Columbia Banking Q2 net income jumps

Overview

• Columbia Banking Q2 net income rises to $152 mln, up 27% yoy and 76% sequentially

• Earnings per share for Q2 at $0.73

• Net interest income increased by $21 mln, driven by loan repricing

Outlook

• Columbia plans to close Pacific Premier acquisition by September 1, 2025

• Company focuses on enhancing long-term tangible book value

Result Drivers

• LOAN REPRICING - Net interest income rose due to higher interest income from loans and investment securities

• EXPENSE DISCIPLINE - Non-interest expenses decreased due to absence of legal settlement and severance costs from prior quarter

• BRANCH EXPANSION - Opened new branches in Arizona and Oregon, enhancing market presence and attracting new deposits

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Columbia Banking System Inc is $27.00, about 9.7% above its July 23 closing price of $24.38

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nPn7s24kGa