Columbia Banking Q3 profit rises 

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:

Key Details

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.)