Columbia Banking System beats Q3 forecasts on revenue and margin, shares rise 3.7%

what happened

Shares of regional lender Columbia Banking System (COLB) climbed 3.7% in the afternoon trade after the company published its third-quarter 2026 figures. According to StockStory, revenue reached $695 million, up 20% year over year and ahead of the $688.3 million consensus. Adjusted earnings per share came in at 82 cents, versus 85 cents a year earlier and 77 cents expected by analysts.

Net interest income rose 21.8% to $615 million, topping the $603.2 million estimate. The net interest margin stood at 4.11%, above the 4% forecast and 18 basis points higher quarter on quarter. Management credited the expansion to a mix shift toward loans with richer yields, better returns on securities, and deposits that now fund the balance sheet instead of wholesale borrowings. The bank reduced wholesale funding by roughly $1.5 billion during the period, and about 3 basis points of the margin reflected the early repayment of two acquired loans.

Tangible book value per share was the weak point, sliding 2.5% to $18.10 against a $19.31 estimate. The efficiency ratio improved to 53.1% from a forecast of 53.9%. On the call, leadership expects a fourth-quarter margin near 4.05%, still above 4% despite some drag from surplus subordinated debt, and sees it holding in the low-4% zone for several more quarters. A new $1.2 billion buyback program was authorized, with $150 million to $200 million of repurchases planned for the fourth quarter. The shares settled at $31.00 and are up about 10% year to date, trading near their 52-week high of $33.61 set in July 2026.

why it matters

Margin strength and the new buyback are the main supports here, while the shortfall in tangible book value tempers the beat. For reference, a $1,000 investment made five years ago would now be worth $878.12. The shares have had only two moves above 5% in the past year, so the reaction is notable but unlikely to reset the view on the business.

market impact

US regional banks: stronger margin and buybacks support COLB shares, while the book value miss weighs

tags

instruments