Columbia Banking Q3 profit rises

Columbia Banking System

Thu 21:08

Overview
US regional bank's Q3 net income and EPS rose yr/yr, net interest income up from Q2
Company completed prior share repurchase plan, authorizes new $1.2 bln buyback
Profitability improved due to balance sheet management and relationship-driven growth

Outlook
Columbia Banking System authorized a new $1.2 bln share repurchase program with no expiration date
Company expects to redeem about $240 mln in junior subordinated debentures in 4Q26 and early 2027
Company says competitive pricing pressure and elevated payoffs may continue to affect loan growth

Result Drivers
NET INTEREST INCOME - Co said net interest income rose due to higher income on loans and investment securities and lower funding costs
DEPOSIT GROWTH - Co said deposit growth was driven by seasonal customer balance increases and new customer acquisition
EXPENSE REDUCTION - Co said non-interest expense fell due to lower merger expense

Company press release: ID:nPncgFzMla

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
 
$0.78
 
Q3 Net Interest Income
 
$615 mln
 
Q3 Net Interest Margin
 
4.11%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 9 "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 $33.00, about 13% above its October 21 closing price of $29.20
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads
Oct 19 - ServisFirst Bancshares Q3 profit jumps on loan growth, wider interest margin 
Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality
Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)