Columbia Banking System beats Q3 2026 estimates with margin expansion ahead
As seen on the 24/7 Wall St. homepage on October 22, 2026.
The margin story has room to run: $7.1 billion of below-market-rate loans are set to reprice higher. Management paired that with a fresh buyback authorization, having just finished retiring a chunk of the shares outstanding.
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Columbia Banking System posted adjusted earnings of $0.82 per share for Q3 2026, beating expectations, with revenue also ahead of forecasts. Eight consecutive quarters of topping EPS estimates point to a management team that has consistently under-promised and over-delivered.
Net interest margin reached 4.11% as loan and investment yields moved higher and the bank swapped out costly wholesale funding for cheaper customer deposits. A deposit campaign accelerated that funding mix shift during the quarter.
Management flagged $7.1 billion in below-market-rate loans still set to reprice higher or run off, which should keep upward pressure on yields heading into 2027. The efficiency ratio also improved, reflecting both the revenue lift and a sharp drop in merger and restructuring costs.
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Credit quality held broadly steady, with non-performing assets at 0.39% of total assets. Investors should keep an eye on the FinPac portfolio, where charge-offs and delinquencies ran higher, and on unrealized securities losses on the available-for-sale portfolio, which weighed on book value.
The prior buyback was completed during the quarter, and the board immediately followed with a new $1.2 billion repurchase authorization carrying no expiration date, a signal that management sees continued excess capital generation ahead. CEO Clint Stein described the move as reflecting confidence in the company's long-term strategy and outlook.
Mentioned: COLB