Columbia Banking System (COLB) Q4 2024 earnings summary

Executive summary

• Achieved full-year 2024 reported net income of $534M and operating net income of $568M, with diluted EPS of $2.55 (reported) and $2.71 (operating); Q4 2024 reported net income was $143M, operating net income $150M, and EPS $0.68 (reported), $0.71 (operating).

• Net income rose 53% year-over-year in Q4, driven by improved net interest margin, commercial loan growth, and higher core fee income.

• Achieved $82M in annualized cost savings in 2024, reinvesting $12M into growth markets, technology, and talent, with five new branches planned for 2025.

• Completed an enterprise-wide operational evaluation, supporting ongoing reinvestments and expense optimization.

• Maintained strong credit quality and robust capital ratios, expanding presence in high-growth Western markets.

Financial highlights

• Q4 2024 net interest income was $437M, with net interest margin increasing 8 bps sequentially to 3.64%.

• Non-interest expense in Q4 2024 declined $5M sequentially to $267M, reflecting lower benefits expense.

• Total assets at year-end were $52.2B; loans and leases were $37.7B; deposits totaled $42B.

• Deposits increased by $200M in Q4, while borrowings declined by $550M; average customer account balance was $35K.

• Allowance for credit losses at 1.17% of loans and leases; provision for credit loss was $28M in Q4.

Outlook and guidance

• Expect low single-digit total loan growth in 2025, with C&I growth in the low- to mid-single digits and continued contraction in transactional real estate loans.

• Operating expense guidance for 2025 is $1.0–$1.01B, reflecting inflation, payroll tax, health insurance, and merit increases.

• NIM expected to be in the lower half of recent quarters in Q1 due to seasonal deposit outflows and increased wholesale funding; improvement possible later in 2025 if deposit growth outpaces loan growth.

• Five new branches to open in 2025, funded by cost savings from branch consolidations; ongoing investments in technology, real-time payments, and data analytics to drive fee income.