Columbia Banking System (COLB) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $146 million, with diluted EPS of $0.70 and operating EPS of $0.69, reflecting strong profitability and capital generation; year-to-date net income reached $390.4 million.

• Achieved $270 million in merger-to-date gross expense reductions, with $213 million net savings after reinvestments; $82 million in annualized operational savings realized.

• Core deposit growth was solid, with a 20% reduction in brokered deposits during the quarter, and deposit costs declined.

• Expansion in new markets (Arizona, Colorado, Utah, Southern Nevada, Northern California) and continued investment in technology and talent.

• Focused on relationship banking and reducing exposure to transactional loans and funding sources.

Financial highlights

• Q3 2024 operating EPS was $0.69; operating return on tangible equity reached 16.04% and return on equity was 11.36%.

• Net interest income for Q3 2024 was $430.2 million, with net interest margin stable at 3.56%.

• Non-interest income rose by $21 million sequentially to $66.2 million, driven by fair value changes and higher core banking activity.

• Non-interest expense declined to $271 million, reflecting lower restructuring and salary expenses.

• Tangible book value per share increased 10% to $17.81; book value per share rose to $25.17.

Outlook and guidance

• Q4 2024 core expense run rate expected at $965–$985 million annualized, excluding certain items.

• Expect continued reductions in deposit costs and wholesale funding balances in Q4.

• Ongoing investments in technology, new branches, and talent to drive growth in targeted western markets.

• Capital ratios expected to continue building, providing flexibility for future shareholder returns; buyback and capital return under evaluation for 2025.