Columbia Banking System, Inc. reported its financial results for the third quarter of 2026 on October 22, 2026. The company reported net income of $220 million and operating net income of $229 million for the quarter. Diluted earnings per share were reported at $0.78, while operating earnings per share were $0.82.
The company’s net interest income increased by $26 million to $615 million compared to the prior quarter. This increase was attributed to higher income on loans and investment securities, as well as lower funding costs. The net interest margin for the third quarter was 4.11%, an increase of 18 basis points from the second quarter.
Non-interest income decreased by $8 million to $80 million, while non-interest expense decreased by $5 million to $370 million. The decrease in non-interest expense was primarily due to lower merger expense. The company’s return on average common equity was 11.78% for the third quarter.
Credit quality metrics showed net charge-offs at 0.24% of average loans and leases, with a non-performing assets to total assets ratio of 0.39%. The company’s estimated total risk-based capital ratio was 13.8%, and the estimated common equity tier 1 risk-based capital ratio was 11.5%.
The company declared a quarterly cash dividend of $0.37 per common share on August 14, 2026, which was paid on September 14, 2026. During the third quarter, Columbia completed a previous share repurchase plan, buying back 23.3 million shares at an average price of $29.88 between November 2025 and September 30, 2026.
In a separate announcement, Columbia’s Board of Directors authorized a new share repurchase program for up to $1.2 billion of common stock. This authorization has no expiration date and may be executed in the open market or through privately negotiated transactions. The company also noted that it intends to redeem approximately $240 million in junior subordinated debentures during the fourth quarter of 2026 and early 2027.
