Columbia Banking System Reports Strong Q2 2025 Results and Expansion Plans
Columbia Banking System, Inc. has reported robust financial results for the second quarter of 2025, alongside significant developments regarding its planned acquisition of Pacific Premier Bancorp, Inc. During a special meeting held on July 21, 2025, shareholders from both companies overwhelmingly approved the merger, which was first announced on April 23, 2025. Columbia expects to finalize the transaction by September 1, 2025, pending regulatory approvals.
Integration efforts are already underway, spearheaded by Columbia’s Integration Management Office. This initiative aims to ensure a seamless transition post-acquisition, positioning both organizations for enhanced operational efficiency.
Financial Highlights
For the second quarter of 2025, Columbia reported net interest income of $446 million, an increase of $21 million from the previous quarter. This uptick is attributed to higher interest income from loans and investment securities, coupled with stable funding costs. The net interest margin improved to 3.75%, reflecting a rise of 15 basis points from the prior quarter. The margin increase was bolstered by a higher yield on taxable investment securities, which reached 4.22%, up from 3.72% in the first quarter.
Columbia’s loan portfolio also showed positive trends, with the average yield increasing by 8 basis points to 6.00%. This rise was primarily driven by enhanced yields on commercial and construction loans, alongside a $2 million interest recovery from a nonperforming loan that was fully repaid.
In contrast, non-interest income for the quarter decreased to $64 million, down $2 million from the previous quarter. This decline was largely due to fluctuations in fair value adjustments and mortgage servicing rights hedging activity. Excluding these items, non-interest income actually rose by $8 million, driven by increased card-based fees and growth in core fee-generating services.
Branch Expansion and Community Focus
Columbia Banking System is also expanding its footprint in Arizona, having opened its second branch in Phoenix and its first in Mesa, which brings its total number of branches in the state to four. Additionally, a new branch in Eastern Oregon has been established, restoring banking services to a previously underserved rural community. This strategy reflects Columbia’s commitment to serving both metropolitan areas and core community markets, enhancing opportunities for new customer relationships.
The company’s total consolidated assets reached $51.9 billion as of June 30, 2025, up from $51.5 billion at the end of March 2025. This growth is indicative of Columbia’s strategic positioning and operational resilience.
Despite some fluctuations in customer deposits, which decreased by $475 million due to seasonal tax payments, Columbia remains focused on relationship-driven banking activities. President Chris Merrywell noted that while there was a contraction in customer deposits in April, the strong growth experienced in March laid a solid foundation for the bank’s ongoing initiatives.
Looking ahead, Columbia anticipates the successful integration of Pacific Premier and continued growth across its branches. The bank’s Q2 2025 Earnings Presentation will provide further insights into its financial performance and strategic direction, available on the investor relations page.
As Columbia Banking System moves forward, it remains committed to delivering personalized banking experiences while navigating a dynamic financial landscape.
