Columbia Banking Sets $1.2 Billion Buyback After Retiring 23.3 Million Shares Under Last Plan
The Tacoma lender also widened its net interest margin to 4.11% and earned $0.78 per diluted share in the third quarter.
Columbia Banking System's board authorized repurchases of up to $1.2 billion of common stock, the company said in its third-quarter earnings release, filed in an 8-K on Thursday. The new plan follows the completion of the previous one, which retired 23.3 million shares.
A buyback with no expiration date
Columbia Banking System is the Tacoma, Washington-based holding company for Columbia Bank, which offers commercial, private banking, mortgage and wealth services across the western United States. The new authorization has no expiration date, though the board can suspend, terminate or modify it at any time. Purchases may be made on the open market or in privately negotiated deals, and the company is not obligated to buy any particular number of shares.
The prior plan bought 23.3 million shares at an average price of $29.88 between November 2025 and September 30, 2026, equal to 7.8% of shares outstanding at September 30, 2025. In the third quarter alone, Columbia repurchased 6.5 million shares at an average $30.65, or 2.3% of shares outstanding; the release puts the quarter's buyback at $199 million.
CEO Clint Stein said the company returned over $1 billion to shareholders in the past year through dividends and buybacks. He said the new program reflects "confidence in our long-term strategy."
Margin widens, earnings climb
Net income was $220 million, or $0.78 per diluted share, up from $0.73 in the second quarter and $0.40 a year earlier. Operating net income, an adjusted measure, was $229 million, or $0.82 per share.
Net interest income rose $26 million from the second quarter to $615 million. The net interest margin, the gap between what the bank earns on loans and pays for funding, widened 18 basis points to 4.11%, helped by higher loan yields and by customer deposits replacing costlier wholesale funding. Accelerated repayment of two acquired loans added 3 basis points.
Credit looked steadier: net charge-offs were 0.24% of average loans, against 0.25% in the second quarter, and non-performing assets slipped to 0.39% of total assets from 0.42%. The provision for credit losses rose to $33 million from $27 million.
A smaller balance sheet, lower book value
Loans and leases fell to $46.9 billion from $47.2 billion, as runoff in below-market-rate transactional loans and elevated payoffs outweighed growth; commercial loans rose 3% on an annualized basis. A second deposit campaign of 2026 brought in over $700 million, and deposits rose to $52.7 billion. Borrowings dropped to $3.3 billion from $4.3 billion.
Book value per share fell to $25.62 from $26.70. The company pointed to accumulated other comprehensive loss, which widened to $708 million from $310 million, driven mainly by a larger unrealized loss on available-for-sale securities; repurchases are also noted in the same discussion. The estimated common equity tier 1 capital ratio slipped to 11.5% from 11.7%, while the total risk-based ratio rose to 13.8%.
Total available liquidity, including secured off-balance-sheet credit lines, was $26.0 billion, or 40% of total assets.
In September, Columbia Bank issued $250 million of subordinated notes at 6.721%, and the company plans to use part of the proceeds to redeem about $240 million of junior subordinated debentures in the fourth quarter of 2026 and early 2027.
