numbers and the decision to keep buying back stock both speak to management's view of the bank's financial position and capital priorities. For investors, that raises practical questions about earnings power, capital use and what portion of future results flows through to each share owned. Recent trading has started to reflect this story. The share price is up 2.36% on a 1-day basis and 4.40% over the past week. The 1-year total shareholder return of 25.74% and 3-year total shareholder return of 79.67% point to momentum that has built over time, despite a softer 90-day share price return and a 4.04% decline from recent highs. Compare Columbia Banking System's momentum and capital returns with a hand-picked 29 high quality undervalued stocks that may be pricing in similar earnings strength before it shows up in longer-term charts. With Columbia Banking System at US$29.89 after a fresh earnings jump and a US$1.2b buyback plan, does it make more sense to step in now or hold out for a cheaper entry as the valuation picture comes into focus? Columbia Banking System closed at $29.89, while the most followed narrative pegs fair value closer to $33.86. The gap between price and that estimate is front and center for anyone weighing the new buyback against long term return potential. The main thing that has to go right is that Columbia Banking System successfully executes its balance sheet and capital stack optimization, including transactional loan runoff, disciplined deposit pricing, and substantial capital returns, without eroding credit quality or core earnings power. The current valuation implies that the market is discounting Columbia Banking System's progress on lifting net interest margin, growing fee income, and returning over US$1.1b of capital while keeping regulatory capital ratios above its long term targets. This is consistent with the narrative that the stock is currently viewed as undervalued and with a positive outlook. See why 154 investors see Columbia Banking System as 12% undervalued. Result: Fair Value of $33.86 (UNDERVALUED) Still, the Columbia Banking System story relies on Western U.S. markets holding up and on complex AI driven processes running smoothly without unexpected costs or disruption. Find out about the key risks to this Columbia Banking System narrative. The DCF work presents Columbia Banking System as undervalued, while the simple P/E check tells a tighter story. The stock trades on 11.9x earnings, slightly above both peer averages at 10.6x and the fair ratio of 12.2x. That leaves only a narrow valuation cushion if sentiment turns. See what the numbers indicate about this price in more detail, and how much room there might be for the market P/E to move closer to the fair ratio, in our breakdown, See what the numbers say about this price — find out in our valuation breakdown. The bullish tone in this Columbia Banking System story raises an obvious question: how much of that optimism matches your own reading of the numbers? Take a few minutes to review the data, pressure test your assumptions and see what is driving 4 key rewards If Columbia Banking System has you thinking harder about value, do not stop here. Use curated stock lists to pressure test your thesis and widen your opportunity set. - Target resilient balance sheets by reviewing a list of solid balance sheet and fundamentals (26 results) that pairs financial strength with fundamentals ordinary filters often miss. - Hunt for mispriced quality through a focused 20 high quality undiscovered gems that surfaces under-the-radar businesses with stronger numbers than their visibility suggests. - Build a steadier portfolio by scanning a curated 30 resilient stocks with low risk scores that prioritizes companies with more measured risk profiles and robust fundamentals. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include COLB. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

TACOMA, Wash., Oct. 22, 2026 /PRNewswire/ -- $220 million | | $229 million | | $0.78 | | $0.82 Net income | | Operating net income1 | | Earnings per common share - diluted | | Operating earnings per common share - diluted1 CEO Commentary "Our third quarter performance demonstrates the benefits of consistent execution and active balance sheet management," said Clint Stein, Chairman, CEO & President. "By remaining focused on relationship-driven growth, prudent loan and deposit pricing, and operational discipline, we continued to improve our profitability while maintaining strong credit quality and returning excess capital. Over the past year, we returned over $1 billion to our shareholders through dividends and share repurchases, completing our existing buyback authorization in the process. Our Board of Directors has authorized a new $1.2 billion share repurchase program, reflecting confidence in our long-term strategy and our outlook for continued excess capital generation. We remain focused on growing our franchise in ways that strengthen customer relationships, enhance the quality of our balance sheet, and support attractive long-term returns for our shareholders." Clint Stein, Chairman, CEO & President of Columbia Banking System, Inc. 3Q26 HIGHLIGHTS (COMPARED TO 2Q26) | | | | Net Interest Income and NIM | | Net interest income increased by $26 million from the prior quarter, due to higher income on loans and investment securities and lower funding costs. | Net interest margin was 4.11%, up 18 basis points from the prior quarter, due to higher yields on loans and investment securities and a favorable funding mix shift, as growth in customer deposits was used to pay down wholesale funding sources. | | | | Non-Interest Income and Expense | | Non-interest income decreased by $8 million. Excluding the impact of fair value and hedges,1 non-interest income decreased by $4 million, due primarily to $3 million of death benefit proceeds recorded during the second quarter related to a single policy that did not recur in the third quarter. | Non-interest expense decreased by $5 million, due to lower merger expense. | | | | Credit Quality | | Net charge-offs were 0.24% of average loans and leases (annualized), compared to 0.25% for the prior quarter. | Provision expense was $33 million, compared to $27 million for the prior quarter. | Non-performing assets to total assets ratio was 0.39%, compared to 0.42% as of June 30, 2026. | | | | Capital | | Estimated total risk-based capital ratio of 13.8% and estimated common equity tier 1 risk-based capital ratio of 11.5%. | Declared a quarterly cash dividend of $0.37 per common share on August 14, 2026, which was paid September 14, 2026. | Repurchased $199 million of common stock, completing our previously announced repurchase plan. | | | | Notable Items | | Our second customer deposit campaign of 2026, which began in June and ended in mid- August, brought over $700 million in new deposits to the bank. | Our Board of Directors authorized the repurchase of up to $1.2 billion of common stock under a new repurchase plan, which has no expiration date. | 3Q26 KEY FINANCIAL DATA | | | | | PERFORMANCE METRICS | 3Q26 | | 2Q26 | | 3Q25 Return on average assets | 1.34 % | | 1.27 % | | 0.67 % Return on average common equity | 11.78 % | | 10.99 % | | 6.19 % Return on average tangible common equity1 | 16.43 % | | 15.29 % | | 8.58 % Operating return on average assets1 | 1.40 % | | 1.33 % | | 1.42 % Operating return on average common equity1 | 12.27 % | | 11.46 % | | 13.15 % Operating return on average tangible common equity1 | 17.11 % | | 15.95 % | | 18.24 % Net interest margin | 4.11 % | | 3.93 % | | 3.84 % Efficiency ratio | 53.08 % | | 55.15 % | | 67.29 % Operating efficiency ratio, as adjusted 1 | 51.34 % | | 52.92 % | | 52.32 % | | | | | INCOME STATEMENT($ in millions, excl. per share data) | 3Q26 | | 2Q26 | | 3Q25 Net interest income | $615 | | $589 | | $505 Provision for credit losses | $33 | | $27 | | $70 Non-interest income | $80 | | $88 | | $77 Non-interest expense | $370 | | $375 | | $393 Pre-provision net revenue1 | $325 | | $302 | | $189 Operating pre-provision net revenue1 | $337 | | $314 | | $270 Earnings per common share - diluted | $0.78 | | $0.73 | | $0.40 Operating earnings per common share - diluted1 | $0.82 | | $0.76 | | $0.85 Dividends paid per share | $0.37 | | $0.37 | | $0.36 | | | | | BALANCE SHEET($ in millions, excl. per share data) | 3Q26 | | 2Q26 | | 3Q25 Total assets | $65,135 | | $65,380 | | $67,496 Loans and leases | $46,915 | | $47,166 | | $48,462 Deposits | $52,740 | | $52,056 | | $55,771 Book value per common share | $25.62 | | $26.70 | | $26.04 Tangible book value per common share1 | $18.10 | | $19.22 | | $18.57 Organizational Update During the third quarter, Columbia Banking System, Inc. ("Columbia," the "Company," "we," or "our") opened two depository locations in Utah: a branch in Draper and a financial hub in Pleasant Grove. These openings support our continued organic expansion in key markets, while the closure of four branches reflects our ongoing efforts to optimize our physical presence. Capital Update and Share Repurchase Authorization Announcement In September 2026, Columbia Bank, the wholly-owned subsidiary of Columbia, issued $250 million in aggregate principal amount of subordinated notes due in 2036. The notes bear interest at a fixed annual rate of 6.721% for the first five years, after which they will reset to the Five-Year U.S. Treasury Rate plus 195 basis points. 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. During the third quarter, Columbia completed its previously announced share repurchase plan, buying back 23.3 million common shares at an average price of $29.88 between November 2025 and September 30, 2026, representing 7.8% of outstanding common shares as of September 30, 2025. As such, Columbia's Board of Directors has authorized the repurchase of up to $1.2 billion of common stock under a new repurchase plan. COLB common share repurchases may be executed in the open market or through privately negotiated transactions, including under Rule 10b5-1 plans. The timing and exact amount of common share repurchases will be at the discretion of senior management and subject to various factors, including, without limitation, Columbia's capital position, financial performance, market conditions, and regulatory considerations. The repurchase program does not obligate Columbia to purchase any particular number of shares. The authorization has no expiration date, but may be suspended, terminated, or modified by the Board at any time. Net Interest Income and Net Interest Margin Net interest income was $615 million for the third quarter of 2026, up $26 million from the second quarter of 2026, due to higher income on loans and investment securities and lower funding costs. Net interest income also benefited from $5 million of interest income related to the accelerated repayment of two acquired loans. In comparison, second quarter results included $4 million of interest income reversals that did not recur in the current quarter. Columbia's net interest margin was 4.11% for the third quarter of 2026, up 18 basis points from the second quarter of 2026. The increase between periods reflects higher yields on loans and leases, driven by a continued shift in the portfolio mix toward higher-yielding relationship loans and repricing trends within the portfolio. Favorable funding mix trends also contributed to the increase, as customer deposits replaced higher-cost wholesale funding sources. Higher yields on taxable securities further benefited net interest margin, as the adverse impact of changes in prepayment speed expectations experienced during the second quarter did not recur in the third quarter. Third quarter net interest margin benefited by 3 basis points from the accelerated loan repayments discussed above. In comparison, interest income reversals reduced second quarter net interest margin by 3 basis points. The cost of interest-bearing deposits decreased 1 basis point from the prior quarter to 1.95% for the third quarter of 2026, compared to 1.96% for the second quarter of 2026. The decrease during the third quarter reflects our active management of deposit rates and a lower mix of higher-cost brokered and wholesale public deposits. The cost of interest-bearing deposits was 1.96% for both the month of September and as of September 30, 2026. Columbia's cost of interest-bearing liabilities decreased 1 basis point from the prior quarter to 2.20% for the third quarter of 2026, compared to 2.21% for the second quarter of 2026. The cost of interest-bearing liabilities was 2.21% for the month of September and 2.23% as of September 30, 2026. Refer to the Q3 2026 Earnings Presentation for additional net interest margin change details and interest rate sensitivity information. Non-interest Income Non-interest income was $80 million for the third quarter of 2026, down $8 million from the prior quarter. Quarterly changes in fair value adjustments and mortgage servicing rights ("MSR") hedging activity, which reflect interest rate fluctuations during the quarter, collectively resulted in a net fair value loss of $7 million for the third quarter, compared to a net fair value loss of $3 million for the second quarter, as detailed in our non-GAAP disclosures. Excluding these items, non-interest income was $87 million[2] for the third quarter of 2026, down $4 million from the prior quarter, due primarily to $3 million of death benefit proceeds recorded in other income during the second quarter related to a single policy that did not recur in the third quarter. Non-interest Expense Non-interest expense was $370 million for the third quarter of 2026, down $5 million from the prior quarter, due to lower merger expense. Excluding merger and restructuring expense and exit and disposal costs, as detailed in our non-GAAP disclosures, non-interest expense was $365 million2, down $1 million from the prior quarter, due primarily to lower benefits expense, partially offset by an increase in other miscellaneous expenses. Refer to the Q3 2026 Earnings Presentation for additional expense details. Balance Sheet Total consolidated assets were $65.1 billion as of September 30, 2026, compared to $65.4 billion as of June 30, 2026. The decrease reflects balance sheet optimization activity. Cash and cash equivalents were $1.7 billion as of September 30, 2026, compared to $1.8 billion as of June 30, 2026. 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 uninsured deposits. Available-for-sale securities, which are held on balance sheet at fair value, were $10.9 billion as of September 30, 2026, compared to $11.1 billion as of June 30, 2026. The decrease reflects a decline in the fair value of the portfolio and paydowns, which were not fully offset by the purchase of $639 million of investment securities. Refer to the Q3 2026 Earnings Presentation for additional details related to our investment securities portfolio and liquidity position. Gross loans and leases were $46.9 billion as of September 30, 2026, compared to $47.2 billion as of June 30, 2026. The decrease reflects continued expected runoff in below-market-rate transactional loans and lower commercial real estate balances, as elevated payoffs and competitive pricing pressures muted growth. Construction & development balances expanded during the quarter, and commercial loans, inclusive of owner-occupied commercial real estate, increased by 3% on an annualized basis relative to June 30, 2026, partially offsetting contraction in other portfolios. "Our bankers continued to deepen customer relationships and generate new business opportunities during the third quarter," commented Chris Merrywell, President of Columbia Bank. "Commercial loan growth remained healthy, supported by strong customer engagement across our markets. While transactional loan payoffs moderated overall growth, we continued to grow in the ways we intend, increasing the proportion of relationship-based commercial loans within our portfolio." Refer to the Q3 2026 Earnings Presentation for additional details related to our loan portfolio, which include underwriting characteristics, the composition of our commercial portfolios, and disclosure related to transactional loans. Total deposits were $52.7 billion as of September 30, 2026, compared to $52.1 billion as of June 30, 2026. The increase reflects strong customer balance growth, partially offset by intentional reductions in brokered deposits and wholesale public deposits, which declined to $622 million and $773 million, respectively, as of September 30, 2026, compared to $978 million and $928 million, respectively, as of June 30, 2026. "Deposit growth during the third quarter benefited from seasonal customer balance growth and new customer acquisition," stated Mr. Merrywell. "Our teams remain focused on understanding our customers' needs and delivering tailored solutions that create value beyond pricing, reinforcing the customer relationships that differentiate our franchise in an evolving interest rate environment." Customer deposit growth and other sources of cash enabled us to reduce borrowings to $3.3 billion as of September 30, 2026, compared to $4.3 billion as of June 30, 2026. Refer to the Q3 2026 Earnings Presentation for additional details related to deposit characteristics and flows. Credit Quality The allowance for credit losses ("ACL") was $480 million, or 1.02% of loans and leases, as of September 30, 2026, compared to $475 million, or 1.01% of loans and leases, as of June 30, 2026. The provision for credit losses was $33 million for the third quarter of 2026 and reflects loan portfolio runoff, credit migration trends, charge-off activity, and changes in the economic forecasts used in credit models. Net charge-offs were 0.24% of average loans and leases (annualized) for the third quarter of 2026, compared to 0.25% for the second quarter of 2026. Net charge-offs in the FinPac portfolio were $11 million for the third quarter, compared to $15 million for the second quarter. Net charge-offs excluding the FinPac portfolio were $17 million for the third quarter, compared to $15 million for the second quarter. Non-performing assets were $255 million, or 0.39% of total assets, as of September 30, 2026, compared to $273 million, or 0.42% of total assets, as of June 30, 2026. Refer to the Q3 2026 Earnings Presentation for additional details related to the allowance for credit losses and other credit trends. Capital Columbia's book value per common share was $25.62 as of September 30, 2026, compared to $26.70 as of June 30, 2026. During the third quarter, Columbia repurchased 6.5 million common shares under its prior repurchase plan at an average price of $30.65, representing 2.3% of outstanding common shares. Book value also was impacted by the change in accumulated other comprehensive (loss) income ("AOCI") to $(708) million as of September 30, 2026, compared to $(310) million as of the prior quarter-end. The change in AOCI is due primarily to an increase in the tax-effected net unrealized loss on available-for-sale securities to $663 million as of September 30, 2026, compared to $275 million as of June 30, 2026. Tangible book value per common share[3] was $18.10 as of September 30, 2026, compared to $19.22 as of June 30, 2026. Columbia's estimated total risk-based capital ratio was 13.8% and its estimated common equity tier 1 risk-based capital ratio was 11.5% as of September 30, 2026, compared to 13.5% and 11.7%, respectively, as of June 30, 2026. Columbia remains above current "well-capitalized" regulatory minimums. The regulatory capital ratios as of September 30, 2026 are estimates, pending completion and filing of Columbia's regulatory reports. Earnings Presentation and Conference Call Information Columbia's Q3 2026 Earnings Presentation provides additional disclosure. A copy will be available on our investor relations page: www.columbiabankingsystem.com. Columbia will host its third quarter 2026 earnings conference call on October 22, 2026 at 2:00 p.m. PT (5:00 p.m. ET). During the call, Columbia's management will provide an update on recent activities and discuss its third quarter 2026 financial results. Participants may join the audiocast or register for the call using the link below to receive dial-in details and their own unique PINs. It is recommended you join 10 minutes prior to the start time. Join the audiocast: https://edge.media-server.com/mmc/p/ock9xnut/ Register for the call: https://register-conf.media-server.com/register/BI681367d8eaa3452084f342f40e7ffe6c Access the replay through Columbia's investor relations page: https://www.columbiabankingsystem.com/news-market-data/event-calendar/default.aspx About Columbia Banking System, Inc. Columbia Banking System, Inc. (Nasdaq: COLB) is headquartered in Tacoma, Washington and is the parent company of Columbia Bank, an award-winning preeminent regional bank with offices in Arizona, California, Colorado, Idaho, Nevada, Oregon, Texas, Utah, and Washington. Columbia Bank combines the resources, sophistication, and expertise of a national bank with a commitment to deliver superior, personalized service. The bank supports consumers and businesses through a full suite of services, including retail and commercial banking, Small Business Administration lending, institutional and corporate banking, and equipment leasing. Columbia Bank customers also have access to comprehensive investment and wealth management expertise as well as healthcare and private banking through Columbia Wealth Management. Learn more at www.columbiabankingsystem.com. Forward-Looking Statements This press release includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "target," "projects," "outlook," "forecast," "will," "may," "could," "should," "can" and similar references to future periods. In this press release we make forward-looking statements about strategic and growth initiatives and the result of such activity. Risks and uncertainties that could cause results to differ from forward-looking statements we make include, without limitation: current and future economic and market conditions, including the effects of declines in housing and commercial real estate prices, high unemployment rates, renewed or continued high inflation and any recession or slowdown in economic growth particularly in the western United States; economic forecast variables that are either materially worse or better than end of quarter projections and deterioration in the economy that could result in increased loan and lease losses, especially those risks associated with concentrations in real estate related loans; risks related to our acquisition of Pacific Premier (the "Transaction"), including, among others, (i) any revenue synergies from the Transaction may not be fully realized or may take longer than anticipated to be realized, and (ii) deposit attrition as a result of the Transaction; the impact of proposed or imposed tariffs by the U.S. government and retaliatory tariffs proposed or imposed by U.S. trading partners that could have an adverse impact on customers; our ability to effectively manage problem credits; the impact of bank failures or adverse developments at other banks on general investor sentiment regarding the liquidity and stability of banks; changes in interest rates that could significantly reduce net interest income and negatively affect asset yields and valuations and funding sources; changes in the scope and cost of FDIC insurance and other coverage; our ability to successfully implement efficiency and operational excellence initiatives; our ability to successfully develop and market new products and technology; changes in laws or regulations; potential adverse reactions or changes to business or employee relationships; the effect of geopolitical instability, including wars, conflicts and terrorist attacks; and natural disasters and other similar unexpected events outside of our control. We also caution that the amount and timing of any future common stock dividends or repurchases will depend on the earnings, cash requirements and financial condition of Columbia, market conditions, capital requirements, applicable law and regulations (including federal securities laws and federal banking and state regulations), and other factors deemed relevant by Columbia and its Board of Directors. To view the financial tables, please see the full article on PRNewswire.

Image source: The Motley Fool. Thursday, Oct. 22, 2026 - Director of Investor Relations - Jacquelynne Bohlen - Chairman, Chief Executive Officer and President - Clint E. Stein - [No title] - Ivan Seda - [No title] - Torran Nixon - [No title] - Christopher Merrywell Operator: Hello, and welcome to Columbia Banking Third Quarter 26 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press *11 on your telephone. You would then hear a automated message advising your hand is raised. To withdraw your question, please press *11 again. At this time, I would like to introduce Jacquelynne Bohlen, Director of Investor Relations, to begin the conference. You may begin. Jacquelynne Bohlen: Thank you, Towanda. Good afternoon, everyone. Thank you for joining us as we review our third quarter results. Earnings release and corresponding presentation are available on our website at columbiabanking.com. During today's call, we will make forward looking statements, which are subject to risks and uncertainties and are intended to be covered by the Safe Harbor provisions of federal securities law. A list of factors that may cause actual results to differ materially from expectations, please refer to the disclosures contained within our SEC filings. We will also reference non GAAP financial measures and I encourage you to review the non GAAP reconciliations provided in our earnings materials. I will now hand the call over to Columbia's Chairman, Chief Executive Officer and President Clint Stein. Clint E. Stein: Thank you, Jackie, and good afternoon, everyone. Our third quarter results demonstrate steady progress on the same core priorities we have outlined for the past several years. Delivering consistent, repeatable performance continuing to reshape the balance sheet to support long term profitability and returning excess capital to shareholders. This quarter, we continued to grow relationship based commercial loans and utilized funds from strong customer deposit growth to reduce our reliance on wholesale funding. Enabling both sides of the balance sheet to contribute to net interest margin expansion. We also returned over $1 billion to our shareholders over the past year, through dividends and share repurchases. Completion of our existing buyback authorization resulted in an 8% reduction in our common share count, over the duration of the program. Given our confidence in Columbia's long term strategy, and our outlook for continued excess capital generation, our board of directors has authorized a new $1.2 billion share repurchase program. Our results reflect the benefits of consistent execution even as the operating environment continued to shift. Discipline is not always the easiest path, but it is 1 our teams have maintained quarter after quarter across loan and deposit pricing, credit, and expense management, That sustained consistency has driven improved profitability and a balance sheet increasingly built around full customer relationships. In August, we marked the 1 year anniversary of closing our acquisition of PAC Premier. Which was the smoothest integration I have experienced in my 21 years with Columbia. Over that time, we have built a compelling footprint across the West achieving scale and a competitive presence through the combination of organic growth and strategic acquisitions. As I have repeatedly stated over the past 18 months, PAC Premier was a missing piece to the franchise we envisioned. Our focus remains on fine tuning our franchise and continued execution on organic growth opportunities. Our Northwest routes support our 10% market share in Washington, Oregon, and Idaho, while our growing presence in other key Western markets provides us with significant opportunity to gain share and further enhance our market position. With the integration fully behind us, we are applying our operational discipline with even greater focus. Looking across the company for additional opportunities to improve efficiency and profitability. Together with our continued balance sheet optimization, and intentional approach to capital management, this work strengthens our ability to deliver sustainable long term value for our shareholders. I will now turn the call over to Ivan. Ivan Seda: Thank you, Clint, and good afternoon, everyone. As Clint highlighted, our third quarter results reflect the progress we continue to make on our strategic priorities. Turning to Slide 11, we reported EPS of $0.78 and operating EPS of $0.82 for the third quarter. On an operating basis, which excludes items detailed in our non GAAP disclosure, third quarter pre provision net revenue and operating net income increased 76%, respectively, compared to the second quarter of 26 and 25 percent and 12%, respectively, compared to the third quarter of 25. A more favorable mix of loans and funding, together with disciplined expense management, drove both the sequential and annual growth. The addition of PAC Premier also benefited the year on year comparison. Turning to Slide 12. Average earning assets were $59.8 billion during the third quarter. As balance sheet optimization and elevated CRE payoffs contributed to modest contraction compared to the prior quarter. Actively managed our funding base using strong customer deposit growth to reduce wholesale funding including public wholesale balances. Between June 30 and September 30, we reduced wholesale funding by 1.5 billion contributing favorably to net interest margin. Slide 13 outlines the contributors to sequential quarter change in net interest margin with NIM at 4.11% for the third quarter. Adjusting for the 3 basis point benefit from accelerated repayments this quarter, and the 3 basis point impact of 1 time credit related interest reversals last quarter, our NIM expanded by 12 basis points sequentially. Our balance sheet optimization strategy drove meaningful NIM expansion, building on improvement throughout the past year. As previously articulated, NIM moved above 4% and excluding unusual items, we expect it to remain above 4% for Q4. More specifically, we are guiding to a Q4 NIM of around 4.05%, which incorporates the impact of carrying excess subordinated debt throughout Q4 at a modestly negative carry. Our latest interest rate modeling continues to show that our balance sheet ratios remain largely neutral positioned to rates, as slide 14 details. Providing earnings insulation whether interest rates rise or fall. Noninterest income in the third quarter was $80 million on a GAAP basis, and $87 million on an operating basis as detailed on Slide 15, at the high end of our guided range. Our results reflect continued momentum across products, and businesses, and we expect non interest revenue to remain in the mid-$80 million range for Q4. Slide 16 outlines non interest expense which was $365 million on an operating basis. Consistent with last quarter and reflecting disciplined expense management across our core franchise. Excluding CDI amortization, which will decline slightly each quarter, we expect fourth quarter non interest expense to be in the $330 million to $335 million range as we continue to reinvest in our franchise. Moving on to Slide 17, provision expense was $33 million for the third quarter reflecting loan portfolio runoff, credit migration trends, and changes in the economic forecast used in our credit models. Credit metrics remain stable and healthy. Slide 18 details our allowance for credit losses by portfolio, with coverage of total loans at 1.02% at quarter end and 1.25% when credit discount on acquired loans is included. Turning to capital. Slide 19 highlights our regulatory ratios at quarter end. Our CET1 ratio declined slightly to 11.5% as our regular dividend and robust buyback activity modestly outpaced strong capital generation and the benefits of balance sheet optimization. During the third quarter, we repurchased 6.5 million common shares returning approximately $200 million to our shareholders and completing our prior repurchase plan. Our total risk based capital ratio increased to 13.8% reflecting Columbia Bank's issuance of $250 million in aggregate principal amount of subordinated notes during the quarter. We expect to use these proceeds to redeem approximately $240 million in aggregate principal amount of junior subordinated debentures associated with certain trust preferred securities through early 27 causing our risk total risk based capital ratios to decline approximately 50 basis points all else equal. These actions advance our broader strategy to optimize our balance sheet and our capital structure. Tangible book value declined during the quarter to $18.10 due primarily to an increase in other comprehensive loss as interest rates moved notably higher during the third quarter. Looking forward, we expect share repurchases to remain in $150 million to $200 million range for the fourth quarter under the new repurchase plan that Clint outlined. Overall, we are very pleased with the financial results the quarter, generating an ROAA of 1.4% and an ROTCE of over 17%. Our focus remains on protecting the quality of our earnings as we work to improve returns over time. With that, I will now hand the call over to Tore. Torran Nixon: Thanks, Ivan. Our teams produced another quarter of solid relationship driven results. Our loan portfolio continues to shift in the direction we want. With commercial loans inclusive of owner occupied CRE comprising 43% of the total portfolio compared to 42% at June 30, and 39% a year ago. Competitive pricing and structures that we are unwilling to match contributed to a decline in loans to $46.9 billion from $47.2 billion as of June 30. Although the pace of decline slowed relative to last quarter. Loan origination volume was $1.2 billion during the third quarter with nearly 70% attributable to commercial loans. Our focus remains on winning full commercial relationships rather than single product transactions. These broader relationships extend naturally into deposit and fee income opportunities supporting stronger, overall profitability. Turning to deposits. Strong growth in customer balances supported an increase in total deposits to $52.7 billion compared to $52.1 billion at June 30. As we intentionally reduced public wholesale and brokered balances, Customer deposits increased by nearly $1.2 billion during the third quarter, due to seasonal balanced growth and new customer activity. As Clint noted, our discipline extends to deposit price The average cost of interest bearing deposits declined 1 basis point to 1.95% for the third quarter. Our spot cost of deposits was largely stable at 1.96% as of September 30, reflecting a measured response to the Fed's rate increase in September. Our relationship approach to banking is driving a greater contribution from fee income to total revenue. We are seeing momentum across core fee businesses, including treasury management, card based fee income, and services such as international banking. Wealth management also is contributing to more noninterest income. Consistent with our broader focus on improving profitability, we regularly evaluate our physical footprint to ensure it reflects how customers bank with us today and into the future. To that end, we closed 4 branches during the third quarter, as we continually fine tune our physical presence. We also opened a branch and a financial hub in Utah. Adding locations to support our customers and bankers in our de novo markets. At the same time, we are bringing new talent to Columbia Bank, and investing in the development of our existing teams, reinforcing our relationship banking approach cultivating the next generation of leaders. I will now hand the call back to Clint. Clint E. Stein: Thanks, Tore. From the outside, it was a relatively uneventful quarter for Columbia. Reflecting another period of consistent execution Behind the scenes, we are very busy. We have delivered 11 consecutive quarters of predictable financial performance. While continuing to reshape our balance sheet and strengthen the franchise we have built. Across the West. Embrace technology and automation to improve the customer experience, and make our teams more effective. Enabling our bankers to spend more time serving their customers. Technology enhances our relationship model, It does not replace it. We remain confident in our strategy because our customers are attached to relationships not a robot. Our customers choose Columbia because of the bankers who know them and their business. Businesses. And our branches remain an important part of how we build and retain these relationships. I wanna thank our teams for their disciplined execution and drive to get better each and every day. This concludes our prepared remarks. Christopher, Tory, Ivan, and Frank are with me. And we are happy to take your questions now. Towanda, please open the call for Q&A. Operator: Thank you. To withdraw your question, please press 11 again. Our first question comes from the line of Jon Arfstrom with RBC Capital Markets. Jon Arfstrom: Hey, thanks. Good afternoon, everyone. Clint E. Stein: Hi, John. Jon Arfstrom: Nice job here. there is a lot of places to go, but maybe Ivan start with you on the margin. Thanks for the thoughts on the fourth quarter margin, but the $4.05 million was a surprise. To us, I think. I mean, $4.11 was a big surprise, but I see the items, the $4.05 was a surprise. To us. And I guess I am just curious how you feel about the momentum and the margin where you think this could go over time. You mentioned things like sub debt maybe surprising it in the near term, but do you think the trajectory of the margin could look like over time here? Ivan Seda: Yes. Thank you, John. I appreciate the question. A couple things I would say around that. First of all, just kind of unpacking Q4 a little bit more depth, potentially. Recall that know, while our margin for Q2 reported was 3.93, that had some negative impacts that we called out last quarter, including the onetime credit related interest income reversals and some of the accounting yield associated with the investment portfolio. You think about where we landed for Q3, there is there is really 4 factors in terms of how I have thought about the margin this quarter. First, obviously, benefiting from the absence of those headwinds that we called out. 90 days ago, and you can see that pretty clearly on the walk on Slide 13. Second, as you get into the earnings release detail, you will see that our loan portfolio optimization and what Tory articulated earlier out of lower rate transactional and into our core commercial lending, portfolios continues to help support stronger returns. And that is something that we do anticipate to continue as we as we look forward in this, higher for longer rate environment. Third, we were, I think, very pleased with the results from a deposit generation perspective. Without really seeing at least quarter on quarter a meaningful shift in overall cost of the deposits. And like I mentioned earlier, that allowed us to continue to optimize the other side of our balance sheet, which has been a core focus of ours. With about $1 billion of higher cost wholesale funding coming down. And then we noted it earlier, but we did have about $5 million in interest income related to accelerated repayments. And that part of it is more you know, onetime in nature. The other factors are really aligned to the strategy that we are pursuing. And I think if you look back at the net interest margin over the past 4, 5 quarters, you can see the progress and it is not always linear. But we anticipated, as we have talked about, I think, pretty openly, crossing over the 4%. As we look further on, we will continue to expect to be operating in that low 4% range for the next several quarters. Q4 few things I would say around that 4.05%. You know, number 1, we will be holding some amount of excess debt as we work through the Trump's redemptions, and that is really just you know, a function of kind of the timing associated with the sub debt issuance versus going through the various redemption activities over the course of Q4 and Q1. We will work through the majority of that, but that will cause a couple of basis point headwind as we operate through that. And then number 2, we tend to see seasonal outflows in the second half of Q4. Like many of our peers do. And so we factor that into to our modeling as well for Q4. And so, you know, if you would have asked me and if I would have been willing, which I would not by the way, but if I would have been willing to give you a Q4 number 90 days ago, I would have said 04/2005 at that point as well. And so you know, we are we are definitely pacing towards where we expect to be If we do outperform that, I think it will be a function of what we have seen within rates and the rate impact on asset yields potentially impacting our margin more rapidly than the funding side. But we will see how that shakes out as we move through the course of this quarter. Jon Arfstrom: Yep. Okay. Very helpful. A good performance. Maybe just to follow-up on that Tore, on the origination pace. You mentioned some irrational competition in spots. Can you touch on that a little bit? And then just also maybe comment on what you are seeing in the pipelines? Torran Nixon: Sure. Yeah. So production was really strong and steady. Pretty consistent kinda quarter over quarter over quarter. So great to see that. And kind of as I look into Q4, it looks pretty comparable. And like the direction that the teams are going in. The irrational behavior at sometimes in some markets is a little bit silly, especially on the real estate front. You know, we you either see, you know, much too much leverage in a in a deal that we are just not interested in, or without any real recourse, any guarantee, so a nonrecourse structure that the income from the property really does not warrant it. Or you are seeing rates that are crazy low. We have seen a bunch at a SOFR plus 100. I have yet to see 1 dip below 100, but I know it is coming. And, you know, so we just kind of have a quick conversation with the teams and just pass on it because it is not something we want to do. But, you know, and it-- I have been looking a lot at it to see geographically or product type or kind of where it is coming from, but it is-- it is-- there is not a ton of it, but it-- and it is broad based. So it is not in 1 geography or 1 asset class. it is kind of spread out a bit. And it-- it is not all the time, but it is enough to kind of make you shake your shake your head for sure. Jon Arfstrom: Alright. Thank you very much. Operator: Thank you. Christopher McGratty: Our next question comes from the line of Chris McGratty with KBW. Your line is open. Clint, for you, when you announced last year's buyback, which is about a year ago, to the day, think I asked you, like, intent to use, and you said we are going to do it, and you did. When you gave the guide for Q4 of 150 to 200, how do we think about the pace of the $1.2 billion? I guess it is a lot in there between the TruPS and the balance sheet. You are making a ton of money. You are redoing the capital stack a bit. But it feels like that 150 to 200 pace could move higher over the next few quarters, but just opportunity to agree or disagree. Clint E. Stein: Yeah. I think we are comfortable with the pace that we have been at. You know, that 150 to 200 per quarter You know, we did the authorization that we just completed had a duration of 12 months. We did not put a 12-month cap on this 1. So I guess you could do the math and you know, think about better you know, run rate that we have been doing the last several quarters if we just roll that forward. You know, there is a little more time for that to run past say, the next 12 months. Again, though, all things being consistent, the economy still being resilient, and things of that nature, our intent is to fully utilize it. We did not throw a number out there that we do not intend to utilize But the pacing of it will be pretty consistent, I believe, with what you have seen over the past year. Unless we see some sort of major pullback, in the stock. And then, again, we would have the flexibility to do a little more at that point in time. If conditions warranted. Christopher McGratty: Okay. Great. And then maybe for you and Ivan, just the triangulation between the capital targets your risk base, I think, has always been your kind of binding constraint, but CET 1 and TCE Any more comfort giving us kind of a bogey that you are that you are targeting over the medium term? Clint E. Stein: Well, I think we been pretty consistent for 15-plus years in terms of where we want to be on the target level. We have also had a hard time getting our capital down to those target levels. You know, I think. And Ivan can speak to it more, too. I do not know if he will share with you, but all the modeling that he is done and stress scenarios and how not only the newly authorized repurchase plan, but also our regular dividend. You know, and we feel really comfortable with those stressed results. And our ability to continue to return capital to shareholders. The 1 area that we have talked about you know, in the past is the TCE ratio. And just kinda naturally over time in a stable operating environment, You know, 12% total risk based capital, 12.5%. Somewhere in there, equates to roughly 8% TCE. And at least on our balance sheet, that is been the historical alignment. I exclude the AOCI to a certain extent. I am thinking about TCE, just like as we were building from, you know, below 7% to well above 8% over the past couple of years, I excluded it at that time as well because you know, we have a phenomenal deposit base. We have great liquidity, and we have the ability to hold those securities that are driving those AOCI marks to their maturity. Or until the rate environment changes course a little bit. So and I think also back to the modeling that Ivan and his team do, you know, they also model additional rate shocks and what that impact is on our tangible ratio. And, you know, we have a lot of comfort around it. Do not know, Ivan, if you wanna add any detail. Ivan Seda: Not a ton to add there. Like Clint had indicated, every single quarter as we go through this, we model out what we expect from a capital generation, capital needs, payback period associated with the repurchase program. We are also keenly aware and monitor closely capital ratios on the mark to capital basis, including TCE to TA. Like everyone else, you know, we are also keeping an eye to the future with regard to monitoring the, you know, potential regulatory capital effects of Basel III proposed rule maybe? Making, and we have a sense for what that could offer, but we are not explicitly counting on that sort of capital relief at this point in time. So long winded way of saying that, you know, it all goes into the mix We keep track of all of it, and we are comfortable with our current levels. You know, confident in terms of the capital generation that we are going to create here in Q4 and into 2027. And that all goes into the equation as we balance out the capital impacts. I guess the last thing I would say, and you did not explicitly ask about it, but we are also kind of in the mix of kind of our tier 2 capital remix strategy as you know, Christopher, with the bond issuance that we completed in Q3 and then the associated redemptions that we are working through now. So that is an active part of our capital management that we are in the midst of as well. Christopher McGratty: Great. Thank you. Operator: Thank you. Our next question comes from the line of Jeff Rulis with D.A. Davidson. Your line is open. Jeff Rulis: Thanks. Good afternoon. If I could swing back into the margin for a minute. Ivan, I wanted to make sure I get the headwind in Q4 but it sounds as if you are alluding to that flips as you get those Trump's, redemptions, you know, that will ultimately turn into a tailwind. I just wanna understand that piece. First, I suppose. Ivan Seda: Yep. And so I will not go over all the details of the specifics of this. The sub debt issuance. We completed that 10-non-call-5 transaction in mid September. And so when we think about Q3 and the funding profile of the bank, that really was only in effect for know, 2 weeks out of the full the full quarter. The Trump's activities, we are working through the redemptions that we have identified as potential. In totality, there is about $240 million worth of Tier 2 capital in the form of trust preferred securities that will be redeemed. About 80% of that pool, 75-80% of that pool will be redeemed between now and the end of this year. And then we will have kind of a hanging Chad that we will clean up in Q1 of next year. And so really what that does is it means that we have got somewhere in the ballpark $200 million of excess tier 2 capital. That is our most expensive form of capital, whether it is the legacy trucks or the sub debt. And so we will have a slightly higher reliance upon that in Q4 relative to Q3 and relative, as you said, in terms of potential future 90 days from now as we talk about outlook for Q1, likely talking about that as a modest benefit going into next year. The other dynamic is more just the seasonal flows associated with our deposit portfolio. Q3 is seasonally strong for us, and that was not the entirety of the strength that Tory about earlier. I am sure we will talk more about it here in a bit. But that was a factor in Q3. And we tend to see a little bit of a, an outflow in the second half of Q4. From a from a core deposit perspective, typically. And so that is worth a few basis points as well. So those are the 2 things that we are looking at in terms of that, guiding to that 4 zero 5 relative to, you know, that pro form a adjusted 4.08 for this quarter, excluding the onetime, accelerated prepayment. Jeff Rulis: Right. Sorry. I was I was kind of alluding to 2027. If you just think about the major pieces of. If you enter the year with maybe the seasonal deposit outflows are a headwind in the first half, But trough's redemptions, the flip of what is happening in Q4 is maybe a net positive then you layer on the favorable back book repricing potentially in 2027. I just want to, like, net that out. It still looks like a 4.05 starting. Or if you are going into the year, it is still a net maybe positive upward trajectory. Is that fair to say on the margin? Ivan Seda: For 2020 I think that is fair, although Jeff, it almost sounds like you are trying to tease out a 2027 guide, but I know you are not. You know, what I would say, we are still going through our planning on 2027, but there are a few things I think that we could expect at least as we turn the corner into the first half of the year. I think on the balance sheet, you can largely expect more of the same over Q4 and Q1. As we continue to optimize the mix of loans out of transaction and into core relationship based commercial lending. Which as you have seen throughout the course of this year, mute the actual balance sheet growth, but does provide what you are alluding to, which is positive revenue momentum in the form of margin expansion. We will continue to maintain what I would call an intense focus on driving core sticky client deposits and leveraging that funding to continue to optimize our wholesale sources. And I think you know, when we have connected with you in the past, you. You will note that is not linear. Right? That there are seasonal flows associated with that optimization, but that will continue as well. So I think the resulting NIM kind of in that low 4 range to start the year but continuing to expand is a reasonable expectation when you put those puzzle pieces together. Jeff Rulis: Yep. Just trying to get to the drivers. Appreciate it. The maybe hopping over just 1 other question on the on the provisioning and the and the reserve level. You had net loan runoff this quarter and NPAs down. And I guess theoretically, you are. You have got a more relationship heavy model so sort of derisking in some ways. I just wanna get some understanding of the reserve build in with some of these other factors would suggest maybe lightening up appreciate it. Ivan Seda: Yeah. You are spot on. And I guess 1 of the things I would say is I would categorize-- I am not sure I would note this being a material shift, right, going from basically a 1 basis point movement in our overall allowance for loan losses. The economic backdrop that we put into the model this quarter versus 90 days ago, was pretty darn similar. I think the 1 difference being the rate environment. And not just kinda where we are at today, but what the model expects going into next year I think most folks are modeling. A further increase later on this year and then anywhere from 1 to 3 increases over the course of kind of the first half of 27. Whether or not that translates into, more pressure for certain borrowers in real estate and other verticals or not. Is probably beyond my crystal ball to read. But I think that is probably what the model's catching up on is just that factor. So it is really more the economic backdrop that I think the model was picking up versus anything idiosyncratic in our portfolio. Look to Frank if he wants to add anything to my comments here, but generally, in terms of what we are seeing in our book, it is been very positive. Analyst: No. I think you I think you said it really well. I do not have anything else to add. Jeff Rulis: Appreciate it. Thank you. Operator: Thank you. Our next question comes from the line of David Feaster with Raymond James. David Feaster: Hi. Good afternoon, everybody. Clint E. Stein: David. David Feaster: I wanted to dig a bit into the deposit growth. Really, really strong. Obviously, there is some seasonal dynamics, you know, nice tailwind from the small business campaigns. Could you just touch on some of the drivers that you are seeing on this outside of maybe those 2 dynamics? How much is commercial versus retail, new account growth versus deeper relationship and if there is any markets or segments where you are seeing more opportunity for growth. Just kinda curious what you are seeing there. Clint E. Stein: Yeah, David. I will I will I will kick it off, and then I am sure Christopher and Tore will fill in the details on that. But you know, I think it comes back to what we have been saying. Really for the last, 3.5 coming up on 4 years is you know, post the Umpqua acquisition, we have been running the legacy Columbia model. You know, and a little bit of that is been tempered by optically by the balance sheet repositioning and things,. But, you know, each quarter, we have talked about the activities of our bankers, and that is what we really focus on. And I know a lot of a lot of folks run their models off of just earning asset growth, but know, I really look at it from the standpoint of are our bankers doing the right activities And, you know, you can see that you know, as time progresses, both the consistency and stability of our earnings, the growth in fee income, which is a function of what we are doing in the commercial you know, C and I side, you know, the small business activity that we are driving out of there. You know, we had another great year in terms of the SBA rankings. it is been a big focus of ours and making sure that we are serving the smallest of businesses as well as, all the way up through the upper middle market. So I think that what you saw in addition to third quarter is always our seasonally strongest from a from a deposit standpoint. But I will I will I will point you back to it is our business model and it is the ongoing activity of our of our bankers that are committed to that model. And I will step back and see if Christopher-- Chris is anxiously waiting to add his commentary here, David. Christopher Merrywell: Anxious. Very anxious. Thanks for the question, David. Yeah. You know, small business campaigns, they extend across quarters. So I wanna be, you know, pretty upfront that, that is not driving all of all of this growth. And know, there is no special products. there is no special pricings. It just allows our branches to have a common purpose and actually have some fun. I think, though, most of all, you know, we are proud of the focus of our bankers that they have on relationships selling. To not only new customers, but to deepening existing customer relationships. there is lots of opportunities, there too with deposits that are held elsewhere. I would also, you know, kinda pile on that of campaigns or just a piece of what we do. The third quarter deposit growth is truly a team effort across our franchise, and it touched every single business line. And was previously stated earlier in the call, you know, the deposit growth is driven in a disciplined model towards pricing. I mean, holding our cost of funds steady while we continue to remix from higher price CDs into core deposits is, it is actually fantastic. And simply put, and I will turn it over to Tory, I would say this is how we do business. Torran Nixon: Well, between, Christopher and Clint, they probably stole all the thunder, but, I have got a couple things I wanna add because the. Just very proud of the commercial folks this quarter. They had nearly a billion dollars in customer deposit growth. And it is a combination of new customers, new relationships, and new money to the bank with just growth in existing accounts. But then also, you know, confidently going back to our customer base and having. And really having that confidence to have conversations to bring you know, any balances they have other places, into the company. And I give a special shout out to those folks and our treasury management folks for the work that they did. Clint talked a lot about activities and behaviors. And we have over the last year or so really instituted some accountability around working capital assessments and relationship reviews. And it is producing some really nice results for us, not only in the deposit side, but on the fee income side. And, just to give you a couple stats that are, I think, very relevant to it on the fee income side, Our treasury management business is up 7% year over year. Our international banking business is up 19% year over year. Our commercial card business is up 23% year over year. And our merchant card business is up 11% year over year. So all of that is a result of some real core, behaviors and activities. I think the teams are doing great. Lastly, Clint talked about the integration with PAC Premier. When you look at the deposit growth for commercial, nearly half of that came out of, legacy PPE, Southern California. Folks and really shows that they have fully integrated into the company and they are making some real, progress in their existing customers, but getting out in the markets and taking advantage of who we are there to grow our customer base in Southern California. David Feaster: Okay. that is super helpful. And maybe just touching on the expense side. Look. You have always been cost conscious, and we have talked about this previously. it is a part of your DNA. How do you think about the expense front? Like, where are you finding these savings and efficiency to fund the investments that you are making? And just what are some of the key investments that you are you are focused on as it relates to tech or hiring and even some of the branch expansion that you highlighted in the release? Clint E. Stein: Well, David, as always, tend to pack a lot into a single question. As a group, we will try to do our best to touch on all those points. And I will I will just start off by you know, saying that, you know, we have we have put 3 large organizations together And anytime you do that, there is processes and things that maybe worked for 1 organization, but are not as efficient as what they can be for an organization with our size and scale now. And then you add into that the speed to which we can automate things. And, again, I will go back to my prepared comments about we have a lot of technology think our platforms are contemporary. We do not shy away from that. But it is a tool. it is a tool that helps, remove friction. it increases our speed to market, take care of our customers, and create a better employee experience. So we are always looking at how do we get better every day. The team, and you have probably heard this over the years, whenever they come forward with, an investment opportunity, it is it is usually do you have an offset? there is gotta be an inefficiency somewhere in your vertical Go find it and use that to offset it. And in the rare occasion that we cannot find an offset, then we let the revenue projections speak to themselves, and we will make the investment that way. And that is kinda similar on our on our branch. Our, you know, our de novo branching activity is you know, we determine if there is an underserved market if there is a gap in continuity of our existing footprint, things of that nature. And most importantly, do our do our commercial bankers in those markets, are they pushing for and requesting and stating the need for a branch location? Because once they do that, then we know their. The whole market is committed to making that a success. that is been the model we had I do not know, 6, 7 years ago when we put our first branch in Downtown Boise, and that is the same model we have utilized as we have expanded to Utah, Arizona, and Colorado, as well as within existing markets You know, we just opened a branch last quarter in Las Vegas, and that is 1 that, again, the teams were saying we need some infrastructure. We can leverage that. We can bring in more commercial customers. So I am sure I have only touched on a fraction of the points that you had, so I will step back and see if Ivan, Chris, or Tore wanna add anything. Ivan Seda: I mean, not much to add from my perspective other than David. I know we have talked about this when we have been together here over the course of the year that we flagged from the very beginning that we thought we had a unique story to tell for 2026 with embedded positive operating leverage, right, with revenues coming up we continue to optimize our business, continue to drive the core fee income that Tory talked about with a lot of singles and doubles. Then on the expense side, a scenario where we had an opportunity to as revenue goes up from H1 to H2, an opportunity to take expenses down. I think we have been extremely disciplined in of PPBI. I think we celebrated outperforming our original goals and targets with regard to identification of cost savings predominantly in vendor based spending contract spend, which is great. And that is allowed us the frankly, the luxury from my perspective of continuing to reinvest while still, you know, staying within the guardrails that we have established for ourselves in funding. And again, this quarter, know, being able to redeploy some of that capital into future growth in the form of, expanded physical presence in markets that we are really excited about. I think as you look out into next year, that discipline will continue as will the reinvestment. And so I think it is a pretty good it is a pretty good mix with regard to that. Torran Nixon: The only thing I would add, this is Tory, would be some of the people side of it where to Clint's point, we find an offset, and we have invested some on the commercial banking side in Utah. And Arizona. Our Native American banking business, and then our fast food franchise business. You know, those are, like, 4 or so areas where we really look to increase the number of folks. But the talent. And we are we are we are bringing in some incredibly talented bankers in. Into many, many parts of the company, but it is specifically those areas. Christopher Merrywell: Yeah, David. And what I would add on that is we are doing the same thing in the wealth management space. Pretty excited about some of the talent we are currently talking to. And when you look at the addition of the private trust business joined us a year ago from PAC Premier, Wealth management continues to become a bigger presence bigger part of that noninterest income. The last quarter was actually our second largest source of it. So, you know, we are expecting great things out of that and continued growth as well. David Feaster: And maybe just kind of a following up on some of those to some degree. I mean, Clint, the way you started out the call was talking about the consistency of your performance, and what you guys have done. And we spent a lot of time talking to investors, talking about the durability of earnings. What gives you confidence? I mean, lot of that we have talked about has been a lot. A decent amount of self help in balance sheet optimization. there is still some tailwinds there. But you know, we had tailwinds from synergies from the deal. And, again, a lot of the repricing and shrinking of net negative yielding assets, what gives you confidence that is sustainable going forward? Just as rates are rising and competition's intensifying, and there is, you know, potential for weaker macro trends. And just kinda curious what gives you confidence that is sustainable going forward? Clint E. Stein: David, what we cannot-- what we cannot control is the macro environment. And so, you know, there is a little bit in, you know, as our industry, as the macro environment changes, our industry either gets headwinds or tailwinds and we face those same headwinds and tailwinds. But we do focus on what we can control. And we can control our expense discipline, our pricing discipline, the quality of our fortress balance sheet, the granularity and diversity diversification that is that is on both sides of the balance sheet, whether it is the loan portfolio, the quality of our investment portfolio, or our core deposit base. And that has given us a very resilient stable performing company that throughout really throughout the 33 year history of our company, and various business cycles. You know, I will use the GFC as an example. You know, we took our lumps just like everybody else, but we came through it, bought 5 failed banks from the FDIC and built the company that we have today. So it was not fun. But it was an opportunity for us to you know, really to thrive coming out of it. And a lot of our customers we view the same way. They are good operators. And whatever whenever their industry goes through any type of pullback or downturn, they usually come out stronger because it is the weaker operators that go away, or, retrench. And you know, we are we are no different in terms of how we think about our business. And so I always look at it on a relative basis, how are we doing? And we have stated that you know, our objective is to always be top quartile. And if we are not, then we are working hard to figure out how to get there. And so it is just I have seen it play out. Over the last 21 years. And when I say we are running the historical Columbia business model, you can see that in terms of what is coming on the balance sheet and what we are flushing off the balance sheet. And then we have these headwinds or these tailwinds of that you mentioned. You know, mixing out of lower yielding assets mixing into more of our traditional assets that are coming on at 200-plus basis points higher than the stuff that is rolling off. And then I know we still have pockets of inefficiency within our company that either exist as a byproduct of bringing and PAC Premier under our umbrella. Or just with the advancement in technology and our ability to do things quicker and better. You know, it is it is not any 1 single thing. it is really just being focused on every little detail. Think I probably drive the team nuts sometimes with some of the details that I come back and ask them with. You know, you are you are pretty busy right now. I mean, you have got a baseball team to root for in the World Series. You know, we did not get any. You know, Mariners did not make the playoffs. So October, I spent a lot of time, you know, digging into the weeds instead of watching baseball. And you know, so that is why I am I am pretty confident that we still have some things we can do. Are any of them going to move us from, you know, say a 1.40 ROAA to 1.60? No. But what they will do is enable us to maintain our level of performance maintain that top quartile and top decile returns. And continue to make these investments in our company, whether it be platforms or some of the investments in people that Terry. That Tory spoke of. So we are just. Lot of optimism. David Feaster: that is terrific. Thanks, everybody. Operator: Thank you. Please stand by for our next question. Our next question comes from the line of Analyst with Deutsche Bank. Your line is open. Bernard Vaughan Gazzicchi: Just on the geographic optimization, you opened up the 2 locations in Utah while closing the 4 branches elsewhere. Are there any particular states where you have more optimization remaining, I. E, branch closures than others? Or just like to hear some color on that. And, Tore, I believe you said it is more just fine tuning, so maybe there is not a lot to go. Clint E. Stein: Well. And I think Christopher and Tory can add their thoughts. But you know, we look at where we have a lot of density, and the way that the company was built over time and some of the markets that we are in and you know, they are they are stable markets. They are not high growth markets. But we have great market share and plan to stay in each community that we are in. But you look at kinda. Let's use the Phoenix market as an example. And I think we have 5 offices there now. We probably over time, maybe need 2 or 3 more, and we will have the entire metro area covered in terms of how we think about you know, folks. You know, my view is folks will drive 30 minutes if they have a problem that they need to solve or they wanna strategize and meet with somebody, in person, you know, in our metro areas, 30 minutes is kind of what everybody's commute is anyway. So in a market like Phoenix where traffic moves and, every we can do it with a very branch wide approach. The problem that we were trying to solve and we spent a couple years trying to solve it, but PAC Premier solved it for us how do we build that kind of density in Southern California because 1, it is an immense market. 2, 30 minutes with LA traffic, you might go 2.5 or 3 miles. And so you know, that is. It. it is it is really market by market. And then I look at things like Washington. So, you know, in Washington, we have our highest, branch count You know, it is a few more than what we have in Oregon, and a more than what we have in California. But, you know, there is there is there is an underserved market that we are looking at right now. And, and we believe that you know, that branch would be profitable very, very quickly. And so, so it is just sometimes being opportunistic Sometimes it is it is satisfying the request from customers who are saying, there is an unmet need here. And then assessing it and determining the type of value and business volume we can drive from it. You know? And so where we look at it you know, we have kinda you know, we probably need some more infrastructure in Colorado to properly serve the Denver market. What we did in Utah was we had some money pigeonholed for Southern California that we were able to divert and reinvest in the Salt Lake area. And I feel like that strategically where those offices are placed are pretty. We pretty much have coverage that we need in that market, we will shift our attention to some of the other locations. Christopher, you wanna add anything? Christopher Merrywell: Yeah. The only thing I would really say is that fine tuning is always going on. What Clint describes is a that it is almost a daily process. We are always looking at branch profitability, coverage, where customers are going, You know, I would kinda just say it as demand drives some of those new opportunities. And customers certainly do. And beyond that, what you will not see is a mass announcement of closures or something of that nature. And we are gonna be pretty strategic on any new locations. But yeah. Expect to see probably some down the road. Bernard Vaughan Gazzicchi: Great. And just as a follow-up, just to clarify, on the $1.2 billion buyback authorization, was it contemplated the potential capital relief from Basel III in that? Or is that still just additive? Just kind of curious on that 1. Ivan Seda: No. No. It. That would be additive. Like Clint indicated earlier, unlike what we talked about 12 months ago almost to the day, this 1 does not have a time bound nature to it. So we do have flexibility to look beyond you know, a 1 year marker with what our board has authorized regarding that. And. But, no, we are not counting on Basel III regulatory capital relief to be able to fully leverage that program. But, again, it will take longer than the 1 year marker that we executed this latest authorization under. Bernard Vaughan Gazzicchi: Great. Thanks for taking my questions. Operator: Thank you. Our next question comes from the line of Matthew Clark with Piper Sandler. Matthew Clark: Hey. Good afternoon, guys. Wanted to hone in on that securities yield up nicely this quarter. I know last quarter, rate. Rates up. You got tagged with, you know, creating less of the discount. But just wanted to answer the question that I am sure I am going to get as to, you know, why that was not a headwind this quarter with rates up. Ivan Seda: Thanks, Matthew. I will take that 1. So, yeah, I think you. You have got the backstory right, and you. You will recall that last quarter, I noted as part of our discussion around the investment portfolio, itself that while we had some temporary headwinds with regard to the accounting yield, I expressed confidence that over a long period of time, we would continue to see the bond portfolio yield increase, which is essentially what we are seeing we continue to have the dynamic of you know, purchases and front book acquisitions in the bond portfolio coming in at significantly better yields and rates than the back book as that kind of matures off. Or amortizes away. And we have got something like 250 to 350 million per quarter of activity occurring. So that. So you think about kind of modeling us out over a longer period of time, and or if you look kind of on a year on year basis, you will continue to see that fixed asset repricing story continue. More specifically to your question, last quarter, what we saw was a decline in the discount accretion associated with rising interest rates essentially translating into slower prepayment speeds. And directionally, I think that makes sense. But what I would, I guess, the nuance that I would introduce to the conversation there is that for those underlying assets, predominantly mortgage backed securities and commercial, mortgages. Rates and prepayment speeds are not linear. And as we dig deeper into the modeling, there is there is typically an s curve that goes into it. And so unlike last quarter, we did not see a meaningful headwind to discount accretion. Via CPR speeds in Q3. So rates moved up, but prepayment speeds had essentially already reset or adjusted to very low levels last quarter in response to the initial rate increase in the marketplace. And so with, you know, refinance activity already minimal, this quarter's additional rate movement did not really translate significantly into CPR speeds. Overall, our discount accretion on the securities portfolio in Q3 was not all that materially different than it was in Q2. I. E, very low, but it is still significantly below what we recognized in Q1. We were in a lower rate environment. And so if you were to kinda balance out 2 factors, last quarter, the factor of discount accretion recognition reduction was greater than the you know, the core back-book repricing factor. And it was the inverse this quarter, right, that we kind of took our lumps and sustained at a lower level on discount accretion recognition in Q3. And then really the core thesis being kind of that back book repricing kinda carrying the day from a securities yield perspective. Probably more than you asked for, Matthew, but you did ask. So I figured I would I would get into the details there a bit. Matthew Clark: that is great. Great color. Thank you. And then just on earning assets, levels and loan balances, net loans down less than last quarter. Think the expectation is flat to down until maybe mid next year on loans. But just help us think through net loan balances. I would assume they are still, you know, maybe down a little bit, but in overall earning asset levels over the next, few quarters? Ivan Seda: Yeah. I think you have you have got it right. I think for the next quarter, 2 quarters, probably 3 quarters, you can continue to expect to see more of the same from us in terms of you know, core focus on driving relationship based lending, You know, the variable there that probably is the most you know, the transactional portfolio has been fairly consistent, and we have. We keep a very close eye on that. I look at it almost daily in terms of the trends that we see within that portfolio. 1 factor that you know, could play out in Q4 and into Q1 is a slight reduction in CPR speeds in that book. As, you know, rates have reset to a higher for longer environment. But it is been pretty consistent in order to plan around that transactional portfolio at roughly a $250 million per quarter. The CRE marketplace, as Tore described it earlier, is dynamic. And we have each and every time aired on you know, maintaining our discipline both regarding structure and price as Tory talked about. And we think that is serving us very well as we continue to kinda work through this in a disciplined manner and optimize our portfolio. I think you know, flat to slightly down over the course of Q4 and into Q1 would be a fair expectation there. Torran Nixon: And then maybe I will just ask Tory if there is anything else that he would he would speak to in terms of what we are seeing in the marketplace. No. Other. I would. You know, activity wise, you know, pipeline, the things that I am seeing in the. On the courses side of the house is pretty confident that our CNI growth can know, remain in this low to mid single digit level kind of consistent what we have done the last 3 quarters. Obviously, barring any, you know, big macroeconomic, you know, headwind. But lots of lots of good activity. Lots of good stuff going on in the various parts of the franchise. So Phil relatively optimistic to kinda continue what we have been doing. Matthew Clark: Great. Thank you. Operator: Thank you. Thank you. Please stand by for our next question. Our next question comes from the line of David Ciavarini with Jeff. Your line is open. David Chiaverini: Hi, thanks for taking the questions. I wanted to ask about deposit costs. Guys mentioned about down 1 basis point. Can you talk about deposit beta assumption and the outlook from here on deposit costs? Ivan Seda: Yeah. Great question. You will note, I think, in our materials that we now have kind of. The yo is gonna keep bouncing around here. So we showed an up upped run-in the beta there. Then a down run. We have been pretty consistent, and I have guided to a 50% beta on a through the cycle basis. And when I think of that beta, I tend to view it my personal bias is to view beta over the course of months and quarters, not days and weeks because some of these things take time to fully settle in. What we saw in the marketplace is in Q2 really, the market started to react in what we have seen from competitive pricing perspective. We did adjust some of our pricing around you know, our money market and CD rates over the course of summer. But we have maintained discipline on the. As rates have increased. So, yeah, I would say kind of 50% beta is a fair assumption going forward. Christopher Merrywell: Thinking about Q4 and beyond. I will turn it over to Christopher. Yeah. David, what I would add to what Ivan laid out there is that you know, he previously in this call stated that fourth quarter rates could projected to potentially rise. You know, we always look at it from the standpoint of whether rates go up or they go down. We are gonna we are gonna perform better than the peers. And I think we have been able to show that through this latest cycle that we are we are able to hold costs low through our relationship strategy and disciplined approach between higher priced CDs and things of that nature. Nature. But, you know, the goal is to outperform what the market is. What Ivan puts out there is a good is a good proxy for it. But we battle it each and every day. We talk about deals each and every day, and you know, it just all adds up. So it. it is just part of our discipline. David Chiaverini: that is helpful. And then on the noninterest bearing deposit mix, holding in nicely at 33%. How do the pipelines look on that side? Is the ability to hold this steady kinda in the cards given. Or I should say despite the backdrop of higher rates? Torran Nixon: Yeah. This is Tory. I would answer that pretty briefly and say, yes. The goal in the assumption is to continue to maintain that mix. It. it is a result of core operating accounts, new businesses brought into the company, you know, managing and working through all the things we have been talking about, full relationship banking is just gonna come with non interest bearing demand. Deposits, and that is the emphasis and focus. Christopher Merrywell: Yeah. In the in the current rate environment, that is a pretty steady. We have seen it be steady. that is kind of the mix that the customers are. How they are choosing to keep their money between operating accounts and money market accounts or whatever it may be. Know, it would take a pretty significant rate decrease before people start looking at it and going, there is no reason to move it into a money market. So I think that. that is the goal, and I think we are seeing that just over and over with especially, with new customers as well. 1 thing that we do. I will just add 1 thing real quick is relation. This relationship profitability model that we that we leverage in the company of how we price loans, how we price deposits, is dependent on all the various pieces that we earn from the customer. So some of that is just good old fashioned, you know, blocking and tackling and telling, you know, customers, hey. This what you need to have with us so that we can maintain this level of pricing so that we can all continue to win and be profitable. David Chiaverini: Good color. Thank you. Operator: Thank you. Our next question comes from the line of Janet Lee with TD Cowen. Your line is open. Janet Lee: Good afternoon. Afternoon. Ivan Seda: You have you have clearly made a lot of good progress running off and repricing the transactional portfolio. Just wanna make sure that I am understanding this correctly on slide 25. The nontransactional loans, there have been flat over the past year. Is that basically due production being offset by payoffs? And then what changes that gets overall loan growth back to positive around 2027? Janet Lee: Yeah. Ivan Seda: The page 25 is just a quarter on quarter view, so it is not a not a full year on year. But you are right. That excluding the rundown in the transactional portfolio, it is been roughly flat over the course of the quarter. We talked about production levels. We have, I think, bounced around between it, a billion 2, a billion 3. I think we have hit a high point potentially from a production perspective on lending up to a billion 4. So we have been in that range pretty consistently. So it has not been you know, you do not see a lot of volatility in terms of the production that we produced. We continue to, as Tory alluded to earlier, drive core commercial lending kind of in a 56%, annualized level, pretty consistently each and every quarter. It really has been that transactional you know, headwind from a growth perspective that has held our know, balance sheet level kind of in check to where it is it is been here in the last several quarters. What could change that? You know, variety of factors macroeconomically. I mentioned earlier that there is the potential that some of these transactional credits stick around for longer. Under a hire for longer scenario. That does occur. You know, we still have the benefit of repricing behavior within the portfolio. The, you know, buckets that we laid out here on slide 25 are generally not maturity dates, but they are, when these assets come up for repricing. And so even if they stick around for a little bit longer, they become less and less of a headwind. And I think you see that in the form of this transactional portfolio kind of inching up over time in terms of the yield associated with it. Okay. Janet Lee: It seems like it is $40.3 billion the same from a year ago slide, but maybe misunderstanding something. I can check back. You have been obviously holding the line very well on expenses, which is really impressive. But as the growth rate accelerates, in 2027 versus 2026. Should we like. Should the gross trajectory on expenses change in any meaningful way? Versus what we have seen over the past couple of years? Thank you. Ivan Seda: Great question. Obviously, this year, we had over the course of Q4, in 2025 and then Q1 and q 2 of this year, we were operating through identification and execution on $127 million with the PPBI cost synergies. The 01/27 being our original target, we outperformed that. I think we landed at $132 or $133 in terms of total identified savings. And so that, you know, that provided a opportunity to continue to, you know, bring our expense base down from H1 to H2. I signaled that a range for Q4 that is that is pretty static to where we landed this quarter in terms of operating expenses. Then as we think about 2027, we guide to know, something that is in the in the realm of kind of inflationary based expenses, something in the 2% type range is probably a pretty reasonable modeling assumption. Again, we are building our plan now. We will continue to invest in infrastructure and people and technology to grow the bank for years to come, but we are. We will continue to maintain our discipline and find offsets where possible. Operator: Thank you. Please stand by for our next question. Next question comes from the line of Tahmir Baziller with UBS. Your line is open. Tahmir Baziller: Hi. Good afternoon. In reference to slide 21, it looks like, yeah, slide 21. It looks like payoff activity slowed this quarter. Just wondering, was that also rate driven and maybe prepay slowing? Is that level sustainable? And then maybe just provide some color on that $417 million in the other column. Ivan Seda: From a payoff perspective, you know, yes. We did start to see a little bit of reduction in prepayment speeds over the course of Q3, in particular, in August and September. As rates rose. You know, it is it is anyone's guess as to know, how that is gonna manifest in Q4, but I would suspect that prepayment behavior will slow down and you know, relative to earlier in the year in the first half. I did not quite catch the first half of the. Or the second question there that you asked. Tahmir Baziller: It looks like in the other column, it is negative $417 million. That number is larger than it is been in recent quarters. I am just wondering what that driver was. I guess, like, that is available. Ivan Seda: So we. Maybe we can follow-up with you on that 1. Tahmir Baziller: Okay. Great. And then maybe, just circling back to the deposit commentary, it looks like there is a decent slug of CDs that mature here in the coming quarter. I guess, what is the intent to retain the maturities there? Then appreciate your comments about starting to some of your rates for increased competition. I am just wondering what your current CD replacement rates are. Ivan Seda: Yep. In general, I think the movement that you have seen over the course of the last year around, term deposits, a lot of that movement was in the function of, brokered CDs. You can see in kind of our liquidity slide that is a very small piece of our funding stack at this point. So we really have kind of finalized the optimization of our broker TD portfolio. The vast majority of what remains is retail consumer CD portfolio. We are working to kind of stabilize and maintain that portfolio under its current size. I think we are seeing kind of, CD rollover rates probably north of 80% in general, Christopher. But Yes. Which is kinda where we would like to where we would like to be there. We have adjusted some of our flagship offers really in kind of the 6- to 9-month term. Structures at this point. Although, you know, we continue to look at rate environment outlook, what is likely and then balance that out with our asset liability management position. And so we will continue to be active usually, 1 or 2 terms per quarter where we will look to you know, adjust our pricing. See if Christopher wants to add anything. Christopher Merrywell: Yeah. What I would what I would probably add to that is, you know, we really look at those CDs on a on a daily basis of what is renewing, what is coming in. You know, obviously, we could. If we saw a need to boost the retention rate, we could change the we could change the underlying rate you know, for tomorrow. And vice versa. If we were renewing too much, we could we could take it back the other day. So it really works hand in hand with what our other balances are doing as well. We do not utilize it as a 1 off. Let's let's drive balances through higher priced CDs. We use it as a tool amongst the whole portfolio. We are pretty comfortable with where it is at. Comfortable with where we fall into the market. And you saw early in the year where people a lot of banks went out and raised out and raised rates, and we held our down for a while and continued to monitor it. And then we would come back to where we typically fall kind of in the in the middle of the pack or so. Again, I am not sure what the competitors are gonna do, but Monday, I will know what the new offers are, and we will go from there. Tahmir Baziller: Great. Thank you. Operator: Thank you. Please standby for our next question. Ladies and gentlemen, just in the interest of time, our final question will come from the line of Jared Shaw with Barclays. Your line is open. John Rowe: Hi. This is John Rowe on for Jared Shaw. Most of my questions have been asked, but just looking at the treasury management, growth that you have had this year, what is the penetration that you have of your commercial customer base using that product? And I guess, how much more runway is there to keep extending that? Torran Nixon: This is Tory. A couple things. I am going to go on memory here a bit. Penetration rate for treasury management and commercial is roughly 58%. The growth has been from a few different things that we have incorporated. 1, and when I think of treasury management, I am also kinda adding in some of the other fee based products some of the big ones that we have mentioned earlier. We have. Jared on customer's behavior, we have a technology in the company that gets driven through Salesforce that based on customers' behavior, in their accounts, it kinda signals a kind of next-best offer. For the customer, which could be it could be commercial card. It could be it could be international something else. And so I think that is that is feeding that to the Salesforce. And our Salesforce. And we are just getting. We are getting better and better and better at having. Of leveraging that technology having relationship reviews with customers, providing working capital assessments with customers, and just driving this opportunity that our customers need and want to more efficiently and effectively operate their business. The last thing I would just say is over the last year, we have added some not incremental cost into the company, but we have added some really strong like, really strong treasury management salespeople in the-- when I think about where we have added bankers throughout the franchise, I think that the greatest acumen and strength in just banking prowess has been in our treasury management folks. They have really elevated the game, and they are doing some great things. So all of those things combined are, I think, allowing us to continue to focus on it and grow the business. John Rowe: Okay. Great. that is a really good overview. that is all for me. Thanks. Operator: Thank you. Ladies and gentlemen, at this time, I would now like to turn the call back over to Jackie for closing remarks. Jacquelynne Bohlen: Thank you, Towanda. Thank you for joining this afternoon's call. Please contact me if you have any questions or would like to schedule a follow-up discussion with members of management. Have a good rest of the day. Operator: That concludes today's call. Thank you for your participation. You may now disconnect. Before you buy stock in Columbia Banking System, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Columbia Banking System wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $350,756!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,363,905!* Now, it's worth noting Stock Advisor's total average return is 922% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 22, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Columbia Banking (COLB) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Management attributed the 12-basis-point sequential NIM expansion to a deliberate shift away from wholesale funding toward relationship-based customer deposits. - The loan portfolio is being intentionally reshaped, with commercial loans now comprising 43% of the total, up from 39% a year ago, as the bank exits lower-rate transactional credits. - Performance was bolstered by the successful integration of PAC Premier, which management described as the smoothest in 21 years, providing critical scale in Southern California. - Management emphasized a 'relationship over robot' strategy, utilizing technology to remove friction and increase speed to market while maintaining high-touch banker interactions. - Operational discipline remains a core focus, with the bank identifying and executing on over $132 million in cost synergies, exceeding original targets. - The bank maintained pricing discipline in a competitive environment, passing on 'irrational' real estate deals with excessive leverage or SOFR-plus-100 pricing. - Strong customer deposit growth of $1.2 billion was driven by seasonal trends and a focused effort to deepen existing commercial relationships. - Management guides to a Q4 NIM of approximately 4.05%, accounting for a temporary negative carry from excess subordinated debt held during the trust preferred redemption process. - The board authorized a new $1.2 billion share repurchase program, with management expecting to maintain a buyback pace of $150 million to $200 million per quarter. - Non-interest expense for Q4 is projected between $330 million and $335 million, excluding CDI amortization, as the bank reinvests efficiency gains into talent and technology. - Loan balances are expected to remain flat to slightly down through early 2027 as the bank continues to prioritize relationship profitability over volume. - Management anticipates non-interest revenue to remain stable in the mid-$80 million range for the fourth quarter, supported by momentum in treasury management and wealth services. - The bank issued $250 million in subordinated notes to redeem $240 million in higher-cost junior subordinated debentures, a move expected to lower total risk-based capital by 50 basis points by early 2027. - A $5 million benefit from accelerated loan repayments contributed 3 basis points to the Q3 NIM but is considered one-time in nature. - Tangible book value declined to $18.10 due to AOCI impacts from higher interest rates, though management remains comfortable with liquidity and the ability to hold securities to maturity. - The bank closed four branches while opening new locations in Utah and Las Vegas, reflecting a strategy of 'fine-tuning' the physical footprint to follow commercial demand. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management expects NIM to remain in the low 4% range for the next several quarters, supported by the repricing of the back-book and the exit of transactional loans. - Short-term headwinds in Q4 include seasonal deposit outflows and the timing of debt redemptions, but the long-term trajectory remains positive. - Management noted some competitors are offering non-recourse structures or rates as low as SOFR plus 100 basis points, which Columbia is intentionally avoiding to protect credit quality. - The bank is focusing on C&I growth, which is currently running at a 5% to 6% annualized level, as a more profitable alternative to transactional CRE. - Treasury management revenue grew 7% year-over-year, driven by a 58% penetration rate in the commercial customer base and new technology that identifies 'next-best' product offers. - Management highlighted significant growth in international banking (19%) and commercial card fees (23%) as evidence of deepening full-service relationships. - The new authorization does not have a 12-month expiration, providing flexibility to execute over a longer period based on capital generation and market conditions. - Management confirmed the buyback is not dependent on potential Basel III regulatory relief, though such relief would be considered 'additive' to their capacity.

Columbia Banking (COLB) reported $695 million in revenue for the quarter ended September 2026, representing a year-over-year increase of 19.4%. EPS of $0.82 for the same period compares to $0.85 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $687.95 million, representing a surprise of +1.03%. The company delivered an EPS surprise of +6.49%, with the consensus EPS estimate being $0.77. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Columbia Banking performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: - Efficiency Ratio: 53.1% compared to the 52.4% average estimate based on five analysts. - Net Interest Margin: 4.1% versus 4% estimated by five analysts on average. - Net charge-offs to average loans and leases (annualized): 0.2% compared to the 0.3% average estimate based on five analysts. - Average Balance - Total interest-earning assets: $59.78 billion versus the four-analyst average estimate of $59.8 billion. - Total non-performing assets: $255 million versus $269.67 million estimated by four analysts on average. - Total non-performing loans and leases: $250 million versus $263.86 million estimated by three analysts on average. - Total risk-based capital ratio: 13.8% versus the two-analyst average estimate of 13.7%. - Leverage Ratio: 9.3% versus 9.5% estimated by two analysts on average. - Common equity tier 1 risk-based capital ratio: 11.5% versus the two-analyst average estimate of 11.9%. - Net Interest Income: $615 million compared to the $601.4 million average estimate based on five analysts. - Total noninterest income: $80 million versus the five-analyst average estimate of $86.12 million. - Net interest income (FTE): $617 million versus the four-analyst average estimate of $602.85 million. View all Key Company Metrics for Columbia Banking here>>> Shares of Columbia Banking have returned +1.2% over the past month versus the Zacks S&P 500 composite's no change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Columbia Banking System, Inc. (COLB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Columbia Banking (COLB) came out with quarterly earnings of $0.82 per share, beating the Zacks Consensus Estimate of $0.77 per share. This compares to earnings of $0.85 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.49%. A quarter ago, it was expected that this bank holding company would post earnings of $0.73 per share when it actually produced earnings of $0.76, delivering a surprise of +4.11%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Columbia Banking, which belongs to the Zacks Banks - West industry, posted revenues of $695 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 1.03%. This compares to year-ago revenues of $582 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Columbia Banking shares have added about 4.5% since the beginning of the year versus the S&P 500's gain of 13.3%. While Columbia Banking has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Columbia Banking was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.80 on $694.06 million in revenues for the coming quarter and $3.02 on $2.74 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - West is currently in the top 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Sierra Bancorp (BSRR), has yet to report results for the quarter ended September 2026. This parent company of Bank of the Sierra is expected to post quarterly earnings of $0.90 per share in its upcoming report, which represents a year-over-year change of +25%. The consensus EPS estimate for the quarter has been revised 1.2% lower over the last 30 days to the current level. Sierra Bancorp's revenues are expected to be $39.25 million, down 2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Columbia Banking System, Inc. (COLB) : Free Stock Analysis Report Sierra Bancorp (BSRR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Regional banking company Columbia Banking System (NASDAQ:COLB) will be announcing earnings results this Thursday after market close. Here's what investors should know. Columbia Banking System missed analysts' revenue expectations last quarter, reporting revenues of $683 million, up 33.2% year on year. It was a slower quarter for the company, with a miss of analysts' net interest income estimates and tangible book value per share in line with analysts' estimates. Is Columbia Banking System a buy or sell going into earnings? Read our full analysis here, it's free for active Edge members. This quarter, the market is expecting Columbia Banking System's revenue to grow 18.9% year on year, in line with the 18% increase it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Columbia Banking System has missed Wall Street's revenue estimates multiple times over the last two years. Looking at Columbia Banking System's peers in the regional banks segment, some have already reported their Q3 results, giving us a hint as to what we can expect. QCR Holdings's revenues decreased 11.7% year on year, missing analysts' expectations by 8.9%, and Washington Trust Bancorp reported revenues up 15%, topping estimates by 4.1%. Washington Trust Bancorp traded up 4.2% following the results. Read our full analysis of QCR Holdings's results here and Washington Trust Bancorp's results here. Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the regional banks stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3% on average over the last month. Columbia Banking System is down 2.8% during the same time and is heading into earnings with an average analyst price target of $33.33 (compared to the current share price of $29.07). ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who's building AI, one company is already using it to print money. And nobody's paying attention. AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won't last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.