Columbia Banking System Delivers Steady Progress in Q3 2026: Expanding Relationship-Based Commercial Loans and Returning Excess Capital to Shareholders
The Columbia Banking System has reported steady progress in its third quarter of 2026, delivering consistent repeatable performance on the core priorities outlined for several years. Chairman, Chief Executive Officer, and President Clint Stein highlighted that the company continued to grow relationship-based commercial loans and utilized funds from strong customer deposit growth to reduce its reliance on wholesale funding, enabling both sides of the balance sheet to contribute to net interest margin expansion.
According to Stein, the company has returned over $1 billion to shareholders through dividends and share repurchases over the past year. This effort resulted in an 8% reduction in the common share count due to the completion of its existing buyback authorization. Building on this confidence, the Board of Directors has authorized a new $1.2 billion share repurchase program.
The results reflect the benefits of consistent execution, even as the operating environment continues to shift. Discipline is not always the easiest path, but it's one that Stein emphasized his teams have maintained quarter after quarter across loan and deposit pricing, credit, and expense management. This sustained consistency has driven improved profitability and a balance sheet increasingly built around full customer relationships.
Stein also marked the one-year anniversary of closing its acquisition of Pacific Premier in August, which was described as the smoothest integration he's experienced in his 21 years with Columbia. Over that time, the company has built a compelling footprint across the West, achieving scale and competitive presence through organic growth and strategic acquisitions.
With the integration fully behind them, Columbia is applying its operational discipline even more sharply, looking across the company for additional opportunities to improve efficiency and profitability. This work strengthens their ability to deliver sustainable long-term value for shareholders. Stein emphasized that fine-tuning their franchise and continued execution on organic growth opportunities remain a focus.
Financial highlights include reported EPS of $0.78 and operating EPS of $0.82 for the third quarter, with pre-provision net revenue and operating net income increasing 7% and 6%, respectively, compared to the second quarter of 2026, and 25% and 12%, respectively, compared to the third quarter of 2025.
The company also reported average earning assets of $59.8 billion during the third quarter, with balance sheet optimization and elevated CRE payoffs contributing to modest contraction compared to the prior quarter. As highlighted by Ivan, a more favorable mix of loans and funding, together with disciplined expense management, drove both the sequential and annual growth.
