Columbia Banking System (COLB) has increased its quarterly cash dividend to $0.37 per share, a 3% rise from the previous declaration, and has launched a $700 million share‑repurchase program that will run through November 30 2026. The dividend will be paid on March 16 2026 to shareholders of record as of February 27 2026.
The capital‑return moves are supported by a strong balance sheet. As of September 30 2025, the bank’s Common Equity Tier 1 ratio stood at 11.6%, and excess capital was approximately $550 million, giving the bank ample buffer to fund the dividend and buyback while maintaining regulatory capital requirements.
The dividend and buyback are part of a broader strategy to optimize the bank’s loan portfolio after the completion of the Pacific Premier Bancorp acquisition on August 31 2025. Columbia is actively managing down roughly $8 billion of inherited transactional loans and shifting toward higher‑margin commercial and industrial lending, a move that has helped lift the net interest margin to 4.06% in Q4 2025 from 3.64% in Q4 2024.
Q4 2025 earnings reinforced the bank’s operational strength. Earnings per share of $0.82 beat the consensus estimate of $0.72, driven by disciplined cost management and a favorable mix shift toward higher‑margin loans. The bank’s net interest margin improvement reflects both loan repricing and controlled deposit pricing, as highlighted by CEO Clint Stein.
CEO Clint Stein said, "I'm pleased to announce our Board of Directors authorized a $700 million share repurchase program, reflecting our confidence in the strength of Columbia's balance sheet." He added, "We are pleased to announce an increase to our regular dividend, providing another form of capital return to our shareholders that complements our recently announced $700 million share repurchase program." Stein also noted, "Our second quarter results demonstrate our focus on profitability and balance sheet optimization. Commercial loan growth outpaced runoff in transactional portfolios while the net interest margin benefited from loan repricing, controlled deposit pricing, and a rebound in securities yields."
The combination of a higher dividend, a sizable share‑repurchase program, and a disciplined balance‑sheet strategy positions Columbia to return excess capital to shareholders while sustaining a robust capital base. The bank’s focus on higher‑margin lending and the integration of Pacific Premier are expected to support continued profitability and provide a foundation for future growth.
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