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Columbia Banking System Beats Q4 Estimates as Integration Momentum Builds

The company now points to a near-term systems conversion to unlock deal savings, with expenses expected to normalize by the third quarter.

Overview

  • Fourth-quarter EPS came in at $0.82 versus the $0.71 consensus, with revenue of $717.0 million topping estimates of about $696.2 million.
  • Management credited momentum to disciplined balance sheet management, new customer relationships, and the first full-quarter contribution from Pacific Premier.
  • A systems conversion is planned later this quarter to realize deal-related cost savings, with a clean expense run rate targeted by Q3 2026.
  • RBC Capital raised its price target to $32 with a Sector Perform rating, and DA Davidson moved to $32.50 with a Neutral stance.
  • Shares fell about 1.8% to $29.12 on Friday, as RBC noted a slightly smaller balance sheet and lower margin to start the year with growth expected after Q1.