Q2 Earnings Rise, But Non-Performing Assets Increase Amidst Share Buyback
COLB sits 37% above its 52-week low of $23.18.
Summary
Columbia Banking System reported higher Q2 earnings and continued its share repurchase program, but faced an increase in non-performing assets and a decline in overall loans and deposits.
Key Events · Earnings and Guidance · COLB
-
Q2 Earnings Growth
Net income for Q2 2026 increased to $208 million ($0.73 diluted EPS) from $192 million ($0.66 diluted EPS) in Q1 2026.
-
Increase in Non-Performing Assets
Non-performing assets rose to $273 million (0.42% of total assets) as of June 30, 2026, up from $200 million (0.30%) at December 31, 2025. Non-performing loans increased to $268 million (0.57% of total loans) from $198 million (0.41%).
-
Significant Share Repurchase
The company repurchased 6.6 million shares for $199 million in Q2 2026, and 13.1 million shares for $398 million year-to-date, with $202 million remaining under the authorization.
-
Loan and Deposit Decline
Total loans decreased by $610 million to $47.2 billion, and total deposits decreased by $2.2 billion to $52.1 billion, from December 31, 2025, primarily due to a reduction in brokered deposits.
Analysis · COLB · Finance
Columbia Banking System reported increased net income and EPS for Q2 2026 compared to the prior quarter, driven by lower non-interest expenses and higher non-interest income. However, the company experienced a notable increase in non-performing assets and loans from year-end 2025, which is a key concern for a bank's asset quality, despite management attributing it to a single relationship. The company continued its significant share repurchase program, buying back $199 million in Q2, demonstrating a commitment to returning capital to shareholders. Total loans and deposits both declined from the prior year-end, reflecting ongoing balance sheet optimization efforts to reduce reliance on higher-cost funding sources.
At the time of this filing, COLB was trading at $31.78 on NASDAQ in the Finance sector, with a market capitalization of approximately $9B. The 52-week trading range was $23.18 to $33.68. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.